Lifull Co.ltd. · TSE:2120

Lifull Co.ltd — Q3 FY2024/9 Earnings Presentation

45 slides from Lifull Co.ltd's earnings presentation, August 2024

Slide 1: Third Quarter Results
LIFULL Co., Ltd. Third Quarter Results IFRS FY 2024/9 Q3 (October 2023 – June 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 vario
Slide 2: Index
Index 1. FY 2024/9 Q3 Earnings Points 2 2. FY 2024/9 Q3 Consolidated Earnings Digest 3 3. Overview by Segment HOME'S Services 6 Overseas 11 Other Businesses 16 4. Our Stance on Capital Cost-Conscious Management 20 5. Financial Results 24 6. Sustainability Initiatives 42 7. IR Team Contact Informatio
Slide 3: FY 2024/9 Q3 Earnings Points
FY 2024/9 Q3 Earnings Points Progressing in-line with forecast Improved revenue growth in HOME'S Services 2
Slide 5: Consolidated Results Summary Revenue
Consolidated Results Summary Revenue Mostly in-line with current forecast ¥0.3 bil. increase in revenue to ¥25.8 bil. (after removing effects of one-off gains in previous FY) (JPY Bil.) Consolidated Revenue 27.9 (Oct. – Jun.) Revenue from sales of 2.5 ＋1.4% 25.8 investments by the Actual Result YoY
Slide 6: Consolidated Results Summary Operating Profit
Consolidated Results Summary Operating Profit Decreased profit primarily due to one-off gains from asset sales in the previous FY and one-off costs in the Overseas segment from the transition to the new management structure. Increase Decrease Total (JPY Bil.) Consolidated Sale of Operating Profit Ra
Slide 8: HOME'S Services Segment Results
HOME'S Services Segment Results Revenue and segment profit continue to progress in-line with forecasts with accelerated revenue growth in the third quarter. RESULTS INSIGHTS FY 2024/9 Q3 (Oct. - Jun.) Quarterly Revenue & FY 2024/9 Growth Rates FY 2023/9 (JPY Bil.) Revenue Profit ＋1.8% ＋5.4% ＋0.5% Re
Slide 9: LIFULL HOME'S Worldview
(Ref.) LIFULL HOME'S Worldview We are driving the value (transactions) we provide to clients to become a more efficient platform for finding a new home Original Our Goal Exposure Exposure Discovery Discovery Consideration POWER UP Consideration Inquiry Inquiry Personalizing user experiences Viewings
Slide 10: Update on our Growth Strategy: Investing in Development
Update on our Growth Strategy Investing in Development We remain committed to developing more advanced technology to support our clients' businesses while contributing to the digital transformation of the real estate industry. FY 2024/9 Growth Strategy Q3 Update Better user experience with Increased
Slide 11: Update on our Growth Strategy: Enhanced Sales Initiatives
Update on our Growth Strategy Enhanced Sales Initiatives We are stepping up our sales initiatives to drive further growth in the mid to long term. FY 2024/9 Growth Strategy Q3 Update Markets with Strong Synergies Appraisal Clients +8% (YoY as of June 30) Re-Sale Client Network Expanding Our Requests
Slide 13: Overseas Segment Results
Overseas Segment Results Revenue growth in tech-enabled agency and real estate portals despite declining traffic to aggregation sites. Profit declined due to strategic growth investments and transition-related costs in the first half of the year. RESULTS INSIGHTS Revenue FY 2024/9 Q3 (Oct. - Jun.) (
Slide 14: Growth Strategy: Moving to Direct
(Ref.) Growth Strategy Moving to Direct Service Characteristics Our Services Funnel for (Selection) Moving House Information Price Customers Aggregation Low Portals Search Light (Several Yen) (Several / Country) Real Estate FOCUS Closer to Actual Mid Transactions Compare Portals Rich (Several Profes
Slide 15: Initial Results from Re-Planning
Initial Results from Re-Planning We are already seeing partial improvement in some key business indicators, but over all recovery in actual results remains slower. We will continue to monitor the situation and make adjustments moving forward. Examples of Improvement in the Third Quarter Ref. Previou
Slide 16: Mid to Long-Term Overseas Strategy
Mid to Long-Term Overseas Strategy We are advancing our short-term plans while strategizing the long-term direction of the business. Evaluating options to determine the optimal path for the business 15
Slide 18: Other Businesses Segment Results
Other Businesses Segment Results Removing the effects of one-off gains1 in the previous fiscal year, revenue was nearly flat YoY (-¥0.07 bil.) with a ¥0.11 bil. improvement in segment profit YoY. INSIGHTS RESULTS FY 2024/9 Q3 (Oct. - Jun.) Services & Subsidiaries included in Other Businesses Revenue
Slide 19: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) Regional Revitalization revenue has declined as we continue to focus our resources on growth in our core businesses. Results for the third quarter were flat overall. Sales of investments Quarterly Revenue (Unit: JPY mil.) 2,704 by the Regional Revit
