Investor Relations

President and Representative Director Koki Sato

Successfully Achieved “V-Shaped Recovery”
Start of the New Midterm Business Plan Designed to Create High Growth, High Profitability Business Models

“V-Shaped Recovery” Achieved, On to New Growth Opportunities

One year has passed since I took over the reins of SEPTENI HOLDINGS as its President. Looking back upon the past year, I believe that we have found our way back to our original growth path.
During fiscal year September 2009, we encountered difficult operating conditions due to the weak economy and to other internal factors which negatively impacted our earnings. Against this backdrop, we adopted the slogan of “V-shaped recovery” as an objective for the fiscal year September 2010 and endeavored to create a structure that will allow us to grow earnings. Consequently during the term under review, we were able to record large 142.8% year-over-year growth in our ordinary income despite a marginal decline in our sales, and we achieved our objective of a “V-shaped recovery.”
Looking at the Internet advertising market, we noted a bottom in declining demand, which was brought on by the stagnant economy, and the recovery seen from the second half of the fiscal year September 2010 grew clearer. In response to these market changes, I believe we have successfully created a structure that can bring about further expansion in our business and earnings after fiscal year September 2011.

Earnings Growth Achieved in Our Main Internet Advertising Business

In our main Internet advertising business, we were able to achieve earnings growth through aggressive marketing activities focused upon cultivating profitable projects and targeting high growth fields. In the high growth mobile advertising field, we established a subsidiary specializing in mobile applications, and promoted business development that leverages our Group’s value chain. And the 3.8% point year-over-year rise in this business’ sales to 26.1% of total sales during the fiscal year September 2010 demonstrated the strength of the Septeni Group value chain that is unique amongst our competitors. In addition our web solutions realm is expanding and it contributed to an improvement in our earnings. Furthermore we aggressively developed reward advertisement, portal sites and other new applications in the realm of social media applications.
With regards to our Internet related business, we were able to realize our main goal of realizing profits in the realm of contents through our efforts to review costs and reduce expenses.

Start of the New Midterm Business Plan

Our Group will promote bold changes in our business that focus upon increasing the amount of in-house services as part of our new Three Year Midterm Business Plan that starts in fiscal year September 2011.
The fiscal year September 2011 is an extremely important year for us because it marks the starting year of our new Three Year Midterm Business Plan. We have selected the slogan “Developing New Opportunities” as our next business theme, reflecting our focus upon capturing new business opportunities. We will concentrate our business resources in the rapidly expanding areas of the Internet market, which include mobile and social media, to create high growth and high profitability business models.

Venture Business Mentality, the Driving Force behind Growth

I believe that a key strength of our Group is our ability to consistently lead the market by taking on new business challenges. During the fiscal year September 2010 we established three new companies within the Septeni Group as part of our efforts to fortify our business structure in order to rapidly develop a wide range of business solutions that respond to the needs of the markets.
Ultimately the driving force behind our various businesses is our “people.” And within our Group we have a large number of “people” who have a venture business mentality that contributes to the development of new businesses. Furthermore we have facilitated a work environment that fosters and supports their appetite to take on new challenges. Going forward we will maintain this corporate culture and further cultivate the spirit of the venture business mentality amongst all of our staff.

Strive for Continued Growth

As part of our policy of returning profits to our shareholders, we have established a target dividend payout ratio of 15% of consolidated net income, and a minimum dividend of \1,000 per share. And while we seek to achieve stability in our dividend payment as part of our basic dividend policy, we will respond flexibly during periods when our earnings are expanding.
I believe that the largest contribution we can make to our Company and its shareholders is to maintain the growth of the Septeni Group. In reflection of the fiscal year September 2010, we were able to achieve a “V-shaped recovery” and create foundations that will enable us to take on new challenges. In the future, we will aggressively deploy our businesses by maintaining our venture business mentality. Therefore we ask for your ongoing support and understanding in our business endeavors going forward.