Digital Garage, Inc. FYE 2009 Financial Report

Transcription

Digital Garage, Inc.
FYE 2009 Financial Report
August 14, 2009
0
0
0
Contents
Mission & Business Model
・・・・・・・
2
Group Financial Performance Review
・・・・・・・
5
FYE 2009 Segment Performance Review
・・・・・・・ 11
New Mid-Term Management Plan
・・・・・・・ 21
Copyright © 2009 Digital Garage, Inc. All Rights Reserved
Mission & Business Model
DG’s Mission
context company
Context Company
Digital Garage creates innovative
business “context” for the new internet
age and provides unique business
solutions for Japan’s new lifestyles,
society and industries by linking:
Real
Local
Marketing
Present
-3-
&
&
&
&
Cyber
International
Technology
Future
DG’s Business Model
context company
Produce and incubate Japan’s Internet businesses
with optimal use of our three core strengths: IT,
MT and FT
★ Information Technology
IT
★ Marketing Technology
MT
FT
★ Financial Technology
-4-
Group Financial Performance Review
Executive Summary
context company
Intensive and targeted resource allocation:
Business re-engineering aiming at mid- to long-term growth
◆ Business re-organization
1. Sale of Kakaku.com stock (consolidated subsidiary) to CCC and business alliance with CCC
2. MBO sale of DG Communications (consolidated subsidiary)
3. Sale of DG Incubations (consolidated subsidiary) to IT Holdings
(formation of new DG Incubation as wholly-owned subsidiary)
◆ Aims and effects
1. Optimal allocation of business resources
⇒ Re-organization of business portfolio
⇒ Emphasis on media/incubation businesses
2. Financial re-structuring
⇒ Effective utilization of capital raised through sale of Kakaku.com
⇒ Significantly improved financial balance
Capital-to-asset ratio: 12% (FYE 2008) ⇒ 40% (FYE 2009)
-6-
Performance Summary for FYE 2009: Profit and Loss Statement (Consolidated)
context company
FYE 2008
(Actual)
FYE 2009
(Actual)
Net sales
39,582
34,499
-5,084
Operating
income
-172
981
+1,153
Ordinary
income
-375
537
+912
-2,430
5,450
+7,880
(¥ million)
Net income
Year-on-Year
(Amount)
Performance Review
- Net sales down 13% year-on-year; operating income up 1,153 million yen
(FYE 2009: 981 million yen vs. FYE 2008: -172 million yen)
- Net income record-high due to Kakaku.com stock sale of 15,854 million yen
Highlights of Year-on-Year Increases and Decreases
Sales
- DG Communications (formerly Sogei) revenue decrease (approx. 7,300 million yen)
Profit
- Positive impact from strong performance by Kakaku.com
- DG&Ibex (formerly DGMM) posting full-year profit
- CGM Marketing posting Q4 profit
- Kakaku.com stock sale of 15,854 million yen
- Business restructuring cost (extraordinary loss totaling 4,424 million yen)
-7-
FYE 2009 Balance Sheet (Consolidated)
context company
(¥ million)
FYE 2008
(Actual)
FYE 2009
(Actual)
Year-on-Year
(Amount)
29,855
24,000
-5,855
9,898
13,133
+3,235
Fixed assets
10,202
6,274
-3,928
Total assets
40,057
30,275
-9,782
Current assets
Incl. cash and deposits
Current debt
27,635
17,360
-10,275
2,704
925
-1,780
Incl. interest-bearing debt 10,656
5,833
-4,823
9,716
11,989
+2,273
40,057
30,275
-9,782
Fixed debt
Net assets
Total debt/net assets
Financial stability established
◆ Current ratio
FYE 2008
108%
FYE 2009
138%
◆ Percentage of
interest-bearing debt
FYE 2008
27%
FYE 2009
19%
◆ Capital-to-asset ratio
FYE 2008
12%
FYE 2009
40%
* Kakaku.com and DG Communications are not included in FYE 2009 B/S (consolidated).
* Financial ratios for each year are calculated based on year-end figures.
