Slide 1: Full-Year Results IFRS FY2020/9
LIFULL Co., Ltd. Full-Year Results IFRS FY2020/9 (October 2019 – September 2020) Disclaimer The opinions and projections, etc. contained herein represent the judgment of LIFULL Co., Ltd. at the time this document was prepared. Please be aware that actual results may vary considerably due to various
Slide 2: Index
Index 1. FY2020/9 Financial Information P2 2. Mid-Term Management Plan P 14 3. HOME'S Service Growth Strategy P 22 4. Overseas Action Plan P 26 5. Efforts in Real Estate Investment Sector P 30 6. Forecast for FY 2021/9 P 33 7. Appendices P 36 8. IR Team Contact Information P 56 1
Slide 3: Full-Year Financial Results
Full-Year Financial Results Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 2
Slide 4: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Revenue: -9.9% YoY EBITDA: -16.0% YoY Net Profit: -51.4% YoY FY2019 FY2020 Change Change % Unit: JPY mil. (Oct.-Sep.) (Oct.-Sep.) Revenue 39,297 35,402 -3,894 -9.9% *1 Cost of revenue 4,559 4,096 -463 -10.2% *2 SG&A (excl. depreciation and amortization) 2
Slide 5: Revenue and Income and Loss by Segment IFRS
Revenue and Income and Loss by Segment IFRS We responded to the decrease in revenue due to COVID-19 by adjusting our expense strategy resulting in increased profit for the domestic HOME'S Services segment FY2019 FY2020 Change Change Main items Unit: JPY mil. (Oct.-Sep.) (Oct.-Sep.) % Revenue 39,297
Slide 6: Condensed Statement of Financial Position and Goodwill IFRS
Condensed Statement of Financial Position and Goodwill IFRS Operating leases recognized as right-of-use assets under IFRS 16 Solidified our financial base against future unpredictability with new borrowings of +7.2 billion yen in April As of As of Change Change Main items Unit: JPY mil. Sep 30, 2019
Slide 7: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS Goodwill impairment loss for overseas subsidiaries with 7.2 billion yen in increased borrowing to solidify the financial base. Free cash flow increased 3.15 billion yen with cash and cash equivalents totaling 15.9 billion yen FY2019 FY2020 Change Main items Unit
Slide 8: Japanese Real Estate Market Trends Increased Activity in Suburban Markets
Japanese Real Estate Market Trends Increased Activity in Suburban Markets New demands for in-home workspace due to increased telework during the COVID-19 pandemic Increased interest in suburban resale properties from people leaving the capital to avoid infection Reduced Supply Changes in Area Popula
Slide 9: Upward Revisions to Results Forecasts
Upward Revisions to Results Forecasts Upward revisions announced on Sep. 18, 2020 (https://lifull.com/wp-content/uploads/2020/09/En_release_200918.pdf) The HOME'S Services segment has gradually bounced back from the decrease in inquiries experienced during the state of emergency. Visit trends are cu
Slide 10: Key Performance Indicators Client Network and ARPA
Key Performance Indicators Client Network and ARPA Although the Client Network has remained nearly the same as the previous year in the 12-month average, we have been steadily expanding since January 2020 (Details on Page 10) Decrease in ARPA due to realtors suspending services and discounts provide
Slide 11: Client Network Expansion DX (Digital Transformation)
Client Network Expansion DX (Digital Transformation) Under the pandemic, we have moved all of our new client onboarding initiatives online. This shift has allowed our staff to work more efficiently resulting in a steady increase in our client network. Onboarding Initiatives DX Digital Transformation
Slide 12: Effects from Forecast Revisions and Impairment Loss
Effects from Forecast Revisions and Impairment Loss We have controlled expenses and maintained operating profit at the same level as the previous year while bonuses were readjusted for Group employees in Japan due to the upward forecast revision (Cons.) Operating Profit Results Personnel Expenses Un
Slide 13: LIFULL CONNECT Impairment of Goodwill
LIFULL CONNECT Impairment of Goodwill (Released on September 18, 2020) Due to the prolonged effects of the COVID-19 pandemic, we have adjusted the business plans for LIFULL CONNECT and posted an impairment loss of 1,619 million yen Growth in LIFULL CONNECT COVID-19 Infections in Primary Markets for
