Slide 1: Second Quarter Results FY 2023/9
LIFULL Co., Ltd. Second Quarter Results IFRS FY 2023/9 Q2 (October 2022 – March 2023) 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 var
Slide 2: Index
Index 1. Main Points for FY 2023/9 Second Quarter P 2 2. Segment Results • HOME'S Services P 5 • Overseas P 14 • Other Businesses P 21 3. Sustainability Initiatives P 25 4. Second Quarter Financial Results P 28 5. Appendices P 34 6. IR Team Contact Information P 50
Slide 3: FY 2023/9 Second Quarter Earnings Main Points
FY 2023/9 Second Quarter Earnings Main Results: POINTS Progressing in-line with forecasts Results Topics Regional LIFULL LIFULL Revitalization Sustainability HOME'S CONNECT Fund Initiatives Continuing to make Completion of two Sale of two Management policy progress according acquisitions investment
Slide 4: Q2: Revenue (Excluding Sale of Businesses in Previous FY)
Q2: Revenue (Excluding Sale of Businesses in Previous FY) After removing effects of sale of businesses in previous fiscal year, revenue grew considerably by +20.1% due, in part, to overseas acquisitions. Unit: JPY Bil. Businesses sold1 in prev. FY➡ 2.0 Increased +20.1％ 19.1 YoY 15.9 1 Sold Businesse
Slide 5: Q2: Operating Profit (Excluding LIFULL Regional Revitalization Fund)
Q2: Operating Profit (Excluding LIFULL Regional Revitalization Fund) Profit increased +139% even after removing one-off gains from the sale of investments through the Regional Revitalization Fund. Unit: JPY Bil. One-off gains from sale of 0.5 Increased investments from LIFULL Regional Revitalization
Slide 6: Segment Results: HOME'S Services
Segment Results HOME'S Services Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 5
Slide 7: Results for HOME'S Services Segment
Results for HOME'S Services Segment Continuing to make progress according to schedule due to gradual recovery of inquiries and conversion rate. Progress in-line POINT (Cumm. Total from Oct. – Mar.) with Forecast Increased Inquiries FY 2023/9 Q2 (Oct. – Mar.) Revenue Segment Profit +3.2% YoY 11.9 Bil
Slide 8: Promotion of LIFULL HOME'S
Promotion of LIFULL HOME'S Despite large cuts to spending on branding, we have maintained the effectiveness of our advertising by balancing our marketing mix across different media. ACTIONS Branding Spend (Jan. – Mar.) 「ホームズも見ないのもったいない」 NEW COMMERCIAL 3 Types Title: "You're missing out if you don't
Slide 9: LIFULL HOME'S Worldview: Super Hyper Assistant
SUPER HYPER (Ref.) LIFULL HOME'S Worldview ASSISTANT 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 Personalizing use
Slide 10: Transformation into a Super Hyper Assistant
SUPER HYPER Transformation into a SUPER HYPER ASSISTANT ASSISTANT Through the following actions, we are transforming LIFULL HOME'S into a service that provides even more transactions to our clients. Richer Listings Search Assistance SUPER Personal Support HYPER ASSISTANT NEW!! Transaction Support 9
Slide 11: Super Hyper Assistant - Progress: Richer Listings
SUPER HYPER ASSISTANT - Progress SUPER HYPER Richer Listings ASSISTANT More Properties Richer Content More Reliability More detailed property Working with management Improved Links Total Listings to 3D Floorplans information with companies to automatically (Oct. – Mar.) panorama photos and remove pr
Slide 12: Search Assistance, Personal Support & Transaction Support
SUPER HYPER ASSISTANT - Progress SUPER HYPER Search Assistance, Personal Support & Transaction Support ASSISTANT Search Assistance Personal Support Transaction Support Continued development More effective Face-to- Providing tools to help real estate professionals & improvement of site Face Consultat
Slide 13: Initiatives in the Second Half of the Year
SUPER HYPER ASSISTANT SUPER HYPER Initiatives in the Second Half of the Year ASSISTANT In April 2023, we released the LINE version of AI Homes-kun Beta using ChatGPT technology. With this tool, users can receive simple consultations for finding a new via the chat app, LINE, 24 hours a day. Release :
Slide 14: Progress in the Real Estate Investment Market
Progress in the Real Estate Investment Market We are making progress toward becoming the No.1 site for investment properties by integrating Kenbiya and LIFULL HOME'S Investment. With the completion of the integration of our databases, we are moving on to the next phase of boosting sales. Becoming th
Slide 15: Segment Results: Overseas
Segment Results Overseas Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 14
