Slide 1: Earnings Presentation Year Ended March 2015
Designing Delightful Encounters NEXT Co., Ltd. (TSE Section 1 2120) Earnings Presentation Year Ended March 2015 (April 2014 to March 2015) The opinions and projections, etc. contained herein represent the judgment of the Company at the time this document was prepared. We provide no guarantees regard
Slide 2: Agenda
› Today’s Key Points Page 3 › Highlights Page 4 › Review of Year Ended March 2015 Pages 5-11 › Earnings Information for Year Ended March 2015 Pages 12-18 › Business Strategy for Year Ended March 2016 Pages 19-32 Performance Forecasts for Year Ending March › Pages 33-37 2016 › Inquiries Regarding IR
Slide 3: Today's Key Points
Today’s Key Points Strong performance in Real Estate Information Services Set new record highs for consolidated sales and profits for the full year. Trovit results added to scope of consolidation starting January Foray into three new countries in May, including Trovit Japan Significant growth in yea
Slide 4: Highlights
Highlights Net sales Millions of yen 22.0 Operating profits Millions of yen 0.6 Net profit Millions of yen 0.1 17,926 2,299 2,312 1,336 1,335 14,690 11,962 1,591 614 FY03/2013 FY03/2014 FY03/2015 FY03/2013 FY03/2014 FY03/2015 Apr Dec Apr Dec Apr Dec Apr Dec Apr Dec Apr Dec Listed properties thousand
Slide 5: Review of Year Ended March 2015
Review of Year Ended March 2015 Copyright(c) NEXT Co., Ltd. All Rights Reserved. 5
Slide 6: Fiscal 2015/03 is a year for expanded investment
Fiscal 2015/03 is a year for expanded investment 6
Slide 7: Year Ended March 2015: Year of Investment
Year Ended March 2015: Year of Investment Review of the Year Ended March 2015 In the year ended March 2015, we made the strategic investments needed to become No. 1 in Japan. We also moved ahead with overseas development to achieve medium/long-term growth. 000 Net sales Operating profit Operating pr
Slide 8: 20th Term Highlights
20th Term Highlights Review of the Year Ended March 2015 Services Promotions, Etc. Released HOME’S app for visually impaired users Ran limited-time tie-in commercial with the film “Thermae Romae ” Business alliance with IRRC Corporation Partnership campaign with “Girls Award” Began providing “HOME’S
Slide 9: Trends in Total Number of Properties Listed on HOME'S
Trends in the Total Number of Properties Listed on HOME'S Review of Year Ended March 2015 The total number of properties listed on HOME’S exceeded the 5 million mark 6,000,000 The number of properties listed remaining at levels more 12,000 than double that of competitors 11,000 5,000,000 10,000 Comp
Slide 10: Trends at Affiliated Stores
Trends at Affiliated Stores Review of the Year Ended March 2015 Numbers of affiliated stores increased dramatically (by 2,793) to 14,445 stores Record High 15,000 [Number of Affiliated Stores] 14,445 stores 14,000 13,000 + 24.0 12,000 11,652 11,000 10,000 9,000 8,000 2011.3 2012.3 2013.3 2014.3 2015
Slide 11: Global Service Deliveries
Global Service Deliveries Review of the Year Ended March 2015 Trovit acquisition expands NEXT Group service area from 4 to 46 countries. aggregator model Portal model 11
Slide 12: Financial Information for the Year Ended March 2015
Financial Information for the Year Ended March 2015 Copyright(c) NEXT Co., Ltd. All Rights Reserved. 12
Slide 13: Simplified Income Statement
Simplified Income Statement Financial Information for the Year Ended March 2015 Net sales up 22%, operating profits up 0.6% year-on-year, both setting record highs Strategic investments lower operating profits ratio 2.8 points to 12.9% [Quarter] [Quarter] [Cumulative] [Cumulative] Year Ended Year En
Slide 14: Share of Net Sales
Share of Net Sales Financial Information for the Year Ended March 2015 The full-year operating profits ratio fell by 2.8 percentage points due to anticipatory investment and goodwill amortization. Other SGA expenses increased 2.3 points. The number of employees increased as well. Efforts to improve
Slide 15: Sales by Service
Sales by Service Financial Information for the Year Ended March 2015 Real Estate Information Services and Other Services both achieved double-digit sales growth. Growth in Rental & Real Estate Trade accelerated in H2 due to effective advertising investment; up 29.1% for the quarter. [Quarter] [Quart
Slide 16: Segment Income
Segment Income Financial Information for the Year Ended March 2015 Real Estate Information Services up 2.0% on strategic investments; up 171.2% for the quarter [Quarter] [Quarter] [Cumulative] [Cumulative] Year Ended Year Ended Year Ended Year Ended Rate of Rate of Unit: Millions of yen Change March
Slide 17: Balance Sheet and Goodwill Status
Balance Sheet and Goodwill Status Financial Information for the Year Ended March 2015 Goodwill increases ¥9,972 million from Trovit acquisition; short-term borrowings increase ¥7,000 million. Previous [Current quarter- Unit: Millions of year-end end] Rate of yen Change Major Factors Resulting in Cha
