ValueCommerce : Q1 Earnings Slidespdf

ValueCommerce : Q1 Earnings Slidespdf

ValueCommerce Co., Ltd.

2491

JP3778390009

Advertising & Marketing

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ValueCommerce Co., Ltd.

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2491

JP3778390009

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Sector Other Advertising & Marketing

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Market Closed - Japan Exchange Other stock markets 02:00:00 2024-04-16 am EDT			5-day change	1st Jan Change
1,031 ^JPY	-1.81%		-1.15%	-29.72%

Apr. 11	ValueCommerce Repurchases 11 Billion Worth of Shares Amid Tender Offer	MT
Apr. 11	ValueCommerce to Become an Equity Method Affiliate of LY Corp After Tender Offer	MT

April 28, 2020 at 03:18 am EDT

ValueCommerce Co., Ltd.

FY2020 Q1

Financial Results

April 28, 2020

Table of Contents

		Page
● FY2020 Q1	Highlights	2
● FY2020 Q1	Consolidated Financial Results	3
● Segment information	15
● FY2020 Consolidated Operating/Dividends Forecast	27
● Appendix 1	(Consolidated Financial Results Overview)	31
● Appendix 2	(STORE's R∞ : Effect of CV information deficit)	33

FY2020 Q1 Highlights

● Q1 Result and Impact of COVID-19 Total impact is limited

Highlights

	Jan.-Mar. 2020	Y/Y	Progress against
			full year forecast

Revenue	¥7.6 billion	+21.6％	25.5%

Operating Income	¥1.5 billion	＋22.9％	27.8%

● Q2 Forecast and Impact of COVID-19 (As of April 28)

Total

- Leave operating forecast unrevised. Impact of COVID-19 on each business is under examination - The Group will announce the revision immediately if necessary.

Affiliate Marketing

- Estimate decline in revenue in some categories such Travel, Recruiting, etc.

- Enhance the categories in demand of online-shopping, etc. and make efforts targeting after the end of the spread of COVID-19

Services for stores in the online shopping mall operated by Yahoo Japan Corporation

Attention against financial impact. Continue to make efforts to increase stores' Gross Merchandise Value (GMV).

Dynatech inc. (Develops and provides information system for accommodation facilities)

Delay in getting new customers is unavoidable. Keep relation with existing customers.	2

FY2020 Q1 Consolidated

Financial Results

FY2020 Q1 Highlights

Results overview

・Existing services expanded Revenue: ＋11.5% Operating income: +19.7%

・Starts to consolidate Dynatech and B-SLASH

(Million JPY)

Quarterly

	Jan.-Mar.	Y/Y	Q/Q
	2020


Revenue	7,661	+21.6%	+3.6%

Operating income	1,526	+22.9%	+3.5%

EBITDA（*）	1,747	+31.2%	+4.8%

Net income attributable to	1,013	+21.2%	+2.5%
owners of the parent


Segment revenue

Marketing solution business	4,595	+1.6%	+10.0%

EC solution business	3,066	+72.5%	-4.8%

(*)EBITDA＝Operating income＋Depreciation and amortization＋Amortization of goodwill

	Existing services expanded:	Reactionary decrease
	＋36.5%	after year-end sale

Consolidated Financial Results Overview Results overview

	・Existing services expanded
	・Starts to consolidate Dynatech and B-SLASH	(Million JPY)


	Quarterly

			Jan.-Mar.	Y/Y	Q/Q
			2020


Revenue					7,661	+21.6%	+3.6%

Cost of revenue					4,836	+13.3%	+6.4%

Gross income					2,825	+39.0%	-0.8%

SG&A expenses					1,298	+64.3%	-5.5%
		Related to subsidiaries
Operating income			1,526	+22.9%	+3.5%

Ordinary income	Existing services expanded	1,523	+22.5%	+2.6%

					1,524	+23.4%	+4.8%
Income before income taxes

Income taxes					510	+28.1%	+9.8%

Net income attributable to owners of			1,013	+21.2%	+2.5%
the parent


Basis EPS					¥31.39

ROE (annualized)					34.6%

EBITDA（*）					1,747	+31.2%	+4.8%

（*）EBITDA＝Operating income＋Depreciation and amortization＋Amortization of goodwill

