Business Results for 4Q and Full
Fiscal Year September 2016
November 8, 2016

SEPTENI HOLDINGS CO., LTD.
www.septeni-holdings.co.jp/en/
Securities Code: 4293

©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

Index１．Quarterly Consolidated Earnings Overview
２．Internet Marketing Business３．Media Content Business
４．Full Year FY9/16 Review
5.

Policies for the Mid-Term Plan and FY9/17,
and Earnings Estimates for 1Q FY9/17

６．Appendix- From FY9/16, we have applied the IFRS in place of J-GAAP, and we present the results for FY9/15
by rearranging them on the basis of IFRS.
- We voluntarily disclose “net sales” in the past as reference information and disclose “revenue” as anindicator based on the IFRS. For revenue in Advertising Agency Sales, which make up most of theInternet Marketing Business, only the margin portion is posted as a net amount.
- To appropriately express the actual condition of business, we voluntarily disclose “Non-GAAP
operating income.” Non-GAAP operating income is a profit indicator of constant businessperformance determined by adjusting temporary factors, such as the amortization of intangible
assets that are recognized at the time of acquiring a subsidiary, impairment losses and gains orlosses on the sales of fixed assets from the IFRS-based operating income.
- The numbers in this material are rounded to the nearest unit.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

2

１．Quarterly Consolidated Earnings Overview©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

3

4Q (Jul-Sep) Consolidated Earnings Highlights

Revenue

Consolidated
results

Internet
MarketingBusiness

Media
Content
Business¥4,468mn（up 13.9% year on year）

Non-GAAP Operating Income ¥683mn（Down 32.8% year on year）
Operating income decreased due to the posting of a bad debt expenseand large-scale promotional programs for non-core business.

Revenue¥3,385mn（Up 6.8% year on year）

Non-GAAP Operating Income ¥1,335mn（Up 10.7% year on year）
A bad debt expense of ¥96mn was posted to cover doubtful accounts
receivable.Operating income stood at ¥1,431mn excluding the bad debt
expense (up 18.6% year on year).

Revenue¥196mn（3.0times year on year）

Non-GAAP Operating Income ¥-168mn（Down ¥18mn year on year）
Revenue expanded, and Operating Loss reduced quarter on quarter.

©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

4Consolidated Income Statement (Jul-Sep)
Revenue did not increase as expected, and a bad debt expense of ¥96mn was posted to coverdoubtful accounts receivable in the Internet Marketing Business.
In Non-core business, Non-GAAP operating losses stood at ¥371mn due to the implementationof large-scale promotional programs for a game. In addition, an impairment loss of ¥177mn
was posted pertaining to investments from a limited liability partnership.
４Q FY9/16

４Q FY9/15

Value

Share

Revenue

4,468

100.0%+13.9%

3,922

100.0%

4,750

Gross Income

3,459

77.4%

+6.7%

3,243

82.7%

―

SG&A

2,777

62.2%

＋24.6%

2,229

56.8%

―

Non-GAAP
Operating Income

683

15.3%

－32.8%

1,017

25.9%

850

Operating Income

565

12.7%

－0.7%

569

14.5%

―

Profit for the period fromcontinuing operations

206

4.6%

－14.2%

240

6.1%

―

Profit for the period
attributable to ownersof the parent

477

10.7%

＋54.1%

309

7.9%

654

【Reference】Net Sales

19,127―+3.7%

18,437―

20,400（units：¥mn）

YY Change

４Ｑ FY9/16
Estimate

Value

Share

©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

5

Quarterly Consolidated Earnings Trend (by Business Segment)
The total Non-GAAP operating income of Core businesses increased 10.5% year on year.
25.9%

