ファーストロジック（6037） – Financial Results FY3Q 7/2022

Financial ResultsFY 3Q 7/2022FIRSTLOGIC,INChttps://www.firstlogic.co.jpCorporate VisionCreating the fair RE investment marketRE : Real EstateSupportingthe RE investorsCreatingthe sound RE industryImproving the information of REProviding them withthe knowledge and latest informationPromotingfair transaction and legal complianceProviding the accurate price information to the market1Management Policy FY 7/2022 １．To expand No.1 market share to realize the vision２．Target : 4,700 RE agencies using Property Listing Service that is SaaS model（※１）３．To increase the number of employees to achieve management policy4. To start developing the new paid services for Rakumachi users(We plan to release it on 28th June 2022)2Overview◼ We have revised our full-year earnings forecast again because Revenue and Operating profit exceeded ◼ Progress rate improved in 2Q because of the cost reduction associated with the completion of the the February 15,2022 Earnings forecastrelocation project※Property Listing Service is SaaS3FY7/2021 3QFY7/2022 3QEarnings estimates(Before correction)Progress rateRevenue (unit : million yen)1,2811,411+130+10.1%1,818+77.6%Operating profit (unit : million yen)641768+127+19.9%919+83.6%Ordinary profit (unit : million yen)641769+128+19.9%919+83.7%Net profit (unit : million yen)398501+103+25.8%601+83.4%Revenue of Property Listing Service(unit : million yen)（※）615671+56+9.0%－－Ratio of Property Listing Service(unit : % )（※）4948-1-2.0%－－RE agencies using Property Listing Service(unit: number)（※）4,2784,466+188+4.4%－－Number of property listings(unit: thousand)5052+2+4.5%－－Number of users(unit: thousand)251301+50+20.1%－－Page views(unit: million)101105+4+3.6%－－YonYQuarterly Trend of Revenue and Operating profit◼ Operating profit increased because of the cost reductions resulting from the completion of the relocation project and an increase in operating revenues◼ The number of hires at the end of 3Q is 24(unit : million yen)460%53%54%43%41%43%51%47%52%50%49%37%16%29%45%49%53%54%48%48%49%56%48%54%50%52%48%39%45%60%58%050100150200250300350400450500FY1Q20152Q3Q4QFY1Q20162Q3Q4QFY1Q20172Q3Q4QFY1Q20182Q3Q4QFY1Q20192Q3Q4QFY1Q20202Q3Q4QFY1Q20212Q3Q4QFY1Q20222Q3QOperating profitRevenueOperating profit ratioQuarterly Trend of Revenue by Main Services ◼ Seminar Service increased due to new products. Property Listing Service and Advertising Service also increased(unit : million yen)5050100150200250300350400450500FY1Q20152Q3Q4QFY1Q20162Q3Q4QFY1Q20172Q3Q4QFY1Q20182Q3Q4QFY1Q20192Q3Q4QFY1Q20202Q3Q4QFY1Q20212Q3Q4QFY1Q20222Q3QProperty listingProporsalAdvertisingSeminarOthersRE agencies using Property Listing Service◼ RE agencies using Property Listing Service slightly increased since FY3Q/2022 ◼ We aim to increase the number of them in FY/2022(unit : number)605001,0001,5002,0002,5003,0003,5004,0004,500FY1Q20152Q3Q4QFY1Q20162Q3Q4QFY1Q20172Q3Q4QFY1Q20182Q3Q4QFY1Q20192Q3Q4QFY1Q20202Q3Q4QFY1Q20212Q3Q4QFY1Q20222Q3QQuarterly Trend of Page views and The Number of Users◼ Page views increased quarter to quarter basis ◼ The number of users exceeded 300,000 people(unit : number)(unit : thousand)705,00010,00015,00020,00025,00030,00035,00040,000050,000100,000150,000200,000250,000300,000FY1Q20152Q3Q4QFY1Q20162Q3Q4QFY1Q20172Q3Q4QFY1Q20182Q3Q4QFY1Q20192Q3Q4QFY1Q20202Q3Q4QFY1Q20212Q3Q4QFY1Q20222Q3QUsers (unit : number)Page Views (unit : thousand)The number of YouTube Rakumachi channel subscribers◼ The number of subscribers on YouTube Rakumachi channel increased (unit : The number of subscribers)8050,000100,000150,000200,000250,000300,000350,000400,000FY1Q20192Q3Q4QFY1Q20202Q3Q4QFY1Q20212Q3Q4QFY1Q20222Q3QThe number of YouTube Rakumachi channel views◼ The number of YouTube Rakumachi channel views increased year to year basis (unit : The number of