Slide 1: Earnings Presentation IFRS, Fiscal Year Ended September 30, 2019
LIFULL Co., Ltd. Earnings Presentation IFRS Fiscal Year Ended September 30, 2019 (October 2018 to September 2019) 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
Slide 2: Index
Index 1. Key Points P02 2. Highlights P03 3. FY2019/9 Financial Results P04 4. LIFULL Group Growth Strategy P11 5. Change in IR Procedures P39 6. 2018 Housing and Land Survey P42 7. Appendices P47 8. IR Office Information P59
Slide 3: Key Points
Key Points 1. FY 2019/9： Revenue ¥39.2 billion (+13.7% YoY) (Record High for 8 Periods Running) EBITDA ¥5.3 billion (-0.4% YoY) 2. Actions Taken for Business Growth LIFULL HOME‘S Price Revision for rental and sale listings began in October 2019 Founding of LIFULL CONNECT in November 2019 to inte
Slide 4: Highlights
Highlights Revenue EBITDA EDITDA Margin Net Profit +13.7% -0.4% -1.9pt -17.5% ¥39.2 billion ¥5.3 billion 13.6% ¥2.3 billion (FY2018/9: ¥34.5 billion) (FY2018/9 ¥5.3 billion) (FY2018/9:15.6%) (FY2018/9: ¥2.8 billion) HOME’S Services Overseas Businesses Revenue Client Network Revenue Segment Revenue 2
Slide 5: Consolidated Financial Results for FY2019/9
Consolidated Financial Results for FY2019/9 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 was up +13.7% while EBITDA decreased by 0.4% from temporary M&A expenses etc. Unit: Millions of yen FY2018/9 FY2019/9 Change Change % Revenue 34,564 39,297 +4,732 +13.7% *1 Cost of revenue 3,879 4,559 +680 +17.5% *2 SG&A (excl. depreciation and am
Slide 7: Quarterly Performance History - Consolidated Revenue
Quarterly Performance History - Consolidated Revenue - Large gains in revenue during Q4 (Jul. - Sep.) up 16.3% YoY. +16.3% (Unit: Millions of yen) 12,000 11,208 9,944 9,753 10,000 9,541 9,056 8,549 8,391 8,345 8,154 8,128 8,000 7,793 7,527 7,107 6,846 6,910 6,441 6,280 6,096 6,000 5,457 4,281 4,318
Slide 8: Temporary Effects from Growth Investments - YoY Analysis
Temporary Effects from Growth Investments - YoY Analysis - We are proactively investing in business growth for the future Approximately ¥0.4 billion have been recorded as impairment and loss on disposal of fixes assets as a result of changes in business plans (Unit: 100 million yen) M&A・PMI M&A・PMI
Slide 9: Revenue by Segment, Segment Income and Loss IFRS
Revenue by Segment, Segment Income and Loss IFRS Despite the overseas merger-related expenses, increased revenue in Trovit and the consolidation of Mitula have produced large gains As planned, the HOME'S Services segment has seen decreased revenue due to investments in advertising FY2018/9 FY2019/9
Slide 10: Condensed Statements of Financial Position and Goodwill IFRS
Condensed Statements of Financial Position and Goodwill IFRS ¥3.2 billion in short-term debts and ¥10.4 billion in goodwill were used for the acquisition of Mitula As of As of Change Change % Main items Unit: Millions of yen Sep 30, 2018 Sep 30, 2019 Current assets 12,900 16,154 +3,254 +25.2% Increa
Slide 11: Condensed Statements of Cash Flow IFRS
Condensed Statements of Cash Flow IFRS Cash and cash equivalents increased by ¥1.6 billion to ¥9.2 billion YoY FY2018/9 FY2019/9 Change Main items Unit: Millions of yen Oct.-Sep. Oct.-Sep. Items FY2018/9 FY2019/9 Profit for the period before tax +4,156 +3,552 Depreciation and amortization +1,091 +1,
Slide 12: LIFULL Group Growth Strategy (Overview)
LIFULL Group Growth Strategy (Overview) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 11
Slide 13: Becoming the best life-event database and solution company in the world
Slogan Becoming the best life-event database and solution company in the world. 12
Slide 14: Medium-Term Business Plan 2020
Medium-Term Business Plan 2020 Progress toward strengthening the business scale and organizational targets set in the Medium-Term Business Plan Becoming the best life-event database and solution company in the world. Medium-Term Business Plan 2020 Business Expansion Strengthening Group Administratio
Slide 15: Progress on Medium-Term Business Plan - Business Expansion
Progress on Medium-Term Business Plan - Business Expansion- Smooth progress in increasing scale of operations Expansion of HOME’S Services Growth in Overseas Businesses • Search by lifestyle • Established call center • Market leader in real estate aggregation • Visibility of property evaluations • C
