Slide 1: Earnings Presentation IFRS
LIFULL Co., Ltd. Earnings Presentation IFRS Third Quarter of the Fiscal Year Ending September 30, 2018 (October 2017 to June 2018) Disclaimer The opinions and projections, etc. contained herein represent the judgment of LIFULL Co., Ltd. at the time this document was prepared. We provide no guarantee
Slide 2: Index
Index 1. Key Points P.02 2. Consolidated Results for FY2018/9 Q3 P.03 3. Progress of Business Forecast P.11 4. HOME’S Services Business P.22 5. Overseas Business P.32 6. Others Business P.48 7. Appendix P.52 8. IR Office Information P.69 1
Slide 3: Key Points
Key Points 1. FY2018/9 Q3 Revenue: JPY 26 billion, +8.6% YoY EBITDA: JPY 4.4 billion, +56.9% YoY 2. Revised full-year forecast for FY2018/9 Revenue JPY 34 billion, EBITDA JPY 5.1 billion Execute an investment strategy and structural reform to achieve mid-to-long term growth 3. Key Indicators Steady
Slide 4: Consolidated Results for FY2018/9 Q3
Consolidated Results for FY2018/9 Q3 Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3
Slide 5: Condensed Statements of Income and Loss
Condensed Statements of Income and Loss IFRS Revenue was up 8.6% YoY, EBITDA was up 56.9%, quarterly net profit grew sharply by 104.8%. Oct. 2016 - FY18/9 Q3 Change Unit: JPY mil Change Main items June 2017 Oct.-Jun. % Revenue 23,957 26,015 +2,058 +8.6% Revenue increased across all segments. Cost of
Slide 6: Expense-to-Revenue Ratio
Expense-to-Revenue Ratio IFRS Despite an increase in the ratio of advertising expenses, the EBITDA margin improved thanks to lower ratios of cost of sales and other SG&A and personnel expenses 24.8% +4.2p +3.2p -3.9p 29.0% 28.3% 32.1% Cost of sales and other SG&A Advertising expenses 31.6% -5.0p 26.
Slide 7: Sales by Segment
Sales by Segment IFRS Continued increase in revenue in all segments Oct. 2016 - FY18/9 Q3 Change Unit: JPY mil Change Main items June 2017 Oct.-Jun. % Revenue 23,957 26,015 +2,058 +8.6% Revenue increased following the successful initiatives to increase the number of customers. HOME'S Services 20,090
Slide 8: Segment Income and Loss
Segment Income and Loss IFRS HOME’S Services achieved a substantial increase in profit as a result of decrease in one-off expenses and by making effort to reduce costs. Overseas also achieved a substantial increase in profit, mostly due to decrease in Trovit’s personnel expenses Oct. 2016 - FY18/9 Q
Slide 9: (ref.) Condensed Statements of Profit and Loss (quarterly)
(ref.) Condensed Statements of Profit and Loss (quarterly) IFRS Strategy to increase ARPA to accelerate business growth in the HOME’S Services is still in progress, but profitability has improved considerably Overseas profit grew significantly without incorporating the expenses related to Mitula acq
Slide 10: Condensed Statements of Financial Position and Goodwill
Condensed Statements of Financial Position and Goodwill IFRS Current assets increased along with sales growth Short-term loans will be fully repaid by the end of July, 2018 As of As of Unit: JPY mil Change Change Main items Sep 30, 2017 Jun 30, 2018 Increase in cash and deposits +1,626 Increase in c
Slide 11: Condensed Statements of Cash Flows
Condensed Statements of Cash Flows IFRS Cash and cash equivalents increased by JPY2.1 billion to JPY 7.1 billion Oct. 2016 - FY18/9 Q3 Main items Unit: JPY mil Change June 2017 Oct.-Jun. Items YoY FY18/9 Q3 Profit for the period before tax +1,772 +3,552 Depreciation and amortization +1,064 +822 Impa
Slide 12: Progress of Business Forecast
Progress of Business Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 11
Slide 13: Mid-Term Management Plan Quantitative Target
Mid-Term Management Plan Quantitative Target FY2020/9 Revenue JPY 50+ billion EBITDA ratio appx. 20% 12
Slide 14: Mid-to-long Term Revenue Growth Image
Mid-to-long Term Revenue Growth Image While accumulating revenue to be generated by HOME’S Services Businesses, develop overseas business to be another major pillar in a mid-to-long term perspective. Others Business Overseas Business HOME’S Services Business 13
