PDF(1438Kb)
Transcription
PDF(1438Kb)
“Always On Your Side” October 2009 ZAPPALLAS, INC. Tokyo Stock Exchange First Section: Code No. 3770 Contents Chapter 1 About Zappallas 2 Chapter 2 Strengths of Zappallas 9 Chapter 3 Mobile Market 14 Chapter 4 FY4/2010 Management Policy and Earnings Forecast 19 Reference 1 Results Data 23 Reference 2 Introduction of Zappallas's Contents 32 (C)2009,Zappallas,Inc.All Rights Reserved. 1 History March 2000 Established Cyberbiz Inc. (the current Zappallas, Inc.) April 2001 Changed company name to Zappallas, Inc. April 2004 Launched 22 websites of new fortune-telling content, capturing the top share of the fortune-telling market May 2005 Listed on the Mothers market of the Tokyo Stock Exchange January 2006 Fee-based members exceeded 1 million May 2007 Collaborated with Yahoo Japan Corporation in launch of fortune-telling website for the mobile version of “Yahoo! Uranai” October 2007 Fee-based members exceeded 1.5 million July 2008 Fee-based members exceeded 2 million February 2009 Changed listing to the First Section of the Tokyo Stock Exchange February 2009 Launched fortune-telling application “Today’s stars divination” for the iPhone February 2009 Collaborated with JR East, Yahoo, and East Japan Marketing & Communications in launch of "Y! Suica” May 2009 Entered into a capital tie-up with Nikkatsu Corporation (C)2009,Zappallas,Inc.All Rights Reserved. 2 Trends in Earnings Results Stable business growth and profit margin improvement (Millions of yen) 70.0% 12,000 64.7% 60.0% 59.5% 10,000 54.5% 50.0% 48.1% 8,000 40.0% 6,000 33.7% 33.5% 10,308 30.0% 8,550 4,000 2,000 6,939 3,749 242 Net sales 4,193 425 5,319 766 2,709 20.0% 1,870 Operating income Gross profit margin 10.0% 1,251 0 0.0% Apr '04 Apr '05 Apr '06 Apr '07 Apr '08 Apr '09 * Figures for 2004 and 2005 are on a parent basis. (C)2009,Zappallas,Inc.All Rights Reserved. 3 FY4/2009 Consolidated Balance Sheets Consolidated Balance Sheets (Millions of yen) End-Apr 2009 Amount Comp. End-Apr 2008 Amount Comp. Change Current assets 6,720 82.5% 5,544 82.7% 1,176 Noncurrent assets 1,427 17.5% 1,161 17.3% 266 86 1.1% 115 1.7% -29 Intangible assets 448 5.5% 412 6.1% 36 Investments and other assets 893 11.0% 632 9.4% 261 Total assets 8,148 100.0% 6,705 100.0% 1,443 Total liabilities 1,872 23.0% 1,725 25.7% 147 Total net assets 6,276 77.0% 4,979 74.3% 1,297 Total liabilities and net assets 8,148 100.0% 6,705 100.0% 1,443 Property, plant and equipment Consolidated Cash Flows (Millions of yen) Item FY4/2009 FY4/2008 Cash flows from operating activities 1,671 1,243 Cash flows from investing activities -213 -651 Cash flows from financing activities -293 -154 Increase (decrease) in cash and cash equivalents 1,163 438 Cash and cash equivalents at beginning of period 2,880 2,441 Cash and cash equivalents at end of period 4,044 2,880 (C)2009,Zappallas,Inc.All Rights Reserved. 4 Business Domain of Zappallas Digital Contents Mobile Commerce Fortune-telling “Decome”, etc. Others Online shopping Mobile phone sales Mobile advertisements Mobile solutions General consumers centered on the F1 segment of females aged 20-34 (JR East, transcosmos, etc.) 1.6% Composition of sales by segment Digital contents 19.6% Mobile commerce 78.8% Others As of the end of July 2009 Note: “Decome” is an acronym for "decoration e-mail." Please refer to pages 35 and 36 for details. (C)2009,Zappallas,Inc.All Rights Reserved. Corporate clients 5 Zappallas's Digital Content Digital contents provided by Zappallas