Mobile internet is becoming "the New Japan as No1". Keynote address at AVCJ's Annual Private Equity and Venture Forum Japan 2014

1. The New Japan as No1
- Mobile and Beyond
GLOBIS CAPITAL PARTNERS
Shinichi (Shin) Takamiya
Partner/Chief Strategy Officer
GLOBIS Capital Partners
Email: s-takamiya@globis.co.jp
June 2014

2. Partner/Chief Strategy Officer,
GLOBIS Capital Patners
Board Representative:
nanapi, Kayac, Pixta, Beyond, Lancers, Viibar,
and Mercari etc
Shinichi (Shin) Takamiya
GLOBIS CAPITAL PARTNERS 1
and Mercari etc
Track Record:
iStyle, Shimauma Print System, and Aucfan etc
BA in Economics from University of Tokyo
(graduation thesis with Honor's Award)
MBA from Harvard Business School
(Second Year Honor)

3. 1996 GLOBIS Incubation Fund JPY0.54B
1999 Apax GLOBIS Japan Fund JPY20B
2006 GLOBIS Fund III JPY18B
2014 GLOBIS Fund IV JPY11.5B
Capital
Overview GLOBIS Capital Partners
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People
• GLOBIS University, Graduate
School of Management,
• GLOBIS Management School
• GLOBIS Organization Learning
Knowledge
• GLOBIS MBA Series, best
selling MBA text books
• G1 Summit and Aska
Conference
• Research institute

4. 8%
Japan Struggled During the “Lost 2 Decades”
Real GDP
Growth Rate (%)
Lost 2 Decades
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(6%)
(4%)
(2%)
0%
2%
4%
6%
'80 '85 '90 '95 '00 '05 '10
3
Source: IMF

5. 15,000
17,500
2.3%
2.5%
3.0%
2.0%
2.5%
3.0%
3.5%
… However, Re-Growth in the Last 2 Years
Quarterly Real
GDP Growth Rate (%)
Nikkei Stock Price
Performance
Abe’s era
(JPY)
x1.7
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7,500
10,000
12,500
12/712/912/1213/313/613/913/1214/314/6
-0.2% -0.3%
0.1%
1.2%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2012
3Q 4Q
2013
1Q 2Q 3Q 4Q
2014
1Q
4
Source: IMF, Cabinet office, Yahoo
-0.3%
2012
3Q 4Q
2013
1Q 2Q 3Q 4Q
2014
1Q 2Q

6. “Abenomics” Stimulating Growth
1st Arrow
Monetary
Policy
• 2% inflation target
• Radical quantitative easing
2nd Arrow
“Abenomics”
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5
2nd Arrow
Fiscal
Policy
• Expansion of public investment
• Buying government bonds
3rd Arrow
Economic
Growth
• Corporate tax decrease
• Accounting standard reform
• Maximize working population
• Improve mobility of human resources

7. 13.5%
7.6%
10%
15%
Mobile Internet as “The New Japan as No1”
Real GDP
Compound Annual Growth Rate (%)
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0.9% 0.6% 0.4%
-0.4% -1.2% -1.6%
-3.7% -4.4%(5%)
0%
5%
Internet
Services Mobile
Communication
Retail
Electric
Machinery
Other
IT
Transportation
Steel
Transport
Machinery
Wholesale
Construction
6
Note: Compound Annual Growth rate from 2005 to 2011
Source: Ministry of Internal Affairs and Communications
Average -1.0%

8. The Most Attractive Mobile Market in the World
Mobile
Contents Market 8.5B 6.8B1
>
1.2x
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1 Calculated based on global digital goods market size and
U.S. market share among global mobile contents market
Source: Mobile Contents Forum, Deutsche Bank, ResearchMoz,
ITU - ICT Statistics, United Nations, IMF and GCP analysis
Contents Market
Mobile Contract
Population
GDP
120M 330M
>2.7x
127M 310M
>2.4x
6.0T 15.7T
>2.6x

9. 10 Years Ahead - Long Going History
1999
Japanese
developers
15 years
2007 2014
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NTT docomo
“i-mode”
iPhone
1st generation
leading the
global market
7 years

10. 2.1
11.9
Big Fish Casino
(Big Fish Games)
Puzzle & Dragons
(GungHo Online)
Sophisticated Users
Nurturing Unique Services
Highly Profitable Users
(Example of Games)
Sophisticated and Profitable Users
Monthly Average
Revenue per User (USD)Coupons/CRMCommerce
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0.2
0.8
1.3
2.1
0 5 10 15
Zynga Poker
(Zynga)
Candy Crush
Saga (King)
Clash of Clans
(Supercell)
(Big Fish Games)
Note: April 2013 – March 2014
Source: Superdataresearch.com
9
Real Payment E-Ticketing

11. Carrier Billing
Transaction Fee
6.0%1 35.0%2
4G
20.7% 9.8%3
Mobile Carriers Building the Cornerstone
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4G
Penetration
20.7% 9.8%3
Mobile Data
Transmission Speed
3.2Mbps 2.1Mbps3
Developer
Support
SDK, OS
development
subsidy
-
10
1 Epsilon (Payment agency handling 3 carrier’s settlement)
2 AT&T, 3 Average of U.S., UK, Germany, Australia
Source: bango, mobiThinking, CISCO VNI Mobile

12. 318
250
300
350
Accessible IPO Market
Median Market Cap at IPO at Small Cap Markets (2013)
(USD M)
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55
0
50
100
150
200
TSE Mothers NASDAQ
Source: NASDAQ, Bloomberg
11

13. 32.0x
Highly Attractive IPO Market
Liquidity and Valuation at IPO
TSE
Mothers
Turnover Offering PER Opening PER
19.6x775%
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16.9x
18.9x
12
Mothers
SGX
Hong Kong
Note: Turnover(2013), PER (2012)
Source: TSE report
13.6x
13.3x
59%
209%

14. 1,604
1,500
2,000
Great Fund Raising Environment
Name Sector $M
Akatsuki Game 14.0
Mercari C2C market 14.5
Example of Sizable Private FinanceVC Investment
(USD M)
+84%
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872
0
500
1,000
2009 2013
13
Gunosy News App 12.0
Antenna News App 20.0
gumi Game 19.0
Metaps AD 10.0
Note: Mobile internet related financing deal in 2013-2014
Source: VEC, News, GCP

15. Investment
period
% of Serial or
Seasoned
Management
# of
investment
Apax Globis 1999 -
47
Rise of Quality Entrepreneurs
25%
GLOBIS CAPITAL PARTNERS
Apax Globis
Japan Fund
1999 -
2006
47
Fund
IIl & IV
2006 -
2014
57
14
49%
25%

16. “Beyond i” IoT is the Next Big Thing
The Next Big Thing “Internet of Things (IoT)”
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17. Summary: The New Japan as No1
• Abenomics stimulating the re-growth of Japan
• Mobile internet “The New Japan as No1”
− Driving Japan’s growth
− Making Japan the most attractive mobile internet market in the world
• Japan has become a great nurturing ground for innovative
and unique mobile services
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and unique mobile services
− 15 years of long history
− Mobile carriers’ initiatives
− Sophisticate users
• Highly accessible and attractive capital markets
• Rise of quality entrepreneurs and startups
• “Beyond i”: Japan’s opportunity lies beyond mere mobile
internet - “Internet of Things (IoT)”
16

18. GLOBIS CAPITAL PARTNERS 17