FY2016-1Q Financial Results Briefing. D.A.Consortium Inc.

Transcription

1 FY2016-1Q Financial Results Briefing D.A.Consortium Inc. August 5, 2016

2 Table of Contents Overview of Financial Results (Consolidated/Non-consolidated) Business Trends Key Measures -1-

3 Overview of Consolidated Financial Results -2-

4 Financial Highlights (Consolidated) FY2016-1Q (Apr to Jun. 2016) Y on Y Sales 38, % Gross Profit 5, % Operating Income % Profit Attributable to Owners of Parent % EBITDA 1, % Operating Margin* *Operating Margin=Operating Income / Gross Profit 15.4% 0.4pt -3-

5 FY2016 Business Forecast 1Q Progress FY2016(Apr to Mar. 2017) Forecast 1Q Results Progress Rate Sales 170,000 38, % Operating Income 5, % Ordinary Income 5, % Profit Attributable to Owners of Parent 2, % Net Income per Share

6 Quarterly Sales(Consolidated) Millions of Yen) -5-

7 Increase Factor of Sales (Year on Year) Millions of Yen) irep UNITED +1,142 3,827 DAC +6,272 Elimination of internal transactions and others 38,547 +3,284 31, Billions of Yen +21.7% FY2015-1Q FY2016-1Q -6-

8 Quarterly Gross Profit(Consolidated) Millions of Yen) -7-

9 Results by Domain (Consolidated) FY2015-1Q (Apr to Jun. 2015) FY2016-1Q (Apr to Jun. 2016) Sales Sales % Sales % Y on Y (%) Internet-related Business 31, , Agent Domain 28, , Media and DAS Domain 2, , Adjustment between Domains Investment Business TOTAL 31, , Gross Profit Gross Profit % Gross Profit % Y on Y (%) Internet-related Business 4, , Agent Domain 2, , Media and DAS Domain 1, , Adjustment between Domains Investment Business TOTAL 4, ,

10 Sales to HDY Group and Others (Consolidated) FY2015-1Q (Apr to Jun. 2015) FY2016-1Q (Apr to Jun. 2016) Sales Share (%) Sales Share (%) Y on Y (%) Hakuhodo DY Group 15, , Others 15, , TOTAL 31, ,

11 Sales to HDY Group and Others (Consolidated) (% / Millions of Yen) -10-

12 Quarterly SG&A Expenses (Consolidated) Millions of Yen) Number of Employees*2,081 *Total number of directors, employees, temporary employees, etc. 2,

13 Quarterly Operating Income(Consolidated) Millions of Yen) -12-

14 Quarterly EBITDA(Consolidated) Millions of Yen) *EBITDA=Operating Profit + Depreciation + Amortization of goodwill -13-

15 Balance Sheets(Consolidated) FY2015 (As of Mar.31, 2015) FY2016-1Q (As of Jun.30, 2015) Amount % Amount % Comparisons (%) Current Assets 43, , Non-current Assets 10, , Total Assets 54, , Current Liabilities 27, , Non-current Liabilities 1, , Total Liabilities 28, , Shareholders Equity 14, , Non-controlling Interests 8, , Others 2, , Total Net Assets 25, , Total Liabilities and Net Assets 54, ,

16 Statements of Cash Flows(Consolidated) FY2016-1Q (Apr to Jun. 2016) Cash flows from operating activities 1,718 Cash flows from investing activities 1,364 Cash flows from financing activities 286 Effect of exchange rate change on cash and cash equivalents 135 Net increase (decrease) in cash and cash equivalents 3,234 Cash and cash equivalents at beginning of period 12,642 Cash and cash equivalents at end of period 15,

17 Overview of Non-consolidated Financial Results -16-

18 Financial Highlights (Non-consolidated) FY2016-1Q (Apr to Jun. 2016) Y on Y Sales 22, % Gross Profit 2, % Operating Income % Net Income % Operating Margin* 16.9% 8.3pt *Operating Margin=Operating Income / Gross Profit -17-

