Slide 1: Financial Results for Year Ended March 31, 2011
NEXT Co.,Ltd. Co Ltd. Co.,Ltd TSE 1st section 2120 Annual Report of Financial Statement Financial Results for Year Ended March 31, 31 2011 (April 2010 to March 2011) Opinions and forecasts expressed in this document are those of g management as of the date of p publication and management g does not
Slide 2: Contents
Financial Results for the Year Ended March 31, 2011 ・・・ pp. 2-16 Business Forecast for the Year Ending March 31, 2012 ・・・ pp. 17-32 Future Business Development ・・・ pp. 33-35 NEXT Co., Ltd TSE 1st section 2120 Accumulated Acc m lated Reference Materials ・・・ pp. 36-50 36 50 Quarter Total Real Estate I
Slide 3: Accumulated total Year Ended March 31, 2011 Financial Results
NEXT Co., Ltd. TSE 1st section 2120 A Accumulated l t d total Year Ended March 31, 2011 Financial Results
Slide 4: Today's Points
Consolidated Accumulated total Today’s Points Tod Recorded a decline in sales and profit from the year ended March 31, 2010. Operating margin stood at 16.3%. (Excluding the Guarantor Operating Business from which the Company withdrew during the fiscal year under review, sales increased 4.6% from the
Slide 5: The Great East Japan Earthquake's effects & our rehabilitation assistance initiatives
Quarter The Great East Japan Earthquake’s effects & Consolidated our rehabilitation assistance initiatives Direct damage to our business was negligible. After the earthquake, the number of inquiries fell Point temporarily before showing a recovering trend ！ Check Effects on our business 1. Effects o
Slide 6: Financial Results Summary
Consolidated Financial Results for the Year Accumulated total Ended March 31, 2011 Summary Point Sales declined 0.4% and operating profit fell 11.6% (*) Year--on Year on--year Item Reasons for change (vs. April to March) : New detached house made a positive year-on-year contribution in sales value A
Slide 7: Trend of major indicators
Consolidated Financial Results for the Year Accumulated total Ended March 31 Trend of major indicators ！ Check Trend of consolidated business performance Sales (million yen) Operating profit (million yen) Net profit (million yen) 10,779 10,738 1,979 8,927 1,749 1,107 1,026 ＋20.7％ ％ ▲0.4％ 998 ＋98.2％
Slide 8: Trend of Operating P/L
Consolidated Financial Results for the Year Ended Accumulated total March 31, 2011 Trend of Operating P/L Point Sales declined 0.4% and operating profit fell 11.6% as SG&A expenses rose 2.4% FY03/2009 FY03/2010 FY03/2011 Change Percentage change Unit: million yen (Apr-Mar) (Apr-Mar) (Apr--Mar) (Apr
Slide 9: Trend of cost to sales ratio
Consolidated Financial Results for the Year Accumulated total Ended March 31, 2011 Trend of cost to sales ratio Point Personnel cost ratio improved despite a 2.1 percentage point erosion of operating profit margin Unit: Amount Breakdown Million FY03/2009 FY03/2010 FY03/2011 yen FY03/2009 FY03/2010 F
Slide 10: Trend of sales by service
Consolidated Financial Results for the Year Ended Accumulated total March 31, 2011 Trend of sales by service Main services grew year-on-year with the exception of the guarantor operating business from which Point the Company withdrew in the fiscal year under review FY03/2009 FY03/2011 Percentage FY0
Slide 11: Real Estate Rents & Transactions: Trend of major indicators 1
Quarter Financial Results for the Year “Real Estate Rents & Transactions” Non- Non- consolidated Ended March 31, 2011 Trend of major indicators 1 Point With the start of the peak season, the number of inquiries grew, resulting in higher sales per store Number of Sales Per Store affiliated stores FY0
Slide 12: Real Estate Rents & Transactions: Trend of major indicators 2
Quarter Financial Results for the Year “Real Estate Rents & Transactions” Non- Non- consolidated Ended March 31, 2011 Trend of major indicators 2 Point The number of properties grew strongly, exceeding 3.1 million at one time (in early March 2011) FY03/2009 FY03/2010 FY03/2011 Unit: Number of proper
Slide 13: Number of properties by area
Quarter Financial Results for the Year Non- Non- consolidated Ended March 31, 2011 Number of properties by area The number of properties, the most important indicator, grew across the country, recording a gain of Point 94.5% year-on-year How to read 1 Area the numbers Number of properties Hokkaido 2
