Reliable Partnerships

Transcription

1 The Inside Stories Domestic E-Commerce Business Reliable Partnerships Our domestic e-commerce business has successfully won over merchants and consumers. 10

2 The Market Leader in Domestic E-Commerce Services Launched in 1997 with just 13 merchants, Ichiba recorded sales of 25 million in its first year of operation. Seventeen years later in 2014, it had become Japan s No. 1 Internet shopping mall with over 41,000 merchants, while gross merchandise sales (GMS) from domestic e-commerce centered on Ichiba were in excess of 2 trillion. The driving force behind s growth is its creation of a unique merchant-centric B2B2C business model. In addition, has built Ichiba into a shopping mall that satisfies both merchants and consumers by motivating consumer purchases through the introduction of the Super Points system, which can be used for all transactions in the Group. Around 70 million logged-in members* 1 enjoy a variety of services under our original Shopping is Entertainment concept. Building the Most Reliable E-Commerce System By 2013, Japanese B2C e-commerce, including travel and services, reached 11.2 trillion, or 3.7% of domestic commercial trade. The market is expected to grow to 20 trillion by Transactions via smartphones are also expanding, and are expected to increase from 10% of total transactions in 2014 to 30% in 2018* 2. In response, has stepped up efforts to improve the convenience and security of its services. Smart devices already account for 47% of Ichiba transactions (Q1/ 15), and is enhancing smartphone-based services for usability. Another focus for is the development of a safe and secure shopping environment through a number of measures targeting all stages, from merchant screening to payment systems and merchandise deliveries. By working in close cooperation with merchants, aims to create a premium mall in which users can shop with confidence. *1 Total number of members who have logged-in at least once after registration *2 FY2013 E-Commerce Market Survey: METI/August 2014 logged-in members* 1 up 8 million YoY to 70.3 million Domestic e-commerce GMS 2.01 trillion, up 13.7% YoY (17.2% excluding the Baseball Victory Sale in 2013.) Number of merchants 41,442 Ichiba unique buyers Over 15.8 million (4Q/2014) Domestic E-Commerce GMS 2.01 trillion *1 Domestic e-commerce GMS includes consumption tax. *2 GMS=Ichiba, Package Media, Auction, Golf, Business, Download, Tickets, Internet Supermarket, Check Out, Off-track betting, toto, Showtime, Media rental, Dining, Salon, Mart, Kenko.com, Energy, Smart pay, Stylife and Rakuma (added from Q4/ 14)

3 The Inside Stories Internet Finance Services Attractive Synergy From real to virtual, all of our financial services are just one stop away. 12

4 Dynamic Success in Card Business Synergies within the Group and improvements in the usability of our Internet finance services are helping to drive sustained profit growth in this segment. Card has been the top-ranked credit card in a customer satisfaction survey* for six straight years. Effective TV advertising and synergies with Ichiba were reflected in steady growth in the number of cardholders, while shopping transaction volume increased to approximately 3.5 trillion, a year-on-year increase of 35.1%. We are also picking up the pace of our overseas expansion, which began in April 2014 in the U.S., and gained momentum by starting the Taiwan Card in *Service Productivity & Innovation for Growth (SPRING), 2014 Japanese Customer Satisfaction Index Raising Our Overall Value Proposition Bank is Japan s top net-based bank in terms of the number of accounts held, and is now capable of meeting a wider range of customer needs following the launch of a range of new services, including foreign currency term deposits and educational loans. The year-end deposit balance increased to 1,182.9 billion, and there was also steady growth in the number of Bank Super Loan users and the balance of loans outstanding. Bank also offers services that provide enhanced synergies with e-commerce. The assets under management of Securities increased by 17.2% year on year, and the balance of investment trust assets continued to show high growth with a year-on-year increment of 49.1%. Life Insurance also achieved high growth. The number of insurance policies in force was 33.9% higher year on year, and annualized insurance premiums were up by 20.7% year on year. Card Shopping revolving balance 272 billion Bank Super Loan balance 293 billion Securities Investment trust assets balance 497 billion Synergy among Financial Business Issuing All-in-one Card Merchant Acquisition E-Money Money Charging Money Charging Investment of Credit Card ABS Acquirer via Smart Phone Day 1 Settlement Service to Merchants Money Bridge Instant Money Transfer Service Super Point Membership Banking Financial Products Intermediate Securities 13

