Lifull Co.ltd. · TSE:2120

Lifull Co.ltd — Q2 FY2018/9 Earnings Presentation

46 slides from Lifull Co.ltd's earnings presentation, May 2018

  1. Slide 1: Earnings Presentation IFRS

    LIFULL Co., Ltd. Earnings Presentation IFRS Second Quarter of the Fiscal Year Ending September 30, 2018 (October 2017 to March 2018) 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 guarant

  2. Slide 2: Index

    Index 1. Key Points P.02 2. Consolidated Results for FY2018/9 Q2 P.03 3. Progress of Business Forecast P.11 4. Business Standings P.16 5. Overseas Business Strategy P.28 6. Appendix P.31 7. IR Office Information P.45

  3. Slide 3: Key Points

    Key Points 1. FY2018/9 Q2: Revenue was up +9.3% YoY to 17.6 billion yen EBITDA was up +28.0% YoY to 3 billion yen 2. Impacts of acquiring Mitula Group Limited will be disclosed in a timely fashion once finalized 3. Key Indicators: Number of clients grew (up +14.3% YoY) Strategy to increase ARPA stil

  4. Slide 4: Consolidated Results for FY2018/9 Q2

    Consolidated Results for FY2018/9 Q2 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3

  5. Slide 5: Condensed Statements of Income and Loss

    Condensed Statements of Income and Loss IFRS Revenue was up 9.3% YoY, EBITDA was up 28.0%, quarterly net profit was grew sharply by 44.4%. FY17/3 FY18/9 Q2 Change Unit: JPY mil Change Main items Oct.-Mar. Oct.-Mar. % Revenue 16,163 17,669 +1,506 +9.3% Revenue increased across all segments. Cost of s

  6. Slide 6: Expense-to-Revenue Ratio

    Expense-to-Revenue Ratio IFRS Despite an increase in the ratio of advertising expenses, the EBITDA margin improved thanks to lower ratios of cost of sales and other SG&A and personnel expenses 25.2% +3.7p 27.2% 28.9% +2.5p 31.4% -4.2p Cost of sales and other SG&A 33.6% -5.9p 27.7% +3.2p +3.6p Advert

  7. Slide 7: Sales by Segment

    Sales by Segment IFRS Continued increase in revenue in all segments FY17/3 FY18/9 Q2 Change Unit: JPY mil Change Main items % Oct.-Mar. Oct.-Mar. Revenue 16,163 17,669 +1,506 +9.3% While the number of clients grew steadily, ARPA declined. HOME'S Services In process of increasing ARPA, but has not ye

  8. Slide 8: Segment Income and Loss

    Segment Income and Loss IFRS Overseas Business sharp increase in revenue, mostly due to decrease in Trovit’s personnel expenses FY17/3 FY18/9 Q2 Change Unit: JPY mil Change Main items Oct.-Mar. Oct.-Mar. % Segment income and loss 1,632 2,403 +770 +47.2% Revenue increased due to temporary costs assoc

  9. Slide 9: (ref.) Condensed Statements of Profit and Loss (quarterly)

    (ref.) Condensed Statements of Profit and Loss (quarterly) IFRS Strategy to increase ARPA to accelerate business growth in the HOME’S Services Business is still in progress, but profitability has improved considerably FY17/3 FY18/9 FY17/3 FY18 Change Change Unit: JPY m il Q4 Q2 Change Unit JPY m il

  10. Slide 10: Condensed Statements of Financial Position and Goodwill

    Condensed Statements of Financial Position and Goodwill IFRS Current assets increased along with sales growth As of As of Unit: JPY mil Change Change Main items Dec 31, 2017 Mar 31, 2018 Decrease in cash and deposits -63 Assets 26,363 27,457 +1,093 +4.1% Increase in accounts receivable - trade +694

  11. Slide 11: Condensed Statements of Cash Flows

    Condensed Statements of Cash Flows IFRS Slight decrease in cash and cash equivalents to JPY 5.4B (decrease by apprx JPY 600M) Main items FY17/3 FY18/9 Q2 Unit: JPY mil Change FY17/3 FY18/9 Q2 Items Oct.-Mar. Oct.-Mar. Oct.-Mar. Oct.-Mar. Income before income taxes +1,563 +2,426 Depreciation and amor

  12. Slide 12: Progress of Business Forecast

    Progress of Business Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 11

  13. Slide 13: FY2018/9 Forecast and Progress

    FY2018/9 Forecast and Progress IFRS Statements of Income and Loss Sales by Segment FY18/9 FY18/9 Q2 FY18/9 FY18/9 Q2 Oct.-Sep. Oct.-Mar. Oct.-Sep. Oct.-Mar. Unit: JPY m il Progress Unit: JPY m il Progress [Full-year [Full-year [Actual] [Actual] forecast] forecast] Revenue 41,000 17,669 43.1% Revenue

