Lifull Co.ltd. · TSE:2120

Lifull Co.ltd — Q2 FY2021/9 Earnings Presentation

47 slides from Lifull Co.ltd's earnings presentation, May 2021

Slide 1: Second Quarter Results FY2021/9 Q2
LIFULL Co., Ltd. Second Quarter Results IFRS FY2021/9 Q2 (October 2020 – March 2021) 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 vari
Slide 2: Index
Index 1. FY 2021/9 Second Quarter Financial Results P2 2. Segment Update HOME'S Services P9 Overseas P 17 Progress in Other Key Areas P 24 3. Management Philosophy P 27 4. Appendices P 31 5. IR Team Contact Information P 46 1
Slide 4: Condensed Statements of Income and Loss
Condensed Statements of Income and Loss IFRS Recovery in domestic revenue reducing the YoY gap to -6.9%. Active growth investments in Overseas Segment bringing operating income to -25.2% and net profit -28.8%. FY2020 Q2 FY2021 Q2 Change Change % Unit: JPY mil. (Oct.-Mar.) (Oct.-Mar.) Revenue 19,185
Slide 5: Revenue / Income and Loss by Segment
Revenue / Income and Loss by Segment IFRS Domestic and Overseas Segments continue to recover despite a drop in revenue due to the pandemic. Gains in Overseas profit due to continued cost controls as well as transfer of development personnel expenses. FY2020 Q2 FY2021 Q2 Change Change Main items Unit
Slide 6: Condensed Statement of Financial Position and Goodwill
Condensed Statement of Financial Position and Goodwill IFRS As of As of Change Change Main items Unit: JPY mil. Sep 30, 2020 Mar 31, 2021 % Current assets 23,083 22,176 -906 -3.9% Cash -1,828 Refer to "Condensed Statement of Cash Flows" Accounts Receivable +711 Products +782 Primarily Regional Revit
Slide 7: Condensed Statement of Cash Flow
Condensed Statement of Cash Flow IFRS Cash and cash equivalents decreased by 1.8 billion yen to 14.1 billion yen due to payment of employee bonuses, taxes and dividends. FY2020 Q2 FY2021 Q2 Change Main items Unit: JPY mil. (Oct.-Mar.) (Oct.-Mar.) Items FY2020 Q2 FY2021 Q2 Profit for the period befor
Slide 8: FY2021/9 Forecast and Progress
FY 2021 /9 Forecast and Progress IFRS Condensed Statements of Income and Loss Revenue by Service FY2021 FY2021 Q2 FY2021 FY2021 Q2 Oct.-Sep. Oct.-Mar. Oct.-Sep. Oct.-Mar. Progress Progress [Full-Year [Full-year Unit: JPY mil. [Actual] Unit: JPY mil. [Actual] Forecast] forecast] Revenue 38,476 17,852
Slide 9: Focal Points of the Mid-Term Management Plan
Focal Points of the Mid-Term Management Plan (FY 2021/9 to FY2025/9) FOCAL POINTS HOME'S OVERSEAS OTHER SERVICES BUSINESSES OMNI- CHANNEL Moving REGIONAL to REVITALIZATION DX Direct & SENIOR (DIGITAL TRANSFORMATION) CITIZENS Growth through solutions to social issues through our existing businesses 8
Slide 11: Key Performance Indicators Client Network and ARPA
Key Performance Indicators Client Network and ARPA The client network continues to expand even during the COVID-19 pandemic. As revenue continues to recover, the increase in clients has led to a decline in ARPA. 6-Month Average 6-Month Average Client Network ARPA (JPY) FY 2019/9 FY 2020/9 FY 2021/9
Slide 12: New Features to Help Users Find the Right Home
New Features to Help Users Find the Right Home New features released to make finding the right home even easier by automatically notifying users of new properties that match their criteria and simplifying search filters for more efficient searches. LINE Notifications Launched March 2021 For New Prop
Slide 13: Active Promotion to Drive Media Capacity
Active Promotion to Drive Media Capacity Further increasing long-term brand recognition and likability through an effective, multi-faceted approach combining television and online media. Press TV YouTube(Videos) Releases TV Commercials LIFE-Nista Channel NEW LIFULL HOME'S Get hints on how to live a
Slide 14: Growth in LIFULL HOME'S Traffic and Inquiries
Growth in LIFULL HOME'S Traffic and Inquiries Experienced growth in site performance indicators despite a state of emergency announced for 11 prefectures of Japan between January 7 and March 21. Organic Traffic Inquiries +39.8% YoY Significant Q2 Q1 Growth +4.8% +13.8% FY 2020 ↓ FY 2021 More Value f
Slide 15: Omnichannel Strategy Progress Sumai No Madoguchi
