#1ぐるなび GURUNAVI INVESTOR PRESENTATION Financial Results for the Fiscal Year ended March 31, 2023 Medium-term Business Policy FY2023-FY2025 Gurunavi, Inc. (Stock Code: 2440) wasm Food: Satisfying People and Creating Connections 1038#2At a glance FY2022 Performance Full-year Fourth quarter ✓ Losses narrowed YoY due to a review of the allocation of management resources by focusing on key measures ✓ Return to profitability as initially planned Progress of measures Online reservations Mobile ordering service ESG initiatives Environment Social Governance The number of Rakuten ID connected members exceeded 7.0 million ✓ In addition, reservation conversion rate improved due to UI improvements. As a result, the number of online reservations in Q4 exceeded the pre-pandemic level. The number of contracted companies exceeded plan Implemented Rakuten ID linkage and Rakuten Point awarding function to create synergy with online reservation Selected for NEDO Green Innovation Fund Project ✓ Dispatched our employees to 13 areas using Ministry of Internal Affairs and Communications' corporate personnel dispatch system (As of March 2023) ✓ Formulated new personnel system ✓ Established the Governance Committee as a voluntary advisory body to the Board of Directors GURUNAVI 2#3Financial Highlights Sales were lower than expected(12.8 billion yen) mainly due to the delay in establishing sales of new services, but steady progress in sowing the seeds for creating new revenue sources ✓ Decrease in total paying member restaurants due to the following two factors . Closed the delivery and take-out service and the Gurunavi Pay service as part of a review of management resource allocation © Due to the focus on sales activities targeting existing member restaurants, the number of contract cancellations remained low, but new acquisitions were weak (Promote sales activities with a good balance between new acquisitions and support for existing restaurants in FY2023) FY2021 FY2022 Net sales Operating loss Net loss attributable to owners of parent Number of total paying member restaurants (At the end of March 2023) Number of Rakuten ID connected members (At the end of March 2023) JPY 12,852 million JPY 12,296 million JPY (4,786) million JPY (1,724) million JPY (5,768) million 58,286 5.54 million JPY (2,286) million ↑ 42,909 7.07 million ↑ GURUNAVI 3#4Quarterly performance ✓ The amount of loss decreased with each quarter, and Q4 was profitable as initially planned. (JPY million) 2,953 GURUNAVI 3,980 Q1 (1,027) ■Net sales Total cost ■Operating profit / loss 3,494 2,911 3,528 3,091 (582) (437) Q2 Q3 3,339 3,016 Q4 322 4#5Consolidated income statement (JPY million) FY2021 Ratio to sales FY2022 Ratio to sales YOY Change Net sales 12,852 100.0% 12,296 100.0% (4.3)% Cost of sales 5,759 44.8% 4,896 39.8% (15.0)% Gross profit SG&A expenses Operating loss Ordinary loss 7,092 55.2% 7,399 60.2% 4.3% 11,878 92.4% 9,123 74.2% (23.2)% (4,786) (1,724) (4,692) (1,664) I Net loss before income taxes (5,729) (2,269) Net loss attributable to owners of parent (5,768) (2,286) Recorded an impairment loss of 690 million yen in FY2022 (FY2021:1,140 million yen) GURUNAVI 5#6Consolidated sales breakdown (JPY million) FY2021 FY2022 YOY Net sales 12,852 12,296 (4.3)% Restaurant promotion services 9,991 8,982 (10.1)% Cumulative retained services 8,412 7,863 (6.5)% Spot services 1,579 1,118 (29.2)% Promotions 1,361 1,282 (5.8)% Related businesses 1,499 2,031 35.5% Cumulative retained services ✓ Decreased YoY due to lower base sales at the beginning of the period driven by impact of declaration of state of emergency and priority measures to prevent the spread of COVID-19 which were implemented intermittently in the previous period ✓ Recovery after bottoming out in April, increased YoY in the 2nd half (see p. 10 for monthly change) Spot services ✓ Increase in spot sales of sales promotion products, etc. In addition to a decrease in online reservation commission sales due to the impact of commission revision under the new membership plan launched in September 2021, decrease in delivery/takeout sales due to close of service in July 2022 Related businesses ✓ Recording earnings from commercial facilities in restaurant development business, one of our new businesses ✓ LIVE JAPAN sales increased due to a recovery in inbound demand (JPY million) 6,000 5,000 ■Related businesses 4,000 Promotions 354 3,000 235 360 548 681 493 218 459 208 429 461 440 260 225 369 681 317 347 391 ■Spot services 268 2,000 376 268 266 206 2,320 1,000 2,131 1,928 2,030 1,891 1,896 2,015 2,059 ■Cumulative retained services 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2021 FY2022 GURUNAVI CO 6#7Online reservations (1) Number of Rakuten ID connected members (Million people) Early achievement of 10 million people Conversion rate of online reservation (April 2018=100) FY2022 300 FY2018 (Before implemented UI improvement measures) 250 8 Over 7 million 200 10 9 ○ ∞ ∞ 165432 2.54 5.54 4.55 1 0.91 0 March March March March March 2019 2020 2021 2022 2023 Optimized costs related to new member acquisition by improving user targeting when distributing online reservation coupons GURUNAVI 150 100 50 0 Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Improvement combined with increasing number of Rakuten ID connected members, who are highly familiar with the idea of earning points through online reservations, and UI improvement. 