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MEDIA DO Co., Ltd.
Financial Results Briefing
FY2020 (Ended February 2021)
証Securities券コードcode::3678367
INDEX
- Consolidated earnings highlights
- Future growth plans
(1) eBook distribution business -Invent future eBook markets
-Media Do's NFTinitiatives
(2) eBook distribution business
-Stimulate the growth of eBook markets
- Other businesses
- FY2020 initiatives
3. Reference data
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 1 |
Earnings Results
1. Consolidated earnings highlights
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 2 |
Consolidated earnings highlights (1)
All-time record net sales and profits by virtue of eBook demand growth driven by stay-at-home consumption
Consolidated | ¥83.5bn | (+27% YoY) | ||
Net sales | ||||
Operating profit | ¥2,660mn | (+44% YoY) | ||
EBITDA | ¥3,420mn (+29% YoY) | |||
Profit attributable to | ¥1,510mn | (+72% YoY) | ||
owners of parent | ||||
Of which, eBook distribution business | ¥82.3bn (+28% YoY) | |||
Net sales | ||||
Operating profit | ¥2,590mn (+39% YoY) |
Sales ratio
98.6%
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 3 |
Consolidated earnings highlights (2)
All-time record 4Q consolidated net sales
and EBITDA again
Quarterly consolidated | +20% YoY | ||
net sales | |||
24,000 | (Millions of yen) | ||
Quarterly consolidated | +5.4% YoY | ||
EBITDA | |||
1,000 | (Millions of yen) | ||
22,000 | 21,533 |
20,000 | Net sales growth rate slowed relative to |
900
We stepped up investment in 3-4Q as
1-3Q due to pirate sites' increased impact | ||||
18,000 | ||||
16,000 | ||||
14,000 | ||||
12,000 | ||||
10,000 | ||||
8,000 | ||||
6,000 | ||||
4,000 | ||||
2,000 | ||||
0 | ||||
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q | ||||
FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
800 explained at 2Q earnings briefing
23
700
600
500
400
300
200
100
0
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q
FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
Note: FY2016 data are Media Do's nonconsolidated net sales and EBITDA. | 4 |
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | |
Consolidated earnings highlights (3)
Net sales and profits were both a bit shy of upwardly revised forecasts, weighed down by pirate sites' impact
¥85.0bn | ¥83.5bn | Attainment rate* | |||||
Revised | -1.8% | ||||||
upward | ¥3,550mn ¥3,420mn | Net sales | |||||
Revised | -3.7% | ||||||
upward | 98.3% | ||||||
¥77.0bn | (108.5% of initial net sales forecast) | ||||||
¥3,000mn | EBITDA | ||||||
Initial | Revised | Actual | Initial | Revised | Actual | 96.4% | |
forecast | forecast | forecast | forecast | ||||
Net sales | EBITDA | (114.1% of initial net sales forecast) | |||||
* Initial and revised forecasts are forecasts disclosed on April 14 and October 13, 2020, respectively. | |||||||
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 5 | ||||||
Consolidated earnings highlights (4)
FY2020 year-end DPS
¥21.00
Note: Pending Board approval scheduled for April 22, 2021
In FY2021, we plan to return to shareholders at least 20% of profit attributable to owners of parent through dividends and share buybacks, with the split between the two to be determined based largely on our share price
Note: Total return ratio = (total dividends paid + total share repurchases)
- profit attributable to owners of parent
Total return ratio
21.1% 21.1% 32.2% NA* 20.1% 20.1%
Dividends and/or share buybacks equivalent to
total return ratio of at least 20% ¥21.0
Ongoing stable dividends
¥13.0
¥10.5 ¥10.5 ¥2.5
¥8.8
¥7.2
¥10.5
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 actual actual actual actual actual planned planned
*FY2018 total return ratio was omitted because a loss attributable to owners of parent was incurred in FY2018
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 6 |
Review of current medium-term management plan (MTP) (1)
Net sales surpassed MTP's target; EBITDA was
roughly in line with target
Consolidated | ¥83.5bn | ¥90.0bn | ||
net sales | ¥80.0bn | |||
¥77.0bn | ||||
¥65.8bn ¥63.0bn | Net sales | |||
¥50.5bn | were well | |||
above target | ||||
・・・ | ||||
FY2018 | FY2019 | FY2020 | FY2021 | FY2022 |
MTP's 1st year | 2nd year | 3rd year | 4th year | 5th year |
Consolidated EBITDA | ¥6,000mn | |||
¥6,000mn | ||||
EBITDA nearly hit | ||||
initial target | ||||
¥3,420mn | ||||
¥3,500mn | ||||
¥3,000mn | ・・・ | |||
¥2,380mn¥2,600mn | ||||
. | ||||
FY2018 | FY2019 | FY2020 | FY2021 | FY2022 |
MTP's 1st year | 2nd year | 3rd year | 4th year | 5th year |
Actual Initial target (July 2018) Revised target (Apr. 2020) Actual Initial target (July 2018) Revised target (Apr. 2020)
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 7 |
Review of current medium-term management plan (MTP) (2)
PMIand structural reforms completed
PMIof 2017 acquiree DPIJ completed
(1) Management integration | (2) Operational integration | (3) Mindset synchronization | ||||
MEDIA DO HOLDINGS/Media Do | Integrated eBook distribution | Established mission, vision, values & | ||||
merger | operations (dominant domestic | credo | ||||
Appointed 10-CxO management | market share) | Integrated/implemented other (e.g., | ||||
team | Completed IT system integration | HR) systems | ||||
Structural reforms
(4) Cost reduction | (5) Improvement in financial condition |
Farmed out operations to Media Do Tech Tokushima
Reduced infrastructure costs by integrating Media Do and DPIJ's IT systems
Improved financial condition and raised capital for M&A through share acquisition rights offering Formed capital/operational alliance with Tohan Corporation (private-placement capital raise)
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 8 |
Review of current medium-term management plan (MTP) (3)
Improved financial soundness through capital raise
Increase in shareholders' equity | Stabilization of financial balance | ||||||
(ratio) | Cash and | Net assets | |||||
Shareholders' equity | Shareholders' equity ratio (SER) | ||||||
deposits | Announced on March 25 | ||||||
20,000 | 28.0% | 30.0% | Private-placement offering to Tohan | ||||
+9.7pp | and buyback/retirement of share | ||||||
25.0% | +¥3,249mn | acquisition rights | ¥2,927 | ||||
16,000 | mn | ||||||
18.3% | ¥12,104mn | 20.0% | +¥5,189 | ||||
12,000 | |||||||
8,000 | 15.0% | ¥12,703 | mn | ¥12,169 | |||
¥6,975mn | |||||||
10.0% | ¥9,454 | mn | mn | ||||
4,000 | 5.0% | mn | ¥6,980 | ||||
mn | |||||||
0 | 0.0% |
As of Aug. | As of Feb. 28, | As of Aug. | As of Feb. 28, | As of Aug. | As of Feb. 28, |
31, 2020 | 2021 | 31, 2020 | 2021 | 31, 2020 | 2021 |
(18th share acquisition rights issue + private-placement offering to Tohan)
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Business Strategy
2. Future growth plans
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 10 |
Future growth plans
eBook | Invent future | Stimulate the |
distribution | eBook | growth of eBook |
business | markets | markets |
Other
businesses
Proactive investment for
business expansion
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 11 |
eBook distribution business
Invent future eBook
markets
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 12 |
Invent future eBook markets (1)
The world Media Do aims to bring about
with blockchain technology
Existing digital content services
- central server platforms
Music/books/visual media, etc.
New content service envisioned by
Media Do
- blockchain platform
Music/books/visual media
1 | Content sales | 2 | 3 |
Subscription | Advertising | ||
model | |||
model | model |
4
Asset model
DCA
(no restrictions) |
Spotify, Kindle, YouTube, Netflix, etc.
