Firstlogic : Financial Results FY７/2020

Financial Results

FY 7/2020

FIRSTLOGIC,INC

https://www.firstlogic.co.jp

Corporate Vision

Creating the fair RE investment market

RE : Real Estate

Supporting	Creating	Improving
the sound RE	the transparency
the RE investors
investment market	of RE prices

Providing them with	Promoting	Providing
the knowledge and latest information	fair transaction and legal compliance	the accurate price information
		to the market

1

Management Policy FY 7/2021

１．To promote Digital Transformation of RE investment market

２．Target : 5,000 RE agencies using Property Listing Service that is SaaS model（※１）

３． To improve a degree of recognition of Rakumachi using You Tube

※１）Software as a Service revenue model

2

Overview

	FY2019	FY2020		YonY	Earnings estimates	Progress rate
Revenue (unit : million yen)	1,706	1,671	-35	-2.0%	1,671	+100.0%
Operating profit (unit : million yen)	865	867	+2	+0.2%	860	+100.9%
Ordinary profit (unit : million yen)	865	867	+2	+0.2%	860	+100.9%
Net profit (unit : million yen)	564	569	+5	+0.8%	565	+100.7%
Revenue of Property Listing Service	700	780	+80	+11.6%	－	－
(unit : million yen)
Ratio of Property Listing Service	41	47	+6	+14.6%	－	－
(unit : % )
RE agencies using Property Listing Service	4,222	4,318	+96	+2.3%	－	－
(unit: number)
Number of property listings	62	53	-9	-14.4%	－	－
(unit: thousand)
Number of users	166	210	+44	+26.6%	－	－
(unit: thousand)
Page views	96	108	+12	+12.5%	－	－
(unit: million)

※Property Listing Service is SaaS

3

Quarterly Trend of Revenue and Operating profit

• Despite of the covid-19, Operating profit ratio exceeded the same level as 4Q 2019
• We can remain high profitability, because main service is SaaS

Revenue

Operating profit

Operating profit ratio

(unit : million yen)

500
450																								320%
400																								270%
350
																								220%
300
																								170%
250
200																								120%
150
																								70%
100	60%	53%	54%				51%		52%								53%	54%				56%		54%
					47%	50%	49%				45%	49%	48%	48%	49%	48%
				43%	41%	43%		37%
																				20%
													29%
50
												16%
0																								-30%
	FY1Q	2Q	3Q	4Q	FY1Q	2Q	3Q	4Q	FY1Q	2Q	3Q	4Q	FY1Q	2Q	3Q	4Q	FY1Q	2Q	3Q	4Q	FY1Q	2Q	3Q	4Q
	2015				2016				2017				2018				2019				2020
																								4

Quarterly Trend of Revenue by Main Services

• Others(Advertising Service and Seminar Service) decreased because of the covid-19
• Property Listing Service that is SaaS grew to account for about 50% of revenue

Property listing

Proporsal

Others

500

450

400

350

300

250

200

(unit : million yen)

150

100

50

0

FY1Q

2Q

3Q

4Q

FY1Q

2Q

3Q

4Q

FY1Q

2Q

3Q

4Q

FY1Q

2Q

3Q

4Q

FY1Q

2Q

3Q

4Q

FY1Q

2Q

3Q

4Q

2015

2016

2017

2018

2019

2020

5

RE agencies using Property Listing Service

• RE agencies using Property Listing Service remained the same level as the previous quarter
• Due to focus on supporting RE agencies, Using Property Listing Service only slightly decreased

5,000

(unit : number)

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q

6

2015

2016

2017

2018

2019

2020

Quarterly Trend of Page views and The Number of Users

• Page views recovered from temporary decrease
• The number of users exceeded 200,000 people

250,000		Users (unit : number)		Page Views (unit : thousand)

200,000

150,000

100,000

50,000

0

FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q FY1Q 2Q

3Q

4Q

2015

2016

2017

2018

2019

2020

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

7

The number of YouTube Rakumachi channel subscribers

• The number of YouTube Rakumachi channel subscribers greatly increased from FY7/2019

(unit : The number of subscribers)

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

13期2Q

３Q

４Q

14期１Q

２Q

3Q

4Q

15期１Q

2Q

3Q

4Q

8

Forecast for next term performance and dividend

• It is impossible to forecast next term performance, because of the covid-19

＜The unpredictable contents＞

Revenue of advertising service and seminar service Expenses of advertising

• We will pay dividends for shareholder return from FY 7/2021

Dividend amount：5yen per share

Dividend ratio：About 10 %

9

Market Potential (Users)

Number of tax filing with income from RE

15times

Number of

Users

210,000	3.2 million people
(FY4Q/2020)	(Source：National Tax Agency)

10

Market Potential (RE agencies)

Number of RE agencies

28times

RE agencies (stores) using Rakumachi

		120,000 agencies (companies)
		(Source：RE Transaction Improvement Organization)
		※Number of stores does not be disclosed.
4,300		There is high possibility that the number of stores
(FY4Q/2020)	is more than that of companies.

