Drecom Co., Ltd. · TSE:3793

Drecom — Q2 FY2009 Earnings Presentation

45 slides from Drecom's earnings presentation, Nov 6, 2008

1. Slide 1: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

   2009 3 8 2008/11/6 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

2. Slide 2: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

   1 2 3 4 5 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 2

3. Slide 3: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

   1 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 3

4. Slide 4: ad4U 2008 highlights

   1 2008 4 9 1,047 1,000 946 10 178 ad4U 2008 9 30 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 4

5. Slide 5: Quarterly revenue trend

   1 2 7% 567 33 700 597 572 600 529 479 567 500 417 400 333 300 240 200 101 98 101 80 100 33 0 25 23 100 134 152 161 200 2007 3 3Q 4Q 2008 3 2Q 3Q 4Q 2009 3 2Q 2Q 1Q 1Q Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 5

6. Slide 6: EBITDA

   1 EBITDA 2 83 EBITDA 200 165 143 150 106 100 83 50 32 24 140 111 96 0 50 100 150 2007ᐕ3᦬ᦼ 3Q 4Q 2008ᐕ3᦬ᦼ 2Q 3Q 4Q 2009ᐕ3᦬ᦼ 2Q 2Q 1Q 1Q Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 6

7. Slide 7: PL

   1 2 PL 2008 4- 9 2008 4- 6 2007 ᐕ4-9 ᦬ 1,047 479 946 703 302 530 32.9% 37. 0% 44. 0% 693 326 708 10 23 178 3 31 183 93 72 352 2008 4-6 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 7

8. Slide 8: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

   1 2008 9 2008 6 2008 ᐕ3 ᦬ᧃ 1,172 1, 237 1,237 1,598 1, 577 1,604 2,771 2, 808 2,841 700 685 1,519 260 293 326 1,811 1, 830 995 61.3% 61. 3% 29. 6% 2008 3 2 50 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 8

9. Slide 9: CF

   1 2 CF 2008 4- 9 2008 4- 6 2007 4 2007 4-9 -2008 3 11 25 111 87 112 41 990 1,080 164 239 915 1,212 688 798 625 632 1.5 1 1 2 1 2 2 2008 9 2008 6 2008 3 㜞 688 798 625 536 611 1, 281 152 187 656 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 9

10. Slide 10: 1Q 2Q 3Q

    1 1Q 2Q 500 250 450 200㧑 373 400 367 200 336 324 326 350 291 300 259 150 250 196 200 158 108㧑 100 89㧑 68㧑 65㧑 150 100 64㧑 50 47㧑 54㧑 51㧑 50 0 0 2007 3 3Q 4Q 2008 3 2Q 3Q 4Q 2009 3 2Q 2Q 1Q 1Q Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 10

11. Slide 11: 2Q 3Q 4Q

    1 250 13 13 17 20 200 113 122 12 12 16 16 23 22 26 27 150 84 10 75 10 11 8 62 67 7 55 62 100 7 96 34 87 75 76 78 75 56 60 57 50 0 2007ᐕ3᦬ᦼ 2008ᐕ3᦬ᦼ 2009ᐕ3᦬ᦼ 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 104ฬ 133ฬ 140ฬ 239ฬ 242ฬ 194ฬ 185ฬ 182ฬ 185ฬ Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with enterta

12. Slide 12: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

    2 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 12

13. Slide 13: PL by segment

    2 PL 2007 10 2008 3 1 2008 3 2 2008ᐕ4᦬㨪2008ᐕ9᦬ 33 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 13

14. Slide 14: PL

    2 PL 2007 10 2008 3 1Q 200 4Q 107 Q 87.8% 4Q 56.0% 2008 3 2008 3 2Q 3Q 4Q 1Q 87.8 68.9 67.7 56.0 47.1 41.4 32.3% 31.2 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 14

15. Slide 15: BS

    2 BS 2008 3 9 396 2008 9 2008 3 688 625 536 1,281 152 656 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 15

16. Slide 16: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

    2 3 2008 4 2008 9 2 2008 9 30 2 / / 8,077 45,256 2,158 6,731 63,933 4,094 40% 1 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 16

17. Slide 17: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

    3 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 17

18. Slide 18: CGM / UGC

    3 3 C G M / UG C CGM CG M UGC Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 18

19. Slide 19: ASP CMS CGM

    3 ASP CMS CGM CGM SEO / ad4U Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 19

20. Slide 20: 2009ᐕ3᦬ᦼ1Q 2Q 3Q

    3 600 500 242 274 (49.0%) (47.5%) 400 300 25 41 (5.1%) (7.6%) 200 227 262 (46.0%) (45.4%) 100 0 2009ᐕ3᦬ᦼ1Q 2Q 3Q 4Q 2008 3 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 20

21. Slide 21: UGC

    3 100 80 UGC UGC J 60 6 40 20 BtoB 0 05 06 07 08 05 07 2008 7 18 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 21

22. Slide 22: J-KEN

    3 45 45 5 2008 4-9 2 /2008 10 J-KEN Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 22

23. Slide 23: ARPU

    3 ARPU 3 9 4 ARPU 250 (a) ARPU (b) a: b: ARPU 320,000 600 300,000 500 280,000 400 260,000 300 240,000 200 220,000 100 200,000 0 2007 ᐕ 5 ᦬ 6᦬ 7᦬ 8᦬ 9 ᦬ 10 ᦬ 11 ᦬ 12 ᦬ 2008 ᐕ 2 ᦬ 3᦬ 4᦬ 5᦬ 6᦬ 7᦬ 8᦬ 9᦬ 4᦬ 1᦬ Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 23