Consolidated Revenue

Quarterly results

(Million JPY) 10,000

7,661

8,000						6,0936,300	7,395
						5,985
6,000						6,013
		4,663	4,677	4,948	5,044

		3,960
4,024	4,241
4,000

2,000

FY2017

FY2018

FY2019

FY2020

Consolidated Operating Income and Operating Margin

Quarterly results

(Million JPY)
Quarterly Operating Income	Quarterly Operating Margin

1,800								1,242	1,4741,526 30.0%
										19.9%
									19.7%
1,200					17.7%			1,137		1,129	1,119		20.0%
					827	871	919
	12.0%

				747
600	483		575										10.0%

	416

0													0.0%
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
		FY2017			FY2018			FY2019		FY2020

Consolidated Ordinary Income and Net Income

Quarterly results

(Million JPY)	Ordinary Income	Quarterly Net Income

2,000

1,500															1,484	1,523

								1,242

									1,122		1,139	1,121					1,013
1,000								989			836					989
				765	821	859		789	752	766


				582				692
491				551	571
	417		431
500

330
			121	126
0
Q1		Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1		Q2		Q3		Q4		Q1

			FY2017			FY2018				FY2019			FY2020

Impairment loss on ad network service

(Decided to close the service)

Impairment loss on CRM service for general EC business owner (Decided to close the service)

Cost of Revenue and Cost Rate

Quarterly results

(Million JPY)		Quarterly Cost of Revenue		Cost rate

6,000								4,267		4,836	100.0%
										63.1%
70.1%							67.7%			4,546		80.0%
		66.9%
			4,042
								4,032	4,024
4,000

			3,072	3,128	3,311	3,380							60.0%
2,821		2,940
2,731
													40.0%
2,000
													20.0%
0													0.0%
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
	FY2017			FY2018			FY2019		FY2020

Starts to consolidate Dynatech

Starts to consolidate B-SLASH

SG&A and SG&A ratio

Quarterly results

Y/Y Expenses of subsidiaries: +¥430M

(Compensation expense of ¥190M, Other SG&A of ¥140M, Amortization of goodwill of ¥80M)

（Million JPY）												1,298
1,500
										1,374

1,000	718	812	725	843	721	766	744	914	790 851	841
500
0
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
		FY2017			FY2018			FY2019		FY2020
Amortization of Goodwill	43	43	28	28	28	28	28	28	28	28	28	91	115
Compensation	424	481	429	486	427	445	417	470	431	509	463	680	673
Other SG&A	250	287	267	328	266	292	298	415	331	313	350	602	508
SG&A total	718	812	725	843	721	766	744	914	790	851	841	1,374 1,298
SG&A ratio(%)	17.9	20.5	17.1	18.1	15.4	15.5	14.8	15.0	12.5	14.2	14.1	18.6	16.9

Starts to consolidate Dynatech

Starts to consolidate B-SLASH	Ltd.	10

Number of employees

Quarterly results

500
																398	391	404


		400

															273
		300
			248	240		236	241	244	242	246	246	250

200

100

0
			Q1	Q2	Q3		Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1

					FY2017				FY2018				FY2019				FY2020

	VC	242	235		231	236	244	242	246	246	250		273	273	266		266



	Subsidiaries	6	5		5	5	-	-	-	-	-		-	125	125		138



	Total Employees	248	240		236	241	244	242	246	246	250		273	398	391		404


									- Starts to consolidate Dynatech in September 2019.
	* Including temporary employees.			- Account compensation expense from 2019Q4

- Starts to consolidate B-SLASH in January 2020.
- Account compensation expense from 2020Q1	Co., Ltd. 11

Breakdown of Consolidated Operating Income

Results overview

(Million JPY)	Existing services expanded.
(based on operating income)
	+213	-38

+78

1,242 +30

1,526

2019 Q1	Affiliate Storematch STORE's R∞ Other	2020 Q1
	Marketing

(Note) Calculated based on the profit of each service and other factors.

