Lifull Co.ltd. · TSE:2120
Lifull Co.ltd — Q2 FY2025/9 Earnings Presentation
52 slides from Lifull Co.ltd's earnings presentation, May 2025
Slide 1: Second Quarter Results FY 2025/9 Q2
LIFULL Co., Ltd. Second Quarter Results FY 2025/9 Q2 (October 2024 – March 2025) 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 various
Slide 2: Index
Index 1. Main Points for the Second Quarter (FY 2025/9) 2 2. FY 2025/9 Q2 Earnings Digest 3 3. Second Quarter Topics - Strategic Transformation of the Overseas Business 7 - HOME'S Services 13 4. FY 2025/9 Q2 Financial Results 20 5. Revisions to the Full-Year Forecast 25 6. Enhancements to Shareholde
Slide 3: Main Points
Main Points 1. Steady growth in revenue and profit for the HOME'S Services segment 2. Strategic Transformation of Overseas Segment and Revisions to Full-Year Results Forecast • Significantly reduced risk to balance sheet • Reclassified loss-making Overseas segment to discontinued operations • Upward
Slide 4: FY 2025/9 Q2 Earnings Digest
FY 2025/9 Q2 Earnings Digest 3
Slide 5: Consolidated Summary of FY 2025/9 Q2 Revenue
Consolidated Summary of FY 2025/9 Q2 Revenue Positive results (+7.6% YoY) primarily from growth initiatives in the HOME'S Services segment (More details from page 13 onward) +7.6% (Unit: JPY Bil.) Consolidated Revenue (Six-Month Period Ended March 31, 2025) Results YoY 13.28 14.29 ¥14.2 Bil. +7.6% F
Slide 6: Consolidated Summary of FY 2025/9 Q2 Operating Profit
Consolidated Summary of FY 2025/9 Q2 Operating Profit Increased profit (+6.2% YoY) primarily due to revenue growth and improved profitability of HOME'S Services (More details from page 13 onward) • Operating profit increased 2.2-fold after removing one-time gains from the sale of LIFULL SPACE in the
Slide 7: Consolidated Summary of FY 2025/9 Q2 Segment Summary
Consolidated Summary of FY 2025/9 Q2 Segment Summary Significant improvement in profitability of the Group • Overseas reclassified to discontinued operations. HOME'S Services only remaining reportable segment • Improved profitability of HOME'S Services with reduced losses in Other Businesses HOME'S
Slide 8: Strategic Transformation of Overseas Segment
Second Quarter Topics Strategic Transformation of Overseas Segment 7
Slide 9: Main Points of the Strategic Transformation
Main Points of the Strategic Transformation 1. Exit from loss-making businesses 2. Results of the strategic transformation • Significantly reduced risk to balance sheet (Reduced risk of goodwill impairment and payments of long-term financial liabilities (future payments)) • Improved profitability af
Slide 10: Strategic Transformation of Overseas Background
Strategic Transformation of Overseas Background • Originally targeted international expansion of services similar to HOME'S with acquisitions of multinational aggregation services, but rapid changes in external factors led to declines in profitability • Resolved to exit overseas operations to focus
Slide 11: Results of the Strategic Transformation Balance Sheet
Results of the Strategic Transformation Balance Sheet Significant reduced risk to our balance sheet • Transferred goodwill to investment securities (¥5.9 bil.) reducing percentage of total assets • As there is no remaining goodwill, there is no longer any risk of impairment on the balance sheet. • L
Slide 12: Results of the Strategic Transformation Statement of Profit and Loss
Results of the Strategic Transformation Statement of Profit and Loss Loss-making Overseas segment deconsolidated and reclassified to discontinued operations • Improved profitability and accelerated growth of domestic businesses directly impact consolidated earnings Image of Profit and Loss Statement
Slide 13: Re-focusing our Resources on our Businesses in Japan
Next Step: Re-focusing our Resources on our Businesses in Japan Stepping back from international expansion and prioritizing continued growth in HOME'S Services Created with Mapchart 12
