Financial Results for
1st Quarter
Ended September 30, 2011
(FY12 Q1)

Macromill, Inc.
First Section, Tokyo Stock Exchange (3730)

Overview for FY12 Q1（Unit：million yen)

(Note) Macromill merged with Yahoo Value Insight Inc. effective on August 1, 2010.

1

Topics

 Net sales: YoY 112.5%, QoQ 107.8%
Ordinary income : YoY 113.7%, QoQ 180.2%
 Despite concern over power shortage in summer, net sales grew steadily,steadily, finishing inline with business plan.
 Ordinary income improved without integration related expenses incurredincurred in FY11 Q1.
→ Ordinary income margin (non(non-consolidated)：
consolidated)： 24.8%→ Ordinary income margin (consolidated)：(consolidated)： 20.7%(Margin is lower due to upup-front
investments by subsidiaries.）
subsidiaries.） Macromill China has started sales activities.
 A new marketing research service on Facebook has been launched.
2

Analysis on Cost Structure(Unit: million yen）

nonconsolidated

FY11 Q1
Amount

FY12 Q1%

Amount%・No merger-related
expenses incurred in FY12・Cost reduction due toelimination of redundantfunctionsNet sales

2,840

100.0

3,185

100.0

COGS

1,483

52.2

1,541

48.4

Payroll

391

13.8

422

13.3

Monitor+Outsourcing costs

719

25.3

827

26.0

Others

371

13.1

291

9.2

796

28.1

847

26.6

Payroll

461

16.3

525

16.5

Others

335

11.8

322

10.1

Ordinary
income

574

20.2

790

24.8

（Ordinaryincome consolidated）

582

Net income

280

SG&A

457

790
-129
＋216

661
9.9

・Up-front investments bysubsidiaries- M-warp- M-Cube- Macromill China

14.4

661

574

FY11 Q1

FY12 Q1

FY12 Q1

NonNon-consolidatedOrdinary
income

NonNon-consolidated
Ordinary
incomeConsolidated
Ordinary
income

20.2%

24.8%

20.7%
3

Primary Subsidiaries(Unit: million yen）

 Actively investing into new businesses through subsidiaries■ M-WARP, INC.
FY12 Q1
Macromill
Investment
Business Type00－

Ordinary income-65-300－

Net income-65-300－

90.25%Net sales

New business（Smartphone application）

PlanAchievement(%)(full year) New smartphone
applications are soon to
be launched around yearend following POPCORN.

■ M-CUBE AND ASSOCIATES, INC.

FY12 Q1
MacromillInvestment
Business TypePlanAchievement(%)(full year)

74.875%Net sales

106575

18.4%

Database
BusinessOrdinary income-44-212－Net income-44-212－（QPR panel development, datacollection）

 QPR panel has been
expanded to 30,000 in
July 2011.

4

Net sales by Industry (non(non-consolidated basis) Net sales rose in most industries despite concerns over the aftermath of the March quake.
→Lower sales in Auto/Electronics/Logistics had little impact on overall sales due to their limited shares.

 Net sales edged up even with adjustment of net sales of YVI in July last year.
Industries with major sales growth（YoY change in sales）（Figures in bars show %of breakdown.)¥3,185M¥2,840M

2.2
2.267.7＋28.6%■ Research companies,consultants■ Advertising agencies

２．Toiletries/Pharma＋17.1%

14.4

14.5

15.7

18.0＋¥500M

３．Research/Consulting Firms＋13.1%FY11FY11 Q1
Q1＋¥120M

65.3■ Government agencies,associations, schools, etc.
■ General companies

１．Ad Agencies＋¥50M

FY12FY12 Q1Q15

Net Sales by Service (non(non-consolidated basis) Net sales of almost all services went up, notably with the following
services:→Analysis Service→Qualitative Research Service→Other Services

up 26% YoY
up 26% YoY
up 33% YoY

 Outsourcing costs continue to be tightly controlled.
6.0 0.7
3.8
10.6
7.3
8.6
6.4

7.1

3 0.7
108.2
9.6
6.1

その他
モバイルリサーチ
グローバルリサーチ
カスタマイズリサーチ
定性調査サービス

56.6

55.3

分析
集計

(Unit: %)

自動調査

FY11
FY11 Q1
Q1

FY12
FY12 Q1
Q16

Other Services
 Other services, ＱＰＲ、ｂｄｂ, and AＩＲsMEMBERS, grew 54.9% year-on-year.
 ＱＰＲ particularly jumped due to the expansion of QPR panel from 10,000 to 30,000.

