Slide 1: Earnings Presentation [IFRS]
Designing Delightful Encounters NEXT Co., Ltd. (TSE Section 1 2120) Earnings Presentation [IFRS] Second Quarter of the year ending March 31, 2016 (April to September 2015) The opinions and projections, etc. contained herein represent the judgment of the Company at the time this document was prepared
Slide 2: Index
Index › Today’s Key Points Page 2 › Highlights of Financial Results for 2Q of the Year Page 3 Ending March 31, 2016 › Financial Information for 2Q of the Year Ending March Page 4-9 31, 2016 › We aim to change the real estate industry of Japan Page 10-25 › Expanse of the overseas business Page 26-28
Slide 3: Key Points
Key Points Posted increased sales and profits for 1H of the year ending March 31, 2016 Consolidated sales revenue up 53.5% EBITDA up 70.9% and net profit up 73.1% year on year, respectively Rolled out new service offerings one after another as those aimed at turning NEXT into an absolute top player
Slide 4: Highlights of Financial Results for 2Q of the Year Ending March 31, 2016
Highlights of Financial Results for 2Q of the Year Ending March 31, 2016 Earnings Trends (Consolidated) Revenue (M JPY) ＋53.5％ EBITDA *1 (M JPY) ＋70.9％ Net profit *2 (M JPY) ＋73.1％ 1,234 ＋53.5％ 11,899 ＋70.9％ 2,289 ＋13.1％ ＋73.1％ 7,750 6,852 1,339 713 FY03/2014 was not FY03/2014 was not compared as
Slide 5: Simplified Income Statement
Simplified Income Statement Financial Information for 2Q of FY03/2016 Net sales up 53.5％, EBITDA up 70.9％, and quarterly net profit up 73.1％ year-on-year for significant earnings growth [Cumulative] [Cumulative] [Quarter] [Quarter] Rate of Rate of Unit : M.JPY FY2015/03 FY2016/03 Change FY2015/03 FY
Slide 6: Sales Breakdown
Sales Breakdown Financial Information for 2Q of FY03/2016 Increase in costs and other SG&A due to the consolidation of Lifull MP within the expected range Cumulative EBITDA to sales ratio for the 1H growing 1.9 points to 19.2％ Cumulative 1H (April - September) Quarter（July - September） ■Sales cost a
Slide 7: Sales by Service
Sales by Service Financial Information for 2Q of FY03/2016 In addition to the growth in existing businesses, including the main business of Domestic Real Estate Information Services, due to the growth in investment effects including M&As, double-digit sales growth posted for all segments [Cumulative
Slide 8: Segment Income
Segment Income Financial Information for 2Q of FY03/2016 Significant growth in domestic and overseas businesses [Cumulative] [Cumulative] [Quarter] [Quarter] Rate of Rate of Unit : M.JPY FY2015/03 FY2016/03 Change FY2015/03 FY2016/03 Change Change (Apr-Sep) (Apr-Sep) (Jul-Sep) (Jul-Sep) Domestic Rea
Slide 9: Status of Statements of Financial Position and Goodwill
Status of Statements of Financial Position and Goodwill Financial Information for 2Q of FY03/2016 Liabilities significantly decreased due to a repayment of debt through a capital increase. Previous [Current year-end quarter-end] Rate of Major Factors Resulting in Changes Unit : M.JPY Change Change M
Slide 10: Cash Flows
Cash Flows Financial Information for 2Q of FY03/2016 Cash and cash equivalents for the first half grew by 1.4 billion yen to 5.7 billion yen. FY03/2015 FY03/2016 FY03/2015 FY03/2016 Unit : M.JPY Change Main items (Apr-Sep) (Apr-Sep) (Apr-Sep) (Apr-Sep) Income before income taxes 1,165 1,880 Deprecia
Slide 11: We aim to change the real estate industry: Building a platform
We aim to change the real estate industry Building a platform 10
Slide 12: Investment Outlook
Investment Outlook Prioritize the domestic real estate market and invest in long-term growth Existing services New services Overseas Information New markets real estate services information outside of real estate services 3rd priority 4th priority 1st priority 2nd priority Domestic Existing markets
Slide 13: Investment Outlook
Investment Outlook 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 • Planned expansion at a rate of four • Various services with Lifull brand countries annually →Lifull Fin, Lifull Spa,
Slide 14: Basic Strategy for the Real Estate Sector
