#1ぐるなび GURUNAVI INVESTOR PRESENTATION Financial Results for the Fiscal Year ended March 31, 2020 Gurunavi, Inc. (Stock Code: 2440) 16 849 Sustain and promote Japan's vibrant food culture#2Introduction We would first like to extend our deepest sympathies to all those affected by COVID-19 and express our deepest gratitude to all medical staff and others working on the front lines during this difficult time. Restaurants, our main customers, are currently in a very difficult and uncertain situation, facing significant declines in sales, among other issues. Since the end of February, all Gurunavi employees have been working from home to prevent the spread of COVID-19. Through our human support structure, we have continued to communicate with member restaurants via telephone and other means, providing information and listening closely to their feedback. Gurunavi, who believes that every restaurant contributes to Japan's rich food culture will work tirelessly to support them during this time so that as many restaurants as possible will continue to be able to operate, and once the COVID-19 pandemic subsides, will be focused on helping to stimulate demand in dining out while raising management capabilities at restaurants. We hope that the situation will be resolved as soon as possible and wish you and your loved ones good health. GURUNAVI Note: Please refer to page 8 onwards for details on the impact of the spread of COVID-19. 2#3FY2019 Financial Highlights Earnings increased year on year due to company-wide cost reduction efforts to strengthen profitability Meanwhile, sales in March were lower than expected due to the spread of COVID-19 Net sales Operating income Operating income on net sales JPY 30,927 million (5.5) % YoY JPY 1,821 million 49.8 % YoY 5.9 % 2.2 pp YoY Net income attributable to owners of parent JPY 949 million 63.2 % YoY Basic earnings per share (EPS) Number of all paying member restaurants (Including member restaurants with other fee type contract) Number of basic member restaurants with annual fixed fee Number of Gurunavi members GURUNAVI JPY 20.26 63.1 % YoY 59,173 (0.8) % YoY (At the end of March 2020) 55,505 (At the end of March 2020) (3.4) % YoY 18.85 million (As of April 1, 2020) 9.7 % YoY 3#4Consolidated income statement Net sales Cost of sales Gross profit SG&A expenses Operating income Ordinary income (JPY million) Net income before income taxes Net income attributable to owners of parent GURUNAVI FY2018 Ratio to sales FY2019 Ratio to sales YOY Change 32,728 100.0% 30,927 100.0% (5.5)% 10,645 32.5% 10,136 32.8% (4.8)% 22,083 67.5% 20,790 67.2% (5.9)% 20,867 63.8% 18,968 61.3% (9.1)% 1,216 3.7% 1,821 5.9% 49.8% 1,289 3.9% 1,894 6.1% 46.9% 1,267 3.9% 1,649 5.3% 30.2% 581 1.8% 949 3.1% 63.2% 4#5Consolidated sales breakdown (JPY million) FY2018 FY2019 YOY 32,728 30,927 (5.5)% Net sales Restaurant promotion services 29,490 28,406 (3.7)% Cumulative retained services Spot services Promotions 25,881 23,909 (7.6)% 3,609 4,496 24.6% 956 792 (17.2)% Related businesses 2,282 1,729 (24.2)% Cumulative retained services Despite a low level of contract reductions/cancellations until February as a result of measures to expand the use of online reservations (enhancing customer referral capability) and successful proposals for business support products, contract reductions/cancellations increased again in March due to the spread of COVID-19 Spot services Online reservation commission fees continued to grow, but declined from late February due to the spread of COVID-19 Related businesses Transfer of "Let's Enjoy Tokyo" business in September and