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

We offer our heartfelt sympathies to the victims, their families and all thoseaffected by the Great East Japan Earthquake.
We look forward to the swift recovery of those in the affected areas.

Macromill, Inc.

1. Report on Third Quarter

Topics in Third Quarter of Year Ending June 20113

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

*1 Consolidated net sales in the first quarter of the 11th term include net sales of AIP, which was a consolidated subsidiary.
*2 Net sales for the 11th term are the sum of sales of Macromill and sales in the research business of YVI.

4

Information about the Impact fromthe Great East Japan Earthquake

Impact on Macromill
 Although Macromill did not suffer any direct damages as a result of the earthquake,it was affected indirectly through its customers.
 For the period from March 12 to March 21, Macromill basically suspended operations
to confirm the impact on customers and panelists and to ensure the safety of employees.
 Many projects were cancelled or postponed, mainly automated surveys.
Macromill was affected by the tendency for deliveries to be focused at the end of the week and endof the month, and lost slightly over 600,000,000 yen of the projects scheduled for delivery in March.

Impact on Customers

Impact on Panelists

 Many companies announced damages due tothe earthquake Sent out email messages to all panelists living indisaster-affected regions* to confirm permission
regarding questionnaire distribution.

 Spread of self-imposed restraint on advertisingand new product releases
 Business suspensions, etc. due to rolling
blackouts
 Interrupted work, budget freezes occurred Measures taken to include only those panelists
from whom permission was obtained in thenumber of active panelists.
 The number of panelists temporarily decreased.

* Aomori Prefecture, Iwate Prefecture, Miyagi Prefecture, Fukushima Prefecture, Ibaraki Prefecture, Chiba Prefecture5

Information on Relief Efforts Aimed at theGreat East Japan Earthquake Launch of a purpose-built earthquake relief website
http://www.macromill.com/shinsai/
 Implemented “all a research firm can do”
・ Made contributions through charity questionnaires andannounced results
・ Built systems allowing the donation of panelist points
Extract from the purpose-built
earthquake relief website◆ Contributions from Macromill Panelists and Macromill◆ Other Content

Total

yen

 Contributions through the donation of panelist pointsyen

No effect on P/L Contributions through charity questionnaires
yenMessages from Macromill panelists to thoseaffected by the disaster

Effect on P/L

Messages from Macromill panelists to thoseaffected by the disasterContributions from Macromill
yen

Questionnaires on support for daily living
activities associated with the Great East Japan
Earthquake

Effect on P/L…… and more

6Analysis of Factors behind the Decline in 3rd Quarter Sales (3month, Non-consolidated)■ Initial Budget

March
Achievement■
Rate

3rd Quarter Achievement Rate
■ (3 months)* Calculated with March and 3rd quarter (3 months) budgets
for each business site as 100

Internal
Organization

Division 1

Division 2

Division 3

Division 4

West Division

Industries
Handled*Ad agencies
Research consulting,etc.

Daily goods
Services, etc.

Telecommunications
Electronic devices,etc.

Foods andbeverages, etc.

Kansai clientsCompany-wide

March sales produced achievement rates of around 53-65% compared with initial budgets.
 Due to the earthquake striking, ad agencies, whose period from order to deliver is short,
were the most heavily affected.

Even during the 3rd quarter, the budget weighting for March is notably high, affecting the entire quarter.
 March accounted for 44.2% of the 3rd quarter budget.
* There are some cases where single industries are handled by multiple divisions. Industry
classifications and divisions are not completely consistent.

7Analysis of Factors behind the 3rd Quarter Decline in
Profits (3-month, consolidated) Biggest factor is the decline in marginal profit due to the fall in sales(Million yen)Contraction insystem-related new
development costs

New investment at
subsidiaries

67

455

97

58
Third quarter
projections
Ordinary income
1,036
Third quarter
projections
Ordinary profit margin
28.5%

90

Other overhead:Contraction mainly advertisingcosts, travel expenses andcommunications charges

Decline in personnel
costs (salaries, etc.)

Third quarter(results)
Ordinary income
699[Decline in marginal profit due to drop in sales]
Decline in sales: 650
Decline in variable costs: 195

Third quarter (results)
Ordinary profit margin
23.7%

8

Breakdown of Sales According to Category（nonnon-consolidated）
consolidated）
 Trends in each industry changed dramatically before and after the Great East Japan Earthquake
Before the earthquake: There were strong marketing research needs in many industries
After the earthquake: A lot of research was suspended or postponed at agencies and manufacturers in particular.
Rebounding from April onwards.