Basic Strategy for the Real Estate Sector Provide a wide range of solutions for both users and companies Being provided Under development/in planning Not undertaken Services Seminar HOME’S app Smart Viewing condo tours for New house/ HOME’S Price Map comparison app condo assurance Check-in app New e
Slide 15: Making HOME'S the one-stop source for understanding all relevant information
Making HOME’S the one-stop source for understanding all relevant information 14
Slide 16: Trends in the Total Number of Properties Listed on HOME'S
Trends in the Total Number of Properties Listed on HOME'S Absolute top player with more than 5 million properties listed 13 ,500 5,5 00, 000 11 ,500 4,5 00, 000 Comparison with major websites (*1) Rentals and real estate sales 9,5 00 3,5 00, 000 2.81 Unit : million properties 5.62 million properties
Slide 17: Trends at Affiliated Stores
Trends at Affiliated Stores Numbers of affiliated stores increased dramatically Record High 18,000[Number of Affiliated Stores] 16,777 Stores 17,000 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 2011/03 2012/03 2013/03 2014/03 2015/09 16
Slide 18: Release of HOME'S PriceMap
Release of HOME’S PriceMap Using the property data on HOME’S, Japan’s No. 1 site in the number of properties listed, list the property reference prices. Features of HOME’S PriceMap Link to HOME’S sales appraisal 17
Slide 19: Launch of the HOME'S My Home Counter FS
Launch of the HOME’S My Home Counter FS Establish a counter for customers that are considering purchasing a custom-built home. Support house-building through seminars, individual consultations, and by introducing builders. Increase contact with users Features of HOME’S My Home Counter by establishin
Slide 20: Strengthened services for realtors
Strengthened services for realtors 19
Slide 21: "HOME'S LIVE" Communication System
“HOME’S LIVE” Communication System Launching a Web communication system for shifting the explanation of important matters necessary when concluding a real estate contract online Features of “HOME’S LIVE” (1) Compatible with a broad range of devices, including PCs, smartphones, and tablets (2) Preven
Slide 22: HOME'S PRO Property Distribution
HOME’S PRO Property Distribution Distribute and application of information speedily for free.* New functions are gradually being added. *Free of charge for HOME’S affiliated stores Originator real estate firm • Transmits property information broadly • Transmits property information on an individual
Slide 23: DMP Service "NabiSTAR"
DMP Service “NabiSTAR” * DMP = Data Management Platform The number of customers is up 76% from the end of last year. [ Trend in the number of customers ] HOME'S Developers Audience data Audience data 2.3 times (year-on-year) DMP Personalized NabiSTAR (Private DMP) [Example] ＋ ＋ ＝ Property A Make the
Slide 24: Advertising Planning and Consulting
Advertising Planning and Consulting HOME’S × Lifull Marketing Partners Integration of the sales divisions Website Online in the New Houses and Condominiums Creation Advertising Planning Access Sales Analysis Assistance Marketing Tool HOME’S new condominium team Preparation HOME’s new condominium tea
Slide 25: Advertising Planning and Consulting: Strengthened the New Condominium Business
Advertising Planning and Consulting Strengthened the New Condominium Business Seamlessly assists the process from project launch to property handover as a partner Developers Studying Acquiring Choosing Obtaining building Running advertising sites sites agents confirmation NEXT‘ｓ service Lifull MP’ｓ
Slide 26: Become the undisputed No. 1 in the industry
become the undisputed No. 1 in the industry 25
Slide 27: Investment Outlook
Investment Outlook 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 • Planned expansion at a rate of four • Various services with Lifull brand countries annually →Lifull Fin, Lifull Spa,
Slide 28: Building a global platform
Building a global platform 27
Slide 29: NEXT Group Service Area from 4 to 36 Countries
NEXT Group Service Area from 4 to 36 Countries NEXT has launched the Lifull Australia Real Estate website. Deployment countries HOME’S model has expanded to four countries. Lifull Australia Real Estate Trovit model (aggregation) HOME’S model (Portal) Arab Emirates France Netherlands Spain Australia