Slide 14: Trend of P/L by segment
Consolidated Financial Results for the Year Ended Accumulated total March 31, 2011 Trend of P/L by segment Real estate information service operating profit declined 11.6% year-on-year due to a decrease in Point the number of inquiries Unit: Million Year-on-year yen FY03/2010 FY03/2011 (Apr-Mar)) (Ap
Slide 15: Summary of topics
Consolidated Financial Results for the Year Accumulated total Ended March 31, 2011 Summary of topics ！ Key yppoints Content/Objective j Check Information service 1.The number of objects posted exceeded 3.1 million at one time in early March 2011 as a result 1. Achieved a record number of objects pos
Slide 16: Consolidated balance sheet and goodwill
Consolidated Financial Results for the Year Consolidated balance sheet Accumulated total Ended March 31, 2011 and goodwill Point BPS grew 13.4% and sale of shares in NFS Co., Ltd. resulted in a balance sheet downsizing March 31, 2011 Unit: Million yen March 31, 2010 [End FY03/2011] Change Percentage
Slide 17: Consolidated cash flow
Consolidated Financial Results for the Year Ended Accumulated total March 31, 2011 Consolidated cash flow Investment cash flow (CF) stood at a negative 2,300 million yen approximately due to sale of NFS Co., Ltd. Point and the head office relocation. The end-of-period cash flow balance amounted to 4
Slide 18: Business Forecast for the Year Ending March 31, 2012
Forecast NEXT Co., Ltd. TSE 1st section 2120 Forecast B siness Forecast for the Year Business Ending March 31, 2012 2012
Slide 19: The top priority challenges
Consolidated Business Forecast for the Year The top priority challenges for the Year Forecast Ending March 31, 2012 Ending March 31, 2012 Enhance sales by maximizing the number of inquiries through “HOME’S” and achieve profitability Point for “Lococom” on a single month basis ！ Check The top priorit
Slide 20: Business Forecast Summary
Consolidated Business Forecast for the Year Forecast Ending March 31, 2012 Summary Point Expect to grow sales through “Lococom” under a new business model and through new businesses Consolid Item FY03/2011 results FY03/2012 business forecast Assumptions ・ There are early signs of a moderate overall
Slide 21: Trend of operating P/L (forecast)
Consolidated Business Forecast for the Year Ending Forecast March 31, 2012 Trend of operating P/L While sales are forecast to grow 9.3%, operating profit is likely to decline 21.6% due to an Point increase in other general and administrative expenses [Reference] FY03/2011 FY03/2012 Unit: Million yen
Slide 22: Operating P/L breakdown
Consolidated Business Forecast for the Year Forecast Ending March 31, 2012 Operating P/L breakdown While sales are forecast to grow 9.3%, operating profit is likely to decline 21.6% due to an Point increase in other general and administrative expenses Contributing factor to higher operating profit U
Slide 23: Trend of cost to sales ratio
Consolidated Business Forecast for the Year Accumulated total Ending March 31, 2012 Trend of cost to sales ratio While operating profit margin will deteriorate due to head office relocation costs, personnel costs Point ratio will show an improving trend Unit: Amount Breakdown Million FY03/2010 FY03/
Slide 24: Trend of sales by service
Consolidated Business Forecast for the Year Ending Forecast March 31, 2012 Trend of sales by service While the Real-estate Rents & Transactions business will post a decline in sales, other services will Point compensate for such sales decline, enabling us to achieve a 9.3% growth in overall sales [R
Slide 25: Breakdown of sales by service
Consolidated Business Forecast for the Year Forecast Ending March 31, 2012 Breakdown of sales by service Unit: Million yen Increase in sales ＋1,001 Decrease in sales 12,500 million yen ＋281 12,000 11,739 ＋893 11,500 11,000 10,738 ＋60 ＋154 ＋13 ＋373 10 500 10,500 ▲268 ▲6 10,000 ▲500 9,500 (1) (2) (3)
Slide 26: Challenges and measures
Consolidated Business Forecast for the Year Forecast Ending March 31, 2012 Challenges and measures Point Maintain the number of objects posted at current levels and strive to maximize the number of inquiries Item Challenges in FY03/2011 Measures to be taken in FY03/2012 ・In the year ending March 31,
