FY2015-3Q Financial Results Briefing - DAC...FY2015-3Q Quarterly （Oct. 2015 to Dec. 2015）...

D.A.Consortium Inc.February 5, 2016

FY2015-3QFinancial Results Briefing

©2016 D.A.Consortium All rights reserved-1-

Table of Contents

Overview of Financial Results（Consolidated/Non-consolidated）

Business Trends

Key Measures


Overview of Consolidated Financial Results


FY2015-3QQuarterly

（Oct. 2015 to Dec. 2015）Accumulated

（Apr. 2015 to Dec. 2015）

Y on Y Y on Y

Sales 38,950 132.2% 103,501 119.7%

Gross Profit 5,256 120.3% 14,966 123.0%

Operating Income 1,424 174.6% 3,768 196.9%

Profit Attributable to Owners of Parent 717 152.4% 1,688 161.7%

EBITDA 1,653 160.0% 4,422 174.7%

Operating Margin* 27.1% +8.4pt 25.2% +9.4pt

Financial Highlights (Consolidated)

（Millions of Yen）

*Operating Margin＝Operating Income / Gross Profit

©2016 D.A.Consortium All rights reserved

FY2015 Business Forecast Upward Revision

-4-

FY2015（Apr. 2015 to Mar. 2016）

8/4 Forecasts Revised Forecasts Differences

Sales 135,000 143,500 +8,500

Operating Income 3,550 4,400 +850

Ordinary Income 3,550 4,400 +850

Profit Attributable to Owners of Parent 1,350 1,800 +450

Net Income per Share 27.80 37.07 +9.27



24,77623,555

27,28329,720 29,388

27,65729,456 30,960 31,674

32,875

38,950

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

-5-

FY2013 FY2015FY2014

Quarterly Sales（Consolidated）（Millions of Yen）


29,456

38,950

＋6,988

＋3,555＋802 △1,851

FY2014-3Q FY2015-3Q

＋9.49 Billions of Yen＋32.2％

DAC

irepUNITED

Increase Factor of Sales (Year on Year)


Elimination of internal

transactions and others


3,271 3,4153,653

4,052 3,920 3,877

4,3684,234 4,335

5,374 5,256

0

1,000

2,000

3,000

4,000

5,000

6,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

-7-

FY2013 FY2014 FY2015

Quarterly Gross Profit（Consolidated）（Millions of Yen）


FY2014-3Q Accumulated（Apr. 2014 to Dec. 2014）


Sales Sales(Millions of Yen) % Sales

(Millions of Yen) % Y on Y（％）

Internet-related Business 86,472 99.8 101,654 98.1 117.6Agent Domain 77,592 89.6 92,977 89.8 119.8Media and DAS Domain 10,628 12.3 10,079 9.7 94.8Adjustment between Domains △1,748 △2.0 △1,402 △1.4 －

Investment Business 155 0.2 1,934 1.9 x12.4TOTAL 86,628 100.0 103,588 100.0 119.6

Gross Profit Gross Profit(Millions of Yen) % Gross Profit

(Millions of Yen) % Y on Y（％）

Internet-related Business 12,054 99.1 13,082 87.4 108.5Agent Domain 7,695 63.3 9,212 61.6 119.7Media and DAS Domain 4,539 37.3 4,040 27.0 89.0Adjustment between Domains △180 △1.5 △169 △1.1 －

Investment Business 110 0.9 1,883 12.6 x16.9TOTAL 12,165 100.0 14,966 100.0 123.0

Results by Domain (Consolidated)




Sales（Millions of Yen）

Share（％）

Sales（Millions of Yen）

Share（％）

Y on Y（％）

Hakuhodo DY Group 40,027 46.3 52,235 50.5 130.5

Others 46,475 53.7 51,265 49.5 110.3

TOTAL 86,502 100.0 103,501 100.0 119.7

-9-

Sales to HDY Group and Others (Consolidated)


66.5

（16,465)60.8

(14,310) 59.6

(16,271) 56.5

(16,791)

