Slide 1: Annual Report of Financial Statement
Designing Delightful Encounters NEXT Co., Ltd. （TSE 1st section 2120） Annual Report of Financial Statement Year Ended March 31, 2013 (April 2012 to March 2013) Opinions and forecasts expressed in this document are those of management as of the date of publication and management does not offer any gu
Slide 2: Index
Index › Key Points Page 3 › Financial data for the fiscal year ended March Pages 4-16 31, 2014 › NEXT Group's medium-term business Pages 17-28 strategies › IR policy changes Pages 29-33 › Performance forecasts for the fiscal year Pages 34-38 ending March 31, 2015 › Business strategies for the fiscal
Slide 3: Key Points
Key Points Real estate information service business is in good shape. Consolidated net sales and profits for the entire fiscal year set new highs. [Quarter] [Quarter] 4,281 million yen (Up 21.5% 4,281 million yen (Up 21.5% Net sales Net sales year-on-year) year-on-year) Operating profit 95 million y
Slide 4: Financial data for the fiscal year ended March 31, 2014
Financial data for the fiscal year ended March 31, 2014 Copyright(c) NEXT Co., Ltd. All Rights Reserved. 4
Slide 5: Key indicators
Key indicators Financial data for the fiscal year ended March 31, 2014 Consolidated Results Sales (million yen) Operating profit (million yen) Net profit (million yen) +22.8％ +44.5％ 2,299 +15.9％ 14,690 +117.7％ 1,336 11,962 10,319 +67.0％ 1,591 +31.8％ 614 952 465 12年3月期 13年3月期 14年3月期 12年3月期 13年3月期 14年
Slide 6: Simple Profit & Loss Statement
Simple Profit & Loss Statement Financial data for the fiscal year ended March 31, 2014 New highs for net sales (up 22.8%), SG&A expenses (up 19.2%), and operating profit (up 44.5%) [Accumulated Total] [Accumulated Total] Change Percentage [Quarterly] [Quarterly] Percentage Unit: million yen FY03/201
Slide 7: Sales Composition
Sales Composition Financial data for the fiscal year ended March 31, 2014 The operating profit ratio improved 2.4% to 15.6% due to increased revenue and partially deferred costs Full Year Quarter Operating profit Personnel costs Advertising costs Cost and other SG&A expenses 2.4p 2.6p Improve Improv
Slide 8: Sales According to Service
Sales According to Service Financial data for the fiscal year ended March 31, 2014 All services recorded 2-digit revenue increases, resulting in record high consolidated revenues of 14.6 billion yen (up 22.8%) Percentage [Accumulated Total] [Accumulated Total] Change [Quarterly] [Quarterly] Percenta
Slide 9: Profit and Loss According to Segment
Profit and Loss According to Segment Financial data for the fiscal year ended March 31, 2014 Profits increased 23.8% for the real estate information service business, with significant loss reductions for other businesses [Accumulated Total] [Accumulated Total] Percentage [Quarterly] [Quarterly] Perc
Slide 10: Balance Sheet and Goodwill
Balance Sheet and Goodwill Financial data for the fiscal year ended March 31, 2014 Net assets per share increased 12.9%. Interest-bearing debt remained at zero. End of [Current Percentage Previous Year Quarter] Change Main reasons for Unit: Million yen change End End (Year-on-year) change FY03/2013
Slide 11: Cash Flow
Cash Flow Financial data for the fiscal year ended March 31, 2014 Cash equivalents at fiscal year end increased 1.5 billion yen to 8.4 billion yen FY03/2013 FY03/2014 FY03/2013 FY03/2014 Unit: Million yen (Apr - Mar) Change Main Items (Apr - Mar) (Apr - Mar) (Apr - Mar) Earnings before interest and
Slide 12: Main Initiatives
Main Initiatives Financial data for the fiscal year ended March 31, 2014 Unprecedented brand promotion Improving smart device support Offering new services Copyright(c) NEXT Co., Ltd. All Rights Reserved. 12
Slide 13: FY 2013 Review: Initiatives / Awards Won
