Slide 1: Third Quarter Results
LIFULL Co., Ltd. Third Quarter Results IFRS FY2022/9 Q3 (October 2021 – June 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 variou
Slide 2: Index
Index 1. Main Points for FY 2022/9 Third Quarter P2 2. FY 2022/9 Third Quarter Financial Results P3 3. LIFULL HOME'S SUPER HYPER ASSISTANT P 10 4. Revisions to the Full-Year Forecast P 18 5. LIFULL CONNECT P 20 6. Our Strategy Moving Forward P 25 6. Appendices P 28 7. IR Team Contact Information P 4
Slide 3: Main Points for FY 2022/9 Third Quarter
Main Points for FY 2022/9 Third Quarter FY 2022/9 Third Quarter Earnings Revenue ¥26.6 Billion YoY -0.9% Decreased revenue due to reduced inquiries on LIFULL HOME'S from the removal of some site partnerships and low performance of third-party advertising Overseas Operating ¥0.63 Billion Lower profit
Slide 4: Third Quarter Financial Results
FY 2022/9 Third Quarter Financial Results (October 1, 2021 – June 30, 2022) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 3
Slide 5: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Decrease in consolidated revenue due to drop in revenue for in HOME'S Services. (See next page for details.) Decrease in operating profit primarily from lower revenue and proactive investments in HOME'S Services. FY2021 Q3 FY2022 Q3 Change Change % Unit:
Slide 6: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS Lower revenue in HOME'S Services primarily from revision of alliances with partner sites. Lower profit due to proactive growth investments. Reduced revenue from performance of third-party AdSense advertising resulting in lower revenue and profit Overseas. FY
Slide 7: Key Performance Indicators Client Network and ARPA
Key Performance Indicators Client Network and ARPA Our client network continues to progress smoothly in the custom-built, re-sale and investment markets, but the increase in clients and decrease in revenue for HOME'S Services have had a negative impact on ARPA. 9-Month Average 9-Month Average Client
Slide 8: Condensed Statement of Financial Position and Goodwill IFRS
Condensed Statement of Financial Position and Goodwill IFRS Investment in Hash DasH Holdings in February 2022. (See page 33 for more details.) Goodwill for LIFULL CONNECT increased ¥1.7 bil. due to the weaker yen and acquisition of Properati and Wasi. As of As of Change Change Main items Unit: JPY m
Slide 9: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS ¥1.3 bil. increase in operating cash from tax credits received in the current FY for the restructuring of Mitula Group in the previous year. ¥1.0 bil. Increase in investing CF for investment in Hash DasH and Overseas M&A. FY2021 Q3 FY2022 Q3 Change Main items Un
Slide 10: Progress in the Third Quarter
Progress in the Third Quarter Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 9
Slide 11: LIFULL HOME'S Super Hyper Assistant
LIFULL HOME'S SUPER HYPER ASSISTANT Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 10
Slide 12: A Super Hero
SUPER HYPER ASSISTANT A Super Hero With the power to find the right home for anyone's lifestyle Transforming ourselves into a leader for the next generation of websites 11
Slide 13: Q3 Initiatives: POWER UP
Q3 Initiatives POWER Listing Data UP To become a User Friendliness SUPER HYPER ASSISTANT for home-seekers and real estate professionals Site Partnerships 12
Slide 14: POWER UP Listing Data: Improving Listings in Quantity and Quality
POWER UP Listing Data Improving Our Listings in Quantity and Quality In addition to taking action to increase listed properties after the changes to the pricing model in Oct. 2019, we have also been improving information quality to further improve user satisfaction. Quantity Adding More Listings Qua
Slide 15: POWER UP User Friendliness: Growth in Inquiries
POWER UP User Friendliness Growth in Inquiries We have been improving the user interface and experience as part of making LIUFLL HOME'S a Super Hyper Assistant. As a result, we have seen growth in inquiries and the overall conversion rate. Inquiries via LIFULL HOME'S Inquiries via Browser (For Renta
Slide 16: POWER UP Site Partnerships: Revisions to Partner Site Alliances
POWER UP Site Partnerships Revisions to Partner Site Alliances We have revised some of our alliances with partner sites to improve the satisfaction of our client real estate professionals. As a result, we have seen a decrease in overall inquiries. Total Inquiries (Oct. – Jun.) Withdrawal from a (Ren
Slide 17: Transaction-Based Plan with Rakuten Real Estate
POWER UP Site Partnerships Transaction-Based Plan with Rakuten Real Estate Beginning in September 2022, we will offer a transaction-based plan through Rakuten Real Estate offering Rakuten Points and more valuable inquiries to improve user and client satisfaction. Transaction-Based Scheme (Image) WIN
Slide 18: We will be a Super Hero
We will be a Super Hero improving satisfaction for home-seekers and real estate professionals! SUPER HYPER ASSISTANT 17
Slide 19: Revisions to the Full-Year Forecast
Revisions to the Full-Year Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 18
Slide 20: Revisions to FY 2022/9 Full-Year Forecast IFRS
Revisions to FY 2022/9 Full-Year Forecast IFRS We have sold the overseas fashion aggregation service, Fashiola, in order to focus management resources on growth in our core real estate businesses. (See Page 21 for more details.) Condensed Statemants of Income and Loss Revenue by Segment FY2022 FY202
Slide 21: LIFULL CONNECT
LIFULL CONNECT Sale of Non-Core Business and Current Progress Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 20
Slide 22: Restructuring to Promote Core Businesses LIFULL CONNECT
Restructuring to Promote Core Businesses LIFULL CONNECT We have sold the non-core fashion aggregation service, Fashiola, to focus management resources on growth in our core real estate category. Proceeds from the sale will be used for acceleration of real estate-related services. LIFULL CONNECT Aggr
Slide 23: LIFULL CONNECT Revenue Trend
LIFULL CONNECT Revenue Trend Although external factors have caused a drop in overall revenue generated by AdSense, we have been focusing our efforts on increasing sales of our own products and have seen 29% growth in revenue YoY. Breakdown of Sales Revenue Third-Party Advertising Revenue (Excluding
Slide 24: Growth Strategy for Overseas Portals
Growth Strategy for Overseas Portals We are leveraging the advantages of both aggregation sites and local real estate portals to provide more value to users and clients for overall growth. Aggregation Real Estate Sites Portals More Local Sales Teams Users Client Network Real Traffic Technology More
Slide 25: Growth in our Direct Services
Growth in our Direct Services We have been making proactive investments to grow our real estate portals in Latin America and Southeast Asia and have already been seeing increases in real estate clients and revenue YoY. Ref. On-going investments in business growth Impact on Profit ¥0.17 bil. Approx.