58.1

(17,089) 50.3

(13,904)

52.6

(15,481) 50.1

(15,510)

50.3

(15,933)

50.5

(16,602) 48.1%

(18,730)

33.5

(8,310) 39.2

(9,244) 40.4

(11,012) 43.5

(12,929)

41.9

(12,299)49.7

(13,753)

47.4

(13,974) 49.9

(15,450)

49.7

(15,741)

49.5

(16,273) 51.9%

(20,220)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

HDYGroup

Others

-10-

FY2015FY2013 FY2014

Sales to HDY Group and Others (Consolidated)

（％ / Millions of Yen）


2,996 3,053 2,9963,365 3,310 3,389

3,5523,901

3,651 3,7143,832

12.1 13.0 11.0 11.3 11.3 12.3 12.1 12.6

11.5 11.3 9.8%

0

1,000

2,000

3,000

4,000

5,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

OthersPersonnelSG&A Expense Rate

2,099Number of Employees* 1,990-11-

FY2015FY2013 FY2014

Quarterly SG&A Expenses (Consolidated)


*Total number of directors, employees, temporary employees, etc.


275 362

657 686 610

488

815

332

683

1,659

1,424 8.4 10.6

18.0 16.9 15.6

12.6

18.7

7.9

15.8

30.9 27.1％

0

500

1,000

1,500

2,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Operating Income Operating Margin

-12-

FY2015FY2013 FY2014

Quarterly Operating Income（Consolidated）



466562

886 876803

694

1,033

556

891

1,877

1,653

0

500

1,000

1,500

2,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

-13-

FY2015FY2013 FY2014

Quarterly EBITDA（Consolidated）


*EBITDA＝Operating Profit + Depreciation + Amortization of goodwill


FY2014（As of Mar.31, 2015）

FY2015-3Q（As of Dec.31, 2015）

Amount（Millions of Yen）

% Amount（Millions of Yen）

% Comparisons（％）

Current Assets 36,049 82.1 42,232 81.1 117.2Non-current Assets 7,848 17.9 9,862 18.9 125.7

Total Assets 43,897 100.0 52,094 100.0 118.7Current Liabilities 20,345 46.3 26,581 51.0 130.6

Non-current Liabilities 553 1.3 425 0.8 76.8

Total Liabilities 20,899 47.6 27,006 51.8 129.2Shareholdersʼ Equity 13,467 30.7 14,162 27.2 105.2

Non-controlling Interests 7,584 17.3 8,500 16.3 112.1

Others 1,946 4.4 2,426 4.7 124.6Total Net Assets 22,998 52.4 25,088 48.2 109.1Total Liabilities and Net Assets 43,897 100.0 52,094 100.0 118.7

-14-

Balance Sheets（Consolidated）


FY2015-3Q（Apr. 2015 to Dec. 2015）

Cash flows from operating activities 3,638

Cash flows from investing activities △2,870

Cash flows from financing activities 1,093Effect of exchange rate change on cash and cash equivalents △13

Net increase (decrease) in cash and cash equivalents 1,848

Cash and cash equivalents at beginning of period 11,421

Cash and cash equivalents at end of period 13,270

-15-

Statements of Cash Flows（Consolidated）



Overview of Non-consolidated Financial Results


（※）オペレーティングマージン率＝営業利益÷売上総利益

-17-

FY2015-3QQuarterly

（Oct. 2015 to Dec. 2015）Accumulated

（Apr. 2015 to Dec. 2015）

Y on Y Y on Y

Sales 23,615 142.0% 62,076 129.5%

Gross Profit 1,988 147.8% 5,453 138.7%

Operating Income 473 255.0% 1,136 194.7%

Net Income 348 256.5% 1,147 134.3%

Operating Margin* 23.8％ +10.0pt 20.8% +6.0pt

Financial Highlights (Non-consolidated)


