Lifull Co.ltd. · TSE:2120

Lifull Co.ltd — Q1 FY2024/9 Earnings Presentation

49 slides from Lifull Co.ltd's earnings presentation, February 2024

Slide 1: First Quarter FY 2024/9 Results
LIFULL Co., Ltd. First Quarter IFRS FY 2024/9 Q1 (October 2023 – December 2023) 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 various r
Slide 3: Newly Appointed President and Managing Director
Newly Appointed President and Managing Director Abbreviated Curriculum Vitae ITO Yuji • • Born: November 1982 (Currently 41 years old) Joined the Company in 2006 after graduating from university President, Managing Director • Started in a sales position in LIFULL HOME'S (HOME'S) • Make considerable
Slide 4: Index
Index 1. Introduction P1 2. Relief Efforts for the Noto Peninsula Earthquake P4 3. LIFULL Group New Management Structure P6 4. FY 2023/9 First Quarter Consolidated Summary P8 5. Results & Initiatives by Segment HOME'S Services P 11 Overseas P 16 6. FY 2024/9 First Quarter Financial Results P 24 7. A
Slide 6: Relief Efforts after the Noto Earthquake (As of Jan. 2024)
Relief Efforts after the Noto Earthquake (As of Jan. 2024) We offer our deepest condolences to the families of individuals who lost their lives in the recent earthquake and extend our heartfelt sympathy to all those affected. In order to provide for the safety and well-being of people in the affecte
Slide 8: LIFULL Group New Management Structure
LIFULL Group New Management Structure The new management structure of the Group announced on Nov. 13, 2023 was initiated on Dec. 21, 2023 Changes Representative ★ ★ Directors 1 Excluding Financial Services Group Domestic Management Businesses1 Audit & Supervisory Board Chairperson President, Managin
Slide 10: Consolidated Summary: Revenue
FY 2024/9 First Quarter Consolidated Summary Revenue Domestic businesses are progressing according to plan while acquisitions made in the previous fiscal year have contributed to increased Overseas revenue. Revenue (JPY Bil.) 8.1 7.5 8.0% Increase in Revenue 2023年9月期 FY 2023/9 2024年9月期 FY 2024/9 第1四
Slide 11: Consolidated Summary: Operating Profit
FY 2024/9 First Quarter Consolidated Summary Operating Profit Decrease of ¥0.2 bil. in operating profit after removing the effects of sale of shares of affiliates in the previous fiscal year. Current fiscal year affected by one-off costs in the Overseas segment. Operating Profit Primary Reasons (JPY
Slide 13: Results by Segment: HOME'S Services
Results by Segment HOME'S Services Revenue has largely progressed according to plan. Segment profit increased YoY primarily due to savings in branding costs. Revenue (JPY Bil.) Segment Profit (JPY Bil.) +0.5% 5.4 5.5 +16.0% 0.5 0.6 FY 2023/9 FY 2024/9 FY 2023/9 FY 2024/9 Q1 Q1 Q1 Q1 12
Slide 14: LIFULL HOME'S Worldview
(Ref.) LIFULL HOME'S Worldview 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 Personalizing user experiences Viewings
Slide 15: Progress and Growth Initiatives for HOME'S Services
Progress and Growth Initiatives for HOME'S Services FY 2024/9 Initiatives Progressing According to Plan Investing in Development Boosting Sales Q1 Initiatives (Selection) Results of Q1 Initiatives Appealing to users on Rent the accuracy of listings Sale Adjustments made to +500 Clients property deta
Slide 16: Initiatives for the Peak Moving Season in Japan
Initiatives for the Peak Moving Season in Japan Advertisements on TV, Trains and Online BRANDING Started in January 2024 for the Peak Moving Season1 1 Jan. – Mar. in accordance with the start of the fiscal year of many Japanese companies. Topics TV Encourage people to use LIFULL HOME'S Accurate and
Slide 18: Results by Segment: Overseas
Results by Segment Overseas Despite considerable gains in revenue from two acquisitions (consolidated from FY 2023/9 Q2), lower profit YoY due to lower revenue in aggregation sites and one-off costs Revenue (JPY Bil.) Segment Profit (JPY Bil.) +43.0% 2.0 Primarily due to lower revenue from -0.2 -0.6
Slide 19: Growth Strategy Moving to Direct
