2012-2014
Macromill Inc.
Medium-Term Management Plan
To be released on
August 3, 2011

Contents
Mission Statement… P3

Awareness of Environment and Management Strategy… P4

Positioning the 3-Year Plan

… P5

Performance Targets… P6

Management Indicators… P7

Business Plan (1) Domestic Marketing Research business… P8-10

Business Plan (2) Global Development Focused on Asia

… P11

Business Plan (3) Create New Business (Interest Graph Domain) … P12
FY2012-2014 Financial Strategy and Shareholder Return… P13(Reference) Further Growth Image

… P14
2

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Mission Statement

Macromill’s Mission Statement

Offer services that truly satisfy
and impress our customers.
Create a field where our employees canchallenge the extent of their capability.
Pursue profit for sustainable growth.

3
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Awareness of Environment and Management Strategy
Awareness of Environment
Economicdevelopment in
Asian countries

Japanese
corporations
expanding overseas

Diversification of
consumer tastes

Spread of new
digital devices

 Overseas research Smartphone utilization etc.

Recognized areas for business opportunities

Management Strategy Based on Awareness of Environment
Steady growth in domestic marketing researchbusiness (Web + peripheral domains)
Global expansion of web research
focused on Asia

IT xMarketingMarketingresearch

Establish pioneering marketing
platforms that utilize smartphones
and other new devices to captureindividual interests

Web
research
Overseas development

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4

Positioning of the 3-Year Plan

Build foundation for lasting growthby adapting to changes in the environment Put the domestic marketing research business on more stableground and secure stable revenue
 Secure consolidated ordinary profit levels above 20% by
allocating a portion of revenue earned from the domestic
marketing research business to M&A and up-front investment in
new businesses and overseas businesses

5
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Performance Targets
Upfront investment period looking ahead to future business growth
Depicting steady profit growth curve while positioning consolidated ordinary
profit margin of 20% as bottom line (unit: million yen)Management Targets

FY2011FY2012FY2013Compared to
FY2011FY2014

Consolidated net sales

12,20014,20015,50020,000+64％

Ordinary income

2,500

2,840

3,600

4,700

+88％

Ordinary profit margin

20%

20%

23%

24%

+4pt

FY2011

Breakdownof net sales(Note)FY2013Compared to
FY2011FY2014

Domestic marketing
research domains *1

12,20014,00015,10016,00030％30Overseas domain *2

-

200

400

1,000

-

New business *3

-

-

-

-

-

M&A
(domestic, overseas)

-

-

-

3,000

-

References

Investment
plan

FY2012FY2011FY2012FY2013

FY2014

Total investment
amountSystems investment *4

-

500

300

200

1,000

New business
investment

-

300

300

200

800

M&A and otherinvestment

-

500

1,500

3,000

5,000

*1 Including web research + peripheral business*2 Except our equity method affiliate Macromill Korea
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*3 Net sales contributions by new businesses not figured in.
*4 Includes multiple device support and multilingual support for AIRs with a view to overseas expansion

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6

Management Indicators

 Sales growth rate

Increase 64% in 3 years

 Profit growth rate

Increase 86% in 3 years

In addition to the above, we aim to raise the level ofoverseas sales ratio by slightly over 10% in three years.
* Except our equity method affiliate in Korea.
* Potential to fluctuate due to progress in overseas multinational expansion

 Trends in consolidated ordinary profit(million yen)

 Trends in consolidated net sales(million yen)

Year-on-year

12,200116%

14,200129%109%

15,500114%
127%

Year-on-year

20,000 Trends in overseas
sales ratio (%)

2,500

2,840

3,600

131%

4,700

10~
0

2011

2012

2013

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2014

2011

2012

2013

2014

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2011

2014

7

3. Business Plan (1) Domestic Marketing Research business

As the leading company, achieve both added value and efficiency
Domestic Online Research Market Size
112.1% 112.2%

109.1%

114.0%
100.9% 100.9% 100.9%

97.5%

321

2006

360

2007

404

394

2008

2009

495

490

430

499

2010

2011

2012

2013

2014

170.3%

Unit: 100 million yen
120.2% 117.2%
107.8% 104.4%

64
21

69
32

72
4 4

45

54

61

63

63

7th

8th
term

9th
term

10th
term

11th
term

Domestic Marketing Research Business Policy
To evolve into a Marketing Partner that offers both productivity
and added value to resolve clients’ marketing issues as the firstpriority.

