Slide 1: Earnings Presentation, Fiscal Year ended March 31, 2017
LIFULL Co., Ltd. Earnings Presentation Fiscal Year ended March 31, 2017 (April 2016 to March 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 regarding the accuracy of the
Slide 2: Make every LIFE FULL. Begin
Make every LIFE FULL. April 1, 2017 Begin 1
Slide 3: 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” is an amalgamation of the words “LIFE” and “FULL”. It captures our determination to provide everyone with services for more fulfilling lives and lifestyles. 2
Slide 4: Headquarter Relocation
Headquarter Relocation Fully renovated a 50-year-old building A model case to effectively utilize an existing building Address: Kojimachi 1-4-4, Chiyoda-ku, Tokyo Map: http://LIFULL.com/en/company/ 3
Slide 5: ENGAWA Project: New Headquarter
New Headquarter ENGAWA Project Concept of the renovation is “ENGAWA (veranda)” which loosely connects inside and outside the company. The office will play a role as a “new arena for communication” which brings fresh encounters and allow people to think out of the box 1F LIFULL Table & LIFULL Fab (op
Slide 6: Consolidated Results for FY2016
Consolidated Results for FY2016 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 5
Slide 7: Record high for Revenue
Revenue (bn JPY) 30.0 JPY 29.9bn JPY 25.7bn 25.0 Record high for 20.0 5 consecutive periods 15.0 10.0 5.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. J-GAAP IFRS 6
Slide 8: Record high for Net Profit
Net Profit (bn JPY) 3.0 JPY 2.7bn JPY 2.6bn 2.5 Record high for 2.0 4 consecutive periods 1.5 1.0 0.5 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. J-GAAP IFRS *Net profit for Mar. 2016 and 2017 are net profit attributable
Slide 9: Condensed Statements of Profit and Loss IFRS
Condensed Statements of Profit and Loss IFRS * Significant growth in revenue by 16.4%, EBITDA by 9.3% and net profit by 3.6% YoY. FY2015 FY2016 Change Unit: JPY mil Change Main items (Apr.-Mar.) (Apr.-Mar.) % Revenue 25,707 29,920 +4,212 +16.4% Revenue increase in Domestic business made a positive c
Slide 10: Expense-to-Sales Ratio IFRS
Expense-to-Sales Ratio IFRS Cost of sales and other SG&A-to-sales ratio increased due to revenue generated by Lifull MP increased, which was in line with our expectation. 25.5% ＋2.6p 28.1% +2.5p 30.6% Cost of sales and other SG&A -4.1p -0.5p Advertising expenses 32.7% 28.6% 28.1% ±0 Personnel expens
Slide 11: Sales by Segment IFRS
Sales by Segment IFRS The domestic businesses made a steady growth. The overseas business decreased mainly due to foreign currency exchange rate. FY2015 FY2016 Change Unit: JPY mil Change Main items (Apr.-Mar.) (Apr.-Mar.) % Revenue 25,707 29,920 +4,212 +16.4% Domestic Real Estate 18,417 21,343 +2,9
Slide 12: Segment Income and Loss IFRS
Segment Income and Loss IFRS Revenue increase in Domestic Real Estate Information Services made appositive contribution. FY2015 FY2016 Change Unit: JPY mil Change Main items (Apr.-Mar.) (Apr.-Mar.) % Segment income and loss 4,090 4,176 +94 +2.3% Although marketing cost and other costs Domestic Real
Slide 13: Condensed Statements of Profit and Loss (quarterly) IFRS
(ref.) Condensed Statements of Profit and Loss (quarterly) IFRS Steady growth in revenue and EBITDA due to the contribution of Domestic Real Estate Information Services. Increase in depreciation due to the relocation. FY2015 FY2016 FY2015 FY2016 Change Change Unit: JPY mil Q4 Q4 Change Unit JPY mil
Slide 14: 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, 2016 Mar 31, 2017 Decrease in cash and deposits -578 Assets 25,265 27,110 +1,844 Increase in accounts receivable-trade Increase in advance payments +686 +210 Increase in prepaid expenses
Slide 15: Condensed Statements of Cash Flow IFRS
Condensed Statements of Cash Flow IFRS FY2015 FY2016 Main items Unit: JPY mil (Apr.-Mar.) (Apr.-Mar.) Change FY2015 FY2016 Items (Apr.-Mar.) (Apr.-Mar.) Income before income taxes 4,018 4,087 Depreciation and amortization 866 1,247 Operating Increase/decrease in accounts receivable –trade and other
Slide 16: FY2016 Forecast and Progress