Slide 20: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) Advertising investments continue in LIFULL senior with improvement in losses due to selective focus on core businesses. Quarterly Revenue (Unit: JPY mil.) ■ LIFULL senior ■Regional Revitalization Sales of investments Sale of ■Others by the Regiona
Slide 22: Our Management Philosophy
Our Management Philosophy We manage our businesses based on our philosophy of Will-Centric Public Interest Capitalism1 and have set profit before distribution to our stakeholders (Company / Shachu) as our primary target. Business Management by Will-Centric Public Interest Capitalism 1 Will-Centric P
Slide 23: Capital Cost-Conscious Management
Capital Cost-Conscious Management Our goal is to achieve both growth in our businesses as well as increased profitability through appropriate capital allocation and monitoring. Capital Allocation Monitoring Mid-Term Management Plans KPI Management Redefinition of our Structures Real-Time Overviews i
Slide 24: Actions Taken to Improve Capital Efficiency
Actions Taken to Improve Capital Efficiency Over the last several years, we have been restructuring our organization and optimizing our portfolio to enhance profits and overall profitability as part of our initiatives toward capital cost-conscious management. Improving Capital Efficiency through Res
Slide 26: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Revenue +¥0.3 bil. YoY after removing effects of one-off gains in previous FY. One-off costs for transition to new overseas management structure incurred during H1 and losses from equity method affiliates affected profit for the quarter. FY2023 Q3 FY2024
Slide 27: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS Revenue and profit for HOME'S Services in-line with projections (see Page 7. ) Overseas mostly in-line with revised forecast (see Page 12.) Lower revenue for Other Businesses due to one-off gains in prev. FY. FY2023 Q3 FY2024 Q3 Change Change Main items Unit
Slide 28: Condensed Statement of Financial Position and Goodwill IFRS
Condensed Statement of Financial Position and Goodwill IFRS Goodwill increased to ¥1.4 bil. due to currency fluctuations. Decrease in shares of affiliates due to losses in equity method affiliate, Hash DasH Holdings. As of As of Change Change % Main items Unit: JPY mil. Sep 30, 2023 Jun 30, 2024 Cur
Slide 29: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS Cash and cash equivalent decreased by ¥1.1 bil. to ¥15.3 bil. due to repayment of loans. FY2023 Q3 FY2024 Q3 Change Main items Unit: JPY mil. (Oct.-Jun.) (Oct.-Jun.) Items FY2023 Q3 FY2024 Q3 Profit for the period before tax +2,161 +924 Depreciation and amortiza
Slide 30: FY 2024/9 Forecast & Progress IFRS
FY 2024/9 Forecast & Progress IFRS There was an unexpected equity method investment loss for Hash DasH Holdings (see Page 25). All other areas of the business in-line with forecast (revised FY 2024/9 Q2) Condensed Statements of Income and Loss Revenue by Service FY2024 FY2024 Q3 FY2024 FY2024 Q3 Oct
Slide 32: Corporate Information (as of June 30, 2024)
Corporate Information (as of June 30, 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 Transition
Slide 33: 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
Slide 34: 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
Slide 35: 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
Slide 36: 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
Slide 37: 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 Q3 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 8,479 HOME'S Services 6,346 7,260 6,550 6,535 6,139 7,085 6,263 6,
Slide 38: LIFULL HOME'S Key Performance Indicators Client Network and ARPA
LIFULL HOME'S Key Performance Indicators Client Network and ARPA Despite a drop in the number of clients in the previous fiscal year as we ended contracts with professional organizations, our client network and ARPA have returned to FY 2022/9 levels. 9-Month Average 9-Month Average Client Network AR
Slide 39: 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.
Slide 40: 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 Apr-24 May-24 Jun-24 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 33,636 29,569 26,886 2,768 2,866 5,
Slide 41: 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
Slide 42: Quarterly Results LIFULL CONNECT Revenue
Quarterly Results LIFULL CONNECT Revenue Despite a trend of lower revenue from aggregation sites, we have seen QoQ increases during Q3 due to growth in our Direct businesses (tech-enabled agency and real estate portals.) Consolidation of Results from LIFULL CONNECT1 in EUR FazWaz & Lamudi Unit: 1,00
Slide 44: Sustainability Initiatives of the LIFULL Group
Sustainability Initiatives of the LIFULL Group LIFULL has been selected for the FTSE Blossom Japan Sector Relative Index this year The FTSE Blossom Japan Index Series1 is designed to measure Japanese company performance demonstrating specific Environmental, Social and Governance (ESG) practices. The
Slide 45: 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