4,850

（units：¥mn）
4,350

Revenue

Operating margin(relative to revenue）

24.3%

3,940

3,922

25.4%

3,350

20.0%

147

116

66

25.0%

943

1,001

632
625

4,468

4,181

3,850

714

25.5%

4,471

196

142

15.3%
15.7%

2,850

15.0%
2,350

1,850

3,169
1,350

Non-GAAP
Operating Income

1,017

3,245

3,416

958

1,061

108

66
Core
Business

850

1,413

1,258

1,206 1,056

3,385

3,364 1,138

1,325

1,144

683

1,335

10.0%

1,167

350

-150

-150

-14 -194
-93

-105

-49

-176

-181
-114

-128

-168
-371
-112

-650

4Q
15/4Q

2Q16/2Q

1Q16/1Q

2015/9期
Internet Marketing

Media Content

3Q16/3Q

2016/9期
Non-core（AXEL
MARK）

5.0%

0.0%

4Q16/4Q

Adjustment (corporate expenses, etc.)*The statement of intersegment revenue elimination is omitted, so the sum of revenues in each business does not match
consolidated revenue (underlined numbers).
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

6

Quarterly Consolidated SG&A Trend
Rose ¥548mn year on year, mainly due to increases in advertising expenses
and other (bad debt expense).
2,777（units：¥mn）
2,500

2,281

2,229
2,000

2,413

2,333

450

→Bad debt
expenses：96483→Non-core：373

348

310

359

369

107

108

130

245

262

256

1,567

1,552

1,578

1,646

1,587

4Q

1Q

2Q

3Q

4Q

158
262

257

1,500

1,000

500

0

2015/9期
FY9/15

FY9/16
2016/9期

Labor costs

Rent expenses, etc.

Advertising expenses

others*The booking rules have changed by transferring some of the labor costs in the Internet Marketing Business to costs and terminating theamortization of goodwill as a result of applying the IFRS (numbers are presented by rearranging them of 4Q FY9/15).
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

7

２．Internet Marketing Business©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

8

Internet Marketing Business Earnings Overview
Business remained firm in Japan but sluggish overseas due to a decrease in advertising
for large-scale projects.
Overall transactions and revenue did not increase as expected.
The operating margin increased despite the posting of ¥96mn as a bad debt expense tocover doubtful accounts receivable.
Operating income stood at ¥1,431mn excluding the bad debt expense (gross margin:
42.3%; increase in the margin: up 18.6%).
Earnings from the transactions of advertisement products offered to LINE
increased as expected.
４Q FY9/16
Value

Share

Revenue

3,385

100.0%

Gross Income

3,096

SG&A
Non-GAAP
Operating Income（units：¥mn）【Reference】Net Sales

４Q FY9/15
Value

Share

+6.8%

3,169

100.0%

3,563

91.5%

+5.3%

2,940

92.8%

―

1,763

52.1%

＋1.5%

1,738

54.8%

―

1,335

39.4%

+10.7%

1,206

38.1%

1,456

―

+2.7%

17,738―18,211YY Change

４Ｑ FY9/16
Estimate©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

9

Internet Marketing Business Quarterly Earnings Trend
The operating margin remained at a high level in 16/4Q despite the posting of ¥96mn
as a bad debt expense.
41.4%（units：¥mn）（金額単位：百万円）

38.1%

39.4%

39.4%

38.8%

40.0%

3,000

30.0%

2,000

3,416

3,245

3,169

20.0%

3,385

3,364

1,000

1,258

1,206

1,413

10.0%
1,325

1,335

0

0.0%

15/4Q

16/1Q
Revenue
収益

16/2Q

Non-GAAP
Non-GAAP営業利益
Operating Income

16/3Q

16/4Q

Operating margin (relative to revenue）
営業利益率（対収益）©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

10

Results of Internet Marketing Business Focus

MobileSocial（Volumes of smartphone advertising）

Global()

Sum of volumes for Facebook,
Twitter, LINE and Instagram¥4.0bn¥14.0bn(

Sum of volumes for overseas customers
and volumes of distribution of domestic
customers for overseas¥1.9bn（YonY＋12%）（YonY＋15%）)（YonY－46%）

10.2
10.2

21.8%

%
%

76.8%
（units：¥100mn）
15/4Q

16/1Q

16/2Q

16/3Q

16/4Q

15/4Q

16/1Q

16/2Q

16/3Q

16/4Q

15/4Q

16/1Q

16/2Q

16/3Q

16/4Q

121

122

136

142

140

35.5

34.0

39.3

41.2

39.6

34.5

31.1

19.0

21.8

18.5

*1. The numbers in the pie chart show the percentage of ¥18.2bn, the overall business sales (volumes) in this quarter.
*2. The volumes in each area include an overlapped portion.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