Slide 14: Changes to the Dividend Policy
Changes to the Dividend Policy (Released on September 18, 2020) Revisions to the Dividend Policy announced on Sep. 18, 2020 (https://lifull.com/wp-content/uploads/2020/09/En_release_200918.pdf) Making it possible to take into consideration fluctuations to the profit attributable to owners of the par
Slide 15: A Look into the Next 5 Years (Mid-Term Management Plan 2025)
A Look into the Next 5 Years (Mid-Term Management Plan 2025) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 14
Slide 16: Foundation of LIFULL Group Management
Foundation of LIFULL Group Management We manage our businesses on the basis of our credo of "Altruism" and Will-Centric Public Interest Capitalism Will-Centric Public Interest Capitalism Business Working towards solving rooted in Corporate Values ≒ Social Issues Giving Back to All Stakeholders Consu
Slide 17: Management on a Will-Centric Foundation
Management on a Will-Centric Foundation (Ref.) Keeping Stakeholders in Mind Our Next Throughout Our Progress Challenge Creating the Best Team in the World Support for Volunteer Activities Working on Link and Motivation OneP's more solutions for SOCIAL Best Motivation Contributing 1% of all Company A
Slide 18: Focal Points of the Mid-Term Management Plan
Focal Points of the Mid-Term Management Plan FOCAL POINTS HOME'S OVERSEAS OTHER SERVICES OMNI- CHANNEL MOVING REGIONAL TO REVITALIZTION DIRECT & SENIOR DX CITIZENS Growth through solutions to social issues through our existing businesses 17
Slide 19: Depiction of Future Growth
Depiction of Future Growth By finding solutions to social issues, we will grow the business and boost revenue and profit. While closely monitoring the pandemic, we will disclose our forecasts for each year during the mid-term management plan Finding solutions to Future Growth SOCIAL (Depiction) Sale
Slide 20: Growth Investments for the LIFULL Group
Growth Investments for the LIFULL Group We will continue to advance our services by attracting outstanding individuals and providing environments and conditions that motivate our employees to find their potential PEOPLE SERVICE Motivating Environment Fostering Innovation Driving Spreading the Contin
Slide 21: More Flexible Workstyles for Higher Productivity
More Flexible Workstyles for Higher Productivity Driving productivity by providing a working environment catered to individual working styles More Flexible Environment Employee Benefits Individualized Working Styles (Example from LIFULL and Japanese Subsidiaries) Work from home 2 days a week (1-5 da
Slide 22: Consolidating Office Space
Growth Investments Consolidating Office Space With employees working from home multiple days a week, we are consolidating our satellite offices in Tokyo and Osaka more maximum efficiency Cultivate synergy REUNITING within the Group MOVE Our Offices Reduce Expenses Foster New Ideas Kenbiya Co., Ltd.
Slide 23: HOME'S Services
HOME'S Services Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 22
Slide 24: LIFULL HOME'S Growth Strategy
LIFULL HOME'S Growth Strategy Increasing our market share by developing user satisfaction through our omnichannel approach and digital transformation User OMNI Satisfaction CHANNEL Client Network Refine & Listings Inquiries Client DX Digital Satisfaction Transformation 23
Slide 25: LIFULL HOME'S Growth Strategy Omnichannel
LIFULL HOME'S Growth Strategy Omnichannel The Sumai No Madoguchi property consultation service assists users online and offline in finding the right place to live – whether they are looking to buy, rent or build Sumai No Madoguchi Channels catering to a wide Locations Across Japan Consultations vari
Slide 26: LIFULL HOME'S Growth Strategy DX (Digital Transformation)
LIFULL HOME'S Growth Strategy DX (Digital Transformation) Digitalization of moving documents has helped us simplify and revolutionize the relocation process and support everyone in finding the home they want Find a Home with the Latest Technology Driving Real Estate Transactions Online Rent Home Ind
Slide 27: Overseas
Overseas Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 26
Slide 28: LIFULL CONNECT Increasing Competitiveness