-8-
FYE 2009 Operating Income Analysis (Year-on-Year)
context company
Operating income by segment
■Finance
FYE 2008 vs. FYE 2009 [Cumulative]
+32 million yen (year-on-year)
(¥ million)
4,000
2,000
526
■Portal/Weblog
494
1,505
0
Profit maintained despite e-context
merger expenses
+1,925 million yen (year-on-year)
3,430
Positive impact from strong
performance of Kakaku.com group
566
■Solutions
-1,594
-935
-1,501 million yen (year-on-year)
-883
Deterioration of real estate market;
loan losses incurred
-2,000
期
2008.6
FYE 2008
■Incubation
期
FYE 2009
2009.6
+711 million yen (year-on-year)
Scheduled sale delayed
972 million yen → 2,131 million yen
(up 1,159 million yen year-on-year)
-9-
Comparison of Consolidated Segment Sales and Operating Income
context company
(¥ million)
(¥ million)
Net sales
45,000
40,000
35,000
Operating income
5,000
■Incubation
385
■Finance
3,210
■Portal/Weblog
■Solutions
6,706
4,000
526
180
3,000
3,424
30,000
494
2,000
9,400
25,000
1,000
20,000
2,012
2,718
15,000
10,000
5,000
0
1,293
2,084
4,469
2,449
2,167
2,885
4,972
4,847
0
0
226
1,098
494
316
605
286
124
29,279
-1,000
21,492
-2,000
3,430
1,505
907
430
566
-935
-1,594
■Incubation
■Finance
7,761
284
503
-883
■Portal/Weblog
■Solutions
0
-3,000
FYE 2005 FYE 2006 FYE 2007 FYE 2008 FYE 2009
FYE 2005 FYE 2006 FYE 2007 FYE 2008 FYE 2009
-10-
FYE 2009 Segment Performance Review
Group Business Segments
context company
Ⅰ
Solutions segment
IT system design and development, design/plan/implement marketing activities
Ⅱ
Portal/Weblog segment
Portal business (e.g., Kakaku.com, CGM and weblog services)
Ⅲ
Finance segment
Internet financial services for settlement, currency exchange and insurance, etc.
Ⅳ
Incubation segment
Investment promotion for Internet enterprises (business incubation)
-12-
Business Overview: Solutions Segment
context company
Ⅰ
Solutions Segment - To B Solution Businesses
Offering
Offeringone-stop
one-stopsolutions
solutionsas
asaa“Hybrid
“HybridSolution
SolutionPartner”
Partner”through
throughbusiness
businessintegration
integration
◆
◆Engaged
Engagedinincommissioned
commissionedbusinesses
businesses(To
(ToB)B)such
suchasasITITand
andMT
MTsolutions
solutionsasasstable
stablerevenue
revenuebase
baseofofDG
DGGroup
Group
◆
◆Sold
SoldDG
DGCommunications
CommunicationsininMBO
MBOdeal
deal
◆
◆Focused
Focusedon
ondevelopment
developmentofofmajor
majormedia
mediaincubation
incubationprojects
projectssimilar
similartotoMS
MSStore
Storefor
forMicrosoft
Microsoft
◆
◆Proceeded
Proceededwith
withpreparation
preparationfor
forcommunity-style
community-stylemedia
mediaincubation
incubationprojects
projectsusing
usingTwitter
Twitterasaspart
partofofcapital/business
capital/business
alliance
with
CCC
alliance with CCC
Consolidated companies
Establishment/Subsidiary dates
Descriptions
➤Digital Garage
95.8/
➤DG＆Ibex Company
83.9/08.10 merged with DG
Next-generation solutions provider for
sales-focused business
➤Creative Garage Headquarters
Comprehensive media services (graphics, video, etc.)
➤DG Media Marketing Headquarters
-
-13-
Group's media business operation and
comprehensive web advertising solicitation
Highlights and Forecasts: Solutions Segment
context company
(Digital Garage DG&Ibex Company)
Real media
FYE 2009 Highlights
Marketing area
- Achieved steady growth in total order amount from foreign
companies (cosmetics/pharmaceuticals/digital content
providers/manufacturers)
Creative production
area
