october, 28,2016 3rd quarter, business results for the

目次

October, 28,20163rd Quarter, Business Results for the

Fiscal Year Ending December 31, 2016

CONTENTS

1

Progress of Earnings Forecast3

2 Marketing Business

FY2016Q3 Summary of Consolidated Financial Results

1

4

5 Reference Materials 2

Reference Materials 1“Road map & Medium and long term strategy”

＊Unstated amounts are rounded down to the nearest one million yen unit, and percentages are rounded to the nearest unit.

FY2016Q3Summary of Consolidated Financial ResultsFinancial Results

Total

�Substantial increase Ordinary income and Net incomeRevenue ：17,017 YoY+8.1%Operating income ： 208 YoY(5.0％）Ordinary income ： 375 YoY Substantial increaseNet income : 486 YoY Substantial increase

�Continuously growing revenue as planed

FY2016Q3 Executive Summary

3

Marketing Business

�Continuously growing revenue as planed

Revenue ：16,668 YoY+7.9%Gross profit ： 3,159 YoY+6.1%Operating income ： 437 YoY(11.9%）Gross profit margin ： 19.0% YoY(0.3p)Operating income margin ： 1.5% YoY(0.6p)

Investment and Value Creation

BusinessOperating loss ： 53 Overseas

BusinessRevenue ： 354Operating loss ： 31

FY2015 Q3 FY2016 Q3 YoY

Revenue 15,747 17,017 +8.1%

Gross profit 3,186 3,408 +7.0%

SGA 2,966 3,200 +7.9%

EBITDA 489 463 (5.4%)

[Consolidated]


4

EBITDA 489 463 (5.4%)

Operating income 219 208 (5.0％)

Ordinary income 34 375 Substantialincrease

Net income 67 486 Substantialincrease

Gross profitmargin 20.2％ 20.0％ (0.2p)

Operating income margin 1.4％ 1.2％ (0.2p)

Net incomemargin 0.4％ 2.9％ +2.5p

FY2014 FY2015 FY2016

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 YoY

Marketing Business

Revenue 14,081 14,233 15,105 14,877 16,122 15,585 15,441 14,679 18,188 16,405 16,668 +7.9%

Operating income 125 178 298 289 633 340 496 345 1,052 463 437 (11.9%)

Investment and Value

Revenue 4,654 0 0 204 0 392 1 627 0 38 0 ―

[Consolidated Quarterly Revenue and Operating Income (Loss) by Segment]


and Value Creation Business

Revenue 4,654 0 0 204 0 392 1 627 0 38 0 ―

Operating income 4,482 (15) (31) (60) (55) 310 (38) 392 (46) (34) (53) ―

Overseas Business

Revenue 349 416 503 480 309 358 372 383 363 355 354 (5.0%)

Operating income (46) (70) (2) 0 (29) (10) (34) (15) (16) (62) (31) ―

OtherRevenue 516 508 537 514 (34) (57 (68) (61) 0 2 (5) ―

Operating income (173) (216) (144) (143) (183) (186) (204) (139) (100) (92) (145) ―

TotalRevenue 19,602 15,158 16,145 16,077 16,397 16,278 15,747 15,628 18,551 16,802 17,017 +8.1%

Operating income 4,388 (123) 120 86 363 454 219 583 889 274 208 (5.0％)

5

274300

362

357348

4,654

204 392 1

38

16,000

17,000

18,000

19,000

20,000Marketing Business Overseas Business and Other Investment and Value Creation Business

〜〜

[Revenue]


14,081 14,23315,105 14,877

16,12215,585 15,441

14,679

18,188

16,405 16,668

866 925

1,040995

300 304

322

204

627

10,000

11,000

12,000

13,000

14,000

15,000

16,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

6

284

250 268343 4453,200

3,400

3,600

3,800

4,000Marketing Business Overseas Business and Other Investment and Value Creation Business

4,496

[Gross profit by segment]

〜〜


1

12

2,3952,501

2,8072,652

3,004 2,945 2,9772,839

3,529

3,145 3,159421392

424

457

197152

206

234

2,000

2,200

2,400

2,600

2,800

3,000

3,200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

7

633496

1,052

463 437

310 392

200

300

400

500

600

700

800 Marketing Business Investment and Value Creation Business Overseas Business Other Adjustment

[Operating income by segment]