Slide 15: Mid-to-long Term Revenue Growth Image (profit)
Mid-to-long Term Revenue Growth Image While accumulating profit to be generated mainly by HOME’S Services and Overseas Businesses, keep making growth investment Research and development investment to ReTech and advanced technology utilization Investment in HOME’S Services Business Investment in regi
Slide 16: Investment to Raise LIFULL Brand Awareness
Investment to Raise LIFULL Brand Awareness - promotion - Appointed Mr. Yuto Nagatomo, a professional soccer player, as LIFULL ambassador to raise LIFULL brand awareness. Has assumed the position of “LIFULL ambassador” and “Chief of Global HQ” https://lifull.com/news/11848/ 15
Slide 17: Investment to utilize advanced technologies
Investment to utilize advanced technologies Make investment to utilize AI, big data, block-chain and other advanced technologies. Established AI Strategy Office Established a consortium Has participated Seven & i Data Lab directly reporting to the CEO to share real estate information to utilize big
Slide 18: Mid-to-long Term Growth Strategy - changes
Mid-to-long Term Growth Strategy - changes - Implementing restructuring to enhance competitiveness and concentrate the resources in growing areas. 01 HOME’S services 02 Overseas Withdrawal from Structural Integration Concentrate resource non-profitable businesses centering on Trovit × Mitula • Integ
Slide 19: Business Forecast for the Fiscal Year Ending September 2018
Business Forecast for the Fiscal Year Ending September 2018 Implementing structural reform to achieve the Mid-term Management Plan 50+ billion JPY FY2018/9 Full-Year Forecast Revenue JPY 34.0 billion EBITDA JPY 5.1 billion 340 299 257 182 * 159 147 108 107 103 120 89 74 （unit: JPY 100 million） 45 19
Slide 20: Structural Reform
Structural Reform To achieve the Mid-term Management Plan, execute structural reform internally and respond to changes in the external environment Structural reform to Respond to changes in × strengthen competitiveness the external environment 〈 Optimize the structure 〉 〈 Improve ability to attract
Slide 21: Business Forecast for the Fiscal Year Ending September 2018
Business Forecast for the Fiscal Year Ending September 2018 IFRS Full-year business forecasts have been revised Condensed Statements of Income and Loss Revenue by Service FY18/9 FY18/9 FY18/9 FY18/9 Unit: JPY m il Oct.-Sep. Oct.-Sep. Change Unit: JPY m il Oct.-Sep. Oct.-Sep. Change [Previously] [Rev
Slide 22: Mitula Group Limited Acquisition: Impact on Current Fiscal Year
Mitula Group Limited Acquisition: Impact on Current Fiscal Year and Mid-Term Management Plan The impact on business performance is under review. To be disclosed as soon as figures being finalized. Schedule (tentative) * Mid-term Management Plan α （Revenue） (billion JPY) May 9 June 28 Sep Oct Novembe
Slide 23: HOME'S Services Business
HOME’S Services Business Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 22
Slide 24: Expanding the Client Network
Expanding the Client Network Number of clients: Increased from last year but decreased from Q2 following the withdrawal from the renovation business. ARPA: Has been almost flat. No. of Clients (JPY) (円) ARPA 120,000 112,492 29,000 105,824 27,411 27,042 100,000 27,000 26,492 26,728 26,040 87,329 83,3
Slide 25: Definition of No. of Clients and ARPA
(ref.) Definition of No. of Clients and ARPA Number of clients: Number of total paid clients of LIFULL HOME’S and LIFULL Marketing Partners (including the clients who use DMP and CRM) Definition ARPA: Average Revenue Per Agent, revenue per clients HOME’S Services Business revenue / number of clients
Slide 26: To Improve ARPA - Organizational Structure
To Improve ARPA - Organizational Structure - One-stop support will be provided by integrating Media of Rental Division and a division providing operational supports Before Service examples of █ Rental Div █ former BS Div Daily Operation Procure Property Post Information Attract customers Deal with c
