Ly Corporation · TSE:4689
Ly — Yahoo Japan — FY2010 Earnings Presentation
43 slides from Ly's earnings presentation, Apr 22, 2011
Slide 1: Yahoo Japan Corporation FY2010 4Q & Annual Results
Yahoo Japan Corporation FY2010 4Q & Annual FY2010-4Q A l Results R lt ((Jan.-Mar. 2011 / Apr. p 2010-Mar. 2011)) April 22, 2011 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: FY2010 Highlights – Financial Data
FY2010 Highlights – Financial Data The economic slowdown had a strong impact in FY2009, but performance made a sharp recovery in FY2010, particularly in the advertising business. Sales and p profits grew g for the 14th consecutive year, y , despite p a decrease in revenue due to transfer of the rese
Slide 4: FY2010 Highlights – Business Segments
FY2010 Highlights – Business Segments Media Business Advertising sales rose steadily throughout the fiscal year. Despite p a decrease in revenue resulting g from the transfer of research-related business,, Media Business revenue increased compared with a year earlier. BS Business Revenue g grew yyea
Slide 5: FY2010-4Q Highlights – Financial Data
FY2010-4Q Highlights – Financial Data Quarterly revenue increased mainly led by listing advertising and display advertising. Revenue and profits hit a record high. (¥100M) YOY 2009-4Q 2010-4Q Change Revenue 732 757 3.5% Operating p g Income 387 423 9.5% Ordinary Income 386 427 10.4% Quarterly Net In
Slide 6: FY2010-4Q Highlights – Media Business (1)
FY2010-4Q Highlights – Media Business (1) Listing advertising through advertising agencies (Paid search advertising [Sponsored Search] and interest-based advertising [Interest Match] ) - Listing Li ti advertising d ti i revenue th through h advertising d ti i agencies i iincreased d year-on-year and
Slide 7: FY2010-4Q Highlights – Media Business (2)
FY2010-4Q Highlights – Media Business (2) Display advertising - Display advertising revenue increased year-on-year and quarter-on-quarter, and hit a record high. - Driven by the continued momentum, Brand Panel revenue increased year on year and from the previous quarter. As a result, revenue hit a r
Slide 8: FY2010-4Q Highlights – BS Business
FY2010-4Q Highlights – BS Business Listing advertising through online order (Paid search advertising [Sponsored Search] and interest-based advertising [Interest Match] ) - Revenue increased year on year and from the previous quarter quarter. The holding of promotion seminars in major cities througho
Slide 9: FY2010-4Q Highlights – Consumer Business
FY2010-4Q Highlights – Consumer Business E-Commerce related revenues (Yahoo! Auctions, Yahoo! Shopping, Pay digital content - Aggressively implemented year-end/new year sales campaigns, bonus point campaigns to increase usage by smart phone owners owners, and other sales measures. measures - Practic
Slide 10: Response Following the Great East Japan Earthquake (1)
Response Following the Great East Japan Earthquake (1) Established an earthquake disaster project. The special team provided information on y efforts on a 24-hour basis. The team g the disaster and the relief and recovery gathered and listed essential information on our website, centered on the top
Slide 11: Response Following the Great East Japan Earthquake (2)
Response Following the Great East Japan Earthquake (2) Began collecting relief donations over the Internet through Yahoo! Charity Fund. Donations reached the ¥1 billion mark in jjust six days. y On Yahoo! Shopping, we began offering a Support Gift Service that delivers goods to the disaster regions.
