Kakaku com : Results Briefing for the Third Quarter of the Fiscal Year ending March 31, 2020

Results Briefing

For FY2020/3 Q3

Operating Results and

Financial Position

Operating Results and Financial Position

(Unit：Million yen)

＋10.4％

yoy

＋12.3％

yoy

Operating Margin

＋11.7％

15,727

46.5％

yoy

＋10.4％

14,239

yoy

7,315

6,513

7,191

6,440

4,884

4,422

Revenue

Operatig Profit

Profit Before Income Taxes

Profit Attributable to Owners of

the Parent Company

FY2020/3 Q3

FY2019/3 Q3

3	©2020 Kakaku.com, Inc.

Operating Results and Financial Position (9 months)

(Unit：Million yen)

＋13.5％

yoy

Achievement Ratio

73.0％

	＋14.8％
	yoy
	Achievement Ratio
	78.2％
	Operating Margin
45,256	46.1％
39,884
	20,885	18,196

＋13.8％

yoy

Achievement Ratio		＋15.7％
	yoy
77.5％
		Achievement Ratio
		77.7％
20,534	18,048	13,979
	12,079

Revenue		Operating Profit	Profit Before Income Taxes	Profit Attributable to Owners of
						the Parent Company
		FY2020/3 (9 months)			FY2019/3 (9 months)

4	©2020 Kakaku.com, Inc.

Quarterly Consolidated Revenue and

Operating Expenses

Quarterly Consolidated Revenue by Business Segment

(Unit：Million yen)

*Figures in () are sales ratios

14,239	14,948	14,224	15,305	15,727
	6,236		6,101	5,999
	5,597	(38.2%)
5,885	(39.9%)
(41.7%)
(41.3%)		(39.3%)

6,370	6,330				6,313	6,494	7,048
			(42.4%)	(44.8%)
(44.7%)	(42.4%)				(44.4%)
1,985	2,383				2,313	2,710	2,680
(15.9%)				(16.3%)	(17.7%)	(17.0%)
(14.0%)
Q3			Q4			Q1	Q2	Q3
	FY2019/3					FY2020/3
			Kakaku.com			Tabelog			New Media and Solutions / Finance

6	©2020 Kakaku.com, Inc.

©2020 Kakaku.com, Inc.

Quarterly Consolidated Operating Expenses Breakdown

(Unit：Million yen)

965(186)

7,737

1,741

2,056

2,049

837

400

230

424

977(196)

8,074

2,004

2,015

2,067

843

394

229

521

1,028(231)

7,777

1,639

1,953

2,225

825

408

235

493

1,028(240)

8,200

1,766

2,146

2,199

841

419

236

593

1,058(243)

8,415

1,611

2,228

2,310

898

449

354

564

Q3

Q4

Q1

Q2

Q3

FY2019/3

FY2020/3

Advertising

Comissions (*1

Personnel Cost

Outsourcing

Depreciation

Rent

Other

No. of Employees (*2

*1) Commissions = Various commissions paid + Advertising agency commissions

*2) The number of regular employees, with the average number of temporary employees for each quarter shown separately in parentheses.

Breakdown of Expenses FY2020/3 Q3 (Oct - Dec): [Rent]: Rent for new office space 128mn, [Other] Recruiting 82mn and Server Maintenance 47mn, Supplies Expenses (due to office expansion) 25 mn.

7

Operating Results and Operational Progress By Business Segment

Operating Results by Business Segment

		Revenue	YoY	Revenue	YoY
		FY2020/3, Q3	9 months
(Unit：Million yen)
		5,999	＋2.0%	17,698	＋8.7%
Kakaku.com	Shopping	2,346	-2.7%	6,937	＋1.4%
Service	2,322	＋12.8%	7,250	＋16.7%
	Advertising	1,331	-5.8%	3,511	＋9.1%
		7,048	＋10.6%	19,855	＋10.2%
	Restaurant	5,649	＋12.7%	16,165	＋15.2%
Tabelog	Promotion
Premium	572	-19.3%	1,788	-19.2%
	Memberships
	Advertising	826	+27.2%	1,902	+6.8%
		2,680	＋35.0%	7,703	＋37.9%
New Media and	New Media and	2,109	＋36.0%	6,120	＋40.3%
Solutions / Finance	Solutions
	Finance	571	＋31.4%	1,582	＋29.2%

9	©2020 Kakaku.com, Inc.

