Slide 1: Earnings Presentation IFRS
LIFULL Co., Ltd. Earnings Presentation IFRS Fiscal Year Ended September 30, 2017 (April to September 2017) Disclaimer The opinions and projections, etc. contained herein represent the judgment of LIFULL Co., Ltd. at the time this document was prepared. We provide no guarantees regarding the accuracy
Slide 2: Index
• Key Points P2 • Consolidated Results for FY2017/9 P3 • Business Strategies P14 Overseas Business P32 Index New Business P37 • Forecast for FY2018/9 P43 • Appendix. P52 • IR Office Information P65 1
Slide 3: Key Points
Key Points 1. FY2017/9 revenue was 15.9bn, record high for 6 consecutive periods 2. EBITDA declined as a result of strategic investment in advertising expenses 3. Number of clients grew 15％ YoY. APRA increased 4.4% YoY by expanding sales capabilities 4. Launched “Real Estate price Visualization” and
Slide 4: Consolidated Results for FY2017/9
Consolidated Results for FY2017/9 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3
Slide 5: Revenue record high
Revenue (JPY bn) 15.9bn 16.0 14.0 13.7bn 12.0 Record high for 6 consecutive 10.0 periods 8.0 6.0 4.0 2.0 0.0 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2017/9 * Q1,Q2 Q1,Q2 Q1,Q2 Q1,Q2 Q1,Q2 Q1,Q2 Q1,Q2 Q1,Q2 Q1,Q2 Q1,Q2 *Segments have changed from the fiscal year ending Septembe
Slide 6: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS While revenue rose in all segments including the core HOME’S Services Business segment, EBITDA was down 47.8% YoY as a result of strategic investment in advertising expenses and other costs accompanying changes in the company name and brand. FY17/3 FY17/9
Slide 7: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS The EBITDA margin worsened as the result of strategic investments in advertising expenses accompanying changes in the company name and brand. 25.4% +1.8p 27.2% +2.5p 29.7% +2.8p 32.5% Cost of revenue and other SG&A 31.5% -1.9p -4.7p Advertising expenses 29.6% 24.9% +9.1
Slide 8: Sales by Segment IFRS
Sales by Segment IFRS Steady growth in all segments. FY17/3 FY17/9 Q2 Change Unit: JPY mil Change Main items % (Apr.-Sep.) (Apr.-Sep.) Revenue 13,757 15,948 +2,191 +15.9% Incrased steadily due to increase in the media value and expasion of clients HOME'S Services Business 11,398 13,288 +1,889 +16.6%
Slide 9: Segment Income and Loss IFRS
Segment Income and Loss IFRS Income in HOME’S Services Business declined as a result of strategic investment in advertising expenses accompanying changes in the company name and brand. Income in Overseas Business declined 50.6% YoY due to reversal of the provision for bonuses for Trovit in the previ
Slide 10: Condensed Statements of Profit and Loss (quarterly) IFRS
(ref.) Condensed Statements of Profit and Loss (quarterly) IFRS Steady growth in revenue driven by the core HOME’S Services Business. EBITDA was down 30.4% YoY as a result of strategic investment in advertising expenses and other costs accompanying changes in the company name and brand. FY17/3 FY17/
Slide 11: Condensed Statements of Financial Position and Goodwill IFRS
Condensed Statements of Financial Position and Goodwill IFRS Decrease in liabilities by payment of advertising expenses, transfer-related cost, and tax. As of As of Change Unit: JPY mil Change Main items Mar 31, 2017 Sep 30, 2017 % Decrease in cash and deposits -537 Decrease in accounts receivable –
Slide 12: Condensed Statements of Cash Flows IFRS
Condensed Statements of Cash Flows IFRS Cash and cash equivalents decreased by JPY 500 million to JPY 5.5 billion. FY17/3 FY17/9 Main items Q2 Unit: JPY mil Change FY17/3 FY17/9 (Apr.-Sep.) (Apr.-Sep.) Items Q2 (Apr.-Sep.) (Apr.-Sep.) Income before income taxes 2,523 957 Depreciation and amortizatio
Slide 13: FY2017/9 Forecast and Progress IFRS