Slide 16: Progress on Medium-Term Business Plan - Strengthening Group Administration
Progress on Medium-Term Business Plan - Strengthening Group Administration- Taking a wide variety of measures to strengthen the administrational foundations of the company Form a Specialized Management Team Set the Foundations for 100 Subsidiaries • Boost administration of Group subsidiaries • Visua
Slide 17: Medium-Term Business Plan 2020
Medium-Term Business Plan 2020 Despite changes in plans, the scale of operations has been steadily increasing Achievement of the quantitative targets (Revenue) has been pushed back Primary Changes to Medium-Term Business Plan FY2020 FY20XX • Withdrawals ¥50.0+ Billion → LIFULL HOME’S Reform → LIFULL
Slide 18: Increase Profitability During FY2020/9
Increase Profitability During FY2020/9 17
Slide 19: Business Forecast for FY2020/9
Business Forecast for FY2020/9 ¥45.1 billion in revenue (+15.0%) and EBITDA of ¥8.1 billion (+51.5%) Condensed Statemants of Income and Loss Revenue by Service FY2019/9 FY2020/9 FY2019/9 FY2020/9 Oct.-Sep. Oct.-Sep. Change Change Oct.-Sep. Oct.-Sep. Change Change Unit: Millions of yen [Actual] [Full
Slide 20: Services
Services Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 19
Slide 21: Comparison with Same Period in Previous Year - Effects of Business Withdrawals
Comparison with Same Period in Previous Year - Effects of Business Withdrawals - Sales revenue up +4.6% excluding effects from withdrawal of the Reform Business Revenue - HOME’S Service (Unit: Millions of yen) Withdrawal from Reform Business • LIFULL HOME’S Reform +4.6% 33,202 • LIFULL Remodel → Dis
Slide 22: Key Performance Indicators - Client Network and ARPA
Key Performance Indicators - Client Network and ARPA - Growth in both the numbers of clients and ARPA ARPA (yen) Client Network FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 89,887 91,810 94,130 25,954 26,252 24,890 *12-month average *Above figures are preliminary and will be revised once finalized. *AR
Slide 23: Measures to improve ARPA - Strengthening media presence
Measures to improve ARPA - Strengthening media presence - Continue investments in strengthening media presence Strive to become market leader by maximizing provided value LIFULL HOME’S Investments in Media Presence Content Campaigns Branding UI & UX SEO Paid Online Marketing 22
Slide 24: Effects from the Price Structure Revision - Rental and Sale Listings
Effects from the Price Structure Revision - Rental and Sale Listings - Beginning in October, the price structure was revised to increase media presence and service quality By offering optional services free of charge, users will have access to richer information to help them find the right place to
Slide 25: Overseas Businesses
Overseas Businesses Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 24
Slide 26: Overseas Businesses - Results
Overseas Businesses - Results - Segment revenue and profits have grown considerably since the acquisition of Mitula Unit: Millions of yen Revenue Segment Profit and Loss +98.9% +211.4% 9,069 1,526* 7,680 +94.1% 951 3,861 490 FY2018 FY2019 FY2020 FY2018 FY2019 FY2019 (Actual) (Actual) (Est.) (Actual)
Slide 27: LIFULL CONNECT - Quarterly Performance Trend
LIFULL CONNECT - Quarterly Performance Trend - Revenue is growing steadily as the second pillar of the LIFULL Group 18,021 Results of LIFULL CONNECT are based in euros* (■ Non-Consolidated Results from Mitula) Steady Unit: Thousands of euros growth Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 28: Overseas Businesses Results - Segment Profit and Loss (Quarterly Trend)
Overseas Businesses Results - Segment Profit and Loss (Quarterly Trend) - Increases in profitability although the expenses from the acquisition of Mitula were recorded in this period Depreciation expenses are expected to begin from FY2020/9 Quarterly Segment Profit and Loss ■ LIFULL CONNECT ■ Intern
Slide 29: LIFULL CONNECT Founding Planned for November 2019
Founding Planned for November 2019 CEO Mauricio Silber COO Simon Bray 28