Digital Content Asset
(Trademarked by MEDIA DO)
Digital content with a concept of
"units" and premiumization potential
→Leveraging technology to maximize content value
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 13 |
Invent future eBook markets (2)
The advent of NFTs (digital content with a concept of "units") has
ushered in a new era of digital content
Cryptocurrencies | NFT (non-fungible tokens) | ||||
Technology | Decentralized system | Decentralized system | |||
(Public chain) | (Public chain) | ||||
Fungibility | Fungible | Non-fungible | |||
(1 BTC has the same value no matter | (Digital certificates of ownership with | ||||
who owns it) | unique serial numbers; no two are the | ||||
same) | |||||
Examples | Cryptocurrencies | Collectibles | |||
(Bitcoin, Ethereum, | (Digital collectibles: NBA Top Shot, | ||||
Ripple, etc.) | CryptoKitties, etc.) | ||||
→"Ownership" concept | |||||
Existing digital content
Centralized system
Fungible
(All copies of the same content are identical no matter who owns them)
Publicly distributed eBooks,
music, visual media
(Kindle, YouTube, Spotify, etc.)
→NBA Top Shot* has racked up over 3mn trades collectively worth over $500mnsince its launch in 4Q20
Source: Dapper Labs ' website(https://www.dapperlabs.com/)
* A marketplace where US National Basketball Association fans can collect and trade photos of NBA players and video clips of plays as digital cards
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Invent future eBook markets (3)
NFT (Non-Fungible Token)
Enabling users to digitally experience the fun of collecting to
Elevate, expand and visibilize content fandom
As a first step, we are partnering with Tohan, a major
paper book wholesaler,
to build a platform that taps into Tohan's domestic network of book retailers
to connect fans with each other in real life
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 15 |
Invent future eBook markets (4)
Media Do will promote DX among paper book
retailers/distribution channels as Tohan's
biggest shareholder
Tohan commands an over one-third share of | ||
We aim to drive market growth and DX throughout | domestic paper book distribution as a bridge | |
the publishing industry as a major eBook | between 3,000 publishers and 5,000 book retailers. | |
distributor and publishing platform linking 2,200 | It is pursuing demand-driven distribution to | |
domestic publishers to 150 eBook retailers | structurally reform publishing distribution by, e.g., | |
reducing return rates. | ||
Media Do is now Tohan's top shareholder (5.56% stake)
Private-placement offering of | |
Media Do stock | Tohan is now a top-10 shareholder |
Acquisition of Tohan treasury stock | of Media Do (3.09% stake)* |
*Based on issued share count at Feb. 28, 2021 |
Building a new publishing ecosystem of creation and distribution
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Invent future eBook markets (5)
Aiming to revitalize Japan's book retailers by distributing
books digitally tokenized with NFTs through Tohan
Japan's bricks-and-mortar
book retailers | Paper book readers = real fans who shop | |||
Limited-edition digital token at book retailers to get NFTs | ||||
(applicable to other content | ||||
(e.g., music, video) also) | ||||
Publishers | NFT |
Paper/digital books sold at bookstores
Direct-to-fan marketing
Offering NFTs as a bonus to book purchasers should boost book retailers' sales
Currently in talks with Kadokawa, Kodansha, Shueisha and Shogakukan about rolling out NFTs
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 17 |
Invent future eBook markets (6)
We plan to create an NFT marketplace together with publishers, Tohan and nationwide book retailers
Media Do NFT marketplace
Exhibit | Buy | |
NFT | NFT |
Owners of limited-edition NFTs
Users will be able to explore and trade NFT content with each other Marketplace will elevate, expand and visibilize content fandom
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 18 |
Invent future eBook markets (7)
We will use blockchain technology to realize
a digital content collecting service that brings the concept of ownership to digital content
Sales promotion
Entertainment content sold digitally and physically will be tokenized with, e.g., digital movie ticket stubs or stickers
NFTNFT
Sales
For-sale collectibles such as trading cards and action figures will be sold as NFT content
NFT
NFT
We will stimulate growth in sales of both physical and digital entertainment content
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Invent future eBook markets (8)
NFT marketplace slated to launch
this year
Media Do NFT marketplace
(Technology to be developed by summer; service to launch by year-end)
NFTs will be globally tradable (in, e.g., JPY, USD)
Digital token sales and transaction histories will be rendered visible (enabling to authors and publishers to collect royalties on resales)
We are also currently exploring other business models besides
digital tokens
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Invent future eBook markets (9)
Major record labels and publishers have started to collaborate since alpha version was released to business associates in March
On track to launch publicly in November 2021
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Invent future eBook markets (10)
Pursuing distribution models that extract new
value from legacy video content libraries
Content library
Artists/copyright holders
(1) Online co-watching
Audience members can enjoy music and (e.g., anime) videos online together with fellow fans
Co-watching event | |||||
Video content/sales | Organizer | ||||
Video content | Artists | Influencers | Avid fans | ||
Sales | × | ||||
Avid fans | Followers | New fans | |||
Audience | |||||
Ticket | |||||
purchases | |||||
(2) New monetization model | (3) Use of fan marketing | ||||
Avid fans will unleash new value from | Perpetual tracking and analysis of users' content | ||||
legacy content, generating incremental | consumption histories will support marketing | ||||
revenue | activities |
GREET aims to bring artists, organizers and audiences together in shared experiences
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eBook distribution business
Stimulate the growth of
eBook markets
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Stimulate the growth of eBook markets (1)
Domestic publishing market has resumed growing, driven by eBook sales growth
Domestic publishing market (2008)
¥2,059.5bn
US: 97.8% of 2008 level |
Germany: 96.6% of 2008 level |
Domestic publishing market shrank 42% from ¥2,650bn
in 1996 to ¥1,540bn in 2018
Domestic publishing market (2020)
¥1,616.8bn
eMagazines ¥11.0bn eBooks ¥40.1bn eComics ¥342.0bn
Paper magazines ¥557.6bn (1996: ¥1,093.1bn)
Paper books ¥666.1bn (1996: ¥1,563.3bn)
2008200 年 20102010年 20122012年 2014201 年 2016201 年 20182 年 202020 年
Source: All-Japan Magazine and Book Publishers and Editors Association (AJPEA)
Publishing market has stopped shrinking and started to recover in wake of eBook market growth
We aim to spur further market growth
by driving publishing industry DX
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Stimulate the growth of eBook markets (2)
We acquired US-based Firebrand Group* to pursue overseas expansion and publishing industry DX
*Two companies wholly acquired by San Diego-based US subsidiary Media Do International, Inc.
Firebrand Group
Quality Solutions, Inc. | NetGalley, LLC |
Firebrand business | NetGalley business |
- CEO Fran Toolan founded Quality Solutions, Inc., in 1987
- Quality Solutions and NetGalley are both located in Massachusetts
- The group has 68 employees (Quality Solutions: 45; NetGalley: 23)
- 2020 estimated sales and adjusted pretax profit were ¥1,270mn and ¥150mn, respectively (at ¥110/$1)
Objectives of acquisition
To gain access to Firebrand's US/European | To incorporate leading-edgeIP/know-how from the |
publishing industry network as a stepping stone to | Western publishing industry, the global DX leader, |
global expansion | into services in Japan/Asia |
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Stimulate the growth of eBook markets (3)
Firebrand is US's top ranked publishing
ERP SaaS in by market share
Firebrand business
Comprises bibliographic metadata-centric publishing ERP, content distribution and eBook distribution services
- Top-rankedpublishing ERP SaaS by market share. Used by over 100 publishers, including 2 US majors (available in North America and Europe (UK, Germany, etc.))
