First Half Results Briefing
Year Ending June 30, 2012

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

Topics

 See page 2 to page 10

 See page 11 and page 12

 See page 13 to page 171

Overview of Second Quarter Results
for the Year Ending June 2012 Both net sales and income increased and reached record levels.
Consolidated:
Income exceeded the plan, despite losses arising from prior investments by subsidiaries.
Non-consolidated: Income improved significantly due to the absence of integration-related expenses incurred in
the previous year.

(Million yen)

(Note) Macromill acquired the marketing research business of Yahoo Japan Value Insight Corporation on August 1, 2010 through the absorption-type company split.

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Full-Year Results Forecastfor the Year Ending June 2012 The full-year results forecast remains unchanged, despite favorable progress in income.
(Million yen)

(Note) Macromill acquired the marketing research business of Yahoo Japan Value Insight Corporation on August 1, 2010 through the absorption-type company split.

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Changes in Cost Structure and Income Analysis(2Q cumulative)
Nonconsolidated

2Q of FY2011/6(Million yen)

2Q of FY2012/6

Amount%Amount%Year-onyear

Net sales

6,273

100.0

6,760

100.0

107.8

COGS

3,170

50.5

3,189

47.2

100.6

Personnel

864

13.8

874

12.9

105.8

Panelists +Outsourcing

1,582

25.2

1,785

26.4

112.8

• Reduction of integrationrelated expenses(Effect is expected tocontinue up to 2Q)• Elimination of duplicate
operations

1,851

1,434
723

11.5

529

7.8

73.2

1,693

27.0

1,714

25.4

101.2

Personnel

1,037

16.5

1,044

15.5

100.7

Other

655

10.5

669

9.9

102.1

Ordinary
income

1,434

22.9

1,851

27.4

129.1

(Consolidatedordinary income)

1,455

Other

SG&A

Net income

683

1,577
10.9

1,040

• Prior investments by consolidated
subsidiaries
M-WARP -150
M-CUBE AND ASSOCIATES -86
etc.

-274

+417

1,577

FY2011/62Q

FY2012/62Q

FY2012/62Q

NonNon-consolidated
ordinary income

NonNon-consolidated
ordinary income

Consolidated
ordinary income

22.9%

27.4%

23.2%

108.4
15.4

152.3
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Breakdown of Sales by Category (non-consolidated)
 Sales increased 7.8% year on year, as sales to research companies, consulting
firms and advertising agencies, etc. remained firm.
 Although orders from external demand-related companies were weak, the impact was limited as theirsales ratio is low.
(%)

Industries to whichsales increased¥6,760 million(Year-on-year change in sales amount)¥6,273 million

1. Research companies/
consulting firms+13.9%■ Government agencies,associations,schools,etc.

+¥120 million

2. Advertising agencies■ General companies+10.2%■ Research companies,consulting firms■ Advertising agencies+¥110 million

3. Daily commodity/ drugs
11stst half
half ofof
FY2011/6
FY2011/611stst half
half ofofFY2012/6
FY2012/6+12.0%+¥80 million
5Changes in Breakdown by Service (non-consolidated)
 Sales increased in almost all services, and sales grew particularly significantly in thefollowing services: Qualitative research services: Year-on-year +24%
 Other services: Year-on-year +45% (QPR grew significantly by 70%)

5.5 0.7
3.6
10.2
7.3
9.1
6.1

7.4
3.4 0.6
10.3
8.5
9.4
6.3

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

57.5

Tabulation

54.1

Automatic research(%)

11stst half
half ofof
FY2011/6
FY2011/6

11stst half
half ofof
FY2012/6
FY2012/66

Status of Other Services (QPR, bdb, AIRsMEMBERS) Total sales of QPR, bdb, and AIRsMEMBERS rose 59.1% year on year.
 Overall sales in Other Services were up 45% year on year. (Results for the previous year included VI andother services.)
 QPR: Analyzable customer products increased as a result of the larger number of cooperative panelists.
Sales increased 70% due to increases in new contracts and orders for optional services.

