Slide 1: Earnings Presentation IFRS, First Quarter FY ending September 2017
LIFULL Co., Ltd. Earnings Presentation IFRS First Quarter of the Fiscal Year Ending September 30, 2017 (April to June 2017) 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 regar
Slide 2: Change in Accounting Period
Change in Accounting Period <Details> Change in accounting period from the current March 31 to September 30 fiscal year. This fiscal year will be April 1, 2017 to September 30, 2017 (six months). The next fiscal year will be October 1, 2017 to September 30, 2018. <Reason for change> Due to the
Slide 3: Change of Accounting Period Schedule
Change of Accounting Period <Schedule> Fiscal Year Ending Sept. 30, 2017 Fiscal Year Ending Sept. 30, 2018 (Apr. to Sept. 2017) (Oct. 2017 to Sept. 2018) Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Early Aug. Early Nov. Early Feb. Early May Early Aug. Q1
Slide 4: Consolidated Results for FY17/9 Q1
Consolidated Results for FY17/9 Q1 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3
Slide 5: New Segments and Major Services
New Segments and Major Services Segments Main services HOME’S Services LIFULL HOME’S Business AD Master (former Renter’s Net) (Renter’s Co.) NabiSTAR LIFULL Marketing Partners Co., Ltd. Overseas Business Trovit (Trovit Search, S.L.) LIFULL Rumah (PT. LIFULL MEDIA INDONESIA) LIFULL Australia LIFULL I
Slide 6: Record high for Q1 revenue
Revenue (JPY bn) 8.0 7.7bn 7.0 6.8bn 6.0 Record high for 5 consecutive 5.0 periods 4.0 3.0 2.0 1.0 0.0 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2017/9 * Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 *Segments have changed Q1 Q1 from the fiscal year ending September 30, 2017. J-GAAP IFRS 5
Slide 7: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Revenue grew by 13.8%; EBITDA fell 67.1% due to increases in advertising expenses and other costs. FY17/3 FY17/9 Change Unit: JPY mil Q1 Q1 Change Main items % (Apr.-Jun.) (Apr.-Jun.) Revenue increase in all the segments including HOME’S Services Business
Slide 8: Expense-to-Sales Ratio IFRS
Expense-to-Sales Ratio IFRS While EBITDA grew worse due to various factors, including strategic investment in advertising expenses accompanying the change in company name and brand and one-time costs associated with the relocation, it was in line with plans from the start of the year. 24.1% -0.3p 23
Slide 9: Sales by Segment IFRS
Sales by Segment IFRS Steady growth in all segments. FY17/3 FY17/9 Q1 Q1 Change Unit: JPY mil Change Main items % (Apr.-Jun.) (Apr.-Jun.) Revenue 6,846 7,793 +947 +13.8% Incrased steadily due to increase in the media value and expasion of clients HOME'S Services Business 5,616 6,472 +855 +15.2% netw
Slide 10: Segment Income and Loss IFRS
Segment Income and Loss IFRS Income in the HOME’S Services Business fell due to rising advertising expenses. Income from Overseas Business increased thanks to sales recovery. FY17/3 FY17/9 Q1 Q1 Change Unit: JPY mil Change Main items % (Apr.-Jun.) (Apr.-Jun.) Segment income and loss 1,177 278 -899 -
Slide 11: Condensed Statements of Financial Position and Goodwill IFRS
Condensed Statements of Financial Position and Goodwill IFRS As of As of Unit: JPY mil Change Main items Mar 31, 2017 Jun 30, 2017 Decrease in cash and deposits -1,033 Assets 27,110 25,469 -1,640 Decrease in accounts receivable-trade Decrease in advance payments -715 -211 Due to decrease in relocati
Slide 12: Condensed Statements of Cash Flows IFRS
Condensed Statements of Cash Flows IFRS Cash and cash equivalents decreased by JPY 1.0 billion to JPY 5.0 billion. FY17/3 FY17/9 Main items Q1 Q1 Unit: JPY mil Change FY17/3 FY17/9 (Apr.-Jun.) (Apr.-Jun.) Items Q1 Q1 (Apr.-Jun.) (Apr.-Jun.) Income before income taxes 1205 208 Depreciation and amorti
Slide 13: FY2017/9 Forecast and Progress IFRS
FY2017/9 Forecast and Progress IFRS Statements of Income and Loss Sales by Segment [Full-year [Actual] [Full-year [Actual] forecast] Progress forecast] Progress Unit: JPY mil FY17/9 FY17/9 Unit: JPY mil FY17/9 FY17/9 % % Q1 Q1 Revenue 15,973 7,793 48.8% Revenue 15,973 7,793 48.8% Cost of sales 1,620
Slide 14: (ref.) Forecast IFRS
