Financial Resu Financial Resu lt Presentation lt Presentation - - PowerPoint PPT Presentation

For the Year ended S For the Year ended S

Financial Resu Financial Resu

September 30, 2012 September 30, 2012

lt Presentation lt Presentation

p , p ,

November 1 2012 Securities Code : 9438 November 1, 2012

Table of Table of

P2 Overview of Consol

Table of Table of Contents Contents

P2 P3 P4

Overview of Consol

Financial Highlight Consolidated Statements of Income

P5 P6 P11

Selling, General and Administrativ Consolidated Balance Sheets Sta Business Overview

P11 P12 Trends in Quarterly Consolida

Consolidated Balance Sheets Sta

P13

Trends in Quarterly Consoli

P14 P15

Approach in the

Basic Policy of the Fisca h

P16 P18 P22

Focus on iPhone Use Enlargement of Con New Approach

P24 Consolidated Fore P23

Point for the Cons

P25 Capital Polic

Appendix

P27 Appendix P27

lidated Financial Results lidated Financial Results

e ve Expenses atements ated Statements of Income atements idated Selling, General and Administrative Expenses

e Fiscal Year 2013

al Year ers ntents Services ecast solidated Forecast

cy

P1

Overview of Co Fi i l R l Financial Resul

• nsolidated

lts

P2

Financial Financial Highlight Highlight

Smartphones

Turn over

Total

Turn over

2

Net sales Ordinary income

2

Net sales Devidend:

3.13

(+2.4 million, yoy)

million paying subscribers

(+2.4 million, yoy)

r in Q4

8.13 millionpaying subscribers

(-0.81 million, yoy)

r in Q4

29 382

illi f

1,704

millions of yen

29,382

(-2,959millions of yen, -9.2% )

millions of yen y

(-1,997 millions of yen, -54.0% )

4,000

(no changed, yoy)

yen

P3

(at the end of fiscal year)

Consolidated Profit and Loss Statements Consolidated Profit and Loss Statements

(Millions of yen） FY2012 FY2011 Net sales

29,382 32,342

Cost of sales

5,665 7,571

Gross profit

23,716 24,770

（Gross profit ratio）

80.7% 76.6%

S ll G l d Selling, General and Administrative Expenses

22,012 21,067

Operating income

1,704 3,702

Breakdown in the P5 （Operating income ratio）

5.8% 11.4% Ordinary income

1,697 3,692

（ d ）

5 8% 11 4%

（Ordinary income ratio）

5.8% 11.4% Net income

109 1,797

（Net income ratio）

0.4% 5.6%

Falli in income due to the decrease in the total numbers f i b ib

Change Amount Ratio(%)

• f paying subscribers

Increase in gross Profit ratio

• 2,959
• 9.2%
• 1,906
• 25.2%
• ---- Factors-----

・Decrease in the number of downloads in music contents ・Higher sales contributions f lif t l i f ti Profit ratio

• 1,053
• 4.3%

from lifestyle information- related Services with low cost of saels ratios

+944 +4.5%

• 1,997
• 54.0%

Extraordinary loss: ¥739 million ( kd )

• 1,994
• 54.0%

(Breakdown) ・Loss on valuation of investment securities ・・・¥291 million ・Impairment loss of goodwill ・・・¥278 million

• 1,688
• 93.9%

¥278 million ・Loss on retirement

• f noncurrent assets

・・・¥128 million

P4

Selling, General Selling, General and Administrative Expe and Administrative Expe

(Millions of yen） FY2012 FY2011 Total

22,012

21,067 Advertising Advertising expenses

7,651

7,436 Personal expenses

5,519

5,047 Commission fee

3,289

3,566 Subcontract expenses

1,543

1,300 Depreciation

1 434

1 121 Depreciation

1,434

1,121 Other

2,573

2,595

enses enses

Change Amount Ratio(%) ＋944 +4.5％ ＋215 +2.8％ ＋472 +9.3％

Increase in hiring new graduates and strengthen the development power

• 276
• 7.7％

power （+116 employees, yoy）

＋242 +18.6％ ＋312 +27 8％

Increase in cost of development for smart phone services

＋312 +27.8％

• 22
• 0.8％

P5

Business Business Overview Overviewⅰ ) The Total Number The Total Number

8 13

illi

i

b ib

8.13

（-0.81 million, yoy）

million paying subscribers

802 862 933 931 938 962 973

09/09 09/12 10/03 10/06 10/09 10/12 11/0

Chang

Smart phone Feature phone

Chang

phone phone

r of Paying Subscribers r of Paying Subscribers

Stopped to decrease due to expansion of h d d i 4th smart phone users, and turned over in 4th quarter.

