Slide 1: Earnings Presentation IFRS
LIFULL Co., Ltd. Earnings Presentation IFRS Second Quarter of the Fiscal Year Ending September 30, 2019 (October 2018 to March 2019) Disclaimer The opinions and projections, etc. contained herein represent the judgment of LIFULL Co., Ltd. at the time this document was prepared. We provide no guarant
Slide 2: Index
Index 1. Key Points P02 2. Highlights P03 3. Growth Strategy P04 4. Q2 Financial Results P08 5. Appendices P39 6. IR Office Information P51
Slide 3: Key Points
Key Points 1. FY 2019/9 Q2： Revenue: JPY 19.5 billion, +10.9% YoY EBITDA: JPY 2.2 billion, -24.7% YoY 2. Proactive investments for future growth Investment to strengthen LIFULL HOME’S media presence Acquisition of Mitula Anticipatory investment in Rural Revitalization Business Goodwill impai
Slide 4: Highlights
Highlights Revenue EBITDA EBITDA Margin Net Profit +10.9% -24.7% -5.5p -39.9% JPY 19.5 bil. JPY 2.2 bil. 11.7% JPY 0.9 bil. (FY 2018 Q2 : JPY 17.6 bil.) (FY 2018 Q2 : JPY 3.0 bil.) (FY 2018 Q2 : 17.2%) (FY2018 Q2 : JPY 1.5 bil.) HOME’S Services Business Overseas Business Revenue Client Network Reven
Slide 5: Growth Strategy
Growth Strategy (Overview) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 4
Slide 6: Mid-Term Management Plan Quantitative target
Mid-Term Management Plan Quantitative target FY2020/9 Revenue JPY 50+ billion EBITDA Margin approx. 20% 5
Slide 7: Mid-term Plan 2020
FY2019/9 is an investment phase to achieve the targets of the “Mid-term Plan 2020” 6
Slide 8: To Achieve Mid-term Plan 2020
To Achieve “Mid-term Plan 2020” Investing in FY2019/9 to achieve the targets of the “Mid-term Plan 2020” 01 Growth of HOME’S Services Business 02 Growth of Overseas Business • ARPA*1 x Client network*2 • Strengthen Trovit business ┗ Improve ARPA through growth • Make Mitula a subsidiary ┗ Strengthen
Slide 9: Consolidated Financial Results for FY2019/9 Q2
Consolidated Financial Results for FY2019/9 Q2 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 8
Slide 10: Condensed statements of income and loss IFRS
Condensed statements of income and loss IFRS Sales Revenue grew by +10.9% over FY2018 Q2. EBITDA was down -24.7% due to proactive growth investments Unit: JPY mil FY2018 Q2(Oct.-Mar.) FY2019 Q2(Oct.-Mar.) Change Change % Revenue 17,669 19,599 +1,929 +10.9% *1 Cost of revenue 1,875 2,306 +430 +23.0%
Slide 11: Progress of business forecast for the FY2019/9 IFRS
Progress of business forecast for the FY2019/9 IFRS Condensed Statemants of Income and Loss Revenue by Service FY2019/9 FY2019/9 FY2019/9 FY2019/9 Oct.-Sep. Oct.-Mar. Progress Oct.-Sep. Oct.-Mar. Change Unit: JPY mil [Full-year [Actual] % Unit: JPY mil [Full-year [Actual] % forecast] forecast] Reven
Slide 12: Sales by segment, segment income and loss IFRS
Sales by segment, segment income and loss IFRS In addition to growth in Trovit, the addition of Mitula resulted in large revenue gains while temporary growth investment costs such as marketing and temporary M&A costs brought segment losses FY2018/9 Q2 FY2019/9 Q2 Change Change Main items Unit: JPY m
Slide 13: Temporary impact of growth investments
Temporary impact of growth investments – YoY Analysis– Proactively investing in growth to increase business scope (Unit: JPY hundred thousand) M&A Reorganization Other Marketing Total Costs Costs Costs Costs Costs 0 -2 -5.5 -4 Growth Invest. of approx. -10.2 -6 -1.7 JPY 1 - 1.5 Billion -8 -3 -10 -12
Slide 14: Quarterly performance history – Consolidated revenue