can be accessed through the services of mobile telecom carriers such as NTT docomo, and Internet companies such as Yahoo! Japan. i Menu List Weather/News/Information Mobile banking Securities/Card/Insurance Transportation/Map/Travel Shopping/Tickets Fashion/Cosmetics Ringtone melodies/Karaoke Standby screen i apli standby/Frame Games Fortune telling Sports Fortune-telling Decome Standby screens Hobbies, games PC Western Fortune-telling Western Fortune-telling 1. Free fortune-telling 1. Free fortune-telling 2. Free love fortune-telling 2. Free love fortune-telling 3. Prophet Barath Klara 3. Prophet Barath Klara 4. Romance god DX 4. Romance god DX 5. Kagami Ryuji 5. Kagami Ryuji 6. Three months from now 6. Three months from now 7. Friendship & love fortune7. telling Friendship & love fortunetelling 8. Promises from a former 8. life Promises from a former life 9. Fate and prophecy 9. Fate and prophecy 10. Destiny love fortune10.telling Destiny love fortunetelling 240 sites 58 sites 41 sites 20 sites 194 sites (as of the end of July 2009) (C)2009,Zappallas,Inc.All Rights Reserved. 6 Business Model Provide high quality contents and shopping services as an official content provider Content Copyright holders Copyright Suppliers Royalty Order Delivery ZAPPALLAS (Product planning, website operation) Content fee after deduction of substitute collection fees (approx. 10%) Operate official website Telecom carriers Telecom carriers, etc. (NTT docomo, KDDI, Softbank) (NTT docomo, KDDI, Softbank) Provide contents through carriers’ portal websites Zappallas's shopping websites are listed on the portal websites of telecom carriers Collect monthly subscriber fee of ¥300 Customers (C)2009,Zappallas,Inc.All Rights Reserved. Payment ZAPPALLAS (Content planning, website operation) Provide official contents (fortune-telling, decome, etc.) Online shopping Order Delivery Customers 7 Payment Chapter 1 About Zappallas 2 Chapter 2 Strengths of Zappallas 9 Chapter 3 Mobile Market 14 Chapter 4 FY4/2010 Management Policy and Earnings Forecast 19 Reference 1 Results Data 23 Reference 2 Introduction of Zappallas's Contents 32 (C)2009,Zappallas,Inc.All Rights Reserved. 8 Zappallas's Strengths Strength 1 Customer base centered on the F1 segment Strength 2 Accumulation of data regarding user attributes via the digital contents business (database utilization) Strength 3 “Flow” business model that generates ongoing sales and profits (C)2009,Zappallas,Inc.All Rights Reserved. 9 Strength 1 Customer base centered on the F1 segment members: 5,154,000 persons Non-fee members: 2,931,000 persons Fee-based members: 2,223,000 persons (As of the end of July 2009) Breakdown Breakdownby bygender gender Breakdown Breakdownby byage age 50s and over 3% 40s 11% Male 22.0% Teens 14% 30s Female 78.0% 32% 20s 40% Core Core user user base base isis females -34 females aged aged 20 20-34 (C)2009,Zappallas,Inc.All Rights Reserved. 10 Average age 29.1 years old Strength 2 Database utilization Members’ preferences and usage patterns Database Analysis Members use service Forecast of preferences Examples of items of analysis •What types of content does this group of customers like? •What kind of introduction would get this group of customers to register as members? •How many customers have this attribute? Are their numbers increasing? •This type of product will be easy to sell (or difficult to sell) to customers with what attributes? •What types of products sell well among customers with this attribute? •Why do customers cancel their membership? (C)2009,Zappallas,Inc.All Rights Reserved. 