Slide 1: Earnings Presentation IFRS, Fiscal Year Ended September 30, 2018
LIFULL Co., Ltd. Earnings Presentation IFRS Fiscal Year Ended September 30, 2018 (October 2017 to September 2018) 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 regarding the a
Slide 2: Index
Index 1. Key Points P.02 2. Consolidated Results for FY2018/9 P.03 3. Progress of Business Forecast P.11 4. HOME’S Services Business P.21 5. Overseas Business P.29 6. Shareholder return P.39 7. Appendix P.42 8. IR Office Information P.67 1
Slide 3: Key Points
Key Points 1. FY2018/9 Revenue: JPY 34.5 billion, +7.6% YoY Achieved record high revenue for seven consecutive years EBITDA: JPY 5.3 billion, +37.8% YoY 2. Acceleration of Trovit growth: 2018 July-Sep. actual result was +17.8% YoY 3. Aim to further grow the business by working on initiatives to incr
Slide 4: Consolidated Results for FY2018/9
Consolidated Results for FY2018/9 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 7.6% YoY, EBITDA was up 37.8%, quarterly net profit grew sharply by 81.3%. Oct. 2016 - FY18/9 Change Unit: JPY mil Change Main items Sep. 2017 Oct.-Sep. % Revenue 32,111 34,564 +2,453 +7.6% Revenue increased across all segments. Cost of sal
Slide 6: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Despite an increase in the ratio of advertising expenses, the EBITDA margin improved thanks to lower ratios of cost of sales and other SG&A and personnel expenses +3.0p +2.7p -3.0p 24.8% 29.0% 32.0% 28.9% Cost of sales and other SG&A Advertising expenses 31.6% -5.2p 26.
Slide 7: Sales by Segment IFRS
Sales by Segment IFRS Continued increase in revenue in all segments Oct. 2016 - FY18/3 Change Unit: JPY mil Change Main items Sep. 2017 Oct.-Sep. % Revenue 32,111 34,564 +2,453 +7.6% Revenue increased following the successful initiatives to increase the number of HOME'S Services 26,906 28,602 +1,695
Slide 8: Segment Income and Loss IFRS
Segment Income and Loss IFRS HOME’S Services Business: Significant increase in profit due to the decrease in temporary expenses and by successfully controlling the expenses. Overseas Business: Significant increase in profit due to the cost decrease following the dissolution of the overseas business
Slide 9: Condensed Statements of Financial Position and Goodwill IFRS
Condensed Statements of Financial Position and Goodwill IFRS Increase in current assets following the revenue growth. Completed repayment of short-term borrowing at the end of July. As of As of Unit: JPY mil Change Change Main items Sep 30, 2017 Sep 30, 2018 Increase in cash and deposits +2,061 Incr
Slide 10: Condensed Statements of Cash Flows IFRS
Condensed Statements of Cash Flows IFRS Cash and cash equivalents increased by JPY2 billion to JPY 7.5 billion Oct. 2016 - FY18/9 Q4 Main items Unit: JPY mil Change Sep. 2017 Oct.-Sep. Items YoY FY18/9 Q4 Profit for the period before tax +2,521 +4,156 Depreciation and amortization +1,336 +1,091 Oper
Slide 11: Progress of Business Forecast for the FY2019/9 IFRS
Progress of Business Forecast for the FY2019/9 IFRS Condensed Statements of Income and Loss Revenue by Service FY18/9 FY18/9 Q4 FY18/9 FY18/9 Q4 Oct.-Sep. Oct.-Sep. Oct.-Sep. Oct.-Sep. Unit: JPY m il Progress Unit: JPY m il Progress [Full-year [Full-year [Actual] [Actual] forecast] forecast] Revenue
Slide 12: Growth Strategy
Growth Strategy Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 11
Slide 13: Company Slogan
Company Slogan “Becoming the best life-event database and solution company in the world.” 12
Slide 14: DB + Technology LIFULL DB
DB + Technology Integrating every kind of data, and creating new value through use of vanguard technology Life-event Data LIFULL DB Hobby Resid Car Insurance ential Interior Medical Reloc etc... ation Jobs Nursing Block etc... User ID Care IoT Chain Gift Deep Learning Fashion AI XR Robotics Data Min
Slide 15: LIFULL HOME'S Core Strategy
Mid-to-Long Term Global Platform Strategy Roadmap Expanding real-estate in the real estate field Stimulating markets real-estate Transforming markets the real-estate industry Covering the Akiya Bank Covering the Data- information and evaluations Building the global Vacation rental information of bas
Slide 16: Mid-Term Management Plan Quantitative Target
Mid-Term Management Plan Quantitative Target FY2020/9 Revenue JPY 50+ billion EBITDA ratio appx. 20% 15
Slide 17: Business Forecast for FY2019/9
Business Forecast for FY2019/9 Investment phase to achieve the mid-term business plan targets 50+ billion JPY FY2018/9 Full-Year Forecast Revenue JPY 39.0 billion EBITDA JPY 5.7 billion 390 345 299 257 182 * 159 147 108 107 103 120 89 74 （unit: JPY 100 million） 45 1997 1998 2000 2002 2004 2006 2008
