FY2015 Full Year
Financial Results Briefing
D.A.Consortium Inc.
May 12, 2016

Table of Contents

 Overview of Financial Results（Consolidated/Non-consolidated）

 Business Trends
 Key Measures-1©2016 D.A.Consortium All rights reservedOverview of Consolidated
Financial Results-2©2016 D.A.Consortium All rights reserved

Financial Highlights (Consolidated)（Millions of Yen）

FY2015-4Q
Quarterly

Accumulated（Jan. 2016 to Mar. 2016）（Apr. 2015 to Mar. 2016）

Y on YY on YSales

41,478134.0%

144,980

123.4%

Gross Profit

5,588

132.0%

20,555125.3%

Operating Income

1,294

389.1%

5,062

225.3%

Profit Attributable toOwners of Parent

338

x49.7

2,026

192.9%EBITDA

1,571

282.2%

5,993

194.1%

Operating Margin*

23.2%+15.3pt

24.6%+10.9pt

Dividend Forecast--¥12+¥4*Operating Margin＝Operating Income / Gross Profit-3©2016 D.A.Consortium All rights reserved

FY2015 Business Forecast and Results (Consolidated)（Millions of Yen）

FY2015（Apr. 2015 to Mar. 2016）
Forecasts

Results

143,500

144,980+1,480

Operating Income

4,400

5,062+662

Ordinary Income

4,400

4,974+574

Profit Attributable toOwners of Parent1,800

2,026+226

Net Income per Share¥37.07¥41.73+¥4.66

Sales

Differences-4©2016 D.A.Consortium All rights reservedQuarterly Sales（Consolidated）（Millions of Yen）

-5©2016 D.A.Consortium All rights reservedIncrease Factor of Sales (Year on Year)
irep（Millions of Yen）

DAC＋4,510

UNITED＋876△2,151Elimination ofinternaltransactions andothers

41,478＋7,28230,960＋10.51 Billions of Yen＋34.0％FY2014-4Q

FY2015-4Q-6©2016 D.A.Consortium All rights reservedQuarterly Gross Profit（Consolidated）（Millions of Yen）

-7©2016 D.A.Consortium All rights reservedResults by Domain (Consolidated)
FY2014-4Q Accumulated（Apr. 2014 to Mar. 2015）

99.8

142,866

98.5

121.8

105,63889.9

130,915

90.3

123.9

Media and DAS Domain

13,925

11.9

13,8979.6

99.8

Adjustment between Domains△2,312△2.0△1,946

△1.3

－212

0.2

2,114

1.5

x10.0

117,463100.0

144,980

100.0

123.4

%

Y on Y

Agent Domain

Investment Business
TOTAL

Gross Profit
Internet-related Business

117,251

Y on Y%Internet-related Business%（Apr. 2015 to Mar. 2016）

Sales

Sales

Sales

FY2015-4Q Accumulated(Millions of Yen)

Gross Profit(Millions of Yen)

(Millions of Yen)

Gross Profit%(Millions of Yen)

（％）

（％）

16,231

99.0

18,517

90.1

114.1

10,69765.2

13,145

64.0

122.9

Media and DAS Domain

5,716

34.9

5,569

27.1

97.4

Adjustment between Domains

△182

△1.1

△197

△1.0－

168
16,400

1.0
100.0

2,037

9.9

x12.1

20,555

100.0

125.3

Agent Domain

Investment Business
TOTAL-8©2016 D.A.Consortium All rights reserved

Sales to HDY Group and Others (Consolidated)

FY2014-4Q Accumulated（Apr. 2014 to Mar. 2015）

Sales（Millions of Yen）

Share（％）

FY2015-4Q Accumulated（Apr. 2015 to Mar. 2016）

Sales（Millions of Yen）

Share（％）

Y on Y（％）

Hakuhodo DY
Group55,47747.2

73,992

51.0

133.4

Others61,98652.8

70,987

49.0

114.5

TOTAL

117,463100.0

144,980

100.0

123.4

-9©2016 D.A.Consortium All rights reserved

Sales to HDY Group and Others (Consolidated)（％ / Millions of Yen）

-10©2016 D.A.Consortium All rights reservedQuarterly SG&A Expenses (Consolidated)（Millions of Yen）

Number of Employees* 1,986*Total number of directors, employees, temporary employees, etc.

