ZAPPALLAS

At the time when the company was founded, its name was Cyber-Biz Inc., but in April 2001 its name was changed to “ZAPPALLAS, INC.” It is a combination of “zap = lively” and “pallas = the goddess of wisdom and crafts,” and was decided upon through an in-house gathering of ideas. It is a name that was borne from staff members’ desire to make the company grow rapidly, amidst business expansion, through not just technology, but also creativity.

Our main business is comprised of “digital contents business,” which involves supplying “fortune-telling,” “decome” and “game” contents on cell-phones and PCs, and “commerce business,” which consists of mobile commerce, such as selling “cosmetics,” “brand products” and “food items” on cell-phones, and sales of cell-phones. We are also developing “other business,” such as displaying company advertisements and developing systems for cell-phones.
By approaching customers as “individual customers,” and providing valuable contents and products to suit each individual customer, we aim to build long-lasting relationships.

The services and products that we supply are mainly used by many people from the so-called “F1 segment,” which is made up of women between the ages of 20 and 34. The “F1 segment” is generally said to have a high appetite for consumption, and for us too, they are excellent customers. Also, by analyzing usage situations for the various contents that customers are using, we can see which services are favored be certain which kinds of customers. Using this information, we are then able to create additional contents and offer extra services that customers will enjoy.
Furthermore, because the “fortune-telling” and “decome” services that we provide are services that can continually be used by customers over relatively long periods, our ability to secure a stable revenue base could also be described as being one of our strengths.

Roughly ten years have passed since the Internet first become available for use through cell-phone, and as a result of increased high-functionality and improvements in transmission speeds in cell-phones units during that time, services that can be used through cell-phones, such as contents and shopping, have spread dramatically.
Among these, the markets for things that we supply, such as “mobile contents” and “mobile commerce,” have seen increases in sales year by year, along with increases in the number of users of “packet fixed-rate systems.”
Furthermore, in the mobiles contents market, along with advances in cell-phone units, new fields such as “decome” and “e-books” have emerged, and market expansion are expected in future as well.

We recognize profit returns to shareholders as being an issue of utmost importance, and our basic policy is to provide stable dividends while also securing the internal reserves required for strengthening company quality and preparing for active business evolution. Specifically, we aim to provide a dividend ratio of roughly 30 percent of non-consolidated net income, and we hope to give consideration to all things such as enhancing internal reserves, business investment and management performance in all terms, and to examine them aggressively.

(Unit : Yen)