11

Internet Marketing Business New Focus
Volumes related Application

Video advertisingof Advertisement( Volumes)
promoting application※Volumes in 4Q/2015=100（units：¥100mn）
525
500

5.0

QonQ

475

0.0

＋76%

450
425
400

375
350
325
300

52.0

55.6

56.5

55.6

55.5

275

532

250
225
200
175
150

270

125
100

169

75
50

303

100

25
0

0.0

15/4Q

16/1Q

16/2Q

16/3Q

16/4Q

15/4Q

16/1Q

16/2Q

16/3Q

16/4Q

©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

12

Internet Marketing Business Topics
GlobalLion Digital Global LTD (Lion & Lion), a top-ranking
digital agency in Southeast Asia, was made asubsidiary (in October 2016).

The global network expanded to 14 bases in 8 countries.
The aim is to expand operation after FY9/2017.

Outline of Lion & Lion
Date ofestablishment

June 2012
・Kuala Lumpur, Malaysia

Operation bases

・Jakarta, Indonesia
・Hong Kong
・Singapore

Sales
Number of
employees
Composition ofshareholders

Approx. 23 million US dollars(estimate for FY12/16)

Approx. 170
・The Company group: 96.01%(acquisition at a price ofapprox. ¥1.4 billion)
・Management: 3.99%©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

13

３．Media Content Business©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

14

Media Content Business Earnings Overview
In the Manga Content Business, the scale of platform expanded steadily
and advertisement revenue increased.
Other new businesses grew firmly.
Operating Loss in the Media Content Business reduced
from the previous quarter.
4Q FY9/16（units：¥mn）

Value

４Q FY9/15

Share

YY Change

Value

Share

４Q FY9/16
Estimate

Revenue

196

100.0%＋196.5%66

100.0%

185

Gross Income

114

58.4%

+495.8%

19

29.1%

―

SG&A

282

144.1%＋66.2%

170

257.1%―

Non-GAAP
Operating Income－168－85.8%

（－18）

－150

－227.7%－173©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

15

Media Content Business Quarterly Earnings Trend
Revenue expanded, and Operating Loss reduced quarter on quarter.
200（単位：百万円）（units：¥mn）

196
147

116

142

66
0

-150
-194

-176

-181

-168

-200

15/4Q

16/1Q
Revenue
収益

16/2Q

16/3Q

16/4Q

Non-GAAP Operating Income
Non-GAAP営業利益©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

16

Manga Content Business Overview
Sales of native advertising in the application “GANMA!AD” extended steadily.

Monthly page views and accumulated
application downloads of GANMA!

400

350

Total number
累計DL数（万）of DL(tenthousand）

13.5

monthly PV（100million）

12.0

9.2

Downloads

10.0

250

8.0

7.1

398

200

4.7

5.4

150

100

14.0

The number of
PV数（億）

Over 3.5million

300

Comic books published in this quarter

332

397

6.0

281
198

4.0

234

2.0

50

0

10月
Oct
2015年
2015

Jan
1月

0.0

4月
Apr

7月
July
2016年
2016

10月
Oct
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

17

４．Full Year FY9/16 Review©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

18

Full Year FY9/16 Consolidated Earnings Highlights

Consolidated
results

Revenue¥17,060mn（Up 19.6% year on year）

Non-GAAP Operating Income ¥3,841mn（Up 26.8% year on year）
Both Revenue and Non-GAAP Operating Income reached※
a new record high for the fifth consecutive year.

Internet
MarketingBusiness

Media
Content
Business

Revenue¥13,409mn（Up 20.8% year on year）

Non-GAAP Operating Income ¥5,331mn（Up 39.7% year on year）
Both business expansion and improvement profitability were achieved.

