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

1. Report on First Half Results

Topics in Second Quarter of Year Ending June 20112

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

2nd quarter (standalone)
2nd quarter (cumulative)(Oct 1 - Dec 31)(Jul 1 – Dec 31)
11th
Year-onYear-onththth
12 term
12
term
11
term
year
year
term

Initial plan before therevision(Percentage achievement)

3,435

1,777

193.3%

6,283*1 3,540

177.5%

5,821(107.9%)Ordinary
income873499

174.9%

1,455

866

168.0%

920(158.2%)

Ordinary profit margin

25.4%

28.1%

-

23.2%

24.5%

-

15.8%

(+7.4ｐｔ)

Extraordinary
loss

162

-

-

255

-

-

243

-

Net income

407

316

128.8%

690

588

117.3%

398(177.4%)

3,432

1,753

195.8%

6,273

3,377

185.8%

3,432

2,971

115.5%

6,273

5,309

118.2%

859

505

170.1%

1,434

930

154.2%Net sales
Consolidated* For reference
NonNonconsolidated

Net sales*2

Net sales

Ordinary
income*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.

3

Breakdown of Sales According to Category（non-consolidated）
 Sales rose year on year in all categories, partly due to the effect of integration.
 The sales breakdown by category was mostly unchanged, but sales fromresearch companies, consultants, and advertising agencies recovered fromthe first quarter.
Industries where sales rose

(Figures in bars show
percentage breakdowns.)

2.7¥6,273 million(Year-on-year change in the sales
amount of Macromill)

１．Food & drink+95.2%

65.5¥3,377 million

2.8■ Research companies,
consultants■ Advertising agencies

 Sales from consumer goods
manufacturers, especially QPR
sales, remained strong.

２．Advertising agencies

63.4■ Government agencies,
associations, schools, etc.
■ General companies+¥470 million

14.4
15.1
18.7

17.5

11stst half
half ofofthth11
11 term
term

11stst half
half ofofthth12
12 term
term+73.4%+¥460 million

 Sales from advertising agencies
recovered.

３．Services+106.1%+¥430 million
4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 157% year on year Qualitative research services: up 141% year on year Stepped up subcontract management and in-house production to improve
the profit margin.
5.0
2.6 1.3
8.4
5.7
8.2
6.6

5.5
3.6 0.7
10.2

Other services

7.4
9.1
6

Global research

Mobile research

Customized research
Qualitative research services

62.2

57.5

AnalysisTabulation(％)

Automatic research
11stst half
half of
of
th
th
11
term
11 term

11stst half
half ofofthth12
12 term
term

5Other (Peripheral) Services
 The sum of sales of QPR, bdb, and AIRsMEMBERS rose 66.6% year on year.
 The merger of Brand Data Bank was resolved.
Starting April 1, collaboration in the online research service and the databaseservice will be strengthened.

1st half of
11th term(result)¥180 million

1st half of
12th term(result)

120  180 million yen

30  80 million yen

Full-year target:
A total of ¥0.7bn¥300 million
30  40 million yen
6Unit Price, Number of Active Companies (Servers), and VIP Clients
Year ending June 30, 2011

Year ended June 30, 2010
1st quarter2nd quarter3rd quarter

Full year(4th quarter)

1st quarter2nd quarter

Ten thousand
yen

72.8

70.3

72.9

70.0

79.7

82.2

Ten thousand
yen

71.2

68.3

71.1

68.5

77.3

79.1

Ten thousand
yen

51.0

49.4

52.4

48.5

53.9

52.2

Companies

659

995

1,270

1,441

904

1,386

Number of active servers(annual) *2

Servers

1,452

2,481

3,477

4,188

2,221

3,870

Number of VIP clients *3

Companies

151

144

155

144

242

240

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

Companies

(27)

(25)

(29)

(27)

(59)

(58)

Indicator

Unit

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

 “The number of clients with average quarterly sales of ¥10 million” is added for reference. 7

Progress of Integration
 Integration was completed in all fields at the end of December.
 No sales of services of the former YVI were posted from the third quarter.
Aug
Completed on
Aug. 1

Sep

Oct

Nov

Dec

Jan. 1

Completed on
Oct. 1

Management
integration

Integration oforganizations
and offices

Q1 sales of services of former YVI:¥795 million(About 30% of non-consolidated sales)

Jan ~Integration ofservices,
systems, andpersonnel
systems

Q2 sales of services of former YVI:¥483 million(About 14% of non-consolidated sales)
The entire
integration
completed

