First  Quarter,  Fiscal  Year  Ending  March  2014
Consolidated  Financial  Results

UNITED,  Inc.
(TSE  Mothers,  Code:  2497)

July  31,  2013 　 　 　All  of  the  opinions,  predictions,  forecasts  and  the  like  presented  in  this  document  are  those  made  by  UNITED,  Inc.  based  on  information  available  at  the  time  of  preparation  of  the  document,  but  no  guarantee  is  made  as  to  the  accuracy  of  this  information.  Actual  results  may  diﬀer  greatly  from  these  forecasts  due  to  changes  in  various  factors.  Company  names  and  product  names  presented  in  this  document  are  trademarks  or  registered  trademarks  of  their  respective  owners.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

1	

Table  of  Contents

1 　Quarterly  Consolidated  Financial  Results  and  Outlook  for  the  Full  Fiscal  Year
2 　Reference  Material

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

2	１ Quarterly  Consolidated  Financial  Results  and  Outlook  for  the  Full  Fiscal  Year

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

3	Our  Core  Businesss

We  are  putting  eﬀort  into  the  smartphone  media  business  and  RTB(Real  Time  Bidding)  advertising  business  expected  to  see  market  growth  in  the  future,  actively  investing  in  these  business  to  achieve  business  growth.

Media  segment
Advertising  segment
Investment  segment  (*3)

Smartphone  media  businessCore  Business

Other  media  businesses(*1)

RTB  advertising  business(*2)
Advertising  agency  business

Venture  capital  business

The  scale  of  business  contracted  due  to  the  sale  of  stock  in  Mixi,  Inc.  
and  removal  of  subsidiaries  from  consolidated  reporting,  becoming  non-‐‑‒core  business.

*1 Email  advertising,  internet  research,  sports  marketing*2 RTB  (real-‐‑‒time  bidding)  refers  to  a  setup  for  conducting  advertising  transactions  based  on  real-‐‑‒time  bidding.
*3 The  “Investment”  segment  was  called  the  “Investment  and  Incubation”  segment  in  the  previous  quarter,  but  the  name  was  changed  because  the  SocialWire  Group  running  the  incubation  business  was  removed  from  consolidated  reporting  in  April  2013  and  treated  as  an  aﬃliated  company  accounted  for  by  the  equity  method.

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

4	

1Q  Consolidated  P/L  Statement

In  comparison  to  the  same  quarter  of  the  previous  year,  business  structure  changed  greatly,  with  increased  sales  in  the  media  segment  due  to  mergers.  In  the  investment  segment,  sales  and  operating  proﬁt  decreased.

(million  yen)

1Q  of  FY  ending  March  2013

1Q  of  FY  ending  March  2014

Year-‐‑‒on-‐‑‒Year  Change  (%)

936	1,159	

24	

3	

571	

14,743	

 　Advertising  segment

630	

581	

-8	

 　Investment  segment

301	

11	

-96	

 　Inter-‐‑‒segment  elimination

ー	

-5	

ー	

Operating  proﬁt

44	

-109	

ー	

 　Media  segment

-17	

0	

ー	

 　Advertising  segment

-17	

-42	

ー	

 　Investment  segment

153	

-3	

ー	

 　Overhead  expenses

-73	

-63	

ー	

Recurring  proﬁt

41	

-96	

ー	

Quarterly  net  proﬁt

13	

-97	

ー	

Sales
 　Media  segment*1 The  percentages  of  year-‐‑‒on-‐‑‒year  changes  are  rounded.
*2 The  numbers  for  1Q  of  FY  ending  March  2013  are  the  proﬁt/losses  of  MotionBeat  Inc.  prior  to  the  merger  and  do  not  include  the  proﬁt/losses  of  SPiRE  Inc.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

5	

1Q  Results  Highlights

Overall

1Q  ResultsCore  Business

Smartphone  Media  Business

RTB  Advertising  Business• As  publicized  at  the  time  of  publication  of  the  previous  end-‐‑‒of-‐‑‒quarter  results  (May  8,  2013),  losses  were  expected  in  operating  proﬁts  in  the  ﬁrst  half  due  to  forward  investments,  with  a  plan  to  bring  operating  proﬁts  into  the  black  over  the  entire  year.  =The  1Q  is  going  as  per  the  initial  plan.
• Sales  of  stock  in  Mixi,  Inc.  were  completed  in  the  previous  quarter,  reducing  operating  proﬁts  in  the  investment  sector  (earnings  from  sales  of  stock  in  the  same  quarter  of  the  previous  year  were  149  million  yen).

