First Quarter Results Briefing
Year Ending June 30, 2011
Macromill, Inc.
First Section, Tokyo Stock Exchange (3730)

Topics in First Quarter of Year Ending June 20111

1. Report on Results

Overview of First Quarter Results for Year Ending
June 2011(Million yen)

The results for the first quarter of the 11th term include the results of AIP, which was a consolidated subsidiary.

3Breakdown of Sales According to Category（ｎon-consolidated）
 There is no significant difference in the sales breakdowns of Macromill and YVI.
 The sum of net sales of both companies rose from a year ago in all industries
in the first quarter of the 12th term.
 Net sales excluding net sales of YVI increased 26.0% year on year.
Industries where sales rose
¥2,840
million

2.2(Year-on-year change in the sales
amount of Macromill)

１．Food & drink¥1,623
million■ Government agencies,
associations, schools, etc.
■ General companies■ Research companies,
consultants■ Advertising agencies(Figures in bars show
percentage breakdowns.)

2.2

67.7

63.6
14.9
19.3
11stst quarter
quarter of
of
th
th
11
11 term
term

14.4
15.7
11stst quarter
quarter ofof 1212ththterm
term

up 59.5%＋¥120 million

２．Services＋¥110 million

Research and３．
consultancy ＋¥50 million- QPR sales rose in particular.
- Industries that were sluggish in
the previous fiscal year recovered.
4Change in Breakdown by Service （ｎon-consolidated）
 The difference in the ratios of customized research reflects the difference
between the research systems of both companies.
 Macromill: 8.4%; YVI: 16.2% (AIRs covers a wide area of research.)

 The weighting of analysis is high at YVI, attributable to its strong ability tomake proposals.
（％）

4.0 1.0
2.5
8.5
6.3
7.7
6.6

63.4

7.1
4.6 0.9
8.4
22.7％
6.4
7.9
6.8

57.9

3.3 0.1
1.8
16.2
9.6
10.2
5.4

6.0
3.8 0.7
10.6
7.3
8.6
6.4

36.0％

The ratios ofqualitative research,customized researchand Analysis are highat YVI.

53.4

Other services
Mobile research
Global research
Customized research
Qualitative researchservices
Analysis

56.6

Tabulation
Automatic research

11stst quarter
quarter ofof 1212thth term
term

11stst quarter
quarter ofof 11
11thth term
term

MacromillMacromill

ＹＶＩ

Total (Macromill + YVI)

5

Unit Price, Number of Active Companies (Servers),
and VIP Clients
Year ended June 30, 2010
Indicator

Quarterly average unit priceper order
Quarterly average unit priceper order(automatic research only)
Number of active companies(annual)*1

Unit

st

1 quarternd

2

Year ending June 30, 2011

quarter

3 quarter

Full year(4th quarter)rd

1st quarter
MacromillAfterintegration

Ten thousand yen

72.8

70.3

72.9

70.0

79.7

Ten thousand yen

51.0

49.4

52.4

48.5

53.9

Companies

659

995

1,270

1,441

730

904

Number of active servers(annual)*1

Servers

1,452

2,481

3,477

4,188

1,702

2,221

Number of VIP clients*2

Companies

151

144

155

144

180

242

（*1） Number of companies/servers from which sales were recorded at least once from the beginning of the fiscal year.
（*2） Priority clients with annual sales of ¥10 million or more are defined as “VIP clients”.

 The unit price rose, reflecting a recovery in large-scale surveys and the
expansion of analysis and qualitative research.
 The numbers of clients, servers, and VIP clients all increased sharply
because of the integration.

6

Factors Behind the Increase in Income(Non-consolidated)
14
A rise in marginal profit withan increase in sales in thefirst quarter
Rise in sales in Q1: 230
Rise in variable cost: 69(Million yen)

Q1

4
Other
factors

performance

23
System cost: Cost
was less than
expected at the timeof integration.

161
Personnel cost: Cost
was less than expected.

Initialprojections

Ordinary income
574

More
thanexpected
incomeOrdinary income
372

Ordinary profit margin
14.3%

Ordinary profit
margin 20.2%

7

Costs Associated with the Integration
Most of the costs associated with the management integration are goodwill(including intangible assets) and an extraordinary loss.
Extraordinary loss (¥90m in the first quarter, expected to be ¥240m in the full year)
 Most of the loss will be posted in the first half.
Amortization costs with the acquisition of intangible assets(goodwill of ¥430m, client assets of ¥290m, and panelist assets of ¥40m)
 A total of ¥760m (to be amortized in 20, 16, and 9 years, respectively)
Year ending
Year ending(Million yen)
June 30, 2011 June 30, 2011
1st quarter
Full year(result)(forecast)
92
242

One-time costs
Extraordinary loss (systems, offices, and personnel)
Ongoing costs

Subtotal (ongoing costs)

4
3
1
5
13

20
17
5
101
143

Total expense

105

385

Amortization of goodwill (¥430m, amortized in 20 years)
Amortization of client assets (¥290m, amortized in 16 years)
Amortization of panelist assets (¥40m, amortized in 9 years)
Increase in amortization costs (systems and offices)

Only amortization costs will continue tooccur from the next fiscal year.

82. Progress of Management Integration

Progress of Integration
Aug

Sep

Completed on
Aug. 1

Management
integration

Oct

Nov

Dec

Completed on
Oct. 1Jan～Jan 1

Integration oforganizations and offices

Integration of services,
systems, and personnel
systems

The entire
integration
completed
YVI system
Macromill AIRｓ
1st quarter

2nd quarter

Macromill and YVI used the systems of each in August and September.
→ Macromill sales: ¥2.04bn (up 26.0% year on year)
YVI sales: ¥ 0.79bn (up 11.5% year on year)

Made a good start10

Purpose of the Integration
 Achieving an overwhelming market share
Net sales: ¥7.3bn before integration (performance in the 11th term) ¥12.5bn after integration (plan for the 12th term) A company benefiting from the strengths of both companies
 The profit margin percentage of YVI improving with the introduction of AIRs Excellent researchers of YVI bolstering Macromill’s ability to make proposals

ＹＶＩ

MacromillStrengths
Strengths

Strong
Strong sales
sales force
force
High
High margin
margin researchresearch systemsystem(AIRs)(AIRs)

Strengths
Strengths

A
A large
large number
number ofof people
people having
having aa
strongstrong ability
ability toto propose
propose researchresearch

Challenge
Challenge

RecruitingRecruiting people
people having
having highhighresearchingresearching skill
skill

Challenge
ChallengeImprovingImproving productivity
productivity andand thethe profit
profit margin
margin(Research(Research systemsystem thatthat needs
needs manual
manualprocess)
process)11

Status of Personnel
Year ending June 30,
2011Year ended June 30, 2010

1st quarter
Full year
Unit 1st quarter 2nd quarter 3rd quarter
After(4th quarter) Macromill
integration

Indicator
Number of employees(consolidated)*

People

356

297

297

309

605

Number of employees(non-consolidated)*

People

295

288

289

298

596

（*） Number of employees excluding those on leave An increase in personnel with the integration
 The number of researchers has particularly increased.
Sales

Operation

80 people  130 people 60 people  110 people

Researchers
60 people  130 people

Executive officers and executives at higher levels, and employees on leave are not counted.

 Systems integrated into the AIRs system
 Achieving an improvement in productivity per employee early

12Organization after the Consolidation
Operations Division I
Operations Division II

Increasing demand for conventional researchfrom clients

Operations Division III
Operations Division IV
West Division

Providing conventional research, using thestrengths of an online research company

Solutions Division

 Conducting one-stop recruiting of people to be surveyed,using AIRsNew

 Having professional staff with sufficient research expertise

Conventional Research Division
The division will conduct conventional surveys, such as groupinterviews, onsite surveys, and home use tests, using thestrengths of online research.

 Providing ample in-house facilities, including interview
rooms and CLT rooms

 The new organization was introduced in October.
Macromill and YVI personnel are assigned to each division.
 The Conventional Research Division, which will use the strengths of YVI,
has been formed.

13

Status of Panelists
Year ending June 30,
2011Year ended June 30, 2010

Indicator

Unit

Macromillpanelists

Ten thousandpeople

1st quarter
Full year
1st quarter 2nd quarter 3rd quarter
After(4th quarter) Macromill
integration
87.4

88.7

90.3

92.6

94.0

94.0

 Not only Macromill panelists but also Yahoo! Research panelists will be available.

PC panelists

Mobile panelists
PC and mobile phone panelists

230,000

Macromillpanelists:
940,000

Voice Portmembers:
480,000

Yahoo! Researchpanelists:

60,0001.43 million
With the integration of YVI (Voice Port)
panelists in January 2011, the number ofpanelists will become about 1 million.

Mirumoba panelists(Mobile phone panelists)

Mobile phone panelists
Uchico junior high and highschool panelists

10,000The number of Yahoo! Research panelists is that as in October. The numbers of other panelists are those as of September 30.