Consolidated Balance Sheet

Results overview

(Million JPY)

Q4'19 End	Q1'20 End	Change	Factors of Change
(Dec.31,2019)	(Mar.31,2020)

Current assets	13,472	12,850	-621	Cash and deposits: -511
Notes and accounts receivable-
				trade: -206	Related to B-SLASH

Cash and	[7,862]	[7,350]	-511		-Software: +134
deposits		-Goodwill: +456

Noncurrent	4,539	5,178	+639	Software: ＋227
assets	Goodwill: +364
Total assets	18,011	18,029	+17
				Accounts payable-trade: +107
Current	6,437	5,966	-471	Provision for bonuses: +126
liabilities	Accounts payable-other:-414
				Income tax payable: -510
Noncurrent	82	110	+28
liabilities

Net assets	11,491	11,952	+460	Net income: +1,013
Cash dividends paid: -613

Consolidated Cash Flows

Results overview

（Million JPY）

(Million JPY)

	Jan.-Mar.Jan.-Mar.
	2019	2020
Operating cash flows	489	803
Investing cash flows	-23	-707
Acquisition of share of B-SLASH Corporation
Free cash flows	465	96
Financing cash flows	-570	-608
Incremental cash	-105	-511
flows

Ending cash balance	7,872	7,350

Breakdown

● Operating cash flows
Income before income taxes	1,524
Depreciation and amortization	104
Amortization of goodwill	115
Decrease in accounts receivable-trade	206
Increase in accounts payable-trade	107
Decrease in accounts receivable-other	52
Decrease in accounts payable-other	-482
Income taxes paid	-1,005
● Investing cash flows
Proceeds from distribution of investment	92
in partnership

Purchase of intangible assets	-206
Acquisition of share of subsidiary	-537
● Financing cash flows
Cash dividends paid	-607

Segment Information

Overview by segment

"Marketing Solution Business" mainly includes "Affiliate Marketing"
"EC Solution Business" mainly includes "Storematch", "STORE's R∞" and subsidiaries; "Dynatech" and "B-SLASH"

				(Million JPY)

			Quarterly

		Jan.-Mar.	Y/Y	Q/Q
		2020


Marketing	Segment revenue	4,595	+1.6%	+10.0%

Solution

Business	Segment operating	826	+3.9%	+29.0%
	income


	Segment revenue	3,066	+72.5%	-4.8%
EC Solution
Business	Segment operating	1,021	+43.0%	-17.9%

	income

(Notes) Segment operating income is adjusted to operating income in the consolidated financial statement.

- Existing services expanded Revenue: ＋36.5% Operating income: +37.4%

- Starts to consolidate Dynatech and B-SLASH

Effect of CV information deficit

- Please refer P.41 about adjusted figures

Service Information

Overview by segment

									(Million JPY)

							Quarterly

				Jan.-Mar.			Y/Y	Q/Q
			2020


Marketing	Affiliate	Revenue	4,584		+1.5%	+9.8%

Solution	marketing
Gross
Business	(ASP+Consulting)	1,256		+3.7%	+7.4%
income


		Revenue	1,570		+41.9%	-2.6%
	Storematch
	Gross	366		+36.1%	-6.8%

EC Solution		income


Business		Revenue	857		+31.5%	-26.5%

	STORE's R∞
	Gross	857		+31.5%	-26.5%

		income



				Good performance


					Effect of CV information deficit
					- Please refer P.42 about adjusted figures

Affiliate Marketing Revenue by Service

Affiliate marketing

(Million JPY)
		5,000										4,516			4,174	4,584

											4,277	4,220	4,104
										3,756
		4,000				3,499		3,724
		3,145 3,133 3,379	3,564


		3,000

		2,000

		1,000

		0
		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2		Q3		Q4		Q1


				FY2017				FY2018				FY2019				FY2020
	ASP		588	593	569	599		594	539	558	637		685	660		695		697		731



	Consulting		2,557	2,539	2,809	2,900	2,970	3,184	3,198	3,640	3,830	3,559	3,409	3,477	3,853



	Affiliate Marketing total	3,145	3,133	3,379	3,499	3,564	3,724	3,756	4,277	4,516	4,220	4,104	4,174	4,584

Affiliate Marketing

Gross Income by Service

Affiliate marketing

(Million JPY)	1,500
					1,211	1,256


							1,128	1,164	1,162 1,169

	951	940	970	975	1,000	1,005 1,024
	1,000

500

0
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1


					FY2017			FY2018			FY2019			FY2020
		ASP	493	502	504	515	529	502	516	570	639	604	631	623		680



		Consulting	458	438	466	459	470	502	508	557	572	560	531	545		576



		Affiliate Marketing total	951	940	970	975	1,000	1,005	1,024	1,128	1,211	1,164	1,162	1,169	1,256

