NEXT Co.,Ltd.
Co Ltd.
Co.,Ltd
TSE 1st section 2120

Annual Report ofFinancial Statement

Financial Results for Year Ended March 31,
31 2011(April 2010 to March 2011)
Opinions and forecasts expressed in this document are those of
g
as of the date of p
publication and managementgmanagement
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 invarious factors.

Financial Results for the Year Ended March 31, 2011 ・・・ pp. 2-16
Business Forecast for the Year Ending March 31, 2012 ・・・ pp. 17-32
Future Business Development ・・・ pp. 33-35

NEXT Co., Ltd
TSE 1st section 2120
Accumulated
Accm lated
Total

Reference Materials ・・・ pp. 36-50
36 50
Quarter

Real Estate Information Service “HOME’S” ・・・ pp. 37-38
External Environment ・・・ pp. 39-40
Introduction of New Businesses ・・・ pp. 41-42
Corporate Topics ・・・ pp. 43-44
Company Credo and Business Principles, Corporate Profile, Shareholder
Composition and Group Companies’ Profile ・・・ pp. 45-49
IR Information Contact Details and “IR
IR News”
News ・・・ p.50
* For the quarterly results for the fourth quarter of the year ended March 2011and external environment data not contained in this document, please see“Business Performance Highlights for the Year Ended March 31, 2011” onour company website.
Our company website: http://www.next-group.jp/ir/data/result.html

NEXT Co., Ltd. TSE 1st section 2120

A
Accumulated
l t d
total

Year Ended March 31, 2011
Financial Results

Consolidated
Accumulated
total

Today’s Points

Tod
day’s Points

Recorded a decline in sales and profit from the year ended March 31, 2010. Operating margin
stood at 16.3%. (Excluding the Guarantor Operating Business from which the Company withdrew during the fiscal year
under review, sales increased 4.6% from the year ended March 2010.)

Sales
Operating profit
Net profit： 10,738 million yen (down 0.4% year-on-year)： 1,749 million yen (down 11.6% year-on-year)： 1,107 million yen (up 7.9% year-on-year)

In January 2011, the pricing method for “HOME’S Real-estate Rents & Transactions” and“HOME’S R
Real-estatel t t Investment”Itt” was changed
h
d to
t the
th pay-per-inquiryii ffee structuret t
The number of objects posted on our website grew strongly, exceeding 3.1 million at one time inearly March 2011
IIn OctoberO t b 2010,2010 local
ll community
it website
b it “Lococom”“L” was broughtb
ht under
d the
th di
directt controlt l off
President and CEO, followed by a business model change and full revamp of the website. The
full revamp was completed in April 2011
In February 2011, NEXT Co.,Ltd acquired Littel Co., Ltd., the company equipped with natural
language processing technology,
technology which in April 2011 was merged into NEXT Co
Co.,Ltd
Ltd throughabsorption and was simultaneously reestablished as Littel Research Institute, the research anddevelopment unit of NEXT Co.,Ltd

Effective from the Fiscal Year Ended March 31, 2011, the Company changed its segment reporting.
For details, please see the Notice Regarding Change in Segment Reporting issued on August 10, 2010

3
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Quarter
Consolidated

Point
！

The Great East Japan Earthquake’s effects &our rehabilitation assistance initiatives
Direct damage to our business was negligible. After the earthquake, the number of inquiries fell
temporarily before showing a recovering trend

Check

Effects on our business
1. Effects on our business were negligible⇒ As of March 31,
31 2011,2011 the number of our affiliated stores in the Tohoku region stood at 149
149, or 1
1.6%
6% of the total
total. Thus
the earthquake’s effects on our overall business were negligible.
The Company implemented a preferential program involving fee exemption for affiliated stores remaining closed due to damage
from the disaster, among those affiliated stores in the region
2. Cancellation of the real estate investment fair
⇒ The cancellation of the real estate investment fair, previously scheduled for March 12, had the effect of sales falling shortprojection by 10 million yen or so
3. While the number of inquiries declined soon after the earthquake due to reduced traffic levels,
it showed a recovering trend thereafter⇒ The levels of traffic fell markedly soon after the earthquake coupled with a decline in the number of inquiries
inquiries. That resulted
in the “HOME’S Real Estate Rents & Transactions” falling short of projection by 30 million yen or so. Although the Real Estate
Rents & Transactions business is currently recovering, the recovery of the Real Estate Rents & Transactions business has
been slow in coming

Rehabilitation assistance initiatives
Launch the website “HOME’S Accommodation Search
Assistance Program,” providing disaster victims withinformation on preferential lease properties

Launch the message board “Disaster Victims’ Temporary
Accommodation Information,” providing room vacancy
information registered by personal property owners willing tooffer help and support to disaster victims

4
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Accumulated
total

Financial Results for the Year
Ended March 31, 2011

Point

Sales declined 0.4% and operating profit fell 11.6% (*)

Consolidated

Item

Sales

10,738million yen
Operating Profit

1,749
million yen
Number ofaffiliated stores

9,564 stores

Year--onYear
on--year(vs. April to March)yen

Reasons for change: New detached house made a positive year-on-year contribution in sales value As for percentagechange, new detached house, custom-built house and refurbishment contributed
positively▲ 0.4%: The mainline Real-estate Rents & Transactions Business was almost flat year-on-year▲ 41 million yen: Withdrew from the Guarantor Operating Business (783 million yen in sales in the Year Ended March
31, 2010)* For details of sale trend by service, please see Page 9▲ 11.6%▲ 229 million yen▲ 16.2%▲ 1,849 stores

Sales Per Store

56,089

Summary▲ 1.4％▲ 768 yen

: Personnel costs declined by 76 million yen year-on-year
year on year and operating expense by 202 million yen
year-on-year. Advertising costs rose by 534 million yen year-on-year. Withdrew from the Guarantor
Operating Business (123 million yen in operating loss in the Year Ended March 31, 2010): Increase in costs relating to the relocation of the Company’s head office (rents + 53 million yen/permonth x 1 month worth of the total amount)* For details of P/L by segment, please see Page 13: Our key metric is “Number of objects > Number of affiliated stores.” The pace of growth in thenumber of affiliated stores slowed down. That resulted from our continued efforts to grow thenumber of objects mainly from the existing clientele, while curbing the number of sales persons for
new market development: Increase in the number of withdrawals from membership resulting from the pricing method change: Membership for the “Rakuduke” dedicated plan grew strongly to 1,036 stores (not included in thenumber of affiliated stores): Effective January 2011, the pricing method was changed. Sales per store grew year-on-year in
January and February during the moving season (January to March). Yet in March an increasing
number of potential movers refrained from actually moving, affected by the Great East Japan
Earthquake
Sales per store as of January 31, 2011: 59,686 yen (+6.6% year-on-year)
Sales per store as of February 28: 59,207 yen (+4.9% year-on-year)* Excluding the Guarantor Operating Business from which the Company withdrew in the fiscal year under review, sales grewby 464 million yen, or 4.6%, year-on-year

5
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Financial Results for the Year
Ended March 31

Consolidated
Accumulated
total

！

Check

Trend of major indicators

Trend of consolidated business performance

Sales (million yen)

Operating profit (million yen)

10,77910,738Net profit (million yen)

1,979

8,927

1,749

1,107

1,026

＋20.7％
％
▲0.4％

998

＋98.2％▲11.6％

FY03/200909年3月期

FY03/2010
10年3月期

Check

FY03/201111年3月期

FY03/2010
10年3月期

P/L by segment: p. 13
Trend of major costs: p. 7, 8
Ratio of Cost per Sales: p. 8

Sale by service: p. 9！

FY03/200909年3月期

FY03/201111年3月期

375＋7.9％＋173.1％

FY03/200909年3月期

FY03/2010
10年3月期

FY03/201111年3月期

Return to shareholders: p. 32“HOME’S Real Estate Rents & Transactions” trend of major
j indicators

No. of objects posted(1,000 objects)

Sales per store (yen)Number of affiliated stores(stores)

2,657

55,564

11,41356,85756,08910,120＋94.5％
＋2.3％

1,366

1,216

▲1.4％

9,564

＋12.8％▲16.2％＋12.4％
End
FY03/200909年3月期末End
FY03/2010
10年3月期末End
FY03/201111年3月期末

E09年3月期末End
d年
FY03/2009期末Breakdown of properties for real estate lease or sales: p. 11
Number of objects by area: p. 12

E10年3月期末End
d年
FY03/2010
期末

E11年3月期末End
d年
FY03/2011
期末End
FY03/200909年3月期末End
FY03/2010
10年3月期末End
FY03/201111年3月期末

Distribution of affiliated stores by area: p. 38

6
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Accumulated
total

Point

Financial Results for the Year Ended
March 31, 2011

Trend of Operating P/L

Sales declined 0.4% and operating profit fell 11.6% as SG&A expenses rose 2.4%
Unit: million yen

FY03/2009(Apr-Mar)

FY03/2010(Apr-Mar)

FY03/2011(Apr--Mar)(Apr

Change(year-on-year)

