#1Gurunavi, Inc. INVESTOR PRESENTATION Financial Results for the Fiscal Year ended March 31, 2017 (Stock Code: 2440)#2FY2016 Financial highlights ■Made record profits, despite continued active investment ■ EPS increased by 13% YoY, exceeding initial forecasts (due to reduction of legal effective tax rate and share buyback) ■Member restaurants increased 7% YoY GURUNAVI Net sales JPY 36,979 million +6.8% YoY Operating income Operating income on net sales JPY 6,740 million +4.8% YoY 18.2% (0.3 percentage points) YoY Profit attributable to owners of parent JPY 4,799 million +9.9% YoY * Basic earnings per share (EPS) Return on equity 25.1% +13.4% YoY +1.9 points YoY *Average number of shares issued excluding treasury shares FY2015: 48,431,510 shares FY2016: 46,931,986 shares Number of member restaurants (paid) Number of unique users Number of Gurunavi members 60,886 (At the end of March 2017) 61 million +6.9% YoY (In December 2016; 57 million users/month in December 2015) 14.89 million (As of April 1, 2017; 13.97 million members as of April 1, 2016) JPY 102.25 2017 Gurunavi, Inc. 2#3Consolidated income statement (JPY million) GURUNAVI FY2015 Ratio to sales FY2016 Ratio to sales YOY Increase Net Sales 34,617 100.0% 36,979 100.0% 6.8% Cost of sales 8,626 24.9% 8,832 23.9% 2.4% Gross profit 25,990 75.1% 28,146 76.1% 8.3% SG&A expenses 19,560 56.5% 21,406 57.9% 9.4% Operating income 6,429 18.6% 6,740 18.2% 4.8% Ordinary income 6,492 18.8% 6,813 18.4% 4.9% Profit before income taxes 6,485 18.7% 6,813 18.4% 5.1% Profit attributable to owners of 4,367 12.6% 4,799 13.0% 9.9% parent 2017 Gurunavi, Inc. 3#4Consolidated sales breakdown (JPY million) FY2015 FY2016 YOY GURUNAVI Net Sales 34,617 36,979 6.8% Restaurant promotion services 31,413 33,589 6.9% 【Restaurant promotion services 】 •Cumulative retained services Due to effective regional measures and inbound measures Cumulative retained services 28,883 30,951 7.2% •Spot services L Increased online reservation commission fees Spot services 2,529 2,638 4.3% Promotions 989 1,007 1.8% Related businesses 2,214 2,381 7.6% (JPY million) 10,000 676 676 9,000 632 594 508 262 399 307 520 315 189 829 8,000 620 155 813 741 494 177 493 895 686 596 487 744 282 213 152 566 161 682 573 455 492 7,000 128 278 312 ■Related businesses 6,000 ■ Promotions 5,000 Spot services 4,000 6,674 6,728 6,964 6,909 6,973 7,077 7,344 7,487 7,601 7,674 7,880 7,795 3,000 Cumulative retained services 2,000 1,000 о Q1 Q2 Q3 FY2014 2017 Gurunavi, Inc. +4 Q4 Q1 Q2 Q3 FY2015 60 Q4 Q1 Q2 Q3 Q4 FY2016#5© 2017 Gurunavi, Inc. (JPY million) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2 3,036 3,266 3,525 3,677 The recent trends of cumulative retained service sales Q 3,939 4,204 4,516 4,686 24,809 4,992 5,256 5,255 5,291 5,278 5,359 5,161 24,935 Q4 sales of cumulative retained service decreased from Q3 5,021 5,201 5,272 5,360 5,517 5,752 5,860 2 5,990 6,155 6,428 6,534 6,674 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 FY2007 FY2009 FY2010 FY2011 FY2012 FY2014 FY2008 FY2013 FY2015 FY2016 8749 6,964 220'2 6,909 26,973 7,344 7,487 27,601 7,674 7,880 Main factor Weak orders and increased contract reductions with major accounts < Current state of the Japanese restaurant market >> Decrease of household eating-out expenditure in year-end and new-year party season Reexamination of new store opening plan and reduction of the number of stores with the background of labor shortage and increase in wages. LO 5 Full year +7.2% YoY 7,795 GURUNAVI#6Growth of restaurant promotion services. GURUNAVI Focus on expansion of member restaurants in anticipation of further growth in restaurant promotion support business 240 220 200 Area expansion, i.e. sales increase is crucial Q4 FY2015 Q4 FY2016 Q4 FY2014 Q4 FY2013 Q4 FY2012 180 Q4 FY2011 Monthly revenue of Q4 FY2010 Restaurant Promotion Q4 FY2009 Service per restaurant 160 (Index based on JPY21,950 in Q4 FY2008 Q1 FY2005 as 100) © 2017 Gurunavi, Inc. 140 120 100 Q1 FY2005 Q4 FY2006 Q4 FY2005 Q4 FY2007 Monthly revenue of Restaurant Promotion Service per restaurant L Due to our strategic expansion into regional areas, we are seeing an increase in new member restaurants, which tend to start with smaller monthly contracts. L Cumulative retained services fell 3Q 4Q (see previous slide) Number of Member Restaurants L 7% increase YoY (about 4,000 restaurants) *Over 40% of which were net increases by newly established sales offices L Looking ahead, we will approach these new member restaurants with upselling proposals. 