2,175-11©2016 D.A.Consortium All rights reservedQuarterly Operating Income（Consolidated）（Millions of Yen）

-12©2016 D.A.Consortium All rights reservedQuarterly EBITDA（Consolidated）（Millions of Yen）

*EBITDA＝Operating Profit + Depreciation + Amortization of goodwill-13©2016 D.A.Consortium All rights reserved

Balance Sheets（Consolidated）
FY2014（As of Mar.31, 2015）

Amount（Millions of Yen）

Current Assets
Non-current Assets
Total Assets
Current Liabilities
Non-current Liabilities
Total Liabilities
Shareholders’ Equity
Non-controlling Interests
OthersTotal Net Assets
Total Liabilities and Net Assets

36,0497,848
43,897
20,345553
20,89913,467
7,584
1,946
22,99843,897FY2015（As of Mar.31, 2016）

Amount%（Millions of Yen）

82.1
17.9

100.0
46.3
1.3

47.6
30.7
17.3
4.4

52.4
100.0

43,765
10,48754,252Comparisons
（％）

%

80.7

121.4

19.3

133.6

100.0

123.6

27,562
1,252

50.8

135.5

2.3

226.2

28,814
14,388
8,507

53.1

137.9

26.5

106.8

15.7

112.2

2,541
25,43754,252

4.7

130.5

46.9

110.6

100.0

123.6

-14©2016 D.A.Consortium All rights reserved

Statements of Cash Flows（Consolidated）（Millions of Yen）

FY2015（Apr. 2015 to Mar. 201６）

Cash flows from operating activities

4,634

Cash flows from investing activities△3,551

Cash flows from financing activities

184

Effect of exchange rate change on cash andcash equivalents△47

Net increase (decrease) in cash and cash equivalents

1,220

Cash and cash equivalents at beginning of period

11,421

Cash and cash equivalents at end of period

12,642-15©2016 D.A.Consortium All rights reserved

FY2016 Business Forecast (Consolidated)（Millions of Yen）

FY2015（Apr. 2015 to Mar. 2016）

ResultsFY2016（Apr. 2016 to Mar. 2017）Forecasts

Y on Y

144,980

170,000

117.3%

Operating Income

5,062

5,100

100.7%

Ordinary Income

4,974

5,000

100.5%

Profit Attributable toOwners of Parent

2,026

2,100

103.6%Net Income per Share¥41.73¥43.24+¥1.51

Sales-16©2016 D.A.Consortium All rights reservedOverview of Non-consolidated
Financial Results-17©2016 D.A.Consortium All rights reserved

Financial Highlights (Non-consolidated)（Millions of Yen）

FY2016-4Q
QuarterlyAccumulated（Jan. 2016 to Mar. 2016）（Apr. 2015 to Mar. 2016）

Y on YY on YSales

26,250138.4%

88,326132.0%Gross Profit

2,241142.8%

7,694

139.9%

Operating Income

464

150.6%

1,600

179.4%Net Income

△25－

1,121

105.4%

Operating Margin*

20.7％+1.1pt20.8%+4.6pt*Operating Margin＝Operating Income / Gross Profit-18©2016 D.A.Consortium All rights reservedQuarterly Sales & Gross Profit（Non-consolidated）（Millions of Yen）

Sales

（Millions of Yen）

Gross Profit-19©2016 D.A.Consortium All rights reserved

Results by Service（Non-consolidated）
FY2014 Accumulated（Apr. 2014 to Mar. 2015）

SalesAmount（Millions of Yen）%

FY2015 Accumulated（Apr. 2015 to Mar. 2016）

Amount%（Millions of Yen）

Y on Y（％）

Media Service

64,071

95.8

85,611

96.9

133.6

Technology Service

2,448

3.7

2,109

2.4

86.2

Investment &Operation Service

377

0.6

605

0.7

160.4

66,897100.0

88,326

100.0

132.0

TOTAL

Gross Profit

Amount（Millions of Yen）

Amount%（Millions of Yen）%

Y on Y（％）

Media Service

4,152

75.5

6,195

80.5

149.2

Technology Service

1,020

18.5

1,010

13.1

98.9

Investment &Operation Service

327

6.0

488

6.4

149.4

5,501

100.0

7,694

100.0

139.9

TOTAL-20©2016 D.A.Consortium All rights reserved

Business Trends-21©2016 D.A.Consortium All rights reserved

Sales breakdown by Ad Format（Non-consolidated）

FY2014 Accumulated（Apr. 2014 to Mar. 2015）

Amount%46,476

Video Ad
Others

FY2015 Accumulated（Apr. 2015 to Mar. 2016）

Y on Y

Amount%72.5

63,079

73.7

135.7

4,252

6.6

9,924

11.6

233.4

42,22465.9

53,154

62.1

125.9

Search11,793

18.4

15,872

18.5

134.6

Affiliate / Reward

4,898

7.6

5,156

6.0

105.3

903

1.4

1,503

1.8

166.5

64,071

100.0

85,611

100.0

133.6

（Millions of Yen）

Display

OthersTOTAL（Millions of Yen）（％）

-22©2016 D.A.Consortium All rights reservedQuarterly Sales by Ad Format（Non-consolidated/Media Service）（Millions of Yen）