Growth Strategy Moving to Direct Service Characteristics Initiatives Funnel for See the following Moving House Information Price Customers pages for more information Low Portals Search Aggregation Light (Several Yen) (Several / Country) P 21 Real Estate FOCUS Closer to Actual Mid Transactions Compar
Slide 20: Tech-Enabled Agency in Thailand: Q1 Initiatives
Tech-Enabled Overseas Businesses Tech-Empowered Agents Agency in Thailand FY 2024/9 Q1: Largely in-line with targets FY 2024/9 Initiatives Initiatives in Q1 Results Increased Hiring Increased More Agents & Stronger Organization Agent • Launched a new hiring strategy throughout Thailand Headcount • 1
Slide 21: Real Estate Portals: Q1 Initiatives
Overseas Businesses Real Estate Portals FY 2024/9 Q1: Largely in-line with targets FY 2024/9 Initiatives Initiatives in Q1 On-Boarding New Optimization of Sales Teams Clients Focusing on high-performance sales management in Mexico to accelerate overall business growth Driving ARPA in Latin America.
Slide 22: Aggregation Services: Currently Behind Target
Overseas Businesses Aggregation Services FY 2024/9 Q1: Currently behind target Reasons for Delays & FY 2024/9 Initiatives Initiatives in Q1 Next Steps Refining Products • Lower traffic • Began sales of new products in • Improve Aug. 2023 Clients continue to operate with less advertising • Continuing
Slide 23: Renewal of the Overseas Structure
Renewal of the Overseas Structure Introduced new management to focus on a strong recovery and future growth of LIFULL CONNECT (Ref.) Overseas Segment NEW Breakdown of LIFULL Group Revenue LIFULL CONNECT CEO HOME'S Services Other Businesses SHISHIDO Kiyoshi Overseas Experience in overseas business ma
Slide 24: Changes to the Management Structure of LIFULL CONNECT
Changes to the Management Structure of LIFULL CONNECT Optimizing the way that management and local teams work to ensure more efficient communication and improved collaboration throughout the Group Improved Collaboration LIFULL Board of Directors LIFULL CONNECT Board of Directors Director of LIFULL R
Slide 26: Condensed Statements of Income and Loss
Condensed Statements of Income and Loss IFRS Revenue increased due to contributions from acquisitions made in the previous FY while profit declined due to one-off costs for the transition to new management Overseas. After removing profit from sales of shares of affiliates in the previous FY (¥0.66 b
Slide 27: Revenue / Income and Loss by Segment
Revenue / Income and Loss by Segment IFRS HOME'S Services has progressed largely according to plan. Despite acquisitions made in the previous FY, segment profit for Overseas has declined due to reduced revenue from aggregation services and one-off costs associated with the transition to a new manage
Slide 28: Condensed Statement of Financial Position and Goodwill
Condensed Statement of Financial Position and Goodwill IFRS Assets decreased by ¥2.8 bil. due to reduced profit and loans for the real estate financing business. Liabilities declined by ¥1.7 bil. from repayment of loans. Additionally, retained earnings also decreased by ¥31.4 bil. As of As of Change
Slide 29: Condensed Statement of Cash Flow
Condensed Statement of Cash Flow IFRS Cash and cash equivalents decreased ¥2.6 billion to ¥13.8 billion due to a decrease in profit as well as payment of loans for the real estate financing business and repayment of loans. FY2023 Q1 FY2024 Q1 Change Main items Unit: JPY mil. (Oct.-Dec.) (Oct.-Dec.)
Slide 31: Corporate Information (as of December 31, 2023)
Corporate Information (as of December 31, 2023) Company LIFULL Co., Ltd. Stock code 2120 (TSE Prime) Representative INOUE Takashi, President and CEO History Mar. 12, 1997 Established Oct. 2006 Listed in TSE, Mother's Section Mar. 2010 Listed on TSE 1st Section INOUE Takashi ITO Yuji Apr. 2022 Transi
Slide 32: 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 33: Primary Group Companies
Primary Group Companies (Listed according to date of founding / acquisition) • Operation of one of the largest search engines for nursing homes and senior housing in Japan, LIFULL Nursing Care LIFULL senior Co., Ltd. • Operation of the search site "Minna no ihinseri" for companies which organize the
