Drecom Co., Ltd. · TSE:3793

Drecom — Q2 FY2010 Earnings Presentation

42 slides from Drecom's earnings presentation, Nov 6, 2009

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

   2010 3 9 2 2009/11/6 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 2 2 3 4 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 2

3. Slide 3: Results summary April-September 2009

   1 2 2009 4 -9 1,072 1,047 82 10 mixi mixi PC 8 24 10 27 mixi 210 11 5 mixi poncan Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 3

4. Slide 4: SI and ASP business

   1 2 SI & ASP 2010 3 1 10% Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 4

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

   1 2 23 2009 9 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 5

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

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

7. Slide 7: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

   1 2 2009 4 9 2009 4 2010 3 (%) (%) 1,070 1,020 5 2,190 49 81 14 479 89 91 78 11 609 81 96 1 58 1 100 2009 10 26 2009 7 22 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 7

8. Slide 8: Quarterly trends

   1 2 562 52 700 597 572 581 600 567 562 529 509 479 492 500 417 400 333 300 240 200 170 101 98 80 101 75 100 33 28 52 0 4 25 23 100 54 134 152 200 161 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2007 3 2008 3 2009 3 2010 3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 8

9. Slide 9: EBITDA

   1 EBITDA 2 EBITDA 90 EBITDA 200 150 100 50 50 140 111 96 0 106 32 143 165 24 83 50 121 63 90 50 100 150 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2007 3 2008 3 2009 3 2010 3 + + Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 9

10. Slide 10: Quarterly trends

    1 2 151 27 357 64 500 200% 108% 100 90% 450 90 89% 400 80 70% 350 64% 64% 70 68% 68% 65% 64% 300 60 57% 54% 250 51% 50 47% 48% 47% 200 42% 41% 40 37% 150 32% 31% 30% 30 29% 29% 27% 27% 100 23% 20 50 10 72 153 75 158 63 196 116 259 196373 219 336 193324 178 291 177 326 166 368 148 346 171333 136 344

11. Slide 11: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    1 2 2009 7-9 2008 7-9 2009 4-6 151 166 -9% 136 +11% 88 90 -2% 85 +4% 63 75 -16% 51 +24% 357 368 -3% 344 +4% 54 50 +8% 36 +50% 13 0 11 +18% 137 133 +3% 138 -1% 152 184 -17% 156 -3% Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 11

12. Slide 12: Quarterly trends by segment

    1 2 242 250 239 13 13 17 20 205 206 122 194 189 189 12 12 200 113 12 185 182 185 12 16 16 16 32 33 23 16 22 23 19 26 27 140 84 57 53 150 133 10 75 71 68 10 62 67 11 8 104 62 94 7 55 100 7 7 104 108 5 34 96 27 87 86 75 76 78 75 79 50 55 56 60 57 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2007 3 2008

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

    1 2 2009 4-9 2008 4月-9 2009 4 - 2 0 0 9年 6 1,072 1,047 509 288 343 136 26.9% 32.7 % 26.7% 783 703 372 700 693 344 65.3% 66.2 % 67.6 % 82 10 28 79 3 27 1 93 40 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 13

14. Slide 14: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    1 2 2009 9 200 9 6 2008 9 1,045 1,020 1,172 1,008 996 1,598 2,054 2,017 2,771 497 475 700 127 160 260 1,429 1,381 1,811 1,311 1,264 1,700 63.8% 62.7 % 6 1 . 3% Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 14

15. Slide 15: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    1 2 2009 4 -9 2008 4-9 2009 4 -2009 6 60 11 1 69 112 19 57 164 30 584 688 602 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 15

16. Slide 16: 1Q 2Q 3Q

    1 2 53 47 700 600 205 189 200 204 210 197 500 189 198 200 198 (38.8%) 20 400 185 1 89 16 20 31 8 1 65 108 25 25 14 0 27 0 11 55 34 42 7 72 90 300 34 37 0 13 0 0 18 5 12 1 0 34 20 35 9 13 129 165 56 200 20 49 164 132 136 90 86 134 79 100 122 66 175 172 134 93 131 114 139 91 114 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q

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

    1 2 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 17

18. Slide 18: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    2 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 18

