Lifull Co.ltd. · TSE:2120
Lifull Co.ltd — NEXT — Q1 FY2016/03 Earnings Presentation
65 slides from Lifull Co.ltd's earnings presentation, Aug 12, 2015
Slide 1: Earnings Presentation
Designing Delightful Encounters NEXT Co., Ltd. (TSE Section 1 2120) Earnings Presentation First Quarter of the year ended March 31, 2016 (April to June 2015) The opinions and projections, etc. contained herein represent the judgment of the Company at the time this document was prepared. We provide n
Slide 2: Index
Index › Today’s Key Points Page 3 › Highlights for Financial Results for 1Q of the Year Page 4 Ending March 31, 2016 › Business Strategy Page 5-16 › Financial Results for 1Q of the Year Ending March 31, Page 17-23 2016 › Topics Page 24-35 › Revision of Full-Year Performance Forecast due to Page 36-4
Slide 3: Today's Key Points
Today’s Key Points Posted increased sales and profits for Q1 of the year ending March 31, 2016 Consolidated sales revenue up 41.7% year on year EBITDA up 56.6% and net profit up 59.8% year on year, respectively Rolled out new service offerings one after another as those aimed at turning NEXT into an
Slide 4: Highlights for Financial Results for 1Q of the Year Ending March 31, 2016
Highlights for Financial Results for 1Q of the Year Ending March 31, 2016 Revenue EBITDA *1 Net profit *2 (millions of ＋41.7％ (millions of ＋56.6％ (millions of ＋59.8％ yen) yen) yen) ＋41.7％ 694 5,457 ＋56.6％ 1,267 ＋59.8％ ＋13.4％ 3,852 808 3,398 434 Note: FY03/2014 was Note: FY03/2014 was not compared as
Slide 5: Business strategy
Business strategy Copyright(c) NEXT Co., Ltd. All Rights Reserved. 5
Slide 6: The Current State of the Japanese Real Estate Market
The Current State of the Japanese Real Estate Market The Japanese real estate market is faced with a load of problems Vacant homes on the increase No property database Prices lacking transparency Precision of information unreliable Important contractual matters must be explained in person. Informati
Slide 7: We aim to change the real estate industry
We aim to change the real estate industry Building a platform 7
Slide 8: Basic Strategy for Real Estate Sector
Basic Strategy for Real Estate Sector Provide a wide range of solutions for both users and companies. Being provided Under development/in planning Not undertaken Services HOME’S app Smart Viewing condo tours for New house/ HOME’S Crystal Clear Property Price Map comparison app condo assurance Check-
Slide 9: Run advertisements effectively
Run advertisements effectively Measure the effects independently on a periodic basis (4) Raise the consumer recall rate. Measure the ROI each time Continuous branding (3) Curb the forgetting rate. OOH, mini TV programs, Effective advertisement allocation Lapping bus, etc. (2)Increase the consume
Slide 10: Become the undisputed No. 1 in the industry
become the undisputed No. 1 in the industry 10
Slide 11: Building a global platform
Building a global platform 11
Slide 12: Overseas Growth Strategy: Trovit
Overseas Growth Strategy Have Trovit’s service areas expand further Planned expansion at a rate of 4 countries annually 12
Slide 13: Overseas Growth Strategy: HOME'S model
Overseas Growth Strategy Leverage the know-how accumulated in Japan for overseas operations Live the way you want Plans to expand HOME’S model to 2 new countries annually 13
Slide 14: Investment Outlook
Investment Outlook Prioritize the domestic real estate market and invest in long-term growth Existing services New services New markets Overseas Information real estate services information outside of real estate services 3rd priority 4th priority 1st priority 2nd priority Domestic Existing markets
Slide 15: Investment Outlook
Investment Outlook Prioritize the domestic real estate market and invest in long-term growth Existing services New services New markets Speed up PDCA cycles Speed up PDCA cycles • Planned expansion at a rate of four • Various services with Lifull brand countries annually →Fintech, Space, Move, F
Slide 16: 16
16
Slide 17: Financial Results for 1Q of the Year Ending March 31, 2016
Financial Results for 1Q of the Year Ending March 31, 2016 Copyright(c) NEXT Co., Ltd. All Rights Reserved. 17
Slide 18: Simplified Income Statement
Simplified Income Statement Financial Information for 1Q of the FY2016/03 Net sales up 41.7%, EBITDA up 56.6% and net profit up 59.8% year on year in a year of significant earnings growth [Quarter] [Quarter] Rate of Unit: Millions of yen FY2015/03 FY2016/03 Change (April-June) Change (April-June) Re
Slide 19: Sales Breakdown