Slide 12: Increase in Importance of Internet Media
Increase in Importance of Internet Media According to a survey by Nomura Research Institute Ltd., the importance and credibility of Internet portals as media increased substantially. Percentage of respondents who said that Considered an important media and information source “credibility increased”
Slide 13: Business Data to be Disclosed Quarterly (1)
Business Data to be Disclosed Quarterly (1) Reasons for quarterly disclosure of business data • To enable readers to g gain a proper p p understanding g of business conditions by y disclosing data along with earnings performance. • Monthly disclosure indicator figures have low correlation with earni
Slide 14: Business Data to be Disclosed Quarterly (2)
Business Data to be Disclosed Quarterly (2) Business Data to be Disclosed Quarterly - continue Indicator ((Quarterly y average) g ) FY2009-4Q FY2010-4Q Yahoo! Auctions Number of monthly unique browsers (millions) 36.81 36.79 Number of stores (quarter-end) 17,093 17,344 Transaction value (quarterly t
Slide 15: Review of FY2010-4Q Business Outlook
Review of FY2010-4Q Business Outlook Advertising, shopping-related and pay digital content sales were doing extremely well during the early part of March. However, because of the earthquake, quarterly sales fell to a little above the mid-point of the forecast range. The decline reflected the Company
Slide 16: FY2011-1Q Business Outlook
FY2011-1Q Business Outlook We are targeting sales growth based mainly on increases in advertising, shopping-related, and pay digital content sales. Although it is unclear at this point what the impact of the earthquake disaster will be be, we will continue to invest for future growth based on the vi
Slide 17: FY2010 Financial Results
FY2010 Financial Results •Major Consolidated subsidiaries at the end of FY2010 Cirius Technologies, Inc. Firstserver, Inc. GyaO CORPORATION IDC Frontier Inc. Indival, Inc. Netrust, Ltd. Yahoo Japan Customer Relations Corporation Y’s Insurance Inc. Y’s Sports Inc. •Affiliated compan
Slide 18: FY2010 Statements of Income
FY2010 Statements of Income FY2009 FY2010 Changes Revenue (¥100M) 2,798 2,924 4.5 % Cost of Sales (¥100M) 326 292 -10.3 10 3 % Gross Profit (¥100M) 2,472 2,631 6.4 % SG&A ((¥100M)) 1,033 ,033 1,035 ,035 0.1 % 0 Operating Income (¥100M) 1,438 1,596 11.0 % Ordinary Income (¥100M) 1,433 1,602 11.8 % Ne
Slide 19: Annual Net Sales
Annual Net Sales Net Revenue up 14 consecutive years since the start of services (¥ 100M) 3,000 Consumer Business 2,000 BS Business 1,000 Media Business 0 FY2006 FY2007 FY2008 FY2008 FY2009 FY2010 (Gross) (Gross) (Gross) (Net) (Net) (Net) R Revenue 2 125 2,125 2 620 2,620 2 959 2,959 2 657 2,657 2 7
Slide 20: Annual Profit
Annual Profit Operating, Ordinary, and Net Income up 14 consecutive years since the start of services (¥ 100M) 1,500 50% 1 200 1,200 % 40% 900 30% 600 20% 300 10% 0 0% FY2006 FY2007 FY2008 FY2009 FY2010 Operating Income 1,062 1,248 1,346 1,438 1,596 Ordinary Income 1,028 1,215 1,329 1,433 1,602 Net
Slide 21: FY2010 Annual Performance Breakdown by Business
FY2010 Annual Performance Breakdown by Business (¥ 100M) Revenue Breakdown Gross Operating Ordinary Operating Ordinary Revenue Profit SG&A Income Income Margin Margin by Business Group Media Business 1,102 Advertising Others 96% 4% 985 394 590 594 53.6% 53.9% Advertising 63% Corporate Services 25% B
Slide 22: Annual SG&A Breakdown
