Slide 1: Earnings Presentation IFRS: First Quarter FY Ending September 2018
LIFULL Co., Ltd. Earnings Presentation IFRS First Quarter of the Fiscal Year Ending September 30, 2018 (October to December 2017) 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 guarantees
Slide 2: Index
• Key Points P2 • Consolidated Results for P3 FY2018/9 Q1 • Forecast for FY2018/9 P10 • Mid-Term Business Plan P12 Index • Business Strategies P13 Overseas Business P32 New Businesses P36 • Appendix. P40 • IR Office Information P55 1
Slide 3: Key Points
Key Points 1. FY2018/9 Q1 revenue was 8.1 billion yen (up 14.4% YoY). 2. EBITDA improved (up 60.3% YoY) due to lower SG&A. 3. Number of clients grew 14.9% YoY. APRA decreased 1.9% YoY due to expanding the clients network in local regions and small-to-mid sized real estate companies. 4. Launched prov
Slide 4: Consolidated Results for FY2018/9 Q1
Consolidated Results for FY2018/9 Q1 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3
Slide 5: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Revenue was up 14.4% YoY. EBITDA was up 60.3%. Quarterly net profit was up sharply by 78.4%. FY17/3 Q3 FY18/9 Q1 Change Unit: JPY mil Change Main items Oct.-Dec. Oct.-Dec. % Revenue 7,107 8,128 +1,021 +14.4% Revenue increased across all segments. Cost of
Slide 6: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS The EBITDA margin improved due to decrease in other SG&A and advertising expenses. 27.1% +3.3p +1.5p 28.7% 30.4% 32.0% -3.3p Cost of sales and other SG&A 28.2% -3.9p 24.3% +5.9p Advertising expenses -0.3p 29.9% 30.2% Personnel expenses 25.5% 24.4% +1.0p EBITDA margin -1
Slide 7: Sales by Segment IFRS
Sales by Segment IFRS Revenue for the Overseas Business increased due mainly to exchange-rate effects. FY17/3 Q3 FY18/9 Q1 Change Unit: JPY mil Change Main items % Oct.-Dec. Oct.-Dec. Revenue 7,107 8,128 +1,021 +14.4% HOME'S Services 5,955 6,742 +787 +13.2% Achieved steady growth due to growing numb
Slide 8: Segment Income and Loss IFRS
Segment Income and Loss IFRS Income in the HOME’S Services Business significantly increased mainly due to lower advertising expenses-to-revenue ratio. Income in the Overseas Business significantly increased mainly due to improvements in personnel expenses at Trovit. FY17/3 Q3 FY18/9 Q1 Change Unit:
Slide 9: Condensed Statements of Financial Position and Goodwill IFRS
Condensed Statements of Financial Position and Goodwill IFRS As of As of Unit: JPY mil Change Change Main items Sep 30, 2017 Dec 31, 2017 Decrease in cash and deposits -234 Assets 26,363 26,366 +2 +0.0% Decrease in accounts receivable - trade -197 Increase in prepaid expenses +121 Increase due to pa
Slide 10: Condensed Statements of Cash Flows IFRS
Condensed Statements of Cash Flows IFRS Cash and cash equivalents decreased by approx. JPY 200 million to JPY 5.2 billion. FY17/3 Q3 FY18/9 Q1 Main items Unit: JPY mil Change Oct.-Dec. Oct.-Dec. FY17/3 Q3 FY18/9 Q1 Items Oct.-Dec. Oct.-Dec. Income before income taxes 541 1,080 Depreciation and amort
Slide 11: Forecast for FY2018/9
Forecast for FY2018/9 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 10
Slide 12: FY2018/9 Forecast and Progress IFRS
FY2018/9 Forecast and Progress IFRS Statements of Income and Loss Sales by Segment FY18/9 FY18/9 Q1 FY18/9 FY18/9 Q1 Progress Progress Unit: JPY mil Oct.-Sep. Oct.-Dec. Unit: JPY mil Oct.-Sep. Oct.-Dec. % % [Full-year forecast] [Actual] [Full-year forecast] [Actual] Revenue 41,000 8,128 19.8% Revenu
Slide 13: Mid-Term Business Plan: Toward 50.0 bn yen revenue
Mid-Term Business Plan Revenue (JPY bn) JPY50.0bn Toward 50.0 45.0 50.0 bn yen level 40.0 revenue and 35.0 EBITDA margin 30.0 around 20% 25.0 20.0 by Mar. 2020 15.0 10.0 5.0 0.0 1997 2001 2006 2011 2016 Mar. Mar. Mar. Mar. Mar. J-GAAP IFRS 12
Slide 14: Business Strategies
Business Strategies Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 13
Slide 15: LIFULL HOME'S Core Strategy