Industries where sales rose

(Figures in bars show
percentage breakdowns.)(Year-on-year change in the sales
amount of Macromill)¥9,248 million

3.4

１．Advertising agencies＋60.0%¥5,462 million

3.6

65.2

■ Research companies,
consultants■ Advertising agencies

Sales were strong across awide range of products, but slowed to a
crawl after the earthquake.

２．Food & drink

63.2■ Government agencies,
associations, schools, etc.
■ General companies+¥580 million

14.6
15.3
17.9

16.9

First
First three
three
quarters
quarters ofof 11
11thth
term
term
(nine
(nine months)
months)First
First three
three
quarters
quarters ofof 12
12thth
term
term
(nine
(nine months)
months)＋73.9%+¥560 million

 With QPR at the core, consumer
goods manufacturers were doing wellup until before the earthquake.

３．Services＋81.0%+¥550 million
9Change in Breakdown by Service （non-consolidated）
 With a change in the customer mix, sales of services other than automatic research rose.
 Global research: up 115% year on year Qualitative research services: up 137% year on year Stepped up subcontract management and in-house production to improve the profit margin.
5.2
3.0 1.3
8.2
5.6
7.9
6.5

5.7
3.7 0.7
10.2
7.9
9.5
6

Other services
Mobile research
Global research
Customized research
Qualitative research services

62.3

56.2

AnalysisTabulation
Automatic research

(％)
First
First three
three
quarters
quarters ofof 11
11thth
term
term
(nine
(nine months)
months)First
First three
three
quarters
quarters ofof 12
12thth
term
term
(nine
(nine months)
months)10Other (Peripheral) Services
 The sum of sales of QPR, bdb, and AIRsMEMBERS rose 61.6% year on year.
Since deliveries of projects in March fell short of expectations due to theearthquake, a slight delay is seen in progress towards the full-year target.
Full-year target:
A total of ¥700 million

First threequarters of
11th term(result)¥280 million

First threequarters of
12th term(result)

190 → 260 million yen

30 → 110 million yen¥450 million
50 → 70 million yen
11Unit Price, Number of Active Companies (Servers), and VIP Clients
Clients
Year ended June 30, 2010
Indicator

Unit

Quarterly average unit
Ten thousand
price
yen
per order *1
Quarterly average unit
price per order
Ten thousandyen(qualitative research*1
included)
Quarterly average unit
Ten thousand
price per orderyen(automatic research only)

1st quarter 2nd quarter3rd quarter

Year ending June 30, 2011

Full year
1st quarter 2nd quarter(4th quarter)

3rd quarter

72.8

70.3

72.9

70.0

79.7

82.2

83.5

71.2

68.3

71.1

68.5

77.3

79.1

80.0

51.0

49.4

52.4

48.5

53.9

52.2

52.0

Companies

659

995

1,270

1,441

904

1,386

1,675

Number of active servers(annual) *2

Servers

1,452

2,481

3,477

4,188

2,221

3,870

4,988

Number of VIP clients *3

Companies

151

144

155

144

242

240

240

Number of clients withaverage quarterly sales of¥10 million *4

Companies

(27)

(25)

(29)

(27)

(59)

(58)

(55)

*1

Number of active
companies(annual) *2*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-to-datesales of ¥5 million.
*4 The number is calculated based on year-to-date sales.

12Integration of Personnel
Year ending June 30, 2011

Year ended June 30, 2010

Indicator

Unit

1st quarter2nd quarter3rd quarter

Full year(4th quarter)

1st quarter 2nd quarter 3rd quarter

Number of employees(consolidated)*

People

356

297

297

309

605

553

528

Number of employees(non-consolidated)*

People

295

288

289

298

596

542

511

（*） Number of employees excluding those on leave The total number of employees declined. The number of salespersons, operation staff
members, and researchers did not change significantly.
Sales
Approx. 125 people

Operation
Approx. 100 people

Researchers
Approx. 130 people

Other staff are in charge ofglobal operations, newbusiness development andpanelists support.

*Executive officers and executives at higher levels, and employees on leave are not counted.
*As of January 5, 2011.