FY2016 Forecast and Progress Statements of Profit and Loss Sales by Segment FY2015 FY2016 FY2015 FY2016 Progress Progress Unit: JPY mil [Full-year Unit: JPY mil [Full-year [Actual] % [Actual] % forecast] forecast] Revenue 31,653 29,920 94.5% Revenue 31,653 29,920 94.5% Cost of sales 3,514 3,080 87.6
Slide 17: FY2016 EBITDA Forecast vs Actual
FY2016 EBITDA Forecast vs Actual (mil JPY) Decrease in personnel expenses 437 Slow in the local currency Decrease in operating expenses 236 based Trovit revenue. Other expenses 103 5,803 -811 +97 5,312 +434 -922 +776 -65 EBITDA Shortfall of Decrease Shortfall of Increase Decrease in Other EBITDA for
Slide 18: Business Strategies
Business Strategies Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 17
Slide 19: Topics of FY2016
Topics of FY2016 Steady business scale expansion by taking various initiatives Enhance Media Power Enhance Brand Power Corporate Started to show the reference price of Showroom 3D experience VR Goggles Started One P’s Price Map present campaign Started support activities after Opened HOME’S Counter
Slide 20: Domestic Business
Domestic Business Domestic Real Estate Information Service and Domestic Services for Realtors 19
Slide 21: Becoming the absolute No.1: media power and brand power
Becoming the absolute No.1 Keep strengthening two “powers” Strengthen Strengthen media brand power power 20
Slide 22: Media Power: Coverage, Visualization, Reliability
Information Coverage Strengthen media Information Visualization power Improvement of Reliability 21
Slide 23: Information Coverage – Network of Affiliated Stores
Information Coverage – Network of Affiliated Stores Steady progress toward the target of 40,000 stores. (stores) 25,000 22,425 stores Record high 20,000 19,377 stores 15,000 10,000 5,000 0 Mar. Mar. Mar. 2011 2016 2017 22
Slide 24: Information Coverage – Number of Properties Listed
Information Coverage – Number of Properties Listed (rentals and real estate sales) 百万 Number of Properties (mil) (mil) Listed by Peers 8.00 8.00 (rentals and real estate sales) As of Mar. 2017 6.98mil 7.43mil 6.00 6.00 4.00 4.00 2.00 2.00 0.00 0.00 Apr. Mar. Mar. Company Company Company 2008 2016 20
Slide 25: Number of Properties Listed (new houses and condos)
Information Coverage – Number of Properties Listed (new houses and condos) (buildings) 8,560 buildings 8,000 7,134 buildings 6,000 Steady growth 4,000 2,000 0 Apr. Mar. Mar. 2010 2016 2017 24
Slide 26: Price Information Visualization – Price Map
Price Information Visualization – Price Map In addition to the metropolitan and Kinki areas, the rents and reference prices in Aichi and Fukuoka areas are started to be available. The coverage area is expanding Coverage Area (as of April 2017) Metropolitan Aichi Kinki Fukuoka PRICE MAP (Kyoto, Osaka
Slide 27: Improvement of Reliability - Omni-channel Strategy
Improvement of Reliability - 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 Lots of information ID: xxx Mr. A DB Optimal information for customers Provide optimal info From all the contact poi
Slide 28: LIFULL HOME'S Sumainomadoguchi (Counter)
LIFULL HOME’S Sumainomadoguchi (LIFULL HOME’S Counter) Shin-Koshigaya Satellite Shop* Opened on May 3, 2017 Shinjyuku Ginza shop Shop* Hanzomon Shop* Unimo Tressa Chiharadai Opened Yokohama Shop Shop Yokohama Station Shop 7 stores Opened on May 3, 2017 LIFULL HOME’S Sumainomadoguchi https://sumainom
Slide 29: LIFULL HOME'S Counter Customer Survey
LIFULL HOME’S Sumainomadoguchi (LIFULL HOME’S Counter) LIFULL HOME’S Counter Customer Survey More than 90% of customers answered “satisfied” Satisfied 94.2% 28
Slide 30: Brand Power: Promotion, Services for Realtors
Promotion Strengthen brand Services for Realtors power 29
Slide 31: Change in Brand
Change in Brand Former New URL (no change) HOME’S LIFULL HOME’S http://www.homes.co.jp/ HOME’S Kaigo LIFULL Kaigo http://kaigo.homes.co.jp/ HOME’S Trunk Room LIFULL Trunk Room https://www.homes.co.jp/trunkroom/ HOME‘S Hikkoshi LIFULL Hikkoshi https://www.homes.co.jp/hikkoshi/ HOME’S Style Market LIF
Slide 32: Services for Realtors – Daily Operation of Realtors
