Annual Report Media Do

Financial Results for Full Year of the Fiscal Year Ended Feb.
2017
MEDIA DO Co., LTD TSE 1st Section 3678 http://mediado.jp/ April.10 2017
“We deliver more content for everybody to enjoy!”
1 Business Model/Mission
2 Highlights of the Year Ended February 2017
3 Review of the Year Ended February 2017
4 Progress in eBook business
5 Strategies for Future Growth
Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 1


1 Business Model／Mission
Business Model “We deliver more content for everybody to enjoy!”
The business model of our company is "digital distribution of copyrighted works" using systems.
With ebooks as our core content, we promote the distribution of works including music, images,
and games.
Digital distribution of copyrighted works
Content Holders
Distributors
Authors
Users
Accumulate
information

1 Business Model／Mission
Mission “We deliver more content for everybody to enjoy!”
We deliver more content for

everybody to enjoy!
We, Media Do, intend to contribute to the development of culture in Japan
and creation of an affluent society with the business policy of
"establishing a cycle to create sound copyrightable works."
This is the cycle where we will distribute copyrightable works in keeping with their fair use
as universally as possible and then return the proceeds to the authors.
❶ ❷
Copyrightable
Sound digital Harmony between
works contributing distribution of utilization and
to development of copyrightable protection of
culture works
works
Copyright Act Chapter 1 Section 1 Article 1 “The purpose of this Act is to provide for, and to secure protection of, the rights of
authors, etc. and the rights neighboring thereto with respect work as well as performances, phonograms, broadcasts and wire-
broadcasts, while giving due regard to the fair exploitation of these cultural products, and by doing so, to contribute to the
development of culture.”
Copyright © MEDIA Do Co.,Ltd. All Rights Reserved.


Highlights of the Year Ended February 2017 “We deliver more content for everybody to enjoy!”
The eBook business continued to grow steadily following FY2016. Both sales and profit increased year on year.
4th Quarter
2016/12～2017/2 Sales：4,312 million yen（up 40.2％ YOY）
→ eBook Sales：3,924 million yen（up 34.5％ YOY accounting for 91.0％ of total sales）
Operating profit：223million yen（up 63.0％ YOY）
Full Year 2017

2016/3～2017/2
Sales：15,532 million yen（up 38.2％ YOY）
→ eBook Sales：14,223 million yen（up 33.9％ YOY accounting for 91.6％ of total sales）
Operating profit：656million yen（up 18.9％ YOY）

Topics for the Year Ended February 2017 “We deliver more content for everybody to enjoy!”
Topics  OverDrive Inc.'s e-library system adopted by the University of Fukui, the first adoption by a national university
(First Half)  “MD Viewer,” a viewer application featuring “Universal Flick” (patent pending), which enables users to turn
pages by just tapping and swiping the screen either sideways or lengthways, was patented in Japan, and
international patent applications have been filed
 Started providing eBook content and eBook distribution solutions to Rakuten Manga
 Started providing eBook distribution solutions to Legal Archives, a precedent and scholarly paper data distribution
service
 Head Office relocated from Hatsudai, Shibuya-ku to Takebashi, Chiyoda-ku
 U.S. subsidiary “Media Do International, Inc.” founded in San Diego
 Capital and business partnership formed with Creatubbles, the world's fast-growing SNS for children
Topics  Launching e-book service “bizbook”, providing support for corporate customers in employee training and welfare
（3Q）  Hosting and participating in the 18th Library Fair & Forum
 Acquiring all shares of Flier Inc.
 Launching delivery solutions for e-magazine distribution service “Magamar Digital” and an e-magazine
contents providing service for stores and shops such as hairdressers
トピックス  Launching e-book system service for e-comic rental business “GEO Manga” offered at GEO shops
（4Q）
 Establishing a joint venture (a subsidiary) in Tokushima
 Acquiring 100% ownership of Manganews
 Forming a capital tie-up with Shueisha
 Providing e-book content and delivery solutions to “Comarket”
 A MediaDo subsidiary took over business from Ultra Entertainment.
 Acquiring 100% ownership of Digital Publishing Initiatives Japan

Change in sales “We deliver more content for everybody to enjoy!”
15,532
1996: Established YK Fuji-Techno in Nagoya-shi