		Gross Profit Margin(%)	30.3	30.0	28.7	27.9	28.1	27.0	27.3	26.4	26.8	27.6	28.3	28.0		27.4

Number of Advertisers & Publishers

Advertisers (Number of ID)

Affiliate marketing

FY2017

FY2018

FY2019

FY2020

Publishers (Number of ID)

(Thousand)

1,200

669

679

688

697

708

718

729

739

750

759

764

772

800

400

FY2017

FY2018

FY2019

FY2020

Affiliate Marketing

Revenue Breakdown by Category

Affiliate marketing

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

		Finance			Electronics			Travel		Recruiting		Shopping			Beauty			Gourmet		Other



16.3%	12.5%	12.8%	12.3%		12.3%	12.3%	11.2%	11.1% 10.7%	10.5%	10.3%	10.8% 11.8%
	1.0%	1.0%	1.7%			3.1%	2.1%	2.2%	5.2%		5.5%	2.4%	1.9%	3.2%	5.0%
2.2%				7.7%	7.3%	6.4%
8.7%	8.7%	8.6%					9.2%
		8.5%	9.3%	7.3%		6.4%				5.2%
7.2%															8.4%	8.6%
		8.0%												7.7%	8.5%	7.1%
	9.0%	9.7%			8.1%	8.8%	10.2%	8.2%
9.5%
10.3%	9.6%	9.6%			10.9%						10.0% 10.9%	12.0%	11.7%	12.1%	12.0%

9.9%			11.9%	13.8%
14.3%	19.2%	15.4%		14.0%	13.9%	11.2% 10.6%	12.7%	14.1%	12.2%	9.9%

13.6%
		15.5%

																					15.5%
10.3%	10.1%	8.2%	12.5%		11.1%	10.6%	11.6%	13.1% 17.4%	17.7%	18.3%	18.3%




30.9%	34.1%	32.6%	30.0%		32.0%	31.2%	26.4%	34.0%		30.8%	28.5%	28.0%	28.3%	33.5%



Q1		Q2			Q3	Q4	Q1		Q2	Q3	Q4		Q1			Q2	Q3	Q4	Q1
		FY2017						FY2018							FY2019		FY2020

Affiliate Marketing Commissions for Publishers

Affiliate marketing

(Million JPY)		Commissions for publishers		Smartphone ratio

6,000								4,707	5,306			5,388 100.0%
						4,312			4,898 4,843 4,945
			3,961			4,320
			4,055 4,087
4,000	3,667	3,776
													62.5%
										58.5%			50.0%
	45.5%				50.4%

2,000
0													0.0%
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
		FY2017			FY2018			FY2019		FY2020

Affiliate Marketing Number of Transactions

Affiliate marketing

(Million)		Number of transaction		Smartphone ratio

20.0								16.4				100.0%
			16.9	16.1	16.1		17.2
14.8	15.1	14.6	15.7			15.8	14.9	14.5	14.9

								51.8%				62.1%

10.0												50.0%
33.5%			40.4%

0.0												0.0%
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
	FY2017			FY2018			FY2019		FY2020

Storematch Revenue by Service

Storematch

（Million JPY）

2,000

1,611 1,570

1,500

1,106 1,133 1,251

1,051

1,000

500

456 463 471

593 596 642

719

0
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1

					FY2017			FY2018			FY2019		FY2020


		Storematch	398	416	424	516	537	584	659	959	1,039	1,065	1,177	1,521	1,504



		Other	58	46	47	76	59	58	60	91	67	67	73	90	66



		Storematch total	456	463	471	593	596	642	719	1,051	1,106	1,133	1,251	1,611	1,570

Storematch

Gross Income by Service

Storematch

（Million JPY）

500
												393	366
400
									269 286	310
300									282
				181		174	192
200
				166
	142	134	132

