Lifull Co.ltd. · TSE:2120
Lifull Co.ltd — NEXT Co., Ltd. (now LIFULL Co., Ltd.) — Q1 FY2015/03 Earnings Presentation
80 slides from Lifull Co.ltd's earnings presentation, Aug 11, 2014
Slide 1: Annual Report of Financial Statement, Q1 Year Ended March 31, 2015
Designing Delightful Encounters NEXT Co., Ltd. TSE 1st section 2120 Annual Report of Financial Statement First Quarter of Year Ended March 31, 2015 (April 2014 to June 2014) Opinions and forecasts expressed in this document are those of management as of the date of publication and management does no
Slide 2: Agenda
› Outline of 2013 Housing and Land Statistics Pages 3-5 Survey Preliminary Results › Business Strategies for the Fiscal Year Ending Pages 6-18 March 31, 2015 (Revisit) › Key Points Page 19 › Financial Results for the First Quarter of the Pages 20-31 Year Ending March 31, 2015 › Our Initiatives for t
Slide 3: Outline of 2013 Housing and Land Statistics Survey Preliminary Results
Outline of 2013 Housing and Land Statistics Survey Preliminary Results 3
Slide 4: Total numbers of homes and households in Japan hit record highs
Outline of 2013 Housing and Land Statistics Survey Preliminary Results The total numbers of homes and households in Japan both hit record highs. Total numbers of homes and households in Japan 7,000 Up 3.05 million Total number of 6,063 6,000 homes 5,759 Total 5,389 number of 5,025 5,000 4,588 househ
Slide 5: Number and ratio of vacant homes in Japan
Outline of 2013 Housing and Land Statistics Survey Preliminary Results The number and ratio of vacant homes in Japan also both hit record highs. NEXT expects to experience growing needs for property advertising. Number and ratio of vacant homes in Japan 9,000 15.0% 13.5% Ratio of vacant Breakdown of
Slide 6: Business strategies for the fiscal year ending March 31, 2015
Business strategies for the fiscal year ending March 31, 2015 6
Slide 7: Medium-Term Strategy Slogan
Medium-Term Strategy Slogan NEXT Group medium-term business strategies Our medium-term strategy slogan is "Aiming to be a global company through DB and CCS*" *Database + communication & concierge service CCS Communication & concierge service Recommendations to support the decisions of those pushing
Slide 8: Medium- and Long-Term Business Objectives
Medium- and Long-Term Business Objectives NEXT Group medium-term business strategies We aim to be the undisputed No. 1 in real estate and housing information website, both in quality and volume No. 1 in total properties listed No. 1 in ease-of-use Goals No. 1 in user numbers No. 1 in accuracy of inf
Slide 9: Fiscal 2015/03 is a year for expanded investment
Fiscal 2015/03 is a year for expanded investment 9
Slide 10: Medium- and Long-Term Outlook
Medium- and Long-Term Outlook Business strategies for the fiscal year ending March 31, 2015 (Revisit) Gain 40% of the market and make HOME'S an essential element of life. Share of all relocating users Overabundance Share of users using of real estate information online relocation 40 websites service
Slide 11: Investment Outlook
Investment Outlook Business strategies for the fiscal year ending March 31, 2015 (Revisit) Prioritize the domestic real estate market and invest in long-term growth Existing services New services New markets Overseas Information real estate services information outside of real estate services 3rd pr
Slide 12: Investment Outlook
Investment Outlook Business strategies for the fiscal year ending March 31, 2015 (Revisit) Prioritize the domestic real estate market and invest in long-term growth Existing services New services New markets > Speed up PDCA cycles > Speed up PDCA cycles - Lococom - Increase property numbers in curre
Slide 13: Real Estate Segment Tactics Outlook
Real Estate Segment Tactics Outlook Business strategies for the fiscal year ending March 31, 2015 (Revisit) Support both users and customers, and maximize closing rates Bring customers to Gaining more customers websites Maximizing user numbers Property searching Depart Improve products Visit again I
Slide 14: Overseas Business Tactics Outlook
Overseas Business Tactics Outlook Business strategies for the fiscal year ending March 31, 2015 (Revisit) Continue investment into overseas business to achieve medium- and long- term growth › We are currently building highly-versatile websites for many nations and languages using SEO techniques deve
Slide 15: The situation of the overseas competitor
The situation of the overseas competitor [NEXT,JP] Sales 14.6 [Zillow,US] [Rightmove,UK] Operating profit 2.2 Sales 20.1 Sales 19.0 Net profit 1.3 Operating profit 1.7 Operating profit 13.2 Market cap 40.3 Net profit 1.2 Net profit 10.1 Market cap 588.8 Market cap 379.2 [Trulia,US] Sales 14.6 Operat
