Designing Delightful Encounters

Property Portal Watch Conference Bangkok 2015

Opinions and forecasts expressed in this document are those of management as of the date of publication and management does not offer any guarantee regarding their accuracy. Please note that actual business performance and results may differ materially from such opinions and forecasts due to changes in various factors.

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

Service Overview

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Rent Buy  &  SellNew  Homes/CondosCustom-‐‑‒built  homes  RenovationInvestmentHome  Insurance  Life  insuranceMove  Storage  RoomSenior  Housing

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Introduction to “HOME‘S” 　Service

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3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Number of Properties Listed

5.34 million properties

6,985 buildings

Rentals and sales

New homes/condos

1.93 m

(*1) Total properties listed for rentals and real estate sales as of January 2015. NEXT data.

Company A

Company B

Company C

Competitors (*1)

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2.58 m

1.76 m

Change to the pay-per-inquiry fee structure

(January 1, 2011)

Billing rate revision

(October 1, 2014)

▲1,621 stores

Note 1: The data shown above are those based on preliminary figures available as of January 2015.

Number of Brokers

Record high (January 2015)

13,143 stores

 　 　 　 　

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“No.1” in user numbers

Site  name Operator Site  visitors(million  people)

1 HOME'S NEXT  Co.,  Ltd. 2.162 SUUMO NEXT  Co.,  Ltd. 1.88

3 Rakuten  Real  estate  (*1) Rakuten,  Inc. 1.274 Yahoo!  estate Yahoo  Japan  Corporation 1.20

5 CHINTAI CHINTAI 　Corporation 1.08

6 At  home  web At  Home  Co.,  Ltd. 1.08

7 Sumaity Kakaku.com,  Inc. 0.33

8 O-‐‑‒uccino O-‐‑‒uccino,  Inc.  (formerly Homeadvisor,  inc.) 0.25

Based on access from home and office PCs (including the use of Internet applications) according to Nielsen NetView February 2015 （*1）Rakuten real estate only posts HOME'S listings as of February 2015.

Number of users

Exclusive  tie-‐‑‒up

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サイト名 得点

HOME’S 7.41

SUUMO 7.31

Mynavi Chintai 6.09

Sumaity‎ 5.97

At home 5.93

HOMEADPARK 5.88

Yahoo! estate 5.64

Rental real estate information site ranking [Total score]

Gomez real estate information website ranking (December, 2014)

HOMEʼ’S  website  received  a  high  evaluation  in  user  experience

Rental real estate information site ranking [Useful features and other]

順位 サイト名

1 HOME’S2 SUUMO

3 CHINTAI

4 Mynavi Chintai

5 Yahoo! estate

6 HOMEADPARK

Usability rankings by Gomez

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Ranked “No.1,” “Easiest to use” Smartphone Site among all Japan

No.4 House foods

No.5 Tokyo Metro

No.6 kakaku.com

No.7 UNITED ARROWS

No.8 NISSAN Motor

No.9 At Home

No.10 Amazon.com

No.1No.2Nomura  Securities  

ZOZO  TOWN

Usability rankings by Tribeck

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HOME'S

No.3

(*1)

(*1) Tribeck Strategies Inc.'s "smart phone website usability diagnosis" (published in April 2012) The surveyed websites included, of the websites of companies providing major services to smartphone users, portal sites, E-commerce sites, corporate sites, and specialized sites of a specific genre (websites specialized for a specific genre or purpose such as real estate and finance, etc.) http://www.tribeck.jp/release/120405.html

Business Model – Pay Per Lead

RentalNumber of Inquiries

Old Billing Rates

New Billing Rates From Oct 1, 2014

1 to 15 5.5％ 5.5％

16 to 60 4.0％4.0 ％

61 - 2.0％

Rent/sale price of the property inquired about

Billing rates

Number of inquiries from end users (emails and telephone calls) × ×

Buying/Selling and InvestmentNumber of inquiries Old Rates New Billing Rates

From Oct 1, 2014

1 to 5 0.05％ 0.05％

6 to 20 0.02％0.03  ％

21 - 0.01％

Billing calculation formula Revision

Monthly basic fee (10,000 yen a month) ＋

AfterBefore

Example: One hundred rental property inquiries arrive in one month

15 inquiries × 5.5％  × Rent  ＝  ￥    57,750 45 inquiries × 4.0％  × Rent  ＝  ￥126,000 40 inquiries × 2.0％  × Rent  ＝  ￥    56,000 Total 　￥239,750 　

15 inquiries × 5.5％  × Rent  ＝  ￥    57,750 85 inquiries × 4.0％  × Rent  ＝  ￥238,000 Total 　￥295,750 　

*Calculated with rent at 70,000 yen. Rent varies from one property to another. *Monthly rent

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New Technology

10Copyright(c) NEXT Co., Ltd. All Rights Reserved.