Revenue¥601mn（2.9times year on year）

Non-GAAP Operating Income ¥-718mn（Down ¥187mn year on year）
Revenue expanded centering Manga Content Business*Prior to FY9/14, comparison was made by calculating the numbers equivalent to those in the Japanese standards.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

19

Consolidated Income Statement (Full Year)
Achieved a significant increase in operating income on the back of profit growth in theInternet Marketing Business, which recovered losses caused by prior investments in theMedia Content business and Non-core business.
The dividend will be increased for the fourth consecutive year (to ¥16 per share) thanks toan increase in net income attributable to owners of the parent, offsetting a backlash to theincome (¥653mn) posted in the previous year as a result of the sale of the DM Business.
FY9/16（units：¥mn）

Value

Share

Revenue

17,060100.0%

Gross Income

13,623

SG&A

FY9/15YY Change

FY9/16
Estimate

Value

Share

+19.6%

14,267100.0%

17,34279.9%+18.9%

11,461

80.3%

―

9,803

57.5%

＋15.9%

8,457

59.3%

―

Non-GAAP
Operating Income

3,841

22.5%

+26.8%

3,030

21.2%

4,007

Operating Income

3,730

21.9%

+44.6%

2,579

18.1%

―

Profit for the period fromcontinuing operations

2,252

13.2%

+38.8%

1,622

11.4%

―

Profit for the period
attributable to ownersof the parent

2,519

14.8%

＋7.1%

2,351

16.5%

2,696

【Reference】Net Sales

76,401―+18.4%

64,548―77,675©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

20

Full Year Consolidated Earnings Trend (by Business Segment)
Revenue

Non-GAAP Operating Income

17,060(units: ¥mn)

3,200

14,267

3,841(units:
¥mn)
（百万円）

4,500

601

3,030
122

3,072
3,000

207

＋39.7%

5,331（-187）-718

3,816＋20.8%

1,500

13,409

11,096
0

-530
-378

-326
-447

15/通期
FY9/1516/通期
FY9/16-1,50015/通期
FY9/15Internet Marketing

16/通期
FY9/16Media Content

Non-core（AXEL MARK）

Adjustment (corporate expenses, etc.)*The statement of intersegment revenue elimination is omitted, so the sum of revenues in each business does not match
consolidated revenue (underlined numbers).
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

21

Internet Marketing Business Full-Year Review
Revenue

Non-GAAP Operating Income

Value（¥mn）

YY Change

Value（¥mn）

YY Change

Operating margin

YY Change

13,409＋20.8%

5,331＋39.7%

39.8%＋5.4ptEarnings- High-level growth was achieved in both the Mobile and Social media businesses.
- Net sales increased to ¥73.2 billion, raising the operating margin forsales for the fifth straight year to 7.3%.
Mobile- Earnings from the transactions of smartphone advertising grew approximately
40% year on year to ¥54.0 billion, accounting for approximately 74%.
- The market share rose, driven by the business of in-feed advertising.
Social- Transactions increased approximately 37% year on year, to ¥15.4 billion.
- Transactions of products related LINE surged.
Global- Transactions declined approximately 5%, to ¥9.0 billion, due to the impactof a decrease in advertising for large-scale projects.
- New bases were established in New York and Beijing.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

22

Media Content Business Full-Year Review
Revenue

Non-GAAP Operating Income

Value(¥mn）

YY Change

Value（¥mn）

YY Change

Operating margin

YY Change

601＋190.7%－718(－187)－119.4% ＋137.1pt

Manga Content Business- GANMA!, a manga content app., is spreading rapidly.
The latest cumulative downloads are 3,970,000 DLs, an increase of approximately
two times year on year. Monthly page views grew to as many as 1.35 billion PVs.

- Sales of GANMA! AD, a native advertisement in the application, commenced.
- Initiatives to commercialize the Company’s intellectual property.
Twenty-seven new works were published as books. A total of 43 independent
volumes were released, including sequels.

Other New Businesses- The medical platform business was included in the consolidated results from this fiscal
year, in addition to the platform businesses for recruitment and social contribution.
- Each business grew steadily.

©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

23

Midterm Business Policies（ FY9/14 to present ）Concept

Business Focus“Double profits”
MobileIncrease the share of highly
profitable businesses
Create a mainstay businesssecond to advertisingSocialGlobal©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

24

Midterm Business Policies（FY9/14 to present） - Concept“Double profits”

Operating income increased approximately 2.4 times in three years,
and profitability also improved.