0 100 120 140 160 180 200 220 240 Number of Member Restaurants (Index based on 27,050 restaurants in Q1 FY2005 as 100) CO 6#7Consolidated cost breakdown (JPY million) FY2015 Ratio to sales FY2016 Ratio to sales Ratio change Total Cost Cost of Sales SG&A Personnel expenses Rent expenses 28,187 81.4% 8,626 24.9% 19,560 56.5% 9,510 27.5% 1,366 3.9% Business consignment expenses 2,331 6.7% Advertising and promotion expenses 2,363 6.8% Other 3,989 11.5% 30,238 81.8% 0.3 p 8,832 23.9% (1.0 p)| 21,406 57.9% 1.4 p 9,833 26.6% (0.9 p) 1,565 4.2% 0.3 p 2,658 7.2% 2,773 7.5% 4,575 12.4% 0.5 p 0.7 р 0.9 p (JPY million) 9,000 8,000 GURUNAVI Improvement of cost of sales ratio Subcontract costs and labor costs increased due to promoting the key measures (construction of new media, production of contents etc.) Decrease in depreciation & amortization cost due to mitigated amortization burden of high software investment in the past and decrease in loss on software retirement Raising SGA ratio due to investment for growth Increasing costs for implementation of the medium-term management plan. L Increased recruitment and personnel costs following active hiring focused on planning and system development staff. L Expenses incurred by enhancement of internal systems in preparation for expanding business areas. L Advertising and promotion expenses and outsourcing costs according to promoting key measure. Increase in advertising and promotion expenses during year- end party season. Expansion of pro-forma standard taxation. 7,000 2,270 2,412 2,438 Cost of sales 2,135 6,000 2,220 2,375 2,130 2,186 1,987 1,900 1,981 2,102 620 1,180 528 5,000 623 842 466 813 441 1,070 487 662 448 479 1,105 Advertising and promotion expenses Other expenses 4,000 1,000 1,115 1,189 1,165 931 1,142 1,001 1,040 1,060 926 709 762 681 3,000 572 582 370 595 619 525 521 549 305 507 532 410 Business consignment expenses 289 284 294 317 337 341 379 390 384 ■Rent expenses 2,000 1,000 2,117 2,134 2,162 2,452 2,850 2,154 2,214 2,290 2,319 2,375 2,465 2,672 ■Personnel expenses 0 Q1 Q2 Q3 Q4 ठ FY2014 2017 Gurunavi, Inc. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2015 FY2016 7#8Consolidated balance sheets ■ Acquisition of own shares amounted to 5.0 billion yen and total dividends amounted to 2.0 billion yen GURUNAVI (JPY million) As of Mar. 31, 2016 As of Mar. 31, 2017 As of Mar. 31, Change (JPY million) 2016 As of Mar. 31, 2017 Change Total current assets 20,889 15,661 (5,227) Total current liabilities 6,809 5,647 (1,162) Cash and deposits 13,131 7,922 (5,209) Accounts payable-other 2,264 2,241 (22) Notes and accounts 4,670 receivable-trade 4,663 (6) Income taxes payable 1,457 714 (742) Accounts receivable- 1,747 other 1,893 145 Provision for bonuses 1,378 1,042 (335) Allowance for doubtful Provision for point card accounts (286) (274) 12 168 148 certificates (20) Other 1,625 1,456 (169) Other 1,541 1,500 (41) Total non-current 6,433 assets 8,255 1,821 Total non-current liabilities 216 231 14 Property, plant and 933 equipment 1,090 156 Total liabilities 7,026 5,878 (1,147) Intangible assets 3,550 4,822 1,272 Total net assets 20,296 18,038 (2,257) Investments and other assets 1,949 2,342 393 Equity 20,266 18,013 (2,252) Total liabilities and Total assets 27,322 23,917 (3,405) net assets 27,322 23,917 (3,405) 2017 Gurunavi, Inc. 8#9FY2017 Consolidated forecasts © 2017 Gurunavi, Inc. 9#10FY2017 Consolidated forecasts GURUNAVI (Million yen) Net Sales FY2016 results FY2017 YOY forecast 36,979 38,200 +3.3% Operating income 6,740 6,900 +2.4% Operating income on net sales 18.2% 18.1% ( 0.1 points) Ordinary income 6,813 6,900 +1.3% Profit attributable to owners of parent 4,799 4,700 (2.1%) Basic earnings per share (JPY) 102.25 100.53 (1.7%) Annual dividends (JPY) 42.00 44.00 +4.8% ROE 25.1% ● Costs will continue to be monitored and reduced according to results and effectiveness, operating income on net sales of 18% ● Profit attributable to owners of parent forecasts based on an anticipated corporate tax rate of 32% (Assuming that tax credit for salary growth which has been applied until FY2016 will not be applied.) Annual dividends