40.2％
1999: Established MEDIA DO Co., Ltd. in Meieki, Nakamura-ku, Nagoya-shi UP
2001: The two companies merged, becoming MediaDoCo.,Ltd. 4Q
Transferred to the First Section of the
4,312
2006: Started ebook distribution business, achieving a continuous increase in Tokyo Stock Exchange
both earnings and profits
2013: Went public on the Mothers market of the Tokyo Stock Exchange 11,242
2014: Relocated the Head Office from Nagoya to Tokyo in August 実績

Result
2016: Transferred to the First Section of the Tokyo Stock Exchange Moving
4Q
U.S. subsidiary Media Do International, Inc. was founded in San Diego 3,076
Made Flier Inc. our subsidiary 3Q
4,019
2017: Established subsidiary Media Do Tec Tokushima
8,074
Acquired 100% ownership of Digital Publishing Initiatives Japan
3Q
Listed on TSE Mothers
2,786
5,544
Transition phase from feature phone to smartphone
2Q
3,790
Developed ebook business for smartphones faster than others 4,086 2Q

Internet business launched/Pake-Wari! system developed 3,602 2,820
ebook business started 3,000

Absorbed Fuji-Techno Co., Ltd. 2,659
2,141 Music distribution
1,880 business started 1,962
1,676 1,831 1Q
MEDIA DO Established
1Q 3,410
1,210
Fuji Techno Limited Company 977 2,558
commenced operation
810
411 319
2000/2 2001/2 2002/2 2003/2 2004/2 2005/2 2006/2 2007/2 2008/2 2009/2 2010/2 2011/2 2012/2 2013/2 2014/2 2015/2 2016/2 2017/2
(Unit: JPY Millions)
（1999）（2000）（2001）（2002）（2003）（2004）（2005）（2006）（2007）（2008）（2009）（2010）（2011）（2012）（2013）（2014）（2015）（2016）

State of Progress :The Term Ending Feb 2017 “We deliver more content for everybody to enjoy!”
Both sales and profits increased year on year in the fiscal year ended February 2017.
The profit progression rate against the earnings forecast was slightly down year on year.
However, sales met expectations and maintained their growth trend.
YoY comparisons (Full-Year) Comparisons with Full-Year Result Forecasts
(Unit: JPY Millions) (Unit: JPY Millions)

15,532
15,532 Rates of changes(YOY) （103.6%） Progress rate
Sales：38.2％Up
15,000
（138.2％）（Forecasts full year）
Sales：103.6%
Operation profit：18.9%Up Operation profit：93.7%
Net income： 23.9%Up Net income：95.6%
EBITDA：18.0％Up EBITDA：95.3%
11,242
（Results in the 896
preceding year) （Forecasts full year）
700
854 （Forecasts full year） 854
（118.0%）（95.3%）
656 656
（118.9%） 724 （93.7%）
434
（Results in the （Forecasts full year）
552 414 preceding year)
（Results in the （123.9%） 414

preceding year) （95.6%）
334
（Results in the
preceding year)
Sales Operation profit Net income EBITDA Sales Operation profit Net income EBITDA
（98.1%）（92.0%）（93.0%）（－）
Achievement compared with 3Q financial forecasts (result)

Dividend “We deliver more content for everybody to enjoy!”
As for the year-end dividend for the year ended February 2017, we are planning to pay the below
dividend in accordance with our dividend policy, generally considering factors including the
financial results, future business environment and future growth investment.
Targeted dividend
ratio from hereafter
21.1%
Expected dividend as of the end of
the fiscal year through February 2017 8. 80 yen
※ Details will be determined at the board meeting on April 26, 2017


P/L Statement : Financial Results for the Fiscal Year Ended Feb 2017 “We deliver more content for everybody to enjoy!”
Fiscal Year Ended

Fiscal Year Ended Feb 2016 Fiscal Year Ended Feb 2017
Feb 2017
Component Component Rates of Forecasts Achievem
Result Result
(Unit: JPY Millions) ratios ratios Change (YoY） (Full year) ent rates
Sales 11,242 100.0％ 15,532 100.0％ 138.2％ 15,000 103.6%
E-book 10,621 94.5％ 14,223 91.6％ 133.9％ − −