Kakaku.com's Operational Progress

• Shopping business revenue showed strong growth for PCs, but declined for durable goods (mainly home appliances and electronics) and consumer goods.
• Advertising business revenue declined due to a decrease in banner advertising and advertorials placed by home appliances and electronics manufacturers.

Shopping：Revenue by category		Advertising：Revenue by category

-4.0%yoy

-11.8%yoy

-2.8%yoy

-4.5%yoy

+19.3% yoy

FY2019/3

Q3

FY2020/3

Q3

FY2019/3

Q3

FY2020/3

Q3

Consumer Goods

Durable Goods

Others

Network & Listing Ads

Banner & Tie-in Ads

10	©2020 Kakaku.com, Inc.

Kakaku.com's Operational Progress

• Service business revenue increased mainly for credit cards and card loans in the personal finance category.
• Kakaku.com Magazine monthly users surpassed 10 million owing to efforts to include more articles about credit cards and other financial services, in addition to home appliances and smartphones.

Service：Revenue			Kakaku.com Magazine：Monthly no. of
			users	＋26.8％
			(Unit: Million users)
			yoy
	10
	+38.3% yoy

				-6.7%yoy
				+10.6% yoy
				-4.9%yoy	0
		FY2019/3 Q3		FY2020/3 Q3	Dec 2018	Dec 2019
		Personal Finance		Telecommunictions
		Automobile		Moving Companies
		Other			11		©2020 Kakaku.com, Inc.

Tabelog's Operational Progress

• Fee-payingrestaurants came to 59,100 on the back of new sign-ups.
• Monthly revenue per restaurant rose to ¥32,000 due to growth in online reservation revenue.

Breakdown of fee-paying restaurants

(Unit：Thousand)

57.5 57.8 57.9 58.2 59.1

22.4 20.7 19.2 17.7 16.7

35.1 37.1 38.7 40.5 42.4

Dec	Mar	Jun		Sep	Dec
2018					2019
			New Plans		Old Plans

Average monthly revenue per restaurant by quarter

(Unit：Thousand yen)

32.0

	29.9	30.4
29.0	29.4

Q3

Q4

Q1

Q2

Q3

FY2019/3FY2020/3

12	©2020 Kakaku.com, Inc.

Tabelog's Operational Progress

• Number of seat reservations increased due to more restaurants accepting online reservations and a higher percentage of reservations made online.
• The advertising business profited from an increase in transactions with new advertisers.

Number of seat reservations

Advertising: Number of Advertisers

(Quarterly total)

＋16.7％

(Unit：Million seats)

+27.2％

yoy

yoy

11.37

8.94

8.12

8.74

9.01

Q3	Q4	Q1	Q2	Q3		Q3	Q4	Q1	Q2	Q3
FY2019/3		FY2020/3		13	FY2019/3		FY2020/3
									©2020 Kakaku.com, Inc.

New Media and Solutions / Finance's Operational Progress

• Revenue increased for both Kyujin Box and Time Design.
• Kyujin Box revenue increase driven by growth in monthly users and a higher customer referral rate.

Revenue Breakdown: New Media and

Kyujin Box: Monthly users and quarterly revenue

Solutions

webCG

Monthly users

＋91.5％

Revenue

-8.2%yoy

(Unit: Million)

＋2.2％

Time Design

yoy

qoq

+119.4% yoy

500

Kinarino

+21.6% yoy

Eiga.com

+20.9% yoy

4travel

250

-11.1%yoy

Gaie

-5.9%yoy

Kyujin Box

+152.8% yoy

0

LCL

Dec

Mar

Jun

Sep

Dec

Q3 Q4

Q1 Q2 Q3

+15.4% yoy

2018

2019

Sumaity

FY2019/3

FY2020/3

FY2019/3 3Q

FY2020/3 3Q

+39.1% yoy

14

©2020 Kakaku.com, Inc.

New Media and Solutions / Finance's Operational Progress

• In addition to income from rentals, Sumaity revenue grew in new areas such as real estate sales.
• The top page of the Kakaku.com Insurance website has been completely redesigned to improve user-friendliness.