4.7%

Operating Income（¥mn）

5.0%Operating margin on sales

4.2%
3.5%

approx.2.4times

3,841
3,030

2,259
1,593

0

FY9/14
2014/9期

FY9/13
2013/9期
J-GAAP

FY9/15
2015/9期

FY9/16
2016/9期

0.0%

IFRS（Non-GAAP Operating Income）©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

25

Midterm Business Policies（FY9/2014 to present) － Key Business

Mobile（Volumes of smartphone advertising）(

SocialGlobalSum of volumes for Facebook,
Twitter, LINE and Instagram

Sum of volumes for overseas customers
and volumes of distribution of domestic
customers for overseas) ()（units：¥bn）

approx.

approx.

approx.

16.5times

8.3times

5.1times
54.0
540

10.7
107

1.9
19
0

0

2013/9期
FY9/13

9.0
90

15.4
154

2016/9期
FY9/16

2013/9期
FY9/13

2016/9期
FY9/165
0.5
2013/9期
FY9/13

2016/9期
FY9/16* The volumes in each area include an overlapped portion.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

26

5. Policies for the Mid-Term Plan and FY9/17,
and Earnings Estimates for 1Q FY9/17©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

27

Midterm Business Policies（FY9/2017～)
Earnings target

Non-GAAP Operating Income：¥10bn
Basic policies

Expand advertising business globally
Enhance our own media
Invest in what comes after the smartphone©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

28

Midterm Business Policies（FY9/2017～)
Stance of each business

Expand advertising business globally

Internet
MarketingBusiness[Recognition of the environment in the market
for smartphone advertisements]
The domestic market is gradually going to mature.
Strong growth continues globally with an improved ecosystem.
[Domestic market]
By strengthening the position established in the field of smartphones/social media, the share will be expanded and profitability will be increased.
[Overseas market]
Both organic business growth and M&A will be the engine
for subsequent growth.

Enhance our own media
Media
Contents
Business

Development of GANMA! as the company's own medium that constitutes
the primary revenue sources of the group.
By expanding the scale of the company's own media, powerfulsegmental synergy with the Internet marketing business will be generated.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

29

Policies for FY9/17
Aim to increase operating income on a consolidated basis through the sustainablegrowth of the Internet Marketing Business, while at the same time making large
investments in the Manga Content Business to accelerate growth in and after the next
fiscal year.

Internet
MarketingBusiness- Aim to increase market share and improve profitability.
- Focus on expanding global business, video advertising and inhouse media.
- Establishment of the foundation for the monetization of the mangacontent businessMedia Content
Business

With measures for the profitability of the Manga Content Business ready for
implementation, large-scale marketing investments will be madein or after the second half to expand the user base of GANMA!.

- Additional investment of about 500 to 600 million yen annually
to increase the media scale to more than 10 million DL- KPI for monetization:
LTV(revenue from applications)> CPI(cost of traffic acquisition)

Non-core business→ Excluded fromconsolidated
financial statements- Some of the Axel Mark shares held by the Company will be sold in
November 2016.
- The ratio of voting rights will be reduced to less than 30% due tothe sale. Axel Mark will be excluded from consolidated companies
and become an equity method affiliate.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

30

[Reference] Retroactive corrections of P/L of FY9/16(revised statement after reclassification)

The retroactively corrected profits and losses of non-core businesses in FY9/16, which are to
be compared in the next fiscal year and thereafter with the businesses excluded from theconsolidated results, are presented after they are reclassified as discontinued businesses.