Slide 16: Results for Overseas Segment
Results for Overseas Segment POINT 2 New Subsidiaries Profitable from Q2 Consolidated from Q2 Quarterly Results Unit: JPY Bil. Segment Revenue FY 2023/9 Q2 (Oct. – Mar.) Revenue Segment Profit 2.43 1.47 3.9 Bil. -0.1 Bil. ¥ ¥ Q1 Q2 Results 1 Segment Profit 0.04 （FY 2022/9: 0.33 Bil.)1 +19.3% － YoY ▲
Slide 17: Progress of FazWaz
Progress of FazWaz Results from Thai real estate brokerage, FazWaz, have been consolidated as of Jan. 2023. The business itself has also been exceeding our original expectations and growing at a rapid pace. Revenue Unit: JPY Bil. Ref. Consolidated from Jan. 2023 Approx. For 3 Months 1.3 Approx. +350
Slide 18: Advancing our Portals in Latin America
Advancing our Portals in Latin America We acquired the Mexican real estate portal, Lamudi. Consolidated from March 2023 MEDIOS DE CLASIFICADOS, (Mexico) S. DE R.L. DE CV https://www.lamudi.com.mx/ Overview Real Estate Client Network Founded 2013 6,000+ Real Estate Location Mexico City, Mexico Employ
Slide 19: Original Forecast for FY 2023/9
Original Forecast for FY 2023/9 In our forecast, we were aiming to increase revenue through the addition of a transactional model and improving CPC unit prices. (Original plans included acquisition of FazWaz as of the beginning of the FY.) Revenue Breakdown Growth Strategy As of Oct. 2022 9.1 (Unit:
Slide 20: Progress of LIFULL CONNECT
Progress of LIFULL CONNECT Despite delays due to external circumstances in Premium Advertisements on aggregation sites, positive performance in real estate portals and transaction services. Status Details vs. Budget Although average CPC unit price continues on a gradual upward Aggregation Premium Pa
Slide 21: Effects on FY 2023/9 Results Forecast
Effects on FY 2023/9 Results Forecast We have altered the breakdown of the original budget, but have not changed the final outlook for the year. We will continue to work toward our total goal for the year focusing on each of our target areas. ¥9.1 bil. ¥9.1 bil. Status Transaction Performance of Ove
Slide 22: Segment Results: Other Businesses
Segment Results Other Businesses Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 21
Slide 23: Results for Other Businesses Segment
Results for Other Businesses Segment LIFULL Revitalization Fund completed sale of 2 investments POINT FY 2023/9 Q2 (Oct. – Mar.) Regional Revitalization Fund Revenue Segment Profit Sold all hotel 3.3 Bil. 0.5 Bil. development ¥ ¥ Results projects +162.6% (FY 2022/9: -¥0.3 Bil.) － YoY Started broadca
Slide 24: Other Businesses 2Q Topics (1)
Other Businesses 2Q Topics (1) LIFULL Regional Revitalization Fund completed sale of 2 investment projects Sold during 2Q (originally expected in H2) Completed sale of all projects planned for the year. About the Regional Revitalization Fund Sale of 2 Hotels Completed in February Overview Approx. LI
Slide 25: Other Businesses 2Q Topics (2)
Other Businesses 2Q Topics (2) Delivery of Instant Houses to Areas Affected by the Earthquake in Turkey & Syria Delivered and assembled Instant Houses as temporary accommodations in areas affected by the earthquakes in Turkey and Syria in a collaboration with NPO Peace Winds Japan. Completed • Const
Slide 26: Sustainability Initiatives
Sustainability Initiatives Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 25
Slide 27: Sustainability Management
Sustainability Management We have taken several initiatives in-line with the Sustainability Issues (materiality) and our Sustainability Policy. Actions During FY 2023/9 Q2 Completed Human Rights Due Diligence for all LIFULL Group Companies Established Whistle Blower Channel for Business Partners (Ma
Slide 28: Sustainability Management Actions through LIFULL HOME'S
Sustainability Management Actions through LIFULL HOME'S We are taking steps to ensure that everyone can find a place to live that makes them happy. Through our LIFULL HOME'S FRIENDLY DOOR initiative, we are increasing visibility of real estate professionals who actively assist individuals with diver
Slide 29: Second Quarter Financial Results
FY 2023/9 Second Quarter Financial Results (October 1, 2022 – March 31, 2023) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 28
Slide 30: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Removing effects of sale of LIFULL Marketing Partners and Fashiola in the previous FY, revenue increased 20.1% YoY. Operating profit improved significantly due to one-off property sales from the Regional Revitalization Fund and reductions to HOME'S advert