• The  number  of  global  downloads  of  CocoPPa  reached  10  million  in  June(*)• Sales  increased  to  2.1  times  that  in  the  same  quarter  of  the  previous  ﬁscal  year.

• Sales  increased  to  5.4  times  that  of  the  same  quarter  of  the  previous  ﬁscal  year,  with  increased  revenue  from  the  RTB  advertising  platform  started  in  April  2012  contributing.
• The  investment  period  for  the  acquisition  of  RTB  advertising  inventory  was  completed  in  4Q  of  the  previous  ﬁscal  year,  improving  the  ratio  of  gross  proﬁt  to  net  sales.
* The  number  of  downloads  reached  12  million  in  July  2013.	

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6	Media  Segment:  Year-‐‑‒on-‐‑‒Year  Comparison  of  Results  (vs.  1Q  FY  2012)

Do  to  increased  CocoPPa  advertising  revenue(*1)  etc.,  sales  in  smartphone  media  businesses  increased  to  2.1  times  that  of  the  same  quarter  of  the  previous  ﬁscal  year.
Year-‐‑‒on-‐‑‒Year  Comparison  of  Sales  in  Media  Segment(million  yen) ■  Other  media  businesses  (*2)

■  Smartphone  media  businesses  (*3)

571

383

*1 See  p.  22–24  for  details  of  measures  to  increase  CocoPPa  revenue  in  the  future.
*2 Other  media  business:  email  advertising,  internet  research,  sports  marketing*3 For  1Q  2012,  the  sales  of  the  former  SPiRE,  Inc.  are  combined  for  comparison  purpose.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

7	Advertising  Segment:  Year-‐‑‒on-‐‑‒Year  Comparison  of  Results  (vs.  1Q  FY  2012)

Sales  in  RTB  advertising  businesses  increased  to  5.4  times  that  of  the  same  quarter  of  the  previous  ﬁscal  year,  with  increased  revenue  from  the  RTB  advertising  platform  started  in  April  2012  contributing.
Year-‐‑‒on-‐‑‒Year  Comparison  of  Sales  in  Advertising  Segment■  Advertising  agency  business(million  yen) ■  RTB  advertising  business

630

581

* The  numbers  for  1Q  of  FY  2012  are  the  sales  of  MotionBeat  Inc.  prior  to  the  merger  and  do  not  include  the  sales  of  SPiRE  Inc.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

8	First-‐‑‒Half  Policies  Presented  in  Published  Previous  End-‐‑‒of-‐‑‒Quarter  Results

Position  the  ﬁrst  half  (April–September)  as  a  period  for  forward  investments,  actively  invest  to  expand  core  business  with  the  ﬁrst-‐‑‒half  consolidated  operating  proﬁt  expected  to  be  a  loss  (but  going  into  the  black  over  the  entire  year)
Smartphone  Media  Business[Policies]
Continue  to  expand  user  base  in  ﬁrst  half
① Concentrate  personnel  on  developing  and  operating  core  services.
② Invest  in  advertising  and  publicity[1Q  Results]
6.07  million  CocoPPa  downloads  at  end  of  last  quarter→  Reached  10  million  downloads  at  end  of  1Q① Concentrated  personnel  on  CocoPPa  operations.
② User  base  expanded  in  1Q  without  relying  on  advertising,  so  continue  to  deliberate  advertising  and  publicity.

RTB  Advertising  Business[Policies]
Start  PC  RTB  advertising  also  in  ﬁrst  half
① Heavily  allocate  personnel  in  sales,  operation  and  development.
② Continue  investments  to  secure  RTB  advertising  inventory.