Slide 30: Investment Outlook
Investment Outlook 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 • Growth of Various services with Lifull brand • Growth of Trovit Japan →Lifull Fin, Lifull Spa, Lifull Mov, Lifull Fa
Slide 31: Run Advertisements Effectively
Run Advertisements Effectively Measure the effects independently on a periodic basis (4) Raise the consumer recall rate. Measure the ROI each time Continuous branding (3) Curb the forgetting rate. OOH, mini TV programs, Effective advertisement allocation Lapping bus, etc. (2)Increase the consume
Slide 32: Advertising Programs for the 2H
Advertising Programs for the 2H Continue to spend the largest amount on advertisements. TVCM New version planned 30 million or more The number of viewable households Expand in conjunction with TVCM, to increase the awareness OOH WEB Flag YouTube 31
Slide 33: Full-Year Performance Forecasts and Progress
Full-Year Performance Forecasts and Progress Operating profit and loss Sales by service category [Forecast] [Actual]1H [Forecast] [Actual]1H Achieveme Achieveme Unit : M.JPY FY03/2016 FY03/2016 Difference Unit : M.JPY FY03/2015 FY03/2015 Difference nt rate nt rate (Apr – Dec) (Apr – Mar) (Apr - Dec)
Slide 34: Medium- and Long-Term Growth Outlook
Medium- and Long-Term Growth Outlook Establish NEXT as No. 1 in market share for users of online relocation services and aim for EBITDA margin of 28%. 60.0% ～ 50.0% Revenue EBITDA EBITDA margin 26,142 (Operating profits before depreciation) 40.0% Unit：M.JPY 18,165 28.0% 30.0% 14,690 11,962 19.7% 10,
Slide 35: in Japan
in Japan 34
Slide 36: and all over the world
and all over the world 35
Slide 37: We want to provide information that perfectly suits your needs
we want to provide information that perfectly suits your needs. 36
Slide 38: Reference
Reference Copyright(c) NEXT Co., Ltd. All Rights Reserved. 37
Slide 39: Corporate Data
Corporate Data Company Name NEXT Co., Ltd. (TSE 1st section: 2120) Representative Takashi Inoue, President and CEO March, 1997 Established (Fiscal year ending March 31) History October, 2006 Listed in Tokyo Stock Exchange, Mother’s Section March, 2010 March 12th, listed on TSE 1st Section Capital 3,
Slide 40: President's Profile
President's Profile 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 engaged in new gra
Slide 41: Mission statement and management philosophy
Mission statement and management philosophy 40
Slide 42: Designing Delightful Encounters
Designing Delightful Encounters 41
Slide 43: History
History Structural reform is ushering in the second stage of growth. In the FY03/2015, NEXT has been implementing strategic investment programs, including M&A activities The Company’s existing businesses posted record high sales and profit Lifull MP acquired HOME’S service Capital alliance Listed on
Slide 44: Issue of new shares through third-party allotment and borrowing of funds
Issue of new shares through third-party allotment and borrowing of funds › Details ①楽天株式会社に対する第三者割当による新株式の発行 (1) Issue of new shares through third-party allotment to Rakuten, Inc. ・ Amount of funds raised 3,999,999,000 yen ・調達資金の額 3,999,999,000円 ・ Issue price 690 yen/share ・発行価額 1株につき690円 ・ Number o
Slide 45: Revenue by Service
Revenue by Service Domestic Real estate information service business accounts for most of the sales, the profit by the main force Overseas Others 13.3％ ¥694million ¥3,222million 2.7％ ¥3,466million Insurance agency search and appointment website real estate/housing, used car and job ad aggregation si
Slide 46: Trend of Operating P/L (Quarterly)
Trend of Operating P/L (Quarterly) 【 J-GAAP】 【 IFRS 】 Quarterly consolidated statements of income FY2014/03 FY2015/03 FY2016/03 Unit : M.JPY 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Revenue 3,398 3,454 3,556 4,281 3,852 3,897 4,319 6,095 5,457 6,441 Domestic Real Estate Information Services 3,160 3,214 3,307 3
Slide 47: Dividends
Dividends Dividend payout ratio: 20％; expect to increase for the FY03/2016 5.00円 ¥4.71 80 .0% 4.50円 70 .0% 4.00円 Dividend per share Payout ratio 60 .0% 3.50円 3.00円 ¥2.88 50 .0% 2.50円 ¥2.37 40 .0% 2.00円 30 .0% 1.50円 ¥1.08 ¥0.62 24.3% 20 .0% 1.00円 20.0% 20.0% 20.0% 10 .0% 0.50円 15.0% 0.00円 0.0 % 2012.