Music - Videos 384 3.4％ 304 2.0％ 78.8％ − −
Games 53 0.5％ 35 0.2％ 65.7％ − −
Others 182 1.6％ 970 6.2％ 531.0％ − −
Operating profit 552 4.9％ 656 4.2％ 118.9％ 700 93.7％
Recrring Profit 553 4.9％ 656 4.2％ 118.8％ 700 93.8％
Net Income(Quarterly) 334 3.0％ 414 2.7％ 123.9％ 434 95.6％
EBITDA※ 724 6.4% 854 5.5％ 118.0％ 896 95.3％
Dividend per share (yen) 7.20 8.80 +1.60 －

Total dividend 71 88 +17 －
※ EBITDA:営業利益+減価償却費

Balance sheet: Financial Results for the Fiscal Year Ended Feb 2017
Change of
Fiscal Year Fiscal Year
Ended Feb 2016 Ended Feb 2017
amounts year on Main causes of changes
（Unit: JPY Millions) year (YoY)
Current assets 4,791 5,359 568

Cash and deposits 2,324 2,056 ▲268 Acquisition of securities for investment
Accounts receivable 2,401 3,201 799 Sales increase
Fixed assets 694 3,323 2,629

Software 173 256 83 Increase in-house production software
Investment securities 32 1,796 1,763 Stock acquisition through capital and business partnership
Establishment of a subsidiary in the U.S. and acquisition of
Subsidiaries 72 605 533 shares of Flier Inc. and other companies
Total assets 5,485 8,683 3,197

Current liabilities 3,246 4,576 1,329
Accounts payable 2,889 3,997 1,107 Sales increase
Short-term borrowings － 156 156 Borrowing for purchasing investment securities
Fixed liabilities 0 1,339 1,339 Increase in long-term loans and asset retirement obligations
Total liabilities 3,247 5,915 2,668

Increase in accumulated profit, exercise of stock
Total net asets 2,238 2,767 528 options, etc.
Fixed liabilities 5,485 8,683 3,197

Changes in sales share by business “We deliver more content for everybody to enjoy!”
Other
4,500 Game 4,312
Music/Videos 305
4,000
4,019 12
E-Book 3,790 303 70
248 7
3,500 3,410 112
6 72
78
3,076 57
9
3,000 2,820 24 2,786 43
12 82
2,558 57 11 10 87
2,500 18 99 92
105 3,924
2,000 3,636
3,456 （90.5%）
（91.0%）
3,205 （91.2%）
2,918
1,500 2,640 （94.0%）
（94.7%）（94.9%）
2,685
2,377 （95.2%）
1,000 （92.9%）
500
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Fiscal Year Ended February 2016 Fiscal Year Ended February 2017

Changes of expenses (breakdown) “We deliver more content for everybody to enjoy!”
（単位：百万円）
4,089
4,000 3,890 179
3,678
42
176
43
231 Others
205 117
3,500 54
225
60 Commissions, supplies,
rent, utilities, etc.
3,217 205
150
62
Amortization
148 140
3,000 2,939 57 93
expense
120 189 Software, creation of
2,667 2,646 55
188
139
files, server, etc.
Personal
2,500 2,436 116
109
38
112
41 148
110
expenses
179 Salaries and allowances,
183 113
37 Statutory welfare costs,
145 140
174 Welfare, etc.
104 98
2,000 140
3,232 3,457 Advertising
100 expenses
（80.4％） Affiliate advertising,
2,978 （80.2％） Publicity and advertising,
1,500 2,573 （78.6％） etc.
（75.5％） Fees,etc
2,313
2,090 2,069 （75.2％） Credit collection fees,
1,000 1,866 （74.1％）（74.3％） Viewing fees, etc.
（73.0％） Copyright
fees,etc
500 Copyright royalties,
Master license fee
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Causes of Changes ― Operating Profit “We deliver more content for everybody to enjoy!”
Narginal profit SGA

＋478 ▲376
Decrease Increase in
in sales copyright
fees
＋4,289 ▲3,901
Decrease in Increase in
service fees advertising
fees
+90 +28
▲126 ▲26
Operating profit 552
Increase in
personnel
Increase in
amortization ▲250 656 Operating profit
Fiscal Year Ended Feb 2016 expenses expenses Increase in
other
（＋104） Fiscal Year Ended Feb 2017
factors

Details（March 2016 - February 2017） “We deliver more content for everybody to enjoy!”
Fiscal Year Ended Feb 2016 Fiscal Year Ended Feb 2017
(Unit: JPY Millions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Sales 2,558 2,820 2,786 3,076 3,410 3,790 4,019 4,312

