Slide 1: NEXT Co., Ltd. Second Quarter Financial Results FY March 2013
NEXT Co., Ltd. TSE 1st section 2120 Annual Report of Financial Statement Second Quarter of the Year Ended March 31, 2013 (April 2012 to September 2012) Starting from the quarter under review, the financial results presentation is made using quarterly numbers instead of cumulative quarterly numbers O
Slide 2: Contents
2nd Quarter Financial Results for the Year Ending March 31, 2013 ・・・PP.2-10 The Financial Results for the Six Months Ended September 30, 2012 as Compared with the Business Forecast for the First Half of FY 03/2013 ・・・PP.11-13 Highlights of the Financial Results for the Second Quarter of the Year End
Slide 3: 2nd Quarter Financial Results for the Year Ending March 31, 2013
NEXT Co., Ltd. TSE 1st Section 2120 2nd Quarter Financial Results for the Year Ending March 31, 2013 July 2012 to September 2012
Slide 4: Today's Points
2nd Quarter Financial Results for the Year Ending March 31, 2013 Today’s Points Recorded a year-on-year growth in sales and profit due to the strong performance of the real estate information services business Sales : 2,763 million yen (up 12.2% year on year) Operating profit : 420 million yen (up 6
Slide 5: Trend of major indicators
2nd Quarter Financial Results Trend of major indicators for the Year Ending March 31, 2013 ！ Trend of consolidated business performance Check Sales (million yen) Operating profit (million yen) Net profit (million yen) ＋12.2％ ▲5.8％ ▲85.8％ ▲59.8％ ＋63.3％ ＋166.5％ FY03/2011 FY03/2012 FY03/2013 FY03/2011
Slide 6: Trend of Operating P/L (simplified version)
2nd Quarter Financial Results Trend of Operating P/L (simplified version) for the Year Ending March 31, 2013 Point Sales grew 12.2% and operating profit rose 63.3% while SG&A expenses increased 5.9％ 【Accumulated 【Accumulated 【Quarterly】 【Quarterly】 Percentage Percentage Change Total】 Total】 Unit: mi
Slide 7: Trend of cost to sales ratio
2nd Quarter Financial Results Trend of cost to sales ratio for the Year Ending March 31, 2013 Made aggressive investments for branding promotion. Point Operating profit margin rose by 4.8 percentage points thanks to sales growth Amount Breakdown Unit : Million yen Cost and other SG&A 5.1pt expenses
Slide 8: Trend of sales by service
2nd Quarter Financial Results Trend of sales by service for the Year Ending March 31, 2013 Point The “HOME’s Rental and Real Estate Trade” business, the main business line, and the New Houses business showed a strong performance 【Accumulated 【Accumulated 【Quarterly】 【Quarterly】 Percentage Percentage
Slide 9: Trend of P/L by segment
2nd Quarter Financial Results Trend of P/L by segment for the Year Ending March 31, 2013 Local information services business and the “Others” business achieved significant profit Point improvements Unit: Real estate Local information Year-on-Year services Others Million yen information service 【Quar
Slide 10: Consolidated balance sheet and goodwill
2nd Quarter Financial Results Consolidated balance sheet and goodwill for the Year Ending March 31, 2013 Point Net assets per share grew 5.3% year on year while interest-bearing debt remained zero Sep 30, 2012 Percentage Unit: Million yen Mar 31, 2011 Change Main reasons for change End FY03/2012 cha
Slide 11: Consolidated cash flow
2nd Quarter Financial Results Consolidated cash flow for the Year Ending March 31, 2013 The balance of cash and cash equivalents as of September 30, 2012 stood at 4,112 Point million yen; 6,114 million yen if time deposits are included FY03/2012 FY03/2013 FY03/2012 Unit: Million yen Change Main item
Slide 12: Financial Results vs Business Forecast for First Half FY 03/2013
NEXT Co., Ltd. TSE 1st Section 2120 The Financial Results for the Six Months Ended September 30, 2012 as Compared with the Business Forecast for the First Half of FY 03/2013 (released on August 7, 2012)
Slide 13: Trend of Operating P/L vs forecast
The Financial Results for the Six Months Ended September 30, 2012 Trend of Operating P/L (simplified version) as Compared with the Business Forecast for the First Half of FY 03/2013 Sales exceeded the forecast by 2.4% with operating profit and net profit exceeding the Point forecasts by 52.8% and 62
Slide 14: Trend of sales by service vs forecast