Sales Breakdown Financial Information for 1Q of the FY2016/03 The ratios of advertising expenses, personnel expenses and other SGA expenses to sales declined, respectively. EBITDA to sales ratio grew 2.2 percentage points to 23.2% Quarter 24.1% 23.8% Costs and other SGA expenses 0.3pt. increase 28.9
Slide 20: Sales by Service
Sales by Service Financial Information for 1Q of the FY2016/03 Posted double-digit sales growth for all segments. Overseas Business grew markedly due to the consolidation of Trovit [Quarter] [Quarter] Rate of Unit: Millions of yen FY03/2014 FY03/2015 Change Change (Apr – Jun) (Apr – Jun) Revenue 3,8
Slide 21: Segment Income
Segment Income Financial Information for 1Q of the FY2016/03 Real Estate Information Services income up 16.1% year on year. Overseas Business income grew markedly due to the consolidation of Trovit [Quarter] [Quarter] Rate of Unit: Millions of yen FY03/2014 FY03/2015 Change Change (Apr – Jun) (Apr –
Slide 22: Balance Sheet and Goodwill Status
Balance Sheet and Goodwill Status Financial Information for 1Q of the FY2016/03 Eliminated goodwill amortization due to NEXT’s transition to IFRS standards Previous [Current quarter- Millions of yen end] Rate of year-end Change Major Factors Resulting in Changes March 31, 2015 June 30, 2015 Change A
Slide 23: Cash Flows
Cash Flows Financial Information for 1Q of the FY2016/03 Cash and cash equivalents for Q1 up 0.4 billion yen to 4.6 billion yen FY03/2015 FY03/2016 FY03/2015 FY03/2016 Millions of yen (Apr-Jun) Change Main items (Apr-Jun) (Apr-Jun) (Apr-Jun) Income before income taxes 721 1,050 Depreciation 87 214 I
Slide 24: Topics
Topics 24
Slide 25: Trends in the Total Number of Properties Listed on HOME'S
Trends in the Total Number of Properties Listed on HOME'S The total number of properties listed on HOME’S exceeded the 5 million mark The number of properties listed remaining at levels 6,0 00, 000 more than double that of competitors 12 ,000 11 ,000 5,0 00, 000 10 ,000 Comparison with major 4,0 00,
Slide 26: HOME'S Crystal Clear Property Price Map
HOME’S Crystal Clear Property Price Map (provisional service name) Scheduled to be rolled out in autumn 2015 Using the property data of HOME’S, Japan’s No. 1 site in the number of properties listed, to reveal property reference prices in a “crystal clear” manner!? Concept of the HOME’S Crystal Clear
Slide 27: HOME'S LIVE Web communication system
“HOME’S LIVE” Web communication system Plans call for initiating a social experiment in online explanation of important matters involved when concluding a real estate contract. Distinguishing features of “HOME’S LIVE” (1) Compatible with a broad range of devices, including PCs, smartphones, and tabl
Slide 28: HOME'S PRO Property Distribution
HOME’S PRO Property Distribution HOME’S PRO Property Distribution, a real estate information distribution service offering, was launched in July 2015 This service is designed to distribute and reflect information speedily for free* *Free of charge for HOME’S affiliated stores Originator real estate
Slide 29: Trovit Expanded into Three Countries in the Current Fiscal Year
Trovit Expanded into Three Countries in the Current Fiscal Year Launched Trovit Taiwan, expanding Trovit’s service areas to 46 countries Expanding service areas June 2015 launch Taiwan May 2015 launch Japan May 2015 launch Thailand 29
Slide 30: Established Four New Subsidiaries under the Lifull Brand
Established Four New Subsidiaries under the Lifull Brand Transferred the “HOME‘S Nursing Care,” "MONEYMO,” “HOME‘S Moving Estimates,” and “HOME‘S Storage Room,” businesses to the subsidiaries to achieve increased speed for the operations while accelerating the efforts to develop employees Lifull Sen
Slide 31: Rolled Out Two New Service Offerings under the Lifull Brand
Rolled Out Two New Service Offerings under the Lifull Brand A user-professional team matching site A live music concert accompanier search application Main functions Main functions › Allows the user to share online his/her play data and videos to › Allows the user to solicit live concert accompanier
Slide 32: Issue of new shares through third-party allotment and borrowing of funds
Issue of new shares through third-party allotment and borrowing of funds › Details ①楽天株式会社に対する第三者割当による新株式の発行 (1) Issue of new shares through third-party allotment to Rakuten, Inc. ・ Amount of funds raised 3,999,999,000 yen ・調達資金の額 3,999,999,000円 ・ Issue price 690 yen/share ・発行価額 1株につき690円 ・ Number o
Slide 33: For creating new value
For creating new value (100 million Rakuten site users x 5.2 million properties) Live the way you want x 33 33
Slide 34: Acquisition of AXELION Co., Ltd.