business regarding food delivery service for corporations in January (JPY million) 10,000 631 9,000 515 516 266 635 152 8,000 195 403 634 1,198 534 461 600 Related businesses 604 710 861 513 144 322 314 451 433 200 382 7,000 751 691 664 1,166 118 179 999 1,511 293 967 1,021 995 6,000 Promotions 5,000 4,000 7,518 7,346 7,443 7,225 ■Spot services 6,778 3,000 6,417 6,385 6,300 6,014 5,978 6,093 5,823 2,000 1,000 ■Cumulative retained services 0 Q1 Q2 Q3 Q4 Q1 Q2 20 Q3 Q4 3 00 Q1 Q2 20 FY2017 FY2018 Q3 Q4 FY2019 == GURUNAVI 5#6Consolidated cost breakdown (JPY million) FY2018 FY2019 YOY Total cost Cost of sales SG&A Personnel expenses Rent expenses Business consignment expenses Advertising and promotion expenses 2,400 Other 4,403 3,482 (20.9)% 31,512 29,105 (7.6)% 10,645 10,136 (4.8)% 20,867 18,968 (9.1)% 9,916 8,906 (10.2)% 2,042 1,976 (3.2)% 2,103 1,315 (37.5)% 3,287 36.9% Cost of sales As a result of focusing resources on restaurant support business and improving business efficiency, personnel-related costs and development costs reduced. SG&A • • Personnel expenses/Business consignment expenses As a result of focusing resources on restaurant support business and improving business efficiency, recruitment activities were reviewed and in-house production progressed, resulting in a reduction in personnel-related costs Advertising and promotion expenses Expenses for promoting online reservation use increased Expenses related to points program increased due to the increase in the number of online reservations (JPY million) 10,000 9,000 Cost of sales 8,000 7,000 2,682 2,786 2,805 2,252 2,385 3,019 6,000 2,420 2,434 2,684 2,590 2,464 2,397 Other Advertising and promotion expenses expenses 5,000 474 1,108 654 367 835 460 410 787 620 4,000 1,103 1,304 1,085 974 1,166 1,267 981 1,208 695 885 ■Business consignment 946 843 565 528 3,000 544 602 550 542 536 801 907 929 expenses 473 414 412 402 403 548 512 494 519 274 516 493 481 298 328 501 ■Rent expenses 500 2,000 2,582 2,557 2,474 2,472 2,528 2,500 2,509 2,378 2,415 1,000 2,292 2,167 2,031 Personnel expenses 0 Q1 Q2 Q3 Q4 Q1 Q2 22 Q3 Q4 Q1 Q2 Q3 Q4 FY2017 FY2018 FY2019 GURUNAVI CO 6#7Consolidated balance sheets (JPY million) As of Mar. 31, 2019 As of Mar. 31, 2020 Change As of Mar. 31, (JPY million) 2019 As of Mar. 31, 2020 Change Total current assets 14,603 18,002 3,398 Total current liabilities 4,779 4,449 (329) Cash and deposits 7,630 Accounts payable- 11,653 4,022 2,416 2,154 (262) other Notes and accounts 4,536 4,172 (363) Income taxes payable 168 505 336 receivable-trade Accounts receivable- 1,636 1,511 (124) Provision for bonuses 709 587 (122) other Allowance for doubtful Provision for point (298) (205) 93 328 209 (119) accounts card certificates Other 1,099 871 (228) Other 1,155 993 (162) Total non-current 9,194 5,977 assets (3,216) Total non-current liabilities 314 259 (55) Property, plant and 1,163 844 (318) Total liabilities 5,093 4,709 (384) equipment Intangible assets 3,950 1,823 (2,126) Total net assets 18,704 19,270 566 Investments and 4,080 3,309 other assets (771) Equity 18,662 19,211 548 Total liabilities and Total assets 23,797 23,979 181 23,797 23,979 181 net assets GURUNAVI 7#8Impact of the spread of COVID-19 Status of member restaurants 25% or more of member restaurants have suspended operations due to staying home and reduced hours requests from local governments. Sales have significantly decreased even at restaurants that are still operating. Business status of member restaurants Sales of member restaurants (March) Closed/planning to close (YoY sales comparison) 0.5% Increased 3.8% No change 