Slide 1: NEXT Co., Ltd. Third Quarter Financial Results
NEXT Co., Ltd. TSE 1st section 2120 Annual Report of Financial Statement Third Quarter of Year Ended March 31, 2014 (October 2013 to December 2013) Opinions and forecasts expressed in this document are those of management as of the date of publication and management does not offer any guarantee rega
Slide 2: Agenda
3rd Quarter Financial Results ● pp. 2-10 for the Year Ending March 31, 2014 Highlights of the 3rd Quarter Financial ● pp. 11-16 Results for the Year Ending March 31, 2014 Progress against the Business Forecast ● pp.17-19 for the Year Ending March 31, 2014 Highlights of the 3rd Quarter Financial ● pp
Slide 3: 3rd Quarter Financial Results for the Year Ending March 31, 2014
TSE 1st section 2120 3rd Quarter Financial Results for the Year Ending March 31, 2014 October 2013 to December 2013
Slide 4: Today's Key Points
3rd Quarter Financial Results for the Year Ending March 31, 2014 Recorded a year-on-year growth in sales and profit due to the strong Today's Key Points performance of the real estate information services business Sales : 3,556 million yen （up 21.0% from previous year） Operating profit : 791 million
Slide 5: Trend of major indicators
3rd Quarter Financial Results Trend of major indicators for the Year Ending March 31, 2014 ！ Check Trend of consolidated business performance Sales (million yen) Operating profit (million yen) Net profit (million yen) 791 455 3,556 2,939 2,486 439 ＋160.3％ ＋21.0％ 334 178 ＋80.1％ 175 ＋18.2％ ＋31.3％ - 1.
Slide 6: Profit and Loss Statement (Simplified Version)
3rd Quarter Financial Results Profit and Loss Statement for the Year Ending March 31, 2014 (Simplified Version) Point Sales +21.0%, SG&A expenses +9.6%, operating profit +80.1% 【Accumulated 【Accumulated [Accumulated Total] [Accumulated Total] Percentage Percentage Change Total】 Total】 Unit: million
Slide 7: Ratio of costs to sales
3rd Quarter Financial Results Ratio of costs to sales for the Year Ending March 31, 2014 Point Increasing sales resulted in operating profit margin rising by 4.8 percentage points on a cumulative basis to 21.2% Quarter Full Year Cost and Other SG&A Expenses 4.1p 2.7p 32.5% Improve 28.4% 31.0% Improv
Slide 8: Trends in sales by service
3rd Quarter Financial Results Trends in sales by service for the Year Ending March 31, 2014 The core real estate information services business achieved record sales, posting a Point 21.0% year-on-year sales growth Percentage 【Accumulated 【Accumulated [Accumulated Total] [Accumulated Total] Change Pe
Slide 9: Trends in P/L by segment
3rd Quarter Financial Results Trends in P/L by segment for the Year Ending March 31, 2014 The real estate information services business achieved a significant year on year Point gain in operating profit 【Accumulated 【Accumulated [Quarterly] [Quarterly] Percentage Percentage Change Total】 Total】 Unit
Slide 10: Consolidated balance sheet and goodwill
3rd Quarter Financial Results Consolidated balance sheet and goodwill for the Year Ending March 31, 2014 Point Net assets per share grew 12.4% year on year while interest-bearing debt remained zero [Current Quarter] End of Previous Year Sep 30, 2013 Unit: Million yen Change Percent change Main reaso
Slide 11: Cash flow
3rd Quarter Financial Results Cash flow for the Year Ending March 31, 2014 Point The balance of cash and cash equivalents stands at 7,877 million yen FY03/2013 FY03/2014 FY03/2013 FY03/2014 Unit: Million yen Q3(Apr-Dec) Change Main Items Q3(Apr-Dec) Q3(Apr-Dec) Q3(Apr-Dec) Pretax profit of the curre
Slide 12: Highlights of the 3rd Quarter Financial Results
TSE 1st section 2120 Highlights of the 3rd Quarter Financial Results for the Year Ending March 31, 2014
Slide 13: Real estate information service key highlights
Highlights of the 3rd Quarter Financial Results for the Year Ending March 31, 2014 Key highlights Continued to make branding promotion investment Held “HOME‟S EXPO” in four cities as an event designed The “HOME’S” website in for our clients Real estate information service Japan Continued to generate
Slide 14: Sales remained strong as SEO effect continued
Highlights of the 3rd Quarter Financial Results Key highlights for the Year Ending March 31, 2014 Sales remained strong as SEO effect resulting from the site overhaul done in FY03/2013 Point continued to be solid ！ ！ Check Check Achieved an accelerated rate of sales growth Sales remained strong as S
Slide 15: Smart device-optimized service functions
Highlights of the 3rd Quarter Financial Results Key highlights for the Year Ending March 31, 2014 Strove to develop smart device-optimized service functions in response to a Point growing number of smart device users ！ Check ■ The percentage of persons who used smartphones to access ■ Our smart devi
Slide 16: Launch of HOME'S Renovation and HOME'S Trunk Room
