First Three Quarters Results Briefing
Year Ending June 30, 2012

Group Business Results

Overview of Third Quarter Results for the Year Ending June 2012 Both sales and income reached record high levels
Consolidated: By the end of the third quarter, ordinary income and net income hadreached 90% of target
Non-consolidated: Ordinary income margin reached 32.3%
Third quarter (standalone)(January 1 – March 31)
FY2012/6

Net sales

FY2011/6(units: yen million)

Third quarter (cumulative)(July 1 – March 31)
Year to June Year to June
Y-Y chg
2012
2011

Y-Y chg

Full-year forecast(July 1-June 30)(Percent achieved)

3,917

2,953

132.7%

10,7199,236 116.1%

14,200 (75.5%)

Consolidated

Ordinary
incomeOrdinary profit
marginExtraordinary
loss

980

699

140.2%

2,557

2,155 118.7%

2,900 (88.2%)

25.0%

23.7%

+1.3pt23.9%

23.3％ +0.6pt

20.4%

-

0.3

1

-

7

-

-

Net income

565

375

150.5%

1,365

1,066 128.0%

3,891

2,974

130.8%

10,651

9,248 115.2%

1,258

796

158.0%

3,109

2,230 139.4%

32.3%

26.8%

+5.5pt29.2%

24.1% +5.1pt

713

444

160.4%

1,754

1,128 155.5%

Nonconsolidated*Reference
Net sales
Ordinary
incomeOrdinary profit
marginNet income

256-

1,500 (91.0%)(Note) On August 1, 2010, the Company succeeded to the market research business of Yahoo Value Insight, Inc. through an absorption-type demerger.

2Third Quarter Topics
Macromill Strategy Map
・Upon completion ofmanagement
integration, making
even greater strides
・Dentsu Macromill
start-up

・EMBRAIN
PMI start-up
・Execution of
investment inShanghai UnitedCities

・QPR positive¥264 M→¥508 M

・Continue
development ofapplications,accumulate knowledge
in smartphone area

(cumulative nine months resultcompared to previous year)3Third Quarter Topics
・Upon completion ofmanagement
integration, making
even greater strides
・Dentsu Macromill
start-up

4

Completion of Management Integration
 Since the earthquake, the expansion of profit has accelerated. Toward a profit level far above where it
was prior to management integration
 Profit margins have also recovered to where they were before management integration

Transition of quarterly results (non-consolidated)
1,400

million yen
1,200

40%

Ordinary
income
経常利益

経常利益率
Ordinary
profitmargin35%

Management
integration

1,000

Great East Japan
Earthquake

30%
25%

800
20%
600
15%
400

10%

Year ended June 2010
200

0

Jul-Sep
09年7-9月‘09

Oct-Dec
09年10-12月‘09

Jan-Mar10年1-3月‘10

Apr-Jun
10年4-6月‘10

Before management integration

Year ended June 2011
1st year of integration

Jul-Sep
Oct-Dec
10年7-9月 10年10-12月‘10‘10

Jan-Mar11年1-3月‘11

Apr-Jun
11年4-6月‘11

Year ending June 2012
2nd year of integration
Jul-Sep
11年7-9月‘11

Oct-Dec
11年10-12月‘11After management integration

Jan-Mar12年1-3月
‘12

5%
0%

5

Pushing forward with integration will lead to an evengreater leap forward in management power Employee productivity has exceeded pre-integration levels
 Improved productivity is directly connected to improved profitability. Thorough operational management andcost control
 Aim at moving from management integration with little chance of success to successfully achieving an evengreater leap forward in management power in a short period of time

Transition of Productivity (quarterly, non-consolidated)
7.50

40%

million yen

7.00
35%

6.50
6.00

30%
5.50
5.00
25%
4.50
4.00
3.50

Sales per employee

従業員一人当たり売上

Ordinary
income margin
経常利益率

20%

Year ended June 2010

Year ended June 2011
1st year of integration

Year ending June 2012
2nd year of integration

3.00

15%
Jul-Sep 09年10-12月
Oct-Dec
09年7-9月‘09‘09

Jan-Mar10年1-3月‘10

Apr-Jun
10年4-6月‘10

Before management integration

Jul-Sep
10年7-9月‘10

Oct-Dec
10年10-12月‘10

Jan-Mar11年1-3月‘11

Apr-Jun
11年4-6月‘11

Jul-Sep
11年7-9月‘11

Oct-Dec
11年10-12月‘11After management integration

Jan-Mar12年1-3月‘126Dentsu Macromill Start-up
 Dentsu Macromill started up in April. Strengthen ties with Dentsu Group Establishing a rock solid position in the domestic market by expanding transactions even further