 Productivity per employee improved with systems integrated into the AIRs system.
 Six new graduates will join the Company in April 2011.
13

Status of Panelists
Year ended June 30, 2010

Indicator

Unit

Year ending June 30, 2011

1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter

Tenthousand
94.0
87.4
88.7
90.3
92.6
100.2
98.5
peopleWe carried out confirmation of the ability to distribute questionnaires to all panelists in the prefectures(Note) hardesthit by the earthquake.
We have removed those panelists from the list of active panelists until distribution permission can be confirmed.
The number of panelists has temporarily decreased.

Macromillpanelists

PC panelists※As of March 31, 2011

Mobile panelists
PC and mobile
phone panelists:
250,000

Macromill panelists:
985,000
Former Voice Portmembers

Yahoo! Researchpanelists:
1,240,000

Mirumoba
panelists(Mobile phone
panelists): 60,000
Mobile phone
panelists
Uchico junior highand high school
panelists: 10,000(Note) We carried out confirmation of the ability to distribute questionnaires to all panelists in Aomori Prefecture, Iwate Prefecture, Miyagi Prefecture, Fukushima Prefecture,
Ibaraki Prefecture and Chiba Prefecture.

142. Full-Year Forecast and Capital Policy

Provisional Full-Year Forecast(Million yen)

(Note 1) Figures released prior to the stock split (1:200) are converted to 1/200th.
(Note 2) Comparisons made with figures for fiscal 2011 Macromill sales added to YVI research business sales (from August onwards).

 With the decline in sales due to the earthquake, profits also fell.
 Sales down 650 million yen (3rd quarter) and 30 million yen (4th quarter) from the previous revised plan are expected.

 Invest in new businesses at subsidiaries will commence anew.

16Assumptions for Revised Earnings
Impact due toEarthquake

Amount of 3rd Quarter
Cost Contraction

Amount Invested in
New Businesses at
Subsidiaries(Million yen)

Consolidated
Impact476
215
Previous
Revised Plan
Ordinary income(Announced on
January 28, 2011)

3,039

See Page 7 forBreakdown[Decline in marginal profit due to drop in sales
in the second half]
Decline in sales: 680
Decline in variable costs: 204

Previous Revised Plan
Ordinary profit margin
23.4%

276

Current Revised
Plan
Ordinary income
2,500
Current Revised Plan
Ordinary profit margin
20.3%

17

Change in Balance Sheet
Assets¥13.3 bn
Liabilities¥1.6 bn
Assets¥9.4 bn

Net assets¥7.8 bn

End of June 2010

Cash and deposits¥5.7 bn

Liabilities¥2.3 bn

Net assets¥10.9 bn

Goodwill¥840 mEnd of March 2011

 Maintain the level of cash and deposits while dropping funds into new andoverseas businesses.
 Develop businesses aggressively to erect new pillars.
 Actively consider M&A activities regarding new and overseas businesses
18Capital Policy A stock split and the adoption of a unit share system coming into force as of January 1,
2011 was carried out with the aim of improving liquidity and expanding the investor base.
* Stock split 1:200, one unit constitutes 100 shares.

 Although dividend per share became 1/200th, the amounts were maintained.
 Although affected by the earthquake, the consolidated dividend payout ratio will bemaintained at at least 30%.
 Increased dividends are also being considered after maintaining the amount for thecommemorative dividend in the next period.

 Dividend Per Share for Fiscal 2012
Interim Dividend *Year-end Dividend

Total

Before Stock Split

1,500 yen + 500 yen

1,800 yen

3,800 yen

After Stock Split

7.5 yen + 2.5 yen

9 yen

19 yen* Includes commemorative dividend of 500 yen.
While the interim dividend will be paid a date before the stock split as the basedate, in this table the figures after the split are listed for the sake of convenience.
19

3. Future Development of Operations

Business Domain of Macromill

IT X MarketingNewbusiness

MarketingresearchNEW!

DB business

Overseasbusiness

Overseas operation

Onlineresearch

Expanding operations in thedomain relating to IT andmarketing, especially in
online researchPartnershipwith Y!

Sampling
Promotion
CRM
businessPay-forperformancesolutions

Prioritybusiness

Expansion of fields domestically21

Macromill Group Overview
Macromill Main Unit

Investment
Ratio

Subsidiaries
Newbusiness

90.25%
Operation of POPCORN applicationDBbusiness

76.875%

Consolidation
Take-over

Building, operation and management ofconsumer research panels
Selling of data, etc. on buying patternsDBbusiness

38.5%

Overseasbusiness* Equity method adopted

 While bdb was a 100% subsidiary,
Macromill undertook a consolidated
take-over of the subsidiary on April 1,
making it a division of its main unit.

