Slide 1: First Quarter Results FY 2023/9 Q1
LIFULL Co., Ltd. First Quarter Results IFRS FY 2023/9 Q1 (October 2022 – December 2022) 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 v
Slide 2: Index
Index 1. Main Points for FY 2023/9 First Quarter P 2 2. First Quarter Financial Results P 4 3. Recovery & Growth Strategy of LIFULL HOME'S P 10 4. Overseas Businesses • Acquisition of FazWaz P 16 • Potential for FazWaz Lead Qualification P 21 5. Additional Earnings Information P 24 6. Appendices P 2
Slide 3: Main Points I
Main Points I Results for FY 2023/9 Q1 Smooth Progress in LIFULL HOME'S Revenue (YoY) Ref. Forecast for FY 2023/9 Revenue +2.9% 1 +3.9% 1 Excluding revenue from LIFULL Marketing Partners FY 2022/9 Full-Year (sold Sep. 2022) Earnings Presentation Page 37 2
Slide 4: Main Points II
Main Points II FY 2023/9 First Quarter Sales Revenue Operating Profit Other Topics ¥7.5 bil. ¥0.8 bil. YoY -10.9% YoY +40.8% Growth Initiatives in Real Estate Services in Thailand Progressing in-line with forecasts. In addition to revenue growth in Acquiring Thai real estate +1.5% YoY growth after r
Slide 5: First Quarter Financial Results
FY 2023/9 First Quarter Financial Results (October 1, 2022 – December 31, 2022) 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 Largely progressing in-line with forecasts (Page 9.) Removing effects of sale of LIFULL Marketing Partners and Fashiola in the previous FY, revenue increased 1.5% YoY. Increase of ¥0.66 bil. in other income is primarily from sale of shares of Rakuten LIFU
Slide 7: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS Revenue for the HOME'S Services segment increased 3.9% YoY without regard to the sale of LMP in the previous FY with an increase in segment profit due to reducing advertising spending to around the same level as FY 2021/9. Overseas revenue decreased 17.5% du
Slide 8: Status of LIFULL CONNECT
Status of LIFULL CONNECT Revenue from Premium Advertisements on aggregation sites was lower than expected due to market conditions in several countries primarily in southern Europe. Other areas are mostly in-line with forecasts. Status Details vs. Budget Premium By unifying CPC across aggregation br
Slide 9: Improvement of Profitability in Other Businesses
Results of Selective Focus Profitability of Other Businesses We have reduced losses in the Other Businesses segment while focusing on growth in our core businesses, LIFULL HOME'S and LIFULL CONNECT. Investments up to FY 2022/9 Improvement of Profitability in Other Businesses Regional Revitalization
Slide 10: FY 2023/9 Forecast and Progress IFRS
FY 2023/9 Forecast and Progress IFRS Earnings for the first quarter were mostly on-track. Continuing improvements in HOME'S Services for the peak moving season in Japan (Jan. - March) Condensed Statements of Income and Loss Revenue by Service FY2023 FY2023 Q1 FY2023 FY2023 Q1 Oct.-Sep. Oct.-Dec. Oct
Slide 11: Recovery & Growth Strategy of LIFULL HOME'S
Recovery & Growth Strategy of LIFULL HOME'S Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 10
Slide 12: First Quarter Results for HOME'S Services
First Quarter Results for HOME'S Services For the first quarter, revenue is above original forecasts, and initiatives for the peak moving season of January to March are progressing according to plan. Sales Revenue Segment Profit YoY YoY +3.9% (After excluding LIFULL Marketing Partners from previous
Slide 13: Changes to the Advertising Strategy
Changes to the Advertising Strategy We reduced spending on branding that had risen in the previous year and are focusing on optimizing the effectiveness of advertising resulting in increased revenue YoY. Breakdown of Advertising Spend Considerations for Advertising Other Branding -57％ Media Channels
Slide 14: SUPER HYPER ASSISTANT Progress and Results
SUPER HYPER ASSISTANT Progress and Results More inquiries from users after further optimizing the pages and features of LIFULL HOME'S Growth Strategy of LIFULL HOME'S (No Changes) Transforming LIFULL HOME'S into a SUPER HYPER ASSISTANT for users and real estate professionals Real Estate Feature Deve