Tie-up scheme

Effect of tie-up

Dentsu is one of the top
customers for placing Internet
research orders
order

order

DentsuMarketing InsightInternet
research(new)

DentsuMacromillestablished
April 2, 2012
Internet research

Short-term: Increase transactions with Dentsu Group→Quickly increase the value of current transactions
by 1.5 to 2 times

Medium-term: Expand transactions even further→Strengthen proposals to the Dentsu Group. Proactively
look for opportunities where Macromill will be able toprovide value

Macromill
7

Third Quarter Topics
・EMBRAIN
PMI start-up
・Execution of
investment inShanghai UnitedCities

8

EMBRAIN PMI Start-up
 EMBRAIN, with the largest share of South Korea’s Internet research market, became asubsidiary on February 28, 2012
 Large operational and management synergies, quickly begin integration support
EMBRAIN monitors
Operational synergies

640,000
research panelists
in South Korea

550,000
150,000
research panelists research panelists
in China
in Taiwan

Macromill monitors＋

1,080,000
research panelists
in Japan＝
200,000
research panelists
in China

・It becomes possible torespond to theincreased need forresearch in Asia

Management synergies

・In the future, Macromill will dispatch 2 key personnel to EMBRAIN.
Based on expertise gained in the successful integration in Japan,
cooperation toward increasing value will begin-Macromill will share its knowhow on operational management, business results monitoring,
panelist administration, etc. Will begin considering application
9

Execution of Investment in Shanghai United-Cities Purchased 6.9% stake in Shanghai United-Cities, a marketing business (550 million yen)
 Look for ways to develop business in China market with limited risk investment, tie-up

China Research Market Forecast (Macromill forecast)
マーケティングリサーチ
Marketingresearch
ネットリサーチ
Internet
research

US$ million

1,114

56
E
E
E
E
E
E
E
E
E
E
E
E
A
11
12
13
14
15
16
17
18
19
20
21
22
10
0
0
0
0
0
0
0
0
0
0
0
0
0
2
2
2
2
2
2
2
2
2
2
2
2
2

Market Recognition and Purpose of Investment
Recognition of the China Market
・The Chinese marketing research market is only
60% of the Japanese market but is expected to bebigger by around 2015
・The Internet research market is still in the early
development stage
・There are opportunities to participate but they carryrisk
・It is necessary to look for multiple approaches

Investment Purpose
・Limit risk by taking a minor stake in Shanghai
United-Cities, which is seeing good businessresults and is looking toward an IPO, whiledeveloping business by looking for tie-ups(research, promotion domain)
10

Developing Strategies for the Realization of theMedium-Term Management Plan
① Create CashWith a rock solid, overwhelming
position in the domestic researchmarket, use our track record ofmanagement power to maximize cash
creation② Strategic Investment
Use the cash that was created toproactively invest in new domains
using the optimal method. Focus on
medium- to long-term plans to improvepermanent corporate value

11

New Business Domain: Anticipating the Mobile
Internet Age
Smartphone diffusion ratio
36%

Acceleration of smartphone diffusion
We have almost reached the age when“anyone” can walk around with a high-powered
computer with an intuitive interface that“anyone” can use

Diffusion ratio
sharply higher overthe past 2 years

14%

Paradigm shift = A time of innovation
Realizing a platform that can support any
marketer in the world in anticipation of thecoming of the genuine mobile Internet age

3%
1%
2009.1

2010.1

2011.12012.1

Source: Dentsu, Inc. “50th Mobile User Survey,” released March 29, 2012

12

業績目標
Medium-Term Management Plan 2012-2014(announced August 3, 2011)(units: million yen)Management target

FY2011 actual
result

FY2012FY2013Compared to
FY2011FY2014

Consolidated net sales

12,21014,20015,50020,000+64％

Ordinary income

2,522

2,900

3,600

4,700

+86％

Ordinary income margin

20%

20%

23%

24%

+4pt

FY2011 actual
resultSales
breakdown(Notes)