FY 2013 Review Financial data for the fiscal year ended March 31, 2014 Conducting unprecedented brand promotion and providing over 20 new services March 2014 Initiatives / Awards Won, etc. Won 6th place in the Best Motivation Company Award 2014 Trial version release of Awarded as one of the Best Com
Slide 14: Unprecedented Brand Promotion
Unprecedented Brand Promotion Financial data for the fiscal year ended March 31, 2014 Conducted TV and transportation advertising throughout Japan. Reached more than 200 million people. Features the comedians Features the comedians "Banana Man". Features the comedians "Banana Man" Song by Kaname Kaw
Slide 15: Improving Smart Device Support
Improving Smart Device Support Financial data for the fiscal year ended March 31, 2014 Making searching for properties with smartphones and apps more convenient and enjoyable Smartphone website Added "Tour Memo" feature to the redesign for newly-built HOME'S iPhone app properties [Property folder li
Slide 16: Offering New Services
Offering New Services Financial data for the fiscal year ended March 31, 2014 Started a service to inform of non-published properties and expanded services for realtors. Start of referral service for properties for sale Image This system is the first in the industry that allows users to access prope
Slide 17: NEXT Group's medium-term business strategies
NEXT Group's medium-term business strategies Copyright(c) NEXT Co., Ltd. All Rights Reserved. 17
Slide 18: Founding Philosophy
Founding Philosophy The biggest purchase of one's life, yet available information is so limited... We aim to change the real estate industry HOME'S, Founded in 1995
Slide 19: Designing Delightful Encounters
Designing Delightful Encounters
Slide 20: Medium-Term Strategy Slogan
Medium-Term Strategy Slogan NEXT Group medium-term business strategies Our medium-term strategy slogan is "Aiming to be a global company through DB and CCS*" *Database + communication & concierge service CCS Communication & concierge service Recommendations to support the decisions of those pushing
Slide 21: Medium- and Long-Term Business Objectives
Medium- and Long-Term Business Objectives NEXT Group medium-term business strategies › Medium- and Long-Term Objectives (Financial Indicators) 1. Aim to achieve 25% operating profit margin 2. Improve productivity 3. Return of profits to shareholders through › Business Development 1. HOME’S as Absolu
Slide 22: Medium- and Long-Term Business Objectives: Goals
Medium- and Long-Term Business Objectives NEXT Group medium-term business strategies We aim to be the undisputed No. 1 in real estate and housing information website, both in quality and volume No. 1 in total properties listed No. 1 in ease-of-use Goals No. 1 in user numbers No. 1 in accuracy of inf
Slide 23: Years in Review — Structural Reform
3 Years in Review — Structural Reform NEXT Group medium-term business strategies Large-scale structural reform carried out over the last three years to achieve medium- term strategies 4P Strategy DB Change billing method - Consulting-based sales - Telephone follow-ups - Usage of third-party marketin
Slide 24: Results of Structural Reform (Total Properties Listed)
3 Years in Review — Results of Structural Reform (Total Properties Listed) Properties listed increased three-fold over four years,becoming number one in total properties listed with 4.25 million properties in 7,388 buildings 5,0 00, 000 12 ,000 4,5 00, 000 Total properties listed 11 ,000 4,0 00, 000
Slide 25: Results of Structural Reform (Customer Numbers)
3 Years in Review — Results of Structural Reform (Customer Numbers) The number of NEXT business partners has grown 30% over the last three years. 11,639 outlets 10,450 companies Number of outlets Number of companies 2011年 2011 7月 Jul 10月 Oct 2012年 2012 4月 Apr 7月 Jul 10月 Oct 2013年 2013 4月 Apr 7月 Jul
Slide 26: Results of Structural Reform (Performance)
