Financial Results for the 1st Quarter
Year ending June 30, 2014 (FY15)First Section, Tokyo
Stock Exchange (3730)

Financial Results

Achievements in Individual Domains
Details of Financial Results
Reference
1

Overview of 1st Quarter Results for the FY Ending June 2014
 Sales soared, mainly in existing domestic businesses, but as planned, earnings
fell after investment in new businesses at the beginning of the year.

(Million yen)

(Percentachieved)

Consolidated

FY2013 1Q

4,298

3,978

108.1%

19,100(22.5%)

Ordinary income

749

881

85.1%

3,000

(25.0%)

Ordinary income
margin

17.4%

22.1%

-4.7 pt

-

-

390

648

60.2%

1,700

(23.0%)

3,867

3,607

107.2%

Ordinary income

784

909

86.2%

Ordinary income
margin

20.3%

25.2%

-4.9 pt

462

544

84.9%

Net sales

Net income

YoY

Full-year
forecast

FY2014 1Q(Reference)

Non-Consolidated

Net sales

Net income2Changes in Income and Cost Structure (Cumulative)
FY2014 1Q
Amount

FY2013 1Q%

Amount%• Upfront investment in new services• Loan-related fees and others

Net sales

3,867

100.0

3,607

100.0

Cost of
sales

2,056

53.2

1,838

50.9
(Million yen)909

Personnel
Panelists andoutsourcing

540

14.0

503

13.9

1,157
358

29.9

1,063

29.5

9.3

271

7.5

953

24.6

861

23.9

Personnel

529

13.7

493

13.7

Other

423

11.0

367

10.2

Ordinary
income

784

20.3

909

25.2

Net income

462

12.0

544

15.1

(Consolidated
ordinary income)

749

Other

SG&A

−125

784
−35

749

FY2013
1Q

FY2014
1Q

NonConsolidated
Ordinary
IncomeNonConsolidated
Ordinary
IncomeConsolidated
Ordinary
Income

25.2%

20.3%

17.4%

FY2014
1Q

881
3

Change in Sales Breakdown by Category (Non-Consolidated)
 Sales from food & beverage manufacturers and other general companies
continued to expand.
Brisk orders were received from research companies, consulting firms andadvertising agencies.
Advertising agencies
Food & beverages
Services+ ¥70M (up 16.5% year on year)+ ¥50M (up 9.1% year on year)+ ¥40M (up 9.3% year on year)(in descending order of sales)(Million yen)
Figures in parentheses show
percentages of total sales.

3,867
3,607

72
61

(1.9%)(1.7%)

Government agencies,
associations, schools, etc.

2,495
(69.2%)

2,632(68.1%)

General companies

Research companies,
consulting firms

597

635

(16.6%)(16.4%)

Advertising agencies

452

526

(12.5%)FY2013 1Q(Three months)(13.6%)FY2014 1Q(Three months)
4Breakdown of Changes by Service (Non-Consolidated)
 Sales were up in most services. Among others, the following services surged.
Qualitative Research
Global Research+21.9% year on year
+16.2% year on year

(in descending order of percentage)(Million yen)

Service
Automatic research

FY2014 1Q%

FY2013 1Q

%

YoY

2,019

52.2

1,874

52.0

107.7%

Tabulation

257

6.6

224

6.2

114.7%

Analysis

405

10.5

351

9.8

115.2%

Qualitative research

423

11.0

347

9.6

121.9%

Customized research

268

6.9

329

9.1

81.3%

Global research

166

4.3

143

4.0

116.2%

QPR

242

6.3

235

6.5

103.1%

Other services

85

2.2

101

2.8

84.3%

3,867

100.0

3,607

100.0

107.2%Total* Other Services include the mobile research service.

5

Results for Overseas Subsidiaries(Million yen)

FY2014 1Q
MACROMILL EMBRAIN(South Korea)
MACROMILL China(China)

FY2013 1Q

YoY

Net sales

354

315

112.5%

Ordinary income

45

21

212.4%Net sales

4444100.5%

Ordinary income

-7

-1

–

MACROMILL EMBRAIN (South Korea)

 Net sales and ordinary income both surged year on year to make a continued contribution
to consolidated earnings. This subsidiary will continue to bolster its sales team and carryout the cost structural reforms to achieve further growth in the Korean market.
MACROMILL China (China)

