First Three Quarters Results Briefing
Year Ending June 30 2013

First Section, Tokyo
Stock Exchange (3730)

Financial Results
Topics (Subsequent Events)
Future Business Plan
Details of Financial Results
Reference
1

Overview of Third-Quarter Results for the Year Ending June 2013
 Consolidated: Double-digit growth in both net sales and ordinary income resulted inrecord earnings.
 Non-consolidated: An impairment loss was posted at a consolidated subsidiary (noimpact on consolidated results).
(Million yen)

Consolidated
Non-Consolidated

3Q (cumulative)of FY2013

3Q (cumulative)of FY2012

Net sales

13,023

10,719121.5%

16,80077.5%

Ordinary
income

3,162

2,557

123.6%

3,900

81.1%

Ordinary
income margin

24.3%

23.9%

+0.4 pt

23.2%―

Net income

1,964

1,365

143.9%

2,100

93.5%

Net sales

11,705

10,651109.9%

Ordinary
income

3,210

3,109

103.2%

Ordinary
income margin

27.4%

29.2%

-1.8 pt

Net income

1,463

1,754

83.4%

YoY

Full-year
forecast(Percentachieved)2

Changes in Quarterly Consolidated Results Achieved record quarterly sales. The ordinary income margin reached a record high after
the management integration with Yahoo Japan Value Insight Corporation.
(Million yen)
5,000
4,500

Net sales
売上高
Before the management
integration with
Yahoo Japan Value Insight
Corporation

Ordinary income
経常利益

Ordinary income margin
経常利益率
40.0%
4,660
35.0%

4,000
30.0%
3,500
3,000
2,500
2,000
1,500

26.4%
25.0%
20.0%
15.0%
1,230
10.0%

1,000
500
0

5.0%
0.0%

3

MACROMILL Strategy Map

Research
DomainOverseas
Business
DomainDatabase
DomainNew
Business
Domain4

Changes in Income and Cost Structure (Cumulative)

Nonconsolidated

3Q (cumulative) of
FY20133Q (cumulative) of
FY2012

Amount%Amount%Net sales

11,705100.0

10,651

100.0

Cost of sales

5,846

49.9

4,974

46.7

1,588

13.6

1,338

12.6

Personnel
Panelists andoutsourcing

3,401

29.1

2,847

26.7

Other

855

7.3

788

7.4

2,747

23.5

2,563

24.1

Personnel

1,515

12.9

1,548

14.5

Other

1,232

10.5

1,014

9.5

Ordinary
income

3,210

27.4

3,109

29.2

(Consolidated
ordinary income)

3,162

Net income

1,463

SG&A

Research

Overseas

DB

New

Investments in subsidiaries(Million yen)

3,210
3,109

-47

+101

3,162

FY20123Ｑ

FY2013
3Ｑ

NonConsolidated
Ordinary
IncomeNonConsolidated
Ordinary
IncomeConsolidated
Ordinary
Income

29.2%

27.4%

24.3%

FY2013
3Q

2,557
12.5

1,754

16.5

5

Change in Sales Breakdown by Category (Non-consolidated)
 Sales increased in all categories except advertising agencies, and rose
especially sharply in the following categories: Research companies, consulting firms
 Food & beverages
 IT/Telecommunications(in descending order of sales)

Research

OverseasDBNew+ ¥510M (up 32.0% year on year)+ ¥280M (up 18.3% year on year)+ ¥220M (up 20.6% year on year)(Million yen)
Figures in parentheses show
percentages of total sales.

¥11,705M¥10,651M
Advertising agencies
広告代理店
Research
調査会社・コンサル

companies, consulting
firms
General companies
一般事業会社
Government
官公庁・協会・学校等

agencies, associations, schools, etc.

356
334

(3.0%)(3.1%)

6,886

7,749

(64.7%)(66.2%)

1,621

2,140

(15.2%)(18.3%)

1,810

1,458

(17.0%)(12.5%)

3Q of FY2012(Nine months)

3Q of FY2013(Nine months)
6Breakdown of Changes by Service (Non-consolidated) Increased sales in almost all services, especially the following: QPR Service
 Global Research(in descending order of percentage)+34.7% year on year
+27.0% year on year

Research

Overseas

DB

New(Million yen)
Service

Automatic research

3Q (cumulative)of FY2013

3Q (cumulative)of FY2012

%

%

YoY

6,229

53.2

5,727

53.8

108.8%

Tabulation

734

6.3

658

6.2

111.4%

Analysis

1,223

10.5

1,046

9.8

116.9%

Qualitative research

1,034

8.8

905

8.5

114.3%

Customized research

979

8.4

1,057

9.9

92.6%

Global research

508

4.3

400

3.8

127.0%

QPR

684

5.8

508

4.8

134.7%

Other services

311

2.7

347

3.3

89.9%

11,705100.0

10,651100.0

109.9%

Total* Changed the disclosure classification since the quarter under review. The quarterly year-on-year comparison has been adjusted to the new classification.
* Other Services include the mobile research service.

