Lifull Co.ltd. · TSE:2120
Lifull Co.ltd — NEXT — Q3 FY2015 Earnings Presentation
77 slides from Lifull Co.ltd's earnings presentation, Feb 12, 2015
Slide 1: Annual Report of Financial Statement, Third Quarter FY March 2015
Designing Delightful Encounters NEXT Co., Ltd. TSE 1st section 2120 Annual Report of Financial Statement Third Quarter of Year Ended March 31, 2015 (April 2014 to December 2014) Opinions and forecasts expressed in this document are those of management as of the date of publication and management doe
Slide 2: Contents
› Key Points Pages 3 › Financial Results for the 3Q of the Fiscal Year Page 4-13 Ending March 31, 2015 › Review of the Third Quarter Pages 14-17 › Our Initiative Pages 18-23 › Financial Results of Trovit Search,S.L. Pages 24-26 › Inquiries Regarding IR Data Pages 27 › Reference Data Pages 28-77 2
Slide 3: Key Points
Key Points The real estate information service business performed strongly Consolidated sales for the nine months to December 31, 2014 grew 13.7% year-on-year Operating profit for the period declined 6.3% year-on-year on the back of the Company’s strategic investment programs Property information co
Slide 4: Financial Results for the 3Q of the Fiscal Year Ending March 31, 2015
Financial Results for the 3Q of the Fiscal Year Ending March 31, 2015 4
Slide 5: Key Indicators
Key Indicators Financial results for 3Q of the fiscal year ending March 31, 2015 Consolidated financial results Sales (million yen) Operating profit (million yen) Net profit (million yen) 0.5 6.3 11,831 59.5 83.1 1,282 1,275 2,204 2,065 23.3 10,408 8,439 1,381 700 FY03/2013 FY03/2014 FY03/2015 FY03/
Slide 6: Simple Profit & Loss Statement
Simple Profit & Loss Statement Financial results for 3Q of the fiscal year ending March 31, 2015 Sales grew 13.7%, operating profit declined 6.3% and net profit decreased 0.5% year on year, respectively [Accumulated [Accumulated Change Percentage [Quarterly] [Quarterly] Percentage Total] Total] (Uni
Slide 7: Sales Breakdown
Sales Breakdown Financial results for 3Q of the fiscal year ending March 31, 2015 Operating profit margin of third quarter total deteriorated due to the Company’s strategic investment programs. For the third quarter, the operating profit margin improved by 0.3 % points. Nine months to December 31, 2
Slide 8: Sales by Service Category
Sales by Service Category Financial results for 3Q of the fiscal year ending March 31, 2015 Sales for the Rental & Real Estate Trade business increased by a massive 19.3% year on year. New Houses, Custom-Built Houses, and Renovations continued to be exposed to the adverse effects of the consumption
Slide 9: Profit and Loss by Segment
Profit and Loss by Segment Financial results for 3Q of the fiscal year ending March 31, 2015 Operating profit for the Real Estate Information Services business for the nine months to December 31, 2014 declined 5.8% year-on-year due to NEXT’s strategic investments. In the third quarter, it grew 19.1%
Slide 10: Financial Results as Compared to the Forecast and Achievement Rates
Financial Results as Compared to the Forecast and Achievement Rates for the Fiscal Year Ending March 31, 2015 Financial results for 3Q of the fiscal year ending March 31, 2015 Operating profit and loss Sales by service category [Actual] [Forecast] [Actual] [Forecast] Achievement Achievement (Unit: M
Slide 11: Dividend Forecast for the Fiscal Year Ending March 31, 2015
Dividend Forecast for the Fiscal Year Ending March 31, 2015 Financial results for 3Q of the fiscal year ending March 31, 2015 NEXT’s dividend increase forecast remains unchanged at this time Dividend per share 6.00 5.00 4.74 yen 4.92 yen 4.00 3.00 2.20 yen 2.00 1.20 yen 1.00 0.00 Mar 2012 Mar 2013 M
Slide 12: Consolidated Balance Sheet and Goodwill
