Morningstar Japan K.K. Third Quarter Financial Results (Fiscal Year Ending March 31, 2011)

Transcription

1 Morningstar Japan K.K. Third Quarter Financial Results (Fiscal Year Ending March 31, 2011) January 25 th, 2011 Morningstar Japan K.K. < # >

2 Part 1 Consolidated Financial Performance 2 2

3 Consolidated Financial Performance (Unit: thousand yen) 3Q FY 2010 (Apr.- Dec. 2009) 3Q FY 2011 (Apr.- Dec. 2010) YoY rate (%) Sales 1,716,494 1,701, % Operating Income 275, , % Ordinary Income 357, , % Net Income 204, , % 3 3

4 Consolidated Ordinary Income and Profit Ratio (Unit: thousand yen) 410,000 Ordinary Income(left) 403, % 400,000 Ordinary Profit Ratio(right) 390, % 25.0% 380, % 370, % 360, , , % 340, , % Apr.- Dec Apr.- Dec

5 3Q FY 2011 Consolidated Sales by Segment (1) <Revenue relating to Financial information and consulting> (Unit: thousand yen) 3Q FY 2010 (Apr.- Dec. 2009) 3Q FY 2011 (Apr.- Dec. 2010) YoY rate (%) Consulting 269, , Data Solution 1,001, , * Media Solution 162, , *due to subscription revenue decline of Kabushiki Shimbun (Stock Newspaper) 5 5

6 3Q FY 2011 Consolidated Sales by Segment (2) <Revenue relating to Website Consulting(Gomez)> (Unit: thousand yen) 3Q FY 2010 (Apr.- Dec. 2009) 3Q FY 2011 (Apr.- Dec. 2010) YoY rate (%) Web Consulting 189, , Site Performance Monitoring Measurement Service* 53,359 30, SEO (Search Engine Optimization) 38,950 49, (*)Category name changed: GPN(Gomez Performance Networks)was changed into Site Performance Monitoring/Measurement Service due to business increase. 6 6

7 Part 2-1 Morningstar Japan K.K. Non-Consolidated Financial Performance 7 7

8 Morningstar Japan K.K. Non-Consolidated 3Q FY 2011 Performance (Unit: thousand yen) 3Q FY 2010 (Apr.- Dec. 2009) 3Q FY 2011 (Apr.- Dec. 2010) YoY rate (%) Sales 1,381,280 1,347, % Operating Income 240, , % Ordinary Income 320, , % Net Income 189, , % 8 8

9 Non-Consolidated Ordinary Income and Profit Ratio (Unit: thousand yen) 370, ,000 Ordinary Income(left) Ordinary Profit Ratio(right) 359, % 350, % 30.0% 340, % 25.0% 330, , , % 310, % 300, ,000 Apr.- Dec Apr.- Dec % 9 9

10 Non-Consolidated Sales Breakdown Fund data / Report (Data Solution) Newspaper subscription (Data Solution) 3Q FY 2010 (Apr.- Dec. 2009) 364, ,890 3Q FY 2011 (Apr.- Dec. 2010) 371, ,403 (Unit: thousand yen) YoY rate (%) 2.0% 12.6% Equity data delivery (Data Solution) 321, , % Website advertisement (Media Solution) 105, , % Investment seminar (Consulting) 104, , % Newspaper advertisement (Media Solution) 56,527 57, % 401K consulting (Consulting) 32,665 30, % IR seminar (Consulting) 28,864 24, % Total *other small amount sales are abbreviated. 1,381,280 1,347, % 10 10

11 Cost Reduction Effect of Kabushiki Shimbun (Stock Newspaper) Business (Unit: million yen) Sales & administrative expense of Kabushiki Shimbun after M&A Apr M&A Oct Apr Oct Apr Oct. 20 Mar Sep Mar Sep Mar