*Operating Margin＝Operating Income / Gross Profit


1,1031,038

944

1,427

1,165

1,4191,346

1,569

1,793

1,671

1,988

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

13,02112,509

14,846

16,871

15,39515,907

16,627

18,96718,84619,614

23,615

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Sales Gross Profit

-18-

FY2013 FY2014 FY2015 FY2013 FY2014 FY2015

Quarterly Sales & Gross Profit（Non-consolidated）

（Millions of Yen）（Millions of Yen）




Sales Amount（Millions of Yen）


% Y on Y（％）

Media Service 45,792 95.5 60,039 96.7 131.1

Technology Service 1,851 3.9 1,552 2.5 83.9

Investment &Operation Service 287 0.6 484 0.8 168.7

TOTAL 47,930 100.0 62,076 100.0 129.5

Gross Profit Amount（Millions of Yen）


% Y on Y（％）

Media Service 2,871 73.0 4,281 78.5 149.1

Technology Service 822 20.9 733 13.4 89.2

Investment &Operation Service 237 6.0 439 8.1 185.0

TOTAL 3,931 100.0 5,453 100.0 138.7

Results by Service（Non-consolidated）


Business Trends




Amount（Millions of Yen）


% Y on Y（％）

Display 32,621 71.2 43,693 72.8 133.9

Video Ad 2,565 5.6 6,694 11.2 260.9

Others 30,056 65.6 36,998 61.6 123.1

Search 8,828 19.3 11,417 19.0 129.3

Affiliate / Reward 3,773 8.2 3,992 6.6 105.8

Others 568 1.2 937 1.6 165.1

TOTAL 45,792 100.0 60,039 100.0 131.1

Sales breakdown by Ad Format（Non-consolidated）


9,334 8,746 10,01212,107

10,220 11,083 11,31713,854 13,463 14,170

16,059

2,309 2,288 2,680

2,599

2,986 2,804 3,037

2,964 3,061 3,295

5,059

509 491

1,225

1,116 1,351 1,005

1,417

1,125 1,272 1,271

1,448

12,399 11,868

14,194

16,14514,738 15,092

15,960

18,279 18,06418,973

23,001

0

5,000

10,000

15,000

20,000

25,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Others

Affiliate

Search

Display

-22-

FY2015FY2013 FY2014

Quarterly Sales by Ad Format（Non-consolidated/Media Service）



7,866

7,683

6,281

4,340

4,318

3,990

3,623

2,878

2,353

2,271

2,027

1,938

1,870

1,397

5,612

5,850

4,474

1,458

3,293

3,465

2,793

2,631

1,744

1,464

1,186

1,675

3,332

898

Transpotation equipment & supplies

Finance/Insurance

Commercial equipment/Office supplies

Internet information site

Transportation/Tourism/Entertainment

Foodstuffs

Cosmetics/Toiletries

Medical supplies

Beverages/Luxury foods

Department store/Trading company

Textile apparel & accessories

Real estate/Housing facilities

Telecommunications

Educational services/Universities

FY2015-3Q Accumulated

FY2014-3Q Accumulated

-23-

（4/2015〜12/2015）

（4/2014〜12/2014）

Quarterly Sales by Client Industry（Non-consolidated/Media Service）



14,738 15,09215,960

18,279 18,06418,973

23,001

25.2 24.3 18.9

22.8 20.4 21.7 20.0%

0

5,000

10,000

15,000

20,000

25,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q

Sales of DAC media Service (Non-consolidated)

Sales to Top100 Advertisers (Non-consolidated)

% of Sales to Top 100 in Total Sales

70 68 65 6860

70 68

0

50

100

1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY2014

-24-

FY2015 FY2014 FY2015

Quarterly Trend of Top100 Advertisers（Non-consolidated/Media Service）

*Top100Advertisers : By Nikkei Advertising Research Institute「AD SPENDING OF LEADING JAPANESE CORPORATIONS」

Quarterly Sales to Top100 Advertisers Number of Our Clientsin Top100 Advertisers

（Millions of Yen）（Companies）


4,930 5,164 6,356

4,3448,501 8,462

9,475 10,169

11,937 12,726

15,903

19.921.9

23.325.5

28.930.6

32.2 32.8

37.738.7

40.8%

0

4,000

8,000

12,000

16,000

20,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Smart Device Ad Sales Percentage of SD Sales

