Lifull Co.ltd. · TSE:2120

Lifull Co.ltd — Q3 FY2020/9 Earnings Presentation

47 slides from Lifull Co.ltd's earnings presentation, Aug 12, 2020

  1. Slide 1: Quarterly Results IFRS FY2020/9 Quarter 3

    LIFULL Co., Ltd. Quarterly Results IFRS FY2020/9 Quarter 3 (October 2019 – June 2020) 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

    Index 1. Progress Toward the Earnings Forecast P2 2. Third Quarter Financial Results P3 3. Actions in the Third Quarter P 11 (Response to COVID-19) 4. Innovating the Search for a New Home P 15 5. Expanding the Real Estate Investment Market P 18 6. Appendices P 24 7. IR Team Contact Information P 46

  3. Slide 3: Progress Toward the Earnings Forecast

    Progress Toward the Earnings Forecast Steady increases in revenue and profit. Working toward reaching targets while paying attention to domestic and overseas markets and current business results. Sales Revenue Operating Earnings Revised Forecast Depiction (4/20) Overseas: Japan: Lockdown measures Un

  4. Slide 4: Third Quarter Financial Results

    FY 2020/9 Third Quarter Financial Results Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3

  5. Slide 5: Condensed Statements of Income and Loss IFRS

    Condensed Statements of Income and Loss IFRS Revenue: -8.4% YoY EBITDA: +21.7% YoY Net Profit: +14.1% YoY FY2019 FY2020 Change Change % Unit: JPY mil. Q3(Oct.-Jun.) Q3(Oct.-Jun.) Revenue 29,352 26,892 -2,460 -8.4% *1 Cost of revenue 3,342 3,143 -198 -5.9% *2 SG&A (excl. depreciation and amortization

  6. Slide 6: Revenue and Income and Loss by Segment IFRS

    Revenue and Income and Loss by Segment IFRS Revenue was down due to the effects of COVID-19, but still making progress above the revised forecast Increased profit in HOME'S Services segment through effective cost control FY2019 Q3 FY2020 Q3 Change Change Main items Unit: JPY mil. Oct.-Jun. Oct.-Jun.

  7. Slide 7: Key Performance Indicators Client Network and ARPA

    Key Performance Indicators Client Network and ARPA Increases seen in total client numbers from January despite the decrease in the 9-month average (see page 12). Effects of the COVID-19 pandemic and reduced fees for clients temporarily suspending service during the state of emergency in Japan have h

  8. Slide 8: Condensed Statement of Financial Position and Goodwill IFRS

    Condensed Statement of Financial Position and Goodwill IFRS Under IFRS 16, Operating Leases have been reclassified as Right-of-Use Assets Borrowing increased by 5 billion yen to solidify the financial base against an unforeseeable future As of As of Change Change Main items Unit: JPY mil. Sep 30, 20

  9. Slide 9: Condensed Statement of Cash Flow IFRS

    Condensed Statement of Cash Flow IFRS 7.2 billion yen in loans to solidify the financial base against an unforeseeable future Free cash flow increased by 2.63 billion yen resulting in cash and cash equivalents at 15.2 billion FY2019 Q3 FY2020 Q3 Change Main items Unit: JPY mil. Oct.-Jun. Oct.-Jun. I

  10. Slide 10: Completion of the Repurchase of Treasury Shares

    Completion of the Repurchase of Treasury Shares The share buyback decided at the Board of Directors meeting on May 14 was completed on August 4. (Per Agreement) Reasons Details of Repurchase (Ref.) May 14 Release As of August 4 (Per Agreement) Enhance shareholder returns Total Shares Acquired Shares

  11. Slide 11: Progress Toward FY2020/9 Forecast IFRS

    Progress Toward FY2020/9 Forecast IFRS Condensed Statements of Income and Loss Revenue by Service FY2020 FY2020 Q3 FY2020 FY2020 Q3 Oct.-Sep. Oct.-Jun. Oct.-Sep. Oct.-Jun. Progress Progress [Full-Year [Full-year Unit: JPY mil. [Actual] Unit: JPY mil. [Actual] Forecast] forecast] Revenue 30,760 26,89