3 Years in Review — Results of Structural Reform (Performance) Structural reform is ushering in the second stage of growth. Revenues and profits have never been higher. Unit: million yen 16,000 40.0% Sales Operating profit Operating profit ratio 14,690 14,000 35.0% Structural reform period 11,962 12
Slide 27: Results of Structural Reform (Financial Indicators)
3 Years in Review — Results of Structural Reform (Financial Indicators) Steady progress towards achieving goals › Medium- and Long-Term Objectives (Financial Indicators) 1. Aim to achieve 25% operating profit margin 2. Improve productivity 3. Return of profits to shareholders through (3) Return to s
Slide 28: Medium- and Long-Term Business Objectives
Medium- and Long-Term Business Objectives NEXT Group medium-term business strategies › Medium- and Long-Term Objectives (Financial Indicators) 1. Aim to achieve 25% operating profit margin 2. Improve productivity 3. Return of profits to shareholders through › Business Development 1. HOME’S as Absolu
Slide 29: IR Policy Changes
IR Policy Changes Copyright(c) NEXT Co., Ltd. All Rights Reserved. 29
Slide 30: IR Policy Changes
IR Policy Changes Change IR policy to make investment decisions easier › (1) From a conservative forecast to a neutral one › (2) Reevaluate net sales categories according to service › (3) Issue monthly reports for all services (= consolidated net sales) Copyright(c) NEXT Co., Ltd. All Rights Reserve
Slide 31: From a conservative forecast to a neutral one
IR Policy Changes To the extent possible, take into account the external business environment, investment effectiveness, etc. when issuing performance forecasts. (1) From a conservative forecast to a neutral one Until now From now - Adopt a conservative stance - Adopt a neutral stance and factor in
Slide 32: Reevaluate net sales categories according to service
IR Policy Changes Disclosure categories will also change in accordance with site integration and medium- term strategy investment categories. (2) Reevaluate net sales categories according to service Until now From now Rentals and real estate sales Rentals and real estate sales Newly-built single-fam
Slide 33: Issue monthly reports for all services
IR Policy Changes Performance reports released every month on the 20th for only three services will be expanded to all services. (3) Issue monthly reports for all services (= consolidated net sales) Until now From now (1) Rentals and real estate sales (1) Rentals and real estate sales (2) Newly-buil
Slide 34: Performance forecasts for the fiscal year ending March 31, 2015
Performance forecasts for the fiscal year ending March 31, 2015 Copyright(c) NEXT Co., Ltd. All Rights Reserved. 34
Slide 35: Simple Profit & Loss Statement Forecast
Simple Profit & Loss Statement Performance forecasts for the fiscal year ending March 31, 2015 Sales will increase 17.4%, and operating profit will increase 1.2% due to investment towards future growth. FY03/2013 FY03/2014 FY03/2015 Percentage Unit: million yen Change (Actual) (Actual) (Forecast) ch
Slide 36: Sales Composition Forecast
Sales Composition Performance forecasts for the fiscal year ending March 31, 2015 Advertising fees will comprise around 30% of revenues, and the operating profit ratio will drop 2.2% due to up-front investments. Full Year Operating profit Personnel costs Advertising costs Cost and other SG&A expense
Slide 37: Sales According to Service Forecast
Sales According to Service Performance forecasts for the fiscal year ending March 31, 2015 Goals: increase real estate information service revenue by 15.5% and revenue from rentals and real estate sales by 20.4% FY03/2013 FY03/2014 FY03/2015 Percentage Unit: Million yen Change (Actual) (Actual) (For
Slide 38: Dividend Forecasts
Dividend Forecasts Performance forecasts for the fiscal year ending March 31, 2015 The current dividend payout ratio is 20%. This will increase by 0.18 yen (4%). Dividends per share Dividend payout ratio 6.00円 50 .0% 4.92 yen 45 .0% 5.00円 4.74 yen 40 .0% 35 .0% 4.00円 30 .0% 2.2 yen 3.00円 25 .0% 20 .
