Slide 1: Full-Year Results FY 2024/9 Q4
LIFULL Co., Ltd. Full-Year Results FY 2024/9 Q4 (October 2023 – September 2024) November 28, 2024 We corrected the actual results in the Consolidated Financial Report for the Fiscal Year Ended September 30, 2024 (IFRS) released on November 13, 2024, and have reflected these corrections in this prese
Slide 2: Corrections to Impairment: Corrections to the Book Value
Corrected on Corrections to Impairment Corrections to the Book Value November 28, 2024 Impairment increased from ¥3.8 to ¥7.0 bil. due to corrections to the working capital and book value of LIFULL CONNECT. The earnout for the acquisition of FazWaz has been excluded from fixed liabilities. The
Slide 3: Corrections to Impairment: Impact Apart from Consolidated Operating Profit
Corrected on Corrections to Impairment Impact Apart from Consolidated Operating Profit November 28, 2024 Net assets decreased due to impairment of goodwill (see image below.) However, as there is no cash outflow involved, this change does not affect dividends for FY 2024/9. There are also no c
Slide 4: Index
Index 1. Main Points for FY 2024/9 2 2. FY 2024/9 Consolidated Earnings Summary 3 3. Shareholder Returns 7 4. FY 2024/9 Results by Segment • HOME'S Services 8 • Overseas (Impairment Loss) 15 • Other Businesses 21 5. FY 2025/9 Full-Year Forecast 23 6. LIFULL HOME'S Growth Strategy 25 7. Strategic Tra
Slide 5: Main Points for FY 2024/9
Main Points for FY 2024/9 1. Continued recovery in HOME'S Services 2. Strategic transformations planned for Overseas 3. Final year of the current Mid-Term Management Plan (FY 2020/9 – FY 2025) Focusing resources on domestic growth to achieve operating profit targets • Consolidated Target: ¥5.0+ bil.
Slide 6: FY 2024/9 Consolidated Earnings Summary
FY 2024/9 Consolidated Earnings Summary 3
Slide 7: Consolidated Summary: Revenue
Consolidated Summary Revenue ¥0.69 bil. (2.1%) growth after removing effects of one-off revenue in previous fiscal year Primarily due to growth in the domestic HOME'S Services segment (JPY Bil.) 36.4 Consolidated Revenue • Revenue from the sale of Regional +2.1% Revitalization Fund (Oct. – Sep.) Ass
Slide 8: Consolidated Summary: Operating Profit
Corrected on Consolidated Summary Operating Profit November 28, 2024 Operating loss of ¥6.4 bil. primarily due to an impairment loss of approx. ¥7.0 bil. (JPY Bil.) Consolidated Operating Profit 1.8 (Oct. – Sep.) -6.4 Result YoY -¥6.4 Bil. -¥8.2 Bil. Details on the breakdown of operating profit/loss
Slide 9: Consolidated Summary: Operating Profit Excluding One-Off Factors
Corrected on Consolidated Summary Operating Profit November 28, 2024 There were a number of one-off changes in the current and previous fiscal years, ■ Adjusted Profit but if these factors are excluded, operating profit would have decreased by ¥0.74 bil. ■ One-off Factors ■ Actual Results FY 2023/9
Slide 10: Shareholder Returns (No Changes to Policy)
Shareholder Returns (No Changes to Policy) We set the payout ratio of 25.0% in FY 2018/9 and have taken outstanding circumstances into consideration Dividends per Share Payout Ratio (JPY) Items Removed from Calculation of Dividend Payments in FY 2024/9 5.00 • 4.26 4.00 Impairment Loss • Tax benefits
Slide 11: Results by Segment: HOME'S Services
Results by Segment HOME'S Services 8
Slide 12: Main Points in the HOME'S Services Segment
Main Points in the HOME'S Services Segment 1. Increased revenue (YoY +3.4%) from accelerated growth 2. Growth in inquiries to our clients as a result of strategic initiatives 3. Proactive investments for growth in revenue and profit during FY 2025/9 9
Slide 13: HOME'S Services FY 2024/9 Results Overview
HOME'S Services FY 2024/9 Results Overview Increase in revenue (+3.4% YoY) with accelerated growth over the year Profit decreased due to proactive investments for revenue and profit growth in FY 2025/9. FY 2024/9 (Oct. - Sep.) Quarterly Revenue (JPY Bil.) ■ FY 2024/9 ■ FY 2023/9 Revenue Profit Resul
Slide 14: HOME'S Services Results of FY 2024/9