Mid-to-Long Term Strategy Global Roadmap Platform Expanding real-estate Stimulating markets real-estate Transforming the markets real-estate industry Covering the Akiya Bank Data- information and evaluations Covering the information Building the global (property info, pricing, asset info, of investm
Slide 16: Expanding the Number of Total Information Listed
Expanding the Number of Total Information Listed No. of Total Information Listed (mil) 9.00 8.48mil 8.00 7.79mil Maintain 7.00 the volume of listed 6.00 information 5.00 4.00 3.00 2.00 1.00 *Total information: properties for rental, real estate sales, 0.00 investment, and new houses and condos. 2015
Slide 17: Expanding the Client Network
Expanding the Client Network Number of clients grew steadily. ARPA decreased YoY due to expanding the clients network in local regions and small-to-mid sized real estate companies. No. of Clients (JPY) ARPA 30,000 120,000 112,492 Seasonality 27,155 26,492 26,040 25,000 23,629 100,000 24,010 22,969 2
Slide 18: Definition of No. of Clients and ARPA
(Ref.) Definition of No. of Clients and ARPA Number of clients: The total paid clients of LIFULLHOME’S and LIFULL Marketing Partners (including the clients who uses only DMP and CRM) Definition ARPA: Average Revenue Per Agent HOME’S Services Business revenue / number of clients *Excluding LIFULL Rem
Slide 19: Visualizing the Price Information - Real Estate Price Visualization
Visualizing the Price Information - “Real Estate Price Visualization” We began providing information on existing condominium price ranges and changes in prices over the past five years, sorted by nearest railway station, in the “Real Estate Price Visualization”. The goal is to stimulate the market b
Slide 20: Visualizing Building Performance Evaluation - LIFULL HOME'S House Appraisal
Visualizing Building Performance Evaluation – “LIFULL HOME’S House Appraisal” The LIFULL HOME’S website presents house appraisal documents to help visualize property values, with the goal of removing uncertainties facing potential buyers of existing homes and revitalizing the existing home market. P
Slide 21: Enhancing Media Power - Won Google Play Best of 2017 Award
Enhancing Media Power - Won Google Play Best of 2017 Award Winner in Daily Helper segment Winner for second year in a row 20
Slide 22: Enhancing Media Power - iOS and Android apps
Enhancing Media Power – iOS and Android apps Cumulative total downloads surpass 5 million. (May 2017) View all the properties Measure rooms Display properties in the same building in a map Moving checklist using AR at once *The image is iOS app 21
Slide 23: Enhancing Media Power - Major iOS app upgrade
Enhancing Media Power - Major iOS app upgrade We implemented a major upgrade of the iOS app to further improve its search performance. Our goal is to continue delivering services that allow users to find the properties that perfectly fit them, both enjoyably and effectively. Saved search criteria ma
Slide 24: Making Real-Estate Transactions Available Online
Making Real-Estate Transactions Available Online We added new features to “LIFULL HOME’S LIVE,” a service incorporated as part of a social experiment by the Ministry of Land, Infrastructure, Transport and Tourism. LIFULL HOME’S LIVE Online Contract Platform (Launched Oct. 2017) This service allows u
Slide 25: Making Real-Estate Transactions Available Online - LIFULL HOME'S LIVE
Making Real-Estate Transactions Available Online - LIFULL HOME’S LIVE The LIFULL HOME’S search criteria and property details pages also encourage use of online property viewing, online inquiries, and online explanations of important matters. Search criteria added Inquiry buttons added Special pages
Slide 26: LIFULL HOME'S Live - Promotions
LIFULL HOME’S Live - Promotions We use a diverse media mix to communicate the benefits of using LIFULL HOME’S LIVE to users. TV commercial Broadcasts of the LIFULL HOME’S TV commercial “Searching for a home from far away” began on January 4. An earthbound HOME’S-kun helps Yui Okada search for a home