[1Q  Results]
Started  to  supply  PC  RTB  advertising  in  August① Personnel  is  unchanged  from  previous  quarter,  so  continue  to  study  increasing  personnel  if  necessary.
② Inventory  is  increasing  steadily,  so  investment  for  ad  inventory  ended  in  the  previous  quarter.

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9	Full-‐‑‒Year  Outlook  for  Fiscal  Year  Ending  March  2014

The  breadth  of  losses  in  the  1Q  consolidated  operating  proﬁt  was  less  than  in  the  internal  projection.  The  plan  is  for  increased  revenue  and  increased  proﬁt  in  each  quarter  starting  in  2Q,  with  the  full-‐‑‒year  consolidated  operating  proﬁt  going  into  the  black.
(million  yen)

Projection  image  in  quarterly  consolidated  
sales

1,159
Projection  image  in  quarterly  consolidated  operating  proﬁt0-‐‑‒109
1Q

2Q

3Q

4Q

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10	Smartphone  Media  Business

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11	

The  CocoPPa  AppIn  our  smartphone  media  business,  we  will  put  the  greatest  emphasis  on  growing  CocoPPa  globally.

CocoPPaThe  Smartphone  Decoration  Community  AppA  free  mobile  app  that  allows  users  to  freely  use  user-‐‑‒contributed  illustrations  to  customize  the  icons  on  their  home  screen  and  their  wallpaper.
•July  19,  2012:Launched  in  the  Apple  App  Store•May  29,  2013:Launched  in  Google  Play

Decoration  examples

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12	

The  CocoPPa  App

CocoPPa  Concept  Movie

http://www.youtube.com/watch?v=8U_̲Ic1DzVgs#at=10

User-‐‑‒contributed  icons  and  wallpaper  contribute  to  vibrant  communication  that  extends  across  national  boundaries.

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

13	

Global  Popularity  of  CocoPPa

Countries  and  regions  where  CocoPPa  was  No.  1  in  the  App  Store  “Lifestyle”  category
Before  January  2013  it  was  No.  1  in  5  countries*  Released  July  19,  2012

Before  January  2013

Hong  Kong
Japan

Macao
Taiwan
Malaysia■  Countries  and  regions  where  CocoPPa  achieved  the  No.  1  ranking  in  the  “Lifestyle”  category.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

14	

Global  Popularity  of  CocoPPa

Countries  and  regions  where  CocoPPa  was  No.  1  in  the  App  Store  “Lifestyle”  category
In  February  2013  it  was  No.  1  in  23  countries  (28  countries  total)
NorwayDenmark
Italy

Estonia
SwedenTunisia

Portugal

February  2013

FinlandKyrgyzstan
ThailandIsraelCanadaPhilippines

United  States

BruneiSingapore
Indonesia

New  ZealandBrazil■  Countries  and  regions  where  CocoPPa  newly  achieved  the  No.  1  ranking  in  the  “Lifestyle”  category  in  February■  Countries  and  regions  where  CocoPPa  achieved  the  No.  1  ranking  in  the  “Lifestyle”  category  in  previous  months
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

15	

Global  Popularity  of  CocoPPa

Countries  and  regions  where  CocoPPa  was  No.  1  in  the  App  Store  “Lifestyle”  category
In  March  2013  it  was  No.  1  in  25  countries  (53  countries  total)

IrelandMarch  2013

Macedonia

Croatia

Armenia
JordanFrance

Qatar

Egypt
Yemen

Dominican
Republic

MexicoVietnamUAE

  Panama,
  El  Salvador,
Honduras,
Nicaragua

Colombia

Peru
Australia

Chile

Paraguay■  Countries  and  regions  where  CocoPPa  newly  achieved  the  No.  1  ranking  in  the  “Lifestyle”  category  in  March■  Countries  and  regions  where  CocoPPa  achieved  the  No.  1  ranking  in  the  “Lifestyle”  category  in  previous  months
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

16	Global  Popularity  of  CocoPPa

Countries  and  regions  where  CocoPPa  was  No.  1  in  the  App  Store  “Lifestyle”  category
In  April  2013  and  on  it  was  No.  1  in  15  countries  (68  countries  total)
April  2013  and  on
Slovakia