19. Slide 19: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    2 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

    2 ２００９年 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 20

21. Slide 21: Platform on Platform

    2 1 mixi PC/ 2 Platform on Platform poncan 3 Facebook SNS Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 21

22. Slide 22: PC mixi mixi

    2 8 24 PC mixi 10 27 mixi PC Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 22

23. Slide 23: Social game provider initiatives on mixi

    2 ソーシャルゲームプロバイダーとしての取り組み mixi 3 160 210 11 5 （人） 2,500,000 2,000,000 1,500,000 1,000,000 10 27 500,000 8 24 PC 0 8/24 8/31 9/07 9/14 9/21 9/28 10/05 10/12 10/19 10/26 11/2 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 23

24. Slide 24: Social game provider initiatives, DeNA Forum 2009

    2 ソーシャルゲームプロバイダーとしての取り組み 8 24 DeNA 2010 1 30 Forum2009 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 24

25. Slide 25: poncan and mixi

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

26. Slide 26: Providing monetization mechanism for SNS platform mixi

    2 マネタイズの仕組みの提供 Platform on Platform Platform （Platform on Platform） SNS Platform mixi 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

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

28. Slide 28: mixi and TBS

    3 mixi 210 10 27 mixi 4 TBS ASP 3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 28

29. Slide 29: ARPU

    3 ARPU 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 7 8 9 2007 2008 2009 2008 3 2009 3 2010 3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainme

30. Slide 30: CTR, poncan, ad4U

    3 2 CTR poncan ad４U poncan 100 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 30

31. Slide 31: ad4U ad inventory

    3 ad4U （万インプレッション） ad4U 配信在庫数 30,000 25,000 20,000 15,000 10,000 5,000 0 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 2008 2009 2009 3 2010 3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 31

32. Slide 32: CTR

    3 100 1 218 2 144 100 1 160 2 141 1 CTR 100 2 CTR 1 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 32

33. Slide 33: mixi, poncan, ad4U

    3 mixi poncan ad4U 1 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 33

34. Slide 34: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    4 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 34

35. Slide 35: 2010 topics

    4 2010 3 2 トピックス 9 7 2010/3 9 7 2010/2 CMS SOHGI 2010/1 2009/12 2009/11 2009/10 2009/9 2009/8 2009/7 8 28 RSS RSS Lite 2009/6 8 19 2009/5 CMS 2009/4 8 3 i-mode 7 23 ASP 3 7 16 TBS 7 13 mixi poncan Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 35

36. Slide 36: Timeline 2005-2009

    4 ～２００５年 ２００６年 ２００７年 ２００８年 ２００９年 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 36

37. Slide 37: SNS market trends

    4 SNS ex. SNS EC/ ゲーム / コミュニケーション 学び / 旅行 / エンターテイメント social graph SNS (Social Media) Browser OS PC& mobile Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 37

38. Slide 38: Global SNS users

    4 mixi SNS 2010 1 SNS SNS SNS 2億2,800万人 2 6,200万人 3 1,792万人 1 3億人 1 4,000万人 4 1,510万人 1 2億人 1 2,300万人 5 4,200万人 6 1 2 http://www.itmedia.co.jp/news/articles/0909/09/news083.html 3 http://en.wikipedia.org/wiki/Renren 4 http://www.jjxww.com/html/show.aspx?id=153766&cid=85 5 http://www.itmedia.co.jp/ne

39. Slide 39: Facebook and mixi games

    4 Facebook 6,000 1 mixi 160 FaceBook 2 mixi 3 1 11 5 2 http://www.insidesocialgames.com/2009/11/02/top-25-facebook-games-for-november-2-2009/ 3 http://degrees.sakura.ne.jp/cgi-bin/mixi.cgi?mode=user_ranking Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 39

40. Slide 40: poncan

    4 http://social.drecom.co.jp/ 1 4 poncan Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 40

41. Slide 41: Mobile content lineup

    4 49 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 @ docomo 3 7/27 DLE au 1/22 I LOVE TV docomo 1/19 , au 1/22 docomo 8/3 2009 9 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertain

42. Slide 42: Drecom

    Drecom Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 42

Drecom — Q2 FY2010 Earnings Presentation on 6ix