- Annual churn rate: 0% (essential service for publishers)
35% US | 50% US | |
mkt share | mkt share | |
Publishers | Integrated | partners |
promotion, authors, | ||
management of data | Sends data customized | |
on titles, sales | to individual trading | |
trading partners, | ||
production, sales, etc. | ||
Amazon
Barnes & Noble
Ingram and other
wholesalers
Libraries
Book review services
Apple, Kobo, etc.
Other trading partners
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp
Monitors market data and | |
reports to publishers | 26 |
Stimulate the growth of eBook markets (4)
NetGalley is a marketing service that provides
digital access to prepublication galleys
NetGalley business
Readership cultivation tool that promotes book sales through the review of yet-to-be-published books by influencers
- Marketed to publishers as world's first service that provides prepublication galleys (including proofs and audiobooks) to professional readers (available in North America, Europe (UK, Germany, France, etc.) and Japan)
- Annual churn rate: 3%
Authors/publishers | Galleys |
Customers include over
500 publishers,
including all 5 US majors
Requests to | 40,000 |
reviews/month | |
read |
Promotes demand
from bookstores
and libraries
800,000
Booksellers, libr and other i
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 27 |
Stimulate the growth of eBook markets (5)
Ready to drive publishing industry DX with ERP SaaS system for managing revenue/royalties
Kowa Computer
Developer with vast
No. 1 eBook distributer experience, mainly in systems for paper book industry
Jointly developing inexpensive and efficient
browser-based publishing ERP SaaS
System overview
eBook sales | eBook royalty | |
management | management |
Payment management/report
generation (paper books + eBooks)
System accesses paper-book royalty data from publishers' existing systems
July 2020 | Sep. 2020 | Mar. 2021 | Nov. 2021 |
Done | Done | |
Specification | Implementation/ | Trial run |
setting, | configuration/ | |
environment/co | testing | |
nfiguration | ||
design |
Process completed through testing phase; now in final trial-run phase
Scheduled to go live in November 2021, including further upgrades of essential features
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 28 |
Stimulate the growth of eBook markets (6)
Strongly supporting publishing industry DX in collaboration with Firebrand and Tohan
Paper
Publishers books
eBooks
Publishing
ERP
Bibliographic DB
Bibliographic
data
- Development of ERP for SME publishers, using Firebrand's know-how
- eBook sales at bricks-and-mortar book retailers
- Demand-drivendistribution using NetGalley
Offline book retailers
Online book retailers
Libraries
(eLibraries)
eBook retailers
• Pro otion of eLibrary adoption, using Tohan's nationwide sales force (16 branches/sales offices) and network of leading book retailers with a track record of supplying libraries
-copy and digital
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 29 |
Stimulate the growth of eBook markets (7)
Reaping cost savings and developing new features after completing migration to cloud-baseddistributing system
Old
on-premises
system
MEDIA DO
Co., Ltd.
Digital Publishing
Initiatives Japan
Co., Ltd.
Cloud-based distributing system
Phase 1 | Phase 2 | |
Reduce costs through system integration | Upgrade UX by adding new features | |
Migration completed in June 2020 Old system to be completely phased out by March 2021
Merged
30
Stimulate the growth of eBook markets (8)
Now developing next-generation system to
drive DX among publishers
Next-generation publishing DX system
Phase 3 | Phase 4 | ||
Configure system with the aim of internal DX | Integrate with publishing ERP | ||
Progressively replace existing systems |
Cloud-based
wholesaling system
Flexibly adapt to new business models and content that emerges in future
Further improve operating efficiency through automation
Deploy system as core database for eBook industry
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 31 |
Stimulate the growth of eBook markets (9)
In FY2021, we plan to lay groundwork for Nagisa's growth by generating synergies
Cumulative 40mn DLs to date
App development | Promotional/sysop | |
capabilities | capabilities | |
Popular manga service, one of the biggest in Japan, offering free access to over 1,000 manga titles everyday (formerly named Manga Zero)
Site redesigned in March 2021
・UI/UX upgraded
・Launched comic book sales through linkage with Media Do's system
FY2021 initiatives
Added more features to app
・New promotional features (e.g., free-trial version) ・WEBTOON (vertical scrolling) compatibility
・Pre-ordering, manga publication calendar, etc.
Stepped up marketing
・Aggressive, optimal advertising to scale up
Major synergies from joining MD Group Expansion of content
・Greater access to content from major publishers (both serialized and book format)
Deployment of content
・Promotional campaigns involving major publishers' titles
Usership growth | Increased LTV |
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Other businesses
Proactive investment for business expansion
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Imprint business (1)
New wholly owned subsidiary Nihonbungeisha's
forte is male-oriented digital manga
Manga content production
Founded in Jan 1959; 72 employees (including 34 editorial staff)
FY2018-20 operating performance (¥mn)
5,000
4,000
Net sales Operating profit
4,061 3,888
Net sales are in downtrend but profits are growing in wake of
500
structural reforms and migration
to digital (40% of sales)
3,520 400
Main magazine is Shukan Manga Goraku, a male-oriented weekly dating back to 1964
Owns vast content library, including hit eBooks Gift ± and Monkey Peak in addition to Minami no Teio, a long-running series spanning more than 1,400 installments
3,000
2,000
1,000
0
-1,000
300
190 200
100
- 0
-37
FY2018 | FY2019 | FY2020 | -100 |
actual | actual | estimate | |
1 | 2 | 3 |
WEBTOON
Publishing management
Following a string of annual losses, Nihonbungeisha regained profitability in FY2019 by virtue of improved inventory management and a shift to demand-driven distribution
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Imprint business (2)
Laying foundation for imprint business by strengthening publishing functions
Imprint business's strengths
Publishing functions
1. | Marketing | IP/customer/market analyses, etc. |
2. | System development | Inventory/production/sales management |
3. | Back-office | HR/accounting/administrative/legal, etc. |
Imprint | Imprint | Imprint | |||||||
- We will achieve organizational efficiency through separation of publishing and editorial functions and realize a distinctive lineup (Publishing-on-demand can limit inventory risk)
- We will strengthen marketing and content production by sharing marketing data and know-how
Demand-driven
content creation and
digital distribution solutions…
…that leverage our overwhelming
informational and volume-wise advantages
in eBook distribution
Imprint model maximizes value of SME publishers' IP
In publishing, an imprint is analogous to a brand name of record label. Amazon, for example, has 16 imprints (as of Apr. 2021), including Thomas & Mercer (mystery), Montlake Romance, and AmazonEncore (re-publication of out-of-print titles).
publishing market
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Media/other businesses (1)
Aiming to build MyAnimeList into manga/anime
marketing platform with global reach
Media operations
Globally top-tier anime/manga
community site
270mn monthly page views
Users in over 230 countries/regions
FY2020
initiatives
iOS/Android app released at last
MyAnimeList has gained a channel to embed itself into daily lives (habits) of smartphone-using demographic and will accelerate acquisition of new/lite users
MAU: 18mn
Private-placement offering
MyAnimeList recently raised capital in the aim of expanding as an effective IP sales and marketing platform.
Media Do, Kodansha, Shueisha and Shogakukan purchased ¥600mn of the equity issued
Total raised:
Do major upgrade of community features, add more features to official app
FY2021 plans Plan and release content in collaboration with content owners, etc., most notably the new shareholders
Effective IP sales/marketing platform that captures the interest of and demand from overseas fans of Japanese anime/manga
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 36 |
Media/other businesses (2)
Non-core businesses are growing briskly,
riding the society-wide DX trend
Media operations | Graphic production support | |
eComic graphic and comic production support service
Business book summary service
FY2020
initiatives
Expansion of services/features
Launch original content from luminaries, online book clubs, "flier book labo" learning community and add learning- focused social media functionality
B2B expansion | Growth initiatives | |
Strong interest in "flier" from | (1) | Capture on growing production demand (e.g., vertical scrolling |
major life insurers and other | pages) in addition to existing coloring and graphic production | |
financial institutions, including | support operations | |
megabanks; cumulative corporate | (2) | Establish stably profitable business model |
subscribers now exceed 200 | ||
companies in wake of growth in | ||
large contracts |
- Flier is set to expand further after raising ¥200mn from private placement offering to Mynavi Corporation, etc.
