Yahoo Japan's CEO Discusses F4Q 2011 Results - Earnings Call Transcript

Yahoo Japan Corp. (YAHOF.PK)

F4Q 2011 Earnings Call

April 24, 2012 3:30 am ET

Executives

Manabu Miyasaka – President and Chief Executive Officer

Shin Murakami – Executive Officer and Chief Mobile Officer

Analysts

Yoshitaka Nagao – Nomura Securities

Yosuke Tomimatsu – Merrill Lynch Securities

Oliver Matthew – Mizuho SA

Presentation

Manabu Miyasaka

Hello everyone. How do you do? And effective from April, I’m Miyasaka, I’m effective from April, and now I’m serving as the Corporate Officers and the CEO.

From now on, let me make my presentations about the full-year and the quarterly business results. So first of all, the revenues, for the first time and annually, we have exceeded 33 billion yen and then also our net income for the first time have exceeded 100 billion yen. This is the actual business results.

And this is the historical migrations at revenues and starting from the services, we have achieved gross 15 years in a row. Next, this is about the historical trend of the profits. Again, also for this profit, we have the gross of the profits in 15 years in a row.

And this is about our business ended Q4, and when it comes to revenue, we have a 79.9 billion yen, with about 43.8 billion yen of operating income and 27.6 billion yen of net income, so that’s a 13.3% growth of net income. And we’re going to terminate the contract with the recruitment business, so that we have this – the settlement money, we have to recognize it like this.

And when it comes to that historical trend of this quarterly sales, as it’s shown here on this slide and when I look at (inaudible) the January to March period over 2003, and this – you can look at that historical trend and also now we have this, the continuous growth of the revenues also on a quarterly basis.

And when it comes – this is the total of the revenues on a quarterly basis, it’s shown here and ¥4.1 billion and to the total and 5.4% of the gross year-on-year, but this is the breakdown of each of the business units and particularly, in the business services business, we have with a double-digit growth and also a 5.2% growth in consumer business, these have be favorable.

And when it comes, this been a focus on the advertising business on a quarterly business and annually, we have a ¥2.7 billion of growth and when it comes to listing, we have [8 times] growth and when it comes, now we have a double digit (inaudible) digit of this advertising business, comes from the mobile.

But when it comes to display advertising, that we have – and we found and get up to a good start in January and so, this is just our the goals limited than the other listing and the other areas. This is about comes industry-wise break down of the listing advertising and has been – adverting – is going back to when it comes to front site and read it the areas has some moved into the growth. But for all the other areas we have the growth just like this.

This is about the breakdown of – the industry breakdown of business for advertising performance (inaudible) and this is because of the financial insurance and that we have a decline the business on this the – financial and insurance and also when it comes to this usual game areas and because that – we’ll have the advertising on the feature phone advertising, a decline on a year-on-year basis. And this a rather a historical profit trend on a quarterly basis.

Next, we’re going to talk about this the Q1 of FY2012. This is the forecast, would you please check out the forecast. And today, we’d like to talk little details about – now, we have new organizations in April and with three weeks have passed and working together within all this new team members and now we have discussed considerably the hump to grow our business. Now we’re in the middle of the discussions. But now we’d like to report that one of our ideas to grow our business. And we think that’s – we’re going to generate that the second foundation of the company. This is one of the keyword. And in order to achieve this, the second foundation, so that we were like to reaccelerate that revenues and profit. Although, we haven’t kept growing the gross revenues and profits in the past 15 years, but we’d like to more dramatically grow our gross revenues and profits.

Now, let me talk about that the reason why Yahoo! Japan have successfully increased the revenues and profits. First to go and we have insisted on our top philosophy of users first. We’d like to also insist on the (inaudible) about this onward and our mission is that we’d like to provide that the solution providing engine to solve (inaudible) older people and social issues with information technology.

For example and (inaudible) we suggesting is searching and obviously the shopping or selling or that will meet the demand of that knowledge so that we provide a needs, also the news and also they’re providing the opportunity to volunteer to help with each other. So all these issues underneath can be met with information technology. And we can provide that information technology; we can help them to solve all these problems. These added our corporate philosophies and we have achieved it a lot. And when it comes to the solution providing engines and we have successfully provided to all business solutions, so now currently, and for the PC internet users, about 84% of the users use the Yahoo! JAPAN at least once a month. And not only for the Yahoo! JAPAN, but also when I look at this [page], searching engines, we are top like number one, whereas for the News we are number one, also the Auctions we are the top player. And also the mail users that will also like the number one, and also the Knowledge Search is ranked number one.

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