800 1000

813

3 936 894 859 858 804

8

illi

600 800 8 million 6 million 400 4 million 200 2 million

03 11/06 11/09 11/12 12/03 12/06 12/09

ge in the number of paying subscribers

P6

ge in the number of paying subscribers

Business Overview Business Overview ⅱ ) The Number of Pa The Number of Pa

As of September 30 2012 As of September 30, 2012

3

（+2.4 million compared to September 30, 2012）

1.15 milli 73 million

10/09 10/12 11/03 11/06 11/09

Change in the number of paying sub

aying Subscribers aying Subscribers （Smartphones Smartphones）

Strong increase

3 0 million

.13 .13

g million

3.0 million

1.97 million 2.29 million

2.0 million

ion

1.0 million

11/12 12/03 12/06 12/09

12/09

bscribers for smartphones

12/09

P7

Business Business Overview Overview ⅲ) docomo docomo “d “d-menu menu

• n the do

No.1 continued

※ Source: Ranking data from “d-menu” , a portal site for smartphone servic

u” Ranking u” Ranking

• como “d-menu” in each category

New services ranked high on the list!

2位 3位 3位 2位 3位 3位

P8

ces, by NTT docomo Co., Ltd. as of October 15, 2012

Business Business Overview Overview ⅳ) Adaption to Adaption to iPh iPh

Main categories has been adopted to iPh

• ne
• ne

hone.

P9

Business Business Overview Overview ⅴ) Enhancement to Enhancement to

Authentication and payment platform

Collaborated with the various point-services Increased to pay for purchases

10/09 10/12 11/03 11/

※Softbank payment

the the mopita mopita Business Business

5 million

million issued IDs

5.5 5.5

Achieved

4 million 2 million 3 million 1 million

/06 11/09 11/12 12/03 12/06 12/09

P10

※Mobile Suica is trademark resistered to East Japan Railway Company.

Consolidated Consolidated Balance Sheets

Balance Sheets

Net cash is ¥2.40 billion at the end of September 30 (¥2 74 billion at the end of September 30 2011)

(Millions of yen) FY2012 FY2011 Change C 9 630 11 4 0 1 834

(¥2.74 billion at the end of September 30, 2011)

Current assets 9,630 11,470

• 1,834

Cash and deposit 2,563 3,108

• 545

Accounts receivable-trade 6,188 7,633

• 1,444

Other 1,147 1,099 +50 All f d b f l Allowance for doubtful accounts

• 268
• 370

+102 Noncurrent assets 4,340 4,411

• 70

Tangible fixed assets 218 253

• 35

Intangible fixed assets 2,483 2,338 +144 Include software 2,255 2,005 +249 Include goodwill 171 313

• 142

Include goodwill 171 313 142 Investments and other assets 1,639 1,818

• 179

Include investment securities 376 643

• 267

Total assets 13,971 15,881

• 1,910

0, 2012

(Millions of yen) FY2012 FY2011 Change L b l 66 6 6 Liabilities 4,566 5,626

• 1,059

Accounts payable trade 1,233 1,541

• 308

Current portion of long-term loans payable 99 200

• 101

Account payable-other 1,964 1,555 +409 Income taxes payable 7 1,044

• 1,036

Allowance for coin usage 420 497

• 76

Other 840 788 +52 Noncurrent liabilities 482 584

• 101

Long-term loans payable ― 99

• 99

Convertible bond ― 61

• 61

Other 482 424 +58 Total liabilities 5,049 6,210

• 1,161

, , , Capital stock 2,562 2,562 ― Capital surplus 3,078 3,072 +5 Retained earning 3,394 3,819