Percentage change(year-on-year)

Sales

8,927

10,77910,738▲41▲0.4%

Cost of sales

257

243

229

▲14

▲6.1%

Selling, general & administrative(SG&A) expenses

7,670

8,556

8,759

＋202

＋2.4%

Personnel costs
Operatingpg expense
p

2,934
2,130
361

3,583
1,926
515

3,507
2,460
313

▲76
＋534
▲202

▲2.1%
＋27.8%▲39.2%

Depreciation/amortization
cost

332

364

367

＋3

＋0.9%

Allowances of uncollectible
receivables and performance
guarantee

167

188

81

▲106

▲56.7%

Other selling, general &administrative (AS&A)
expenses

1,743

1,978

2,028

＋49

＋2.5%

Operating profit

998

1,979

1,749

▲229

▲11.6%

Net p
profit

375

1,026

1,107

＋81

＋7.9%

Operating profit margin (OPM)

11.2%

18.4%

16.3%

▲2.1p

－

Advertising costs⇒ See p. 9
for details

*1
*2
*3

*4

*5

• Due to the withdrawal from the Guarantor Operating Business (sale of NFS Co., Ltd.), sales and SG&A expenses decreased. In the year ended March 31, 2010, the Guarantor Operating Business recorded 783
million yen in sales, 123 million yen in operating loss and 906 million yen in SG&A expenses*1 The average consolidated number of employees stood at 582 (an increase of 4 year-on-year), including 23 new graduates (a decrease of 15 year-on-year). In the year ended March 31, 2010, NFS Co., Ltd.
recorded 382 million yen in personnel costs*2 Costs for listingg advertisingg and SEO,, p
processes contributing
g directly
y to attracting
g customers,, mainly
yggrew in the fiscal yyear under review. In p
particular,, in the fourth q
quarter following
g the change
g in the ppricingg
method, such costs increased by 404 million yen, or 72.5%, year-on-year*3 Decline due to the exclusion of NFS Co., Ltd. from the consolidated accounts (decrease of 119 million yen) and lower sales promotion expenses (decrease of 86 million yen), among others*4 Decline due to the exclusion of NFS Co., Ltd. from the consolidated accounts (decrease of 103 million yen), among others*5 In the fiscal year under review, the Company recorded head office relocation expenses (125 million yen), prior-year depreciation costs due to the recognition of asset retirement obligations (22 million yen) and aloss on sale of shares in NFS Co., Ltd. (229 million yen). In the year ended March 31, 2010, the Company recorded a loss on impairment of Lococom (141 million yen)

7
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Accumulated
total

Financial Results for the Year
Ended March 31, 2011

Point

Personnel cost ratio improved despite a 2.1 percentage point erosion of operating profit margin

Consolidated

Unit:
Millionyen

FY03/2009(Apr-Mar)

AmountFY03/2010(Apr-Mar)

Trend of cost to sales ratio

Breakdown

FY03/2011(Apr-Mar)

FY03/2009(Apr-Mar)

FY03/2010(Apr-Mar)

FY03/2011(Apr-Mar)

12,000100%

11,0002.4 ptimprovement90%

10,000
3,290

9,000

3,020

32.1%

28.1%

30.5%

80%
70%

8,000

Advertising
costs
t

2 862
2,862
7,000

1,926

2,460

6,000
5,000

60%

17.9%

22.9%

23.9%

50%
2,130

4,000

3,583
,

33.2%
3 507
3,507

30%

2,934
1,979

1,749

(Apr Mar)(Apr-Mar)
通期(4-3月)
通期(43月)- FY03/2010 -10年3月期-(Apr Mar)(Apr-Mar)
通期(4-3月)
通期(43月)- FY03/2009 -11年3月期-

998(Apr Mar)(Apr-Mar)
通期(4-3月)
通期(43月)- FY03/2009 -09年3月期-

32.7%
%

32.9%

20%

2,000
1,000

Personnel
costs

4.5 pterosion

40%

3,000

0

Cost andother
SG&A
expenses

10%

11.2%

18.4%

16.3%

通期(4-3月)
通期(4(Apr Mar)3月)(Apr-Mar)--10年3月期FY03/2010 -

通期(4通期(4-3月)
3月)(Apr Mar)(Apr-Mar)- FY03/2011 -11年3月期-

Operatingprofit0%
通期(4通期(4-3月)
3月)(Apr Mar)(Apr-Mar)- FY03/2009 -09年3月期-: “Cost and other SG&A expenses” (pink) improved significantly, supported greatly by lower expenses that resulted from the withdrawal from the guarantor operating business: “Advertising costs” (green) were expanded in the fourth quarter following the pricing method change, and were spent mainly on listing advertising and SEO, processes
contributing directly to attracting customers: “Personnel“Pl costt ratio”
ti ” (bl(blue)) improvedid thanks
th k tot theth withdrawal
ithd
l fromf
theth guarantor
t operating
ti business.
b i
The
Th average consolidated
lid t d numberb off employeeslgrew bby 4 persons
year-on-year* As a basic rule, we intend to maintain a personnel costs to sales ratio of approx. 30% and an advertising costs to sales ratio of approx. 20%

8Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Accumulated
total

Point

Financial Results for the Year Ended
March 31, 2011

Trend of sales by service
Main services grew year-on-year with the exception of the guarantor operating business from which
the Company withdrew in the fiscal year under review
FY03/2009(Apr-Mar)

FY03/2010(Apr-Mar)

FY03/2011(Apr-Mar)

Change(year-on-year)

Percentagechange(year-on-year)

Real Estate Rents & Transactions

5,931

7,014

7,096

＋81

＋1.2%

*1

New condominium

1,142

1,061

1,131

＋70

＋6.7%

*2

New detached house

600

804

994

＋190

＋23.6%*3

Custom-built house andrefurbishment

374

417

501

＋83

＋20.1%

Renter’s Co.

273

302

331

＋28

＋9.6%

286

361

351

▲10

▲3.0%

8,609

9,963

10,407

＋444

＋4.5%

26

27

35

＋7

＋26.4%

Unit: Million yen

Real estate information
services

Service name

Others

Note 3

Segment total

Local community

Lococom
Real estate lease warrant

Note 4

278

783

268

▲515

▲65 7%▲65.7%

OthersOthers

Note 5

13

4

26

＋21

＋450.7%

Consolidated

Total

8,927

10,77910,738▲41▲0.4%

Real estate lease warrant*4*5Note 1 Effective from the year ended March 31, 2011, the Company changed its segment reporting. Prior-year figures are presented herein after adjustment to the new segmentation
Note 2 All intersegment transactions were cancelled out
pof “HOME’S Real-estate Investment,”, “HOME’S Estimation for Relocation,”, “HOME’S Elderlyy Care Service” and HOME’S-derived businesses,,
Note 3 “Others” in real estate information services are composed
among others
Note 4 With sale of all shares in NFS Co., Ltd., our consolidated subsidiary, on August 2, 2010, we withdrew from the business concerned, which was excluded from the consolidated accounts starting from thesecond quarter of the year ended March 31, 2011
Note 5 “Others” consist of “property and casualty insurance agency business,” “(fee-charging) employment agency business (downsized in September 2010)” and “MONEYMO” and “eQOL Skincare,” the new
business lines, among others*1 Sales were flat year-on-year in the fiscal year under review due to the change in the pricing method. From the first quarter through the third quarter, sales grew 5.9% year-on-year before declining
11.4% year-on-year in the fourth quarter*2 The number of houses posted continued to remain below a year
year-ago
ago levels with the number of customers staying more or less flat.
flat Yet special program and option sales were strong*3 Both the number of customers and objects posted were strong, growing 12.6% and 12.4% year-on-year, respectively*4 Decrease resulting from the cancellation of the real estate investment fair due to the Great East Japan Earthquake*5 Starting from the second quarter of the year ended March 31, 2011, the real estate lease warrant was excluded from the consolidated accounts due to the withdrawal from that business9
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Quarter
NonNonconsolidated

Point

Financial Results for the Year
Ended March 31, 2011

“Real Estate Rents & Transactions”
Trend of major indicators 1

With the start of the peak season, the number of inquiries grew, resulting in higher sales per store

Number ofaffiliated stores
Unit: Stores

FY03/2009

Sales Per Store
Unit: Yen

FY03/2011

FY03/2010

60,00012,00058,00011,00056,00054,00010,00052,000

9,000
8,000

Sales
from objects posted
物件掲載売上高Salesfrom option
オプション売上高

492

500 513538

557 562

Sales per store(right scale)

Number ofaffiliated stores(left scale )541 536 539 557

563

603
580 585 594

623

Unit: Million
yen

404 408 418

87 92 95

423 421429 441 443 427 421 418

436
427 430 429

142 152 154
109 116 118 114 115 120 133

443

640 648622 609 611

445 452 436

601 602 604 604 587

427 421 402 399 395 389 375

165 166 179 195 196 186 181 189

50,00048,000

558

362

582
575
536

198 202 208 214 211 196

Oct 11月
Nov12月1月
Dec Jan 2月
Feb 3月Mar 4月Apr 5月May 6月Jun 7月Jul 8月Aug 9月10月
Sept Oct11月
Nov12月Dec 1月Jan2月
Feb 3月Mar 4月Apr MayJun 7月Jul 8月Aug 9月10月
Sept Oct 11月
Nov12月1月
Dec Jun 2月
Feb 3月
Mar
10月
5月 6月