11 Propose content and products that match members’ preferences E-mail Strength 3 “Flow” business model that generates ongoing sales and profits (1) No. of users Avg. sales per user x No. of users x Profit margin = Operating income (1) (2) 30 0 第 10期 投 入 members したコ ンテン ツに ユーザ ー in Term 10 Users whoに became attracted by よる content launched 第 9期 にbecame 投 入 したコ ンテン ツ にbyよる ユーザ ー in Term 9 Users who members attracted content launched 25 0 第 8期 にbecame 投 入 したコ ンテン ツ にbyよる ユーザ ー in Term 8 Users who members attracted content launched 20 0 第 7期 にbecame 投 入 したコ ンテン ツ にbyよる ユーザ ー in Term 7 Users who members attracted content launched Users who became attracted by content Term 6 第 6期 までに 投members 入 した コン テンツ に よるlaunched ユー ザthrough ー 15 0 10 0 50 0 / 03 04 / 04 04 / 05 04 /0 06 4 / 07 04 / 08 04 / 09 04 Established an earnings structure in which operating income continues to increase (2)Profit margin (Ratio of costs to sales) 1.7 1.2 FY4/2008 5.3 19.6 3.7 14.5 5.3 12.0 -3.9% -3.3% 1.3 1.0 FY4/2009 5.4 0.0% 15.7 10.0% (C)2009,Zappallas,Inc.All Rights Reserved. 4.0 20.0% 16.5 30.0% 12.0 40.0% 50.0% 12 4.2 60.0% 70.0% Labor costs Royalties Subcontract expenses Other costs Personnel expenses Advertising expenses Substitute collection fees Other costs Chapter 1 About Zappallas 2 Chapter 2 Strengths of Zappallas 9 Chapter 3 Mobile Market 14 Chapter 4 FY4/2010 Management Policy and Earnings Forecast 19 Reference 1 Results Data 23 Reference 2 Introduction of Zappallas's Contents 32 (C)2009,Zappallas,Inc.All Rights Reserved. 13 Trends in the Mobile-related Market (100 millions of yen) Mobile commerce 14,000 Mobile content 12,000 10,000 8,689 8,000 7,329 5,641 6,000 4,074 4,000 2,593 2,000 2,603 3,150 3,666 4,272 4,835 0 2004 2005 2006 2007 2008 Source: Survey Results on State of Mobile Content Industry Structure 2008 (Ministry of Internal Affairs and Communications) (C)2009,Zappallas,Inc.All Rights Reserved. 14 Trends in the Mobile Content Market (100 millions of yen) Ringtone melodies (Chaku-Melo) Ringtone songs (Chaku-Uta) Ringtone songs (Chaku-Uta Full) Mobile games Decoration e-mail (Decome) Electronic books Ring back tone Fortune telling Standby screens Dress-up tools (Kisekae) Weather/news Traffic information Daily life information Avatar/items (SNS, etc.) Other mobile contents Total 2004 1,167 199 2 412 2 3 6 103 225 484 2,603 2005 1,048 463 99 589 14 16 13 123 236 51 74 27 397 3,150 2006 843 522 237 748 55 69 29 158 248 3 63 125 45 5 516 3,666 2007 559 568 506 848 116 221 87 182 227 23 73 164 54 60 584 4,272 2008 473 483 707 869 171 395 110 200 229 64 78 206 77 157 616 4,835 FY07FY07-08 +47% FY07FY07-08 +10% Source: Survey Results on State of Mobile Content Industry Structure 2008 (Ministry of Internal Affairs and Communications) (C)2009,Zappallas,Inc.All Rights Reserved. 15 Trends in the Mobile Commerce Market The mobile commerce market is growing 19% annually. (100 millions of yen) Merchandise Services Transactions Total 2004 969 2005 1,542 2006 2,583 2007 3,292 2008 3,770 1,183 441 2,593 1,646 886 4,074 1,945 1,113 5,641 2,806 1,231 7,329 3,497 1,422 8,689 Merchandise: online shopping, etc. Services: tickets, accommodation booking, etc. Transactions: stock trading, auctions, etc. Source: Survey Results on State of Mobile Content Industry Structure 2008 (Ministry of Internal Affairs and Communications) (C)2009,Zappallas,Inc.All Rights Reserved. 