Slide 1: Annual Report of Financial Statement, Year Ended March 31, 2012
NEXT Co., Ltd. TSE 1st section 2120 Annual Report of Financial Statement Year Ended March 31, 2012 (April 2011 to March 2012) Opinions and forecasts expressed in this document are those of management as of the date of publication and management does not offer any guarantee regarding their accuracy.
Slide 2: Agenda
Financial Results for the Year Ended March 31, 2012 ・・・ pp. 2-10 Our Initiatives for the Three Months Ended March 31, 2012 ・・・ pp. 11-18 Business Forecast for the Year Ending March 31, 2013 ・・・ pp. 19-23 Priority Action Points for the Year Ending March 31, 2013 ・・・ pp. 24-33 NEXT Co., Ltd. Business
Slide 3: Year Ended March 31, 2012 Financial Results
NEXT Co., Ltd. TSE 1st Section 2120 Year Ended March 31, 2012 Financial Results April 2011 to March 2012 Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 4: Today's Points
Year Ended March 31, 2012 Financial Results Today’s Points Recorded a year-on-year decline in sales and profit due to lower sales for the “HOME’S Rental & Real Estate Trade” business and higher costs arising from the head office relocation Sales ： 10,319 million yen （down 3.9％ year-on-year ） Operati
Slide 5: Trend of major indicators
Year Ended March 31, 2012 Financial Results Trend of major indicators ！ Check Trend of consolidated business performance Sales (million yen) FY03/2011 ・・・ (million yen) Net profit Operating profit (million yen) 1,107 1,979 1,026 1,749 ▲0.4％ 952 +7.9％ ▲11.6％ 465 ▲3.9％ ▲45.6％ ▲57.9％ FY03/2010 FY03/201
Slide 6: Trend of Operating P/L (simplified version)
Year Ended March 31, 2012 Financial Results Trend of Operating P/L (simplified version) Po i n t Sales declined 3.9％ and operating profit fell 45.6％ as SG&A expenses rose 3.6% FY03/2010 FY03/2011 FY03/2012 Change Percentage change Unit: million yen (Apr-Mar) (Apr-Mar) (Apr-Mar) (year-on-year) (year-
Slide 7: Trend of cost to sales ratio
Year Ended March 31, 2012 Financial Results Trend of cost to sales ratio A profit decline posted with the improved personnel cost ratio failing to offset higher costs resulting Po i n t from increased advertising spending and the head office relocation Unit: Million Amount Breakdown yen FY03/2010 FY
Slide 8: Trend of sales by service
Year Ended March 31, 2012 Financial Results Trend of sales by service Strong new condominium/housing sales failed to offset lower sales for the “HOME’S Rental and Real Po i n t Estate Trade” business, causing the Company’s overall sales to record a decline FY03/2011 FY03/2012 Change Percentage chang
Slide 9: Trend of P/L by segment
Financial Results for the Year Trend of P/L by segment Ended March 31, 2012 Profit declined for all the segments due to lower sales and to higher costs arising from the head Point office relocation Unit: Million yen FY03/2010 FY03/2011 Year-on-year change (Apr-Mar) (Apr-Mar) FY 03/2011 FY 03/2012 Pe
Slide 10: Consolidated balance sheet and goodwill
Financial Results for the Year Consolidated balance sheet and goodwill Ended March 31, 2012 Po i n t Net assets per share grew 4.4% year on year while interest-bearing debt remained zero March 31, March 31, 2012 Percentage Unit: Million yen Change Main reasons for change 2011 [End FY03/2012 change I
Slide 11: Consolidated cash flow
Financial Results for the Year Consolidated cash flow Ended March 31, 2012 The balance of cash and cash equivalents as of March 31, 2012 stood at 3,400 million yen; 5,400 Po i n t million yen if time deposits are included FY03/2012 FY03/2012 Unit: Million yen FY03/2011 Change Main items FY03/2011 [Y
Slide 12: Our Initiatives for the Three Months Ended March 31, 2012
NEXT Co., Ltd. TSE 1st Section 2120 Our Initiatives for the Three Months Ended March 31, 2012 Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 13: Topics
Our Initiatives for the Three Months Ended Topics March 31, 2012 ！ Check Real estate information Attained increased sales thanks to the positive effects of our cross-media sales promotion activities services The “HOME’S” website won the number one position in the Smartphone Site Usability Ranking su