* Due to the change in the pricing method, effective from January 2011, the chart shows thetotal amounts of sales from option and standard fee

Key indicators for “HOME‘S Real Estate Rents & Transactions” as of March 31, 2011
Number of affiliated stores: 9,564 stores
Sales per store: 56,089 yen
Monthly sales: 536 million yen

10
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Quarter
NonNonconsolidated

Financial Results for the Year
Ended March 31, 2011

“Real Estate Rents & Transactions”
Trend of major indicators 2

The number of properties grew strongly, exceeding 3.1 million at one time (in early March 2011)

Point

FY03/2009
Unit:
10,000properties

Number of properties
sold/purchased (left scale)
Number of properties
leased (left scale)

FY03/2011

FY03/2010

Unit:

The pay-per-inquiry fee structure applied nationwide:
Accelerating growth in the number of properties

Number of PVs(right scale)

300

279

275

216

225

20

265
21

161 166

175
150
125 105 107

26 27

113 11827 28

126 121 121 130 132 126 130
28 28 28

142 144134 135 137

27 26 26 26 26 26145

98 93 93 102
79 79 86 90

171
100

26 26 26 26 23 23 22 22

257
192

105 99 103 107 108 111 116 117

118 113 114 116 114

150
125

136 137 139 136 22 22 24

75

175

24

24

200

50

273

21 251 20

236

250

100

Million
PVs

212

231

253 244 75

138 143 146

50
25

25
0

Oct 11月
Nov
Oct
Dec Jan 2月
Feb 3月Mar 4月Apr MayJun 7月Jul Aug
Oct 11月
Nov 12月1月
Dec Jan 2月
Feb 3月Mar 4月Apr MayJun 7月Jul 8月Aug 9月10月
Sept Oct 11月
Nov 12月1月
Dec Jun 2月
Feb 3月
Mar
10月
12月1月
5月 6月
8月Sept
9月10月
5月 6月

0

The number of objects posted and page views (PVs) for “HOME'SHOME S Real Estate Rents & Transactions”
Transactions as of March 31,
31 2011:
The number of Objects Posted [Real estate lease]: 2,440,000 objects, [Real-estate transactions (used)]: 210,000 objects,
The number of PVs (reference data): 82,156,000 PVs

11Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Quarter
NonNonconsolidated

Point

Financial Results for the Year
Ended March 31, 2011

Number of properties by area

The number of properties, the most important indicator, grew across the country, recording a gain of
94.5% year-on-year

Number of properties
By area

How to readthe numbers

Hokkaido
Tohoku132,603(2.0%)＋61,462

Kita-kanto

KyushuOkinawa

117 595
117,595(1.8%)＋55,633[Branch]

Chugoku

Kinki

71,977755,608(2.1%)＋46 395＋46,395(7.7%)＋453,944[Branch]Shikoku

44,645(2.4%)(2
4%)＋29,401

Hokuriku
Koshinetsu

55,510(2.7%)＋36,602

G t Tokyo
Greater
T k267,716(4.2%)＋145,377,[Sales Office]

Area

2

Number of objects
posted on March,
31, 2011

1

Hokkaido
Tohoku2

132,603

3

The properties’
percentage of thetotal number ofresidential
properties in eacharea

3(2.0%)

4

Increase in number
from March 31,
2010

4 ＋61,462

79,622(1.6%)＋29,947
Tokai

1

！

Check
As of March 31,
31 2011

1,132,277

Number ofproperties
postedTokyo

Total numberof residential
properties
in Japan(6.8%)＋432,114[Headquarters]

2,657,553
properties
57,585,700
57
585 700
properties* Among objects posted, those shown as “same property” are double counted. Thus the percentage figures shown above differ from actual figures* The total number of residential properties in Japan is from the data on “total number of residential properties in Japan” contained in the “2008 Housing and Land Survey” by the
Ministry of Internal Affairs and Communications* Percentage distribution of affiliated stores by area is shown on Page 38 of the Reference Materials

12
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Accumulated
total

Point
Unit: Million
yen

Financial Results for the Year Ended
March 31, 2011

Trend of P/L by segment
Real estate information service operating profit declined 11.6% year-on-year due to a decrease in
the number of inquiries
FY03/2010(Apr-Mar))

Year-on-year

FY03/2011(Apr-Mar)

Unit: Million yen

19Real estate information
service

2,500
2,300
2,100

Local community

1,900
1,700
1,500
1,300

2 458
2,458

1,100
900

2,173

700
500

Real estate
information service
L
Local
l community
it

300
100
▲ 100
▲ 300
▲ 500

▲323

▲314

▲121
▲34
通期(4-3月)
FY03/2010(Apr-Mar)-10年3月期年期▲128
通期(4-3月)
FY03/2011(Apr-Mar)-11年3月期年期

Real estate leasewarrant
OthersChangePercentagechange▲ 284▲ 11.6%＋7―
Turned to
profitability

Real estate lease warrant＋ 141

Others▲ 94―

ConsolidatedC
lid t d operatingti
profit▲ 229▲ 11.6%*1 No percentage change is shown for segments other thanreal estate information service because those segments hadrecorded operating losses in the year ended March 31, 2010
* 2 Real estate lease warrant was excluded from theconsolidated accounts starting from the second quarter ofthe fiscal year under review
Note: Starting from the fiscal year under review, the Company
changed its segment reporting and indirect cost allocation
ratios.
Prior-year figures are also presented herein after
adjustment to the new segmentation method and allocation
ratios: “Real estate information service” (orange) recorded a sales growth of 444 million yen, yet its operating profit declined by 284 million yen as a result of increased advertising costs brought onby the change in the pricing method made in January 2011
: “Local community sales” (blue) grew by 7 million yen year-on-year: ”Real estate lease warrant” (green), after achieving profitability on the operating level in the first quarter of the year under review, was excluded from the consolidated accounts starting from thesecond quarter of the fiscal year due to the Company’s withdrawal from that business: ”Others” (pink) recorded increased costs for “MONEYMO” and “eQOL Skincare,” the new business lines. The (fee-charging) employment agency business was downsized in September 201013
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Accumulated
total

Financial Results for the Year
Ended March 31, 2011

Summary of topics

！

Key
yp
pointsContent/ObjectivejConsolidated

Check

Real estate
Information service！

1.The number of objects posted exceeded 3.1 million at one time in early March 2011 as a resultof the change in the pricing method

2. Provision of information in multiple languages

2. Launch of multiple-language services through “HOME’S Real-estate Rents & Transactions” and“HOME’S Real-estate Investment,” allowing the user to search for properties in English andChinese and make inquiries on certain properties

3 Service through smart phone3.

3. The initiation of the provision of Android application “HOME’S” along with other applications not
related to property search such as “Fight! Madori” and “HOME’S Major”

Check
Local community！

1. Achieved a record number of objects posted

1. Change of business model
2. Service through smart phone
3. Increase in the number of users and word ofmouth

St ti ffrom thStarting
the seconddh
half
lf off th
the fiscalfil year underd review,itheth LococomLb ibusinessliline wasbrought under the direct control of Takashi Inoue, President/Representative Director/CEO with theobjective of making a business model change and achieving profitability as early as possible. A fullrevamp of the website was completed in April 2011
1. Changed the pricing method to a usage-based charging format under which the user is charged
for the number of coupons used
2. Started to provide iPhone applications in April 2011 that allow users to obtain real time
information with the use of GPS functions
3. The number of word of mouth as of March 31, 2011 was over 200,000 with the membership
totaling 730,000 (an increase of 90,0000 year-on-year). The number of sessions amounted to
6,710,000 (an increase of 1,120,000 year-on-year)

Check
Others

1. Pursue new businesses
2. Pursue overseas businesses

1. Launched “MONEYMO,” the life style and money portal site, and “eQOL Skincare,” the mobile
website for atopic patients, respectively, for the provision of services
2. Established a dedicated department in June 2010. The Company is currently in the process of
selecting local partners in China and ASEAN nations toward setting up fully-fledged operations
in overseas locations

14
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Financial Results for the Year
Ended March 31, 2011

Consolidated
Accumulated
total

Consolidated balance sheet
and goodwill

BPS grew 13.4% and sale of shares in NFS Co., Ltd. resulted in a balance sheet downsizing

Point

Unit: Million yen

March 31, 2011[End FY03/2011]

