FY2016 1H Results. Cookpad Inc.

Transcription

1 FY2016 1H Results Cookpad Inc. 1

2 1H Highlights Premium Service -Premium Service revenue increased by 39.6% YoY. -Number of premium members grew by 12.0% YoY to exceed 1.85 million. Advertising -Advertising revenue increased by 22.5% YoY. Consolidated operating income increased by 57.6% YoY. -Operating margin improved through increase in higher margin sales ( i.e. revenue sharing with telecom carriers etc. ) 2

3 Consolidated Results January June

4 1H Key Financials (in millions of JPY) 1H FY2015 1H FY2016 YoY Causes Revenue 6,175 8, % Continued expansion in Premium Service and Advertising of Cookpad. Minnano Wedding Co.,Ltd. financials consolidated from 3Q FY2015. Operating Income 2,619 4, % Operating margin improved through increase in higher margin sales. Pre-tax Profit 3,023 3, % Loss on valuation of investment securities and currency exchange. Net Income Attributable to Cookpad 1,841 2, % 4

5 Revenue Mix IT/Media Recipe Services Premium Sevice 4,195 (in millions of JPY) 7.9% 1.2% Advertising 2,514 "Cookpad" premium membership sales Ad sales on "Cookpad" sites 0.5% 1.8% 13.3% 28.2% 1H FY2016 8, % Shop Deals Service 164 Tokubai Joho chargeable service (launched in March 2015) Others 47 Editorial fees for Cookpad related publications, etc Other IT/Media Other IT/Media 1,185 Primarily from "Minnano Wedding"(Consolidated from 3Q FY2015) EC EC 701 Revenue from Angers - an online shop for home & kitchen goods Others Others 105 Other than as described above 5

6 Revenue YoY change YoY Causes Others ーー in millions of JPY) 10,000 8,000 8, EC Other IT/Media +1.7% ー Increase in Minnano Wedding, % consolidated from 3Q FY2015 6,000 4,000 6, ,051 1, ,514 IT/ Media Recipe Others -25.5% ー Tokubai Joho chargeable service (launched Shop Deals +93.6% in March 2015). Sign-up for chargeable Service service increased to 6,000 stores Service Advertising +22.5% Increase in sales from cross selling of tie-up and display ads. Significant uplift in tie-up 2,000 4,195 ads 3,006 Premium Service +39.6% Premium members exceeded 1.85 million. Increase in revenue sharing sales from NTT Docomo's dgourmet 0 1H FY2015 1H FY2016 * Segmentation is redefined from 3Q

7 Segment Revenue by Quarter*1 (in millions of JPY) 5,000 JGAAP (Non-consolidated) JGAAP (Consolidated) IFRS 4,523 4,000 *2 2months Quarter 3,000 2,000 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 Others EC IT/Media ,103 1,180 1,259 1,437 1,539 1,533 1,620 1,879 2,052 2,344 1,765 2,594 2,891 3,510 4,180 4,051 4,055 Total 1,103 1,180 1,259 1,437 1,539 1,533 1,620 1,879 2,052 2,615 2,033 2,883 3,292 3,831 4,709 4,389 4,523 *1 Segmentation is redefined from 3Q *2 In this 8-month transition period, this quarter represents November and December in

8 Recipe Services Revenue by Quarter*1 (in millions of JPY) 4,000 JGAAP (Non-consolidated) JGAAP (Consolidated) IFRS 3,474 3,000 *2 2months Quarter 2,000 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 Others Shop Deal Service Advertising ,101 1,048 1,565 1,306 1,207 Premium Service ,019 1,114 1,190 1, ,459 1,547 1,717 1,882 2,038 2,156 Total 1,103 1,180 1,259 1,437 1,539 1,533 1,587 1,837 1,992 2,278 1,731 2,464 2,741 2,884 3,560 3,446 3,474 *1 Segmentation is refined and provided from 3Q *2 In this 8-month transition period, this quarter represents November and December in

