Slide 1: Earnings Presentation [IFRS] First Quarter FY Ending March 2017
Designing Delightful Encounters NEXT Co., Ltd. (TSE 1st Section 2120) Earnings Presentation [IFRS] First Quarter of the Fiscal Year Ending March 31, 2017 (April to June 2016) Disclaimer The opinions and projections, etc. contained herein represent the judgment of NEXT Co., Ltd. at the time this docu
Slide 2: › Segments and Main Services › Consolidated Results for FY2016/Q1 › FY2016 Forecasts
› Segments and Main Services Page 2 › Consolidated Results for FY2016/Q1 Page 3 › FY2016 Forecasts Page 10 › Business Strategies Page 12 › Appendix. Page 28 - Corporate Info Page 29 - Statements of Profit and Loss (Quarterly) Page 30 - Market Data Page 31 - Subsidiaries and Services Page 40 › IR Con
Slide 3: Segments and Main Services
Segments and Main Services Segments Main Services (subsidiary providing each service) Domestic Real Estate HOME’S Information Services HOME’S Kaigo (nursing care) (Lifull Senior) Domestic Services for AD MASTER (former Renter’s Net) (Renter’s) Realtors NabiSTAR Lifull Marketing Partners Co., Ltd. Ov
Slide 4: Consolidated Results for FY2016/Q1
Consolidated Results for FY2016/Q1 Copyright(c) NEXT Co., Ltd. All Rights Reserved. 3
Slide 5: Condensed Statements of Profit and Loss
Condensed Statements of Profit and Loss IFRS Significant growth in revenue by 25.5%, EBITDA by 9.9%, and net profit* by 7.6% YoY. FY2015/Q1 FY2016/Q1 Change Unit: JPY mil Change Main items (Apr.-Jun.) (Apr.-Jun.) % Increased due to increase in Domestic Real Estate Information Revenue 5,457 6,846 +1,
Slide 6: Expense-to-Sales Ratio
Expanse-to-Sales Ratio IFRS Cost of sales and other SG&A-to-sales and personnel expenses-to-sales increased due the consolidation of Lifull MP. 24.1% -0.3p 23.8% 5.3p 29.1% Cost of sales and other SG&A 28.9% -1p 27.9% -3.2p 24.7% Advertising expenses -1p 25.0% +0.9p 26.0% 25.9% Personnel expenses 21
Slide 7: Sales by Segment
Sales by Segment IFRS Revenue from Domestic Services for Realtors achieved three-digit growth due to the consolidation of Lifull MP. Overseas declined by the currency exchange impact. FY2015/Q1 FY2016/Q1 Change Unit: JPY mil Change Main items (Apr.-Jun.) (Apr.-Jun.) % Revenue 5,457 6,846 +1,389 +25.
Slide 8: Segment Income and Loss
Segment Income and Loss IFRS Domestic Real Estate Information Services, the core business, achieved a significant growth. FY2015/Q1 FY2016/Q1 Change Unit: JPY mil Change Main items (Apr.-Jun.) (Apr.-Jun.) % Segment Income and loss 1,065 1,177 +112 10.5% Domestic Real Estate Increased by sales effort
Slide 9: Condensed Statements of Financial Position and Goodwill
Condensed Statements of Financial Position and Goodwill IFRS Decrease in assets due to change in foreign currency exchange rate. As of As of unit: JPY mil Change Main items Mar. 31, 2016 Jun. 30, 2016 Increase in cash and deposits +118 Assets 25,265 23,892 -1,373 Decrease in accounts receivable -480
Slide 10: Condensed Statements of Cash Flows
Condensed Statements of Cash Flows IFRS Cash and cash equivalents increased by JPY 100 million to JPY 6.7 billion. Main items FY2015/Q1 FY2016/Q1 unit: JPY mil (Apr.-Jun.) (Apr.-Jun.) Change FY2015/Q1 FY2016/Q1 Items (Apr.-Jun.) (Apr.-Jun.) Income before income taxes 1,050 1,205 Depreciation and amo
Slide 11: FY2016 Forecasts and Progress
FY2016 Forecasts and Progress IFRS Statements of Profit and Loss Sales by Segment [Full-year forecast] [Actual] [Full-year forecast] [Actual] Progress Unit: JPY mil Progress Unit: JPY mil FY2016/Q1 FY2016 % FY2016/Q1 % (Apr.-Jun.) FY2016 (Apr.-Jun.) Revenue 31,653 6,846 21.6% Revenue 31,653 6,846 21
Slide 12: FY2016 Forecasts One-time expenses
FY2016 Forecasts One-time expenses Due to an increase in one-time expenses, etc., EBITDA will increase by 19.4% YoY to JPY 5,803 million. Excluding this special factors, EBITDA will increase by 34.9% YoY. Unit: JPY mil 6,559 One-time expenses 1. Headquarter relocation cost 5,803 2. Provision for bon
Slide 13: Business Strategies
Business Strategies Copyright(c) NEXT Co., Ltd. All Rights Reserved. 12
Slide 14: Transform the Real Estate Industry