views)905,000,00010,000,00015,000,00020,000,00025,000,00030,000,00035,000,00040,000,00045,000,00050,000,000FY2Q20183Q4QFY1Q20192Q3Q4QFY1Q20202Q3Q4QFY1Q20212Q3Q4QFY1Q20222QForecast dividend and shareholder return◼ About dividendWe will pay dividends for shareholder return from FY 7/2022Dividend amount：11yen per share（+10% year on year basis）Dividend ratio ：About 20.5 %◼ About other shareholder returnsWe may acquire treasury stock if it is deemed necessary from the perspective of the stock price and improvement of return to shareholders（See P15）10Market Potential (Users)Number of tax filing with income from RE11timesNumber ofUsers300,000(FY3Q/2022)3.2 million people(Source：National Tax Agency)11Market Potential (RE agencies)Number of RE agencies27timesRE agencies (stores)using Rakumachi4,400(FY3Q/2022)120,000 agencies (companies)(Source：RE Transaction Improvement Organization)※Number of stores does not be disclosed.There is high possibility that the number of stores is more than that of companies.12Topics■Revision of earnings forecast againExceeded the February 15,2022 Earnings forecast due to the cost reduction associated with the completion of the relocation project, as well as due to increased profits in Property Listing Service and Advertising Service13Topics■Next earning forecast and forecast dividendWe will continue to increase revenues and profits to reach prime market While actively recruiting, we expect sales and profit to increaseOperating revenues is exceeded to surpass 2 billion yenOperating income is exceeded to surpass 1 billion yenDividend amount will be 13 yen per share (+18％ year on year basis)14（unit：million yen）FY7/2021FY7/2022Revenue1,8662,000+134+7.2%Operating profit9951,050+55+5.5%Ordinary profit9951,050+55+5.5%Net profit650685+35+5.3%Dividend1113+2+18.2%YonYTopics◼ Acquisition of treasury stocks◼ The purpose of acquisition of treasury stocksThe Perspective of the stock price and the improvement of return to shareholders ◼ The contents of acquisition of treasury stocksThe total number of stocks 120,000 stocks（maximum）The total amount of stocks 100,000 thousand yen（maximum）The term of the acquisition from15th June 2021 to 30th September 202215Topics◼ Rakumachi Premium（New paid service for users） is plan to release on 28th June,2022. 16Topics◼ Our office relocation was completed on November 22nd The cost reduction（mainly the office rent and depreciation cost) will start from 2Q17AppendixStrength－Lower Marketing CostPortal site for RE investmentGetting property for rent income!!browsing many times after purchasing Our marketing cost is lower than other RE portal site because the user voluntarily browses our site to search for another Users(Individual)property for more returnPortal site for purchasing RE to live Portal site for renting not browsing after purchasing Getting propertyto live !!Renting propertyto live!!not browsing after rentingSUUMOHOME’Sat homeetcUsers(Individual)Users(Individual)19SUUMOHOME’Sat homeetcStrength－All in One Service for RE investmentSellingPurchasingManagement20Service（１）Property ListingListing feeProperty listingRE agencyUsersSearching propertyInquiryThe flow of Inquiry Searching with condition from location , property type and yieldInquiring RE agency after checking property condition21Service（２）ProposalUsage feeProviding their needsProposal (mainly unlisted property)RE agencyThe flow of confirming their needsRegistering their property needs InquiryUsers(only member)Searching for users who have the same property needs Checking their needs, status and inquiry history22Service（３）AdvertisingUsage feeAdvertising usageRE agencyThe top screen of PCThe seminar advertisementChecking advertisementInquiryUsersThe top screen of smartphoneThe advertisement of mail-magazine～～～～～～～～～ ～～～～～～～～～～～～～～～～～～ ～～～～～～～～～：advertisement space23Service（４）Assessment for sellingSelecting agency for assessmentUsage feeReporting