Slide 1: Full-Year Results IFRS FY2021/9 Q4
LIFULL Co., Ltd. Full-Year Results IFRS FY2021/9 Q4 (October 2020 – September 2021) 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 vario
Slide 2: Index
Index 1. FY 2021/9 Full-Year Financial Results P6 2. FY 2022/9 Results Forecast P16 3. FY 2022/9 Business Strategy P18 4. Constructing a Global P33 Real Estate Investment Platform 4. Mid- to Long-Term Goals P37 5. Appendices P 41 6. IR Team Contact Information P 57 2
Slide 3: Focal Points of the Mid-Term Management Plan
Focal Points of the Mid-Term Management Plan (FY 2021/9 to FY2025/9) FOCAL POINTS HOME'S OVERSEAS OTHER SERVICES BUSINESSES OMNI- CHANNEL Moving REGIONAL to REVITALIZATION DX Direct & SENIOR (DIGITAL TRANSFORMATION) CITIZENS Growth through solutions to social issues through our existing businesses 3
Slide 4: Reflection on FY 2021/9
Reflection on FY 2021/9 Key indicators for each segment progressing smoothly while we work towards our next challenges. HOME'S Services Overseas New Ventures LivingAnywhere Commons Maintaining Profitability As of 2020/9 As of 2021/9 Recovery and Growth Through Flexible Management YoY (Oct. – Sep.) Y
Slide 5: (Ref.) Japanese Real Estate Market
(Ref.) Japanese Real Estate Market Conditions in the Japanese real estate market are improving overall despite the states of emergency. However, rental property searches decreased during the Tokyo Olympic Games, and the number of available new-build detached houses also continues to decline due to h
Slide 6: FY 2021/9 Full-Year Financial Results
FY 2021/9 Full-Year Financial Results (October 1, 2020 – September 30, 2021) Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 6
Slide 7: Condensed Statements of Income and Loss IFRS
Condensed Statements of Income and Loss IFRS Revenue gains in LIFULL CONNECT pushing revenue growth to +1.3% YoY. Operating income was -¥6.6 billion due to a ¥9.7 billion impairment loss in LIFULL CONNECT. FY2020 FY2021 Change Change % Unit: JPY mil. (Oct.-Sep.) (Oct.-Sep.) Revenue 35,402 35,857 +45
Slide 8: Consolidated Results Impairment Loss
Consolidated Results Impairment Loss Without regard to the impairment loss in LIFULL CONNECT, operating profit would have amounted to ¥3.1 billion Breakdown of FY 2021/9 Financial Results (Unit: JPY Mil.) Revenue Cost of Sales (35,857) (3,951) SG&As (28,599) Operating Profit (Without Impairment Loss
Slide 9: LIFULL CONNECT Business Status
LIFULL CONNECT Impairment Loss Business Status LIFULL CONNECT: Continuing to Grow Point 1 Point 2 Exceeded Forecast Integrating for more efficiency Revenue Integration Reduction of duplicated costs +5.4% STRONGER Sharing technological knowhow TOGETHER Collaboration between engineers Effective Cost O
Slide 10: LIFULL CONNECT Impairment Loss Valuation Method
LIFULL CONNECT Impairment Loss Valuation Method As we are convinced that the mid-term plan of LIFULL CONNECT has become more feasible, we will base our valuations on value in use from future cash flows. Background Moving Forward Trovit Acquisition Valuation based on future cash flows (DCF) We are co
Slide 11: Revenue / Income and Loss by Segment IFRS
Revenue / Income and Loss by Segment IFRS HOME'S Services recovering, but not at pre-COVID levels due to states of emergency and other market-related factors. Considerable gains Overseas due to cost controls and transfer of development personnel expenses. FY2020 FY2021 Change Change Main items Unit:
Slide 12: Key Performance Indicators Client Network and ARPA
Key Performance Indicators Client Network and ARPA Our client network continues to progress smoothly from onboarding initiatives, but the increase in clients and decrease in revenue have had a negative impact on ARPA. 12-Month Average 12-Month Average Client Network ARPA (JPY) FY 2019/9 FY 2020/9 FY
Slide 13: Condensed Statement of Financial Position and Goodwill IFRS