  12. Slide 12: Actions in the Third Quarter (Response to COVID-19)

    Actions in the Third Quarter (Response to COVID-19) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 11

  13. Slide 13: Growth in the LIFULL HOME'S Client Network

    Growth in the LIFULL HOME'S Client Network Support offered for real estate companies voluntarily suspending business activities during the state of emergency. Maintaining steady growth in the client network through stronger sales measures. Support for Real Estate Companies Client Network Growth Duri

  14. Slide 14: User Support During Stay-At-Home Orders LIFULL HOME'S Sumai No Madoguchi

    User Support During Stay-At-Home Orders LIFULL HOME'S Sumai No Madoguchi Although offices closed during the state of emergency, support via various communication channels (video calls, telephone, e-mail) increased for a growing number of consultations. Support During the State of Emergency  Tempora

  15. Slide 15: Traffic Trends in the Overseas Segment

    Traffic Trends in the Overseas Segment Decreases in traffic seen while lockdown measures were in place in key regions with strong recovery from May. Steady growth from organic search engine traffic. Organic Traffic Trend (LIFULL CONNECT Aggregation Sites) Decreases from FY 2019 COVID-19 Steady growt

  16. Slide 16: Innovating the Search for a New Home

    Innovating the Search for a New Home Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 15

  17. Slide 17: Questionnaire on Home-Seeker Behavior during COVID-19 (#2)

    Questionnaire on Home-Seeker Behavior during COVID-19 (#2) Conducted a second questionnaire in June on the current mindset of users planning to move house. Discovered an increase in the number of users planning a move and anticipation of online support. Q: Are you currently planning to move house /

  18. Slide 18: Online Support for Home-Seekers LIFULL HOME'S LIVE

    Online Support for Home-Seekers LIFULL HOME'S LIVE Extension of free service period1,2 of LIFULL HOME'S LIVE. Broader use due to reduced face-to-face transactions during the COVID-19 pandemic. Online Support Provided LIFULL HOME'S LIVE (Consultations, Viewings and Disclosures) free of charge for mem

  19. Slide 19: Expanding the Real Estate Investment Market

    Expanding the Real Estate Investment Market Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 18

  20. Slide 20: Kenbiya Acquired in July to Boost the Real Estate Investment Area

    Kenbiya Acquired in July to Boost the Real Estate Investment Area Two real estate investment sites started in the 2000s, but developed with complementary strengths. Large-Scale Investment Properties Japanese Real Estate https://www.kenbiya.com/ Investment Listing Sites https://toushi.homes.co.jp/ ×

  21. Slide 21: Kenbiya Company Overview

    Kenbiya Company Overview Name : Kenbiya Co., Ltd. Business Result Trend JPY Head Office : Minato-ku, Tokyo Revenue Operating Profit 550mil. Founded : April 2004 Capital : JPY 10 million Primary Business : Operation of the real estate investment and JPY property listing website Kenbiya 170mil. Direct

  22. Slide 22: Strategy for the Real Estate Investment Sector

    Strategy for the Real Estate Investment Sector Becoming the leader in investment property listings while combining the client and users networks of both sites to boost overall value. Over 80,000 Combined Listings Investment Properties User Network Real Estate Client Network Seminars and Marketing Be

  23. Slide 23: Expanding the Real Estate Investment Market

    Expanding the Real Estate Investment Market Invested in InvestaX, specializing in issuing security tokens for real estate assets and facilitating transactions. Making progress toward a global real estate investment platform using blockchain technology. Traditional Real Estate Investing Tokenized Rea

  24. Slide 24: Make every LIFE FULL

    LIFULL Group Make every LIFE FULL 23

  25. Slide 25: Appendices

    Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 24

  26. Slide 26: Corporate Information (as of June 30, 2020)

    Corporate Information (as of June 30, 2020) 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 President and CEO Takashi Inoue Capit

