Lifull Co.ltd. · TSE:2120

Lifull Co.ltd — Q2 FY2024/9 Earnings Presentation

52 slides from Lifull Co.ltd's earnings presentation, May 2024

  1. Slide 1: Second Quarter Results FY 2024/9 Q2

    LIFULL Co., Ltd. Second Quarter Results IFRS FY 2024/9 Q2 (October 2023 – March 2024) 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 var

  2. Slide 2: Index

    1. FY 2024/9 Q2 Earnings Overview 2 2. Earnings Digest 3 3. Revisions to the Earnings Forecast 8 4. Creating a Stronger Business Overseas 11 5. HOME'S Services Segment 18 Index 6. Other Topics in Our Japanese Services 24 7. FY 2024/9 Second Quarter Financial Results 27 8. Appendices 33 9. Sustainabi

  3. Slide 3: FY 2024/9 Q2 Earnings Overview

    FY 2024/9 Q2 Earnings Overview LIFULL HOME'S progressing according to plan Profit of ¥0.91 bil. from the sale of LIFULL SPACE Downward revisions to forecast due to gap in actual results Overseas 2

  4. Slide 4: Earnings Digest

    Earnings Digest Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3

  5. Slide 5: FY 2024/9 Q2 Consolidated Summary Revenue

    FY 2024/9 Q2 Consolidated Summary Revenue Increase of ¥0.3 bil. after removing one-off gains in the previous fiscal year (JPY Bil.) 19.1 Consolidated Revenue (Oct. – Mar.) Revenue from sale +0.3 17.3 of investments by the Regional Revitalization Fund Results YoY ¥ 17.3 bil. -9.4% Increased Revenue i

  6. Slide 6: FY 2024/9 Q2 Consolidated Summary Operating Profit

    FY 2024/9 Q2 Consolidated Summary Operating Profit Despite one-off costs in the previous and current fiscal years, profit has decreased YoY due to growth investments and partial delays in achievement of business plans. (JPY Bil.) Sale of Rakuten Increase LIFULL Decrease 1.71 STAY Sale of Regional 0.

  7. Slide 7: HOME'S Services Results for FY 2024/9 Q2

    HOME'S Services Results for FY 2024/9 Q2 Currently making smooth progress towards targets Revenue (JPY Bil.) Segment Profit (JPY Bil.) 11.9 +1.2% 12.1 1.3 -17.8% 1.0 FY 2023/9 FY 2024/9 FY 2023/9 FY 2024/9 Q2 Q2 Q2 Q2 6

  8. Slide 8: Overseas Results for FY 2024/9 Q2

    Overseas Results for FY 2024/9 Q2 Increased revenue due to new consolidations, but revenue is expected to fall short of full-year forecasts. One-off costs for the transition to the new management team have also reduced segment profit. Revenue (JPY Bil.) Segment Profit (JPY Bil.) 3.8 +5.1% 4.0 -0.2 -

  9. Slide 9: Revisions to the Earnings Forecast

    Revisions to the Earnings Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 8

  10. Slide 10: Overseas Business Gaps to the Forecast

    Overseas Business Gaps to the Forecast Revenues for aggregation and tech-enabled agency services have fallen behind original forecasts. As a result, we have revised our full-year forecast for portions of the Overseas segment (LIFULL CONNECT.) Comparison of Forecast to Current Results (Oct. – Mar.) R

  11. Slide 11: Revisions to the FY 2024/9 Full-Year Forecast

    Revisions to the FY 2024/9 Full-Year Forecast We have revised our full-year forecast in light of partial delays in achievement of business plans and one- time increases in expenses related to changes in the management structure of our Overseas Businesses. No revisions have been made to revenue or ex

  12. Slide 12: Creating a Stronger Business Overseas

    Creating a Stronger Business Overseas Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 11

  13. Slide 13: Overseas Strategy (Moving to Direct)

    Overseas Strategy (Moving to Direct) No Change We provide different services tailored to the characteristics of each market and are continuing to make progress with solutions that have higher earning potential directly from the market to accelerate growth. Maturity of Online Marketplaces Solutions S

  14. Slide 14: Real Estate Portals Update & Initiatives

    Real Estate Portals Update & Initiatives Steady growth in Annual Recurring Revenue primarily due to improved ARPA Annual Recurring Revenue (ARR) Initiatives Moving Forward FY 2022/9 FY 2023/9 FY 2024/9 Continued Efforts to Goal of +17% Grow our Client Network & Increase ARPA Improving Our Services •