Slide 16: New Business (Non-Real Estate) Tactics Outlook
New Business (Non-Real Estate) Tactics Outlook Business strategies for the fiscal year ending March 31, 2015 (Revisit) Continue creating peripheral services related to real estate and housing information and generating new business › Enhance existing services (insurance agency information, local inf
Slide 17: Medium- and Long-Term Growth Outlook
Medium- and Long-Term Growth Outlook Business strategies for the fiscal year ending March 31, 2015 (Revisit) Establish NEXT as No. 1 in market share for users of online relocation services and aim for operating profit ratio of 25%. 35 ,000 40 .0% 30 ,000 Sales 35 .0% Operating profit Operating profi
Slide 18: Medium- and Long-Term Business Objectives
Medium- and Long-Term Business Objectives Business strategies for the fiscal year ending March 31, 2015 (Revisit) ›Medium- and Long-Term Objectives (Financial Indicators) 1. Aim to achieve 25% operating profit margin 2. Improve productivity 3. Return profits to shareholders through continuous divide
Slide 19: Financial Results for the First Quarter of the Year Ending March 31, 2015
Financial Results for the First Quarter of the Year Ending March 31, 2015 19
Slide 20: Key Points
Key Points The real estate information service business performed strongly Consolidated sales for the first quarter of the year ending March 31, 2015 grew 13.4 year on year Operating profit for the quarter declined 17.5% as a result of the Company’s strategic investment programs Property information
Slide 21: Key indicators
Key indicators Financial Results for Q1 of the Year Ending March 31, 2015 Sales (million yen) Operating profit (million yen) Net profit (million yen) 3,852 862 516 3,398 712 2,737 418 521 297 133 FY03/2013 143 FY03/2014 153 FY03/2015 133 143 153 133 143 153 FY03/2013 FY03/2014 FY03/2015 FY03/2013 FY
Slide 22: Trends in the total number of properties listed
Trends in the total number of properties listed 5,0 00, 000 Total properties listed 12 ,000 4,5 00, 000 No.1 (*1) 11 ,000 4,0 00, 000 10 ,000 3,5 00, 000 9,0 00 3,0 00, 000 Comparison with major websites Rentals and real estate sales 8,0 00 (*2) 2.0 4.33 million properties 2,5 00, 000 million proper
Slide 23: Simple Profit & Loss Statement
Simple Profit & Loss Statement Financial Results for Q1 of the Year Ending March 31, 2015 Sales grew 13.4%, operating profit declined 17.5% and net profit decreased 19.0% year on year, respectively Percentage Change FY03/2014 FY03/2015 change (Unit: Million yen) (Year-on- (Apr – Jun) (Apr – Jun) (Ye
Slide 24: Sales breakdown
Sales breakdown Financial Results for Q1 of the Year Ending March 31, 2015 Although having deteriorated due to its strategic advertising expenditure, the Company’s profit margin was in line with its period-start plan Quarter Cost of sales and other selling, general & administrative (SG&A) expenses A
Slide 25: Sales by service category
Sales by service category Financial Results for Q1 of the Year Ending March 31, 2015 Sales for Rental & Real Estate Trade grew 15.6% year on year, supported by the increasing numbers of property inquiries and affiliated stores, although New Houses, Custom-Built Houses, and Renovations were adversely
Slide 26: Profit and loss by segment
Profit and loss by segment Financial Results for Q1 of the Year Ending March 31, 2015 Operating profit for the Real Estate Information Services business declined 18.7% year on year, and operating loss for Other Businesses decreased year on year Percentage Change change (Unit: Million yen) FY03/2014
Slide 27: Consolidated balance sheet and goodwill
Consolidated balance sheet and goodwill Financial Results for Q1 of the Year Ending March 31, 2015 Net assets per share grew 1.5% year on year while interest-bearing debt remained zero End of Previous [Current Quarter] (Unit: Million yen) Year Jun 30, 2014 Change Percentage change Main reasons for c
Slide 28: Cash flow
Cash flow Financial Results for Q1 of the Year Ending March 31, 2015 The balance of cash and cash equivalents as of June 30, 2014 stood at 7,300 million yen, an increase of 100 million yen year on year, and at 8,300 million yen including time deposits FY03/2014 FY03/2015 FY03/2014 FY03/2015 Unit: Mi
Slide 29: Smart Device Enhancement
Smart Device Enhancement Topics in Q1 of the Fiscal Year Ending March 31, 2015 Smart device-compatible services released one after another App Sites for Smartphones Revamped HOME’S iOS app, boasting the largest number of properties posted, upgraded. HOME’S app for the visually HOME'S Nursing HOME'S