- Branch into production of new digital content, including vertical scrolling and motion manga
FY2021 plans • In 2020, Flier further strengthened its BtoB business, | • Relocate to larger office space and hire more |
ending the year with over 750,000 subscribers. It aims to | employees to capture growing demand |
have 1.2mn subscribers by 2022. | 37 |
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | |
(4) FY2021 initiatives
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 38 |
FY2021 initiatives (1)
New MTP's unveiling postponed in response to recent drastic changes in environment
External changes
Structural
reforms
Recent
changes
Growing need for publishing | Emergence of new | |||
industry to embrace society- | blockchain-enabled content | |||
wide DX trend | modality (NFTs) | |||
Completion of Media | Improved financial condition | |||
due to capital raise and cost | ||||
Do/DPIJ PMI | savings from, e.g., system | |||
integration | ||||
Capital/operational alliance | Increased impact from pirate | |||
with Tohan | ||||
sites, intensification of | ||||
(use of NFTs at book retailers nationwide) | ||||
competition | ||||
Nihonbungeisha acquisition | ||||
Existing MTP
needed updating
New MTP's launch
postponed
Timing of new MTP's release will be announced once determined
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 39 |
FY2021 initiatives (2)
Invent future | ||||||
Priorities | eBook markets | |||||
Stimulate the | ||||||
growth of | ||||||
eBook markets | ||||||
Invest for business | ||||||
expansion | ||||||
Launch Media Do NFT Marketplace and limited-edition digital tokens salable at Tohan-affiliated bookstores by year-end 2021
Release alpha version of GREET co-watching service, our first blockchain business, in March and beta version in November
Sequentially develop and release other blockchain products
Proceed with PMI of Firebrand Group, develop publishing ERP and help drive publishing industry DX based on alliance with Tohan
Realize cost savings by migrating to cloud-based distributing system and develop next-generation system to drive DX among SME publishers
Proceed with PMI of Nagisa, allocate advertising spend to ZeroComi manga app and grow service by beefing up content
Proceed with PMI of Nihonbungeisha, build imprint business
Invest in operational expansion of Flier, ARTRA ENTERTAINMENT, etc.
Good opportunity to invest in business expansion despite
intensification of competition and slowdown in sales growth due
to stronger headwinds from pirate sites
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 40 |
FY2021 initiatives (3)
Top-line growth driven by M&A and eBook market growth; downtick in profits due to investments in growth opportunities
Consolidated earnings
FY2020 actual | FY2021 planned | Planned YoY increase | |||
¥83.5bn | *1 | +¥16.5bn (+19.7 | ) | ||
Net sales | ¥100.0bn | ||||
% | |||||
¥2,660mn | *2 | +¥340mn (+12.6 | ) | ||
Operating profit | ¥3,000mn | ||||
% | |||||
¥2,720mn | *3 | +¥100mn (+3.7 | ) | ||
Ordinary income | ¥2,820mn | ||||
% | |||||
Profit attributable to | ¥1,510mn | ¥1,600mn | +¥90mn (+5.3%) | ||
owners of parent | |||||
EBITDA | ¥3,420mn | ¥4,000mn | +¥580mn (+16.8 | ) | |
% |
*1. Does not include revenue from NFT marketplace.
*2. Planned YoY increase before goodwill amortization is approx. ¥200mn.
*3. Includes investment income recognized as non-operating income in FY2020 and an equity-method investment loss in conjunction with MyAnimeList's deconsolidation in FY2021 (scheduled in May 2021).
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 41 |
FY2021 initiatives (4)
Expediting publishing industry DXand realization of DCAs in response to drastic external changes
Consolidated EBITDA
+¥1,710mn in total | |||||
¥5,130mn | |||||
Growth due to | SysDev | ¥4,000 | |||
Realized cost | M&A | ||||
+¥220mn | investment | mn | |||
savings | -¥350mn Nagisa | ||||
+¥300mn | investment | Blockchain | Investments in | ||
¥3,420mn | -¥350mn investments | subsidiaries | Other | ||
Gross profit | -¥210mn | -¥140mn | -¥80mn | ||
growth | Investments in expansion opportunities | ||||
+¥1,190mn | |||||
¥1,130mn |
FY2020 | FY2020E EBITDA assuming | FY2021 |
target | ||
short-term profits prioritized | ||
and no investments | 42 |
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | |
FY2021 initiatives (5)
Pursuing growth by adding both economic
and societal value
Medium-term
strategies
Publishing DX
Bring DCAs to
fruition
Create new
services
Priorities
Environment
- Reduce CO2 emissions
Corporate philosophy
- Fair use and distribution of written works
- Build and strengthen infrastructure that stakeholders can use with confidence
- Contribute to local communities and rebalancing of Japanese economy away from Tokyo
HR diversity & empowerment
- Help employees to grow in tandem with business
Societal
value
Resolution of societal issues
- Build sustainable publishing infrastructure
- Grow together with authors, business associates & users by building trust
- Foster culture and enrich society
- Revitalize regional economies
- Boost employee motivation
- Help realize a society open to diversity
Economic | Relevant | |
value | SDGs | |
Pursuit of
growth/earnings
-
Gross eBook distribution
volume
¥155bn
(FY2020)
- Other businesses' net sales
¥1,190mn
(FY2020)
- Operating margin
3.2%
(FY2020)
- Boost labor productivity
- Scale up operations
value Do's Media in growth Sustained
Strengthen governance
Strengthen governance through dialogues with stakeholders and compliance with the Japan's Corporate Governance Code with sights set on TSE prime market listing
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 43 |
FY2021 initiatives (6)
Strengthen governance by further
increasing transparency
FY2020
Introduction of executive officer system to expedite decision-making
FY2021
Establishment of nomination &
compensation advisory committee
- A nomination & compensation advisory committee will be newly established to advise the Board of Directors
- It will ensure management objectivity and rationality by making recommendations on director and executive officer appointments/dismissals and compensation proposals
- It will be majority-independent and chaired by an outside director
Promotion of diversity
- Ayako Kanamaru is slated to be appointed as a new independent outside director*
- She possesses broad knowledge and experience in overseas corporate law and corporate governance
- Board will be one-third independent (4 executive directors, 2 outside directors)
- Contingent on her appointment being approved at 22nd General Meeting of Shareholders
We plan to reorient Board of Directors' role from management | |
(direct involvement in executive decision-making)to monitoring (oversight of | |
management's execution of business) | 44 |
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | |
Appendix
3. Reference data