-23©2016 D.A.Consortium All rights reservedQuarterly Sales by Client Industry（Non-consolidated/Media Service）-24©2016 D.A.Consortium All rights reservedQuarterly Trend of Top100 Advertisers（Non-consolidated/Media Service）
 Quarterly Sales to Top100 Advertisers（Millionsof Yen）

 Number of Our Clientsin Top100 Advertisers（Companies）*Top100Advertisers : By Nikkei Advertising Research Institute「AD SPENDING OF LEADING JAPANESE CORPORATIONS」-25©2016 D.A.Consortium All rights reservedQuarterly Sales of Smart Device Ads（Consolidated）（Millions of Yen）

-26©2016 D.A.Consortium All rights reservedQuarterly Sales of Programmatic Ads（Consolidated）（Millions of Yen）

-27©2016 D.A.Consortium All rights reserved

Summary of Consolidated Subsidiaries’ Results（Y on Y）

Sales
IREP Co., Ltd.

Agent

DAS

UNITED, Inc.

Agent

Media

HAKUHODO i-studio Inc.

DAS

Platform One Inc.

DASADPRO inc.

Agent

Operating
IncomeAgentTorchlight Inc.

Agent

DAS

D.A.Consortium Beijing CO., LTD.
DAC ASIA PTE. LTD.

Agent

Agent-28©2016 D.A.Consortium All rights reservedConsolidated/Non-consolidated Ratio
FY2013 Accumulated（4/2013～3/2014）

FY2014 Accumulated（4/2014～3/2015）

FY2015 Accumulated（4/2015～3/2016）

7.0

5.94

6.0
5.0
4.0

3.16

3.0
2.0

2.52
1.84

1.76

1.64

2.34

2.39
1.87

1.0
0.0

Sales

Operating Income

Ordinary Income-29©2016 D.A.Consortium All rights reservedKey Measures-30©2016 D.A.Consortium All rights reserved

Focus Area Premium Media Ad Sales
Quarterly Sales of Premium Media Ads（Non-consolidated）
FY2015

15,374 Mil.¥x2.1
FY2014

7,488 Mil.¥FY20133,589 Mil.¥-31©2016 D.A.Consortium All rights reserved

Focus Area Video Ad Sales
Quarterly Sales of Video Ads（Non-consolidated）
FY2015（Millions of Yen）

9,924 Mil.¥x2.3
FY2014

4,252 Mil.¥FY2013

1,735 Mil.¥-32©2016 D.A.Consortium All rights reserved

Appendix-33©2016 D.A.Consortium All rights reserved

Business Domains of DAC Group

Agent Domain
Dealing with Media andAd Agencies

DAS Domain

Media Domain

Providing technologies,

Providing services tocreative and solutions

consumers-34©2016 D.A.Consortium All rights reserved

Business Model of DAC GroupMedia Representative and Digital Solutions
Buying and selling ad space

Operation ServiceOutsourcing businessTechnology Service

R&D

Solution development/provisioning
Social media marketing

SEM services

Progress management

Trading Desk

RTBUsers

Ad Agencies

Advertisers

CreativeDevelopment

Online Publishers

Media Service

Ad Network
DMP
Global-35©2016 D.A.Consortium All rights reserved

DAC’s Core Business “Media Representative”

Advertisers

Ad Agency
Selling
Ad Spaces

Hakuhodo DY
Media Partners Inc.

Media Rep.

BuyingAd Spaces

OnlinePublishers
Yahoo! JAPANLINETOKYU AGENCY INC.
Nikkeisha, Inc.
I&S BBDO Inc.
Asahi Advertising Inc.

Providing
Ad Technologies

CyberAgent, Inc
SEPTENI CO.,LTD.
etc.