 Since the territorial issue, customer interest in large-scale research with a view to newinvestment in China has declined. Accordingly, net sales tumbled. Research in Taiwan andHong Kong increased but failed to make up for the decline.
 The loss swelled after an increase in qualitative research and soaring rent prices.
6

Financial Results

Achievements in Individual Domains
Details of Financial Results
Reference
7

Business Domain

Low price services on smart
devices in a long-tail market in the marketing businessResearch
Existing researchbusiness+

PromotionMedia

misecolle,
An app that promotes
stores and restaurants

Curation magazine
Antenna(Do-It-Yourself Survey ASP)+
(POS Data Service)+

Domestic M&A
8

Research: Questant A do-it-yourself survey ASP, Questant, was released on October 31.
With its low cost and superior usability, Questant aims to cultivate a long tailmarket.

Feature 1
A freemium model

Feature 2
Assistance functions

Feature 3
Intuitive design

An unlimited number ofsurveys with ten questions up
to 100 samples free-of-change

Simply selecting from
templates allows for easy
survey creation

Customizable presentations
based on excellent site
design9

Research: POS Data Service
 A POS data service for projection, MACROMILL MARKET INDEX, is set to belaunched in April 2014.

Feature 1
Covering a record number of storesin JapanA panel with a leading scale inJapan covering 1,200 retailers
in GMS and supermarket
categories

Feature 2
Links with outside data

Feature 3
Unparalleled cost advantage

Analysis linked with POS dataon fresh food, temperatureand other secondary data

Offered at a far lower pricethan competitors10Research: Domestic M&A A basic agreement has been signed with a view to acquire 51.0% of the shares ofDentsu Marketing Insight Inc. Exclusive negotiations will now commence.
This decision will solidify our ability to provide services as a domestic generalmarket research company.

Corporate Profile of Dentsu Marketing Insight

Results in thelatest fiscal year

(Million yen)Company Name

Dentsu Marketing Insight Inc.

For year ended

March 2013

Capital

320 million yen

Net assets

3,240

Date of Establishment

November 1967

Total assets

4,446

No. of Employees

167 (as of June 2013)

Ownership

Dentsu Inc. (100.0%)

Net sales

5,411

President & CEO

Makoto Arai

Operating income

288

Business

Planning and support services related to marketing
Planning, implementation and analysis ofmarketing research services
Data collection, offering and analysis services
Database planning, design, operation, support andother services
Other data processing services

Ordinary income

302

Net income

254

11

Promotion: misecolle With a focus on both users and registered stores, the app has achieved acumulative total of 126,000 downloads and acquired more than 7,800
registered stores.
New versions, including iOS editions, to be
successively released
A new-look version optimized for smartphones will be released.

Current version

New version

Enriching content for users
Pushing stores featured on TV and thosewith considerable word-of-mouth
momentum as recommended stores(The image below is for presentation purposes only.)

12Media: Antenna (1) The number of users is steadily rising. Surpassing the annual targetof one million before the end of year.
Promotional efforts will be stepped up to attract more users.
1,600,000

As of the end of October 2013:

1,400,000

1,342,000 users

1,200,000
1,000,000
800,000

Ranked first in Sep. 2013 in theoverall category among freeapps in the AppStore

600,000
400,000
200,000
013Media: Antenna (2) Advertising products for national clients have been developed.
As the number of users increase, inquiries from clients rise rapidly.
Premium Cover (from 1 million yen)

Clip Book Package (from 1 million yen)An advertising product for exclusively displaying
an ad on the cover page that is continuously
displayed at the start-up of the app for 24 hours

A stock-type advertising product that compiles
article ads posted into a book to dramaticallyincrease the effect of exposure

14Plan for Consolidated Results for Year Ending June 2014
 MACROMILL has decided to invest in new businesses for medium- to long-term
growth based on steady growth and cash generation in the existing business.