6.9% Operations suspended / planning to suspend operations 25.7% Continued operating 73.8% Data gathered from interviews conducted March 30 to April 24 (n=8,044) GURUNAVI Decreased 89.3% (Decreased sales) -10%:1.3% -5%: 1.0% -15%: 3.0% -20%: 8.8% -25%: 3.8% More than 50%: 53.9% -30%:14.5% -40%:13.8% Web survey of member restaurants from April 2 to April 10 (n=447) 8#9Impact of the spread of COVID-19 Impact on business performance (1) Our human support structure conducted a quick hearing on the business and sales status of member restaurants. Appropriate measures were taken (suspension, reductions, etc.) according to their conditions. Changes in number of paying member restaurants 56,067 restaurants 55,505 restaurants More than 1,500 net decrease on April Dec. Jun. GURUNAVI Feb. Mar. Apr. Sales of cumulative retained services Compared to December: Approx. 88% Compared to previous year: Approx. 87% Dec. Jun. Feb. Mar. Apr. Implement emergency response Work on support measures for member restaurants to prevent closures and withdrawals Preparations for media improvements etc. are promoted in order to recover quickly after the situation 9#10Impact of the spread of COVID-19 Impact on business performance (2) Online reservation declined from late February. Online reservations per month 350 ■FY2017 FY2018 ■FY2019 300 (April 2017 100) = 250 200 150 100 50 50 135% YoY online reservations 68% 6% 0 Apr. May Jun. Q1 Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Dec. Jun. Feb. Mar. Apr. Q2 Q3 Q4 GURUNAVI 10#11Impact of the spread of COVID-19 Measures for supporting member restaurants (1) Continuing communications with restaurants by telephone and other means even after transition to remote work. Prompt distribution of information on subsidies and support systems provided for restaurants by the government and examples of measures taken by other restaurants. 1 Distribution of video lectures by Gurunavi Academy Apr 16: Began distributing 60 video seminars on the topic of what restaurants can or should do now Apr 28: Started the public release of easy-to-understand videos, produced under the supervision of a registered management consultant for SMEs, explaining the system for subsidies and measures relating to financing, maintaining employment, capital investment and expansion of sales channels 2 Gather and share information using a human support structure Gather information and hold in-house study sessions on support systems and subsidies available to restaurants Collect and share sales ideas from member restaurants nationwide every day 中小規模の飲食店様向け 新型コロナウイルス影響拡大! 飲食店経営戦略セミナー 新型コロナウイルス対策支援制度活用セミナー ~資金繰り編~ 1_現在の外食の状況について GURUNAVI 株式会社ぐるなび 2020年4月28日 Provide necessary information quickly to restaurants using telephone etc. 11#12Impact of the spread of COVID-19 Measures for supporting member restaurants (2) Support flexible and speedy information dissemination regarding fluid business conditions such as takeout/takeaways correspondence and changes in business hours. 1 Strengthen dissemination of takeout /takeaways information • Strengthen guidance from Gurunavi top page and apps to restaurant pages Enhancement of takeout/takeaways information on restaurant pages Opened "Takeout/takeaways information site for restaurants listed in Michelin Guide" • Support registration of takeout/takeaways information (menus, etc.) ぐるなび 東京 ⑩ エリア名 最近見たお店 20 お店の味を自宅でも楽しめる! テイクアウト ができるお店 R POINT 楽天ポイント貯まる! 全42,000以上!/ ぐるなび でも楽しめる! 検索する テイクアウト ができるお店 コロナウイルスおよび 心よりお見舞い申し上げます。 35 74977 できる介します。 