Slide 1: Full-Year Results FY 2022/9 Q4
LIFULL Co., Ltd. Full-Year Results IFRS FY 2022/9 Q4 (October 2021 – September 2022) Disclaimer The opinions and projections, etc. contained herein represent the judgment of LIFULL Co., Ltd. at the time this document was prepared. Please be aware that actual results may vary considerably due to vari
Slide 2: Index
Index 1. Main Points for FY 2022/9 Full-Year P 2 2. Review of FY 2022/9 P 3 3. Full-Year Financial Results P 5 4. Returns for Stakeholders P 11 5. Changes to Mid-Term Targets (FY 2025/9) P 15 6. FY 2023/9 Results Forecast P 35 7. Appendices P 39 8. IR Team Contact Information P 55
Slide 3: Main Points for FY 2022/9 Full-Year
Main Points for FY 2022/9 Full-Year FY 2022/9 Earnings Revenue ¥35.7 Billion YoY -0.4% Smooth progression along annual schedule with reduced revenue due to the discontinuation of HOME'S alliance partnerships and lower third-party advertising overseas Operating ¥0.16 Billion － In addition to increase
Slide 4: Review of FY 2022/9
Review of FY 2022/9 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3
Slide 5: Review of FY 2022/9
Review of FY 2022/9 Highlights Selective Focus on Main Businesses Successes & Results Domestic • Development of new features • Transfer of shares of YoY as of Sep. 30 for our transformation into a Clients Listings Super Hyper Assistant +2.5% +20% • Proactive promotion efforts Marketing support servi
Slide 6: Full-Year Financial Results
FY 2022/9 Full-Year Financial Results (October 1, 2021 – September 30, 2022) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 5
Slide 7: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Despite recent up-turns, lower consolidated and segment revenue in both HOME'S Services and Overseas YoY. Operating income increased due to reduced costs, sales of subsidiaries and an impairment loss in the previous FY. FY2021 FY2022 Change Change % Unit:
Slide 8: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS HOME'S Services has seen positive growth in recent months, but revenue remains negative YoY due to the discontinuation of some alliance partners. Profit in both HOME'S Services and Overseas lower YoY due to proactive growth investments. FY2021 FY2022 Change
Slide 9: Key Performance Indicators Client Network and ARPA
Key Performance Indicators Client Network and ARPA Our client network continues to progress smoothly in the custom-built, re-sale and investment markets, but the increase in clients and decrease in revenue for HOME'S Services have had a negative impact on ARPA. 12-Month Average 12-Month Average Clie
Slide 10: Condensed Statement of Financial Position and Goodwill IFRS
Condensed Statement of Financial Position and Goodwill IFRS Transfer of shares of LIFULL Marketing Partners and Fashiola. Goodwill increased ¥500 mil. from the acquisitions of Properati and Wasi and effects of the weak yen. Capital tie-up with Hash DasH Holdings in Feb. 2022 As of As of Change Chang
Slide 11: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS +¥1.4 bil. in the operating cash flow due to tax refunds for the reorganization of Mitula Group in the previous FY. +¥1.4 bil. in the investing cash flow from the sale of shares of LIFULL Marketing Partners and Kleding B.V. FY2021 FY2022 Change Main items Unit:
Slide 12: Returns for Stakeholders
Returns for Stakeholders Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 11
Slide 13: Shareholder Return
Shareholder Return Continuation of our basic policy. The proposed dividend for FY 2022/9 will be ¥2.25 (submitted to the General Shareholders' Meeting to be held on December 22, 2022) Consideration for Fiscal Year End impairment losses in the Changed to 80.0% Overseas Segment 6.00 Dividend per share
Slide 14: Share Buyback Program
Enriching Stakeholder Returns Share Buyback Program In addition to enhancing shareholder returns, we want to enable the flexible use of capital in response to changes in the business environment, comprehensively evaluate the current share price in light of business forecasts and ensure appropriate s
Slide 15: Personal Purchase of Shares by President and CEO