9 SG&A Expenses Mix (in millions of JPY) Personnel expenses 1,987 Salary for employees 2.9% 5.0% 21.5% 1.9% 2.2% 4.2% 1H FY2016 1, % 50.3% Sales commisions 476 To collect Premium membership fee through settlement platform Cloud computung fee 165 To use cloud computing for Cookpad services Promotion fee 87 To promote Cookpad Premium membership Advertising 75 Advertising for each service Rent 196 Office rent shipping charges 112 Shipping charges at an online shop Angers Others 849 ー 9

10 SG&A Expenses YoY change (in millions of JPY) 5000 Others YoY Causes +37.3% Increase in various costs due to service expansion ,952 Shipping charges +10.6% ー , Rent Increase in Minnano Wedding, consolidated from 3Q +56.8% FY2015 Advertising -10.1% ー Promotion fee -24.1% Decrease in affiliate business fees Cloud computing fee +6.3% Increase in growth of monthly users on Cookpad site Sales commissions +18.5% Increase in growth of paid members Growing number of employees due to business expansion, and increase in Minnano Wedding, Personnel expenses +44.1% consolidated from 3Q FY2015 (530 total employees at the 0 end of Jun.2016) 1H FY2015 1H FY

11 SG&A by Quarter (in millions of JPY) 2,500 JGAAP (Non-consolidated) JGAAP (Consolidated) IFRS 2,000 *4 1,992 1,500 *1 2months Quarter 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 Others Shipping Charge Rent Goodwill amortization Advertising Promotion fee Cloud computing fee Sales commisions Personnel expenses , ,016 Total ,053 1,203 1,370 1,039 1,437 1,546 1,878 2,248 1,959 1,992 *1 In this 8-month transition period, this quarter represents November and December in *2 Shipping charges and Rent are separated from 1Q 2015 *3 Advertising is separated from 3Q 2014 *4 Cost about 200M JPY for management change in English recipe site ALLTHECOOKS 11

12 Operating Income by Quarter in millions of JPY) 3,000 JGAAP (Non-consolidated) JGAAP (Consolidated) IFRS 2,339 2,000 2,071 2,055 1,585 1, ,043 * 2months Quarter 824 1,195 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 * In this 8-month transition period, this quarter represents November and December in

13 Recipe Service Detail January - June

14 Domestic Cookpad User Trend (in millions) Monthly Users * Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Dec Mar Jun Sep Dec Mar Jun FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 Feature Phone Apps * Smartphone Browsers PC Total *1 Counts every access from one of the devices or browsers above. *2 Categorization has changed in July

15 2012/5/1 2012/5/ /6/8 2012/6/ /7/ /8/4 2012/8/ /9/ /9/ /10/ /11/7 2012/11/ /12/ /1/3 2013/1/ /2/ /3/1 2013/3/ /4/8 2013/4/ /5/ /6/4 2013/6/ /7/ /7/ /8/ /9/7 2013/9/ /10/ /11/3 2013/11/ /12/ /12/ /1/ /2/6 2014/2/ /3/ /4/4 2014/4/ /5/ /5/ /6/ /7/8 2014/7/ /8/ /9/3 2014/9/ /10/ /10/ /11/ /12/7 2014/12/ /1/ /2/2 2015/2/ /3/ /3/ /4/ /5/8 2015/5/ /6/ /07/ /07/ /08/ /08/ /09/ /10/7 2015/10/ /11/ /12/3 2015/12/ Domestic Cookpad Daily User Trend (in actual) 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2015 FY

16 Increasing Cooking Recipes* (in millions) recipes Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 * Counts recipes posted on the domestic Cookpad site only 16

17 Overseas Cookpad User Trend (in millions) Monthly Users by Language* Jan Apr Jul Oct Dec Mar Jun Sep Dec Mar Jun FY Apr 2014 FY Dec 2014 FY 2015 FY 2016 Arabic Bahasa Indonesian Spansh English Total * Measured by Google Analytics 17