Slide 14: Positive effects of various sales promotion initiatives
Our Initiatives for the Three Months Ended Positive effects of various sales March 31, 2012 promotion initiatives ！ ！ Check Check Continued to air a TV commercial featuring a popular Sales began to show a year-on-year gain starting Comedy duo during the January to March 2012 period from February 201
Slide 15: Ranked top in the number of properties posted and website visitor counts
Our Initiatives for the Three Months Ended Ranked top in the number of properties posted and website March 31, 2012 visitor counts ！ ！ Check Check Ranked top in the number of Ranked top in website Top Top properties posted visitor counts In terms of the number of properties posted, the “HOME’S” webs
Slide 16: Ranked top in usability
Our Initiatives for the Three Months Ended Ranked top in usability March 31, 2012 ！ ！ Check Check The “Triple Chance! HOME’S Property Search/Relocation Top Ranked top in usability Support Campaign” now underway in celebration of the the Company having won top website rankings in three categories The
Slide 17: Progress status for our overseas business operations
Our Initiatives for the Three Months Ended Progress status for our overseas March 31, 2012 business operations Took an equity participation in an Indonesian entity, following on from investment in companies in Point Thailand, China and Taiwan, in an effort to lay the groundwork for making “HOME’S” a
Slide 18: China
Our Initiatives for the Three Months Ended China March 31, 2012 Services launched by “HOME’S” website China version on April 9, 2012 in Beijing and Shanghai Point simultaneously ！ Check Services launched by real estate information Website “homescn.com” in Beijing and Shanghai on April 9, 2012 The nu
Slide 19: Indonesia
Our Initiatives for the Three Months Ended Indonesia March 31, 2012 Point Launched preparations for providing Indonesian real estate information services Company PT. Rumah Media (English name: Home media) name Representative Suryanto Wijaya （Corfina） Date of December 14, 2011 founding Number of Eigh
Slide 20: Business Forecast for the Year Ending March 31, 2013
NEXT Co., Ltd. TSE 1st Section 2120 Business Forecast for the Year Ending March 31, 2012 Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 21: Initiatives for FY03/2013: Consolidated financial results forecast
Business Forecast for the Year Initiatives for FY 03/2013 Ending March 31, 2012 Sales are forecast to remain flat year on year, based on our conservative estimation, and profit is Po i n t forecast to decline year on year as we implement our branding enhancement program Item FY03/2012 results FY03/2
Slide 22: Trend of operating P/L forecast
Business Forecast for the Year Trend of operating P/L Ending March 31, 2012 Sales are forecast to remain flat year on year, and the advertising costs budget was expanded by Point approx. 400 million yen for implementing our branding enhancement program [Reference] FY03/2012 FY03/2013 Unit: million y
Slide 23: Trend of sales by service forecast
Business Forecast for the Year Trend of sales by service Ending March 31, 2012 The sales forecast was made on a conservative basis. An anticipated sales growth due to our Point increased advertising costs spending was not factored into the sales forecast [Reference] FY03/2012 FY03/2013 Unit: Million
Slide 24: Dividend forecast
Business Forecast for the Year Dividend forecast Ending March 31, 2012 We expect to pay 1.70 yen in FY 03/2013 per-share dividend, a decline of 2 yen due to a profit Point decline, while we will keep our dividend payout ratio at 15% Item FY03/2012 FY03/2013 (Forecast) Annual dividend (Forecast) 3.70
Slide 25: Priority action points for the Year Ending March 31, 2013
NEXT Co., Ltd. TSE 1st section 2120 Priority action points for the Year Ending March 31, 2013 Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 26: Our Top Priority Challenges
