Slide 1: Yahoo Japan Corporation FY2018 Full Year & 4Q Business Results
Yahoo Japan Corporation FY2018 Full Year & 4Q Business Results April 25, 2019
Slide 2: Table of Contents
Table of Contents 1. FY2018 Full Year Financial Results 2. Summary of Business Segments 3. Growth Strategies 4. FY2019 Policies and Outlook 5. Appendix Unless otherwise specified, English-language documents are prepared solely for the convenience of non-Japanese speakers. If there is any inconsisten
Slide 3: 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 (Company, Yahoo! JAPAN) and its consolidated subsidiaries and affiliates. The Company cautions you that a number of importa
Slide 4: FY2018 Full Year Financial Results
FY2018 Full Year Financial Results 4
Slide 5: FY2018 Consolidated Income Statement
FY2018 Consolidated Income Statement FY2017 FY2018 YoY Revenue 897.1 (¥B) 954.7 (¥B) +6.4% Revenue excluding impact from change in accounting policy* 897.1 (¥B) 974.7 (¥B) +8.6% Operating income 185.8 (¥B) 140.5 (¥B) -24.4% EBITDA 228.0 (¥B) 199.6 (¥B) -12.4% Net income 134.4 (¥B) 77.8 (¥B) -42.1% N
Slide 6: FY2018 Factors of Change in Consolidated Operating Income
FY2018 Factors of Change in Consolidated Operating Income Amount Expense for new Item Major factors (¥ B) Com- (¥ B) challenges Media merce (¥ B) FY2017 Result 185.8 Plan 10 20 Revenue +57.5 ASKUL +34.4, Advertising revenue +20.4 Result 5.6 12 Cost of sales -26.4 Sales promotion 0.3 9.3 SG&A (major
Slide 7: FY2018 Consolidated Statement of Financial Position
FY2018 Consolidated Statement of Financial Position (¥ B) FY2017 FY2018 YoY Major factors Assets 2,516.6 2,429.6 -87.0 Cash and cash equivalents 868.3 546.7 -321.5 Acquisition of treasury stocks (221.0) Trade and other receivables 297.0 328.2 +31.2 Property and equipment, intangible assets, goodwill
Slide 8: Summary of Business Segments
Summary of Business Segments 8
Slide 9: Media Business
Media Business 9
Slide 10: FY2018 Media Business – Highlights
FY2018 Media Business – Highlights Item Details Paid search Display 3 advertising advertising YoY +10.2% YDN, etc. Premium 1 Number of monthly 4 consecutive years of double logged-in user IDs digit growth Brand Time spent by Panel 2 logged-in users via Achieved YoY +21.8% growth YDN smartphones Prim
Slide 11: FY2018 Advertising Revenue - Results
FY2018 Advertising Revenue - Results Item Amount (¥ B) YoY Measures / Factors of change Total advertising revenue 323.8 +6.7% Double digit growth (first in 5 years) due to improvement in Paid search advertising 164.2 +11.1% UI, etc. Display advertising 159.5 +2.6% ・Excluding effects from ad fraud co
Slide 12: Progress in Videos
Progress in Videos Procured video contents, captured younger audience with our original videos 2018/9 2018/11 2018/12 2019/1 2019/2 ワイキュー 木梨の会 ハピゴラ！ BiSHのキレッキレJAPAN ギラギラ超特急 木村さ～～ん! ガチンコ! R-1への道 千鳥のロコスタ クリエイターズ 劇団さまぁ～ず 週刊M-1最前線 ひきこもりでも〇〇したい! Buzz by TOKYO COIN 孤独な出川 LAUNDRY プログラム BuzzFeed ワイモーニング ゆうこ
Slide 13: Speed in Growth of Smartphone Videos
Speed in Growth of Smartphone Videos Video viewing time of smartphone top page grew 2.4X YoY Revenue of video ads via smartphones grew 13 2X YoY FY2018 ¥ 5.3 B
Slide 14: Commerce Business
Commerce Business 14
Slide 15: FY2018 Commerce Business – Highlights
FY2018 Commerce Business – Highlights Item Details 3 Transaction value of shopping business increased due to point- Membership 1 E-commerce reward measures with SoftBank Finance Achieved 4 consecutive years of +20% growth O2O ・Successful rocket start of PayPay ・No. of valid credit card holders 2 Pay
Slide 16: FY2018 Commerce Business – KPI
FY2018 Commerce Business – KPI Item Actual result YoY Measures / Factors of change EC transaction value 2,344.2 (¥B) +11.3% EC transaction value 1,951.7 (¥B) +8.7% (sale of goods) Increased use due to collaboration with Shopping transaction value 769.2 (¥B) +22.6% SoftBank subscribers Point incentiv
Slide 17: Growth Strategies
Growth Strategies 17
Slide 18: Yahoo Japan Corporation Aspires to
Yahoo Japan Corporation Aspires to: Make our users’ lives convenient to a surprising (!) extent through Yahoo! JAPAN services Online world Even more convenient Offline world New entry 18
Slide 19: Image of Our Long-Term Revenue Composition
Image of Our Long-Term Revenue Composition We will continue to grow while drastically changing our revenue composition to meet the changes in the business environment Data solution Fintech E-commerce Now (excl. ASKUL Group) Integrated marketing solution, shopping advertising Paid search advertising,
Slide 20: PayPay
PayPay 20