18 Premium Service Number of premium members exceeded 1.85 million in millions of JPY) 2,500 Quarterly Sales (in millions) 2.00 Premium members (fee based subscribers) 2,000 * 2months Quarter 1,717 1,882 2,156 2,038 1,500 1,547 1, , ,280 1,190 1,114 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 * In this 8-month transition period, this quarter represents Nov. and Dec. in

19 Premium members - Net Increase per Quarter Holding down real affiliates (in actual) 120, ,000 Free-trial ended (Upgraded to premium members) Real affiliates decreased & the app sales price hiked 80,000 Free-trial started 2months Quarter * Partially due to a change in the measurement 60,000 40,000 20, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 * In this 8-month transition period, this quarter represents November and December in

20 Premium Services Profit*1 - Trend by Quarter Sales revenue from telecom carriers has been increasing (including revenue share) such as NTT docomo s dgourmet in millions of JPY) 2,000 1,822 1,936 1,662 1,500 *1 2months Quarter 1,226 1,321 1,508 1,041 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 *1 Premium Services Profit = Premium Services sales - (sales commissions + promotion expenses) *2 In 8-month transition period, this quarter represents November and December

21 Advertising (in millions of JPY) 1,500 Sales by Ad-Product *1 2months Quarter 1,207 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY Apr 2014 FY Dec 2014 FY2015 FY2016 Others * Network ads Display ads Tie-up ads Total ,101 1,048 1,565 1,306 1,207 *1 In 8-month transition period, this quarter represents November and December 2014 *2 Ads for the overseas Cookpad sites 21

22 Shop Deals Service Users can browse shop deals and flyers everyday from a variety of retailers such as groceries, drug stores, DIY stores, and dry cleaners Deals are delivered on real-time basis from retailers In March 2015, started to charge monthly 5,000 yen/store for some services Store participants keep increasing. At end of June 2016, nearly - 6,000 stores in chargeable service - 6.0M Registered Users - 23,000 stores in real-time deals delivery service In July 2016, established Tokubai Inc., as a wholly owned subsidiary 22

23 Going Forward 23

24 Cookpad s Mission Cookpad s Mission Make everyday cooking fun! 24

25 Going Forward Focus from FY2017 to FY2021 Globally expand our recipe sharing service Increase fans of our domestic recipe sharing service Develop a cooking C2C platform 25

26 Globally expand our recipe sharing service Speed up our global expansion to become No.1 in 100 countries No.1 in 100 countries 26

27 Increase fans of our domestic recipe service Increase users that proactively use Cookpad on a daily basis 27

28 Develop a cooking C2C platform Leveraging our recipe sharing service user base, we will develop a cooking C2C platform to solve cooking issues of our users 28

29 Aggressive investments for high long-term growth We will pursue higher long-term growth, through aggressive investments in talents, technologies (incl, machine learning) and M&A of global recipe services 29

30 Financial projections FY nd half Premium Service Project a modest growth in the number of premium members. Revenue share business with telecom carriers etc. expected to drive Premium Service revenue. Advertising Advertising revenue is expected to be on per with FY2015 2nd half advertising revenue due to review of advertising space and products. Cost 2nd half costs should exceed 1st half costs due to talent hiring both domestically and internationally to fuel business growth. FY2016 revenue and profit before tax expected to exceed FY2015 levels. FY2017 Due to aggressive investments in talent hiring to fuel future growth, costs expected to precede revenue. 30

31 Make everyday cooking fun! 31

32 This presentation contains certain comments that may be characterized as forward-looking statements. These statements are based on information currently available to management and its beliefs and assumptions regarding future business and financial performance. A number of factors such as changes in business environment may cause actual results to differ materially from any future results or performance expressed or implied by this presentation. Cookpad Inc. Investor Relations ir@cookpad.com 32