7#832-0 100 0 Online reservations (2) Quarterly change in number of online reservations (FY2018 Q1 = 100) 500 ■ FY2018 ■ FY2019 400 ■ FY2020 300 ■ FY2021 ■ FY2022 200 Effects of the Go To Eat campaign, etc. The number of online reservations in Q4 exceeds the pre-pandemic level Q1 Q2 Q3 Monthly change in number of people per reservation (Dinner time reservation) (People) 6 5 4 Q4 Signs of full recovery from March when rules on mask-wearing were relaxed GURUNAVI Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. 2020 Implemented intermittently declaration of state of emergency and priority measures to prevent the spread of COVID-19 2021 Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Expect recovery in corporate/banquet demand following reclassification of COVID-19 as Class 5 disease June July Aug. Sep. 2022 Oct. Nov. Dec. Jan. Feb. Mar. 2023 8#9Online reservations (3) The number of reservations in March compared to pre-pandemic Number of online reservations Number of restaurants where online reservations are possible (2019 = 100) By restaurant type Other than Izakaya Izakaya (Japanese Pub) 2019 2023 By location* Suburb Residential area '19 Downtown Business District 2019 Number of online reservations per store By restaurant type 123 '19 123 23 '19 By location* '23 '19 123 2023 Izakaya (Japanese Pub) Other than Izakaya Downtown Suburb Business District Residential area The number of restaurants in the Izakaya and Downtown/Business District categories, which were particularly hard hit by the pandemic, has decreased 1 Promote proposals for recontract and active use of the online reservation system, based on the recovery of online reservations shown on the right Amid a recovering external environment, measures to boost online reservations have been successful, Izakaya (Japanese pub) and Downtown & Business District categories, which had been slow to recover, exceed the pre-pandemic level GURUNAVI * Aggregated based on member restaurants in Tokyo 9#10Restaurant promotion services (1) Monthly change in sales of Cumulative retained services (in Tokyo) State of emergency Pre-emergency measures GURUNAVI Aiming for further recovery through the optimization of sales and support structures and implementation of certain measures Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. FY2021 FY2022 Excluding sales of delivery/takeout service, Gurunavi Pay service and Gurunavi register service, which were closed during FY2022 10#11Restaurant promotion services (2) FY2023 Sales activity policy Established optimized sales and support structures tailored to characteristics of member restaurants and geographic areas Enhancing customer referral measures Promote online reservation usage Promoted posting of online reservations and use of external partnership-linked reservation services Trends in online reservations Enhance online reservation promotion campaign for users Used online reservation campaigns, which are proven to bring customers to restaurants, more effectively and efficiently Store size Area Promote efficient and flexible sales activities with a good balance between new acquisitions and support for existing restaurants Improve products and services Check the Sales promotional membership plan Adjustments to improve product appeal and investigation of new plans and product packages Improve products for inbound measures Improved products to support capture of rapidly recovering demand GURUNAVI 11#12Consolidated cost breakdown Total cost (JPY million) FY2021 FY2022 YOY 17,638 14,020 (20.5)% Cost of Sales ✓ Labor costs decreased due to a decrease in the number of employees with a natural attrition and restrictive new employment due to severe business performance caused by the pandemic and an increase in secondment to partner companies ✓ Reduced business consignment expenses due to focus on key services SG&A Cost of sales SG&A Personnel expenses Rent expenses Business consignment expenses Advertising and promotion expenses 730 Other 1,564 5,759 4,896 (15.0)% 11,878 9,123 (23.2)% 6,736 5,538 (17.8)% 1,300 1,017 (21.7)% 1,545 883 (42.9)% 419 (42.5)% 1,264 (19.2)% ✓ Personnel expenses ✓ Business consignment expenses Decreased for the same reason as cost of sales Reduced due to focus on key services ✓ Advertising and promotion expenses - Reduced advertising costs related to the promotion of online reservations through marketing that utilizes online reservation coupons - In addition, sales promotion expenses were reduced by focusing on key services (JPY million) 6,000 5,000 4,000 1,599 1,239 1,709 188 1,211 1,316 3,000 237 327 112 457 192 1,177 1,197 66 347 312 467 308 396 55 1,204 228 2,000 346 376 318 425 251 325 320 328 208 297 69 314 245 264 332 211 177 1,000 1,948 1,544 1,762 1,481 1,708 212 1,462 1,347 1,019 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2021 FY2022 GURUNAVI Cost of sales Advertising and promotion expenses Other expenses ■Business consignment expenses ■Rent expenses Personnel expenses 12#13Consolidated balance sheets ✓ Raised 2.5 billion yen by subordinated capital loan (2.2 billion yen) and issuing common stock (0.3 billion yen) through third-party allotment (JPY million) As of Mar. 31, 2022 As of Mar. 31, 2023 Change (JPY million) As of Mar. 31, 2022 As of Mar. 31, 2023 Change Total current assets 10,691 12,061 1,369 Total current liabilities 3,134 3,657 522 * Cash and deposits 6,962 * 8,266 1,303 Accounts payable- other* 1,302 2,031 729 Notes and accounts 2,661 * 2,871 210 Deposits