Acquisition of AXELION Co., Ltd. 34
Slide 35: Acquisition of AXELION Co., Ltd.
Acquisition of AXELION Co., Ltd. Enhancing the new condominium business domain Applying AXELION’s expertise to increase media value Developers Studying Acquiring Choosing Obtaining building Running advertising sites sites agents confirmation Live the way you want Advertising Budget Advice presentati
Slide 36: Revision to Full-Year Performance Forecast due to Conversion of AXELION into an Affiliate
Revision to Full-Year Performance Forecast due to Conversion of AXELION into an Affiliate 36
Slide 37: Revision to Full-Year Performance Forecast due to Conversion of AXELION into an Affiliate
Revision to Full-Year Performance Forecast due to Conversion of AXELION into an Affiliate Simplified Income Statement Sales by Service [Initial [Revised [Initial [Revised [Actual] Forecast] Percentage [Actual] Forecast] Percentage Forecast] Forecast] Millions of yen FY03/2015 FY03/2016 FY03/2016 cha
Slide 38: Change in SGA Expenses to Sales Ratio as a Result of Revision of Full-Year Performance Forecast
Change in SGA Expenses to Sales Ratio as a Result of Revision of Full-Year Performance Forecast The consolidation of AXELION led to higher cost of sales, resulting in a deterioration of the ratios of cost and other SGA expenses to sales Full Year EBITDA Personnel expenses Advertising expenses Costs
Slide 39: Revision to Dividend Forecast
Revision to Dividend Forecast With AXELION having been consolidated, the forecast dividend was revised to 4.71 yen per share Per-share dividend 5.00 yen 5.0 0 yen Payout ratio 4.71 yen 80 .0% 4.5 0 yen 70 .0% 4.0 0 yen 60 .0% 2.88 yen 3.5 0 yen 50 .0% 3.0 0 yen 2.5 0 yen 40 .0% 2.0 0 yen 30 .0% 1.5
Slide 40: Business Plan for Year Ending March 2016
Business Plan for Year Ending March 2016 Significant sales and profits growth in the year ending March 2016; dividends also projected to increase 63.5% 2015.3 Actual 2016.3 Forecast +43.9％ ¥26,142m ¥18,165m +63.5% +62.6％ +54.9% ¥5,189m ¥4.71 ¥3,191m ¥2,795m ¥2.88 ¥1,805m Revenue EBITDA Net profits
Slide 41: Medium- and Long-Term Growth Outlook
Medium- and Long-Term Growth Outlook Establish NEXT as No. 1 in market share for users of online relocation services and aim for EBITDA margin of 28%. 60.0% ～ 50.0% Revenue EBITDA EBITDA margin 26,142 (Operating profits before depreciation) 40.0% Unit：million of JP.Yen 18,165 28.0% 30.0% 14,690 11,9
Slide 42: Inquiries Regarding IR Data
Inquiries Regarding IR Data 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 (Mon
Slide 43: Reference
Reference 43
Slide 44: Corporate Data
Corporate Data Company Name NEXT Co., Ltd. (TSE 1st section: 2120) Representative Takashi Inoue, President and CEO March, 1997 Established (Fiscal year ending March 31) History October, 2006 Listed in Tokyo Stock Exchange, Mother’s Section March, 2010 March 12th, listed on TSE 1st Section Capital 3,
Slide 45: 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 46: Mission statement and management philosophy
Mission statement and management philosophy 46
Slide 47: Designing Delightful Encounters
Designing Delightful Encounters 47
Slide 48: History
History Structural reform is ushering in the second stage of growth. In the fiscal year Ending March 31, 2015, NEXT has been implementing strategic investment programs, including M&A activities The Company’s existing businesses posted record high sales and profit 26,142 million yen HOME’S service Ca
Slide 49: Sales by Service
Sales by Service Domestic Real estate information service business accounts for most of the sales, the profit by the main force Overseas Others 13.3％ ¥694million ¥3,222million 2.7％ ¥3,466million Insurance agency search and appointment website real estate/housing, used car and job ad aggregation site
Slide 50: Segment Changes (Revisit)
Segment Changes (Revisit) Disclosure segments for sales changed to match investment segments in business strategy Rental & Real Estate Overseas Business Other Business New Houses & Condominiums • Trovit • MONEYMO(Insurance shop • Overseas Lifull search/appointments) Custom-built Houses and (Thailand