- Launched Microsoft® Store, online shopping platform for
Microsoft products, as group-wide collaborative project
- Increased profit of digital media business through
consulting services for major web-based projects and
conducted preparatory work targeting business
expansion in FYE 2010
- Maintained stable level of orders for ongoing projects from
major telecommunications carriers and expanded sales
in non-digital media areas
- Posted first full-year profit for MM Headquarters (formerly
DG Media Marketing) with healthy growth in
cosmetics/financial areas
SP area
IT area
Web solution
area
Web media
Evolve into business entity that offers multidirectional client supports (July 2009 onward)
- Expanded increasing return businesses such as "Point Mall
Service"
Entering into full-fledged operational phase as Hybrid Solution Partner
MidMid- and
and longlongterm
term strategy
strategy
◆ Secure Hybrid Solution projects similar to Microsoft® Store through
systematic improvements for facilitating partnerships with national clients
◆ Diversify revenue base by developing original products and business models
with increasing return through effective use of Twitter, in addition to
commissioned businesses
-14-
Business Overview: Portal/Weblog Segment
context company
Ⅱ
Portal/Weblog Segment - To C Solution Businesses
Promote
Promotemonetization
monetizationby
bypositioning
positioningTwitter
Twitteras
asnext
nextkey
keygrowth
growthdriver
driverfollowing
followingKakaku.com
Kakaku.com
◆
◆ DG
DGMobile:
Mobile:proceed
proceedwith
withmonetization
monetizationprocess
processinintalent/content
talent/contentareas
areasinincollaboration
collaborationwith
withTwitter
Twitter
◆
◆ Technorati:
Technorati:move
moveinto
intodifferent
differentbusiness
businessareas
areasininsupport
supportofofTwitter-focused
Twitter-focusedefforts
efforts
◆
◆ Kakaku.com:
Kakaku.com:continuously
continuouslysupport
supportgrowth
growthasastop
topshareholder
shareholderand
andaccelerate
acceleratealliance
alliancewith
withnew
newstrategic
strategicbusinesses
businesses
Establishment
/Subsidiary dates
Investment ratio
Descriptions
Drive forward promotional businesses using blogs and Twitter
➤CGM Marketing, Inc.
06.8/06.8
51%
➤DG Mobile, Inc.
04.2/04.2
100%
➤Technorati Japan, Inc.
05.1/05.1
70%
97.12/02.6
20.3%
Mobile e-book distribution platforms and content
Blog search engine "Technorati Japan"
Equity-method affiliate FYE 2010 onward
➤Kakaku.com, Inc.
-15-
Price comparison website "Kakaku.com"
Highlights and Forecasts: Portal/Weblog Segment
context company
FYE 2009 Highlights
FYE 2009 Highlights
FYE 2009 Highlights
- Achieved surplus in FYE 2009 Q4, setting up
growth base for next three years
- Completed framework for co-development of
media business/improved profitability
with contents holders
- Market expansion and steady growth
in contents distribution business,
ensuring DG's continuous
surplus
100
Number of e-book websites
launched by DG Mobile
Free websites
非公式サイト
90
80
Client websites
制作支援他社サイト
(development assisted by DG)
70
DG websites
自社サイト
6
7
60
- Transition from blog search to
(mini-blog) under
review
Twitter-linked services for TRUS
7
7
6
7
50
2
9
40
9
30
20
10
9
25
79
54
65
33
11
0
06.12
- Started offering solutions for corporate use
as Japanese agent for
Position
MidMid- and
and longlongterm
term strategy
strategy
07.6
07.12
- Mobile-compatible
services
08.6
08.12
09.6
under review
business as new focus in media incubation