7

Results for Overseas Subsidiaries

Research
DomainDatabase
DomainOverseas
Business
DomainNew
Business
DomainMACROMILL EMBRAIN (South Korea)

3Q
3Q(cumulative) (cumulative)(Million yen) of FY2013
of FY2012

MACROMILLEMBRAIN(South Korea)
MACROMILL
China(China)YoY

767 147.6%

Net sales

1,133

Ordinary
income102―

Net sales153

50 303.6%

Ordinary
income

1

(*)

(*)

-92

―

―

* Business results of MACROMILL EMBRAIN were incorporated
into consolidated results starting in April 2012

 Achieved the income target by holding down costs and selling, general andadministrative expenses. Net income improved sharply from a year ago.
 Strengthened the sales system through an organizational change.
MACROMILL China (China)

 Cumulative sales exceeded the target. Quarterly income moved into positive territory
for the first time.
 Repeat orders increased from Japanese companies’ subsidiaries and affiliates in China.
8Financial Results
Topics (Subsequent Events)
Future Business Plan
Details of Financial Results
Reference9Change in CI
Our corporate identity was changed on April 1, 2013.

｜Logo markOur new logo employs an arrow motif. Arrows point in four directions and form the letter M, which is the first letter of
MACROMILL. The color is “MACROMILL blue,” which has been our corporate color since our foundation.
This logo indicates MACROMILL’s two purposes:
Client’s arrows
The aim of our innovative services is to positively impact customers’ solutions and help them move in
new directions.
Macromill’s arrows
We aim to advance and grow, not only in the Internet research business—especially in Japan—but also ina wide variety of marketing fields.

｜Tagline

Our new slogan, “Innovation or Nothing,” indicates our determination to use all our resources to produce innovations.
We will always remember this slogan.

10New Service Launch (1)We launched a long-tail promotion service, misecolle.

｜User concept

To collect restaurants and stores andcompile helpful information.

Android version

Launch on
April 15

iPhone version

To be launched in
the summer

Web version

To be launched in
the summer Getting information about the places you often go Receiving information on the best deals from theseplaces Discovering new places｜Client concept

To only send information to the people you want to send
it to.
 Improving your ability to pull in customers by only targeting your “fans”
 Increasing your recognition by getting fans to share information through SNS
 Easily measuring the effects of sales promotions using the marketing data provided
 Low-price service, ¥5,000 per month (minimum)

11

New Service Launch (2)｜Original business idea

｜Current coupon services

Places you havenever visited｜What is desired

Push-type service
Company
User

Can’t target certain customers or disseminate
information to a large number of consumers.
Hard to find coupons for the places you want to go.

Places you
often visit

Pull-type service
Company

Wants to cut promotion costs by only sending
information to the people who need it.

User

Only want to get information on the best deals at
the places you often visit or are interested in.

 Instead of the current services, which put the sender’s convenience before
that of the user, we want to create a service platform triggered by users’ needs.
12New Service Launch (3)｜TargetPromotion
BudgetEntire market is targeted by promotions(actual and potential customers)
Market covered by current services
Market targeted by misecolle

Long tailNumber of businesses
and storesNot only are restaurants included, but also various commercial establishments such as
convenience stores, beauty salons, and clothing stores.

 MACROMILL is applying to promotions the innovations it has created throughInternet research.
By lowering prices, MACROMILL is looking to develop a long-tail market.
13

Financial Results
Topics (Subsequent Events)
Future Business Plan
Details of Financial Results
Reference14

Development of Existing Domestic Businesses
Research

Overseas

DB

New｜Market research Organization and cost structures will be reviewed for
qualitative research and overseas research.
 Collaboration between organizations will be promoted tomaximize synergy with the database business.

｜Database Services will be expanded and public relations will beenhanced to boost sales in the QPR business.
 Preparations for data collection using smart devices will
begin.
 The consideration of the ID-POS business will continue.

15

Development of Overseas Business｜South Korea (MACROMILL EMBRAIN)

Research

Overseas

DB

New Actively hire salespeople and develop a sales support system.
 Restructure the product portfolio to increase profitability.
｜China (MACROMILL China, Shanghai UC)
 Bolster the internal operational structure and promote proposals
to businesses in Japan and China.
 Strengthen ties with Shanghai UC and encourage cooperation insales promotion services.
｜North America (new area)
 Continue to aggressively seek out M&A opportunities.