• 425

Treasury stock 397 397 Treasury stock

• 397

―

• 397

Subscription rights to shares 211 163 +48 Minority interest 64 18 +46 Net assets 8,922 9,670

• 748

Total liabilities and net assets 13,971 15,881

• 1,910

P11

Trends in Trends in Consolidated Consolidated Statements of Statements of

(Millions of yen） Fiscal year ended September 30, 2011 Q1 Q2 Q3 Net sales 7,961 8,379 8,146 Cost of sales 2,038 1,955 1,907 Gross profit 5,923 6,424 6,239

（Gross profit ratio）

74.4％ 76.7％ 76.6％

Selling, general and Selling, general and administrative expenses

5,021 5,549 5,173 Operating income 902 875 1,065

（Operating income ratio）

11.3％ 10.4％ 13.1％ Ordinary income 895 871 1,066 ％ ％ ％

（Ordinary income ratio）

11.3％ 10.4％ 13.1％ Net income 276 646 583

（Net income ratio）

3 5％ 7 7％ 7 2％

（Net income ratio）

3.5％ 7.7％ 7.2％

f Income f Income

Fiscal year ended September 30, 2012 Q4 Q1 Q2 Q3 Q4 7,855 7,485 7,215 7,251 7,429 1,673 1,597 1,407 1,355 1,304 6,182 5,887 5,807 5,896 6,125 78.7％ 78.7％ 80.5％ 81.3％ 82.4％ 5,323 4,916 5,628 5,391 6,075 858 970 179 504 49 10.9％ 13.0％ 2.5％ 7.0％ 0.7％ 859 961 178 506 50 ％ ％ ％ ％ ％ 10.9％ 12.8％ 2.5％ 7.0％ 0.7％ 291 183

• 6

234

• 301

3 7％ 2 5％ 0 1％ 3 2％ 4 1％ 3.7％ 2.5％

• 0.1％

3.2％

• 4.1％

P12

Trends in Trends in Consolidated Selling, General Consolidated Selling, General a

(Millions of yen） Fiscal year ended September 30, 2011 Q1 Q2 Q3 Total 5,021 5,549 5,173 Advertising Advertising expenses 1,975 2,293 1,671 Personal expenses 1,090 1,191 1,312 Commission fee 876 895 901 Subcontract expenses 275 294 313 Depreciation 246 271 294 Other 556 603 678

and Administrative and Administrative Expenses Expenses

Fiscal year ended September 30, 2012 Q4 Q1 Q2 Q3 Q4 5,323 4,916 5,628 5,391 6,075 1,495 1,348 2,104 1,714 2,483 1,452 1,377 1,258 1,457 1,427 892 823 824 821 819 417 368 407 376 391 309 314 343 373 402 756 683 689 647 552

P13

New Approach New Approach pp pp in FY2013 in FY2013

P14

Basic Policy for the Fiscal Year 2013 Basic Policy for the Fiscal Year 2013

Expansion in number of payin Focus on iPhone users

P16

Enlargement of contents se

P18

New approach

P23

ng subscribers s ervices

P15

Focus on Focus on iPhone iPhone Users Users

Full-scale launch of services targetin

Market share by the OS of Smartphone subscribers （As of December 31, 2011）

windows

Enhancing lin

Other iOS

Enhancing lin Effective prom

Android

Source: ＭＭ Research Institute, Ltd. (Minato-ku, Tokyo)

ng potential iPhone users

Makeup of MTI Smartphone subscribers by the OS neup of services for iPhone

windows Other

neup of services for iPhone motion for iPhone

Android 95％ iOS 5％

P16

Focus on Focus on iPhone iPhone Users Users

Main iPhone-compatible MTI conte

※１ ※2 Oct, 2010 Oct, 2011 ※1 “Josei-no-igaku”(Medical service for women) has been changed its name into “Luna-luna” si ※2 “Bebi machi”(Medical service for pregnancy) has been changed its name into “Luna luna” s ※2 Bebi-machi (Medical service for pregnancy) has been changed its name into Luna-luna s ※3 “Luna-luna-plus”has been changed its name into “Luna-luna beauty” since July 2012. which

ents

※3 Oct, 2012 Oct, 2013 ince July 2012, which has corresponded to iPhone since July 2010. since July 2012 which has corresponded to iPhone since July 2010

P17

since July 2012, which has corresponded to iPhone since July 2010. h has corresponded to iPhone since November 2011.

