Ly Corporation · TSE:4689
Ly — Yahoo Japan — Q1 FY2016 Earnings Presentation
49 slides from Ly's earnings presentation, Jul 28, 2016
Slide 1: FY2016-1Q Business Results
Yahoo Japan Corporation FY2016-1Q Business Results (April - June 2016) July 28, 2016
Slide 2: Table of Contents
Table of Contents P. 4 FY2016-1Q Financial Highlights P. 13 Usage Trend of Services P. 16 Usage Trend of Domestic e-Commerce P. 19 Core Businesses (Advertising/Auctions/Membership Services) P. 27 Upfront Investment-Stage Businesses (Shopping/Credit Card) P. 36 Mid-Term Growth Strategies P. 38 Busine
Slide 3: 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 4: FY2016-1Q Financial Highlights
FY2016-1Q Financial Highlights 4
Slide 5: Executive Summary for FY2016-1Q
Executive Summary for FY2016-1Q Revenue 204.2 (¥B) YoY +84.7% Operating income 50.8 (¥B) YoY +3.5% EBITDA 59.9 (¥B) YoY +9.5% Net income attributable to owners of the parent 35.5 (¥B) YoY +6.4% Diluted EPS ¥6.2 YoY +6.4% Advertising-related revenue 65.3 (¥B) YoY +3.3% Via smartphones 47.2% Display a
Slide 6: Executive Summary for FY2016-1Q
Executive Summary for FY2016-1Q Advertising-Related Business -Growth of display advertising drove the revenue growth of overall advertising business. e-Commerce-Related Business -e-Commerce-related revenue increased dramatically as a result of the consolidation of ASKUL. -Shopping-related transactio
Slide 7: Revenue
Revenue (¥Billion) 204.2 billion YoY +84.7% 200 110.5 100 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q JGAAP IFRS Gross basis Net basis Note: Between FY2008 and FY2012, we indicated revenue on a net rather than gross basi
Slide 8: Quarterly Revenue Breakdown
Quarterly Revenue Breakdown (¥Billion) Marketing Solutions Business 204.2 17.4 YoY +2.4% Growth in display advertising revenue +3.1 Includes ASKUL’s Consumer Business (*) 110.5 124.0 revenue and 14.3 others (*) YoY 3.5 x +89.0 Consolidation of ASKUL Corporation 34.9 Other Businesses 64.0 +1.5 65.5 Y
Slide 9: Operating Income
Operating Income (¥Billion) 50.8 billion YoY +3.5% 49.1 50 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q JGAAP IFRS 9
Slide 10: EBITDA
EBITDA(*) (¥Billion) 59.9 billion YoY +9.5% 9.0 50 5.5 49.1 50.8 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q JGAAP IFRS Note: Figures before FY2012 are those of operating income under JGAAP. *EBITDA = operating income (l
Slide 11: Sales Promotional Activities
Sales Promotional Activities Focused on cost-effective promotional activities and succeeded in controlling the promotion cost. (¥Billion) Breakdown of sales promotion costs (*1) FY2014 FY2015 FY2016 Shopping 50％ YAHUOKU! 20％ 18.6 Financial & Payment 20％ 13.7 Video services, etc. (*2) 10％ 9.5 4.0 4.2
Slide 12: Net Income Attributable to the Owners of the Parent
Net Income Attributable to the Owners of the Parent (¥Billion) 35.5 billion YoY +6.4% 40 33.3 30 20 10 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q JGAAP IFRS * Figures of FY2014-1Q includes gains of ¥8.7 billion, compris
Slide 13: Usage Trend of Services
Usage Trend of Services 13
Slide 14: Daily Unique Browsers
Daily Unique Browsers (Million) Smartphones (*1) PC+Others (*2) 57.39 49.23 Usage via smartphones 22.84 36.04 63.7% of total usage FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q *1 Quarterly average; includes accesses to Yahoo! JAPAN via applications and browsers. Access via applications and access via bro
Slide 15: Number of Monthly Active User IDs
Number of Monthly Active User IDs 34.30 (Million) Exceeded 34 million 27.80 27.82 30.21 through an aggressive promotion of logged-in usage June June June June 2013 2014 2015 2016 Note: Monthly number of logged-in Yahoo! JAPAN IDs. 15
Slide 16: Usage Trend of Domestic e-Commerce
Usage Trend of Domestic e-Commerce 16
Slide 17: Total Domestic e-Commerce Transaction Value
Total Domestic e-Commerce Transaction Value 430.0 (¥Billion) ASKUL (*1) Shopping-related (*2) 54.1 Auction-related (*3) 311.0 Achieved transaction value of 259.4 279.5 161.4 102.2 +57.9％ ¥430 billion 80.7 84.2 due to successful 208.8 +2.7％ 214.4 e-commerce strategies 178.7 195.2 FY2013 FY2014 FY2015
