Slide 1: Second Quarter Results
LIFULL Co., Ltd. Second Quarter Results IFRS FY2022/9 Q2 (October 2021 – March 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 vari
Slide 2: Index
Index 1. Main Points for FY 2022/9 Second Quarter P2 2. FY 2022/9 Second Quarter Financial Results P5 3. Revisions to the Full-Year Forecast P9 4. LIFULL HOME'S Becoming a Super Hyper Assistant P 16 4. LIFULL CONNECT P 23 5. Other LIFULL Group Initiatives P 29 6. Appendices P 33 7. IR Team Contact I
Slide 3: Main Points for FY 2022/9 Second Quarter
Main Points for FY 2022/9 Second Quarter FY 2022/9 Second Quarter Earnings Revenue ¥18.0 Billion YoY +1.1% Revenue growth in the Overseas and Other Businesses Segments while recovery of LIFULL HOME'S remains sluggish around the same level as the previous year Operating ¥0.5 Billion Primarily due to
Slide 4: Second Quarter Financial Results
FY 2022/9 Second Quarter Financial Results (October 1, 2021 – March 31, 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 Revenue growth (1.1%) due to increases in LIFULL CONNECT, LIFULL senior and the Regional Revitalization Business. Operating profit decrease primarily due to promotion of LIFULL HOME'S during the peak moving season in Japan (Jan. – Mar.) FY2021 Q2 FY2022 Q
Slide 6: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS Revenue for HOME'S Services has decreased due to adjustments after the pricing changes with reduced profit due to growth investments. Increased revenue Overseas due to positive performance of premium advertisements and the acquisition of Properati. FY2021 Q2
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. 6-Month Average 6-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 for the development of a blockchain small-lot real estate investment platform. Goodwill for LIFULL CONNECT has increased ¥0.92 bil. due to the weaker yen. As of As of Change Change Main items Unit: JPY mil.
Slide 9: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS ¥1 bil. increase in operating cash due to tax credits received in the current fiscal year for the restructuring of Mitula in the previous year. ¥0.8 bil. in new borrowings for the acquisition of shares of Hash DasH Holdings. FY2021 Q2 FY2022 Q2 Change Main items
Slide 10: Revisions to the Full-Year Forecast
Revisions to the Full-Year Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 9
Slide 11: (Ref.) Mid to Long-Term Strategy (No Change)
(Ref.) Mid to Long-Term Strategy (No Change) We are focusing on growth in our real estate information services both in Japan and internationally. LIFULL HOME'S LIFULL CONNECT Transform our service for greater satisfaction Create the best marketplace based on the of both users and real estate clients
Slide 12: Strategy for FY 2022/9 (No Change)
Strategy for FY 2022/9 (No Change) We are focusing our investments to accelerate the transformation of LIFULL HOME'S. Focus Growth Investments in LIFULL HOME'S Focus on SERVICE Service Development System-Related Costs (YoY) Increases primarily in system fees and LIFULL HOME'S Approx. +17% outsourcin
Slide 13: LIFULL HOME'S Business Environment in Japan
LIFULL HOME'S Business Environment in Japan Originally we expected a positive turn in real estate advertising as the economy gradually recovered. However, we have made conservative revisions to our Earnings Forecast due to sluggish recovery of the market and revisions to our partnerships. Rental Sal
Slide 14: LIFULL CONNECT International Business Environment
LIFULL CONNECT International Business Environment AdSense revenue has continued in a downward trend from the beginning of the fiscal year and the conflict in the Ukraine and other factors are affecting the real estate advertising market. The current situation has become increasingly unpredictable, s
Slide 15: Revised Forecast for FY 2022/9 IFRS
Revised Forecast for FY 2022/9 IFRS We have made conservative revisions to our full-year forecast due to delayed recovery of the real estate market. However, we will continue with our growth investments while monitoring the current situation. Condensed Statemants of Income and Loss Revenue by Segmen
Slide 16: Considerations for Growth Investments
Considerations for Growth Investments We will continue to move forward with our investment plans despite our conservative revisions to the Earnings Forecast. In the coming fiscal year, we will review the results and make decisions for future progress. FY 2022/9 After FY 2023/9 Holistic monitoring of
Slide 17: LIFULL HOME'S - Becoming a Super Hyper Assistant
LIFULL HOME'S － Becoming a Super Hyper Assistant － Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 16
Slide 18: SUPER HYPER ASSISTANT Overview and Progress on our New Services
SUPER HYPER ASSISTANT Overview and Progress on our New Services Focusing around the three pillars of Richer Listings, Search Assistance and Personal Support, we are working to improve user satisfaction and lead quality. Creating new, more powerful services and features to help everyone find the righ
Slide 19: SUPER HYPER ASSISTANT Features Updated Log-In
SUPER HYPER ASSISTANT Features Updated Log-In We have updated the way users can register on LIFULL HOME'S and increased user accounts. Updated Log-In Screen BEFORE AFTER Paving the way for a more personalized experience Purpose Simplify registration from the user perspective and increase registered
Slide 20: AI Homes-kun BETA
SUPER HYPER ASSISTANT Features Cutting-Edge AI Technology Our internal AI Strategy Department has utilized the latest technology for personal support for users to help them organize their preferences and find the right place to live 24/7. AI Home Recommendation System AI Homes-kun BETA Search AI Hom
Slide 21: Support Through Detailed Property-Related Contents
SUPER HYPER ASSISTANT Support Through Detailed Property-Related Contents We also expanding detailed property-related content to help everyone find the right home for their lifestyle online. Helpful Information When Searching for a New Home Data for Each Individual User UPDATE Enhanced Flood Maps Che
Slide 22: New Commercials and Expansion of Broadcast Area
Promotion New Creative for Commercials and Expansion of Broadcast Area Part of our strategy of becoming a Super Hyper Assistant is the individuality in searches on LIFULL HOME'S. To reach more users, we have extended the broadcast period and area of our commercials and created more online videos and
