Lifull Co.ltd. · TSE:2120
Lifull Co.ltd — Q1 FY2020/09 Earnings Presentation
54 slides from Lifull Co.ltd's earnings presentation, September 2020
Slide 1: Quarterly Results (IFRS) FY2020/09 Quarter 1
LIFULL Co., Ltd. Quarterly Results (IFRS) FY2020/09 Quarter 1 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 various reasons. We provide
Slide 2: Index
Index 1. Main Initiatives for this Year Page 2 2. First Quarter Financial Results Page 4 3. Quarter Review Page 10 HOME’S Services Overseas Other Businesses 4. Appendices Page 33 5. IR Office Information Page 53 1
Slide 3: Our mission is helping people find the most important information for their lives
Our mission is helping people find the most important information for their lives 2
Slide 4: Main Initiatives this Year
Main Initiatives this Year Progressive LIFULL HOME’S LIFULL CONNECT Investments Strengthening Media Merging Management Presence Resources Regional Revitalization Expanding Omnichannel Emergence as a Real Estate Projects Approach Platform 3
Slide 5: First Quarter Financial Results
FY 2020/09 First Quarter Financial Results Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 4
Slide 6: Condensed Statements of Income and Loss (IFRS)
Condensed Statements of Income and Loss (IFRS) Revenue: +9.7% YoY EBITDA: -18.7% YoY Quarterly Profit: -49.7% YoY Unit: JPY mil. FY2019 Q1(Oct.-Dec.) FY2020 Q1(Oct.-Dec.) Change Change % Revenue 8,391 9,202 +810 +9.7% *1 Cost of revenue 1,048 1,116 +68 +6.5% SG&A (excl. depreciation and amortization
Slide 7: Revenue and Income and Loss by Segment (IFRS)
Revenue and Income and Loss by Segment (IFRS) Revenue increase in Overseas Segment resulting from the acquisition of Mitula Despite reduced profit from increased growth investment and depreciation of intangible assets, mostly on target FY2019 Q1 FY2020 Q1 Change Change Main items Unit: JPY mil. Oct.
Slide 8: Progress Toward FY2020/9 Goals (IFRS)
Progress Toward FY2020/9 Goals (IFRS) Condensed Statements of Income and Loss Revenue by Service FY2020 FY2020 Q1 FY2020 FY2020 Q1 Oct.-Sep. Oct.-Dec. Oct.-Sep. Oct.-Dec. [Full-year Progress [Full-year Progress Unit: JPY mil. [Actual] Unit: JPY mil. [Actual] forecast] forecast] Revenue 45,193 9,202
Slide 9: 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 resulting in +4.5 billion yen in total assets As of As of Change Change % Main items Unit: JPY mil. Sep 30, 2019 Dec 31, 2019 Cash Equivalents -1,819 Refer to "
Slide 10: Condensed Statement of Cash Flow (IFRS)
Condensed Statement of Cash Flow (IFRS) Partial payment and refinancing of short-term loans for the acquisition of Mitula FY2019 Q1 FY2020 Q1 Change Main items Unit: JPY mil. Oct.-Dec. Oct.-Dec. Items FY2019 Q1 FY2020 Q1 Profit for the period before tax +1,520 +928 Depreciation and amortization +266
Slide 11: Services
Services Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 10
Slide 12: Real Estate Database for Everyone
The service we want to provide Comprehensive Customizable Ensure Real Estate Features Current, Reliable Database for Everyone Information Find the right home for every lifestyle. 11
Slide 13: Moving Real Estate Online
An extensive database is just the beginning. We are changing the search experience by providing home-seekers with more comprehensive and accurate information. General Rent, size, layout, photos Moving Real Estate Online Neighborhood Transportation, education, commercial facilities Condition Home ins
Slide 14: Creating a Comprehensive Database - New Pricing Structure
Creating a Comprehensive Database －More Detailed Property Information－ New Pricing Structure Removed fees for major optional services and adjusted monthly membership and From October 2019 inquiry fees for realtors to encourage realtors to provide more property details. Removed fees for More and more
Slide 15: Customizable Features for Everyone - Personalized Property Pages
Customizable Features for Everyone －Personalized Property Pages－ Property information pages tailored to each individual user for resale condominiums and houses Personalized Home Mortgage Simulation for Resale Condominiums and Houses HOW IT WORKS 1 Answer background questions (age, income, occupation
Slide 16: Customizable Features for Everyone - Search by Lifestyle
Customizable Features for Everyone －Search by Lifestyle for a New Home－ Combine standard search filters with a lifestyle tags to find the ideal place to live – a new innovation on house hunting #快適なネット生活を送りたい #東京まで乗換なし #サウナ付き #セキュリティ対策 #DIYしてみたい #日当たり重視 Expanding Lifestyle Tag Search #浴室にテレビあり Tags
Slide 17: Customizable Features for Everyone - Sumai No Madoguchi
Customizable Features for Everyone －Sumai No Madoguchi Home-Seeker Support Counter－ Offering valuable assistance in-store and over the phone for home-seekers who want advice before vising realtors Sumai No Madoguchi 2 New Locations Contact Consultations 36 Stores Nationwide In-Store +34% Phone Fukuo
Slide 18: Customizable Features for Everyone - LIFULL HOME'S Official LINE Account