  14. Slide 14: Mid-Term Business Plan: JPY 50+ billion in Revenue

    Mid-Term Business Plan Mid-Term Business Plan’s Target set to September 2020, in accordance with the FY change (億円) (billion 50 JPY) Revenue 50+billion JPY 40 FY2020/9 30 JPY50+billion in Revenue EBITDA appx. 20％ 20 * 10 * For the period ended September 2017, the irregular 0 settlement of accounts f

  15. Slide 15: Restructuring of the Business Strategy and the Organization

    Restructuring of the Business Strategy and the Organization Streamlining to enhance competitive advantage 01 02 HOME’S Services Business Overseas Business Improve competitiveness in Focus resources on Focus resources to main businesses by Trovit and Mitula increase competitiveness withdrawing from u

  16. Slide 16: Mitula Group Limited Acquisition: Impact on Fiscal Year and Mid-Term Plan

    Mitula Group Limited Acquisition: Impact on Current Fiscal Year and Mid-Term Management Plan The impact on business performance is under review. To be disclosed as soon as figures finalized. Schedule Mid-term Management Plan α （Sales Revenue） (billion JPY) May 9 June 28 Aug - Sep November Impact of

  17. Slide 17: Business Standings

    Business Standings Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 16

  18. Slide 18: LIFULL HOME'S Core Strategy

    Global Mid-to-Long Term Platform Expanding Strategy Roadmap real-estate Stimulating markets real-estate Transforming markets the real-estate industry Covering the Akiya Bank Covering the Data- information and evaluations Building the global Vacation rental information of base (property info, pricing

  19. Slide 19: Expanding the Client Network

    Expanding the Client Network Number of clients grew steadily. ARPA decreased YoY due to expanding the client network in local regions and small-to-mid sized real estate companies. No. of Clients (JPY) (円) ARPA 120,000 112,492 29,000 103,358 27,445 100,000 27,042 27,000 26,492 26,040 87,329 83,326 83

  20. Slide 20: Expanding the Number of Total Information Listed

    Expanding the Number of Total Information Listed No. of Total Information Listed (mil) 9 Maintain 8 7.16mil the High Volume of 7 7.46mil Listed Information 6 5 4 3 2 1 0 *Total information: properties for rental, real estate sales, 2015 2017 2018 investment, and new houses and condos. Apr. Mar. Mar.

  21. Slide 21: Visualizing the Price Information - PRICE MAP

    Visualizing the Price Information - “PRICE MAP” 業界の変革 市場活性化 市場拡大 グローバル プラットフォーム Soon to Expand service to all of Japan Soon to be Available in May Nationwide PRICE MAP 検索 www.homes.co.jp/price-map 20

  22. Slide 22: Enhancing Media Power - LIFULL HOME'S Android App

    Enhancing Media Power - LIFULL HOME’S Android App 業界の変革 市場活性化 市場拡大 グローバル プラットフォーム Draws on state-of-the-art technology to provide information perfectly tailored to each user Rental property proposal functions offered by AI The app learns as you view properties and suggests properties that match your

  23. Slide 23: Enhancing Media Power - Improving Information Accuracy

    Enhancing Media Power - Improving Information Accuracy 業界の変革 市場活性化 市場拡大 グローバル プラットフォーム Makes information more accurate by automatically detecting information on properties in violation of terms. Overview of System for Automatically Detecting Other Initiatives Properties in Violation of Terms ■ Coord

  24. Slide 24: Enhancing Media Power - Promotions

    Enhancing Media Power - Promotions 業界の変革 市場活性化 市場拡大 グローバル プラットフォーム Since April, we’ve continued to promote “LIFULL HOME’S LIVE” and To use a diverse media mix to strengthen the brand TV Commercial HOME’S-kun Cafe LIFULL HOME’S TV commercial “Searching for a home from far away” began A pop-up shop op

  25. Slide 25: Making Real Estate Transactions Available Online - LIFULL HOME'S LIVE

    Making Real Estate Transactions Available Online – “LIFULL HOME’S LIVE” グローバル プラットフォーム 市場拡大 市場活性化 業界の変革 TV commercials and other efforts have increased the use of LIFULL HOME’S LIVE to appx 2,000 cases/month LIFULL HOME’S LIVE Comments from our Clients This service lets users view properties, ask 

  26. Slide 26: Revitalizing the Second-Hand Market

    Revitalizing the Second-Hand Market グローバル プラットフォーム 市場拡大 市場活性化 業界の変革 Work to solve the social problem of “empty homes” by providing various solutions such as by developing a comprehensive database of vacant homes, and by developing new ways to utilize them Details Details P26 P27 Develop Akiya Bank N

  27. Slide 27: LIFULL HOME'S Akiya Bank Official Release

    LIFULL HOME’S Akiya Bank Official Release グローバル プラットフォーム 市場拡大 市場活性化 業界の変革 Currently, 480 local governments (out of appx 900 total) have registered for the service (as of May 10, 2018) LIFULL HOME’S Akiya Bank Now with map-based search, hazard maps, etc. https://www.homes.co.jp/akiyabank/ 26 26