お店の一覧はこち B ★ a 2 Support information dissemination by media update agency service Quickly reflect changes in business hours, etc. on various media Gurunavi's restaurant webpage Official webpage Google My Business Other media 3 Propose utilization of "restaurant email" service Promote information dissemination on takeout/takeaways correspondence and changes in business hours to regular customers/ Also supports composing and sending emails to regular customers Restaurant email service: Mail delivery function to restaurant member customers who have registered as a member of the restaurant during the online reservation process or when visiting the restaurant page GURUNAVI 12#13FY2020 Consolidated forecasts Currently undecided Since it is difficult to calculate a rational business outlook based on the impact of the spread of COVID-19, the consolidated forecasts for the fiscal year ending March 2021 are currently undecided. The forecasts will be promptly disclosed when they become available. GURUNAVI 13#14Future initiatives Begin reviewing costs Begin reviewing company-wide costs to prepare for prolonging impact of COVID-19, and investment of resources in revitalization of post COVID-19 restaurant market GURUNAVI Focus on businesses and services that are directly linked to restaurant support business while maintaining awareness of cost efficiency Review the timing of advertisement related to online reservations Event cancellations, etc. ● In growth investment areas such as new businesses, review investment costs and timing, and prepare for full-scale operations post COVID-19 ✓ Temporary suspension of new hires, etc. • Improve company-wide operations, further promote efficiency The liquidity at the end of March 2020 was the cash balance of 11.6 billion yen and the committed credit line of 6 billion yen from banks 14#15Future initiatives Promote revitalization of restaurant market post COVID-19 and prepare for Gurunavi regrowth Begin examining measures after COVID-19 settles down in cooperation with governments and tied-up companies, to rapidly stimulate dining-out demand and support reconstruction of restaurant industry 1 Recover customer referral ability Prepare to stimulate demand for dining out and begin expanding customer referrals to member restaurants post COVID-19 Regularly improve website UI & UX design Build initiatives to expand seat openings (instant reservations and points system) in high demand Develop service to enhance navigation for Rakuten members + 2 Expand management and business support Prepare to expand support that contributes to higher operational efficiency and management power of restaurants that have overcome difficult situations Further expand business support services centered on support shift to ICT in restaurant operations and business agencies Develop new management support services for restaurant development, human resources, ingredients, etc. 3 Increase member restaurants Build initiatives to support improvement of management power of a wide range of restaurants regardless of business type Review membership plan and fee system Reform internal system to actualize above point Expand sales areas to accelerate new acquisitions Start developing services and businesses aimed at acquiring new revenue sources other than restaurants GURUNAVI 15#16Initiatives to recover customer referrals Full redesign of Gurunavi's homepage on March 31, 2020 Seamless restaurant search implemented with high level of user satisfaction, deters user withdrawal during search stage, and increases repeat website users User evaluations of previous homepage: ✓ Difficult to understand search ✓ 1 2 . . No search capability on phone app's main page Excessive search process Complicated information made restaurant selection difficult Redesigned features Smooth search navigation Simple search capability with quick view function Strengthen the appeal of user benefits Display easy-to-understand information on Rakuten point system Personalization ぐるなび R 予約で POINT 楽天ポイント 人数 × 100 貯まる! 1 J 東京 ② エリア 駅名 ジャンル 23 トラットリア つろぎの なび 検索する ぐるなび ネット予約で 予約履歴 ぐるな R 楽天ポイント HAR POINT.22 人数 × 100円税 R 東京 POINT 楽天ポイント貯まる! 