received receivable-trade 1,040 920 (119) Accounts receivable- other 740 813 73 Income taxes payable 34 22 (11) Prepaid expenses 379 267 (112) Provision for bonuses 239 178 (60) Allowance for doubtful accounts (139) Provision for point (197) (58) 19 15 card certificates (4) Other 87 40 40 (47) Other 498 488 (10) Total non-current 1,415 939 assets (475) Total non-current liabilities 121 2,445 2,323 Property, plant and - Long-term borrowings equipment 2,200 2,200 Intangible assets Other 121 245 123 Investments and 1,415 939 other assets (475) Total liabilities 3,255 6,102 2,846 Total net assets 8,851 6,898 (1,953) Total assets Equity 12,107 13,001 893 Total liabilities and net assets 8,767 6,821 (1,946) 12,107 13,001 893 JPY 4 billion Total amount of commitment line contract as of March 31, 2023 (Outstanding borrowing balance ( * Recorded for cash and deposits and accounts payable- other and deposits received related to the operation of the contracted business from the Ministry of Agriculture, Forestry and Fisheries (Go To Eat campaign) (At the end of March 2022 / cash and deposits and deposits received 873 million yen each, At the end of March 2023 / cash and deposits: 1,607 million yen, accounts payable- other: 736 million yen, deposits received:870 million yen) GURUNAVI 13#14" Mobile ordering service. Gurunavi FineOrder" (1) TOPICS Contract expansion Enhanced functionality There are signs that we have acquired contracts replacing services offered by other companies due to high-quality functions and services we provide Implemented Rakuten ID linkage and Rakuten Point awarding function (see p.16) ✓ Enabled connection with order number displays installed in restaurants such as fast food and café Number of contracted companies Progressing smoothly Total number of restaurants owned by contracted companies over 8,500 3000 00044 companies GURUNAVI Apr. May Q1 Jun. Jul. Aug. Q2 Sep. Oct. Nov. Q3 Dec. Jan. Feb. Q4 Mar. 14#15Mobile ordering service "Gurunavi FineOrder" (2) Effective as a tool for responding to foreign visitors to Japan Successful case Not using Mobile ordering service How to order explanation Realize smooth customer service to foreign visitors to Japan by utilizing multilingual functions* 00 You can order in 3 steps! Order response time (1x order) Number of times ordered Total response time 0 sec +1 min 5 secs ☑ 4 times = 4 mins 20 secs Read the barcode with a camera Select your item Click "Submit order" and your order is completed! pretty easy Let us our staff know if you have any questions Using 100% reduction Mobile ordering service 92% reduction <3 FineŎrder Gurunavi FineOrder Usage Guide (English version) Users' voices How to order explanation Order response time (1x order) Number of times ordered Total response time 20 secs + 0 sec ☑ 4 times = 20 secs Romanian Female 20s If the menu is in English, I can order food, but ordering with my smartphone is definitely more convenient It's a great tool for visitors to Japan GURUNAVI * English, Traditional Chinese, Simplified Chinese, Korean 15#16Mobile ordering service "Gurunavi FineOrder" (3) Started cooperation with Rakuten service Adding functions "Gurunavi FineOrder" enables linking Rakuten IDs and awarding Rakuten Points <****FineŎrder R Х POINT Strengthen and expand the user base by promoting usage from both the Gurunavi site and physical stores Improve convenience and benefits for Rakuten ID-connected members Online reservations GURUNAVI Mobile ordering service ✓ Awarded Rakuten Points for payments made with credit cards in accordance with payment amount ✓ Made it possible for restaurants to set up their own bonus point campaigns in accordance with sales situation /seasonal events Encourage cross-use with online reservations Further promote service partnerships including the implementation of Rakuten Pay with the aim of providing services effective in attracting customers by driving new and repeat visits to restaurants by Rakuten members GURUNAVI 16#17FY2023 Full-year business forecast Although it would be possible to return to profitability by curbing investment exists, we implement upfront investments to build a future earnings base and achieve sustainable growth under the new Medium-term Business Policy Net sales Operating loss Ordinary loss (JPY million) Net loss attributable to owners of parent FY2022 (result) FY2023 (forecast) 12,296 13,700 (1,724) (700) (1,664) (750) (2,286) (770) Approx. 600 (Reference: Scale of investment costs in areas of upfront investment Approx. 900) Existing areas are expected to be profitable due to efficient operation of core businesses (existing restaurant sales promotion services and promotions) and steady sales growth in the store development business, which is forecast to become profitable. Strategically invest in upfront investment areas of transforming the Gurunavi website, marketing agent, mobile ordering services, and expanding DX services for restaurants Regarding purchasing support for restaurants, the EC-type service has been terminated from the standpoint of profitability. A new business model is being developed in collaboration with other companies For other services, eliminating deficits through further selection and concentration while clarifying criteria for continuation of services (Shareholder returns) Dividends on common shares will not be paid. It is our judgement that securing internal reserves for stable management is the most important