Slide 14: HOME'S Services
Second Quarter Topics HOME'S Services 13
Slide 15: HOME'S Services: Growing according to plan
FY 2025/9 Second Quarter Results HOME'S Services: Growing according to plan Segment Results (FY 2025/9 Q2) Revenue Profit YoY YoY ¥13,031 Mil. +7.7% ¥2,175 Mil. +98.6% 1. Driving revenue through site and sales POINT enhancements 2. Boosting profitability via investment optimization 3. Accelerating g
Slide 16: HOME'S Services Revenue Growth
HOME'S Services Revenue Growth • Improvements in traffic and inquiries resulting from continued site developments and sales initiatives • Accelerated revenue growth over the last six quarters Quarterly Revenue Growth Prev. FY +7.7% +7.6% +6.3% +5.4% +1.8% +0.5% Boosting Sales Initiatives Q1 Q2 Q3 Q4
Slide 17: Key Growth Levers of LIFULL HOME'S
Key Growth Levers of LIFULL HOME'S • Growth from strengthened product development and sales initiatives • Proactive implementation of AI also accelerating growth FOCUS PRODUCT Site Improvements PRICE IMPACT • User interface & experience • Design updates Pricing Optimization • Increased brand • New f
Slide 18: Improved Profitability in HOME'S Services
Improved Profitability in HOME'S Services • Enhanced sales team and AI technology boosting revenue growth • Constant monitoring and optimization of advertising and sales costs raising profitability of the segment YoY Revenue +7.7% Accelerated Growth Result YoY Advertising & Sales Costs -5% More Effi
Slide 19: Growth in Kenbiya
Growth in Kenbiya • Enhanced sales initiatives contributing to growth in clients and listings after consolidation of property database with LIFULL HOME'S • Pushing toward becoming the leading investment real estate platform in Japan Investment Real Estate Platform Listings Kenbiya +19.7% 70,913 59,1
Slide 20: Proactive Application of Generative AI
Proactive Application of Generative AI • Leveraging our development team to fully utilize AI both internally and externally • Applying expertise to clients' operations to advance the digital transformation of the real estate industry Revolutionizing the Real Estate Industry Internal More Efficiency
Slide 21: FY 2025/9 Q2 Financial Results
FY 2025/9 Q2 Financial Results Reclassification of the Overseas segment has been reflected in the figures for the previous fiscal year. 20
Slide 22: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS • HOME'S Services in-line with targets and driving overall growth. Revenue: +7.6% YoY, Operating Profit: +6.2% YoY（2.2-fold increase after removing effects of one-off gains in the previous FY) • Significant improvement to net profit primarily due to gains
Slide 23: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS • Revenue (+7.7% YoY) and profit (98.6% YoY) growth from initiatives in HOME'S Services (See page 12 onward for details) • Reduced losses in Other Businesses due to growth in LIFULL senior and Regional Revitalization as well as the addition of revenue from R
Slide 24: Condensed Statement of Financial Position and Goodwill IFRS
Condensed Statement of Financial Position and Goodwill IFRS • Goodwill reclassified to investment securities as part of strategic transformation of Overseas segment • Significantly lower risk of goodwill impairment and long-term financial liabilities (future cash payments) As of As of Change Change
Slide 25: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS • Increase in operating cashflow due to profit in continuing operations • Fluctuations in investing and financing cash flows due to acquisition of Rakuten STAY properties, transformation of Overseas and repayment of loans • Cash and cash equivalents decreased to
Slide 26: Revisions to the Full-Year Forecast
Revisions to the Full-Year Forecast 25
Slide 27: Main Factors of the Revisions