Slide 18: Cash Flows
Cash Flows Financial Information for the Year Ended March 2015 Cash and cash equivalents at year-end down ¥4.1 billion to ¥4.2 billion (to ¥5.2 billion, including time deposits) Year ended Year ended Year ended Year ended Unit: Millions of yen March 2014 March 2015 Change Main Items March 2014 March
Slide 19: Business Strategy for Year Ended March 2016
Business Strategy for Year Ended March 2016 Copyright(c) NEXT Co., Ltd. All Rights Reserved. 19
Slide 20: Investments bearing fruit; toward recovery and accelerating growth
Investments made to date bearing fruit Toward the recovery phase Accelerating growth through domestic/overseas investment
Slide 21: Business Plan for Year Ending March 2016
Business Plan for Year Ending March 2016 Business Strategy for Year Ended March 2016 Significant sales and profits growth in the year ending March 2016; dividends also projected to increase 73.9% ¢2015.3 Actual ¢2016.3 Forecast +34.7 ¥24,145 million ¥17,926 million +56.3 +73.9 +111.3 ¥5,136 million
Slide 22: Medium- and Long-Term Business Objectives
Medium- and Long-Term Business Objectives Business Strategy for Year Ended March 2016 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 in
Slide 23: Investment Outlook
Investment Outlook Business Strategy for Year Ended March 2016 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 prio
Slide 24: Segment Changes
Segment Changes Business Strategy for Year Ended March 2016 Disclosure segments for sales changed to match investment segments in business strategy Rental & Real Estate Trade Overseas Business Other Services Trovit MONEYMO New Houses & Condominiums Overseas Lifull (Insurance shop Custom-Built Homes
Slide 25: Investment Outlook
Investment Outlook Business Strategy for Year Ended March 2016 Prioritize the domestic real estate market and invest in long-term growth Existing services New services > Speed up PDCA cycles > Speed up PDCA cycles New markets - Planned expansion at a rate of four - Lifull FaM countries annually - Li
Slide 26: Basic Strategy for Real Estate Sector
Basic Strategy for Real Estate Sector Business Strategy for Year Ended March 2016 Provide a wide range of solutions for both users and companies. Being provided Under development/in planning Not undertaken Services HOME’S app condo tours for New house/ Reference data of comparison condo assurance th
Slide 27: Basic Strategy for Overseas Real Estate Information Services
Basic Strategy for Overseas Real Estate Information Services Business Strategy for Year Ended March 2016 Further Expansion of Service Area (Countries) Led by Trovit Two new countries added in May Japan Planned expansion at Thailand a rate of four countries annually 27
Slide 28: Basic Strategy for Overseas Real Estate Information Services
Basic Strategy for Overseas Real Estate Information Services Business Strategy for Year Ended March 2016 Apply HOME’S know-how to accelerate profitability. Plans Plans to to expand expand HOME’S model to HOME’S two new countries annually model to two new countries annually 28
Slide 29: Basic Strategy for New Services (Non-Real Estate)
Basic Strategy for New Services (Non-Real Estate) Business Strategy for Year Ended March 2016 Continue to invest to create a third-pillar business. Established four companies in most recent year Under the “Lifull” brand, NEXT will create service offerings that will fill (“Full”) people’s lifestyles
Slide 30: Toward a Global No.1 Company
Medium- and long-term outlook Business Strategy for Year Ended March 2016 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 w
Slide 31: The situation of the overseas competitor
The situation of the overseas competitor Business Strategy for Year Ended March 2016 Moving to achieve even higher peaks based on the goal of becoming a world- class company Unit : billion yen [NEXT, JP] [Zillow, US] [Rightmove, UK] Sales 24.1 Sales 39.0 EBITDA 5.1 Sales 31.3 Net profits 2.8 Market
Slide 32: Medium- and Long-Term Growth Outlook
Medium- and Long-Term Growth Outlook Business Strategy for Year Ended March 2016 Establish NEXT as No. 1 in market share for users of online relocation services and aim for operating profit ratio of 25%. Sales Operating profit Operating profit ratio Key points › Improve advertising ratio › Maintain
Slide 33: Performance Forecasts for Year Ending March 2016
Performance Forecasts for Year Ending March 2016 Copyright(c) NEXT Co., Ltd. All Rights Reserved. 33
Slide 34: Full-Year Performance Forecasts for the Year Ending March 2016
Full-Year Performance Forecasts for the Year Ending March 2016 Forecasts: Sales up 34.7% to ¥24.1 billion; operating profits of ¥4.3 billion Simplified Income Statement Sales by Service [Actual] [Initial Rate of [Actual] [Forecast] Forecast] Change Rate of Year ended Change Unit: Millions of yen Yea
Slide 35: Share of Sales Performance Forecasts