issue. GURUNAVI 17#18New Medium-term Business Policy FY2023-FY2025 GURUNAVI 18#19Review of the previous policy (FY2020-FY2022) and our issues (1) (1) Regain trustworthiness by enhancing customer referral capability - Expand use of online reservations - Improve reservation conversion rate 350 300 250 200 FY2022 FY2018 (Before implemented UI improvement measures) Number of Rakuten ID connected members (Million people) 5.54 4.55 Number of restaurants where online reservations are possible (2019 100) 7.07 Suburb Residential area Other than Izakaya 150 100 50 0 Apr. May (April 2018=100) June July Aug. Sep. Oct. Nov. Jan. Dec. Feb. Mar. 2.54 Izakaya (Japanese Pub) Downtown Business District 0.91 March 2019 March 2020 March 2021 March 2022 March 2023 March 2019 March 2023 March 2019 March 2023 Number of online reservations in Q4 of FY2022 reached their highest ever for that quarter due to improved CVR and expansion of members (see p.8) (On the other hand, there is a lot of room for collaboration with Rakuten, and we are halfway to establishing a position in the Rakuten Ecosystem) Decreased due to the pandemic (Decline in power of media content) Issues Issues Secure and increase number of highly engaged users in consideration of the growing presence of Google and social media as restaurant search tools Expand restaurant information and seating inventory to attract consumers and meet their needs It is necessary to transform into a media that is resistant to changes in the business environment by maximizing consumer contact points and expanding content GURUNAVI 19#20Review of the previous policy (FY2020-FY2022) and our issues (2) (2) Regain trustworthiness by revising sales measures and methods Optimize support structure to facilitate proposals for a wide range of restaurants Process Formulate an "easy to chose, use, and continue using" membership plan for a variety of restaurants Improve effectiveness of sales promotion products and develop new products Ability to select the number of points to be awarded to online reservation users Roles Basic Inside sales Creating prospective client Additional product 30,000 yen / month Light Same as Field sales Business meeting Upselling proposals 10,000 yen / month on the left Start Customer success After-sales support 0 yen / month Online Reservation Coupon Mobile ordering service After transition to division of labor system in Apr. 2021, optimized in accordance with human resource allocation through secondment measures ✓ Launched new membership plan in Sep. 2021 Developed sales system for our products Promote efficiency in support operations Check and adjustment of membership plan Identify effectiveness in making marketing more efficient and future growth potential Issues GURUNAVI Further strengthening of product and support capabilities to help resolve issues faced by restaurants as described below (p.22) It is necessary to expand product lineup and improve proposal skills to meet restaurant needs beyond in-house development 20 20#21Current status of restaurant market three years from the start of the COVID-19 pandemic Two hindrances of restaurant management Worsening labor shortage Recruitment difficulties, Rising human resource costs Soaring ingredients costs and utility costs Sharp rise in costs due to the Ukraine situation and prolonged weak yen In preparation for other business stagnation risks, it is necessary to create more flexible and muscular stores Three changes in consumers Changes due to penetration of telework ✓ Decline in daily opportunities for dining out, such as on the way home from work ✓ On the other hand, there is greater clarity of purpose of dining out, such as when, with whom, and how they want to enjoy it Changes caused by requests stay-at-home and restrictions on activities ✓ Re-realize the value of experience of real interaction unique to dining out Trend of refraining from late-night dining out, such as at afterparties Changes in behavior related to restaurant searches Increase in dining out with prior reservations sparked by the Go To Eat campaign Increase in restaurant searches on services beyond specialist restaurant information sites, such as Google and social media GURUNAVI 21#22Restaurant management issues in post-corona era Improving productivity with limited human resources is an urgent task How to deliver value to more consumers? Efficient promotional activities Respond to increasingly diverse communications tools/reservation services How to raise profitability without lowering reception/service quality? Efficient store management Develop restaurants to be more convenient and pleasant to raise value of experiences Respond to sharp cost increases Reduce workload associated Maximize the effect of efficient with using/managing tools promotional activities + Increase efficiency of operations towards labor saving and enriching reception/interaction Raise gross profit by increasing number of items ordered + Preparing to receive tourists from overseas due to the rapid recovery in inbound demand In response to consumers' rising awareness of sustainability, reduce food loss, improve employee working environment, etc. Digitalization becoming even more necessary in reforming management as a whole rather than just adoption of IT in specific areas GURUNAVI 22 22#23New Medium-term Business Policy FY2023-FY2025 Purpose Food: Satisfying People and Creating Connections Vision 2025 Best partner for restaurant