Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

•Copyright © UNITED, inc. All rights reserved.

Interim dividends will be paid based on our dividend policy “targeting consolidated dividend
payout ratio of approx. 20%”

Outline of Interim Dividend
FY2017
InterimDividend

FY2016
Term-end
Dividend

Record Date

September 30,2017

March 31,2017

Dividend per
Share

￥5.00

￥8.00

Not yetdetermined

Total Dividends￥114million￥183million―Net Earnings perShare￥24.62￥40.16△￥2.63Copyright © UNITED, inc. All rights reserved.

FY2016
Interim
Dividend

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

926

1,239

3,811

1,113

2,889

1,068

1,338

Copyright © UNITED, inc. All rights reserved.

3530

2927
242519202323201919910161510501234567Copyright © UNITED, inc. All rights reserved.

8Features of “VidSpot”

Video Ad Distribution Flow

Maximize revenue and profit led byincreasing video ad transactions
Video addelivery

Video addelivery

Provide video adspaces

Provide video
ad spaces

Increase the amount of ad delivery andimprove performance, triggered by expansionof high quality video ad inventories

Copyright © UNITED, inc. All rights reserved.

Provide

About “Live broadcast app
MAU reached over 33 million
Male : Female =ｃsupported by mainly younger audience

Largest class of live video broadcast platform in Japan

Copyright © UNITED, inc. All rights reserved.

••••

•

Copyright © UNITED, inc. All rights reserved.

Sales

New products

New products

Gross
MarginPresent
Copyright © UNITED, inc. All rights reserved.

Medium-term
illustration

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

447

572
453
672

537

461

5
39

94

114
123

530
368

359

162
341

148

177

143

713

622

244
351

278

Copyright © UNITED, inc. All rights reserved.

179

435

502

599

Copyright © UNITED, inc. All rights reserved.

•••

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

NEWCopyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

※ “U-START”: Our start-up support system for employees with high entrepreneur spirit
who had outstanding performance record

Company Outline
Name

COINAGE, Inc.

Company
Representative

CEO Ryohei Yamazaki

Paid-in Capital
Shareholders

10 million
United 67%, Ryohei Yamazaki 33%“U-START,” our start-up support system
An employee who was recognized foroutstanding performance in business
operation and planning/developmentof a new business

Our employee

Partial investment/ becomescompany representative
Establishment of a new company（Our consolidated subsidiary)
Copyright © UNITED, inc. All rights reserved.

Majority
investment

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

•

•

•
•

•

•
•

•

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Copyright © UNITED, inc. All rights reserved.

Factors of Our Ad Tech Business Growth
Our Ad Tech Business with unique features is continuously growing
Feature 1: Specializing in the smartphonesegment, a growing market< Estimate/forecast of programmatic market size by device (unit: 100 million yen) >Demand for Smartphone

Demand for PC

Feature 2: Open platform strategy
We have DSP and SSP within the company andhave direct contact with both advertisers andpublishers.
Advantages・Functions can be developed/improved from multiple viewpoints
including opinions of advertisers and media
・Trials and effect validation of new functions can be quickly
completed internally

2013

2014

2015

2016

2017

2018

(Source: Joint survey by VOYAGE GROUP/Seed Planning in August 2015)

Feature 3: Open platform strategy
Connection with external SSP & DSP has beenproactively promoted for our DSP & SSP since theservice launch in April 2012.

Advantages
DSP「Bypass」
・Accumulation of knowhow on bidding & CPA optimization logic
in smartphone DSP
・Quick adjustment to new distribution technique in smartphone
DSP

SSP「adstir」
・The largest-scale inventory of smartphone ads in Japanacquired from the early stage of thestart of the services ahead of other companies
・Quick adjustment to advertising format unique to smartphone

Advantages
・DSP & SSP grew as products by winning in fierce market
competition
・Both market expansion and competitor increase can be usedadvantageously→ Example: New competitor entry in DSP segment leads to thescale expansion of SSP

Copyright © UNITED, inc. All rights reserved.

The scale of the video ad market has been expanding and is forecasted to reach ￥230
billion in 2020, approx. 80% of which will be video ads for smartphones【The Scale of Japanese Video Ad Market (by device) 2015-2022】(unit: 100 million yen)

Smartphone

3,000

2,000
2,449
2,169
1,883
1,548

1,000

1,206
895
576
297

0

238

266

283

324

378

426

456

469

2015年
2015

2016年
2016

2017年
2017

2018年
2018

2019年
2019

2020年
2020

2021年
2021

2022年
2022

Source:Online Video Research / Digital InFact

Copyright © UNITED, inc. All rights reserved.

Flow of RTB Advertisement
Flow of RTB Advertisement Transaction until Closing [(1) to (4) below take place
within 0.05 second](1) Impression occurs(2) Through SSP, device (browser) information such as frame size and user ID is sent to DSP
as a bid request(3) Based on information of the bid request, an auction takes place at a preset price within
DSP, selecting the advertiser with the highest bidding price(4) The advertiser with the highest bidding price among DSPs wins the bidding and their ad isdisplayed
Biddingprice¥70

Advertiser

Media/User3

SSPDSP

¥80
¥60
¥50

3

¥90

4

¥70

12

¥80
¥60

SSP

DSP

3

SSP

DSP¥60Advantages for advertisers
Able to efficiently place ads for each impression
only to users they wish to display ads

Advantages for media
Able to offer ad space for bidding to multiple
advertisers and maximize profits

Copyright © UNITED, inc. All rights reserved.