Condensed Statement of Financial Position and Goodwill IFRS ¥9.7 billion impairment loss in LIFULL CONNECT. The ratio of equity attributable to owners of the parent is 61.9%. As of As of Change Change Main items Unit: JPY mil. Sep 30, 2020 Sep 30, 2021 % -2,817 Current assets 23,083 21,544 -1,538 -6
Slide 14: Condensed Statement of Cash Flow IFRS
Condensed Statement of Cash Flow IFRS Cash and cash equivalents decreased by ¥2.8 billion to ¥13.1 billion due to payment of taxes and repayment of loans. FY2020 FY2021 Change Main items Unit: JPY mil. (Oct.-Sep.) (Oct.-Sep.) Items FY2020 FY2021 Profit for the period before tax +2,136 -6,857 Depreci
Slide 15: Dividends for FY 2021/9
Dividends for FY 2021/9 The Dividend Policy for FY 2021/9 will be decided at the Board of Directors Meeting to be held on November 17, 2021 Basic Approach to Dividends Basic Policy Flexible allocation according to results each year in consideration of mid- to long-term business plans Society Investo
Slide 16: FY 2022/9 Result Forecast
FY 2022/9 Result Forecast Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 16
Slide 17: Result Forecast for FY 2022/9 IFRS
Result Forecast for FY 2022/9 IFRS Condensed Statemants of Income and Loss Revenue by Segment FY2021 FY2022 FY2021 FY2022 Oct.-Sep. Oct.-Sep. Change Change Oct.-Sep. Oct.-Sep. Change Change [Full-year % [Full-year % Unit: Millions of yen [Actual] Unit: Millions of yen [Actual] forecast] forecast] Re
Slide 18: FY 2022/9 Business Strategy
FY 2022/9 Business Strategy Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 18
Slide 19: Period of Investment
FY 2022/9 PERIOD OF INVESTMENT 19
Slide 20: Areas of Investment During FY 2022/9
Areas of Investment During FY 2022/9 Making growth investments focused around LIFULL HOME'S GROWTH INVESTMENTS PEOPLE SERVICE PROMOTION Hiring Service Development Brand Awareness Personnel (YoY) System-Related Costs (YoY) Advertising Spending (YoY) 1, 2 1 1 Approx. +13% Approx. +17% Approx. +14% Foc
Slide 21: (Ref.) Human Capital Initiatives to Support Growth
(Ref.) Human Capital Initiatives to Support Growth While expanding our teams, we will continue to provide the necessary support and working environment for all of our employees. Initiatives for Well-being Learn Seminars on health and well-being topics Check Physical examinations, engagement and well
Slide 22: Vision of LIFULL HOME'S Transformation
Vision of LIFULL HOME'S Until now Our Vision We have increasing the number of inquiries to help real estate brokers increase the number of contracts they close Inquiries Brokers Contract Consultations, Property Viewings, Preparing Paperwork Transformation Value for the Industry = Inquiries Innovatin
Slide 23: Transforming Our Service
Transforming our Service Transforming the moving experience from the bottom up with more information available online. Increasing our profitability by better satisfying the needs of our users and clients. Our Vision for the Future Transforming Our Service Increase Profitability Enhanced Improved Eff
Slide 24: Personalized Support for Everyone
Personalized Support for Everyone We are refining the basic portal features and implementing more technology to help people reduce the number of times they need to search before finding a new home. Now Future Vision Diverse Filters ・Via Address, Area ・Maps ・Train Lines ・Commute Time AI ・Real Estate
Slide 25: More Efficiency with Reliable Support Omnichannel
More Efficiency with Reliable Support Omnichannel Currently, Sumai No Madoguchi helps users find the right real estate agent to help them, but in the future we will combine this support with previous data and cutting-edge technology to ensure the best match Current Support Services Future Vision Mul
Slide 26: Revolutionizing the Real Estate Industry: More Detailed Property Info