Consumer purchasing databasecollected from 30,000 panelists

186  317 million yen

11stst half
half ofof
FY2011/6
FY2011/6¥309 million

11stst half
half ofof
FY2012/6
FY2012/6¥492 million

Research results database on belongingsand preference of 30,000 people

79  106 million yen

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

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

43  67 million yen
7Unit Price, Number of Active Companies (Servers)
and VIP Clients
 Sales ratio of VIP clients rose to 80% of total
FY2010/6
Indicator(qualitative research is counted asone order)*1

Quarterly average unit priceper order(automatic research only)*1

Quarterly average unit priceper order(for reference)

3rd quarter

4th quarter(Full year)

Tenthousand
yen

71.1

68.5

77.3

79.1

Ten
thousand
yen

52.4

48.5

53.9

Ten
thousand
yen

*1

72.9

70.0

Number of active companies*2(annual)Number of active servers*2(annual)*3
Number of VIP clients

Companies

1,270

Servers

Number of VIP clients withaverage quarterly sales of*4
¥10 million or more

FY2012/64th quarter(Full year)

1st quarter2nd quarter

80.0

75.5

78.3

79.7

52.2

52.0

49.8

52.5

52.0

79.7

82.2

83.5

78.7

81.3

83.3

1,441

904

1,386

1,675

1,895

985

1,371

3,477

4,188

2,221

3,870

4,988

6,067

2,485

3,988

Companies

155

144

242

240

240

229

254

256

Companies

(29)

(27)

(59)

(58)

(55)

(53)

(61)

(63)

Unit

Quarterly average unit priceper order

FY2011/6
1st quarter 2nd quarter 3rd quarter*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 research werenot included in the calculation of the quarterly average unit price per order (For reference). To calculate realistic unit prices, overall unit prices are calculated basedon 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.

8Status of Personnel
FY2010/6
Indicator

Unit

FY2011/6

3rd quarter

4th quarter

1st quarter

FY2012/6

2nd quarter 3rd quarter

4th quarter

1st quarter2nd quarter

Number of employees(consolidated) *People

297

309

605

553

545

557

566

594

Number of employees(non-consolidated) *People

289

298

596

542

528

542

541

550

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

 Breakdown of personnel by job type
Sales
135 people

Operation
90 people

Researchers
145 people

Other staff are in charge ofbusiness planning,business administration,and panelists support, etc.

* Executive officers and executives at higher levels, and employees on leave are not counted.
* As of January 1, 2012

 Number of employees at consolidated subsidiaries: 25  44 people
M-CUBE AND ASSOCIATES: 5  6 people
M-WARP: 3  17 people (AIRsMEMBERS Group was transferred from Macromill)
MACROMILL China: 17  21 people
9Status of Panelists
FY2010/6
Indicator

UnitMacromillPanelists

Tenthousandpeople

FY2011/6

3rd quarter4th quarter

1st quarter

90.3

92.6

94.0

FY2012/6

2nd quarter 3rd quarter

100.2

98.5

4th quarter

1st quarter2nd quarter

104.0

105.9

107.1

* As of December 2011

PC panelists
Macromillpanelists:
1,071,000

Mobile panelists

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

PC and mobile phone
Mirumoba panelists
panelists: (Mobile phone panelists):
Approx. 290,000
Approx. 50,000

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

10Changes in Balance Sheet (consolidated)/ Capital Policy
Liabilities¥7.9 billion
Assets¥13.9 billion

Cash and deposits¥6.7 billion

Liabilities¥2.7 billion

Net assets¥11.1 billion

Assets¥18.1 billion

Cash and deposits¥10.0 billion

CB issued¥5.0 billion

Net assets¥10.2 billion ** Treasury stock of ¥1.1 billion was retired in August 2011

End of June 2011

End of December 2011

 Acquisition of treasury stock continues (Acquisition period: August 2011 to August
2012, Amount to be acquired: ¥2.5 billion)
Acquisition period
From August 3, 2011 tothe end of January 2012

Number of shares acquired
1,861 thousand shares(Progress: 58.2%)

Total amount acquired¥1,606 million(Progress: 64.3%)
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Dividend Policy Determined that the interim dividend will be ¥10 per share Determined to increase the expected year-end dividend (¥11  ¥13)
 Some of income that was larger than expected in the first half will be distributed to shareholders.

Dividend
increase by ¥225

Year-end dividend
Consolidated payout ratio

Interim dividend

60%
49.4%

44.4%

20

44.4%

32.4%
15
1031.4%40%

30.8%9798566

7.5

139
7.5

50%

7.5
+2.5 *

30%
20%

10

010%
0%

2007/6

2008/6

2009/6

2010/6

2011/6

2012/6(Forecast)* Of the interim dividend in FY2011/6, ¥2.5 was commemorative dividend.
* Consolidated payout ratio for the current fiscal year is calculated, using the number of shares obtained by subtracting
1,847,900 shares of treasury stock as of the end of December from 30,815,200 shares outstanding.

