Earnings Results Briefing Session
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FY2014 Second-Quarter Earnings Result Briefing Session (July 1st 2014 – September 30th 2014) mixi, Inc. http://mixi.co.jp TSE Mothers 2121 The opinions and forecasts contained in these materials are based on mixi's knowledge as of the time the materials were created. No guarantee of the accuracy of that information is stated or implied. The public should be aware of the possibility that actual earnings may diverge from these forecasts due to changes in any number of factors. 2 Financial condition Copyright (C) mixi, Inc. All rights reserved. 3 Profit / loss ・Monster Strike fuels healthy growth in sales and profits Unit: millions of yen Increase/ FY2014/2Q FY2014/1Q decrease (Jul-Sep 2014) (Apr-Jun 2014) (QoQ) Sales 22,235 12,718 74.8% Operating profit 9,696 4,654 108.3% Recurring profit 9,705 4,636 109.3% Net profit 6,163 2,919 111.1% Copyright (C) mixi, Inc. All rights reserved. 4 Sales trend (Quarterly) ・Monster Strike sales increased 93.5% from previous quarter Unit: millions of yen 25,000 82 1,497 20,000 15,000 66 1,393 19,447 10,000 88 10,049 5,000 16 1,221 その他 15 1 87 55 239 259 40 ライフイベント 230 231 38 584 3,113 3,283 3,004 2,872 226 218 261 2,390 1,877 1,578 1,476 1,375 コンテンツ 0 1,209 1,208 メディア 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014 * Other: Research business, new business, etc. Life events: Help Wanted business, photo book business, wedding support business (Start of since December 2013) Content: Monster Strike, etc. Media: SNS “mixi" Copyright (C) mixi, Inc. All rights reserved. 5 Cost of sales (Quarterly) ・Outsourcing costs increased because of Monster Strike Unit: millions of yen 2,500 2,000 1,500 1,000 500 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014 Others 155 132 77 52 29 31 33 38 32 29 Outsourcing 179 207 212 176 135 145 401 569 1,068 1,764 Content procurement expenses 44 41 39 39 37 35 35 35 35 34 Personnel expenses for development 330 339 336 335 329 330 267 264 250 262 Depreciation 74 74 80 69 39 38 47 42 22 24 Rental charges 199 187 123 123 123 123 124 137 145 156 Copyright (C) mixi, Inc. All rights reserved. 6 SG&A expenses (Quarterly) ・Advertising costs and settlement fees increased because of Monster Strike Unit: millions of yen 12,000 10,000 8,000 6,000 4,000 2,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014 Others 298 295 218 270 248 237 225 412 398 412 Settlement fees 414 366 363 318 275 258 348 1,294 3,486 6,439 Rents on properties 137 135 133 137 138 140 137 133 147 142 Outsourcing 120 132 144 185 192 217 166 178 220 244 Advertising 22 24 9 142 15 17 149 941 1,665 2,459 Personnel 671 618 633 627 662 573 552 759 591 568 Copyright (C) mixi, Inc. All rights reserved. 7 Business condition - Content business - Media business - Life events business, other business Copyright (C) mixi, Inc. All rights reserved. 8 Content business Copyright (C) mixi, Inc. All rights reserved. 9 Monster Strike‘s first-ever user event: Monster Strike First Anniversary “Chozetsu” Thank-You Fair in nicofarre ・Event celebrates first year of Monster Strike, with live performance of theme song ・nico nico live broadcast attracts over 1.2 million viewers Copyright (C) mixi, Inc. All rights reserved. 10 Top 15 million downloads Unit: 10,000s of people Launch of North 1600 America version 1400 1200 Launch of Taiwan version 1000 800 Start of TV commercials Launch on 600 Android 400 Launch on iOS 200 0 Oct-2013 Jan-2014 Apr Jul Oct *Number of global downloads as of October 27, 2014 Number of downloads does not include multiple downloads from the same device Copyright (C) mixi, Inc. All rights reserved. 11 Sales ranking ・ Grown to No. 5 top publisher and No. 4 for top apps in global ranking Sales Ranking Apr-14 May Jun Jul Aug Sep 1 4 4 4 5 6 6 5 5 6 7 9 11 10 Top Publisher Top Apps ※App Annie top app sales ranking / App Annie top publisher ranking (September 2014) Copyright (C) mixi, Inc. All rights reserved. 12 Promotions ・Popular LINE characters appearing in TV commercials ・New initiatives include outdoor ads and the baseball's first "strike flash ad" TVCM LINE characters in a classroom LINE characters at a pajama party LINE characters at a Korean barbecue (yakiniku) restaurant Outdoor ads Strike flash ad ・Worked with the Chiba Lotte Marines to launch baseball's first stadium ad linked to "strike" count © CHIBA LOTTE MARINES Copyright (C) mixi, Inc. All rights reserved. 13 Tie-ups ・Breaking down barriers between companies and services, featuring characters from each service ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. <Monster Strike> <LINE POP> <Monster Strike> <Monster Hunter Hunting Quest> Copyright (C) mixi, Inc. All rights reserved. 