July  31,  2014

First  Quarter,  Fiscal  Year  Ending  March  2015
Consolidated  Financial  Results

United,  Inc.
(TSE  Mothers,  Code  2497)

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.

Contents

1. Financial  Highlights

P2    

2. Status  of  Smartphone  Media  Business  and  Future  Direction

P9

3. Status  of  RTB  Advertising  Business  and  Future  Direction

P17

4. Summary

P25

5. Reference  Material

P27

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

1	1. Financial  Highlights

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

2	Our  Core  BusinessWe  are  putting  eﬀort  into  the  RTB  advertising  business  and  smartphone  media  business  expecting  to  see  market  growth  in  thefuture,  actively  investing  in  these  two  to  achieve  business  growth.

Media  segment

Smartphone  media  businessCore  Businesses

Other  media  businesses(*1)

Advertisingsegment

RTB  advertising  business(*2)

Investment  segment

Venture  capital  business

Advertising  agency  business*1  Email  advertising,  internet  research,  sports  marketing*2  RTB  (real-‐‑‒time  bidding)  refers  to  which  ad  inventory  is  bought  and  sold  on  a  per-‐‑‒impression  basis,  via  programmatic  instantaneous  auction
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

3	

1Q  (April-‐‑‒June)  Results  Highlights

Whole

1Q  
Consolidated
Results• Both  Sales  revenue  and  proﬁt  increased  compared  to  the  same  period  last  year
Sales  revenue
2,024  million  yen (+75%)
Operating  proﬁt 128  million  yen(Proﬁtability  achieved:  +237  million  yen)・Core  businesses  (smartphone  media  business  +  RTB  advertising  business)  acted  as  a  driver  for  growth.
• Sales:  +239%  compared  to  the  same  period  last  year  Core  Businesses

Smartphone
Media
Business

RTB
Advertising
Business• Downloads  for  “CocoPPa”  exceeded  25  million  in  May  (*1).  The  ratio  of  overseas  downloads  was  84%

• The  worldwide  hit  app  “Angry  Birds(*2)”  was  released  for  Sugotoku-‐‑‒Contents®  (*3)  provided  by  NTT  DOCOMO  Inc.  in  June.
• Sales:  +190%  compared  to  the  same  period  last  year
• Sales:  +8%  over  the  previous  quarter.  Growth  was  achieved  by  overcoming  a  decline  in  demand  from  the  level  of  4Q  (Jan.-‐‑‒Mar.)  advertising  peak  periods  (In  the  previous  ﬁscal  year,  1Q  sales  decreased  by  23%  from  the  level  of  4Q).
• Monthly  advertising  inventory  for  the  SSP  “AdStir”  exceeded  35  billion  ad  impressions  in  June  (+472%  compared  to  the  same  month  of  the  previous  year).

*1  The  number  of  downloads  exceeded  27  million  in  July  2014.
*2  “Angry  Birds”  is  a  registered  trademark  of  ROVIO  ENTERTAINMENT  LTD.

(c)  2014  Rovio  Entertainment  Ltd.  Angry  Birds  and  game  characters  are  trademarks  of  Rovio  Entertainment  Ltd.  and  are  protected  by  international  laws.  All  rights  reserved.

*3  This  is  a  service  provided  by  NTT  DOCOMO  Inc.  where  a  select  basket  of  roughly  150  types  of  content  including  news,  weather,  games,  horoscopes,  etc.  can  be  used  unlimited  at  a  monthly  price  of  ¥380  (tax  not  included).  “Sugotoku-‐‑‒Contents®”  is  a  registered  trademark  of  NTT  DOCOMO  Inc.

