Slide 1: Annual Report of Financial Statement, Year Ended March 31, 2013
NEXT Co., Ltd. TSE 1st section 2120 Annual Report of Financial Statement Year Ended March 31, 2013 (April 2012 to March 2013) Opinions and forecasts expressed in this document are those of management as of the date of publication and management does not offer any guarantee regarding their accuracy.
Slide 2: Agenda
Annual Financial Results for the Year Ended March 31, 2013 ・・・ pp. 2-10 Our FY03/2013 Fourth Quarter Initiatives ・・・ pp. 11-17 Results Forecast for FY03/2014 ・・・ pp. 18-25 Our Top Priority Challenges for the Year Ending March 31,2014 ・・・ pp. 26-31 NEXT Co., Ltd. Business Management Philosophy ・・・ p.
Slide 3: Annual Financial Results for the Year Ended March 31, 2013
TSE 1st section 2120 Annual Financial Results for the Year Ended March 31, 2013 April 2012 to March 2013 Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 4: Today's Key Points
Annual Financial Results for the Year Ending March 31, 2013 Sales have reached a new record due to increased real estate information service Today's Key Points revenue Sales : 11,962 million yen (up 15.9% from previous year) Operating profit : 1,591 million yen (up 67.0% from previous year) Net prof
Slide 5: Trend of major indicators
Annual Financial Results Trend of major indicators for the Year Ending March 31, 2013 ！ Check Trend of consolidated business performance Sales (million yen) Operating profit (million yen) Net profit (million yen) 11,962 10,738 10,319 1,749 1,107 1,591 ＋15.9％ 952 614 465 -3.9％ ＋67.0％ -45.6％ ＋31.8％ -5
Slide 6: Profit and Loss Statement (Simplified Version)
Annual Financial Results Profit and Loss Statement for the Year Ending March 31, 2013 (Simplified Version) Sales rose 15.9%, SG&A expenses 10.1%, operating profit 67.0%, and operating profit Point margin 13.3% [Accumulated Total] [Accumulated Total] Percentage [Quarterly] [Quarterly] Percentage Chan
Slide 7: Ratio of costs to sales
Annual Financial Results Ratio of costs to sales for the Year Ending March 31, 2013 Aggressive investment in branding promotion. Total operating profit margin improved Point thanks to increase in revenue. Full Year Quarter Cost and Other SG&A Expenses 2.9P 28.1% Improve 27.8% 2.1P 33.4% ment 30.4% 3
Slide 8: Trends in sales by service
Annual Financial Results Trends in sales by service for the Year Ending March 31, 2013 The core real estate information service business rose by 15.9% for the full year, and Point 17.1% for the quarter [Accumulated Total] [Accumulated Total] Change Percent [Quarterly] [Quarterly] Percent Unit: Milli
Slide 9: Trends in P/L by segment
Annual Financial Results Trends in P/L by segment for the Year Ending March 31, 2013 Local information services operating loss decreased significantly for the fiscal year Point due to business downsizing [Accumulated [Accumulated Total] Percent [Quarterly] [Quarterly] Percent Total] Change Unit: Mil
Slide 10: Consolidated balance sheet and goodwill
Annual Financial Results Consolidated balance sheet and goodwill for the Year Ending March 31, 2013 Net assets per share grew 6.7% year on year while interest-bearing debt remained Point zero End of Previous [Current Quarter] Percent Unit: Million yen Year Change Main reasons for change End FY03/201
Slide 11: Cash flow
Annual Financial Results Cash flow for the Year Ending March 31, 2013 Point The balance of cash and cash equivalents stands at 6,900 million yen FY03/2012 FY03/2013 FY03/2012 FY03/2013 Unit: Million yen Change Main Items (Apr - Mar) (Apr - Mar) (Apr - Mar) (Apr - Mar) Pretax profit of the current te
Slide 12: Our FY03/2013 Fourth Quarter Initiatives
TSE 1st section 2120 Our FY03/2013 Fourth Quarter Initiatives Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 13: Nationwide branding promotion
Our FY03/2013 Fourth Quarter Initiatives Domestic Topics Point The implementation of nationwide branding promotion 【Electronic billboard】 【TV commercial】 北海道 宮城 兵 京 滋 群 栃 茨 長 佐 山 都 賀 馬 木 福岡 庫 岐阜 城 崎 賀 口 広島 埼玉 大 奈 三 千 阪 良 愛知 東京 大分 重 葉 神奈川 【Public transport advertisement】 12 Copyright (c) 2011 NEXT Co
Slide 14: Search ranking improvement by site redesign