16 Comparison of Results with Peers (Millions of yen) ZAPPALLAS Net sales Operating income Operating margin (Reference) FY4/2005 FY4/2006 FY4/2007 FY4/2008 FY4/2009 1Q FY4/2010 4,193 5,319 6,939 8,550 10,308 2,789 425 766 1,251 1,870 2,709 764 10.1% 14.4% 18.0% 21.9% 26.3% 27.4% *Figures for FY4/2005 are on a parent basis. MTI Net sales Operating income Operating margin (Reference) FY9/2004 FY9/2005 FY9/2006 FY9/2007 FY9/2008 1Q FY9/2009 11,524 14,757 17,443 18,520 21,615 5,798 196 212 902 1,123 1,726 266 1.7% 1.4% 5.2% 6.1% 8.0% 4.6% DeNA Net sales Operating income Operating margin FY3/2005 2,870 482 16.8% FY3/2006 FY3/2007 FY3/2008 FY3/2009 6,429 14,181 29,736 37,607 1,883 4,506 12,662 15,843 29.3% 31.8% 42.6% 42.1% (Reference) 1Q FY3/2010 8,810 3,137 35.6% *Figures for FY3/2005 are on a parent basis. mixi Net sales Operating income Operating margin FY3/2005 - FY3/2006 - FY3/2007 FY3/2008 FY3/2009 5,247 10,052 12,052 2,184 3,749 3,771 41.6% 37.3% 31.3% (Reference) 1Q FY3/2010 3,059 867 28.4% *Figures for FY3/2007 and FY3/2008 are on a parent basis. (C)2009,Zappallas,Inc.All Rights Reserved. 17 Chapter 1 About Zappallas 2 Chapter 2 Strengths of Zappallas 9 Chapter 3 Mobile Market 14 Chapter 4 FY4/2010 Management Policy and Earnings Forecast 19 Reference 1 Results Data 23 Reference 2 Introduction of Zappallas's Contents 32 (C)2009,Zappallas,Inc.All Rights Reserved. 18 Business Portfolio with an Eye to Medium-term Growth Fortune-telling category: aim to maintain top share while maximizing profits. “Decome” category: focus on growth and profit margins. All segments: strive to increase revenues and profits. Profit High Fortune -telling Decome Digital Digitalcontents contents Commerce Low Low (C)2009,Zappallas,Inc.All Rights Reserved. New services High 19 Growth FY4/2010 Earnings Forecast (Millions of yen) Consolidated FY4/2009 Results Amount Net sales % FY4/2010 Forecasts Amount Change % % 10,308 100 % 11,350 100 % 10.1 % Operating income 2,709 26.3 % 3,110 27.4 % 14.8 % Ordinary income 2,695 26.2 % 3,100 27.3 % 15.0 % Net income 1,580 15.3 % 1,820 16.0 % 15.1 % Non-consolidated FY4/2009 Results Amount % FY4/2010 Forecasts Amount % Change % Net sales 9,612 100 % 10,710 100 % 11.4 % Operating income 2,696 28.0 % 3,110 29.0 % 15.3 % Ordinary income 2,710 28.2 % 3,120 29.1 % 15.1 % Net income 1,598 16.6 % 1,850 17.3 % 15.7 % (C)2009,Zappallas,Inc.All Rights Reserved. 20 FY4/2010 Earnings Forecast by Segment (Millions of yen) FY4/2009 Results Amount Net sales % Amount Change % % Digital contents 8,078 78.4% 9,080 80.0% 12.4% Mobile commerce 1,938 18.8% 1,990 17.5% 2.7% 291 2.8% 280 2.5% -3.8% Corporate total 10,308 100.0 11,350 100.0 10.1% Digital contents 3,226 - 3,710 - 15.0% 141 - 200 - 41.8% 63 - -30 - -% Elimination or corporate -721 - -770 - 6.8% Corporate total 2,709 - 3,110 - 14.8% Others Operating income FY4/2010 Forecasts Mobile commerce Others (C)2009,Zappallas,Inc.All Rights Reserved. 21 Chapter 1 About Zappallas 2 Chapter 2 Strengths of Zappallas 9 Chapter 3 Mobile Market 14 Chapter 4 FY4/2010 Management Policy and Earnings Forecast 19 Reference 1 Results Data 23 Reference 2 Introduction of Zappallas's Contents 32 (C)2009,Zappallas,Inc.All Rights Reserved. 