Slide 51: Trend of Operating P/L (Quarterly)
Trend of Operating P/L (Quarterly) 【 J-GAAP】 【 IFRS 】 Quarterly consolidated statements of income FY2014/03 FY2015/03 FY2016/03 Unit : million yen 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 Domestic Real Estate Information 3,160 3,214 3,307 3,964 3,524 3
Slide 52: Dividend Forecast
Dividend Forecast Maintain payout ratio of 20%; dividend forecasted to increase 5.00円 ¥4.71 80 .0% 4.50円 70 .0% 4.00円 Dividend per share Payout ratio 60 .0% 3.50円 3.00円 ¥2.88 50 .0% 2.50円 ¥2.37 40 .0% 2.00円 30 .0% 1.50円 ¥1.08 ¥0.62 24.3% 20 .0% 1.00円 20.0% 20.0% 20.0% 10 .0% 0.50円 15.0% 0.00円 0.0 %
Slide 53: The situation of the overseas competitor
The situation of the overseas competitor Moving to achieve even higher peaks based on the goal of becoming a world-class company Unit : billion yen [NEXT,JP] [Rightmove,UK] Sales 26.1 [Zillow,US] Sales 32.3 EBITDA 5.1 Sales 40.4 Market cap Net profit 2.7 EBITDA 6.1 EBITDA 23.8 642.5 Net profit 18.6
Slide 54: Our business model
Our business model 54
Slide 55: Domestic Real estate information services: HOME'S
Domestic Real estate information services Real estate / housing information listing site 『HOME’S』 http://www.homes.co.jp/ “HOME‘S” is the No.1 real estate and housing information listing site in Japan, specialized for the Internet. Besides the quantity of information, we established screening team t
Slide 56: CCS DB Japan and overseas database
Action to provide the information that the user wants from enormous information The user can access via any device Optimal Needs information Communication & Analyze individual user preferences, CCS concierge service then select and provide the most Recommendation appropriate information Housing Fina
Slide 57: Pay-per-posting vs pay-per-inquiry billing models
Difference between the pay-per-posting-based and pay-per-inquiry-based billing structure models With the pay-per-inquiry-based billing structure model, advertising spending leads directly to growing sales Pay-per-inquiry-based billing structure Pay-per-posting-based billing model structure model Adv
Slide 58: Trends at Affiliated Stores
Trends at Affiliated Stores Numbers of affiliated stores increased dramatically Record High 17,000[Number of Affiliated Stores] 15,892 Stores 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 2011/03 2012/03 2013/03 2014/03 2015/06 58
Slide 59: 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 60: DMP service NabiSTAR
DMP service「NabiSTAR」 Launch industry-specific DMP* services targeting real estate agents. Optimize the effect of customers’ web ads, thereby helping them increase closing rates and sales. * DMP＝Data Management Platform Real Estate Solution (problem solving) Agent’s Data Data Integration Customer Da
Slide 61: Advertising Planning and Consulting: AXELION
Advertising Planning and Consulting Company profile › Company name : AXELION › Founded : October 2005 › Number of employees : 67 Website Online › Principal business activities: Advertising planning Creation Advertising planning ：Advertising agency service ：Consulting service ：Website planning, devel
Slide 62: Overseas business: Trovit
Overseas business 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.) Porta
Slide 63: NEXT Group service area from 4 to 46 countries
NEXT Group service area from 4 to 46 countries aggregator model Portal model Arab Emirates France Netherlands Spain Indonesia Argentina Germany New Zealand Sweden Japan Australia Hong Kong Nigeria Switzerland Taiwan Austria Hungary Pakistan Taiwan Thailand Belgium India Peru Thailand Brazil Indonesi
Slide 64: Other business
Other business 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 64
Slide 65: Established Two New Lifull Brand Subsidiaries
Established Two New Lifull Brand Subsidiaries Under the “Lifull” brand, NEXT will create service offerings that will fill (“Full”) people’s lifestyles and lives (“Life”) Lifull FaM Lifull TraveRing application that helps application that helps communication between couple communication between touri