HOME'S Services Results of FY 2024/9 Growth in organic traffic resulting from our strategic initiatives throughout the year. Our operations have become more profitable due to sales initiatives and optimization of advertising spend. More Organic Traffic See Page 12 Improved Traffic Acquisition Develo
Slide 15: HOME'S Services Actions Taken During FY 2024/9
Corrected on HOME'S Services Actions Taken During FY 2024/9 November 28, 2024 We are providing more value every day with continuous improvements and updates to our website while increasing our clients with stronger sales initiatives. SITE DEVELOPMENT SALES INITIATIVES Bringing and improved Super Hyp
Slide 16: HOME'S Services: More Inquiries
HOME'S Services More Inquiries We have further boosted the incoming volume of inquiries to real estate professionals via LIFULL HOME'S and Kenbiya through our efforts throughout the year. Examples of Markets Showing Strong Growth in Inquiries Strong Growth in Re-sale Appraisals Inquiries via Inquiri
Slide 17: HOME'S Services: More Efficient Advertising for Improved Profitability
HOME'S Services More Efficient Advertising for Improved Profitability We are constantly evolving our marketing mix to both drive traffic growth and improvement in the overall profitability of LIFULL HOME'S. Branding YouTube Videos Paid Advertising (Increased Brand Awareness) Online (Directly Linked
Slide 18: Results by Segment: Overseas
Results by Segment Overseas 15
Slide 19: Overseas Business Main Points
Corrected on Overseas Business Main Points November 28, 2024 1. Impact of performance of aggregation sites 2. Impairment loss for FY 2024/9 (¥7.0 bil.) 3. New course of strategic transformation 16
Slide 20: Overseas FY 2024/9 Results Overview
Overseas FY 2024/9 Results Overview Revenue from Direct services has grown while aggregation revenue continues to decline. Additionally, the segment was loss-making due to one-off costs geared at re-planning and recovery. FY 2024/9 (Oct. - Sep.) Segment Profit (JPY Bil.) Revenue Profit FY 2023/9 FY
Slide 21: Overseas Initiatives During FY2024/9
Overseas Initiatives During FY2024/9 During the year, we changed the management structure to return the business to profitability. The new management team, then, implemented a recovery plan resulting in partial improvement. Jan. 2024 Mar. 2024 Jun. 2024 Change in management team Delays in budget ach
Slide 22: Overseas: Status of our Aggregation Sites
Overseas Status of our Aggregation Sites Although we have seen growth in our Direct services and partial recovery in aggregation sites, organic traffic and revenue for aggregation remain affected by external factors. LIFULL CONNECT Revenue Results of Recovery Actions for Aggregation Sites YoY IMPROV
Slide 23: Overseas: Recording of an Impairment Loss
Corrected on Overseas Recording of an Impairment Loss November 28, 2024 As a result of lower organic traffic due to external factors, aggregation revenue has continued to decline. This situation has deviated significantly from our original assumptions, and we have, therefore, recorded an impairment
Slide 24: Results by Segment: Other Businesses
Results by Segment Other Businesses 21
Slide 25: Other Businesses FY 2024/9 Results Overview
Other Businesses FY 2024/9 Results Overview Revenue remained at similar levels after removing one-time gains from the sale of assets of the Regional Revitalization Fund and LIFULL SPACE. Following our policy of selective focus, we have improved segment loss by ¥0.19 bil. even with proactive investme
Slide 26: FY 2025/9 Results Forecast
FY 2025/9 Results Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 23
Slide 27: FY 2025/9 Results Forecast
Corrected on FY 2025/9 Results Forecast November 28, 2024 We will revise our forecast as soon as the details of the strategic transformation of the Overseas segment (Pages 28 – 33) have been finalized. Condensed Statemants of Income and Loss Revenue by Segment FY 2024 FY 2025 FY 2024 FY 2025 Oct.-Se
Slide 28: LIFULL HOME'S Growth Strategy