Main Factors of the Revisions 1. Upward revision to net profit resulting from the strategic transformation of the Overseas segment 2. No revisions to HOME'S Services (Continued Growth) 3. Revisions for delays in Other Businesses (Other Changes): Changes to breakdown of Selling, General and Administr
Slide 28: Revised Full-Year Forecast for FY 2025/9
Revised Full-Year Forecast for FY 2025/9 Overview of Revisions • Retroactively reclassified Q1 Overseas results to discontinued operations and accounting treatment applied • Adjusted results of Other Businesses to reflect delays in business plans • No adjustments made to HOME'S Services - in-line wi
Slide 29: Revised Forecast: Profits at Each Stage
Revised Forecast: Profits at Each Stage • Although the reclassification of the Overseas segment to discontinued operations and delays in Other Businesses impacted operating profit, the overall total remains unchanged • Gains from the loss of control of a subsidiary and tax adjustments associated wit
Slide 30: Enhancements to Shareholder Returns
Enhancements to Shareholder Returns (Increases to Dividend Payout Ratio & Issuance of a Commemorative Dividend) 29
Slide 31: Will-Centric Public Interest Capitalism
LIFULL Group Management Policy Will-Centric Public Interest Capitalism Society & Environment Services to enhance peoples' lives Consumers (i.e. LIFULL HOME'S) Consumers Services to improve the efficiency of Clients our clients' businesses Creating the best team Partners Clients Employees Employee st
Slide 32: Increase to the Dividend Payout Ratio
Increase to the Dividend Payout Ratio The strategic transformation of the Overseas segment has stabilized our financial base, and we in a position to completely focus on growing our profitable businesses in Japan. Therefore, we have resolved to increase shareholder returns. Dividend Policy Concept F
Slide 33: Calculation of Regular Dividends
Calculation of Regular Dividends • Distributable earnings are calculated in-line with our dividend policy by excluding certain non-recurring, non-cash factors from the current profit. Dividend Policy Payout Ratio No changes have been applied to the dividend policy apart from the increase Potential P
Slide 34: Commemorative Dividend
Commemorative Dividend As we will celebrate the 30th anniversary of the founding of the company on July 1, 2025, we will issue a commemorative dividend of ¥1.0 per share in appreciation of the support of our shareholders. Record date: Sep. 30, 2025 (Subject to approval at the Annual General Meeting
Slide 35: Share Price vs. Segment Profit and Loss
Share Price vs. Segment Profit and Loss • Share price has continued to decline with declining performance of the Overseas segment • Targeting increased corporate value as domestic businesses continue to become more profitable Segment Profit/Loss and Share Price Avg. Share Price (JPY) Segment Profit
Slide 36: Enhancing shareholder returns as our domestic businesses grow
Enhancing shareholder returns as our domestic businesses grow Businesses Shareholder Returns Strategic Transformation of • Increased dividend payout ratio by 5 pp. Overseas • Significantly reduced risk to the • Issuing a commemorative dividend balance sheet for the founding of the company • Improved
Slide 37: Share Acquisition by Representative Director, ITO Yuji
Share Acquisition by Representative Director, ITO Yuji ITO will be acquiring approx. ¥300 mil. worth of shares of the Company from the market from May 15, 2025 Overview Acquisition Period: For a certain period beginning May 15 Acquisition Amount: ¥300 mil. (Including trading fees) (Max. 1.37 mil. sh
Slide 38: Appendices
Appendices 37
Slide 39: Corporate Information (as of March 31, 2025)
Corporate Information (as of March 31, 2025) 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 INOUE Takashi ITO Yuji Apr. 2022 Transitio
Slide 40: 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 41: Market Needs Over Time (End Users and Real Estate Professionals)