全国42,000店以上!/ ◎ エリア 岡駅名 ☉ 現在地 な 対象を見る ジャンル 新宿駅 ランチ 個 最近見たお店 人気条件 こだわり 3 Display restaurant recommendations likely to suit user interests 個室 食人放通 飲み放題 宴会や女子、デートにも周りを気にせず会話からい つ 4 Popular search suggestions Farok 24時間営業 刻まで営業 OK 大人で会 女子会におすすめ デートに使える デート 日におすすめ Provide user choices when search needs are unclear ペット テイクアウト GURUNAVI 検索する 中華料理ぐるな び苑 トラットリア るなび くつろぎの個室 和ダイニン･･･ 楽 股有 R 楽天ポイント貯まる! POINT 全国42,000店以上/ 地酒と味紀行 ぐ るなび赤坂見 中華料理ぐるな び松町・大 火屋本舗ぐる なび 五反田店 2 漕ぐ 16#17Shareholder returns Dividend per share Year-end dividend for FY2019 will be 4 yen per share as previously announced Dividend forecasts for FY2020 are currently undecided Interim Year-end Full-year Payout ratio FY2019 JPY 4 JPY 4 JPY 8 39.5% FY2020 (forecast) Undecided GURUNAVI 17#18GOURMET NAVIGATOR Gurunavi will continue evolving to create a gourmet lifestyle for the 21st century.#19GURUNAVI Reference materials 19#20Progress of measures to expand use of online reservations (Reference) Restaurants that award reservation points (Restaurants) 30,000 20,000 10,000 0 Q1 Q2 Q3 33 FY2018 GURUNAVI Approximately 32,000 restaurants Number of ID tie-up (Accumulation) (million people) 3.0 2.0 10 1.0 ■ID tie-up by new Gurunavi members ID tie-up by existing Gurunavi members Approximately 2.5 million people 0.0 33 Q3 == Q4 Q3 Q4 Q1 Q2 33 Q3 FY2018 FY2019 Q4 Q1 Q2 FY2019 Q4 20 20#21Progress of measures to expand use of online reservations (Reference) Gurunavi ledger (reservation and customer management system) contacts Approximately 5,700 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. FY2019 FY2017 FY2018 GURUNAVI 21 24#22Number of member restaurants FY2019 Q4 Number of all paying member restaurants *Including member restaurants with other fee type contract Number of basic member restaurants with annual fixed fee 59,173 55,505 at the end of March 2020 down by 487 from the end of March 2019 at the end of March 2020 down by 1,960 from the end of March 2019 ■Basic member restaurants with annual fixed fee Member restaurants with other fee type contract (Restaurants) 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 Q2 Q3 Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 Q2Q3Q4Q1Q2Q3Q4Q1Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 GURUNAVI 22 22#23User reach Unique user per month : 56.00 million In December 2019; 61.00 million users in December 2018 ✓ Decreased year-on-year, affected by closing and transfer of related sites due to reorganization of businesses Number of Gurunavi members : 18.85 million As of April 1, 2020; 17.18 million members as of April 1, 2019 Gurunavi members (Million people) 19 18 17 16 15 14 13 12 11 09876543210 5.34 GURUNAVI 55 0 CO 6 10.33 10.61 10.92 11.33 11.80 12.09 12.38 12.67 12.97 13.23 13.46 13.73 13.97 14.20 14.42 14.65 14.89 15.12 15.36 15.79 15.86 16.05 16.25 16.77 17.18 17.57 17.96 18.50 18.85 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 FY2007 FY2008 FY2009 FY2011 FY2012 FY2013 FY2010 *Unique users per month: Based on browser count FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 *Gurunavi member: An individual who has registered for membership at Gurunavi 23 23#24Quarterly sales data (consolidated) FY2016 FY2017 FY2018 FY2019 Net sales (Unit: JPY million) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cumulative retained services a 7,601 7,674 7,880 7,795 7,518 7,346 7,443 7,225 6,778 6,417 6,385 6,300 6,014 5,978 6,093 5,823 Spot services b 487 596 813 741 604 710 1,198 861 751 691 1,166 999 967 1,021 1,511 995 C= Restaurant promotion services 8,088 8,271 8,693 8,536 8,123 8,056 8,641 8,087 7,530 7,108 7,552 7,299 6,982 6,999 7,605 6,819 a+b. Promotions d 155 189 262 399 152 195 266 403 144 174 322 314 118 179 200 293 e= Core businesses total 8,243 8,460 8,956 8,936 8,276 8,252 8,908 8,490 7,674 7,282 c+d 7,874 7,614 7,100 7,178 7,805 7,113 Related businesses f 520 508 676 676 515 516 631 635 534 513 634 600 451 433 461 382 Total g= e+f 8,763 8,968 9,633 9,613 8,791 8,769 9,539 9,126 8,209 7,795 8,509 8,214 7,551 7,611 8,267 7,495 FY2016 FY2017 FY2018 FY2019 (Unit: JPY) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cumulative retained services h *1 43,990 43,420 43,625 42,700 41,202 40,352 40,791 39,755 37,791 36,191 36,279 36,185 35,181 35,357 36,182 34,797 revenue per restaurant (ARPU) Restaurant promotion services revenue per restaurant(ARPU) 1 i*2 44,292 43,772 46,718 43,667 40,933 38,911 41,493 40,430 39,227 39,557 42,961 38,449 Restaurant promotion services revenue per restaurant(ARPU) 2 j*3 46,811 46,793 48,126 46,763 44,515 44,253 47,357 44,495 41,982 40,091 42,902 41,927 40,842 41,396 45,158 40,747 *1) Sales of cumulative retained services devided by the average of number of basic member restaurants with annual fixed fee at previous and current quarter-end h=2/3*a/(It-1+It) *2) Sum of sales of cumulative retained services and those of spot services devided by the average of number of all paying member restaurants at previous and current quarter-end i=2/3*c/(kt-1+kt) *3) Sum of sales of cumulative retained services and those of spot services devided by the average of number of basic member restaurants with annual fixed fee at previous and current quarter-end j-2/3*c/(It-1+It) FY2016 FY2017 FY2018 FY2019 Number of member restaurants (Unit: restaurants) All paying member restaurants Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 k= 1+m 58,226 59,612 60,816 60,886 61,383 61,328 61,986 61,482 61,157 60,629 60,712 59,660 59,007 58,951 59,067 59,173 Basic member restaurants 58,226 59,612 60,816 60,886 60,770 60,606 61,045 60,123 59,452 58,747 58,608 57,465 56,509 56,210 56,067 55,505 with annual fixed fee Paying member restaurants m 613 722 941 1,359 1,705 1,882 2,104 2,195 2,498 2,741 3,000 3,668 with other fee type contract Non-paying member restaurants n 81,529 83,182 82,466 87,019 86,536 86,679 87,665 86,607 88,078 89,927 89,584 91,405 90,345 81,586 75,763 73,978 GURUNAVI 24 24#25User overview Users by age group 60 and above 9.4% Unknown Under 20 4.8% 0.4% GURUNAVI 50's 17.5% 40's 27.7% 20's 12.9% User composition by gender 30's 27.3% Women 46.6% Men 53.4% Source: Gurunavi member data (In March 2020) 25#26Regional expansion and member restaurants 21 sales offices that provide services to local businesses across the country Head Office Kanazawa Sales Office Percentage of member restaurants(paid) by region Shiokoku 1.3% Chugoku 3.1% Hokuriku 2.9% Okinawa 1.5% Hokkaido Sales Office Osaka Sales Office Kyoto Sales Office Sendai Sales Office Ibaraki Sales Office Tochigi Sales Office Saitama Sales Office Chiba Sales Office Yokohama Sales Office Shizuoka Sales Office Nagoya Sales Office Niigata Sales Office Kobe Sales Office Okayama Sales Office Hiroshima Sales Office Ehime Sales Office Fukuoka Sales Office Kagoshima