Omnichannel Strategy Progress Sumai No Madoguchi Even though consultations have grown 1.5 times, Sumai No Madoguchi maintains a high user satisfaction rating. Service coverage expanded with three new locations in Western Japan opened in January 2021. Consultations YoY Moving Forward in Western Japan
Slide 16: Digital Transformation of the Real Estate Industry Online Sales Transactions
Digital Transformation of the Real Estate Industry Online Sales Transactions The current pandemic has been accelerating the digital transformation of the real estate industry. Online verbal disclosures for sale properties have been approved by the Japanese government beginning in April 2021. NEW Pro
Slide 17: Finding Solutions to Social Issues in Real Estate FRIENDLY DOOR
Finding Solutions to Social Issues in Real Estate FRIENDLY DOOR In order to support people of diverse backgrounds with difficulties in searching for a new home, we have started a series of seminars with case studies for realtors through the growing FRIENDLY DOOR service. NEW FRIENDLY DOOR Seminars f
Slide 19: LIFULL CONNECT Business Operations
LIFULL CONNECT Business Operations Continued gradual recovery despite the effects of COVID-19. Making investments to boost revenue and profit with consideration to current profit margins. Continued Revenue Active Growth Investments Recovery While Maintaining Profitability Sales Revenue (Quarterly) O
Slide 20: LIFULL CONNECT Increased Value for Clients
LIFULL CONNECT Increased Value for Clients While traffic has steadily risen to pre-COVID levels, we have increased the percentage of non-paid traffic compared with the previous fiscal year. Consolidated Traffic (All LIFULL CONNECT Sites) Increased Traffic Paid Non-Paid Non-Paid +11.6% YoY Potential
Slide 21: LIFULL CONNECT Constructing a Multi-Brand Marketplace
LIFULL CONNECT Constructing a Multi-Brand Marketplace Utilizing the combined advantages of aggregation sites and portals to increase the reach of our network and provide more value for our users and clients. Advantages Aggregation DIRECT Sites Portal Sites Aggregation Sites • Enormous audiences • Pr
Slide 22: LIFULL CONNECT Growing our Overseas Portals
LIFULL CONNECT Growing our Overseas Portals Key site performance indicators have risen considerably over the past year indicating systematic growth. Key Indicators More (All Overseas Portals) Clients YoY (Total Oct. – Mar.) Clients +22.0% More Systematic More Inquiries Growth Listings Listings +47.5
Slide 23: LIFULL CONNECT Leveraging Multimedia to Boost Traffic
LIFULL CONNECT Leveraging Multimedia to Boost Traffic Using Proppit, a management tool for realtors in our key regions of Latin America and Southeast Asia, realtors are able to list across LIFULL CONNECT broad network and manage inquiries in one place. Traditional Listings Listing via Proppit List L
Slide 24: Proppit Impact and Key Regions for Expansion
LIFULL CONNECT Leveraging Multimedia to Boost Traffic Increased visibility of listings and more inquiries for real estate professionals using Proppit. And expanding to more clients in Latin America and Southeast Asia. Impact from Proppit Key Regions for Expansion Visibility 6x Latin America Southeas
Slide 26: Regional Revitalization Activities LivingAnywhere Commons
Regional Revitalization Activities LivingAnywhere Commons People are changing the way they work in response to the COVID-19 pandemic, and we are adding new locations in response to growing needs. New Locations Increasing Interest in Rural Areas Kagawa Pref. Ibaraki Pref. More People Working Remotely
Slide 27: Services for Senior Citizens LIFULL senior
Services for Senior Citizens LIFULL senior LIFULL senior has added a new online shopping and delivery service for elderly care facilities to increase the scope of our business while working towards providing solutions for Japan's rapidly aging society. Services provided by Started NEW May 2021 LIFUL
Slide 29: LIFULL Group Management Policy
LIFULL Group Management Policy Will-Centric Public We manage our businesses with Interest Capitalism consideration to all stakeholders Services to enhance peoples' lives Consumers such as LIFULL HOME'S Consumers Services to improve the efficiency Clients of our clients' businesses Clients Environmen
Slide 30: Best Motivation Company Award 2021