increase in view of the medium-term profit growth ROE will be maintained at current levels. © 2017 Gurunavi, Inc. 10#11Positioning of FY2017 GURUNAVI Building the foundation for acceleration of growth from FY2018 onwards FY2016 Clarify goals Change focus © 2017 Gurunavi, Inc. FY2017 Incorporate new business areas Evolve business foundation FY2018 onwards Produce results Start on path to growth Achieve Medium Term Management Plan goals ⇒ Continuous growth 11#121 Enhancement of product development capabilities collecting information in various domains~ Previous structure understanding needs related to sales promotion~ GURUNAVI Planning and Development Release new services Feedback Offline infrastructure Restaurants Proposal/introduction promotion Information collection 1,000-person support structure Mainly understanding needs related to sales promotion Restaurants varying in location, type, scale, etc. New structure understanding various needs of restaurants related to their management~ Planning and Development 3 Offline infrastructure Restaurants New 2 Division 1 Integration and analysis of information 1,000-person support Restaurants varying in structure location, type, scale, etc. 1 2 Coverage of information collected will be extended to all areas of the restaurant management from the sales promotion area Launched an new division responsible for hub function among sales, and planning and development, with gathering, organizing, and analyzing the all information collected Develop and provide products and services which restaurants need, related to various areas 3 in addition to sales promotion area © 2017 Gurunavi, Inc. 12#132 Strengthening of the sales force -Sales system for spreading services in addition to existing sales promotion service~ Previous structure Collaboration among staff in charge level~ Restaurant Sales Department Collaboration For example.. EC service sales GURUNAVI (issues >> Enhance products and services to accompany expansion of support business area → A structure to promote and expand existing services and new services simultaneously without reducing quality is crucial Collaboration Cooperation of restaurant sales and specialist sales was restrictive New structure Collaboration in organization level~ Establish specialist sales groups within Restaurant Sales department, which are specialized for target customers, and respective services. Restaurant Sales Department team team team sales sales sales sales sales sales sales team team team team Collaboration among staff in charge level Restaurant chain sales group NEW Business support service sales group NEW Corporate sales group NEW EC service sales group Strengthen Premium and member restaurant sales group Strengthen 1 Establish and strengthen specialist sales system 2 Collaboration in organizational level © 2017 Gurunavi, Inc. 13#14Release new services successively focused on new business areas Total net sales ¥55 billion GURUNAVI Restaurant support business ¥45 billion Supporting restaurants' sales promotion Supporting restaurants' business diversification Supporting restaurants' other business New businesses ¥10 billion Business support to businesses in primary and secondary food sector Further expanding the field of non-everyday occasions Expansion of paid-membership services to consumers Food product and produce E-commerce support Settlement fee business (Paying restaurants through Gurunavi) Pre-payment model Multi-lingual sites Collaboration with global OTAS, etc. Post-meal settlement model Corporate entertainment reservations Collaboration with Concur Technologies Inc. →Customer referrals from sources outside Gurunavi sites Delivery Lunchboxes for corporate meetings, picnic lunchboxes, etc. Internet shopping Souvenirs, seasonal gifts, special presents, etc. →Collaboration and revenue sharing with other sites Restaurant operation streamlining support POS⚫ settlements 2017 Gurunavi, Inc. Reservation ledger Release new services successively related to growing markets 14#15Expand business fields within restaurant support business area GURUNAVI Our target market will be enlarged by adding new restaurant support businesses Support field Target restaurants Sales promotion services 3% Other services supporting restaurants' businesses 97% × 100,000-200,000 ✓ up to 500,000 (all restaurants in