Enlargement of the Contents Services Enlargement of the Contents Services ⅰ) )

～Anytime, anywhere～

Increasing opportunities for enjoy

usa

Multi-OS, M

M i l Purchasing music number Music player Managing music number Car system is In preparation.

) ) Music Music

ying music

age

Multi-devices

To be pre-installed to the Windows 8

P18

Enlargement of the Contents Services Enlargement of the Contents Services ⅱ

～Anytime, anywhere～

Increasing opportunities for enjoy

SNS

Started search portal related to music information. To be shared o play lists with o

) Music Music

ying music

Multi-payment

• f music
• thers.

Cooperating Points

P19

Enlargement of the Contents Services Enlargement of the Contents Services ⅲ

～Enjoy by yourself or with a group ～

Increasing opportunities for enjoying

All-you-can-read novels y (C)Hajime Isayama/Kodansha, Ltd.

Always adding new genres and produc Always adding new genres and produc

) e e-Book Book

e-books

All-you-can-hear audio books All-you-can-look at photo books y y p

ts

P20

ts

Enlargement of the Contents Services Enlargement of the Contents Services ⅳ

Marriage Pregnan

～Responding to the concerns of women～

Developing new female healthcare su

puberty pregna

Predict menstrual period

￥189 per month

Predict menstrual period Pregnan And Childbi

Started in Jul, 202

￥315 per month

Star Jul,

For beauty & diet Menopause support service has sta

,

I ti f i i In preparation for insurance servi

) Healthcare Healthcare-

• related

related

ncy Childbirth Menopause

upport services for each life stage.

Menopause ncy Childcare ￥315 per month ￥315 per month

ncy irth Menopause Childcare Enlarged our service area

Started in Oct, 2012 ted in 2012 In preparation

arted aimed women at their late 30s through 50s! t !

P21

ces, too!

New Approach New Approach： Enterd into Healthcare Enterd into Healthcare-

Bo

～Simply stand on or attach～

Easy health maintenance

Bo

U

Qu

Health management as simple as stand Exhibited CEATEC in October, 2012 Many people were interested in it and gathered at our booth! Health management as simple as stand

• related Business

related Business

• dy composition scale

Active mass scale

A & D Tanita

• dy composition scale

Active mass scale

A & D UC-411PBT-C Tanita BC-505 Estella FS-700 （Image; transferring data of active mass） （ g ; g ）

Passometer uantity activities scale

ing on or attaching the applicable healthcare equipment!

Yamasa watch EX-950 Estella FS-500A Collaboration with Estella

P22

ing on or attaching the applicable healthcare equipment!

Key Point of Consolidated Forecast in the Key Point of Consolidated Forecast in the

Enlarge smartphone market. Aim to enlarge its market share. g Sales 30,000

Nowadays we are in the turning point from featur

millions of

Nowadays we are in the turning point from featur Subsidiary Jibe Mobile is going strong by system o

1,710

Operating income

Strengthen the promotion strategy to focus on the

e FY2013 e FY2013

re phone to Smartphone.

yen (617 millions of yen, yoy)

re phone to Smartphone.

• rders.

millions of yen (5 millions of yen increased , yoy)

e smartphone users.