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

4	

1Q  (April-‐‑‒June)  Consolidated  P/L  Statement<Y  o  Y>Both  sales  revenue(+75%)  and  proﬁt(Proﬁtability  achieved:  +237  million  yen)  increased.
＜Q  o  Q＞Sales  revenue  increased(+11%)  and  proﬁt  remained  ﬂat(△3%). 　SG&A  increased  due  to  factors  such  as  hiring  of  new  graduates.
1Q,  FY  ending
March  2015

Results  of  same  Results  of  previous  Change  from  period  a  year  agoquartersame  period  a  (1Q,  FY  ending  March  (4Q,  FY  ending  March  year  ago  (%)
2014)
2014)

Quarter-‐‑‒on-‐‑‒Quarter
Change  (%)

2,024

1,159

＋75%

1,817

＋11%

877

571

＋53%

821

＋7%

 　Advertising  segment

1,108

581

＋91%

1,002

＋11%

 　Investment  segment

76

11

＋570%

17

＋339%

 　Inter-‐‑‒segment  elimination

△38

△5

-‐‑‒

△24

-‐‑‒

Total  proﬁt  from  sales

559

288

＋94%

517

＋8%

 　Media  segment

267

166

＋61%

283

△6%

 　Advertising  segment

218

118

＋85%

213

＋2%

 　Investment  segment74

3+1,877%

20

＋259%

-‐‑‒

△0

-‐‑‒

-‐‑‒

-‐‑‒

430

397

＋8%

384

＋12%

Operating  proﬁt

128-‐‑‒109

-‐‑‒

132

△3%

 　Media  segment

93	

39

＋136％	

134△31％	 　Advertising  segment

107	

Sales  revenue 　Media  segment 　Inter-‐‑‒segment  elimination
Selling,  general  andadministrative  expenses

Proﬁtability
achieved△6

Proﬁtability
achieved

-‐‑‒

109

△2％	

62	

△3

Proﬁtability
achieved-‐‑‒

13＋361％	 　Inter-‐‑‒segment  elimination

△134	

△138

Recurring  proﬁt

134 　Investment  segment

Quarterly  net  proﬁt

81

-‐‑‒

△124

-‐‑‒

△96

Proﬁtability
achieved

-‐‑‒

135

△1%

△97

Proﬁtability
achieved

-‐‑‒

122

△34%

※

*  Criteria  for  allocation  of  SG&A  expenses  to  each  business  segment  were  changed  in  1Q  of  FY  ending  March  2015.  Operating  proﬁts  of  the  same  period  a  year  ago  and  of  the  previous  quarter  were  recalculated  according  to  the  new  criteria.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

5	Consolidated:  Trend  in  Sales  and  Operating  Proﬁt  by  Quarter
Sales  of  core  businesses(smartphone  media  business  +  RTB  advertising  business):+208%compared  to  the  same  period  last  year
The  ratio  of  core  business  sales  to  all  the  consolidated  sales  increased  to  64%  from  36%  in  the  same  period  of  the  previous  ﬁscal  year.

Sales  (m

2,0

1,0

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

6	Smartphone  media  business:  Trend  in  Sales  by  Quarter
Smartphone  media  business  sales:  +239%  compared  to  the  same  period  last  year
“CocoPPa”,  “apps  for  the  career  market”  and  “aﬃliate  media”  achieved  growth.

(millio63

FY

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

7	

RTB  advertising  business:  Trend  in  Sales  by  Quarter  RTB  advertising  business  sales:  +190%  compared  to  the  same  period  last  year
The  sales  grew  by  8%  over  the  previous  quarter,  overcoming  a  decline  in  demand  from  the  level  of  Jan.-‐‑‒Mar.  advertising  peak  periods.  (-‐‑‒23%  in  the  previous  ﬁscal  year)

(mil

8

4

F

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

8	

2.  Status  of  Smartphone  Media  Business  and  Future  Direction

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

9	Structure  of  Our  Smartphone  Media  Business
The  smartphone  media  business  consists  of  two  pillars:  “mid-‐‑‒long  term  monetization  apps”  and  “short-‐‑‒term  monetization  apps”.
Mid-‐‑‒long  term  monetization  apps

Short-‐‑‒term  monetization  apps

Scale-‐‑‒up  the  proﬁt  signiﬁcantly

Earn  stable  proﬁts  to  support  the  business  as  a  whole○CocoPPa  (Jul.  2012~∼)Smartphone  customization  community  app

○Apps  for  the  career  market
・Provided  to  the  au  Smart  Pass  (Feb.  2012~∼)○iam  (Jan.  2014~∼)
Proﬁle  exchange  service
developed  by  subsidiary  Fogg

・Provided  to  Sugotoku-‐‑‒Contents®  (Dec.  2013~∼)・5  apps  provided  to  XL,  an  Indonesia-‐‑‒based  corporation  (Jun.  2014~∼)Sister  app  of  the  “CocoPPa”  brand○CocoPPa  Play
(Mar.  2014~∼)
Avatar  app○Aﬃliate  media  (Mar.  2012~∼)
We  operate  several  in-‐‑‒house  developed  aﬃliate  media  services.
○  Other  new  businesses
We  are  planning  multiple  services

?