Slide 27: Expanding the Number of Total Information Listed
Expanding the Number of Total Information Listed No. of Total Information Listed Has been able to maintain the (mil) undisputed number of information while 900 improving the accuracy of information 800 6.70mil 700 7.83mil 600 500 400 300 200 100 *Total information: properties for rental, real estate
Slide 28: Visualizing the Price Information - LIFULL HOME'S PRICE MAP
Visualizing the Price Information - “LIFULL HOME’S PRICE MAP” Providing a list of property reference prices and rents on maps, aiming to improve transparency of second-hand real estate market. The service has become available Reference Prices across Japan on May 18 Reference prices and rents Referen
Slide 29: Enhance Media Capability - LIFULL HOME'S App
Enhance Media Capability - LIFULL HOME’S App - Intuitive house-hunting function now available: By holding up a smartphone camera with AR function towards the direction of the building, the app will tell the user which room of the property is now up for sale or available for rent in a timely manner P
Slide 30: Real Estate Tech - 3D Model House
Real Estate Tech (ReTech) - 3D Model House - “3D Model House” to be released, which will enable users to tour model houses on-line on a virtual basis without physically visiting housing exhibition spaces Provide support to home builders to improve cost-efficiency in attracting customers and to impro
Slide 31: Strengthen Media Power - Make more global investment
Strengthen Media Power - Make more global investment - Established partnership with 台湾房屋, one of the largest Real Estate company in Taiwan Aim for stimulating investment in real estate and expanding the real estate market Partner company LIFULL Provide information Post ・sales information partner Int
Slide 32: Promotions
Promotions Communicating via various types of media to strengthen LIFULL HOME’S brand power Video Ads（WEB/SNS/Transportation Ads） Transportation Ads WEB/SNS Ad posters hung in trains, ad stickers placed next to doors in trains, ads displayed in Tokyo Metro’s concourse visions LIFULL HOME’S Beach Hou
Slide 33: Overseas Business
Overseas Business Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 32
Slide 34: Overseas Business Highlights
Overseas Business Highlights 1. Trovit, an overseas subsidiary, has been a driving force both in terms of revenue and profit 2. Aim to acquire Mitula, a company with steadily growing revenue and profit FY 2017 actual results Revenue: JPY 2.8 billion, EBITDA: JPY 0.9 billion 3. Will be an undisputed
Slide 35: Overseas Business Actual Results - Revenue (by quarter)
Overseas Business Actual Results - Revenue (by quarter) Overseas Business has been growing lead especially by Trovit Unit: JPY 100 million 9.8 9.3 9 8.8 8.6 Others 8.4 7.5 7.5 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 FY2017/3 FY2017/9 FY2018/9 34
Slide 36: Overseas Business Actual Results - Operating Profit (by quarter)
Overseas Business Actual Results - Operating Profit (by quarter) Overseas Business has been growing lead especially by Trovit Unit: 100 million JPY 3.3 3 2.6 2.6 2 2 2.1 2 Others 2 1.2 1 0 PPA -1 International Business Division ▲1 ▲ 1.1 ▲ 1.2 ▲2 Mitula Acquisition -2 ▲ 1.3 ▲ 1.3 ▲ 1.4 ▲ 1.3 related
Slide 37: Overseas Business - Trovit Growth Strategy
Overseas Business - Trovit Growth Strategy Increase the profit by increasing the number of traffic and then by navigating the traffic well Trovit revenue structure focus points Hign Trovit revenue Enhance marketing activities New Secure development resource products Unit price Enhance sales capabili
Slide 38: Trovit x Mitula Group
trovit x MitulaGroup°®
Slide 39: About Mitula - Company Overview
About Mitula - Company Overview - ˃ Name : Mitula Group Limited https://www.mitulagroup.com ˃ Listed Exchange : Australian Securities Exchange ˃ Shares Outstanding : 215,406,884 shares ˃ Business : Operation of Aggregator Websites and Portal Sites ˃ Financial Result : Revenue 33.6 million AUD (appx.