March 31, 2010

AssetsChange

9,870

9,711

▲159

▲ 1.6%

Current assets

8,185

6,841

▲1,344▲ 16.4%

Fixed assets

1,684

2,869

＋1,184＋70.3%

Liabilities

2,667

1,595

▲1,071▲ 40.2%Current liabilities

2,661

1,355

▲1,306▲ 49.1%

Fixed liabilities

5

240

＋234

＋4,313.9%

7,203

8,115

＋912

＋ 12.7%

38,175.21 yen

43,277.03 yen＋5,101.82 yen＋ 13.4%

Net assets

Net assets per share

Main reasons for change

Percentage change

Decrease in cash: 1,781 million yen/Decrease in current assets (*1)
Increase in accounts receivable: 330 million/Increase in current assets
Decrease in advance money: 278 million yen/Decrease in current assets(*2)
Decrease in allowance of uncollectible receivables: 134 million
yen/Increase in current assets (*2)
Increase in fixed assets (*3)
Decrease in accrued income tax: 671 million/Decrease in current liabilities
Decrease in advance receipt: 510 million yen/Decrease in current liabilities(*2)
Decrease in performance guarantee allowance: 141 million yen/Decreasein current liabilities (*2)
Increase in asset retirement obligations: 236 million yen/Increase in fixedliabilities
Interest bearing debt: Zero
Increase in accumulated income: 985 million yen/Increase in net assets
Minorityy shareholder interest liquidated:q
69 million yyen/Decrease in net
assets (*4)

Unit: 1,000 yen
Goodwill amortization status

Total amountof goodwill

Beginning of period
residual value

April 2010 to March 2011amortization amountResidual value

Number ofmonthsoutstanding

Amortization completion
date

The former Willnic

50,00020,00010,00010,000

12 months

March 2012

The former Littel

216,738

216,7380216,738

60 months

March 2016

* Willnic Co., Ltd. and Littel Co., Ltd. were merged into the Company through absorption on July 1, 2010 and on April 1, 2011, respectively, with the Company as the surviving company* 1 Main reasons for decrease in cash: Payment of corporate tax and dividend. Security deposit and construction cost for the new office in Shinagawa. Capital increase by NFS Co., Ltd. and acquisition ofshares in Willnic Co.,
Co Ltd.
Ltd* 2 Increase/decrease on balance sheet items due to sale of shares in NFS Co., Ltd.
* 3 The main reason for the change in tangible fixed assets was an increase in building fixtures (518 million yen) resulting from head office relocation.
The main reasons for the change in intangible fixed assets was an increase due a revamp of Lococom (103 million yen), an increase due to the acquisition of shares in Littel Co., Ltd. (216 million yen)and security deposit and guarantee money for the lease of office space for the head office (405 million yen)
*4 The reason for the liquidation of minority shareholder interest: Acquisition of shares in Willnic Co., Ltd. (to make it a wholly-owned subsidiary of the Company)

Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

15

Consolidated
Accumulated
total

Point

Financial Results for the Year Ended
March 31, 2011

Consolidated cash flow

Investment cash flow (CF) stood at a negative 2,300 million yen approximately due to sale of NFS Co., Ltd.
and the head office relocation. The end-of-period cash flow balance amounted to 4,700 million yen

Unit: Million yen

Operating CF

Investment CF

FY03/2010＋ 2,033▲ 455

FY03/2011[Year under review]＋ 660▲ 2,317

FY03/2010▲ 1,372

Profit before tax
Depreciation/amortization cost
Loss on sale of shares in subsidiary
Loss on impairment
Increase/decrease in accounts
receivable
Allowance for loss on head officerelocation
Corporate Tax

1,807 million yen
364 million yen―
141 million yen▲171 million yen―▲531 million yen

1,365 million yen
367 million yen
229 million yen―▲ 296 million yen
125 million yen▲1,139 million yen▲198 million yen▲249 million yen▲ 509 million yen▲ 280 million yen―▲ 227 million yen▲ 1,861

Acquisition of tangible fixed assets
Acquisition of intangible fixed
assetsCash outflow due to the acquisitionof shares in subsidiary that involvesa change in scope of consolidation
Cash outflow due to sale of sharesin subsidiary that involves a change
in scope of consolidation
Deposit of security deposit andguarantee money―
4 million yen▲ 755 million yyen▲ 654 million yen

Paymentyof dividend▲ 37 million yyen▲ 120 million yyen

514 million yen―

Financial CF＋ 490

Increase/decrease in
cash and cash
equivalents＋ 2,068▲ 1,780▲ 3,849

BalanceBloff cashh anddcash equivalents

6,488

4,707

▲ 1,780124▲

FY03/2011

Main items

Change▲614

Cash inflow due to sale of treasury
stock

▲

[Year under review]

16
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

ForecastNEXT Co., Ltd. TSE 1st section 2120

Forecast

B siness Forecast for the YearBusiness
Ending March 31, 20122012

Consolidated
Forecast

Point！

Business Forecast for the YearEnding March 31, 2012

The top priority challenges for the YearEnding March 31, 2012
Enhance sales by maximizing the number of inquiries through “HOME’S” and achieve profitability
for “Lococom” on a single month basis

Check

The top priority challenges for the Year Ending March 31
31, 2012

R lE
Real
Estatet t Information
I fti Service
S i

Aim to enhance sales by maximizing the number of users and inquiries while maintaining
the number of properties on “HOME’S Real-estate Rents & Transactions”
Local Community

Attain p
profitability
y for “Lococom” as earlyy as ppossible throughg a change
g of business model
Aim to achieve profitability on a single-month basis

18
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Forecast

Point

Business Forecast for the YearEnding March 31, 2012

Summary

Expect to grow sales through “Lococom” under a new business model and through new businesses

Consolid
dated Financial Results

Item

FY03/2011 results

FY03/2012 business forecast

Consolidated sales

10 738 million yen
10,738

11 739 million yen
11,739Up 9.3%

Consolidated
operating profit

1,749 million yen

1,372 million yen

Down 21.6%

Assumptions
・ There are early signs of a moderate overall
recovery although the external
environment continues to be subject touncertainties due to planned power outage
and aftershocks
・ Key words for the internal environment■ Real estate information service
・ Improve the capability to attract
customers through a streamlining of listing

Consolidated
net profit

advertising and SEO

1,107 million yen

773 million yen

Down 30.1%

・ Improve usability
・ Enhance the contents
・ New product development■ Local community
・ Achieve profitability on a single-month
b i
basis

HOME’S Real-estate
R
Rents & Trransactions

Sales from “HOME’S
Real-estate Rents
and Transactions”

・ Change of business model

7,096 million yen

6,596 million yen

Down 7.1%

・ Service through smart phone
・ Promote use concerning specified areasand categories

Number of objects
jposted

2 657 objects
2,657

More or less flat

■ Other businesses
・ Attain profitability for new businesses(financial service and medical service
areas)
・ Aim to start proving real estate information

Number ofaffiliated stores

9,564 stores

Up slightly

service overseas (China and ASEAN
nations) within the year ending March 31,
2012

19
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Forecast

Point

Business Forecast for the Year Ending
March 31, 2012

Trend of operating P/LWhile sales are forecast to grow 9.3%, operating profit is likely to decline 21.6% due to anincrease in other general and administrative expenses
Unit: Million yen[Reference]
FY03/2010(Actual)

FY03/2011(Actual)

FY03/2012(Forecast)

ChangePercentage change

*1

Sales

10,77910,738

11,739＋1,001＋9.3%

Cost of sales

243

229

287

＋58

＋25.7%

Selling, general & administrative(SG&A) expenses

8,556

8,759

10,079＋1,320＋15.1%

Personnel costs

3,583

3,507

3,524

＋17

＋0.5%

*2

Advertising costs

1,926
,

2 460
2,460

2 568
2,568

＋107

＋4 4%
＋4.4%

*3

Operating expense

515

313

481

＋167

＋53.4%

Depreciation/amortization
cost

364

367

514

＋146

＋40.0%

Allowance of uncollectible
receivables and p
performance
guarantee

188

81

40

▲ 40

▲ 50.1%Other SG&A expenses

1,978

2,028

2,950

＋921

＋45.4%

Operating profit

1,979

1,749

1,372

▲ 377

▲ 21.6%

Net profit

1,026

1,107

773

▲ 333

▲ 30.1%

Operating profit margin

18.4%

16.3%

11.7%

▲4.6p

－

*1 For sales by segment and service, please see p.22 and p.23
*2 We have shifted to the increased hiring of new graduates accompanied by a curb on mid-career hiring. The number of new graduates hired in April 2011 totaled 23 persons(unchanged year-on- year). We will maintain the overall personnel costs at a level flat year-on-year by raising productivity for real estate information service and back offices while
expanding the number of staff for local community and other businesses*3 Advertising costs will decline by approx. 150 million yen year-on-year for real estate information service while growing by approx. 150 million yen year-on-year for local communityand by approx. 130 million yen year-on-year for new businesses*4 An increase in depreciation/amortization due to head office relocation*5 An increase equivalent in amount to the rent for office space plus approx. 580 million yen per year

Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

*4

*5

20

Consolidated
Forecast

Point

Business Forecast for the YearEnding March 31, 2012

Operating P/L breakdown
While sales are forecast to grow 9.3%, operating profit is likely to decline 21.6% due to anincrease in other general and administrative expenses
Contributing factor to higher operating profit