?

?

・・・

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

10	

Main  Topics  in  the  Smartphone  Media  Business

CocoPPa・CocoPPa  reached  cumulative  25  million  downloads  in  May  2014  (See  page  29  for  breakdown  of  downloads).

 　→  The  ratio  of  overseas  downloads  was  84%  (with  the  U.S.  accounting  for  the  largest  32%  share).
 　→  More  than  one  million  monthly  downloads  have  continued  for  more  than  one  year.

CocoPPa・Launching  the  sister  app  “CocoPPa  Play”  on  a  full-‐‑‒scale  basis  (See  page  12)

CocoPPa・Working  with  the  device  manufacturers  (Samsung  Electronics,  LG  Electronics  Japan)  (See  page  13)

Apps  for  career  market・Working  with  ROVIO  ENTERTAINMENT  LTD.  (See  page  14)

Apps  for  career  market・Enhancing  the  lineup  of  “apps  for  the  career  market”  (See  page  15)

Apps  for  career  market・Providing  5  apps  for  an  unlimited  app  service  oﬀered  by  XL,  an  Indonesia-‐‑‒based  leading  telecommunications  carrier

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

11	

Launching  “CocoPPa  Play”  on  a  Full-‐‑‒scale  BasisThe  iOS  version  was  renovated  signiﬁcantly  in  July  and  the  Android  version  is  planned  to  be  released  in  August.
<Basic  playing  method>・Users  can  dress  up  their  avatars  with  cute  clothes  and  accessories,  show  them  oﬀ  in  fashion  shows  and  have  opportunities  to,  among  others,  make  friends  with  one  another.
  ・The  main  revenue  source  is  paid  the  items  such  as  clothes  for  dressing  avatars.
・It  is  possible  to  set  the  avatars  in  “CocoPPa”  My  Page.
<Additional  features  after  the  renovation>
・Various  cities  have  been  added  in  the  app.  If  missions  for  each  city  are  cleared,  limited-‐‑‒sale  clothes  become  available  for  sale.
・In  addition,  introduction  of  free  points,  addition  of  sound,  etc.

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

12	

Working  with  Smartphone  Manufacturers
Eﬀorts  made  together  with  “Samsung  Electronics”  and  “LG  Electronics  Japan”
We  aim  to  further  increase  of  “CocoPPa”  users.

1)  Working  with  Samsung  Electronics“CocoPPa”  was  released  in  the  app  store  “Samsung  Galaxy  Apps”  preloaded  on  smartphones  and  tablets  manufactured  by  Samsung  Electronics.
2)  Working  with  LG  Electronics  Japan“isai  motion  <arrange>”(*),  an  original  function  to  “change  home  screen  themes  simply  by  shaking  the  smartphone”  is  installed  on  “isai  FL”,  LGʼ’s  2014  summer  model  smartphones  launched  by  au.
Further,  “CocoPPa”  has  been  preinstalled  on  those  smartphones  for  the  ﬁrst  time.

The  images  of  changing  home  screen  themes  by  using  “isai  motion  <arrange>”

Before  changing  the  themes

After  changing  the  themes

Icons  and  wallpapers  are  changed  simply  by  shaking  the  smartphone.

*  Developed  based  on  “CocoPPa”  jointly  by  our  company  and  LG  Electronics  Japan
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

13	

Working  with  ROVIO  ENTERTAINMENT  LTD.
Jointly  publishing  “Angry  Birds(*)”  for  “Sugotoku-‐‑‒Contents®”  provided  by  NTT  DOCOMO  Inc.
We  will  continue  to  consider  advancing  the  cooperation  and  expanding  its  scope.

■Titles  provided  for  “Sugotoku-‐‑‒Contents®”[Games]  Angry  Birds,  and  following  titles[Video]  ToonsTV*  “Angry  Birds”  is  a  registered  trademark  of  ROVIO  ENTERTAINMENT  LTD.