Slide 18: Business Forecast for FY2019/9
Business Forecast for FY2019/9 Contribution of Mitula acquisition is not included in FY 2019/9 Forecast Statements of Profit and Loss Sales by Segment FY18/9 FY19/9 FY18/9 FY19/9 Oct.-Sep. Oct.-Sep. Cahnge Oct.-Sep. Oct.-Sep. Cahnge Unit: JPY m il Change Unit: JPY m il Change [Actual] [Full-year % [
Slide 19: Mitula Group Limited Acquisition Schedule
Mitula Group Limited Acquisition Schedule Significant delay in part of the process. To be disclosed as soon as figures being finalized. Schedule (tentative) * May 9 Jun 28 Oct 22 Nov - Dec Jan Contribution of Mitula acquisition Shareholders Mitula Group Limited Meeting of Court Hearing Share Acquisi
Slide 20: Business Forecast - by simply adding Mitula Group Limited actual results
(ref.) Business Forecast - by simply adding Mitula Group Limited actual results Revenue will increase by 23.8% YoY, EBITDA by 26.4% YoY Revenue EBITDA Total 427 37 Total 67 +23.6% 10 390 +26.4% 345 53 57 2018.9 2019.9 (forecast) 2018.9 2019.9 (forecast) Note 1: Calculated based on 1H and Q3 results
Slide 21: Roadmap to Achieve the Mid-term Plan 2020
Roadmap to Achieve the Mid-term Plan 2020 Achieve the mid-term target by making organic growth and by carrying out M&As. Over 500 (JPY 100 millions) 427 *2 Target of FY2020/9: +17.0% or more 345 +12.9% *3 Grow by more than *1 159 approximately 17.0% including M&As 2017/9 2018/9 2019/9 2020/9 *1 orga
Slide 22: HOME'S Services Business
HOME’S Services Business Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 21
Slide 23: Expansion of HOME'S Services Business - Key of the business growth
Expansion of HOME’S Services Business - Key of the business growth Aim to grow Home’s Services Business in FY2019/9 by working especially on initiatives to increase ARPA Increase in Increase number of customers ✕ ARPA *ARPA ：Revenue per customer (Average Revenue Per Agent) *number of customers: Numb
Slide 24: Comprehensive services to increase ARPA
Comprehensive services to increase ARPA Aim to increase ARPA by making comprehensive proposals covering both media and other services. media To increase ARPA Strengthen: ARPA Media capability others Operation support services Operation support services Products Sales capability Subsidiary services O
Slide 25: Enhancement of HOME'S Services Business - Organizational Structure
Enhancement of HOME’S Services Business - Organizational Structure Restructure the organization to accelerate the growth of HOME’S Services Business 1) For quicker decision making President & CEO Takashi Inoue doubles as Head of HOME’S Business Division to accelerate the speed of business execution
Slide 26: Multi-dimensional initiative to strengthen media capability
Multi-dimensional initiative to strengthen media capability campaign Aim to be absolutely the attract paying number one in the market by customers LIFULL HOME’S strengthening the media Strengthen optimization capability to maximize the attracting power value proposition SEO branding 25
Slide 27: LIFULL HOME'S Ability to Attract Customers
(ref.) LIFULL HOME’S Ability to Attract Customers Traffic has been increasing 2017 2018 Traffic is now back on track to grow Apr. May June July Aug. Sep. Oct. 26
Slide 28: Enhance Sales in Operation Support Services
Enhance Sales in Operation Support Services - change in organizational structure Consolidate Rental Media Division and Business Solution Division to provide end-to-end services and raise ARPA [ Realtor’s operational flow ] Daily Operation Procure Property Post Information Attract customers Deal with
Slide 29: KPI - the Client Network・ARPA
KPI - the Client Network・ARPA Number of customers started to grow gradually since shifting gear to focus more on initiatives to increase ARPA No. 顧客数 of Clients (円) (JPY) ARPA 120,000 112,492 29,000 105,824 26,492 27,042 27,411 27,388 100,000 27,000 26,040 26,728 87,329 89,692 83,326 83,620 83,074 8
Slide 30: Overseas Business
Overseas Business Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 29
Slide 31: Became LIFULL Group member in Nov. 2014
Became LIFULL Group member in Nov. 2014 30
Slide 32: Trovit growth - KPIs
Trovit growth - KPIs Size of the business increased dramatically compared to the time of acquisition. Right after the acquisition（Nov 2014） 47 million+ 39 600 120 million monthly Countries Paying Customers Listed information site users Today（Sep 2018） 90 million+ 57 811 200 million monthly Countries