Services for Realtors – Daily Operation of Realtors Enhance the service quality of realtors by utilizing IT. Tasks can be reduced by utilize IT Review and prepare contracts Prepare important Matters Order new keys Prepare insurance applications Hand over keys Search available properties Info service
Slide 33: Services for Realtors – Service List
Services for Realtors – Service List Providing services both for users and realtors. 住宅ローン試算 Under development/ Not Being provided in planning undertaken Call Center Counter *Starting from FY2017/Q1 Started to provide during FY2016 Services LIFULL HOME’S app Home inspection Smart New house/ Price Ma
Slide 34: Three changes in the real estate industry 2017
2017 Three changes in the real estate industry 33
Slide 35: Change in the Real Estate Industry in 2017 (1)
Change in the Real Estate Industry in 2017 (1) Explanation on important Matters Utilizing IT Before Important matters related to real estate Home Finding Steps Utilizing IT transaction have to be explained face-to-face Property viewing ◯ with a written format Explanation on important Matters ✖ Sign
Slide 36: Our Initiative: LIFULL HOME'S LIVE
2017 Change in the Real Estate Industry (1) Our Initiative: LIFULL HOME’S LIVE Used by 山田 太郎 more than half of the participants of the experiment Functions of LIFULL HOME’S LIVE - Compatible with a broad range of devices, including PCs, smartphones, and tablets - Prevents loss of records through aut
Slide 37: Inspection Related Items Will Become Mandatory for Realtors
2017 Change in the Real Estate Industry (2) Inspection Related Items Will Become Mandatory for Realtors (from Apr. 2018) Before <Existing Home Ratio＞ Existing home transaction market in Japan is 1/6 of 83.1% 87.0% that in the Western markets. Behind this, there are 64.4% consumers’ anxiety over purc
Slide 38: Our Initiative: LIFULL Stay
Change in the Real Estate Industry in 2017 (2) Our Initiative: LIFULL Stay Visualize inspection result and appraised value of a real estate and provide them as a single package to eliminate anxiety over purchasing an existing house. (1) Real estate quality inspection Provide property inspection, equ
Slide 39: Home-sharing Law
2017 Change in the Real Estate Industry (3) Home-sharing Law Before 60.00 Although home-sharing is a good solution to the <No. of Inbound Tourists> issues including the lack of accommodations *2020 and 2030 are gov. target 40.00 relating to an increasing number of inbound (mil people) tourists in Ja
Slide 40: Our Initiative: LIFULL Stay
Change in the Real Estate Industry in 2017(3) Our Initiative: LIFULL Stay In preparation to launch a full-scale home sharing business in 2017 39
Slide 41: Overseas Business
Overseas Business Trovit, LIFULL 40
Slide 42: Countries of Operation
Countries of Operation Trovit model 53 countries Austria Nederland Belgium Norway Russia Czech Republic Poland Denmark Portugal France Romania Germany Spain Hungary Sweden Hong Kong Ireland Switzerland Japan Canada Italy UK Taiwan Mexico Luxembourg Ukraine Thailand US Arg
Slide 43: LIFULL Immofinder
LIFULL Immofinder Start to provide a LIFULL HOME’S type service in Germany Real estate market in Germany ・ Active thanks to low-rate mortgage ・ real estates cost less than other major cities in the world ・ In addition to consumer’s purchase, increasing number of institutional investors are purchasin
Slide 44: LIFULL Australia
LIFULL Australia No. of Users Increase steadily Plan to start monetizing during FY2017 Approx. 7x Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. 2016 2017 43
Slide 45: Trovit Monthly Traffic
Trovit Monthly Traffic Sign of recovery Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. 2016 2017 44
Slide 46: Trovit Initiatives in 2017
Trovit Initiatives in 2017 1. Strengthen SEO and roll out in each market 2. Strengthen sales capabilities 3. Strengthen mobile service capabilities Steady progress 45
Slide 47: Forecast for FY2017
Forecast for FY2017 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 46
Slide 48: Change in Segment
Change in Segment <Current segment> <New segment> Overseas Other Overseas Other business business business business Domestic Domestic Real Estate Information Services for Realtors HOME’S Services Service business business business *LIFULL Kaigo was previously comprised in “HOME’S Services business”