-25-

FY2015FY2013 FY2014

Quarterly Sales of Smart Device Ads（Consolidated）（Millions of Yen）


10,248 8,95210,365 10,286 10,735 9,460 9,386 8,778 9,905 9,751

11,276

1,524 1,623

1,904 2,238 2,521 2,731 3,087 3,611

3,673 4,305

6,260

1,435 1,230

1,642 1,843 2,466

2,237 2,557 2,471 3,249 2,947

3,542

13,22411,817

13,933 14,39215,763

14,463 15,070 14,90216,866 17,050

21,130

53.4 50.2

51.1 48.4

53.6 52.3 51.2 48.1

53.3 51.9 54.2%

0

5,000

10,000

15,000

20,000

25,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

DMPDisplay NetworkRTB and OthersSearch% in Total Sales

FY2015FY2014FY2013

Quarterly Sales of Programmatic Ads（Consolidated）



Sales OperatingIncome

IREP Co., Ltd.

UNITED, Inc.

HAKUHODO i-studio Inc.

Platform One Inc.

ADPRO inc.

Torchlight Inc.

Bumblebee Inc.

D.A.Consortium Beijing CO., LTD.

DAC ASIA PTE. LTD.

Agent DAS

Media

Agent

Agent

Agent

Agent

Agent

Agent

DAS

Media

-27-

DAS

DAS

Summary of Consolidated Subsidiariesʼ Results（Y on Y）


1.87

2.50

1.80

3.28

2.10

1.67

3.32

2.35

0.0

1.0

2.0

3.0

4.0

Sales Operating Income Ordinary Income

FY2013-3Q Accumulated FY2014-3Q Accumulated FY2015-3Q Accumulated

N/A

（4/2014〜12/2014）（4/2013〜12/2013）（4/2015〜12/2015）

-28-

Consolidated/Non-consolidated Ratio


Key Measures


FY2013 FY2014 FY2015

x2.1

-30-

Focus Area Premium Media Ad Sales

Quarterly Sales of Premium Media Ads（Non-consolidated）


FY2013

FY20131,735 Mil.¥

FY2014 FY2015

x2.6

FY20144,252 Mil.¥

FY20156,695 Mil.¥

-31-

Video Ad SalesFocus Area

Quarterly Sales of Video Ads（Non-consolidated）



Quarterly Share by Video Ad Products

FY2014 FY2015

Diversification of Video Ad Products

-32-

Focus Area


Appendix


Business Domains of DAC Group

Agent Domain

DAS Domain Media DomainProviding services to

consumersProviding technologies, creative and solutions

-34-

Dealing with Media and Ad Agencies


Business Model of DAC GroupAd

vert

iser

s

Use

rs

-35-

Media Representative and Digital Solutions

RTB

DMP

Ad Network

Global

SEM services

Creative Social media marketing

Media Service Buying and selling ad space Development

Operation Service Outsourcing business

Technology Service Solution development/provisioningR&D

Progress management

Trading Desk

Onl

ine

Publ

ishe

rs

Ad A

genc

ies


OnlinePublishers

ConsortiumDAC was established as a consortium of

leading ad agencies, headed by Hakuhodo DY Group

Media RepresentativeProviding total support for

online advertising

Adve

rtis

ers

<Core Operations＞• Buying Ad Spaces• Media Planning• Progress Management• Consulting• Development Technologies• Operation Service

Media Rep.

DACʼs Core Business “Media Representative”

SellingAd Spaces

ProvidingAd Technologies

ProvidingOperation service

BuyingAd Spaces

ProvidingAd Technologies

ProvidingOperation Service

Ad AgencyHakuhodo DY

Media Partners Inc.TOKYU AGENCY INC.

Nikkeisha, Inc.I&S BBDO Inc.

Asahi Advertising Inc.CyberAgent, Inc

SEPTENI CO.,LTD.etc.