Sumaity：Revenue		Kakaku.com Insurance: Top page renewal
	The list of insurance products that previously
+41.7% yoy	dominated the home page of the website has been
	replaced with more icons and less text so users can
	intuitively find what they are looking for.
	Before	After

+39.0% yoy

FY2019/3	Q3		FY2020/3	Q3
		Rentals		Real Estate Sales etc.	15	©2020 Kakaku.com, Inc.

Initiatives Going Forward

New Media and Solutions/Finance's Initiatives Going Forward

• We aim to increase number of users and raise user-friendliness by taking steps to improve service-specific functionality and provide more information.

Kyujin Box: Easier searching		Time Design: Enhanced system linkage

Information is the deciding factor for job seekers - an easy-to-read layout helps users find the right job much faster

We aim to expand partner hotels by increasing system partners, mainly reservation site controllers for accommodation facilities.

Initiative example	Shows walking time from
	nearest station to workplace
		5minutewalk from
		ShinagawaStation,Minat-ku

					More than 400
					"feature icons"
					No experience needed
					No transfer
* Other initiatives are described on pages 22-23	17

Expand partner hotels through increased

system linkage

This means hotel & airline package deal

reservations can be made on more official hotel websites

Official hotel websites

©2020 Kakaku.com, Inc.

Kakaku.com's Initiatives Going Forward

• In the shopping business, we will enhance user-friendliness by leveraging AI to process image data, thus improving the extraction and placement of optimal product images and accuracy of search results.
• In the service business, we aim to increase number of users by improving the functionality of categories currently in the growth stage.

Shopping: Leveraging AI to process image data

Optimization of product images

This process will exclude product images containing text, for example, and extract the best image for use as the featured image.

Image with text	Best image

Improving accuracy of color search

Color is currently detected from the middle of an image, but from now on,
the entire image will be used to determine a product's color.
Before	After

			18
Color determined range

Service: Main initiatives in each category

Mobile phones

Product comparisons are now easier with device, data charges, and other information/functions aggregated on the same page

Home loans

The complexities of different plans with differing interest rates and other conditions have been eliminated due to improvements to the pages presenting home loan plans

Used cars

Improvements have been made to used vehicle information and search functions; expanded content lets users compare approximate resale values of used cars

©2020 Kakaku.com, Inc.

Tabelog's Initiatives Going Forward

• We aim to create more opportunities for people to make use of online reservations and other services by enhancing functionality with better search accuracy, etc.

Enhanced search accuracy

Will make it easier to search restaurants based on desired criteria, such as all-you-can-drink plan pricing and the availability of private rooms.

Search by "Private Room"	Search by "All you can drink"
Vacant	PrivateRoom	All you candrink	Upto 3000yen
Tue.4/2/2020	7p.m. 4persons	Tue.4/2/2020	7p.m. 4persons

Enhancements to map-based search functions

The on-screen flow from restaurant search to completing a reservation has also been simplified.

Users can now recognize the type of establishment (bar, café, etc.) right on the map.

Restaurant A ・Private room: ○

・Only table seats available

Restaurant B ・Private room: ○

・Private room available

Restaurant C ・Private room: ○

・Semi-private room available

Restaurant A

・All you can drink: ○

・No plan under 3000 yen

Restaurant B

・All you can drink: ○ ・A plan for 3000 yen

Restaurant C

・All you can drink: ○

・Plans for 1000 yen and 2000 yen

Click on the "Reserve" button to

enter the number of people and reservation time.

Reserve

19	©2020 Kakaku.com, Inc.

Appendix

Business Divisions and Segments

Media Internet

Finance

Kakaku.com

Tabelog

New Media and

Solution /

Finance

Shopping		Service		Advertising
Commissionfromregisteredshops,		Commissionbased onthenumberof
		Advertisingrevenuefrombannerandtext
based onthenumber ofclicksandsales		contracts forpersonal financeand
		ads,contentandsearchbasedadvertising.
performance.		telecommunications etc.
【Clients】EC Malls and Shops,		【Clients】 Service Providers,		【Clients】Consumer
Electronics Retail Stores, etc.		etc.		Electronics Manufacturers, etc.