100

0
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1

					FY2017			FY2018			FY2019		FY2020

		Storematch	83	87	85	104	107	116	131	191	202	218	236	303	300



		Other	58	46	47	76	59	58	60	91	67	67	73	90	66



		Storematch total	142	134	132	181	166	174	192	282	269	286	310	393	366

		Gross Profit Margin(%)	31.1	29.0	28.2	30.5	28.0	27.2	26.7	26.9	24.4	25.3	24.8	24.4	23.4

STORE's R∞											STORE's R∞

Revenue

（Million JPY）
1,500
												1,167

1,000
													857

				510				738	652 635	603
					546	537
500				475

	219	280

	163

0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1

		FY2017			FY2018			FY2019			FY2020

								Effect of CV information deficit
								- Please refer P.43 about adjusted figures

FY2020 Consolidated

Operating/Dividend

Forecast

FY2020 Consolidated Operating Forecast

Operating forecast

- Leave operating forecast unrevised. Impact of COVID-19 on each business is under examination

- The Group will announce the revision immediately if necessary.

							(Million JPY)

	Q1'20		First Half			Full Year

	Result	Forecast	Y/Y	Q1'20	Forecast	Y/Y	Q1'20
		Progress	Progress


Revenue	7,661	14,300	+16.1％	53.6%	30,000	+16.8%	25.5%

Operating income	1,526	2,550	+7.5%	59.9%	5,500	+10.7%	27.8%

Ordinary income	1,523	2,550	+7.0%	59.7%	5,500	+10.3%	27.7%

Net income
attributable to	1,013	1,670	+5.1%	60.7%	3,600	+7.6%	28.2%
owners of the parent
Basis EPS	¥31.39	¥51.70			¥111.45

FY2020 Dividends Forecast

Dividends forecast

The target payout ratio is 30%

Dividends per Share, Consolidated Payout Ratio

Interim Dividend	¥16.00 （forecast）

Year-end Dividend	¥18.00 （forecast）

Total	¥34.00 （forecast）

Consolidated Payout Ratio	30.5% （forecast）

Appendix 1

Consolidated Results and Cash Flows	(Quarterly)
								(Million JPY)

		FY2018			FY2019		FY2020
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Revenue (+ASP commission for publisher)	6,387	6,574	6,667	7,868	8,357	7,934	8,004	9,323	9,745
Affiliate marketing revenue(+ASP commission	5,274	5,350	5,379	6,052	6,573	6,141	6,123	6,101	6,668
for publisher)

Revenue	4,677	4,948	5,044	6,093	6,300	6,013	5,985	7,395	7,661
Affiliate marketing(Consulting)	2,970	3,184	3,198	3,640	3,830	3,559	3,409	3,477	3,853
Affiliate marketing(ASP)	594	539	558	637	685	660	695	697	731
Storematch	596	642	719	1,051	1,106	1,133	1,251	1,611	1,570
STORE's R∞	475	546	537	738	652	635	603	1,167	857
Others	41	35	30	26	24	24	25	442	648
Cost of revenue (-)	3,128	3,311	3,380	4,042	4,267	4,032	4,024	4,546	4,836
Cost of revenue (direct)	3,007	3,199	3,269	3,923	4,146	3,909	3,890	4,381	4,672
Affiliate marketing (Consulting)	2,499	2,682	2,690	3,082	3,258	2,999	2,877	2,931	3,277
Affiliate marketing(ASP)	64	36	41	66	46	56	64	73	51
Storematch	429	468	527	768	836	846	940	1,218	1,203
Others	14	12	9	6	4	6	7	158	141
Cost of revenue (indirect)	120	112	111	118	120	123	133	165	163
Gross profit	1,549	1,637	1,663	2,051	2,033	1,980	1,961	2,848	2,825
SG&A expenses (-)	721	766	744	914	790	851	841	1,374	1,298
Compensation	427	445	417	470	431	509	463	680	673
Other SG&A	294	320	326	443	359	341	378	694	624
Operating income	827	871	919	1,137	1,242	1,129	1,119	1,474	1,526
Ordinary income	821	859	989	1,122	1,242	1,139	1,121	1,484	1,523
Extraordinary gains/losses (net)	-3	-12	12	34	-7	-40	-2	-30	1
Income before income taxes	817	847	1,002	1,157	1,234	1,098	1,118	1,454	1,524
Income tax	266	276	309	367	398	346	352	464	510
Net income attributable to owners of the	551	571	692	789	836	752	766	989	1,013
parent

Depreciation & amortization	83	88	87	92	88	94	97	193	220
Operating cash flow	135	1,027	386	1,207	489	1,392	582	1,576	803
Investing cash flow	-66	-2	627	69	-23	-149	-2,680	-280	-707
Financing cash flow	-213	12	-210	3	-570	0	-449	-1	-608	32

Appendix 2

STORE's R∞ : Effect of CV information deficit

As STORE's R∞ revenue is calculated based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4.