Consolidated Balance Sheet and Goodwill Financial results for 3Q of the fiscal year ending March 31, 2015 The acquisition of Trovit caused goodwill to increase by 10,951 million yen and short-term borrowings by 7,000 million yen End of Previous Year End of 3Q Percentage Main reasons for Unit: Millio
Slide 13: Cash Flow
Cash Flow Financial results for 3Q of the fiscal year ending March 31, 2015 The balance of cash and cash equivalents as of December 31, 2014 stood at 2,900 million yen, a decrease of 5,400 million yen year-on-year, and at 3,900 million yen including time deposits FY03/2014 FY03/2015 FY03/2014 FY03/2
Slide 14: A Review of the Third Quarter
A Review of the Third Quarter 14
Slide 15: Trends in the Total Number of Properties Listed on HOME'S
Trends in the Total Number of Properties Listed on HOME'S A review of the third quarter The total number of properties listed on HOME’S exceeded the 5 million mark, continuing to post record highs The number of properties listed remaining at levels more than double that of competitors 6,0 00, 000 12
Slide 16: Number of Affiliated Stores
Number of Affiliated Stores A review of the third quarter Even after the billing rate revision, the number of affiliated stores has been growing smoothly, continuing to post record highs Record high (January 2015) Number of affiliated stores 13,143 stores 1,621 stores Change to the pay-per- Billing
Slide 17: Rental & Real Estate Trade Monthly Business Results
Rental & Real Estate Trade Monthly Business Results A review of the third quarter Due to the Company’s effective advertising investment programs, the Rental & Real Estate Trade business in particular posted significant sales growth Monthly sales have been hitting record highs Record high (January 20
Slide 18: Our Initiative
Our Initiative 18
Slide 19: NEXT's Branding Promotion Aimed at Becoming Overwhelming Number One Player
NEXT’s Branding Promotion Aimed at Becoming Overwhelming Number One Player in Japan Our Initiative Commercial airing across the country Expand the running of TV commercials by 40% or more (year on year) The number of viewable households in Japan: 35.42 million or more Five stories in which HOME’S, “
Slide 20: O2O Tracking
O2O Tracking Our Initiative Using acoustic communication technology to enable an analysis of customer actions from store visit to property visit to contract conclusion Store and property visit tracking scheme 3 4 1 1 Install a small-sized speaker in the store Detect the customer’s store visit by 2 u
Slide 21: Room Creation Simulation System: GRID VRICK
Room Creation Simulation System: GRID VRICK Our Initiative Just putting together Lego® blocks allows one to create a room in a three-dimensional virtual space Characteristics of GRID VRICK (1) Allows any users to create a floor (2) Decide on where to put doors, plan easily windows and furniture Plac
Slide 22: Interior Decoration Simulation System: GRID VRICK
Interior Decoration Simulation System: GRID VRICK Our Initiative A scheme allowing the user to view a GRID VRICK-based room in a true-to-life manner The user is allowed to alter the room fixtures and interior according to his/her preference Replace the wallpaper Replace the sofa ✔ Click ✔ Click Wear
Slide 23: GRID VRICK Utilization Concept
GRID VRICK Utilization Concept Our Initiative Helps improve custom-built house and renovation services (1) Allows the salesperson to propose plans without waiting for the creation of a floor (2) The customer can have a more true-to-life experience of what plan and scale model will become the complet
Slide 24: Financial Results of Trovit Search, S.L.
Financial Results of Trovit Search, S.L. To be consolidated starting from January 2015 24
Slide 25: Summary: Financial Results of Trovit Search, S.L.