(ref.) Forecast IFRS FY2017/9 (Apr. – Sep., 2017) (irregular period) (ref.) Oct. – Mar. (6 months) YoY (ref.) Apr. – Mar. (12 months) YoY 16/4-16/9 FY17/9 Change Progress 16/10-17/3 17/10-18/3 FY17/3 FY18/3 Change Change Unit: JPY mil [Actual] [Full-year [Actual] [Forecast] [Actual] [Full-year %% %
Slide 15: Business Strategies
Business Strategies Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 14
Slide 16: New Key Performance Indicators
New Key Performance Indicators <Definition> Number of clients: The total paid clients of LIFULL HOME’S, Renters, and LIFULL Marketing Partners ARPA: Average Revenue Per Agent. HOME’S Services Business revenue / number of clients Expand the business by increasing the no. of clients and ARPA 15
Slide 17: No. of Clients and ARPA
No. of Clients and ARPA While ARPA remained same level as last year, number of clients grew steadily by increase the media value and sales capabilities. (Yen) 30,000 No. of Clients ARPA 100,000 28,401 25,000 102,376 25,803 26,458 80,000 24,089 20,000 23,554 76,340 79,636 60,000 79,636 76,075 15,000
Slide 18: Network of Affiliated Offices
(ref.) Network of Affiliated Offices Steady progress toward the target figure of 40,000 offices. (offices) 25,000 24,415 offices 20,000 20,006 offices Record high 15,000 10,000 5,000 0 2011 2016 2017 Mar. June June 17
Slide 19: Becoming the unquestioned No.1 in Japan
Top priority Becoming the unquestioned No.1 in Japan 18
Slide 20: Continue building on two strengths
Again this year Continue building on two strengths Strengthen Strengthen media power brand power 19
Slide 21: Number of Total Information Listed
Number of Total Information Listed (mil) 9.00 7.81mil 8.00 7.00 7.53mil Steady growth 6.00 5.00 4.00 3.00 2.00 1.00 *Total information: properties for rental, real estate sales, investment, and new houses and condos. 0.00 Custom-build home and renovation are 2015 2016 2017 number of construction com
Slide 22: Number of Properties Listed
(ref.) Number of Properties Listed Rentals and Real Estate Sales New Houses and Condos (mil) 7.79mil (building) 8,992 8.0 buildings 7.51mil 8,000 6.0 6,904 6,000 buildings 4.0 4,000 2.0 2,000 0.0 Co. Co. Co. 0 2008 2016 2017 2010 2016 2017 A B C Apr. June June Apr. June June 21
Slide 23: LIFULL HOME'S House Appraisal
Resolving Uncertainties Confronting Buyers of Existing Homes by “LIFULL HOME’S House Appraisal” Release of info on property value inspections has begun Aug. 1, 2017 Displaying building Displaying price appraisals inspection results for use with and detailed information defect insurance Undertaken ba
Slide 24: Real Estate Price Visualization Using Big Data and AI
“Real Estate Price Visualization” by Utilizing Big Data and AI Launch of real estate price visualization Simulate property market prices based on proprietary forecast algorithms developed with LIFULL HOME’S big data and AI. 見える！不動産価値 https://www.homes.co.jp/owner/ 23
Slide 25: Home Mortgage Calculator
Calculate Home Mortgage Instantly with “Home Mortgage Calculator” Enter basic info Home Mortgage Calculator Link API with MOGE SCORE to display available home mortgage loans and interest rate. Users are able to search the best property from the result page by one- Calculate available loan click amou
Slide 26: Omni-channel Strategy
Omni-channel Strategy Provide optimal information Utilize customers’ DB by multiple channels (under development) ID: xxx ID: xxx ID: xxx Mr. A Mr. A Mr. A Abundant of information ID: xxx Mr. A DB Optimal information for customers Provide optimal info from all contact points 25
Slide 27: LIFULL HOME'S Sumainomadoguchi (Counter)
Omni-channel – LIFULL HOME’S Sumainomadoguchi (LIFULL HOME’S Counter) Omiya Marui Office (opened June 9) Shin-Koshigaya Satellite Office* Opened 11 offices Kashiwa Marui Office (opened July 7) Strengthening each office’s Shinjuku Offices Hanzomon Ginza Office* ability to attract customers Office* It
Slide 28: Enhancing Services for Realtors
Services for Realtors Enhancing services thoroughly for realtors Enhancing to further strengthen services for realtors media power Increasing numbers of affiliated offices and properties listed Strengthening media power 27
Slide 29: LIFULL Service List
