FY2015-1Q Financial Results Briefing - インターネッ … Ad 703 4.8 1,698 9.4 241.5 Others 9,517 64.6 11,765 65.1 123.6 Search 2,986 20.3 3,061 16.9 102.5 Affiliate / Reward 1,351

D.A.Consortium Inc.August 5, 2015

FY2015-1QFinancial Results Briefing

©2015 D.A.Consortium All rights reserved

Table of Contents

Overview of Financial Results（Consolidated/Non-consolidated）

Business Trends

Key Measures

-1-


Overview of Consolidated Financial Results

-2-


*Operating Margin＝Operating Income / Gross Profit

Financial Highlights (Consolidated)

FY2015-1Q（Apr. 2015 to Jun. 2015）

Y on Y

Sales 31,674 107.8%

Gross Profit 4,335 110.6%

Operating Income 683 112.1%

Profit Attributable to Owners of Parent 309 87.9%

EBITDA 891 111.0%

Operating Margin* 15.8% ＋0.2pt

（Millions of Yen）

-3-


FY2015 Business Forecast Upward Revision & 1Q Progress

-4-

FY2015（Apr. 2015 to Mar. 2016）

Initial Forecasts

Revised Forecasts 1Q Results Progress

Rate

Sales 134,000 135,000 31,674 23.5%

Operating Income 2,700 3,550 683 19.3%

Ordinary Income 2,700 3,550 709 20.0%

Profit Attributable to Owners of Parent 1,150 1,350 309 22.9%

Net Income per Share 23.68 27.80 －－



24,77623,555

27,28329,720 29,388

27,65729,456

30,960 31,674

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

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

Quarterly Sales（Consolidated）（Millions of Yen）

-5-

FY2013 FY2014 FY2015


Increase Factor of Sales (Year on Year)

-6-

29,388

31,674 ＋3,451

＋143 △31△1,277

FY2014-1Q FY2015-1Q

+2.28 Billions of Yen+7.8％

DAC

irep UNITEDElimination of

internal transactions and

others



3,271 3,4153,653

4,052 3,920 3,877

4,3684,234

4,335

0

1,000

2,000

3,000

4,000

5,000

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

Quarterly Gross Profit（Consolidated）

-7-

FY2013 FY2014 FY2015



FY2014-1Q（Apr. 2014 to Jun. 2014）

FY2015-1Q（Apr. 2015 to Jun. 2015）

Sales Sales(Millions of Yen) % Sales

(Millions of Yen) % Y on Y（％）

Internet-related Business 29,350 99.7 31,398 99.0 107.0Agent Domain 26,749 90.9 29,623 93.4 110.7Media and DAS Domain 3,115 10.6 3,466 10.9 111.3Adjustment between Domains △514 -1.7 △1,691 -5.3 －

Investment Business 76 0.3 308 1.0 401.1TOTAL 29,426 100.0 31,706 100.0 107.7

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

(Millions of Yen) % Y on Y（％）

Internet-related Business 3,846 98.1 4,040 93.2 105.1Agent Domain 2,591 66.1 2,703 62.4 104.3Media and DAS Domain 1,299 33.2 1,391 32.1 107.1Adjustment between Domains △45 -1.2 △54 -1.3 －

Investment Business 74 1.9 294 6.8 397.4TOTAL 3,920 100.0 4,335 100.0 110.6

Results by Domain (Consolidated)

-8-


FY2014-1Q（Apr. 2014 to Jun. 2014）

FY2015-1Q（Apr. 2015 to Jun. 2015）

Sales（Millions of Yen）

Share（％）

Sales（Millions of Yen）

Share（％）

Y on Y（％）

Hakuhodo DY Group 12,299 41.9 15,741 49.7 128.0

Others 17,089 58.1 15,933 50.3 93.2

TOTAL 29,388 100.0 31,674 100.0 107.8

Sales to HDY Group and Others (Consolidated)

-9-


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)

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)

0%

20%

40%

60%

80%

100%

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

HDY Group

Others

（％ / Millions of Yen）

Sales to HDY Group and Others (Consolidated)

-10-

FY2015FY2013 FY2014


2,996 3,053 2,9963,365 3,310 3,389 3,552

3,901 3,651

12.1 13.0

11.0 11.3 11.3 12.3 12.1

12.6 11.5%

0

1,000

2,000

3,000

4,000

5,000

6,000

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

Personnel Others SG&A Expense Rate（Millions of Yen）

*Total number of directors, employees, temporary employees, etc.2,081Number of Employees*1,894

Quarterly SG&A Expenses (Consolidated)