Summary Financial Results of Trovit Search, S.L. Recently, both net sales and EBITDA grew substantially Sales (millions of euros) EBITDA (millions of euros) €22.5 €8.1 €17.5 € 5.8 € 2.1 €6.4 €6.1 €14.6 € 4.8 € 1.4 € 1.4 € 5.7 € 2.1 € 3.9 €3.8 € 1.1 €9.2 € 4.1 4Q € 2.0 € 0.4 € 4.0 € 5.5 3Q € 2.5 € 0.
Slide 26: Sales by Trovit Search, S.L. Starting to be Consolidated
Sales by Trovit Search, S.L. Starting to be Consolidated Financial Results of Trovit Search S.L. Sales for January 2015 grew 44.2% year-on-year owing to the consolidation of sales by Trovit Search S.L. Year-on-year Consolidated sales 1,975million yen Monthly sales trend % gain NEXT existing sales Ye
Slide 27: Inquiries Regarding IR Data
Inquiries Regarding IR Data IR official account on Twitter Official Facebook page IR Financial Result Contact us Guide to IR News NEXT Co., Ltd. IR Support Desk We provide monthly performance data and timely disclosure data Tel: +81-3-5783-3603 (Monday to Friday 10:00AM-6:00PM) in good time! Fax: +8
Slide 28: Reference data
Reference data Copyright(c) NEXT Co., Ltd. All Rights Reserved. 28
Slide 29: Corporate Data
Corporate Data Reference data Company Name NEXT Co., Ltd. (TSE 1st section: 2120) Representative Takashi Inoue, President and CEO Established March 12, 1997 (Fiscal year ending March 31) Capital 1,999 million yen Stock Issued 56,478,000 (including 36,536 shares of treasury stock) Consolidated Number
Slide 30: President's Profile
President's Profile Reference data Career History Joined Recruit COSMOS Co., Ltd. April, 1991 Responsible for condominium sales and circulated property brokering. Temporarily dispatched to the Recruit General Personnel Business Department. This move was later made permanent. July, 1991 Primarily eng
Slide 31: 3 Years in Review — Results of Structural Reform
3 Years in Review — Results of Structural Reform (Performance) Reference data Structural reform is ushering in the second stage of growth. In the fiscal year Ending March 31, 2015, NEXT has been implementing strategic investment programs, including M&A activities The Company’s existing businesses po
Slide 32: Mission statement and management philosophy
Mission statement and management philosophy 32
Slide 33: Designing Delightful Encounters
Designing Delightful Encounters 33
Slide 34: Medium- to Long-Term Business Goal
Medium- to Long-Term Business Goal Reference data Our medium-term strategy slogan is "Aiming to be a global company through DB and CCS" The user can access via any device Optimal Needs information Communication & concierge Analyze individual user preferences, CCS service then select and provide the
Slide 35: Medium- and Long-Term Business Objectives
Medium- and Long-Term Business Objectives Reference data We aim to be the undisputed No. 1 in real estate and housing information website, both in quality and volume No. 1 in total properties listed No. 1 in ease-of-use Goals No. 1 in user numbers No. 1 in accuracy of information 35
Slide 36: Investment Outlook
Investment Outlook Reference data Prioritize the domestic real estate market and invest in long-term growth Existing services New services New markets Overseas Information real estate services information outside of real estate services 3rd priority 4th priority 1st priority 2nd priority Domestic Ex
Slide 37: Investment Outlook
Investment Outlook Reference data Prioritize the domestic real estate market and invest in long-term growth Existing services New services New markets > Speed up PDCA cycles > Speed up PDCA cycles - Increase property numbers in current - MONEYMO countries of business - HOME'S Style Market - Explore
Slide 38: Real Estate Segment Tactics Outlook
Real Estate Segment Tactics Outlook Reference data Support both users and customers, and maximize closing rates Bring customers to Gaining more customers websites Maximizing user numbers Property searching Depart Improve products Visit again Improve CVR (inquiry rate) Inquiries Closing Expand databa
Slide 39: Branding Promotion Enhancement