Slide 30: New Services Released
New Services Released Topics in Q1 of the Fiscal Year Ending March 31, 2015 New smartphone-compatible services launched! You can easily search properties thanks to 360- degree panoramic images. A 10-year warranty is granted for facilities of new houses to provide peace of mind after moving in. A 10-
Slide 31: Distribution of Real Estate Market Reports
Distribution of Real Estate Market Reports Topics in Q1 of the Fiscal Year Ending March 31, 2015 HOME’S Research Institute releases a report on the existing house and home renovation market which is expected to grow. Profile of Head of Summary of Existing House/Home Renovation Market Report HOME’S R
Slide 32: Initiatives for Q2 of the Fiscal Year Ending March 31, 2015 and Beyond
Initiatives for Q2 of the Fiscal Year Ending March 31, 2015 and Beyond 32
Slide 33: Branding Promotion Enhancement
Branding Promotion Enhancement Initiatives for Q2 and Beyond Expand channels, areas and ad placement compared to the previous quarter, thereby boosting user share. TV commercials TV commercials fromAug.18 OOH OOH YouTube YouTube Mini TV program to be fromAug.18 provided Campaign from Aug. 9 Campaign
Slide 34: Branding Promotion Enhancement
Branding Promotion Enhancement Initiatives for Q2 and Beyond Implement branding promotion continuously while measuring effects. Image of boosting the consumer recall rate (3) Raise the consumer recall rate. à Continuous branding P (2) Curb the forgetting rate. A D à OOH, mini TV programs, etc. C P (
Slide 35: Cycle of Advertising Activities
Cycle of Advertising Activities Initiatives for Q2 and Beyond Boost the consumer recall rate through branding, thereby increasing the effect of ads and user share. Increase the Effect of Branding Ads Drawing Web Visitors Cycle of Advertising Activities to Boost User Share Increase User Share Boost C
Slide 36: HOME'S Billing Rate Revision for Rentals and real estate sales
HOME’S Billing Rate Revision for Rentals and real estate sales Initiatives for Q2 and Beyond Partially revise billing rates for inquiries about “Rentals and real estate sales”. Boost the lowest rates to further increase investments in ads, thereby boosting inquiries and sales. Rental Property Billin
Slide 37: HOME'S Renovation Billing Rate Revision
HOME’S Renovation Billing Rate Revision Initiatives for Q2 and Beyond “Home Renovation” website revamped, with word of mouth, assessment information and congratulatory money services launched. After Before The screen is subject to change as it is under development. Content of the New Website Feature
Slide 38: HOME'S Renovation: Shifting to pay-per-contract
“HOME’S Renovation”: Shifting to pay-per-contract Initiatives for Q2 and Beyond Aim to achieve increased profits by shifting to the pay-per-transaction scheme from pay-per- inquiry scheme Home renovation fee charging scheme From October 1, 2014 Base monthly fee: Tender fee: 500 yen Contract fee: Wor
Slide 39: New Services Tailored to Real Estate Agents to be Released
New Services Tailored to Real Estate Agents to be Released Initiatives for Q2 and Beyond Launch industry-specific DMP* services targeting real estate agents. Optimize the effect of customers’ web ads, thereby helping them increase closing rates and sales. * DMPData Management Platform Real Estate So
Slide 40: Investment in an internet venture
Investment in an internet venture Initiatives for Q2 and Beyond Made a capital contribution to Glue-th, Inc., the operator of the “Mechika” 15-second video SNS service Video SNS application “Mechika” Sample video Outline of SNS application Mechika About 15- second video SNS “Mechika” URL http://mech
Slide 41: Our Strength
Our Strength Initiatives for Q2 and Beyond The Source of Growth: Shared vision x Corporate climate to take up challenges x Thorough PDCA management Do Plan Self-manufacturing-based Planning of services/ development/design/ websites marketing organization Thorough PDCA Management Check Action R Preci
Slide 42: Our Strength
Our Strength Initiatives for Q2 and Beyond Stick to self-manufacturing, with productive staff accounting for the largest part of the workforce. Workforce Composition Productive Staff: Planners, Others: engineers, International projects, designers, new projects, Productive marketers, administration,
Slide 43: Strengthen efforts to develop human resources
Strengthen efforts to develop human resources Initiatives for Q2 and Beyond Focus on human resource development in order to provide No.1 services 38
Slide 44: Initiatives to Bolster Human Resources