◆ Engage in business utilizing Twitter, the world's fastest growing web media
that is also attracting a great deal of attention in Japan, as new media
incubation focus after Kakaku.com
◆ Establish new Twitter-based profitability model linked with existing business
assets while further expanding existing business
-16-
Business Overview: Finance Segment
context company
Ⅲ
Finance Segment
e-context
e-contextto
toconsolidate
consolidatebusinesses
businessesas
asHybrid
HybridSolution
Solution
in
inorder
orderto
torespond
respondto
tochanges
changesin
insettlement
settlementmarket
marketconditions
conditions
◆
◆Facilitate
Facilitatediversification
diversificationofofclient
clientusages
usagesand
andsettlement
settlementmethods
methodsasaspart
partofofcapital/business
capital/businessalliance
alliancewith
withCCC
CCC
◆
◆Engage
Engageininvarious
variouspreparations
preparationsfor
forTwitter-linked
Twitter-linkedsettlement
settlementmethods
methodsas
asnew
newsettlement
settlementfocus
focus
◆
◆Develop
Developnew
newCCtotoCCsettlement
settlementbusinesses
businessesininline
linewith
withrelaxation
relaxationofofsettlement-related
settlement-relatedregulations
regulations
Establishment/Subsidiary dates
Descriptions
➤Digital Garage
➤e-context Company
-17-
Settlement/logistics platforms
Highlights and Forecasts: Finance Segment
context company
(Digital Garage e-context Company)
FYE 2009 Actual
Number of affiliated websites
Number of transactions
Total amount of transactions
(yen)
25,914
13.05 million
102.2 billion
(year-on-year)
139.4%
(year-on-year)
103.3%
FYE 2009 Highlights
Â Number of affiliated websites
steadily increased as ecommerce market grew
- January 2009: Fully-compliant with PCI DSS, international information security
standards for payment card industry
- April 2009: Started offering new settlement services using "Jibun Bank," mobilephone-based Internet bank
- June 2009: Provided fee settlement services for restaurants on tabelog.com, a
word-of-mouth restaurant information website
Signed comprehensive contract
for Microsoft’s first online
download store for software
products to provide services
from site development to
administration (site opened in
November)
Number of sales and downloads
steadily increasing
99.3%
Overview
- September 2008: Provided collaborative services for ticket distribution and
membership administration to Yoshimoto Kogyo and PIA
- November 2008: Given administration contract for Microsoft’s online store
“Microsoft® Store” [Hybrid Solution project]
Microsoft® Store
(year-on-year)
Jibun Ginko
(settlement services)
Started offering settlement
services using "Jibun
Bank" launched by KDDI
Corp. and Bank of TokyoMitsubishi UFJ
Further expanded
corporate client base for
mobile sites
(e.g., HMV Online)
-18-
Â Meanwhile, total transaction
value dropped slightly due to
increasingly strong downward
pressure on game-related unit
prices
Future focus areas
Â Development and
implementation of new
services for real-business
Â Stronger collaboration with
external partners such as
CCC
Â Development of Twitterlinked settlement services
Business Overview: Incubation Segment
context company
Ⅳ
Incubation Segment
Create
Createleading-edge
leading-edgeInternet
Internetbusiness,
business,which
whichisisDG's
DG'scorporate
corporatephilosophy
philosophy
◆
◆Play
Playsupportive
supportiverole
rolefor
forfurther
furthergrowth
growthfor
foreach
eachDG
DGsegment
segmentand
andachieve
achievesteady
steadyprofit
profitcontribution
contributiontotoGroup.