Branding Promotion Enhancement Reference data Implement branding promotion continuously while measuring effects. Image of boosting the consumer recall rate (3) Raise the consumer recall rate. à Continuous branding P (2) Curb the forgetting rate. A D à OOH, mini TV programs, etc. C P (1) Increase the
Slide 40: Branding Promotion Enhancement
Branding Promotion Enhancement Reference data Expand channels, areas and ad placement compared to the previous quarter, thereby boosting user share. TV commercials TV commercials fromAug.18 OOH OOH YouTube YouTube fromAug.14 Campaign Campaign from Jan.14 5.5 billion yen Results in FY2014 A plan in F
Slide 41: The situation of the overseas competitor
The situation of the overseas competitor Reference data [NEXT,JP] [Zillow,US] [Rightmove,UK] Sales 14.6 Sales 23.2 Sales 24.7 Operating profit 2.2 Operating profit 1.9 Operating profit 17.1 Net profit 1.3 Net profit 1.4 Net profit 13.1 Recruit Sumai Company Ltd. [Trulia,US] Sales 16.8 Operating prof
Slide 42: Global Service Deliveries
Global Service Deliveries Reference data Next Group provides internet search sites in 46 countries around the world aggregator model Portal model Arab Emirates France New Zealand Sweden Indonesia Argentina Germany Nigeria Switzerland Japan Australia Hong Kong Pakistan Turkey Taiwan Austria Hungary P
Slide 43: Overseas Growth Strategy
Overseas Growth Strategy Reference data Have Trovit’s service areas expand further Trovit HOME’S › Have Trovit’s service areas expand further (Trovit JAPAN is scheduled to be launched in the spring of 2015) › Operation is not placed the local bases is carried out from Spain 43
Slide 44: Overseas Growth Strategy
Overseas Growth Strategy Reference data Leverage the know-how accumulated in Japan for overseas operations Trovit HOME’S › Leverage the know-how accumulated in Japan for overseas operations (marketing capability enhancement and new service development) › Begin generating profits at an accelerated pa
Slide 45: Medium- and long-term outlook
Medium- and long-term outlook Reference data Achieve the undisputed No.1 position in Japan and become a representative Internet company in the world Toward a Global Share of all Company as an relocating Overabundance of real estate No.1 users infrastructure information websites in share of users 40%
Slide 46: Medium- and Long-Term Growth Outlook
Medium- and Long-Term Growth Outlook Reference data Establish NEXT as No. 1 in market share for users of online relocation services and aim for operating profit ratio of 25%. 35 ,000 40 .0% 30 ,000 Sales 35 .0% Operating profit Operating profit ratio 30 .0% 25 ,000 25.0 25 .0% 17,895 20 ,000 20 .0%
Slide 47: Quarterly consolidated statements of income
Reference data Quarterly consolidated statements of income FY03/2013 FY03/2014 FY03/2015 Unit : million yen Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Sales 2,737 2,763 2,939 3,522 3,398 3,454 3,556 4,281 3,852 3,897 4,080 Real estate information 2,709 2,736 2,911 3,494 3,366 3,420 3,524 4,243 3,811 3,858 4,0
Slide 48: Number of Apartments for Sales and Price Trends
Reference data Number of Apartments for sales (Monthly) Source : Real Estate Economic Institute Co., Ltd. Unit Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 3,506 5,006 8,246 1,826 2,651 4,641 2,473 4,300 4,222 4,222 2,110 3,336 3,125 3,337 9,389 21.4% 22.3% 6.1% 6.1% -24.1% -9.7% -
Slide 49: Outline of 2013 Housing and Land Statistics Survey Preliminary Results
Outline of 2013 Housing and Land Statistics Survey Preliminary Results The total numbers of homes and households in Japan both hit record highs. Total numbers of homes and households in Japan 7,000 Up 3.05 million Total number of 6,063 6,000 homes 5,759 Total 5,389 households 5,025 number of 5,000 4
Slide 50: Outline of 2013 Housing and Land Statistics Survey Preliminary Results