(c)  2014  Rovio  Entertainment  Ltd.  Angry  Birds  and  game  characters  are  trademarks  of  Rovio  Entertainment  Ltd.  and  are  protected  by  international  laws.  All  rights  reserved.

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

14	

Enhancing  the  Lineup  of  “Apps  for  the  Career  Market”
Apps  provided  for  “Sugotoku-‐‑‒Contents®”  oﬀered  by  NTT  DOCOMO  Inc.  
increased.
The  above-‐‑‒mentioned  apps  serve  as  stable  revenue  sources  along  with  apps  in  au  “Smart  Pass”.

Apps  for  “Smart  Pass”

Apps  for  “Sugotoku-‐‑‒Contents®”  CocoPPa
Dec.  2013  ~∼Brain  Training  Game   iQ  Quiz  Collection   Angry  Birds  (*)
Pack  for  Sugotoku
for  Sugotoku

Feb.  2014  ~∼TAP10Psychological  Tests  of  Love  and  Diagnosis

Indian  Magic  ofMental  Calculation

Recipes  for  Simple  Side  Dishes  Going  Well  with  Liquors

Trivia  for  Popularity★
Wine  365

Trivia  forPopularity★
Sushi  365

Jun.  2014  ~∼Simple  Recipes  and  Secret  Tips

Trivia  forPopularity★
Cheese  365

*  Published  jointly  with  ROVIO  ENTERTAINMENT  LTD.
(c)  2014  Rovio  Entertainment  Ltd.  Angry  Birds  and  game  characters  are  trademarks  of  Rovio  Entertainment  Ltd.  and  are  protected  by  international  laws.  All  rights  reserved.

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

15	

Future  Measures  for  the  Smartphone  Media  BusinessCurrent  status
・Revenue  from  existing  services  (CocoPPa,  apps  for  the  career  market,  aﬃliate  media)  continue  to  grow.
・All  of  the  process  for  high  quality  apps,  from  planning,  development  and  operation,  can  be  completed  in-‐‑‒house.
MeasuresMid-‐‑‒long  term  monetization  apps

Increasing  revenue  by  improving  existing  services

Short-‐‑‒term  monetization  apps

Launching  multiple  new  services

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

16	

3.  Status  of  RTB  Advertising  Business  and  Future  Direction

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

17	

“Characteristics”  and  “Advantages/Strengths”  of  Our  RTB  Advertising  BusinessWe  develop  and  operate  our  own  three  functions  of  DSP,  SSP  and  agency  on  our  own  mainly  in  the  smartphone  segment.
Characteristics

Advantages/strengths

1.  Developing  the  business  mainly  in  the  smartphone  segment(The  service  was  launched  as  a  smartphone-‐‑‒speciﬁc  SSP/DSP  in  April  2012)
2.  Having  all  the  three  functions  of  DSP,  SSP  and  agency  (trading  desk)

・The  market  itself  is  expected  to  show  signiﬁcant  growth.
・Abundant  knowhow  in  the  smartphone  segment
・Three  revenue  opportunities  for  each  ad  impression  (See  the  ﬁgure  below).
・Gross  proﬁt  margin  is  improved  by  increasing  in-‐‑‒house  transactions.

■Process  of  RTB  advertising  transactions  and  our  companyʼ’s  revenue  opportunities
Trading  desk

AdvertiserIn-‐‑‒house  agency

Our
DSP

Our
SSP

¥

¥

¥

Media

User

Distributing  an  ad  once  creates  three  revenue  opportunities.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

18	

RTB  Advertising  Market  trends  and  Growth  Rate  of  Our  RTB  Advertising  Platform  Sales
Our  RTB  advertising  platform  sales  increased  by  193%  compared  to  the  January-‐‑‒June  period  of  the  previous  ﬁscal  year.
The  size  of  Japanese  RTB  advertising  market  is  estimated  to  grow  by  36%  in  the  period  from  2013  to  2014.

Overall  market

Our  company(million  US  dollars)





+36%



increase
 

+193%
increase










(Source：IDC,  October  2013;  market  size
prediction  for  the  full  year) 
Jan.  –Jun.

2013

 
Jan.  –Jun.

