Gurunavi : Notice regarding Differences between FY2019 Interim Forecast and Financial Results and Revised Full-Year Forecast

For immediate release

Name of Listed Company:	Gurunavi, Inc.
Listed Stock Exchanges:	Tokyo Stock Exchange
Stock Code:	2440
Representative:	Akio Sugihara, President

Notice Regarding Differences between Interim Business Forecast and Financial Results for the Fiscal Year ending March 31, 2020 and Revised Full-Year Business Forecast

October 30, 2019 ̶ Gurunavi, Inc. (the "Company") announces differences between interim business forecast for the fiscal year ending March 31, 2020 (April 1, 2019 to September 30, 2019), announced on May 13, 2019 and the financial results announced today.

In addition, the Company announces that it has revised its consolidated full-year forecast for the fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020), in light of recent business performance.

1. Differences between interim forecast and financial results for the fiscal year ended March 31, 2020 (April 1, 2019 to September 30, 2019)

				Net income		Basic
		Operating	Ordinary	attributable
	Net sales		earnings per
	income	income	to owners of
				parent		share
Forecast previously	Million yen	Million yen	Million yen	Million yen		yen
announced (A)	14,400	(2,000)	(2,000)	(2,020)	(43.13)
Financial results (B)	15,163	681	700	484	10.34
Change (B-A)	763	2,681	2,700	2,504
Rate of change (%)	5.3	―	―	―
(Reference)
Interim results for the	16,004	1,030	1,042	672	14.37
fiscal year ended March
31, 2019

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2. Revised consolidated full-year forecast for the fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020)

				Net income		Basic
		Operating	Ordinary	attributable
	Net sales		earnings per
	income	income	to owners of
				parent		share
Forecast previously	Million yen	Million yen	Million yen	Million yen		yen
announced (A)	30,800	(3,500)	(3,500)	(3,550)	(75.80)
Revised forecast (B)	30,800	(2,000)	(2,000)	(2,050)	(43.77)
Change (B-A)	―	1,500	1,500	1,500
Rate of change (%)	―	―	―	―
(Reference)
Results for the fiscal	32,728	1,216	1,289	581	12.42
year ended March 31,
2019

3. Reasons for differences and revision

＜Interim results for the fiscal year＞

Online reservation commission fees and promotion business sales exceeded initial forecasts. Costs fell below initial forecasts significantly due to postponed execution of budget for advertising / sales promotional expenses to the second half and the advance fixed cost reduction ahead of schedule. As a result, each of profits turned into surplus from the initial deficit forecast.

＜Full-year forecast＞

Regarding net sales, no revision of the previously announced forecast shall be made after a careful review on the first half sales result and expected online reservation commission fee growth. In terms of costs, reduction of costs centering on fixed costs will be continued, but in addition to executing the budget postponed from the first half, additional costs are planned to invest with the aim of promoting strengthening measures based on the medium-term business policy. Considering these factors, each of profit forecasts shall be revised as shown in 2 above.

Important note

The above forecast is based on information available at the time of this announcement and is subject to a number of uncertainties. Actual results could differ materially from this forecast due to changes in business conditions and other factors.

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