Initiatives to Bolster Human Resources Initiatives for Q2 and Beyond Aiming to become the No. 1 company in terms of job satisfaction, share vision and business strategies periodically. Case: A Companywide General Meeting in July 2014 (1) A companywide general meeting is held monthly, where (2) The P
Slide 45: Strengthen efforts to develop human resources
Strengthen efforts to develop human resources Initiatives for Q2 and Beyond In-house meeting at the Tokyo office 45
Slide 46: NEXT's aim is to locate residences of the near future
NEXT’s aim is to locate residences of the near future 46
Slide 47: Strengthen efforts towards new technology
Strengthen efforts towards new technology NEXT Group's medium-term business strategies NEXT’s aim is to locate residences of the near future 47
Slide 48: Smart Key Systems
Strengthen efforts towards new technology NEXT Group's medium-term business strategies Unlocking Doors with Smartphone ”Smart Key Systems” 48
Slide 49: Room VR
Strengthen efforts towards new technology NEXT Group's medium-term business strategies A virtual sneak peek app “Room VR” It was introduced on Monday June 9, 2014 on TV Tokyo "WBS". 49
Slide 50: 3D camera Matterport
Strengthen efforts towards new technology NEXT Group's medium-term business strategies 3D camera “Matter port” 50
Slide 51: Property Search Map using tangible user interface
Strengthen efforts towards new technology NEXT Group's medium-term business strategies “Property Search Map” utilizing a tangible user interface 51
Slide 52: Mission statement and management philosophy
Mission statement and management philosophy 52
Slide 53: Designing Delightful Encounters
Designing Delightful Encounters 53
Slide 54: Inquiries Regarding IR Data
Inquiries Regarding IR Data IR official account on Twitter Official Facebook page IR mail magazine Contact us Guide to IR News NEXT Co., Ltd. IR Support Desk We provide monthly performance data and timely disclosure data Tel: +81-3-5783-3603 (Monday to Friday 10:00AM-6:00PM) in good time! Fax: +81-3
Slide 55: Reference data
Reference data Copyright(c) NEXT Co., Ltd. All Rights Reserved. 55
Slide 56: Corporate Data
Corporate Data Company overview Company Name NEXT Co., Ltd. (TSE 1st section: 2120) Representative Takashi Inoue, President and CEO Established March 12, 1997 (Fiscal year ending March 31) Capital 1,999 million yen Stock Issued 56,469,000 (including 36,536 shares of treasury stock)* Consolidated Num
Slide 57: President's Profile
President's Profile Reference data Career History Joined Recruit COSMOS Co., Ltd. April, 1991 Responsible for condominium sales and circulated property brokering. Temporarily dispatched to the Recruit General Personnel Business Department. This move was later made permanent. July, 1991 Primarily eng
Slide 58: 3 Years in Review — Results of Structural Reform
3 Years in Review — Results of Structural Reform (Performance) Structural reform is ushering in the second stage of growth. Revenues and profits have never been higher. Sales Operating profit Operating profit ratio Structural reform period Number of employees (consolidated) 58
Slide 59: Introduction to HOME'S
Introduction to “HOME'S” Company overview 59
Slide 60: Introduction to HOME'S
Introduction to “HOME'S” Company overview Rent We provide a property search application for persons with visual impairments 60
Slide 61: Introduction to HOME'S
Introduction to “HOME'S” Company overview 16
Slide 62: Introduction to HOME'S
Introduction to “HOME'S” Company overview 62
Slide 63: Introduction to HOME'S: Growing in Asia
Introduction to “HOME'S” Company overview Growing from Japan to become the best real estate and housing information provider in Asia. Taiwan (12.2% stake) Thailand (99.9% stake) Indonesia (50.0% stake) 63
Slide 64: Introduction to MONEYMO
Introduction to “MONEYMO” Company overview Insurance agency search and appointment website “MONEYMO” provides various services to help users reconsider their finances such as sign up for consultation on life insurance. n More than 1000 stores across the country n Various insurance information n Mort
Slide 65: Introduction to Lococom
Introduction to “Lococom” Company overview Local information website “Lococom” provides a place for “people” and “stores” to communicate using their “neighborhood” as the focal point. n Information on 5.65 million stores, 270,000 reviews n Transmission and acquisition of local information n Local ex
Slide 66: Introduction to HOME'S Style Market
Introduction to “HOME'S Style Market” Company overview Furniture/interior EC website “HOME'S Style Market” is an interior EC website where you can select from interior styles. Rather than simply choosing the furniture, you can make a selection while looking at photos of rooms in a catalog-like displ
