Slide 1: NEXT Co., Ltd. Second Quarter Financial Statements
NEXT Co.,Ltd. TSE 1st section 2120 Annual Report of Financial Statement Second Quarter of the Year Ended March 31, 2012 (April 2011 to September 2011) Opinions and forecasts expressed in this document are those of management as of the date of publication and management does not offer any guarantee r
Slide 2: Contents
2nd Quarter Financial Results for the Year Ending March 31, 2012 ・・・pp.2-10 Comparison with Business Forecast for 1H of FY03/2012 ・・・pp.11-13 Revision of Business Forecast for the Year ending March 31, 2012 ・・・pp.14-22 The Overseas Business Strategy of the NEXT Group ・・・pp.23-24 NEXT Co., Ltd Compan
Slide 3: 2nd Quarter Financial Results for the Year Ending March 31, 2012
NEXT Co., Ltd. TSE 1st section 2120 2nd Quarter Financial Results for the Year Ending March 31, 2012 April 2011 to September 2012
Slide 4: Today's Points
Consolidated 2nd Quarter Financial Results Accumulated total for the Year Ending March 31, 2012 Today’s Points Recorded a year-on-year decrease in sales and profits. Immense impact of “HOME’S Rental & Real Estate Trade” Sales ： 4,820 million yen (down 12.6% year-on-year) Operating profit ：251 millio
Slide 5: Trend of major indicators
Consolidated 2nd Quarter Financial Results Accumulated for the Year Ending March 31, 2012 Trend of major indicators total ！ Check Trend of consolidated business performance Sales (million yen) Operating profit (million yen) Quarterly Net profit (million yen) 5,513 1,331 5,077 4,820 899 797 ＋67.1％ ＋1
Slide 6: Trend of Operating P/L
Consolidated 2nd Quarter Financial Results Accumulated for the Year Ending March 31, 2012 Trend of Operating P/L total Po i n t Sales declined 12.6% and SG&A expenses rose 8.7%, resulting in a decline in sales and profits. FY03/2010 FY03/2011 FY03/2012 Change Percentage change Unit: million yen 2Q (
Slide 7: Trend of cost to sales ratio
Consolidated 2nd Quarter Financial Results Accumulated Trend of cost to sales ratio total for the Year Ending March 31, 2012 Each ratio has worsened due to decreased sales and increased costs incurred in the Po i n t relocation of the head office. Unit: Million Amount Breakdown yen FY03/2010 FY03/20
Slide 8: Trend of sales by service
Consolidated 2nd Quarter Financial Results Trend of sales by service Accumulated total for the Year Ending March 31, 2012 Sales decreased overall, as Other services failed to cover the decrease in sales of Rental & Real Po i n t Estate Trade FY03/2010 FY03/2011 FY03/2012 Change Percentage change Uni
Slide 9: Trend in P/L by segment
Consolidated 2nd Quarter Financial Results Trend in P/L by segment Accumulated total for the Year Ending March 31, 2012 Decreased profit in all segments due to decreased sales and increased costs from the relocation Po i n t of the head office Unit: Million yen FY03/2011 FY03/2012 Year-on-year 2Q (A
Slide 10: Consolidated balance sheet and goodwill
Consolidated 2nd Quarter Financial Results Consolidated balance sheet Accumulated total for the Year Ending March 31, 2012 and goodwill Assets decreased due to the decline in sales. The Company continued to have zero interest Po i n t bearing debt. Sep. 30, 2011 Percentage Unit: Million yen March 31
Slide 11: Consolidated cash flow
Consolidated 2nd Quarter Financial Results Consolidated cash flow Accumulated total for the Year Ending March 31, 2012 Po i n t Balance of cash and cash equivalents at the end of the 2Q was 3,000 million yen; 5,000 million yen, if time deposits were included. Previous year 【Current year】 Previous ye
Slide 12: Comparison with Business Forecast for 1H of FY03/2012
NEXT Co., Ltd. TSE 1st section 2120 Comparison with Business Forecast for 1H of FY03/2012
Slide 13: Trend of operating P/L vs forecast
Consolidated Comparison with Business Forecast Accumulated for 1H of FY03/2012 Trend of operating P/L total Operating profit secured by compensating for decreased sales through efforts to cut costs and Po i n t reexamining investments in new businesses Forecast/Actual Comparison for 1H of Actual For
Slide 14: Trend of sales by service vs forecast
Consolidated Comparison with Business Forecast Accumulated for 1H of FY03/2012 Trend of sales by service total Po i n t Although Other services performed strongly, sales from Rental & Real Estate Trade fell short of predictions. Actual Forecast Forecast/Actual Comparison for 1H Unit: Million yen FY0