22 Fee-based Members Fee-based members (1Q-end): 2,223,000 persons (+37,000 QoQ) (10,000 people) 220 Fortune 占い デコメ Decome -telling Standby 待受 200 8.9 180 7.0 160 140 120 7.9 22.7 9.1 25.0 11.5 7.1 25.7 Hobbies, games 趣味・ゲーム 8.1 8.3 27.2 26.1 25.4 8.2 8.0 27.7 25.9 31.6 36.1 40.4 21.5 22.7 144.4 148.5 147.4 148.1 148.1 Apr ’09 09/04 Jul ’09 09/07 25.3 18.5 9.4 18.3 100 80 60 110.8 123.8 125.6 137.2 40 20 0 Jul ’07 07/10 Oct ’07 08/01 Jan ’08 08/04 Apr ’08 07/07 (C)2009,Zappallas,Inc.All Rights Reserved. Jul ’08 08/10 Oct ’08 09/01 Jan ’09 08/07 23 Number of Websites Number of websites offered: 359 sites (240 of these are fortune-telling websites) (Sites) 400 Fortune 占い -telling Decome デコメ Standby 待受 Hobbies, games 趣味・ゲーム 350 16 300 250 15 35 21 200 150 12 35 26 100 13 36 27 150 158 172 Jul ’07 07/07 Oct ’07 07/10 Jan ’08 08/01 13 33 11 31 33 30 196 186 14 39 39 207 15 41 44 220 41 51 232 20 41 58 240 50 0 Number of newly launched PC contents (C)2009,Zappallas,Inc.All Rights Reserved. 8 5 10 Apr ’08 08/07 Jul ’08 08/04 14 13 24 Oct ’08 09/01 Jan ’09 09/04 Apr ’09 09/07 Jul ’09 08/10 12 14 16 24 Quarterly Net Sales Sales have been broadly in line with projections. The digital contents business accounted for 2,197 million yen of the total, the mobile commerce business 547 million yen, and the others business 44 million yen. (Millions of yen) Others business 3,000 Mobile commerce business Digital contents business 2,500 1,500 2,523 2,392 2,075 2,000 2,741 1,928 81 408 93 394 1,000 1,437 1,587 2,154 77 133 70 2,589 2,454 61 469 426 1,984 1,966 441 58 496 101 545 2,789 44 547 410 1,666 1,817 2,034 2,093 2,197 500 0 Jul ’07 07/07 (C)2009,Zappallas,Inc.All Rights Reserved. Oct ’07 08/01 Jan ’08 08/04 Apr ’08 08/07 Jul ’08 08/10 Oct ’08 09/01 Jan ’09 09/04 Apr ’09 07/10 25 Jul ’09 Quarterly Operating Income (Consolidated) Achieved record quarterly profits due to a rise in net sales and the gross profit margin. 営業利益 Operating income (Millions of yen) Operating margin 営業利益率 Higher advertising expenses Payment of fiscal yearend bonuses to employees 900 27.5% 26.1% 800 23.5% 700 28.0% 27.8% 23.0% 27.4% 30.0% 25.0% 22.1% 20.0% 600 15.8% 500 15.0% 400 694 300 200 452 478 686 764 720 607 561 10.0% 378 5.0% 100 0 Jul ’07 (C)2009,Zappallas,Inc.All Rights Reserved. Oct ’07 Jan ’08 Apr ’08 Jul ’08 26 Oct ’08 Jan ’09 Apr ’09 Jul ’09 0.0% Earnings Results in the Digital Contents Business The gross profit margin continues to improve due to a decline in the ratio of sales of outsourced content requiring IT system usage. Payment of fiscal yearend bonuses to employees (Millions of yen) Operating income Net sales 2,500 Gross profit margin 73.6% 70.5% 2,000 67.5% 68.2% 70.9% 1,984 75.7% 73.8% 1,966 73.9% 2,197 72.2% 75% 2,093 2,034 70% 1,817 1,666 1,587 80% 65% 1,500 1,437 60% 55% 1,000 789 577 611 813 825 670 888 50% 723 45% 510 500 40% 35% 0 Jul ’07 (C)2009,Zappallas,Inc.All Rights Reserved. Oct ’07 Jan ’08 Apr ’08 Jul ’08 27 Oct ’08 Jan ’09 Apr ’09 Jul ’09 30% Earnings Results in the Mobile Commerce Business Achieved record quarterly profits mainly due to “Pocket Market” growth and profit margin improvement. (Millions of yen) 800 Operating 営業利益 income Net sales 売上高 700 31.3% 600 500 400 27.6% 27.9% 394 31.7% 32.8% 33.3% 547 545 35% 30% 496 469 441 410 32.1% 29.2% 25.3% 408 40% Gross profit margin 売上高総利益率 25% 426 20% 300 15% 200 10% 100 0 -100 3 -5 07/07 Jul ’07 (C)2009,Zappallas,Inc.All Rights Reserved. 