Japan) Restaurants' needs They want to manage system and service supporting their business unitarily We aim to be the de-facto standard in fields of restaurants' business support by providing various business support services comprehensively Our aims Develop services to promote improvement of business efficiency and productivity of the restaurant in various fields in addition to the sales promotion field Promoting the spread of services mainly by "Business support service sales group" launched newly © 2017 Gurunavi, Inc. 15#16Expanding restaurants' business support area GURUNAVI The biggest difference with similar services is the functionality specialized for restaurants 会計 FERGE 即合計 GREE 338 77% 319 LOUD-R ログアウト C 77220 100.000 <*34ʊ POS+ ポスタス The functionality specialized for restaurants To meet the characteristic of the restaurant where the menu categories and menus are various, a registration menu hierarchy is enriched →> Smooth order and accounts are possible by arranged registration menu information → Detailed menu analysis is possible Management and analysis functions such as the unit price or order contents every table Planning of sale, the pulling in customers strategy for the sales maximization of each table is possible ● Management of order and serving of meals is possible in combination with an order entry system (option) hastens the offer of the dish and reduce labor of the staff by shortening of the movement conducting wire of the order inquiry Other characteristic Supports a wide variety of restaurant types, from individual restaurants to chains → Count in the headquarters, correspondence to a franchise store, connection to core system are available Full support systems such as lectures of data analysis and utilization by Gurunavi Academy + Add various functions in line with the needs of the restaurant (plan) Reservation ledger collaboration Settlement by Gurunavi point Multi-settlement system Credit cards, e-money, Chinese mobile payment systems, virtual currencies, etc. Medium- to long-term effects Creation of the profit source in various support fields in addition to the sales promotion ● Improve membership renewal rates by providing useful tools for increasing productivity ● Develop new services that leverage restaurant user histories (bills, settlement, reservations, etc.) Restaurant support business expansion Gurunavi POS+ is a joint product by Gurunavi and Intelligence Business Systems, developer and provider of the cloud-based Mobile POS and POS+ systems for restaurants. © 2017 Gurunavi, Inc. 16#17E-commerce market is expected to continue expanding GURUNAVI Considering sale of a meal-related product suggesting the rich eating habits B to C e-commerce market size (Trillion yen) Reclaim the new needs including a gift and the meal of the auspicious occasion which are not kept in the conventional food-related e-commerce market with non- everydayness and high quality products as a driving force 9 1 E-commerce market is expanding 8 2 Expand our business fields 8 trillion yen (YOY:+10.6%) 1.5 7 Food, beverages, and alcohol Main field 1.5 trillion yen 1.3 1.2 6 1.4 Interiors and furniture 1.0 1.2 5 1.2 1.0 1.5 Clothing and apparel 4 1.4 1.3 1.2 The market size of the target domain including the meal-related product which adds color to the daily eating habits, cooking tool, tableware, recipe books is 5,4 trillion yen 1.1 Books and AV products 3 1.0 0.9 0.8 2 1.4 1.3 1.3 Consumer electronics, AV devices, PCs and peripherals, etc. 1.2 1 0.9 0 2013 1.0 2014 1.1 2015 1.2 Other 2016 Source: Ministry of Economy, Trade, and Industry, Commerce and Information Policy Bureau, Information Economy Division - Developing infrastructure for a shift to an information and service-based economic society in Japan (online commerce market survey) © 2017 Gurunavi, Inc. 17#18Strengthen food-specific internet shopping services. Develop EC sites that are discerning about high-quality products GURUNAVI Leverage Gurunavi's unique network* to monetize occasions outside of normal routines such as dining out, and gift giving and celebrations where food is involved * secretary members approx. 34,000 chef members approx. 25,000 food specialist and celebrity: approx. 