FY2017/9 Forecast and Progress IFRS Statements of Income and Loss Sales by Segment [Full-year [Actual] [Full-year [Actual] forecast] Progress forecast] Progress Unit: JPY mil FY17/9 FY17/9 Unit: JPY mil FY17/9 FY17/9 % % Revenue 15,973 15,948 99.8% Revenue 15,973 15,948 99.8% Cost of sales 1,620 1,8
Slide 14: FY2017/9 Differences Between Planned and Actual EBITDA
FY2017/9 Differences Between Planned and Actual EBITDA (IFRS) (JPY mil) -89 1,536 Unused personnel expenses 496 Unused operating expenses 157 Unused other expenses 429 → Mainly subcontracting costs, system usage fees, etc. +1,082 662 -25 -242 +149 Full-year Unachieved Increase in Unused Unused Other
Slide 15: Business Strategies
Business Strategies Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 14
Slide 16: Addressing the asymmetry of information between real-estate companies and consumers
Our goal since the launch of LIFULL HOME’S “We want to address the asymmetry of information between real-estate companies and consumers.” 15
Slide 17: LIFULL HOME'S Core Strategy
Mid-to-Long Term Strategy Global Roadmap Platform Expanding real-estate Stimulating markets real-estate Transforming the markets real-estate industry Covering the Akiya Bank Data- information and evaluations Covering the information Building the global (property info, pricing, asset info, of investm
Slide 18: Expanding the Number of Total Information Listed
Expanding the Number of Total Information Listed No. of Total Information Listed (mil) 9.00 7.96mil 8.00 Maintain 7.00 8.06mil the volume of listed 6.00 information 5.00 4.00 3.00 2.00 1.00 *Total information: properties for rental, real estate sales, investment, and new houses and condos. 0.00 Cust
Slide 19: Expanding the Client Network
Expanding the Client Network Number of clients grew steadily. ARPA increased YoY due to expanding the clients network in local regions and small-to-mid sized real estate companies. (Yen) 30,000 No. of Clients 120,000 ARPA 25,000 26,492 100,000 112,492 26,040 seasonality 23,629 24,010 20,000 22,969 8
Slide 20: (Ref.) Expanding the Client Network: Affiliated Offices
(Ref.) Expanding the Client Network No. of Affiliated Offices* (offices) *Number of real estate agents in the number of clients on P18 Mid-to-long term 40,000 target 40,000 offices 30,000 Steady growth 23,841 offices 20,456 offices 20,000 10,000 0 2011 2016 2017 Mar. Sept. Sept. 20XX 19
Slide 21: (Ref.) Expanding the Client Network: HOME'S Services Business
(Ref.) Expanding the Client Network Key to expand HOME’S Services Business No. of HOME’S Services clients ✕ ARPA = Business scale (revenue) Expand the business by increasing the no. of clients and ARPA Number of clients: The total paid clients of LIFULLHOME’S, and LIFULL Marketing Partners Definitio
Slide 22: Visualizing the Price Information - Real Estate Price Visualization
Visualizing the Price Information - “Real Estate Price Visualization” Launched new service displaying property reference prices, the shift of market prices, and the market demands of condominiums calculated by big data and AI. Enhance the real estate market by visualizing all the information needed
Slide 23: Visualizing Building Performance Evaluation - LIFULL HOME'S House Appraisal
Visualizing Building Performance Evaluation – “LIFULL HOME’S House Appraisal” Displaying the house appraisal documents on LIFULL HOME’S website to make the real estate market more transparent. Enhancing the market by resolving uncertainties confronting buyers of existing homes. Release of info on pr
Slide 24: Administrative Support for Realtors
Administrative Support for Realtors Analyzing the Daily Operation of Realtors and Support it with IT Solutions If the realtors’ daily operations would be more efficient with IT solutions, the operations would be even more rational and profitable, and the customer service quality would be increased.
