Business Results for 3Q Fiscal Year September 2015©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 4 3Q（Apr－Jun）Consolidated Earnings Highlights Net Sales: ¥16,588mn（Up 22.1%

Business Results for 3Q Fiscal Year September 2015 July 30, 2015

SEPTENI HOLDINGS CO., LTD. http://www.septeni-holdings.co.jp/en/ Securities Code: 4293

©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.

Index 2

1. Quarterly Consolidated Earnings Overview

5. Appendix

2. Internet Marketing Business

3. Media Content Business

4. 1Q-3Q FY9/15 Consolidated Earnings and 4Q(Full Year) Earning Estimates


3

1. Quarterly Consolidated Earnings Overview


３Ｑ（Apr－Jun）Consolidated Earnings Highlights 4

Net Sales: ¥16,588mn（Up 22.1% year on year）

¥755mn（Up 84.1% year on year） Consolidated results

Internet Marketing Business

Media

Content

Business

Both Net Sales and Operating income reached

new record highs on a quarterly basis.

High growth was achieved in key businesses focused on “Mobile,” “Social,” and “Global.”

Upfront Investment in the Manga Content Business is continued.

Operating income:

Net Sales: ¥15,910mn（Up 32.1% year on year）

¥981mn（Up 77.0% year on year） Operating income:

Net Sales: ¥750mn（Down 14.6% year on year）

Operating income: ¥－133mn（Down ¥29mn year on year）


Consolidated Income Statement（Apr－Jun）

3Q FY9/15 3Q FY9/14

Value Share YY

Change Value Share

Net Sales 16,588 100.0% +22.1% 13,580 100.0

%

Gross Income 3,052 18.4% +24.2% 2,458 18.1%

SG&A 2,297 13.9% ＋12.2% 2,048 15.1%

Operating Income 755 4.6% +84.1% 410 3.0%

Ordinary Income 802 4.8% +100.7% 399 2.9%

Net Income 481 2.9% ＋20.6% 398 2.9%

3Q FY9/15

Estimate

15,800

―

―

460

470

310

5

EBITDA 858 5.2％ +74.4% 492 3.6%

（units: ¥mn）

The growth rate in net sales reached the 20% range for the first time in five quarters, driven by significant business expansion in the Internet Marketing Business.

Operating income was up 84.1% year on year, achieving significant growth in profit thanks

to the impact of higher sales. This profit growth absorbed the increase in SG&A, which largely

stemmed from the labor expenses of hiring 104 new graduate employees throughout the

entire group.

※ EBITDA = Operating Income ＋ Depreciation and amortization ＋ Amortization of goodwill


8,355 8,636 9,0669,970 9,980 10,441

11,044

12,64112,048

12,53813,299

14,615

15,910

1,0921,088

940

894 889990

873

855879

849

794

953

750

929 775912

718 696595

671

811

715668

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

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

2012/9期 2013/9期 2014/9期 2015/9期

6

Internet Marketing Media Content

15,495

10,365 10,478 10,891

11,566 11,552 11,971

Quarterly Consolidated Earnings Trend

12,532

14,246 13,580

13,985 14,026

Net Sales reached a new record high on a quarterly basis. Net Sales (by Business Segment)

（¥mn）

Others (Direct Marketing ,etc.)

16,588

*Because the net sales of each business include inter-segment sales, the total net sales of each business do not match the consolidated net sales (underlined figures).

FY9/13 FY9/14 FY9/15 FY9/12


3.0%3.4%

2.7%

4.2%

2.8%

4.2%5.5% 4.3%

3.0%

4.0%

3.1%

4.0%4.6%4.6%

270

432 423

567

443

581

793

682

554

709 691

830

981

55

-44 -107

-34 -60 -16 -42 -35

-104 -95 -155 -118 -133

44

27 39

44

41

35

36

60

50

39

-60 -63

-65

-98 -101

-100 -105 -96

-90 -97

-105 -95 -92

-300

0

300

600

900

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

2012/9期 2013/9期 2014/9期 2015/9期

7

616

310

290 351

479

323

682

499

611

410

429 555

Operating Income reached a new record high on a quarterly basis.

