Lifull Co.ltd. · TSE:2120
Lifull Co.ltd — NEXT — Q2 FY03/2014 Earnings Presentation
48 slides from Lifull Co.ltd's earnings presentation, Nov 13, 2013
Slide 1: NEXT Co., Ltd. Second Quarter Financial Statement FY March 2014
NEXT Co., Ltd. TSE 1st section 2120 Annual Report of Financial Statement Second Quarter of Year Ended March 31, 2014 (July 2013 to September 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 regar
Slide 2: Agenda
● A Review of our FY03/2014 Business Strategy pp. 2-4 2nd Quarter Financial Results ● pp. 5-13 for the Year Ending March 31, 2014 The Financial Results for the Six Months Ended September 30, 2013 as Compared with ● the Business Forecast for the First Half of FY 03/2014 pp.14-16 (released on August 7
Slide 3: A Review of our FY03/2014 Business Strategy
TSE 1st section 2120 A Review of our FY03/2014 Business Strategy
Slide 4: The Concept of DB+CCS
A Review of our FY03/2014 Business Strategy The concept of the NEXT Group‟s mid-term business operations Aim at becoming a global company through delivering DB+CCS (Database plus Point Communication and Concierge Service) Concept of “DB+CCS” Proposal befitting each customer and enabling decision-mak
Slide 5: NEXT Group Medium-Term Business Image
A Review of our FY03/2014 Business Strategy NEXT Group Medium-Term Business Image 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 outs
Slide 6: 2nd Quarter Financial Results for the Year Ending March 31, 2014
TSE 1st section 2120 2nd Quarter Financial Results for the Year Ending March 31, 2014 July 2013 to September 2013
Slide 7: Today's Key Points
2nd Quarter Financial Results for the Year Ending March 31, 2014 Recorded a year-on-year growth in sales and profit due to the strong performance of Today's Key Points the real estate information services business Sales : 3,454 million yen (up 25.0% from previous year) Operating profit : 550 million
Slide 8: Trend of major indicators
2nd Quarter Financial Results Trend of major indicators for the Year Ending March 31, 2014 ！ Trend of consolidated business performance Check Sales (million yen) Operating profit (million yen) Net profit (million yen) ＋25.0％ ＋30.9％ ＋35.8％ ＋12.2％ ＋63.3％ ＋166.5％ ！ Check “HOME‟S Rental & Real Estate Tr
Slide 9: Profit and Loss Statement (Simplified Version)
2nd Quarter Financial Results Profit and Loss Statement for the Year Ending March 31, 2014 (Simplified Version) Point Sales +25.0%, SG&A expenses +23.8%, operating profit +30.9% 【Accumulated 【Accumulated [Accumulated Total] [Accumulated Total] Percentage Percentage Change Total】 Total】 Unit: million
Slide 10: Ratio of costs to sales
2nd Quarter Financial Results Ratio of costs to sales for the Year Ending March 31, 2014 Increasing sales resulted in operating profit margin rising by 3.5 percentage points on a Point cumulative basis to 20.6% Quarter Full Year Cost and Other SG&A Expenses 2.1p 1.9p Improve ment Improve ment Advert
Slide 11: Trends in sales by service
2nd Quarter Financial Results Trends in sales by service for the Year Ending March 31, 2014 The core real estate information service business posted a robust 25.0% year-on-year Point sales growth Percentage 【Accumulated 【Accumulated [Accumulated Total] [Accumulated Total] Change Percentage change To
Slide 12: Trends in P/L by segment
2nd Quarter Financial Results Trends in P/L by segment for the Year Ending March 31, 2014 Point Operating loss in Other Businesses declined significantly year on year [Quarterly] [Quarterly] Percentage Change Unit: Million yen FY03/2013 FY03/2014 change (Year-on-year) (Jul - Sep) (Jul - Sep) (Year-o
Slide 13: Consolidated balance sheet and goodwill
2nd Quarter Financial Results Consolidated balance sheet and goodwill for the Year Ending March 31, 2014 Point Net assets per share grew 7.4% year on year while interest-bearing debt remained zero End of Previous [Current Quarter] Unit: Million yen Year Sep 30, 2013 Change Percent change Main reason
Slide 14: Cash flow
2nd Quarter Financial Results Cash flow for the Year Ending March 31, 2014 Point The balance of cash and cash equivalents stands at 7,600 million yen FY03/2013 FY03/2014 FY03/2013 FY03/2014 Unit: Million yen Change Main Items 2Q(Apr-Sep) 2Q(Apr-Sep) 2Q(Apr-Sep) 2Q(Apr-Sep) Pretax profit of the curre