12 Part 2-2 Morningstar Asset Management Co., Ltd. Non-Consolidated Financial Performance 12 12

13 Non-Consolidated Sales and Ordinary Income Growth of Fund WRAP AUM contributes revenue increase Sales Ordinary Income & profit ratio (unit: thousand yen) 120,000 1, ,000 80,000 60, ,576 (1.1%) (unit: thousand yen) Fund of Funds WRAP401(k) consulting 29,806 (29.6%) 10.7% UP 111,354 54,280 (48.7%) 2,270 (2.0%) 50,000 40,000 30,000 Ordinary 31.7% 31,877 Income(left) Ordinary Profit Ratio(right) 31.8% UP 42, % 40.0% 35.0% 30.0% 25.0% 20.0% 40,000 20,000 69,699 (69.3%) 54,803 (49.2%) 20,000 10, % 10.0% 5.0% - Apr.- Dec Apr.- Dec Apr.- Dec Apr.- Dec % 13 13

14 AUM, Asset Under Management, of Morningstar Asset Management Co., Ltd. (Unit: million yen) 180, , ,993 Fund WRAP Fund of Funds 150,000 23, ,000 47,586 Fund WRAP The number of contracts :2 (as of the end of Dec. 2010) 90,000 60,000 30, ,274 98,407 Fund of Funds The number of contracts :7 (as of the end of Dec. 2010) 0 the end of Dec the end of Dec

15 Part 2-3 Gomez Consulting Co., Ltd. Non-Consolidated Financial Performance 15 15

16 Performance of Gomez Consulting Co., Ltd. (Unit: thousand yen) 3Q FY 2010 (Apr. - Dec. 2009) 3Q FY 2011 (Apr. - Dec. 2010) YoY rate (%) Sales 282, , % Operating Income 2,927 1, % Ordinary Income 19,214 18, % Net Income 17,213 12, % 16 16

17 Part 3 Our Activities of 3rd Quarter 17 17

18 SmartPhone Application Equity / Fund Data Delivery Jan. 18, 2011 iphone:35,247 Android :10,350 Total :45,597 Fund The number of download:40,497 (as of the end of Dec.2010) iphone App The number of download 32,654 DL Android App The number of download 7,843 DL Launched on Sept. 7th, 2010 Launched on Oct. 19th, 2010 News Stock ETF Twitter 18 18

19 Supporting Financial Institutions, Funds Sales using ipad Partnering with SOFTBANK TELECOM Corp. Already three local banks placed an order in one month from its launch Develop& provide ipad application -Contents- Fund Data News Analyze Report etc Provide device (ipad), sales network, and infrastructure development Distributor presentation Individual Investor As a brochure at bank, broker lounge 19 19

20 Launching Brand-new Fund Service and Fund Detail Pages Add the following information Add the following information Dividend dividend (time series :max 60 terms), dividend yield, available cash for dividend Return investor return, net asset inflow / outflow Risk maximum drawdown Cost turnover Portfolio country / region, credit rating, duration 20 20

21 Funds 50 Report selected 50 funds by fund analysts 21 21

22 Web Page Viewer Increase (unit: 1000PV) 11.9% UP 114, , ,641 50,000 0 Apr.-Dec Apr.-Dec

23 The number of free registered users 29.0% up in a year (from the end of Dec to the end of Dec ) *Free registration users are potential fee-paying customers. 70,000 65,000 64,890 as of the end of Dec ,000 55,000 50,000 45,000 40,000 <Morningstar Club Menue> -Morningstar Portfolio -Column; Analyst s eye (Fund Stock Currency) Jan. 20, ,078 35,000 30, Apr. 年 4 月 2009 Oct. 09 年 月 Apr. 10 年 月 10 Oct. 年 2010 月 23 23

24 Twitter; contribute to improve our media value The number of followers of Morningstar Official Twitter 15,344 < 掲載例 > < リプライ &RT> Started on Aug. 24th, 2009 The number of followers of COO Asakura s Official Twitter Total followers 22,027 (as of Jan. 20, 2011) 6,683 < ツイート > < リプライ &RT> Started on Jan. 5th,

25 Investment Seminar [Strength of Morningstar] Media Value High level of customer satisfaction Dec.13 th, 2010 Index Fund Seminar attendee Video&archive article views attendee survey 302 people 17,222 (as of Jan.16, 2011) (video:8,970 Archive article:8,252) 226 people (collection rate 75%) Part1: Keynote Lecture Part2: Panel Discussion Feedbacks from attendees Best seminar I have ever attended. easy-to-understand lecture clear and sharp discussion advantages and disadvantages are both explained, reliable information 25 25