LIFULL CONNECT Increasing Competitiveness SEO improvement resulting in traffic growth after the establishment of LIFULL CONNECT LIFULL CONNECT Organic Traffic1 From the End of Previous FY FY 2019 FY 2020 +38% Q1 Q2 Q3 Q4 LIFULL CONNECT Aggregation Sites More people choosing LIFULL CONNECT brands 1 T
Slide 29: LIFULL CONNECT Moving to Direct
LIFULL CONNECT Moving to Direct Increasing investments in direct services to provide users and clients with even more value DIRECT Providing more value to Areas of Focus Headcount in Increase Site Multimedia clients and users Target Regions Listings Features Resources October 2020 Acquisition of Hip
Slide 30: LIFULL CONNECT Action Plan
LIFULL CONNECT Action Plan With effects of the pandemic continuing longer than expected, we are effectively controlling operating costs and compensating for reduced revenue Efficient Cost Management Quarterly Revenue and Profit Margins Revenue Online Gross Profit Margin Hiring Plans Marketing Office
Slide 31: Technology for the Real Estate Investment Sector
Technology for the Real Estate Investment Sector Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 30
Slide 32: Developing a Global Real Estate Investment Platform
Developing a Global Real Estate Investment Platform Leveraging our information and technology assets to construct a global real estate investment platform Knowhow Real Estate International Data Partnerships Global Japan Real October 2019 July 2020 Estate Proof-of-concept Residential Property Data Ca
Slide 33: Working Toward a Global Real Estate Investment Platform
Working Toward a Global Real Estate Investment Platform First STO in Japan for real estate joint ventures Press Release from October 20 (https://lifull.com/news/18693/） Stimulating investment by making it possible to buy and sell securitized real estate POINT 1 More convenience and security POINT 2
Slide 34: FY 2021/9 Results Forecast
FY 2021/9 Results Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 33
Slide 35: Forecast for FY 2021/9 IFRS
Forecast for FY 2021 / 9 IFRS We will make timely announcements of critical matters as they arise, such as the progression of the effects of COVID-19 Condensed Statemants of Income and Loss Revenue by Segment FY2020 FY2021 FY2020 FY2021 Oct.-Sep. Oct.-Sep. Change Change Oct.-Sep. Oct.-Sep. Change Ch
Slide 36: Make every LIFE FULL
Goal of the LIFULL Group Make every LIFE FULL 35
Slide 37: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 36
Slide 38: Corporate Information (as of September 30, 2020)
Corporate Information (as of September 30, 2020) 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
Slide 39: Completion of the Repurchase of Treasury Shares
Completion of the Repurchase of Treasury Shares The share buyback decided at the Board of Directors meeting on May 14 was completed on August 4. (Per Agreement) Reasons Details of Repurchase (Ref.) May 14 Release As of August 4 (Per Agreement) Enhance shareholder returns Total Shares Acquired Shares
Slide 40: LIFULL HOME'S
LIFULL HOME'S LIFULL HOME'S Real Estate and Housing Information Site https://www.homes.co.jp/ • One of the largest real estate listing sites in Japan • Apart from property listings, LIFULL HOME'S also features an in-house Quality Screening Team to ensure the reliability of listing information. • Con
Slide 41: Primary Group Companies
Primary Group Companies (Listed according to date of founding / acquisition) • Planning and operation of the real estate and housing information website, LIFULL Rumah PT. LIFULL MEDIA INDONESIA1 • Planning and operation of the service for Japanese resident officers assigned to Jakarta, LIFULL Concie
Slide 42: Segments and Primary Services
Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) HOME'S Services NabiSTAR LIFULL Marketing Partners Co., Ltd. Kenbiya (Kenbiya Co., Ltd.) Trovit (LIFULL CONNECT) Mitula (LIFULL CONNECT) Nestoria (LIFULL CONNECT) RESEM (LIFULL CONNECT) Overseas Dot Pr
Slide 43: Annual Revenue and Timeline of Company Growth
Annual Revenue and Timeline of Company Growth Acquisition of Earnings Forecast MItula Revision due to (billion yen) impact of COVID-19 40 Changed fiscal year (irregular 6-month period) Changed company name to LIFULL Co., Ltd. 38.4 35 Acquisition of LIFULL MP 30 Acquisition of LITTEL (Merged in 2011)
Slide 44: Growth of Consolidated Earnings and Breakdown