Our Top Priority Challenges for the Year Our top priority challenges Ending March 31, 2013 ！ Check Number one priority In Japan Enhance the “HOME’S” website Number two Overseas priority Put our business on a firm footing in the countries we have expanded into and consider new target countries Number
Slide 27: The concept of our future business development
Our Top Priority Challenges for the Year The concept of our future business Ending March 31, 2013 development Point Next Group’s strategy is to aim at becoming a global company with “DB+CCS” (*) Concept of “DB+CCS” ◆ Communication service ✔ Service enabling the user to become acquainted with people
Slide 28: Business growth scenario for HOME'S
Our Top Priority Challenges for the Year Business growth scenario for “HOME’S” Ending March 31, 2013 Promote a revenue expansion spiral through raising our property comprehensiveness and improving Po i n t the matching rate (i) Expand the affiliated See Page 28 (ii) Up-selling See Page 28 store memb
Slide 29: Attain an even greater number of properties
Our Initiatives for the Year In Japan: Enhance the “HOME’S” website Ending March 31, 2013 Achieve an increased number of properties efficiently, driven by Point function-based marketing business units Target Business unit Action points New affiliated store ・New affiliated store prospecting Prospecti
Slide 30: Branding
Our Initiatives for the Year In Japan: Enhance the “HOME’S” website Ending March 31, 2013 Expanding the advertising budget from 2.7 billion yen to 3.1 billion yen – Stepping up our branding Point promotion efforts to attain a greater customer drawing capability Non-virtual Campaign event Promotion S
Slide 31: Focus on smart devices and recommendation services
Our Initiatives for the Year In Japan: Enhance the “HOME’S” website Ending March 31, 2013 Point Focus the efforts on smart devices and aim to launch recommendation services Step up our CCS = Achieve improved matching rates (CCS: Communication & Concierge Service) Develop services designed for smar
Slide 32: Overseas business development
Our Initiatives for the Year Overseas business development Ending March 31, 2013 Aim to provide multi-language-search-based comprehensible information site services offering Point integrated Asian real estate information ！ Overseas strategy concept: Check Start with the provision of real estate info
Slide 33: Pursue overseas businesses
Our Initiatives for the Year Pursue overseas businesses Ending March 31, 2013 Strive to run our businesses stably in countries we have already expanded into and to continue Point considering new target countries ■Internet penetration and GDP growth rates in Asian countries ■Current statuses and targ
Slide 34: Mid/Long-term goals
Our Initiatives for the Year The concept of our future business Ending March 31, 2013 development 【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 inc
Slide 35: Company Credo and Business Principles
Company Credo and Business Principles Company Credo Altruism Our priority is making people happy. Everyone in the world: Consumers, Clients, Coworkers, Family, and so on… Corporate Philosophy (NEXT Group Vision) Create a society where everyone can attain comfort and happiness through continuing soci
Slide 36: Reference Materials
NEXT Co., Ltd. TSE 1st Section 2120 Reference Materials Reference Materials ・・・Page 35 – 49 Our goal in founding NEXT ・・・Page 36 NEXT’s service offerings ・・・Page 37 Real Estate Information Service “HOME’S” ・・・Page 38 The NEXT Group’s overseas business strategy ・・・Page 39 – 42 Reference data ・・・Page
Slide 37: Our Goal in Founding NEXT
Our Goal in Founding NEXT Eliminate the world’s “negatives” such as “worry,” ”dissatisfaction,” and “inconvenience” We at NEXT seek to provide all kinds of lifestyle services through the internet to help people in the world lead comfortable lives with peace of mind 36 Copyright (c) 2011 NEXT Co.,Ltd