Our FY03/2013 Fourth Quarter Initiatives Domestic Topics Point Search results continue to be higher ranking by the implementation of site redesign in 3Q ！ Check ■Average ranking trend of Main Keyword(※) Purpose of Rental & Real Estate Trade site redesign Point 1st Major 1. Maximize our SEO effect by
Slide 15: Promotions and site redesign increased visitors and sales
Our FY03/2013 Fourth Quarter Initiatives Domestic Topics Point Promotions and the site redesign resulted in increases in the number of visitors and sales ！ ！ Check Check Largest Number of Site Visitors March Sales Rose 12.4% Year on Year Branding promotional efforts and site redesign have increased
Slide 16: Properties posted and affiliated stores increased
Our FY03/2013 Fourth Quarter Initiatives Domestic Topics The Number of Properties Posted and Affiliated Stores increased as a result that a sales Point strategy succeeded The Number of Properties Posted 11.8% increase Sales strategy Results (unit:10000 ) 500 FY2012 FY2013 year-on-year 404 400 300 36
Slide 17: Record highs for each KPI
Our FY03/2013 Fourth Quarter Initiatives Domestic Topics Point It is reached a record high with each KPI by a business measure and a site redesign ■KPI Number of Sales per Number of Sales Properties affiliated stores affiliated stores Posted Rental & Real Estate Trade ○ （※1） ○ （※1） ○ New Condominium
Slide 18: Number 1 in three important areas
Our FY03/2013 Fourth Quarter Initiatives Domestic Topics Number 1 in 3 important Areas, which is Listed Properties,Site visitors and Easiest Site to Point Use Listed Properties Site visitors Easiest Site to Use ※Listed Properties No.1 ：Shukan Jutaku Shinbun newspaper December 12,2011 edition ※Site v
Slide 19: Results Forecast for FY03/2014
TSE 1st section 2120 Results Forecast for FY03/2014 Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 20: The concept of our future business development
Results Forecast for FY03/2014 The concept of our future business development Point Next Group‟s strategy is to aim at becoming a global company with “DB+CCS” (*) Concept of “DB+CCS” ◆ Communication service ✔ Service enabling the user to become acquainted with people and feel rapport with and warmth
Slide 21: NEXT Group Medium-Term Business Image
Results Forecast for FY03/2014 NEXT Group Medium-Term Business Image We will reinvest earnings in Japan in "HOME'S", as well as investing in new segments Point and new services Existing products New products New Overseas Overseas New business "HOME'S" "HOME'S" business • Businesses outside real esta
Slide 22: Operating P/L trends
Results Forecast for FY03/2014 Operating P/L trends Point Forecasting increased revenue and decreased profits due to conservative sales forecast and investment in future growth [Reference] FY03/2013 FY03/2014 Unit: Million yen Change Percent change FY03/2012 (Actual) (Forecast) Sales 10,319 11,962 1
Slide 23: Ratio of costs to sales
Results Forecast for FY03/2014 Ratio of costs to sales We will invest approximately 30% in advertising, and make further improvements to our Point personnel cost ratio. Composition Ratio (Total) 100% Cost and Other SG&A Expenses 2.0P 33.4% 30.4% Decline 32.4% 80% Advertising Costs 60% 26.5% 28.9% 30
Slide 24: Investment Policy
Results Forecast for FY03/2014 Investment Policy The Group will invest in related businesses, while concentrating investment on the Point growth of HOME'S in Japan Amount (Total) Unit: Million yen Forecast of reduced profits due to total of 2,000 Amount of future growth-oriented 650 million yen in i
Slide 25: Trends in sales by service
Results Forecast for FY03/2014 Trends in sales by service A 1,000 million yen increase in revenue is forecast, even taking into consideration the Point decrease in sales caused by the site redesign for condominiums [Reference] FY03/2013 FY03/2014 Unit: Million yen Change Percent change FY03/2012 (Ac
Slide 26: Dividend Policy
Dividend Policy Dividend Forecast Point +5p payout ratio from March, 2013 Item FY03/2012 FY03/2013 FY03/2014 (Forecast) Annual Dividends (Planned) 3.70 Yen 6.50 Yen 7.90 Yen Consolidated Net Profit 465 Million Yen 614 Million Yen 741 Million Yen Payout Ratio 14.9% 19.9% 20.0% ! Check Basic Policy fo
Slide 27: Our Top Priority Challenges for the Year Ending March 31, 2014
TSE 1st section 2120 Our Top Priority Challenges for the Year Ending March 31, 2014 Copyright (c) 2011 NEXT Co.,Ltd. All Rights Reserved.