26 Corporate IR support using Interview Video Differentiate from traditional IR support company. Provide information not only on financial performance, but also CSR activities, corporate mission, president s aim and dreams Upload Views in three months 2, , , Canon Marketing Japan Inc. Planex Holding Inc. MediciNova Inc. Hajime Construction Co.,Ltd VIC TOKAI Corporation Tokyu Livable Inc. Video IR seminar 26 26

27 Interview Video: The Number of Clients (the number of companies) Apr.-Dec. 年 月 ~12 月 2010 Apr.-Dec. 年 月 ~12 月 27 27

28 Fund Data / Report Service Sales and the number of clients Securities Bank Sales (unit:thousand yen) 252, , , , , ,000 52,000 Sales (unit:thousand yen) 50,386 60,000 45,831 50,000 40,000 30,000 20,000 10,000 2,000 Apr.-Dec Apr.-Dec Apr.-Dec Apr.-Dec The Number of clients 20 The Number of clients Apr.-Dec.2009 Apr.-Dec Apr.-Dec Apr.-Dec

29 Assigned as an analyst report provider by JASDAQ* providing analyst report for new JASDAQ market (Japanese brand-new emerging company stock exchange) Already received orders from 19 companies < framework of analyst report platform> Reporting/Checking Interview report order Fee based / free Apply Request analyst Institutional Investor Distributor Individual Investor Listed company OSE Issue List on website Submit investor investor *the second biggest exchange in Japan 29 29

30 Part 4 Business Road Map 30 30

31 (1)Fee Based Premium Service 1)Premium Contents 2)Analysis Report Analyst s eye Funds 50 Op-ed column ( Foresight ) Domestic Stock Report Information on emerging countries International Stock Report Launching in May 2011 <Contents> 3)Database Fund Premium Data Comparative Analysis Data of both Domestic and International Stock 4)Portfolio&Management Tool Portfolio management tool of fund, stock (Domestic & International), and ETF Simulation tool <Device> Website SmartPhone (iphone, Android) ipad 31 31

32 Analyst s eye(domestic Stoc Popular contents among individual 32 32

33 Premium Contents (Op-ed Column; Foresight and Information on Emerging Countries) <Op-ed Column: Foresight> <Information on Emerging Countries> 33 33

34 Research Report of Domestic and International Stock <Domestic Stock> <US Stock> 34 34

35 Comparative Analysis Data of both Domestic and International Stock Strength of Morningstar global network in 24 countries 35 35

36 (2)Digitalization of Kabushiki Shimbun (Markets Newspaper) Launching ipad application in March 2011, following the launch of Website service. Newspaper Website + monthly fee 3,800 + ipad monthly fee 1,200 (tentative) 36 36

37 (3)Further Sophisticated and Expanded Data Service for Financial Industry While meeting existing customers' needs, it can also attract potential customers with improved data through various electronic device (website, mobile phone, ipad etc) Securities, Bank, Asset Management Firm 37 37

38 (4)Promoting 401(k) plan consulting service Asset Management Firm Members:3.60 million people The number of companies: 13,682 Servicing Institutions Members:118,000 people 401k consulting service guidebook seminar advice, consulting e-learning Company 401k Companies (employers) Individual 401k Members (employees) Members source:ministry of Health, Labour and Welfare(as of the end of Oct., 2010) 38 38

39 (5)Promoting Investment Advisory Service Business Meet the increasing demand from Japanese 401(k) and ISA Hedge Fund International Bond Fund International Stock Fund Commodity Fund Domestic Stock Fund Domestic Bond Fund Emerging Countries Stock Fund Emerging Countries Bond Fund Morningstar Asset Management Co., Ltd. Investment Advisory asset allocations fund selection regular rebalancing FOFs Fund WRAP 401K Japanese ISA Distributors Individual Investors 39 39

40 (6)Gomez Consulting Co., Ltd. Enforcement Roadmap 1Total Consulting Value-added consulting based on in-depth knowledge and experience, both business and sales process. 2Website integration // supervision service Cross Selling / Up Selling Emphasize quality and cost competitive. 3Website module distribution Advise and provide most appropriate web module for client. 4Website Access analysis service Understand clients situation and need by consulting on a long-term basis. 5Performance reporting service, GPN Report Propose consulting and supervision on a long-term relationship, and consequently receive continuous orders