FY 2025/9 LIFULL HOME'S Growth Strategy 25
Slide 29: LIFULL HOME'S FY 2025/9 Growth Strategy
LIFULL HOME'S FY 2025/9 Growth Strategy We will continue to boost our media presence and revenue growth through a combination of enhanced development and sales and work toward our Mid-Term standalone profit target of ¥3.0 bil. Continuing our Focus 1 Current Growth Strategy Continued with revenue on
Slide 30: LIFULL HOME'S FY 2025/9 Growth Strategy Operations Team
LIFULL HOME'S FY 2025/9 Growth Strategy Operations Team We have named outstanding leaders to oversee each area of our business and will continue to work as a team to push growth to the next level. April 2024 Named Operational Leaders by Market and Role Spreading leadership of each Assistant Heads of
Slide 31: Strategic Transformation of the Overseas Business
Strategic Transformation of the Overseas Business 28
Slide 32: Transformation of the Overseas Business: Background
Transformation of the Overseas Business Background – 1 - We have made progress toward our growth strategy "Moving to Direct," shifting to business models closer to the actual transaction, and have expanded revenue in our Direct services through strategic acquisitions. However, the decline of our agg
Slide 33: Transformation of the Overseas Business: Background 2
Transformation of the Overseas Business Background – 2 - Through a strategic transformation of the loss-making Overseas segment, we will be able to better focus our management resources on further growth in our recovering domestic HOME'S Services segment. HOME'S Services Segment Revenue Consolidated
Slide 34: Transformation of the Overseas Business: Founders of FazWaz
Transformation of the Overseas Business Founders of FazWaz Management of LIFULL CONNECT will be transferred to a team led by Michael Kenner, one of the Founders of FazWaz (Planned). FazWaz has experienced steady growth under the leadership of its highly experienced and motivated management team. Tec
Slide 35: Transformation of the Overseas Business: Planned Structure
Transformation of the Overseas Business Planned Structure Current plan, but subject to change as discussions progress • LIFULL CONNECT is planned to be transferred to the Founders of FazWaz • The expiration of the requirement to pay the earnout (earnings-based payment for the acquisition of FazWaz)
Slide 36: Transformation of the Overseas Business: Schedule
Transformation of the Overseas Business Schedule Following the current schedule, LIFULL CONNECT will leave consolidation in Jan. 2025. If approved and control is passed from LIFULL, the expiration of the earnout is also expected to contribute to profit. (Actual Effects TBD) Expected Impact on Transa
Slide 37: Current Mid-Term Management Plan (Ending FY 2025/9)
Current Mid-Term Management Plan (Ending FY 2025/9) No change as we strive to reach operating profit targets Operating Profit Targets Consolidated: ¥5.0+ Billion Non-Consolidated: ¥3.0+ Bil. POINT Assuming Strategic Transformation of POINT Revenue Growth in HOME'S Services Overseas Businesses Contin
Slide 38: Changes to Director Remuneration
Changes to Director Remuneration Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 35
Slide 39: Implementation of a Restricted Stock Plan for Directors
Implementation of a Restricted Stock Plan for Directors We propose to amend remuneration packages for Directors to include a Restricted Share Plan. This proposal will be submitted to the 30th General Meeting of Shareholders for approval on Dec. 23, 2024. Objectives Overview of the Plan • Incentivize
Slide 40: Financial Results
rq LJ eIFULL Financial Results 37
Slide 41: Condensed Statements of Income and Loss IFRS
Corrected on Condensed Statements of Income and Loss IFRS November 28, 2024 ¥0.6 bil. (2.1%) growth after removing effects of one-off revenue in previous FY. Losses from impairment loss in Overseas segment as well as recalculation of earnings-based acquisition payment for FazWaz (earnout.) FY2023/9