Slide 67: Services for Real Estate Industry
Services for Real Estate Industry Company overview CRM services for realtors Real estate website creation service 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 conv
Slide 68: IR Policy Changes (Revisit)
IR Policy Changes (Revisit) We have changed the policy from the earnings forecast for the year ended March 31, 2015 68
Slide 69: IR Policy Changes
IR Policy Changes (Revisit) Change IR policy to make investment decisions easier › (1) From a conservative forecast to a neutral one › (2) Reevaluate net sales categories according to service › (3) Issue monthly reports for all services (= consolidated net sales) 69
Slide 70: From a conservative forecast to a neutral one
IR Policy Changes (Revisit) To the extent possible, take into account the external business environment, investment effectiveness, etc. when issuing performance forecasts. (1) From a conservative forecast to a neutral one Until now From now - Adopt a conservative stance - Adopt a neutral stance and
Slide 71: Reevaluate net sales categories according to service
IR Policy Changes (Revisit) Disclosure categories will also change in accordance with site integration and medium-term strategy investment categories. (2) Reevaluate net sales categories according to service Until now From now Real estate Real estate information information service service business
Slide 72: Issue monthly reports for all services
IR Policy Changes (Revisit) Performance reports released every month on the 20th for only three services will be expanded to all services. (3) Issue monthly reports for all services (= consolidated net sales) Until now From now (1) Rentals and real estate sales Real (2) Newly-constructed lots Real e
Slide 73: Simple Profit & Loss Statement: Forecasts FY2015/03
Simple Profit & Loss Statement Performance forecasts for the FY2015/03 Sales will increase 17.4%, and operating profit will increase 1.2% due to investment towards future growth. FY2013/03 FY2014/03 FY2015/03 Percentage Unit: million yen Change (Actual) (Actual) (Forecast) change Sales 11,962 14,690
Slide 74: Sales Composition
Sales Composition Performance forecasts for the FY2015/03 Advertising fees will comprise around 30% of revenues, and the operating profit ratio will drop 2.2% due to up-front investments. Full Year 2.8p 30.4% 28.0% Decline 30.8% 0.7p Improve ment FY03/2013 FY03/2014 FY03/2015 (Forecast) Cost of sale
Slide 75: Sales According to Service
Sales According to Service Performance forecasts for the FY2015/03 Goals: increase real estate information service revenue by 15.5% and revenue from rentals and real estate sales by 20.4% FY2013/03 FY2014/03 FY2015/03 Percentage Unit: Million yen Change (Actual) (Actual) (Forecast) change Sales 11,9
Slide 76: Simple Profit & Loss Statements, Sales According to Service (1H & 2H)
Simple Profit & Loss Statements, Sales According to Service (1H & 2H) Simple profit and loss statement Sales according to service FY2014 FY2014 FY2015 FY2015 FY2014 FY2014 FY2015 FY2015 Unit: million yen 1H 2H 1H 2H Unit: million yen 1H 2H 1H 2H (Actual) (Actual) (Forecast) (Forecast) (Actual) (Actu
Slide 77: Dividend Forecasts
Dividend Forecasts Performance forecasts for the FY2015/03 The current dividend payout ratio is 20%. This will increase by 0.18 yen (4%). 6.00 50 .0% Dividends per share Dividend payout ratio 4.92 yen 45 .0% 5.00 4.74 yen 40 .0% 35 .0% 4.00 30 .0% 3.00 25 .0% 2.2 yen 20 .0% 2.00 15 .0% 1.2 yen 10 .0
Slide 78: Quarterly consolidated statements of income
Quarterly consolidated statements of income FY03/2012 FY03/2013 FY03/2014 FY03/2015 Unit : million yen Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Sales 2,357 2,462 2,486 3,012 2,737 2,763 2,939 3,522 3,398 3,454 3,556 4,281 3,852 Real estate information 2,337 2,438 2,462 2,983 2,709 2,736 2,911 3,494 3,
Slide 79: Real estate market data: apartments for sale, migrants, new builds
Number of Apartments for sales (Monthly) Source : Real Estate Economic Institute Co., Ltd. Unit Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 4,093 4,967 4,888 5,306 4,145 5,970 3,506 5,006 8,246 1,826 2,651 4,641 2,473 4,300 3,503 -2.8% 49.
Slide 80: IR Activities for the Year
IR Activities for the Year Q1 Q2 Q3 Q4 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar March Monthly report for April Monthly report for May Monthly report for June Monthly report for July Monthly report for August Monthly report for September Monthly report for October Monthly report for November M
NEXT Co., Ltd. (now LIFULL Co., Ltd.) — Q1 FY2015/03 Earnings Presentation on 6ix