  15. Slide 15: Tech-Enabled Agency Update & Initiatives

    Tech-Enabled Agency Update & Initiatives The number of completed transactions experienced a temporary decline. However, due to current expansion of the agent headcount and improved training, bookings have reached an all-time high with good momentum moving forward. Update Initiatives Bookings & Booki

  16. Slide 16: Aggregation Sites Update & Initiatives

    Aggregation Sites Update & Initiatives The decline in revenue primarily due to the reduction in organic traffic. As a result, we are continuing to take steps to stimulate traffic growth while also seeing improvements in the average cost per click. Status of Elements of Revenue Initiatives for the Re

  17. Slide 17: Overseas Working Environment Fostering More Engagement

    Overseas Working Environment Fostering More Engagement We are implementing measures that have been successful in other parts of our businesses to further raise employee engagement and accelerate future growth. GOOD PLACE TO Example Initiatives WORK PROJECT More effective Goal of the Project working

  18. Slide 18: Rebuilding Process for the Overseas Business

    Rebuilding Process for the Overseas Business After transitioning to a new management structure in December 2023, we have begun re-planning and initiating changes for future growth. • Increased communication between Japan and Growth overseas subsidiaries Action • Identifying issues and discussing sol

  19. Slide 19: HOME'S Services Segment

    HOME'S Services Segment Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 18

  20. Slide 20: LIFULL HOME'S Worldview

    SUPER HYPER LIFULL HOME'S Worldview ASSISTANT DISCOVERY INQUIRY Inquiries more likely to CONVERSION convert are the value CONSIDERATION VIEWING we provide to our clients More Inquiries Better Conversion Rates • Better UX & UI • Promotion • SEO • More clients and Sumai No Madoguchi Utilization of AI

  21. Slide 21: Increasing Inquiries with Even Better UI & UX

    Increasing Inquiries with Even Better UI & UX We are continuously pushing the limits of the LIFULL HOME'S site and app with new technology for more personalization and an even better UI to drive growth in total inquiries. Improved matching with the Searches with AI More Effective Machine recommended

  22. Slide 22: Investments in Promotion and Traffic Acquisition

    Investments in Promotion and Traffic Acquisition We have focused our advertising on TV commercials and online advertising to increase traffic during the peak moving season in Japan resulting in a decline in segment profit, but also an increase in direct searches. Advertising Expenses ■ TV Commercial

  23. Slide 23: Improving the Quality of Our Leads

    Improving the Quality of Our Leads Through our services for users and real estate professionals, we are providing leads that are more likely to convert into transactions for our clients. Accuracy of Automatic De-Listing of Patented Technology Listings Unavailable Properties Press Release (Feb. 2024)

  24. Slide 24: Growth of Investment Property Site Kenbiya

    Growth of Investment Property Site Kenbiya We are seeing growth in the numbers of clients, listings and users of Kenbiya and are well on our way to becoming the leading website for investment properties in Japan Listings (As of March 31) 59,194 45,723 +29.5% Japanese Investment Property Site More pr

  25. Slide 25: Other Topics in our Japanese Services

    Other Topics in our Japanese Services Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 24

  26. Slide 26: Initiatives at Finding Solutions to Social Issues in Japan

    Initiatives at Finding Solutions to Social Issues in Japan New Subsidiary* LIFULL Agri Loop Founded (Jan. 2024) *Wholly-owned subsidiary of LIFULL Co., Ltd. Residential Support Site for Providing an Option on Victims of the Noto LIFULL HOME'S to Promote Peninsula Earthquake Making Agriculture More C

  27. Slide 27: New Layer of Leadership Created by Newly Nominated CEO

    New Layer of Leadership Created by Newly Nominated CEO We have appointed a Chief Legal Officer (CLO) and other leaders to further empower our management team to drive further growth after the nomination of our new CEO. CLO Operational Leaders (Chief Legal Officer) Goals and Aims HIRASHIMA Arisa Join

  28. Slide 28: FY 2024/9 Second Quarter Financial Results

    FY 2024/9 Second Quarter Financial Results (October 1, 2023 – March 31, 2024) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 27