E-book 2,377 92.9％ 2,685 95.2％ 2,640 94.7％ 2,918 94.9％ 3,205 94.0％ 3,456 91.2％ 3,636 90.5％ 3,924 91.0％
Music - Videos 105 4.1％ 99 3.5％ 92 3.3％ 87 2.9％ 82 2.4％ 78 2.1％ 72 1.8％ 70 1.6％
Games 18 0.7％ 11 0.4％ 10 0.4％ 12 0.4％ 9 0.3％ 6 0.2％ 7 0.2％ 12 0.3％
Others 57 2.3％ 24 0.9％ 43 1.6％ 57 1.8％ 112 3.3％ 248 6.6％ 303 7.5％ 305 7.1％
Sales cost/SGA 2,436 95.2％ 2,667 94.6％ 2,646 95.0％ 2,939 95.5％ 3,217 94.3％ 3,678 97.1％ 3,890 96.8％ 4,089 94.8％
Copyright fees, etc. 1,866 73.0％ 2,090 74.1％ 2,069 74.3％ 2,313 75.2％ 2,573 75.5％ 2,978 78.6％ 3,232 80.4％ 3,457 80.2％
Commissions, etc. 100 3.9％ 104 3.7％ 98 3.5％ 113 3.7％ 110 3.2％ 93 2.5％ 62 1.6％ 60 1.4％
Advertising expenses 140 5.5％ 145 5.2％ 140 5.1％ 148 4.8％ 139 4.1％ 140 3.7％ 150 3.7％ 117 2.9％
Personnel expenses 174 6.8％ 179 6.3％ 183 6.6％ 188 6.1％ 189 5.6％ 205 5.4％ 225 5.6％ 231 5.4％
Amortization expenses 37 1.5％ 38 1.4％ 41 1.5％ 55 1.8％ 57 1.7％ 54 1.4％ 43 1.1％ 42 1.0％
Others 116 4.5％ 109 3.9％ 112 4.0％ 120 3.9％ 148 4.3％ 205 5.4％ 176 4.4％ 179 4.2％
Operating profit 122 4.8％ 152 5.4％ 140 5.0％ 136 4.5％ 193 5.7％ 111 2.9％ 128 3.0％ 223 5.2％
Recurring profit 122 4.8％ 153 5.4％ 140 5.0％ 137 4.5％ 193 5.7％ 111 3.0％ 127 3.2％ 223 5.2％
Net income 75 3.0％ 97 3.5％ 88 3.2％ 72 2.4％ 120 3.5％ 61 1.6％ 84 2.1％ 148 3.4％
EBITDA 159 6.2% 191 6.8% 181 6.5% 192 6.2% 250 7.3% 166 4.4％ 172 4.3％ 265 6.2％
※ Percentages bracketed above shows each share of the total sales


4 Progress in e-Book Business
Business Position of The Company “We deliver more content for everybody to enjoy!”
The ebook distributor business model” started around 2006 when demand increased in the ebook market. As the
market expands and complicated procedures for publishers increases, it has become commonplace to farm out
these tasks to ebook agencies. The distribution usage percentage is increasing year by year
e-Book
Authors, copyright holders
distributor
eBook stores
Publishers １
Users
２
eBook stores run by publisher ３

eBook Market Forecast “We deliver more content for everybody to enjoy!”
The eBook market expanded 25% year on year to 158.4 billion yen in FY2015. The market for eBooks
and e-magazines is predicted to grow to 348 billion yen in fiscal 2020.
3,480
3,400
480
3,110 450
ebook(PC) 24％ 2,750 410

UP
ebook(mobile phone) 380
34％ 2,350
ebook(smartphone, tablet) UP
340
emagazine(all devices) 1,890
39％
UP 242
1,411 3,000
2,820
145
2,580
1,013 2,280
77 1,940
768
6 39 1,584
22
24 1,266
6 112 368 789
513 572
402 480
283 351
1 12 46 112 140
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
（Source: “e-book business survey report 2016” Impress Research Institute.,Ltd)

Service Model “We deliver more content for everybody to enjoy!”
The following is the service model of our ebook business.
❶ Distribution
Commission sales of ebooks for ebook stores
eBook store (On a file basis without provision of systems)
Ex） Rakuten kobo, Kinokuniya Company, Booklista
eBook store
Content distribution system
❷ Alliance/platform
Publishers
Users
Alliance
・Commission sales based on distribution systems
partner
eBook store system
・Jointly run ebook website with alliance partner