Sales Office Okinawa Sales Office Touhoku 2.8% Hokkaido 2.6% Kyushu 5.5% Chubu 8.8% Kanto 50.6% Kansai 20.9% Percentage of member restaurants (paid) by restaurant type Other cuisine 6.7% GURUNAVI Cafes / Dessert Spots 2.0% Chinese 3.5% Asian BBQ / Teppanyaki 9.1% Bars/Gastropubs 4.3% Other Western 2.7% Italian French 9.1% Japanese 25.2% Izakaya (Japanese Pub) 37.5% * In March 2020 26#27Sales and costs & expenses Sales Costs & Expenses (Million yen) (Million yen) 40,000 ■Related businesses ■ Promotions 40,000 Cost of sales Advertising and promotion expenses 2,381 35,000 2,298 ■Spot services ■Cumulative retained services 30,000 35,000 Other expenses 1,007 2,214 1,018 Business consignment expenses 989 2,638 2,761 3,374 2,282 ■Rent expenses 2,529 956 1,729 30,000 2,786 750 792 Personnel expenses 1,847 3,609 924 2,323 1,698 4,496 25,000 25,000 1,298 921 1,670 1,772 1,529 1,062 1,076 1,138 8,832 10,142 10,645 8,626 10,136 8,683 7,817 6,114 20,000 20,000 2,773 2,697 5,191 2,400 5,096 2,363 2,458 3,037 3,287 2,718 4,575 4,549 4,403 30,951 2,272 15,000 29,534 15,000 2,150 3,989 28,883 4,185 27,277 3,482 25,881 4,485 4,191 25,109 2,658 2,240 2,103 4,242 23,909 4,003 2,331 22,490 1,315 2,169 10,000 21,091 20,431 10,000 1,904 1,565 1,766 2,042 1,879 1,366 1,976 1,471 1,173 1,415 1,106 1,252 1,116 1,133 5,000 5,000 9,510 9,833 10,086 9,916 7,438 7,833 8,313 8,867 8,906 7,190 0 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 GURUNAVI FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 27#28Historical data (consolidated) (Unit: JPY million) FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Consolidated business results Net sales 25,238 24,302 27,265 30,518 32,636 34,617 36,979 36,226 32,728 30,927 Operating income Ordinary income 3,369 3,312 3,116 4,147 5,099 6,429 6,740 4,742 1,216 1,821 3,406 3,375 3,153 4,167 5,127 6,492 6,813 4,809 1,289 1,894 Net income 1,813 1,909 1,959 2,420 3,279 4,367 4,799 3,192 581 949 Assets Liabilities Net assets Total assets 19,653 16,951 19,103 22,071 23,665 27,322 23,917 25,457 23,797 23,979 Cash and deposits 10,398 7,548 7,399 9,448 10,492 13,131 7,922 8,000 7,630 11,653 Liabilities 8,519 4,381 5,005 5,926 6,201 7,026 5,878 6,270 5,093 4,709 Net assets 11,133 12,569 14,098 16,145 17,464 20,296 18,038 19,186 18,704 19,270 Equity 11,133 12,555 14,042 16,099 17,427 20,266 18,013 19,166 18,662 19,211 Per share data Earnings per share *1 35.76 39.12 40.15 49.56 67.26 90.19 102.25 68.27 12.42 20.26 Dividends per share(JPY) *1 10 10 10 15 28 38 42 44 8 8 Other Operating margin(%) Return on equity(%) 13.4 13.6 11.4 13.6 15.6 18.6 18.2 13.1 34 3.7 5.9 16.1 16.1 14.7 16.1 19.6 23.2 25.1 17.2 3.1 5.0 Return on assets(%) Payout ratio (%) Shareholders' equity ratio (%) 10.4 10.4 10.9 11.8 14.3 17.1 18.7 12.9 2.4 4.0 28.0 25.6 24.9 30.3 41.6 42.1 41.1 64.5 64.4 39.5 56.7 74.1 73.5 72.9 73.6 74.2 75.3 75.3 78.4 80.1 Number of shares of treasury stock Number of member restaurants (paid) 15,854 1,585,400 1,585,400 1,503,649 266,059 216,459 1,924,559 1,892,159 1,839,162 1,806,562 48,129 48,893 50,310 52,235 53,263 56,967 60,886 60,123 55,505 *1:Gurunavi implemented a 100-to-1 share split on April 1, 2011 and a 2-to-1 split on April 1, 2014. Calculated on the assumption that these share split were conducted at the beginning of FY2010 (April 1, 2010). 