The amount in case of retrospective adjustment is as below;

Period : From 2018Q3 to 2019Q3

Amount : Revenue 195 million JPY

(Million JPY)	FY2018		FY2019


	Q3	Q4	Q1	Q2	Q3	Q4

STORE's R∞: Revenue adjustment	7	17	32	54	83	-195
- Effect of CV information deficit

(Adjusted) FY2020 Q1 Highlights

Results overview

In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to 2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.

			(Million JPY)

		Quarterly

	Jan.-Mar.	Y/Y	Q/Q
	2020


Revenue	7,661	+21.0%	+6.4%

Operating income	1,526	+19.8%	+19.4%

EBITDA（*）	1,747	+28.1%	+18.7%

Net income attributable to	1,013	+18.1%	+18.8%
owners of the parent


Segment revenue

Marketing solution business	4,595	+1.6%	+10.0%

EC solution business	3,066	+69.4%	+1.4%

(*)EBITDA＝Operating income＋Depreciation and amortization＋Amortization of goodwill

(Adjusted) Consolidated Financial Results OverviewResults overview

In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to

2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated

based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.

		Quarterly		(Million JPY)

	Jan.-Mar.	Y/Y	Q/Q
	2020


Revenue	7,661	+21.0%	+6.4%

Cost of revenue	4,836	+13.3%	+6.4%

Gross income	2,825	+36.8%	+6.5%

SG&A expenses	1,298	+64.3%	-5.5%

Operating income	1,526	+19.8%	+19.4%

Ordinary income	1,523	+19.5%	+18.2%

Income before income taxes	1,524	+20.3%	+21.1%

Income taxes	510	+25.0%	+26.1%

Net income attributable to owners of	1,013	+18.1%	+18.8%
the parent


EBITDA（*）	1,747	+28.1%	+18.7%

（*）EBITDA＝Operating income＋Depreciation and amortization＋Amortization of goodwill

(Adjusted) Consolidated Revenue

Quarterly results

In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to

2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated

based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.

(Million JPY)

10,000
						7,661

8,000							7,200
				6,332

					6,111	6,068	6,069
6,000	4,241	4,663	4,677	4,948	5,052
4,024
3,960
4,000

2,000

FY2017

FY2018

FY2019

FY2020

(Adjusted) Consolidated Operating IncomeQuarterly results and Operating Margin

(Million JPY)		Quarterly Operating Income		Quarterly Operating Margin

1,800									1,274			1,526	30.0%

										20.1%			1,279		19.9%
											1,203
1,200					17.7%			1,154	1,184			20.0%


					827	871	926

	12.0%			747

600	483		575												10.0%
	416

0															0.0%
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4	Q1
		FY2017			FY2018				FY2019		FY2020

(Adjusted) Consolidated Ordinary Income Quarterly results and Net Income

(Million JPY)		Ordinary Income		Quarterly Net Income



2,000
															1,2751,194	1,204		1,523


1,500														1,140				1,289	1,013

														996				858
1,000													859
								765	821	697	801	790	824	853

					582								571
		491		417				431	551
500

	330

				121	126

0
	Q1		Q2	Q3		Q4	Q1	Q2	Q3		Q4	Q1		Q2	Q3	Q4		Q1

				FY2017					FY2018					FY2019			FY2020

Impairment loss on ad				Impairment loss on CRM service
network service							for general EC business owner
(Decided to close the service)			(Decided to close the service)

(Adjusted) Cost of Revenue and Cost RateQuarterly results

In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to

2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated

based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.

（百万円）		Quarterly Cost of Revenue		Cost rate

6,000													100.0%
											4,546	4,836
												80.0%
	70.1%				66.9%		4,042	4,267
					4,032	4,024
4,000
				3,311 3,380
2,821	2,731	2,940	3,072	3,128							60.0%

2,000							67.4%			63.1%	40.0%

													20.0%
0													0.0%
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
	FY2017			FY2018			FY2019		FY2020

(Adjusted) Segment Information

Overview by segment

In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to

2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated

based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.