YVI system
Macromill AIRｓ
1st quarter2nd quarter3rd quarter8

Integration of Personnel
Year ending June 30, 2011

Year ended June 30, 2010

Indicator

Unit

1st quarter2nd quarter3rd quarter

Full year(4th quarter)

1st quarter2nd quarter

Number of employees(consolidated)*

People

356

297

297

309

605

553

Number of employees(non-consolidated)*

People

295

288

289

298

596

542

（*） 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

Operation

Researchers

Approx. 125 people

Approx. 100 people

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.
9Integration of Panelists
Year ended June 30, 2010

Indicator

Unit

MacromillpanelistsTenthousandpeople

1st quarter2nd quarter

87.4

88.7

3rd quarter

90.3

Year ending June 30,2011

Full year
1st quarterth(4 quarter)

2nd quarter

94.0

100.2

92.6

 With the integration of Macromill panelists and Voice Port members, the number of panelists of
the Company has become 1 million.

PC panelists

Mobile panelists
PC and mobile
phonepanelists:
240,000

Macromill panelists:
1,000,000
Former Voice Portmembers

The number of panelists is as of December 31, 2010.

Yahoo! Researchpanelists:
1,430,000

Mirumoba
panelists(Mobile phone
panelists):
60,000
Mobile phone
panelists
Uchico juniorhigh and highschoolpanelists:
10,00010

Costs Associated with Integration
 Costs associated with the management integration, which are within the scope of the assumption,
are goodwill and an extraordinary loss.
 Extraordinary loss (¥250m)  No extraordinary loss associated with the integration will be posted in
the latter half.
 Amortization costs with the acquisition of intangible assets (a total of ¥760m)  Annual amortizationis ¥40m.
(Million yen)

Year ending
Year ending
June 30, 2011 June 30, 2011

One-time costs

1st half (result) Full year (forecast)
Extraordinary loss (systems, offices, and personnel)

255

255

Ongoing costs
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 other expenses (chiefly related to systems)
Subtotal (ongoing costs)

9
8
2
16
35

20
17
4
56
97

Total expense

290

352
11

Factors Behind the Increase in Income(First Six Months, Non-consolidated)(Million yen)

38
43
100

A rise in marginal profit with anincrease in sales
Rise in sales: 450
Rise in variable cost: 117

Other expenses,
especiallyadvertising,traveling, andcommunication
expenses, declined.

333

Integration costs(systems) were lessthan expected.

Initial projections
Ordinary income920

1st half (result)
Ordinary income
1,434

Integration costs(organization, offices)were less than expected.

Initial projections

1st half (result)

Ordinary profit margin 15.8%

Ordinary profit margin 22.8%
12

2. Full-Year Forecast and Capital Policy

Provisional Full-Year Forecast
Results in Forecasts
1st and 2nd for 3rd andquarters 4th quarters

Full-year
forecasts

Results in previous
fiscal year
(Full-year forecast / result inprevious fiscal year)(Million yen)

Initial plan
(Full-year forecast / resultin previous fiscal year)

Consolidated

Net sales

6,283

6,709

12,992

7,353 (176.7%)

12,530 (103.7%)

Ordinary
income

1,455

1,584

3,039

2,135 (142.3%)

2,506 (121.3%)

23.1%

23.6%

23.4%

29.0% (-5.6pt)

20.0% (+3.4pt)

690

904

1,594

1,266 (125.8%)

1,304 (122.2%)**

Ordinary profit
marginNet income
Net income pershare (yen)4,557.22

5,898.78 10,456.00

10,182.23 (102.7%) 8,516.51 (122.8%)(Note) The number of shares outstanding before the stock split is used.

* For reference
NonNonconsolidated

Net sales

12,981

7,172 (181.0%)

12,530Ordinary
income3,145

2,205 (142.6%)

2,631 (119.5%)(103.6%)

 Earnings expanded in the first half, reflecting strong the performance and the progress of integration.
 The full-year forecasts were revised upwards in light of a revision for the first half.

14

Assumptions for (Non-Consolidated)
Forecasts for Second Half
External
environment- The Japanese economy will remainfavorable in the second half.
-Japanese companies will expand
overseas operations.

Operations of theCompany

Trends of quarterly sales in the past

Q1

Q2

Q3

Q4

A peak comes in March.