Slide 15: LIFULL HOME'S Growth Strategy (Ref., No Changes)
LIFULL HOME'S Growth Strategy (Ref., No Changes) We are driving the value (transactions) we provide to clients to become a more efficient platform for finding a new home Original Our Goal Exposure Exposure Discovery Discovery Consideration Power Up Consideration Inquiry Inquiry Viewings Personalizin
Slide 16: Up-Coming Initiatives for FY 2023/9
Up-Coming Initiatives for FY 2023/9 Steady progress toward our transformation into a SUPER HYPER ASSISTANT Initiatives After Q2 (Examples) Improvement of AI Features Additional Support for Users & Clients More complete details in inquiries • Accuracy of 不動産屋 to increase the ease of recommendations c
Slide 17: Acquisition of FazWaz (Thailand)
Acquisition of FazWaz (Thailand) Point 2 Point 1 Point 3 ・Existing Services in Growth Strategy of Potential for FazWaz Thailand LIFULL CONNECT System ・Overview of FazWaz (Page 17) (Page 21) (Page 18) 16
Slide 18: LIFULL CONNECT Growth Strategy (No Changes)
LIFULL CONNECT Growth Strategy (No Changes) We are providing the best platforms for each region where we are active Development of Services Provided Online Real Solution (Brands) Estate Information Highly-Developed Regions Aggregation Sites One or a few dominant real estate portals • Providing traff
Slide 19: Existing LIFULL CONNECT Services in Thailand
Existing LIFULL CONNECT Services in Thailand In Thailand, LIFULL CONNECT operates multiple real estate portals under its subsidiary Dot Property alongside a real estate agency business and real estate-related events. Largest Network of Dot Property Real Estate Portals in Thailand Thailand Revenue PO
Slide 20: Agreement to Acquire FazWaz (Thai Real Estate Brokerage)
Agreement to Acquire FazWaz (Thai Real Estate Brokerage) With similar operations as Dot Property, we have entered into an agreement to acquire FazWaz, a growing real estate brokerage in the region. With access to its network of users, clients and management, we will continue to grow in Southeast Asi
Slide 21: Scope of FazWaz
Scope of FazWaz Continued growth in revenue and EBITDA Effects from the consolidation included in FY 2023/9 Results Forecast Ref. Earnings Trend In-House Agents Un-audited earnings (Unit: JPY) 2020 2021 2022 Revenue Approx. EBITDA 300 Mil. Approx. Approx. Approx. Approx. 20 30 80 200 Mil. Transactio
Slide 22: Potential for FazWaz Lead Qualification
Potential for FazWaz Lead Qualification Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 21
Slide 23: FazWaz X LIFULL Group Potential for Lead Generation System
FazWaz X LIFULL Group Potential for Lead Generation System We have also gained insight into lead generation through a system that FazWaz has developed. We will consider future synergies and explore opportunities to provide more value through the services offered through LIFULL CONNECT and the LIFULL
Slide 24: Lead Generation System
Lead Generation System Understanding user needs and nurturing them until they are ready to move on to the next step to improve overall conversion rates for real estate professionals. Lead Generation System Users Lead Generation Real Estate Professionals System In-House / External User Nurturing Inqu
Slide 25: Additional Earnings Information
Additional Earnings Information Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 24
Slide 26: Condensed Statement of Financial Position and Goodwill IFRS
Condensed Statement of Financial Position and Goodwill IFRS Reduction in total equity due to share buy-back of about ¥1.0 billion. As of As of Change Change Main items Unit: JPY mil. Sep 30, 2022 Dec 31, 2022 % Current assets 25,011 23,460 -1,550 -6.2% Cash -1,954 Refer to "Condensed Statement of Ca
Slide 27: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS Despite proceeds from the sale of shares of Rakuten LIFULL STAY, cash and cash equivalents decreased by ¥1.9 billion due to repurchase of shares, payment of dividends and repayment of loans. FY2022 Q1 FY2023 Q1 Change Main items Unit: JPY mil. (Oct.-Dec.) (Oct.-
Slide 28: Completion of Repurchase of Treasury Shares