FY2013Compared to
FY2011FY2014

Domestic marketing
research business 1

12,21014,00015,10016,00031％

Overseas business2

-

200

400

1,000

-

New business3

-

-

-

-

-

M$A (domestic,
overseas)

-

-

-

3,000

-

Refernce

Investment
plan

FY2012FY2011 actual
result

FY2012FY2013

FY2014

Total investment

Systems investment4

-

500

300

200

1,000

New business
investment

-

300

300

200

800

M&A, otherinvestments

-

500

1,500

3,000

5,000

1 Including Internet research and peripheral businesses
2 Excludes equity-method affiliate Macromill Korea

3 The contribution to net sales from new businesses has not been factored in
4 Includes multi-lingual , multi-device AIRs in anticipation of the development of overseas markets

13

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

14

Business Results Details

15Changes in Cost Structure and Income Analysis(3Q cumulative)
Nonconsolidated

3Q of FY2011/6(Million yen)

3Q of FY2012/6

Amount%Amount%Year-onyear

Net Sales

9,248

100.0

10,651

100.0

115.2

COGS

4,633

50.1

4,974

46.7

107.4

1,301

14.1

1,338

12.6

102.8

Personnel
Panelists andoutsourcing

2,323

25.1

Other

1,008

2,847

26.7

10.9

788

7.4

78.2

2,423

26.2

2,563

24.1

105.8

Personnel

1,478

16.0

1,548

14.5

104.8

Other

945

10.2

1,014

9.5

107.4

Ordinary
income

2,230

24.1

3,109

29.2

139.4

(consolidated
ordinary income)

2,155

Net income

1,128

SG&A

1,754

3,109

122.5

2,230

2,557
12.2

・Improvement in sales
productivity

118.6
16.5

・Up-front investment in subsidiaries
M-WARP ¥210 M
M-Cube and Associates ¥117 M, etc.

▲552

＋879

2,557

2011/6
3Q

2012/6
3Q

2012/63Q

Non-consolidated
ordinary income

Non-consolidated
ordinary income

24.1%

29.2%

Consolidated
ordinary
income

23.9%

155.5
16

Breakdown of Sales by Category (non-consolidated)
 Sales increased 15.2% year on year, as sales to research companies, consulting
firms and advertising agencies, etc. remained firm.

（％）

.2%
5
1
＋

¥10,651 M

Industries to whichsales increased(Year-on-year change in sales amount)

3.1

3.4
¥9,248 M

1. Researchcompanies/consulting firms＋ 20.2 %＋¥270 M

64.7
2. Advertising agencies

65.2■ Government agencies,
associations, schools, etc.
■ General companies■ Research companies,＋15.8%

14.6

15.2

16.9

17.0

First
three quarters
2011年6月期(9months)3Q(9ヵ月）of FY 2011/6

First
three quarters
2012年6月期(9 months)
3Q(9ヵ月）of FY 2012/6

consulting firms■ Advertising agencies＋¥240 M

3. Services＋19.4%＋¥240 M17

Changes in Breakdown by Service(non-consolidated)
Sales increased in almost all services, and sales grew particularly significantlyin the following services:→Qualitative research services: Year-on-year +24%
→Analysis Services: Year-on-year +18%
5.7

3.7 0.7

7.5
3.8 0.5

10.2

9.9

7.9

8.5

9.5

9.8

6.0

6.2

Other services
Mobile research
Global research
Customized research
Qualitative research services
Analysis

56.2

53.8

Tabulation
Automatic research

（％）

First
First three
three quarters
quarters(9(9 months)
months)ofof FY
FY 2011/6
2011/6FirstFirst three
three quarters
quarters(9(9 months)
months)ofof FY
FY 2012/6
2012/618

Status of Other Services (QPR, bdb, AIRsMEMBERS)
Total sales of QPR, bdb, and AIRsMEMBERS rose 70.8% year on year.
QPR: Analyzable customer products increased as a result of expanded panel size. Sales
increased 92% due to annual contracts and orders for optional services.

0
7
+
First
First three
three quarters
quarters(( 99 months)
months)ofof FY2011/6
FY2011/6¥455¥455 MM%
8.