〜〜4,482


125 178298 289 340 345

463 437

(15) (31) (60) (55) (38) (46) (34) (53)

(200)

(100)

0

100

200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

8

Totaloperatingincome

4,388 (123) 120 86 363 454 219 583 889 274 208

TotalOperating Income

Excluding Investmentand Value Creation

Business(94) (108) 151 146 419 143 257 190 935 308 261

Marketing BusinessMarketing Business

[Revenue]

15,000

16,000

17,000

18,000

YoY+7.9%

Continuously growing

YoY+7.9%

Marketing Business summary

10

10,000

11,000

12,000

13,000

14,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

YoY+7.9%

18.6% 18.6%

18.9%

19.3% 19.3%

19.4%

19.2%19.0%

3,000

3,200

3,400

3,600[Gross profit/Gross profit margin]

YoY+6.1%

YoY +6.1%Strategic reduction

of gross profit


17.0%

17.6%17.8%

2,000

2,200

2,400

2,600

2,800

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

11

of gross profit margin

3.9%

5.8%

800

1,000

1,200[Operating income / Operating income margin]

Invest for improvement of profitability

Operating income


0.9%1.3%

2.0%

1.9%2.2%

3.2%

2.4%

2.8%2.6%

0

200

400

600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

12

Operating income temporary decrease

1,000

1,200

1,400

2,800,000

Gross profit per person Number of employee

[Gross profit per person / Number of employee]

YoY+4.3%

Steadily increase

+4.3%


（Unit：Yen）（Unit：person）

0

200

400

600

800

2,000,000Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

13

YoY +4.3%

40.0%

45.0%

50.0%

[Focus Products : Smartphone ads share]

Keep increasing

+30%


20.0%

25.0%

30.0%

35.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

14

YoY +30%

[Focus Products: Infeed ads]

Accelerating growth

+60%


Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2015 FY2016

15

YoY +60%

[Focus Products :Social ads]

Keep growing2.5times


Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

16

YoY 2.5times

[Focus Products : Movie ads]

Steadily increase

+15%


Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2015 FY2016

17

YoY +15%

[Focus Products :LINE]

Revenue

Enhanced revenue

share


Q3 Q3

FY2015 FY2016

18

RevenueYoY Approx.

7timesshare

YoY 7times

Progress of Earnings ForecastProgress of Earnings Forecast

FY2016Forecast

FY2016Cumulative result Progress

Revenue 67,000 52,370 78.2%

FY2016 Progress of Earnings Forecast

�Revenue and Operating income : According to forecast �Ordinary income and Net income :Larger than the forecast by gain on

investments in partnership and gain on sales of investment securities

20

Revenue 67,000 52,370 78.2%

EBITDA 2,700 2,106 78.0%

Operating income 1,800 1,371 76.2%

Ordinary income 1,300 1,434 110.3%

Net income 500 761 152.3%

Investment andValue Creation

Business600

Marketing

FY2016 Forecasts 1,800FY2015:1,620

[Breakdown of Operating income]

FY2016Cumulative 1,371

FY2016 Progress of Earnings Forecast

MarketingBusiness

1,800

Overseas Business(90)

Other(700)

21

MarketingBusiness

2,450

Other(400)

Investment and Value Creation Business (150)


MarketingBusiness

1,953

Other(336)

Investment and Value Creation Business (134)


Reference Materials 1Reference Materials 1“Road map & Medium and long term strategy”

Road map to Vision

Establishment of digital business・Sharing Economy・Big Data

From an internal perspective, our vision is to generate revenue of ¥1 trillion and ordinary income totaling ¥100 billion. With 100 companies each employing 100 staff, an aggregate workforce of 10,000 employees each taking up one hundred challenges.

Corp

orat

e va

lue

■Aim to achieve net sales of 1,000 billion yen and ordinary income of 100 billion yen by expanding businesses from total support services in the digital business arena through our own efforts

Establishment of Investment and Value

Expansion of digital support business

・Big Data・E-Commerce

challenges.