management DX While continuing the concept of "supporting management as a whole, not just in sales promotion areas" from previous medium-term policy, focus on two DX support: "promotional activities" and "store management", those connected directly to improving the productivity of restaurant. ✓ Proper response to mobile ordering service ✓ Existing services that contribute to DX support Accumulate various know-how and knowledge through agency services such as updating media Our unique support system for customer success activities that are the key to DX support GURUNAVI Promotional activities Human support Optimization of operations Digital utilization Enhancement 8 of initiatives Store management Digital platform for restaurant industry (Gurunavi PRO) Further enhance the "digital and human" abilities cultivated since our founding and update the value we provide to restaurants 23 23#24Overall view of service development Four focus services and key measures DX support for restaurants A Promotional activities Transform Gurunavi website Become the most convenient profitable online reservation media for Rakuten members Store management B C Marketing agent Mobile ordering service D Support more efficient operation of restaurants' overall promotional activities Towards a high added-value service including marketing functions, etc. Expand DX services for restaurants Develop CRM functions, management functions, etc. Realize customer referral support that is unaffected by online service trends Maximize value provided in HR support activities Establish second core service Unified DX support linking the three services on the left Create synergies through horizontal utilization of information assets concentrated through development of each service Key measures Raise efficiency in the restaurant support business and improve information gathering capability with digital tools Leverage the know-how and technology of partner companies Thoroughly utilize our business assets GURUNAVI 24 24#25Overview of focus services A Transform Gurunavi website B Marketing agent C Mobile ordering service Expand DX services D for restaurants Implement payment functions utilizing Rakuten ID, including payment using Rakuten Points Expand content and seating inventory utilizing information obtained from mobile ordering service and marketing agent work ✓ Strengthen collaboration with external services to expand information posted online Integrate support for web sales promotions reducing the burden on operations and management of various tools attracting more customers Trial full-scale consulting activities using information and successful case studies collected through agent work In the restaurant chain company field, promote diversification of business categories of contracted companies while enhancing marketing functions Simultaneously promote product development for small- and medium-sized restaurants ✓ Accelerate cross-use of online reservation services using Rakuten ID ✓ Plan and develop new services through business cooperation with OPTIM Enhance Gurunavi PRO* system to effectively link the above three services * Digital platform for restaurant industry that connects GURUNAVI with member restaurants GURUNAVI 25 25#26(Reference) Potential of focus services Accurately identify restaurant concerns and needs through human support structure Rapidly develop and provide solutions in collaboration with partner companies Japan's largest user membership base with high customer loyalty Rakuten members Over 100 million ID Increasing the need for efficient operation of various tools Restaurants E-commerce Travel GURUNAVI Mobile (As of December 2022) Cross-use rate 75.6% Card & Payment Banking GURUNAVI Other gourmet sites Owned media Google LINE Digital content Transform Increasing diversification of restaurant sales promotion methods A B Marketing agent Gurunavi website C Mobile ordering service D Expand DX services for restaurants Nearly 80% of restaurants recognize the necessity of digitizing restaurant operations, while only 10% are sufficiently addressing the issue 0% 10% 50% 80% 90% 100% 20% 30% 40% Recognize the necessity, 60% 70% Recognize the necessity, does not address issue 26.2% Not exactly necessary 19.2% Not at all necessary 4.8% 10.9% not enough to address issue 39.0% Recognize the necessity, issue already sufficiently addressed (Recognize the necessity of digitizing restaurant operations) GURUNAVI Web survey for member restaurants (n=313) 26#27Service promotion policy Mutual Growth Promotion Strategy: Enhance services that cooperatively elevate function and value GURUNAVI C A Transform Gurunavi website Expand content, seating inventory Expand user base through linking mobile ordering service Mobile ordering service Smooth onboarding Expand marketing functions D Expand DX services for restaurants ✓ Strengthen CRM functions Improve accuracy of business management functions Marketing agent B Improve efficiency of agent operations Expand consulting fields that utilize collected information 27#28Role of focus services (1) Eight activities necessary to improve restaurant productivity Productivity of restaurant operation Sales Efficient promotional activities Efficient store management 1. New customers 2. Repeat customers Operating costs 3. Customer response man-hours 4. Information management man-hours GURUNAVI ✓ 5. No. of items ordered 6. Order unit price 7. Purchasing/Cooking 8. Product development