Operation of net-research business inSouth Korea

90.0％

Overseasbusiness
External Affairs permit application pending

22

Overseasbusiness

Macromill China

Flow of business
commencement

Present

Operating
LicenseObtained

Acquisition ofExternal Affairs
Permit*・Opening of bank accounts, paying-up of
capital・Opening of office・Commence recruitment of panelists
・Commence operations inside China

Establishment of company in Shanghai complete, application
for External Affairs Permit pending Delays from the initial schedule have been seen due to stricter review criteria



Secondment of five staff from Macromill including a
representative
Seven local staff hiredConceptual image of the
Shanghai, China office

Enables the selling ofresearch outside China* When overseas firms conduct research inside China, or when domestic research firms provide data to overseas,
this is referred to as External Affairs research and requires permission.

23

Smartphone Application Launch (1)Newbusiness Business Idea
Environment

Ordinary People

Businesses

Changes in internetenabled devices
Rapid growth in
the field of SNS

Diversifying likes andtastes / values
Speedy transitions

Shift from advertising tosales promotion
Responding to a wide varietyof ordinary people

Utilize smartphones, which continue to experience rapid expansion,and recognize the need for a service capable of monitoring thecontinuously transitioning likes, tastes and valuesof ordinary people in real-time.

Utilize the network research technologies and expertise Macromill has
accumulated to embark on the development of a service which can create
highly convenient user-user and user-business relationships.

24

Smartphone Application Launch (2)Newbusiness Launched the POPCORN smartphone application as a new
business to response to changes in devices.
 April 18: Japanese language version released on the AppStore Additional sequential releases of browser-based version, Android terminal version
and overseas version planned.

POPCORN’s Three Main Functions

Able to grasp
the current you

Able to sharethe current you

Able to seek out
people similar tothe current you POPCORN explanatory video released on the Macromill IR website.
(Audio commentary by Chairman & President Tetsuya Sugimoto)
Please check http://www.macromill.com/ir/ for details.
Application
Screenshot

25

Smartphone Application Launch (3)Announced on April 12, 2011

New
business

About the Rollout of the POPCORN Smartphone
Application by Cooperating Partners
POPCORN’s
Challenges• Expand the number of users early on• Enhance and upgrade service variations

Promote development ofalliances with partner • Consider and discuss with partner businesses
businesses
Basic Agreement with
Sharp Corporation• To jointly explore the development of new services utilizing POPCORN’s
analysis algorithm and the development of businesses leveraging
mutual strengths• Serious consideration also being given to pre-installing POPCORN on
the GALAPAGOS media tablet rolled out by Sharp.

 Create new value that utilizes interest graphs
 Towards the early popularization of POPCORN
26

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

27

Reference Material

28

(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.

Jan. 2011

M-CUBE AND ASSOCIATES, Inc. established.
A stock split and the adoption of a unit share system

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

◆Nobukazu Kuriki becomes the poster child.

29

(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 more30

(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

7,353

7,413
34.8%
31.9%
29.6%

6,000

35%

6,392
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

2,135

1,259

1,000

379
106

-1,000

1,753

1,653

2,000

0

2,157

7.7% 851

10%

614
201

29

5%

-87
0.0%

0%

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

15%

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）

31

（Reference） Three-Year Business Plan
Year ending June 30,
2011 (revised plan)

Year ending June 30,
2012 (plan)

AmountAmount%%(Million yen)

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

12,300100％

13,700100％

15,100100％

Ordinary income

2,820

22.9％

3,100

23％

3,700

25％

Net income

1,470

12.0％

1,900

14％

2,200

15％

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

12,300100％

14,100100％

15,700100％

Ordinary income

2,500

20％

3,200

23％

3,900

25％

Net income

1,200

10％

1,900

13％

2,400

15％

Net sales

About 3％ ※Ratio of overseas sales
Consolidated EPS (yen)

34.44

62.50

78.00

※ If Macromill Korea becomes a consolidated subsidiary, consolidated net sales will be ¥17.0 billion, and the ratio of overseas sales will be 10%.
32

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
33