(Million yen)

FY2014
Medium-term
management plan(released inAugust 2011)

FY2013

Targets afterrevision

YoY

Actual result

Consolidated
net sales

20,00019,100111.6%

17,120Consolidated
ordinary income

4,700

3,000

75.9%

3,951

–

1,700

67.8%

2,508

Consolidated
net income

15

Financial Results

Achievements in Individual Domains
Details of Financial Results
Reference16

Unit Price and Number of Active Client Companies,
Active Servers, and VIP Clients (Non-Consolidated)
FY2012
Indicator

Unit

77.2

77.9

81.6

84.5

83.4

83.3

54.9

49.7

50.8

52.6

56.5

51.3

53.5

83.3

87.5

80.7

81.7

85.2

88.2

87.6

87.7

1,371

1,711

1,924

996

1,465

1,816

2,028

1,024

3,988

5,382

6,327

2,672

4,290

5,786

6,836

2,778

(*3) Companies

256

251

249

281

265

280

272

284

Number of VIP clients withaverage quarterly sales of Companies(*4)¥10m or more

(63)

(67)

(64)

(67)

(74)

(78)

(75)

(76)

research only)

83.7

¥ ten
thousand

52.0

¥ ten
thousand(Full-year)

1Q

(*1)

Number of active client
Companies(*2)
companies (annual)
Number of active servers
Servers(*2)(annual)Number of VIP clients(Full-year)(*1)

Quarterly average unit
price per order (forreference)

79.7

4Q

3Q

Quarterly average unit
price per order (automatic¥ ten
thousand

4Q

2Q

(*1)

3Q

FY2014

1Q

Quarterly average unit
price per order

2Q

FY2013*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 researchwere not included in the calculation of the quarterly average unit price per order (for reference). To calculate realistic unit prices, going forward, overall unit
prices will be calculated using a method that counts qualitative research as one order, as shown in the top row above.
*2 Year-to-date total for each fiscal year; number of companies/servers that posted sales at least once between the beginning of the fiscal year and the end of
the quarter.
*3 Year-to-date total for each fiscal year; priority clients with annual sales of ¥10 million or more are defined as VIP clients.
*4 Year-to-date total for each fiscal year

17

Status of Personnel
FY2012
Indicator

Number of employees(consolidated)*
Number of employees(non-consolidated)*

Unit

FY2013
4Q(Full-year)

1Q

2Q

FY20144Q(Full-year)

2Q

3Q

3Q

1Q

People

594

735

768

788

790

803

836

855

People

550

560

582

567

579

603

629

635

As of September 30, 2013

* Number of employees includes contract employees and those on leave.

 Breakdown of personnel by employment category
Sales
160 (including 16 assistants)

Operations
126

Researchers
155* Excludes executive officers, higher level management, and employees on leave.
* As of October 1, 2013

Others include those inbusiness planning,business administration,
panelists support andregular staff, etc.

 Number of employees at consolidated subsidiaries 207  220
M-CUBE:

13  13

Macromil China:

22  25

MACROMILL EMBRAIN:

156  163

M-PROMO:

66

misecolle:

10  1318

Status of Panelists
FY2012
Indicator
MACROMILL
Panelists

Unit
Ten
thousandpeople

2Q

3Q

107.1

108.6

FY2013
4Q(Full-year)

1Q

2Q

3Q

109.5

110.7

112.2

113.6

FY20144Q(Full-year)

114.6

1Q

115.1

As of October 1, 2013

PC Panelists

Mobile Panelists

MACROMILL
Panelists

Yahoo!
Research Panelists

Cooperating mobile
monitors

1.15M people

1.46M people

0.3M people(including smartphone
panelists)(Mobile here refers to feature phones only)

19Changes in Balance Sheets (Consolidated)
 Considering investments including M&A for new business and overseas
business expansion
 Actively promoting business expansion through establishing a new pillar of
business using cash generated in existing business domains

Total assets¥20.1bn

Cash anddeposits¥8.6bnTotal liabilities¥4.8bnCB¥1.6bnNet assets¥15.3bn

End of June 2013

Total liabilities¥4.6bnTotal assets¥20.0bn

Cash anddeposits¥7.0bnCB¥1.6bnNet assets¥15.4bn

End of September 201320

Financial Results

Achievements in Individual Domains
Details of Financial Results
Reference21Company History & Business Results(Million yen)February 2012
Major investment in South
Korea’s EMBRAIN (now
MACROMILLEMBRAIN)2010年8月

April 2012
Dentsu MACROMILL
established

ヤフーバリューインサイト株式
会社のAugust 2010
マーケティングリサー業を吸収分割により承継
Successor
to marketing
research business of Yahoo
Value Insight, Inc. byabsorption-type demerger

April 2005
January 2004
Listed on MOTHERS
market of theTokyo Stock Exchange

17,12014,22912,210Transferred to 1st Sectionof Tokyo Stock Exchange

January 2000
Company established

7,755

7,413

7,353

6,392

August 2000
AIRs completed,
operations start-up

5,179
3,951

3,613
2,077

106

-87

FY2001(NonConsolidated)

