Slide 1: First Quarter Results FY2022/9 Q1
LIFULL Co., Ltd. First Quarter Results IFRS FY2022/9 Q1 (October 2021 – December 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 va
Slide 2: Index
Index 1. Main Points for FY 2022/9 First Quarter P2 2. FY 2022/9 First Quarter Financial Results P5 3. Transformation of LIFULL HOME'S P 12 4. Overseas Strategy P 17 5. Acquisition of Properati P 21 6. Appendices P 28 7. IR Team Contact Information P 43 1
Slide 3: Main Points for FY 2022/9 First Quarter
Main Points for FY 2022/9 First Quarter FY 2022/9 First Quarter Earnings Revenue ¥8.5 Billion YoY +2.9% +24.1% YoY growth Overseas driving overall growth ¥0.5 Billion Due to increased SG&A expenses from Profit YoY -24.1% proactive growth investments in LIFULL HOME'S TOPICS Transformation of Expansio
Slide 4: Period of Investment FY 2022/9
FY 2022/9 PERIOD OF INVESTMENT 3
Slide 5: Areas of Investment During FY 2022/9
Areas of Investment During FY 2022/9 Making growth investments focused around LIFULL HOME'S GROWTH INVESTMENTS PEOPLE SERVICE PROMOTION Hiring Service Development Brand Awareness Personnel (YoY) System-Related Costs (YoY) Advertising Spending (YoY) 1, 2 1 1 Approx. +13% Approx. +17% Approx. +14% Foc
Slide 6: First Quarter Financial Results
FY 2022/9 First Quarter Financial Results (October 1, 2021 – December 31, 2021) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 5
Slide 7: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Growth in Overseas subsidiary, LIFULL CONNECT, revenue driving overall growth (+2.9%.) Lower operating income YoY due to proactive growth investments in LIFULL HOME'S. FY2021 Q1 FY2022 Q1 Change Change % Unit: JPY mil. (Oct.-Dec.) (Oct.-Dec.) Revenue 8,27
Slide 8: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS Reduced revenue in HOME'S Services due to sluggish recovery in new build market and adjustments after change in pricing scheme and reduced profit due to growth investments. However, Overseas markets returning to pre-COVID levels with increased revenue and pr
Slide 9: Key Performance Indicators Client Network and ARPA
Key Performance Indicators Client Network and ARPA Our client network continues to progress smoothly in the custom-built, re-sale and investment markets, but the increase in clients and decrease in revenue have had a negative impact on ARPA. 3-Month Average 3-Month Average Client Network ARPA (JPY)
Slide 10: Condensed Statement of Financial Position and Goodwill IFRS
Condensed Statement of Financial Position and Goodwill IFRS As of As of Change Change Main items Unit: JPY mil. Sep 30, 2021 Dec 31, 2021 % Current assets 21,544 21,001 -543 -2.5% Cash -962 Refer to "Condensed Statement of Cash Flows" Accounts Receivable - Trade -478 Inventory Assets +292 Primarily
Slide 11: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS Cash and cash equivalents decreased by ¥0.9 billion to ¥12.1 billion due to decreases in inventory assets, bonus payments and repayment of loans. FY2021 Q1 FY2022 Q1 Change Main items Unit: JPY mil. (Oct.-Dec.) (Oct.-Dec.) Items FY2021 Q1 FY2022 Q1 Profit for th
Slide 12: FY 2022/9 Forecast and Progress IFRS
FY 2022 /9 Forecast and Progress IFRS Condensed Statements of Income and Loss Revenue by Service FY2022 FY2022 Q1 FY2022 FY2022 Q1 Oct.-Sep. Oct.-Dec. Oct.-Sep. Oct.-Dec. Progress Progress [Full-Year [Full-year Unit: JPY mil. [Actual] Unit: JPY mil. [Actual] Forecast] forecast] Revenue 39,000 8,510
Slide 13: Transformation of LIFULL HOME'S
Transformation of LIFULL HOME'S － Becoming a Super Hyper Assistant － Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 12
Slide 14: Super Hyper Assistant Expanding Capabilities and Features
SUPER HYPER ASSISTANT Expanding Capabilities and Features We are adding new features to give users a new way to search for properties and find the right new home. These new search experiences are translating into higher user satisfaction and more traffic. Nice-To-Have Searches Users can set search f
Slide 15: Progress in Omnichannel Support
Progress in Omnichannel Support Expansion of Sumai No Madoguchi Locations New LIFULL HOME'S Sumai No Madoguchi Locations opened with considerable increase in local consultations. 2 OPEN New Locations 1 Osaka Sakai Nov. 13, 2021 29 Nationwide Locations Kita-Hanada New location to boost (As of Dec. 31
Slide 16: Actions to Increase Brand Recognition
Actions to Increase Brand Recognition We are measuring the impact of our promotions to further improve brand recognition as we increase advertising investments. On-Going Commercials More YouTube Videos Active Promotion to Raise Awareness of our Timing Videos introducing the most Transformation FY 20
Slide 17: Promotion for the Peak Moving Season in Japan
Promotion for the Peak Moving Season in Japan New commercials across different advertising channels for the peak moving season Heaps of Homes-kuns 6 Different Versions January 14, 2022 of commercials and online videos On-air since Broader Reach Focus on Search Features and Convenience of LIFULL HOME
Slide 18: Overseas Growth Strategy
Overseas Growth Strategy Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 17
Slide 19: LIFULL CONNECT Growth Strategy Services Tailored to Each Market
LIFULL CONNECT Growth Strategy Services Tailored to Each Market We adapt services across our regions based on the needs and potential of local markets. Service Regions of Model Information collected from multiple portals Aggregation Aggregate LIFULL CONNECT View LIFULL CONNECT Listings Listings Inqu
Slide 20: Areas for Real Estate Portals
Areas for Real Estate Portals Moving To Direct Strengthening our real estate portals in regions where more people are beginning to search for new homes online. LIFULL CONNECT Criteria for Portal Regions Service Area & Focus Regions Portal Expansion 1 More people searching for real estate online 2 Ex