37 5 19 29 42 51 5% -8 07/10 Oct ’07 08/01 Jan ’08 08/04 Apr ’08 08/07 Jul ’08 28 08/10 Oct ’08 09/01 Jan ’09 09/04 Apr ’09 09/07 Jul ’09 0% Achievement Rate of FY4/2010 Earnings Forecast (Millions of yen) Consolidated FY4/2010 First-half Forecasts FY4/2010 Full-year Forecasts First-half achieveme nt rate Full-year achieveme nt rate 100% 51.3% 24.6% FY4/2010 1Q Results Net sales 5,440 100% 11,350 Operating income 1,470 27.0% 3,110 27.4% 764 27.4% 52.0% 24.6% Ordinary income 1,460 26.8% 3,100 27.3% 763 27.4% 52.3% 24.6% 870 16.0% 1,820 16.0% 448 16.1% 51.5% 24.6% First-half achieveme nt rate Full-year achieveme nt rate 100% 50.9% 24.3% Net income Non-consolidated FY4/2010 First-half Forecasts 100% 2,789 FY4/2010 Full-year Forecasts FY4/2010 1Q Results Net sales 5,120 100% 10,710 100% Operating income 1,470 28.7% 3,110 29.0% 753 28.9% 51.2% 24.2% Ordinary income 1,470 28.7% 3,120 29.1% 757 29.1% 51.5% 24.3% 880 17.2% 1,850 17.3% 446 17.1% 50.7% 24.1% Net income 29 2,604 Achievement Rate of FY4/2010 Earnings Forecast by Segment (Millions of yen) FY4/2010 Forecasts Amount Net sales Operating income FY4/2010 1Q Results Amount (%) Achieveme nt rate (%) (%) Digital contents 9,080 80.0% 2,197 78.8% 24.2% Mobile commerce 1,990 17.5% 547 19.6% 27.5% 280 2.5% 44 1.6% 15.7% Corporate total 11,350 100.0 2,789 100.0 24.6% Digital contents 3,710 - 888 - 23.9% Mobile commerce 200 - 51 - 25.5% Others -30 - -9 - - Elimination or corporate -770 - -166 - - Corporate total 3,110 - 764 - 24.6% Others * Above figures are before allocation of corporate expenses in the segment accounting. 30 Chapter 1 About Zappallas 2 Chapter 2 Strengths of Zappallas 9 Chapter 3 Mobile Market 14 Chapter 4 FY4/2010 Management Policy and Earnings Forecast 19 Reference 1 Results Data 23 Reference 2 Introduction of Zappallas's Contents 32 (C)2009,Zappallas,Inc.All Rights Reserved. 31 Fortune-telling Contents Ranking Ranking of NTT docomo's fortune-telling lineup (as of July 31, 2009) Outlined items are content provided by Zappallas Western WesternFortune-telling Fortune-telling 1.1. 2.2. 3.3. 4.4. 5.5. 6.6. Free Freefortune-telling fortune-telling Free love Free lovefortune-telling fortune-telling Prophet Barath Klara Prophet Barath Klara Romance Romancegod godDX DX Kagami KagamiRyuji Ryuji Three months Three monthsfrom fromnow now 7.7. 365 365days daysbirthday birthday fortune-telling fortune-telling 8.8. Friendship Friendship&&love lovefortunefortunetelling telling 9.9. Destiny Destinylove lovefortunefortunetelling telling 10. 10.Fate Fateand andprophecy prophecy Eastern EasternFortune-telling Fortune-telling 1.1. Good Goodluck luckfree freefortunefortunetelling telling 2.2. Hosoki HosokiKazuko KazukoRokusei Rokusei Senjutsu Senjutsu 3.3. 4.4. 5.5. 6.6. Shinjuku Shinjukuno noHaha Haha Ultimate Ultimatesurname surnamedivination divination 1.1. 2.2. Diagnostic Diagnosticand and psychological tests psychological tests Free Freepsychological psychologicaltest test Ehara Hiroyuki Ehara Hiroyuki 3.3. Good Goodluck luckdream dream interpretation interpretation 4.4. Adult Adultrelationships relationships Free Freereal reallove lovefortune-telling fortune-telling 5.5. Spicy Spicyromance romancediagnosis diagnosis Shimo Yoshiko Ryu Seimei 6.6. Kayama Shimo Yoshiko Ryu Seimei KayamaRika Rikatherapy therapy 7.7. Good luck surname appraisal 7. Truth and lies of Good luck surname appraisal 7. Truth and lies ofthe the male heart 8.8. Ishida Chihiro male heart Ishida Chihiro 8.8. Your 9.9. Naoi Yourprice? price? NaoiYumily Yumilylove lovefeng-shui feng-shui 9. Former 10. 9. Formerlife lifetherapy therapy 10.Anzai AnzaiRyu Ryugood goodluck luck appraisal 10. Truth diagnosis appraisal 10. Truth diagnosis *Ranking based on user numbers from July 1st to 30th (C)2009,Zappallas,Inc.All Rights Reserved. 