5 The Inside Stories Overseas E-Commerce Business Global Empowerment Global Yokoten (transferring know-how) and global migration to RMSg platform bring high growth of sales and efficiency. 14

6 Global Migration to RMSg Platform We have expanded our e-commerce business into 13 overseas countries after the most recent launch of the new.com.sg website in Singapore in January The main focus of our overseas e-commerce activities is the development of marketplace-type services. Gross merchandise sales (GMS) in overseas marketplaces has shown steady growth thanks to the approaches that have been successful in Japan, such as the points program and Super Sales. In each country, we are progressively introducing the Merchant Server global (RMSg) system, our proprietary IT platform for merchants. We have already completed the introduction of RMSg in the majority of countries and territories. In each case, the launch of the system has been followed by dramatic growth in GMS. In October 2014, we further expanded the scope of our activities by acquiring Ebates, the largest cash-back loyalty shopping site in North America. Building Evolutionary E-Commerce Platform Now a member of the Group, Ebates is the pioneer of membershipbased, on-line cash-back websites. In addition to its U.S. business, Ebates is also active in Canada, South Korea, Russia and China, and its GMS reached approximately $3.4 billion in Ebates has an open platform that links consumers with a wide network of various e-commerce sites, and, consumers can purchase through almost the top 3,000 e-commerce sites in the United States, such as leading specialty sites and online travel agencies. Overseas marketplaces GMS 87.2 billion, up 18.6% YoY Ebates GMS $3.4 billion, up 50.3% YoY Marketing in the U.S. EBITDA grew 21.3% YoY to $34.8 million Ebates GMS (Millions of U.S. dollars) 3,352 Ebates +50.3% YoY

7 The Inside Stories Digital Engagement More Entertaining Digital content and smart telecommunication devices bring users more entertainment opportunities. Uchukyodai Chuya Koyama/Kodansha 16

8 Dramatic Growth in Telecommunication Viber, a member of the Group since March 2014, offers mobile messaging and VoIP services in 193 countries with over 500 million unique ID numbers. Users can enjoy free high-quality Monthly active users calling, messaging and other services with a high level of security 236 million anywhere in the world. Viber offers a wide range of attractive features and services, such as users in Japan being able to link Unique IDs their Viber accounts with their member IDs. Viber 516 million launched Viber Games, a social gaming platform. Viber will make a significant contribution to the development of global platforms. (Jan. 2015) In response to user demand for affordable smartphone services, subsidiary Fusion Communications established Mobile, a mobile virtual network operator (MVNO) that offers the lowest* monthly charges in the industry. *As of October 28, 2014, based on research by, Inc. Registered users Expansion and Control of Digital Content Business 22.9 million The e-book company Kobo, at the time of its acquisition by in 2012, had a user up 24.9% YoY base of 6.5 million. By 2014, this had grown to approximately 23 million people, and the service had been extended to over 190 countries. In 2014, Kobo launched the Kobo Aura H2O, a high-quality waterproof tablet in Japan, the U.S. and Europe. Viki, s video Monthly active users content distribution subsidiary, has a monthly global audience of approximately 40 million people, and total viewer hours 39.4 million, reached 2.4 billion minutes in the fourth quarter of will continue up 39.6% YoY to use the expansion of its digital content services to drive further growth in the global Ecosystem. Viber Global User Breakdown*1 North America 6% Western Europe Viber ranks No. 1 in App User Rating*2 16% Eastern Europe Middle East 19% 15% Viber Public Chats global launch: Nov. 18, 2014 Africa Viber Games soft launch: Dec. 15, 2014 *1 Source: Viber. Unique IDs, percentage share by region: Jan. 18, 2015 Central & South America 9% Asia & Asia Pacific 25% 10% *2 Source: App Annie, based on average of user rating for ios for last 3 months: Nov. 1, 2014 to Feb. 1,