Outline of 2013 Housing and Land Statistics Survey Preliminary Results The number and ratio of vacant homes in Japan also both hit record highs. NEXT expects to experience growing needs for property advertising. Number and ratio of vacant homes in Japan 9,000 15.0% Ratio of vacant 13.5% homes: Right
Slide 51: Service
Service 51
Slide 52: Introduction to HOME'S Service
Introduction to “HOME‘S” Service 52
Slide 53: Introduction to HOME'S Service
Introduction to “HOME‘S” Service Rent We provide a property search application for persons with visual impairments 53
Slide 54: Smart Device-Targeted Service by the HOME'S Website
Smart Device-Targeted Service by the HOME’S Website Service NEXT delivers smart device-targeted service as well for Smartphones The iOS and Android applications by the HOME’S website Displays a complete set of property information available with regard to a given building Allows the user to make a t
Slide 55: Ranked No.1 as the Easiest Smartphone Site to Use
Introduction to “HOME‘S” Service Ranked “No.1” as the “Easiest” (*1) Smartphone Site to Use HOME'S No. 2 No. 3 No.4 House foods No.5 Tokyo Metro No.6 kakaku.com No.7 UNITED ARROWS No.8 NISSAN Motor No.9 At Home No.10 Amazon.com (*1) Tribeck Strategies Inc.'s "smart phone website usability diagnosis"
Slide 56: Initiative by the HOME'S Website Service
Initiative by the HOME’S Website Service The user is allowed to select a use method according to his/her various needs Property Sale Assessment Service Credit card-based payment settlement service In collaboration with ROYAL GATE INC., NEXT launched a credit card-based payment settlement service as
Slide 57: Initiative by the HOME'S Website Service
Initiative by the HOME’S Website Service HOME’S support your peace of mind after moving in. Provides a one-year warranty on previously-owned A 10-year Warranty is Granted for Facilities equipment of New Single Family Homes “HOME’S Relocation Warranty” service is an equipment warranty We offer “HOME’
Slide 58: Introduction to MONEYMO
Introduction to “MONEYMO” Service Insurance agency search and appointment website “MONEYMO” provides various services to help users reconsider their finances such as sign up for consultation on life insurance. n More than 1,000 stores across the country n Various insurance information n Mortgage con
Slide 59: Introduction to HOME'S Style Market
Introduction to “HOME'S Style Market” Service Furniture/interior EC website “HOME'S Style Market” is an interior EC website where you can select from interior styles. Rather than simply choosing the furniture, you can make a selection while looking at photos of rooms in a catalog-like display and pi
Slide 60: Services for Real Estate Industry
Services for Real Estate Industry Service CRM services for realtors Real estate website creation service A business support service provided by NEXT subsidiary Renters for Annex is a "next-generation homepage service" that allows rental property realtors The service provides CRM, batch conversion of
Slide 61: New Services Tailored to Real Estate Agents to be Released
New Services Tailored to Real Estate Agents to be Released Service Launch industry-specific DMP* services targeting real estate agents. Optimize the effect of customers’ web ads, thereby helping them increase closing rates and sales. * DMPData Management Platform Real Estate Solution (problem solvin
Slide 62: Revision to HOME'S Rental & Real Estate Trade Billing Rates
Revision to HOME’S Rental & Real Estate Trade Billing Rates Service Made partial revision to the pay-per-inquiry-based billing rates for the Rental & Real Estate Trade business Raising the minimum billing rates enabled NEXT to begin making further advertisement-related investments, and to start achi
Slide 63: HOME'S Renovation: Shifting to pay-per-contract
“HOME’S Renovation”: Shifting to pay-per-contract Service Aim to achieve increased profits by shifting to the pay-per-transaction scheme from pay-per- inquiry scheme Home renovation fee charging scheme From October 1, 2014 Base monthly fee: Tender fee: 500 yen Contract fee: Work 10,000 yen per tende
Slide 64: About Trovit Search, S.L.