14

3. Earnings Forecast and Capital Policy

15

Provisional Full-Year Forecast （ｎon-consolidated）
1st half projection

2nd half projection

Net sales¥5,822 million

Net sales¥6,708 million

Solid progress comparedwith full-year forecast(Million yen)

Personnel costs1,994
Personnel costs1,904

29.7%

Outsourcing andpanelist costs
1,656

32.7%

Outsourcing andpanelist costs
1,479
25.4%

Other
1,500

Other
1,328

Expect a sharp improvement in theordinary profit margin as an increasein personnel costs will be offset by arise in sales.

¥19 million¥19 million

Ordinary income
920
15.8%

24.7%

Amortizationof goodwill etc.

Results in the first quarter were strong,and sales increased in the second halfin the past.

Ordinary income
1,711
25.5%

Aim for an ordinary profit margin of
20% in the 12th term and the level
before the integration (30%) later.
16

Change in Balance Sheet
Cash and deposits have become ¥6.5bn, and investment securities, ¥1.0bn.
 To be used effectively for business growth
The accounting standard for asset retirement obligations is applied.
(¥150m posted)
The uniform accounting standards were applied, and assets acquired were
determined (total assets: ¥4.25bn).

Outline of balance sheet

Assets¥9.4
9.4 bnLiabilities¥1.6 bn
Net assets¥7.8 bn

Before integration(end of June)

Liabilities¥2.5 bn
Assets¥13.5
13.5 bn

Goodwill¥760 mAsset retirement
obligations ¥150 m

Net assets¥11.0 bn

After integration（end of September）

17

Capital Policy ①
Announced on November 12, 2010
Notice on stock split, adoption of share unit system, and amendm
entamendment
to the Articles of Incorporation
Notice on determination of stock repurchases
 A stock split and the adoption of a share unit system are determined
to increase liquidity and expand the investor base.
 One share in Macromill will be split into 200 shares on January 1, 2011.
Record: December 31, 2010

 At the same time, the number of shares per unit will be set to 100.

 The investment unit will be effectively halved.
The Company aims to expand the number of individual investors.
 There will be no effective change in dividends.
※ Interim dividends will be paid, based on numbers of shares before the stock split.

18

Capital Policy ②
Announced on November 12, 2010
Notice on stock split, adoption of share unit system, and amendment
to the Articles of Incorporation
Notice on determination of stock repurchases
 Resolution for stock repurchases for flexible capital policy Period for repurchases: From November 15, 2010 to June 30, 2011
 Maximum number of shares to be repurchased: 5,000(3.2% of the shares issued excluding treasury stock)(Maximum number after the stock split: 1,000,000)

 Maximum value of shares to be repurchased: 1 billion yen

 Dividends and stock repurchases divided by net income: 100%
Stock buybacks are intended for effective use of capital andshareholder return.(Increases in ROE and EPS are also considered.)19

4. Future Development of Operations

Business Domain of Macromill
Existing
business

IT × MarketingNewbusiness

Marketing research
CRMbusiness

Overseasbusiness
Macromill CHINA

Online researchNewbusiness

New business domain

Partnershipwith Y!

DB
business
JV

Sampling
Promotion
Pay-forperformancesolutions Expanding operations in the domain relating to IT and marketing,especially in online research

21New and Overseas Operations
Sales for 1st quarterof the year ending
June 30, 2011

¥80 million¥30 million¥20 million

Sales target for the full year: ¥700 million(sum of sales of QPR, bdb, and AIRs MEMBERS)

 July 2010: The number of QPR panelists was expanded to 10,000.
 A basic agreement on the formation of a new company announced

 Aug. 2010: Chinese bdb started.
 Fifteen new database agreements in the first quarter About a year and a half had passed since the commencement of theservice.
 Four new contracts in the first quarter（For reference）¥110 million
Full-year target¥470 million

 Number of employees: 22; number of panelists: 240,000
 Since the company is an equity-method affiliate, only income andexpenses are added to consolidated results.
 A profit is expected to be made in the fiscal year under review.

※ Sales of Macromill Korea were calculated, using the exchange rate of 0.0736 yen against the won.

22

Basic Agreement on Formation of a New Company
Formation of a new company-JV
Capital:¥0.4 bn

Shareholder composition (phase 1)

Phase 2~

Investment ratios (plan)

82%
15%

＋

Offering3%
 Have decided to form a new company jointly with two companies to bolster the
QPR business.
 Will continue to offer investments strategically after the forming of a newcompany in January 2011 (plan) to make QPR (consumers purchasing data) an
industry standard.
QPR (Quick Purchase Report)™:

Product purchasing research service jointly operated by Macromill and Tokyu Agency whereby
QPR panelists are given portable barcode scanners to collect data on their purchasing habits.
The service also enables combined online research into consumer attitudes (reasons forpurchasing products, etc.)23

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

24Reference Material

25

(Reference) Corporate History
Jan. 2000

Macromill.com Inc. establishedAug. 2000

The Automatic Internet Research System (AIRs) completed and operated

Jan. 2001
Mar.