  29. Slide 29: Condensed Statements of Income and Loss IFRS

    Condensed Statements of Income and Loss IFRS Increase of ¥0.3 bil. in revenue after removing one-off revenue from the sale of investments by the Regional Revitalization Fund in the previous FY. Profit down YoY due to lower performance in parts of the Overseas segment despite ¥0.91 bil. boost from th

  30. Slide 30: Revenue / Income and Loss by Segment IFRS

    Revenue / Income and Loss by Segment IFRS HOME'S Services: Segment revenue and profit in-line with forecasts Overseas: Increased revenue from new acquisitions, but decrease in profit due to one-off costs Other: Drop in revenue and profit due to one-off sales in the prev. FY FY2023 Q2 FY2024 Q2 Chang

  31. Slide 31: Condensed Statement of Financial Position and Goodwill IFRS

    Condensed Statement of Financial Position and Goodwill IFRS As of As of Change Change % Main items Unit: JPY mil. Sep 30, 2023 Mar 31, 2024 Current assets 23,064 22,544 -519 -2.3% Cash -1,362 Refer to "Condensed Statement of Cash Flows" Accounts Receivable - Trade +130 Short-Term Loans Receivable +2

  32. Slide 32: Condensed Statement of Cash Flow IFRS

    Condensed Statement of Cash Flow IFRS After making payments on loans, cash and cash equivalents were reduced by ¥1.3 bil. to a total of ¥15.1 bil. FY2023 Q2 FY2024 Q2 Change Main items Unit: JPY mil. (Oct.-Mar.) (Oct.-Mar.) Items FY2023 Q2 FY2024 Q2 Profit for the period before tax +1,564 +813 Depre

  33. Slide 33: FY 2024/9 Forecast & Progress IFRS

    FY 2024/9 Forecast & Progress IFRS See Pages 8 – 10 for details on revisions to the forecast for the Overseas segment. Condensed Statements of Income and Loss Revenue by Service FY2024 FY2024 Q2 FY2024 FY2024 Q2 Oct.-Sep. Oct.-Mar. Progress Oct.-Sep. Oct.-Mar. Progress [Full-Year [Full-year Unit: JP

  34. Slide 34: Appendices

    Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 33

  35. Slide 35: Corporate Information (as of March 31, 2024)

    Corporate Information (as of March 31, 2024) Company LIFULL Co., Ltd. Stock code 2120 (TSE Prime) Representative INOUE Takashi, President and CEO History Mar. 12, 1997 Established Oct. 2006 Listed in TSE, Mother's Section Mar. 2010 Listed on TSE 1st Section INOUE Takashi ITO Yuji Apr. 2022 Transitio

  36. Slide 36: 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. • Co

  37. Slide 37: Primary Group Companies

    Primary Group Companies (Listed according to date of founding / acquisition) • Operation of one of the largest search engines for nursing homes and senior housing in Japan, LIFULL Nursing Care LIFULL senior Co., Ltd. • Operation of the search site "Minna no ihinseri" for companies which organize the

  38. Slide 38: Segments and Primary Services

    Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) NabiSTAR HOME'S Services Kenbiya (Kenbiya Co., Ltd.) Offshore Development (LIFULL Tech Vietnam, LIFULL Tech Malaysia) 1 LIFULL CONNECT S.L.U. Aggregation Services: Trovit, Mitula, Nestoria, Nuroa Real

  39. Slide 39: Annual Revenue and Timeline of Company Growth

    Annual Revenue and Timeline of Company Growth Acquisition of MItula (Unit: JPY Billion) COVID-19 Pandemic 40 Changed fiscal year (Forecast) (irregular 6-month period) Changed company name to LIFULL Co., Ltd. 35.5 35 Acquisition of LIFULL MP 30 Acquisition of LITTEL 25 (Merged in 2011) Acquisition of

  40. Slide 40: Consolidated Statements of Profit and Loss Quarterly

    Consolidated Statements of Profit and Loss Quarterly FY2021 FY2022 FY2023 FY2024 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue 8,271 9,581 9,072 8,931 8,510 9,530 8,645 9,044 7,583 11,585 8,825 8,410 8,190 9,169 HOME'S Services 6,346 7,260 6,550 6,535 6,139 7,085 6,263 6,579 5,497