FY2015 FY2020 FY20××

23

・Marketing Business

Before period Medium term policy Next Phase

FY2017

Establishment of Internet ad Agency

Investment and Value Creation Business

Road map：Growth model

�Leverage the Group’s assets based on the infrastructure of data/technologies and create the digital support business and digital business

Digital support Digital support BusinessBusiness Digital BusinessDigital Business

Digital sift support

Data/ Technology

ネット広告代理

MarketingInvestment and Value Creation

BusinessInvestment for

Venture Companies

Fund operation

Sharing EconomyBigdataE-Commerce

24

Internet ad Agency

Reference Materials 2Reference Materials 2

[SGA costs]

Reference Materials

1,500

2,000

2,500

3,000

26

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2014 FY2015 FY2016

Total SGA 2,924 3,017 3,111 3,011 2,836 2,986 2,966 2,937 2,924 3,134 3,200

Personal expences 1,900 1,891 1,947 1,910 1,779 1,815 1,858 1,795 1,780 1,913 1,932

Rents 173 177 195 186 234 235 238 257 248 246 237

Advertising expences 95 65 88 75 25 37 37 47 35 53 59

Depreciation and amortization 78 161 184 176 172 174 180 183 149 161 167

Others 675 721 695 662 624 724 651 652 711 760 802

0

500

1,000

[Number of employees]

Reference Materials

1,000

1,250

1,500

27※Excluding temporary staff and dispatch workers

Q1 Q2 Q3 Q4 Q1 Ｑ２ Q3 Q4 Q1 Ｑ２ Q3

FY2014 FY2015 FY2016

1,408 1,626 1,608 1,459 1,425 1,470 1,453 1,381 1,366 1,430 1,444

0

250

500

750

Changes in the Scope of Consolidation(As of FY2016 Q3-End)

Marketing BusinessMarketing Business

Reference Materials

Opt VenturesJapan Fund 1

28

Investment and Value Investment and Value Creation Business Creation Business

Overseas BusinessOverseas Business OtherOther

Name Business Ownership Status

OPT, Inc. Marketing business 100.00% Consolidated subsidiary

CLASSIFIED Planning and sales of classifieds 66.01% Consolidated subsidiary

Crossfinity SEO and media consulting business 90.00% Consolidated subsidiary

SOLDOUT Advertising agency for mid-sized and venture companies 66.60% Consolidated subsidiary

s1o interactive Trading desk business 100.00% Consolidated subsidiary

SkillUp Video Technologies Digital contents platform business 92.50% Consolidated subsidiary

ConnectOM Omni-channel solution business 100.00% Consolidated subsidiary

Reference Materials

Major consolidated Companies （As of FY2016 Q3-End）

29

Search LIFE Internet advertising operation business (53.28%) Consolidated subsidiary

Writeup. Co., Ltd Internet-related business 40.00％ Consolidated subsidiary

Grooover, Inc. Native Ad and media business (incl. consulting) of smart device 100.00% Consolidated subsidiary

TechLoCo, Inc. Marketing technology proposal business for mid-, small- and medium-sized as well as growth companies (66.66%) Consolidated

subsidiary

Growth Gear Co,.Ltd Human resource support services business for mid-, small- and medium-sized as well as growth companies (66.66%) Consolidated

subsidiary

Platform ID Database business 51.00% Consolidated subsidiary

eMFORCE Internet advertising agency in South Korea 92.82% Consolidated subsidiary

OPTSEA Marketing business and Investment businessin Taiwan, Hong Kong and South East Asia 94.19% Consolidated

subsidiary

OPT America Consulting, investment, and alliance business in the US 100.00% Consolidated subsidiary

OPT Ventures, Inc. VC business, investment business, public offering advisory business, management information service, other 100.00% Consolidated

subsidiary

OPT Holding, Inc. TSE 1st Section 2389

http://www.opt.ne.jp/holding/ For all IR-related inquiries including requests for interviews, please

contact the Group Management Planning Office as follows:

This document is based on information available and views held at the time of its preparation. Statements contained in this document that are not historical facts (including but not limited to plans, forecasts and strategies) are “forward-looking statements.” These forward-looking statements, both expressed and implied, may differ materially from actual results and future developments.

＜Notice＞

contact the Group Management Planning Office as follows:TEL: +81-3-5745-3611 Mail: [email protected]

october, 28,2016 3rd quarter, business results for the

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