Slide 21: PayPay - Milestones
PayPay - Milestones 10/5 10/22 11/12 12/4 Released Began linking with Alipay Began linking with Yahoo! JAPAN app Began 1st ¥10B giveaway campaign 21
Slide 22: Security Measures
Security Measures Service safety ensured by security measures sequentially introduced since January Anti-fraud measures Restricted no. of times security 1 At credit card code*1 can be entered registration Implemented identity verification 2 measure (3D Secure*2) Restricted amount of payment via 3 At
Slide 23: 2nd Campaign: 10 Billion Yen Giveaway
2nd Campaign: 10 Billion Yen Giveaway Campaign from Feb. 12 Aim: have more users use PayPay on a daily basis 23
Slide 24: PayPay's Successful Rocket Start
PayPay’s Successful Rocket Start Expanded business foundation through successive campaigns Cumulative No. of merchants No. of payments Name awareness registered users No.1 6 mos. since start of service: 7 mos. since start of sales: 6 mos. since start of service: 6 million exceeded 500,000 exceeded 2
Slide 25: PayPay – Business Model
PayPay – Business Model Maximize the base and develop various business pillars O2O Ads Finance Yahoo Japan domain Accumulate data＋Increase balance No. of merchants PayPay Online linkage/ No. of users No.No. of payments of payments domain offline merchants 25
Slide 26: To Expand Merchants
To Expand Merchants 2018-3Q 2018-4Q 2019-1Q Convenience stores Other retailers 墨田区商店街連合会 さぎぬま 商店街 Dining Electronic retailers always expanding 26
Slide 27: To Increase Users and Payments ①
To Increase Users and Payments ① Even after 2nd ¥10B giveaway campaign, value deals with PayPay Bonus hiked 6x 5/8～ PayPay Chance 6/1～ For every use 1 in 20 chance 0.5% Payment method 3 % cashback Bonus rate Max. ¥ 1,000 Payment method equivalent cashback PayPay Chance PayPay balance PayPay balance
Slide 28: To Increase Users and Payments ②
To Increase Users and Payments ② Value campaigns at different areas or merchants every month Target Always Lottery Always, somewhere 20％ 1 in 10 chance SoftBank/Y!mobile *1 WAKUWAKU PAYPAY smartphone users, Max. Max. ¥1,000 equivalent Yahoo! Premium members cashback cashback 1st in series (June) （Ma
Slide 29: To Increase Users and Payments ③
To Increase Users and Payments ③ “PayPay everywhere” – online use made available Can be used in our EC services from June Offline Online Yahoo! Shopping FY18 result Fixed-term T Points PayPay bonus ¥700B Switch to PayPay bonus （Date to be determined） equivalent payment PayPay Bonus YAHUOKU! PayPay L
Slide 30: FY2019 Policies and Outlook
FY2019 Policies and Outlook 30
Slide 31: FY2019 Policies
FY2019 Policies Our basic policies remain unchanged ・ As one, various services will maximize number of user actions ・ Make users’ lives convenient to a surprising level both in online and offline worlds ・ Cross-use multi big data to promote service growth FY2019: scaling up our efforts to create the
Slide 32: FY2019 New Organizational Plan
FY2019 New Organizational Plan Transition to a holding company structure for an expeditious promotion of business strategies Until September 30, 2019 After October 1, 2019 Listed Listed Yahoo Japan Corporation Z Holdings Corporation Management of the whole group New New company company Finance Opera
Slide 33: FY2019 Media Business – Internal Goal
FY2019 Media Business – Internal Goal Aim for double digit growth (first in 6 years) Item Internal goal (YoY) Total advertising revenue + mid-single digit to double digit % Paid search advertising + high-single digit % Display advertising + mid to high-single digit % 33
Slide 34: FY2019 Media Business - Roadmap
FY2019 Media Business - Roadmap Integrated marketing solution Top page app • Online commerce ads Coupon tab More timeline Renewal of PC top page • Offline commerce ads （1Q -） （1Q -） （2Q -） （3-4Q） 1Q 2Q 3-4Q 34 Note: Illustration of service image may differ from the actual specification when the serv
Slide 35: FY2019 Commerce Business – Internal Goals
FY2019 Commerce Business – Internal Goals Aim for 5 consecutive years of +20% growth for shopping business Item Internal goal (YoY) EC transaction value (sale of goods) + double-digit % Shopping transaction value + 20% YAHUOKU! transaction value + mid-single digit % 35
Slide 36: FY2019 Full Year Guidance (Consolidated Basis)
FY2019 Full Year Guidance (Consolidated Basis) Return to increase in revenue and income FY2019 YoY Revenue Over ¥1 T +5% to +7% Operating income ¥140.6 to 150.0 B 0% to +7% Net income attributable to owners of the parent ¥79.0 to 85.0 B 0% to +8% Diluted EPS ¥14.8 to 15.9 0% to +8% Dividend per shar