Slide 38: NEXT's Service Offerings
NEXT’s Service Offerings About NEXT NEXT seeks to provide, through the internet, all kinds of lifestyle services related to not only “residential properties” but also “local community” and “medical services” in order to help people in the world lead comfortable lives with a peace of mind anytime any
Slide 39: HOME'S Business Model
“HOME’S” Business Model Point “HOME’S” business model: Fee structure based on the number of inquiries Customer NEXT (“HOME’S”) User Inquiry (Real-estate Rents & Transactions) View information Make inquiry ・Real estate broker Post property information ・Real estate (Real-estate Rents & management Tran
Slide 40: Overseas Business Strategy: Thailand
The Overseas Business Strategy of the NEXT Group Kingdom of Thailand Established a wholly owned subsidiary in Thailand, and plans are underway for providing real estate Po i n t information with an exhaustive listing of properties ！ Check ① Kingdom of Thailand ① Kingdom of Business commencement date
Slide 41: Overseas Business Strategy: China
The Overseas Business Strategy of the NEXT Group People’s Republic of China Po i n t Plans are underway to provide a real estate information website in China, where phenomenal proliferation of the Internet is expected ！ Check ② People’s Republic of China People’s Republic Business commencement date:
Slide 42: Overseas Business Strategy: Taiwan
The NEXT Group’s Overseas Business Strategy Taiwan Entered into a capital alliance with Taiwan’s top-class portal site operator with the aim of expanding Point our business globally ！ Check ③Taiwan Equity participation target: ③ Taiwan Rakuya International Info. Co. Ltd. The portal operated: Rakuya.
Slide 43: Overseas Business Strategy: Indonesia
The NEXT Group’s Overseas Business Strategy Indonesia NEXT made an Indonesian company its local subsidiary in Indonesia, the market that is expected to Point post a fast-paced growth ！ Check ④Indonesia ④ Indonesia Planned service launch: May 2012 Format: Subsidiary (a 50.0% stake acquired) Services:
Slide 44: Additional information
Additional information Summary of Statements of income Sales per segment FY03/2012 FY03/2012 FY03/2013 FY03/2013 FY03/2012 FY03/2012 FY03/2013 FY03/2013 Unit: Million Unit: Million yen 1H 2H 1H 2H yen Segment 1H 2H 1H 2H (Actual) (Actual) (Forecast) (Forecast) (Actual) (Actual) (Forecast) (Forecast)
Slide 45: Statements of income
Additional information Statements of income Previous year Current year Comparison FY03/2011 FY03/2012 Percentage Amount Ratio Amount Ratio Change change Sales 10,738 100.0% 10,319 100.0% △418 △3.9% Real estate information services 10,407 96.9% 10,222 99.1% △185 △1.8% Real Estate Rents & Transactions
Slide 46: Quarterly consolidated statements of income
Additional information Quarterly consolidated statements of income Quarterly consolidated sales and operating profit and loss per segment FY03/2011 FY03/2012 FY03/2011 FY03/2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 2,899 2,613 2,584 2,640 2,357 2,462 2,486 3,012 Sales 2,899 2,613 2,
Slide 47: 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 Jan-12 Feb-12 Mar-12 Capital Region 74,463 61,021 43,733 36,376 44,535 44,499 1,819 3,918 3,462 year-on-year △11.5% △18.1% △28.3% △16.8%
Slide 48: 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 1,993 million yen Number of shares outstanding: 18,770,000 shares Consolidated number 523 (including contingent
Slide 49: Shareholder composition
Shareholder composition Point Decrease of 354 shareholders from March 31, 2012 to 3,380 shareholders Number of shareholders 3,380(As of March 31, 2012), Decrease of 354 from March 31, 2011 Major shareholders NEXT Co., Ltd. Directors Rakuten Inc. (NEXT Co., Ltd. is an equity method affiliate of Rakut
Slide 50: 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) Contact Fax +81-3-5783-3737 E-mail ir@next-group.jp Company website http://www.next-group.jp/ (Japanese) http://www.next-group.jp/en/index.html (English