T E A M 2 : C H R I S T I A N W O L F E R - I O S I F M A N A S H I R O VY E N P H A N - C O L I L L A G U Z M A N - L E A V L I G E N 1

Delight and Impact the World

China

:DeHUA

“Our vision is to provide Chinese artists and readers

with a unique Japanese software to professionally produce and access high

quality comics.”

- DeHUATeam.

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Customers

China

DeNA Competitors

Industry

:DeHUA ‘Inspire and Empower Comic Lovers’

Vision/Value Proposition

DENA’S DNA: EMBRACING NEW CHALLENGES

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Company Profile

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Strengths• Increasing investment

• Joint-venture partnerships

Weaknesses• Transparency

• Many restrictions and prohibitions• Counterfeit

MARKET OPPORTUNITY Digital Publishing in China

• Internet population : 557 million mobile out of 649 million (2014)

• Chinese e-book sales: +78,2%

Comics

• Japanese manga comics sales +25% (2014), 800 titles

• Worldwide sales: 30 million comics for Attack on Titan

• Digital manga: ¥57.4 billion or $465 million in 2012

Consumer trends• Urbanization in China stimulates

consumption and development

• Target group: 15-24 (200 million)

• Youth trend: Increase in consumption of anime, comics and video games made in Japan

• Market entry mode: Joint Venture with Comicfans

Risks• Hard to find compatible partner

• Has to be very transparent to Chinese government/competition

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CURRENT PROBLEMS AND SOLUTIONS

Unattractive layouts of online libraries

Strong Competition(U17, Comicfans)

Limited Choices

IllegalWebsites

Censorship and Restrictions

DeNA Strenghts and Skills

Joint Venture withComicfans

Sourcing of Local Talent

CredibiltyThroughNintendo

Offering International Experience

Presence in Shanghai

DeNA’s Customer Base

Exclusive and Local Content

Unpopular DeNA Games

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New Product/Service

:DeHUA ‘Inspire and Empower Comic Lovers’

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BUSINESS MODELKey Partners

• Nitendo• Local Chinese

Publishers

Key Activities

• Promote local artists

• Attract readersand game players

• Solving customerproblems

• Editing customers' products

• Produce DeNA's exclusive comics

Value Proposition

• No Advertisement

• JapaneseSoftware

• High QualityProducts 'e-books’

• DeNA Games' Comics

Key Ressources

• Brand• Partnership• Employees

Costumer Relationships

• TechnicalAssistance

Channels

• Website• Mobile App

CustomersSegments

• Artists• Readers• Young Educators• Game Players

Cost Structure• Technology and Product

Development• Website and Mobile App

Hosting

• Sales and Marketing• Salaries

Revenue Streams

• Premium Subscriptions• Free Trial

MARKETING & GROWTH STRATEGYMARKETING 5-P

Product• High-quality, Chinese themes, Japanese software

Promotion• Anime Magazines, Journals, Digital Marketing, Public

Ads, Events, Contests and Awards,WeChat

Place • Website,mobile phones, tablets

Price• Memberships $4.13 (20 Chinese yuan)

People• Local Artists, employees

GROWTH STRATEGIES FOR 3 YEARS

• ComicFansJoint Venture

• Content Development• Brand Establishment• Operation Improvements

Scalability

• Anime• Movies • Merchandise

Diversification

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COMPETITION

Indirect

Major web seller• Amazon• Dangdang• Jingdong

Printing groups• HeshanYatushi Printing Co., Ltd.• Toppan Printing Co., (Shenzhen) Ltd.• C&C Joint Printing Co. (H.K.) Ltd.• Hunan Publishing Investment • Beijing Shengtong Printing Co. Ltd.

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Direct

Foreign platforms• Mangafox• Mangareaders• Batoto

Local• U17.com• Comicfans

TEAM & KEY STAKEHOLDERS

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IosifManashirov

Customer Relationship ManagerBackground in International Economic Relations

Christian Wolfer:

Industry Analyst

1-year experience in Japan

GuzmanColilla

Finance Manager

Founder of Allic Ski Company

Lea Vligen Communication Manager

Background in Architecture and Communication System in Engineering School

Eve Phan: Project Manager

Vice President of Hult SF Net Impact

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WER

HIGH

LOW

INTEREST HIGHLOW

GovernmentDirectors

Artists

Competitors

Readers

Employees

FINANCIALS & ASSUMPTIONSOBJECTIVES FOR 3 YEARS

• Non-financial

– Achieve industry recognition for providing quality Internet services

– Publish 500,000 (1st ), 900,000 (2nd), 1,000,000 (3rd) copies with various genres