- Promote online research, especially QPR, in a favorable economy.
- Maintain the unit price (about ¥0.8m) by promoting orders for projects with high unit
prices.
- Increase global research and qualitative research in response to the needs of clients.
- Focus on improving productivity following the completion of the management
integration.
 Demand, especially demand from general consumer goods manufacturers, is solid.
 Sales are expected to rise 10% year on year.
15Change in Cost Structure (Non-Consolidated) The cost structure has changed in association with an increase in the number of
employees and the expansion of the area of offices through the integration.
 Income increased, reflecting a rise in net sales and a reduction in expenses.
Net sales

Net sales

Net sales

7,171 million yen

12,530 million yen

12,981 million yen

Amortization of goodwill: 40 million yen
Rents, system operation costs, and transportation
expenses, among other expenses

Year ended June 2010
(result)

Year ended June 2011
(initial projection)

Year ended June 2011(revised plan)

16Change in Balance Sheet
Liabilities
AssetsLiabilities¥13.9 bn

¥1.6 bn
Assets¥9.4 bn

Net assets¥7.8 bn

End of June 2010

¥2.9 bn

Cash and deposits¥5.4 bn

Net assets¥11.0 bn

Goodwill¥760 mEnd of December 2010

Invest in new businesses.
Cash and deposits rose to¥5.4 bn after integration.

Accelerate overseas operations.
Consider M&A.
17

StockStock repurchases
repurchases

Capital Policy (1)Noticeber 12)
Novem
Notice on
on determination
determination ofof stockstock repurchases
repurchases (announced(announced on
on November
November12) Resolution for repurchases of 5,000 shares and ¥1 billion maximum

 Number and value of shares repurchased (trust purchase)
Number of shares

Total value of shares
repurchased

November

1,299¥197,873,700

December

898¥156,709,100

January(Note 1) 803¥160,084,500

Total(Note 2) 3,000¥514,667,300(Note 1) Converted to a number of shares before thestock split. The actual number of shares is 160,600.

(Note 2) Converted to a number of shares before
the stock split) Ceased stock repurchases at the end of January, given changes in the management
environment.
 The total number of shares of treasury stock is 9,026 shares. (as of January 31;
converted to a number of shares before the stock split)

18

StockStock split
split

Capital Policy (2) Liquidity improved significantly from November, following the announcement of the stock split.
 To improve liquidity further, the Company will seek to expand foreign investors as well as domestic
investors.

VolumeVolume ofof shares
sharestradedtraded perper dayday(Shares)

The stock split, theadoption of a share unit
system, and stock
repurchases announced
on November 12June 2010

September 2010

*Converted to numbers of shares before
the stock split.
**

December 201019

Dividend
Dividend policy
policyCapital Policy (3) Will maintain a consolidated payout ratio of 30% or more.
 The annual dividend for the 12th term will be ¥3,800. The payout ratio will be 44.6%*.
Determined that the interim dividend will be ¥2,000 (including a commemorative dividend of ¥500).
*33.5% if commemorative dividends are excluded Will invest in the expansion and growth of operations, while retaining operating funds.

Dividends and expected dividend for current term
(Yen)

4000
3000
2000
1000

Year-end dividendInterim dividend
Payout ratio
31.4%

50.0%

30.8%

20.4%

1600

1400

1600

1200

1200

44.4%
1800

1500

32.4%

44.6%

40.0%

1800

30.0%

1800

1500

1500
＋
500

0

20.0%
10.0%
0.0%

7th term

8th term

9th term

10th term

11th term

12th term

20

３．Future Development of Operations

New and Overseas Operations

Established a new company jointly with Hakuhodo DY Holdings and Tokyu
Agency, seeking to make QPR, consumer purchasing data, a de-facto standard.

MACROMILL plans to establish the subsidiary in March 2011 and to hold 90% of the stock.
MACROMILL will be the second overseas Group company, following a Group company inSouth Korea.

22

Business Domain of Macromill
Prioritybusiness

IT X MarketingNewbusiness

Marketing research
CRMbusiness

OverseasbusinessDBbusiness

NEW!

New businessdomainPartnershipwith Y!

Online researchNEW!