  41. Slide 41: Expense-to-Revenue Ratio IFRS

    Expense-to-Revenue Ratio IFRS The total profit margin has been affected by the lower profitability of the Overseas segment as well as a temporary increase in advertising costs for the domestic businesses. We are currently focusing on revitalizing our Overseas businesses. See Pages 11 - 17 for more d

  42. Slide 42: LIFULL HOME'S Key Performance Indicators Client Network and ARPA

    LIFULL HOME'S Key Performance Indicators Client Network and ARPA Increased sales initiatives and satisfaction with our services have driven growth in the client numbers. The client network declined in the prev. FY due to removal of professional networks with primarily small-scale, non-active clients

  43. Slide 43: (Ref.) Data on the Japanese Real Estate Market

    (Ref.) Data on the Japanese Real Estate Market Internal Migrants Rental Transactions (Japanese Nationals Only) (Greater Tokyo & Kinki Regions) 45,000 1,000,000 900,000 40,000 800,000 35,000 700,000 600,000 30,000 500,000 25,000 400,000 300,000 20,000 200,000 15,000 Oct. Nov. Dec. Jan. Feb. Mar. Apr.

  44. Slide 44: Quarterly Results LIFULL CONNECT Revenue

    Quarterly Results LIFULL CONNECT Revenue Decrease in revenue for aggregation and DX-Enabled Agency businesses. (See details on Page 9) Consolidation of Results from LIFULL CONNECT1 in EUR FazWaz & Lamudi Unit: 1,000 EUR 17,040 15,457 Sale of Fashiola2 13,240 13,183 12,465 10,183 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  45. Slide 45: Overseas Segment Results Segment Profit and Loss (Quarterly Trend)

    Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Loss in the Overseas segment due to delays in achievement of full-year forecasts and one-off costs. Quarterly Segment P&L ■ LIFULL CONNECT ■ Depreciation ■ M&A ■ Other Unit: JPY mil. Consolidation of FazWaz・Lamudi Transition to New M

  46. Slide 46: Other Businesses Segment Sales Revenue (Quarterly)

    Other Businesses Segment Sales Revenue (Quarterly) Quarterly Revenue Unit: JPY mil. 2,704 One-off earnings from sale of investments ■ LIFULL senior ■ Regional Revitalization ■ Other by Regional Revitalization Fund Absorption of Sale of LIFULL MOVE1 LIFULL SPACE2 into HOME'S Services 956 622 643 569

  47. Slide 47: Other Businesses Segment Profit and Loss (Quarterly)

    Other Businesses Segment Profit and Loss (Quarterly) In line with our position of selective focus and largely on-track toward current budget. Quarterly Segment Profit and Loss Unit: JPY mil. ■ LIFULL senior, LIFULL SPACE, LIFULL MOVE1 ■ Other One-off profits from the Regional Revitalization Fund Inc

  48. Slide 48: (Ref.) External Market Data Monthly

    (Ref.) External Market Data Monthly Annual 2022 2023 2024 2021 2022 2023 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 33,636 29,569 26,886 2,768 2,866 5,757 710 1,821 2,439 1

  49. Slide 49: (Ref.) 2023 Housing and Land Survey Interim Results

    (Ref.) 2023 Housing and Land Survey Interim Results (Statistics Bureau of Japan) The Statistics Bureau of Japan released the interim results of the Housing and on April 30, 2024 (the official results will be released at the end of September.) The number of dwellings has continued to increase by 2.61

  50. Slide 50: Sustainability Initiatives

    Sustainability Initiatives Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 49

  51. Slide 51: Sustainability Initiatives of the LIFULL Group

    Sustainability Initiatives of the LIFULL Group Mar. 2024 Launched Updates to our Investor Information Site Now including more details on our Sustainability Initiatives Stakeholder Engagement Human Capital Strategy Materiality https://ir.lifull.com/en sustainability/ 50

  52. Slide 52: IR Team Contact Information

    IR Team Contact Information IR Site Japanese English https://ir.LIFULL.com/ https://ir.LIFULL.com/en/ TEL +81-3-6774-1603 E-mail ir@LIFULL.com (Weekdays 10:00 - 18:00 JST) LIFULL Sustainability Data (IR Site) Other Information about LIFULL (Prev. Twitter) Facebook Page LIFULL Sustainability Search U

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