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 45 |
FY2020 Full-Year Results (P/L)
FY2019 | FY2020 | ||||||||||||||||||
(Millions of yen) | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | |||||||||||
Net sales | 15,454 | 16,427 | 16,085 | 17,892 | 20,292 | 21,441 | 20,272 | 21,533 | |||||||||||
eBook distribution | 15,127 | 97.9% | 16,080 | 97.9% | 15,687 | 97.5% | 17,633 | 98.6% | 20,064 | 98.9% | 21,141 | 98.6% | 19,957 | 98.4% | 21,186 | 98.4% | |||
business | |||||||||||||||||||
Other businesses | *1 | 326 | 2.1% | 346 | 2.1% | 397 | 2.5% | *4 | 259 | 1.4% | 228 | 1.1% | 299 | 1.4% | 314 | 1.6% | 347 | 1.6% | |
Cost of sales, SG&A | 15,019 | 97.2% | 15,933 | 97.0% | 15,648 | 97.3% | 17,404 | 97.3% | 19,560 | 96.4% | 20,643 | 96.3% | 19,650 | 96.9% | 21,020 | 97.6% | |||
expenses | |||||||||||||||||||
Royalties/other | 13,292 | 86.0% | 14,131 | 86.0% | 13,867 | 86.2% | 15,579 | 87.1% | 17,862 | 88.0% | 18,878 | 88.0% | 17,750 | 87.6% | 19,012 | 88.3% | |||
cost of sales | |||||||||||||||||||
Commissions | 49 | 0.3% | 53 | 0.3% | 47 | 0.3% | 57 | 0.3% | 54 | 0.3% | 57 | 0.3% | 53 | 0.3% | 51 | 0.2% | |||
Advertising | 130 | 0.8% | 144 | 0.9% | 162 | 1.0% | 191 | 1.1% | 214 | 1.1% | 200 | 0.9% | 237 | 1.2% | 226 | 1.0% | |||
expenses | |||||||||||||||||||
Personnel expenses | *1 | 895 | 5.8% | 945 | 5.8% | 852 | 5.3% | *4 | 768 | 4.3% | 750 | 3.7% | 784 | 3.7% | 799 | 3.9% | 852 | 4.0% | |
Depreciation | 201 | 1.3% | 206 | 1.3% | 201 | 1.3% | 198 | 1.1% | 182 | 0.9% | 181 | 0.8% | 184 | 0.9% | 210 | 1.0% | |||
/amortization | |||||||||||||||||||
Other | 449 | 2.9% | 452 | 2.8% | 516 | 3.2% | 610 | 3.4% | 494 | 2.4% | 541 | 2.5% | 624 | 3.1% | 666 | 3.1% | |||
Operating profit | 434 | 2.8% | 493 | 3.0% | 437 | 2.7% | 487 | 2.7% | 732 | 3.6% | 797 | 3.7% | 621 | 3.1% | 512 | 2.4% | |||
Ordinary income | 456 | 3.0% | *2 395 | 2.4% | 391 | 2.4% | 518 | 2.9% | 734 | 3.6% | 849 | 4.0% | 615 | 3.0% | 521 | 2.4% | |||
Profit (loss) | *3 404 | ||||||||||||||||||
attributable to owners | 265 | 1.7% | 218 | 1.3% | 2.5% | (3) | 0.0% | 450 | 2.2% | 459 | 2.1% | 354 | 1.8% | 254 | 1.2% | ||||
of parent | |||||||||||||||||||
EBITDA | 636 | 4.1% | 699 | 4.3% | 638 | 4.0% | 686 | 3.8% | 914 | 4.5% | 979 | 4.6% | 806 | 4.0% | 723 | 3.4% | |||
*1. A factor in the increase in "Other" and "Personnel expenses" was the consolidation from March 2019 of Tokushima Data Service Co., Ltd. (difference compared to FY2018 4Q of +¥200 million and +¥160 million, respectively.) | ||
*2. A ¥90 million provision to allowance for doubtful accounts was booked as a non-operating expense against receivables owed by investee Creatubbles Pte. Ltd. | ||
*3. Factors in ¥290 million one-time gain on sale of Amazia equity stake. | ||
*4. QoQ decrease is attributable to the end-Oct 2019 divestment of Tokushima Data Service (see Note 1). Although the divestment increased royalties /other cost of sales as a percentage of total net sales, the eBook distribution | 46 | |
business's royalties/other cost of sales were flat QoQ as a percentage of its net sales. | - https://mediado.jp | |
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. |
FY2020 Full-Year Results (B/S)
FY2020 | FY2020 | QoQ change | Main factor behind change | |
(Millions of yen) | ||||
3Q | 4Q | (in yen) | ||
Current assets | 29,197 | 33,902 | 4,705 | |
Cash and deposits | 10,249 | 12,703 | 2,454 | |
Accounts receivable | 17,952 | 19,921 | 1,969 | Increased in tandem with net sales growth |
Non-current assets | 9,370 | 9,285 | -85 | |
Property, plant and equipment | 297 | 303 | 5 | |
Software | 466 | 556 | 89 | |
Goodwill | 5,065 | 5,713 | 648 | Increased due to M&A |
Investment securities | 3,537 | 2,761 | -776 | Decreased due to pre-consolidation reduction in |
ownership interest in consolidated subsidiary | ||||
Total assets | 38,568 | 43,187 | 4,619 | |
Current liabilities | 24,224 | 25,425 | 1,200 | |
Accounts payable | 21,112 | 22,507 | 1,395 | Increased in tandem with net sales growth |
Current portion of long-term borrowings | 1,187 | 1,181 | -5 | |
Fixed liabilities | 5,811 | 5,593 | -218 | |
Long-term borrowings | 5,698 | 5,471 | -226 | Decreased due to debt repayment |
Total liabilities | 30,035 | 31,018 | 982 | |
Shareholders' equity | 8,229 | 11,903 | 3,673 | |
Capital | 2,803 | 4,415 | 1,611 | Increased due to exercise of share acquisition rights |
Capital surplus | 3,682 | 5,489 | 1,807 | Increased due to exercise of share acquisition rights |
Retained earnings | 1,745 | 2,000 | 254 | |
Total accumulated other comprehensive income | 278 | 201 | -77 | |
Share option | 25 | 11 | -13 | |
Non-controlling interest | (1) | 53 | 54 | |
Total net assets | 8,532 | 12,169 | 3,637 | |
Total liabilities and net assets | 38,568 | 43,187 | 4,619 |
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 47 |
Balance Sheet Data
Financial metrics are improving
Shareholders' equity ratio (SER) | Key B/S accounts |
(Millions of yen) | |||||||
45,000 | 31.3% | 43,188 | |||||
40,000 | 34,063 | 28.0% | |||||
35,000 | |||||||
30,942 | |||||||
30,000 | |||||||
26,699 | |||||||
25,000 | |||||||
17.0% | |||||||
20,000 | 15.3% | ||||||
14.1% | |||||||
15,000 | 8,683 | 12,104 | |||||
10,000 | |||||||
4,096 | 4,368 | 5,791 | |||||
5,000 | 2,716 | ||||||
0 | |||||||
Feb. 2017 | Feb. 2018 | Feb. 2019 | Feb. 2020 | Feb. 2021 | |||
Total assets | Shareholders' equity | SER | |||||
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
(Millions of yen)
12,169
11,387
10,063
8,241 | ||||||||||
6,588 | 6,654 | |||||||||
5,807 | 5,838 | |||||||||
5,416 | 5,713 | |||||||||
4,218 | 4,461 | |||||||||
2,767 | ||||||||||
1,460 | ||||||||||
0 | ||||||||||
Feb. 2017 | Feb. 2018 | Feb. 2019 | Feb. 2020 | Feb. 2021 | ||||||
Goodwill | Interest-bearing debt | Net assets | ||||||||
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 48 |
Mission/vision
Mission: Unleashing a Virtuous Cycle
of Literary Creation
Vision: More Content for More People!
Specifically,
Leveraging its Position , Media Do will popularize eBooks and expand the publishing market with its people, IT and strategies
49
Media Do's greatest strength (1)
Media Do's greatest strength
Position
Core distribution functions
Uniquely positioned as distributor of 2,200 eBook
publishers' titles to 150 book retailers that
account for nearly all of Japan's eBook retailers,
including the major ones
Global presence
The only Asian company with an executive serving as
co-chair of W3C's* Publishing Business Group
First Japanese W3C evangelist
- World Wide Web Consortium: an organization that promotes global standardization of Internet technology, including eBooks. Media Do International CEO Daihei Shiohama was named co-chair of its Publishing Business Group in February 2019, together with executives from two of the biggest US/European publishers, including Penguin Random House. Shiohama became the W3C's first Japanese evangelist in January 2021.