About Trovit Search, S.L. trovit » NEXT Co.,Ltd. a
Slide 65: Intend to Make Trovit Search S.L. a Subsidiary of NEXT
Intend to Make Trovit Search S.L. a Subsidiary of NEXT About Trovit Search, S.L. › Company name Trovit Search, S.L. (headquartered in Spain) › Representative Iñaki Ecenarro , President and CEO › Established October , 2006 › Consolidated Number of Employees 91 persons › Business description Operation
Slide 66: Trovit's management
Trovit’s management About Trovit Search, S.L. › The majority of Trovit’s directors are personnel from NEXT including Inoue who is President and CEO of NEXT. › We dispatch personnel for all directions from Japan and provide full support until the local sites will be on a growth path. Directors Presid
Slide 67: Trovit's management team
Trovit’s management team About Trovit Search, S.L. › As partially mentioned in the “Question 5”, the current major management team will continue to promote business activities and maintain the system so that Trovit will not lose its strengths. Iñaki Ecenarro CEO&Co-Founder Born on July 22,1973 (41 y
Slide 68: What is aggregation site provided by Trovit?
What is aggregation site provided by Trovit? About Trovit Search, S.L. Trovit operates aggregation sites which consolidate multiple information-specific sites Image of aggregation site Portal site A (HOME'S, etc.) Portal site B Portal site C Portal site D Users all around Create information the worl
Slide 69: Trovit operates one of the world's largest aggregator sites
Trovit operate largest aggregator sites of one of the world's About Trovit Search, S.L. With focus on real estate, Trovit provides internet search sites in 43 countries around the world Arab Emirates France New Zealand Sweden Argentina Germany Nigeria Switzerland Australia Hong Kong Pakistan Turkey
Slide 70: The number of users of real estate information sites in the world
The number of users of real estate information sites in the world About Trovit Search, S.L. The number of users of Trovit per month is in the world’s top class in the real estate information sites Comparison regarding the number of users per month between Trovit and other real estate information sit
Slide 71: Strength of Trovit
Strength of Trovit About Trovit Search, S.L. › Why Trovit has as many as 47 million users per month • The world’s top-class SEO technology. Acquire approximately 90% of traffic for free of charge (SimilarWeb data as of August of 2014) • Systematize/automate SEO operation • Operate websites in 39 cou
Slide 72: Advantages of HOME'S x Trovit
Advantages of HOME’S x Trovit About Trovit Search, S.L. Making one group allows to cover almost all SEO technologies, achieving the world’s top level of online traffic creation capability Amount of searches Mutual complement Domain where NEXT leads to the world’s (HOME’S) is strong top level of onli
Slide 73: Operations in Japan
Operations in Japan About Trovit Search, S.L. Trovit JAPAN is scheduled to launch its operations in the spring of 2015 Partner portal sites To act as a provider of multiple categories of information Real estate Cars Jobs NAVITIME Japan AEON Housing Mapion Japan Rakuten Real Japan *The diagram shown
Slide 74: Culture fit of Trovit x NEXT
“Culture fit” of Trovit x NEXT About Trovit Search, S.L. “Help anyone in any country to “Create a society where everyone can attain find a home, car, job, ….” Management based comfort and happiness through continuing on philosophy social innovations” Composition ratio of employees Corporate Composit
Slide 75: NEXT's aim is to locate residences of the near future
NEXT’s aim is to locate residences of the near future 75
Slide 76: Strengthen efforts towards new technology
Strengthen efforts towards new technology NEXT’s aim is to locate residences of the near future NEXT’s aim is to locate residences of the near future 76
Slide 77: A virtual sneak peek app Room VR
Strengthen efforts towards new technology NEXT’s aim is to locate residences of the near future A virtual sneak peek app “Room VR” 77