The Financial Results for the Six Months Ended September 30, 2012 Trend of sales by service as Compared with the Business Forecast for the First Half of FY 03/2013 The results for the first half of FY 03/2013 exceeded the business forecast, driven mainly Point by the Rental & Real Estate Trade busin
Slide 15: Highlights of the Financial Results for the Second Quarter
NEXT Co., Ltd. TSE 1st Section 2120 Highlights of the Financial Results for the Second Quarter of the Year Ending March 31, 2013
Slide 16: Topics
Highlights of the Financial Results Topics for the Second Quarter of the Year Ending March 31, 2013 Real estate information service The numbers of affiliated stores and properties posted online continued to grow Carried out a large-scale branding promotion initiative across the country 15
Slide 17: Domestic highlights: properties and affiliated stores
Highlights of the Financial Results Domestic highlights for the Second Quarter of the Year Ending March 31, 2013 Due to the positive effects of marketing programs (*), the numbers of objects posted online Point and affiliated stores continued to grow Number of objects posted FY03/2012 FY03/2013 500
Slide 18: Raise the profile of HOME'S and promote its use
Highlights of the Financial Results Domestic highlights for the Second Quarter of the Year Ending March 31, 2013 Implemented in the country’s major urban areas a large-scale promotion initiative demonstrating the “HOME’S” Point website’s appeal as the top Japanese real estate information site in the
Slide 19: Website visitor count and sales growth from branding
Highlights of the Financial Results Domestic highlights for the Second Quarter of the Year Ending March 31, 2013 Website visitor count and sales grew year on year, supported by the benefits Point of the branding promotion initiative Social media response HOME'S Rental & Real Estate Trade Growing pub
Slide 20: Progress against the Business Forecast for the Year Ending March 31, 2013
NEXT Co., Ltd. TSE 1st Section 2120 Progress against the Business Forecast for the Year Ending March 31, 2013
Slide 21: Progress against forecast: Operating P/L
Progress against the Business Forecast for the Year Ending March 31, 2013 Trend of Operating P/L (simplified version) Leaving the conservative business forecast unchanged until the portal site Point renovation’s effects become identified [Reference] FY03/2013 FY03/2013 In comparison to annual foreca
Slide 22: Progress against forecast: sales by service
Progress against the Business Forecast Trend of sales by service for the Year Ending March 31, 2013 Point All types of real estate information services performed better than the business forecast [Reference] FY03/2013 FY03/2013 In comparison to annual forecast FY03/2012 Unit: million yen 1H Annual F
Slide 23: Our FY 03/2013 second half initiatives
NEXT Co., Ltd. TSE 1st Section 2120 Our FY 03/2013 second half initiatives
Slide 24: Topics: second half initiatives
Our FY 03/2013 second half initiatives Topics Real estate information services Completed the renovation of the “HOME’S Rental & Real Estate Trade” portal site Held the “HOME’S EXPO,” strengthening the relationship with our affiliated stores Worked hard on our large-scale branding promotion initiativ
Slide 25: Completed renovation of HOME'S portal site
Our FY 03/2013 second half initiatives Domestic highlights Completed the renovation of the “HOME’S Rental & Real Estate Trade” portal site, Point renewing its functions for the first time in 10 years ！ Check Renovated the “HOME’S Rental & Real Estate Trade” portal site October 1, 2012: Renovation co
Slide 26: HOME'S EXPO with affiliated stores
Our FY 03/2013 second half initiatives Domestic highlights Held the “HOME’S EXPO” this year in Tokyo and Osaka, strengthening the relationship Point with our affiliated stores ！ Check 「HOME’S EXPO 2012」 Time and date: Tuesday, November 6, 2012, Osaka (opening 12:30 and closing 19:30) Tuesday, Novemb
Slide 27: Major branding promotion plan
Our FY 03/2013 second half initiatives Domestic highlights Plan to implement a major branding promotion initiative greater than that Point carried out in the first half of FY 03/2013 Part 1 from Sept 15 Part 2 from Nov 3 Part 3 from Jan 2013 26
Slide 28: Overseas highlights
Our FY 03/2013 second half initiatives Overseas highlights Point Aim to promote the greatly-expanded for-fee posting of property information ■Thailand ■China ■Indonesia 【HOME'S Thailand】 New Existing portal site 【RumahRumah】 New Focus point: Increase the number of properties posted online From Augus