Completion of Repurchase of Treasury Shares The repurchase of treasury shares announced after the Board of Directors meeting on Nov. 9, 2022, was completed on Nov. 18 (execution basis) resulting in improved ROE and capital efficiency. Overview of Repurchase of Treasury Shares (Execution Basis) Items
Slide 29: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 28
Slide 30: Corporate Information (as of December 31, 2022)
Corporate Information (as of December 31, 2022) Company LIFULL Co., Ltd. Stock code 2120 (TSE Prime) Representative INOUE Takashi, President and CEO History Mar. 12, 1997 Established Oct. 2006 Listed in TSE, Mother's Section Mar. 2010 Listed on TSE 1st Section Apr. 2022 Transition to TSE Prime Presi
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. 1 • 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 L
Slide 33: Segments and Primary Services
Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) NabiSTAR HOME'S Services Advertising & Consulting Agency (LIFULL Marketing Partners Co., Ltd.) 1 Kenbiya (Kenbiya Co., Ltd.) Trovit (LIFULL CONNECT) Mitula (LIFULL CONNECT) Nestoria (LIFULL CONNECT) RE
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) Changed company name 37.0 to LIFULL Co., Ltd. 35 Acquisition of LIFULL MP 30 Acquisition of LITTEL Acquisition 25 (Merged in 2011) of Trovit Cha
Slide 35: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly FY2020 FY2021 FY2022 FY2023 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue 9,202 9,983 7,706 8,510 8,271 9,581 9,072 8,931 8,510 9,530 8,645 9,044 7,583 HOME'S Services 6,763 7,543 6,176 6,652 6,346 7,260 6,550 6,535 6,139 7,085 6,2
Slide 36: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Reduction in cost of sales from the sale of LIFULL Marketing Partners 4.3% 12.1% -0.7pt 11.4% -0.3pt 11.1% -6.8pt 21.2% 21.1% +3.6pt -0.8pt -2.8pt 24.8% 24.0% Cost of Sales Other SG&A 32.7% -1.8pt +6.0pt 27.8% +0.6pt 26.1% 32.1% Advertising Expenses Personnel Expenses +
Slide 37: LIFULL HOME'S Key Performance Indicators Client Network and ARPA
LIFULL HOME'S Key Performance Indicators Client Network and ARPA Although the total number of clients declined due to the removal of professional networks which included small-scale, non-active clients. Increased ARPA due to improved revenue. 3-Month Average 3-Month Average Client Network ARPA (JPY)
Slide 38: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT Reduced revenue primarily due to sale of fashion aggregation site in FY 2022/9 and delay in revenue from Premium Advertisements. Results from LIFULL CONNECT1 in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR Sale of Fashiola2 10,183 Q4 Q1 Q2 Q3 Q4
Slide 39: Overseas Segment Results
Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Current trend primarily due a decline revenue from aggregation sites and a temporary increase in personnel costs. Quarterly Segment P&L ■ LIFULL CONNECT ■ International Division ■ Depreciation ■M&A Costs ■ Other Unit: JPY mil. 591 55
Slide 40: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) Absorption of LIFULL MOVE LIFULL senior and Regional Revitalization businesses currently driving revenue growth into HOME'S Services Quarterly Revenue Unit: JPY mil. 622 ■ Existing businesses2 ■ Other Transfer of LHL1 Founding of 4 companies (incorp
Slide 41: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) Absorption of LIFULL MOVE Transfer of LHL into HOME'S Services Quarterly Segment Profit and Loss Unit: JPY mil. ■ Existing businesses1 ■ Other 85 78 71 59 61 58 53 42 34 Founding of 4 companies (incorporation-type company split) -155 -155 -211 -22
Slide 42: (Ref.) External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2021 2022 2020 2021 2022 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 27,228 33,636 29,569 2,055 5,452 6,649 1,128 2,287 2,492 2,426 2,466 1,913 2,268 1
Slide 43: (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 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 2021 Other Information about LIFULL Twitter Facebook Page Japanese https://ir.lifull.com/ir/ir-data/report/ Englis