Slide 1: Full-Year Results FY 2023/9 Q4
LIFULL Co., Ltd. Full-Year Results IFRS FY 2023/9 Q4 (October 2022 – September 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 vari
Slide 2: Index
Index 1. Agenda P2 2. FY 2023/9 Earnings P3 3. Initiatives by Segment Overseas P 12 HOME'S Services P 19 4. Strategic Changes to Reporting Segments P 27 5. FY 2024/9 Earnings Forecast P 28 6. Mid-Term Management Plan P 29 7. New Initiatives in the Field of Real Estate Investment P 31 8. Organization
Slide 3: Agenda
Agenda Progress toward the Full-Year Results Growth Strategy and Mid-Term Management Plan FY 2023/9 Forecast for FY 2024/9 & New Management Structure Increased Revenue & Profits YoY Selective Focus for Working to Achieve our Steadily Improving Profitability Growth in Core Businesses Mid-Term Targets
Slide 4: FY 2023/9 Earnings
FY 2023/9 Earnings Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3
Slide 5: Review of FY 2023/9 Earnings
Review of FY 2023/9 Earnings Consolidated Improving profitability through selective focus on core businesses (Operating Profit +17.2% YoY) Behind original forecast due to Overseas performance HOME'S Continued investment into service development Services Increased revenue in re-sale properties, appra
Slide 6: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Increased revenue due to contributions from Overseas acquisitions and Regional Revitalization Fund. 15% increase in revenue YoY after removing effects of sales of businesses in the previous FY. Additionally, considerable increase in profit due to optimiza
Slide 7: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS Increased revenue in HOME'S Services after removing effects of the sale of LMP in the previous FY (+2.7% YoY) with increased profit by returning ad spend to the same level as 2 years prior. Overseas acquisitions have been over-performing, but low performance
Slide 8: (Ref.) Revenue by Segment
(Ref.) Revenue by Segment HOME'S Services Overseas Other Businesses Revenue from LMP (Sold in prev. FY) 3.5 +2.7% 22.5 23.1 Includes revenue from hotel projects sold by Revenue from Fashiola Regional (Sold in prev. FY) Revitalization Fund +30.3% Total 0.5 8.6 +7.4% 4.9 6.6 2.7 FY 2022/9 FY 2023/9 FY
Slide 9: (Ref.) Profit by Segment
(Ref.) Profit by Segment HOME'S Services Overseas Other Businesses Loss from LMP (Sold in prev. FY) 2.6 Profit from hotel projects sold by Profit from Fashiola Regional +344.0% (Sold in prev. FY) Revitalization Fund 0.5 0.3 -6.6% 0.5 0.2 0.003 -0.2 -0.6 -6.6% -0.7 FY 2022/9 FY 2023/9 FY 2022/9 FY 20
Slide 10: Shareholder Returns
Shareholder Returns Continuation of our basic policy. Dividends for FY 2023/9 are to be 4.26 per share after adding the reduction in taxes due to the reversal of operating losses carried forward for overseas subsidiaries and the additional recording of the earn-out for FazWaz, acquired during FY 202
Slide 11: Condensed Statement of Financial Position and Goodwill
Condensed Statement of Financial Position and Goodwill IFRS Goodwill increased by ¥5.5 bil. due to Overseas acquisitions. Decrease in current assets due to sale of hotel projects by the Regional Revitalization Fund with a decrease in current liabilities due to repayment of loans. As of As of Change
Slide 12: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS Operating CF increased ¥6.2 bil. primarily due to increased profit. Investing CF decreased by ¥1.7 due to financing business and Overseas acquisitions. Financing CF decreased ¥5.0 bil. due repayment of loans. As a result, cash and cash equivalents amounted to ¥1
Slide 13: Initiatives by Segment: Overseas
Initiatives by Segment Overseas Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 12
Slide 14: Overseas: Review of FY 2023/9
Review of FY 2023/9 Continuing the transformation of the business according to the Moving to Direct Strategy (See next page), revenue has grown by 17% YoY. Although Premium Advertising did not meet targets, recovery of Third-Party Advertising Products and new acquisitions made considerable contribut
Slide 15: Growth Strategy: Moving to Direct
Growth Strategy Moving to Direct Service Characteristics Our Services Funnel for (Selection) Moving House Information Price Customers Aggregation Low Portals Search Light (Several Yen) (Several / Country) Real Estate FOCUS Closer to Actual Mid Transactions Compare Portals Rich (Several Professionals
