“Zappallas, the spirit inside you.” · Utilize the fortune-teller network with about 100...
Transcript of “Zappallas, the spirit inside you.” · Utilize the fortune-teller network with about 100...
Tokyo Stock Exchange First Section: Code No. 3770
ZAPPALLAS, INC.ZAPPALLAS, INC.
““ZappallasZappallas, the spirit inside you., the spirit inside you.””
MidMid--term vision term vision for the business management of for the business management of ZappallasZappallas
5,319
6,939
8,551
10,308
11,225
7661,251
1,8712,709 3,016
0
2,000
4,000
6,000
8,000
10,000
12,000
FY2006 FY2007 FY2008 FY2009 FY2010
Net Sales Operating income
(C)2010,Zappallas,Inc.All Rights Reserved. 1
In the term ended April 2010, our company increasedsales and profit continuously, but growth rate is edging down.
BackgroundBackground
(millions of yen)
↑30%
↑23%
↑21%
↑9%
◆
◆
◆
◆
◆
◆
◆
◆
◆◆
↑63%↑50%
↑45%
↑11%
0.0
50.0
100.0
150.0
200.0
250.0
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010
Fortune-telling Decome Standby Hobbies, games
(C)2010,Zappallas,Inc.All Rights Reserved. 2
【Reference】 The number of subscribers to our fee-based contents, which had been growing, decreased from the previous year for the first time in the term ended April 2010.
(10,000 peoples)
216.0218.6
190.1
140.1
97.7
67.7
↑44%
↑43%
↑36%
↑15%
↓1%
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◆
◆
◆
◆
◆
By increasing advertising costs, the number of Decome subscribers increased, but the number of fortune-telling subscribers did not change, and the number of subscribers of other services decreased.
(C)2010,Zappallas,Inc.All Rights Reserved. 3
The growth of “fortune-telling” and “Decome” markets in the official mobile field,which have been our core businesses, became sluggish .
Due to the saturation of the quantity of sites, etc., the “fortune-telling” market, which had been growing steadily, is now sluggish.
The “Decome” market, which had been growing rapidly is expected to be slow growth. It is become charge-free models are distributed and contents provider excessiveness.
The future growth of the official mobile market is uncertain, due to the growth of smartphones and the substitution of the unofficial market, including Moba-ge, Gree, and mixi.
It is imperative to shift business models, and develop the base for new businesses.
It is imperative to shift business models, and develop the base for new businesses.
103
123
158
182
200
214
55
116
171
0
50
100
150
200
250
2004 2005 2006 2007 2008 2009
Fortune-telling market Decorated email market(100 million yen)
1,000
2,000
3,000
4,000
5,000
(100 million yen)
2,663
3,150
3,666
4,272
4,835(Reference) Mobile contents market
(C)2010,Zappallas,Inc.All Rights Reserved. 4
In this situation, Zappallas aims to regain the sustainable growthearly, based on three basic strategies.
III. Diversify and strengthen our businesses (including overseas markets)
I. Improve the fortune-telling business thoroughly
II. Expand our business field
(C)2010,Zappallas,Inc.All Rights Reserved. 5
Win a dominating share in the field of fortune-telling,which is our strength business, as a base (i)
I. Improve the fortune-telling business thoroughly
I. Improve the fortune-telling business thoroughly
◆ Comprehensively produce the “fortune-telling” business, and make it profitable outside the mobile field.
Contents business
Utilize the fortune-tellernetwork with about 100 fortune-tellers, to comprehensively
produce the fortune-telling business!
Commercializedright (goods)
Broadcasting(terrestrial, CS)
Events, entertainment
Packages(CD, DVD)
Publication(magazines, books)
Digital(mobile, PC)
Promotion
Format sale Real(stores, commercial
Facilities)
Outside Japan
Screen right
Other PFSecondary use
Media businessGame productionright
Resale/business in related fields
(C)2010,Zappallas,Inc.All Rights Reserved. 6
Monetization through our own efforts
Monetization in cooperation with other companies and supervisors (revenue sharing and royalty models, etc. )
Conventional official mobile sites・・・・・・・・・・・・・・315 yen (monthly)Fee-based PC sites・・・・・・・・・・・・・・・・・・・・・・・・・1,000 -3,000 yen (every time)Mobile applications ・・・・・・・・・・・・・・・・・・・・・・・・・350 yen- (every time)
Publications ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・1,000-1,500 yen (per copy)
Games/DVDs ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・3,000 yen (unit price)
Goods ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・1,000-4,000 yen (unit price)
Lectures/performances ・・・・・・・・・・・・・・・・・・・・・100,000 yen (per lecture)Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ Event-related profit × ?% (every time)
Sale of imaging and character production rights・XX yenSale of rights outside Japan ・・・・・・・・・・・・・・・・・XX yen
Real fortune-telling・・・・・・・・・・・・・・・・・・・・・・・・・ 3,000-5,000 yen (every time)
【Reference】 Estimated profits under the assumptionthat a comprehensive fortune-telling business is produced
In this fiscal year, several contents will be comprehensively produced, and the profit source will be improved.