Share of Sales Performance Forecasts for the Year Ending March 2016 Improvements in advertising expense of 2.3 percentage points alongside sales growth toward an operating profits ratio of 25%, operating margin to 17.9% Full Year Operating profits Personnel expenses Advertising expenses Costs and Ot
Slide 36: Dividend Forecast
Dividend Forecast Performance Forecasts for the Year Ending March 2016 Maintain payout ratio of 20%; dividend forecasted to increase 73.9% to ¥5. 5.00 ¥5.00 80.0% 4.50 70.0% 4.00 Dividend per share Payout ratio 60.0% 3.50 3.00 ¥2.88 50.0% ¥2.37 2.50 40.0% 2.00 30.0% 1.50 ¥1.08 ¥0.62 24.3% 20.0% 20.0
Slide 37: Designing Delightful Encounters
Designing Delightful Encounters 37
Slide 38: 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 39: Reference
Reference Copyright(c) NEXT Co., Ltd. All Rights Reserved. 39
Slide 40: Corporate Data
Corporate Data Reference 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 56,496,000 (including 36,536 shares of treasury stock) Consolidated Number of 7
Slide 41: President's Profile
President's Profile Reference 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
Slide 42: Mission statement and management philosophy
Mission statement and management philosophy 42
Slide 43: 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 & Analyze individual user preferences, CCS concierge service then select and provide the
Slide 44: Results of NEXT
Results of NEXT Reference 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 posted record high sales and profit Sales Operating pr
Slide 45: Quarterly consolidated statements of income
Reference J -GAAP 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 Q4 Sales 2,737 2,763 2,939 3,522 3,398 3,454 3,556 4,281 3,852 3,897 4,080 6,095 Real estate information 2,709 2,736 2,911 3,494 3,366 3,420 3,524 4,243 3,8
Slide 46: Apartment sales and price trends
Reference 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 1,679 2,598 4,457 21.4% 22.3% 6.1% 6.1% -
Slide 47: Revision to HOME'S Billing Rates
Revision to HOME’S Rental & Real Estate Trade Billing Rates Reference 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 ac
Slide 48: Smart Device-Targeted Service by HOME'S
Smart Device-Targeted Service by the HOME’S Website Reference 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
Slide 49: New Services Tailored to Real Estate Agents
New Services Tailored to Real Estate Agents to be Released Reference 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 solv
Slide 50: Intend to Make Trovit Search S.L. a Subsidiary of NEXT
Intend to Make Trovit Search S.L. a Subsidiary of NEXT Reference › Company name Trovit Search,S.L. (headquartered in Spain) › Representative Iñaki Ecenarro , President and CEO › Established October , 2006 › Consolidated Number of Employees 94 persons › Business description Operation of one of the wo
Slide 51: What is aggregation site provided by Trovit?
What is aggregation site provided by Trovit? Reference 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 world matching with
Slide 52: Advantages of HOME'S x Trovit
Advantages of HOME’S x Trovit Reference 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 online traffic creat
Slide 53: Established Two New Lifull Brand Subsidiaries
Established Two New Lifull Brand Subsidiaries Reference Under the “Lifull” brand, NEXT will create service offerings that will fill (“Full”) people’s lifestyles and lives (“Life”) Lifull FaM Lifull TraveRing application that helps application that helps communication between couple communication bet
Slide 54: Branding Promotion Enhancement
Branding Promotion Enhancement Reference 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 Results in FY201
Slide 55: NEXT's Branding Promotion
NEXT’s Branding Promotion Aimed at Becoming Overwhelming Number One Player in Japan Reference 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, “the n
Slide 56: O2O Tracking
O2O Tracking Reference 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 using
Slide 57: Strengthen efforts towards new technology
Strengthen efforts towards new technology Reference A virtual sneak peek app “Room VR” 57
Slide 58: Smart Key for Unlocking Properties with Smartphone
“Smart Key” for Unlocking Properties with Smartphone Reference Launch “Smart Viewing” on a trial basis for real estate companies. Open lock with a smartphone. [Smart Viewing System] • Reserve viewing • Apply for key. • Management company approves application. • Use smartphone as key. 58
Slide 59: Room Creation Simulation System: GRID VRICK
Room Creation Simulation System: GRID VRICK Reference 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 Place Leg
Slide 60: Interior Decoration Simulation System: GRID VRICK
Interior Decoration Simulation System: GRID VRICK Reference 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 Wearing t
Slide 61: GRID VRICK Utilization Concept
GRID VRICK Utilization Concept Reference 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 completed pr