– Exceed the competition by making customers feel valued within a friendly environment

• Financial

– Increase sales revenues by 30% (2nd); 50% (3rd)

– Reduce expenses by 15% (2nd); 30% (3rd)

Estimated numbers

Year 1 Year 2 Year 3

Total Customers

2,500,000 3,000,000 4,000,000

Total Revenues($)

120,000,000 160,000,000 200,000,000

TotalExpenses($)

1,000,000 850,000 700,000

Net Profits($)

119,000,000 159,000,000 199,000,000

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Target Group (15-24 years): 200,000,000

Mobile Internet Subscriptions:80% of users

Population of Reading: 10%

Estimated Market Share: 15%

INVESTMENT

• Capital: $1,000,000

• Market Entry: Local Partnership and Extending Presence of DeNA China

• Major Investors: DeNA China and Local Partners

• Allocation of Capital – Salaries

– Partnership

– Marketing

– Technology and product development

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REFERENCESCountry Reports China. (2015). China Country Monitor , 126.

Asia Monitor: China & North East Asia. (2014). Asia Monitor: China & North East Asia Monitor , 21 (4), 112.

Xinhua (2015, November 2). China, Japan, South Korea vow to deepen cooperation on regional issues.

Businesses urged to work online and off. (2015, September 29). Retrieved November 4, 2015. China GDP Annual Growth Rate | 19892015 | Data | Chart | Calendar. (2015, October 19). Doing

Business in China: 2014 Country Commercial Guide for U.S. Companies. (2014).

The Publishing Industry in China: Regulatory Nightmare or Niche Market Opportunity? China Briefing News. (2015, June 23).

Consumer Lifestyles in China. (2015, July 16). Euromonitor International.

Ease of Doing Business in China. (2015). Worlrevolution. Marketing d Bank Group.

Hellstrom, M. (2008). A second cultural Week, 31(34), 37.

China's digital publishing industry grossed 55bn dollars in 2014 - official. (2015, Jul 15). BBC Monitoring Asia Pacific.

QIU, J., & LIN, R. (2013). New Trends among Young Chinese Consumers. SERI Quarterly, 6(1), 22-31.

DeNA Company.(2015). Summary of Key Questions and Answers From Earnings Results Briefing for Q1 FY2015.

Wright, K. (2015, June 23). The Publishing Industry in China: Regulatory Nightmare or Niche Market Opportunity? - China Briefing News.

Huang, X., & Hao, T. (2014). System of digital publishing policies and regulations in China. Library Hi Tech, 32(3), 397-408. doi:10.1108/LHT-06-2013-0082.

Imports of goods and services (% of GDP). (n.d.).

Johnston, Rich (2014): „French Comics In 2013 - It's Not All Asterix. But Quite A Bit Is. - Bleeding Cool Comic Book, Movie, TV News“. Bleeding Cool Comic Book, Movie, TV News. Abgerufen am 19. 10. 2015.

YOSHIOKA, K. (2014, December 15). Local artists, Japanese publisher work hand in hand to expand manga industry in China - AJW by The Asahi Shimbun.

Chine-Japon : Le « dégel » ? (2014, November12).

Comicfans.net,. (2015). About US——Comicfans Culture. 14

Q & A15

FREQUENTLY ASKED QUESTIONS1. How fast will DeNA be able to return their investments?

2. How would you manage the content development? Is it possible to publish 500.000 copies in the first year?

3. How would you deal with the established competition? What are DeNA’s competitive advantages ?

4. Do you think that ComicFans or other local companies will agree to partner with DeNA?

5. What is the best and the worst-case scenario?

6. How would you manage long-term growth?

7. How likely is it that political tensions between China and Japan will affect your business?

8. Who are your target customers? How are you going to attract customers in the first year?

9. Why would people pay for your product while other competitors provide similar products for free?

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STAKEHOLDERS ANALYSIS

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Keep satisfied:ShareholdersGovernmentCustomersBossSenior executivesProspective customersAlliance partners

Manage closely: Future recruitsThe communityThe press

Monitor:SuppliersThe publicTrades associationsInterest groups

Keep informed:TeamCoworkersAnalystsLenders

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WER

HIGH

LOW

INTEREST HIGHLOW

CONSUMER TRENDS IN CHINA

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DENA’S RESPONSIBILITY TO SOCIETY

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ANIME 2015 WINTER POLL AND DEMOGRAPHIC RESULTS

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