14 Merchandising Comics Strategy books Magazines Snacks 1st anniversary goods Seals Copyright (C) mixi, Inc. All rights reserved. 15 Arcade Game ・Started production of arcade game “Monster Strike Multi Burst” Aiming for Spring 2015 launch, location testing now under way ©Konami Digital Entertainment ©Konami Digital Entertainment <Display> <Box Image> Copyright (C) mixi, Inc. All rights reserved. 16 New Project Monster Strike Stadium(proposed name) Under Development Copyright (C) mixi, Inc. All rights reserved. 17 Overseas activities: progress in Taiwan ・Downloads of Taiwan version now exceed 1 million mainly driven by word-of-mouth ・Launch of YouTube channel ・Planning more marketing activities 1 million users campaign Official YouTube channel ※As of November 6, 2014 Copyright (C) mixi, Inc. All rights reserved. 18 Overseas activities: North America / South Korea North America version South Korea version October 23: Launched mid-November: Planned to launch Coming Soon… Copyright (C) mixi, Inc. All rights reserved. 19 Future global expansion Europe North America China South Korea Japan Taiwan Southeast Asia ※ Countries and regions planning to release Copyright (C) mixi, Inc. All rights reserved. 20 Media business Copyright (C) mixi, Inc. All rights reserved. 21 Services aimed at stimulating interest and curiosity ・Promoting ”Content” from mixi's 10th anniversary, “Communication” in communities and “Connection” through revival of functions where interest was strong Visitors → footprints ・Providing content matched to themes ・Providing functionality allowing users ・Linking communities and real events to follow up on visits to their profiles Aug ust ・Adding access counter functionality Oct ober Copyright (C) mixi,mixi, Inc. All rights reserved. 22 Smart ads (proposed name) progress ・August 2014: capital tie-up with SmartNews Inc. ・Now jointly developing and testing in-feed native ads Web Apps Copyright (C) mixi,mixi, Inc. All rights reserved. 23 Life events business, other business Copyright (C) mixi, Inc. All rights reserved. 24 Topics Photo Book business Wedding support business Strengthening connections between real and virtual worlds ・Start service “Nohana cards for New Year ・ Providing Machicom portal 2015” "Ekuru" ・Nohana customers reach 900,000 ・Added payment via carrier Help Wanted ads ・Maintaining steady earnings over the long ・Easily create using apps term ・Sold 800,000 cards in last year Other businesses ・Release PoPolly Co-Labo, a chat-style tool for communication between consumers and corporations Copyright (C) mixi, Inc. All rights reserved. 25 Earnings Estimates Copyright (C) mixi, Inc. All rights reserved. 26 FY2014 earnings estimates ・Estimates were revised for both sales and profits ・Year-end dividend projected at ¥49 per share (interim dividend was ¥23, for total estimated annual dividend of ¥72) Unit: millions of yen Unit: millions of yen FY2014 65,000 (Apr 2014 - Mar 2015) 55,000 Sales * 100,000 45,000 Operating 35,000 45,000 profit 25,000 Recurring 45,000 profit 15,000 5,000 Net profit 29,000 (5,000) FY13/1H FY13/2H FY14/1H FY14/2H. actual actual actual estimated Media Content Life events Others Operating profit *Overseas sales of Monster Strike includes Taiwan only. Copyright (C) mixi, Inc. All rights reserved. 27 Appendix Copyright (C) mixi, Inc. All rights reserved. 28 BS / CF Unit: millions of yen FY2014/2Q FY2013/2Q (end of Sep 2014) (end of Sep 2013) Current assets 38,845 14,711 Non-current assets 4,771 2,769 Total assets 43,617 17,480 Current liabilities 12,278 2,738 Non-current liabilities 9 77 Net assets 31,329 14,664 FY2014/2Q FY2013/2Q (Apr-Sep 2014) (Apr-Sep 2013) CFs from operating activities 11,174 ▲448 CFs from investing activities 237 2,774 CFs from financing activities 312 ▲327 Cash and cash equivalents at end of 28,549 11,247 period Copyright (C) mixi, Inc. All rights reserved. 29 Company Overview Company name mixi, Inc. Establishment June 3, 1999 Capital 7.03 billion yen Location of main office Sumitomo Shibuya First Tower Building 7F, 1-2-20 Higashi, Shibuya-ku, Tokyo, 150-0011 President Hiroki Morita Outside Director Ichiya Nakamura Director Yasuhiro Ogino Outside Director Tatsuya Aoyagi Executive officers and directors Director Yuichi Kawasaki Corporate Auditor Takako Kato Director Shuhei Nishio Outside Corporate Auditor Takayuki Sato Director and Founder Kenji Kasahara Outside Corporate Auditor Hiroyuki Wakamatsu Employees 366 (regular employee only) Total number of shares issued 83,203,000 shares Kenji Kasahara 47.19% (individual shareholder) 2.54% Major Shareholders BNY GCM CLIENT ACCOUNT JPRD AC ISG(FE-AC) 1.52% Matsui Securities Co., Ltd. 0.92% MSCO CUSTOMER SECURITIES 0.87% * Besides the above, we own 2,708,000 shares of treasury stocks (3.34%) As of Sep 30, 2014 Copyright (C) mixi, Inc.