Belgium

Mongolia
South  Korea

Moldova

BelizeLuxembourg

Suriname

KuwaitBahrainOman

Cambodia

GuatemalaAngola■  Countries  and  regions  where  CocoPPa  newly  achieved  the  No.  1  ranking  in  the  “Lifestyle”  category  in  April  and  on■  Countries  and  regions  where  CocoPPa  achieved  the  No.  1  ranking  in  the  “Lifestyle”  category  in  previous  months
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

17	Global  Popularity  of  CocoPPa 　CocoPPa  achieved  the  No.  1  ranking  in  68  countries  and  regions  globally(*)* No.  1  ranking  in  the  Apple  App  Store  “Lifestyle”  category,  as  of  July  31,  2013	

■Countries  where  CocoPPa  achieved  the  No.  1  ranking  in  the  “Lifestyle”  category
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

18	

Global  Popularity  of  CocoPPa

CocoPPa  showed  rapid  global  growth  due  to  users  “boasting  about  their  home  screens”  in  social  networking  services  (SNS)  and  through  word-‐‑‒of  mouth.
Instagram(Photo-‐‑‒sharing  SNS)

Pinterest(Image-‐‑‒sharing  SNS)

Word-‐‑‒of-‐‑‒mouth

Search	  Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

19	

Global  Popularity  of  CocoPPa

Worldwide  downloads  of  CocoPPa  reached  12  million  in  July  2013.(*)
Total  downloads  of  CocoPPa  by  month(million)

12  million

iOS  (released  July  19,  2012)

12

Android  (released  May  29,  2013)

10.52

10

8.64
7.65

8

10.58

6.07

6

9.67

4

2.75
2

0.24

0.32

Jul. Aug.

0.80

0.37 0.42 0.47

0.53

Sep.

Dec. Jan.

Oct.

Nov.

0.85

Feb.

Mar.

Apr.

May

1.42

Jun. July  26* For  details,  refer  to  the  press  release  dated  July  31,  2013.	
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20	

Global  Popularity  of  CocoPPa

The  U.S.  accounted  for  42％  of  all  CocoPPa  downloads,  so  we  will  study  establishing  an  operations  center  in  the  U.S.  in  3Q  or  later.
Total  downloads  of  CocoPPa,  broken  down  by  country
Others  17%

U.S.  42%

France  2%
Germany  2%
Australia  2%
Thailand  2%
China  2%Brazil  2%
Canada  3%
Taiwan  4%
United  Kingdom  5%

Japan  17%
*As  of  July  26,  2013  (12  million  downloads  reached)

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21	

Future  CocoPPa  Initiatives

Concentrate  on  expanding  the  user  base  up  to  2Q.  In  3Q,  we  plan  to  do  a  service  renewal,  followed  by  the  introduction  of  new  revenue  sources  such  as  paid  services.
STEP  1

STEP  2Service  Renewal

Introduce  new  revenue  sources  such  as  paid  services

Enhance  user  activity,  improve  ease  of  use.

(See  details  on  next  page.)

Successively  introduce  paid  services,  tie-‐‑‒up  advertising    and  other  new  revenue  sources.

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22	

STEP  1:  Service  Renewal
S

With  the  renewal  planned  for  3Q,  invigorate  the  usage  of  the  service,  leading  to  the  startup  of  paid  services.
Contributed/shared  by  users
Now

Icon  and  wallpaper  materials

Added  in  renewal+Home  screens  created  by  users  themselves

狙っている想定効果
Intended  eﬀects①Even  general  users  can  easily  create/  contribute  home  screens  and  enjoy  the  reactions  of  other  users  to  their  contributions.
②Users  can  copy  home  screens  contributed  by  others  and  easily  decorate  their  own  home  screen.
③Users  compete  with  each  other  to  create/contribute  home  screens,  creating  a  cycle  of  other  users  copying  contributed  home  screens,  invigorating  the  usage  of  the  service.