32 Introduction of Fortune-telling Websites ("Prophet Barath Klara") Choice letter July Special Daily Horoscope Basic Personality Future Divination Menu by Type of Worry Klara Column Card Collection "Is that person striking up conversations over trivial things because he is interested?“ The card you have chosen is here. Message from Klara New information *Latest menu* July 9, 2009 Truth letter * "Is that person striking up conversations over trivial things because he is interested?" was added. July 8, 2009 Miracle prayer * "Why can't I find a lover?" was added. + July Special + Money/Work/Relationships Lucky message from Klara Let's give advice to the many people with money and job worries. (C)2009,Zappallas,Inc.All Rights Reserved. “Barath Klara, an amazing prophet who has made many accurate prophecies on television and in magazines, gives warm – yet stern – advice for people with concerns about their future.” * Klara's destiny commentary It is not because he is particularly interested. He looks at you as he does others. He is not purposely striking up a conversation. Talking to you comes very natural to him. So there is some chance that things could develop further if you ride the natural flow that destiny has stirred up for you. * The miracle of Klara cards * +Truth letter/Decision letter+ July menu unveiled 33 “She can solve all your worries about the future by shedding light on current problems based on past events with "Future Reading," and by providing clear Yes-No answers concerning necessary action with "Klara Cards.”” Introduction of Fortune-telling Websites ("Three months from now") This month's horoscope What’s new *Prophecy of the stars* July 28-30 A lucky period of romance will visit "Boss-san". Today's horoscope Your luck today will be so-so. New encounters will… Continue reading July horoscope Horoscope calendar Updated the 1st of each month In the second half of 2009, the romantic feelings of that person you're interested in will… Two new unread horoscope menus introduced every day July special New! Second half of 2009 Horoscope readings New! July 2009 Your future together according to the stars. List of special topics (C)2009,Zappallas,Inc.All Rights Reserved. July 2009 Overall luck This month brings good fortune. You will see significant improvements in monetary support and your finances. Expect to see supplementary income, and better chances for getting a loan for your business. Because this is also a good time to make a major purchase, now is the time to move ahead with any plans to buy a car, condo, etc. This is also a good month for your palate as you will come across many good restaurants. You can expect every day to be stimulating as you encounter many new experiences this month. Other horoscopes Romance Encounters Last month's horoscope Fortune-telling menu For yourself For friends Lover compatibility Turning points 34 “What event happened to you three months after your birth? How will he/she feel about you three months from now? What will your relationship be like three months from now? "Three months from now" is a new website that offers prophecies of the near future based on your horoscope at birth, your horoscope now, and your current psychological state.” About Decome Mobile mails are more fun with animated pictures and colorful text! Insert pictures and animation wherever you like "Thank you for everything last year. It's already 2009! How fast each year goes by! Let's make the first shrine visit of the new year together during the holidays." Colorfully adorn text and background (C)2009,Zappallas,Inc.All Rights Reserved. 