379

1,259

851
29

201

FY2002(NonConsolidated)

FY2003(NonConsolidated)

1,653

1,984

2,157

FY2007(Consolidated)

FY2008(Consolidated)

1,753

2,135

2,522

2,975

614
FY2004(NonConsolidated)

FY2005(NonConsolidated)

FY2006(Consolidated)

FY2009(Consolidated)

FY2010(Consolidated)

FY2011(Consolidated)

FY2012(Consolidated)

FY2013(Consolidated)

22Service Flow of the Online Research
Client

MACROMILL(1) Request research

People surveyed(4) Send questionnaires
MACROMILL
panel members

Automatic Internet Research System

Domestic
corporations
Overseas
corporations- Computer panelists- Mobile panelists- Cell phone panelists(5) View tabulation of
responses in real time.

- Advertising agencies- Manufacturers- Consulting- Service companies- IT companies- Mass media- Public sector…etc.

(2) Prepare research forms(3) Select people to be
surveyed(5) Respond toquestionnaires

Outside panel
members(5) Perform real-time
tabulation- Doctor panelists(business tie-up
panelists)(6) Generate data for delivery(7) Deliver research
results(5) Offer reward points
to panelists (real time)- Overseas researchpanelists- Member lists ofclients…etc.

* For Macromill panelists* This is a representative example of the service flow of the online research using AIRs. Depending on the subject of the research, AIRs may not be
used or the flow may be subject to change.
* If a research plan is required, this happens before step (1) in the flow chart. If an analysis of research results is required, this happens after step (7)in the flow chart.

23

Share Information
As of June 30, 2013

Total number ofauthorized shares
Total number ofissued shares
Number of shareholders

Other
corporations
32.9%

83,712,000
31,579,675
13,422
100

Round lot
Financial
products
Treasury traders
stock
2.2%
0.2%

Overseas
corporations, etc.
16.5%

Number ofshares held

Ownership(%)

Yahoo Japan Corporation

7,071,100

22.39

Vanillasky Corporation

2,453,000

7.77Japan Trustee Services Bank, Ltd.
(Trust account)

1,720,900

5.45

Tetsuya Sugimoto

942,500

2.98

Goldman Sachs & Co. Regular Account731,900

2.32

Yasunori Fukuha

609,600

1.93

Satoshi Shibata

572,000

1.81

The Master Trust Bank of Japan, Ltd.
(Trust account)

551,800

1.75

Northern Trust Company (AVFC) Subaccount American Clients

544,300

1.72

The Nomura Trust and Banking Co., Ltd.
(Investment trust account)

534,900

1.69

Major shareholders

Individuals,
others34.6%

Financial
institutions
13.7%

Note 1. MACROMILL holds 51,037 treasury stock shares.
Note 2. The ownership ratio is calculated based on the number of shares issued.
Note 3. Vanillasky Corporation listed above is represented by director Tetsuya
Sugimoto.
Note 4. MACROMILL conducted a two-for-one stock split, effective on July 1, 2013.
The figures in the table above are numbers of shares before the stock split.

24

Status of Capital/Business Alliances, Group Companies

Consolidated subsidiaries
Domestic

Overseas

Equity-method affiliates
NEW

Dentsu
MACROMILL 40.0% stake

Construction of QPR panels
Collection of consumer purchase data
Shareholders: HAKUHODO DYHOLDINGS INCORPORATED. etc.

Integration of EMBRAIN and
MACROMILL Korea (August 2012) 25.6% stake

Capital/business alliances
Shanghai United-Cities Industry
Co., Ltd.

Marketing support business using theInternet
Sales launched in March 2012

Research business in China
Sales launched in September 2011

 6.9% stake

Business alliances

misecolle, INC.
Planning and operation of misecolle, anapplication providing a promotional
service for restaurants and stores

Dentsu marketing insight25

Cautionary Statement

MACROMILL does not guarantee the accuracy of the information
contained in this presentation, which reflects judgments made by
MACROMILL management based on currently available information.
Given that the business environment may vary significantly in the
future due to a number of factors, please be aware that theperformance and results in this presentation may differ from
MACROMILL’s actual performance and results.

For inquiries regarding one information contained in this presentation:
IR Group, Corporate Strategy Unit, MACROMILL Inc.
Tel: 03-6716-0706 Fax: 03-6716-0701
E-mail: ir@macromill.com

26