（units：¥mn）

Consolidated Income
Statement FY9/16

After retroactive
corrections (forecast)

Value

Share

Value

Share

Revenue

17,060100.0%

13,862100.0%

Gross Income

13,62379.9%

12,478

90.0%

SG&A

9,803

57.5%

8,350

60.2%

Non-GAAP
Operating Income

3,841

22.5%

4,147

29.9%

Operating Income

3,730

21.9%

4,154

30.0%

Profit for the period fromcontinuing operations

2,252

13.2%

2,717

19.6%

Profit for the period fromdiscontinued operations

－

－

△465

－

Profit for the period
attributable to ownersof the parent

2,519

14.8%

2,519

18.2%

【Reference】Net Sales

76,401―

73,203―©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

31

1Q（Oct-Dec） Consolidated Earnings Estimates
The Internet Marketing Business is expected to achieve an increase in revenue andprofit year on year.
In the Media Content Business, sales are expected to increase significantly year on year,
mainly on the back of the Manga Content Business, although the amount of the deficit
will remain unchanged due to the continuation of prior investments.
With the sale of Axel Mark, the Company expects to post ¥1.0 billion from discontinued
businesses as net income. Based on this assumption, profit for the period attributable toowners of the parent is expected to increase significantly.
（units：¥mn）

Earnings in 1Q
FY9/16

Earnings Estimatesfor 1Q FY9/17

Expected
growth rate

Revenue

3,315

3,700

＋11.6％

Non-GAAP
Operating Income

972

980

＋0.8％

Profit for the period
attributable to owners of
the parent

633

1,700

＋168.7％【Reference】Net Sales

17,26019,000＋10.1％* The numbers in the above results for 1Q of FY9/16 are presented after reclassifying non-core businesses as
discontinued businesses.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

32

1Q(Oct-Dec) FY9/17 Earnings Estimates by Business Segment

Revenue

Non-GAAP Operating Income

Earnings
in 1Q FY9/16

Earnings
Estimatesfor 1Q FY9/17

YY Change

Earningin 1Q FY9/16

Earnings
Estimatesfor 1Q FY9/17

YY Change

Internet
MarketingBusiness

3,245

3,529

＋8.8％

1,258

1,297

＋3.1％

Media Content
Business

116

207＋77.9％

△194

△195

（－1）

Eliminationor corporate

△47

△36

（＋10）

△93

△122

（－30）

Total

3,315

3,700

＋11.6%

972

980

＋0.8%

（units：¥mn）©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

33

Thank you for your interest!
Contact Information
SEPTENI HOLDINGS CO., LTD.
www.septeni-holdings.co.jp/en/
Corporate Planning, IR Division
TEL: +813-6857-7258 E-mail: ir@septeni-holdings.co.jp

All estimates, opinions and plans provided in this document are based on the best information available at the timeof the creation of this document on November 8, 2016 and we do not guarantee their accuracy. Therefore our actual
results may differ due to various unforeseen risk factors and changes in global economies.

©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

34

６．Appendix©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

35

Company Overview
As of September 30, 2016
Company NameSEPTENI HOLDINGS CO., LTD.

Representative

President and Representative Director Koki Sato

Headquarters

Sumitomo Fudosan Shinjuku Grand Tower, 8-17-1 Nishishinjuku,
Shinjuku-ku, Tokyo

Securities Code4293 (JASDAQ)

Business Realm

The holding company for a group of companies conducting primarily
Internet-related and other businesses

Established

October 29, 1990

Capitalization¥2,085 million

Shares Issued

27,728,300 shares (Including 1,784,831 treasury shares)

Consolidated
Workforce

930 full time employees, 1159 full time and contracted employees©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

36

Main Group Companies by Business Segment
Holding Company
SEPTENI HOLDINGS CO., LTD

November 8, 2016

Internet Marketing Business
SEPTENI CO., LTD

Internet ad agency/Providing
assistance for overallpromotions on internet

Septeni Asia Pacific Pte. Ltd.

Internet ad agency in Asia andPacific Ocean region

MANGO Inc.

SEM Operation Business

Septeni America, Inc.

Internet ad agency based in
North America region

Vasara Inc.

Internet ad agency

Septeni Europe Co.,Ltd

Internet ad agency based inEurope region

HighScore, Inc.

Social Media Marketing Support
Business

SEPTENI China Limited

Internet ad agency based in
China

Septeni Original,Inc.

Plannnig and development of
web service

SEPTENI TECHNOLOGY CO., LTD.

Web service development

SETPENI CROSSGATE CO., LTD.

Ad Network and Platform
BusinessJNJ INTERACTIVE INC.

