Company Profile Oricom Co., Ltd. Greetings from the President On behalf of Oricom Co., Ltd., and the Oricom group companies, please accept my heartfelt greetings. We just celebrated our 90th year in business in April 2011. In 1922, our founder, Iwajiro Saito, launched newspaper insert advertising as a new business. Later, by joining forces with many collaborators, we successfully created a new business model, the prototype of the current transportation advertising. Our commitment now is to become a quality company in the communication business by proposing a new communication design. Our driving force lies in the everlasting truth that an advertising company cannot exist without advertisers. This is the spirit of our founder, which never changes. Based on that spirit, we will continue our ongoing commitment to new ideas, creation of new business, and becoming an honest and interesting company. Our advertising clients often say,“ We want to establish new relations with ordinary people by developing new means of communication (account planning, Web, digitization, and other ways).” The Oricom Group will meet this need by leveraging our abilities to make plans based on the viewpoint of ordinary people and put them into practice. In the midst of the severe economy in Japan and throughout the world, we are keenly aware that we need to continue evolving in order to ensure our contribution to the development of our advertising clients via acute and accurate prediction of consumer trends. Without it, we will not be able to gain support in the market. Kazuhiko Masamori President Oricom Co., Ltd. § 1 Oricom Way A Quality Company in the Communication Business Since its business inauguration, Oricom has thrived as an independently owned advertising agency, being immune to external interference. This is because we have aspired to always take on the various challenges facing our clients from a neutral perspective. We have acquired strength and power as a quality company in the communication business through the execution of our principle of “Think Ourselves, Create Ourselves, and Act Ourselves.” To develop the best solutions for our clients is our first priority. We consider it our role to offer solutions that can achieve maximum results from the marketing costs that our clients invest. We have adopted the corporate principle of a quality company in the communication business to ensure the fulfillment of our goal. We aspire to continuously enhance all qualities in our business activities̶quality of planning, behavior and action, and employees. The Oricom Way Oricom has become the company chosen by customers by proposing and implementing solutions to motivate consumers for the challenges that customers encounter. To offer better solutions to customers, we at Oricom strive to carry out the concept as our daily action agenda. That is the Oricom way. 【The Oricom Way】 1. Customer focus To take action exceeding the expectations of our loyal customers at all times (Customer orientation) 2. Creative mind To create new valuable tasks on our own (Innovation) 3. Challenging spirits To eliminate imitative ideas and compromise and take approaches boldly (Aggressiveness) 4. Open communication To discuss freely and vigorously without being afraid of a conflict of opinions (Accommodation) 5. Result driven To improve the personal ability to fulfill a role (Responsibility) 6. Integrity And to establish credibility among customers (Honesty) It is our wish to respond to your expectations of high quality services through implementation of the Oricom way. Oricom's Solutions to Motivate Consumers Oricom has become the company chosen by customers by proposing and implementing solutions to motivate consumers for the challenges that customers encounter. Motivating consumers is not only simply recognized as advertisements but also the achievement of taking consumer buying behavior to the next level. These actions include drawing their concern and studying, purchasing, utilizing, and connecting through word of mouth. Characteristic of Oricom's solutions to motivate consumers, Oricom strives to make a strong showing in the mobile consumer segment. With the Oricom's communication design to capture mobile consumers, Oricom aims to become a company with the characteristics to serve as a competitive advantage by providing solutions for the challenges faced by customers. § 2 Unique Selling Proposition Oricom Strengths Transit Advertising Oricom started the commercialization of transit advertising in 1928, and was a pioneer in this field in Japan. Since then, we have led the industry in transit advertising and have thrived in this business along with the development and expansion of railway networks in Japan. We still maintain strong business relationships with all the transit advertising agencies nationwide, and our annual sales in transit advertising are the biggest in the industry. 1. We carry out the complicated tasks unique to transit advertising in a reliable manner. In the case of transit advertising, the type of railcars, train service schedules, media specifications, regulatory requirements, availability of advertising space, and the timing for making arrangements are different, depending on electric railway companies. Since it is necessary to handle such varying and fluid information, the tasks involved become more complicated as a project size becomes larger. Oricom has had the long-standing experience of being commissioned by major advertising clients to handle transit advertising. 2. We make a proposition on the media plan that meets the needs of a client’s advertising plan. Oricom handles all the transit advertising media evenly across the nation. Also, we are among the top in the industry in having accumulated data regarding number of passengers, media statistics, user profile, and projection of effect. For these reasons, we are in a better position than any other advertising agencies in the industry to offer to our clients the media plan reflecting the routes, stations, and media best suited to meet the needs of their advertising plans. 3. We make a proposition on the creative plan that can make the best use of the characteristics of transit advertising. In transit advertising, it is necessary to use effective expressions making full use of the characteristics of train advertising and station advertising, respectively. As a pioneer in transit advertising, Oricom has always taken on the challenges of developing the creative unique to transit advertising. In addition, we are engaged in the development of special and new advertising in collaboration with media companies. Oricom Mapping System Based on its unique concept of focusing on people and cities, Oricom has led the industry in utilizing the mapping system, an application model of the geographical information system (GIS), since 1994. It is possible to implement the area targeting by analyzing demographics and geographics in parallel and thus to certainly improve efficiency in marketing activities. 【Examples of Application】 Retails, Services Store development plan, establishment of trading areas, distribution of prospective customers, competitive situation, etc., in case of new multi-store development. Manufacturers, Location of sales offices, establishment of strategic focus areas, Sales Companies distribution of target users, etc., in synchronization with sales activities. Mail-order sales, Area distribution of (trusted) customers, exploration of promising Membership Service areas, etc., based on the customer database. Oricom will focus in a target area all the advertising and sales promotion plans such as newspaper insert advertising, transit advertising, direct mails, interactive media, and sales promotion on the streets and in the stores, and will help capture a targeted position in the target area at once. We will continue to monitor client responses through the ZIP code survey, etc. and take the necessary actions by operating the PDCA cycle. Newspaper Insert Advertising Oricom was the first company in Japan to commercialize newspaper insert advertising in 1922. In 1973, we established Orikomi Service Co., Ltd., which specialized in the newspaper insert advertising business. We have always led the modernization efforts in this industry by launching the scientific management of databases for circulation and trade areas using computers before any other company in the industry. We are now highly acclaimed as a unique company that can offer a total solution for sales promotional efforts with newspaper insert advertising as the core. 1. We make a proposition on the optimal areas for distribution of newspaper inserts. Original GIS Mapping System (OSCAR) : The system stores the latest statistical data by town and by area across the nation from Hokkaido to Okinawa and also the latest data on the distribution territories of distribution outlets nationwide for 60 major newspapers. Therefore, we can make a proposition on the optimal distribution areas for newspaper inserts to meet the varying marketing needs of our clients. 2. We lighten the burden of the cumbersome tasks of preparing and confirming the areas for distribution of newspaper inserts. Original Order Receipt and Placement System (ORDERS) : The system has the functions of preparing and confirming the areas of distribution of newspaper inserts and of placing associated orders. As our clients can access the database online, it is possible to simplify the cumbersome tasks of confirming the areas for distribution of newspaper inserts and managing