Alliance company
eBook store Ex）LINE, Rakuten Manga,Recruit Lifestyle,etc.
eBook store run ❸ Store management

by Media Do
Management of ebook website run by MediaDo to
distribute ebook contents

Sales Change by Service Model “We deliver more content for everybody to enjoy!”
Fiscal year Ended Feb 2016 Fiscal year Ended Feb 2017
(Unit: JPY Millions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Sales in the e-book business 2,377 2,685 2,640 2,918 3,205 3,456 3,636 3,924
❶ Distribution 959 40.4％ 1,111 41.4％ 1,054 39.9％ 1,139 39.0％ 1,287 40.2％ 1,408 40.7％ 1,413 38.9％ 1,417 36.1%
❷ Alliance / platform 1,084 45.6％ 1,227 45.7％ 1,238 46.9％ 1,418 48.6％ 1,549 48.3％ 1,673 48.4％ 1,847 50.8％ 2,137 54.5％
❸ Store management 333 14.0％ 346 12.9％ 347 13.1％ 360 12.4％ 368 11.5％ 374 10.8％ 374 10.3％ 369 9.4％
※ Percentage of total sales in e-book business
❶ Distribution
Sales increased slightly due to winter campaigns and promotional events led by publishers.
❷ Alliance / platform
Sales in the existing large bookshops continued to increase in Q4, supported by newly developed alliances.
❸ Store management
• The level of sales remained the same as Q3 (the previous quarter).

e-Book Copyright Fee Trends “We deliver more content for everybody to enjoy!”
“Alliance (Green)” indicates that the copyright fees rate decreased in Q4 due to sales from initial system development of new projects.
On the other hand, “Distribution (Red)” representing the copyright fees rate purely from content increased slightly.
100.0%
88.8% 88.7% 90.7%
87.2% 87.0% 88.5% 89.8%
90.0% 86.0%
80.3% 78.1%
80.0% 76.0% 78.9%
75.2% 75.6% 76.1%
74.0%
78.2% 79.6%
70.0% 75.6% 78.9%
74.1% 75.2% 74.9% 75.1%
60.0%
50.0%
37.0% 37.0% 37.9% 38.2%

40.0% 33.8% 35.1%
32.5% 32.1%
30.0%
20.0%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Copyright fees rates(E-book) Distribution Alliance Store management

Number of Downloads (DLs) “We deliver more content for everybody to enjoy!”
The change in download (DL) volume of eBook contents through our system (included sample downloads)
(Unit: JPY thousand DLs)

350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
2013 2014 2015 2016 2017
※The above figure is the number of DLs through our distribution server "md-dc," and does not include duplicate contents purchased by more than one terminal
or any contents downloaded again after being deleted from the terminal.


Basic Policy of Growth Strategies “We deliver more content for everybody to enjoy!”
The direction of Media Do’s three business expansions
① ② ③
Business expansion in Distribution eLibrary
the domestic market expansion overseas expansion
Share expansion in the Global distribution of Content distribution in the
rapidly growing domestic excellent Japanese content new rental system
eBook market

Business Expansion to Grow More Multi-Layered “We deliver more content for everybody to enjoy!”
To accelerate business in Japan, while steadily expanding overseas and e-Library businesses
3. eLibrary expansion
eBook Distributor
to Realize Content Distribution on a Global Basis
• Launching MediaDo-initiated “Manga Discovery Sale” for overseas libraries
• Deciding to provide the e-library service to Teshio-cho, Hokkaido and Yahaba-cho,
＿ Iwate Prefecture as part of regional revitalization activities
2. Distribution expansion overseas

• Establishing/bolstering a scheme for global business expansion with Media Do International at the core
• Bringing the English translation service into full-scale operation in preparation for overseas manga sales
1. Business expansion in the domestic market

• Acquiring 100% ownership of Manganews, which runs comic review site “Manga HONZ” and comic information media
“Manganews”
• Taking over the business from Ultra Entertainment, which offers coloring and drawing of manga
• Launching e-book solutions service for “Jibun shoten” by Kodansha
Existing business
• Acquiring shares and ownership of e-book distribution giant Digital Publishing Initiatives Japan