Customizable Features for Everyone －LIFULL HOME’S Official LINE Account－ Providing personalized assistance and information to users through a popular communication app 1 × LINE Consultations Property Recommendations Viewing Reminders Chat with specialists from After contacting a real estate Set remi
Slide 19: Customizable Features for Everyone - FRIENDLY DOOR
Customizable Features for Everyone －FRIENDLY DOOR－ Expanding search services for home-seekers with diverse backgrounds (nationality, age, sexual orientation, etc.) to connect with real estate agencies able to cater to their unique situations Results of the Partner Real Estate Agencies Online News Ar
Slide 20: Ensure Current, Reliable Information
Ensure Current, Reliable Information －Steps to Further Improve Information Accuracy－ Taking measures toward providing users with the most accurate property information available LIFULL HOME’S Listing Maintenance Assistant Tool Automatic Removal of Non-Vacant Properties (Provided as a Service to Memb
Slide 21: Overseas
Overseas Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 20
Slide 22: LIFULL CONNECT
LIFULL CONNECT Bringing together the management resources of two aggregators under one roof Founded November 2019 Services offered in 60 different countries with the largest real estate audience worldwide 21
Slide 23: LIFULL CONNECT - Management Assets
LIFULL CONNECT －Management Assets－ Expansion of partner network, users and listings as a result of integration Progress Towards Integration of Trovit and Mitula More Partners Partners 3,000 + Over 300% increase from Dec. 2018 More More Users Listings People Listings Approx. 1.8 bil. 400 mil. Over 80
Slide 24: Global Real Estate Platform
1 Integrate technology and knowhow to optimize CPC model in established markets 2 Global Real Estate Platform Maximize the potential of direct model portals in developing markets 3 Create a leading Global Real Estate Platform CPC Model 2019 2015 23
Slide 25: LIFULL CONNECT - Integrating Leaders in Aggregation
LIFULL CONNECT －Integrating Leaders in Aggregation－ Organic traffic growth due to the combination of technology and knowhow from Trovit and Mitula +6% 2018 2019 Total of organic traffic on all websites operated by LIFULL CONNECT for December 24
Slide 26: Synergy of LIFULL CONNECT
Synergy of LIFULL CONNECT Trovit B2B system successfully implemented into all Mitula sites to provide an even higher service quality BENEFITS Successful cross-brand system implementation 1 Visualization of traffic and campaigns across all platforms in real time 2 Shift from manual to automatic biddi
Slide 27: Promoting Partner Network Growth
Promoting Partner Network Growth Strengthening teams in Central and South America to accelerate expansion Brand Recognition and Building Connections across Southeast Asia Nearly Doubling Sales Staff in Key Regions to establish new connections with local partners and increase listings 4th Dot Propert
Slide 28: Other Businesses
Other Businesses Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 27
Slide 29: Other Businesses - Overview of Primary Services
Other Businesses －Overview of Primary Services－ Providing meaningful services for every lifestyle Regional Revitalization LIFULL Kaigo (Nursing Care) LIFULL FaM LIFULL Trunk Room Promoting lifestyles to help eliminate The largest search site for assisted Offices for working mothers where Largest sea
Slide 30: Regional Revitalization - Cooperations with Local Communities
Regional Revitalization －Cooperations with Local Communities－ More partnerships with municipalities and listings of vacant rural homes Vacant Home Revitalization LIFULL HOME’S Akiya* Bank Agreement with Shimoda, Shizuoka (Listing service for vacant rural homes) 静岡県 More listings nationwide 下田市 2019/
Slide 31: Regional Revitalization - Repurposing Vacant Homes
Regional Revitalization －Repurposing Vacant Homes－ Collaborations between LIFULL Group companies to repurposing vacant homes as vacation rentals and add additional value Before BUY FIX After RUN Opened in December 2019 Opened in January 2020 SELL JapanCraftHouse Wave House 99 LIFULL STAY Beppu Noda
Slide 32: Registered Vacation Rental Units
(Ref.) Rakuten LIFULL STAY Vacation rental listings on Vacation Stay steadily increasing. As of January 2020, listings also appear on Rakuten Travel – one of the most-viewed travel reservation sites in Japan. Registered Vacation Rental Units 26,338 5,670 Search and book on Rakuten Travel 31
Slide 33: LIFULL ArchiTech Founded
LIFULL ArchiTech Founded Researching and producing innovative living environments through a unique combination of Architecture + Technology Venture Utilizing Research from the Nagoya Institute of Technology Instant House Structures built in hours Reform and Renovation Temporary Possible Emergency Ap
Slide 34: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 33
Slide 35: Corporate info (as of December 30, 2019)
Corporate info (as of December 30, 2019) 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 Capital