Dominant market share
Globally ranked second only to Amazon by
eBook distribution volume with gross
transaction value > ¥155bn*
*FY2020
Industry support
Over 14%1 owned by publishers, mainly Japan's
four biggest2
1. Based on issued share count at February 28, 2021.
2. Kadokawa, Kodansha, Shogakukan and Shueisha (listed in alphabetic order).
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 50 |
Media Do's greatest strength (2)
Technology
Entirely in-house development
100-strong engineering staff develops core systems entirely in-house, from a high-traffic eBook distribution platform to systems that leverage blockchain and other leading-edge technologies.
Wholesaler turned SaaS
provider
Media Do has pursued a user-friendly, cost- efficient SaaS model since entering the eBook distribution business.
It is helping to further advance the publishing industry by streamlining distribution through system integration and migration to new eBook distributing system.
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 51 |
Overview of eBook distribution business (1)
35% of eBooks are distributed via Media Do in Japan
Authors/copyright holders | Publishers | |
Gross transaction value
of eBooks distributed by
Media Do: | eBook | ① | |
¥120bn | Users | ||
(FY2019) | retailers | Market size: | |
(FY2020: ¥155bn) | |||
② | ¥375.0bn* | ||
③Publishers' B2C eBook retailers
Source: Impress Research Institute's eBook Marketing Report 2020 on Japanese market
*Actual FY2019 value
52
Overview of eBook distribution business (2)
Media Do is the biggest eBook
distributer in Japan
Authors/artists | Publishers | retailers eBook | Readers | |||
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 53 |
Overview of eBook distribution business (3)
Facilitating eBook distribution with four services
(1) Brokering of | (2) Pro rata distribution |
contracts/transactions | of revenues to |
with publishers | publishers and authors |
Expansion of eBook retailers' content lineups | Aggregation of eBook retailers' monthly sales data |
(3) Operation of eBook | (4) Execution of |
distribution system | promotional campaigns |
Distribution of content to eBook retailers on | Offering of discounts, freebies and other promotions in |
behalf of publishers | coordination with publishers and eBook retailers |
54
Overview of eBook distribution business (4)
Media Do's track record in Japan
Trusted by publishers
Over 2,200 publisher accounts, including 1,530 non-manga publishers, all major publishers*1 and over 99% of eBook publishers*2
Trusted by | Supplier to over 150 book retailers, |
book | including all of top 20 by usage rate*3 |
retailers |
*1. Defined as publishers that belong to the Japan Book Publishers Association (402 members as of October 31, 2020), excluding non print (e.g., audiobook) publishers.
*2. Per a Media Do survey. Excludes sub scale publishers, publishers without regular publications, etc.
*3. Top 20 eBook retailers (ex book retailers run directly by publishers) ranked by popularity based on number of survey respondents who reported purchasing an eBook from the retailers within the previous six months per Impress Research Institute's eBook Marketing Report 2020.
55
Overview of eBook distribution business (5)
Core focus is eBook distribution business
¥83.5bn
eBook distribution business
MEDIA DO Co., Ltd. | Digital Publishing Initiatives Japan Co., Ltd. | |||
MEDIA DO TEC TOKUSHIMA Co., Ltd. | Nagisa, Inc. | |||
Other businesses
Media Do International, Inc. | ARTRA ENTERTAINMENT Inc. |
¥82.3bn
(98.6%)
Hub of Media Do Group's international operations, located in San Diego, U.S.
J-Comic Terrace Corporation
Distributes eBooks, including through its "Manga
Library Z" site, a free digital comic service
MangaNews Inc.
Distributes eBooks, including through its "Tokyo Manga Reviewers" site, a free digital comic service
Provides graphic production support services (e.g., eManga coloring) for manga authors
Flier Inc.
Operates "flier," a book summary service
MyAnimeList, Co., Ltd.
Operates "MyAnimeList," one of the world's
largest anime/manga community sites
¥1.2bn
(1.4%)
FY2020 net sales
JIVE Ltd. | Quality Solutions, Inc. | |
Provides publishing workflow management and | ||
Operates next-generation imprint publishing | ||
business; owns female-oriented manga imprint | bibliographic information management services | |
NetGalley, LLC | ||
Provides NetGalley online marketing tool for | |
publishing industry | 56 |
Media Do's operating environment (1)
eBook market growth has been accelerating
+18.5% | 566.9 | ¥78.8bn | ||
Stay-at-home consumption | upward | |||
Proactive, agile investment is essential | growth driven by pandemic | 536.8 | revision of | |
512.4 | FY23 market | |||
to seize growth opportunities | 481.2 | forecast | ||
eBook | ||||
444.2 | ||||
Forecast in | ||||
Marketing | ||||
+22.1% | 375.0 | Report 2020 | ||
Growth spurt due to | Forecast in | |||
shutdown of major overseas | eBook | |||
pirate sites in April 2018 | 311.2 | Marketing | ||
Report 2019 | ||||
255.6 | Forecast in | |||
eBook | ||||
227.8 | Marketing |
182.6 | Report 2018 | |
(Billions of yen) | ||
141.1 | ||
101.3
65.1 76.8
2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
(FY)
Source: Impress Research Institute's eBook Marketing Report 2020 on Japanese market
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 57 |
Media Do's operating environment (2)
Comics market grew 23% YoY; digitalization
of non-graphic books still has a lot of room to run
Japan's publishing market by segment (2020)
Digital share of sales
62.2% Up 1.3pt YoY
eBook ¥342.0bn
Paper
book ¥207.8bn
5.8% Up 0.7pt YoY
¥40.1bn
eBooks account for 30-40% of US and Chinese publishing markets
¥645.9bn
1.9%
¥11.0bn
¥370.0bn
Comics | Non-graphic books (e.g., novels, textbooks) |
¥549.8bn | ¥686.0bn |
Source: All-Japan Magazine and Book Publishers and Editors Association (AJPEA)
Note: AJPEA Statistics classify 90% of comic books in the "magazine" category. In the diagram above, such comic books classified as magazines are counted as "comics." Additionally, comic sales include only comic books (both hard-copy and digital) while comic magazines (both hard-copy and digital) are included in the "magazines" category.
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp
Magazines
¥381.0bn
58
Media Do's operating environment (2)
Digital shift is driving manga market growth
Comic book market (excludes magazines)
(Billions of yen)
6,000
~+7% CAGR for hard-copy/digital combined
5,000
4,000 | CAGR | |
62% | +23.9% |
eComics market is now larger than paper comic market, largely by virtue of digital channel's anytime, anywhere accessibility
Paper comics' sales decline should tend to
taper off by virtue of catalog effect of
3,000
2,000
1,000
0
-0.2%
38% CAGR
consumers' exposure to digital
A pickup in sales of not only digital but also hard-copy | |
Catalog effect | |
content in response to consumption of digital content |
Growth in eBook distribution
is revitalizing entire
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||
Paper | Digital | ||||||
publishing market
Source: All-Japan Publishers and Editors Association's annual publishing statistics
Note: Paper comics market data are for comic books only (i.e., magazines are excluded).
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 59 |
Anti-piracy measures (1)
Amended Copyright Act, effective Jan. 1,
has criminalized copyright violations
History of illicit sites | Industry/government responses |
2004 Unauthorized dissemination of content through P2P services 2007 Unauthorized content on video-sharing sites becomes an issue 2011 New modes of infringement (e.g., leech sites) emerge
Publishers incur major losses due to pirate sites
Haruka Yume no Ato | Ringleader sentenced to 28-42 months in |
2015-Oct. 2017 | prison and fined ¥160mn |
FreeBooks | |
Jan.-May 2017 |
Content Overseas Distribution Association (CODA)
established (2002)
(Music/images) Illegal downloads criminalized (2012)
Publishing rights updated to accommodate eBooks (2013)
Authorities start to address leech sites (2016)
Stop Book Piracy! Campaign, promotion of ABJ* Mark's use (2018)
(later founded anti-piracy NPO ABJ, appointed COO Niina as its representative
director)
Manga-Mura | Members of management group arrested | ||
Blocking of pirate sites discussed with ISPs and | |||
May 2017-Apr. 2018 | on copyright infringement charges | ||
telecom industry (2019) | |||
Hoshi no Romi | 2020 | ||
May-Sep. 2019 | |||
Leech sites illegalized (Oct. 2020) | |||
Sites in Vietnam | Traffic has grown since July as consumers | ||
From May 2020 | spend more time at home amid pandemic | 2021 | |
eBooks added to prohibition of illicit DLs (Jan. 2021) | |||
(1) Swiftly respond to piracy (2) Promote adaptation of copyrighted works' use to societal change (3) Protect copyrights
*Authorized Books of Japan. The ABJ Mark is a trademark that indicates the download site is licensed to distribute content by the content's copyright holders.