Acquiring shares and ownership of Digital Publishing Initiatives Japan “We deliver more content for everybody to enjoy!”
Fully utilizing the strength of MediaDo and Digital Publishing Initiatives Japan in the e-book distribution business to promote business
development for expansion and revitalization of the entire publishing market
• e-Book distribution • Strength in comics

• e-Book distribution solutions • Forming alliances
eBookstore / eLibrary
Media Do
The Publisher
Reader
70.52%
Acquiring Shares
• e-Book distribution • Strength in texts

• Common industry infrastructure
Digital Publishing • Offering distribution services
Initiatives Japan
Company overview
Name: Digital Publishing Initiatives Japan Co., Ltd.
Name of representative: CEO Shin Niina
Business description: E-book distribution and e-book production support
Capital: ¥1,358,625,000 (as of March 31, 2016)
Date of establishment: April 2, 2012
Company history
September 2011 Preparatory committee for establishment of Digital Publishing Initiatives (temporary) was founded.
April 2012 Digital Publishing Initiatives Japan was established.
May 2012 Digital Publishing Initiatives Japan was founded by 16 shareholders (companies)―Innovation Network Corporation of Japan (INCJ),
Kodansha Ltd., Shueisha Inc., Shogakukan Inc., Dai Nippon Printing Co., Ltd., Toppan Printing Co., Ltd., Kadokawa Corporation, Kobunsha
Co., Ltd., Shinchosha Publishing Co., Ltd., Bungeishunju Ltd., Chikumashobo Ltd., Yuhikaku Publishing Co., Ltd., Impress Holdings, Inc., Keiso
Shobo , Hanmoto.Com and Heibonsha Ltd.
November 2012 Launching a distribution service of content digitalized through Urgent Contents Digitalization Project (Kin Digi)
July 2013 Acquiring all shares of digital content distribution giant Bitway from Toppan Printing
October 2013 Incorporating Digital Publishing Initiatives Japan and Bitway
May 2015 Launching operation of a shared bibliographic information system
May 2015 Launching print-on-demand agency business
November 2016 Picassol service-in
Fully utilizing the strength of MediaDo and Digital Publishing Initiatives Japan in the e-book distribution business to promote business
development for expansion and revitalization of the entire publishing market
For more details, please refer to our press release dated February 28, 2017 (http://www.mediado.jp/corporate/1429/)

Business expansion in the domestic market “Manganews” “We deliver more content for everybody to enjoy!”
• Acquiring all shares and ownership of Manganews in January 2017

• Manganews runs the famous comic review site “Manga HONZ” and comic information media “Manganews” edited by the
writers of Manga HONZ, providing information regarding comic books. Acquisition of Manganews is expected to bring in
its media advertising revenue.
“Manga HONZ”
A book review site introducing
“must-read” recommended items,
consisting of reviews by specially
selected readers including Mr.
Takafumi Horie (Horiemon) and Mr.
Yohei Sadoshima, where users can
find their favourite reviewers and
books meeting their tastes.
All new books, except for novels,
self-help books and IT specialist
books, are reviewed within three
months of their publication. Establishing an attractive
manga media with a
substantial pool of famous
and influential
reviewers/curators
“Manganews”
An information site consisting of news
articles about comic books both in Web and
app formats. Users can quickly and easily
gather information regarding Manga they are
interested in. The site allows users to
browse comments by official curators such
as Mr. Takafumi Horie and Mr. Yohei
Sadoshima, as well as other general users
who signed up for membership.

Business expansion in the domestic market “Ultra Entertainment” “We deliver more content for everybody to enjoy!”
• Taking over the entire business from Ultra Entertainment and establishing a company with the same name
• Enhancing the support scheme for overseas business expansion of domestic publishers through printing in full colour overseas comic books
that come mostly in color
• Achieving an extensive range of services intended for publishers and authors in the comic book field, which is one of MediaDo’s strengths
• Establishing a coherent system for the entire e-book distribution from content creation, distribution, sales and reading in order to allow
follow-up activities
Creation Distribution Sales Reading
Authors Publishers eBook eBook store Reader

agency
Coloring/drawing assistance
Media Do Promotional support
Providing information
about manga and books
Ultra Entertainment Manganews, Flyer
• The manga coloring/drawing work has gained a high reputation for its quality from authors and publishers.
• The coloring work covers numerous megahits such as “Dragon Ball” and “One Piece”.
• In the drawing assistance, offering full support for authors in their creative activities through assisting with
drawing and coloring of their work such as “Investor Z”