Slide 33: Trovit growth - Revenue trend
Trovit growth - Revenue trend Revenue has kept increasing and grew by 29.3% since the acquisition *1 The growth further accelerated more recently and has achieved +17.8% YoY *2 +17.8% Growth has accelerated *1 Compared FY2014 and FY2018/9 *2 Trovit euro-based actual result 32
Slide 34: Under a process to acquire Mitula Group
Under a process to acquire Mitula Group 33
Slide 35: About Mitula - Revenue trend
About Mitula - Revenue trend Revenue has kept growing steadily Most recently, has grown significantly by 49.4% YoY +49.4% 3Q result 49.4% growth *calculated by LIFULL based on date disclosed by Mitula 34
Slide 36: Corporate History (includes plans)
Corporate History (includes plans) Top 3 Real Estate Aggregator Websites to become part of LIFULL Group Founded 1997 November 2014 Acquired by LIFULL Group Founded 2006 July 2015 Feb 2016 Listed on ASX Acquires Nuroa To be acquired by LIFULL Group (plan) Founded 2009 September 2016 May 2015 Acquires
Slide 37: Trovit × Mitula
Trovit × Mitula Accelerate the development of a global platform with Trovit and Mitula at its center Site Visitors Listings （Monthly UV） Global Footprint 90M -> 200m-> 57 -> 63countries over 170M over 400M 36
Slide 38: Trovit × Mitula - Trovit Growth Strategy
Trovit × Mitula - Trovit Growth Strategy Trovit and Mitula will be consolidated to share the strength with each other and increase the revenue 3)Transaction Expand revenue • Quality customer High by integration referral • Closing • Secondary Markets New （Peripheral areas） products 2) Advertisement •
Slide 39: (ref.) Overseas Competitor
(ref.) Overseas Competitor The overseas competitors in the world have high amount of market capitalization with user share in the background *Zoopla acquired Silver Lake Partners [Rightmove, UK] (US) in July 2018 for £ 2.2bn Revenue 32.2B.JPY Market Cap Market Cap [LIFULL, JP] EBITDA 23.8B.JPY 973 B
Slide 40: About Shareholder return
About Shareholder return Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 39
Slide 41: Partial change in the shareholder return policy
Partial change in the shareholder return policy To demonstrate the attitude of proactive shareholder return and to expand the customer base, raise the payout ratio target from the current 20% to 25% from FY2018/9. Basic policy is to distribute the fruits in a flexible manner based on the business re
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Slide 43: Appendix
Appendix rq LJ) CIFULL
Slide 44: Corporate Info (as of September 30, 2018)
Corporate Info (as of September 30, 2018) 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
Slide 45: 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) • LIFULL has an internal team specialized in improving information accuracy and
Slide 46: LIFULL Service List
LIFULL Service List LIFULL provides a wide range of user-friendly and realtor-friendly services Mortgage estimates Escrow Being Under development/in Not provided planning undertaken Online property For users Call Center Counter Viewing Online contact Started to provide since FY18/9 Q1 LIFULL HOME’S
Slide 47: Definition of No. of Clients and ARPA
(ref.) Definition of No. of Clients and ARPA Number of clients: Number of total paid clients of LIFULL HOME’S and LIFULL Marketing Partners (including the clients who use DMP and CRM) Definition ARPA: Average Revenue Per Agent, revenue per clients HOME’S Services Business revenue / number of clients
Slide 48: LIFULL Group Services
LIFULL Group Services LIFULL Kaigo LIFULL Hoken Sodan LIFULL Interior LIFULL Hikkoshi (nursing care) (insurance consultation) (moving) Website to search nursing care homes Insurance agency search and Furniture / interior EC website Website to make an inquiry or elderly housing appointment website “L
Slide 49: 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 50: 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 Business Trovit (Trovit Search, S.L.) LIFULL Tech Vietnam Co., Ltd. Others Business LIFULL Kaigo (nursing care) (LIFULL seni
Slide 51: Topics for 2018/9
Topics for 2018/9 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 50
Slide 52: KPI - Number of Total Information Listed
KPI -Number of Total Information Listed No. of Total Information Listed 総掲載情報量 Has been able to maintain the (mil) (万件) undisputed number of information while improving the 7.96mil 6.76mil accuracy of information 2015年 2015 2017年 2017 2018年 2018 4月 9月 9月 Apr. Sep. Sep *Total information: properties
Slide 53: Number of Properties Listed