35 Introduction of Decome Websites (C)2009,Zappallas,Inc.All Rights Reserved. 36 Mobile Commerce Business: Major Shopping Websites King of Sweets First official website dedicated to popular sweets. Brand Outlet Sells sought-after brand-name products at super discounted prices. Kirei Kakumei (Beauty Revolution) Sells cosmetics, diet supplements, body care products, and other items at reasonable prices targeting women. Pocket Market A comprehensive shopping website that offers an array of useful lifestyle goods including cosmetics, fashion brands, home electronics, and sundries. (C)2009,Zappallas,Inc.All Rights Reserved. 37 Features of Zappallas Online Shopping “Push type” commerce service in which product suggestions are made to encourage customers to visit shops. Approval for e-mail distribution -------------------- E-mail magazine registration /Cancellation -------------------- Letter from monsieur ・・・・・・・・・・・・・・・・・・・・・ “King of Sweets” Sweets” is the first shopping site where you can buy ultra famous sweets that are frequently shown on TV, in magazines or on the Internet. ・・・・・・・・・・・・・・・・・・・・・ Application for ee-mail magazine subscription Cancellation of ee-mail magazine subscription Direct e-mail distribution Purchase of goods Set of 10 Shinshu Sumptuous Puddings Introduction of: Christmas sweets, New Year sweets, winter sweets, sweets, sweets for two, portions of genuine sweets as reward for yourself http://www.zappallas.com/1220 ab Chef Handa’ Handa’s original masterpiece “Mon Blanc” Blanc” introduced by the magazine Yokohama Walker in its report on “Yokohama Yumehonpo” Yumehonpo”: With a combination of chestnuts garnished lavishly with cocoa powder, the sweets give a new sensation in the mouth. And besides, “Mont Blanc” Blanc” looks cool. Purchase rate: about 3% Large image [Haru Natsu Aki Fuyu ] Haru Natsu Aki Fuyu, Fuyu, which was introduced by such magazines for young women as “MORE” MORE” (March issue) and “CHOUCHOU” CHOUCHOU” (May 31 issue), issue), is a famous pudding specialty shop. Its puddings are made using plenty of fresh milk and eggs that are produced locally in Shinshu (Matsumoto City, Nagano Prefecture). Approaching specific customers by mobile mail Revealing potential wants Stimulating repeat customers’ desire to buy an item Importance of content that encourages customers with desire to buy items (C)2009,Zappallas,Inc.All Rights Reserved. 38 Introduction of a Game Website ("Lovers at the Hills") This is a romance simulation game for women. The heroine of the story, an office lady, has been dispatched to an IT firm in "Nanahongi Hills," and finds the love of her life over a two week period through encounters with several men including a cocky president, a trustworthy boss, and an old flame. Matsuda "Things are tough at this company because we're pretty busy, but hang in there!" (C)2009,Zappallas,Inc.All Rights Reserved. Saionji "I decided to start this company after learning that you can save a person with just one umbrella." 39 Earnings forecasts and all other statements and figures described in these materials, excluding historical figures and statements, are based on management targets set confidentially within Zappallas using information available at the time these materials were prepared, and assumptions related to uncertain factors that may affect future earnings. Actual results may differ from the above forecasts depending on various factors in the future. (C)2009,Zappallas,Inc.All Rights Reserved. 40