Transform the Real Estate Industry 13
Slide 15: Mid-to-long Term Strategy
Mid-to-long Term Strategy Global Platform Market Expansion - Global property DB Market Vitalization - Real estate investment platform Transform the Real Estate - Use development Industry - Make online property transaction available - Cover all the property information and increase transparency - Pro
Slide 16: Keys to Transform the Real Estate Industry
Keys to Transform the Real Estate Industry Information Information Improve Coverage Visualization Efficiency 15
Slide 17: Steady growth in Number of Properties Listed
Number of Properties Listed Rentals and 800 Number of Properties Real Estate Sales 800 Listed by Peers 19,000 7.51mil (rentals and real estate sales) Steady properties 17,000 As of June 2016 600 growth 15,000 600 13,000 400 400 11,000 New Houses 9,000 and Condos 200 6,904 buildings 200 7,000 5,000 0
Slide 18: Network of Affiliated Stores: 40,000 stores target
Network of Affiliated Stores The network of affiliated stores is expanding. Target 40,000 40,000stores Record high 20,310 stores 15,761stores 2011/3 2015/6 2016/6 17
Slide 19: Branch Expansion in Local Cities
Branch Expansion in Local Cities The fifth branch, Sapporo, opened in June 2016. NEW Sapporo branch Enhance sales capabilities by branch Fukuoka expansion branch Tokyo headquarter Nagoya branch Osaka branch 18
Slide 20: Keys to Transform the Real Estate Industry
Keys to Transform the Real Estate Industry Information Information Improve Coverage Visualization Efficiency 19
Slide 21: HOME'S PRICE MAP
Visualize Reference Prices and Rents Reference prices of 1.5 million units of 160,000 condos in the metropolitan area is available. HOME’S PRICE MAP The service will become available in Kinki-area in September 2016 HOME’S PRICE MAP 20
Slide 22: Visualize the Results of Home Inspection: Fair Value
Visualize the Results of Home Inspection Provide the fair price of properties which determined based on the building values. Aim to establish a market where people can trade properties with true satisfaction. Building Land evaluation performance evaluation Fair Value 21
Slide 23: Image of HOME'S inspection initiatives
Visualize the Results of Home Inspection - Image of HOME’S initiatives Real estate companies External inspector network Inspector matching system - Matching - Survey report generating system - Post the information whether the inspection is conducted or not - Insurance on defect 22
Slide 24: Keys to Transform the Real Estate Industry
Keys to Transform the Real Estate Industry Information Information Improve Coverage Visualization Efficiency 23
Slide 25: HOME'S Omni-channel Strategy
HOME’S Omni-channel Strategy Provide support from various aspects as a concierge to let people find their best home. On-line Ask a concierge Phone about home anytime and anywhere Face-to- face counter 24
Slide 26: HOME'S Counter
HOME’S Counter - I want to have a lovely custom-built home - Casual consultation available for free - I need to get an objective advise from - HOME’S Counter directly introduces someone customers to realtors or construction companies for renovation - What is the budget required to relocate? Visit Us
Slide 27: Domestic Services for Realtors – DMP NabiSTAR
Domestic Services for Realtors – DMP “NabiSTAR” DMP specialized for real estate company No. of Companies Using NabiSTAR HOME’S data Real estate company Customer data (No. of visits and info requests) Audience data from each company’s website NabiSTAR Personalize the activities Ad Website content Ema
Slide 28: Designing Delightful Encounters
Designing Delightful Encounters 27
Slide 29: Appendix
Copyright(c) NEXT Co., Ltd. All Rights Reserved. 28
Slide 30: Corporate Info
Corporate Info Company Name NEXT Co., Ltd. (TSE 1st section: 2120) Representative Takashi Inoue, President and CEO March 12, 1997 Established (Fiscal year ending March 31) History October 31, 2006 Listed in Tokyo Stock Exchange, Mother’s Section March 12, 2010 Listed on TSE 1st Section Capital 3,999
Slide 31: Condensed Statements of Profit and Loss (Quarterly)