Annual SG&A Breakdown (¥ 100M) Increase/ Major factors for yoy changes FY2009 FY2010 % Decrease Changes Personnel Expenses 303 318 30 7% 30.7% 14 4 8% 4.8% Number of personnel 4,748 in total: -2.7% from 2010/3 Business Commissions 127 134 13.0% 6 5.1% Depreciation Expenses 89 85 8.3% -4 -4.5% Royalt
Slide 23: FY2010 Balance Sheets
FY2010 Balance Sheets Major Items End of FY2009 End of FY2010 Increase/ Major Factors for (2010/3/31) (2011/3/31) Decrease Increase/Decrease (¥100M) Assets Current Assets 2,033 2 033 2 525 2,525 492 I Increase due d tot operating ti activities ti iti Cash and Deposits 1,392 1,886 494 Accounts Receiv
Slide 24: FY2010 Cash Flow Statements
FY2010 Cash Flow Statements FY2010 Major Items (Apr.2010 - Mar. 2011) Major Factors for Changes (¥ 100M) Operating Activities 675 Increase in net income before Net Income before Income Taxes 1,574 income taxes Depreciation Expenses 98 Application of the Accounting Standard for Asset Retirement Oblig
Slide 25: FY2010 4Q Financial Results
FY2010 4Q Financial Results FY2010-4Q •Major Consolidated subsidiaries at the end of FY2010-4Q Cirius Technologies, Inc. Firstserver, Inc. GyaO CORPORATION IDC Frontier Inc. Indival, Inc. Netrust, Ltd. Yahoo Japan Customer Relations Corporation Y’s Insurance Inc. Y’s Sports Inc. •A
Slide 26: FY2010-4Q Statements of Income
FY2010-4Q Statements of Income 2009-4Q 2010-4Q Changes Revenue (¥100M) 732 757 3.5 % C t off S Cost Sales l (¥100M) 78 73 -6.2 62% Gross Profit (¥100M) 653 683 4.7 % SG&A (¥100M) 266 260 -2.4 2.4 % Operating Income (¥100M) 387 423 9.5 % Ordinary Income (¥100M) 386 427 10.4 % Quarterly Net Income (¥1
Slide 27: Quarterly Revenue
Quarterly Revenue (¥ 100M) Net basis 600 Consumer Business BS 400 Business 200 Media Business 0 Gross Net 08/1-3 4-6 7-9 10-12 09/1-3 4-6 7-9 10-12 10/1-3 4-6 7-9 10-12 11/1-3 Total 742 655 660 669 671 676 680 709 732 705 711 750 757 *Figures of 08/1-3 are indicated on a gross basis. *The Company re
Slide 28: Quarterly Profits
Quarterly Profits (¥ 100M) 400 50% 40% 300 30% 200 20% 100 10% 0 0% 08/1-3 4-6 7-9 10-12 09/1-3 4-6 7-9 10-12 10/1-3 4-6 7-9 10-12 11/1-3 Operating Income 337 328 330 331 355 342 344 364 387 376 384 411 423 Ordinary Income 328 324 326 328 350 340 341 364 386 375 385 413 427 Operating Margin 45% 50%
Slide 29: FY2010-4Q Performance Breakdown by Business
FY2010-4Q Performance Breakdown by Business (¥ 100M) Revenue Breakdown Gross Operating Ordinary Operating Ordinary Revenue Profit SG&A Income Income Margin Margin by Business Group Advertising 98% Media Business 300 Others 2% 271 105 165 167 55.2% 55.7% Advertising 63% Corporate Services 24% BS Busi
Slide 30: Quarterly SG&A Breakdown
Quarterly SG&A Breakdown (¥ 100M) Major factors for YoY changes QoQ YoY 09/4Q 10/3Q 10/4Q % Change Change Personnel Expenses 78 82 75 28.9% -9.2% -3.8% Expenses related to maintenance Business Commissions 32 33 35 13.6% 5.1% 10.7% and operations increased Sales Promotion Costs 20 21 23 9.2% 13.3% 14
Slide 31: FY2010-4Q Balance Sheets
FY2010-4Q Balance Sheets Increase/ Major Factors for Major Items 2010/12/31 2011/3/31 (¥ 100M) Decrease Increase/Decrease Assets Current Assets 2,134 2,525 391 Cash and Deposits 1,475 1,886 411 Increase in cash from operating activities Accounts Receivable -Trade 361 369 8 Fixed Assets 2,187 2,191 4
Slide 32: FY2010-4Q Cash Flow Statements