				(Million JPY)

			Quarterly

		Jan.-Mar.	Y/Y	Q/Q
		2020


	Segment revenue	4,595	+1.6%	+10.0%
Marketing Solution
Business	Segment operating	826	+3.9%	+29.0%

	income


	Segment revenue	3,066	+69.4%	+1.4%
EC Solution
Business	Segment operating	1,021	+36.8%	-2.5%

	income

(Notes) Segment operating income is adjusted to operating income in the consolidated financial statement.

(Adjusted) Service Information

Overview by segment

In 2019Q4, the Company found the fact that it had been unable to acquire a part of conversion information from 2018Q3 to

2019Q3 due to a bug in a part of STORE's R∞ program that identifies OS information. As STORE's R∞ revenue is calculated

based on the information, unrecorded revenue of 195 million yen for the period is accounted in 2019Q4. The amount in case of retrospective adjustment is as below.

								(Million JPY)

						Quarterly

				Jan.-Mar.			Y/Y	Q/Q
				2020


Marketing	Affiliate	Revenue		4,584		+1.5%	+9.8%
Solution
marketing	Gross income		1,256		+3.7%	+7.4%
Business


		Revenue		1,570		+41.9%	-2.6%
	Storematch
EC Solution	Gross income		366		+36.1%	-6.8%


Business		Revenue		857		+25.3%	-11.7%

	STORE's R∞
	Gross income		857		+25.3%	-11.7%



							Reactionary decrease
			Good performance		after year-end sale

(Adjusted) STORE's R∞ Revenue	STORE's R∞

(Million JPY)

1,500

1,000												971
												857

								755 684	690	687
500				510	475	546	544
	219	280
163
0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1

		FY2017			FY2018			FY2019			FY2020

Disclaimer

This presentation material is intended to provide reference information as material for investors. Neither ValueCommerce nor its personnel assume any responsibility for the accuracy, appropriateness, or integrity of the information contained in this material.
This presentation is not intended to solicit investment in connection with the acquisition of ValueCommerce's securities. It does not contain all information essential to any decision on investment in ValueCommerce's securities. In the event of making an investment decision, you are advised to refer to the Company's securities reports and other statutory disclosure documents and its published materials in addition to this presentation material.
This presentation material contains financial outlooks and other statements on future results. Actual results may differ materially from those described in this material due to various factors.
For details about factors that may have an impact on ValueCommerce's financial results, please refer to "Risk Factors" on ValueCommerce's website (https://www.valuecommerce.co.jp/en/ir/risk_factors/). However, please note that the factors that have an impact on ValueCommerce's financial results are not confined to those described in "Risk Factors."

Corporate Information

Corporate name	ValueCommerce Co., Ltd.

Established	1996

Fiscal year end	December

HQ location	MINAMI AOYAMA BRIGHT SQUARE 3F
2-26-1Minami-Aoyama,Minato-ku, Tokyo 107-0062 Japan


Representative	Jin Kagawa,
Representative Director, President and CEO


Businesses	Marketing Solution Business (Affiliate marketing)
EC Solution Business (Storematch, STORE's R∞, Dynatech, B-SLASH)


Main shareholder	Z Holdings Corporation

Slogan	Building Together

Mission	To Create New Value with Information Technologies

Vision	To Be the Best Performance Marketing Company Representing Japan

Corporate website	https://www.valuecommerce.co.jp/en/ir/

Contact us	E-mail: investor_relations@valuecommerce.co.jp

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ValueCommerce Co. Ltd. published this content on 28 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2020 07:17:03 UTC