Internet ad agency in South
Korea

Tricorn Corporation

CRM Service Business

Lion Digital Global LTD

Internet ad agency based inSoutheast Asia

Media Content Business
COMICSMART INC.

Manga Content Businessgooddo, Inc.

Platform business of social
contribution

ViViVit Inc.

Recruitment platform businessPharmarket, Inc.

Medical platform business

TowaStela, Inc.

Childcare platform business

New Business Development
SEPTENI VENTURES Co., Ltd.

©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

37

Business Model for the Internet Marketing BusinessComprehensive Marketing Support Services for corporations leveraging the Internet.
Internet advertising sales and provision of various web solutions, We will provide In-House Services
such as marketing platforms including an ad network and cloud-based CRM services.

Internet Marketing Business
Advertising
Sales

Advertising
Agency Sales

Advertising
Purchases

Internet Media Advertising

Distribution,
Display

Web Solutions
Clients
Solution
Provision• Website creation,
operations• Creative• SEO• Social media creation,
operations
etc

Campaign Implementation,
Operation, Effectiveness Measurement

Users

In-House Services
Service
Provision• Cloud based CRM
Systems• Advertising platforms• Internet media
etc

Information Dispatch©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

38

Business Model for the Media Content Business
The Manga Content Business engages in the cultivation and production of Manga
artists and the Manga distribution service for the purpose of planning and developing
our own intellectual property (IP).
In addition, the business develops platform-type businesses related to “recruitment,”“social contribution” and “medical services” as a new business born fromintrapreneurship.
Media Content Business
Manga Artists
Cultivation
Providing Works

Manga Content Business
Management of
Manga Artists

Manga Distribution
Service（GANMA!)

Distribution

Users
Corporation/
Group/
Medicalinstitutions

Provision of
information on job
seekers

Activity support

Provision of solutions
for medical
institutions

Recruitment platform business

Registration of
information

ViViViTSocial contribution platform businessSupport action
on the Internet

gooddoMedical platform businessPharmarket©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

39

Consolidated Statement of Financial Position

End FY9/16

End FY9/15

ChangeMain Change（units：¥mn）

Current Assets

26,26822,275 ＋3,993

3,712

3,360

＋352

Total Assets

29,981

25,635+4,346

Current Liabilities

14,191

13,097 ＋1,095

Non-current Assets

Non-current
Liabilities

744

Total Liabilities

14,935

13,343 ＋1,592

Total Capital

15,046

12,292 ＋2,754

Total Liabilities andCapital29,981

25,635 ＋4,346

247

＋497

Cash and deposits:＋3,786
Accounts receivable:＋165
Investment securities:＋153
Long-term deferred tax assets:＋121

Accounts payable:＋450
Income taxes payable:＋554
Long-term loans payable:＋509

Retained earnings:＋2,320
Capital surplus: ＋456

©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

40

Consolidated Statement of Cash Flows（units：¥mn）

Cash Flows fromOperating Activities
Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

End
FY9/16Main Changes

FY9/15

3,209

Profit before taxes from continuing
operations:＋3,847
Increase in operating receivables:＋450
Payment of corporate income tax: △1,597

1,874

△109

proceeds from sales of investment
securities:＋277
Purchase of securities:-197
Purchase of intangible assets:-△262

1,258

Increase (decrease) in loans payable:＋270
Changes in a parent’s ownership interest ina subsidiary that do not result in a loss ofcontrol:＋884
Cash dividends paid:△363

△124

801

Effect of Exchange Rate
Changes on Cash andCash Equivalents

△114

△1

Net Increase (Decrease)in Cash and Equivalents

3,786

3,007

Cash and Equivalents at
Term End

15,481

11,695©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

41

SEPTENI Group Workforce Number Trend

1000

800

1,144

1,159

1,002

1,022

1,031

86

88

79

79

79

138

147

132

131

133

54

58

36

43

48

755

769

771

866

866

15/4Q

16/1Q

16/2Q

16/3Q

16/4Q

600

400

200

0

Internet Marketing Business
ネットマーケティング事業

メディアコンテンツ事業
Media Content Business

Non-Core Business（AXEL MARK）

Holding Company©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

42