Business expansion in the domestic market “Jibun Shoten” “We deliver more content for everybody to enjoy!”
Providing systems necessary for e-Book distribution for “Jibun Shoten (My Bookstore)”, a service that Kodansha is
slated to launch in April, where individual users can quickly set up their own e-book stores by simply utilizing their
smartphones
Providing eBook selling system Bookstore End user
Providing
bookstore system
My shoten
Affiliate commission 10%
Buying books
Approximately
32,000 e-books Affiliate commission 10%
published by Kodansha
Providing
bookstore system
My shoten
• No cost is incurred for founding an original eBook store.

• When a sale is made, ‘affiliate coins’ worth 10% of the sale are given back to the shop-owner/user.
• After the launch, it is planned for authors and editors to open their own shops.
• In the future, the service is expected to cover books and digital content including videos and music of other publishers.

“Global Distribution Network from MDI (Media Do International)” “We deliver more content for everybody to enjoy!”
• Centering on Japanese content with a focus on manga, expanding worldwide the business model including eBook
store, eLlibrary and all-you-can-read service, based on the system platform, which is our competitive advantage
• Promoting sales boost of manga in major bookstores by going into full-scale operation of English translation services
for manga to utilize the overseas distribution network
European e-Book
agency
MD’s Own Children Picture eBook Platform
US eBook Stores
LINE Book 「kobo」
Rakuten Kobo
Distribution Amazon.com「kindle」
Publisher
Amazon「Comixology」
Publisher Publisher
Apple「iBooks」
Publisher
Japan
Content
Publisher Barnes & Noble 「Nook」
Publisher Publisher
Publisher

eLibrary expansion “We deliver more content for everybody to enjoy!”
• Offering a special discount sale of major manga in English such as “Attack on Titan” and
“Ghost in the Shell” as our own promotional campaign intended for overseas libraries
• As part of the regional revitalization project run by the local government, OverDrive Japan’s
e-library service will be utilized in the following two municipalities in fiscal 2017
<Topics of marketing activities> Apr. 2017

Teshio-cho,
• Providing a report on OverDrive Japan’s activities at e-
Library seminar hosted by Association for E-publishing Hokkaido
Business Solutions
• Organizing an e-book workshop with audio recitation in
collaboration with Bologna Children Picture Books Library
at Itabashi City Office May 2017 Start
July 14, 2015 Start
Yahaba-cho, Ryugasaki Public Library
Iwate Prefecture
April 1, 2016 Start
Library attached to National
University of Fukui
September 1, 2015 Start

Itako Public Library
May 31, 2016 Start

Manno Municipal library
November 1, 2016 Start
VIAX Co.,Ltd e-Library
Public University Corporate

library library library

Reference Date
Corporate Profile “We deliver more content for everybody to enjoy!”
Head office（Takebashi PALACESIDE Bldg ）
Trade Name MEDIA DO Co.,LTD.

Established April, 1999
Capital 912,189,750 yen（as of the end of Feb. 2017)
Board Members Chief Executive Officer Yasushi Fujita
Board Director Atsushi Mizoguchi
Board Director Osamu Yamamoto
Board Director Yoshiyuki Suzuki
Board Director Daihei Shiohama Nagoya technical office
Board Director Satoru Ito（Outside Board Member/Independent Directors）

Board Director Yukio Ito（Outside Board Member/Independent Directors ）
Standing Auditor Kazuyoshi Ohwada
Corporate Auditor Toshiaki Morifuji（Outside Corporate Auditor /Independent Auditors）
Corporate Auditor Kazuhiro Hori
Corporate Auditor Shigeru Tamura
Tokushima kito Office
# Of Employees 164 （permanent 134, part-time 30 /（as of the end of Feb. 2017)
Head Office 5F PALACESIDE Bldg., 1-1-1 Hitotsubashi Chiyoda-ku, Tokyo, Japan

Nagoya office 9F Nagoya marunouchi Heiwa Bldg., 3-5-10 marunouchi Naka-ku, Nagoya Aichi, Japan
Tokushima Office 5-23 Iwatsushi Kitouwamuda Naka-chou Naka-gun, Tokushima, Japan
US subsidiary 12676, Torrey Bluff Drive Apt.244, San Diego, CA 92139
(MDIA DO international, Inc.)
Media Do International（San Diego)