300 Build an EC platform to facilitate service collaborations with external parties Other companies that run EC sites and the like can freely select products suited to their customers and members from Gurunavi's database and sell them through their sites. Unify billing plans as sales commission-based with no fixed fees A remuneration plan based on successful revenue lowers membership and start-up hurdles facing operators wanting to launch new stores. Revenue sharing also facilitates business collaboration with external services. © 2017 Gurunavi, Inc. Enhance available products, led by the EC service sales team Expand external partnerships, led by the corporate sales team 18#19Promote service collaboration with other companies to expand sales commission revenue ぐるなび Discerning selection by Gurunavi's unique network (Chefs, executive assistants, food specialists, etc.) External partners GURUNAVI Freely compile product lineups suited to customers and members and sell through own sites Restaurant's own site Gurunavi members 15 million High quality, non- everyday product tank Product data Selection and compilation 70 May reach million of EC Gurunavi food Credit card companies users market members 0.9 million Gurunavi EC sites てみやげ 接待の手土産 ぐるなび食市場 ippin ぐるすぐり Potential partners Rail and aviation companies 秘書が選んだ至極の逸品一 Communications companies Other Gurunavi sites 店舗ページ ** Let's TOKYO ENJOY <3 WEDDING Media companies (newspapers, TV) Product page Shopping cart Gurunavi EC Platform External companies... ●Restaurant operators... O Consumers... Can expand product range and enhance customer and member services Can sell their products through multiple related sites with just a Gurunavi contract Can buy products through sites they use every day © 2017 Gurunavi, Inc. 19#20Shareholder returns GURUNAVI Distribution to shareholders with a consolidated dividend payout ratio of approximately 40% as standard, while emphasizing ROE. Dividend per share ⚫ FY2016: Increased year-end dividend by JPY2 per share from JPY20 to JPY22. Full-year dividend: JPY42 per share Dividend payout ratio: 41.1% Combined with treasury stock acquisition (JP4,999 million), total return ratio: 145.1% ⚫FY2015: Full-year dividend JPY44 per share (interim: JPY22; Year-end: JPY22) Payout ratio: 43.8% (JPY) 120 100 80 60 60 FY2016 FY2017(forecast) Consolidated Interim Year-end Year-end JPY20 JPY22 JPY42 payout ratio 41.1% JPY22 JPY22 JPY44 43.8% Previous acquisitions of own shares 515,400 shares (1.00%) in FY2006 2,483,600 shares (4.83%) in FY2010 624,900 shares (1.28%) in FY2014 1,743,900 shares (3.60%) in FY2016 * The figures in the parentheses indicate percentage of total number of shares issued excluding treasury shares Basic earnings per share 49.56 40 40 20 20 Dividends per share 29.36 44.03 45.20 39.12 40.15 35.76 .LLLLL| 13.03 10.77 10.98 5.5 3.5 8.5 10 10 10 10 15 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 67.26 28 FY2014 90.19 *Gurunavi implemented a 5-to-1 share split on August 19, 2005 and a 100-to-1 share split on April 1, 2011 and a 2-to-1 split on April 1, 2014. To facilitate comparison, the above graph shows these share splits as having been carried out at the beginning of FY2004. © 2017 Gurunavi, Inc. 102.25 100.53 38 FY2015 Full-year dividend JPY44 42 FY2016 FY2017 forecast 20 20#21The medium-term management plan aiming business area expansion GURUNAVI 10% annual growth (JPY billion) Net sales ¥55 billion 200 New businesses 180 ¥10 billion (JPY billion) 600 Sales of restaurant support business (left scale) Sales of new business (left scale) Operating income (right scale) 500 400 300 200 100 Produce results Start on path to double- digit growth Incorporate new business areas Evolve business foundation ¥34 billion Clarify goals 9% Change focus 91% ¥6 billion 0 FY2011 FY2012 FY2013 FY2014 FY2015 2017 Gurunavi, Inc. 160 Restaurant 140 support business ¥45 billion Operating income ¥10 billion 100 80 60 60 40 Running start for accelerating long-term business growth 20 0 FY2020 Investing for growth while increasing profits 21#222017 Gurunavi, Inc. Gurunavi will continue evolving to create a gourmet lifestyle for the 21st century. (GOURMET NAVIGATOR#23Reference materials © 2017 Gurunavi, Inc. 23 23#24Japan's restaurant environment Current state of the Japanese restaurant industry Market size: JPY16 trillion in 2015, peaked in 1997 at JPY17 trillion GURUNAVI Four consecutive years of growth, backed by increasing