Slide 29: FY 03/2013 Business forecast
Our FY 03/2013 second half initiatives Point Aim to achieve sales above the business forecast through our second half initiatives 1Q and 2Q results showed a year-on- year growth Left the business forecast unchanged conservatively FY 03/2013 Business forecast Aim to achieve sales above the business f
Slide 30: Company Credo and Business Principles
Company Credo and Business Principles Company Credo Altruism Our priority is making people happy. Everyone in the world: Consumers, Clients, Coworkers, Family, and so on… Corporate Philosophy (NEXT Group Vision) Create a society where everyone can attain comfort and happiness through continuing soci
Slide 31: Reference Materials
NEXT Co., Ltd. TSE 1st Section 2120 Reference Materials Reference Materials ・・・PP.30-52 Our Goal in Founding NEXT ・・・P.31 NEXT’s Service Offerings ・・・P.32 “HOME’S” Business Model ・・・P.33 Our Top Priority Challenges for the Year Ending March 31, 2013 ・・・PP.34-37 Renovation of the “HOME’S” portal site
Slide 32: Our Goal in Founding NEXT
Our Goal in Founding NEXT Eliminate the world’s “negatives” such as “worry,” ”dissatisfaction,” and “inconvenience” We at NEXT seek to provide all kinds of lifestyle services through the internet to help people in the world lead comfortable lives with peace of mind 31
Slide 33: NEXT's Service Offerings
NEXT’s Service Offerings About NEXT NEXT seeks to provide, through the internet, all kinds of lifestyle services related to not only “residential properties” but also “local community” and “medical services” in order to help people in the world lead comfortable lives with a peace of mind anytime any
Slide 34: HOME'S Business Model
“HOME’S” Business Model Point “HOME’S” business model: Fee structure based on the number of inquiries Customer NEXT (“HOME’S”) User Inquiry (Real-estate Rents & Transactions) View information Make inquiry ・Real estate broker Post property information ・Real estate (Real-estate Rents & management Tran
Slide 35: Our Top Priority Challenges
Our Top Priority Challenges for the Year Our top priority challenges Ending March 31, 2013 ！ Check Number one priority In Japan Enhance the “HOME’S” website Number two Overseas priority Put our business on a firm footing in the countries we have expanded into and consider new target countries Number
Slide 36: Concept of future business development: DB+CCS
Our Top Priority Challenges for the Year The concept of our future business Ending March 31, 2013 development Point Next Group’s strategy is to aim at becoming a global company with “DB+CCS” (*) Concept of “DB+CCS” ◆ Communication service ✔ Service enabling the user to become acquainted with people
Slide 37: Business growth scenario for HOME'S
Our Top Priority Challenges for the Year Business growth scenario for “HOME’S” Ending March 31, 2013 Promote a revenue expansion spiral through raising our property comprehensiveness and improving Po i n t the matching rate See Page 37 See Page 37 (i) Expand the affiliated (ii) Up-selling for detail
Slide 38: Attain an even greater number of properties
Our Top Priority Challenges for the Year In Japan: Enhance the “HOME’S” website Ending March 31, 2013 Achieve an increased number of properties efficiently, driven by Point function-based marketing business units Target Business unit Action points New affiliated store ・New affiliated store prospecti
Slide 39: Branding
Our Top Priority Challenges for the Year In Japan: Enhance the “HOME’S” website Ending March 31, 2013 Expanding the advertising budget from 2.7 billion yen to 3.1 billion yen – Stepping up our branding Point promotion efforts to attain a greater customer drawing capability Non-virtual Campaign event
Slide 40: Renovation of the HOME'S portal site
Renovation of the “HOME’S” portal site Scheduled to implement renovation of “HOME’S” portal site, starting from autumn 2012 Point on a timely basis. Aim to expand site user count and the number of inquiries Point 1.Maximize our SEO effect by a site integration 2.Broaden our user reach by enabling al
Slide 41: Site integration
Renovation of the “HOME’S” portal site Integrate our market segment-based sites and aim to maximize site visitor count by Point taking efficient SEO measures “HOME’S” now “HOME’S” after renovation Condominium Search Real estate Search Condominium Search Real estate Search Real estate Condominium Con