Slide 40: About Mitula - Service
About Mitula - Service - An aggregation website operator providing its service in over 50 countries ＜number of countries < Services provided by Mitula > the service is provided＞ 【subsidiaries】 【service】 【business Overview】 Mitula Operate aggregator sites in the fields Classified of housing, cars, jo
Slide 41: About Mitula - financial results in the past
About Mitula - financial results in the past - Steady growth of revenue and profit Highly profitable business with 34.7% EBITDA margin Revenue (AUD) EBITDA (AUD) 40 9-fold in 5 years 14 12-fold in 5 years $11.9m $11.6m 12 35 $33.6m 10 30 $28.0m 25 8 $7.5m $20.6m 20 6 $5.4m 15 $10.7m 4 10 $1.9m $5.3m
Slide 42: Trovit x Mitula Growth Strategy - Organizational Structure
Trovit × Mitula Growth Strategy - Organizational Structure - Trovit and Mitula will be consolidated to share the strength with each other (reference: p.17 of the material disclosed on May 9) To be consolidated Significant improvement of development, technology and sales capability as well as marketi
Slide 43: Trovit x Mitula Growth Strategy - Improve the traffic share
Trovit × Mitula Growth Strategy - Improve the traffic share - Strengthen SEO by integrating knowhow of the two companies Websites of Trovit and Mitula will not be consolidated to fully capture the users by dominating the SEO highly ranked websites. < example 1: Search result > < example 2: Traffic s
Slide 44: Trovit x Mitula Growth Strategy - Improve Average Customer Spend
Trovit × Mitula Growth Strategy - Improve Average Customer Spend - Be a price leader by utilizing the massive traffic volume generated by the two companies. Increase the revenue New products Enhance sales capability Ad revenue by acquiring Mitula Google AdSense Enhance ability to attract more custom
Slide 45: Trovit x Mitula Growth Strategy - Service
Trovit × Mitula Growth Strategy - Service - Increase potential value per user to capture multi-dimension revenue opportunities High 3)Transaction • Quality customer Value Potential referral • Closing • Secondary Markets （Peripheral areas） 2) Advertisement • E-mail Marketing ★ • Retargeting ★ • Banne
Slide 46: Synergy to be generated by Trovit x Mitula
Synergy to be generated by Trovit × Mitula - Image of Overseas Business Forecast - Both revenue and EBITDA will grow significantly not only because of the organic growth of the two companies but also because of the synergy effect. 【Image of Trovit×Mitula Business Forecast】 （unit: 100 million JPY) 81
Slide 47: Synergy to be generated by Trovit x Mitula
Synergy to be generated by Trovit × Mitula - Image of Overseas Business Forecast - Both revenue and profit are expected to grow significantly. （unit: JPY 100 million) Revenue EBITDA Net Profit 82~87 24~29 16~19 35 9 6 trovit trovit × Mitula trovit trovit × Mitula trovit trovit × Mitula Note 1: Above
Slide 48: Impact Following Mitula Acquisition - Size of impact per share
Impact Following Mitula Acquisition - Size of impact per share - Although stock value will be diluted by 15.6% at maximum after the issuance of common shares, the size of consolidation synergy is expected to be bigger. [ Dilution by issuing common shares ] [ expected profit increase after the consol
Slide 49: Others Business
Others Business Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 48
Slide 50: Others Business Actual Results - Revenue
Others Business Actual Results - Revenue The Business has been growing lead especially by the four spin-off subsidiaries <Revenue by quarter> 単位：億 Unit: JPY 100 million 5.4 5.2 5 4.7 New businesses 4.6 excluding the “LIFULL senior” transferred to Others Business four businesses Establishment of the
Slide 51: Others Business Actual Results - Operating Income (quarterly)
Others Business Actual Results - Operating Income (quarterly) Existing business increased steadily. Other business is investment stage, but plan to further grow further 1.1 <Operating Income by quarter> Unit: JPY 100 million 1 0.6 0.6 0.4 0.5 0.5 Existing businesses * 0.3 0.2 0.2 0.2 0.1 0 -0.1 -0.1
Slide 52: Make every LIFE FULL.
m7 |, LIFULL Make every LIFE FULL.