Slide 15: Results Compared with the Business Forecast for the First Half
TSE 1st section 2120 The Financial Results for the Six Months Ended September 30, 2013 as Compared with the Business Forecast for the First Half of FY 03/2014 (released on August 7, 2013)
Slide 16: Six Months Results vs Business Forecast
The Financial Results for the Six Months Ended September 30, 2013 as Compared with the Business Forecast for the First Half of FY 03/2014 Sales exceeded the forecast by 3.8% with operating profit and net profit exceeding the forecasts by Point 53.5% and 58.0%, respectively [August 7 revised forecast
Slide 17: Sales by Service vs Business Forecast
The Financial Results for the Six Months Ended September 30, 2013 as Compared with the Business Forecast for the First Half of FY 03/2014 Sales for the core Rental & Real Estate Trade business exceeded the business forecast Point by 172 million yen, or 5.0% [August 7 revised forecast ] 1H FY 03/2014
Slide 18: Highlights of the Second Quarter Financial Results
NEXT Co., Ltd. TSE 1st section 2120 Highlights of the Second Quarter Financial Results for the Year Ending March 31, 2014
Slide 19: Key highlights: Real estate information service
Highlights of the Second Quarter Financial Results for Key highlights the Year Ending March 31, 2014 Ran TV commercials on a nationwide basis at the time of the 2013 World Athletics Championships in Moscow Continued with our in-train advertisement initiative in the Kanto and Kansai areas The “HOME‟S
Slide 20: Key highlights: Advertisement
Highlights of the Second Quarter Financial Results for the Year Ending March 31, 2014 Key highlights Implemented aggressive branding promotion initiatives in an effort to gain a higher profile Point in the market July August September TV commercial Demonstrated the appeal of the “HOME’S” website to
Slide 21: Key highlights: SEO results
Highlights of the Second Quarter Financial Results for the Year Ending March 31, 2014 Key highlights Achieved increased SEO effect by completing our new condominium and new house site Point renovation programs ！ Check Won number one rankings in terms of major new Ranked top on average in major key w
Slide 22: Key highlights: Delivery of new services
Highlights of the Second Quarter Financial Results for the Year Ending March 31, 2014 Key highlights Initiated the provision of services designed to help the website user reliably search for a Point place to live ！ ！ Check Check “ Initiated the delivery of the Launched “HOME‟S PRESS,” a new informat
Slide 23: Our FY03/2014 Third Quarter Initiatives
NEXT Co., Ltd. TSE 1st section 2120 Our FY03/2014 Third Quarter Initiatives
Slide 24: Our initiatives for the Third Quarter
Our initiatives for the Third Quarter of the Year Key highlights Ending March 31, 2014 The “HOME‟S” website in Japan Continue to invest aggressively in branding promotion investment Hold “HOME‟S EXPO” in four cities as an event designed for our clients Release “HOME‟s Heyakuru!,” an iPad application
Slide 25: Initiatives from First Quarter through Third Quarter
24 • Establishment of individual user member database • TV commercial onwards October • Provision of property owner work support tool CRM • Digital marketing service • Android application “Newly Listed Property Navi” • Room search iPad application “HOME'S Heyakuru! • “HOME'S Trunk Room” Key highligh
Slide 26: HOME'S EXPO and Heyakuru iPad application
Our initiatives for the Third Quarter of the Year Ending March 31, 2014 Highlights in Japan Held “HOME‟S EXPO” in four cities in Japan / Provided iPad application dedicated to Point rental room searching ！ ！ Check Check Launched the provision of “HOME‟S Heyakuru!,” Plan to hold “HOME‟S EXPO 2013” wi
Slide 27: HOME'S Renovation and HOME'S Trunk Room
Our initiatives for the Third Quarter of the Year Ending March 31, 2014 Highlights in Japan Point Launched new search sites “HOME‟S Renovation” and “HOME‟S Trunk Room” ！ ！ Check Check Launched new site “HOME‟S Renovation” Launched new site “HOME‟S Trunk Room” in October 2013 in October 2013 [NEXT’s