Slide 42: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS Revenue increase in HOME'S Services from growth initiatives. Reduced revenue and profit overseas due to external factors affecting aggregation traffic. FY2023/9 FY2024/9 Change Change Main items Unit: JPY mil. (Oct.-Sep.) (Oct.-Sep.) % Revenue 36,405 34,466
Slide 43: Condensed Statement of Financial Position and Goodwill IFRS
Corrected on Condensed Statement of Financial Position and Goodwill IFRS November 28, 2024 Goodwill declined by ¥6.3 bil. due to impairment loss in LIFULL CONNECT (Details on Page 20.) As of As of Change Change % Main items Unit: JPY mil. Sep 30, 2023 Sep 30, 2024 Current assets 23,064 21,589 -1,474
Slide 44: Condensed Statement of Cash Flow IFRS
Corrected on Condensed Statement of Cash Flow IFRS November 28, 2024 Cash and cash equivalents declined by ¥1.8 bil. to ¥14.6 bil. primarily due to repayment of loans (¥2.2 bil.) FY2023/9 FY2024/9 Change Main items Unit: JPY mil. (Oct.-Sep.) (Oct.-Sep.) Items FY2023/9 FY2024/9 Profit for the period
Slide 45: Appendices
Appendices 42
Slide 46: Topics from Q4 of FY 2024/9
Topics from Q4 of FY 2024/9 First Real Estate Portal in Japan "Phase-Free" Usage of to release Apple Vision Pro App INSTANT HOUSE Products Apple Vision Pro: Uses cameras and special computer to bring Phase Free: Concept of providing products and services that digital content together with the real w
Slide 47: Corporate Information (as of September 30, 2024)
Corporate Information (as of September 30, 2024) 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 Trans
Slide 48: 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 49: 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 50: 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 51: Annual Revenue and Timeline of Company Growth
Sale of LIFULL Annual Revenue and Timeline of Company Growth Marketing Partners LIFULL CONNECTが Acquisition of FazWazを100%子会社化 MItula (Unit: JPY Billion) COVID-19 Sale of Pandemic LIFULL SPACE 40 Changed fiscal year (irregular 6-month period) Changed company name to LIFULL Co., Ltd. (Forecast) 35 38
Slide 52: Consolidated Statements of Profit and Loss Quarterly
Corrected on Consolidated Statements of Profit and Loss Quarterly November 28, 2024 FY2021 FY2022 FY2023 FY2024 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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 9,169 8,479 8,627 HOME'S Services 6,34
Slide 53: LIFULL HOME'S Key Performance Indicators: Client Network and ARPA
Corrected on LIFULL HOME'S Key Performance Indicators Client Network and ARPA November 28, 2024 Our client network was in-line with FY 2022/9 due to a decline in the number of clients in the previous fiscal year as we ended contracts with professional organizations with low usage rates. However, ARP
Slide 54: (Ref.) External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2022 2023 2024 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-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 33,636 29,569
Slide 55: (Ref.) 2023 Housing and Land Survey Results
(Ref.) 2023 Housing and Land Survey Results (Statistics Bureau of Japan) The Statistics Bureau of Japan released the results of the Housing and on Sep. 30, 2024. The number of dwellings has continued to increase by 23.1 mil. from 2018 totaling 65.04 mil. as of Oct. 1, 2023. Trend of Total Dwellings
Slide 56: Sustainability Initiatives
Sustainability Initiatives Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 53
Slide 57: Main Initiatives During FY 2024/9
Sustainability Initiatives of the LIFULL Group Main Initiatives During FY 2024/9 Dec. 2023 Disclosure of Human FY 2023/9 Securities Report (in Japanese) Capital Strategy IR Materials: https://lifull.com/ir/ir-data/others/ Mar. 2024 Site Renewal Expanded information on our initiatives https://lifull.
Slide 58: IR Team Contact Information
IR Team Contact Information IR Site Japanese English https://lifull.com/ir/ https://lifull.com/en/ir/ 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 U