57,465 GURUNAVI 28#29Human support structure A partner who works with restaurant managers with the aim of expanding operations over the long-term Providing advice on advertising and promotion and other issues facing member restaurants Member restaurant sales staff Paying regular visits to member restaurants to answer questions and provide detailed support Visiting staff Providing advice to member restaurants in difficulty Call center staff have specific skills related to the restaurant industry Call center Sharing success stories and know-how to restaurant owners through seminars and video distribution Gurunavi Academy GURUNAVI 29 29#30Business Environment Number of restaurants 490 thousand outlets in 2016 (peaked at 650 thousand outlets in 1986) *Sources: 1986 Business Census; 2014 Economic Census for Business Activity *Institutional meals, bars, and night clubs are excluded. Market size of the Japanese restaurant industry (Trillion yen) 16 Market size of online reservation in restaurant (Trillion yen) 0.7 14 12 10 8 642 0 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 *Source: Food Industry Research Institute; Size of restaurant market *Institutional meals, bars, and night clubs are excluded. Increased for seven consecutive years due to an increase in foreign visitors to Japan and a rise in corporate entertainment spending GURUNAVI 0.6 0.5 0.4 0.3 0.2 0.1 اس 0 2014 2015 2016 2017 2018 *The Ministry of Economy, Trade and Industry (METI); FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey) 41.6% increase year on year in 2018 30 30#31Company profile as of the end of March 2020 Name Establishment Gurunavi, Inc. (stock code: 2440) October 2, 1989 (incorporated) February 29, 2000 (Gurunavi, Inc. established) Head office 1-2-2, Yurakucho, Chiyoda-ku, Tokyo Capital Business description Directors Top 10 shareholders Total Number of shareholders Number of total personnel Consolidated subsidiaries 2,334 million yen (Number of shares issued: 48,675,100 shares) Web-based information provision relating to restaurants etc. using the platform of PC and smartphones etc. Provision of support service associated with the management of restaurants etc. and other related business Chairman and Director: Hisao Taki President and Representative Director: Akio Sugihara Outside Directors: Koichi Tsukihara (Independent Director), Hidehiko Sato (Independent Director), Hirohisa Fujiwara (Independent Director), Kazunori Takeda, Naho Kono Rakuten, Inc. 15.0%, Hisao Taki 12.7%, Japan Traffic Culture Association 4.0%, The Master Trust Bank of Japan, Ltd. (Trust account) 3.4%, Odakyu Electric Railway Co, Ltd. 2.4%, Tokyo Metro Co., Ltd. 2.1%, Japan Trustee Services Bank, Ltd. (Trust account) 2.0%, Mizuho Trust & Banking Co., Ltd. retirement benefit trust (Keikyu Corporation account) re-trust trustees, Trust & Custody Services Bank, Ltd. 1.9%, BNYM SA/NV FOR BNYM FOR BNYM GCM CLIENT ACCTS M ILM FE 1.9%, Hiroko Taki 1.8%, *The ratio of shareholding is calculated based on the total number of shares issued after deduction of treasury stock (1,806,562 shares). 11,935 Non-consolidated : 1,601 Consolidated : 1,841 Gurunavi Promotion Community, Inc. (100%), Gurunavi (Shanghai), Inc. (100%) Gurunavi Research Institute, Inc. (100%), Gurunavi Support Associe, Inc. (100%) GURUNAVI 31#32ぐるなび GURUNAVI Company information https://corporate.gnavi.co.jp/en/ Gurunavi IR contact information https://ssl.gnavi.co.jp/company/english/contact/ Disclaimer This document is not intended for offering investments in the securities issued by the Company. The document has been prepared based on data available at the end of March 2020. The views and forecasts included in the document reflect judgments of the Company when the document was prepared. The Company will not guarantee or ensure the accuracy and completeness of the information, which may be changed without prior notice.