LIFULL — Q3 FY2024/9 Earnings Presentation on 6ix

Lifull Co.ltd — Q3 FY2024/9 Earnings Presentation

Slide 1: Third Quarter Results

Slide 2: Index

Slide 3: FY 2024/9 Q3 Earnings Points

Slide 4: Consolidated Earnings Digest

Slide 5: Consolidated Results Summary Revenue

Slide 6: Consolidated Results Summary Operating Profit

Slide 7: Overview by Segment: HOME'S Services

Slide 8: HOME'S Services Segment Results

Slide 9: LIFULL HOME'S Worldview

Slide 10: Update on our Growth Strategy: Investing in Development

Slide 11: Update on our Growth Strategy: Enhanced Sales Initiatives

Slide 12: Overview by Segment: Overseas

Slide 13: Overseas Segment Results

Slide 14: Growth Strategy: Moving to Direct

Slide 15: Initial Results from Re-Planning

Slide 16: Mid to Long-Term Overseas Strategy

Slide 17: Overview by Segment: Other Businesses

Slide 18: Other Businesses Segment Results

Slide 19: Other Businesses Segment Sales Revenue (Quarterly)

Slide 20: Other Businesses Segment Profit and Loss (Quarterly)

Slide 21: Our Stance on Capital Cost-Conscious Management

Slide 22: Our Management Philosophy

Slide 23: Capital Cost-Conscious Management

Slide 24: Actions Taken to Improve Capital Efficiency

Slide 25: Financial Results

Slide 26: Condensed Statements of Income and Loss IFRS

Slide 27: Revenue / Income and Loss by Segment IFRS

Slide 28: Condensed Statement of Financial Position and Goodwill IFRS

Slide 29: Condensed Statement of Cash Flow IFRS

Slide 30: FY 2024/9 Forecast & Progress IFRS

Slide 31: Appendices

Slide 32: Corporate Information (as of June 30, 2024)

Slide 33: LIFULL HOME'S

Slide 34: Primary Group Companies

Slide 35: Segments and Primary Services

Slide 36: Annual Revenue and Timeline of Company Growth

Slide 37: Consolidated Statements of Profit and Loss Quarterly

Slide 38: LIFULL HOME'S Key Performance Indicators Client Network and ARPA

Slide 39: Data on the Japanese Real Estate Market

Slide 40: External Market Data Monthly

Slide 41: 2023 Housing and Land Survey Interim Results

Slide 42: Quarterly Results LIFULL CONNECT Revenue

Slide 43: Sustainability Initiatives

Slide 44: Sustainability Initiatives of the LIFULL Group

Slide 45: IR Team Contact Information