FY2010-4Q Cash Flow Statements FY2010-4Q (¥ 100M) Major Items Major Factors for Changes (Jan.-Mar. 2011) Operating Activities 439 Quarterly Net Income before Income Taxes 424 Increase in quarterly net income before income taxes Depreciation Expenses 26 Amortization of Goodwill -7 Other Current Asset
Slide 33: 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 08/3 6 9 12 09/3 6 9 12 10/3 6 9 12 11/3 Directors and Auditors of Subsidiaries 32 26 25 24 39 31 32 30 30 24 24 17 17 Employees of Subsidiaries 1,062 685 747 814 977 1,082 1,228 1,249 1,238
Slide 34: Appendix
Appendix 34
Slide 35: Listing Advertising Sales by Industry
Listing Advertising Sales by Industry Industries with large year on year increase Industries with large year on year decrease Recruitment Services Finance/Insurance/Securities Transportation/Leisure Educations/University y Fashion/Accessories 09/4Q 10/1Q 2Q 3Q 4Q Finance/Insurance/Securiti
Slide 36: Display Advertising Sales by Industry
Display Advertising Sales by Industry Industries with large year on year increase Industries with large year on year decrease Internet Information Service/Email Service Autos (Transport Equipment) Real Estate/Construction Beverages/Cigarettes Cosmetics/Toiletries Fashion/Accessories 09/4
Slide 37: Increased Use of Yahoo! JAPAN via Smartphones
Increased Use of Yahoo! JAPAN via Smartphones Yahoo! JAPAN start page page views for smartphones (%) Number of page views of 1500 Yahoo! JAPAN start page grew 17 times (Compared with 2009/12) 1000 500 0 2009/12 2010/3 6 9 12 2011/3 (Y/M) * December 2009 figure is baseline of 100. * Figures excluding
Slide 38: Services Provided for Various Types of Devices
Services Provided for Various Types of Devices Optimized services matching each device feature Yahoo! JAPAN for Smartphones GyaO! Optimized for iPad Picture Books for TV Smartphone optimized services iPad optimized services TV optimized services Maps, Transit, Gourmet, Traffic Information, Comics yu
Slide 39: Apps for Smartphones and Tablets
Apps for Smartphones and Tablets Apps for iPhone Yahoo! JAPAN Dictionary Auctions GyaO! Transit Rikunabi NEXT Maps Messenger Knowledge Search Kids Safety Net Poffe Translation Infoloupe shakaciz Sketch-a-Search Voice Search Headline News loupe Business Browser Comics Hotel Booking g Harlequin q Rame
Slide 40: Organization Chart of Yahoo! JAPAN
Organization Chart of Yahoo! JAPAN Auditors Board of Directors President & CEO CSO CCO CTO Director & COO President & CEO Director & CFO Media Business BS Business Consumer R&D Group Business Administrative Group (495) Group (321) Group (283) (1,686) Division Regional Front-End Media M di Service S
Slide 41: Yahoo! JAPAN Group – Major Companies
Yahoo! JAPAN Group – Major Companies Consumer Media Business BS Business Operations Business Group Group Group Group p Yahoo Japan Y’s Sports Inc. IDC Frontier Inc. Y’s Insurance Inc. Customer Relations Corporation GyaO y Firstserver Inc Firstserver, Inc. N t Netrust, t Ltd Ltd. CREO CO., LTD. CORPO
Slide 42: Old & New Business Segments Breakdown Comparison Table
Old & New Business Segments Breakdown Comparison Table --Former Main Components-- --New Main Components-- Advertising Media Business Media Business Advertising Display advertising (banner, text, email, and video advertising) Display advertising (banner, text, email, and video advertising) Listing ad
Slide 43: IR information
Yahoo Japan p Corporation p IR information is available at : http://ir.yahoo.co.jp/en/ 43