24. Slide 24: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

    3 10 10,000 2 10 31 80,000 16,000 70,000 14,000 60,000 12,000 50,000 10,000 40,000 8,000 30,000 6,000 20,000 4,000 10,000 2,000 0 0 2007 ᐕ 5 ᦬ 6᦬ 7᦬ 8᦬ 9 ᦬ 10 ᦬ 11 ᦬ 12 ᦬ 2008 ᐕ 2 ᦬ 3᦬ 4᦬ 5᦬ 6᦬ 7᦬ 8᦬ 9᦬ 4᦬ 1᦬ Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 24

25. Slide 25: SEO

    3 2007 66% SEO 250,000 160,000 240,000 155,000 230,000 150,000 220,000 145,000 210,000 140,000 200,000 135,000 190,000 130,000 180,000 125,000 170,000 120,000 2007ᐕ 5 ᦬ 6᦬ 7᦬ 8᦬ 9 ᦬ 10 ᦬ 11 ᦬ 12 ᦬ 2008ᐕ 2 ᦬ 3᦬ 4᦬ 5᦬ 6᦬ 7᦬ 8᦬ 9᦬ 4᦬ 1᦬ Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with en

26. Slide 26: CMS CGM PKG ASP

    3 CMS CGM PKG HP CGM BtoBtoC CGM CGM SNS CGM ASP ASP CGM ASP EC Web CMS Web Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 26

27. Slide 27: CGM CMS

    3 CGM 55 08 9 CMS 13 CMS 26% Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 27

28. Slide 28: 2009 ᐕ 3 ᦬ᦼ 1Q 2Q 3Q

    3 300,000 250,000 159,148 185,657 (70.2%) (70.6㧑) 200,000 150,000 100,000 67,537 77,381 (29.8%) (29.4㧑) 50,000 0 2009 ᐕ 3 ᦬ᦼ 1Q 2Q 3Q 4Q 2008 3 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 28

29. Slide 29: ASP CMS

    3 ASP CMS 45,000 40,000 35,000 18,787 19,970 21,002 30,000 18,729 18,622 25,000 16,552 20,000 15,000 17,988 16,836 19,370 15,842 10,000 15,372 13,698 5,000 0 ASP 2008 ᐕ 3 ᦬ᦼ 1Q 2Q 3Q 4Q 2009 ᐕ 3 ᦬ᦼ 1Q 2Q 30,250 33,994 34,571 36,775 36,806 40,372 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reser

30. Slide 30: WIN WIN

    3 WIN WIN ad4U Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 30

31. Slide 31: ad4U Livedoor ad4U

    3 7 ad4U 8 Livedoor ad4U 3 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 31

32. Slide 32: ad4U

    3 ad4U ad4U ㈩ା࿷ᐶᢙ 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2008 5 6 7 8 9 10 11 12 2008 2 3 4 1 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 32

33. Slide 33: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

    4 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 33

34. Slide 34: 1Q 2Q 3Q

    4 2,500 2,200 2,115 2,000 1,543 1,500 1,047 946 1,000 843 602 504 479 500 417 170 46 4 9 60 0 -23 -54 -114 -94 -152 -178 -249 -500 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q㧔੍ᗐ㧕 2007 3 2008 3 2009 3 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 34

35. Slide 35: TOPICS

    2009 3 2 TOPICS 4 2009/3 2009/2 2009/1 2008/12 2008/11 2008/10 2008/9 2008/8 Award on Rails 2008 2008/7 2008/6 livedoor ad4U 2008/5 2008/4 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 35

36. Slide 36: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

    5 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 36

37. Slide 37: Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment

    4 2004 2005 2006 2007 1,167 1,048 843 80% 559 66% 201 562 759 135% 1, 074 142% (199) (463) (522) 113% (568) 109% (2) (99) (237) 239% (506) 214% 412 589 748 1 27% 848 113% 2 14 55 393% 116 211% 3 16 69 431% 221 320% 6 13 29 223% 87 300% 103 123 158 128% 182 115% 225 236 248 105% 227 92% 3 23 767% 484

38. Slide 38: SNS

    5 SNS 2008 4 SNS SNS 2008 3 500 R&D SNS 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 (2005 3 ) (2006 3 ) (2007 3 ) (2008 3 ) (2009 3 ) CGM/SNS 2008 R&D h ttp: / / www. im pressrd.j p/news/080526/cgm_sns2008 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 38

39. Slide 39: eMarketer

    5 2008 7.75 2012 44 2006 5,000 4,000 3,000 2,000 1,000 0 2006 2007 2008 2009 2010 2011 2012 eMarketer 2 0 0 8 / 6 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 39

40. Slide 40: ad4U

    5 ad 4 U ࠼ԓᣐ̮ἇὊἢ Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 40

41. Slide 41: ad4U Livedoor ad4U

    5 2008 6 ad4U ad4U ad4U 7 2008 7 ad4U Livedoor ad4U 8 ᭉᄤad4U Livedoor ad4U Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 41

42. Slide 42: docomo au Softbank

    5 45 docomo au Softbank J-KEN J J + J J J - J J J J SUPER SOUND J Music J Music QUAKE call QUAKE LOVER QUAKE LOVER FULL OK 980 @ 2 10 31 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 42

43. Slide 43: iPhone Flash GIF

    5 iPhone ဒ᩿ ỂẨộẴẇ Flash GIF Flash Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 43

44. Slide 44: Flash

    5 http://flash.mmelo.jp Flash 3 2 Flash Flash 100 2 2008/10/31 http://u-colle.jp/ UGC http://seleho.jp 11 /50 2008/10/31 Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 44

45. Slide 45: Drecom i-mode NTT

    Drecom i-mode NTT SoftBank au EZweb EZ KDDI Copyright © 2001-2008 Drecom Co., Ltd All Rights Reserved. with entertainment 45

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