Consumer purchasing databasecollected from 30,000 panelists

264→508 million yen
FirstFirst three
three quarters
quarters(( 99 months)
months)ofof FY2012/6
FY2012/6¥778¥778 M
M

Research results database on
belongings and preference of 30,000
people113→160 million yen

Target for
FY2012/6:
A total of¥1.0 billion

SaaS-type service with function
combining member management andquestionnaire for companies

77→109 million yen
19Unit Price, Number of Active Companies (Servers)
and VIP Clients
FY2012/6

FY2011/6
1Ｑ

2Ｑ

3Ｑ

Quarterly average unit priceTen thousand
per order (qualitative research isyencounted as one order)
*1

77.3

79.1

80.0

Quarterly average unit priceTen thousand
per order (automatic research
yen
only)
*1

53.9

52.2

Quarterly average unit priceper order (for reference)

Ten thousand
yen

79.7

companies

Indicator*1

Number of active companies(annual)*2
Number of active servers(annual)*2

Number of VIP clients*3

Number of VIP clients withaverage quarterly sales of¥10 million or more

*4

4Ｑ
(Full-year)

1Ｑ

2Ｑ

3Ｑ

75.5

78.3

79.7

83.7

52.0

49.8

52.5

52.0

54.9

82.2

83.5

78.7

81.3

83.3

87.5

904

1,386

1,675

1,895

985

1,371

1,711

servers

2,221

3,870

4,988

6,067

2,485

3,988

5,382

companies

242

240

240

229

254

256

251

companies

（59）

（58）

（55）

（53）

（61）

（63）

（67）

Unit

*1 The services of the former YVI were not included in the calculation of the average unit price for the year ended June 30, 2011. Orders for qualitative researchwere not included in the calculation of the quarterly average unit price per order (For reference). To calculate realistic unit prices, overall unit prices are calculated
based on the method of counting qualitative research as one order as described in the upper row.
*2 The number of companies/ servers 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.
*4 The number is calculated based on year-to-date sales

20Status of Personnel
FY2011/6

Indicator

Unit

1Ｑ

2Ｑ

FY2012/6

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

Number of employees(consolidated) *people

605

553

545

557

566

594

735

Number of employees(non-consolidated) *people

596

542

528

542

541

550

560

(*) Number of employees includes contracted employees and those on leave.

 Breakdown of personnel by job type
Sales
145

Operations
99

Researchers
139

Other staff are in charge ofbusiness planning,business administration,
panelists support and staff,
etc* Executive officers and executives at higher levels, and employees on leave are not counted.
* As of April 1, 2012

 Number of employees at consolidated subsidiaries: 44→175 people
M-CUBE & ASSOCIATES: 6→5 people
M-WARP:17→17 people
Macromill China: 21→17 people
EMBRAIN: →136 people

21Status of Panelists
FY2011/6

Indicator

Unit

MacromillpanelistsTenthousandpeopleFY2012/6

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

94.0

100.2

98.5

104.0

105.9

107.1

108.6

* As of April 2012

PC panelists
Macromillpanelists:
1,086,000

Yahoo!
Research
panelists:
Approx. 1,430,000

Mobile panelists

PC and mobile phone
panelists:
Approx. 310,000

Mirumoba panelists(Mobile phone panelists):
Approx. 50,000

 A smartphone-capable questionnaire response screen was released in March 2012 (AIRs)→Answers to the same survey will be possible on a dedicated screen from either PC or smartphone→ As panelists will not be restricted by time and place, it is expected that the response collection rate and the number of panelists
will increase.

22Changes in Balance Sheet (consolidated)/ Capital Policy
Liabilities¥9.1B

Assets ¥13.9 B
Cash anddeposits¥6.7 B

Assets ¥19.4 B

Liabilities¥2.7B

Cash and
Deposits¥7.6 B

Net assets¥11.1 B

CB issued¥5.0 B

Net assets¥10.2 BEnd of March 2012

End of June 2011

 Acquisition of treasury stock continues (Acquisition period: August 2011 to August 2012. Amount to beacquired ¥2.5 billion
Acquisition period

Number of shares acquired

Total amount acquired

From August 3, 2011 to
the end of April 2012

2,376,000 shares(Progress: 74.3%)¥2,012 M(Progress: 80.5%)
23

Reference24History, Business Results Trend
August 2010
Successor to marketing researchbusiness of Yahoo Value Insight, Inc.
by absorption-type demerger(Units: million yen)