  27. Slide 27: 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. • Con

  28. Slide 28: Primary Group Companies

    Primary Group Companies (Listed according to date of founding / acquisition) • Planning and operation of the real estate and housing information website, LIFULL Rumah PT. LIFULL MEDIA INDONESIA1 • Planning and operation of the service for Japanese resident officers assigned to Jakarta, LIFULL Concie

  29. Slide 29: Segments and Primary Services

    Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) HOME'S Services Business NabiSTAR LIFULL Marketing Partners Co., Ltd. Kenbiya (Kenbiya Co., Ltd.) Trovit (LIFULL CONNECT) Mitula (LIFULL CONNECT) Nestoria (LIFULL CONNECT) RESEM (LIFULL CONNECT) Overse

  30. Slide 30: Annual Revenue and Timeline of Company Growth

    Earnings Forecast Revision due to Annual Revenue and Timeline of Company Growth impact of COVID-19 Acquisition of MItula JPY 100 mil. 450 Changed fiscal year (irregular 6-month period) 400 Changed company name to LIFULL Co., Ltd. 350 Overseas real Acquisition of LIFULL MP estate services launched 30

  31. Slide 31: Revised Earnings Forecast for FY 2020/09 IFRS

    Revised Earnings Forecast for FY 2020/09 IFRS Revised Earnings Forecast disclosed on April 20, 2020 (https://lifull.com/wp-content/uploads/2020/04/release_20200420_en_revision.pdf) Condensed Statemants of Income and Loss Revenue by Segment FY2020 FY2020 FY2020 FY2020 Oct.-Sep. Oct.-Sep. Change Chang

  32. Slide 32: Growth of Consolidated Earnings and Breakdown

    Growth of Consolidated Earnings and Breakdown Consolidated Revenue Acceleration of growth in the Overseas Business segment in addition to steady progress in HOME'S Services 40,533 Unit: JPY mil. 4.8% 34,565 Other Businesses 32,112 22.0% Overseas1 27,566 73.2% Services FY2018 FY2019 3 Periods Prior 2

  33. Slide 33: Number of Employees Group

    Number of Employees Group Increase in employees due to overseas expansion 1,558 1500 1,275 1,199 1,118 ■ Overseas 1000 919 ■ Other Businesses ■ HOME'S Services 735 561 500 0 End of End of End of End of End of End of End of Mar 2014 Mar 2015 Mar 2016 Mar 2017 Sep 2017 Sep 2018 Sep 2019 1) Not includi

  34. Slide 34: Consolidated Statements of Profit and Loss Quarterly

    Consolidated Statements of Profit and Loss Quarterly Consolidated statements of Profit and Loss (quarterly) FY2017/3 FY2017/9 FY2018/9 FY2019/9 FY2020/9 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue 6,846 6,910 7,107 9,056 7,793 8,154 8,128 9,541 8,345 8,549 8,391 11,208

  35. Slide 35: Expense-to-Revenue Ratio IFRS

    Expense-to-Revenue Ratio IFRS Improvement in EBITDA margin due to cost control efforts 28.3% +1.7pt 30.0% -3.2pt 26.8% 32.1% -3.9pt Cost of Sales and Other SG&A 31.0% 32.7% +1.4pt -3.2pt Advertising Expenses 32.1% +0.6pt 34.1% Personnel Expenses +1.6pt 23.0% -2.0pt 21.9% -0.6pt 23.9% 21.4% EBITDA Ma

  36. Slide 36: (Ref.) Pricing Structure Revisions Rental & Sale Properties Starting Oct. 2019

    (Ref.) Pricing Structure Revisions Rental & Sale Properties Starting Oct. 2019 New Pricing Structure Basic Membership Fee Inquiries Pay by Inquiry (Mon.) Inquiries (e-mail / tel.) Monthly Rent of Property × 9.5% Rental JPY 15,000 Company Inquiries Number of Inquiries × JPY 5,000 Inquiries (e-mail /