¥87M→¥139M
FY12 Q1
FY11 Q1¥222M¥38M→¥53M¥143M

FY12 Plan(full year)
Target¥1B in total¥18M→¥29M
7

Unit Price, Number of Active Clients/Contacts and VIP ClientsFY10Ｑ2Ｑ3FY11Ｑ4Ｑ1Ｑ2FY12Ｑ3

Ｑ4

Ｑ1

KPI

Unit

Average unit price per（*1）
order

000 yen

703

729

700

797

822

835

787

813

000 yen

683

711

685

773

791

800

755

783

000 yen

494

524

485

539

522

520

498

525

Clients

995

1,270

1,441

904

1,386

1,675

1,895

985Contacts

2,481

3,477

4,188

2,221

3,870

4,988

6,067

2,485

Clients

144

155

144

242

240

240

229

254

Clients

（25）

（29）

（27）

（59）

（58）

（55）

（53）

61

Average unit price perorder(including no. of qualitative rch
in the no. of projects)（*1）

Average unit price perorder(automatic rch only)（*1）

Number of activeclients（*2）

Number of active contacts（*2）

Number of VIP clients（*3）

Number of clients with avg
qrtly sales over ¥10M（*4）(*1) The services of the former YVI were not included in the calculation of the average unit price for the year ending June 30, 2011. Orders for qualitative research were not included in the calculation of the quarterly average unit price per order.
(*2) The number of companies/services whose sales were posted at least once from the beginning of the fiscal year to the quarter(*3) Priority clients with annual sales of ¥10 million or more are defined as VIP clients. Annual sales are calculated based on year-to-date sales. For example, the number of VIP clients for the second quarter is the number of clients with year-todate sales of ¥5 million.
(*4) The number is calculated based on year-to-date sales.

8Personnel Status
FY10

FY11

FY12KPI

UnitＱ2Ｑ3Ｑ4

Ｑ1

Ｑ2

Ｑ3

Ｑ4

Q1

Number ofemployees

People

297

297

309

605

553

545

557

566

People

288

289

298

596

542

528

542

541

(consolidated) （*）

Number ofemployees(non-consolidated) （*）(*) The number of employees includes contract employees and employees on leave.

 Number of Employees by Function
Others include:

Sales
130

Operation
90

Researcher
130

Business Planning,
Administration, Monitorsupport etc.

* Executive officers and employees on leave are not included.
* Figures are based on the number of employees as of October 1, 2011.

 The number of employees on consolidated basis increased primarily due tonew hires at Macromill China, Inc.
 The number of employees plans to be expanded to 600 to accommodate
business expansion.

9Panel Status
FY10KPI

Unit

Macromill Panel

ThousandPeople

FY12

FY11

Ｑ2

Ｑ3

Ｑ4

Ｑ1

Ｑ2887

903926940 1,002

Ｑ3985 1,040

PC Panels

Macromillpanel
1,059,000

Ｑ4Q11,059Mobile Panels

Yahoo!
Research Panel
1,240,000

280,000

50,000Former Voice Port
Panel
* As of September 30, 2011

* As of April, 2011

10,00010Balance Sheet/Capital Policy
Liabilities ¥7.3B
Liabilities ¥2.7B

Total assets¥17.2B

Total assets¥13.9BCash¥6.7B

CB ¥5B

Net assets¥11.1B

June 30, 2011

Cash
¥10.1B

Net assets¥9.8B

September 30, 2011

 Cash and deposits and long-term liabilities increased by ¥5B due to CB issue.
(i) ¥2.5B R&D and investments into “development of new business domains and innovations”
Planneduse ofcapitalInvestment and M&A aimed at the “acceleration of expansion of business overseas”(ii)¥2.5B Share Repurchase to improve capital structure→ Share repurchase status as of October 30, 2011:
Number of shares acquired: 1,624,700 shares (50.8% completion)
Amount:1,415,626,700 yen (56.6% completion)11業績目標2012-2014 Medium-term Management Plan(released on August 3, 2011)(Unit: million yen)Management Targets

FY2011FY2012FY2013Compared toFY2011

FY2014

Consolidated net sales

12,21014,20015,50020,000+64％

Ordinary income

2,522

2,900

3,600

4,700+88％Ordinary profit margin

20%

20%

23%

24%+4pt

FY2011

Breakdownof net sales(Note)FY2013Compared toFY2011

FY2014

Domestic marketing
research business *1

12,21014,00015,10016,00031％

Overseas business *2-

200

400

1,000

-

New business *3-----

M&A(domestic, overseas)---

3,000-

References

Investment
planFY2012

FY2011FY2012FY2013

FY2014

Total investment
amountSystems investment *4-

500

300

200

1,000

New business
investment

-

300

300

200

800

M&A and otherinvestment

-500

1,500

3,000

5,000

*1 Including web research + peripheral business*2 Except our equity method affiliate Macromill Korea*3 Net sales contributions by new businesses not figured in.
*4 Includes multiple device support and multilingual support for AIRs with a view to overseas expansion

12Overseas Business Macromill China has started sales activities in September, 2011
Overseas Expansion

Macromill China Status
Ownership
Domain90%
Overseas(Marketing research in China）

Licensing AIRs
Ownership：38.5%

M&A, equity investment,or partnership agreement
Local partnerin Asia

* Seeking further
business partnership

Ownership：90.0%* Started salesactivities

No. of local employees

17No. of staff dispatchedfrom Parent4

 Primarily targeting Japanese companies, adagencies, and consulting companies.
 Actively building in-house as well as outsidepanels.