16

Development of New Businesses｜Misecolle promotion service

Research

OverseasDB

New Step up promotions to increase the number of users assoon as possible.
 Start sales and promotional efforts to attract clients.

 Accelerate the development of an iPhone version and a Web version.
｜DIY Research service- The customer creates survey forms and distributes and collects them itself.
- DIY Research can be conducted faster and more easily than existing Internet research.
- MACROMILL is developing this service to complement and strengthen its existing
businesses.

 To make DIY Research a major service in MACROMILL’s overseas
operations, MACROMILL increased its staff and strengthened its
system in April.
 The service is steadily being developed and is expected to belaunched this fall.
17

Group Performance Targets (2012 – 2014)(Million yen)

FY2012(achieved)

FY2013(forecast)

FY2014(forecast)

Consolidated
net sales

14,22916,80020,000Ordinary income

2,975

3,900

4,700

Ordinary income rate

20%

23%

24%

18

Financial Results
Topics (Subsequent Events)
Future Business Plan
Details of Financial Results
Reference
19

Third-Quarter Results for the Year Ending June 30, 2013
(Cumulative, Standalone)

Third quarter (standalone)(January 1 – March 31)

Third quarter (cumulative)(July 1 – March 31)

FY2013

FY2013

FY2012YoY

FY2012Full-year forecast(July 1 – June 30)(Percentachieved)

YoY

Consolidated

Net sales

4,660

3,917

119.0%

13,023

10,719121.5%

16,80077.5%

Ordinary income

1,230

980

125.4%

3,162

2,557

123.6%

3,900

81.1%

Ordinary income margin

26.4%

25.0%

+1.4 pt

24.3%

23.9%

+0.4 pt

23.2%

―

701

565

124.2%

1,964

1,365

143.9%

2,100

93.5%

Net sales

4,268

3,891

109.7%

11,705

10,651109.9%

Ordinary income

1,301

1,258

103.4%

3,210

3,109

103.2%

Ordinary income margin

30.5%

32.3%

-1.8 pt

27.4%

29.2%

-1.8 pt

233

713

32.7%

1,463

1,754

83.4%

Net income* Reference
Nonconsolidated

Net income

20Unit Price and Number of Active Client Companies,
Active Servers, and VIP Clients

FY2012FY2011
Indicator

Unit

Quarterly average unit price(*1)
per order

FY2013

4Ｑ(Fullyear)

4Q
1Q

2Q

3Q

(Fullyear)

1Q

2Q

3Q

¥ ten
thousand

75.5

78.3

79.7

83.7

77.2

77.9

81.6

84.5

¥ ten
thousand

49.8

52.5

52.0

54.9

49.7

50.8

52.6

56.5

¥ ten
thousand

78.7

81.3

83.3

87.5

80.7

81.7

85.2

88.2

Companies

1,895

985

1,371

1,711

1,924

996

1,465

1,816

Servers

6,067

2,485

3,988

5,382

6,327

2,672

4,290

5,786

(*3) Companies

229

254

256

251

249

281

265

280

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

(53)

(61)

(63)

(67)

(64)

(67)

(74)

(78)

Quarterly average unit priceper order (automatic research
only)

(*1)

Quarterly average unit price(*1)
per order (for reference)
Number of active client(*2)
companies (annual)
Number of active servers(*2)(annual)Number of VIP clients*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 research were
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 becalculated 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 thequarter.
*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

21

Status of Personnel
FY2012FY2011
Indicator
Number of employees(consolidated)*1
Number of employees(non-consolidated)*1

Unit

FY2013

4Ｑ(Fullyear)

4Q
1Q

2Q

3Q

(Fullyear)

1Q

2Q

3Q

People

557

566

594

735

768

788

790

803

People

542

541

550

560

582

567

579

603

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

*2 As of March 31, 2013*3 36 new graduates will join the company in April 2013

 Breakdown of personnel by job type
Sales
164 (including 25 assistants)

Operations
120

Researchers
139* Executive officers and those at higher levels, employees on leave are not included.
* As of April 1, 2013

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

 Number of employees at consolidated subsidiaries 211  200
M-CUBE:14  13
M-WARP:
14  0 M-WARP merged with MACROMILL on April 1, 2013 as the effective date.
Macromil China:
22  20
MACROMILL EMBRAIN: 153  158
M-PROMO:
8922

Status of Panelists
FY2012FY2011
Indicator

Unit

MACROMILL Panelists

TenthousandpeopleFY2013

4Ｑ

4Q(Fullyear)

1Q

2Q

3Q

(Fullyear)