	Restaurant Promotion		Premium Memberships		Advertising
	Monthlyfeesforpromotionalservicesfor		Userfeesforaccesstopremiumcontent.		Advertisingrevenuefrombannerandtext
	restaurantsaswellascommissionsbased
			ads,contentandsearchbasedadvertising.
	ononlinereservations.
	【Clients】Restaurants		【Clients】Users		【Clients】Beverage companies,
			etc.
			New Media and Solution

Revenue generated by sites and service, such as Kyujin-box, Sumaity, Kinarino, Bus Hikaku Navi operated by LCL, Inc or Dynamic package reservation system developed by Time Design Co., Ltd.

Finance

Commission from general insurance business for life insurances and non-life insurance, etc.

operated by Kakaku.com Insurance, Inc.

21	©2020 Kakaku.com, Inc.

Kakaku.com Group Service Overview

Purchase support site [Kakaku.com]

Monthly No. of Users							59.46 million users
Users by
		34%											66%
Device
							PC						Smartphone
Users by	3%
11%	18%			23%		31%		14%
Age Group
	10-19		20-29			30-39		40-49		50-64		65 and over

Initiatives Going Forward

Working to enhance user-friendliness by improving content with the use of AI. Aiming to increase number ofusers by improving the functionality ofservice categories that are currently in a growth stage.

Job classifieds site [Kyujin Box]

Initiatives Going Forward

Making it easier for job seekers to find the right job from among many job listings by organizing information in an easy-to-read layout.

Insurance consulting service [Kakaku.com Insurance]

Initiatives Going Forward

Working to gain new policyholders and make switching between policies easier by expanding insurance products and improving chat functions.

Restaurant discovery and reservation site [Tabelog]

Monthly No. of Users			118.46 million users
Users by
15%					85%
Device
										PC				Smartphone
Users by
7%	17%	18%	23%			25%	10%
Age Group
	10-19			20-29			30-39		40-49		50-64		65 and over

Initiatives Going Forward

We aim to create more opportunities for people to make use of online reservations and other services by enhancing functionality with better search accuracy, etc.

Dynamic package reservation system [Time Design Co., Ltd.]

Initiatives Going Forward

Aiming to step up system linkage and increase partner hotels so users can book hotel & airline package deals on hotel websites.

Highway and overnight bus price comparison site [Bus Hikaku Navi]

Initiatives Going Forward

Aiming to increase number of users by providing more bus information.

22	©2020 Kakaku.com, Inc.

Kakaku.com Group Service Overview

Online residential real estate site [Sumaity]

Initiatives Going Forward

Working to expand scope of services by providing more property sales information and improving site functionality.

Online travel Information media [icotto]

Initiatives Going Forward

Making it easier for users to consider accommodation facilities based on their needs by increasing the number of articles on various topics.

Travel review and comparison site [4travel]

Initiatives Going Forward

Aiming to further enhance travel records by improving functions for users to post journal entries as well as holding photo contests and other events.

Purchase support site for Southeast Asia [priceprice.com]

Initiatives Going Forward

Aiming to increase number of users by providing more information about topics such as fashion, beauty, and cars, based on regional market characteristics.

Photo sharing community site:

Lifestyle media:

Town information media:

Online magazine for men's

Animation and Akihabara culture

Fashion: [TASCLAP]

information media : [Akiba souken]

[PHOTOHITO]

[Kinarino]

[CHIKU-WA]

FX and Exchange Rate

Cryptocurrency and Blockchain

Comparison site for the cheapest

Online media for bus trips, travel

Online information site for

related information site :

related information site

bus, airline and bullet train tickets

and sightseeing: [Bus Trip]

car lovers: [web CG]

[FX-rashiban]

[Kasotsuka-rashinban]

[Low price trips]

Online database for movies and

General information site

Horror movie streaming

Digital promotion agency for movies

showtimes [eiga.com]

for Anime [Anime-Hack]

service [OSORE ZONE]

[gaie, Inc.]

23	©2020 Kakaku.com, Inc.

Total Accumulated Traffic for Kakaku.com Group

• Total accumulated monthly traffic for all services of Kakaku.com as of December 2019, was 267.05 million average visitors, up 4.8% yoy.

300

200

100

0

icotto

Kyujin Box

TASCLAP

Kinarino

webCG

Eiga.com

Sumaity

4travel

Low Price Trips

Bus Hikaku Navi

Priceprice.com

Tabelog

Kakaku,com

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Other

2015

2016

2017

2018

2019

About monthly unique user counts

The number of monthly unique users is the number of browsers that visited the site, not the number of cumulative visits, during a month. We have measured monthly user numbers exclude overlapping users which occurs by the mobile webpage speed and mechanical access such as automatic collecting program by third parties.