Slide 16: Progress in Moving to Direct
Progress in Moving to Direct Revenue YoY Oct. – Sep. YoY +26% Transforming the +14% Aggregation DIRECT Profitability of our RE Portals Business Portfolio Transaction FY 2022/9 FY 2023/9 FY 2024/9 (Forecast) Growing our Total real estate-related clients of LIFULL CONNECT1 1 Total real estate clients
Slide 17: FY 2024/9 Growth Strategy: Transaction
FY 2024/9 Growth Strategy Transaction We are combining the enormous traffic volumes of Dot Property (operated by LIFULL CONNECT) with the properties of FazWaz in order to increase the total number of leads. Moving forward, we plan to increase FazWaz agents and improve efficiency to further boost the
Slide 18: FY 2024/9 Growth Strategy: Real Estate Portals
FY 2024/9 Growth Strategy Real Estate Portals We expanded our sales team during FY 2023/9 and will continue to focus on increasing our overall client network while also driving growth in ARPA through increased engagement with our products. Up to FY 2023/9 FOCUS On-Boarding New Clients in strategic r
Slide 19: FY 2024/9 Growth Strategy: Aggregation Sites
FY 2024/9 Growth Strategy Aggregation Sites We are also taking actions to further improve conversion rates and click prices and, ultimately, reach the targets of the Mid-Term Management Plan (FY 2025/9) More User-Oriented Sites Grow More engaging content Improved user interface Adjustments to Manage
Slide 20: Initiatives by Segment: HOME'S Services
Initiatives by Segment HOME'S Services Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 19
Slide 21: (Ref.) 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 22: Review of FY 2023/9 (1)
Review of FY 2023/9 (1) We have continued to increase the value we provide. Although the numbers of people moving house in Japan have not increased over the last year, we were able to maintain inquiries while optimizing advertising spend. LIFULL HOME'S Initiatives Results Ref. Japanese Real Estate M
Slide 23: Review of FY 2023/9 (2)
Review of FY 2023/9 (2) Due to the actions we took in the previous fiscal year, we have experienced solid growth in revenue with considerable increase in profitability. FY 2023/9 (Oct. – Sep.) Revenue Segment Profit Solid Growth 23.1 Bil. 2.6 Bil. Result & Improved Profitability +2.7% +657.0% YoY Yo
Slide 24: FY 2024/9 Growth Strategy: Driving Growth in Revenue and Profitability
FY 2024/9 Growth Strategy Driving Growth in Revenue and Profitability to Prepare for the Final Year of the Mid-Term Management Plan (2020 - 2025) Continuing to Boosting Sales Invest in Development Securing Development Resources Strengthening sales teams → Details on Page 24 →Details on Page 25 23
Slide 25: Continuing to Invest in Development
LIFULL HOME'S Growth Strategy Continuing to Invest in Development We are continuing to secure development resources to produce features to improve the likelihood that users will complete transactions with clients. At the same time, we are taking initiatives to add implement generative AI technology
Slide 26: LIFULL HOME'S Improved Sales Initiatives
LIFULL HOME'S Improved Sales Initiatives Our current clients are already experiencing the benefits of the investments we have made into development, and we will be expanding our sales team to take these benefits to even more real estate professionals. Positive Cycle of Site Improvement RESULT FY 202
Slide 27: Segment Change & FY 2024/9 Forecast
Segment Change & FY 2024/9 Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 26
Slide 28: Strategic Changes to Reporting Segments
Strategic Changes to Reporting Segments (From FY 2024/9) We are transferring our offshore development centers that work directly with LIFULL HOME'S into the HOME'S Services segment. Overview Reasons HOME'S Services LIFULL Group Offshore Development LIFULL Tech Vietnam (Founded 2017 in Ho Chi Minh
Slide 29: FY 2024/9 Results Forecast
% of Revenue Other FY 2024/9 Results Forecast 6.8% Operating Profit for Revenue Overseas HOME'S Profit the Period 27.8% ¥ ¥ ¥ Services 37.0 Bil. 3.0 Bil. 1.3 Bil. 65.4% Condensed Statemants of Income and Loss Revenue by Segment FY2022 FY2024 FY2022 FY2024 Oct.-Sep. Oct.-Sep. Change Change Oct.-Sep.