23	

STEP  2:  Startup  of  Paid  Service

Moving  toward  the  Fall  paid  service  launch  (paid  distribution  of  decoration  materials),  Sanriowave  Co.,  Ltd.  has  decided  to  participate  as  the  ﬁrst  content  partner.(*)

We  plan  to  globally  distribute  paid  decoration  materials  based  on  the  Hello  Kitty,  My  Melody  and  Little  Twin  Stars  themes.
* For  details,  see  the  press  release  dated  July  31,  2013.	
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24

RTB  Advertising  Business

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25	

Potential  of  the  RTB  Advertising  Market

The  Japanese  domestic  RTB  advertising  market  is  expected  to  grow  from  13.5  billion  yen  in  FY  2012  to  73  billion  yen  in  FY  2016,  with  the  average  annual  growth  during  this  period  becoming  52％.
Predicted  Size  of  RTB  Advertising  Market
  (PC/Smartphone  Combined)(billion  yen)

800
80
700
70

73
730

Average  annual  growth  52%

600
60
500
50
400
40
300
30
200
20

135
13.5

100
10
0

2012年年
20122013年年
20132014年年
20142015年年
20152016年年
2016

Source:  Seed  Planning,  Inc.,  Domestic  RTB  Advertising  Traﬃc  Market  Size,  2011-‐‑‒2016,  September  2012
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

26	

Real-‐‑‒Time  Bidding  Setup

STEP  1

When  a  user  visits  a  site,  user  data  is  transmitted  to  a  DSP(*1)
DSP
A
SSP

User  Avisits  site

STEP  2

Data  on  User  A(Cookie-‐‑‒based  site  view  information,  
etc.)

DSP
B
DSP
C

Advertiser:  Cafe
Advertiser:  Car  Company

Advertiser:  Real  Estate  Agent

Advertisers  bid  from  a  DSP,  auction  held  at  SSP(*2)▶Advertising  from  the  winning  advertiser  is  displayed.
Auction

SSP
Advertising  User  A
from  winning  is  served  a  real   advertiser  is  estate  servedadvertisement

Advertiser  bid  data

¥0.05

DSP
A

Cafe

DSP
B

Car  Company

DSP
C

Bids

for  User  A
Bids

¥0.07

for  User  A

WINReal  Estate  Agent

Bids

¥0.09

for  User  A*1 DSP  (Demand  Side  Platform):  System  for  optimizing  advertising  buys  by  the  advertiser  (ad  buyer)*2 SSP  (Supply  Side  Platform):  System  for  optimizing  media  advertising  revenue
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

27	Merits  of  RTB  AdvertisingThrough  the  DSP  and  SSP,  the  advertiser  can  choose  among  many  users  and  narrow  down  the  targets  of  advertising  served  to  designated  target  users.

SSP

Advertisement
  display

SSP

DSP

SSP
User  as  advertising  targetMedia

Advertiser

Beneﬁts  to  Media  (Sellers)Beneﬁts  to  Advertisers  (Buyers)

Advertisings  can  be  sold  at  higher  unit  prices,  leading  to  increased  media  advertising  revenues.

Advertisers  can  analyze,  control  and  optimize  the  eﬀectiveness  of  advertising.

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

28	

Strengths  of  Our  RTB  Advertising  Business• After  gaining  early  entry  into  the  smartphone  RTB  advertising  market  in  April  2012,  our  RTB  advertising  platform  has  grown  to  be  the  largest  in  the  Japanese  domestic  smartphone  RTB  advertising  market.

• By  deploying  both  a  DSP  and  SSP  ourselves,  we  have  two  revenue  opportunities  for  each  advertisement  served.

User

Media

UnitedSSP

UnitedDSP￥￥

Ads  served

Advertiser

We  have  two  revenue  opportunities  for  each  advertisement  served

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

29	

Our  RTB  Advertising  BusinessBy  implementing  a  policy  of  actively  collecting  advertising  inventory  in  the  smartphone-‐‑‒speciﬁc  RTB  advertising  platform  launched  in  April  2012,  advertising  inventories  have  increased  steadily.
Number  of  Advertising  Requests(*)  (Quarterly)(billion  requests)
（億回）

179  
17.9

200  
20

10
100  

0  

9.8
98  

3Q
2012年年
2012

124  
12.4

4Q

1Q
2013年年
2013* Advertising  requests:  Request  for  bids  on  advertising  placement  where  advertising  information  (information  on  advertising  placement  screens,  user  information,  etc.)  is  passed  from  media  through  the  SSP  and  transmitted  to  the  DSP.	
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