Slide 53: Appendix
Appendix rq LJ) CIFULL
Slide 54: Corporate Info (as of June 30, 2018)
Corporate Info (as of June 30, 2018) 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 3,999 million Stock issues 118,7
Slide 55: LIFULL HOME'S
LIFULL HOME’S LIFULL HOME’S, a real estate and housing information listing site https://www.homes.co.jp/ • “LIFULL HOME‘S” is the No.1* real estate and housing information listing site in Japan. *Sankei Medix (2018.1.30) • LIFULL has an internal team specialized in improving information accuracy and
Slide 56: LIFULL Service List
LIFULL Service List LIFULL provides a wide range of user-friendly and realtor-friendly services Mortgage estimates Escrow Being Under development/in Not provided planning undertaken Online property For users Call Center Counter Viewing Online contact Started to provide since FY18/9 Q1 LIFULL HOME’S
Slide 57: LIFULL HOME'S Core Strategy
Mid-to-Long Term Global Platform Strategy Roadmap Expanding real-estate in the real estate field Stimulating markets real-estate Transforming markets the real-estate industry Covering the Akiya Bank Covering the Data- information and evaluations Building the global Vacation rental information of bas
Slide 58: Number of Affiliated Realtors
Number of Affiliated Realtors * Affiliated realtors’ network has been expanding steadily Mid to Long-Term Target 40,000 realtors *Number of real estate agents as part of the number of clients (realtors) on P22 Steady Growth 24,575 realtors 23,384 realtors 2011 2017 2018 Mar. June June 20XX 57
Slide 59: Number of Properties Listed
Number of Properties Listed - Rentals, Real Estate Sales, New Houses and Condos - Rentals and Real Estate Sales New Houses and Condos (mil) 8 (building) 13,103 buildings 7.79mil 6.66mil 10,000 6 8,992 buildings 8,000 6,000 4 4,000 2 2,000 0 0 2008 2017 2018 Co. Co. Co. 2010 2017 2018 Apr. June June
Slide 60: Revitalizing the Second-Hand Market
Revitalizing the Second-Hand Market Work to solve the social problem of “empty homes” by providing various solutions such as by developing a comprehensive database of vacant homes, and by developing new ways to utilize them Develop Akiya Bank New Uses Developing a Support new uses for comprehensive
Slide 61: LIFULL HOME'S Akiya Bank Official Release
LIFULL HOME’S Akiya Bank Official Release Currently, 500 local governments (out of appx 900 total) have registered for the service (as of July 26, 2018) Newly added functions: LIFULL HOME’S Akiya Bank map-based search, hazard maps, etc… https://www.homes.co.jp/akiyabank/ 60
Slide 62: RAKUTEN LIFULL STAY - Vacation STAY
RAKUTEN LIFULL STAY - “Vacation STAY” Registration of properties to Vacation STAY - the vacation rental and accommodation reservations site - has begun Global accommodation and vacation rental reservation sites Automatic Posting Fee structure (service charge) Vacation STAY 検索 Plan to collect 3% from
Slide 63: New Business – New Service
New Business – New Service Rental meeting room and rental space information site “LIFULL Rental Space” launched. Rental Meeting Room and Rental Space Information Site Service started Jan 2018 https://www.homes.co.jp/rentalspace 62
Slide 64: LIFULL Group Services
LIFULL Group Services LIFULL Kaigo LIFULL Hoken Sodan LIFULL Interior LIFULL Hikkoshi (nursing care) (insurance consultation) (moving) Website to search nursing care homes Insurance agency search and Furniture / interior EC website Website to make an inquiry or elderly housing appointment website “L
Slide 65: LIFULL Group Companies (1)
LIFULL Group Companies (1) (in chronological order by effective date of establishment or addition to the scope of consolidation) PT. LIFULL MEDIA INDONESIA Planning and operation of “LIFULL Rumah” a real estate and housing information website in Indonesia (equity method affiliate) Home hunting p
Slide 66: LIFULL Group Companies (2)
LIFULL Group Companies (2) (in chronological order by effective date of establishment or addition to the scope of consolidation) LIFULL bizas Administration and other back office operation outsourcee Call center operation outsourcee LIFULL Social Funding Operating “Japan Giving” and “Shooting
Slide 67: Segments and Major Services
Segments and Major Services Segments Main services HOME’S Services Business LIFULL HOME’S AD Master (former Renter’s Net) NabiSTAR LIFULL Marketing Partners Co., Ltd. Overseas Business Trovit (Trovit Search, S.L.) LIFULL Tech Vietnam Co., Ltd. Others Business LIFULL Kaigo (nursing care) (LIFULL seni
Slide 68: Consolidated Statements of Profit and Loss (quarterly)
Consolidated Statements of Profit and Loss (quarterly) FY2016/03 FY2017/03 FY2017/09 FY2018/09 Unit : JPY mil 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q Revenue 5,457 6,441 6,280 7,527 6,846 6,910 7,107 9,056 7,793 8,154 8,128 9,541 8,345 HOME'S Services Business 4,280 5,210 5,167 6,263 5,616 5,782 5,95
Slide 69: External Market Data
External Market Data 2015 2016 2017 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 40,449 35,772 35,898 2,903 2,701 7,007 1,384 2,310 3,408 2,741 2,603 2,2
Slide 70: IR Office Information
IR Office Information IR Website English https://LIFULL.com/en/ir/ Japanese https://LIFULL.com/ir/ TEL 03-6774-1603 (Monday to Friday 10:00AM-6:00PM) E-mail ir@LIFULL.com FAX 03-6774-1737 Annual Report 2017 Other Information Twitter Facebook Page Japanese https://lifull.com/news/10305/ English https