ValueCommerce Repurchases 11 Billion Worth of Shares Amid Tender Offer	Apr. 11	MT
ValueCommerce to Become an Equity Method Affiliate of LY Corp After Tender Offer	Apr. 10	MT
Tranche Update on ValueCommerce Co., Ltd.'s Equity Buyback Plan announced on March 11, 2024.	Apr. 10	CI
Tranche Update on ValueCommerce Co., Ltd.'s Equity Buyback Plan announced on March 11, 2024.	Apr. 10	CI
ValueCommerce Co., Ltd.'s Equity Buyback announced on March 11, 2024, has closed with 10,690,000 shares, representing 33.06% for ¥11,000.01 million.	Apr. 08	CI
ValueCommerce Co., Ltd.'s Equity Buyback announced on March 11, 2024 has closed with 10,690,000 shares, representing 33.06% for ¥11,000.01 million.	Apr. 08	CI
Upbond Co., Ltd. announced that it expects to receive funding from ValueCommerce Co., Ltd.	Apr. 04	CI
ValueCommerce Co., Ltd. concluded an agreement to acquire Monican and Cast Book business from 018inc.	Mar. 27	CI
ValueCommerce to Dispose of Shares Worth 17 Million Yen as Restricted Stock Compensation	Mar. 24	MT
Softbank's ValueCommerce Unit to Buy Back Shares Via Tender Offer	Mar. 12	MT
ValueCommerce to Purchase Treasury Shares and Implement Tender Offer	Mar. 11	MT
ValueCommerce Co., Ltd. authorizes a Buyback Plan.	Mar. 10	CI
ValueCommerce Co., Ltd. Announces the Resignation of Takao Nakamura as Outside Director, Audit and Supervisory Committee Member	Feb. 16	CI
ValueCommerce Co., Ltd. Provides Consolidated and Non-Consolidated Earnings Guidance for the Six Months Ending June 30, 2024 and Full Year Ending December 31, 2024	Jan. 30	CI
ValueCommerce Co., Ltd. Announces Year-End Dividend for the Year Ended December 31, 2023, Payable on March 5, 2024; Provides Second Quarter and Year-End Dividend Guidance for the Fiscal Year Ending December 31, 2024	Jan. 30	CI
ValueCommerce Co., Ltd. Provides Dividend Guidance for the Fourth Quarter of Fiscal Year 2023	23-10-27	CI
ValueCommerce Co., Ltd. Announces Dividend for the End of Second Quarter Ended June 30, 2023, Payable on August 31, 2023; Provides Dividend Guidance for the Year Ending December 31, 2023	23-07-28	CI
ValueCommerce Co., Ltd. Provides Consolidated Earnings Guidance for the Year Ending December 31, 2023	23-07-28	CI
ValueCommerce Co., Ltd. Reports Earnings Results for the First Quarter Ended March 31, 2023	23-04-27	CI
ValueCommerce Co., Ltd. Provides Dividend Forecast for the Second and Fourth Quarter of Fiscal Year 2023	23-04-27	CI
ValueCommerce Co., Ltd. Revised Consolidated and Non-Consolidated Earnings Guidance for the Six Months Ending June 30, 2023 and for the Fiscal Year Ending December 31, 2023	23-04-27	CI
ValueCommerce Co., Ltd. Provides Dividend Forecast for the Second and Fourth Quarter of Fiscal Year 2023	23-01-30	CI
ValueCommerce Co., Ltd. Provides Consolidated and Non-Consolidated Earnings Guidance for the Six Months Ending June 30, 2023 and for the Fiscal Year Ending December 31, 2023	23-01-30	CI
ValueCommerce Co., Ltd. Approves Dividend for the Fiscal Year 2022, Payable on March 9, 2023	23-01-30	CI
ValueCommerce Co., Ltd. Provides Dividend Guidance for the Fourth Quarter of Fiscal Year Ending December 31, 2022	22-10-28	CI

Duration

Period

More charts

ValueCommerce Co Ltd is a Japan-based company engaged in the development of businesses that provide effective marketing solutions from attracting customers to retaining customers in order to maximize the performance of commerce businesses. The Company operates in two business segments. The Marketing Solution segment provides solutions centered on attracting customers to electronic commerce (EC) sites of commerce businesses. The main service is performance-based advertising affiliate. The EC Solution segment provides solutions centered on sales promotion on the EC site of commerce companies. The main services are the CRM tool Stores R8 for online mall stores and the pay-per-click advertisement Store Match.

Sector

Advertising & Marketing

Calendar

2024-04-24 - Q1 2024 Earnings Release

More about the company

More financial data

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

1,050 JPY

Average target price

1,433 JPY

Spread / Average Target

+36.51%

Consensus

Estimates Revisions

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