Slide 15: Revision of Business Forecast
NEXT Co., Ltd. TSE 1st section 2120 Revision of Business Forecast for the Year ending March 31, 2012
Slide 16: Revision Summary
Consolidated Revision of Business Forecast Revision Summary Forecast for the Year ending March 31, 2012 Business forecasts for sales, operating profit and net profit revised downward by 15.7%, 58.7% Po i n t and 69.9%, respectively 【Reference】 Previously Revised forecast announced forecast Percentag
Slide 17: Trend of cost to sales ratio
Consolidated Revision of Business Forecast Accumulated for the Year ending March 31, 2012 Trend of cost to sales ratio total While cost cuts and reexamination of investments are planned, the operating profit margin is expected Po i n t to fall by 6.0% due to the drastic decrease in sales. Amount Bre
Slide 18: Trend of sales by service
Consolidated Revision of Business Forecast Accumulated for the Year ending March 31, 2012 Trend of sales by service total 13.5% decline in Rental & Real Estate Trade, 97.2% decline in local information services Po i n t expected Previously 【Reference】 announced Revised forecast Percentage Unit: Mill
Slide 19: Dividend forecast
Consolidated Revision of Business Forecast Forecast for the Year ending March 31, 2012 Dividend forecast Dividend ratio of 15% starting from this year. The dividend will be adjusted to 1.90 yen, in line with Po i n t the adjustment of net profit. Previous forecast Item (August 19, 2011) Revised fore
Slide 20: Current status and issues/measures (HOME'S Rental & Real Estate Trade)
Consolidated Revision of Business Forecast Current status and issues/ measures Accumulated total for the Year ending March 31, 2012 (HOME’S Rental & Real Estate Trade) Po i n t Although the number of properties has been increasing, the number of inquiries has failed to grow. Current Status Outcome I
Slide 21: Measures: publicize largest number of property postings
Consolidated Revision of Business Forecast Measures (HOME’S Rental & Real Accumulated for the Year ending March 31, 2012 Estate Trade) total Thoroughly publicize the fact that the Company has 2-3 times as many property postings as other Po i n t companies. *Number of rental and real estate postings
Slide 22: Number of Affiliated Stores
Consolidated Revision of Business Forecast Measures (HOME’S Rental & Real Accumulated for the Year ending March 31, 2012 Estate Trade) total 10 months since the transition to the pay-per-inquiry fee structure. Starting to win the understanding of Po i n t the affiliate stores. Mar. 2012 Mar. 2011 Ma
Slide 23: Current status and issues/measures (local information services)
Consolidated Revision of Business Forecast Current status and issues/ measures (local Accumulated for the Year ending March 31, 2012 information services) total Although this business has been slow to post profits, services will continue, in preparation for the Po i n t growth of the Online to Offli
Slide 24: The Overseas Business Strategy of the NEXT Group
NEXT Co., Ltd. TSE 1st section 2120 The Overseas Business Strategy of the NEXT Group
Slide 25: Progress in the Overseas Business
Consolidated The Overseas Business Strategy of the Progress in the Overseas Accumulated total NEXT Group Business As the first step toward becoming a Global Company, preparations are underway to commence Po i n t businesses in Thailand and China. Established subsidiary(HOME'S PROPERTY MEDIA) 1. King
Slide 26: Company Credo and Business Principles
Company Credo and Business Principles Company Credo Altruism “ ”. This idea will aim at all the directions. Business Principles of NEXT We will always go forward to build a social mechanism through which more people can receive “ ” and “ ” 25 Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 27: Reference Materials
NEXT Co., Ltd. TSE 1st section 2120 Reference Materials Reference Materials ・・・pp.26-40 Real Estate Information Service “HOME’S” ・・・ pp. 27-28 Reference Data ・・・ pp. 29-31 Approach toward smart devices ・・・ p. 32 The Overseas Business Strategy of the NEXT Group ・・・ pp. 33-34 The concept of our future
Slide 28: Real Estate Information Service HOME'S
Real Estate Information Service “HOME’S” Point “HOME’S” business model: Fee structure based on the number of inquiries Customer NEXT (“HOME’S”) User Inquiry (Rental & Real Estate Trade) View information Make inquiry Post property information (Rental & Real Estate Real estate broker Trade) Real estat