（¥mn） 755

Quarterly Consolidated Earnings Trend

Adjustment (corporate expenses, etc.) Others(Direct Marketing ,etc.) Media Content Internet Marketing

Operating Income (by Business Segment)

FY9/12 FY9/13 FY9/14 FY9/15


1,270 1,281 1,327 1,2671,368 1,335 1,388 1,385

1,507 1,471 1,475 1,5361,644

23 3436

36

37 4032 32

3228 62

61

61571 560 523

419

448 440474 487

508 532566

586

590

0

500

1,000

1,500

2,000

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

2012/9期 2013/9期 2014/9期 2015/9期

Quarterly Consolidated Earnings Trend 8

2,048 2,033 2,103

1,887

1,722

1,854 1,817 1,895 1,905

2,297

1,865 1,877

Labor cost increased due to hire 104 new graduate employees.

（¥mn） 2,184

SG＆A

Labor costs Amortization of goodwill others

FY9/12 FY9/13 FY9/14 FY9/15


9

2. Internet Marketing Business


Internet Marketing Business Earnings Overview

3Q FY9/15 3Q FY9/14

Value Share YY Change Value Share

Net Sales 15,910 100.0% +32.1% 12,048 100.0%

Gross Income

2,793 17.6% +36.2% 2,051 17.0%

SG&A 1,812 11.4% ＋21.1% 1,497 12.4%

Operating Income

981 6.2% +77.0% 554 4.6%

10

Substantial growth in smartphone advertising caused its share to rise to 66%.

There was also an acceleration of growth in the Social Media and Global Business.

（units：¥mn）

Advertising by online service providers in Japan and overseas grew. The business expanded further than initially forecast, and the growth rate in net sales reached a record high of 32.1% for the current segment.

The higher sales absorbed the increase in SG&A of hiring 87 new graduate employees. The segment achieved significant growth in operating income of 77.0% year on year. The operating margin also reached a record high of 6.2% for 3Q.


Internet Marketing Business Quarterly Earnings Trend 11

（¥mn）（¥mn）

12,048 12,538

13,299

14,615

15,910

2,051 2,225 2,338 2,527 2,793

17.0%17.8% 17.6% 17.3%

17.6%

5.0%

10.0%

15.0%

20.0%

25.0%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

14/3Q 14/4Q 15/1Q 15/2Q 15/3Q

売上高売上総利益売上総利益率

554

709 691

830

981

4.6%

5.7%

5.2%

5.7%

6.2%

0.0%

2.0%

4.0%

6.0%

0

200

400

600

800

1,000

14/3Q 14/4Q 15/1Q 15/2Q 15/3Q

営業利益営業利益率

Net Sales Gross Income

Both net sales and gross income

reached new record highs. Operating income hit

a new record high. Operating Income

Net Sales Gross Margin Gross Income Operating

Income Operating Margin


（百万円）

This growth was driven by the expansion of the lineup of native advertising products.

Key Business Focus (1) — Mobile 12

Sales were around 1.7 times the level one year ago and broke the ¥100bn barrier.

6,1466,720

7,455

8,542

10,513

51.0%

53.6% 56.1%

58.5%

66.1%

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

14/3Q 14/4Q 15/1Q 15/2Q 15/3Q

ネットM事業における構成比

66.1%

Main business media Smartphone Advertising Sales Trend

Share of Internet

Marketing Business

(¥mn)


1,4931,658

2,296 2,335

3,047

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

3,000

14/3Q 14/4Q 15/1Q 15/2Q 15/3Q

Key Business Focus (2) — Social

Ad

vertis

ers

Consigned Operations

Page Creation

Septeni Media

Advertising Sales

Social media advertising operation

optimization tool

13

Facebook advertising remained firm in Japan and overseas.

etc

Rose 2.0-fold

year on year.

The growth of Twitter ad accelerated, and net sales of the Social Media

Business rose approx. 2.0-fold year on year.

（¥mn）

（Aggregate of sales in Facebook, Twitter, and LINE）

Social Media Business Sales Trend Business Model


Key Business Focus (3) — Global 14

Japan

Asia

（百万円）

Sales rose about 2.4 times year on year, with strong growth in billings in North

America and Asia.

1,1221,312

1,710

1,263

2,657

9.3%

10.5%

12.9%

8.6%

16.7%

0

300

600

900

1,200

1,500

1,800

2,100

2,400

2,700

14/3Q 14/4Q 15/1Q 15/2Q 15/3Q

ネットM事業における構成比

Advertising of large-scale projects expanded, and the number of customers also increased.