Reference Date
Performance prospects of Digital Publishing Initiatives Japan “We deliver more content for everybody to enjoy!”
As announced in “Complete acquisition of ownership of Digital Publishing Initiatives Japan” dated March
31, 2017, the procedure for ownership acquisition has been completed. The expected performance
thereof for the January-to-March quarter of 2017 has been confirmed and is reported as follows.
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
Mar.2014 Mar.2015 Mar.2016 Mar.2017
(Unit: JPY Millions) (Result) (Result) (Result) (Forecast)
Sales 4,903 11,743 14,636 20,069
Operating profit △1,017 △212 625 1,065
Recurring profit △1,015 △202 625 1,066
Net income △1,093 △282 774 1,105

Forward-looking Statements and Accounting Audit
Any information and materials provided to you in this Presentation contain so-called “forward-looking statements”. This information shall be the statements based on current expectations, forecasts
and assumptions involving certain risks and shall be subject to known and unknown uncertainties which may cause actual results, performances or events to differ from those expressed or described
in such statements, among other things, domestic and international economic conditions, including but not limited to general business conditions and market conditions, fluctuation of interest rates
and currency exchange rates.
Hereafter, we shall not be obliged to update or adjust all or any part of the “forward-looking statements” contained herein to reflect any new information or any new events at any time.
In addition, the materials provided herein may contain unaudited financial information and we do not make any warranty with regard to the accuracy and completeness of the information. Therefore,
we suggest you should not fully rely on the information contained herein when making an investment or other business decision.

Annual Report Media Do

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Annual Report Media Do

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Financial Results for Full Year of the Fiscal Year Ended Feb.

2 Highlights of the Year Ended February 2017

3 Review of the Year Ended February 2017

4 Progress in eBook business

5 Strategies for Future Growth

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 1

2 Highlights of the Year Ended February 2017

3 Review of the Year Ended February 2017

4 Progress in eBook business

5 Strategies for Future Growth

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 2

Business Model “We deliver more content for everybody to enjoy!”

Digital distribution of copyrighted works

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 3

Mission “We deliver more content for everybody to enjoy!”

We deliver more content for

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved.

2 Highlights of the Year Ended February 2017

3 Review of the Year Ended February 2017

4 Progress in eBook business

5 Strategies for Future Growth

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 5

Operating profit：223million yen（up 63.0％ YOY）

Full Year 2017

Operating profit：656million yen（up 18.9％ YOY）

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 6

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 7

Change in sales “We deliver more content for everybody to enjoy!”

1996: Established YK Fuji-Techno in Nagoya-shi

2014: Relocated the Head Office from Nagoya to Tokyo in August 実績

Developed ebook business for smartphones faster than others 4,086 2Q

ebook business started 3,000

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 8

YoY comparisons (Full-Year) Comparisons with Full-Year Result Forecasts

(Unit: JPY Millions) (Unit: JPY Millions)

（Results in the （123.9%） 414

Achievement compared with 3Q financial forecasts (result)

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 9

Dividend “We deliver more content for everybody to enjoy!”

※ Details will be determined at the board meeting on April 26, 2017

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 10

2 Highlights of the Year Ended February 2017

3 Review of the Year Ended February 2017

4 Progress in eBook business

5 Strategies for Future Growth

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 11

Fiscal Year Ended

Sales 11,242 100.0％ 15,532 100.0％ 138.2％ 15,000 103.6%

E-book 10,621 94.5％ 14,223 91.6％ 133.9％ − −

Recrring Profit 553 4.9％ 656 4.2％ 118.8％ 700 93.8％

Net Income(Quarterly) 334 3.0％ 414 2.7％ 123.9％ 434 95.6％

EBITDA※ 724 6.4% 854 5.5％ 118.0％ 896 95.3％

Dividend per share (yen) 7.20 8.80 +1.60 －

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 12

Current assets 4,791 5,359 568

Fixed assets 694 3,323 2,629

Total assets 5,485 8,683 3,197

Total liabilities 3,247 5,915 2,668

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 13

(Unit: JPY Millions)

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 14

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 15

Narginal profit SGA

Copyright © MEDIA Do Co.,Ltd. All Rights Reserved. 16