Sampling
Promotion
Pay-for-performancesolutions Expanding operations in the domain relating to IT and marketing,especially in online research23

Establishment of a New QPR Company
 Established M-CUBE AND ASSOCIATES as a joint venture involving three companies.
 Will continue to offer investments strategically; the number of investors will increase.
Final agreement: McCann Worldgroup Holdings, Video Research
Basic agreement: Toppan Printing

Shareholder
breakdown

Business model
Corporate users(as of February 14, 2011)

Using data for marketing
activities for users
themselves and clients,
including manufacturers,
distribution companies, andagencies*There will be
additions.

81.875%Service vendor
Developing uniquemarketing services, using
the data

15%

Providing data on
consumers’ purchasing
habits3.125%QPR (Quick Purchase Report)™

Providing marketing
services

・・・

Product purchasing research service for analyzing consumers’ daily purchasing trends in which QPR
panelists are given portable barcode scanners to collect data on their purchasing habits. The service
also enables research into consumer attitudes (reasons for purchasing products, etc.)24

MACROMILL Korea
Situation
Situation inin first
first half
half ofof yearyear
endingending June
June 20112011

Net sales (six months)¥230m(Full-year target: ¥470m)

Number of employees

25

Number of panelists

250,000
An equity method affiliate (38.5%)

Performance improved steadily, and the company moved into theblack in October 2010.
Direction
Direction
 The
The local
local corporation
corporation moved
moved into
into thethe blackblack andand will
will continue
continue toto makemake profits.
profits.

 The
The company
company will
will bolster
bolster alliances
alliances with
with leading
leading local
local companies.
companies.
25

Establishment of Joint Venture in China (1)Noticen Januaryoon
Notice onon establishment
establishment ofof aa joint
joint venture
venture in
in China
China (announced(announced on
January 14,
14, 2011)
2011)

1. Business name
2. Location
3. Name and title of representative
4. Business5. Capital
6. Established
7. Commencement of operations
8. Investor and holding

MACROMILL China, INC.
Huangpu District, Shanghai, China
Fukuha Yasunori, Chairman
Market research¥150 million
March 2011 (plan)
July 2011 (plan)
Macromill, INC.: 90%
Bosha International Trade (Shanghai) Co., Ltd.: 10% Decided
Decided to
to makemake inroads
inroads inin China,
China, following
following thethe establishment
establishment ofof an
an affiliate
affiliateinin SouthSouth Korea,
Korea, expecting
expecting more
more JapaneseJapanese companies
companies entering
entering thethe Chinese
Chinesemarketmarket andand thethe expansion
expansion ofof thethe researchresearch market
market inin China.
China.
 The
The entire
entire expertise
expertise andand systemsystem (AIRs)(AIRs) ofof Macromill
Macromill will
will bebe transferred.
transferred.
26

Establishment of Joint Venture in China (2) The sales target for the first fiscal year has been set to ¥0.2bn.
 Aiming to spread high-quality online research

Macromill (Japan)

MACROMILL China
Systems

Panelists
A network of panelists will beestablished in China.

Macromill will provide systems.

Employees- Several staff members,
including a representative,
will be dispatched from Japan.
- Local employees will be hired.

Clients
Targeting Japanesecompanies operating in
China first

Establishing a
network of theMacromill Group

MACROMILL Korea

Investment partner:
Bosha International Trade (Shanghai) Co., Ltd.
27

Entering Overseas Markets
Million US dollars

Markets in Asia (2008)
Size ofmarketingresearchmarketGrowthrate (%)

Share in
onlineresearch
(%)

Japan

1,643

3.9%

33%

China

793

11.3%

11%

Australia

727

7.6%

32%

South Korea

425

16.6%

12%

India

198

14.4%

0%

8,866

1.6%

21%

Overseas operation
model
NEW!

A hands-on approach in both South Korea
and in China, where companies aremanaged jointly with local partners

For reference

Dispatching staff members to China so thatthe company can make the most of theexpertise of Macromill

Future initiatives (plan)
Overseas operations through licensing
M&A overseas

USA

Please refer to 2009 (latest)
ESOMAR report

Economic growth of Asian countries
Overseas operations of Japanese companies

Opportunities to expand the online researchmarket28

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

29

Reference Material

30

(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.

31

(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
940,000
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 more32

(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）

33

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

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

12,981100％

13,700100％

15,100100％

Ordinary income

3,145

21％

3,100

23％

3,700

25％

Net income

1,661

11％

1,900

14％

2,200

15％

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

12,992100％

14,100100％

15,700100％

Ordinary income

3,039

20％

3,200

23％

3,900

25％

Net income

1,594

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.)

52.28

62.50

78.00

33.7 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%.
34

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
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