Slide 26: Our Strategy Moving Forward
Our Strategy Moving Forward Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 25
Slide 27: Achieving the Goals of Our Mid-Term Strategy
Achieving the Goals of Our Mid-Term Strategy Selective Focus Group To active our the goals set in our Mid-Term Strategy Through our varied endeavors, we are working to find solutions to social issues to Make All LIFE FULL By focusing our resources on our core businesses, we seek to increase revenue
Slide 28: Make Every LIFE FULL
m4 L LIFULL Make Every LIFE FULL 27
Slide 29: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 28
Slide 30: Corporate Information (as of June 30, 2022)
Corporate Information (as of June 30, 2022) Company LIFULL Co., Ltd. Stock code 2120 (TSE Prime) 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 Apr. 2022 Transition to TSE Prime President
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. • 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 LIF
Slide 33: Segments and Primary Services
Segments and Primary Services Segments Main services LIFULL HOME'S AD Master (former Renter's Net) HOME'S Services NabiSTAR Advertising & Consulting Agency (LIFULL Marketing Partners Co., Ltd.) Kenbiya (Kenbiya Co., Ltd.) Trovit (LIFULL CONNECT) Mitula (LIFULL CONNECT) Nestoria (LIFULL CONNECT) RESE
Slide 34: Real Estate Investment Platform Hash DasH Announces First Fund
Real Estate Investment Platform Hash DasH Announces First Fund We initiated investments in Hash DasH Holdings in February 2022 to accelerate the realization of a small-lot real estate investment platform. Hash DasH released details on their first investment property in July 2022. Feb. 2022 Entered B
Slide 35: 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) 36.0 Changed company name to LIFULL Co., Ltd. 35 Acquisition of LIFULL MP 30 Acquisition of LITTEL Acquisition 25 (Merged in 2011) of Trovit Ove
Slide 36: FY 2022/9 Forecast and Progress IFRS
FY 2022/9 Forecast and Progress IFRS Progress toward the forecast revised on August 4, 2022 (Details on Page 19) Condensed Statements of Income and Loss Revenue by Service FY2022 FY2022 Q3 FY2022 FY2022 Q3 Oct.-Sep. Oct.-Jun. Oct.-Sep. Oct.-Jun. Progress Progress [Full-Year [Full-year Unit: JPY mil.
Slide 37: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly FY2018 FY2019 FY2020 FY2021 FY2022 Unit : JPY mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue 8,128 9,541 8,345 8,549 8,391 11,208 9,753 9,944 9,202 9,983 7,706 8,510 8,271 9,581 9,072 8,931 8,510 9,530 8,645 HOME'S Services 6
Slide 38: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Increase in advertising expenses primarily from proactive investments in LIFULL HOME'S. Personnel expenses increased primarily due to acquisition of Properati and Wasi. 11.4% +0.3pt 11.7% -0.9pt 10.7% +0.4pt 11.1% 21.6% -0.9pt 20.7% +1.5pt 22.2% +0.8pt 23.0% Cost of Sal
Slide 39: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT Despite growth in LIFULL CONNECT products, revenue has declined due to low performance in third- party AdSense advertising. Results from LIFULL CONNECT* in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR 11,994 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2
Slide 40: Overseas Segment Results Segment Profit and Loss (Quarterly Trend)
Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Although revenue from real estate portals and premium advertisements on aggregation services continues to grow, lower profit from decrease in third-party AdSense revenue on aggregation sites. Quarterly Segment P&L ■ LIFULL CONNECT ■
Slide 41: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) Existing businesses driving revenue growth. 721 Quarterly Revenue Unit: JPY mil. Transfer of LHL ■ Existing businesses *2 ■ Other new businesses Founding of 4 companies (incorporation-type company split) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1
Slide 42: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) Transfer of LHL Quarterly Segment Profit and Loss Unit: JPY mil. 85 78 71 ■ Existing businesses1 ■ Other new businesses 60 59 61 53 44 41 38 42 33 34 26 ▲97 ▲118 ▲138 ▲142 ▲155 ▲155 ▲167 ▲161 ▲211 ▲223 ▲219 ▲258 ▲261 ▲290 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 43: 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: External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2020 2021 2022 2019 2020 2021 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital
Slide 45: 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 2020 Other Information about LIFULL Twitter Facebook Page Japanese https://ir.lifull.com/ir/ir-data/report/ Englis