man-hours 28#29Role of focus services (2) Solve issues related to improving restaurant productivity by creating synergies D Expand DX services for restaurants A Supporting effective linked of the following three services Transform Gurunavi website C Mobile ordering service Productivity of restaurant operation 1. New customers Sales 2. Repeat customers ✓ 5. No. of items ordered 6. Order unit price Operating costs 3. Customer response man-hours 4. Information management man-hours B Marketing agent 7. Purchasing/Cooking 8. Product development man-hours In addition to supporting ingredient inventory optimization and reduction of food loss through the implementation of restaurant footfall forecasting functions in Focus Service also investigated responding via support for menu franchise development GURUNAVI 29 29#30Future vision Contributed to realization of prosperous food future by leveraging information assets accumulated through DX support for restaurants Reducing the environmental impact of the foodservice industry Development of local communities Dissemination and continuation of culture and culinary techniques Development of a sustainable food industry Transition to a strong management model in line with changes to the operating environment Improve working environment Safe and healthy eating habits Getting highly trustworthy information Convenient and comfortable experience Food-related businesses local governments, etc. Improving productivity with DX Optimizing the matching of their challenges with the needs of restaurants and consumers GURUNAVI Restaurants 0000 Sales Operating costs Digital utilization ☑ Expand provided tools Human support Expand No. of restaurants receiving our value Developed "information assets" that identify the present and future of dining out Collection Aggregation Analysis Application - Our unique value creation system - Consumers Improve convenience, benefits, and enjoyment 30 30#31Road map FY2025, the final fiscal year of the new Medium-term Business Policy, coincides with the 30th anniversary of the launch of the Gurunavi site Transition to a strong business model in line with changes to the business environment, chart new growth trajectory ✓ Finalize medium-term strategy FY2025 Establish ✓ Transition to profit expansion phase FY2024 Acceleration FY2023 Run-up ✓ Launch medium-term strategy ✓ Existing areas expected to be profitable ✓ Deficits in new business areas due to upfront investment GURUNAVI ✓ Contributions of measures to earnings becomes apparent ✓ Achieve profitability for whole company 31#32Reference materials GURUNAVI 32#33GURUNAVI Brand Statement < Spirit > Protecting and nurturing Japanese food culture < Purpose > Food: Satisfying People and Creating Connections < Vision 2025 > Best partner for restaurant management DX 33 33#34Strong collaborative structure Strengthen and expand the three essential powers that drive our business forward Power to connect with consumers Platform-building capabilities Power to connect with restaurants Rakuten Improve presence of Gurunavi in the Rakuten Ecosystem GURUNAVI SHIFT Raise quality and speed of system development OPTIMⓇ Promote Al/IoT utilization, etc. 情報とサービス テン TENPOS Dr.テンポス Increase new member restaurants Expand the solution 34#35Initiatives for Sustainability For "food," "people," and "society" to continue to prosper https://corporate.gnavi.co.jp/en/profile/sustainability/ 12 CONSUMPTION RESPONSIBLE Contributing to the development of local communities through food AND PRODUCTION CLIMATE 13 ACTION 7AFFORDABLE AND CLEAN ENERGY 3 GOOD HEALTH AND WELL-BEING SUSTAINABLE CITIES 11 AND COMMUNITIES A DECENT WORK AND ECONOMIC GROWTH Ensuring safe and healthy eating habits Reducing the environmental impact 14 Establishment of sound and highly BELOW WATER 15 ON LAND transparent decision-making processes and strict adherence to 16 INSTITUTIONS compliance PEACE, JUSTICE AND STRONG Society Realize Food a sustainable society People INDUSTRY, INNOVATION AND INFRASTRUCTURE 12 RESPONSIBLE CONSUMPTION AND PRODUCTION Support for transition to a strong restaurant management model in line with changes to the operating environment Dissemination and continuation of Japan's renowned food culture and culinary techniques Empowerment of individuals working in the food service industry GURUNAVI GOOD HEALTH AND WELL-BEING w GENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH 17 PARTNERSHIPS FOR THE GOALS 10 REDUCED INEQUALITIES Creating an environment where employees are free to be individuals and realize their potential Partners with a range of organizations including other businesses, associations, government agencies, local governments, and educational and research institutions 35#36New membership plan *launched in September 2021 ✓ Set up a new plan with a lighter monthly fixed cost burden compared to the previous plan For restaurants that do not require sales promotion support, such as thriving restaurants, online reservation functions and business support products are provided independently → Increase the number of member restaurants and the possibility to reallocate resources to new businesses through the expansion of target restaurants, reduction of churn rate and associated improvement in operational efficiency | Sales promotional plan (that requires published restaurant page) Light Plan Start Plan 10,000 yen / month 0 yen / month Х ☑ Fixed fee Lunch: 41 yen / person; Dinner: 205 yen / Basic membership fee Assigned sales contact Online reservation commission Gurunavi Ledger (App version) Use of coupons Basic Plan 30,000 yen / month Different fee options available Lunch: 11-41 yen / person; Dinner: 55-205 yen / person Enhanced exposure (publication on special pages and advertising spaces) person ☑ + Purchase of optional services available (exposure enhancement, outsourced services, in-store digitalization, management support, etc.) Non-member sales promotional plan (no restaurant page) include the purchase options of in-store digitalization / management support / outsourced services, etc. GURUNAVI 36#37GURUNAVI (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 50,798 0 51,365 52,538 52,235 52,148 52,279 53,323 53,263 53,628 Number of member restaurants ■Member restaurants with monthly-type fee contract FY2022 Number of total paying member restaurants Member restaurants with monthly-type fee contract 42,909 33,656 at the end of March 2023 down by 15,377 from the end of March 2022 at the end of March 2023 down by 11,250 from the end of March 2022 54,458 55,894 56,967 58,226 59,612 60,816 60,886 61,383 61,328 61,986 61,482 61,157 60,629 60,712 Started delivery and take-out services Same as left services closed Gurunavi Pay closed Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2013 FY2017 FY2018 FY2021 FY2022 FY2014 FY2015 FY2016 FY2019 FY2020 59,660 59,007 58,951 59,067 59,173 51,640 49,469 56,805 55,763 54,342 61,107 60.614 58,286 55,699 46,222 45,450 *The numbers in the graph are the number of total paying member restaurants 37 42,909#38User reach ■Number of Rakuten ID connected members : 7.07 million (At the end of March 2023; 5.54 million at the end of March 2022) ■Number of Gurunavi members : 23.99 million (As of April 1, 2023; 22.33 million members as of April 1, 2022) ■ Unique user per month : 38.00 million (In Dec. 2022; 41.00 million users in Dec. 2021) *Unique users per month: Based on browser count *Gurunavi member: An individual who has registered for membership at Gurunavi GURUNAVI 38#39Quarterly sales data (consolidated) FY2019 FY2020 FY2021 FY2022 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 6,014 5,978 6,093 5,823 1,350 3,148 3,250 2,730 2,320 2,131 1,928 2,030 1,891 1,896 2,015 2,059 Spot services b 967 1,021 1,511 995 125 412 1,750 515 260 369 681 268 376 268 266 206 C= Restaurant promotion services 6,982 6,999 7,605 6,819 1,475 3,561 5,000 3,245 2,581 2,501 2,610 2,299 2,267 2,165 2,282 2,266 a+b Promotions d 118 179 200 293 133 317 1,033 653 218 208 493 440 225 317 347 391 e= Core businesses total 7,100 7,178 7,805 7,113 1,608 3,879 6,033 3,899 2,799 2,709 3,104 2,739 2,493 2,482 2,630 2,657 c+d Related businesses f 451 433 461 382 174 160 184 239 235 360 354 548 459 429 461 681 Total g= e+f 7,551 7,611 8,267 7,495 1,783 4,040 6,217 4,139 3,034 3,070 3,458 3,288 2,953 2,911 3,091 3,339 FY2019 FY2020 FY2021 FY2022 (Unit: JPY) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Restaurant promotion services revenue h*1 39,227 39,557 42,961 38,449 8,878 23,486 31,367 19,224 15,628 14,442 14,298 12,892 13,263 14,164 16,600 17,101 per restaurant(ARPU) Cumulative retained services. *2 34,872 35,071 revenue per restaurant(ARPU) 35,924 34,547 8,617 22,136 23,064 19,657 17,631 15,838 13,687 14,724 14,646 16,585 19,347 20,177 *1) Sum of sales of cumulative retained services and those of spot services devided by the average of number of total paying member restaurants at previous and current quarter-end h=2/3*c/(jt-1+jt) *2) Sales of cumulative retained services devided by the average of number of member restaurants with monthly-type fee contract at previous and current quarter-end i=2/3*a/(kt-1+kt) The deviation from figures disclosed before the first quarter of fiscal year 2021 is due to a recalculation based on the number of member restaurants with monthly-type fee contract defined in Note 3) Number of member restaurants (Unit: restaurants) Total paying member restaurants Member restaurants with monthly-type fee contract FY2019 FY2020 FY2021 FY2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 j 59,007 58,951 59,067 59,173 51,640 49,469 56,805 55,763 54,342 61,107 60,614 58,286 55,699 46,222 45,450 42,909 k*3 57,027 56,612 56,469 55,910 48,580 46,256 47,694 44,917 42,830 46,904 47,050 44,906 41,195 35,052 34,406 33,656 *3) Restaurants using the fixed monthly fee service (regardless of whether they have a paid listing contract on the Gurunavi site) "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) have been applied from the beginning of the fiscal year 2021. There is no change in presentation to the figures for previous years. GURUNAVI 39#40User overview 60 and above, 12.3% Users by age group Unknown, Under 20, 3.9% 0.3% User composition by gender GURUNAVI 20's, 11.6% 50's, 20.4% 30's, 22.8% Women, 48.1% Men, 51.9% 40's, 28.6% Source: Gurunavi member data (In March 2023) 40#41Regional expansion and member restaurants Hokkaido Area with our sales staff (21 prefectures) Miyagi Kanagawa Shizuoka Hyogo Okayama Ibaraki Aichi Hiroshima Tochigi Niigata Ehime Saitama Ishikawa Fukuoka Chiba Tokyo Osaka Kyoto Kagoshima Okinawa GURUNAVI Percentage of member restaurants(paid) by region Shiokoku 1.4% Chugoku 3.6% Okinawa 1.6% Hokuriku 3.1% Touhoku 3.1% Hokkaido 2.6% Kyushu 5.6% Kanto 46.9% Chubu 9.7% Kansai 22.3% Percentage of member restaurants (paid) by restaurant type Cafes / Dessert Spots 1.8% Chinese 3.8% Asian BBQ / Teppanyaki 11.6% Other cuisine 6.8% Japanese 24.5% Bars/Gastropubs 4.0% Other Western 3.1% Italian French 7.8% Izakaya (Japanese Pub) 36.6% * In March 2023 41#42Sales and costs & expenses (Million yen) Sales Related businesses Costs & Expenses (Million yen) Cost of sales Advertising and promotion expenses Other expenses ■Business consignment expenses Rent expenses Personnel expenses 40,000 Promotions 40,000 Spot services 2,381 ■Cumulative retained services 35,000 2,298 35,000 1,007 2,214 1,018 989 2,638 2,761 3,374 2,282 30,000 2,529 956 1,729 30,000 750 2,786 792 1,847 924 1,698 3,609 4,496 8,832 10,142 10,645 25,000 25,000 8,626 10,136 8,683 7,817 20,000 20,000 2,773 2,697 2,400 7,458 2,363 2,458 3,037 3,287 15,000 30,951 759 4,575 4,549 4,403 28,883 29,534 15,000 3,989 1,955 2,137 27,277 4,185 5,759 3,482 25,109 25,881 4,191 23,909 2,803 1,499 2,658 2,240 2,103 2,331 3,570 2,031 1,361 2,169 1,315 730 4,896 10,000 1,282 10,000 1,904 1,366 1,766 1,565 2,042 1,579 1,173 1,976 1,431 1,564 1,106 1,118 1,545 419 1,947 1,264 1,300 883 1,017 5,000 10,480 5,000 8,412 7,863 8,313 8,867 9,510 9,833 10,086 9,916 8,906 7,240 6,736 5,538 0 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 GURUNAVI FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 42#43Historical data (consolidated) (Unit: JPY million) FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Consolidated business results Net sales 30,518 32,636 34,617 36,979 36,226 32,728 30,927 16,181 12,852 12,296 Operating income (loss) *1 4,147 5,099 6,429 6,740 4,742 1,216 1,821 (7,423) (4,786) (1,724) Ordinary income (loss) 4,167 5,127 6,492 6,813 4,809 1,289 1,894 (7,269) (4,692) (1,664) Net income (loss) 2,420 3,279 4,367 4,799 3,192 581 949 (9,704) (5,768) (2,286) Assets Liabilities. Net assets Total assets Cash and deposits Liabilities 22,071 23,665 27,322 23,917 25,457 23,797 23,979 13,567 12,107 13,001 9,448 10,492 13,131 7,922 8,000 7,630 11,653 7,507 6,962 8,266 5,926 6,201 7,026 5,878 6,270 5,093 4,709 4,192 3,255 6,102 Net assets Equity 16,145 17,464 20,296 18,038 19,186 18,704 19,270 9,375 8,851 6,898 16,099 17,427 20,266 18,013 19,166 18,662 19,211 9,290 8,767 6,821 Per share data Earnings (loss) per share (JPY) *2 49.56 67.26 90.19 102.25 68.27 12.42 20.26 (206.90) (114.46) (44.25) Dividends per share(JPY) Common shares *2 15 28 28 38 42 42 44 8 8 Class A preferred shares 13.808 45.000 Operating margin(%) Return on equity(%) Return on assets(%) Payout ratio (%) Shareholders' equity ratio (%) Number of shares of treasury stock Total paying member restaurants Other 13.6 15.6 18.6 18.2 13.1 3.7 5.9 16.1 19.6 23.2 25.1 17.2 3.1 5.0 11.8 14.3 17.1 18.7 12.9 2.4 4.0 30.3 41.6 42.1 41.1 64.5 64.4 39.5 72.9 73.6 74.2 75.3 75.3 78.4 80.1 68.5 72.4 52.5 1,503,649 52,235 266,059 216,459 53,263 56,967 1,924,559 60,886 1,892,159 61,482 1,839,162 59,660 1,806,562 1,757,262 1,128,462 59,173 55,763 1,128,462 42,909 58,286 *1:The credit commitment fee payable to financial institutions, previously included in the "payment fee" under selling, general and administrative expenses, is separated to the "commitment fee" under non-operating expenses from the fiscal year 2020. There is no change in presentation to the figures for previous years. *2:Gurunavi implemented a 2-to-1 split on April 1, 2014. Calculated on the assumption that these share split were conducted at the beginning of the fiscal year 2013 (April 1, 2013). GURUNAVI 43#44Business Environment Number of restaurants 370 thousand outlets in 2021 ( 490 thousand outlets in 2016) *Sources: 2016 Economic Census for Business Activity; 2021 Economic Census for Business Activity *Institutional meals, bars, and night clubs are excluded Market size of the Japanese restaurant industry (Trillion yen) Market size of online reservation in restaurant (Trillion yen) 18 16 14 12 10 8 642 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 2014 2015 2016 2017 2018 2019 2020 2021 *Source: Food Industry Research Institute; Size of restaurant market *Institutional meals, bars, and night clubs are excluded. 11.7 trillion yen in 2021, 7% decrease year on year *The Ministry of Economy, FY2021 E-Commerce Market Survey 17% decrease year on year in 2021 GURUNAVI 44#45Company profile as of the end of March 2023 Name Gurunavi, Inc. (stock code: 2440) Establishment October 2, 1989 (incorporated) February 29, 2000 (Gurunavi, Inc. established) Head office 1-1-2 Yurakucho, Chiyoda-ku, Tokyo Capital 100 million yen Number of shares issued Common shares: 56,903,800 Class A preferred shares: 3,400,000 Business description Directors Top 10 shareholders Number of total personnel Consolidated subsidiaries 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, Yui Ono Rakuten Group, Inc. 16.6%, Hisao Taki 12.7%, The Master Trust Bank of Japan, Ltd. (Trust account) 7.5%, SHIFT Inc. 4.0%, Japan Traffic Culture Association 3.3%, Akio Sugihara 2.3%, Odakyu Electric Railway Co., Ltd. 2.0%, Tokyo Metro Co., Ltd. 1.7%, Hiroko Taki 1.5%, OPTIM Corporation 1.4% *The ratio of shareholding is calculated based on the total number of shares issued after deduction of treasury stock (1,128,462 shares). Non-consolidated : 1,139 Consolidated : 1,224 Gurunavi (Shanghai), Inc. (100%), Gurunavi Research Institute, Inc. (100%), Gurunavi Support Associe, Inc. (100%), G dining Inc. (100%) GURUNAVI 45#46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 2023. 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.