Personal Purchase of Shares by President and CEO, INOUE Takashi We have disclosed a release on the personal purchase of shares of LIFULL Co., Ltd. by our President and CEO, INOUE Takashi Please refer to the following release from Nov. 9, 2022 for more details Regarding the Purchase of Shares of LIFU
Slide 16: Revisions to Mid-Term Targets (FY 2025/9)
Revisions to Mid-Term Targets (FY 2025/9) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 15
Slide 17: Revisions to the Mid-Term Management Plan (FY 2025/9)
Revisions to the Mid-Term Management Plan (FY 2025/9) Revenue growth has remained largely flat after the adjustments to pricing (2019/10) and the COVID-19 pandemic. Therefore, we have adjusted our mid-term targets due to reflect our focused investments on primary services while scaling down or selli
Slide 18: New Mid-Term Management Plan for FY 2025/9
New Mid-Term Management Plan for FY 2025/9 Continue our policy of focus on revenue expansion and strive for consistent revenue growth. Drive growth to reach our highest profit level ever: 5.0 billion yen Representation of Revenue Growth Operating Income Improve Growth Rate by approx. 2 pt every year
Slide 19: Vision
The PA 1 LIFULL @, HOME’S VISION
Slide 20: Driving the value we provide to clients
We are driving the value (transactions) we provide to clients to become a more efficient platform for finding a new home Original Our Goal Exposure Exposure Discovery Discovery Consideration Power Up Consideration Inquiry Inquiry Viewings Personalizing user experiences Viewings and providing better
Slide 21: Super Hyper Assistant Overview of our New Services
SUPER HYPER ASSISTANT Overview of our New Services Focusing around the three pillars of Richer Listings, Search Assistance and Personal Support, we are working to improve user satisfaction and lead quality. Creating new, more powerful services and features to help everyone find the right home SUPER
Slide 22: How Super Hyper Assistant Helps Real Estate Professionals
How SUPER HYPER ASSISTANT Helps Real Estate Professionals Our individually-tailored services will boost conversion rates for our clients. Clients will be able to work more efficiently without having to spend too much time on understanding home-seeker needs which will same them money overall. Issues
Slide 23: Effects of Super Hyper Assistant Results in FY 2022/9
Effects of SUPER HYPER ASSISTANT Results in FY 2022/9 We are already seeing improved quality in leads and have received positive feedback from real estate companies with better conversion rates from LIFULL HOME'S (in-house research) Higher conversion rates More inquiries from from inquiries via seri
Slide 24: Progress in Becoming a Super Hyper Assistant
Progress in Becoming a SUPER HYPER ASSISTANT We are continuing to develop ourselves as a Super Hyper Assistant for home-seekers while also improving the quality of leads for real estate professionals to support users in finding the right place to live. FY 2022/9 FY 2023/9 Next Steps (Examples) Stand
Slide 25: Overseas Strategy
Overseas Strategy Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 24
Slide 26: Results Forecast and Overseas Growth Strategy
Results Forecast and Overseas Growth Strategy Expanding revenue through both our aggregation sites and real estate portals LIFULL CONNECT Revenue (EUR) Growth Drivers 42.4% Growth Continued Growth in CPC 1 Revenue from Fashiola (Sold in previous FY) Without regard to sold businesses for Aggregation
Slide 27: Growth in CPC for Aggregation Premium Advertisements
Growth in CPC for Aggregation Premium Advertisements In the previous FY, we successfully improved efficiency in real estate and cars verticals for better monetization of advertising. With further development of aggregation sites and campaign settings, we expect continued growth in CPC. Successful mo
Slide 28: Driving Growth in Real Estate Portals
Driving Growth in Real Estate Portals After reinforcing our sales resources with the acquisition of the Latin American portal network, Properati, we continue to bring in new clients and are utilizing new developments in Proppit to boost this growth. Property Management Tool for Real Estate Professio
