LIFULL : Quarterly Results (IFRS) FY2021/09 Quarter 3

LIFULL Co., Ltd.

Third Quarter Results IFRS

FY2021/9 Q3

(October 2020 - June 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 various reasons. We provide no guarantees regarding the accuracy of the information. Please keep in mind that actual performance and results may vary significantly due to changes in various factors.

Copyright(c) LIFULL Co., Ltd. All Rights Reserved.

Index

1.	FY 2021/9 Third Quarter Financial Results	P 2
2.	Segment Update
	HOME'S Services	P 9
	Overseas	P 20
4.	Appendices	P 27
5.	IR Team Contact Information	P 44

1

Third Quarter

Financial Results

(October 1, 2020 - June 30, 2021)

Copyright(c) LIFULL Co., Ltd. All Rights Reserved.

2

Condensed Statements of Income and Loss IFRS

Consolidated revenue recovered to 0.1% YoY with +17.7% compared to the 3Q (Apr. - Jun.) of the previous year. Active growth investments (primarily domestic) progressing according to schedule with

operating income at -32.8% and net profit -36.4% YoY.

	FY2020 Q3	FY2021 Q3	Change	Change %
Unit: JPY mil.	(Oct.-Jun.)	(Oct.-Jun.)
Revenue	26,892	26,925	+33	+0.1%
Cost of revenue	3,143	2,892	-250	-8.0%
SG&A	20,074	21,358	+1,284	+6.4%
Personnel expenses	6,175	6,662	+487	+7.9%
Advertising expenses	8,327	8,911	+584	+7.0%
Operating expenses	358	284	-74	-20.7%
Depreciation and amortization	1,493	1,487	-6	-0.4%
Other	3,720	4,012	+292	+7.9%

*1 *2

*3 *4 *5

*6

Other income and expenses	12	-198	-210	-
Operating income	3,686	2,476	-1,210	-32.8%
Operating income margin	13.7%	9.2%	-4.5pt	-
Net profit*	2,323	1,477	-846	-36.4%

• Net profit attributable to owners of the parent

*1	Refer to segment revenue (Page 4)
*2	Decrease in commissions for marketing products due to COVID-19
*3	Increase in monthly LIFULL employees salaries and associated legal welfare expenses
*4	Continuing domestic growth investments and gradual opening of overseas markets
*5	Reductions in travel expenses with active usage of IT tools for sales initiatives	3
*6	Increase in R&D and system expenses for improvement of LIFULL HOME'S

Revenue / Income and Loss by Segment IFRS

Although more of Japan is under a state of emergency, quarterly revenue for HOME'S Services continues to recover with the YoY gap in total revenue down to 1.6%. Overseas revenue increasing with considerable gains in profit from cost controls and transfer of R&D personnel expenses.

	FY2020 Q3	FY2021 Q3	Change Change	Main items
Unit: JPY mil.	(Oct.-Jun.)	(Oct.-Jun.)	%

Revenue	26,892	26,925	+33	+0.1%
	HOME'S Services	20,483	20,157	-325	-1.6%	Earnings from Kenbiya included, but decline from effects of the
	pandemic. Recovery is continuing with 3Q (Apr.-Jun.) +6.1% YoY.
	Overseas	4,999	5,181	+182	+3.6%	Although LIFULL CONNECT was +63.1% for 3Q YoY, accumulative revenue
	was down 2.3% YoY and JPY-EUR exchange rate down 6.8%.
	Other	1,409	1,586	+176	+12.6%	Revenue increases in subsidiaries (senior, SPACE, Investment) as well as
	contributions from additional new business (LIFULL Leadership)
		FY2020 Q3	FY2021 Q3	Change	Change	Main items
	Unit: JPY mil.	(Oct.-Jun.)	(Oct.-Jun.)		%
Segment	3,674	2,674	-1,000	-27.2%
income and loss
	HOME'S Services	3,572	1,804	-1,767	-49.5%	Primarily due to increases in LIFULL personnel salaries and marketing
	investments to increase brand awareness
	Overseas	386	1,261	+874	+226.3%	Primarily due to increased revenvue and cost controls on advertising
	expenses as well as transfer of development personnel expenses
	Other	-277	-423	-146	-	Increased revenue seen in senior etc. while costs increased for Regional
	Revitalization
	Inter-segment	-6	32	+39	-
	transactions
	Primary businesses in each segment are listed on page 31		4
	The % Change values for negative results in the current previous periods have been left blank