Slide 30: Mid-Term Management Plan (Until FY 2025/9)
Mid-Term Management Plan (Until FY 2025/9) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 29
Slide 31: Mid-Term Management Plan for FY 2025/9 Review
Mid-Term Management Plan for FY 2025/9 Review No changes to the Mid-Term Management Plan. We will continue to focus on our core businesses to ensure that we reach the revenue and profit targets we have set Representation of Revenue Growth Operating Profit Improve Growth Rate by approx. Drive growth
Slide 32: New Initiatives in the Field of Real Estate Investment
New Initiatives in the Field of Real Estate Investment Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 31
Slide 33: Building a Real Estate Investment Platform
Building a Real Estate Investment Platform We are taking advantage of the wealth of data and technology within the LIFULL Group to build a platform where anyone can easily invest in real estate. Initiatives of the LIFULL Group Reference Real Estate Small-Lot Real Estate Small-Lot Real Estate Finance
Slide 34: LIFULL Financial: Development for Business Expansion
Development for Business Expansion in Real Estate Investment We are establishing a new subsidiary to work towards providing a global secondary market for digitalized real estate investment products. Mr. Shimizu will use his wealth of financial knowledge and insight and serve as representative direct
Slide 35: (Ref.) Potential of Real Estate x NFT
(Ref.) Potential of Real Estate x NFT There are a number of new real estate products emerging using NFTs. By combining NFTs with small-lot real estate investment (STO or crowdfunding, etc.) we can create services for more varied situations. Potential of NFT 1 Market Status Characteristics The small-
Slide 36: Real Estate Investment Platform Concept Update
LIFULL Group Real Estate Investment Platform Concept Update The LIFULL Group is strengthening inter-business collaborations in order to create a network of funding services for real estate investment or re-purposing properties. In the future, we hope to combine these pieces into a global investment
Slide 37: Organizational Changes
Organizational Changes Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 36
Slide 38: Addition of Representative Director
Addition of Representative Director LIFULL Co., Ltd. (Planned for December 21, 2023) Strengthening Group management and governance with two leaders, the founder and next generation leader. President Inoue will guide the entire group while gradually delegating leadership to Mr. Ito INOUE Takashi ITO
Slide 39: Nominations of a Director and a Full-Time Auditor
(LIFULL Co., Ltd.) Nominations of a Director and a Full-Time Auditor The election of Directors and auditors will be proposed at the Ordinary General Meeting of Shareholders on December 21, 2023. Director (Candidate) Corporate Auditor(Candidate) SHISHIDO Kiyoshi OHSUMI Shoko Full-Time Outside Auditor
Slide 40: New Management Structure for the LIFULL Group
New Management Structure for the LIFULL Group Strengthening Group Governance & Business Leadership LIFULL Group Changes to be made in Dec. 2023 Representative Director and Chairperson INOUE Takashi Domestic Businesses1 Overseas Finance Technology Representative Director Director Director, Director,
Slide 41: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 40
Slide 42: Corporate Information (as of September 30, 2023)
Corporate Information (as of September 30, 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 Apr. 2022 Transition to TSE Prime Pres
Slide 43: 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 44: 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 45: Segments and Primary Services
Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) NabiSTAR HOME'S Services Advertising & Consulting Agency (LIFULL Marketing Partners Co., Ltd.) 1 Kenbiya (Kenbiya Co., Ltd.) LIFULL CONNECT S.L.U. Aggregation Services: Trovit, Mitula, Nestoria, Nuroa
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 25 (Merged in 2011) Acquisition of Trovit Cha
Slide 47: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly FY2020 FY2021 FY2022 FY2023 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue 9,202 9,983 7,706 8,510 8,271 9,581 9,072 8,931 8,510 9,530 8,645 9,044 7,583 11,585 8,825 8,410 HOME'S Services 6,763 7,543 6,176 6,652 6,346 7,260
Slide 48: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Reduction in advertising spending due to reductions in branding for LIFULL HOME'S Temporary increase in cost of sales due to sale of investments from the Regional Revitalization Fund 11.6% 11.4% 10.6% -0.8pt -0.6pt +0.3pt 11.0% 21.0% 25.9% 26.5% +4.9pt Cost of Sales -28
Slide 49: LIFULL HOME'S Key Performance Indicators: Client Network and ARPA
LIFULL HOME'S Key Performance Indicators Client Network and ARPA Although the total number of clients declined due to the removal of professional networks which included small-scale, non-active clients. Increased ARPA due to improved revenue and lower client numbers. 12-Month Average 12-Month Averag
Slide 50: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT 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 13,843 13,636 13,240 11,994 12,297 10,1
Slide 51: Overseas Segment Results
Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Profit contributions from FazWaz consolidated during the second quarter. Premium ad revenue continues a low levels due to the effects of increased costs of living and interest rates on real estate markets around the world. Quarterly
Slide 52: 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. Quarterly Revenue Unit: JPY mil. One-off earnings from sale of investments 2,704 by Regional Revitalization Fund ■
Slide 53: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) In line with our position of selective focus, continuing to limit large investments One-off profit increase from the Regional Revitalization Fund in the second quarter Quarterly Segment Profit and Loss Unit: JPY mil. One-off profits from the Regio
Slide 54: (Ref.) External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2022 2023 2020 2021 2022 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 27,228 33,636 29,569 1,128 2,287 2,492 2
Slide 55: (Ref.) 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: Sustainability Initiatives
Sustainability Initiatives Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 55
Slide 57: LIFULL Group Sustainability Initiatives
LIFULL Group Sustainability Initiatives Review of FY 2023/9 ✔ Human rights due diligence performed for all Group subsidiaries ✔ Established whistle blower channel for Business Partners ✔ Introduced 4-day workweek & shortened hour scheme for employees in Japan ✔ Completed partner survey for clients o
Slide 58: 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) LIFULL Sustainability Data (IR Site) Other Information about LIFULL (Prev. Twitter) Facebook Page LIFULL Sustainability Search E