spend per customer, increasing number of foreign visitors to Japan, increasing trend in corporate entertainment spending, etc. Source: Food Industry Research Institute, “Size of restaurant market." Institutional meals, bars, and night clubs are excluded. Number of restaurants: 510 thousand outlets in 2014, peaked in 1986 at 650 thousand outlets Sources: 1986 Business Census; 2014 Economic Census for Business Activity Competition between restaurants has intensified. Japan's population has entered into a decreasing phase. It is essential for restaurants not only to attract new customers, but also to develop repeat customers. Restaurants who successfully increased sales even within this challenging environment are those who improved the quality and range of their food and beverages. Source: July 2016 survey of Gurunavi member restaurants 2017 Gurunavi, Inc. 24#25Gurunavi's unique business model GURUNAVI Offer support through the establishment and integration of two solid business bases ① Restaurant support through IT-based business-support platform (online infrastructure) 2 Restaurant support through 1,000-person support structure (offline infrastructure) Restaurant visit Restaurant Own restaurant information 1 Membership fees Gurunavi Provide information Search for information (2 Internet users Promotion fees Promotion support Farmers & growers, Municipalities, Food manufacturers Related businesses 6.4% Promotions 2.7% Spot services Sales JPY36.9bn (FY2016) Cumulative retained services Restaurant promotion services: 90.8% 25#261,000-person support structure (offline infrastructure) • Providing advice on advertising and promotion and other issues facing member restaurants Member restaurant sales staff: 400 • Paying regular visits to member restaurants to answer questions and provide detailed support Visiting staff: 300 GURUNAVI 2013 MAR. ぐるなびのの 3 旬を味わう ・集客アップのための 看板製作術 春のごはんメニュー やっぱり 繁盛につながる • Monthly magazine for member restaurants sharing success stories Gurunavi Journal • Providing advice to member restaurants in difficulty • Call center staff have specific skills related to the restaurant industry Call center: 150 Growth drivers Foundation for future advances • Holding more than 3,000 lectures annually for restaurant managers and executives, focusing on case studies of success Gurunavi Academy: 50 Restaurant promotion business has become firmly establish among restaurants and with the exception of FY2011, when the industry was impacted by the Great East Japan Earthquake, sales have grown consistently. By utilizing this 1,000-person support structure it will be possible to rapidly develop new businesses in areas other than promotion support. 26#27(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 2017 Gurunavi, Inc. 39,559 40,984 43,085 43,374 45,548 46,247 47,650 Number of member restaurants ■Number of member restaurants (paid) 60,886 at the end of March 2017 GURUNAVI up by 3,919 from the end of March 2016 Great East Japan Earthquake 47,893 48,408 49,150 50,646 50,227 50,127 50,210 50,924 48,129 48,035 48,184 49,113 48,893 248,933 49,429 50,758 50,310 50,798 51,365 52,538 52,235 52,148 52,279 53,323 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 FY2007 FY2011 FY2012 FY2013 FY2014 FY2008 FY2009 FY2010 FY2015 FY2016 53,263 53,628 54,458 55,894 56,967 58,226 59,612 60,816 60,886 27#2832- 1 0 2017 Gurunavi, Inc. 4 00 6 5 5.34 55 5.43 User reach ■ Unique users per month ■Number of Gurunavi members : 61 million : 14.89 million *Unique users per month: Based on browser count *Gurunavi member: An individual who has registered for membership at Gurunavi Gurunavi members (million people) 15 54 14 13 32 12 11 10 9 8 7 5.68 5.88 5.95 6.01 6.21 6.41 6.56 6.70 6.85 6.96 2 7.05 7.19 7.54 8.02 2 8.45 8.59 8.96 9.26 2 9.41 99 68 In December 2016; 57 million users in December 2015 GURUNAVI As of April. 1, 2017; 13.97million members as of April. 1, 2016 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 FY2007 FY2013 FY2014 FY2008 FY2009 FY2010 FY2011 FY2012 FY2015 FY2016 10.04 10.61 10.92 10.33 11.33 11.80 2 12.09 12.38 12.67 12.97 13.23 13.46 13.73 13.97 14.20 14.42 14.65 14.89 28#29User overview User demographics by age Unknown, under20, 60 and 6.2% 1.2% above, 7.2% 50's, 14.0% 20's, 14.6% GURUNAVI User demographics by sex Women, 46.2% Men, 53.8% 30's, 31.5% 40's, 25.3% Source: Gurunavi member data ( In Mar. 2017) There is little gap between men and women among Gurunavi users, and the site is used by persons from a broad range of age groups. In addition, the results from a survey conducted by the company show that our users tend to select restaurants based on the menu and atmosphere, showing a high grade of customers who are not searching for discounts. 