Slide 42: Horizontal search across property categories
Renovation of the “HOME’S” portal site Enable a horizontal search of all property categories, making it easy for the site visitor to Point search for residential properties of different property categories “HOME’S” now “HOME’S” after renovation Previously-owned Rental property property Rental proper
Slide 43: Unified functions and design
Renovation of the “HOME’S” portal site Point Raise the profile of the HOME’S brand on the back of its unified functions and designs “HOME’S” now “HOME’S” after renovation HOME’S rental HOME’S comprehensive top page HOME’S rental HOME’S real estate trade Difficult to know the individual sites are
Slide 44: Display information on same property in a single page
Renovation of the “HOME’S” portal site Display a set of information on a same property and building on a single page, seeking Point to enhance usability “HOME’S” now “HOME’S” after renovation Display a set of information in a single section Property information listings for properties Property i
Slide 45: Major Marketing Promotion Accompanying the Renovation
Major Marketing Promotion Accompanying the “HOME’S” Portal Site Renovation Step up our branding promotion initiative, and aim to achieve synergy Point with the “HOME’S” portal site renovation Social media Train advertising Raise the profile Radio of “HOME’S” Campaign advertising and promote its use
Slide 46: Overseas business development
Our Initiatives for the Year Overseas business development Ending March 31, 2013 Aim to provide multi-language-search-based comprehensible information site services offering Point integrated Asian real estate information ！ Overseas strategy concept: Check Start with the provision of real estate info
Slide 47: Pursue overseas businesses
Our Initiatives for the Year Pursue overseas businesses Ending March 31, 2013 Strive to run our businesses stably in countries we have already expanded into and to continue Point considering new target countries ■Current statuses and targets for countries NEXT has already expanded into ■Internet pen
Slide 48: Mid/Long-term goals
Our Initiatives for the Year The concept of our future business Ending March 31, 2013 development 【Corporate Management Metrics】 Mid/Long-term goals 1. Aim to achieve 25% operating profit margin 2. Improve productivity 3. Return of profits to shareholders through continuous dividend payments and inc
Slide 49: Additional information: sales by segments
Additional information Trend of sales by segmentsTrend of sales by segments. “HOME’S Real Estate Rents & Trade” trend of major indicators サービス別の売上高比較 「HOME’S賃貸・不動産売買」の地域別物件数と加盟店数 Previous year Current year FY03/2011 FY03/2012 Comparison FY03/2012 FY03/2013 Comparison 2Q(Apr-Sep) 2Q(Apr-Sep) Unit : p
Slide 50: Quarterly Operating P/L
Additional information Trend of Operating P/L <Quarterly> Quarterly consolidated statements of income Quarterly consolidated sales and operating profit and loss per segment FY03/2011 FY03/2012 FY03/2013 FY03/2011 FY03/2012 FY03/2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Sales 2
Slide 51: Real Estate Market Data
Additional information Real Estate Market Data 【Number of Apartments for Sales（annual）】 Source:Real Estate Economic institute Co.LTD 2006 2007 2008 2009 2010 2011 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Capital Region 74,463 61,021 43,733 36,376 44,535 44,499 1,819 3,918 3,462
Slide 52: Corporate profile
Corporate profile Company name NEXT Co., Ltd (TSE 1st Section: 2120) Representative President and CEO Takashi Inoue Established March 12, 1997 (Accounting year end: March) Paid-in capital 1,993 million yen, Number of shares outstanding: 18,781,200 shares (Number of the Treasury Shares: 12,030) Conso
Slide 53: Shareholder composition
Shareholder composition Point Decrease of 472 shareholders from March 31, 2012 to 2,908 shareholders Number of shareholders 2,908(As of September 30, 2012), Decrease of 472 from March 31, 2012 Major shareholders Directors of NEXT Co., Ltd. Rakuten Inc. (NEXT Co., Ltd. is an equity method affiliate o
Slide 54: IR Information Contact Details
IR Information Contact Details NEXT Co., Ltd. Business Planning Dept. Corporate Communications Group Phone +81-3-5783-3603 (weekdays 10:00 – 18:00) Contact Fax +81-3-5783-3737 E-mail ir@next-group.jp Company website http://www.next-group.jp/ (Japanese) http://www.next-group.jp/en/index.html (English