Group.
◆
◆Strengthen
Strengthenincubation
incubationfocus
focuson
oninternational/leading-edge
international/leading-edgeInternet
Internetbusinesses
businesses
⇒
⇒Newly-formed
Newly-formedDG
DGIncubation
Incubationtotoprovide
providebusiness
businesslocalization
localizationsupport
supportfor
foroverseas
overseasinvestment
investmentprojects
projects
◆
◆DG’s
DG’sequity
equityininDG
DG&&Partners
Partnersand
anddomestic
domesticinvestment
investmentfunds
fundsunder
underits
itsmanagement
managementsold
soldtotoITITHoldings
Holdings(ITH)
(ITH)with
with
sale
of
former
DG
Incubation
sale of former DG Incubation
Establishment
/Subsidiary dates
Investment ratio
Descriptions
Foreign investments and domestic
business developments
➤ Newly-formed DG Incubation
09.6/09.6
100%
➤ Former DG Incubation
05.7/05.7
0%
Sold to ITH
➤ DG & Partners, Inc.
05.9/05.9
0%
Equity in GP sold to ITH
➤ DG New Context Fund
05.10/05.10
0%
Equity in LP sold to ITH
-19-
Highlights and Forecasts: Incubation Segment
context company
■FYE 2009 Highlights
▼Revised and reorganized incubation strategies to reflect current
severe business environment
▼ Twitter, in its second year of existence in Japanese, was widely
adopted by domestic users
- Signed MOU between U.S. Twitter HQ and DG and launched
development of mobile-phone services for domestic users
(scheduled to be officially available in Fall 2009)
CEO: Evan Williams
- Used by various celebrities and politicians (e.g., Ryuichi Sakamoto,
IKKO, Kazuyo Katsuma and Kohmi Hirose), accelerating
popularity among general users
(Note: U.S. Twitter HQ does not disclose total number of
Twitter users)
- Use by major media companies, led by NHK, TBS, Asahi Shimbun,
Mainichi Shimbun, accelerated further in 2009
Strengthen localization support for existing invested businesses
MidMid- and
and longlongterm
term strategy
strategy
◆ Due to overall slowdown in exits from investments triggered by global financial
crisis, limit new investments and focus on localization support for existing
overseas invested businesses for time being
◆ Maintain existing network with overseas market, while conduct ongoing reviews
on angel round investment for promising services
-20-
New Mid-Term Management Plan
Outline of New Mid-Term Plan for Next 3 Years
context company
““Post-Kakaku.com”
Post-Kakaku.com” Strategy:
Strategy:Second
SecondStage
Stageof
ofDG
DGGroup
GroupOperation
Operation
Continuously
Continuouslysupport
supportgrowth
growthofofKakaku.com,
Kakaku.com,as
astop
topshareholder
shareholderand
andconsolidated
consolidated
company,
while
maintaining
existing
operational/personnel
relationships
company, while maintaining existing operational/personnel relationships
I
Promote Group's Twitter-focused platform
¾ Group-wide total support for full-scale expansion of Twitter use in Japan
II
Development of strategic alliances with business partners
¾ Capital/business alliance with CCC
III Solidifying of "Hybrid Solution" operational base and "DG" brand
¾ Group of "e-Business professionals" that comprehensively covers every
aspect from upstream to downstream
-22-
Promote Group's Twitter-focused Platform
Comprehensive support for promoting Twitter in Japan
Advertising
Investment
Settlement
Contents
context company
Utilize TOL-linked area marketing
II
Facilitate expansion of business and promotional uses in Japan
Collaborate with other Group sites (e.g., tabebot)
-23-
IIII
Development of Strategic Alliances with Business Partners