-11-

FY2015FY2013 FY2014


275 362

657 686 610

488

815

332

683 8.4

10.6

18.0 16.9 15.6

12.6

18.7

7.9

15.8％

0

500

1,000

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

Operating Income Operating Margin


Quarterly Operating Income（Consolidated）

-12-

FY2015FY2013 FY2014


466562

886 876803

694

1,033

556

891

0

200

400

600

800

1,000

1,200

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


*EBITDA＝Operating Profit + Depreciation + Amortization of goodwill

Quarterly EBITDA（Consolidated）

-13-

FY2015FY2013 FY2014


FY2014（As of Mar.31, 2015）

FY2015-1Q（As of Jun.30, 2015）

Amount（Millions of Yen）

% Amount（Millions of Yen）

% Comparisons（％）

Current Assets 36,049 82.1 35,125 82.2 97.4Non-current Assets 7,848 17.9 7,615 17.8 97.0

Total Assets 43,897 100.0 42,741 100.0 97.4Current Liabilities 20,345 46.3 19,728 46.2 97.0Non-current Liabilities 553 1.3 524 1.2 94.8

Total Liabilities 20,899 47.6 20,253 47.4 96.9Shareholdersʼ Equity 13,467 30.7 13,005 30.4 96.6Non-controlling Interests 7,584 17.3 7,690 18.0 101.4Others 1,945 4.5 1,790 4.2 92.0

Total Net Assets 22,998 52.4 22,487 52.6 97.8Total Liabilities and Net Assets 43,897 100.0 42,741 100.0 97.4

Balance Sheets（Consolidated）

-14-


FY2015-1Q(Apr. 2015 to Jun. 2015）

Cash flows from operating activities △224

Cash flows from investing activities △382

Cash flows from financing activities △420Effect of exchange rate change on cash and cash equivalents △11

Net increase (decrease) in cash and cash equivalents △1,039

Cash and cash equivalents at beginning of period 11,421

Cash and cash equivalents at end of period 10,382

Statements of Cash Flows（Consolidated）


-15-

©2015 D.A.Consortium All rights reserved-16-

Overview of Non-consolidated Financial Results


Financial Highlights (Non-consolidated)


-17-

FY2015-1Q(from Apr. 2015 to Jun. 2015)