114.6% 108.0% 105.8%

140

term

504

Conventional surveys
Panel research
Web researchYoY comparison
for whole company

Macromill Standalone Net Sales Plan

54

- Due to web research, the switch from conventional surveys
will continue in future, and the ad-hoc share is expected to
grow from 40.5% for 2010 to levels similar to U.S. at 42%.
- Customer awareness of ROI for research is increasing, andthere is strong demand for specialist expertise as a researchcompany in addition to low price and speed.

Our estimate

45

Business Environment(Estimates as of 2010)

Unit: 100 million yen

122
10
7

13
10

105

116

151
15
13

123

Policies by Division

160
16
17

- Marketing Research Division
As the leading company, to improve strength of proposals with added value
through great efficiency and systems reinforcement

127- Database Division
Stable revenue and ad hoc synergy based on research platform strategies- New Business Development Division
12th
term

13th
term

14th
term

15th
term

Develop promotional services aimed at advertising and sales promotion
markets

Planned
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8Marketing Research Division

Points to reinforce in order to respond toincreasingly sophisticated research needs
Evolve organization by industry
Systematic reinforcement of Research
Planners who are Macromill’s proprietary
professionals with the research skills andability to make proposals.

Ability to resolve
research issues

Internal knowledge
sharing site
Raise standard of research skills byinternal knowledge sharing.

Buying behavior simulator
Reproduce consumer purchase process based on research results and buying
behavior data, develop world’s first conjoint tool capable of simulating priceresilience and demand forecasting.
* Introduce ACBC from Sawtooth Software (US).

Product
development
capability
Efficiency

Smartphone support
Improve response rates by facilitating
informal response while on the moveand to involve the young.

Develop high quality research
results
Not uniform, but further improve research
quality with a proprietary logic that reduces
respondents who spent little time in proportion
to the number of questions for each respondent.

Improve operating efficiency of
conventional research

Restructure web research
operations

Improve profitability through proactive
use of own company facilities andbusiness improvement

Raise productivity to the next level
while maintaining customer satisfaction.

9
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Database Division and New Services Development Division

QPR

Database Division- Largest data panel in Japan with
30,000 panel members nationwide- Cheaper fee structure than other companies
So far, we have increased the number of client companies focused on thefood industry, but by building up sales to a broader domain, including
advertising firms, we aim for a de facto standard for QPR data and to
make it profitable by the 14th term

User
User corporation
Manufacturers,
distributors, agencies

Vendor

Database Division
Improve added value by adding new functions- Sophisticated analysis service by analysts

Business Modelbdb

Utilize for own or client
marketing activities

Capable of low-cost and simple segment
analysis of consumer reality, bdb is further
rounded out with easy-to-use functions suchas the Media Timeline to show frequency ofcontact per brand in a time series.

Media Timeline

Strengthen marketing for Chinese version of bdb to
capture rapidly growing markets
Conduct questionnaires on personal effects, taste,
values in 100 genres targeted at 10,000 respondents in
Beijing, Shanghai, Guangzhou. A lifestyle database formultifaceted analysis of consumer reality in China.

Service vendor
Develop proprietary
marketing service utilizing data

Provide marketing services

Provide consumer buying behavior data

Joint investors in M-CUBE and Associates
Macromill, Hakuhodo DY Holdings, Tokyu Agency, Toppan
Printing, McCann World Group Holdings, Nikkei Digital Media,
Nikkei Research and Video Research(July 1, 2011 Investment ratio and Alphabetical order)

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New Business
Development Division
Develop services in research domains peripheral to domains
with high demand in order to resolve clients’ marketing issues.
- Sampling promotion- Search-related solutions- Develop new services in CRM domain etc.

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10

Business Plan (2) Global Operations Focused on Asia

Build research platform in Asian countries andaim for large-scale expansion of overseas sales ratio
Overseas Development: Vision

Business Environment- Japanese companies are continuing to expand overseas as aresult of economic growth in Asian countries, and the demand for
global research is increasing.
- Continuous growth expected for marketing research needs in
Asian countries in the future. Also, with the spread of the Internet,
research methods are forecast to shift to the web.