Dec. 2001

Recruiting activities starts in earnest; the Sales Department is established.
A monthly profit posted for the first time.

The business name changed to Macromill Inc.

Jun. 2002

A full-year profit posted for the first time (fiscal year ended June 2002; net sales: ¥300 million).

Mar. 2003

Ranked 10th among unlisted companies in the Venture of the Year 2002 award of Nikkei Venture.

May

AIRs is enhanced and redesigned; Quick-CROSS, tabulation software, starts to be offered for free.

Jan. 2004

Listed on TSE Mothers◆Rei Kikukawa becomes the poster child.
◆Tomoyo Harada becomes the poster child.

Feb.

Sales activities expanded nationwide (The Kansai branch established).

Apr.

Macromill Netresearch Institute established.

Jul.

MobileMill, a mobile research service, starts.

Sep.

Ranked fifth in Japan Technology Fast 50, rankings of fastest growing Japanese technology companies.

Feb. 2005

Apr. 2005

Forms an alliance with AIP, which manages research panels overseas, and starts the GlobalMill overseas research service.

Transferred to First Section of Tokyo Stock Exchange

Apr.
Jul.
Mar. 2006

Forms an alliance with So-net M3 (currently M3). M3Mill, research of healthcare professionals, starts.

Dec. 2007

The QPR service, a product purchasing research service using portable barcode scanners operated jointly by Macromill and Tokyu Agency, starts.

Jul. 2008

MACROMILL Korea, INC. established.

Oct. 2009

The Marketing Database Services expanded following the acquisition of Brand Data Bank.
Macromill Warp, Inc. established.

Aug. 2010

Takes over the marketing research business that is split from Yahoo Value Insight.

Joins the Japan Business Federation.
Cutover to the third-generation AIRs

◆Nobukazu Kuriki becomes the poster child.

26

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

Clients
Requesting surveys

Automatic Internet Research System

People surveyed
E-mailing questionnaires

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

Macromillpanelists
940,000
nationwide

clients

Requesting responses
Overseas researchpanels(Business alliances)

Consumers in 30 countries
or more27

(Reference) Performance Trends
Net Sales, Ordinary Income, Ordinary Profit Margin(Million yen)

9,000

40%
Net sales
Ordinary income
Ordinary profit margin

8,000
7,000

7,755

35%

6,392

34.8%
31.9%
29.6%

6,000

7,353

7,413

31.0%

30%

29.1%
29.0%

5,179

5,000

25%

23.6%
22.6%

4,000

20%

3,613

3,000
1,984

2,077
1,259

1,000

379
106

-1,000

1,753

1,653

2,000

0

2,157

7.7% 851

15%
10%

614
201

29

5%

-87
0.0%

0%

Year ended June 2002
（Non-consolidated）
Year ended June 2001
（Non-consolidated）

2,135

Year ended June 2004
（Non-consolidated）

Year ended June 2003
（Non-consolidated）

Year ended June 2006
（Consolidated）

Year ended June 2005
（Non-consolidated）

Year ended June 2008
（Consolidated）

Year ended June 2007
（Consolidated）

Year ended June 2010
（Consolidated）

Year ended June 2009
（Consolidated）

28

（Reference） Three-Year Business Plan
Year ending June 30,
2011 (plan)
Amount%Year ending June 30,
2012 (plan)
Amount%(Million yen)

Year ending June 30,
2013 (plan)
Amount%（Non-consolidated）

12,530100％

13,700100％

15,100100％

Ordinary income

2,631

21％

3,100

23％

3,700

25％

Net income

1,376

11％

1,900

14％

2,200

15％

Net sales (10% growth)（Consolidated） It is assumed that Macromill Korea will remain an equity method affiliate.

12,530100％

14,100100％

15,700100％

Ordinary income

2,506

20％

3,200

23％

3,900

25％

Net income

1,304

10％

1,900

13％

2,400

15％

Net sales

About 3％ ※Ratio of overseas sales
Consolidated EPS (yen)Market capitalization(PER is assumed to be 20.)

8,516

12,50015,60026.0 billion

38.0 billion

48.0 billion※ If Macromill Korea becomes a consolidated subsidiary, consolidated net sales will be ¥17.0 billion, and the ratio of overseas sales will be 10%.
29

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
30