Slide 31: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS Revenue for the HOME'S Services segment increased 4.5% YoY excluding revenue from LMP sold in the previous FY with an increase in segment profit due to reduced advertising spend. Overseas revenue increased due to new acquisitions with improvements to profit
Slide 32: Condensed Statement of Financial Position and Goodwill IFRS
Condensed Statement of Financial Position and Goodwill IFRS As of As of Change Change % Main items Unit: JPY mil. Sep 30, 2022 Mar 31, 2023 Current assets 25,011 22,369 -2,641 -10.6% Cash -2,729 Refer to "Condensed Statement of Cash Flows" Accounts Receivable - Trade +1,184 Primarily consolidation o
Slide 33: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS Investing cash flow decreased ¥0.9 bil. due to overseas M&A. Cash and cash equivalents decreased by ¥2.7 bil. due to repayment of loans ending at ¥13.7 bil. FY2022 Q2 FY2023 Q2 Change Main items Unit: JPY mil. (Oct.-Mar.) (Oct.-Mar.) Items FY2022 Q2 FY2023 Q2 Pr
Slide 34: FY 2023/9 Forecast and Progress IFRS
FY 2023/9 Forecast and Progress IFRS Progressing in-line with initial forecasts Condensed Statements of Income and Loss Revenue by Service FY2023 FY2023 Q2 FY2023 FY2023 Q2 Oct.-Sep. Oct.-Mar. Oct.-Sep. Oct.-Mar. Progress Progress [Full-Year [Full-year Unit: JPY mil. [Actual] Unit: JPY mil. [Actual]
Slide 35: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 34
Slide 36: Corporate Information (as of March 31, 2023)
Corporate Information (as of March 31, 2023) 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 Presiden
Slide 37: 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 38: 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 39: 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.) LIFULL CONNECT S.L.U. Aggregation Services: Trovit, Mitula, Nestoria, Nuroa
Slide 40: 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 41: 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 Q2 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 11,585 HOME'S Services 6,763 7,543 6,176 6,652 6,346 7,260 6,550 6,535 6,139
Slide 42: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Reduction in advertising spending due to reductions in branding for LIFULL HOME'S Temporary increase in cost of sales due to sale of investments from the Regional Revitalization Fund 11.9% -0.6pt 11.2% 11.2% -0.1pt +2.2pt 13.4% 20.3% +1.9pt 22.3% +0.8pt Cost of Sales 23
Slide 43: 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. 6-Month Average 6-Month Average Client Network ARPA (JPY)
Slide 44: (Ref.) Agreement to Acquire FazWaz
(Ref.) 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 Southe
Slide 45: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT Despite sale of Fashiola in the previous FY, revenue increased due to the acquisition and consolidation of FazWaz in January 2023. Consolidation of FazWaz Results from LIFULL CONNECT1 in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR 17,040 Sale of
Slide 46: Overseas Segment Profit and Loss (Quarterly Trend)
Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Despite a decline in premium advertisement revenue in aggregation sites, third-party advertising revenue has recovered and the acquisition of FazWaz have led to increased profit. Quarterly Segment P&L ■ LIFULL CONNECT ■ International
Slide 47: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) One-off earnings from sale of investments Regional Revitalization Fund investments sold by Regional Revitalization Fund Quarterly Revenue Unit: JPY mil. ■ Existing businesses2 ■ Other 2,704 ～ ～ Absorption of LIFULL MOVE into HOME'S Services Transfer
Slide 48: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) In addition to the sale of investments made by the Regional Revitalization Fund, LIFULL senior has started a television advertising campaign to increase brand awareness. 280 Quarterly Segment Profit and Loss Unit: JPY mil. Absorption of ■ Existing
Slide 49: (Ref.) External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2021 2022 2023 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-23 Feb-23 Mar-23 (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
Slide 50: (Ref.) 2018 Housing and Land Survey Results
(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 Total Dwellings (10,000 Units) +29 Total 900 16.0% +1,779 6,24
Slide 51: 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