AIRs licensing
Investment: 38.5%

M&A, investment
or partner contracts
Asia
Local companies

Investment: 90.0%

Asia
Local companies
Asia
Local companies

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Global Expansion Policy
With the efficiency and profit improvement through alignment ofAIRs at the core, expand through M&A and partner contracts toestablish brand for Macromill as the representative of researchcompanies in Asia. Strive to be a world s top 10 researchcompany in the future.

Priority Policies- Promote research business in China and South Korea- Set up Asia HQ, to expand to each country centered on HQ(M&A and partner contracts etc.)- Develop global AIRs → Parallel promotion of licensing- Non-contiguous growth through proactive M&A, not limited to
Asia

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11

Business Plan (3) R&D of new business (Interest Graph Domain)
Development of real-time communicationreflecting own personality and interests
 Create new methods of accessing services, information,individuals and things of interest
M-WARP will improve technology capturing consumer insights and develop
communication methods in SNS domain based on interest graph’s approach
Differences inapproach methods

Internet
Search engines
Input
searchterms

Display
search results
based onnumber oflinks, etc.

Approach through own words
Searchagain fromsearchresults

Deliberate

Existing SNS domain

Exchange informationin the community

WebsiteIndividual

Write diary andprofileExchange information
with friends andacquaintances

Approach through belonging
to communities you likeand reading information
posted there

Links based on own personality and interests
reflected in real time

- Smartphone popularity will accelerate in the future taking us
to a time when people are always connected to networks. As
a result, it is technically possible for the device to understandchanges in tastes and environments of an individual.
- The interest graph solution is drawing attention in theInternet world, due to the time current search engines andSNS (social graph) take to access the information andpeople genuinely desired.
- There is no successful service or company in the interest
graph domain. Intense competition is expected, but since
there is high affinity with our technology for instantly
gathering consumer mindsets, developing competitive
services is possible.

New Business Policy
Position as future growth business and aim to create andexpand social value rather than near-term monetization

Deliberate

Connect by means of social graph

SNS Domain developed by Macromill

Business Environment

E.g. approach information
surmised from own personality,
current interests and situations
without inputting search words

Connect by means of interest graphNot deliberate- Develop applications and services accepted and perceived
as essential by consumers not only in Japan but globally, in
the interest graph domain connecting users throughpersonality and interests- Release multiple services with a sense of speed- Appropriate investment in necessary human resources andcapital for each development phase12
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FY2012-2014 Financial Strategy and Shareholder Return

Rapidly achieve a total market value of 50 billion yen
 B/S image

Total
liabilities
3.0 billion
Total
liabilities
2.7 billion

Total
assets13.9 billion

Total
assets21.5 billion

Net
assets18.5 billion

Net
assets11.2
billion2011/6

2014/6

 Dividend performance and dividend outlook
for current term
Year-end dividendInterim dividend
Payout ratio

1510

31.4% 30.8%
7

8

6

6

5

60.0%

49.4%

44.4% 32.4%
9
9
7.5

7.5

9
7.5
+
2.5

39.2%
11

50.0%
40.0%
30.0%

10

20.0%
10.0%

0

0.0%
2007/6

2008/6

2009/6

2010/6

2011/6

2012/6

Promote business
investment
 New business
800 million yen (3years)
 System investment
1 billion yen (3 years)

Strengthen investor
strategy

 Augment overseas
investor class witha view to global
expansion

 M&A investment
frame
5 billion yen (3 years)

 Maintain andimprove liquidity

Amplify shareholder
returnOther

 Maintainconsolidated
payout ratio of
30% or more Implement flexible
share buyback Lasting expansionof scale(Net sales, assets etc.)

 Maintain stableprofit levels(An ordinary profit ratioof 20% or more)* Dividend converted to amount after stock split on January 1, 2011.
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13

(Reference) Further Growth Vision

New business
Overseas business etc.*
Domestic marketing research business

Overseas businessdevelopment
Proactive M&A
Rapid progress for
new businessNet sales (100 million yen)

200
Secure stablerevenues and steady
growth for existing
business

10002008/6

2009/6

2010/6

2011/6

2012/6

2013/6

2014/6* Potential for ratios to change depending on M&A progress etc.
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2019/6
Vision14

We aspire to become Japan’
Japan’s largest andstrongest IT marketing company that isone--ofone
of--a-kind in the world.

15
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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
16
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