Slide 28: Top Priority Challenges
Our Top Priority Challenges Top Priority Challenges for the Year Ending March 31, 2014 ! Check Enhance the "HOME'S" website in Number Priority 1 Japan Enhance the "HOME'S" website overseas Number Priority 2 Enhance services for clients Number Priority Enhance new businesses 3 27 Copyright (c)
Slide 29: Strategy for providing HOME'S with an overwhelming lead
Our Top Priority Challenges Domestic Topics for the Year Ending March 31, 2014 Point Advance strategy for providing HOME'S with an overwhelming lead Airing of TV commercials throughout Japan (except for certain limited areas) Train advertising (hanging aisle advertisements) Promotion Hold even
Slide 30: Increase sales via inquiries, basic fees and option products
Our Top Priority Challenges Domestic Topics for the Year Ending March 31, 2014 Point Increase sales not only via inquiries, but also from basic fees and option product ・Promotion strategy implementation Inquiries Increase number of visitors Increa Option se Products ・Product strategy implementation
Slide 31: Overseas topics: China, Thailand, Indonesia
Our Top Priority Challenges Overseas Topics for the Year Ending March 31, 2014 Point Discussions are underway regarding the liquidation in China, and Thailand is aiming to increase the number of rental and used properties in its newly launched service ■ Thailand ■ China ■ Indonesia [HOME'S Thailand]
Slide 32: Mid/Long-term goals
Our Top Priority Challenges The concept of our future business for the Year Ending March 31, 2014 development 【Corporate Management Metrics】 Mid/Long-term goals 1. Aim to achieve 25% operating profit margin 2. Improve productivity 3. Return of profits to shareholders through continuous dividend paym
Slide 33: Business Management Philosophy
Business Management Philosophy Company Credo Altruism Our priority is making people happy. Everyone in the world: Consumers, Clients, Coworkers, Family, and so on… Corporate Philosophy (NEXT Group Vision) Create a society where everyone can attain comfort and happiness through continuing social inno
Slide 34: Reference Materials
NEXT Co., Ltd. TSE 1st Section 2120 Reference Materials Reference Materials ・・・PP.33-48 Our Goal in Founding NEXT ・・・P.34 NEXT‟s Service Offerings ・・・P.35 “HOME‟S” Business Model ・・・P.36 HOME'S Real Estate Information Service Business Model・・・P.37 Additional information ・・・PP.38-44 President profile
Slide 35: Our Goal in Founding NEXT
Our Goal in Founding NEXT Eliminate the world‟s “negatives” such as “worry,” ”dissatisfaction,” and “inconvenience” We at NEXT seek to provide all kinds of lifestyle services through the internet to help people in the world lead comfortable lives with peace of mind 34 Copyright (c) 2011 NEXT Co.,Ltd
Slide 36: NEXT's Service Offerings
NEXT‟s Service Offerings About NEXT NEXT seeks to provide, through the internet, all kinds of lifestyle services related to not only “residential properties” but also “local community” and “medical services” in order to help people in the world lead comfortable lives with a peace of mind anytime any
Slide 37: HOME'S Business Model
“HOME‟S” Business Model Point “HOME‟S” business model: Fee structure based on the number of inquiries Customer Next （『HOME‟S』） User Inquiry (Real-estate Rents & Transactions) View information Make inquiry ・Real estate broker Post property ・Real estate information management (Real-estate Rents & comp
Slide 38: HOME'S Real Estate Information Service Business Model