Slide 27: Website measures
Consolidated Business Forecast for the Year Ending Forecast March 31, 2012 (1) Website measures ！ ！ Check Check Develop the recommendation engine Information sorting for properties posted By combining the Littel Research Institute’s advanced technologies (natural Employing a format allowing the user
Slide 28: Optional product development and sales expansion
Consolidated Business Forecast for the Year (2) Optional product development Forecast Ending March 31, 2012 and sales expansion ！ ！ Check Check Launched “Next-Generation Real Estate Help affiliated stores attract customers and expand sales of Homepage Annex” in May 2011 products designed to assist t
Slide 29: "Lococom" revamp
Forecast Business Forecast for the Year Ending Non- Non- consolidated March 31, 2012 “Lococom” revamp Full revamp completed in April 2011. As the first step, providing local community information with a Point focus on restaurants and other eating places in 23 wards of Tokyo [Trend of “Lococom” websi
Slide 30: "Lococom" full revamp
Forecast Business Forecast for the Non- Non- consolidated Year Ending March 31, 2012 “Lococom” full revamp Lococom’s new business model is based on the pay-per-service fee structure involving the use of Point GPS-synchronized coupon ！ Check The pay-per-service fee structure under which fee is charge
Slide 31: Lococom current status and measures
Forecast Business Forecast for the Year Non- Non- consolidated Ending March 31, 2012 Current status and measures Point Aim to achieve 900 million yen in sales by growing the number of personal users and store members Item Current status Measures to be taken from now on Personal members totaling 730,
Slide 32: Lococom continuing to spread
Forecast Business Forecast for the Year Ending Non- Non- consolidated March 31, 2012 Lococom continuing to spread Point Utilize virally-spreading word of mouth to promote use by increased number of users Promote repeating Become the store’s follower User Use coupon! Visit store A Awareness Store Pro
Slide 33: Dividend forecast
Consolidated Business Forecast for the Year Forecast Ending March 31, 2012 Dividend forecast We expect to pay 620 yen in FY03/2012 dividend with the dividend ratio rising to 15.0%, Point an increase of 5 percentage points Item FY03/2011 FY03/2012 (Forecast) Annual dividend (Forecast) 590 yen 620 yen
Slide 34: Future Business Development
NEXT Co., Ltd. TSE 1st section 2120 ネクスト 東証第一部 2120 Future Business Development
Slide 35: The concept of our future business development
The concept of our future business development Point The Next Group’s strategy is to aim at becoming a global company with “DB+CCS” (*) ◆ Communication service Concept of “DB+CCS” ✔ Service enabling the user to become acquainted with people and feel rapport with and warmth of such people ✔ Service a
Slide 36: Long-term goals
The concept of our future business development In addition to the growth of the real estate information service, the revenue base, we are Point studying new businesses as well as overseas business development ！ Check Sales [Corporate management metrics] Overseas business Mid/lo 1. Aim to achieve an
Slide 37: Reference Materials
NEXT Co., Ltd. TSE 1st section 2120 Reference Materials Reference Materials ・・・ pp. 36-50 36 50 Real Estate Information Service “HOME’S” ・・・ pp.37-38 External Environment ・・・ pp.39-40 New Business ・・・ pp.41-42 Corporate Topics ・・・p.43-44 Company Credo and Management Principles, Corporate Profile, Sh
Slide 38: Real Estate Information Service "HOME'S"
Real Estate Information Service “HOME’S” Point “HOME’S” business model: Fee structure based on the number of inquiries Customer NEXT (“HOME’S”) User Inquiry (Real-estate Rents & View information Transactions) Make inquiry Post property information (Real-estate Rents & Real estate broker Transactions
Slide 39: Percentage distribution of affiliated stores by region
Real Estate Information Service “HOME’S” Affiliated store growth rate is low because we strive to prospect new affiliated stores and increase the Point number of properties with a focus on major real estate management companies How to read the Percentage distribution of Hokkaido numbers 1 Area Tohok