Quarterly performance history – Consolidated revenue– Large gains in revenue during Q2 (Jan. – Mar.) up +17.5% YoY ( Million Yen) 12,000 11,208 10,000 9,541 9,056 8,549 8,391 8,345 8,154 8,128 8,000 7,793 7,527 7,107 6,846 6,910 6,441 6,280 6,096 6,000 5,457 4,281 4,318 3,852 3,897 4,000 3,556 3,398
Slide 15: Business growth and breakdown
Business growth and breakdown – Consolidated revenue – In addition to steady growth in HOME’S Services, increased speed in the growth of Overseas Businesses (Unit: Millions of yen) 20,682 5.0％ Others 17,669 16,163 21.2％ Overseas 13,807 73.8％ Services 2H FY2016/3 2H FY2017/3 1H FY2018 1H FY2019 (Oct-
Slide 16: Condensed statements of financial position and goodwill IFRS
Condensed statements of financial position and goodwill IFRS JPY 3.2 bil. in short-term loans used for the acquisition of Mitula As of As of Change Change % Main items Unit: JPY mil Sep 30, 2018 Mar 31, 2019 Increase in cash and deposits +1,757 Refer to Consolidated Statement of Cash Flows Current a
Slide 17: Condensed statements of cash flow IFRS
Condensed statements of cash flow IFRS Cash and cash equivalents increased by JPY 1.7 bil. to 9.3 bil. from FY2018 Q2 FY2018/9 Q2 FY2019/9 Q2 Change Main items Unit: JPY mil Oct.-Mar. Oct.-Mar. Items FY2018/9 Q2 FY2019/9 Q2 Profit for the period before tax +2,426 +1,512 Depreciation and amortization
Slide 18: Services
Services Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 17
Slide 19: Comparison with same period in previous year – Effects of operation withdrawals
Comparison with same period in previous year –Effects of operation withdrawals – Sales revenue up +4.1% excluding effects from withdrawal of the Reform Business Unit: JPY mil. Revenue Segment P&L +4.1% -37.6% * 15,264 2,422 14,805 2,223 14,659 1,512 FY18 Q2 Total FY18 Q2 Total FY19 Q2 Total FY18 Q2
Slide 20: KPIs - Client network・ARPA
KPIs - Client network・ARPA - ARPA improved by 2.2% YoY ARPA （JPY） Client Network FY2017 Q2 FY2018 Q2 FY2019 Q2 FY2017 Q2 FY2018 Q2 FY2019 Q2 96,774 90,808 92,816 27,084 27,409 23,657 *ARPA figures are the average of each six-month period. *Above figures are preliminary ones and will be revised once
Slide 21: Measures to improve ARPA
Measures to improve ARPA –Strengthening media presence – Continue investments in strengthening media presence Strive to become market leader by maximizing provided value Campaigns Branding Content Strengthening Media Presence of UI・UX LIFULL HOME’S SEO Paid Marketing 20
Slide 22: Investment in strengthening media presence – Branding promotion
Investment in strengthening media presence – Branding promotion – Heaviest investments in branding promotion yet to make LIFULL HOME’S more attractive and increase the number of users Most TV commercial slots ever TV Show from October Title : Stories - A home to explore your life - Chanel : Nippon T
Slide 23: New marketing products
New marketing products – New product – Began a new series of banner placements Smartphone Site Custom Houses Homepage 22
Slide 24: (Ref) ARPA improvement measures – Strengthening media presence
（Ref）ARPA improvement measures – Strengthening media presence– < Traffic> Since May 2017 Since May 2018 5月 May 6月 June 7月 July 8月 Aug 9月 Sep 10月 Oct 11月 Nov 12月 Dec 1月 Jan 2月 Feb 3月 Mar 23
Slide 25: Overseas Businesses
Overseas Businesses Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 24
Slide 26: Overseas businesses - Q2 performance
Overseas businesses - Q2 performance - Unit: JPY mil. Revenue Segment income and loss +81.5% +3.0% 3,301 208 214 1,819 FY18 Q2 Total FY19 Q2 Total FY18 Q2 Total FY19 Q2 Total (Released) (Released) * Since Mitula was acquired in Jan., only 3 months are shown JPY 4,384 mil. since Oct., 2018 25
Slide 27: Trovit – Quarterly result trend