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Strategy - a global company through “DB and CCS”

Analyze  individual  user  preferences,then  select  and  provide  the  most  

appropriate  information

Housing Insurance Interior  decoration etc

Needs Appropriate  information

DB Japan  and  overseas  database

Communication  &  concierge  serviceCCS

Recommendations  to  support  the  decisions  of  those  pushing  ahead

Enough  choices

Access  available  from  any  device

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Differences between HOME‘S and SUUMO

Item HOME'S (NEXT) SUUMO (Recruit)

Number of properties

(January 2015, our investigation)

5.34 million properties 2.58 million properties

Sales (The results of FY ended March 2014) 14.5 billion yen

86.6 billion yen Sales of the Internet are 52 billion yen of

above (Our estimation)

Fields of specialization

Rental & Real estate trade New condominiums

StrengthsVision management

Web technology Web marketing

Capital strength Sales strength Cross-channel

(Printed, Web, Counter)

Company history Established 18 years ago Established 54 years ago

HOME’S Data

Real Estate Agent’s Data

Solution (problem solving)

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New DMP Services “NabiSTAR “

Our DMP “NabiSTAR”

Sales growth

Cost Reduction

Personalize

Increase in requests

for materials

/

Increase in visitors

/

Increase in closing rates

Customer Data (Visits and Request for

Materials)

Audience Data fromEach Company’s

Website

Audience Data

Data Integration

Ad Placement

Website Content Optimization

Email Delivery

Values Offered

* DMP＝Data Management Platform

Smart Device

The iOS and Android applications by the HOME’S website Displays a complete set of property information available with regard to a given building Allows the user to make a telephone-based property inquiry just by touching the screen once

HOME’S app for visually-impaired persons Equipped with the function to read aloud iPhone texts Allows the user to search for properties by using the “VoiceOver” function

Property visit note app Enables the user to take notes of property information and his/her impression of the property Allows the user to view other persons’ assessment and feedback Enables photographs to be stored

APP

HOME’S check-in app Campaign-dedicated application Allows Rakuten Super Points to be awarded to the customer for visiting a store and concluding a contract

Users can see a 360-degree view of properties

Sites for Smartphones

O2O TrackingUsing acoustic communication technology to enable an analysis of customer actions from store visit to

property visit to contract conclusion

*INFOSOUND, developed by Yamaha Corporation, is a technology that converts digital information into acoustic signals before transmitting them

Conclude contract

Visit store & property

Actions able to be tracked so far Actions newly able to be followed

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1

Infosound

3♪

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Begin considering

Compare and

considerInquire

Maximize the number of contract

conclusions

Install a small-sized speaker in the store Detect the customer’s store visit by using acoustic communication technology Award Rakuten Super Points to the customer for making a store visit and concluding a contract Analyze the user’s actions

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3

4

Store and property visit tracking scheme

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Smart Key System

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“Property Search Map” utilizing tangible user interface

Trovit – newly acquired technology company

18Copyright(c) NEXT Co., Ltd. All Rights Reserved.

What is Trovit?

Collectively search information from

multiple sites

Value to users

Provide quality traffic

Value to portals

Portal site C

Portal site F

Portal site D

Portal site B

Portal site A (HOME'S, etc.)

Users all around the world

Create information matching with users all around the world

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A FEW FACTS ABOUT TROVIT

5 verticals 160M indexed listings

40,000 partners Over 50M monthly visits

43 countries

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The number of clicks we send to our partners grows year after year

TROVIT’S CONSTANT GROWTH

2008

2009

2010

2011

2012

2013

2014

Number of users of real estate sites in the world

0

10,00 0

20,00 0

30,00 0

40,00 0

50,00 0

60,00 0

70,00 0

Zillow Trovit Trulia R ightm ove R EA soufun

Source: SimilarWeb data as of August of 2014. Regarding Trovit, the number is the total number in all deployment countries. The breakdown was calculated by us based on the past data. Other information is values taken from the representative sites of each country.

Unit: Thousand people

Trovit ES

Housing

Employment

Used car

US US CNAUUK

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SEO technology of Trovit complements HOME’S

Accumulated No. of key words

Amount of searches

Domain where Trovit is strong

Domain where NEXT (HOME’S) is strong

Big/Middle word Tail word

Ex: Words with high search volume such as [Real estate], [Condominium], [Rental], etc.

Ex: Combination of multiple words such as [Setagaya Ward, rental condominium, within 10-min walk, pets allowed], etc.

GRID VRICK

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GRID VRICK

Can an average consumer imagine his/her new home from this floor plan?

GRID VRICK

“GRID VRICK” is a home/condo simulator. You can imagine your new home easily!

GRID VRICK

“GRID VRICK” can create a virtual house/condo Fast, Easy and Very Intuitive.

1. Put some LEGO bricks on the board

2. Generate your 3DCG home on real time

3. You can change interior design and walk-through

Thank you!

Please take a look at GRID VRICK demo

outside!

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