2014

(Actual  results  for  the  January-‐‑‒June  period)
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

19	Factors  that  Diﬀerentiate  SSP  Services“Size”  and  “automation”
Factors  that  diﬀerentiate  SSP  services  are  “size”  of  demand  and  supply  to  increase  the  volume  of  advertisements  distributed  within  SSP  and  “automation”  to  raise  transaction  unit  value.

Size(See  page  21)Number  of  connections  to  advertisers  (demand  side)

The  more  advertisers  means  the  more  customers  and  the  more  likely  bidding  for  an  ad  with  high  unit  value  will  be  made.

Volume  of  inventory  of  ads  distributed(supply  side)

The  larger  inventory  means  the  more  likely  advertisers  will  ﬁnd  a  user  that  they  want  to  show  their  ad  to.

DSP
DSP

RTB

DSP
ADNW
ADNW
ADNW
Advertisers

Media  A

SSPYield  optimiza-‐‑‒tion  (*)

Media  BMedia  C

Automation  (See  page  22)An  ad  with  the  highest  unit  value  is  automaticallyselected  and  displayed  each  time

*  A  mechanism  for  carrying  out  centralized  management  to  maximize  sales  from  multiple  ad  networks
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

20	

“Size”  of  Our  SSP  “AdStir”
AdStir  is  one  of  Japanʼ’s  largest  smartphone  SSPs.
Connected  to  11  major  domestic/global  DSPs
Distribution  inventory  has  expanded,  mainly  driven  by  increase  in  ads  for  smartphone  apps,  and  reached  35  billion  ad  impressions  in  June.

Number  of  connections  to  advertisers  (demand  side)

Volume  of  inventory  of  ads  distributed  (supply  side)(Impressions)  35  billion  25  billion  15  billion  5  billion  Apr.                                                                                                                    Apr.                                                                        Dec.                            Apr.        Jun.

8  mths                   4  mths    2  mths

We  plan  to  continuously  add  more  and  more  connections.

Growth  rate  is  being  accelerated.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

21	

“Automation”  Function  of  Our  SSP  “AdStir”
The  newest  “automation”  function  among  those  of  smartphone  SSPs
An  advertisement  with  the  highest  unit  value  is  automatically  selected  for  display  on  targeted  media  (ad  spot)  from  among  various  formats  and  advertisers.

Various  advertising  format

Many  channels
11  DSPs

PR	
  

PR	
  

Banner	  adver)sing	
  

Icon	
  adver)sing	   Na)ve	
  adver)sing	    Bypass
  GREE  ADS  DSP  Vantage
  FreakOut
  ScaleOut
  m  dot  m
  BLADE
  GAME  LOGIC
  Smalgo
  Dynalyst
  Vizury

20  or  more  ad  networks
Inters))al	
  adver)sing	
  

Wall	
  adver)sing	  Rich/video	
  adver)sing	  Formats  unique  to  smartphones  have  already  been  supported.

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

22	Strengthening  Functions  of  Our  DSP  “Bypass”
Eﬀorts  to  improve  advertising  performance“Increase  of  campaigns  for  advertisers  who  focus  on  performance”  and  “improvement  of  CTR/CVR”  have  shown  positive  eﬀects.

Eﬀorts  to  strengthen  functionsEﬀect

Dynamic	
  retarge)ng	Campaigns	
  for	
  adver)sers	  	
  (such	  as	
  electronic	
  commerce	  and	
  real	  estate)	
  who	
  focus	  on	
  adver)sing	  performance	
  increased	  	
  Improving	
  bidding	
  and	
  CPA	  	  op)miza)on	
  logic	

Adver)sing	  performance	  	
  (CTR/CVR)	
  improved	Star)ng	
  RTB	  distribu)on	  of	  na)ve	  ads	  (at	
  end	  of	
  July)	

We	
  aim	  to	
  improve	
  adver)sing	  performance	  Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

23	

Future  Measures  for  RTB  Advertising  BusinessWe  will  achieve  continuous  growth  mainly  through  the  following  measures  in  the  smartphone  segment.