Local partner
in Asia

Local partner
in Asia

Systemcoordination
Macromill panel
150,000

Outside panels
1,500,000

13

New businesses in partnership with Dentsu Group
Scheme No.2

Scheme No.1

ServicelaunchedFacebook Communication Research A new service has been launched in
October by partnering up with Dentsu.

In progressCollaboration with Dentsu GroupNew JV to be establishedAiming for:
 solidifying Macromill business, and contributing to business expansion andprofitability of Dentsu GroupFeatures
Dentsu Provides a quality research tool
targeting Facebook users by using AIRs,
 Supports analysis linking profiles on
Facebook with survey responses,
 Can target people who are hard toreach with regular online research.
e.g. male between 20s and 40s working for
Company A or Company B

DentsuMarketing
Insight

MacromillCollaboration

Investment

Investment
JV
sales of online
marketing research14

We aspire to become Japan’s largest andstrongest IT marketing company and oneof the world’s most unique companies.

15

Reference Material

16

Historical Performance
Aug. 2010
Apr. 2005
Listed at TSE1

(Unit: million yen)

14,00040%

Jan. 2004
Listed atMothers Exchange

12,000Net sales
Ordinary income
Ordinary profit margin

10,00012,210

35%
34.8%
31.9%

6,000
4,000

Aug. 2000

30%

7,353

25%

22.6%
5,179

20.7%

3,613

1,259

2,000
7.7%
29851

201

1,653

1,984

2,157

1,753

2,135

2,522

10%

614

5%

-87
0.0%

-2,000
FY0120%
15%

2,077

106

29.0%

23.6%

AIRs first release
379

7,755

7,4136,392

Jan. 2000
Company Launched

29.1%

31.0%

29.6%

8,0000Merger with Yahoo Value Insight0%
FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY1117(Reference) Overview of Operations of Macromill
Flow of Online Research Service
Macromill

Clients
Requesting surveys

Automatic Internet Research System

People surveyed
E-mailing questionnaires

Macromillpanelists
985,000
nationwide

Responding to questionnaires
through the members ‘page
Giving reward points for responses

Doctor panels

Preparing Web survey sheets
Extracting people to be surveyed
Collecting answers
Checking inconsistent answers
Real time tabulation
Creating data to be delivered

Overseas

Requesting surveys

・ Research companies
・ Manufacturers, etc.

Original tabulation software that canperform cross tabulation and create
reports (provided for free)

Responding to questionnaires
Member lists ofPanels in alliance

In Japan・ Ad agencies
Viewing tabulation in real time・ Manufacturers
・ Consulting companies
・Service companies
・ IT companies
Delivering survey results
・ Mass media(Downloading)・Public offices, etc.
Offering research systems

clients

Requesting responses
Overseas researchpanels(Business alliances)

Consumers in 30 countries
or more18

Stock Information
No. of shares authorized

83,712,000 shares

No. of shares issued

32,315,600 shares

No. of shareholders

8,805 people

No. of share unit

Others
33.3％

100 shares

Treasury stock
5.5％

financial instruments
business operator

0.8％

Individuals
31.2％

Shareholder

As of June 30, 2011
Number ofShares
Held% of Total
Shares inIssue

VIPS Corporation

4,598,400

14.23%

Yahoo Japan Corporation

3,000,000

9.28%

Vanillasky Corporation

2,314,400

7.16%

Japan Trustee Services Bank, Ltd. (TrustAccount)

1,783,400

5.52%

Goldman Sachs International

1,773,5005.49%

Tetsuya Sugimoto

1,000,000

3.09%

Northern Trust Co. (AVFC) Sub Account
American Clients

962,000

2.98%

Satoshi Shibata

832,000

2.57%

Yasunori Fukuha

709,600

2.20%

State Street Bank and Trust Company

708,800

2.19%(Notes)Foreigncorporations
18.1％

Financial
institutions
11.2％

1. The Company held treasury stock of 1,774,200 Shares as of 30 June 2011, which are notincluded in the above table
2. The percentages of total Shares in issue in the above table have been
calculated based on the number of shares issued.
3. Tetsuya Sugimoto, Representative Director, Chairman and President of the Company, is also therepresentative director of Vanillasky Corporation.
4. VIPS Corporation is a subsidiary of Yahoo Japan Corporation.

1919

Cautionary Statement

Macromill does not guarantee the accuracy of the information
contained in this presentation, which reflects judgments madeby Macromill management based on information currentlyavailable.
Given that the business environment may vary significantly inthe future due to a number of factors, please be aware that
Macromill’s actual performance and results may differ fromthose expressed today.

Inquiries regarding information contained in this presentation:
IR Unit, Finance and Accounting Division, Macromill Inc.
Tel: 03-6716-0706 Fax: 03-6716-0701
E-mail： ir@macromill.com
20