1Q

2Q

3Q

104.0

105.9

107.1

108.6

109.5

110.7

112.2

113.6

* As of April 1, 2013

PC Panelists

Mobile Panelists

MACROMILL
Panelists

Yahoo!
Research Panelists

Cooperating mobile
monitors

1.13M people

1.46M people

0.31M people(including smartphone
panelists)(Mobile here refers to feature phones only)23Changes in Balance Sheets (Consolidated)
 Considering investments including M&A for new business andoverseas business expansion
 To actively promote business expansion to establish a new pillar of
business using cash generated in existing business domains

Total assets¥18.7bn

Cash anddeposits¥8.4bnTotal liabilities¥8.8bnCB¥5bn

Net assets¥9.8bnEnd of June 2012

Total liabilities¥8.4bnTotal assets¥19.8bn

Cash anddeposits¥7.4bnCB¥5bn

Net assets¥11.3bn

End of March 201324

Financial Results
Topics (Subsequent Events)
Future Business Plan
Details of Financial Results
Reference25Company History & Business Results
April 2012
Dentsu MACROMILL
establishedFebruary 2012
Major investment in South
Korea’s EMBRAIN (now
MACROMILL EMBRAIN)
2010年8月(Million yen)

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
Successor to marketing research
吸収分割により承継
business of Yahoo Japan Value
Insight Corporation byabsorption-type demerger

14,22912,210April 2005
January 2004
Listed on MOTHERS
market of theTokyo Stock Exchange

Transferred to 1st Sectionof Tokyo Stock Exchange

5,179

August 2000
AIRs completed,
operations start-up

3,613
2,077
1,259

851

379
29

7,353

6,392

January 2000
Company established

106

7,755

7,413

1,653

1,984

2,157

FY2007/6(Consolidated)

FY2008/6(Consolidated)

1,753

2,135

2,522

2,975

614
201

-87
FY2001/6(NonConsolidated)

FY2002/6(NonConsolidated)

FY2003/6(NonConsolidated)

FY2004/6(NonConsolidated)

FY2005/6(NonConsolidated)

FY2006/6(Consolidated)

FY2009/6(Consolidated)

FY2010/6(Consolidated)

FY2011/6(Consolidated)

FY2012/6(Consolidated)

26

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.
…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 tietie-up
panelists)(6) Generate data for delivery(7) Deliver research
results(5) Offer reward points
panelists (real time)- Overseas researchpanelists- Member lists ofclients
…etc.
…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 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.

27

Share Information
As of December 31, 2012
Total number ofauthorized shares
Total number ofissued shares

Ownership(%)

Yahoo Japan Corporation

7,071,100

22.90

Vanillasky Corporation

2,402,000

7.78

Goldman Sachs International

2,327,568

7.54

Japan Trustee Services Bank, Ltd.
(Trust account)

1,186,400

3.84

Tetsuya Sugimoto

912,400

2.95

The Master Trust Bank of Japan, Ltd.
(Trust account)752,900

2.44

Yasunori Fukuha

709,600

2.30

Goldman Sachs & Co. Regular Account680,700

2.20

Satoshi Shibata

572,000

1.85

INTEC Inc.

514,400

1.67

83,712,000
30,882,400

Number of shareholders

8,831
100

Round lot
Financial
products traders
0.65%
Treasury stock
9.77%

Individuals, others
28.37%

Other
corporations
33.39%

Number ofshares held

Major shareholders

Financial
institutions
11.05%
Overseas
corporations, etc.
16.77%

Note 1. The Company’s total treasury stock ownership of 3,016,600 is not included in the list ofmajor shareholders above.
Note 2. The ownership ratio is calculated based on the number of sharesissued.
Note 3. Vanillasky Corporation listed above is represented by director Tetsuya Sugimoto.

28

(Reference)
Status of Capital/Business Alliances, Group Companies

Consolidated subsidiaries
Domestic

Overseas

Equity-method affiliates

Dentsu MACROMILL
 40.0% stake

Construction of QPR panels
Collection of consumer purchase data
Shareholders:
Hakuhodo DY Holdings Inc. etc.

Integration of EMBRAIN and
MACROMILL Korea (August 2012)

Capital/business alliances
Shanghai United-Cities Industry
Co., Ltd.
 6.9% stake

Marketing support business using theInternet
Sales launched in March 2012

Research business in China
Sales launched in September 2011

Business alliances

Dentsu marketing insight29

Cautionary Statement

MACROMILL does not guarantee the accuracy of theinformation contained in this presentation, which reflects
judgments made by 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 theperformance and results in this presentation may differ from
MACROMILL’s actual performance and results.
Inquiries regarding 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

30