  28. Slide 28: RAKUTEN LIFULL STAY - Vacation STAY

    RAKUTEN LIFULL STAY - “Vacation STAY” グローバル プラットフォーム 市場拡大 市場活性化 業界の変革 Registration of properties to Vacation STAY - the vacation rental and accommodation reservations site - has begun Global accommodation and vacation rental reservation sites Automatic Posting Vacation STAY 検索 Fee structure (service

  29. Slide 29: Overseas Business

    Overseas Business Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 28

  30. Slide 30: Trovit X Mitula

    グローバル Trovit X Mitula プラットフォーム 市場拡大 市場活性化 業界の変革 Accelerate the development of a global platform with Trovit and Mitula at its center Site Visitors Global Footprint Listings （Monthly UV） over 170M 57 -> 63countries over 400M 29

  31. Slide 31: Make every LIFE FULL.

    rq LJ) CIFULL m7 |, LIFULL Make every LIFE FULL. 30

  32. Slide 32: Appendix

    Appendix Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 31

  33. Slide 33: Corporate Info (as of March 31, 2018)

    Corporate Info (as of March 31, 2018) 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 118,

  34. Slide 34: LIFULL HOME'S

    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 (2018.1.30) • Besides the quantity of information, LIFULL HOME’S established screening team

  35. Slide 35: 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 provided planning undertaken Online property Call Center Counter Online contact Services Viewing Started to provide since FY18/9 Q1 The LIFULL HOME’S app Ho

  36. Slide 36: Steady Growth: Expanding the Client Network

    Expanding the Client Network No. of Affiliated Offices * Mid to Long-Term Target *Number of real estate agents in the number of clients(offices) on P18 40,000 offices Steady Growth 24,640 offices 21,270 offices 2011 2017 2018 Mar. Mar. Mar. 20XX 35

  37. Slide 37: (ref.) Number of Properties Listed

    (ref.) Number of Properties Listed Rentals and Real Estate Sales New Houses and Condos (mil) 8 (building) 13,098 buildings 7.43mil 6.72mil 10,000 6 8,560 buildings 8,000 6,000 4 4,000 2 2,000 0 0 2008 2017 2018 Co. Co. Co. 2010 2017 2018 Apr. Mar. Mar. A B C Apr. Mar. Mar. 36

  38. Slide 38: (ref.) Definition of No. of Clients and ARPA

    (ref.) Definition of No. of Clients and ARPA Number of clients: The total paid clients of LIFULL HOME’S and LIFULL Marketing Partners (including the clients who use DMP and CRM) Definition ARPA: Average Revenue Per Agent HOME’S Services Business revenue / number of clients *Excluding LIFULL Remodel

  39. Slide 39: New Business - New Service

    New Business – New Service Rental meeting room and rental space information site “LIFULL Rental Space” launched. Rental Meeting Room and Rental Space Information Site Service started Jan 2018 https://www.homes.co.jp/rentalspace 38

  40. Slide 40: LIFULL Group Services

    LIFULL Group Services LIFULL Kaigo LIFULL Hoken Sodan LIFULL Interior LIFULL Hikkoshi (nursing 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 “L

  41. Slide 41: LIFULL Group Companies (1)

    LIFULL Group Companies (1) (in chronological order by effective date of establishment or addition to the scope of consolidation) PT. LIFULL MEDIA INDONESIA  Planning and operation of “LIFULL Rumah” a real estate and housing information website in Indonesia (equity method affiliate)  Home hunting p

  42. Slide 42: LIFULL Group Companies (2)

    LIFULL Group Companies (2) (in chronological order by effective date of establishment or addition to the scope of consolidation) LIFULL bizas  Administration and other back office operation outsourcee  Call center operation outsourcee LIFULL Remodel  Online home building mediation service  Recon

  43. Slide 43: Segments and Major Services

    Segments and Major Services Segments Main services HOME’S Services Business LIFULL HOME’S AD Master (former Renter’s Net) NabiSTAR LIFULL Marketing Partners Co., Ltd. LIFULL Remodel Co., Ltd. Overseas Business Trovit (Trovit Search, S.L.) LIFULL Australia LIFULL Immofinder Others Business LIFULL Kai

  44. Slide 44: Consolidated Statements of Profit and Loss (quarterly)

    Consolidated Statements of Profit and Loss (quarterly) FY2016/03 FY2017/03 FY2017/09 FY2018/09 Unit : JPY mil 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q Revenue 5,457 6,441 6,280 7,527 6,846 6,910 7,107 9,056 7,793 8,154 8,128 9,541 HOME'S Services Business 4,280 5,210 5,167 6,263 5,616 5,782 5,955 7,662 6

  45. Slide 45: External Market Data

    External Market Data 2015 2016 2017 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 40,449 35,772 35,898 2,903 2,701 7,007 1,384 2,310 3,408 2,741 2,603 2,284 3,426 2,101 2,978

  46. Slide 46: IR Office Information

    IR Office Information Contact us Guide to IR News LIFULL Co., Ltd IR Desk TEL +81-3-6774-1603 We provide timely disclosure data by email. (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@LIFUL

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