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 60 |
Anti-piracy measures (2)
ESG priorities: Combat piracy, move publishing industry & culture forward
Collaborations with publishing industry & telecom carriers
Authorized Books of | Piracy site | ||||||||
Japan (ABJ) | information sharing | Collaborators | |||||||
(Established in April 2020) | scheme task force | ||||||||
Representative Director: | Safer Internet Association | Filtering services | |||||||
Security firms | |||||||||
Media Do Vice-President and COO Shin | |||||||||
Niina | |||||||||
・Publishing PR Center | Lists | • Develops and | Lists | • Use lists as input in | |||||
・Digital Comic Association | operates pirate site | their services (user | |||||||
・Electronic Book Publishers Association of | |||||||||
Japan | list sharing scheme | protection) | |||||||
• | Collects, assesses and manages | ||||||||
• | pirate site information | Coordinated compilation/sharing of lists | |||||||
Grants/certifies ABJ mark |
- Conducts antipiracy education
Promoting broad anti-piracy measures/education through collaboration among
publishing industry, telecoms and government authorities
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 61 |
Growth in net sales | 83,540 |
Company history
1994: CEO Yasushi Fujita starts first business while still in university
1996: Fuji Techno Ltd. founded in Nagoya
1999: Media Do Co., Ltd., founded in Nagoya (it later merged with Fuji Techno)
2006: eBook business launched
2013: IPOed on TSE Mothers market
2014: Head office relocated from Nagoya to Tokyo
2016: Stock exchange listing moved to TSE 1st Section
2017: Acquired Digital Publishing Initiatives Japan Co., Ltd., as wholly owned subsidiary Reorganized as holding company, changed company name to MEDIA DO HOLDINGS Co., Ltd.,
and established the new business subsidiary Media Do Co., Ltd.37,213
2019: Merger of Digital Publishing Initiatives Japan Co., Ltd., with Media Do Co., Ltd. (Name following merger Media Do Co., Ltd.)
2020: Media Do Co., Ltd., merged into MEDIA DO HOLDINGS Co., Ltd. (Name following merger MEDIA DO Co., Ltd.)
15,532 | |||||||||||||||||||||||||||||||||||
11,242 | |||||||||||||||||||||||||||||||||||
(Millions of yen) | 1,415 | 617 | 2,141 | 2,659 | 3,000 | 3,602 | 4,086 | 5,544 | 8,074 | ||||||||||||||||||||||||||
197 | 139 | 812 | 1,880 | 977 | 319 | 810 | 1,210 | 1,831 | 1,962 | ||||||||||||||||||||||||||
(FY) | 411 | 1,676 | |||||||||||||||||||||||||||||||||
1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
4Q
21,533
656 ,86060
4Q
17,892
50,568 3Q
20,272
3Q
16,085
2Q
21,441
2Q
16,427
1Q
20,292
1Q
15,454
2018 2019 2020
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 62 |
Share price performance and trading volume since IPO
(Yen) | Share price (lhs) | Volume traded (rhs) | (shares in | |||||||
1000s) | ||||||||||
9,000 | 9,000 | |||||||||
Oct. 21, 2020 Stock hits | ||||||||||
8,000 | post-IPO high of ¥9,090 | 8,000 | ||||||||
Apr. 9, 2021, closing | ||||||||||
7,000 | price: ¥7,030 | 7,000 | ||||||||
6,000 | 6,000 | |||||||||
5,000 | 5,000 | |||||||||
IPO price: ¥3,300 | ||||||||||
4,000 | 4,000 | |||||||||
Feb 28, 2017: DPIJ | ||||||||||
3,000 | 3,000 | |||||||||
acquisition | ||||||||||
2,000 | announced | 2,000 | ||||||||
1,000 | 1,000 | |||||||||
Feb 23, 2016: First day of | ||||||||||
trading on TSE 1st Section | ||||||||||
0 | 0 | |||||||||
Nov. 2015 | ||||||||||
Nov. 2013 | Nov. 2017 | Nov. 2019 |
Note: Share price adjusted to reflect 2-for-1 stock splits on March 1, 2014, and December 1, 2014.
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | 63 |
Media Do's market capitalization since IPO
¥129.0bn based on Oct. 20, 2020,
closing price
(Billions of yen)
1201..2E+110
100.1E+110
80.08E+10
60.06E+10
40.04E+10
20.02E+10
¥108.0bn based on Apr. 9, 2021,
closing price
0 | |||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||
2013 | |||||||||||||
13年11月21日 | 2014年11月21日 | 2015年11月21日 | 2016年11月21日 | 2017年11月21日 | 2018年11月21日 | 2019年11月21日 | 20年11月21日 |
64
Company Outline
Trade name | MEDIA DO Co., Ltd. |
Established | April 1999 |
Capital | ¥4,415 million (as of February 28, 2021) |
Stock listing | Tokyo Stock Exchange, First Section |
Securities code | 3678 |
Board Members | President and CEO: Yasushi Fujita |
Director: Shin Niina | |
Director: Yoshiyuki Suzuki | |
Director: Atsushi Mizoguchi | |
Outside Director: Keiichi Enoki | |
Outside Director: Ayako Kanamaru | |
Standing Audit & Supervisory Board Member: | |
Kazuyoshi Ohwada | |
Outside Audit & Supervisory Board Member: | |
Toshiaki Morifuji | |
Outside Audit & Supervisory Board Member: | |
Tsuyoshi Shiina |
Executive Officer: Kayoko Hanamura | ||
Executive Officer: Susumu Tsukamoto | ||
Executive Officer: Junichiro Izumi | ||
Executive Officer: Ryo Yamada | Digital Publishing Initiatives | |
Executive Officer: Yoichi Chihara | JIVE Ltd. | |
Executive Officer: Hiroshi Kanda | Japan Co., Ltd. | |
Executive Officer: Hajime Suzumura |
Notes: 1. Board Director appointments are subject to shareholder approval at annual general meeting of shareholders scheduled on May 27, 2021.
2. Operating officer appointments take effect from June 1, 2021.
Head Office | 5F PALACESIDE Bldg. 1-1-1 Hitotsubashi Chiyoda-ku Tokyo, Japan | |||
Tokushima Kito Office | 5-23 Iwatsushi, Kitowamuda, Naka-cho,Naka-gun, Tokushima, Japan | |||
Subsidiaries | (Domestic) Media Do Tech Tokushima Co., Ltd.; ARTRA ENTERTAINMENT Inc.; J-Comic Terrace Corporation; Digital Publishing Initiatives | |||
Japan Co., Ltd.; Flier Inc.; MangaNews Inc.; MyAnimeList, LLC; JIVE Ltd.; Nagisa, Inc.; Nihonbungeisha Co., Ltd. | ||||
(Overseas) Media Do International,.Inc.; Quality Solutions, Inc. (Firebrand Technologies); NetGalley, LLC | ||||
Affiliates | LINE Book Distribution Inc.; A.I. Squared, Inc.; Tec Information Corp. | 65 | ||
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp | ||||
Management Team
Kayoko Hanamura
Chief Ebook Distribution Officer, Executive Officer
Began career at Forside in 2000. Worked in content business throughout tenure at Forside, including as general manager from 2003, executive officer from 2007 and director from 2010. Since joining Media Do in 2015, has been involved in all facets of eBook distribution business, including as general manager of Licensing Business Department, general manager of eBook Distribution Division and executive officer. Appointed CEDO mainly in charge of wholesaling operations within core eBook distribution business in June 2020.