Unit: Million yen

Contributing factor to lower operating profit＋1,001

3,000
2,800

▲58

2,600
2,400

＋40
▲17

▲107
▲167

2,200
2,000

▲146

1,749

▲377
million yen

1,800
1,600

1,372

1 400
1,400

▲921

1,200
1,000
2011年

FY03/2011
3月期(Actual)

(実績)

①

(1)
売上高in
Increase
sales
増加分

②

(2)
原価増
Higher
cost

③

(3)
人件費
Personnel
costs

④
(4)
広告宣伝費
Advertising
costs

⑤

(5)
営業費
Operatingexpense

⑥
⑦
⑧
(8)
(7)
(6)
Other
for allowance of その他
減価償却費Provision
貸倒・保証
Depreciation/
uncollectiblell tibl receivables
i bl andd SG&A
amortization
ti ti
履行引当
expenses
performance
guarantee販売管理費

2012年

FY03/2012
3月期 )((Forecast)

(予想)

金繰入額

＋1,001 million yen (1) Increase in sales: We aim to achieve an increase in sales with a focus on new condominiums and “Lococom.” For sales by service, please see p.23
and p.24(3)
Personnel costs: We have shifted to the increased hiring of new graduates accompanied by a curb on mid-career hiring. The Company will step up its▲17 million yenpefforts byy enhancing
g the internal collegeg and traininggstaff development(4) Advertising costs: An amount equivalent to approx. 20% of the Company’s overall sales will be allocated to advertising with a main focus on listing▲107 million yen
advertising and SEO, processes that contribute directly to attracting customers(8) Other SG&A expenses: An increase in costs due to head office relocation (an increase equivalent in amount to the rent for office space plus approx.
▲921 million yen
580 million yen per year)

21
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Accumulated
total

Point
Unit:
Millionyen

Business Forecast for the YearEnding March 31, 2012

Trend of cost to sales ratio
While operating profit margin will deteriorate due to head office relocation costs, personnel costs
ratio will show an improving trend
BreakdownAmountFY03/2010

FY03/2011

FY03/2010

FY03/2012

12,000

100%

3,290

3,020

4,274

FY03/2012

Cost andother
expenses

8.3 % pt
deterioration90%

10,000

30.5%

28.1%

17 9%
17.9%

22 9%
22.9%

36.4%

80%
70%

8,000

60%

6,000

FY03/2011

1,926

2,460

2,568

3.7% pt
improvement

50%

Advertising
costs

21.9%

40%

4,000

3,583

33.2%

3,507

3 524
3,524

30%

Personnel
costs

32.7%
30 0%
30.0%

20%

2,000

1,979

1,749

1,372

通期(4-3月)
FY03/2010-10年3月期10年3月期

通期(4-3月)
FY03/2011-11年3月期11年3月期

通期(4-3月)
FY03/2012-12年3月期12年3月期(Apr-Mar)[Forecast](予想)

0(Apr-Mar)(Apr-Mar)

10%

18.4%

16.3%

通期(4-3月)
FY03/2010-10年3月期10年3月期

通期(4-3月)
FY03/2011-11年3月期11年3月期

11.7%

Operatingprofit0%(Apr-Mar)(Apr-Mar)

通期(4-3月)
FY03/2012(Apr-Mar)-12年3月期12年3月期[Forecast](予想): “Cost and other expenses ratio“ (pink) is likely to deteriorate. Office rents will increase due to head office relocation. Cost and other expenses to sales ratio is forecast to risefrom 3.7% to 8.5%
: “Advertising costs ratio” (green) is likely to improve. Advertising spending will be allocated efficiently to listing advertising and SEO, processes that contribute directly torevenue generation: “Personnel
Personnel costs ratio”
ratio (blue) is likely to improve. The Company has shifted to the increased hiring of new graduates accompanied by a curb on mid-career
mid career hiring while
stepping up staff development through internal training: “Operating profit ratio“ (orange) is likely to deteriorate due to an increase in expenses resulting from head office relocation* As a basic rule, we intend to maintain a personnel costs to sales ratio of approx. 30% and an advertising costs to sales ratio of approx. 20%

22
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Forecast

Point

Business Forecast for the Year Ending
March 31, 2012

Trend of sales by service
While the Real-estate Rents & Transactions business will post a decline in sales, other services willcompensate for such sales decline, enabling us to achieve a 9.3% growth in overall sales

Unit: Million yen

Real estate information
services[Reference]
FY03/2010(Actual)Service name

OthersChangePercentage change

7,014

7,096

6,596

▲500

▲7.1%

*1

New condominium

1,061

1,131

1,505

＋373

＋33.0%*2

New detached house

804

994

1,149

＋154

＋15.5%*3

Custom-built house andrefurbishment

417

501

515

＋13

＋2.7%

Renter’s Co.

302

331

391

＋60

＋18.1%

361

351

344

▲6

▲1.9%

9,963

10,407

10,502

＋94

＋0.9%

27

35

928

＋893

＋2,539.2%

Note 2

Segment total

Real estate lease warrant

FY03/2011(Forecast)

Real Estate Rents &Transactions

OthersLocal community

FY03/2011(Actual)Lococom
Real estate lease warrant

Note 3

783

268

－

▲268

▲100.0%

Others

Note 4

4

26

308

＋281

＋1,048.7%

10,77910,738

11,739＋1,001

＋9.3%

Total

*4

*5

*6

Note 1: Intersegment transactions were cancelled out
Note 2: “Others” in real estate information services are composed of “HOME’S Real-estate Investment,” “HOME’S Estimation for Relocation,” “HOME’S Elderly Care Service” andHOME’S-derived
HOME
S derived businesses, among others
Note 3: With sale of all shares in NFS Co., Ltd., our consolidated subsidiary, on August 2, 2010, we withdrew from the business concerned, which was excluded from theconsolidated accounts starting from the second quarter of the year ended March 31, 2011
Note 4: “Others” consist of “property and casualty insurance agency business,” “MONEYMO” and “eQOL Skincare,” the new business lines, among others*1 We aim to achieve an early sales recovery by causing the number of inquiries to increase and pursuing the development and expanded marketing for optional products*2 The Company will raise the average unit price for properties by selling optional products while maintaining the number of houses posted through an addition of sales personnel
3 The marketing of optional products will be boosted through an addition of sales personnel
personnel. At the same time
time, we will continue the efforts to prospect new clients*3*4 The sales personnel added in the year ended March 31, 2010 will be mobilized for an aggressive marketing of new CRMs, among others*5 We aim to achieve a significant sales growth by prospecting new customers and changing the business model on the back of an addition of sales personnel*6 The targeted annual sales for “MONEYMO” and “eQOL Skincare” are 229 million yen and 27 million yen, respectively

23
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Forecast

Business Forecast for the YearEnding March 31, 2012

Unit: Million yen

Breakdown of sales by service

Increase in sales＋1,001
million yen

Decrease in sales

12,500＋281

12,000＋893

11,73911,50011,00010,738

＋154

＋13

＋60

＋373
10 50010,500▲6▲268
10,000▲500

9,500
FY03/2011
2011年(Actual)
3月期

(実績)

Real
賃貸保証
estatelease
warrant

(1)

(2)

(3)

HOME’S RealHOME’S new Custom-built
HOME’S new
house andestate Rents &detached
condominium
refurbishment
Transactions
house* The Company withdrew from the real estate lease warrant
business in the year ended March 31, 2011

(5)

(4)

Renter’s
net-related

⑥
(6)
その他
Others(7)(8)

Lococom

Otherbusiness
OthersLocalcommunity

2012年
FY03/2012
3月期[Forecast](予想)

Real estate information services

24
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Forecast

Point

Business Forecast for the YearEnding March 31, 2012

Challenges and measures

Maintain the number of objects posted at current levels and strive to maximize the number of inquiries
Item

Challenges in FY03/2011

Measures to be taken in FY03/2012

NumberNb off objects
bj tpostedThe numberTh
b off objects
bj t postedt d
on March 31, 2011 stood at 2.65
million・In the year ending March 31, 2012, we will seek to maintain the numberof objects posted at the greatly-increased levels
・Give priority to providing continuous support to existing affiliated stores overprospecting potential new affiliated stores・Reduce advertising costs by approx. 150 million yen, and spend costs
efficiently on listing advertising and SEO, processes that contribute directly to

Number of
unique users

The number of unique users (UUs)
was flat year-on-year

Number of inquiries

The ratio of customers making an
inquiry (CVR) was flat year-on-year

attracting customers
・Advertise our brand without spending costs by using social media, and gainincreased recognition from users

・Continue to perform multivariate analysis
・Seek to improve usability through continuous website revamping
・Enhance website content such as incidental information

・Grow sales through the expansion of the number of inquiries on the back of
the above-mentioned measures

Sales

Sales per store fell short of projection

・Improve sales per store by expanding sales of the existing optional products
and developing new products

25
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Business Forecast for the Year Ending
March 31, 2012

Consolidated
Forecast

！

！

Check

(1) Website measures

Check

Develop the recommendation engine

Information sorting for properties posted

By combining the Littel Research Institute’s advanced technologies (natural
language processing and high-speed high-capacity data processing [Hadoop])and the Company’s
p y services,, we will develop
p a technology
gy for p
providingg optimump
information, selected from among a vast amount of information, and therecommendation engine that will send out information to people with potential
needs

Employing a format allowing the user to easily spot a property of preference
among the greatly-increased properties due to the displaying of the merged
information from duplicatepppropertyp y listingsg〈Search system based on information sorting〉〈Conceptual diagram of the recommendation engine〉
WebsiteAnalyze behavioral patternandd purchasehhihistory,t
anddaccumulate the data

WebsiteDB

Duplicate properties
merged into one!