HOME'S Real Estate Information Service Business Model Point Unlimited postings + billing based on number of inquiries HOME’S Basic Membership Fee Sale / Investment Billing (tax not included) Rental Billing (tax not included) (tax not included) Number of Rental Billing Amount Calculation Method Sale
Slide 39: Trend of P/L
Additional information Trend of P/L （unit:thousand yen） 14,000 13,041 18.4% 11,962 12,000 10,779 10,738 16.3% 10,319 10,000 8,927 13.3% 8,000 11.2% 9.2% 10.1% 6,000 4,000 1,979 1,749 2,000 1,591 1,322 998 952 0 FY2014 FY2009 FY2010 FY2011 FY2012 FY2013 (Forecast) Sales 8,927 10,779 10,738 10,319 11,
Slide 40: Trend of B/S
Additional information Trend of B/S （unit: million yen) 10,000 9,064 83.6% 8,477 83.8% 8,115 76.8% 8,000 74.9% 72.3% 78.4% 7,203 6,940 6,488 6,000 5,685 5,553 5,413 4,580 4,707 4,420 4,000 2,000 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Net assets 5,553 5,685 7,203 8,115 8,477 9,064 Cash 4,580 4,4
Slide 41: Summary of Statements of income, sales per segment
Additional information Summary of Statements of income Sales per segment Summary of Statements of income Sales per segment FY2013 FY2013 FY2014 FY2014 Unit: million FY2013 FY2013 FY2014 FY2014 yen Segment 1H 2H 1H 2H 1H 2H 1H 2H Unit: million yen Rental & Real Estate 5,500 6,462 6,211 6,830 2,969 3,
Slide 42: Trend of sales by segments
Trend of sales by segments. Additional information “HOME‟S Real Estate Rents & Trade” trend of major indicators Trend of sales by segments. “HOME‟S Real Estate Rents & Trade” trend of major indicators Previous year Current year FY03/2012 FY03/2013 Comparison FY03/2012 FY03/2013 Comparison Unit : pro
Slide 43: Trend of Operating P/L <Quarterly>
Additional information Trend of Operating P/L <Quarterly> Quarterly consolidated statements of income FY03/2011 FY03/2012 FY03/2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 2,899 2,613 2,584 2,640 2,357 2,462 2,486 3,012 2,737 2,763 2,939 3,522 Real estate information 2,612 2,603 2,568 2,623 2,337
Slide 44: Real Estate Market Data
Additional information Real Estate Market Data 【Number of Apartments for Sales（annual）】 Source:Real Estate Economic institute Co.LTD 2006 2007 2008 2009 2010 2011 2012 Jan-13 Feb-13 Mar-13 Capital Region 74,463 61,021 43,733 36,376 44,535 44,499 45,602 1,721 3,491 5,139 year-on-year -11.5% -18.1% -2
Slide 45: President's Profile
President's Profile 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 engaged in new gra
Slide 46: Corporate profile
Corporate profile Company name NEXT Co., Ltd (TSE 1st Section: 2120) Representative President and CEO Takashi Inoue Established March 12, 1997 (Accounting year end: March) Paid-in capital 1,996 million yen, Number of shares outstanding: 18,794,600 shares (Number of the Treasury Shares: 12,060) Conso
Slide 47: Shareholder composition
Shareholder composition Point Decrease of 259 shareholders from September 30, 2012 to 2,649 shareholders Number of shareholders 2,649(As of March 31, 2013), Decrease of 259 from Sep. 30, 2012 Major shareholders Directors of NEXT Co., Ltd. Rakuten Inc. (NEXT Co., Ltd. is an equity method affiliate of
Slide 48: IR Information Contact Details
IR Information Contact Details NEXT Co., Ltd. Business Planning Dept. Corporate Communications Group Phone +81-3-5783-3603 (weekdays 10:00 – 18:00) Fax +81-3-5783-3737 Contact E-mail ir@next-group.jp Company website http://www.next-group.jp/ (Japanese) http://www.next-group.jp/en/index.html (English