Shareholder Letter

I would like to begin by expressing my deepest condolences to those affected by the January 2024 earthquake in Japan, especially to the families who lost their loved ones. Our thoughts are with everyone seeking refuge, and we hope for a swift recovery for the affected regions. We are collaborating with local communities to provide necessary support and address the immediate needs of survivors.
In December of last year, I succeeded President Inoue as the second president of the company, which marked the first change in presidents for LIFULL. My journey with the company (then known as NEXT Co., Ltd.) began after I graduated from university in 2006. Initially, I worked as a sales representative for LIFULL HOME'S (formerly HOME'S). Later, I led sales for re-sale properties and was appointed as a Managing Officer in 2015. In 2019, I began overseeing the LIFULL HOME'S Business Department and, in 2020, I had the honor of being named to the Board of Directors. Throughout these various roles, however, one thing has remained constant: I have maintained consistent dedication to the expansion of LIFULL and LIFULL HOME'S.

LIFULL HOME'S is, now, no longer just a medium for searching for a new home. We provide people with the ability to do everything related to real estate transactions from viewing a property to signing the final contract - all online. We have launched our personal consultation service, Sumai No Madoguchi, as well as several services which utilize AI technology to make ourselves a leader in the Japanese real estate field.

Outside of Japan, we acquired Trovit in 2014 and Mitula in 2019. By combining both of these services under LIFULL CONNECT, we are able to serve an larger audience and network of clients around the world while contributing to the consolidated business results of the LIFULL Group.

The LIFULL Group continued to grow over the years in relation to changes in society. However, the global pandemic caused people to rethink and postpone moving plans, and our continued growth was temporarily reversed.
In order to quickly navigate back to a growth trajectory, we revised our strategy to one of selective focus making growth investments in our core businesses and downsizing or selling other ancillary services. Consequently, we achieved increases in both revenue and profits for FY 2023/9 on a consolidated basis.
Moving forward, we continue to closely monitor the current situation while remaining committed to our strategic focus on returning LIFULL HOME'S to a growth trajectory and enhancing the profitability of our overseas businesses. Simultaneously, we are working to establish a third pillar for the Group by integrating real estate and financial services, which we believe is crucial for our future growth.

Since I assumed the presidency, Inoue has taken on the role of Chairperson of the LIFULL Group. At the same time, we also welcomed Mr. Shishido and Mr. Shimizu to the Board of Directors. Mr. Shishido brings extensive international business experience and previously served as a full-time auditor for the Group. Mr. Shimizu, on the other hand, has vast experience in the financial sector and was formerly an Outside Director for the Group. We are confident that their expertise will significantly enhance our management team.

As we make progress, we continue to uphold our Corporate Credo of 'Altruism', a principle we have maintained since our founding. Our goal is to realize our Corporate Philosophy: Creating a society where everyone can achieve comfort and happiness through continuous social innovation. We remain dedicated to addressing social issues and assisting people in leading authentic, sustainable lifestyles. That is to say, we are committed to contributing to a more sustainable society while enhancing our corporate value.

Sincerely,

January 2024 Representative Director and Managing Officer ITO Yuji