Overseas sales Trend Business model

Operating out of sales bases in four locations overseas with a cross-border trading system established for Internet advertising

Share of Internet

Marketing Business

United States and Europe

London

Singapore

Seoul

San francisco

(¥mn)


15

3. Media Content Business


Media Content Business Earnings Overview

３Q FY9/15 ３Q FY9/14


Net Sales 750 100.0% －14.6% 879 100.0%

Gross Income 327 43.6% +4.6% 313 35.6%

SG&A 460 61.4% ＋10.4% 417 47.4%

Operating Income

－133 －17.8% （－29）－104 －11.9%

Despite solid growth of the mobile game, KINGDOM –Eiyuno keifu–, the net sales of Axel

Mark decreased because no new titles were released.

The Manga Content Business started to commercialize its own intellectuall property.

On the other hand, Operating losses associated with new businesses amounted to ¥125

million, due to continued upfront investments for the cultivation of Manga artists and the

enhancement of the distribution service.

16

(units: ¥mn)


-13

1

-30

7 -1

-85 -92

-120

-120 -125

-5 -4

-4

-5 -5

-160

-120

-80

-40

0

40

14/3Q 14/4Q 15/1Q 15/2Q 15/3Q

既存事業新規事業連結調整

Media Content Business Quarterly Earnings Trend 17

-118 -95 -104 -155

（¥mn）（¥mn）

879849

794

953

750

313294

258

341 327

35.6%

34.7%

32.6%

35.8%

43.6%

25%

30%

35%

40%

45%

0

200

400

600

800

1,000

14/3Q 14/4Q 15/1Q 15/2Q 15/3Q

売上高売上総利益売上総利益率

-133

Net Sales, Gross Income Operating Income

Existing business

New business

Consolidation adjustment Net Sales Gross Income Gross Margin


Mobile Game Business Overview 18

©原泰久・集英社／NHK・NEP・ぴえろ ©DeNA Co., Ltd. All rights reserved. / Developed by AXEL GameStudio Inc.

KINGDOM –Eiyuno keifu– showing strong growth

The first investment was made by the LLP company, which was established for the purpose of investing in and cultivating smartphone game development companies.

Ranks in the top 35 for App Store sales (June 30, 2015)

（2015年6月30日）

©YASUHISA HARA, SHUEISHA/NHK,NEP, PIERROT ©DeNA Co., Ltd. All rights reserved. / Developed by AXEL GameStudio Inc.


0

50

100

150

7月 10月 1月 4月 7月

2014年 2015年

Manga Content Business Overview 19

Musashikunn to Murayamasann ha tukiattemita was published.

156

topped 1,500,000

© Ai/ COMICSMART INC. 2015

© Naruasuku / COMICSMART INC. 2015

The book Million Doll was published, and TV anime began

broadcasting on July 6.

The number of monthly PV for GANMA! topped 300 million (July 2015).

Accumulated application

downloads of GANMA!

（ten thousand DL）

Apr July Oct Jan

¥ July


20

4.1Q-3Q FY9/15 Consolidated Earnings and 4Q(Full Year) Earning Estimates


Consolidated Income Statement (Oct-Jun)

1Q-3Q FY9/15 1Q-3Q FY9/14


Net Sales 46,110 100.0% +14.2% 40,360 100.0%

Gross Income 8,386 18.2% +11.0% 7,552 18.7%

SG&A 6,585 14.3% +12.6% 5,848 14.5%

Operating Income 1,801 3.9% ＋5.7% 1,703 4.2%

Ordinary Income 1,997 4.3% ＋12.2% 1,779 4.4%

Net Income 1,948 4.2% +64.0% 1,187 2.9%

1Q-3Q FY9/15

Estimate

45,322

―

―

1,506

1,664

1,776

21

EBITDA 2,102 4.6% ＋8.6% 1,936 4.8%

With higher operating income in the Internet Marketing Business, an increase was posted for consolidated operating income.

(units: ¥mn)

Net income grew significantly, given extraordinary income as a result of the sales of the Direct Marketing Business subsidiary.


＋

Year on Year Growth Rate in Consolidated Operating Income on a Quarterly Basis 22

Starting from a loss in FY9/15, improvement progressed to mark a significant increase in operating income in 3Q.