Highlights of the 3rd Quarter Financial Results Key highlights for the Year Ending March 31, 2014 Point Launch the “HOME’S Renovation” and “HOME’S Trunk Room” sites ！ ！ Check Check Launched new site “HOME’S Renovation” Launched new site “HOME’S Trunk Room” in October 2013 in October 2013 Under the “
Slide 17: Renters service for real estate broker business support
Highlights of the 3rd Quarter Financial Results Key highlights for the Year Ending March 31, 2014 Strong performance was recorded by the Renters service delivering real estate broker Point business support tools ■ Conceptual diagram of real estate broker value chain Obtain information on properties
Slide 18: Progress against the Business Forecast
TSE 1st section 2120 Progress against the Business Forecast for the Year Ending March 31, 2014
Slide 19: Progress against the Business Forecast: Profit and Loss
Progress against the Business Forecast Profit and Loss Statement for the Year Ending March 31, 2014 (Simplified Version) Profits have already exceeded the budgeted levels for FY03/2014, and efforts are now Point underway to maximize sales for the 4th quarter in progress [Accumulated Total] [Forecast
Slide 20: Progress against forecast: trends in sales by service
Progress against the Business Forecast Trends in sales by service for the Year Ending March 31, 2014 Point More or less in line with projection, led mainly by the real estate information services [Accumulated Total] [Forecast] Unit: Million yen FY03/2014 FY03/2014 Difference In-progress ratio Q3 (Ap
Slide 21: Highlights of the 4th Quarter
TSE 1st section 2120 Highlights of the 4th Quarter Financial Results for the Year Ending March 31, 2014
Slide 22: Real estate information service key highlights
Highlights of the 4th Quarter Financial Results Key highlights for the Year Ending March 31, 2014 Implement an unprecedented scale of branding promotion initiative Provide site contents optimal for the website user and Real estate information service The “HOME’S” website in carry out email-based mar
Slide 23: Branding promotion with per-area advertising
Highlights of the 4th Quarter Financial Results Key highlights for the Year Ending March 31, 2014 Win a greater brand profile by increasing our per-area advertising quantity and targeting a Point larger number of areas year after year the popular comedy duo “Heisei Nobushi Kobushi,” the popular come
Slide 24: Changing creative advertising presentation
Highlights of the 4th Quarter Financial Results Key highlights for the Year Ending March 31, 2014 Aim to win a greater brand profile in the long term through changing our creative advertising Point presentation into one capable of leaving a strong impression on an increased number of website users W
Slide 25: Brand promotion methods
Highlights of the 4th Quarter Financial Results Key highlights for the Year Ending March 31, 2014 Use various brand promotion methods to achieve a greater brand profile for the “HOME’S” website as Point the one ranked number one in terms of the number of properties listed online Area Marketing ・Trai
Slide 26: Trade Property Proposal Service and smartphone site overhaul
Highlights of the 4th Quarter Financial Results Key highlights for the Year Ending March 31, 2014 Launch the “Trade Property Proposal Service” and implement an overhaul of our Point smartphone-optimized for-sale property information site ！ ！ Check Check A scheme that is the first of its kind An over
Slide 27: Overseas: Thailand, Taiwan, Indonesia
Highlights of the 4th Quarter Financial Results for the Year Ending March 31, 2014 Overseas Make upgrade our SEO and contents development efforts in Thailand and Indonesia, Point Make branding promotion efforts in Taiwan ■Thailand(Equity holding ratio 99.9%) ■Taiwan(Equity holding ratio 12.2%) ■Indo
Slide 28: The concept of our medium-term business expansion
TSE 1st section 2120 The concept of our medium-term business expansion
Slide 29: Concept of DB+CCS
The concept of our medium-term business expansion Point Aim at becoming a global company through delivering DB+CCS (Database plus Communication and Concierge Service) Concept of “DB+CCS” Proposal befitting each customer and enabling decision-making Accessible from any device User needs Optimal infor
Slide 30: New markets and existing markets investment
The concept of our medium-term business expansion We will reinvest earnings in Japan in "HOME'S", as well as investing in new segments Point and new services Existing products New products New Overseas Overseas New business "HOME'S" "HOME'S" business • Businesses outside real estate segment New mark
Slide 31: Accelerated growth in real estate information services
The concept of our medium-term business expansion Generate an accelerated pace of growth mainly Point in the real estate information services area • Achieve profitability in foreign countries into which we have • Lococom already expanded • MONEYMO • Consider which country to • Initiated a venture ta
Slide 32: Business support