19 Quarterly Sales & Gross Profit(Non-consolidated) Sales Gross Profit -18-

20 Results by Service(Non-consolidated) Sales FY2015-1Q (Apr to Jun. 2015) Amount % Amount FY2016-1Q (Apr to Jun. 2016) % Y on Y (%) Media Service 18, , Technology Service Investment & Operation Service TOTAL 18, , Gross Profit Amount % Amount % Y on Y (%) Media Service 1, , Technology Service Investment & Operation Service TOTAL 1, ,

21 Business Trends -20-

22 Sales breakdown by Ad Format(Non-consolidated) FY2015-1Q (Apr to Jun. 2015) FY2016-1Q (Apr to Jun. 2016) Amount % Amount % Y on Y (%) Display 13, , Video Ad 1, , Others 11, , Search 3, , Affiliate / Reward 1, , Others TOTAL 18, ,

23 Quarterly Sales by Ad Format(Non-consolidated/Media Service) Millions of Yen) -22-

24 Premium Media Ad Sales(Non-consolidated/Media Service) FY ,374 Mil. FY2014 7,488 Mil. FY2013 3,589 Mil. -23-

25 Video Ad Sales(Non-consolidated/Media Service) FY2015 9,924 Mil. FY2014 4,252 Mil. FY2013 1,735 Mil. -24-

26 Quarterly Sales by Client Industry(Non-consolidated/Media Service) -25-

27 Quarterly Trend of Top100 Advertisers(Non-consolidated/Media Service) Quarterly Sales to Top100 Advertisers Number of Our Clients in Top100 Advertisers (Millions of Yen) (Companies) *Top100Advertisers : By Nikkei Advertising Research Institute AD SPENDING OF LEADING JAPANESE CORPORATIONS -26-

28 Quarterly Sales of Smart Device Ads(Consolidated) Millions of Yen) -27-

29 Quarterly Sales of Programmatic Ads(Consolidated) Millions of Yen) -28-

30 Summary of Consolidated Subsidiaries Results(Y on Y) Sales Operating Income IREP Co., Ltd. Agent DAS UNITED, Inc. Agent Media HAKUHODO i-studio Inc. DAS Platform One Inc. Agent DAS ADPRO inc. Agent Torchlight Inc. Agent DAS D.A.Consortium Beijing CO., LTD. Agent DAC ASIA PTE. LTD. Agent -29-

31 Consolidated/Non-consolidated Ratio FY2014-1Q FY2015-1Q FY2016-1Q (4/2014~6/2014) (4/2015~6/2015) (4/2016~6/2016) Sales Operating Income Ordinary Income -30-

32 Appendix -31-

33 Business Domains of DAC Group Agent Domain Dealing with Media and Ad Agencies DAC Taiwan DAS Domain Providing technologies, creative and solutions Media Domain Providing services to consumers -32-

34 Business Model of DAC Group Media Representative and Digital Solutions Media Service Buying and selling ad space Development Operation Service Outsourcing business Technology Service R&D Solution development/provisioning Advertisers Ad Agencies SEM services Creative Trading Desk Social media marketing Progress management RTB Online Publishers Users Ad Network DMP Global DAC Taiwan -33-

35 DAC s Core Business Media Representative Advertisers Ad Agency Hakuhodo DY Media Partners Inc. TOKYU AGENCY INC. Nikkeisha, Inc. I&S BBDO Inc. Asahi Advertising Inc. CyberAgent, Inc McCann Erickson Japan Inc. SEPTENI CO.,LTD. etc. Over 500 Companies Selling Ad Spaces Providing Ad Technologies Providing Operation service Media Rep. <Core Operations> Buying Ad Spaces Media Planning Progress Management Consulting Development Technologies Operation Service Buying Ad Spaces Providing Ad Technologies Providing Operation Service Online Publishers Yahoo! JAPAN LINE Google Facebook YouTube Twitter NIKKEI.com MSN etc. Over 1,000 Companies Consortium DAC was established as a consortium of leading ad agencies, headed by Hakuhodo DY Group + Media Representative Providing total support for online advertising -34-