30	

Future  Measures  in  Our  RTB  Advertising  BusinessAs  a  step  of  growth  measures  in  the  ﬁscal  year  ending  March  2014,  in  August  we  launched  our  entry  into  the  PC  RTB  advertising  market  which  is  of  an  even  larger  market  size.(*)(billion  yen)（億円） Predicted  Size  of  the  RTB  Advertising  Market

We  continue  to  lead  growth  in  the  smartphone  RTB  advertising  market  we  entered  early.

800
80
70
700
600
60

50
500

We  entered  the  PC  RTB  market  which  is  of  an  even  larger  market  size.

40
400
300
30
200
20

Smartphone
スマートフォン

100
10
0

PC

2012
2012年年

20132013年年

20142014年年

2015
2015年年

20162016年年

Source:  Seed  Planning,  Inc.,  Domestic  RTB  Advertising  Traﬃc  Market  Size,  2011-‐‑‒2016,  September  2012* For  details,  see  the  press  release  dated  July  31,  2013.  	
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

31	

Our  RTB  Advertising  BusinessIn  the  RTB  advertising  business,  we  will  accelerate  growth  with  our  entry  into  PC  RTB  advertising  while  continuing  to  grow  revenues  in  smartphone  RTB  advertising.
Smartphone  RTB  Advertising	              PC  RTB  Advertising  (August                                    Launch)

Enter  by  taking  advantage  of  existing  business  assets,  and  accelerate  growth  in  the  RTB  advertising  businessAs  the  largest  Japanese  domestic  smartphone  RTB  advertising  platform,  continue  to  lead  the  domestic  market•70%  of  existing  customers  are  •We  will  successively  expand  the  prospective  customers  (customers   connections  to  other  companiesʼ’  that  serve  advertising  to  both  PCs  RTB  advertising  platforms  to  and  smartphones)
increase  RTB  advertising  •We  can  take  advantage  of  inventories.
existing  development  technology  and  operational  knowhow  cultivated  for  smartphone  RTB  advertising.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

32	

Other:  New  Business  for  2Q  of  Fiscal  Year  Ending  March  2014

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

33	

Starting  Business  Development  in  Southeast  Asia

• As  the  ﬁrst  initiative,  we  plan  to  establish  a  Philippine  subsidiary  called  ADerL,  Inc.  and  launch  a  net  prize  service  called  DreamGiver.(*1)• This  is  the  ﬁrst  overseas  deployment  of  the  operational  know-‐‑‒how  for  the  “DreamMail”  web  service  prize  service  we  have  been  operating  in  Japan  for  more  than  14  years.
Potential  of  the  Philippine  Market

Population:105  million,  12th  in  world  (Japan  is  10th)  *2
Internet  users:
29  million 　*3
Mobile  terminal  users:
87  million 　*4Monthly  Facebook  users:
30  million,  8th  in  world 　*5*1 For  details,  see  the  press  release  dated  July  31,  2013.
*2 CIA,  The  World  Factbook,  July  2013
*3 JETRO,  Survey  of  Internet  and  SNS  Popularity  in  Southeast  Asia,  March  2012
*4 Ministry  of  Internal  Aﬀairs  and  Communications,  Global  Telecommunications  Situation,  FY  2011
*5 Socialbakers,  January  2013
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

34	

Overall  Summary• Our  business  have  become  powerful  services  in  both  business  segments  of  the  smartphone  media  business  and  RTB  advertising  business  expected  to  see  market  growth  in  the  future.
• In  order  to  become  a  “high-‐‑‒revenue/high-‐‑‒growth”  ﬁrm  in  the  medium  term,  we  will  actively  invest  in  both  businesses,  determine  the  timing  to  grow  business  and  position  the  2Q  also  as  a  period  for  continued  forward  investment.
• In  the  ﬁrst  half,  we  will  make  forward  investment  in  both  businesses  to  generate  operating  proﬁt  starting  in  the  second  half  and  bring  operating  proﬁt  into  the  black  over  the  full  year,  thus  accelerating  future  growth.