LIFULL Service List Now providing a wide range of services for both users and realtors Mortgage estimates Being Under development/in Not provided planning undertaken Call Center Counter Services Started to provide since FY ending Sept. 2017 The LIFULL HOME’S app House Appraisal Smart New house/condo
Slide 30: List of LIFULL Services for Real Estate Brokers
List of LIFULL Services – For Real Estate Brokers Providing a full range of services on a one-stop basis Mortgage estimates Being Under development/in Not provided planning undertaken Call Center Counter * Starting in FY2018/Q1 Services Started to provide since FY ended March 2017 The LIFULL HOME’S
Slide 31: Services for Realtors – Absorption of Renter's
Services for Realtors – Absorption of Renter’s With the absorption of Renter’s Co. effective October 1, 2017, LIFULL is to increase business efficiency still further by concentrating the management resources of both companies. Providing various services to match the business conditions confronting r
Slide 32: Becoming the most trusted company
Becoming the most trusted company for both users and real estate brokers 31
Slide 33: Beginning Summer Promotion
Beginning Summer Promotion The popular TV commercial, “Rock-climbing” version started to be aired again on Aug. 1 in major cities (Kanto, Kansai, Chukyo, Fukuoka, Hokkaido) https://box.homes.co.jp/cm/ouchi/ New Web Movies Transportation Ad 交通広告 Started to distribute two new Continuing transportation
Slide 34: LIFULL HOME'S Beach House
LIFULL HOME’S Beach House The Beach House opened for a limited time at Kamakura’s Yuigahama Beach will help strengthen LIFULL HOME’s brand recognition. LIFULL HOME’S Beach House Opened in July 33
Slide 35: Resolving issues related to vacant homes
Resolving issues related to vacant homes by stimulating the market for existing homes 34
Slide 36: LIFULL HOME'S Akiya Bank
Efforts to Stimulate the Market for Existing Homes (1) LIFULL HOME’S Akiya Bank A model program for building and operating a nationwide Akiya (vacant properties and homes) Bank as proposed by the Ministry of Land, Infrastructure, Transport and Tourism. Acceptance of participation by local government
Slide 37: Establishment of Rakuten LIFULL STAY
Efforts to Stimulate the Market for Existing Homes (2) Establishment of Rakuten LIFULL STAY (Approx. 90 million users) × (Network of affiliated offices) 51% 49% RAKUTEN LIFULL STAY PTE.LTD Wholly-owned subsidiary Rakuten LIFULL STAY Co., Ltd. Growing market share rapidly in partnership with Rakuten
Slide 38: Rakuten LIFULL STAY
Efforts to Stimulate the Market for Existing Homes (2) Rakuten LIFULL STAY Bulk registration Rakuten LIFULL STAY Bulk listing Search for and make reservations Rakuten LIFULL STAY platform Travelers Search for (Domestic, and make inbound travelers) Partner travel sites reservations Vacation rental si
Slide 39: Investment-type Cloud Funding
Efforts to Stimulate the Market for Existing Homes (3) Investment-type Cloud Funding Accelerating the crowdfunding business with the January 2017 purchase of stock in JG MARKETING Revenue Dormant assets Property use generation development Remodeling Renovation Interior design Attracting customers Lo
Slide 40: Overseas Business
Overseas Business rq LJ LIFULL 39
Slide 41: Countries in Which We Operate
Countries in Which We Operate Trovit model Austria Poland Belgium Portugal Czech Republic Romania Russia Denmark Spain France Sweden Canada Germany Switzerland Mexico Hungary UK Australia US Ireland Ukraine Hong Kong India Argentina Italy Brazil Luxembourg Indonesia Japan
Slide 42: LIFULL Australia
LIFULL Australia No. of Inquiries Increase steadily Plan to start monetizing during this year Approx. 3x Dec. Jan. Feb. Mar. Apr. May June 2017 41
Slide 43: LIFULL Immofinder (Germany)
LIFULL Immofinder (Germany) No. of Properties Listed Encouraging start 3.5x Launched on Mar. 29 2017 Apr. May June 42
Slide 44: Trovit Monthly Traffic
Trovit Monthly Traffic Steady recovery Seasonality Seasonality Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June 2016 2017 43
Slide 45: Mid-term Business Plan
Mid-term Business Plan (bn JPY) JPY50.0bn 50.0 Revenue 45.0 40.0 Toward 35.0 50.0 bn yen level 30.0 revenue by 2020 25.0 20.0 15.0 10.0 5.0 0.0 1997 2001 2006 2011 2016 Mar. Mar. Mar. Mar. Mar. J-GAAP IFRS 44
Slide 46: Make every LIFE FULL.