Condensed Statements of Profit and Loss (Quarterly) <J-GAAP> < IFRS > Quarterly consolidated statements of income and loss FY2013 FY2014 FY2015 FY2016 Unit : JPY mil 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Revenue 3,398 3,454 3,556 4,281 3,852 3,897 4,318 6,096 5,457 6,441 6,280 7,527 6,846 Domestic
Slide 32: External Market Data (Monthly)
External Market Data (Monthly) Number of Apartments for sales Source : Real Estate Economic Institute Co., Ltd. 2013 2014 2015 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 56
Slide 33: Domestic Real Estate Information Services: HOME'S
Domestic Real Estate Information Services HOME’S, a real estate and housing information listing site http://www.homes.co.jp/ “HOME‘S” is the No.1 real estate and housing information listing site in Japan. Besides the quantity of information, HOME’S established screening team to improve information a
Slide 34: Services for Real Estate Industry
Services for Real Estate Industry CRM services for realtors Website creation service “Annex” A business support service provided by NEXT subsidiary Renters for Annex is a "next-generation homepage service" that allows rental property realtors The service provides CRM, batch conversion of even users
Slide 35: Lifull Marketing Partners: Integration of the sales divisions
Lifull Marketing Partners (former AXELION) Online Integration of the sales divisions Website creation advertising planning Sales Access assistance analysis Marketing tool new condo team preparation HOME’s new condominium team will be temporarily transferred to Lifull MP to strengthen the sales divis
Slide 36: Lifull Marketing Partners: Strengthened the New Condominium Business
Lifull Marketing Partners (former AXELION) Strengthened the New Condominium Business Seamlessly assists the process from project launch to property handover as a partner Developers Studying Acquiring Choosing Obtaining building Running advertising sites sites agents confirmation NEXT ‘ｓ serviceLiful
Slide 37: Trovit
Trovit One of the world’s largest aggregator sites, Trovit http://www.trovit.co.uk/ • Offers real estate/housing, used car and job ad information. • Entered three countries this year, and now it offers services in 46 countries. Image of aggregation site Portal site A (HOME'S, etc.) Portal site B Por
Slide 38: Trovit Revenue Source
Trovit Revenue Source Four revenue sources (1) Premium ad spaces Charge clients to be ranked high in the search engine (2) Google AdSense Major revenue sources at markets Trovit is available for free (3) Ad Page Create ad page (pay service) (free service will just transfer customers to partners’ web
Slide 39: Countries of Operation
Countries of Operation Available in 46 countries 38
Slide 40: Other Businesses
Other Businesses Insurance agency search and appointment website Furniture / interior EC website “MONEYMO” “HOME’S Style Market” HOME’S Move HOME’S Strage Room Other “Lifull” services 39
Slide 41: List of NEXT Subsidiaries (1)
List of NEXT Subsidiaries (1) in chronological order with effective dates of establishment) - Planning and sales of “Renter’s Net”, CRM service for realtors - Consultation service Renter’s - Planning and operation of “Lifull Thailand”, a website Lifull (THAILAND) Co., Ltd. providing real estate and
Slide 42: List of NEXT Subsidiaries (2)
List of NEXT Subsidiaries (2) in chronological order with effective dates of establishment) - Operation of “Lifull LiveMatch”, a website to search for an Lifull LiveMatch accompany to enjoy music live, festival or concert together - Internet and marketing businesses for realtors and property-related
Slide 43: List of NEXT Subsidiaries (3)
List of NEXT Subsidiaries (3) in chronological order with effective dates of establishment) Lifull Bizas - Admin and other back office operation outsourcee - Call center operation outsourcee Total 13 subsidiaries 42
Slide 44: IR Information
IR Information IR Official account on Twitter Official Facebook page https://twitter.com/Next_2120_IR http://www.facebook.com/next.group.jp Contact us Guide to IR News NEXT Co., Ltd. IR Support Desk We provide monthly performance data and timely disclosure data Tel: +81-3-5783-3603 (Monday to Friday