P23

Consolidated Forecast Consolidated Forecast

(Millions of yen）

FY2013 1st Half 2nd Half Net sales 30,000 14,500 15,500 Cost of sales 5,650 2,700 2,950 Gross profit 24,350 11,800 12,550

（Gross profit ratio）

81.2％ 81.4％ 81.0％

Selling general and Selling, general and administrative expenses

22,640 11,700 10,940 Operating income 1,710 100 1,610

（Operating income ratio）

5.7％ 0.7％ 10.4％ Ordinary income 1,700 100 1,600

（Ordinary income ratio）

5.7％ 0.7％ 10.3％ Net income 750 50 700

（ ）

2 5％ 0 3％ 4 5％

（Net income ratio）

2.5％ 0.3％ 4.5％ FY2012 1st Half 2nd Half YoY Amount

（Full-year)

Change(%)

(Full-year)

29,382 14,681 14,681 +617 +2.1％ 5,665 3,005 2,660

• 15
• 0.3％

23,716 11,695 12,021 +633 +2.7％ 80.7％ 79.6％ 81.9％ 22,012 10,545 11,466 +627 +2.9％ 1,704 1,150 554 +5 +0.3％ 5.8％ 7.8％ 3.8％ 1,697 1,140 557 +2 +0.1％ 5.8％ 7.8% 3.8％ 109 176

• 67

+640 +585.3％ 0 4％ 1 2％ 0.4％ 1.2％ ー

P24

Capital Policy Capital Policy p y p y

P25

Capital Policy Capital Policy

Coordinate sustainable medium t profits to our shareholders p

4 000

Devidend per share FY2012;

Placed stable dividend much v

yen (estimated)

4,000

Estimated dividend at the fiscal year ending Septe

Responded flexibly

MTI common stocks is going to be acquired up （up to 300 millions of yen of acquisition cost） 2.9 % of the shares issued (treasury stocks exclude Date of acquisition of treasury stocks: 2012/11/2～

※1 It b bl t i ti ll f th l

y

※1 It may be unable to acquire a portion or all of the plan ※2 Shares issued as of October 31, 2012 (treasury stocks e

to long term sales / profit growth with the return of

value

ember 30, 2013: ¥4,000 to ed)※2 ～12/21

d t d di k t t d d th f t

3,750

shares ※1

P26

nned amount depending on market trends and other factors. xcluded) ：129,287 shares, Treasury stocks; 4,401 shares

Appendix Appendix Appendix Appendix

P27

Consolidated Consolidated Statements of Income Statements of Income（Q4 Q4）

(Millions of yen） FY2012 F Q4 Net sales 7,429 Cost of sales 1,304 Gross profit 6,125

（Gross profit ratio）

82.4％

Selling general and Selling, general and administrative expenses

6,075 Operating income 49

（ ）

0 7％

（Operating income ratio）

0.7％ Ordinary income 50

（Ordinary income ratio）

0 7％

（Ordinary income ratio）

0.7％ Net income

• 301

（Net income ratio）

• 4.1％

（ ）

4.1％ FY2011 YoY Q4 Amount Change (%) 7,855

• 425
• 5.4％

1,673

• 368
• 22.0％

6,182

• 56
• 0.9％

78.7％ 5,323 +752 +14.1％ 858

• 809
• 94.2％

10 9％ 10.9％ 859

• 808
• 94.1％

10 9％ 10.9％ 291

• 593

ー 3.7％ 3.7％

P28

Selling, General Selling, General and Administrative Expe and Administrative Expe

（Millions of yen） FY2012 FY2011 Q4 Q4 Total 6,075 Advertising expenses 2,483 Personal expenses 1,427 Commission fee 819 Subcontract expenses 391 Depreciation 402 Depreciation 402 Other 552

enses enses（Q4 Q4）

1 YoY Amount Chane (%) 5,323 ＋752 +14.1％ 1,495 ＋987 +66.0％ 1,452

• 25
• 1.7

892

• 72
• 8.2％

417

• 26
• 6.3

309 ＋93 +30 1％ 309 ＋93 +30.1％ 756

• 203
• 27.0

P29

Thank you very much. Thank you very much.

Contact us Corporate Planing Departme TEL : +81-3-5333-6323 FAX : Mail : +81-3-3320-0189 ir@mti.co.jp HP : http://www.mti.co.jp

This report contains forward-looking statements on business performance b information available at the time. Actual results may differ substantially due y y internal or external business environments or aspects of uncertainty contain uncertainty factors include unpredictable elements that could arise from futu

nt

based on the judgments, assumptions, and beliefs of management using the to changes in domestic or overseas economic conditions or changes in the g g ned in the forecasts, latent risks or various other factors. In addition, risk and ure events.

P30