Over 500
CompaniesProviding
Operation service

Consortium

DAC was established as a consortium ofleading ad agencies,
headed by Hakuhodo DY Group<Core Operations＞• Buying Ad Spaces• Media Planning• Progress Management• Consulting• Development Technologies• Operation Service＋Google
FacebookProviding
Ad Technologies

YouTubeTwitter
NIKKEI.com
MSN

ProvidingOperation Serviceetc.

Over 1,000
Companies

Media Representative
Providing total support for
online advertising-36©2016 D.A.Consortium All rights reservedAd technology lineup of DAC Group

Delivery

Data

Message Management Tool

Advertisers/Ad Agencies

Media Planning System

Ad NetworkDSPSSP

PublisherTools
Ad ServerDataDMP/Tag Management System

Publishers

3PAS/Rich Media Ad Serving SystemAnalytics-37©2016 D.A.Consortium All rights reservedConsolidated Subsidiaries（As of March,2016）
NameOwnership

Business

IREP Co., Ltd. TSE 2nd

57.6%

Digital marketing including performance-based ad focused on listing
ads, search engine optimization, content marketing and web analytics.

UNITED, Inc.

44.4%

Smartphone applications and advertising technology business.

HAKUHODO i-studio Inc.

60.0%

Production, system development and CRM services for the entire
online advertising field.

Platform One Inc.

100.0%

Providing platforms for online advertising trading.

ADPRO inc.

100.0%

Operational services for online advertising, including schedulemanagement, sending ad data and placement confirmation.

Torchlight Inc.

70.0%

Services supporting the utilization of social media including owned
media and ad.

D.A.Consortium BeijingCO., LTD.

50.1%

Online advertising business in China.

DAC ASIA PTE. LTD.

100.0%

Supports online advertising strategy, business development, market
research and the expansion of group companies in the Southeast
Asian region.

I-DAC PTE. LTD.

80.0%

Comprehensive digital marketing solution in the Southeast Asianregion.

Mothers-38©2016 D.A.Consortium All rights reserved

Equity-method Affiliates（As of March,2016）
NameOwnership

Business18.5%

Web integration service, social media marketing service, and support
service of digital marketing.

spicebox, inc.

34.4%

Marketing and consultation services for digital communications
design.

Adinnovation Inc.

18.0%

Marketing business for smartphones, ad tracking tool business forsmartphones, media consulting business.

Babycome, inc.

38.2%

Operating "Babycome": one of the largest parenting site in Japanand "Babytube": parenting related movies site.

livepass Inc.

22.4%

Next generation personal video marketing platform company.

Innity Corporation
BerhadBursa Malaysia

25.1%

Online advertising trading platform and advertising network in theSoutheast Asian region.

GLIDER associates, INC.

15.7%

Planning and administration of curation magazine “antenna*”.

Members Co., Ltd.

TSE 2ndNSE 2nd-39©2016 D.A.Consortium All rights reserved

Other companies in which DAC invests（As of March,2016）
NameBusiness

Digital Catapult Inc.

Provides digital content-serving and creative services for PC and mobile.

Data Stadium Inc.

Sports data contents and related solutions.

Video ResearchInteractive Inc.

Internet audience measurements and provides ad servers.

O-uccino, Inc.

Ad agency, planning, creating, and operating real estate websites.

Voltage Inc.

Mothers

Planning and creating services for mobile digital contents.

mediba Inc.

TSE 1stAs a mobile media representative, provides planning, organization and creation services.

YUMEMI Inc.

Mobile-related planning, development, operation and consultation services.

Co-Core Inc.

Operating the 3-D visual space website "meet-me“.

ALBERT Inc.

Mothers“Recommendation engine” developed in-house and advertising optimization solutions
using core analytical abilities.

Origami Inc.

Planning and administration of the next-generation e-commerce platform “Origami”.

Datasection Inc. Mothers

Online consumer and reputation analysis service.

Yummy Japan Inc.

YouTube channel management, web-based video production, web-based PR andadvertising.

Ubiregi Inc.

Ubiregi is an iPad POS(Point of Sales) Application and cloud based platform.

ZEDO,Inc.

Developing ad server and video ad format for media companies.

IPONWEB Holdings
LimitedDevelopment of various ad technologies and cloud advertisement solution andconsulting service.
-40©2016 D.A.Consortium All rights reserved

Vision of DAC Group“The Axel”This logo, called “the axel”, expresses the spirit
embodied in our brand slogan “Empoweringthe digital future” – the spirit to pioneer andimpart vitality into the future of digital society.

-41©2016 D.A.Consortium All rights reserved