Slide 34: Segments and Primary Services
Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) NabiSTAR HOME'S Services Kenbiya (Kenbiya Co., Ltd.) Offshore Development (LIFULL Tech Vietnam, LIFULL Tech Malaysia) 1 LIFULL CONNECT S.L.U. Aggregation Services: Trovit, Mitula, Nestoria, Nuroa Real
Slide 35: 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 25 (Merged in 2011) Acquisition of Trovit Cha
Slide 36: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly FY2021 FY2022 FY2023 FY2024 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue 8,271 9,581 9,072 8,931 8,510 9,530 8,645 9,044 7,583 11,585 8,825 8,410 8,190 HOME'S Services 6,346 7,260 6,550 6,535 6,139 7,085 6,263 6,579 5,497 6,462 5,
Slide 37: Expense-to-Revenue Ratio
Expense-to-Revenue Ratio IFRS Increases in cost of sales and personnel expenses due to Overseas acquisitions completed in FY 2023/9. Reduced operating profit primarily due to reduced revenue from Overseas aggregation services and one-off costs for the transition to the new management structure. -6.8
Slide 38: LIFULL HOME'S Key Performance Indicators: Client Network and ARPA
LIFULL HOME'S Key Performance Indicators Client Network and ARPA The total client network increased due to increased sales initiatives in LIFULL HOME'S. 3-Month Average 3-Month Average Client Network ARPA (JPY) FY 2022/9 FY 2023/9 FY 2024/9 FY 2022/9 FY 2023/9 FY 2024/9 (Oct. – Dec.) (Oct. – Dec.) (
Slide 39: Quarterly Results: LIFULL CONNECT Revenue
Quarterly Results LIFULL CONNECT Revenue Revenue increased due to the acquisition and consolidation of FazWaz in January 2023 and Lamudi in March 2023. Consolidation of Results from LIFULL CONNECT1 in EUR FazWaz & Lamudi Unit: 1,000 EUR 17,040 Sale of Fashiola2 15,457 13,240 13,183 10,183 Q1 Q2 Q3 Q
Slide 40: Overseas Segment Results: Segment Profit and Loss
Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Changes to reporting segments reflected as of FY 2024/9. One-off costs for transition to new management caused decline in profit YoY. PPA allocation for FazWaz Thailand Co. Ltd. finalized. Quarterly Segment P&L ■ LIFULL CONNECT ■ Dep
Slide 41: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) Increased revenue in the second and third quarters of FY 2023/9 due to one-off sales of property by the Regional Revitalization Fund. 2,704 Quarterly Revenue Unit: JPY mil. One-off earnings from sale of investments by Regional Revitalization Fund ■
Slide 42: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) In line with our position of selective focus and largely on-track toward current budget. Quarterly Segment Profit and Loss Unit: JPY mil. One-off profits from the Regional Revitalization Fund ■ LIFULL senior, LIFULL SPACE, LIFULL MOVE1 ■ Other Inc
Slide 43: External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2022 2023 2021 2022 2023 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 33,636 29,569 26,886 2,768 2,866 5,757 710 1,821 2,439 1,690 1,936 1,906 2,591 1,4
Slide 44: 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 46: Subsidiary LIFULL Agri Loop Founded in Jan. 2024
Subsidiary LIFULL Agri Loop Founded in Jan. 2024 We aim to promote sales of KET, a fertilizer which helps accelerate and stabilize the decomposition cycle of organic matter into inorganic matter in soil, and contribute to the realization of a more sustainable society in terms of food, health and the
Slide 48: Initiatives during FY 2024/9 Q1
Sustainability-Related Activities of the LIFULL Group Initiatives during FY 2024/9 Q1 ● Disclosure of Human Capital Strategy → FY 2023/9 Securities Report Yukashoken Hokokusho (https://ir.lifull.com/ir/ir-data/others/) ● Received Award as a Company Committed to Diversity & Inclusion (D&I AWARD 2023)
Slide 49: IR Team Contact Information
IR Team Contact Information IR Site Japanese English https://ir.LIFULL.com/ https://ir.LIFULL.com/en/ TEL +81-3-6774-1603 E-mail ir@LIFULL.com (Weekdays 10:00 - 18:00 JST) LIFULL Sustainability Data (IR Site) Other Information about LIFULL (Prev. Twitter) Facebook Page LIFULL Sustainability Search E