Slide 27: Initiatives to stimulate the market for existing homes
Initiatives to stimulate the market for existing homes Resolving the issue of vacant homes through promoting use of vacant homes, fundraising, vacation Details P27 rental to stimulate the tour industry. Akiya Bank Developing a comprehensive database of information on vacant homes nationwide Details
Slide 28: LIFULL HOME'S Akiya Bank
LIFULL HOME’S Akiya Bank A model program for building and operating a nationwide Akiya (vacant properties and homes) Bank as proposed by the Ministry of Land, Infrastructure, Transport and Tourism. Acceptance of participation by local governments began July 19, 2017, with the (beta) website released
Slide 29: Investment-type Crowdfunding
Investment-type Crowdfunding Accelerating the crowdfunding business with the January 2017 purchase of stock in JG MARKETING (currently LIFULL Social Funding). Property use development Revenue generation Remodeling ✕ Renovation Interior design Attracting customers Dormant asset Lodging facilities, ca
Slide 30: Rakuten LIFULL STAY
Rakuten LIFULL STAY The enforcement date of the new law have announced as June 15, 2018. Registration for hosts will be start on March 15. - Vacation Stay Partner travel sites and vacation rental sites Search for Bulk registration (Rakuten Travel, Home Away, and make Domestic travelers AsiaYo.com, T
Slide 31: Expanding the Real-Estate Market: Homelink alliance
Expanding the Real-Estate Market We’ve entered into a business alliance with Homelink (链家), among China’s largest real- estate brokerages. The goal is to expand the real-estate market by stimulating inbound investment by Chinese investors. Contractual support Domestic realtors Interviews, Chinese in
Slide 32: LIFULL Service List
LIFULL Service List Now providing a wide range of services for both users and realtors Mortgage estimates Escrow Being Under development/in Not Online property provided planning undertaken Call Center Counter Viewing Online contact Services Started to provide since FY18/9 Q1 The LIFULL HOME’S app Ho
Slide 33: Overseas Business
Overseas Business Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 32
Slide 34: We operate in 57 different countries
Accelerating the LIFULL Group’s Global Expansion 4 countries 57 countries We operate in 57 different countries 33
Slide 35: Overseas Businesses' Planned 2018 Initiatives
Overseas Businesses’ Planned 2018 Initiatives LIFULL Immofinder 1. Increasing number of properties 2. Paid product development 57 LIFULL Australia 1. New product development 2. Enhancing sales (increasing unit prices and numbers of paying clients) 3. Developing new function (improving usability) Tro
Slide 36: Promoting Deployment in Overseas Business Domains
Promoting Deployment in Overseas Business Domains Our goal is to build a global real-estate database by addressing demand for and investment in real estate both in Japan and overseas. Covered Not yet covered Japanese real- Overseas agents estate companies Japanese clients LIFULL Outbound HOME’S busi
Slide 37: New Businesses
re New Businesses rq L CIFULL
Slide 38: Objectives of New Businesses
Objectives of New Businesses Realizing the corporate vision by generating new businesses to train managers and expand business domains. Solutions Make every LIFE FULL. Realizing Training Expanding a vision managers business domains 37
Slide 39: LIFULL Fab Opens
LIFULL Fab Opens Opened on February 1, LIFULL Fab is a comprehensive studio, based on a wide range of the latest technologies, including laser cutters and 3D printers, whose purpose is to create new businesses by bringing together creative talents from inside and outside the Company. Opening hours M
Slide 40: Make every LIFE FULL.
m7 |, LIFULL Make every LIFE FULL. rq L CIFULL
Slide 41: Appendix.