Slide 25: LIFULL Service List
LIFULL Service List Now providing a wide range of services for both users and realtors Mortgage estimates Escrow Being Under development/in Not Online property provided planning undertaken Call Center Counter Viewing Online contact Services Started to provide since FY ending Sept. 2017 The LIFULL HO
Slide 26: Administrative Support for Realtors - LIFULL HOME'S B2B
Administrative Support for Realtors – “LIFULL HOME’S B2B” Expand the number of users and properties, and add new functions in order to maximize the network effects. Become an indispensable infrastructure to real estate operations. MAU Property Property Property Site for distribution viewing DB appoi
Slide 27: Making Online Real Estate Transaction Available - LIFULL HOME'S LIVE
Making Online Real Estate Transaction Available – “LIFULL HOME’S LIVE” Before Important matters related to real estate Home Finding Steps Utilizing IT transaction have to be explained face-to-face Property viewing ◯ with a written format Explanation on important Matters ✖ Sign a contract ◯office (at
Slide 28: Making Online Real Estate Transaction Available - LIFULL HOME'S LIVE
Making Online Real Estate Transaction Available – “LIFULL HOME’S LIVE” Added new functions to “LIFULL HOME’S LIVE,” a service used for a social experiment conducted by the Construction and Transport Ministry. All the steps related to real estate transaction including home searching, property viewing
Slide 29: Initiatives to stimulate the market for existing homes
Initiatives to stimulate the market for existing homes Resolving the issue of vacant homes through promoting use of vacant homes, fundraising, vacation Details p. 29 rental to stimulate the tour industry. Akiya Bank Developing a comprehensive database of information on vacant homes nationwide Detail
Slide 30: LIFULL HOME'S Akiya Bank
LIFULL HOME’S Akiya Bank A model program for building and operating a nationwide Akiya (vacant properties and homes) Bank as proposed by the Ministry of Land, Infrastructure, Transport and Tourism. Acceptance of participation by local governments began July 19, 2017, with the (beta) website released
Slide 31: Investment-type Crowdfunding
Investment-type Crowdfunding Accelerating the crowdfunding business with the January 2017 purchase of stock in JG MARKETING (currently LIFULL Social Funding). Revenue Property use generation Dormant assets development Remodeling Renovation Interior design Attracting customers Lodging facilities, caf
Slide 32: Rakuten LIFULL STAY
Rakuten LIFULL STAY The enforcement date of the new law have announced as June 15, 2018. The Vacation Stay service is in preparation. Vacation Stay (tentative) Search for and make reservations Domestic travelers Bulk registration + Search for and make Partner travel sites reservations Vacation renta
Slide 33: Overseas Business
Overseas Business Trovit and LIFULL Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 32
Slide 34: We operate in 57 different countries
Accelerating the LIFULL Group’s Global Expansion 4 countries 57 countries We operate in 57 different countries 33
Slide 35: LIFULL Australia: Number of Inquiries
LIFULL Australia No. of Inquiries Increase steadily Started monetize in October 2017 Approx. 6x Dec. Jan. Feb. Mar. Apr. May June. Jul. Aug. Sept. 2017 34
Slide 36: LIFULL Immofinder (Germany)
LIFULL Immofinder (Germany) No. of Properties Listed Encouraging start Approx. 5x Launched on Mar. 29 Apr. May June Jul. Aug. Sept. 2017 35
Slide 37: Trovit is Enhancing its Ability to Pull in Users
Trovit is Enhancing its Ability to Pull in Users The traffic is recovering and the growth phase again as a result of the SEO recovering plan went successful. Monthly Traffic Steady recovery of Seasonality traffic Seasonality Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. 2016
Slide 38: New Businesses
r 1 New Businesses rq L CIFULL
Slide 39: Objectives of New Businesses
Objectives of New Businesses Realizing the corporate vision by generating new businesses to train managers and expand business domains. Solutions Make every LIFE FULL. Training Expanding １ Realizing a vision ２ managers ３ business domains 38