Slide 49: Change in Segment
Change in Segment <Current segment> <New segment> Segments Main services Segments Main services Rentals & Real Estate Sales Rentals & Real Estate Sales Domestic Real New Houses & Condominiums New Houses & Condominiums Estate Custom-built Homes & Renovations Custom-built Homes & Renovations Informati
Slide 50: FY2017 Forecast IFRS
FY2017 Forecast IFRS Statements of Profit and Loss Sales by Segment FY2016 FY2017 Progress FY2016 FY2017 Progress Unit: JPY mil [Actual] [Full-year Change Unit: JPY mil [Actual] [Full-year Change % % forecast] forecast] Revenue 29,920 37,420 +7,500 +25.1% Revenue 29,920 37,420 +7,500 +25.1% cost of
Slide 51: FY2017 Forecast IFRS: EBITDA
FY2017 Forecast IFRS EBITDA is expected to be decreased 2.5% YoY due to the one-time expenses, and +20.1% YoY by excluding those special factors. (mil JPY) <One-time expenses> One-time cost - Expenses related to company 1,200 name and brand change - Expenses related to the 5,312 relocation 5,180 FY2
Slide 52: Profit Sharing: Will-Centric Public Interest Capitalism
Profit Sharing Based on the spirit of Will-Centric Public Interest Capitalism, we care every stakeholder Will-Centric Public Interest Capitalism Society Global Consumers ・ environment Altruism Clients Shareholders Employees Partners 51
Slide 53: Profit Sharing
Profit Sharing Continue to return to shareholders based on the basic policy of 20 % payout ratio. JPY5.66 JP Y6 .00 Dividend per share Payout ratio Commemorative JPY4.66 JPY1.00 JP Y5 .00 JP Y4 .00 JPY4.50 24.3% 20.0% 20.0% 24.3% JP Y3 .00 15.0% JPY2.88 20.0% 20.0% JP Y2 .00 JPY2.37 JP Y1 .00 JPY1.1
Slide 54: The Company Where People Most Want to Work
The Company Where People Most Want to Work Link & Motivation Best Motivation Company Award 1st Selected as “Great Place to Work “Great Place to Work” “health and For women” ranking productivity” stock ranking 7 consecutive 2 rd th consecutive years 3 4 53
Slide 55: Make every LIFE FULL.
m7 |, LIFULL Make every LIFE FULL. rq L CIFULL
Slide 56: Appendix
Appendix. Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 55
Slide 57: Corporate Info
Corporate Info 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 118,789,100 shares (incl. 7
Slide 58: External Market Data
External Market Data Number of Apartments for sales Source : Real Estate Economic Institute Co., Ltd. 2015 2016 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 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17
Slide 59: Domestic Real Estate Service
Domestic Real Estate Service 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 accuracy. Cont
Slide 60: Services for Realtors
Services for Realtors 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 without spec
Slide 61: Other Businesses
Other Businesses Insurance agency search and appointment website Furniture / interior EC website “LILUFLL Hoken Soudan (insurance consultation)” “LIFULL Interior” LIFULL Hikkoshi (move) LIFULL Trunk Room (self-storage) Other “LIFULL” services 60
Slide 62: LIFULL Group Companies (1)
LIFULL Group Companies (1) （in chronological order with effective dates of establishment) - Planning and sales of “AD MASTER ”, CRM service for realtors - Consultation service Renter’s - Planning and operation of “Lifull Rumah”, a website providing real estate and housing information in Indonesia PT
Slide 63: LIFULL Group Companies (2)
LIFULL Group Companies (2) （in chronological order with effective dates of establishment) - Operation of “HOME’S Kaigo (nursing care)”, one of the largest Lifull Senior websites in Japan to search for nursing care homes or elderly housing - Operation of ”HOME’S Hikkoshi (move)”, a website where quot
Slide 64: LIFULL Group Companies (3)
LIFULL Group Companies (3) （in chronological order with effective dates of establishment) - Online home building mediation service Lifull Remodel - Reconstruction work mediation service - Contract work for interior decoration - Operating crowd-funding platform “Japan Giving” JG MARKETING and “Shooti
Slide 65: 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@