Slide 30: Growth Strategy - Profitability by Region
Growth Strategy - Profitability by Region- Strategy to take the characteristics of individual regions into account to accelerate profitability Focus growth on mature and developing markets Focus on Mature and Developing Markets 01 Mature Markets 02 Developing Markets 03 Potential Markets • Strong re
Slide 31: Growth Strategy - Mature Markets
Growth Strategy - Mature Markets - Utilize the technological knowhow of Trovit to make advanced sites and increase profit on sales Grasp current status of various markets to accelerate management decision-making processes and ensure that clients receive the right suggestions for their advertising 30
Slide 32: Growth Strategy - Developing Markets
Growth Strategy - Developing Markets - Focus on introducing portals into new markets to directly support users in their housing searches Operating portals in 9 Southeast Asian countries Operating portals in 11 Central and South American countries Brought into the Mitula Group in September 2016 Broug
Slide 33: Other Businesses
Other Businesses Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 32
Slide 34: Other Businesses - Segment Sales Revenue (Quarterly)
Other Businesses - Segment Sales Revenue (Quarterly) - Without regard to the effects of the transfer of LHL*1, business scale has been maintained. Unit: Millions of yen Transfer of LHL Quarterly Revenue Maintaining ■ Existing businesses *2 ■ Other new businesses 448 Scale of Operations Founding of 4
Slide 35: Other Businesses - Segment Profit and Loss (Quarterly)
Other Businesses - Segment Profit and Loss (Quarterly) - Smooth progress in existing businesses excluding the transfer of LHL Increased investment in Regional Revitalization Unit: Millions of yen Transfer of LHL Quarterly Segment Profit and Loss 98 ■ Existing businesses* ■ Other new businesses 60 44
Slide 36: Other Businesses - Regional Revitalization
Other Businesses - Regional Revitalization - Provide various solutions including collecting information to repurposing vacant homes Working to alleviate the social issue of vacant houses Recruitment / Akiya Bank Crowdfunding New Uses Training Compilation of a Assist with funds for Support new uses f
Slide 37: Other Businesses - Regional Revitalization (Local Cooperations)
Other Businesses - Regional Revitalization - Development of new partnerships and agreements with local governments and repurposing of vacant homes nationwide Local Cooperations Koshu, Yamanashi July 29, 2019 Kamaishi, Iwate Operation of a sharehouse and vacation rental in a vacant house Agreement on
Slide 38: Other Businesses - Regional Revitalization Fund
Other Businesses - Regional Revitalization Fund - Began apartment hotel project in Takamatsu with investments from the LIFULL Regional Revitalization Fund Takamatsu, Kagawa 10F Reinforced Concrete LIFULL Regional Revitalization Structure with 41 Units Financial Series 1 Investment Limited Liability
Slide 39: Our Worldview - LIFULL Group
Our Worldview - LIFULL Group - Create a society where everyone can attain “comfort” and “happiness” through continuous social innovations Becoming the best life-event database and solution company in the world. Build the biggest life-event database in the world to offer the best solutions for each a
Slide 40: Change in IR Procedures (Beginning in FY2020/9)
Change in IR Procedures (Beginning in FY2020/9) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 39
Slide 41: Change in IR Procedures
Change in IR Procedures Beginning from FY2020/9, we will be holding Earnings Presentations twice a year instead of every quarter. Planned Quarter 1 Quarter 2 Quarter 3 Quarter 4 Schedule 10 11 12 1 2 3 4 5 6 7 8 9 Previous FY Q1 Q2 Q3 Statements Statements Statements Statements Presentation Presenta
Slide 42: a t+
a t+
Slide 43: Base Results of the 2018 Housing and Land Survey
Base Results of the 2018 Housing and Land Survey (Statistics Bureau of Japan) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 42
Slide 44: Base Results of the 2018 Housing and Land Survey