Trovit – Quarterly result trend – Rapid growth from Jan - Mar, 2019 : +24.0%* YoY +24.0% +16.1% Rapid Growth 2015/Q1 Q2 Q3 Q4 2016/Q1 Q2 Q3 Q4 2017/Q1 Q2 Q3 Q4 2018/Q1 Q2 Q3 Q4 2019/Q1 * Trovit results based in Euro 26
Slide 28: Inclusion of Mitula since January, 2019
Inclusion of Mitula since January, 2019 27
Slide 29: Mitula – Quarterly result trend
Mitula – Quarterly result trend – Rapid growth from Jan - Mar, 2019 : +63.4%* YoY +63.4% +42.1% Rapid Growth 2015/Q1 Q2 Q3 Q4 2016/Q1 Q2 Q3 Q4 2017/Q1 Q2 Q3 Q4 2018/Q1 Q2 Q3 Q4 2019/Q1 * Based in AUD until FY2018 * EUR 1 calculated at AUD 1.56 for FY2019 28
Slide 30: Overseas businesses – Segment P&L (Quarterly Trend)
Overseas businesses – Segment P&L (Quarterly Trend) – Large increase in profitability without regard to temporary M&A costs 単位：百万円 Unit: JPY mil. 〈 四半期 Segment Quarterly セグメント損益 P&L 〉 ■Trovit ■Mitula ■International Division ■PPA ■M&A Costs ■ Other 542 -581 PPA depreciation costs associated with the
Slide 31: Growth of overseas businesses - Accelerate growth through M&A
Growth of overseas businesses - Accelerate growth through M&A - In addition to achieving organic growth of Trovit, accelerate overseas growth through Mitula acquisition. Integrated management to strengthen earning capacity Area Strategy Competitive Service Strategy Sales Strategy Organization Strate
Slide 32: Overseas business growth - Growth strategy
Overseas business growth - Growth strategy - Increase the potential value for traffic and enable multilateral opportunities for future revenue. ③ Transaction • High-quality High Increase opportunities referrals for future revenue • Turn-overs • Secondary markets New (Peripheral domains) Products ②Ad
Slide 33: Other Businesses
Other Businesses Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 32
Slide 34: Other businesses – Segment sales revenue (quarterly)
Other businesses – Segment sales revenue (quarterly) – Continuously steady business growth excluding effects of transfer of LHL*1 Transfer of LHL Revenue by quarter Unit: JPY mil. 488 ■Existing businesses*2 ■New businesses excluding the 4 main businesses Establishment of the four Steady subsidiaries
Slide 35: Other businesses – Segment P&L (quarterly)
Other businesses – Segment P&L (quarterly) – Other established businesses are continuing smoothly without regard to the transfer of LHL. Additional investments are also being made into Rural Revitalization (Quarterly Segment P&L) Unit: JPY mil. Transfer of LHL ■既存事業 Existing ※ ■4社以外の新規事業 Other new b
Slide 36: Other businesses – Rural revitalization
Other businesses – Rural revitalization – Proactive investment in Rural Revitalization to promote the compilation of vacant houses for repurposing into a database 01 02 03 Compilation of database for vacant properties Recruitment / Training Repurposing vacant properties Akiya Bank Training program U
Slide 37: Other businesses – New services
Other businesses – New services – Continuing investment to train the next generation of business leaders and create new businesses Training the Next Generation New Business 01 of Business Leaders Through internal programs such as "Switch" and the "Business Leader Seminar", employees have the opportu
Slide 38: LIFULL Worldview – LIFULL Group
LIFULL Worldview – LIFULL Group – Create a society where everyone can attain "comfort" and "happiness" through continuous social innovations Become the best life-event database and solution company in the world. Build the biggest life-event database in the world to offer the best solutions for each
Slide 39: Make every LIFE FULL.
ry Ly LIFULL Make every LIFE FULL.