Slide 39: Business strategies for the fiscal year ending March 31, 2015
Business strategies for the fiscal year ending March 31, 2015 Copyright(c) NEXT Co., Ltd. All Rights Reserved. 39
Slide 40: Fiscal 2014 is a year for expanded investment
Fiscal 2014 is a year for expanded investment Copyright(c) NEXT Co., Ltd. All Rights Reserved. 40
Slide 41: Medium- and Long-Term Outlook
Medium- and Long-Term Outlook Business strategies for the fiscal year ending March 31, 2015 Gain 40% of the market and make HOME'S an essential element of life. Overabunda Share of all nce of real Share of users relocating users using online 40％ estate information relocation services websites Achiev
Slide 42: Investment Outlook
Investment Outlook Business strategies for the fiscal year ending March 31, 2015 Prioritize the domestic real estate market and invest in long-term growth Existing services New services New markets Overseas Information real estate services information outside of real estate services 3rd priority 4th
Slide 43: Investment Outlook: Markets and Services
Investment Outlook Business strategies for the fiscal year ending March 31, 2015 Prioritize the domestic real estate market and invest in long-term growth Existing services New services New markets > Speed up PDCA cycles > Speed up PDCA cycles - Lococom - Increase property numbers in current - MONEY
Slide 44: Real Estate Segment Tactics Outlook
Real Estate Segment Tactics Outlook Business strategies for the fiscal year ending March 31, 2015 Support both users and customers, and maximize closing rates Number of users Bring customers to Gaining more customers Maximizing user numbers websites Property searching CVR Depart Improve products Imp
Slide 45: Overseas Business Tactics Outlook
Overseas Business Tactics Outlook Business strategies for the fiscal year ended March 31, 2015 Continue investment into overseas business to achieve medium- and long-term growth › We are currently building highly-versatile websites for many nations and languages using SEO techniques developed in Jap
Slide 46: New Business (Non-Real Estate) Tactics Outlook
New Business (Non-Real Estate) Tactics Outlook Business strategies for the fiscal year ending March 31, 2015 Continue creating peripheral services related to real estate and housing information and generating new business › Enhance existing services (insurance agency information, local information,
Slide 47: Start of New Business (Non-Real Estate)
Start of New Business (Non-Real Estate) Business strategies for the fiscal year ending March 31, 2015 NEXT's first e-commerce venture "HOME'S Style Market" went live on April 8, 2014. › Administrate websites without taking on inventory risk › Expand aftermarket service for housing searches This e-co
Slide 48: Strategy to Improve Non-Service-Related Areas
Strategy to Improve Non-Service-Related Areas Business strategies for the fiscal year ending March 31, 2015 Enhance personnel development and technical expertise to improve service quality and speed Ranked 25th in the 2014's Best Companies to Work For Ranked 6th in the Best Improve service quality a
Slide 49: Strategy to Improve Non-Service-Related Areas
Strategy to Improve Non-Service-Related Areas Business strategies for the fiscal year ending March 31, 2015 We are also focusing on research into smart devices, wearable technology, and other new devices. Glass Across the Country 28495 / tedeytan A trial version of the virtual sneak peek application
Slide 50: Medium- and Long-Term Growth Outlook
Medium- and Long-Term Growth Outlook Business strategies for the fiscal year ending March 31, 2015 Establish NEXT as No. 1 in market share for users of online relocation services and aim for operating profit ratio of 25%. 35 ,000 40 .0% Sales Operating profit 35 .0% Operating profit ratio 30 ,000 25
Slide 51: Mission statement and management philosophy
Mission statement and management philosophy Copyright(c) NEXT Co., Ltd. All Rights Reserved.