Best Motivation Company Award 2021 With the impact of COVID-19, we made a number of changes and focused on improving the well-being of each of our employees by introducing new office regulations and increasing their base salary. Strong Focus on Background Employee Well-Being Selection of Actions fro
Slide 31: Make every LIFE FULL
Make every LIFE FULL 30
Slide 33: Corporate Information (as of March 31, 2021)
Corporate Information (as of March 31, 2021) 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 9,716 mil. President and
Slide 34: 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
Slide 35: Primary Group Companies
Primary Group Companies (Listed according to date of founding / acquisition) LIFULL Marketing Partners Co., Ltd. • Internet marketing for real estate and related business operators • Operation of one of the largest search engines for nursing homes and senior housing in Japan, LIFULL Nursing LIFULL s
Slide 36: Segments and Primary Services
Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) NabiSTAR HOME'S Services Advertising & Consulting Agency (LIFULL Marketing Partners Co., Ltd.) Kenbiya (Kenbiya Co., Ltd.) Trovit (LIFULL CONNECT) Mitula (LIFULL CONNECT) Nestoria (LIFULL CONNECT) RESE
Slide 37: Annual Revenue and Timeline of Company Growth
Annual Revenue and Timeline of Company Growth Acquisition of Earnings Forecast MItula Revision due to (billion yen) impact of COVID-19 40 Changed fiscal year (irregular 6-month period) Changed company name to LIFULL Co., Ltd. 38.4 35 Acquisition of LIFULL MP 30 Acquisition of LITTEL (Merged in 2011)
Slide 38: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly FY2017/3 FY2017/9 FY2018 FY2019 FY2020 FY2021 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 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 9,753 9,944 9,202 9,983 7,706 8,510 8,271 9,5
Slide 39: Expense-to-Revenue Ratio
Expense-to-Revenue Ratio IFRS Decrease in consolidated revenue due to the COVID-19 pandemic Reduced advertising expenses by 1.4 pt. through controls on online marketing 10.6% +1.2pt 11.8% +0.1pt 11.9% -0.6pt 11.2% 19.6% 20.3% 22.1% +2.2pt 21.9% -1.5pt +1.7pt Cost of Sales Other SG&A 34.4% 33.6% 32.2
Slide 40: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT Currently seeing recovery from decrease in revenue due to the COVID-19 pandemic Results from LIFULL CONNECT* in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR 13,819 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2015/
Slide 41: Overseas Segment Results Segment Profit and Loss
Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Despite the ever-changing situation due to the on-going pandemic, we continuing to secure profits while making investments to make ourselves even more competitive Quarterly Segment P&L ■ LIFULL CONNECT ■ International Division ■ Depr
Slide 42: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) Existing businesses driving revenue growth Transfer of LHL 554 Quarterly Revenue Unit: JPY mil. ■ Existing businesses *2 ■ Other new businesses Founding of 4 companies (incorporation-type company split) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q
Slide 43: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) Transfer of LHL LHLの譲渡 Quarterly Segment Profit and Loss Unit: JPY mil. 98 ■ Existing businesses1 ■ Other new businesses 71 60 59 44 41 38 42 33 26 -97 -118 -138 -141 -142 -155 -155 -167 -161 -261 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 44: (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) 900 849 16.0% Total +1,779 820 (+3.6%) Total
Slide 45: (Ref.) External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2019 2020 2021 2018 2019 2020 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 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 37,132 31,238
Slide 46: (Ref.) Overseas competitors
(Ref.) Overseas competitors Competitors have high market capitalization due to their user shares in each country. Market Cap. As of December, 2020 As of September, 2021 (Forecast) ¥6.191.1 bil. [Rightmove, UK] [LIFULL, JP] Market Cap. Revenue ¥39.1 bil. Revenue ¥38.4 bil. ¥776.3 (YoY+8%) Operating b
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 2019 Other Information about LIFULL Twitter Facebook Page Japanese https://lifull.com/ir/ir-data/fy2019/ English h