Slide 40: New Businesses - Revenue of Other Business Segment
New Businesses—Revenue of Other Business Segment (JPY mil) 900 833 800 700 671 2x in 3 years 600 500 452 Moving Storage Interior Nurse care 400 300 Job Flower Sampling Office 200 Insurance Food and Admin. 100 drink Support 0 *The revenues are before elimination of inter-segment transactions 2015/3 F
Slide 41: New Businesses - Three New Services
New Businesses—Three New Services During this period, we launched services in three new businesses created through Switch, a new business proposal program. (Operated by LIFULL senior Co., Ltd.) Service launched July 21, 2017 Service launched September 28, 2017 Service launched September 5, 2017 Sear
Slide 42: LIFULL Master Brand Strategy - Objectives
LIFULL Master Brand Strategy - Objectives Objectives of Master Brand Strategy ・ Integrating the brands of all services offered by the LIFULL Group under a master brand strategy to build a brand users will trust to deliver fulfilling lives and peace of mind ・ Increase the efficiency of advertising ex
Slide 43: LIFULL Master Brand Strategy - New Promotions
LIFULL Master Brand Strategy—New Promotions The creative concept remains an expression of the LIFULL brand, conveyed through multimedia promoting Group services to further increase corporate name recognition. TV commercial Broadcasting of the LIFULL brand “Life” TV commercial began September 18. Fea
Slide 44: Forecast for FY2018/9
Forecast for FY2018/9 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 43
Slide 45: FY2018/9 Forecast IFRS
FY2018/9 Forecast IFRS Statements of Profit and Loss Sales by Segment 2016/10- FY2018/9 2016/10- FY2018/9 Change Change Unit: JPY mil 2017/9- [Full-year Change Unit: JPY mil 2017/9- [Full-year Change % % [Actual] forecast] [Actual] forecast] Revenue 32,111 41,000 +8,888 +27.7% Revenue 32,111 41,000
Slide 46: FY2018/9 Forecast IFRS Revenue and EBITDA
FY2018/9 Forecast IFRS Revenue EBITDA (JPY bn) (JPY bn) 41.0 29.9 6.0 19.7 5.3 +22.4% Oct. 2017 2.8 16.1 - Mar. 2018 2.3 +19.4% Oct. 2017 Oct. 2016 Oct. 2016 - Mar. 2018 - Mar. 2017 - Mar. 2017 1.5 2.9 ▲48.6% Apr. 2017 – Sept. +107.4% 3.1 Apr. 2016 Apr. 2018 - Sept. - Sept. FY2017/9 13.7 Apr. 2016 +
Slide 47: Mid-Term Business Plan
Mid-Term Business Plan Revenue (JPY bn) JPY50.0bn Toward 500 450 50.0 bn yen level 400 revenue and 350 EBITDA margin 300 around 20% 250 200 by Mar. 2020 150 100 50 0 1997 2001 2006 2011 2016 Mar. Mar. Mar. Mar. Mar. J-GAAP IFRS 46
Slide 48: Promoting ESG Management
Promoting ESG Management Based on the spirit of Will-Centric Public Interest Capitalism, we care every stakeholder Will-Centric Public Interest Capitalism Society Global Consumers ・ environment Altruism Clients Shareholders Employees Partners 47
Slide 49: Support Program for Social Contribution - One P's
Support Program for Social Contribution – “One P’s” What is One P’s? Employees can participate in social contribution activities ＋ utilizing special paid leave Expenses associated with 1% of employees’ total 1% of the previous year’s the activities will be burdened by the annual working hour profit
Slide 50: Personnel Assessment System Based on Will-Centric Public Interest Capitalism - LVAS
Personnel Assessment System Based on Will-Centric Public Interest Capitalism - LVAS LIFULL Group Vision Achievement Score (LVAS) - Personnel assessment system for the directors and representative directors of LIFULL Group - The remunerations will be determined based on more than 30 items including g
Slide 51: Issued Annual Report 2017
Issued “Annual Report 2017” Issued the first annual report of LIFULL - We defined the strength of LIFULL as an intellectual capital composed of “brands”, “human resources”, and “technology” - The background and concept of change in company and brand in April 2017, and new business policy - Mid-term
Slide 52: Make every LIFE FULL.
m7 |, LIFULL Make every LIFE FULL. rq L CIFULL
Slide 53: Appendix.