11

Topics

• Acquisition of treasury stocks
• The purpose of acquisition of treasury stocks

The Perspective of the stock price and the improvement of return to shareholders

• The contents of acquisition of treasury stocks

The total number of stocks	200,000 stocks（maximum）
The total amount of stocks	100,000 thousand yen（maximum）
The term of the acquisition	from 24 th August 2020 to 30 th November 2020

12

Topics

• The number of followers for Rakumachi's twitter account exceeded 10,000 people

13

Topics

• We released the function for estimating the property valuation in Rakumachi app

14

Topics

• Digital transformation and 5G of RE investment market
  ・RE investment salesmen did business with paper, phone and fax Sales were based on a personal network

・"Rakumachi" promoted digitalization of real estate transaction RE investment salesmen could reach distant customers with PC

・We can use video calling on Rakumachi app from June 2020 for telework

We will promote digital transformation

of RE investment market with 5G

15

Appendix

Strength－Lower Marketing Cost

Portal site for RE investment

			Getting property
		browsing many	for rent income!!
		times after
		purchasing
				Our marketing cost is lower than other RE
				portal site because the user voluntarily
			Users	browses our site to search for another
			(Individual)	property for more return
Portal site for purchasing RE to live	Portal site for renting
		Getting property		Renting property
	not	to live !!		to live!!
SUUMO	browsing		SUUMO	not browsing
after		after renting
	purchasing
HOME'S			HOME'S
		Users		Users
at home		(Individual)	at home	(Individual)
etc			etc

17

Strength－All in One Service for RE investment

Selling

Purchasing

Management

18

Service（１）Property Listing

Listing fee

Property listing

RE agency

The flow of Inquiry

Searching with condition from location , property type and yield

Searching

property

Inquiry

Users

Inquiring RE agency after checking property condition

19

Service（２）Proposal

Usage fee

Providing their needs

Proposal (mainly unlisted property)

RE agency

The flow of confirming their needs

Searching for users who have the same property needs

Registering their property needs

	Inquiry	Users
		(only member)

Checking their needs, status and inquiry history

20

Service（３）Advertising

Usage fee

	Advertising usage
		Checking advertisement
RE agency			Inquiry		Users
The top screen of PC	The seminar advertisement		The top screen of

smartphone

The advertisement of mail-magazine

～～～～～～～～～ ～～～～～～～～～

：advertisement space

～～～～～～～～～ ～～～～～～～～～

21

Service（４）Assessment for selling

Selecting agency for assessment

Usage fee

Reporting the assessment

RE agency	Inquiry	Users

The flow of requesting assessment for selling

Entering location, property information and asking price of users

Able to select RE agencies with up to 5

22

Service（５）Estimate for Management

Selecting agency for the estimate

Usage fee

Reporting the estimate

Reform agency	Inquiry	Users

※There are four categories of exterior painting, leasing management, new construction and interior reform

The flow of requesting estimate

Entering location, category and contents of the reform

Able to select Reform agencies with up to 5

23

ESG initiatives

• CSR：Supporting Earth-Life Science Institute(ELSI) and Japan Shogi Association(JSA)

Earth-Life Science Institute

We have been supporting ELSI since April 2019

We started the contribution program of Firstlogic Astrobiology

Japan Shogi Association

We have been supporting JSA because we hope students realize the importance of logical thinking

24

ESG initiatives

• Rakumachi contributes to solving vacant house problem Vacant 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. (from 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 Rakumachi

↓
Vacant house owners can sale properties
to RE investors in Rakumachi
・Using Property Listing Service
・Using Proposal Service
↓
Vacant house will be revived for investment properties	Vacant houses which are published

・RE investors provide tne rental properties for all people

in Rakumachi

25

Ranking

• 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 (in-company investigation ：June 2019)

26

Corporate Profile

Name	First logic,Inc. (Stock exchange listing : Tokyo first section, code 6037)
Date of
	23 rd Oct. 2005
establishment
	33F Hibiya Mitsui Tower,Tokyo Midtown,Yurakucho1-1-2
Place
	Chiyoda-kuTokyo,100-0006
Business	The management of real estate investment portal site Rakumachi
Corporate identity	Making the contribution of development of the society
Vision	Creating fair RE investment market

27

This document includes descriptions which are based on information available as of today.

Actual situation mentioned in it would be different from what is was stated because of incidents in the future.