■ Good life <3796> long-term growth strategy

1. Overview of the long-term growth strategy

The company aims to have 5,000 corporate clients and an average customer price of 0.1 million yen (monthly) as a mid-term goal. This translates to an annual revenue of approximately 6 billion yen. To achieve this, the company plans to accelerate and promote its existing business strategy. The growth strategy emphasizes "expansion of the customer base," "strengthening of revenue capability," and "laying the groundwork for the future," aiming for the evolution of services and enhancing customer support systems for implementation assistance.

(1) Expansion of the customer base

Given the upward trend in the number of users, the improvement of business operational efficiency and cost-effectiveness has been proven, and efforts will continue to approach potential customers who are interested in the company's services. Acquiring enterprise customers through enriched implementation support services and converting free customers of "Good life Square" into paying customers are positioned as significant pillars for expanding the customer base.

(2) Strengthening of revenue capability

Customer price increases through one-stop provision of multi-products and expanding LTV (Customer Lifetime Value) through enhanced operational support service levels will be carried out. As the property service industry has a long service usage period, it comprises a customer segment with high LTV. The company's services are SaaS, allowing multiple services to be used in an integrated manner, taking advantage of its strong overall optimization capabilities to enhance customer satisfaction.

(3) Laying the groundwork for the future

As a growth strategy, the evolution into a property service platform aims to establish sustainable and stable business growth in the medium to long term, promoting high growth through market specialization × saas × maximization of centralized management. Additionally, by providing high-value-added services, such as combining a rich array of services and solutions, differentiation from competitors will be achieved.

2. Future Strategy

In addition to its medium to long-term strategy, the company has a strategic vision for the future, which includes 1) a sustainable customer acquisition cycle, 2) a product vision, and 3) a platform where all data related to a-reit etf converges.

(1) Sustainable Customer Acquisition Cycle

From approaching prospective customers through a process of proposal, order, implementation support, operation, and resistance, additional services will be offered to existing service-utilizing customers, promoting the expansion of the overall service. Customers already using the company's services have improved operational efficiency and high customer satisfaction, leading to a tendency for increased customer spending by purchasing additional services. This not only strengthens the trust relationship with existing customers but also increases the potential for expanding the business foundation to increase revenue. Regarding revenue, an expansion of orders through upselling and cross-selling to existing customers is anticipated while new customer revenue from newly commenced operations will be added. This will lead to an increase in the number of customers with high LTV, centered around the property service sector. By acquiring customers with high LTV, it is intended to offset costs such as service development and generate significant profits.

(2) Product Vision

In the future, the company aims to build a system where each tool can connect in real time without human intervention through saas, pursuing further optimization in users' businesses through integration with third-party systems such as accounting systems, electronic contracts, digital payments, and web conferencing. In addition, there will be expansions into new functions and new areas, including compliance with the invoice system, facility and repair management functions, management analysis functions, and finance areas, covering all business areas in real estate.

In the first quarter of the fiscal year ending March 2025, the amount handled by "Good Life Pay account transfer" surpassed 0.3 billion yen. This service was developed in collaboration with SMBC Finance Service Co., Ltd. (now Mitsui Sumitomo Card Co., Ltd.), allowing online completion of the account transfer registration for payments such as rent and parking fees. As a result, the fund recovery operations of property management companies have been digitized and become more efficient. The need for filling out and stamping conventional transfer request forms has been eliminated, reducing processing errors and the unnecessary work that arises from them. Consequently, rent collection has become rapid and efficient without extra effort. With the total amount of rent managed by the company's rental management system continuing to expand, the payment domain is likely to present significant revenue opportunities for the company.

(3) A platform where all data related to real estate is gathered.

Through saas, a platform has been built to accumulate all data related to real estate, becoming a marketplace where diverse commodities etf and services are traded based on this rich data, aiming to deliver the added value brought by technology to all players in the market, not just end-users and real estate companies.

3. Expansion of human capital.

In April 2023, the company established the "Basic Policy on Human Capital Expansion." This policy focuses on aiming for a mutually beneficial relationship between society and the company, and between the company and its employees, clarifying the company's task center and vision, and concretizing the organizational purpose and future vision it seeks to achieve. Additionally, it summarizes the values valued by the company and the behavioral guidelines individuals should aim for into six values (behavioral guidelines).

In this value, the company aims to set new standards, continually question established concepts while learning, and solidify experiences as explicit knowledge. By maintaining curiosity and enjoying the exploration of the unknown, the aim is to incorporate and expand new knowledge within the organization. Furthermore, while keeping an appropriate distance, it seeks to ensure that no one is left behind and that progress continues without stagnation, illuminating the path forward. Cherishing kindness and simplicity, becoming a trusted entity through clear communication and systems, promoting growth through chemical reactions with diverse individuals, accumulating trust to nurture history, and embracing and supporting challenges and failures are all highlighted as crucial for the inheritance and development of culture. Moreover, specific measures for creating an internal environment to promote "spontaneous value creation," "active dialogue through goal setting and achievement support," "manifestation of individual capabilities and pursuit of well-being," "respect for humanity," and excellent "talent acquisition" are provided.

At the company, authority is delegated to independent small teams for each product, promoting a productive development environment where product teams collaborate around an API platform. This approach emphasizes self-managed teams, adopting an agile framework based on Scrum. As a result, the company was recognized for its high development productivity in the improvement cycle of value delivery to users, winning an award in the "Findy Team + Award 2023" for excellent engineering organizations. These efforts have improved the developer experience, fully harnessed individual capabilities, and fostered an environment that enhances learning for the entire team, which directly contributes to the enrichment of human capital.

(Reported by FISCO guest analyst Hiroshi Nakayama)