the assessmentThe flow of requesting assessment for sellingRE agencyInquiryUsersEntering location, property information and asking price of usersAble to select RE agencies with up to 5 24Service（５）Estimate for ManagementSelecting agency for the estimate Usage feeReporting the estimateReform agencyInquiryUsers※There are four categories of exterior painting, leasing management, new construction and interior reformThe flow of requesting estimateEntering location, category and contents of the reformAble to select Reform agencies with up to 5 25ESG initiatives◼ CSR：Supporting Earth-Life Science Institute(ELSI) and Japan Shogi Association(JSA)Earth-Life Science InstituteJapan Shogi AssociationWe have been supporting ELSI since April 2019We started the contribution program of Firstlogic AstrobiologyWe have been supporting JSA becausewe hope students realize the importance of logical thinking26ESG initiatives◼ Rakumachi contributes to solving vacant house problemVacant house has become a social problem・Vacant house cause many problems such as collapse for aging, arson and security deterioration・13.6% of nationwide houses are vacant houses. (by residential and land Statistical survey in 2018)↓↓↓RE investors are interested in investing in that house・Investing in that house is easy to entry because vacant house is low price・Needs for investing in that house has increased at RakumachiVacant house owners can sale properties to RE investors in Rakumachi・Using Property Listing Service・Using Proposal ServiceVacant house will be revived for investment properties・RE investors provide tne rental properties for all peopleVacant houses which are published in Rakumachi27DX initiatives◼ Digital transformation and 5G of RE investment market・RE investment salesmen did business with paper, phone and faxSales were based on a personal network・”Rakumachi” promoted digitalization of real estate transactionRE investment salesmen could reach distant customers with PC・With the spread of covid-19We can provide video calling on Rakumachi appfrom June 2020 for telework28From now on thanks to digital technology,RE transaction is getting smoother.We will have enhanced the value of Rakumachi following services.DX initiatives・Online message service ・Online application of our services・Online movie contents release29DX initiativesAll devisions can carry out the planning of the service,so we are going to work on promotingDX not only in specific department but throughout the company.30Ranking◼ Firstlogic and Rakumachi was in many rankings＜Firstlogic＞・1st The Nikkei「NEXT1000 the ranking of growth rate of total asset in 5 years」(5th February 2019)・ 29th Great Place to Work Ranking 2019 Small Midsize Entity Segment・146th TOYO KEIZAI INC.「 The ranking of Operating profit per person 」・156th TOYO KEIZAI INC. 「The New Corporate power ranking」(24th January 2019)・Encouragement Award 6th the White Company Way Award・ The nomination of「Forbes Asia’s 200 Best Under A Billion 2018」・ The nomination of「Deloitte Touche Tohmatsu ltd Japan Technology Fast 50」＜Rakumachi＞・ 1st Degree of Usability (Gomez consulting : June 2019)・ 1st Number of Users (in-company investigation：April 2019)・ 1st Number of Property Listing (Japan Marketing Research Organaization,Inc：June 2019)31Corporate ProfileNameDate ofPlaceestablishmentFirst logic,Inc. (Stock exchange listing : Tokyo standard section, code 6037)23 rd Oct. 20055F Sumitomo Fudosan Hatchobori Building,Hatchobori3-3-5Chuo-ku Tokyo,104-0032BusinessThe management of real estate investment portal site RakumachiCorporate identityMaking the contribution of development of the societyVisionCreating fair RE investment market32This document includes descriptions which are based on information available as of today. incidents in the future.Actual situation mentioned in it would be different from what is was stated because of