2017 Gurunavi, Inc. 29 29#30GURUNAVI Regional expansion and member restaurants 21 sales offices that provide services to local businesses across the country Percentage of member restaurants by region Hokuriku, 3.1% Head Office Hokkaido Sales Office Sendai Sales Office Ibaraki Sales Office Tochigi Sales Office (new) Saitama Sales Office Chiba Sales Office Yokohama Sales Office Shizuoka Sales Office Nagoya Sales Office Niigata Sales Office Kanazawa Sales Office Osaka Sales Office Kyoto Sales Office Kobe Sales Office Okayama Sales Office Hiroshima Sales Office Ehime Sales Office (new) Fukuoka Sales Office Kagoshima Sales Office Okinawa Sales Office Okinawa, 1.5% Chugoku, 3.4% Touhoku, 3.1% Hokkaido, 3.2% Kyushu, 5.6% Shikoku, 0.8% Chubu, 8.8% Kanto, 50.5% Kansai, 20.0% Percentage of member restaurants by restaurant type cafes, 2.0% bars/pubs, 2.5%. fast food, 2.0% dining bars/beer. restaurants, 2.4% Chinese, 5.4% Asian/BBQ/Ethnic. /fusion, 2.9% Japanese-style bar entertainments, 2.3% with Western, 0.2% Japanese-style bar with Asian/fusion, 0.2% Japanese, 33.3% western, 14.1% © 2017 Gurunavi, Inc. Japanese-style bar, 32.7% (In Mar. 2017) 30#31Sales and costs & expenses (JPY million) 40,000 Sales ■Related businesses Promotions Costs & Expenses (JPY million) 40,000 Cost of sales Advertising and promotion expenses Other expenses ■Business consignment expenses ■Rent expenses ■Personnel expenses 35,000 ■Spot services ■Cumulative retained services 2,381 35,000 1,007 2,214 2,638 989 2,761 30,000 2,529 30,000 750 2,786 1,847 924 2,323 1,698 25,000 25,000 1,298 921 1,033 1,670 1,772 1,529 1,820 1,062 1,076 1,008 1,138 20,000 20,000 831 827 1,006 GURUNAVI 8,832 8,626 8,683 7,817 6,114 2,773 5,191 5,096 2,363 2.458 5,398 3,037 2,718 4,575 589 15,000 668 839 30,951 2,272 15,000 3,989 28,883 2,150 3,542 4,185 27,277 1,393 4,191 4,485 25,109 2,658 4,242 1,295 22,490 2,562 4,003 2,331 21,091 4,004 2,169 10,000 20,313 20,431 10,000 1,904 1,565 1,218 3,769 1,879 1,366 1,471 1,173 17,346 1,115 1,100 1,326 1,252 1,116 3,137 1,133 13,505 1,283 1,227 5,000 5,000 1,058 779 1,097 7,438 7,190 7,833 8,313 8,867 9,510 9,833 6,279 5,109 4,025 0 0 FY2007 FY2008 FY 2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY 2016 2017 Gurunavi, Inc. FY 2007 FY 2008 FY 2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 31#32Quarterly sales data (consolidated) GURUNAVI Q1 Q2 Q3 Net sales (Unit: million yen) FY2013 FY2013 FY2013 Q4 FY2013 Q1 FY2014 Q2 Q3 FY2014 FY2014 Q4 Q1 FY2014 FY2015 Q2 Q3 Q4 FY2015 FY2015 FY2015 Q1 Q2 Q3 FY2016 FY2016 FY2016 Q4 FY2016 Cumulative retained services a 5,990 6,155 6,428 6,534 6,674 6,728 6,964 6,909 6,973 7,077 7,344 7,487 7,601 7,674 7,880 7,795 Spot services b 347 372 595 383 278 312 682 573 455 492 895 686 487 596 813 741 Restaurant promotion services C= a+b 6,338 6,528 7,024 6,917 6,953 7,041 7,647 7,482 7,429 7,569 8,240 8,173 8,088 8,271 8,693 8,536 Promotions d 101 177 201 444 128 161 177 282 152 213 307 315 155 189 262 399 e= Core businesses total 6,439 6,705 7,226 7,361 c+d 7,082 7,203 7,824 7,765 7,582 7,783 8,547 8,489 8,243 8,460 8,956 8,936 Related businesses f 633 625 824 703 566 744 829 620 493 494 632 594 520 508 676 676 g= Total 7,072 7,330 8,050 8,064 7,649 7,947 8,653 8,386 8,075 8,278 9,179 9,083 8,763 8,968 9,633 9,613 e+f Q1 Q2 Q3 Q1 Q2 Q4 (Unit: yen) FY2013 Q4 Q3 Q1 FY2013 FY2013 FY2013 FY2014 FY2014 FY2014 FY2014 FY2015 FY2015 FY2015 FY2015 FY2016 FY2016 FY2016 FY2016 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cumulative retained services h*1 revenue per restaurant(ARPU) 39,499 40,169 41,250 41,577 42,630 42,955 43,970 43,216 43,493 43,654 44,368 44,230 43,990 43,420 43,625 42,700 Restaurant promotion services revenue per restaurant(ARPU) i*2 41,792 42,599 45,069 44,014 44,411 44,951 48,276 46,804 46,335 46,690 49,780 48,283 46,811 46,793 48,126 46,763 *1) Cumulative retained services revenue per restaurant (ARPU): h=2/3*a/(jt-1+jt) *2) Restaurant