Y on Y

Sales 18,846 122.4%

Gross Profit 1,793 153.9%

Operating Income 452 502.1%

Net Income 689 143.6%

Operating Margin* 25.2% +17.5pt*Operating Margin＝Operating Income / Gross Profit


1,1031,038

944

1,427

1,165

1,4191,346

1,569

1,793

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

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

13,02112,509

14,846

16,871

15,39515,907

16,627

18,967 18,846

0

000

000

000

000

000

000

000

000

000

000

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

FY2015

（Millions of Yen） Sales Gross Profit

Quarterly Sales & Gross Profit（Non-consolidated）

-18-

FY2013 FY2014 FY2015FY2013 FY2014



Results by Service（Non-consolidated）

FY2014-1Q（Apr. 2014 to Jun. 2014）

FY2015-1Q（Apr. 2015 to Jun. 2015）

Sales Amount（Millions of Yen）


% Y on Y（％）

Media Service 14,738 95.7 18,064 95.8 122.6

Technology Service 582 3.8 509 2.7 87.5

Investment &Operation Service 74 0.5 272 1.4 365.5

TOTAL 15,395 100.0 18,846 100.0 122.4

Gross Profit Amount（Millions of Yen）


% Y on Y（％）

Media Service 875 75.1 1,308 73.0 149.4

Technology Service 231 19.8 228 12.8 99.0

Investment &Operation Service 58 5.0 256 14.3 435.8

TOTAL 1,165 100.0 1,793 100.0 153.9-19-


Business Trends

-20-


Sales breakdown by Ad Format（Non-consolidated）

FY2014-1Q（Apr. 2014 to Jun. 2014）

FY2015-1Q（Apr. 2015 to Jun. 2015）

Amount（Millions of Yen）


% Y on Y（％）

Display 10,220 69.3 13,463 74.5 131.7

Video Ad 703 4.8 1,698 9.4 241.5

Others 9,517 64.6 11,765 65.1 123.6

Search 2,986 20.3 3,061 16.9 102.5

Affiliate / Reward 1,351 9.2 1,272 7.0 94.2

Others 179 1.2 267 1.5 148.9

TOTAL 14,738 100.0 18,064 100.0 122.6

-21-


13,463

3,061

1,272

267

10,220

2,986

1,351

179

Display

Search

Affiliate/Reward

OthersFY2015-1Q

FY2014-1Q


（4/2015〜6/2015）

（4/2014〜6/2014）

By Ad Format（Non-consolidated）

By Device（Consolidated）

16,866 15,763

Programmatic Type

-22-

By Transaction Type（Consolidated）

11,937 8,501

Smart Device

Sales breakdown


4,930 5,164

6,356

4,3448,501 8,462

9,475 10,169

11,937

19.921.9

23.325.5

28.9 30.632.2 32.8

37.7％

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

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

Smart Device Ad Sales Percentage of SD Sales

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

-23-

FY2015FY2013 FY2014


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

1,524 1,623

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

3,673 1,435

1,230

1,642 1,843 2,466

2,237 2,557 2,471 3,249 13,224

11,817

13,933 14,39215,763

14,463 15,07014,902

16,866

53.4 50.2 51.1

48.4

53.6 52.3 51.2

48.1

53.3%

0

4,000

8,000

12,000

16,000

20,000

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

Search RTB and Others Display Network DMP % in Total Sales


FY2015FY2014FY2013

Quarterly Sales of Programmatic Ads（Consolidated）



2,773

2,490

2,199

1,467

1,357

1,055

924

808

655

610

607

528

468

395

1,627

2,182

1,414

1,233

1,237

939

732

713

504

455

310

986

288

394

Commercial equipment/Office supplies

Finance/Insurance

Transportation equipment & supplies

Transportation/Tourism/Entertainment

Foodstuffs

Cosmetics/Toiletries

Medical supplies

Beverages/Luxury foods

Real estate/Housing facilities

Department store/Trading company

Textile apparel and accessories

Telecommunications

Educational services/Universities

Internet information site

FY2015-1Q

FY2014-1Q

（4/2015〜6/2015）

（4/2014〜6/2014）

Quarterly Sales by Client Industry（Non-consolidated）


Quarterly Sales to Top100 Advertisers Number of Our Clientsin Top100 Advertisers

14,738 15,09215,960

18,279 18,064

25.2 24.3 18.9

22.8 20.4%

0

10,000

20,000

1Q 2Q 3Q 4Q 1Q

Sales of DAC media Service (Non-consolidated)Sales to Top100 Advertisers (Non-consolidated)% of Sales to Top100 in Total Sales

70 68 65 6860

0

50

100

1Q 2Q 3Q 4Q 1Q

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


（Companies）

Quarterly Trend of Top100 Advertisers

FY2014

-26-

FY2015 FY2014 FY2015


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.

Summary of Consolidated Subsidiariesʼ Results（Y on Y）

Agent DAS

Media

Agent

Agent

Agent

Agent

Agent

Agent

DAS

Media

-27-

DAS

DAS


1.90

4.84

1.741.91

6.77

1.231.68 1.51

0.78

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Sales Operating Income Ordinary Income

FY2013-1Q FY2014-1Q FY2015-1Q

Consolidated/Non-consolidated Ratio

（4/2014〜6/2014）（4/2013〜6/2013）（4/2015〜6/2015）

-28-


Key Measures

-29-


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

Communication Media Curation Media

-30-

FY2013 FY2014

Focus Area

FY2015

x2.1

Expansion of Premium Media Ad Sales

Quarterly Sales of Premium Media Ads（Non-consolidated）


Expansion of Video Ad Sales

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

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

Quarterly Sales of Video Ads（Non-consolidated）

FY2013 FY2014 FY2015

x2.4

FY20131,735 Mil.¥

FY20144,252 Mil.¥


Focus Area


Appendix

-32-


Business Domains of DAC Group

Agent Domain

DAS Domain Media DomainProviding services to

consumersProviding technologies, creative and solutions

-33-

Dealing with Media and Ad Agencies


Business Model of DAC GroupAd

vert

iser

s

Use

rs

-34-

Media Representative and Digital Solutions

RTB

DMP

Ad Network

Global

SEM servicesCreative Social media marketing

Research

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.

-35-

＋


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

-36-

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. 43.2% 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. 100.0% 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. 85.0% Comprehensive digital marketing solution in the Southeast Asian region.

Consolidated Subsidiaries（As of June,2015）

TSE 2nd

Mothers

-37-


Name Ownership Business

Members Co., Ltd. 18.9% 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.

Equity-method Affiliates（As of June,2015）

Centrex

Bursa Malaysia

-38-


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 June,2015）

TSE 1st

Mothers

-39-

Mothers

Mothers


Vision of DAC Group

-40-

“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.

Documents

FY2015-1Q Financial Results Briefing - インターネッ … Ad 703 4.8 1,698 9.4 241.5 Others 9,517 64.6 11,765 65.1 123.6 Search 2,986 20.3 3,061 16.9 102.5 Affiliate / Reward 1,351