Slide 40: External Environment
External Environment Point The external environment is recovering modestly ！ Check Housing starts/Leased house (units) 着工戸数/貸家（戸） Housing starts/Condominium (unit) 着工戸数/マンション（戸） Housing starts/Detached house (units) 着工戸数/一戸建（戸） 着工戸数/持家（戸） Housing starts/Owner-occupied home (unit) Number of transacti
Slide 41: External Environment: online advertising
External Environment Point Online advertising continues to grow as the second largest medium trailing only TV advertising ！ Check Newspaper 新聞 Magazine 雑誌 （単位：億円） (Unit: 100 Radio ラジオ TV テレビ million illi yen)) Online advertising Spending インターネット広告費 20,000 15,000 10 000 10,000 5,000 0 2002年 2002 03年
Slide 42: New Business: eQOL Skincare
New Business “eQOL Skincare,” the mobile website for atopic patients Information service designed to help solve “non-availability” for persons Point with atopic skin inflammation and food allergy Improve quality of life We want persons with atopy or allergy to lead a fruitful life just like healthy
Slide 43: New Business: MONEYMO
New Business “MONEYMO,” the life and money portal site Point Utilize the information portal knowhow developed through “HOME’S” in the financial services area ！ Check [Contents provided] ・Make a reservation for a life insurance consultation session ・Car insurance premium quotation ・All-inclusive quot
Slide 44: Corporate Topics
Corporate Topics In January 2011, we changed our corporate Enhance the corporate website message to “Enter the NEXT stage” New corporate logo ！ Check This corporate message incorporates the following seven meanings: 1. NEXT will become an entity indispensable to the public Conceptual diagram 2. The
Slide 45: Corporate Topics: Other news releases
Corporate Topics Other news releases ！ ！ Check Check “HOME’S” becomes Japan’s first website to provide real Started to provide the “HOME’S Elderly Care” estate information search service in English and Chinese application in May 2011 * The diagrams are conceptual Wee have a e launched au c ed se ser
Slide 46: Company Credo and Business Principles
Company Credo and Business Principles Company Credo Altruism “ ”. This idea will aim at all the directions. Business Principles of NEXT We will always go forward to build a sociall mechanism h through h h which h h more people can receive “ ” and “ ” 45 Copyright (c) 2011 NEXT Co., Ltd. All Rights R
Slide 47: Corporate profile
Corporate profile Company name NEXT Co., Ltd (TSE 1st Section: 2120) Representative President/Representative Director/CEO Takashi Inoue Established March 12, 1997 (Accounting year end: March) Paid-in capital 1,992 million yen Number of shares outstanding: 187,650 shares Consolidated number 597 (incl
Slide 48: Shareholder composition
Shareholder composition The number of shareholders stood at 3,734, an increase of 479 from September 30, 2010, with Point foreign ownership ratio up by 8.0 percentage points Number of shareholders 3,734 (as of March 31, 2011) An increase of 479 from September 30, 2010 Major shareholders NEXT Co., Lt
Slide 49: About the NEXT Group Business model
About the NEXT Group Business model Client Real estate brokers Major real estate companies Building contractors Various business operators Real estate management companies and developers Home builders (Franchise chain members, ＨＯＭＥ’Ｓ affiliated stores totaling 9,564 ＨＯＭＥ’Ｓ newly-built condominiums R
Slide 50: Consolidated subsidiary Renter's Co.
About the NEXT Group Consolidated subsidiary Renter’s Co. Providing realtor operations support service through ASP Renter’s Co. Renter’s top page Various functions of Renter’s Net (1)Portal advertisement conversion function <http://www.ra1.co.jp/> Realtor’s Realtor s own website Realtors HOME’S SUUM
Slide 51: IR Information Contact Details
IR Information Contact Details NEXT Co., Ltd. Business Planning Dept. Corporate Communications Group Phone +81-3-5783-3603 (weekdays 10:00 – 18:00) Contact Fax +81-3-5783-3737 E-mail ir@next-group.jp Company website http://www.next http://www.next-group.jp/ group.jp/ (Japanese) (Mobile website) http