Number of Properties Listed - Rentals, Real Estate Sales, New Houses and Condos Rentals and Real Estate Sales New Houses and Condos (mil) 8 (building) 13,257 buildings 7.93mil 14,000 6.73mil 12,000 6 9,732 buildings 10,000 8,000 4 6,000 4,000 2 2,000 0 0 2008 2017 2018 Co. Co. Co. 2010 2017 2018 Apr
Slide 54: Number of Affiliated Realtors
Number of Affiliated Realtors * Affiliated realtors’ network has been expanding steadily Mid to Long-Term Target 40,000 realtors *Number of real estate agents as part of the number of clients (realtors) on P22 Steady Growth 25,090 realtors 23,841 realtors 2011 2017 2018 Mar. Sep. Sep. 20XX 53
Slide 55: Media Capability Enhancement - visualization of price information
Media Capability Enhancement - visualization of price information Add “sell and rent” simulator to “Visible! Real Estate Value” (a website to calculate property value) Visualize profit and loss of “sell” and “rent” respectively using LIFULL’s internal data and enable property owners to make decision
Slide 56: Real Estate Tech (ReTech)
Real Estate Tech（ReTech） Provide support to both users and realtors by utilizing advanced technologies to enable the users to find their ideal home more easily and enjoyably ＜example: 3D model house *image＞ XR Robotics IoT Industrial innovation lead by ReTech BIG DATA Blockchain AI 3D Model House se
Slide 57: Promotion
Promotion Air TV commercial linked with the campaign to strengthen LIFULL HOME’S brand power JPY10,000 cash back campaign Unprecedented dream rental campaign Projection mapping designed by Ms. Becky or Mr. Kukki will be aired at the house of the campaign winner. A projector with which part of the pr
Slide 58: Investment to penetrate LIFULL brand - promotion
Investment to penetrate LIFULL brand - promotion Started to air new TV commercial to raise awareness on LIFULL https://media.lifull.com/ 57
Slide 59: Investment to utilize advanced technologies
58 Investment to utilize advanced technologies Make investment to utilize AI, big data, block-chain and other advanced technologies. Established AI Strategy Office Established a consortium Has participated Seven & i Data Lab directly reporting to the CEO to share real estate information to utilize b
Slide 60: Condensed Statements of Profit and Loss (quarterly)
(ref.) Condensed Statements of Profit and Loss (quarterly) IFRS HOME’S Services Business: Initiatives to increase ARPA on the way to accelerate the business growth Overseas Business: Increase in revenue backed by Trovit growth. Significant increase in profit due to the decrease in cost following the
Slide 61: Others Data
Others Data Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 60
Slide 62: 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 2Q 3Q 4Q Revenue 5,457 6,441 6,280 7,527 6,846 6,910 7,107 9,056 7,793 8,154 8,128 9,541 8,345 8,549 HOME'S Services Business 4,280 5,210 5,167 6,263 5,616 5
Slide 63: Overseas Business Actual Results - Revenue (by quarter)
Overseas Business Actual Results - Revenue (by quarter) Overseas Business has been growing lead especially by Trovit 1,058 984 Others Unit: JPY million 936 910 868 884 847 751 751 2Q 3Q 4Q 2017/1Q 2Q 2018/1Q 2Q 3Q 4Q FY2017/3 FY2017/9 FY2018/9 62
Slide 64: Overseas Business Actual Results - Operating Profit (by quarter)
Overseas Business Actual Results - Operating Profit (by quarter) Overseas Business has been growing lead especially by Trovit Unit: JPY million 334 294 ３00 267 260 Others 204 200 216 204 200 125 １00 ０ PPA －100 -54 International - 105 Business Division - 118 ２00 - 136 - 126 - 134 - 134 - 144 Mitula A
Slide 65: Others Business Actual Results - Revenue
Others Business Actual Results - Revenue The Business has been growing lead especially by the four spin-off subsidiaries 543 <Revenue by quarter> 単位：億 528 526 Unit: JPY million 502 480 New businesses 462 excluding the “LIFULL senior” transferred to Others Business four businesses Establishment of th
Slide 66: Others Business Actual Results - Operating Income (quarterly)
Others Business Actual Results - Operating Income (quarterly) Existing business increased steadily. Other business is investment stage, but plan to further grow further 117 <Operating Income by quarter> Unit: JPY million 100 61 62 49 50 51 47 30 25 22 20 10 Existing businesses * 0 -19 -13 -19 -30 -3
Slide 67: External Market Data
External Market Data 2015 2016 2017 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-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 40,449 35,772 35,898 2,903 2,701 7,007 1,384 2,310 3,408 2,741 2,603 2,2
Slide 68: 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