Search result

Display products in areas ofte est to tthe
e use
user
interest
Recommendation

Under this search system, duplicate properties are displayed as a single
merged listing on the “Property View Page.” If the user clicks preferredconditions on the “Property View Page,” the page is moved to the “Single View
Page for Duplicate Properties.”•In the case of a non-duplicate property, the “Property View Page” is moved
directly to “Property
Property Details Page”
Page as is currently being done

26
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Consolidated
Forecast！

Business Forecast for the YearEnding March 31, 2012

(2) Optional product development
and sales expansion！

Check
Launched “Next-Generation Real Estate
Homepage Annex” in May 2011
Launched ““Next-Generation Real Estate Homepage Annex” in May 2011, a CMS (*)
dedicated to the production of real estate company homepage. This CMS allows the user
real estate company to enjoy improved operational efficiency as it enables a homepage
creation in a mere 30 minutes or so without any need for specialized knowledge
knowledge, coupledwith the benefit of easy editing functionalities. In addition, property information on the user
company’s homepage is synchronized with information displayed on “HOME’S.” Informationis also automatically optimized to suit mobile phone and smart phone

Check
Help affiliated stores attract customers and expand sales of
products designed to assist their revenue improvement
Through the provision of optional products capable of capturing
user attention more easily, we help affiliated stores attract
customers and improve their revenue
Increase exposure by a highranked display on search
result page
Charge: 10pt from 5,000 yen< Example of service >Automatically
optimized

ＨＯＭＥ’Ｓ special ad spot (ad point)

Contains videos for a 180-degree viewing
Charge: 5,000 yen/month for 10 properties

Completed web page
[Characteristics]
・ Enables an easy homepage creation and editing
・ Optimizes information automatically to suit mobile phone and smart phone

Log analysis
web page・ Allows the user company to express its originality due to

ＨＯＭＥ’Ｓ panorama posted

the availability of a wide range of texts and designs for use
・ Property information synchronization with HOME’S・The availability of log analysis function

Initial creation fee: 50,000 yen
Monthly use fee: 10,000 yen* Contents Management System: Collectively refers to software and its system for constructing, editing and operating a homepage (web contents)

27
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Forecast
NonNonconsolidated

Point

Business Forecast for the Year Ending
March 31, 2012

“Lococom” revamp
Full revamp completed in April 2011. As the first step, providing local community information with afocus on restaurants and other eating places in 23 wards of Tokyo[Trend of “Lococom” website metrics](Unit: 10,000 page views)

Number of personal members (Unit: 10,000)
個人会員数(万人)Pageviews (万ペ(Unit: 10
10,000)
ペ ジビ
ページビュー(万ページビュー)
ジビ000) )Numberof sessions (Unit: 10,000)
セッション数(万セッション)

2,101
1,933 1,869
1,747

1,847
1,707
1,456
1 414
1,414
1,298
58

59

60

62

63

498

22,209209
2,155
2,087 2,128
2,136
2,037

64

559

65

66

67

1,971
1,892
1,822

69

646
501

373

446

70

714

71

71

71

72

72

72

73

(10,000 members)

660 625 620 628 644

746

671

497
(10,000 sessions)

196 183 173

Service through three kinds of devices(smart phone, mobile phone, PC)

Oct

Nov

Dec

Jan FebMar

Apr

May JunJul

Aug Sep

Oct

Nov

Dec

Jan FebMar

10月 11月 12月 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月

28
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Forecast
NonNonconsolidated

Point
！

Business Forecast for theYear Ending March 31, 2012

“Lococom” full revamp
Lococom’s new business model is based on the pay-per-service fee structure involving the use ofGPS-synchronized coupon

Check
The pay-per-service fee structure under which fee is charged according to
the number of “GPS-synchronized coupons” used

Number of coupons used
(Number of store visitors)

３５０ yen・ Promote coupon use by assigning points to users, and help increase the number of coupons used
・ Add to the number of sales staff to expand the number of store members<User perception of use>
User ⇒ Can accumulate points● Check-in: 1 point● Word-of-mouth posting: 20 points● Use coupon: 10 points/person● “Good!”: 1 point(4) Convert into
cash !

Use thepointsaccumulated(1) Check-in !

(2) Use coupon !

<Fee structure for store members>
Initial cost
10,000 yen
Monthlyy standard fee
3,000 yyen
Use of GPS-synchronized coupon 350 yen/person

Chargefee(3) Word-ofmouth posting!

(4) Donate !

* “Good!” gives the user
an opportunity to get
additional points

Monthly standard fee: 3,000 yen

29
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Forecast
NonNonconsolidated

Point

Business Forecast for the YearEnding March 31, 2012

Current status and measures

Aim to achieve 900 million yen in sales by growing the number of personal users and store members
Item

Current status

Measures to be taken from now on

Number of users
Number of word of mouth

Personal members totaling 730,000
The total number of word of mouthover 200,000 instances
Monthly users totaling approx. 6.7
million persons

・ Spend 190 million yen on advertising・ Organize an event in Shibuya in May, marking the releaseof iPhone applications
・ Scheduled to conduct a use promotion campaign

Number of affiliatedstoresServiceSi llaunchedh d iin A
Aprilil 2011 ffor
JR Yamanote Line areas. Service
area expansion currently underway

・Aim to grow the number of affiliated stores at an accelerated
pace through collaboration with major industry player
・Boost sales capability by adding to sales personnel
・Invite potential member stores to join our website with afocus on a limited number of areas

Number of coupons used

In April 2011, launched the service
allowing the user to download
coupon on iPhone and GPS
function-equipped mobile phone

・ Scheduled
S h d l d tto llaunchh servicesiprovided
id d ththroughhA
Androidd id
mobile phone (1st half of FY03/2012)
・ Enhance website contents such as coupon site
・ Scheduled to add to the functions of the Littel ResearchInstitute’s recommendation engine

Sales

FY03/2012 targeted number ofaffiliated stores: 6,000 to 7,000 stores

Sales: 900 million yen

30
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Forecast
NonNonconsolidated

Point

Business Forecast for the Year Ending
March 31, 2012

Lococom continuing to spread

Utilize virally-spreading word of mouth to promote use by increased number of users
PromoterepeatingBecome the store’s follower

Visit store
Store

User

Use coupon!

A
Awareness

Provide real-time information
as required

Acquire informationfrom the store
displayed on the map

Check-in !
Posting words of mouth!

Use the word of mouthand check-in functions
to give information toother users

Share

Visit by interested users
who have seen word ofmouthInterest

31
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Business Forecast for the YearEnding March 31, 2012

Consolidated
Forecast

Point！

Dividend forecast
We expect to pay 620 yen in FY03/2012 dividend with the dividend ratio rising to 15.0%,
an increase of 5 percentage points
Item

FY03/2011

FY03/2012 (Forecast)

Annual dividend(Forecast)

590 yen620 yen

Consolidated
net profit

1,107 million yen

773 million yen

Dividend ratio

10.0%

15.0%

Check

Our basic policy on profit allocation
We strive to develop our business aggressively and grow profit continuously. At thesame time, we identify the return of profits to shareholders as one of the important
corporate management policies while focusing on “retained earnings” andinvestment for future growth”
growth that are aimed at enhancing and strengthening the“investment
Company’s financial structure.
With respect to dividend, it is our basic policy to flexibly allocate the fruit of ourendeavors according to the results of each accounting period in consideration of our
medium- to long-term business plan.

！

Check

FY03/2012 profit allocation
We expect the FY 03/2012 dividend ratio to rise to 15.0%, a gain of
50 percentage points from FY03/2011, as we will further strive toreturn profits to shareholders in light of the increasing stability of our
financial position
position.
That will constitute the payment of 620 yen per share in FY03/2012
dividend.