LIFULL — Q2 FY2021/9 Earnings Presentation on 6ix

Lifull Co.ltd — Q2 FY2021/9 Earnings Presentation

Slide 1: Second Quarter Results FY2021/9 Q2

Slide 2: Index

Slide 3: Second Quarter Financial Results

Slide 4: Condensed Statements of Income and Loss

Slide 5: Revenue / Income and Loss by Segment

Slide 6: Condensed Statement of Financial Position and Goodwill

Slide 7: Condensed Statement of Cash Flow

Slide 8: FY2021/9 Forecast and Progress

Slide 9: Focal Points of the Mid-Term Management Plan

Slide 10: Segment Update: HOME'S Services

Slide 11: Key Performance Indicators Client Network and ARPA

Slide 12: New Features to Help Users Find the Right Home

Slide 13: Active Promotion to Drive Media Capacity

Slide 14: Growth in LIFULL HOME'S Traffic and Inquiries

Slide 15: Omnichannel Strategy Progress Sumai No Madoguchi

Slide 16: Digital Transformation of the Real Estate Industry Online Sales Transactions

Slide 17: Finding Solutions to Social Issues in Real Estate FRIENDLY DOOR

Slide 18: Segment Update: Overseas

Slide 19: LIFULL CONNECT Business Operations

Slide 20: LIFULL CONNECT Increased Value for Clients

Slide 21: LIFULL CONNECT Constructing a Multi-Brand Marketplace

Slide 22: LIFULL CONNECT Growing our Overseas Portals

Slide 23: LIFULL CONNECT Leveraging Multimedia to Boost Traffic

Slide 24: Proppit Impact and Key Regions for Expansion

Slide 25: Segment Update: Progress in Other Key Areas

Slide 26: Regional Revitalization Activities LivingAnywhere Commons

Slide 27: Services for Senior Citizens LIFULL senior

Slide 28: Management Philosophy

Slide 29: LIFULL Group Management Policy

Slide 30: Best Motivation Company Award 2021

Slide 31: Make every LIFE FULL

Slide 32: Appendices

Slide 33: Corporate Information (as of March 31, 2021)

Slide 34: LIFULL HOME'S

Slide 35: Primary Group Companies

Slide 36: Segments and Primary Services

Slide 37: Annual Revenue and Timeline of Company Growth

Slide 38: Consolidated Statements of Profit and Loss Quarterly

Slide 39: Expense-to-Revenue Ratio

Slide 40: Quarterly Results LIFULL CONNECT

Slide 41: Overseas Segment Results Segment Profit and Loss

Slide 42: Other Businesses Segment Sales Revenue (Quarterly)

Slide 43: Other Businesses Segment Profit and Loss (Quarterly)

Slide 44: (Ref.) Base Results of the 2018 Housing and Land Survey

Slide 45: (Ref.) External Market Data Monthly

Slide 46: (Ref.) Overseas competitors

Slide 47: IR Team Contact Information