-37.1%

+0.9%

+84.1%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

15/1Q 15/2Q 15/3Q

営業利益の変化率

＋84.1%


2,030

2,502

-181-407

147

-292-294

-1,000

0

1,000

2,000

14/3Q累計 15/3Q累計

35,733

43,825

2,609

2,498

2,198

0

10,000

20,000

30,000

40,000

14/3Q累計 15/3Q累計

Earnings By Business Segments (Oct-Jun) 23

－4.2%

＋22.6%

＋23.3%

（-225）

（¥ mn）（¥ mn）

Net Sales Operating Income

Adjustment (corporate expenses, etc.) Internet Marketing Media Content Others(Direct Marketing ,etc.)

1Q-3Q FY9/14 1Q-3Q FY9/15 1Q-3Q FY9/14 1Q-3Q FY9/15


4Q (Full Year) FY9/15 Consolidated Earnings Estimates

Earnings in FY9/14

Earnings Estimates for FY9/15

Expected growth

rate (Full Year)

Earnings in 1Q-3Q FY 9/14

Earnings in 4Q

FY9/14

Earnings in 1Q-3Q FY9/15

Earnings Estimates

for 4Q FY9/15

Net Sales 40,360 13,985 54,345 46,110 18,000 64,110 ＋18.0％

Operating Income

1,703 555 2,259 1,801 900 2,701 ＋19.5％

Ordinary Income

1,779 582 2,362 1,997 900 2,897 ＋22.6％

Net Income 1,187 361 1,549 1,948 570 2,518 ＋62.5％

24

The Internet Marketing Business is expected to achieve growth in both sales and income.

（units：¥mn）

As net income increases, the dividend will be increased for three consecutive years.

All indicators are expected to reach record highs in the full year, with double-digit growth in operating income.

Dividend Per Share

¥9.0 ¥14.0 ＋55.5％

The Media Content Business is expected to record lower sales and greater losses, reflecting the fact that there are no new games to be released as of this time as well as the continued upfront investment in the Manga Content Business.


[Reference] 4Q(Jul-Sep) FY9/15 Earnings Estimates by Business Segment 25

Operating Income

Earnings in 4Q FY9/14

Earnings Estimate for 4Q FY9/15

YY Change

709 1,138 ＋60.3％

－95 －138 （－42）

39 －（－39）

－97 －100 （－2）

555 900 ＋61.9%

Net Sales

Earnings in 4Q FY9/14

Earnings Estimates for 4Q FY9/15

YY Change


12,538 17,340 ＋38.3％

Media Content Business

849 735 －13.4％

Other (Direct Marketing)

668 －（－668）

Elimination or corporate

－71 －75 （－3）

Total 13,985 18,000 ＋28.7%

（units：¥mn）


Midterm Business Policies 26

ソーシャルグローバル Global

Concept

Social

Mobile

Business Focus

Increase the share of highly profitable businesses

Create a mainstay business second to advertising

“Double profits”


All estimates, opinions and plans provided in this document are based on the best information available at the time of the creation of this document on July 30, 2015 and we do not guarantee their accuracy. Therefore our actual results may differ due to various unforeseen risk factors and changes in global economies.

Contact Information

SEPTENI HOLDINGS CO., LTD. http://www.septeni-holdings.co.jp/en/ Corporate Planning, IR Division TEL: +813-6857-7258 E-mail: [email protected]

Thank you for your interest!

27


28

5. Appendix


Company Overview

29

Company Name SEPTENI HOLDINGS CO., LTD.

Representative President and Representative Director Koki Sato

Headquarters Sumitomo Fudosan Shinjuku Grand Tower, 8-17-1 Nishishinjuku, Shinjuku-ku, Tokyo

Securities Code 4293 (JASDAQ)

Business Realm The holding company for a group of companies conducting primarily Internet-related and other businesses

Established October 29, 1990

Capitalization ¥2,067 million

Shares Issued 27,696,400 shares (Including 1,784,600 treasury shares)

Consolidated Workforce

862 full time employees, 1017 full time and contracted employees

As of June 30, 2015


30

Holding Company

SEPTENI HOLDINGS CO., LTD

SEPTENI VENTURES Co., Ltd.