Slide 36: LIFULL HOME'S
LIFULL HOME’S LIFULL HOME’S Real Estate and Housing Information Site https://www.homes.co.jp/ • Real estate listing website with the most listings in Japan. (According to a report by Sankei Advertising on January 7, 2019) • Apart from property listings, LIFULL HOME'S also features an in-house Qualit
Slide 37: Group Companies
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 INDONESIA*1 • Planning and operation of the service for Japanese resident officers assigned to Jakarta, LIFULL Concierge LIF
Slide 38: Segments and Primary Services
Segments and Primary Services Segments Main services HOME’S Services Business LIFULL HOME’S AD Master (former Renter’s Net) NabiSTAR LIFULL Marketing Partners Co., Ltd. Overseas Businesses Trovit (LIFULL CONNECT) Mitula (LIFULL CONNECT) Nestoria (LIFULL CONNECT) RESEM (LIFULL CONNECT) Dot Property (
Slide 39: Annual Revenue and Timeline of Company Growth
Annual Revenue and Timeline of Company Growth Acquisition of MItula JPY 100,000 450 Changed fiscal year (irregular 6-month period) 400 Changed company name to LIFULL Co., Ltd. 350 Acquisition of Overseas real LIFULL MP estate services launched 300 Acquisition of LITTEL (Merged in 2011) Acquisition o
Slide 40: 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 735 ■ HOME’S Services 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 inc
Slide 41: 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: Millions of yen 4.8% Other Businesses 34,565 32,112 22.0% Overseas※ 27,566 73.2% Services FY2018 FY2019 3 Peri
Slide 42: 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 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 HOME'S Services Business 5,616 5,782 5,95
Slide 43: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Increases in personnel costs due to LIFULL bonus and employee increases in Mitula -3.3pt -2.6pt +1.9pt 28.7% 26.0% 27.9% 32.0% Cost of Sales and Other SG&A -1.9pt 28.0% -0.2pt -0.3pt 29.9% 27.8% Advertising Expenses 30.2% Personnel Expenses -0.7pt 23.5% +4.1pt -1.3pt 24
Slide 44: Pricing Structure Revisions - Rental & Sale Properties
(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 ¥15,000 Company Inquiries Number of Inquiries × ¥5,000 Inquiries (e-mail / tel.
Slide 45: Effects from Pricing Structure Revisions
(Ref.) Effects from Pricing Structure Revisions －Trend of Clients with Rental and Sale Properties－ Client numbers have remained relatively stable since implementation of the pricing structure revisions - 0.3％ 月 9Sep. 0月 1Oct. 1月 1Nov. 2月 1Dec. 44
Slide 46: Quarterly Results - LIFULL CONNECT
Quarterly Results – LIFULL CONNECT – Steady growth despite effects from business acquisition and seasonality Results from LIFULL CONNECT* in EUR (■ Pre-consolidation results of Mitula Group) 16,561 Unit: 1,000 EUR Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2018 2019 2
Slide 47: Overseas Segment Results - Segment Profit and Loss
Overseas Segment Results –Segment Profit and Loss (Quarterly Trend)– Some services under improvement measures Intangible assets for Mitula have been defined and Depreciation costs determined 592 554 Quarterly Segment P&L ■ LIFULL CONNECT ■ International Division ■ Depreciation ■M&A Costs ■ Other Uni
Slide 48: 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. Maintaining ■ Existing businesses *2 ■ Other new businesses 432 Scale of Operations Founding of 4
Slide 49: Other Businesses - Segment Profit and Loss (Quarterly)
Other Businesses – Segment Profit and Loss (Quarterly) – Increases investments for the Regional Revitalization Business and smooth progress without regard to the sale of LHL Sale of LHL Quarterly Segment Profit and Loss Unit: JPY mil. 98 ■ Existing businesses* ■ Other new businesses 60 44 33 26 Inve
Slide 50: External Market Data - Monthly
(Ref.) External Market Data －Monthly－ 2017 2018 2019 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 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-Dec) (Jan-Dec) (Jan-Dec) Capital Region 35,898 37,132
Slide 51: Domestic Market Environment
(Ref.) Domestic Market Environment 01 02 03 04 Number of Real Estate Number of Licensed Real Number of Offices Size of Real Estate Listing Companies Estate Agencies 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
Slide 52: 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 (10,000 Units) +29 849 Total Dwellings(10,000 Units) 900 16.0% +1,779 820 Breakdown of Vacant Homes Total Households (1
Slide 53: Overseas competitors
(Ref.) Overseas competitors Competitors have high market capitalization due to their user shares in each country. [Rightmove, UK] Market Cap As of September, 2020 (forecast) Revenue JPY 35.3 bil. (YoY+10%） [LIFULL, JP] JPY 751.8 bil. Market Cap EBITDA JPY 26.7 bil. Net Revenue JPY 45 bil. EBITDA JPY
Slide 54: IR Office Information
IR Office Information IR Site Japanese https://LIFULL.com/ir/ English https://LIFULL.com/en/ir/ E-mail ir@LIFULL.com TEL +81-3-6774-1603 (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 https:/