  37. Slide 37: Quarterly Results LIFULL CONNECT

    Quarterly Results LIFULL CONNECT Currently lower revenue due to the effects of the COVID-19 pandemic Results from LIFULL CONNECT* in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR 9,365 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017/3 2017/9 2018

  38. Slide 38: Overseas Segment Results Segment Profit and Loss (Quarterly Trend)

    Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Lower revenue due to effects of the COVID-19 pandemic leading to reduced profit levels Quarterly Segment P&L ■ LIFULL CONNECT ■ International Division ■ Depreciation ■M&A Costs ■ Other Unit: JPY mil. 594 556 401 292 246 64 -97 -77 -7

  39. Slide 39: Other Businesses - Segment Sales Revenue (Quarterly)

    Other Businesses - Segment Sales Revenue (Quarterly) - Without regard to the effects of the transfer of LHL1, continuing to maintain scale of operations Transfer of LHL Quarterly Revenue Unit: JPY mil. ■ Existing businesses *2 ■ Other new businesses 429 Founding of 4 companies (incorporation-type co

  40. Slide 40: Other Businesses Segment Profit and Loss (Quarterly)

    Other Businesses Segment Profit and Loss (Quarterly) Unit: JPY mil. Transfer of LHL Quarterly Segment Profit and Loss 98 ■ Existing businesses1 ■ Other new businesses 60 44 41 38 33 26 -97 -118 -141 -138 -142 -155 -167 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2016/3 FY2017/3

  41. Slide 41: Progress in Regional Revitalization New Partnership with Local Governments

    Progress in Regional Revitalization New Partnership with Local Governments Entered into a revitalization partnership with Tagawa, Fukuoka, in July and added another LivingAnywhere Commons location 福岡県 Tagawa LivingAnywhere Commons 田川市 Revitalization partnership to repurpose vacant homes Fukuoka Comi

  42. Slide 42: LIFULL ArchiTech Instant Shelter

    LIFULL ArchiTech Instant Shelter Sales of Instant Shelters to local governments and businesses started on July 15 What is an Instant Shelter? Created by filling a three-dimensional form with a solid light foam substance, Instant Shelters provide insulated and sound-proof structures that can be const

  43. Slide 43: (Ref.) External Market Data Monthly

    (Ref.) External Market Data Monthly 2017 2018 2019 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 35,898 37,132 3

  44. Slide 44: (Ref.) Domestic Market Environment

    (Ref.) Domestic Market Environment 01 02 03 04 Number of Real Estate Number of Licensed Number of Offices Size of Real Estate Companies Real Estate Agencies Listing Market 328,553 124,451 (108,800 Corporates) 352,733 Approx. 900+ billion yen (Based on 2017 values from the (Based on 2018 values from

  45. Slide 45: (Ref.) Base Results of the 2018 Housing and Land Survey

    (Ref.) Base Results of the 2018 Housing and Land Survey (Statistics Bureau of Japan) Trend of Total Dwellings and Total Households Trend of Number of Vacant Homes and Vacancy Rates Breakdown of Vacant Homes (10,000 Units) +29 Total Dwellings(10,000 Units) +1,779 900 820 (+3.6%) 849 16.0% Total Total

  46. Slide 46: (Ref.) Overseas competitors

    (Ref.) Overseas competitors Competitors have high market capitalization due to their user shares in each country. [Rightmove, UK] As of September, 2020 (forecast) Revenue ¥37.8 bil. (YoY+8%) [LIFULL, JP] Market Cap. EBITDA ¥28.4 bil. Market Cap. Net Profit ¥17.3 bil. Revenue EBITDA ¥30.7 bil. ¥2.9 b

  47. Slide 47: IR Team Contact Information

    IR Team Contact Information IR Site Japanese https://LIFULL.com/ir/ English https://LIFULL.com/en/ir/ TEL +81-3-6774-1603 E-mail ir@LIFULL.com (Weekdays 10:00 - 18:00 JST) Annual Report 2018 Other Information about LIFULL Twitter Facebook Page Japanese https://lifull.com/ir/ir-data/fy2018/ English h

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