* The amount of “ordinary dividend” is subject to change according to the actual consolidated net profit (dividend ratio of 15%)32
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

NEXT Co., Ltd. TSE 1st section 2120
ネクスト 東証第一部 2120

Future Business Development

The concept of our future business development
Point

The Next Group’s strategy is to aim at becoming a global company with “DB+CCS” (*)◆ Communication service✔ Service enabling the user to becomeacquainted with people and feel rapport
with and warmth of such people✔ Service allowing users to help eachother
◆ Concierge service✔ Service enabling the service provider
to select information best-suited to theperson in question and offer proposal tothat person✔ Service allowing the service provider
to identify latent needs as well and offer
recommendation

Concept of “DB+CCS”

User

User needs

Best-suitedBestsuited data

CCS
Provide “DB＋CCS” tosolve the “non-availability” issue
in the world

A vast amount of data

In Japan

LivingCommunity

Work

Finance

Medical

Education

Eating・・・

Overseas

Livingg

CommunityyWork

Finance

Medical

Education

Eatingg・・・

DB✔ Database from which anyone canobtain required information through any
device, anytime and anywhere✔ Comprehensive database of direct
relevance to people’s “life”✔ Database usable in Japan as well as
overseas✔ Database free from false information* “DB+CCS”: An abbreviation for “Database” and “Communication & Concierge Service”

34
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

The concept of our future business development
Point

In addition to the growth of the real estate information service, the revenue base, we are
studying new businesses as well as overseas business development！

Mid/loong-term goa
als

Sales

Check
Overseas business
Development(yet to be implemented)[Corporate management metrics]
1. Aim to achieve an operating profit margin of 25%
2. Improve productivity
3. Return of profits to shareholders through a・Real estate information service

continuous dividend payment and profit growth・Local community
・Others[Business development]
1.HOME’S as absolute No.1 = Improve property
comprehensiveness2.Secure a new revenue base
3 Overseas business development
3.Overseas

New business(already launched)

New business(yet to be launched)・ LocalL
l communityit・ Life and money
information website
・ Medical informationarea

・ Education area,
area etc
etc.

Aim to become
an infrastructure of life
through the developmentof our business basedon the practice ofour management
principles, andexpand our scale

Base business・Real estate information service
Future shape

Now

Timeline

As of May 201135
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

NEXT Co., Ltd. TSE 1st section 2120

Reference
Materials
Reference Materials ・・・ pp. 36-50
36 50
Real Estate Information Service “HOME’S” ・・・ pp.37-38
External Environment ・・・ pp.39-40
New Business ・・・ pp.41-42
Corporate Topics ・・・p.43-44
Company Credo and Management Principles, Corporate Profile,
Shareholder Composition and Group Companies’ Profile ・・・ pp. 45-49
IR Information Contact Details and “IR News” ・・・ p
p.50

36
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Real Estate Information Service “HOME’S”
Point“HOME’S” business model: Fee structure based on the number of inquiries

CustomerNEXT (“HOME’S”)
Inquiry

View information
Make inquiry(Real-estate Rents &Transactions)

Real estate broker
Real estate
managementcompany

Post property
information(Real-estate Rents &Transactions)Upper: PC site

(Standard fee plus charge onsome options)View information
Make inquiry

Inquiry

Developer

User

Register property
information
Register company
information andconstruction workcase examples

Home builder
Building contractor
Remodeling
contractort t

Left: Mobile site
Right: Smart phone application

Free

Charge37
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Real Estate Information Service “HOME’S”
Point

Affiliated store growth rate is low because we strive to prospect new affiliated stores and increase thenumber of properties with a focus on major real estate management companies

Percentage distribution ofaffiliated stores by region

Kinki

Chugoku
KyushuOkinawa

1.4%

18.1%
[Branch]2.5%[Branch]Shikoku

1.0%

How to read thenumbers

Hokkaido
Tohoku2 6%
2.6%

Kita-Kanto
Kita
Kanto

Hokuriku
Koshinetsu

2.4%

1.6%

1

Hokkaido
Tohoku

2

2.6%

！

1
2

Area
Percentage
share of thetotal number
of affiliatedstoresCheck
Number of affiliated storesas of March 31, 2011

Greater Tokyo

9 564 stores
9,564

66.3%

Total number of realtor storesin Japan (estimate)Tokyo

255,000
255
000 stores(estimate)

Tokai

4.1%
[Sales office][Headquarters]

Source: The potential market size is from an Ichiyoshi Research Institute report・ Pursuing locally
locally-focused
focused sales activities mainly through four sales offices
offices. Prospecting new affiliated stores with a particular focus on major real estate management companies inGreater Tokyo and other large city areas
・ As of March 31, 2011, a total of 1,036 stores was on the membership list of the “Rakuzuke” dedicated plan, the inter-realtor property information sharing service (those stores are
not included in the number of affiliated stores)

38
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

External Environment
Point！

The external environment is recovering modestly

Check
Housing
starts/Leased house (units)
着工戸数/貸家（戸）Housing
starts/Condominium (unit)
着工戸数/マンション（戸）Housing starts/Detached house (units)

Housing
starts/Owner-occupied home (unit)
着工戸数/持家（戸）Number of transactions/Newlytransactions/Newly-built
built condominium
成約件数/新築成約件数/新築マンション（前年同月比・右軸）（前年同月比 右軸）
year-on-year,
right scale) シ

着工戸数/一戸建（戸）Number of transactions/Previously-occupiedyphome(year-on-year,
right scale)
成約件数/中古流通（前年同月比
成約件数/中古流通（前年同月比・右軸）
右軸）

100,000

60.0%

90,00050.0%

80,00040.0%

70,00030.0%
Up year-60,00020.0% on-year

50,00010 0%
10.0%

40,00030,00020,0000.0%

Declining previously-occupied homes due tothe effects of the earthquake

10,000

Down year--20.0%
20 0% on-year-30.0%

09
年
9月
09
年
10
月
09
年
11
月
09
年
12
月
10
年
1月
10
年
2月
10
年
3月
10
年
4月
10
年
5月
10
年
6月
10
年
7月
10
年
8月
10
年
9
10 月
年
10
月
10
年
11
月
10
年
12
月
11
年
1月
11
年
2月
11
年
3月

0

-10.0%

・ Various housing starts data from the “Statistics on Building Construction Starts,” the Ministry of Land, Infrastructure, Transport and Tourism
・ Number of transactions/Previously-occupied homes from the “Greater Tokyo Real Estate Market Report,” Real Estate Information Network for East Japan・ Number of transactions/Newly-built condominiums from the “Nationwide Condominium Market Report,” Real Estate Economic Institute Co., Ltd.

Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

39

External Environment
Online advertising continues to grow as the second largest medium trailing only TV advertising

Point
！

Check

(Unit: 100（単位：億円）millionilli yen))

Newspaper
新聞

Magazine
雑誌

Radio
ラジオ

TV
テレビ

Onlineadvertising Spending
インターネット広告費

20,00015,000

10 00010,000

5,000

0
2002年
2002

03年
2003

04年
2004

05年
2005

06年
2006

07年
2007

08年
2008

09年
2009

10年
2010

Source: Dentsu Inc. “2010 Advertising Spending in Japan”

40
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

New Business
Point“eQOL Skincare,” the mobile website for atopic patients

Information service designed to help solve “non-availability” for persons
with atopic skin inflammation and food allergy

Improve quality of life
We want persons with atopy or allergy to lead a fruitful life just like healthy persons! We will continue toprovide services for achieving that goal.

！

“eQOL Skincare” top page

Check

Approx. 10% of the Japanese population are
atopic inflammation patients

12.26 million

Approx.
pp
1.5% of the Japanesepppopulationparepersons with food allergy

1 84 million
1.84

Single-month sales
240,000 (targeted) x 300 yen (use fee)

Scratching record
Community message board

Targeted sales for
FY03/2012

Targeted sales
for FY03/2015

27 million yen

1 billion yen

Aim to curb scratchingg and improvep
QOL (q(quality
y of life)) throughg managing
g g habitualscratching behavior with the use of a friendly-looking character
Introduced a venue where different users with common problems and topics can
exchange opinions with one another. As a mobile site, this message board allows users
to interact with each other in a casual manner.

Arrangement for delivery ofsamples

For users not easily finding a moisturizer suited to their own skin and other suitable skincare and hair care products, we are providing the service of arranging for delivery ofcosmetics samples

Other functions

Atopy experts column, email magazine / My page functions (viewing of scratching record
and its management, hospital visit record, drug pocketbook) / searching of hospitals,
drugs and users

http://skincare.eqol.jp/

41
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

New Business
Point“MONEYMO,” the life and money portal site

Utilize the information portal knowhow developed through “HOME’S” in the financial services area！

Check
[Contents provided]
・Make a reservation for a life insurance consultation session
・Car insurance premium quotation
・All-inclusive quotation for fire insurance premium
・A review of household finances (household account book)
・Market rent information (synchronized with property informationof “HOME’S”)
・Web
Web album
・Problem-solving guide (from May 11, 2011)

In May 2011, we launched the “Problem-Solving Guide,” a siteallowing users to view different users’ various problems cited for
consultation with 1,570-strong registered experts affiliated with “All
About Profile
Profile” within “MONEYMO”
MONEYMO and details of such problems aswell as experts’ answers totaling approx. 65,000 (as of April 2011)“MONEYMO,” the life and money portal site

http://moneymo jp
http://moneymo.jp

Targeteda geted sales
sa es foro
FY03/2012

229 million yen

42
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Corporate Topics
In January 2011, we changed our corporate
message to “Enter the NEXT stage”！