Appendix. Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 40
Slide 42: Corporate Info (as of December 31, 2017)
Corporate Info (as of December 31, 2017) 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 Capital JPY 3,999 million Stock issues 1
Slide 43: Change in Company Name
Change in Company Name Make every LIFE FULL NEXT Co., Ltd. changed its name to “LIFULL Co., Ltd.” on April 1, 2017 “LIFULL” combines the words “LIFE” and “FULL” and expresses our determination to provide services that lead to more fulfilling lives and lifestyles. 42
Slide 44: LIFULL Master Brand Strategy
LIFULL Master Brand Strategy Objectives of Master Brand Strategy ・ Integrating the brands of all services offered by the LIFULL Group under a master brand strategy to build a brand users will trust to deliver fulfilling lives and peace of mind ・ Increase the efficiency of advertising expenses and re
Slide 45: Change in Accounting Period
Change in Accounting Period Details Change in accounting period from the current March 31 to September 30 fiscal year. This fiscal year will be April 1, 2017 to September 30, 2017 (six months). The next fiscal year will be October 1, 2017 to September 30, 2018. Reason for change Due to the nat
Slide 46: Issued Annual Report 2017
Issued “Annual Report 2017” Issued the first annual report of LIFULL - We defined the strength of LIFULL as an intellectual capital composed of “brands”, “human resources”, and “technology” - The background and concept of change in company and brand in April 2017, and new business policy - Mid-term
Slide 47: External Market Data
External Market Data Number of Apartments for sales Source : Real Estate Economic Institute Co., Ltd. 2015 2016 2017 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capita
Slide 48: Consolidated Statements of Profit and Loss (quarterly)
Consolidated Statements of Profit and Loss (quarterly) FY2016/03 FY2017/03 FY2017/09 FY2018/09 Unit : JPY mil 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q Revenue 5,457 6,441 6,280 7,527 6,846 6,910 7,107 9,056 7,793 8,154 8,128 HOME'S Services Business 4,280 5,210 5,167 6,263 5,616 5,782 5,955 7,663 6,472 6,81
Slide 49: (ref.) Number of Properties Listed
(ref.) Number of Properties Listed Rentals and Real Estate Sales New Houses and Condos (mil) 8.45mil 7.75mil (building) 10,599 buildings 8.00 10,000 6.00 7,624 buildings 8,000 6,000 4.00 4,000 2.00 2,000 0.00 0 2008 2016 2017 Co. Co. Co. 2010 2016 2017 Apr. Dec. Dec. A B C Apr. Dec. Dec. 48
Slide 50: Expanding the Client Network: No. of Affiliated Offices
Expanding the Client Network No. of Affiliated Offices * (offices) *Number of real estate agents in the number of clients on P16 Mid-to-long term target 40,000 40,000 offices 30,000 Steady growth 24,555 offices 21,016 offices 20,000 10,000 0 2011 2016 2017 Mar. Dec. Dec. 20XX 49
Slide 51: LIFULL HOME'S
LIFULL HOME’S LIFULL HOME’S, a real estate and housing information listing site https://www.homes.co.jp/ “LIFULL HOME‘S” is the No.1 real estate and housing information listing site in Japan. *Sankei Medix (2018.1.30) Besides the quantity of information, LIFULL HOME’S established screening team to i
Slide 52: LIFULL Group Services
LIFULL Group Services LIFULL Kaigo LIFULL Hoken Sodan LIFULL Interior LIFULL Hikkoshi (nurse care) (insurance consultation) (moving) Website used to find nursing care homes Insurance agency search and Furniture / interior EC website Operated by LIFULL MOVE or elderly housing appointment website “LIF
Slide 53: Segments and Major Services
Segments and Major Services Segments Main services HOME’S Services LIFULL HOME’S Business AD Master (former Renter’s Net) NabiSTAR LIFULL Marketing Partners Co., Ltd. Overseas Business Trovit (Trovit Search, S.L.) LIFULL Australia LIFULL Immofinder Others Business LIFULL Kaigo (nursing care) (LIFULL
Slide 54: LIFULL Group Companies (1)
LIFULL Group Companies (1) (in chronological order by effective date of establishment or addition to the scope of consolidation) PT. LIFULL MEDIA INDONESIA Planning and operation of LIFULL Rumah, a website Real estate and housing information in Indonesia Home hunting proxy service in Jakarta f
Slide 55: LIFULL Group Companies (2)
LIFULL Group Companies (2) (in chronological order by effective date of establishment or addition to the scope of consolidation) LIFULL bizas Administration and other back office operation outsourcee Call center operation outsourcee LIFULL Remodel Online home building mediation service Recon
Slide 56: IR Office Information
IR Office Information Contact us Guide to IR News LIFULL Co., Ltd IR Desk TEL +81-3-6774-1603 We provide timely disclosure data in good time! (Monday to Friday 10:00AM-6:00PM) Please send a blank e-mail to the following e-mail address. FAX +81-3-6774-1737 E-mail ir@LIFULL.com Blank e-mail: touroku@L