12Business Development of Macromill Group Promoting business development, with domestic business, new business andoverseas business as three cores Utilizing funds raised based on the policy in the medium-term management plan

 Aiming to steadily grow the online research and peripheral businesses and maintain andimprove the profit margin.
 Complementing business domains, with alliances and JVs as the core strategies.

 The renewal version of POPCORN and new applications are to be released.
 Increasing the degree of freedom operation for each application through incubation(support for business start-up)

 EMBRAIN Co., Ltd., a South Korean research company, will become a subsidiary(with the largest share of the Korean online research market).
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Capital and Business Alliance/ Group Companies(Million yen)

Consolidated subsidiaries
Japan

Equity method affiliates

Overseas

Joint venture withDentsu Marketing InsightNEW

 Construction of QPR panel
Collection of consumer purchasingdata
1st half of FY2012/6
Net sales:
239
Ordinary income: -86

 Research business in South Korea
Becomes a subsidiary in February
2012 (planned)
FY2010/12Net sales:
859
Ordinary income: 65NEW

 40.0% stake (to be established in April) 38.5% stake

Capital and business allianceNEW 14.97% (percentage of voting rights)

Business alliance Marketing solution business and nextgeneration marketing platform business(application development, etc.) mainlyin the area of smartphones
1st half of FY2012/6
Net sales:
11
Ordinary income: -150

 Research business in China
Began operating in September
2011

NEWDentsu Marketing InsightNEWNEW
14Approach for Domestic Business(online research and peripheral businesses)“Stable Growth of the Marketing Research Business in Japan”
Strengthening the online research business A smartphone-capable response screen for AIRs is to bereleased in March.
 Aiming to improve the response rate of panelists and acquire young panelists

 Business alliance with Dentsu and Dentsu Marketing Insight Joint venture with Dentsu Marketing Insight is to be established inApril.
 Aiming for the consolidation and efficient operation of the online researchbusiness Business alliance with Marsh Co., Ltd. (the off-line research area)* Image of screen for smartphone

Strengthening the peripheral business Business alliance with ZENRIN
DataCom Co., Ltd.
 Developing new services in the area marketing
Using consumer data, map information andconsumer behavior data owned by Macromilland ZENRIN DataComEnhancing system development capability
 Capital and business alliance withTechfirm
IT technical capability of Techfirm ×Marketing know-how of Macromill Considering sophisticated solution services
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Approach for New Business
Operating a business with the mission of “creating a next-generation
marketing platform and providing support for corporate marketing”
 Entering the monetization phase. A new version of POPCORN is to be released.
 Promoting new application development through incubation (support for business start-up)
 Supporting corporate marketing using AIRsMEMBERS and applications
the renewal
Engine (base application) Release
version in March<Emotional recommendation engine>

To be liked bynarrowed-down
content

Interest Match
A new application to bereleased in March(A new company to be established) Entering the monetization phase, as approximately ayear has passed since the release.
Database
construction

Data BaseLightcommunication

To be released in March<Picture and diary sharing album tool>

Kodomonogatari Establish a new company with a 95% stake by M-WARP
with the aim of increasing the degree of freedom
to make final decisions by clarifying the budget andresponsibilities

Communication
A new application to bereleased in April16

Approach for Overseas Business“Global development of online research, centering on Asia”
 EMBRAIN Co., Ltd., a South Korean research company, will become a subsidiary(Macromill will acquire a 51.0% stake for approximately ¥640 million) Firmly establish the operating base in South Korea to accelerate overseas operations centering on Asia.

Features of EMBRAIN
Korea researchpanelists: 640,000• Having the largest share of the online research market inSouth Korea* Based on the survey in 2010 by KORA (Korea ResearchAssociation)• Holding a unique questionnaire panel in North East Asia (seethe chart on the right)• FY2013/6 (forecast): Net sales ¥1.1 billion, ordinary income
approx. ¥0.1 billion, major customers include Samsung
Electronics, etc.

Chinesesubsidiary

Taiwanese
subsidiary

Koreansubsidiary

China researchpanelists: 550,000

Taiwan researchpanelists: 150,000

Panel business,
research business,etc.

 (For reference) Online research market data in South Korea(100 million won)

Fiscal year2008

20092010

2011 (E) 2012 (E) 2013 (E) 2014 (E)Size of the online research market

460

527

672760

850

950

1,060

Ratio of online research

13%

14%

16%

17%

18%

19%

20%

Growth rate (YoY)

15%

15%

27%

13%

12%

12%

12%

* Estimates by EMBRAIN based on surveys by KORA and ESOMAR

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

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