In this fiscal year, several contents will be comprehensively produced, and the profit source will be improved.
I. Improve the fortune-telling business thoroughly
I. Improve the fortune-telling business thoroughly
(C)2010,Zappallas,Inc.All Rights Reserved. 7
Win a dominating share in the field of fortune-telling,which is our strength business, as a base (ii)
◆ Optimize the customer-attracting method・ Optimization of advertisements, and sophistication and strengthening of SEO measures
◆ Optimize the subscriber analysis systemImprovement and optimization of the subscriber analysis system (subscriber database), which is one of our strengths.・ Increase subscribers・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Introduction of new attractive sites satisfying needs・ Promote subscribers to continue their subscription・・・・・・・・・・・・Development of contents that keep attracting customers ・ Promote subscribers to access other sites and register many sites
・・・Timely link to other sites that would meet needs via email magazines and our sites
◆ Keep introducing high-quality contents in the official contents field・ We plan to open 51 sites, exceeding the number in the previous term: 39 sites.
◆ Develop a new mobile system platform・ Develop a new platform by ourselves and introduce it by the end of this fiscal year, in order to double our
businesses efficiency.
◆ Rigorously review and improve the existing contents and services・ The revision of the charging system, the increase in subscription rate, the reduction in cancellation rate, and
the streamlining of site operation, etc. are in progress through over 20 projects.
I. Improve the fortune-telling business thoroughly
I. Improve the fortune-telling business thoroughly
(C)2010,Zappallas,Inc.All Rights Reserved. 8
Win a dominating share in the field of fortune-telling,which is our strength business, as a base (iii)
◆ Cope with the mobile platforms outside the official contents fieldUtilizing a variety of our fortune-telling services (91 services and 270 sites), we will expand our
businesses swiftly, targeting the platforms of other companies, such as Moba-ge-town and mixi, and smartphones, such as iPhone and Android-installed mobile phones, and then we will not miss any chances to obtain profit.
No. of applications
iPhone Dec. 2009 “TAROT READING (charge-free)”May 2010 “TAROT READING Premium (fee-paying)”May 2010 “TAROT READING Plus (charge-free)”
3 applications 350 yen per download
Android-installed mobile phones
Dec. 2009 “TAROT READING (charge-free)”Apr. 2010 Start of the supply to DoCoMo Marktet
1 application Charge-free only
Open platform Oct. 2009 Start of the supply of the mixi Apps. “Miku-Miku Aisho Uranai”Dec. 2009 Start of the charging for the mixi Apps. “Miku-Miku Aisho Uranai”Jan. 2010 Start of the supply of “Kyukyoku no Uranai Moba DX” to the Moba-ge open platform Apr. 2010 Start of the charging service for “Kyukyoku no Uranai Moba DX”Jun. 2010 Start of the supply of social game applications (scheduled)
2 applications 50-100 yen per menu
I. Improve the fortune-telling business thoroughly
I. Improve the fortune-telling business thoroughly
Timing of introducing contents, and their descriptions Charging system
(C)2010,Zappallas,Inc.All Rights Reserved. 9
II. Expand our business field
II. Expand our business fieldFrom now on, we will broaden our business range actively
while emphasizing the compatibility with the fortune-telling business, and aim to diversify our businesses.
--Policy for our future business domain--
III. Diversify our businesses
III. Diversify our businesses
III. Diversify our businesses
(where?)
