Helping Global-Minded Entrepreneurs Build Successful and Lasting Internet Companies

Ryu HIRAYAMACEO, YJ Capital Inc.SVP of Corporate Development , Yahoo Japan Corporation

Yahoo! JAPAN As Your Partner

• Business development

• Strategic acquisitions

• InvestmentJapan’s No.1 Internet company “Pure” venture investment

OVERVIEW

• as sole LP

• Total funds of $190mn (Fund 1 $25mn raised in 2012, Fund 2 $165mn raised in 2015)

• Strategic synergies NOT required for investment• All stages• All areas• Regions: Japan, US, SE Asia, Korea, Israel

Overview

YJ Capital Core Values

1Access to

YJ Capital Core Values

Japan market entry support2

YJ Capital Core ValuesPartners are ex-founders and current business heads at YJ3

Takao OZAWAHead of Yahoo!

Shopping

Shin MURAKAMIChief Mobile

Officer

Yusuke TANAKAHead of Personal

Services

Gen MIYAZAWAHead of Media

Services

WHO WE ARE

Over monthly page views（29bn via smart devices)

Over monthly page views（29bn via smart devices)

Jan-Mar 2015 average

Daily unique browsers

（45mn via smart devices）Jan-Mar 2015 average

Active user ID’s

Jan-Mar 2015 average

Total app downloads

iOS + AndroidAs at end Mar 2015

E-commerce approx. $3bn + Auction $7bn$1 = ¥120

Approx. Commerce GMV

“Multi Big Data Company”

And over 100other services…

As of June 19, 2015$1 = ¥120

Market Cap

FIREPOWER

Net Cashapprox.

$ bn

Total fundsapprox.

$ mnAs of end Mar 2015

$1 = ¥120Fund 1 and 2 combined

$1 = ¥120

WHAT WE ARE DOING

Description

•Search and Display ads •Expanding ad product lineup to include: video, re-targeting (Criteo), and native•Building an integrated marketing PF by offering DSP, DMP, and CRM solutions

Marketing Solution

Description

•Media services on web or through apps : search news, sports, weather, map, etc

Media Services

Description

•E-marketplace platform: ad model (no commission , no tenant / transaction fees)•Auction platform : royalty model

Commerce

Description

•Monthly subscription membership service•HealthCare service (genetic diagnosis)

Subscription

Description

•E-wallet•User ID•Customer loyalty program•Internet banking•Credit card issuance•FX trading bank

Payment & Finance

Description

•Internal data and science analytics PF

Data Science

HOW WE CAN HELP

Illustrative Partnership SchemeDescription

•Advice on: - Japanese market - UI/UX for Japanese users

Potential Partnership Scheme

•Offering YJ’s products to help business in Japan- Search /Display Ad, Wallet,

Shopping/Auction PF

•Promoting service using YJ’s owned media- Top Page, “featured” articles

•Offering total package of business solution for Japan operation

Market Consulting

Product Partnership

Promotion Partnership

Entire Operation Partnership

Our Asset

•Offering business functions to help business in Japan- Customer Support, UI/UX design,

Logistics

Functional Partnership

•Knowledge and insight on Japanese users with 19 years of Japan operation

•B2B product lineups•Significant business

customer base

•Functional expertise optimized for internet business in Japan

•Media power of YJ with ~2.0B PV / day

•100+ services

•Streamlined business operations with ~50% op margin

No contract

Product offering

Commercial agreement

JP op.Outsourcing

Acquisition of JP op.

JV for JP op.

Selected Partnership Examples

Appendix 1Japanese Market Overview

Internet Users

109.3M<Ref>US 279.8M, 86.8%

* Source: Internet Live Stats, Dec 2014

Penetration:86.0%

Mobile Users

* Source: ICT World Telecommunication/ICT Indicators, 2012

141M<Ref>US 303M 96.5%

Penetration:110.6%

Mobile Device Penetration

Smartphone

57%Tablet

16%

* Source: Video Research, Aug 2014

Mobile OS Share

* Source: OS share: MM Research Institute, Mar 2014

57.1%

41.8%