Smartphone  Media  Business

RTB  Advertising  Business

Important  2Q  Policy:  Expand  user  base

Important  2Q  Policy:  Launch  PC  RTB  advertising

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

35	

2 　Reference  Material

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

36	

Consolidated  Balance  Sheet  for  this  Quarter

The  main  cause  of  increases  or  decreases  from  the  end  of  the  previous  quarter  is  the  removal  from  consolidated  reporting  of  the  SocialWire  Group  (and  shift  to  treatment  as  an  aﬃliated  company  accounted  for  by  the  equity  method)  in  April  2013.
Consolidated  Balance  Sheet  (End  of  June  2013)End  of  Previous  Quarter(March  2013)(million  yen)End  of  This  Quarter(June  2013)

Increase/  Decrease

Current  assets

5,949	

5,488	

-461

(Cash  on  hand)(3,252)	

(3,555)	

(+303)	

Fixed  assets

896	

603	

-292	

Current  liabilities

1,206	

854	

-352	

Fixed  liabilities

195	

2	

-193	

Net  assets

5,443	

5,235	

-208	Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

37	

Comparison  of  Results  with  Previous  Quarter  (4Q)  –  Consolidated
In  comparison  to  the  previous  quarter,  after  exclusion  of  the  factors  of  reduced  revenues/reduced  proﬁt  due  to  the  completion  of  sales  of  stock  in  Mixi,  Inc.  in  the  previous  quarter  and  the  removal  of  the  subsidiary  from  consolidated  reporting,  consolidated  sales  decreased  by  99  million  yen  over  the  previous  quarter  and  consolidated  operating  proﬁt  decreased  by  32  million  yen  over  the  previous  quarter.  This  was  mainly  due  to  seasonal  factors  in  the  advertising  segment  (January–March  is  a  time  of  advertising  demand;  April–June  is  a  reactionary  decreasing  trend).

(million  yen)

Consolidated  sales  compared  to  previous  quarter

1,821(million  yen)

Consolidated  operating  proﬁt  compared  to  previous  quarter

54

Previous  quarter(January-‐‑‒March)

This  quarter(April-‐‑‒June)■Proﬁt/loss  of  removed  subsidiaries 　■Proﬁt  from  sales  of  Mixi,  Inc.  stock 　■Consolidated  proﬁt/loss  excluding  special  factors

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

38	

事業ポートフォリオの転換
Transition  in  the  Business  Portfolio

In  the  previous  4Q,  the  transition  to  a  business  portfolio  centered  on  the  smart  media  business  and  RTB  advertising  business  was  complete.

Smartphone  Media  Business

RTB  Advertising  Business

Changes  in  Other  Segments/Businesses
1.

Decrease  in  Revenue  in  the  Investment  Segment• The  SocialWire  Group  was  removed  from  consolidated  reporting  and  transitioned  to  become  an  aﬃliated  company  accounted  for  by  the  equity  method  (April  2013).
• Sales  of  stock  held  in  Mixi,  Inc.  were  completed  in  March  2013.

2. 　Sale  of  Consolidated  Subsidiary  in  the  Advertising  Segment• The  advertising  solutions  business  Fringe81,  Inc.  was  sold  and  removed  from  consolidated  reporting  (March  2013).

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

39	

事業ポートフォリオの転換
Services  in  the  Smartphone  Media  BusinessIn  the  smartphone  media  business,  we  are  deploying  services  in  several  segments  other  than  CocoPPa.  In  the  future,  we  plan  to  continuously  introduce  new  services  while  maintaining  a  focus  on  the  growth  of  CocoPPa.

Apuri-­‐
Shuran	  Review  MediaOperated  as  iPhone  review  media  aimed  at  iPhone  beginners

Aﬃliate  Media“BEAT+”  and  other  aﬃliate  media  are  operated

Career  Marketplace  Apps

Providing  in-‐‑‒house  apps  for  the  au  Smart  Pass

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

40	

VisionBecome  the  leading  internet  ﬁrm  in  Japan

MissionCreate  new  value  through  continued  challenges  and  contribute  to  society

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

41