Appendix. Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 52
Slide 54: Change in Company Name
Change in Company Name Make every LIFE FULL NEXT Co., Ltd. will change its name to “LIFULL Co., Ltd.” on April 1, 2017 “LIFULL” combines the words “LIFE” and “FULL” and expresses our determination to provide services that lead to more fulfilling lives and lifestyles. 53
Slide 55: Corporate Info (as of September 30, 2017)
Corporate Info (as of September 30, 2017) Company LIFULL Co., Ltd. Stock code 2120 (TSE 1st Section) 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 Capital JPY 3,999 million Stock issues
Slide 56: External Market Data
External Market Data Number of Apartments for sales Source : Real Estate Economic Institute Co., Ltd. 2015 2016 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 (Jan-Dec) (Jan-Dec) Capital Region 40,449 35,772 1,978 3,002 3
Slide 57: Consolidated Statements of Profit and Loss (quarterly)
Consolidated Statements of Profit and Loss (quarterly) FY2016/03 FY2017/03 FY2017/09 Unit : JPY mil 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Revenue 5,457 6,441 6,280 7,527 6,846 6,910 7,107 9,056 7,793 8,154 HOME'S Services Business 4,280 5,210 5,167 6,263 5,616 5,782 5,955 7,663 6,472 6,816 Overseas Business
Slide 58: Change in Accounting Period
Change in Accounting Period Details Change in accounting period from the current March 31 to September 30 fiscal year. This fiscal year will be April 1, 2017 to September 30, 2017 (six months). The next fiscal year will be October 1, 2017 to September 30, 2018. Reason for change Due to the nat
Slide 59: Change of Accounting Period Schedule
Change of Accounting Period <Schedule> Fiscal Year Ending Sept. 30, 2017 Fiscal Year Ending Sept. 30, 2018 (Apr. to Sept. 2017) (Oct. 2017 to Sept. 2018) Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Early Aug. Early Nov. Early Feb. Early May Early Aug. Q1
Slide 60: (ref.) Number of Properties Listed
(ref.) Number of Properties Listed Rentals and Real Estate Sales New Houses and Condos (building) (mil) 8.03mil 7.93mil 9,732buildings 8.0 10,000 8,000 6.0 6,000 7,087buildings 4.0 4,000 2.0 2,000 0.0 0 2008 2016 2017 Co. Co. Co. 2010 2016 2017 Apr. Sept. Sept. Apr. Sept. Sept. A B C 59
Slide 61: LIFULL HOME'S, a real estate and housing information listing site
LIFULL HOME’S LIFULL HOME’S, a real estate and housing information listing site https://www.homes.co.jp/ “LIFULL HOME‘S” is the No.1 real estate and housing information listing site in Japan. *Sankei Medix (2017.1.26) Besides the quantity of information, LIFULL HOME’S established screening team to i
Slide 62: LIFULL Group Services
LIFULL Group Services LIFULL Kaigo LIFULL Hoken Sodan LIFULL Interior LIFULL Hikkoshi (nurse care) (insurance consultation) (moving) Website used to find nursing care homes Insurance agency search and Furniture / interior EC website Operated by LIFULL MOVE or elderly housing appointment website “LIF
Slide 63: New Segments and Major Services
New Segments and Major Services Segments Main services HOME’S Services LIFULL HOME’S Business AD Master (former Renter’s Net) (Renter’s Co.) NabiSTAR LIFULL Marketing Partners Co., Ltd. Overseas Business Trovit (Trovit Search, S.L.) LIFULL Australia LIFULL Immofinder Other Business LIFULL Kaigo (nur
Slide 64: LIFULL Group Companies (1)
LIFULL Group Companies (1) (in chronological order by effective date of establishment) PT. LIFULL MEDIS INDONESIA Planning and operation of LIFULL Rumah, a website Real estate and housing information in Indonesia Home hunting proxy service in Jakarta for Japanese business people planning to re
Slide 65: LIFULL Group Companies (1)
LIFULL Group Companies (1) (in chronological order by effective date of establishment) LIFULL bizas Administration and other back office operation outsourcee Call center operation outsourcee LIFULL Remodel Online home building mediation service Reconstruction work mediation service Contrac
Slide 66: IR Information
IR Information Contact us Guide to IR News LIFULL Co., Ltd IR Desk TEL +81-3-6774-1603 We provide timely disclosure data in good time! (Monday to Friday 10:00AM-6:00PM) Please send a blank e-mail to the following e-mail address. FAX +81-3-6774-1737 E-mail ir@LIFULL.com Blank e-mail: touroku@LIFULL.c