SEPTENI CO., LTD Internet ad agency/Providing assistance for overall promotions on internet

Septeni America, Inc. Internet marketing business for North America region

MANGO Inc. SEM Operation Business Septeni Europe Co.,Ltd Internet marketing business for Europe region

Vasara Inc. Internet ad agency SEPTENI TECHNOLOGY CO., LTD. Web service development

HighScore, Inc. Social Media Marketing Support Business

JNJ INTERACTIVE INC. Internet ad agency in South Korea

EAGLE i Co., Ltd. Advertising Network Business SETPENI CROSSGATE CO., LTD. Ad Network and Platform Business

Septeni Original,Inc. Planning and developing its own services

ASP CO., LTD. e-marketing solutions

Septeni Asia Pacific Pte. Ltd. Internet ad agency in Asia and Pacific Ocean region

Tricorn Corporation CRM Service Business

New Business Development



AXEL MARK INC. Mobile Content Business ViViVit, Inc. Matching-type recruitment platform

COMICSMART Inc. Manga Content Business gooddo, Inc. Platform business of social contribution

July 30, 2015

Main Group Companies by Business Segment


Business Model for the Internet Marketing Business

31

Comprehensive Marketing Support Services for corporations leveraging the Internet.

Internet advertising sales and provision of various web solutions, We will provide In-House Services

such as marketing platforms including an ad network and cloud-based CRM services.

Clients


Advertising Agency Sales

Web Solutions

In-House Services

• Website creation, operations

• Creative • SEO • Social media creation, operations

• Cloud based CRM Systems

• Advertising platforms • Effectiveness measurement

• Internet media

etc

etc

Users

Internet Media Advertising

Sales

Solution Provision

Service Provision

Advertising Purchases

Advertising Distribution,

Display

Campaign Implementation, Operation, Effectiveness Measurement

Information Dispatch


The Media Content Business plans and develops digital content, including social games,

primarily for smartphones, and provides it to users through SNS, the application market, and

other platforms.

Copyright Owner

Sourcing

Provision Distribution Users

SNS Application

Market Communications

Carriers


etc

• Music • E-Books • Streaming Video • Fortune Telling

Business Model for the Media Content Business 32

Manga Artists Cultivation

Providing Works

Distribution

Mobile Game Business Content Business

• Social Games

• Native Applications

Manga Content Business

Management of Manga Artists

Manga Distribution Service

The business also develops and produces Manga artists and distributes Manga works, aiming

to plan and develop our own intellectual property.


Consolidated Balance sheet 33

End 3Q

FY9/15

End 2Q

FY9/15 Change Main Changes

Current Assets 20,620 19,494 ＋1,126 Cash and deposits:＋731

Notes and accounts receivable-trade:＋403

Non-current Assets 3,119 3,192 －72 Goodwill:－59

Total Assets 23,740 22,686 ＋1,054

Current Liabilities 11,633 11,055 ＋578 Accounts Payable:＋728

Unpaid taxes:－292

Non-current Liabilities

201 241 －40 Long-term loans payable:

－41

Total Liabilities 11,835 11,297 ＋538

Total Net Assets 11,905 11,389 ＋516 Retained earnings:＋481

Total Liabilities,

Net Assets 23,740 22,686 ＋1,054

（units：¥mn）


Consolidated Cash Flow 34

3Q FY9/15

(Apr-Jun) Main Changes

3Q FY9/14

(Apr-Jun)

Cash Flows from Operating Activities 610

Net income before taxes:＋831

Increase in accounts payable:＋728

Corporate and other taxes:△622 59

Cash Flows from Investing Activities 62 Sales of investment securities:＋58 △99

Cash Flows from Financing Activities 42 Increase in loans payable:＋43 94

Effect of Exchange Rate Changes on Cash and Cash Equivalents

10 △4

Net Increase (Decrease) in Cash and Equivalents 725 50

Cash and Equivalents at Term End 10,466 6,779

（units：¥mn）


550 567 571 574 663 666 664 668

755

186 177 161 163

183 190 184 179

180

29 27 27 27

29 28

69 67 67 67

73 71 73 75

82

0

200

400

600

800

1000

13/3Q 13/4Q 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q 15/3Q

35

834

838

826

831

948 955 921 922

ネットマーケティング事業メディアコンテンツ事業その他持株会社

SEPTENI Group Workforce Number Trend

1,017

Internet Marketing Business Media Content Business

Others

Holding Company

Documents

Business Results for 3Q Fiscal Year September 2015©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED. 4 3Q（Apr－Jun）Consolidated Earnings Highlights Net Sales: ¥16,588mn（Up 22.1%