Role as CEDO is to tap into her extensive experience in content businesses to build operational model encompassing entire eBook distribution business from planning through IT operations management while identifying unmet needs of publishers and book retailers.
Susumu Tsukamoto
Chief Publication Solutions Officer, Executive Officer
Began career in 1980 at TOHAN. Worked 10 years in magazine publishing and 8 years overseas, including 4.5 years as president of TOHAN TAIWAN. Joined KADOKAWA SHOTEN (now KADOKAWA CORPORATION) in 1998. Established KADOKAWA TAIWAN and was its president for 4.5 years. Subsequently involved in setting up local operations in Hong Kong, Guangzhou, Thailand, Malaysia and North America. Executive roles at KADOKAWA included director/general manager of KADOKAWA's Overseas Business Division from 2012, managing executive officer from 2017 and advisor from 2019. Cofounded and appointed director of Japan Manga Alliance in 2015. Joined Media Do in June 2020 as CPSO/executive officer mainly in charge of Overseas Business Department and PUBRID Department.
Yasushi Fujita
Presindet and CEO
Launched first business in 1994 while in university. Founded Fuji Techno in 1996 and Media Do in 1999 (the former was merged into the latter in Nov. 2001). Involved in various businesses before launching eBook distribution business in 2006. Listed Media Do on TSE Mothers Market in 2013 and moved its listing to TSE 1st Section in 2016. As CEO, is in charge of management strategy, particularly creation of new drivers of shareholder value.
Established Tokushima Innovation Base Association in 2020 in aim of supporting entrepreneurs and serves as its representative director. Actively involved in local economic revitalization since 2013 in hometown of Kito-mura (now Naka-cho), Tokushima Prefecture, while also contributing to society as an entrepreneur in roles such as president of Entrepreneurs' Organization Tokyo.
Shin Niina
Director, Vice-President and COO
Began career at Chuokoronsha (now Chuokoron-Shinsha) in 1980. Hired by KADOKAWA SHOTEN (now KADOKAWA CORPORATION) in 1996. Promoted to general manager of its book business in 2003. Appointed managing director of KADOKAWA SHOTEN in 2007, representative director of KADOKAWA EDITORIAL in 2008, director of BOOK WALKER in 2012 and executive director of Kadokawa Culture Promotion Foundation in 2013. Appointed president/representative director of DPIJ (renamed Media Do in March 2019) in 2014. Has served as vice-president/COO/director of Media Do since 2018. Appointed representative director of anti- piracy organization Authorized Books of Japan in 2020.
Heads core eBook distribution business and publishing support business as COO, capitalizing on his many years of literary editorial experience and quarter century of experience in digital publishing. Acts as Media Do's point man in dealings with publishing industry.
As CPSO, is responsible for IPO creation and proactive cultivation of overseas markets through, e.g., capital/operational alliances, capitalizing on his wealth of experience in publishing distribution and overseas businesses.
Junichiro Izumi
CTO, Executive Officer
Began career in 2007 at Works Applications in ERP package software development. Hired by Recruit Technologies in 2015 to work on Rikunabi development project. Returned to Works Applications in 2016 to help launch SaaS ERP system. Joined Media Do in 2018. Involved in introduction of cloud and development of new distribution system as general manager of Technology Division and New Services Development Department. Appointed CTO/executive officer in charge of developing new products and upgrading existing products to achieve strategic objectives in June 2020.
As CTO, is responsible for leveraging technologies to develop and deploy IT systems that contribute to entire publishing industry, not only eBooks.
Ryo Yamada
CFO, Executive Officer
Began career in 1998 at NEC, where his assignments included corporate planning and business development. Hired by Rakuten in 2010. From 2017, headed Rakuten Group's M&A program as department manager of Corporate Development Department after working in business development. Since joining Media Do in 2018, has served as general manager of Corporate Planning Division and Management Administration Department. Appointed executive officer/general manager of Finance and Accounting Department in 2019 and CFO/executive officer in charge of financial strategy and capital raising in June 2020.
As CFO, is responsible for financing, M&A and PMI to support Media Do Group's multifaceted and discontinuous growth, capitalizing on his long experience in business development.
Yoshiyuki Suzuki
Director and CAO
Began career in 1986 at Takahashi Tax Office. Joined Media Do in 2007 following stints at Red Hot Company, Asahi Intecc and World Bridal. Appointed operating officer/general manager of Management Administration Department in 2008, general manager of Administration Division in 2015 and board director in 2016. Appointed CAO in charge of administration, finance and accounting in June 2020.
Has been in charge of all administrative operations since joining Media Do and, as CAO, will continue to oversee accounting.
Atsushi Mizoguchi
Director and CBDO
Began career at NTT DOCOMO in 2000, working in its content business. Involved in launching "Chaku-uta" (musical ringtones) for i-mode handsets. Joined Media Do in 2008. Appointed executive officer/general manager of Sales Division in 2010, director/general manager of Business Development Division in 2016, group COO in 2017, representative director of subsidiary MyAnimeList in 2019 and CBDO in charge of new businesses and alliances in June 2020.
As CBDO, leads development of new domestic and overseas markets and expansion of content offerings, capitalizing on his IT and mobile telecom expertise and broad experience in core eBook distribution business, eLibrary business and new businesses.
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp
Yoichi Chihara
CHRO, Executive Officer
Began career in 1981 at NEC, where his roles included general manager of HR Department at NEC (China) from 1998, general manager of HR and General Affairs Department at NEC LCD Technologies (now Tianma Japan) from 2003, general manager of NEC's HR Department from 2012 and managing director of NEC's corporate pension fund from 2014. Joined Media Do in 2019 as general manager of its HR Department. Appointed CHRO/executive officer in charge of HR, general affairs, legal affairs and corporate governance in June 2020.
As CHRO, is responsible for boosting both employee satisfaction and workforce productivity while building an organization compatible with diverse values and work styles.
Hiroshi Kanda
CSO, Executive Officer
Began career in 2008 in UBS Securities Japan's Investment Banking Division, where his roles included advising clients on M&A and capital raising. Hired by Frontier Management in 2009 to formulate and help execute business plans for B2C company turnarounds/management support. In 2013, cofounded and appointed CFO/director of Flier, which became part of the Media Do Group in 2016. Joined Media Do in 2018. Appointed general manager of Corporate Planning Division in 2019 and CSO/executive officer in charge of management strategy formulation and IR in June 2020.
As CSO, is responsible for formulating corporate strategies and reconciling various stakeholders' interests, capitalizing on his extensive financial knowledge, consulting skills and entrepreneurial experience. Has authored multiple books.
66
Forward-looking statement and unaudited information disclaimers
Information presented herein includes forward-looking statements. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks, all of which entail uncertainties that could lead to outcomes that substantively differ from the forward-looking statements' content.
Such risks and uncertainties include general industry and market conditions and general domestic and international economic conditions, including interest rate and exchange rate movements. Media Do assumes no responsibility to update or revise forward-looking statements contained herein, even if new information becomes available or unanticipated events occur.
Financial information that was not independently audited is also contained herein. Media Do does not warrant the accuracy of any such unaudited information. Readers are accordingly advised against making investment or other decisions in sole reliance on information contained herein.
Our investor relations website
https://www.mediado.jp/english/ir/
Copyright © MEDIA DO Co., Ltd. All Rights Reserved. - https://mediado.jp
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Media Do Holdings Co. Ltd. published this content on 23 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2021 08:07:05 UTC.