m7 |, LIFULL Make every LIFE FULL. rq L CIFULL
Slide 47: Appendix
Appendix. Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 46
Slide 48: Change in Company Name
Change in Company Name Make every LIFE FULL NEXT Co., Ltd. will change its name to “LIFULL Co., Ltd.” on April 1, 2017 “LIFULL” combines the words “LIFE” and “FULL” and expresses our determination to provide services that lead to more fulfilling lives and lifestyles. 47
Slide 49: Corporate Info
Corporate Info (as of June 30, 2017) 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 118,7
Slide 50: External Market Data
External Market Data Number of Apartments for sales Source : Real Estate Economic Institute Co., Ltd. 2015 2016 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 (Jan-Dec) (Jan-Dec) Capital Region 40,449 35,772 1,978 3,002 3,050 3,317 1,966 3,42
Slide 51: Consolidated Statements of Profit and Loss (quarterly)
Consolidated Statements of Profit and Loss (quarterly) FY2016/03 FY2017/03 FY2017/09 Unit : JPY mil 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Revenue 5,457 6,441 6,280 7,527 6,846 6,910 7,107 9,056 7,793 HOME'S Services Business 4,280 5,210 5,167 6,263 5,616 5,782 5,955 7,663 6,472 Overseas Business 904 940 796 86
Slide 52: LIFULL HOME'S real estate and housing information site
LIFULL HOME’S LIFULL HOME’S, a real estate and housing information listing site http://www.homes.co.jp/ “LIFULL HOME‘S” is the No.1 real estate and housing information listing site in Japan. *Sankei Medix (2017.1.26) Besides the quantity of information, LIFULL HOME’S established screening team to im
Slide 53: LIFULL Group Services
LIFULL Group Services Website used to find nursing care homes Insurance agency search and Furniture / interior EC website “LIFULL Hikkoshi or elderly housing appointment website “LIFULL Interior” (moving)” “LIFULL Kaigo “LIFULL Hoken Sodan Operated by LIFULL MOVE (nurse care)” (insurance consultatio
Slide 54: LIFULL Group Companies (1)
LIFULL Group Companies (1) (in chronological order by effective date of establishment) Renter’s Planning and sales of AD MASTER, a CRM service for realtors Consultation service PT. LIFULL MEDIS INDONESIA Planning and operation of LIFULL Rumah, a website Real estate and housing information in
Slide 55: LIFULL Group Companies (1)
LIFULL Group Companies (1) (in chronological order by effective date of establishment) LIFULL Move HOME’S Hikkoshi (moving), a website offering quotes from various moving companies on request and for making on-line reservations LIFULL SPACE HOME’S Trunk room (luggage storage), a website offering
Slide 56: IR Information
IR Information Contact us Guide to IR News LIFULL Co., Ltd IR Support Desk We provide timely disclosure data in good time! TEL +81-3-6774-1603 Please send a blank e-mail to the following e-mail address. (Monday to Friday 10:00AM-6:00PM) FAX +81-3-6774-1737 Blank e-mail: touroku@LIFULL.com E-mail ir@