context company
Capital/business alliance with CCC
; Collaborate using e-context
settlement services
; Build TSUTAYA member
community
; Develop new profit-generating
business for TSUTAYA Online
; Conduct joint R&D for nextgeneration Internet
; Develop Twitter-based area
marketing
Top shareholder
Capital/business
alliance
20.3%
Top share holder
41 million users
1,372 outlets
32.02 million members
20.3%
14.83 million members
under review
-24-
III
III
Solidifying of "Hybrid Solution" Operational Base and "DG" Brand
context company
Seamless solution provider for e-Business: settlement + system development + promotion
Japan's only “Hybrid Solution Partner”
Proposals
System
development
Providing
services
Promotion
Settlement
CRM
Microsoft® Store
・・・ NEXT
-25-
Segment Name Changes
context company
I
Hybrid Solution Segment
¾ Former Solutions and Finance segments consolidated as Hybrid Solution
II
Media Incubation Segment
¾ Former Portal/Weblog segment; focus on Twitter-centered media incubation
III
Venture Incubation Segment
¾ Localization support provider for existing overseas VCs
(services formerly provided to both domestic/overseas VCs)
-26-
DG New Mid-Term Business Plan
context company
Plan
FYE 2008
Net sales
FYE 2009
FYE 2010
FYE 2011
FYE 2012
34,499
11,000
18,500
22,000
87.2%
31.9%
168.2%
118.9%
981
300
1,600
3,200
2.8%
2.7%
537
800
39,582
(year-on-year)
Operating income
-172
(to sales)
Ordinary income
-375
149%
(year-on-year)
Net income
-2,430
5,450
500
8.6%
2,300
288%
14.5%
4,200
183%
1,300
2,700
Net sales by segment
FYE 2009
FYE 2010
FYE 2011
FYE 2012
32,086
24,348
9,500
13,500
15,000
7,110
9,969
1,500
5,000
5,700
385
180
0
0
1,300
39,582
34,498
11,000
18,500
22,000
FYE 2009
FYE 2010
FYE 2011
FYE 2012
FYE 2008
◆ Hybrid Solutions
◆ Media Incubation
◆ Venture Incubation
Total
FYE 2008
◆ Hybrid Solutions
1,146
-526
1,350
1,800
2,250
◆ Media Incubation
1,422
3,542
300
1,200
1,400
-1,594
-883
-130
-150
850
973
2,131
1,520
2,850
4,500
◆ Venture Incubation
Total
-27-
DG New Mid-Term Business Plan
context company
3-year performance plan (consolidated)
(¥ million)
(¥ million)
Net sales
45,000
5,000
Incubation
40,000
385
Media Incubation
7,110
Satisfactory outcome of
business incubation
Growth in new media
markets
Increased
promotional demand
Solutions
35,000
Operating income
850
4,000
Media monetization
180
3,000
30,000
9,969
25,000
Fewer consolidated
companies
(Kakaku.com/DGC)
1,200
2,000
1,300
15,000
0
-526
13,500
5,000
1,800
2,250
0
1,500
10,000
1,350
1,146
5,000
24,348
3,542
1,000
5,700
32,086
1,422
300
0
20,000
1,400
15,000
9,500
-1,000
-1,594
-883
-130
-150
Incubation
Media Incubation
Solutions
0
-2,000
FYE 2008
FYE 2009
FYE 2010
FYE 2011
FYE 2012
FYE 2008
Plan
FYE 2009
FYE 2010
FYE 2011
FYE 2012
Plan
* Operating income: based on figures prior to Group tax deduction
-28-
Please note that the business forecasts and strategies covered in this
presentation are based on our current evaluation and future results may
vary significantly depending on unforeseeable events or circumstances.

Digital Garage, Inc. FYE 2009 Financial Report

Transcription

Similar documents

Kami Kato Sheryl Higa - Hawaii P-20

Sandlake Hospital Parking Structure Coreslab Structures (TAMPA)

Making the

TorqueMaster PLUS Springs

MGI Market Day

Cooperage - Bromberg Homes

Annual Report FYE 2015 - Food Bank for Larimer County

Tabernash - Wardcraft Homes

Steel Craft Garage Doors

FYE Notepad - Western Carolina University