LIFULL — Q1 FY2024/9 Earnings Presentation on 6ix

Lifull Co.ltd — Q1 FY2024/9 Earnings Presentation

Slide 1: First Quarter FY 2024/9 Results

Slide 2: Introduction

Slide 3: Newly Appointed President and Managing Director

Slide 4: Index

Slide 5: Relief Efforts for the Noto Peninsula Earthquake

Slide 6: Relief Efforts after the Noto Earthquake (As of Jan. 2024)

Slide 7: LIFULL Group New Management Structure

Slide 8: LIFULL Group New Management Structure

Slide 9: FY 2024/9 First Quarter Consolidated Summary

Slide 10: Consolidated Summary: Revenue

Slide 11: Consolidated Summary: Operating Profit

Slide 12: Results & Initiatives by Segment: HOME'S Services

Slide 13: Results by Segment: HOME'S Services

Slide 14: LIFULL HOME'S Worldview

Slide 15: Progress and Growth Initiatives for HOME'S Services

Slide 16: Initiatives for the Peak Moving Season in Japan

Slide 17: Results & Initiatives by Segment: Overseas

Slide 18: Results by Segment: Overseas

Slide 19: Growth Strategy Moving to Direct

Slide 20: Tech-Enabled Agency in Thailand: Q1 Initiatives

Slide 21: Real Estate Portals: Q1 Initiatives

Slide 22: Aggregation Services: Currently Behind Target

Slide 23: Renewal of the Overseas Structure

Slide 24: Changes to the Management Structure of LIFULL CONNECT

Slide 25: FY 2024/9 First Quarter Financial Results

Slide 26: Condensed Statements of Income and Loss

Slide 27: Revenue / Income and Loss by Segment

Slide 28: Condensed Statement of Financial Position and Goodwill

Slide 29: Condensed Statement of Cash Flow

Slide 30: Appendices

Slide 31: Corporate Information (as of December 31, 2023)

Slide 32: LIFULL HOME'S

Slide 33: Primary Group Companies

Slide 34: Segments and Primary Services

Slide 35: Annual Revenue and Timeline of Company Growth

Slide 36: Consolidated Statements of Profit and Loss Quarterly

Slide 37: Expense-to-Revenue Ratio

Slide 38: LIFULL HOME'S Key Performance Indicators: Client Network and ARPA

Slide 39: Quarterly Results: LIFULL CONNECT Revenue

Slide 40: Overseas Segment Results: Segment Profit and Loss

Slide 41: Other Businesses Segment Sales Revenue (Quarterly)

Slide 42: Other Businesses Segment Profit and Loss (Quarterly)

Slide 43: External Market Data Monthly

Slide 44: Base Results of the 2018 Housing and Land Survey

Slide 45: Initiatives for Finding Solutions to Social Issues

Slide 46: Subsidiary LIFULL Agri Loop Founded in Jan. 2024

Slide 47: Sustainability Initiatives

Slide 48: Initiatives during FY 2024/9 Q1

Slide 49: IR Team Contact Information