Market Needs Over Time (End Users and Real Estate Professionals) The housing market is evolving. With robust internet access and diverse lifestyles are shifting demand from simply more units to higher quality living. This presents a prime opportunity for innovation. Internet Smartphone Remote Work H
Slide 42: LIFULL HOME'S Worldview (Reference)
LIFULL HOME'S Worldview (Reference) DISCOVERY INQUIRY Inquiries more likely to CONVERSION convert are the value CONSIDERATION VIEWING we provide to our clients More Inquiries Better Conversion Rates • Better UX & UI • Promotion • SEO • More clients and Sumai No Madoguchi Utilization of AI Richer Lea
Slide 43: HOME'S Services Key Performance Indicators Client Network and ARPA
HOME'S Services Key Performance Indicators Client Network and ARPA Continued growth in the client network due to sales initiatives ARPA increased due to increased traffic and in-coming inquiries. 6-Month Average 6-Month Average Client Network ARPA (JPY) FY 2023/9 FY 2024/9 FY 2025/9 FY 2023/9 FY 202
Slide 44: Share Transfer Structure
Share Transfer Structure Shares of LIFULL CONNECT have been contributed in-kind in exchange for 55% non-voting, preferred shares of CONNECT NEXT. (LIFULL CONNECT and CONNECT NEXT will be excluded from consolidation.) Refer to the Jan. 17, 2025, release for more details: (Update) Notice Regarding the
Slide 45: Primary Group Companies
Primary Group Companies (Listed according to date of founding / acquisition) • Operation of one of the largest search engines for nursing homes and senior housing in Japan, LIFULL Nursing Care LIFULL senior Co., Ltd. • Operation of the search site "Minna no ihinseri" for companies which organize the
Slide 46: Segments and Primary Services
Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) 1 NabiSTAR HOME'S Services Kenbiya (Kenbiya Co., Ltd.) Offshore Development (LIFULL Tech Vietnam, LIFULL Tech Malaysia) LIFULL Kaigo (Nursing Care) (LIFULL senior Co., Ltd.) Regional Revitalization Bus
Slide 47: Annual Revenue and Timeline of Company Growth
Sale of LIFULL Annual Revenue and Timeline of Company Growth Marketing Partners Acquisition of FazWaz by LIFULL CONNECT COVID-19 Acquisition of 40 (JPY Bil.) Mitula Group Ltd. Sale of LIFULL SPACE Changed fiscal year (irregular 6-month period) Deconsolidation of 35 ■ Revenue from Overseas Changed co
Slide 48: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly FY2024 FY2025 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Revenue 6,096 7,183 6,374 6,657 6,458 7,833 Changes from FY 2025/9 Q2 HOME'S Services 5,527 6,575 5,860 6,060 5,951 7,079 Other Businesses 569 608 513 596 506 753 • The Overseas segment has been recla
Slide 49: Adjustments to Breakdown of SG&As
Adjustments to Breakdown of SG&As From the second quarter, we have revised the breakdown of our selling, general and administrative expenses. These changes will better align our perspective with investors. Selling, General and Administrative Expenses Before After From FY 2025/9 Q2 Reason for Changes
Slide 50: (Ref.) External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2023 2024 2025 2022 2023 2024 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 29,569 26,886 23,003 1,486 2,743 5,975 1,112 1,319 2,451
Slide 51: (Ref.) 2023 Housing and Land Survey Results (Statistics Bureau of Japan)
(Ref.) 2023 Housing and Land Survey Results (Statistics Bureau of Japan) The Statistics Bureau of Japan released the results of the Housing and on Sep. 30, 2024. The number of dwellings has continued to increase by 23.1 mil. from 2018 totaling 65.04 mil. as of Oct. 1, 2023. Trend of Total Dwellings
Slide 52: IR Team Contact Information
IR Team Contact Information IR Site Japanese English https://lifull.com/ir/ https://lifull.com/en/ir/ TEL +81-3-6774-1603 E-mail ir@LIFULL.com (Weekdays 10:00 - 18:00 JST) LIFULL Sustainability Data Other Information about LIFULL (Prev. Twitter) Facebook Page LIFULL Sustainability Search Username：@L