promotion services revenue per restaurant (ARPU): i=2/3*c/(jt-1+jt) Number of member restaurants (Unit: restaurants) Q1 Q2 Q3 Q1 Q2 Q4 Q3 Q4 Q1 FY2013 FY2013 FY2013 FY2013 FY2014 FY2014 FY2014 FY2014 FY2015 FY2015 FY2015 FY2015 FY2016 FY2016 FY2016 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2016 Basic paying member restaurants j 50,798 51,365 52,538 52,235 52,148 52,279 53,323 53,263 53,628 54,458 55,894 56,967 58,226 59,612 60,816 60,886 Non-paying member restaurants k 71,364 70,458 71,317 74,076 73,795 74,438 75,531 77,039 76,834 77,287 77,098 81,826 81,529 83,182 82,466 87,019| © 2017 Gurunavi, Inc. 32 32#33Historical data (consolidated) (Unit: million yen) FY2007 FY2008 FY2009 FY2010 GURUNAVI FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Consolidated business results Net sales 15,602 20,011 24,175 25,238 24,302 27,265 30,518 32,636 34,617 36,979 Operating income 2,720 3,913 4,545 3,369 3,312 3,116 4,147 5,099 6,429 6,740 Ordinary income 2,742 3,984 4,578 3,406 3,375 3,153 4,167 5,127 6,492 6,813 Net income 1,505 2,259 2,323 1,813 1,909 1,959 2,420 3,279 4,367 4,799 Assets Liabilities. Net assets Total assets 10,709 12,929 15,309 19,653 16,951 19,103 22,071 23,665 27,322 23,917 Cash and deposits 4,371 4,711 5,531 10,398 7,548 7,399 9,448 10,492 13,131 7,922 Liabilities 2,906 3,191 3,895 8,519 4,381 5,005 5,926 6,201 7,026 5,878 Interest-bearing debt 4,500 Net assets 7,802 9,738 11,413 11,133 12,569 14,098 16,145 17,464 20,296 18,038 Equity 7,791 9,729 11,413 11,133 12,555 14,042 16,099 17,427 20,266 18,013 Per share data *1 Earnings per share Dividends per share(JPY) "1 *1 29.36 44.03 45.20 35.76 39.12 40.15 49.56 67.26 90.19 102.25 5.5 55 8.5 10 10 10 10 10 15 28 38 42.00 Other Operating margin(%) 17.4 19.6 18.8 13.4 13.6 11.4 13.6 15.6 18.6 18.2 Return on equity(%) 21.1 25.8 22.0 16.1 16.1 14.7 16.1 19.6 23.2 25.1 Operating income to total assets (%) 16.1 17.9 16.5 10.4 10.4 10.9 11.8 14.3 17.1 18.7 Payout ratio (%) 18.7 19.3 22.1 28.0 25.6 24.9 30.3 41.6 42.1 41.1 Shareholders' equity ratio (%) 72.8 75.2 74.6 56.7 74.1 73.5 72.9 73.6 74.2 75.3 Number of shares of treasury stock 2,779 2,779 2,779 15,854 1,585,400 1,585,400 1,503,649 266,059 216,459 1,924,559 Number of member restaurants (paid) 43,374 47,893 50,227 48,129 48,893 50,310 52,235 53,263 56,967 60,886 2017 Gurunavi, Inc. *1:Gurunavi implemented a 5-to-1 share split on April 1, 2011 and a 2-to-1 split pn April 1, 2014. Calculated on the assumption that these share split were conductedat the beginning of FY2007(April 1, 2007). 33#34Company profile as of the end of March 2017 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 GURUNAVI Capital Business description Directors Top 10 shareholders (as of September 30, 2016) Total Number of shareholders Number of total personnel Consolidated subsidiaries 2,334 million yen (Number of shares issued: 48,675,100 shares) Provision of internet-based advertising, marketing support and other support services to restaurants Representative director & Chairman: Hisao Taki Representative director & President: Seiichiro Kubo Directors: Hisao lizuka, Miho Saito, Kiyoshi Suzuki, Akihisa Fujita, Midori Kakiuchi, Teruhisa Yamada, Koichi Tsukihara, Yoichi Minami Hisao Taki 26.68%, Japan Traffic Culture Association 3.83%, The Master Trust Bank of Japan, Ltd. (trust account) 3.79%, State Street Bank and Trust Company 3.38%, Japan Trustee Services Bank, Ltd. (trust account) 3.12%, Odakyu Electric Railway Co, Ltd. 2.32%, Tokyo Metro Co., Ltd. 2.00%, Japan Trustee Services Bank, Ltd. (trust account 9) 1.94%, Mizuho Trust & Banking Co., Ltd. retirement benefit trust (Keihin Electric Express Railway account) re-trust trustees, Trust & Custody Services Bank, Ltd. 1.85%, Hiroko Taki 1.74% *Treasury shares 3.95% 9,361 Non-consolidated: 1,825 Consolidated: 2,099 Gurunavi Promotion Community, Inc. (100%), Gurunavi Shanghai, Inc. (100%) Gurunavi Research Institute, Inc. (100%), Gurunavi Support Associe, Inc. (100%) 2017 Gurunavi, Inc. 34#35Gurunavi, Inc. http://www.gnavi.co.jp/ 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, but for providing information on the results in the fiscal year ending March 31, 2017. The document has been prepared based on data available at the end of March 2017. 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.