Slide 21: Growth Strategy for Overseas Portals
Growth Strategy for Overseas Portals We are leveraging the advantages of both aggregation sites and local real estate portals to provide more value to users and clients for overall growth. Aggregation Real Estate Sites Portals More Sales Team Users Client Network Traffic GROWTH Technology More More
Slide 22: Acquisition of Properati
Acquisition of Properati －Growth in South America－ Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 21
Slide 23: Growing our Network Acquisition of Properati
Growing our Network Acquisition of Properati In January 2022, we completed the acquisition of Properati, a network of real estate portals across South America. OVERVIEW BUSINESS RESULTS Est. 2012 FY 2020 HQ Argentina Revenue US$3.6 million Local sales teams in Colombia, Ecuador and Peru Business Are
Slide 24: Acquisition of Properati Active Markets and Synergy
Acquisition of Properati Active Markets and Synergy Since LIFULL CONNECT offers services in many of the regions where Properati is active, we are creating synergies between the client network of Properati and team members for better overall efficiency. Properati's Active Markets & LIFULL CONNECT Ser
Slide 25: Client Base Comparison to LIFULL CONNECT Real Estate Portals
Client Base Comparison to LIFULL CONNECT Real Estate Portals We have effectively expanded our client network, as there is almost no overlap between paying clients in LIFULL CONNECT and Properati. Paying Clients 3.7x Only 6% Overlap Very little overlap with the RESEM More Paying Clients portal networ
Slide 26: Strengthening the Sales Team
Strengthening the Sales Team By bringing the sales staff of Properati into LIFULL CONNECT, we have strengthened our local sales teams to continue to efficiently grow our client network. Sales Staff in South America Approx. Sales More Strong 60 Team Members Team Local Local About Members Offices Conn
Slide 27: Connection to Proppit Advantages for Real Estate Professionals
Connection to Proppit Advantages for Real Estate Professionals We are integrating Properati clients into Proppit, our marketing solution for real estate professionals, to give them access to the enormous traffic of the LIFULL CONNECT Network and increase the overall listings available for users. Lis
Slide 28: Make Every LIFE FULL
m7 L_, LIFULL Make Every LIFE FULL 27
Slide 29: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 28
Slide 30: Corporate Information (as of December 31, 2021)
Corporate Information (as of December 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
Slide 31: 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 32: 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 Care LIF
Slide 33: Segments and Primary Services
Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) HOME'S Services NabiSTAR Advertising & Consulting Agency (LIFULL Marketing Partners Co., Ltd.) Kenbiya (Kenbiya Co., Ltd.) Trovit (LIFULL CONNECT) Mitula (LIFULL CONNECT) Nestoria (LIFULL CONNECT) RESE
Slide 34: 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 (irregular 6-month period) 39.0 Changed company name to LIFULL Co., Ltd. 35 Acquisition of LIFULL MP 30 Acquisition of LITTEL Acquisition 25 (Merged in 2011) of Trovit Ove
Slide 35: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly FY2018 FY2019 FY2020 FY2021 FY2022 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue 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 9,581 9,072 8,931 8,510 HOME'S Services 6,742 8,062 6,833 6
Slide 36: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Growth investments primarily for the transformation of LIFULL HOME'S resulting in increase in advertising. Despite hiring of new employees, personnel expenses decreased due to link between employee bonus provisions and operating profit. 12.5% -0.4pt 12.1% -0.7pt 11.4% -
Slide 37: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT Continued recovery of aggregation revenue driving overall recovery. Results from LIFULL CONNECT* in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR 13,843 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 Q3 Q4 Q1 FY2015/3 F
Slide 38: Overseas Segment Results Segment Profit and Loss (Quarterly Trend)
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 ■ Dep
Slide 39: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) Existing businesses driving revenue growth. Transfer of LHL Quarterly Revenue Unit: JPY mil. 583 ■ 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
Slide 40: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) Quarterly Segment Profit and Loss Unit: JPY mil. Transfer of LHL 85 ■ Existing businesses1 ■ Other new businesses 71 78 60 59 44 41 38 42 34 33 26 -97 -118 -138 -142 -155 -155 -167 -161 -223 -258 -261 -290 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4
Slide 41: (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) 820 (+3.6%) 849 +29 Total Total Dwellings (10,000 Units) 900 16.0% +1,779 6,24
Slide 42: (Ref.) External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2020 2021 2019 2020 2021 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 (Jan-Dec) (Jan-Dec) (Jan-Dec) △ Capital Region 31,238 27,228 33,636 686 393 1,543 2,0
Slide 43: (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 ¥1,413.7 bil. As of September, 2022 (Forecast) Market Cap. [Rightmove, UK] [LIFULL, JP] Revenue ¥26.9 bil. Revenue ¥39.0 bil. Operating Profit ¥1.7 bil.
Slide 44: IR Team Contact Information
IR Team Contact Information IR Site Japanese https://ir.LIFULL.com/ English https://ir.LIFULL.com/en/ TEL +81-3-6774-1603 E-mail ir@LIFULL.com (Weekdays 10:00 - 18:00 JST) Annual Report 2020 Other Information about LIFULL Twitter Facebook Page Japanese https://ir.lifull.com/ir/ir-data/report/ Englis