Revolutionizing the Real Estate Industry More Detailed Property Info. After enriching property details by removing costs for optional services in Oct. 2019, we are working on implementing innovative technologies to improve client efficiency and the user experience. More Detailed Listings NEW 3D Tour
Slide 27: Ensuring the Accuracy of Listing Information
Ensuring the Accuracy of Listing Information We continue to make the accuracy of listings a priority as we strive to create a responsible service, and have increased efficiency by working and sharing data with our partners. Case: Data Sharing Scheme with Daitokentaku Partners データ照合の仕組み Data Verifica
Slide 28: Super Hyper Assistant
By using LIFULL HOME'S users can… SUPER Use simple search features HYPER View dynamic images ASSISTANT Receive reliable support for finding the right home Provide users Efficiency & with a smooth moving experience Satisfaction 28
Slide 29: Enhancing Promotion to Build Brand Awareness
Enhancing Promotion to Build Brand Awareness Continuing to promote our service to build awareness of our transformation Results of FY 2021/9 FY 2022/9 Broadest Longest Broadcast More Diverse Promotion Initiatives Area Period Channels to Raise Awareness TV COMMERCIALS YouTube VIDEOS of our Transforma
Slide 30: LIFULL CONNECT Vision
LIFULL CONNECT Vision Combining advantages to create a multi-brand Marketplace with more Value for Users and Clients Aggregation DIRECT Sites Real Estate Portals Aggregation Real Estate Portals Sites • Provide more • Providing a wide personalized variety of support information to • Detailed enormous
Slide 31: LIFULL CONNECT Growth Strategy "Moving to Direct"
LIFULL CONNECT Growth Strategy "Moving to Direct" By combining the enormous traffic from our entire network with the benefits of Proppit, we will provide more value to our clients in target regions and accelerate with additional services Effective Use of Group Traffic Accelerate Growth with Addition
Slide 32: (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 33: Constructing a Global Real Estate Investment Platform
Constructing a Global Real Estate Investment Platform Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 33
Slide 34: Global Real Estate Investment Platform Vision
Global Real Estate Investment Platform Vision Making progress toward an investment platform where people can buy and sell real estate with just a smartphone Real Estate Investment INTERNATIONAL Platform REAL ESTATE New Investment Options Simple Access to Investing BUY BUY Diverse Choices Buy and Sel
Slide 35: Potential for a Global Real Estate Investment Platform
Potential for a Global Real Estate Investment Platform Currently options for small real estate investments are limited, but there is considerable room for growth. Real Estate Assets Securitized Real Estate 1 2 Global Japan 2018 Market Size 3 ¥340 Bil. Real Estate Assets Domestic Real Estate ¥37 (Exc
Slide 36: Global Real Estate Investment Platform Overview
Global Real Estate Investment Platform Overview To reach our goal, we will need 1. access to a pool of investors, 2. products and partners and 3. a matching platform for transactions (licenses, systems) Investors Real Estate Investment Platform Creating Investment Products Digitalization of Real Est
Slide 37: Mid to Long-Term Goals
Mid to Long-Term Goals Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 37
Slide 38: Our Original Framework for an Ideal Society
Our Original Framework for an Ideal Society Focusing on our existing group services to LIFULL Agenda Increase Profitability Ex. 1 Ex. 2 Creating Strong Connections Providing the Right Living for Thriving Communities Conditions for All Walks of Life LIFULL Regional Revitalization LIFULL Jinsei Sekkei
Slide 39: Mid-Term Growth Outlook