Over 500Companies

Over 1,000Companies

Yahoo! JAPANLINE

GoogleFacebookYouTubeTwitter

NIKKEI.comMSNetc.

-36-

＋


Adve

rtis

ers/

Ad A

genc

ies

Publ

ishe

rs

DSP

Analytics

Ad ServerSSP

Ad Network

3PAS/Rich Media Ad Serving System

Media Planning System

PublisherTools

Message Management Tool

Delivery Data

-37-

Ad technology lineup of DAC Group

Data DMP/Tag Management System


Name Ownership Business

IREP Co., Ltd. 57.6% Digital marketing including performance-based ad focused on listing ads, search engine optimization, content marketing and web analytics.

UNITED, Inc. 44.1% Smartphone applications and advertising technology business.

HAKUHODO i-studio Inc. 60.0% Production, system development and CRM services for the entire online advertising field.

Platform One Inc. 100.0% Providing platforms for online advertising trading.

ADPRO inc. 100.0% Operational services for online advertising, including schedule management, sending ad data and placement confirmation.

Torchlight Inc. 70.0% Services supporting the utilization of social media including owned media and ad.

Bumblebee Inc. 89.8% Media and advertising platform business including smartphone applications.

D.A.Consortium Beijing CO., LTD. 50.1% Online advertising business in China.

DAC ASIA PTE. LTD. 100.0%Supports online advertising strategy, business development, market research and the expansion of group companies in the Southeast Asian region.

I-DAC PTE. LTD. 80.0% Comprehensive digital marketing solution in the Southeast Asian region.

Consolidated Subsidiaries（As of December,2015）

TSE 2nd

Mothers

-38-


Name Ownership Business

Members Co., Ltd. 18.8% Web integration service, social media marketing service, and support service of digital marketing.

spicebox, inc. 34.4% Marketing and consultation services for digital communications design.

Adinnovation Inc. 18.0% Marketing business for smartphones, ad tracking tool business for smartphones, media consulting business.

digitalBoutique, Inc. 38.2% Service planning, creating, and operating community sites.

livepass Inc. 22.4% Next generation personal video marketing platform company.

Innity Corporation Berhad 25.1% Online advertising trading platform and advertising network in the

Southeast Asian region.

GLIDER associates, INC. 15.7% Planning and administration of curation magazine “antenna*”.

Equity-method Affiliates（As of December,2015）

Centrex

Bursa Malaysia

-39-


Name Business

Digital Catapult Inc. Provides digital content-serving and creative services for PC and mobile.

Data Stadium Inc. Sports data contents and related solutions.

Video Research Interactive Inc. Internet audience measurements and provides ad servers.

BrandXing Inc. Marketing and CRM consulting services.

O-uccino, Inc. Ad agency, planning, creating, and operating real estate websites.

Voltage Inc. Planning and creating services for mobile digital contents.

mediba Inc. As a mobile media representative, provides planning, organization and creation services.

YUMEMI Inc. Mobile-related planning, development, operation and consultation services.

Co-Core Inc. Operating the 3-D visual space website "meet-me“.

ALBERT Inc. “Recommendation engine” developed in-house and advertising optimization solutions using core analytical abilities.

Origami Inc. Planning and administration of the next-generation e-commerce platform “Origami”.

Datasection Inc. Online consumer and reputation analysis service.

Yummy Japan Inc. YouTube channel management, web-based video production, web-based PR and advertising.

ZEDO,Inc. Developing ad server and video ad format for media companies.

IPONWEB HoldingsLimited

Development of various ad technologies and cloud advertisement solution and consulting service.

Other companies in which DAC invests（As of December,2015）

TSE 1st

Mothers

-40-

Mothers

Mothers


Vision of DAC Group

-41-

“The Axel”This logo, called “the axel”, expresses the spiritembodied in our brand slogan “Empowering the digital future” – the spirit to pioneer and impart vitality into the future of digital society.

FY2015-3Q Financial Results Briefing - DAC...FY2015-3Q Quarterly （Oct. 2015 to Dec. 2015）...

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