The concept of our medium-term business expansion Point Achieve increased satisfaction of both site users and our clients Step up our customer attracting initiatives Attract customers to HOME’S User information DB Using Upgrade our service offerings HOME’S online buzz and review inquiries informatio
Slide 33: Attract customers to HOME'S
The concept of our medium-term business expansion Achieve an increased number of site visitors through delivering contents Point designed for different property search stages, respectively Not searching for a place • Step up our branding promotion to live efforts • Upgrade our SEO • Streamline our a
Slide 34: Business support
The concept of our medium-term business expansion Provide consistent support for the process from property Point information acquisition to sales closing Sale closin Preliminary Deliver assistance for proper operational streamlining and Business support workload reduction efforts ・ Optimize our adve
Slide 35: Smart device and wearable device services
The concept of our medium-term business expansion Continue to enhance our smart device-optimized services Point with a view to launching wearable device-optimized services as well in the future 2 to 3 years ago: PC and From 1 year ago to the present: conventional mobile phone were Significant growth
Slide 36: Mid/Long-term goals
The concept of our medium-term business expansion 【Corporate Management Metrics】 Mid/Long-term goals 1. Aim to achieve 25% operating profit margin 2. Improve productivity 3. Return of profits to shareholders through continuous dividend payments and increased Sales profits New Departments 【Business D
Slide 37: Business Management Philosophy
Business Management Philosophy Company Credo Altruism Our priority is making people happy. Everyone in the world: Consumers, Clients, Coworkers, Family, and so on… First and foremost, make someone happy. Before you realiza it, you’ll be happy too. That is altruism. Corporate Philosophy Our corporate
Slide 38: Reference Materials
NEXT Co., Ltd. TSE 1st section 2120 Reference Materials ● Reference Materials President's Profile p.38 NEXT’s service offerings p.39 Additional information pp.40-45 Corporate profile p.46 IR Information Contact Details p.47 37
Slide 39: 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 40: NEXT's service offerings
NEXT’s service offerings Under the corporate slogan “Designing Delightful Encounters,” NEXT provides, through the internet, various kinds of lifestyle services related to not only “residential properties” but also “local community” and “finance” in order to help people in the world lead comfortable
Slide 41: Key highlights timeline
40 December • Universal application “HOME'S “ Key highlights • Looking for your perfect property November on internet ”Sumai sagashi book” • Hold “HOME'S EXPO2013” in 4 places Steadily spend the additional budget designed for future investment • Provision of property owner work support tool CRM serv
Slide 42: HOME'S Real Estate Information Service Business Model
HOME'S Real Estate Information Service Business Model Point Unlimited postings + billing based on number of inquiries HOME’S Basic Membership Fee Sale / Investment Billing (tax not included) Rental Billing (tax not included) (tax not included) Number of Rental Billing Amount Calculation Method Sale
Slide 43: Additional information: Trend of P/L
Additional information Trend of P/L （unit:thousand yen） 16,000 18.4% 14,282 14,000 16.3% 11,962 12,000 10,779 10,738 10,319 13.3% 10,000 8,927 11.8% 11.2% 8,000 9.2% 6,000 4,000 1,979 1,749 2,000 1,591 1,690 998 952 0 FY2014 FY2009 FY2010 FY2011 FY2012 FY2013 (Forecast) Sales 8,927 10,779 10,738 10,
Slide 44: Rental & Real Estate Trade P/L and properties posted
Profit and loss statement / Additional information Number of Properties Posted and Affiliated Stores of Rental & Real Estate Trade Number of Properties Posted and Affiliated Stores Profit and loss statement of Rental & Real Estate Trade Previous year Current year FY03/2013 FY03/2014 Comparison FY03/
Slide 45: Trend of Operating P/L (Quarterly)
Additional information Trend of Operating P/L <Quarterly> Quarterly consolidated statements of income FY03/2012 FY03/2013 FY03/2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Sales 2,357 2,462 2,486 3,012 2,737 2,763 2,939 3,522 3,398 3,454 3,556 Real estate information 2,337 2,438 2,462 2,983 2,709 2,736 2,9
Slide 46: Real Estate Market Data
Additional information Real Estate Market Data 【Number of Apartments for Sales（annual）】 Source:Real Estate Economic institute Co.LTD 2006 2007 2008 2009 2010 2011 2012 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Capital Region 74,463 61,021 43,733 36,376 44,53
Slide 47: 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 1,997 million yen Number of shares outstanding 56,432,400 shares (Number of the Treasury Shares: 36,318) (*) Con
Slide 48: 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) Fax +81-3-5783-3737 Contact E-mail ir@next-group.jp Company website http://www.next-group.jp/ (Japanese) http://www.next-group.jp/en/ (English) Facebook