Slide 48: External Market Data (Monthly)
External Market Data (Monthly) Reference data Number of Apartments for sales (Monthly) Source : Real Estate Economic Institute Co., Ltd. 2012 2013 2014 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 (Jan-Dec) (Jan-Dec) (J
Slide 49: The situation of the overseas competitor
The situation of the overseas competitor Moving to achieve even higher peaks based on the goal of becoming a world-class company Unit : billion yen [NEXT,JP] [Rightmove, UK] Revenue 26.1 [Zillow, US] Revenue 31.0 EBITDA 5.1 Revenue 39.2 Market cap Net profit 2.7 EBITDA 5.9 EBITDA 22.9 684.4 Net prof
Slide 50: Our business model
Our business model Copyright(c) NEXT Co., Ltd. All Rights Reserved. 49
Slide 51: HOME'S real estate and housing information listing site
Domestic Real estate information services Real estate / housing information listing site 『HOME’S』 http://www.homes.co.jp/ “HOME‘S” is the No.1 real estate and housing information listing site in Japan, specialized for the Internet. Besides the quantity of information, we established screening team t
Slide 52: CCS: Japan and overseas database
Action to provide the information that the user wants from enormous information The user can access via any device Optimal Needs information Communication & Analyze individual user preferences, CCS concierge service then select and provide the most Recommendation appropriate information Housing Fina
Slide 53: Only HOME'S applies an inquiry based charging system
Only HOME'S applies an inquiry based charging system among major Japanese real estate portal 52
Slide 54: Pay-per-posting vs pay-per-inquiry billing structure models
Difference between the pay-per-posting-based and pay-per-inquiry-based billing structure models With the pay-per-inquiry-based billing structure model, advertising spending leads directly to growing sales Pay-per-inquiry-based billing structure Pay-per-posting-based billing model structure model Adv
Slide 55: Services for Real Estate Industry
Services for Real Estate Industry CRM services for realtors Website creation service ｢Annex｣ 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 even users
Slide 56: DMP service NabiSTAR
DMP service「NabiSTAR」 Launch industry-specific DMP* services targeting real estate agents. Optimize the effect of customers’ web ads, thereby helping them increase closing rates and sales. * DMP＝Data Management Platform Real Estate Solution (problem solving) Agent’s Data Data Integration Customer Da
Slide 57: Overseas business
Overseas business One of the world’s largest aggregator sites 「Trovit」 http://www.trovit.co.uk/ • Offers real estate/housing, used car and job ad information. • Entered three countries this year, and now it offers services in 46 countries. Image of aggregation site Portal site A (HOME'S, etc.) Porta
Slide 58: NEXT Group service area from 4 to 46 countries
NEXT Group service area from 4 to 46 countries Trovit model (aggregation) HOME’S model (Portal) Arab Emirates France Netherlands Spain Australia Argentina Germany New Zealand Sweden Indonesia Australia Hong Kong Nigeria Switzerland Japan Austria Hungary Pakistan Taiwan Thailand Belgium India Peru Th
Slide 59: Other business
Other business Insurance agency search and appointment website Furniture/interior EC website “ MONEYMO ” “ HOME’S Style Market ” HOME’S move HOME’S Strage room Other “ Lifull ”services 58
Slide 60: Established Four New Subsidiaries under the Lifull Brand
Established Four New Subsidiaries under the Lifull Brand Transferred the “HOME‘S Nursing Care,” "MONEYMO,” “HOME‘S Moving Estimates,” and “HOME‘S Storage Room,” businesses to the subsidiaries to achieve increased speed for the operations while accelerating the efforts to develop employees Lifull Sen
Slide 61: Established Two New Lifull Brand Subsidiaries
Established Two New Lifull Brand Subsidiaries Under the “Lifull” brand, NEXT will create service offerings that will fill (“Full”) people’s lifestyles and lives (“Life”) Lifull FaM application that helps communication between couple A live music concert accompanier search application Main functions
Slide 62: Lifull TraveRing
Lifull TraveRing Provides communication services between travelers from overseas and local areas Communication application Main functions › Registering as a traveler › Registering as a local (resident of a foreign country) › Travelers and locals communicating via the app https://travering.com/ › Reg
Slide 63: Lifull Scouting
Lifull Scouting Develop into a platform that can be used by the teams in the MLB, NPB, and BCL. Sports matching services for players and teams/corporations Users register their play. Lifull Scouting Scouting Pro contract Main functions › Allows the user to share online his/her play data and videos t
Slide 64: Inquiries Regarding IR
Inquiries Regarding IR IR official account on Twitter Official Facebook page https://twitter.com/Next_2120_IR http://www.facebook.com/next.group.jp 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 t