January 2004

14,000Listed on MOTHERS
market of theTokyo Stock Exchange

12,000Net sales
売上高10,00012,210April 2005

Operating income
経常利益Transferred to 1st Section ofTokyo Stock Exchange

8,000

7,755

7,413

January 2000

7,353

6,392

Company established

6,000

5,179

August 2000

4,000

3,613

AIRs completed,
operations start-up
2,077

1,259

2,000
851

379
106

0
-2,000

201

1,653

1,984

2,157

1,753

2,135

2,522

614

29
-87

FY2001/6
FY2002/6
FY2003/6
FY2004/6
FY2005/6
FY2006/6
FY2007/6
FY2008/6
FY2009/6
FY2010/6
FY2011/6(Non(Non(Non(Non(Non(Consolidated) (Consolidated) (Consolidated) (Consolidate ) (Consolidated) (Consolidated)
Consolidated) Consolidated) Consolidated) Consolidated) Consolidated)

25

(Reference) Status of Capital/Business Tie-ups, Group Companies(Units: million yen)

Consolidated subsidiaries
Japan

Overseas⇒Research business in South Korea
Became subsidiary in February 20122012/6 3Q cumulative
Net sales: 31
Ordinary income: -210

⇒Marketing support business using the Internet
Will receive transfer of business from regain, Inc.

⇒38.5% stake

Capital/business tie-ups⇒10.66% stake (ratio of voting rights)
NEW

Shanghai UnitedUnited-Cities Industry Co., Ltd.

⇒Marketing solutions business mainly in thesmartphone area
Next generation marketing platform business(app development, etc.)

NEW

Dentsu Macromill NEW⇒40.0% stake2012/6 3Q cumulative
Net sales: 376
Ordinary income: -117

⇒Construction of QPR panels
Collection of consumer purchase data
Shareholders: Hakuhodo, Inc., etc.

Equity-method affiliates⇒6.9% stake⇒Research business in China
Start-up September 2011

Business tie-ups
Dentsu marketing insight26

Flow of Online Research Service
Clients

Macromill① Survey request④Send
questionnaires

People surveyed
Macromill panelists

Automatic Internet Research System

・PC panelists
・Mobile panelists
・Cell phone panelists

Domestic corporations
Overseas corporations⑤View tabulation of
responses in real time・Advertising agencies
・Manufacturers
・Consulting・Service companies
・IT companies
・Mass communication
・Public sector…etc.

②Prepare surveys③Choose people tobe surveyed⑤Real time tabulation⑥Generation of datafor delivery⑦Delivery ofsurvey results⑤Response toquestionnaires⑤Real time grantof reward points

Outside panelists

・Doctor panelists(business tietie-up
panelists)
・Overseas researchpanelists
・Member lists ofclients…etc.

*in the case of Macromill panelists* This is a representative example of the flow of online research using AIRs. Depending upon the subject of the research, AIRs may not be used or the flow
may change.
* In cases where a research plan is required, this happens before step ① on the flow chart. Where analysis of research results is required, this happens after
step ⑦ on the flow chart.

27

Share Information
As of December 31, 2011
Total shares authorized

83,712,000 shares

Total shares in issue

30,815,200 shares

Number of shareholders
Round lot

8,782 people
100 shares

Treasury stock
Financial products
5.5％
traders
0.8％
Other corporations
33.3％

Overseas
corporations, etc.
18.1％

Individuals, others
31.2％

Financial institutions
11.2％

Number ofshares held

Ownership（％）

Yahoo Japan Corporation

7,071,100

22.95

Vanillasky Corporation

2,402,000

7.79

Goldman Sachs International

2,143,700

6.96

Japan Trustee Services Bank, Ltd. (Trustaccount)

1,427,500

4.63

Tetsuya Sugimoto

912,400

2.96

Satoshi Shibata

832,000

2.70

Yasunori Fukuha

709,600

2.30

Goldman Sachs & Co. Regular Account582,400

1.89

Yuji Nakazaki

549,800

1.78

INTEC Inc.

514,400

1.67

Major shareholder

Note 1. The Company owns 1,847,900 shares of treasury stock but is not included in the above list ofmajor shareholders.
Note 2. The ownership ratio is calculated on the basis of shares in issue.
Note 3. The representative of Vanillasky Corporation listed above is the Company’s representative
director, Tetsuya Sugimoto.

28

Cautionary Statement

Macromill does not guarantee the accuracy of the information
contained in this presentation, which reflects judgments madeby Macromill management based on information currently
available.
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
29