36 Ad technology lineup of DAC Group Message Management Tool Advertisers/Ad Agencies Media Planning System Ad Trading Platform Ad Server DMP Programmatic Ad DSP SSP Publishers -35-

37 Consolidated Subsidiaries(As of June,2016) Name Ownership Business IREP Co., Ltd. TSE 2nd 57.6% Digital marketing including performance-based ad focused on listing ads, search engine optimization, content marketing and web analytics. UNITED, Inc. Mothers 44.4% Smartphone applications and advertising technology business. HAKUHODO i-studio Inc. 60.0% Production, system development and CRM services for the entire online advertising field. Platform One Inc % Providing platforms for online advertising trading. ADPRO inc % Torchlight Inc. 70.0% Operational services for online advertising, including schedule management, sending ad data and placement confirmation. Services supporting the utilization of social media including owned media and ad. D.A.Consortium Beijing CO., LTD. 50.1% Online advertising business in China. DAC Taiwan D.A.CONSORTIUM TAIWAN INC. DAC ASIA PTE. LTD % I-DAC PTE. LTD. 80.0% 100.0% Online advertising business in Taiwan. Supports online advertising strategy, business development, market research and the expansion of group companies in the Southeast Asian region. Comprehensive digital marketing solution in the Southeast Asian region. -36-

38 Equity-method Affiliates(As of June,2016) Name Ownership Business Members Co., Ltd. TSE 2nd NSE 2nd 18.5% spicebox, inc. 34.4% Adinnovation Inc. 18.0% Babycome, inc. 38.2% Web integration service, social media marketing service, and support service of digital marketing. Marketing and consultation services for digital communications design. Marketing business for smartphones, ad tracking tool business for smartphones, media consulting business. Operating "Babycome": one of the largest parenting site in Japan and "Babytube": parenting related movies site. livepass Inc. 22.4% Next generation personal video marketing platform company. Innity Corporation Berhad Bursa Malaysia 25.1% Online advertising trading platform and advertising network in the Southeast Asian region. GLIDER associates, INC. 15.7% Planning and administration of curation magazine antenna*. -37-

39 Other companies in which DAC invests(as of June,2016) Name Digital Catapult Inc. Data Stadium Inc. Video Research Interactive Inc. O-uccino, Inc. Business Provides digital content-serving and creative services for PC and mobile. Sports data contents and related solutions. Internet audience measurements and provides ad servers. Ad agency, planning, creating, and operating real estate websites. mediba Inc. YUMEMI Inc. Co-Core Inc. ALBERT Inc. Origami Inc. TSE 1st Mothers As a mobile media representative, provides planning, organization and creation services. Mobile-related planning, development, operation and consultation services. Operating the 3-D visual space website "meet-me. Recommendation engine developed in-house and advertising optimization solutions using core analytical abilities. Planning and administration of the next-generation e-commerce platform Origami. Datasection Inc. Mothers Online consumer and reputation analysis service. Yummy Japan Inc. Ubiregi Inc. Handy Marketing Inc. ZEDO,Inc. IPONWEB Holdings Limited YouTube channel management, web-based video production, web-based PR and advertising. Ubiregi is an ipad POS(Point of Sales) Application and cloud based platform. Marketing Solutions research, development, and analysis business. Developing ad server and video ad format for media companies. Development of various ad technologies and cloud advertisement solution and consulting service. -38-

40 Vision of DAC Group The Axel This logo, called the axel, expresses the spirit embodied in our brand slogan Empowering the digital future the spirit to pioneer and impart vitality into the future of digital society. -39-