Slide 18: Shopping Transaction Value - YoY Growth Rate
Shopping Transaction Value –YoY Growth Rate Strategy +37.9% change +23.1% Growth rate accelerated +3.5% after the strategy change -2.2% FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q Note: Includes transaction values of Yahoo! Shopping and LOHACO. LOHACO’s transaction value is the revenue (closing date: 20
Slide 19: Core Businesses
Core Businesses Advertising Auctions Membership Services 19
Slide 20: Advertising-Related Revenue
Advertising-Related Revenue (¥Billion) Display Ad 63.3 65.3 Paid Search Ad 57.8 53.1 17.5 20.9 27.1 +22.2％ 33.1 Steady growth in display 35.6 36.8 36.2 -10.9％ 32.2 advertising FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q 20
Slide 21: Proportion of Advertising-Related Revenue via Smartphones
Proportion of Advertising-Related Revenue via Smartphones 47.2% 38.3% Exceeded 30.5% 47%, 17.0% a historic high FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q Note: Proportion of advertising revenue via smartphones in total advertising revenue. The prior data have been retroactively adjusted. Contains a pa
Slide 22: Core Businesses
Core Businesses Advertising Auctions Membership Services 22
Slide 23: Auction-Related Transaction Value
Auction-Related Transaction Value (*) 214.4 (¥Billion) Transaction value continued 178.7 195.2 208.8 to grow maintaining its dominant market share FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q * Includes transaction values of YAHUOKU!, tradecarview (http://www.tradecarview.com/), BOOKOFF Online (http://ww
Slide 24: Usage Ratio of Yahoo! ezPay in YAHUOKU!
Usage Ratio of Yahoo! ezPay in YAHUOKU! 50% Exceeded 60% for the first time since the start of service 0% FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q Note: Settlement fees for a successful bid paid by a buyer have been waived for auctions settled using “Yahoo! ezPay” since January 2016. The above is the
Slide 25: Core Businesses
Core Businesses Advertising Auctions Membership Services 25
Slide 26: Number of Monthly Paid-Membership IDs
Number of Monthly Paid-Membership IDs （Million） 17.10 Exceeded 17 million IDs Launch of “Premium GyaO!”, our 15.54 SVOD services, also contributed to 14.16 14.40 the growth (end of month) June June June June 2013 2014 2015 2016 Note: Number of monthly paid-membership IDs is the total of membership I
Slide 27: Upfront Investment-Stage Businesses
Upfront Investment- Stage Businesses Shopping Credit Card 27
Slide 28: Transaction Value during the 20th Anniversary Campaign
Transaction Value during the 20th Anniversary Campaign FY2015 FY2016 Shopping transaction value YoY 2x June 16 June 17 June 18 June 19 June 20 Note: Includes transaction values of Yahoo! Shopping and LOHACO. LOHACO’s transaction value is the revenue (closing date: 20th of every month) of LOHACO busi
Slide 29: Shopping Transaction Value
Shopping Transaction Value （¥Billion） 99.9 Grew dramatically despite controlled spending in 56.9 58.9 72.4 promotion costs FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q Note: Includes transaction values of Yahoo! Shopping and LOHACO. LOHACO’s transaction value is the revenue (closing date: 20th of every m
Slide 30: Shopping-Related Advertising Revenue
Shopping-Related Advertising Revenue 2.9 (¥Billion) YoY 2.2 x 1.3 1.0 0.9 FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q Note: Total of Yahoo Japan Corporation’s non-consolidated Shopping-related advertising revenue; advertising revenue of “StoreMatch”, an advertising product in Yahoo! Shopping sold by Val
Slide 31: Number of Items in Yahoo! Shopping
Number of Items in Yahoo! Shopping （Million） 220 Product lineup enhanced 170 as the number of stores increased 110 70 June June June June (end of month) 2013 2014 2015 2016 Note: Number of items listed on “Yahoo! Shopping”. 31
Slide 32: Yahoo! Premium Members Joined via Yahoo! Shopping
Number of Yahoo! Premium Members Joined via Yahoo! Shopping YoY 8x FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q Note: Number of Yahoo! Premium members who joined via 32 Yahoo! Shopping site.