II. Expand our business field(what business?)
(Expansion of target areas)
Outside Japan, such as China and other Asian countries
The business domainto be cultivated by Zappallas
I. Improve the fortune-telling
business thoroughly
(Official mobile)
(Fortune-telling)
(C)2010,Zappallas,Inc.All Rights Reserved. 10
Soul
Prediction
Divination
Enlightenment
Aura
Self-enlightenment
Genuine entertainment contents, which
follow their originalpractices and
cherish and appreciate nature (pristine states)
such as “fortune-telling”
Fields from which we will not aggressively approach
Broaden the concept of “fortune-telling”and extend it to closely related fields
--Policy for expanding our business field--
Spiritual power spot
Kippo-doriShrines and
sacred places
Spiritual power goods
Feng shui LOHAS Aroma
CompatibilitySoulmate
Natural Natural cosmetics
OrganicMedicinal
food
Aroma therapy
Slow food
Yoga
View of career
HealingDetox
World music
Fields to whichwe will advance actively
Learning
Travel
Lifestyle
Love
Food
Beauty
Body
Work/study
EntertainmentFields in w
hich our customers have som
e interests; our intrinsicfields
Know
-how to create contents, w
hich has been developed through the fortune-telling business
II. Expand our business field
II. Expand our business field
III. Diversify our businesses
III. Diversify our businesses
(C)2010,Zappallas,Inc.All Rights Reserved. 11
◆ We established a beauty business division, and plan toopen 15-20 new mobile sites in the term ending Apr. 2011.
The contents in the fields of “beauty,” “body,”and “life” are being improved.
◆ In May 2010, the new site titled “Natural Bijin Guide” was opened.
This mobile site helps customers become healthy and beautiful from the inside of the body, with the Indian practice “Ayurveda.” We support customers from the aspects of health and beauty, by checking individual constitutions based on Ayurveda, suggesting treatments for beauty and health, including diet and massage, according to constitution type menstruation cycle, season, and weather, and enabling customers to manage their health easily with their mobile phones.
HealingHealing
TherapyTherapy
BeautyBeauty
AromaAroma
II. Expand our business field
II. Expand our business field
III. Diversify our businesses
III. Diversify our businesses
(C)2010,Zappallas,Inc.All Rights Reserved. 12
Purposes of this siteChange our customers into true fans by enabling them to see, share, and agree with the world views of the contents operated by ZappallasStreamline the process of increasing new subscribers by concentrating promotion activitiesRetain our subscribers, and allow them to browse other contentsPromote our fee-paying subscribers to register for more than one contentAttract latent customers in different ways, through satellite sites
Flowchart of the streaming of subscribers
New site
Charge-free subscribers
Fee-paying subscribers (only 1 site)
Fee-paying subscribers (over 2 sites)
Those who have cancelled
New subscribers Existing subscribersSite for all of our subscribers
Email magazine
Promotion
Satellite sites
In addition, we will release a site for all of our subscribers, which include all business services of our company in this summer
Satellite sites
II. Expand our business field
II. Expand our business field
III. Diversify our businesses
III. Diversify our businesses
(C)2010,Zappallas,Inc.All Rights Reserved. 13
Mar. 2010Mar. 2010May 2010Jul. 2010 (scheduled)
Oct. 2010(scheduled)
The business alliance with iPeer was announced.The business alliance with GGwan and MMclick through the establishment of a corporation in Hong Kong was announced.The business alliance with Vogins was announced.The shipping of the chip for Zappallas applications (iPeer) will be started (trial shipping)The supply of the fortune-telling application “Mirai no Kiseki” through Kuro (iPeer) will be started.The shipping of the chip for Zappallas applications (Vogins) will be started.Establishment of a corporation in Hong Kong.The shipping of the chip for Zappallas applications (iPeer) will be started on a full-scale basis.
Price/■元
Price/■元
・menu setCPrice/■元
結婚運
金銭運
人生運
Images of the contents of the iPeer application “Mirai no Kiseki”
Efforts for monetize digital contents in the Chinese market◆ Start of contents distribution in China, based on the business alliance, etc. with Chinese firms
他アイコン
他アイコン
他アイコン
他アイコン
他アイコン
Terminal top page Kuro top page Menu page of “Mirai no Kiseki”
Fortune-telling page Confirmation of charging
Display of the results
We will keep emphasizing our business in ChinaII. Expand our
business fieldII. Expand our
business field
III. Diversify our businesses
III. Diversify our businesses
(C)2010,Zappallas,Inc.All Rights Reserved. 14
Net sales: 20 billion yen
Target consolidated sales and operating income 3 years from now
(100 million yen)
0
40
80
120
160
200
Term ending Apr. 2011 Term ending Apr. 2013
Net sales: 11.23 billion yen
Operating income:3.02 billion yen
Operating income:4.5 billion yen
Increase in net sales due to the expansion of our business field,
including beauty
Adding of overseas sales from contents distribution, etc. in
China
We will double sales in a medium term (in 3 years).
Increase in net sales due to the expansion
of the fields other than own portal and
mobile fields
(C)2010,Zappallas,Inc.All Rights Reserved. 15
Any business forecasts or other such items contained in this document, excluding reports of past performance, are assumptions based on the company’s classified management plans, information available at the timeof release, and uncertain factors affecting future performance. Actual performance may differ due to various factors.