Mid-Term Growth Outlook We are focusing on increasing consolidated revenue during our FY 2025 Mid-Term Plan and striving for a mid-term CAGR of approx. 15% and operating income margin of 20% while making active growth investments. Mid-Term Management Plan Focus on Revenue (FY 2021/9 – FY 2025/9) Gro
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Slide 41: Appendices
Appendices Copyright(c) LIFULL Co., Ltd. All Rights Reserved. 41
Slide 42: Corporate Information (as of September 30, 2021)
Corporate Information (as of September 30, 2021) Company LIFULL Co., Ltd. Stock code 2120 (TSE 1st Section) 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 Capital JPY 9,716 mil. President
Slide 43: 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. • Con
Slide 44: 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 45: 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 46: Solving Financial Problems After Retirement: LIFULL Jinsei Sekkei
Solving Financial Problems After Retirement LIFULL Jinsei Sekkei We launched a new service in September 2021 which connects people with independent financial planners to resolve financial issues after retirement. Problem Sep. 21, 2021 Beta Release Do you worry about your finances after retirement? C
Slide 47: Annual Revenue and Timeline of Company Growth
Annual Revenue and Timeline of Company Growth Acquisition of MItula (Unit: JPY Billion) 40 Changed fiscal year (irregular 6-month period) 39.0 Changed company name to LIFULL Co., Ltd. 35 Acquisition of LIFULL MP 30 Acquisition of LITTEL Acquisition 25 (Merged in 2011) of Trovit Overseas real Changed
Slide 48: Consolidated Statements of Profit and Loss Quarterly
Consolidated Statements of Profit and Loss Quarterly FY2017/9 FY2018 FY2019 FY2020 FY2021 Unit : JPY mil Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue 7,793 8,154 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 HOME'S Services 6,472 6,
Slide 49: Expense-to-Revenue Ratio IFRS
Expense-to-Revenue Ratio IFRS Making investments to improve competitive edge with increases in other SG&As and advertising. Other SG&As increased due to impairment loss in LIFULL CONNECT 11.2% +0.4pt 11.6% -0.0pt 11.6% -0.6pt 11.0% 20.8% 21.8% +1.0pt +4.6pt 26.5% +23.1pt Cost of Sales Other SG&A 49.
Slide 50: Quarterly Results LIFULL CONNECT
Quarterly Results LIFULL CONNECT Currently seeing recovery from decrease in revenue due to the COVID-19 pandemic. Results from LIFULL CONNECT* in EUR (■ Pre-consolidation results of Mitula Group) Unit: 1,000 EUR 14,155 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 51: Overseas Segment Results
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 ■ Depr
Slide 52: Other Businesses Segment Sales Revenue (Quarterly)
Other Businesses Segment Sales Revenue (Quarterly) Existing businesses driving revenue growth Transfer of LHL Unit: JPY mil. Quarterly Revenue 558 ■ 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 Q
Slide 53: 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 98 85 ■ Existing businesses1 ■ Other new businesses 71 60 59 44 41 38 42 34 33 26 ▲97 ▲118 ▲138 ▲141 ▲142 ▲155 ▲155 ▲167 ▲161 ▲223 ▲261 ▲290 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4
Slide 54: (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 Total Dwellings(10,000 Units) +29 Total 900 6,241 16.0% 6,063 +
Slide 55: (Ref.) External Market Data Monthly
(Ref.) External Market Data Monthly Annual 2019 2020 2021 2018 2019 2020 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 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 (Jan-Dec) (Jan-De
Slide 56: (Ref.) Overseas competitors
(Ref.) Overseas competitors Competitors have high market capitalization due to their user shares in each country. Market Cap. As of December, 2020 ¥14,498.1 bil. As of September, 2022 (Forecast) Market Cap. [Rightmove, UK] [LIFULL, JP] Revenue ¥26.9 bil. Revenue ¥38.4 bil. Operating Profit ¥3.4 bil.
Slide 57: 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