Slide 23: External Recognition of our Efforts to Boost User Satisfaction
External Recognition of our Efforts to Boost User Satisfaction The updates to our features and services to improve user satisfaction are gaining attention, and LIFULL HOME'S has been named number one in four different rankings. Rental Properties Sale Properties Home Appraisals PC Smartphone Smartpho
Slide 24: LIFULL CONNECT
LIFULL CONNECT Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 23
Slide 25: Market Recovery in the Overseas Segment
Market Recovery in the Overseas Segment Steady recovery in revenue and clients from the aggregation business. New revenue gains in Latin America from the acquisition of the portal network Properati. Aggregation Sites Real Estate Unit Revenue Trend for Premium Advertisements (Trovit, Mitula, Nuroa, N
Slide 26: Accelerated Growth in Latin America
Accelerated Growth in Latin America Significant growth in clients in the region, and value added by the migration of our full client base to Proppit. More Clients Reference Real Estate Clients in Latin America 2.3x Growth in the number of Network of Real Estate Portals in clients in Latin America Ce
Slide 27: Improvement and Expansion of Proppit
Improvement and Expansion of Proppit We have improved the performance, reach and convenience of Proppit for our clients with updates to the system and apps for iPhone and Android. Management Tool for UPDATE Real Estate Professionals 1 Improved information displayed for properties Increasing leads pe
Slide 28: Acquisition of Wasi
Expanding Our Real Estate Product Offering Acquisition of Wasi At the start of May, we acquired the Colombian CRM, Wasi, as part of our strategy to invest directly in companies adding value to real estate professionals. Company Overview https://wasi.co/ Expansion of the LIFULL CONNECT Service Launch
Slide 29: Acquisition of Wasi: Expanding Real Estate Product Offering
Expanding Our Real Estate Product Offering Acquisition of Wasi With the acquisition of Wasi, which offers a full-service CRM with in-house development and support, LIFULL CONNECT has expanding its support services for real estate professionals. Technology Client Network Including LIFULL CONNECT Serv
Slide 30: Other LIFULL GROUP Initiatives
Other LIFULL GROUP Initiatives Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 29
Slide 31: Strengthening our Sustainability Management
Strengthening our Sustainability Management Based on our Sustainability Policy, we have set eight sustainability goals and selected a number of focus issues from potential topics. Sustainability Policy We are working toward more sustainable corporate value through our Sustainability Goals Sustainabi
Slide 32: Other Initiatives External Recognition
Other Initiatives External Recognition We were recognized for our branding initiatives after changing our name to LIFULL in 2017. We were also recognized for our employee engagement thanks to our efforts to motivate employees since our founding. BRANDING ENGAGEMENT Highest Recognition Link and Motiv
Slide 33: Make Every LIFE FULL
m7 Ly LIFULL Make Every LIFE FULL 32
Slide 34: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 33
Slide 35: Corporate Information (as of March 31, 2022)
Corporate Information (as of March 31, 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 Presiden
Slide 36: 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 37: 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 38: 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 39: 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 40: FY 2022/9 Forecast and Progress IFRS
FY 2022 /9 Forecast and Progress IFRS Progress toward the forecast revised on May 11, 2020 (Details on Page 14) Condensed Statements of Income and Loss Revenue by Service FY2022 FY2022 Q2 FY2022 FY2022 Q2 Oct.-Sep. Oct.-Mar. Oct.-Sep. Oct.-Mar. Progress Progress [Full-Year [Full-year Unit: JPY mil.
Slide 41: 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 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 HOME'S Services 6,742 8,06
Slide 42: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Growth investments primarily for the transformation of LIFULL HOME'S resulting in increase in advertising. Increase in personnel expenses primarily due to capitalization of software development costs in the previous fiscal year (LIFULL CONNECT) and increased headcount f
Slide 43: (Ref.) About Proppit
(Ref.) About "Proppit" One Tool with the Reach of Multiple Sites Using Proppit, a management tool for realtors in our key regions of Latin America and Southeast Asia, realtors are able to list across LIFULL CONNECT's exclusive and highly-qualified audience and manage inquiries in one place. Traditio
Slide 44: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT Revenue growth primarily due to recovery of premium advertisements on aggregation sites and the acquisition of Properati Results from LIFULL CONNECT* in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR 13,363 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3
Slide 45: Overseas Segment Results Segment Profit and Loss
Overseas Segment Results Segment Profit and Loss (Quarterly Trend) Despite the ever-changing situation due to the on-going pandemic, we continuing to secure profits while making investments to make ourselves even more competitive. Quarterly Segment P&L ■ LIFULL CONNECT ■ International Division ■ Dep
Slide 46: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) Existing businesses driving revenue growth. 682 Quarterly Revenue Unit: JPY mil. ■ Existing businesses *2 ■ Other new businesses Transfer of LHL Founding of 4 companies (incorporation-type company split) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1
Slide 47: Other Businesses Segment Profit and Loss (Quarterly)
Other Businesses Segment Profit and Loss (Quarterly) Quarterly Segment Profit and Loss Unit: JPY mil. Transfer of LHL 85 78 60 71 ■ Existing businesses1 ■ Other new businesses 59 44 41 53 38 42 34 33 26 -97 -118 -142 -155 -155 ▲167 -161 -211 -223 -258 -261 -290 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3
Slide 48: (Ref.) 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 49: (Ref.) 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 (Jan-Dec) (Jan-Dec) (Jan-Dec) Capital Region 31,238 27,228
Slide 50: 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