Slide 40: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 39
Slide 41: Corporate Info (as of March 31, 2019)
Corporate Info (as of March 31, 2019) Company LIFULL Co., Ltd. Stock code 2120 (TSE 1st Section) Representative Takashi Inoue, President and CEO History Mar. 12, 1997 Established Oct. 2006 Listed in TSE, Mother’s Section Mar. 2010 Listed on TSE 1st Section President and CEO Takashi Inoue Capital JPY
Slide 42: LIFULL HOME'S
LIFULL HOME’S LIFULL HOME’S real estate and housing information listing site https://www.homes.co.jp/ • “LIFULL HOME'S” is the No.1* real estate and housing information site in Japan by listing numbers. *SANKEI Advertising Inc. (2019.1.7) • LIFULL has an internal team specialized in improving inform
Slide 43: LIFULL Group Services
LIFULL Group Services LIFULL Kaigo (nursing care) LIFULL Hikkoshi (moving) LIFULL Trunk Room (storage) LIFULL Interior Website to search nursing care homes Website to make an inquiry A website to search rental storage rooms/units Furniture / interior EC website or elderly housing and reservation wit
Slide 44: LIFULL Group Companies
LIFULL Group Companies (in chronological order by effective date of establishment or addition to the scope of consolidation) PT. LIFULL MEDIA INDONESIA *1 Planning and operation of “LIFULL Rumah” a real estate and housing information website in Indonesia Home hunting proxy service in Jakarta for
Slide 45: Segments and Major Services
Segments and Major Services Segments Main services HOME’S Services Business LIFULL HOME’S AD Master (former Renter’s Net) NabiSTAR LIFULL Marketing Partners Co., Ltd. Overseas Businesses Trovit (Trovit Search, S.L.) Mitula (Mitula Group Limited) LIFULL Tech Vietnam Co., Ltd. Other Businesses LIFULL
Slide 46: Number of employees – Across All Businesses
Number of employees – Across All Businesses – Number of overseas employees has increased due to the expansion of Overseas Businesses (Number of employees) 1,500 1,438 1,275 1,199 1,118 1,000 919 ■Overseas Businesses 735 ■Other Businesses 561 ■HOME’S Services Business 500 0 2014年3月期 2015年3月期 2016年3月期
Slide 47: Consolidated statements of profit and loss (quarterly)
Consolidated statements of profit and loss (quarterly) FY2017/03 FY2017/09 FY2018/09 FY2019/09 Unit : JPY mil 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q Revenue 6,846 6,910 7,107 9,056 7,793 8,154 8,128 9,541 8,345 8,549 8,391 11,208 HOME'S Services Business 5,616 5,782 5,955 7,662 6,472 6,816 6,742 8,062
Slide 48: Expense-to-revenue ratio IFRS
Expense-to-revenue ratio IFRS Increase in Cost of Sales and Other SG&A due to M&A costs Higher percentage of advertising costs due to highest expenditure in marketing ever 28.9% +2.5pt -4.2pt 27.2% +3.6pt 30.8% 31.4% Cost of sales and other SG&A Advertising expenses 27.7% +3.2pt +3.6pt 34.4% 30.8% +
Slide 49: External market data
External market data 2015 2016 2017 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 40,449 35,772 37,132 2,817 3,366 6,480 1,934 2,490 3,617 2,342 2,462 2,659 2,986 1,502 3,372
Slide 50: (Ref.) Domestic market environment
(Ref.) Domestic market environment 01 02 03 04 Number of Real Estate Number of Licensed Number of Offices Size of Real Estate Companies Real Estate Agencies Listing Market 328,553 123,782 (105,015 Corporates) 352,733 Approx. 900+ billion yen (Based on 2017 values from the (Based on 2017 values from
Slide 51: (Ref.) Overseas competitors
(Ref.) Overseas competitors Competitors have high market capitalization due to their user shares in each country. Market Cap [Rightmove, UK] As of September, 2019 (forecast) Revenue JPY 38.6 bil. [LIFULL, JP] JPY 914.3 bil. Market Cap (YoY+10%） Revenue 42.3B.JPY EBITDA JPY 29.2 bil. EBITDA 5.9B.JPY
Slide 52: IR Office Information
IR Office Information IR Website English https://LIFULL.com/en/ir/ Japanese https://LIFULL.com/ir/ TEL 03-6774-1603 (Monday to Friday 10:00AM-6:00PM) E-mail ir@LIFULL.com FAX 03-6774-1737 Annual Report 2017 Other Information Twitter Facebook Page Japanese https://lifull.com/news/10305/ English https