Slide 52: Reference data
参考資料 Reference data Copyright(c) NEXT Co., Ltd. All Rights Reserved. 52
Slide 53: President's Profile
President's Profile Reference data Career History Joined Recruit COSMOS Co., Ltd. April, 1991 Responsible for condominium sales and circulated property brokering. Temporarily dispatched to the Recruit General Personnel Business Department. This move was later made permanent. July, 1991 Primarily eng
Slide 54: HOME'S Real Estate Information Service Business Model
HOME'S Real Estate Information Service Business Model Unlimited postings + billing based on number of inquiries HOME’S Basic Membership Fee Sale / Investment Billing (tax not included) Rental Billing (tax not included) (tax not included) Number of Rental Billing Amount Calculation Method Sale / Inve
Slide 55: Services for Real Estate Industry
Services for Real Estate Industry Reference information CRM services for realtors Real estate website creation service A business support service provided by NEXT subsidiary Renters for Annex is a "next-generation homepage service" that allows rental property realtors The service provides CRM, batch
Slide 56: Simple Profit & Loss Statements, Sales According to Service (1H & 2H)
Simple Profit & Loss Statements, Sales According to Service (1H & 2H) Simple profit and loss statement Sales according to service FY2013 FY2013 FY2014 FY2014 FY2013 FY2013 FY2014 FY2014 Unit: million yen 1H 2H 1H 2H Unit: million yen 1H 2H 1H 2H (Actual) (Actual) (Forecast) (Forecast) (Actual) (Actu
Slide 57: Trend of Operating P/L <Quarterly>
Trend of Operating P/L <Quarterly> Quarterly consolidated statements of income FY03/2012 FY03/2013 FY03/2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 2,357 2,462 2,486 3,012 2,737 2,763 2,939 3,522 3,398 3,454 3,556 4,281 Real estate information 2,337 2,438 2,462 2,983 2,709 2,736 2,911 3,494 3,366
Slide 58: HOME'S Real Estate Rents & Trade trend of major indicators
HOME’S Real Estate Rents & Trade” trend of major indicators FY03/2013 FY03/2014 Comparison Unit : properties Percentage as of March.31 as of March.31 Change change Number of Listed Properties 3,777,088 4,018,191 ＋241,103 ＋6.4% Hokkaido & Tohoku 129,866 186,214 ＋56,348 ＋43.4% North Kanto 126,925 141,
Slide 59: External Market Data (Monthly)
External Market Data (Monthly) Reference information 【Number of Apartments for Sales（Monthly）】 Source:Real Estate Economic institute Co.LTD Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Capital Region 1,721 3,491 5,139 4,093 4,967 4,888 5,30
Slide 60: External Market Data (Yearly)
External Market Data (Yearly) Reference information 【Number of Apartments for Sales（annual）】 【Number of Apartments for Sales（annual）】 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Capital Region 83,183 85,429 84,148 74,463 61,021 43,733 36,376 44,535 44,499 45,602 56,478 YoY △6.0% ＋2.7% △1.
Slide 61: IR Activities for the Year
IR Activities for the Year Reference information Q1 Q2 Q3 Q4 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar March Monthly report for May Monthly report for December Monthly report for July Monthly report for September Monthly report for April Monthly report for February Monthly report for November
Slide 62: Corporate Data
Corporate Data Reference information Company Name NEXT Co., Ltd. (TSE 1st section: 2120) Representative Takashi Inoue, President and CEO Established March 12, 1997 (Fiscal year ending March 31) Capital 1,998 million yen Stock Issued 56,449,800 (including 36,536 shares of treasury stock)* Consolidate
Slide 63: Inquiries Regarding IR Data
Inquiries Regarding IR Data Reference information Contact Us Guide to IR News NEXT IR Support Desk We provide monthly performance data and timely disclosure data Telephone: 03-5783-3603 (Monday to Friday 10:00AM-6:00PM) in good time! Fax: 03-5783-3737 To sign up, please send a blank e-mail to the fo