Slide 29: New pricing structure of HOME'S
Real Estate Information Service “HOME’S” Determined a new pricing structure of “HOME'S” to be implemented as of January 2011 to pursue Point advance of property coverage additionally. ！ Check Standard membership fee is reduced and objects posted is free of charge. Pricing scheme will be changed to s
Slide 30: Reference Data: P&L and properties posted
Reference Data Profit and loss statement / Number of Properties Posted and Affiliated Stores of Rental & Real Estate Trade Previous year Current year FY03/2011 2Q FY03/2011 2Q Comparison Unit: million yen (Apr-Sep) (Apr-Sep) Amount share Amount share Change Percentage change Consolidated sales 5,513
Slide 31: Reference Data: Quarterly P&L
Reference Data Quarterly Profit and loss statement 【Consolidated】 Profit and loss statement 【Unconsolidated】 Profit and loss statement FY03/2011 FY03/2012 FY03/2011 FY03/2012 Unit: million yen Unit: million yen 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q Consolidated sales 2,899 2,613 2,584 2,640 2,357 2,46
Slide 32: Reference Data: Real Estate Market Data
Reference Data Real Estate Market Data 【Number of Apartments for Sales（annual）】 Source:Real Estate Economic institute Co.LTD 2006 2007 2008 2009 2010 January-11 February-11 March-11 April-11 May-11 June-11 July-11 August-11 September-11 Capital Region 74,463 61,021 43,733 36,376 44,535 1,372 3,468 3
Slide 33: Approach toward smart devices
32 Focusing on the rapidly growing smart devices (iPhone, iPad, Android) •Launched nd Android game App, • Launched rd Android game App, 2 3 “Perfect Room Layout.” “Capsule Room Planning.” Oct Sep •Launched the iPhone App, “HOME’S •Launched optimization website for the Estimation for Relocation”. sma
Slide 34: Overseas Business Strategy: Kingdom of Thailand
The Overseas Business Strategy of the NEXT Group Kingdom of Thailand Established a wholly owned subsidiary in Thailand, and plans are underway for providing real estate Po i n t information with an exhaustive listing of properties ！ Check 1. Kingdom of Thailand 1. Kingdom of Business commencement da
Slide 35: Overseas Business Strategy: People's Republic of China
The Overseas Business Strategy of the NEXT Group People’s Republic of China Po i n t Plans are underway to provide a real estate information website in China, where phenomenal proliferation of the Internet is expected ！ Check 2. People’s Republic of China People’s Republic Business commencement date
Slide 36: The concept of our future business development
The concept of our future business development Point The Next Group’s strategy is to aim at becoming a global company with “DB+CCS” (*) Concept of “DB+CCS” ◆ Communication service ✔ Service enabling the user to become acquainted with people and feel rapport with and warmth of such people ✔ Service a
Slide 37: Mid/long-term goals
The concept of our future business development In addition to the growth of the real estate information service, the revenue base, we are Point studying new businesses as well as overseas business development ！ Check Sales [Corporate management metrics] Overseas business Mid/long-term goals 1. Aim t
Slide 38: Corporate profile
Corporate profile Company name NEXT Co., Ltd (TSE 1st Section: 2120) Representative President and CEO Takashi Inoue Established March 12, 1997 (Accounting year end: March) Paid-in capital 1,993 million yen Number of shares outstanding: 187,770 shares Consolidated number 579 (including contingent emp
Slide 39: Shareholder composition
Shareholder composition Point Decrease of 106 shareholders from March 31, 2011 to 3,628 shareholders Number of shareholders 3,628(As of September 30, 2011), Decrease of 106 from March 31, 2011 Major shareholders NEXT Co., Ltd. directors and Rakuten Inc. (NEXT Co., Ltd. is an equity method affiliate
Slide 40: 2010 CSR Report
2010 CSR Report The Company has issued the “2010 CSR Report.” The Report explains the businesses and concepts of NEXT. Co., Ltd. http://www.next-group.jp/csr/pdf/report2010.pdf 39 Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 41: IR Information Contact Details
IR Information Contact Details NEXT Co., Ltd. Business Planning Dept. Corporate Communications Group Phone +81-3-5783-3603 (weekdays 10:00 – 18:00) Contact Fax +81-3-5783-3737 E-mail ir@next-group.jp Company website http://www.next-group.jp/ (Japanese) (Mobile website) http://www.next-group.jp/m/ (J