Base Results of the 2018 Housing and Land Survey The number of total households and dwellings has reached a new high, but is growth is beginning to dwindle Trend of Total Dwellings and Total Households ＋1,779 (10,000 Units） 6,063 （＋2.9％） 6,241 6,000 5,759 5,389 5,025 5,000 4,588 4,201 4,000 ＋1,549 3
Slide 45: Base Results of the 2018 Housing and Land Survey
Base Results of the 2018 Housing and Land Survey The number of total households and dwellings has reached a new high, but is growth is beginning to dwindle Trend of Number of Vacant Homes and Vacancy Rates Breakdown of Vacant Homes (10,000 Units) 900 849 16.0% Total Vacant Dwellings Vacancy Rate 820
Slide 46: Base Results of the 2018 Housing and Land Survey
Base Results of the 2018 Housing and Land Survey Around 60% of dwellings are for personal use while the proportion of private rental properties had reached 28.5% of total dwellings Trend of Private Use / Rental Properties and Ownership Rates Breakdown of Ownership (10,000 units) Owned Personally Ren
Slide 47: Base Results of the 2018 Housing and Land Survey
Base Results of the 2018 Housing and Land Survey Rent for residential properties has continued to increase at a steady rate National Trend in Monthly Rent Residences Commercial Residences 60,544 60,000 57,449 56,700 57,601 51,907 ¥ 55,695 47,727 50,000 53,565 51,064 54,052 49,257 40,000 39,253 44,45
Slide 48: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 47
Slide 49: Corporate info (as of September 30, 2019)
Corporate info (as of September 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 50: 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 Trovi
Slide 51: 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 (Trovit Search, S.L.U.) Mitula (Mitula Group Limited) LIFULL Tech Vietnam Co., Ltd. RESEM Corporation Li
Slide 52: Number of Employees
Number of Employees – Across All Businesses – Increase in employees as the Overseas Business strengthens (Employees) 1,558 1,500 1,275 1,199 1,118 ■ Overseas Business 1,000 919 ■ 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 2
Slide 53: Business Growth and Breakdown - Consolidated Revenue
Business Growth 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% 34,565 Other Businesses 32,112 22.0% Overseas Business* 27,566 73.2% Services 3 Periods 2 Periods FY2018
Slide 54: Quarterly Result Trend
Quarterly Result Trend Consolidated Statement of Profit or Loss (Simplified) FY2017/03 FY2017/09 FY2018/09 FY2019/09 Unit : JPY mil 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 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 HOME'S Services Business 5,616 5,
Slide 55: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Increase in Cost of Sales and Other SG&A due to M&A costs Higher percentage of advertising costs due to highest expenditure in marketing ever 29.3% +2.7pt 32.0% -3.0pt 28.9% +1.5pt 30.4% Cost of sales and other SG&A Advertising expenses 26.3% +6.1pt 32.9% 33.8% 32.4% +0
Slide 56: (Ref.) Pricing Structure Revisions - Rental & Sales
(Ref.) Pricing Structure Revisions – Rental & Sales – New Price Structure Basic Membership Fee Inquiries Pay by Inquiry (Monthly) Inquiries (e-mail / tel.) Monthly Rent of Property × 9.5％ Rental ¥15,000 Company Inquiries Number of Inquiries× ¥5,000 Inquiries (e-mail / tel.) Sale Price of Property× 0
Slide 57: External Market Data (Monthly)
External Market Data (Monthly) 2015 2016 2017 Sep-17 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 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 40,449 35,772 37,132 2,978 2,817 3
Slide 58: (Ref.) Domestic Market Environment
(Ref.) Domestic Market Environment 01 02 03 04 Number of Real Estate Number of Licensed Number of Offices Size of Real Estate Companies Real Estate Agencies Listing Market 328,553 123,782 (105,015 Corporates) 352,733 Approx. 900+ billion yen (Based on 2017 values from the (Based on 2017 values from
Slide 59: (Ref.) 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, 2019 (forecast) Revenue JPY 35.3 bil. (YoY+10%） [LIFULL, JP] JPY 751.8 bil. Market Cap EBITDA JPY 26.7 bil. Revenue 45.0B.JPY EBITDA 8.1B.JPY
Slide 60: IR Office Information
IR Office 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 2018 Other Information about LIFULL Twitter Facebook Page Japanese https://lifull.com/news/10305/ English https://lifull