Enhance the corporate website

New corporate logo

CheckThis corporate message incorporates the following seven meanings:
1. NEXT will become an entity indispensable to the public
2. The door to a better future will be opened for the public
3. A better environment for the public will be achieved

！

Check

Conceptual diagramof the website

4. NEXT will open
p the door to a future
5. NEXT will become an entity directly relevant to different persons’ lifestyles
6. NEXT will guide the public to a better life stage

We have introduced “FAQ,” “To Personal Investors,” and “Glossary” on our
corporate website, communicating NEXT’s opinions and its frequently-usedterms in a more user-friendly manner

7. NEXT will enter the next stage

Released NEXT’s
NEXT s first CSR report

Other new logos

Location of posting:NEXT corporate website＞CSR＞CSR report

43
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Corporate Topics！

Check“HOME’S” becomes Japan’s first website to provide realestate information search service in English and ChineseWee havea e launched
au c ed seservices
ces tthroughoug foreigno e g language
a guage websites,
ebs tes,“HOME’S English Version,” “HOME’S (Simplified) Chinese Version),”and “HOME’S (Traditional) Chinese Version,” designed for nonJapanese persons considering moving home or buying a property intheir home countries. That was the first initiative by a Japanesecomprehensive real estate portal for providing service in English andChinese, and the user is able to view information on 2.66 million
properties
ti across JJapan posted
t d on “HOME’S” ((as off M
March
h 31
31, 2011) inisuch foreign languages

Other news releases

！

Check
Started to provide the “HOME’S Elderly Care”
application in May 2011

* The diagrams are conceptual

Search condition
screenProperty viewscreenProperty details
screen“HOME‘S Elderly Care” is the first iPhone application in Japan enabling the user
to search for nursing homes and nursing care establishments across Japan
By specifying the area and the level of entrance fee, the user is able to easily
search for nursing homes, group nursing homes and nursing careestablishments, including elderly tenant-dedicatedtenant dedicated lease properties, across thecountry. While supplying a wide range of detailed information such as facilities
photos and various acceptance systems, “HOME‘S Elderly Care” allows theuser to compare and study in a thorough manner before making an inquiry by
toll-free telephone* iPhone is a registered trademark of Apple Inc.
The iPhone trademark is used under license by Aiphone Co., Ltd.

44
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Company Credo and Business Principles

Company

Credo

Altruism“”.

This idea will aim at all the directions.

Business Principles of NEXTWe will always go forward to build asociall mechanismhthroughhh whichh h morepeople can receive“” and “”45
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Corporate profile
Company nameNEXT Co., Ltd (TSE 1st Section: 2120)

Representative

President/Representative Director/CEO Takashi Inoue

EstablishedMarch 12, 1997 (Accounting year end: March)

Paid-in capital

1,992 million yen

Consolidated numberof employees

597 (including contingent employees totaling 76)

Business contents

Real estate information service (main business accounting for 96.9% of the overall sales)
Local community
OthersN b off shareholders
Numberh h ld3,734 (as of March 31, 2011)

Major shareholders

Board member of NEXT, Rakuten, Inc.
(NEXT Co., Ltd. is an equity method affiliate of Rakuten, Inc.)

Number of shares outstanding: 187,650 shares
An increase of 18 from March 31, 2010

An increase of 479 from September 30, 2010

Headquarters address
Shinagawa Front Building (general reception 3rd floor), 2-3-13, Konan, Minato-ku, Tokyo(relocated in January 2011)
Consolidated subsidiaries((equityq y interest ratio))

Renter’s Co.(100%)
Littel Co., Ltd. (100%) * Merged into NEXT Co., Ltd. through absorption on April 1, 2011
and renamed Littel Laboratory
As of March 31, 2011

46
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

Shareholder composition
Point

The number of shareholders stood at 3,734, an increase of 479 from September 30, 2010, withforeign ownership ratio up by 8.0 percentage points

Number of shareholders

3,734 (as of March 31, 2011)

Major shareholders

NEXT Co., Ltd. directors and Rakuten Inc. (NEXT Co., Ltd. is an equity method
affiliate of Rakuten, Inc.)

An increase of 479 from September 30, 2010

Shareholder Composition(As of March 31, 2011)
Financial institutions

Financial instruments business operators
34 (0.9%)22 (0.6%)
Japanese government andmunicipal governments
1 (0.0%)Treasury stock
1 (0.0%)Total 3,734

Foreign corporations
57 (1.5%)
Other corporationsp
34 (0.9%)

Individuals and others
3,585 (96.0%)

Number of shares
Status of shares
Item

Japanese
Financial Financial
government
institutions instruments
business
and municipal
operators
governments

Other
corporations

Foreign Individuals Treasury
corporat and others stock
ions

Total

Status of
odd-lotsharesNumber of shares
h ld
held
Shareholdings
percentage of the
total

47
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

About the NEXT Group

Business model

ClientReal estate brokers
Real estate management companies
ＨＯＭＥ’Ｓ affiliated stores totaling 9,564

Major real estate companies
and developers
ＨＯＭＥ’Ｓ newly-built condominiums
Number of clients 243 companies

10,000 yen/month

50,000 or more/month per unit

Place banner advertis
sementNewly-built condos 1,430 buildings
Newly-built detached (built-for-sale)
houses 3,270 units

Local community
Providee management tools(Houseehold account bookand address list, etc.)

munity information
Comm
Searrch and posting

Searcch/viewing of
consttruction work
casse examples
andd company
information

Inquiry
Information
pacck request

InquiryFree

Properrty information
search/viewing
Inquiry
Inforrmation packrequestPaid

Post store bloog[Number of properties posted]
For lease2,440,000
For sale
216,000

Various business operators(Franchise chain members,
eating places, staffing
companies, among others)

Post construction work caseexa
amples and company informationi

Post property inform
mationPost property inforrmation

Charge fee

Post property inform
mationProvide ASP
service

Real estate company sales
support tool
Renter’s Co.

Building contractors
Home builders
Remodeling contractors
590 companies
50,000 yen/month
10,000 yen per inquiry

Internet user
Total page views: 82.15 million PVs/month(Property lease and purchase/sale combined)

Total page views:19.71million PVs/month
Number of sessions: 6.71 million/month
Number of personal members: 0.73 million(As of March 31, 2011)
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

48

About the NEXT Group

Consolidated subsidiary Renter’s Co.

Providing realtor operations support service through ASP
Renter’s Co.
Renter’s top page<http://www.ra1.co.jp/>

Various functions ofRenter’s Net(1)Portal advertisement conversion function
Realtor’s
Realtors own website

Realtors

HOME’S

SUUMO

at home AD PARKREINS

HOME’S members
It is said that a realtor places a given piece of property information on two to three portals. By
registering the property data with Renter’s Net, such realtor can have the data posted on thosediffdifferent
portals
l simultaneously,i ll whichhi h will
ill makek iit unnecessary to carry out multiple
li lregistrations

Main functions of “Renter’s Net”
(1) Property data management, advertisement
placement on portal, converting function(2) Real estate broker information management,
block fax transmission(3) ResponseRddatat management,t customer
t
data
d t
management, corporate management duties
control

Data view
wing, search,
Analysis, management

NEXT Co., Ltd. made Renter’s Co. a wholly-owned
subsidiary in April 2007 through a share swap. As aprovider of “Renter’s
Renter s Net
Net”,, the realtor sales support
system ASP service, Renter’s contributes to realtors’
operational streamlining efforts

Register propertypinformaation

What is Renter’s Co.?

Renter’s
Renters Net
Provide andoperate ASP
services(2) Broker management and block fax transmission function
Each broker
servicing a realestate managementcompany
Renter’s Net enables the automatic data collection/management of real estate brokeragecompanies’ individual operational results through an IT system. That allows the user to select abetter-performing broker as the provider of property brokerage service under commission. Under
the system, once a property becomes unoccupied, its plan is sent automatically to the broker via
PC.

(3) Response data and customer management functions
HOME’S

SUUMO

at home AD PARKREINS
Inquiry
Reply

Centrally manages data on inquiries made to a portal site. Equipped with inquiry history search
and auto-reply functions, Renter’s Net is capable of enhancing customer satisfaction levels
through immediate action to meet user needs.

49
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.

IR Information Contact Details
NEXT Co., Ltd.
Business Planning Dept.
Corporate Communications Group
Contact

Phone +81-3-5783-3603 (weekdays 10:00 – 18:00)
Fax+81-3-5783-3737
E-mailir@next-group.jp
Company website http://www.next
http://www.next-group.jp/
group.jp/ (Japanese)(Mobile website)

http://www.next-group.jp/m/ (Japanese)NEXT IRIR News

SearchIn order to provide information to our stakeholders promptly
and to help to better familiarize themselves with NEXT, we
distribute “IR News” each time we update information on ourcompany website involving monthly data and otherinformation releases.
To register, please use the following registration form.
[Registration for]http://www.next-group.jp/ir/magazine/index.html

50
Copyright (c) 2011 NEXT Co., Ltd. All Rights Reserved.