Improving  advertising
performance
・Improve  the  accuracy  of  distribution  functions  including  the  dynamic  retargeting  function  launched  in  1Q・Continuously  improve  bidding  and  CPA  optimization  logic
Expanding  inventory  of  target  users
・Connect  with  new  SSPs

Expanding  the  scale  oftransactions
・Continue  new  media  recruiting  to  increase  our  advertising  inventory
・Further  increase  the  number  of  connections  with  new  DSPs
Raising  the  transaction  unit
value
・Distributing  advertisements  with  higher  unit  value  will  be  made  possible  by  supporting  new  formats,  etc.
・Promote  the  function  to  automatically  serve  ads  so  that  ads  with  higher  unit  value  are  automatically  selected  and  servedCopyright  ©  UNITED,  Inc.  All  Rights  Reserved.

24	

4.  Summary

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

25	

Overall  Summary

1Q

2Q以降降

Both  revenue  and  proﬁt  increased  compared  to  thesame  period  a  year  ago  (proﬁtability  achieved)

We  continue  to  achieve  growth  mainly  in  core  businesses  (smartphone  media  business  and  RTB  advertising  business)

Smartphone
media  business”CocoPPa”,  “apps  for  the  career  market”  and  “aﬃliate  media”  continued  to  growWe  have  launched  several  new  businesses  while  aiming  to  achieve  growth  by  improving  existing  services  to  increase  revenue

RTB  advertisingbusiness

We  achieved  growth  mainly  in  the  smartphone  segment

We  continued  to  achieve  growth  mainly  in  the  smartphone  segment

Whole  company

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

26	

5.  Reference  Material

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

27	

Consolidated  Balance  Sheet  for  This  Quarter<Current  assets>  Increased  by  318  million  yen  due  to  increase  in  operational  investment  securities,  etc.
<Fixed  assets>        Increased  by  413  million  yen  due  to  acquisition  of  investment  securities,   　 　 　 　 　 　 　 　 　etc.
<Net  assets>              Increased  by  558  million  yen  partly  because  the  exercise  of  subscription  rights  to  shares  with  exercise  price  revision  terms  allotted  to  Merrill  Lynch  Japan  Securities  Co.,  Ltd.  in  December  2013  was  completed  in  June  (fundraising  of  2,018  million  yen).
(million  yen)End  of  This
Quarter  (Jun.  2014)End  of  Previous
Quarter  (Mar.  2014)

Increase/
Decrease

Current  assets

7,558

7,239

+318

(Cash  on  hand)(5,138)(5,096)(+42)

Fixed  assets

1,373

960

+413

Current  liabilities

1,213

1,040

+173

Fixed  liabilities

0

0

+0

Net  assets

7,718

7,159

+558
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

28	

Number  of  “CocoPPa”  Downloads
Downloads  of  “CocoPPa”  reached  25  million  in  May  2014  when  22  months  passed  since  its  release.
Backed  by  strong  support  from  users  around  the  world  through  spread  of  information  on  SNS  sites  and  word-‐‑‒of-‐‑‒mouth  publicity  by  users,  more  than  one  million  monthly  downloads  have  continued  for  more  than  one  year.
The  ratio  to  users  outside  of  Japan  is  84%  (with  U.S.  accounting  for  the  largest  32%  share).
Breakdown  of  cumulative  “CocoPPa®”  downloads  by  country

Monthly  cumulative  downloads  of  “CocoPPa®”(ten  thousand)

25  million
iOS  (released  July  19,  2012)

Others  20%

Android  (released  May  29,  2013)

U.S.  32%

Thailand  2%
Canada  2%
Mexico  2%
Spain  2%France  3%
Italy  3%United  Kingdom  4%
China  4%

Japan  16%

Brazil  4%
Germany  4%
Jul.                                Oct.                          Jan.                                Apr.                              Jul.                              Oct.                          Jan.               　 　 　 　  May  16

Taiwan  4%

Data  as  of  May  16,  2014  when  25  million  downloads  were  reached

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

29	

Overview  of  “CocoPPa”  services
Icons,  wallpapers  and  home  screens  posted  by  users  are  downloaded  and  used  by  other  users.  The  translation  featured  by  Google  within  “CocoPPa”  is  enjoyed  by  users  for  cross-‐‑‒border  communication.