Slide 29: Considering M&A Opportunities
Considering M&A Opportunities In order to further expand the enormous network of LIFULL CONNECT, we are continuing to consider further acquisitions of local real estate portals and support services for real estate companies. M&A in FY 2022/9 Latin American CRM for Real Estate Real Estate Portal Prof
Slide 30: Selective Focus
Selective Focus Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 29
Slide 31: Investment Policy for Additional Areas
Investment Policy for Additional Areas As we intensify our focus on LIFULL HOME'S and LIFULL CONNECT, we are limiting our investments in Regional Revitalization of rural Japan new initiatives. Investments up to FY 2022/9 Aim for Profitability Regional Revitalization • Reducing Teams 空き家バンク Limit • R
Slide 32: Approach to Promotion
Approach to Promotion We will be reducing our corporate branding to focus more on services in our core areas and increasing overall recognition of the LIFULL Group by developing our individual services CORPORATE Reduce TVCM 等 Search Site for Care Facilities for the Elderly Focus Kaigo SERVICE Improv
Slide 33: Actions in Investment Real Estate Listings
Actions in Investment Real Estate Listings We are moving forward with the combination of LIFULL HOME'S Real Estate Investment and the investment property site, Kenbiya, to increase market share and become Number One in the industry. RE Investment Become absolute Link Systems No. 1 in Result Ref. Inv
Slide 34: Achieving Our Mid-Term Targets
Achieving Our Mid-Term Targets Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 33
Slide 35: Buy-in Stock Option to Help Reach Our Mid-Term Targets
Buy-in Stock Option to Help Reach Our Mid-Term Targets We will release employee stock options in order to further motivate employees toward reaching our mid- term targets. Party Board Members, Managing Directors, CxO Positions Purpose of the Req. Consolidated OP: 5 bil. + Stock Option and LIFULL non
Slide 36: FY 2023/9 Results Forecast
FY 2023/9 Results Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 35
Slide 37: Focus on Revenue Growth
Focus on Revenue Growth in our core businesses LIFULL Group Revenue (Cons.) (Effects of the sale of subsidiaries removed) HOME'S Omnichannel ×DX Services 18.7% Growth Overseas Moving to Direct FY 2022/9 FY 2023/9 Other Services for seniors 36
Slide 38: FY 2023/9 Results Forecast IFRS
FY 2023/9 Results Forecast IFRS Revenue Breakdown Revenue OP Net Profit* HOME'S Services: 62.7% ¥37.0 ¥3.3 ¥2.5 Overseas: 24.6% bil. bil. bil. Other Businesses: 12.7% Condensed Statemants of Income and Loss Revenue by Segment FY2022 FY2023 FY2022 FY2023 Oct.-Sep. Oct.-Sep. Change Change Oct.-Sep. Oc
Slide 39: Focus on Core
Make all LIFE FULL Focus on Core Increase Profitability Across Businesses 38
Slide 40: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 39
Slide 41: Corporate Information (as of September 30, 2022)
Corporate Information (as of September 30, 2022) Company LIFULL Co., Ltd. Stock code 2120 (TSE Prime) Representative Takashi Inoue, President and CEO History Mar. 12, 1997 Established Oct. 2006 Listed in TSE, Mother's Section Mar. 2010 Listed on TSE 1st Section Apr. 2022 Transition to TSE Prime Pres
Slide 42: LIFULL HOME'S
LIFULL HOME'S LIFULL HOME'S Real Estate and Housing Information Site https://www.homes.co.jp/ • One of the largest real estate listing sites in Japan. • Apart from property listings, LIFULL HOME'S also features an in-house Quality Screening Team to ensure the reliability of listing information. • Co
Slide 43: Primary Group Companies
Primary Group Companies (Listed according to date of founding / acquisition) LIFULL Marketing Partners Co., Ltd. 1 • Internet marketing for real estate and related business operators • Operation of one of the largest search engines for nursing homes and senior housing in Japan, LIFULL Nursing Care L
Slide 44: Segments and Primary Services
Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) HOME'S Services NabiSTAR 1 Advertising & Consulting Agency (LIFULL Marketing Partners Co., Ltd.) Kenbiya (Kenbiya Co., Ltd.) Trovit (LIFULL CONNECT) Mitula (LIFULL CONNECT) Nestoria (LIFULL CONNECT) RE
Slide 45: Transfer of Shares of Rakuten LIFULL STAY
Transfer of Shares of Rakuten LIFULL STAY Despite growth in the market for vacation rentals, opportunities for the repurposing of abandoned houses (Akiya) have been limited. Therefore, we transferred all shares of Rakuten LIFULL Stay on Oct. 31, 2022. Proceeds from All shares share transfer transfer
Slide 46: Annual Revenue and Timeline of Company Growth
Annual Revenue and Timeline of Company Growth Acquisition of MItula (Unit: JPY Billion) COVID-19 Pandemic 40 Changed fiscal year (irregular 6-month period) Changed company name 37.0 to LIFULL Co., Ltd. 35 Acquisition of LIFULL MP 30 Acquisition of LITTEL Acquisition 25 (Merged in 2011) of Trovit Cha
Slide 47: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly FY2018 FY2019 FY2020 FY2021 FY2022 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue 8,128 9,541 8,345 8,549 8,391 11,208 9,753 9,944 9,202 9,983 7,706 8,510 8,271 9,581 9,072 8,931 8,510 9,530 8,645 9,044 HOME'S S
Slide 48: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Increase in advertising expenses primarily from proactive investments in LIFULL HOME'S. Personnel expenses increased primarily due to acquisition of Properati and Wasi. 11.6% 11.6% 11.4% -0.0pt -0.6pt +0.3pt 11.0% 21.8% 20.9% +4.6pt 26.5% -28.7pt Cost of Sales +23.1pt 4
Slide 49: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT Despite growth in LIFULL CONNECT products, revenue has declined due to low performance in third- party AdSense advertising. Results from LIFULL CONNECT* in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR 12,297 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2
Slide 50: Overseas Segment Results Segment Profit and Loss (Quarterly Trend)
Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Although revenue from real estate portals and premium advertisements on aggregation services continues to grow, lower profit from decrease in third-party AdSense revenue on aggregation sites. Quarterly Segment P&L ■ LIFULL CONNECT ■
Slide 51: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) LIFULL senior and Regional Revitalization businesses currently driving revenue growth 737 Quarterly Revenue Unit: JPY mil. Transfer of LHL1 ■ Existing businesses *2 ■ Other new businesses Founding of 4 companies (incorporation-type company split) Q1
Slide 52: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) Transfer of LHL Quarterly Segment Profit and Loss Unit: JPY mil. 85 78 71 ■ Existing businesses1 ■ Other new businesses 59 61 58 53 41 38 42 34 -97 -118 -155 -161 -211 -223 -219 -258 -222 -261 -290 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 53: Positive Developments in the Real Estate Market
(Ref) Positive Developments in the Real Estate Market Jul. – Sep. Update As restrictions on going out in public ease, the moving industry is beginning to see recovery. Currently, internal migrants and rental leases have increased significantly with more listings for available new-build houses. Jul.
Slide 54: External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2020 2021 2022 2019 2020 2021 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 (Jan-Dec) (Jan-Dec) (Jan-Dec) △ Capita
Slide 55: Base Results of the 2018 Housing and Land Survey
(Ref.) Base Results of the 2018 Housing and Land Survey (Statistics Bureau of Japan) Trend of Total Dwellings and Total Households Trend of Number of Vacant Homes and Vacancy Rates Breakdown of Vacant Homes (10,000 Units) 820 (+3.6%) 849 +29 Total Total Dwellings (10,000 Units) 900 16.0% +1,779 6,24
Slide 56: IR Team Contact Information
IR Team Contact Information IR Site Japanese https://ir.LIFULL.com/ English https://ir.LIFULL.com/en/ TEL +81-3-6774-1603 E-mail ir@LIFULL.com (Weekdays 10:00 - 18:00 JST) Annual Report 2021 Other Information about LIFULL Twitter Facebook Page Japanese https://ir.lifull.com/ir/ir-data/report/ Englis