Slide 37: Operating Income – Long-Term Outlook
Operating Income – Long-Term Outlook 合計 Businesses to be strengthened (Shopping advertising, Integrated FY18 ー FY22 強化事業(ショッピング広告、統合マーケティングソリューション、決済金融、会員、ヤフオク!) marketing solution, Financial & Payment, Membership, YAHUOKU!) Advertising income – base ベース広告利益(検索連動型広告、ディスプレイ広告) (Paid search advertisin
Slide 38: Yahoo! JAPAN will create a future that can only be shaped by us
Yahoo! JAPAN will create a future that can only be shaped by us 38
Slide 39: Appendix
Appendix 39
Slide 40: Contents
Contents • FY2018-4Q Consolidated Income Statement • Shopping Advertising Take Rate and Percentage of Point-Reward Expenses in Yahoo! Shopping • Image of Our Long-Term Revenue Composition • Operating Income – Long-Term Outlook • Yahoo! JAPAN Service Map • Materiality Matrix for Yahoo Japan Corporati
Slide 41: FY2018-4Q Consolidated Income Statement
FY2018-4Q Consolidated Income Statement FY2017 FY2018 YoY 4Q 4Q Revenue 238.3 (¥B) 247.1 (¥B) +3.7% Revenue excluding impact from change in accounting policy* 238.3 (¥B) 252.3 (¥B) +5.8% Operating income 38.0 (¥B) 20.8 (¥B) -45.1% EBITDA 48.4 (¥B) 41.1 (¥B) -15.0% Profit for the period 28.6 (¥B) 7.7
Slide 42: Shopping Advertising Take Rate and Point-Reward Expenses
Shopping Advertising Take Rate*1 and Percentage of Point-Reward Expenses*2 in Yahoo! Shopping Shopping advertising take rate % of point-reward expenses 0 FY2016 FY2017 FY2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q *1 Shopping advertising take rate = Shopping-Related Advertising revenue / Yahoo! Shoppin
Slide 43: Image of Our Long-Term Revenue Composition
Image of Our Long-Term Revenue Composition We will continue to grow while drastically changing our revenue composition to meet the changes in the business environment Data solution Fintech E-commerce (excl. ASKUL Group) Integrated marketing solution, shopping advertising Paid search advertising, dis
Slide 44: Operating Income – Long-Term Outlook
Operating Income – Long-Term Outlook Change income composition to meet changes in business environment and aim for the next development stage (¥ Billion) Gain from remeasurement related to ASKUL Businesses to be strengthened (Shopping advertising, Integrated marketing solution, Financial & Payment,
Slide 45: Yahoo! JAPAN Service Map
Yahoo! JAPAN Service Map Media Commerce Digital Contents ebookjapan Shopping Fortune telling Game TOP page Weather/Disaster News Finance (Digital books) Auction Sports navi GYAO! O2O Knowledge search (Sports news site) (Video streaming) ASKUL Real Travel Restaurant (B to B EC) estate booking reserva
Slide 46: Materiality Matrix for Yahoo Japan Corporation
Materiality Matrix for Yahoo Japan Corporation * The numbers and colors in the matrix coincide with the 17 SDG icons. 46
Slide 47: Business Segment Breakdown
Business Segment Breakdown Media Business ・Advertising: Paid search advertising “Sponsored Search”, Display advertising (“Yahoo! Display Ad Network (YDN)”, “Premium Advertising”) ・Business Services: CRM-related services, Media-related services and others ・Personal Services: Video-related services an
Slide 48: Definition of EC Transaction Value
Definition of EC Transaction Value YAHUOKU! EC transaction value (sale of goods) Shopping Yahoo! Shopping, LOHACO, Charm Business EC transaction value ASKUL BtoB Yahoo! Tickets, Ouchi-Direct , Others tradecarview, BOOKOFF Online EC transaction Ikyu, Yahoo! Travel, value (other) Yahoo! Dining, Fee-ba
Slide 49: Advertising Products
Advertising Products Main Main Fee Placement Advertising Products Advertiser Format Calculation Pages Base Paid search Search results Sponsored Search® Text Major advertising pages Per-click rate corporations (Performance-based) *2 Text Yahoo! Display Small and Banner medium-sized Ad Network YDN and
Slide 50: Organization Chart of Yahoo Japan Corporation
Organization Chart of Yahoo Japan Corporation Chairman of the As of the end of Mar. 2019 Board of Directors President & Representative Director / CEO Business Promotion Group Board of Media Services Group Directors (625) (178) Services Management Group (250) Audit and Shopping Services Group Search
Slide 51: Consolidated Subsidiaries and Affiliates
Consolidated Subsidiaries and Affiliates As of the end of Mar. 2019 Major consolidated subsidiaries ASKUL Corporation Carview Corporation CLASSIFIED Corporation Dynatech inc. eBOOK Initiative Japan Co., Ltd. ecohai Co., Ltd. GYAO Corporation Ikyu Corporation Netrust, Ltd Passrevo Corporation Syner
Slide 52: 主な連結子会社および持分法適用会社
主な連結子会社および持分法適用会社 52