Growth of Consolidated Earnings and Breakdown Consolidated Revenue Decreased revenue from effects of COVID-19 pandemic Since the pandemic heavily affected the Overseas segment, there was an increase in the percentage of HOME'S Services 40,533 Unit: JPY mil. 35,681 34,564 32,111 5.4％ Other Businesses
Slide 45: Number of Employees Group
Number of Employees Group Increase in employees due to overseas expansion Decrease in HOME'S Services from support services for realtors and shared services 1,600 1,558 1,473 1,275 1,199 ■ Overseas 1,200 1,118 ■ Other Businesses 919 ■ HOME'S Services 800 735 561 400 0 End of End of End of End of End
Slide 46: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly Consolidated statements of Profit and Loss (quarterly) FY2017/3 FY2017/9 FY2018/9 FY2019/9 FY2020/9 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue 6,846 6,910 7,107 9,056 7,793 8,154 8,128 9,541 8,345 8,549 8,391 11,2
Slide 47: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Although cost controls have been implanted due to the COVID-19 pandemic, there was a slight decrease in EBITDA margin -3.0pt +1.5pt +1.9pt Cost of Sales and Other SG&A +0.6pt +0.8pt -4.2pt Advertising Expenses Personnel Expenses -1.0pt -0.4pt +3.2pt EBITDA Margin +3.4pt
Slide 48: Pricing Structure Revisions Rental & Sale Properties Starting Oct. 2019
(Ref.) Pricing Structure Revisions Rental & Sale Properties Starting Oct. 2019 New Pricing Structure Basic Membership Fee Inquiries Pay by Inquiry (Mon.) Inquiries (e-mail / tel.) Monthly Rent of Property × 9.5% Rental JPY 15,000 Company Inquiries Number of Inquiries × JPY 5,000 Inquiries (e-mail /
Slide 49: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT Slight recovery from decreased revenue due to the effects of the COVID-19 pandemic Results from LIFULL CONNECT* in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR 10,972 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016
Slide 50: Overseas Segment Results Segment Profit and Loss
Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Lower revenue due to effects of the COVID-19 pandemic leading to reduced profit levels Quarterly Segment P&L ■ LIFULL CONNECT ■ International Division ■ Depreciation ■M&A Costs ■ Other Unit: JPY mil. 594 556 494 405 292 246 64 -97 -7
Slide 51: Other Businesses - Segment Sales Revenue (Quarterly)
Other Businesses - Segment Sales Revenue (Quarterly) - Without regard to the effects of the transfer of LHL1, continuing to maintain scale of operations Transfer of LHL Quarterly Revenue Unit: JPY mil. 479 ■ Existing businesses *2 ■ Other new businesses Founding of 4 companies (incorporation-type co
Slide 52: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) Unit: JPY mil. Transfer of LHL Quarterly Segment Profit and Loss 98 ■ Existing businesses1 ■ Other new businesses 60 44 41 38 42 33 26 -97 -118 -161 -141 -138 -142 -155 -167 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2016/
Slide 53: External Market Data Monthly
(Ref.) External Market Data Monthly 2017 2018 2019 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital R
Slide 54: 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 328,553 124,451 (108,800 Corporates) 352,733 Approx. 900+ billion yen (Based on 2017 values from the (Based on 2018 values from
Slide 55: Base Results of the 2018 Housing and Land Survey
(Ref.) Base Results of the 2018 Housing and Land Survey (Statistics Bureau of Japan) Trend of Total Dwellings and Total Households Trend of Number of Vacant Homes and Vacancy Rates Breakdown of Vacant Homes (10,000 Units) +29 Total Dwellings(10,000 Units) 900 849 16.0% Total +1,779 820 (+3.6%) Total
Slide 56: Overseas competitors
(Ref.) Overseas competitors Competitors have high market capitalization due to their user shares in each country. [Rightmove, UK] As of September, 2021 (Forecast) Revenue ¥39.1 bil. (YoY+8%) [LIFULL, JP] EBITDA ¥29.4 bil. Market Cap. Revenue ¥38.4 bil. Market Cap. Net Profit ¥23.4 bil. EBITDA ¥3.4 b
Slide 57: IR Team Contact Information
IR Team Contact Information IR Site Japanese https://LIFULL.com/ir/ English https://LIFULL.com/en/ir/ TEL +81-3-6774-1603 E-mail ir@LIFULL.com (Weekdays 10:00 - 18:00 JST) Annual Report 2019 Other Information about LIFULL Twitter Facebook Page Japanese https://lifull.com/ir/ir-data/fy2019/ English h