Slide 28: Next Generation Real Estate Website Annex and Property Owner CRM
Our initiatives for the Third Quarter of the Year Ending March 31, 2014 Highlights in Japan Provide assistance to real estate industry players through delivering the “Next Generation Point Real Estate Website Annex” and “Property Owner CRM” services ！ ！ Check Check “Next Generation Real Estate Websi
Slide 29: Overseas highlights: Thailand and Indonesia
Our initiatives for the Third Quarter of the Year Ending March 31, 2014 Overseas highlights Point Hold a Thai real estate investment seminar and strive to develop our website in Indonesia ！ ！ Check Check Hold an inaugural Thai real estate Strive to develop our website in Indonesia in an effort inves
Slide 30: Revision of Business Forecast for the Year ending March 31, 2014
NEXT Co., Ltd. TSE 1st section 2120 Revision of Business Forecast for the Year ending March 31,2014
Slide 31: Trend of Business Forecast of FY 03/2014
Trend of Business Forecast of FY 03/2014 Upward revision of the first half earnings forecast in August and upward revision of full-year Point earnings forecast in November Trend of Business Forecast for the First Half of FY 03/2014 Trend of Business Forecast of FY 03/2014 [May 14 [Aug. 7 revised Aug
Slide 32: Revised Forecast: Trend of Operating P/L
Revision of Business Forecast for the Year ending March 31,2014 Trend of Operating P/L Under the revised forecast, sales will likely exceed the previous estimate by 9.5%, with SG&A expenses and operating profit Point expected to exceed the previous estimates by 7.6% and by 27.8%, respectively. Unlik
Slide 33: Revised Forecast: Ratio of costs to sales
Revision of Business Forecast Ratio of costs to sales for the Year ending March 31,2014 Plan to reinvest part of the portion of sales proceeds in excess of the fiscal year start sales forecast, Point making investment towards achieving further growth in the coming years Full year Cost and Other SG&A
Slide 34: Revised Forecast: Trend of sales by service
Revision of Business Forecast Trend of sales by service for the Year ending March 31,2014 Point Sales in all service categories will likely exceed the fiscal year start forecast levels 【Previously [Reference] 【Revised forecast】 announced forecast】 FY03/2013 Unit: Million yen FY 03/2014 Change Percen
Slide 35: Mid/Long-term goals
Revision of Business Forecast The concept of our future business for the Year ending March 31,2014 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 pay
Slide 36: 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 37: Reference Materials
NEXT Co., Ltd. TSE 1st section 2120 Reference Materials ● Reference Materials President's Profile p.37 NEXT‟s service offerings p.38 “HOME‟S” Business Model pp.39-40 Additional information pp.41-45 Corporate profile p.46 IR Information Contact Details p.47 36
Slide 38: 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 39: 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 40: 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 ・Real estate information management (Real-estate Rents & comp
Slide 41: 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 42: 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 43: Summary of Statements of income and sales per segment
Additional information Summary of Statements of income Sales per segment Summary of Statements of income Sales per segment FY2014 FY2014 FY2013 FY2013 FY2014 Unit: million FY2013 FY2013 FY2014 Unit: Million yen 2H yen Segment 2H 1H 2H 1H 1H 2H 1H (Forecast) (Forecast) Rental & Real Estate Sales 5,50
Slide 44: Rental & Real Estate Trade P/L and Number of Properties
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: Quarterly consolidated statements of income
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 Sales 2,357 2,462 2,486 3,012 2,737 2,763 2,939 3,522 3,398 3,454 Real estate information 2,337 2,438 2,462 2,983 2,709 2,736 2,911 3,494
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 Capital Region 74,463 61,021 43,733 36,376 44,535 44,499 45,602 1,721
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: 18,805,000 shares (Number of the Treasury Shares: 12,106) Conso
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