Slide 33: Upfront Investment-Stage Businesses
Upfront Investment- Stage Businesses Shopping Credit Card 33
Slide 34: Number of Valid Credit Card Holders
Number of Valid Credit Card Holders Launched Yahoo! JAPAN Card (Million) 2.54 YoY 2.5 x 1.02 0.63 0.61 June June June June (end of month) 2013 2014 2015 2016 Note: Includes card holders of KC Card, Yahoo! JAPAN Card and SoftBank Card (“Omakase charge”). 34
Slide 35: Credit Card Transaction Value
Credit Card Transaction Value (¥Billion) Launched Yahoo! JAPAN Card 103.8 YoY 4.2 x 24.4 15.1 15.5 FY2013 FY2014 FY2015 FY2016 1Q 1Q 1Q 1Q Note: Excludes cash advance service. Includes card holders of KC Card, Yahoo! JAPAN Card and SoftBank Card (“Omakase charge”). 35
Slide 36: Mid-Term Growth Strategies
Mid-Term Growth Strategies 36
Slide 37: Enhance Synergies between Services
Enhance Synergies between Services Leverage the immense traffic in our core businesses to develop the upfront investment-stage businesses Traffic referrals e-Commerce (Shopping) Yahoo! Benefits Media Benefits Premium Traffic Services Benefits referrals members Traffic referrals Traffic referrals Cre
Slide 38: Quarterly Business Results Supplemental Information
FY2016-1Q Quarterly Business Results Supplemental Information 38
Slide 39: Business Segment Breakdown
Business Segment Breakdown Marketing Solutions Business ・Advertising: Display advertising (“Yahoo! Display Ad Network (YDN)”, “Premium Advertising”), Paid search advertising “Sponsored Search” ・Business Services: CRM-related services, Recruiting-related services and others ・Personal Services: Web si
Slide 40: Advertising Products
Advertising Products Main Main Fee Placement Advertising Products Advertiser Format Calculation Pages Base Paid search Search results Major Sponsored Search® Text corporations advertising pages Per-click rate (Performance-based) *1 Small and Yahoo! Display medium-sized Ad Network Text / Banner compa
Slide 41: Revenue Trends by Advertising Products
Revenue Trends by Advertising Products 15/1Q 15/2Q 15/3Q 15/4Q 16/1Q Indicator Unit (Apr.-Jun.) (Jul.-Sep.) (Oct.-Dec.) (Jan.-Mar.) (Apr.-Jun.) Total advertising revenue Billion yen 63.3 65.7 66.0 71.7 65.3 YoY Change % +9.5% +8.6% +6.3% +3.5% +3.3% Paid search advertising revenue Billion yen 36.2 3
Slide 42: Quarterly Business Data (1)
Quarterly Business Data (1) 15/1Q 15/2Q 15/3Q 15/4Q 16/1Q YoY Indicator (Quarterly average) Unit (Apr.-Jun.) (Jul.-Sep.) (Oct.-Dec.) (Jan.-Mar.) (Apr.-Jun.) Change Number of total monthly page views Million 64,990 68,102 63,147 66,704 69,891 +7.5% Number of total monthly smartphone page views *1 Mil
Slide 43: Quarterly Business Data (2)
Quarterly Business Data (2) 15/1Q 15/2Q 15/3Q 15/4Q 16/1Q YoY Indicator (Quarterly total) Unit (Apr.-Jun.) (Jul.-Sep.) (Oct.-Dec.) (Jan.-Mar.) (Apr.-Jun.) Change Billion Auction-related transaction value *1 yen 208.8 203.2 233.6 221.0 214.4 +2.7% Billion Shopping-related transaction value *2 yen 102
Slide 44: Quarterly Transaction Value YoY Growth Trend
Quarterly Transaction Value of Shopping-related and Auction-related business YoY Growth Trend 70% 60% 50% 40% Special demand before tax hike 30% 20% 10% 0% New e-commerce strategies introduced Impact of special demand before tax hike -10% 13/1Q 13/2Q 13/3Q 13/4Q 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q 1
Slide 45: Organization Chart of Yahoo Japan Corporation
Organization Chart of Yahoo Japan Corporation President & Representative Director / As of July 1, 2016 CEO SEVPCO / COO SEVPCO / CFO Board of Directors Media & Marketing System Management Audit and Supervisory Solutions Group Corporate Committee Group (875) Management Group Media Company Data & Scie
Slide 46: Number of Directors and Employees
Number of Directors and Employees (at the End of Quarter) (Number of People) 10,000 5,000 0 13/6 13/9 13/12 14/3 14/6 14/9 14/12 15/3 15/6 15/9 15/12 16/3 16/6 Directors and Auditors of 30 33 31 30 30 38 33 33 33 61 61 54 63 Subsidiaries Employees of 1,620 1,660 1,658 1,684 1,695 1,421 1,352 1,595 1
Slide 47: Consolidated Subsidiaries and Associates
Consolidated Subsidiaries and Associates (as of June 30, 2016) Major consolidated subsidiaries ASKUL Corporation Carview Corporation Dynatech inc. ecohai Co., Ltd. FirstServer, Inc. GYAO Corporation IDC Frontier Inc. Ikyu Corporation Netrust, Ltd Passrevo Corporation Synergy
Slide 48: Corporate Governance System
Corporate Governance System 48
Slide 49: YaHoo!
YaHoo! JAPAN