”CocoPPa”  Usage  Images
User  posting  material  (creator)<Sample  page  of  creators>(comments)

Icons  and  wallpapers  are  contributed  from  around  the  world  (free).  690,000  icons,  150,000  wallpapers  by  the  end  of  June

Post
Decorating  users

Communication  between  users  (motivation  forcreators  to  post)

Users  from  all  over  the  world  write  comments  on  the  creatorʼ’s  page
”This  icon  is  cute.”  or“I  like  your  sense  ofstyle.”In  English,  Chinese,  Arabic,  German  and  many  other  languages

replies:“Thank  you  for  thecomments.”  “I  am
glad  to  contribute  it.”
The  translation  featuresare  provided  in  many  languages
Smartphone  screen  decorated  using  posted
material  (free)

There  is  ample  communication  amongusers  based  on  posted  materials,  etc.
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

30	

RTB  Advertising  Market  Size  and  Predicted  Share  of  Overall  Display  Advertising
The  U.S.  RTB  advertising  market  is  projected  to  expand  to  approximately  $10.1  billion  in  FY  2016,  while  the  Japanese  RTB  advertising  market  is  projected  to  expand  to  approximately  $900  million  in  FY  2016.  This  is  projected  to  be  the  highest  growth  rate  within  the  display  advertising  market.
Forecast  of  U.S.  RTB  advertising  market  size

(million  US  dollars)
12 ,0 0040 %

1 0 ,0 5 6

35 %

10 ,0 00

Forecast  of  Japanese  RTB  advertising  market  size

(million  US  dollars)
1,00 0

923

90 0

40 %
35 %

80 0

720

30 %

30 %

70 0

8,00 0

6 ,8 7 5

6,00 025 %
20 %

4 ,6 6 918%
13%

1 ,9 9 7
7%

15 %

20 %

40 0

30 0
10 %

10%

5%

0

0%
20 12

50 0

15 %

218

10 %

20 0

2,00 0

5%

25 %

521

382

3 ,1 3 7

4,00 0

60 0

20 13

20 14

20 15

20 16

10 0

3%

0
20 12

7%

4%

5%

20 13

20 14

8%

5%
0%

20 15

20 16

Size  of  RTB  advertising  market

Size  of  RTB  advertising  market

RTB  advertising  share  of  overall  internet  ad  market

RTB  advertising  share  of  overall  internet  ad  market(Source:  IDC  October  2013  /  RTB  advertising  share  of  overall  market  calculated  by  United)
Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

31	

Real-‐‑‒Time  Bidding  Setup
STEP  1

When  a  user  visits  a  site,  user  data  is  transmitted  to  a  DSP.

SSP
User  A  visits  site

STEP  2

Data  on  User  A  (advertising  framesize,  Browser,  etc.)

DSP
A

Advertiser:  Beverage  Manufacturer

DSP
B

Advertiser:  Car  Company

DSP
C

Advertiser:  Real  Estate  Agent

Advertisers  bid  from  a  DSP,  auction  held  at  SSP
▶Advertising  from  the  winning  advertiser  is  displayed.
AuctionUser  A  is  served  a  real  estateadvertisement

DSP
A
DSP
B

SSP
Advertisingfrom  winning
advertiser  isservedAdvertiser  bid  data

DSP
C

Bids  ¥0.05  for  User  A

Beverage  Manufacturer

Car  Company

Bids  ¥0.07  for  User  A

WINReal  Estate  Agent

Bids  ¥0.09  for  User  A

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

32	

Comparison  of  “Bypass”  with  Other  DSPs
In  the  smartphone  RTB  advertising  market,  there  are  several  unique  DSPs  from  other  companies  including  a  new  entrant  but  “Bypass”  has  unique  features  that  diﬀerentiate  it  from  other  major  DSPs.

Comparison  of  “Bypass”  with  the  Other  Major  Smartphone  DSPs
Features  of  Supports  all  advertisers  whofocus  on  performance

Features  ofother  major
DSPs
Specialized  in  speciﬁc  business  categories  such  as  electronic  commerce

Focus  on  branding

Detailed  audiencetargeting  utilizing
an  abundant  advertisinginventory

Focus  on  distribution  method  such  as
specializing  in  retargeting

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

33	

VisionBecome  the  leading  internet  ﬁrm  in  Japan

MissionCreate  new  value  through  continued
challenges  and  contribute  to  society

Copyright  ©  UNITED,  Inc.  All  Rights  Reserved.

34