24	©2020 Kakaku.com, Inc.

Consolidated Results

(Unit：Million Yen)
FY2017/3（JGAAP）	1Q	2Q	3Q	4Q	Full Year
Revenue / Revenue Ratio	10,464	11,379	11,405	11,840		45,089
Kakaku.com	4,958 / 47.4%	5,161 / 45.4%	5,396 / 47.3%	5,774 / 48.8%	21,287	/ 47.2%
Tabelog	4,389 / 42.0%	4,606 / 40.5%	4,843 / 42.5%	4,768 / 40.3%	18,608	/ 41.3%
New Media, etc.	1,117 / 10.6%	1,612 / 14.1%	1,165 / 10.2%	1,297 / 10.9%	5,192	/ 11.5%
Operating Profit	4,854	5,178	5,398	5,729		21,161
Operating Margin	46.4%	45.5%	47.3%	48.4%		46.9%
FY2018/3（IFRS）	1Q	2Q	3Q	4Q	Full Year
Revenue / Revenue Ratio	10,651	11,018	11,829	13,285		46,782
Kakaku.com	5,124 / 48.1%	5,142 / 46.7％	5,605 / 47.4%	6,101 / 45.9%	21,973	/ 47.0%
Tabelog	4,654 / 43.7%	4,909 / 44.5％	5,215 / 44.1%	5,369 / 40.4%	20,148	/ 43.0%
New Media, etc.	872 / 8.2%	967 / 8.8％	1,008 / 8.5%	1,815 / 13.7%	4,662	/ 10.0%
Operating Profit	5,100	5,392	5,700	6,684		22,876
Operating Margin	47.9%	48.9%	48.2%	50.3%		48.9%
FY2019/3（IFRS）	1Q	2Q	3Q	4Q	Full Year
Revenue / Revenue Ratio	12,513	13,132	14,239	14,948		54,832
Kakaku.com	5,181 / 41.4%	5,209 / 39.7%	5,885 / 41.3%	6,236 / 41.7%	22,510	/ 41.1%
Tabelog	5,701 / 45.6%	5,952 / 45.3%	6,370 / 44.7%	6,330 / 42.4%	24,352	/ 44.4%
New Media, etc.	1,631 / 13.0%	1,971 / 15.0%	1,985 / 14.0%	2,383 / 15.9%	7,970	/ 14.5%
Operating Profit	5,560	6,123	6,513	6,873		25,070
Operating Margin	44.4%	46.6%	45.7%	46.0%		45.7%
FY2020/3（IFRS）	1Q	2Q	3Q
Revenue / Revenue Ratio	14,224	15,305	15,727
Kakaku.com	5,597 / 39.3%	6,101 / 39.9%	5,999 / 38.2%
Tabelog	6,313 / 44.4%	6,494 / 42.4%	7,048 / 44.8%
New Media, etc.	2,313 / 16.3%	2,710 / 17.7%	2,680 / 17.0%
Operating Profit	6,448	7,121	7,315
Operating Margin	45.3%	46.5%	46.5%

25	©2020 Kakaku.com, Inc.

Company Profile

Company Name	Kakaku.com, Inc.
Address	3-5-7 Ebisu minami,
	Shibuya-ku, Tokyo 150-0022
Founded	December 1997
Website	https://corporate.kakaku.com/
Share Listing	The First Section of Tokyo Stock Exchange
Stock Code	2371
Related Companies	Kakaku.com Insurance, Inc.
	4travel, Inc.
	eiga.com, Inc
	Time Design Co., Ltd.
	webCG, Inc.
	LCL, Inc.
	gaie, Inc.
	Catapult Ventures Pte. Ltd.
	LoveBonito Holdings Pte. Ltd.
	TabSquare Pte. Ltd.

URL: https://kakakucom-insurance.co.jp/

URL: https://fortravel.jp/

URL: https://eiga.com/

URL: https://www.timedesign.co.jp/

URL: https://www.webcg.net/

URL: https://www.lclco.com/

URL: https://gaie.jp/

URL: https://www.moneysmart.sg/

URL: https://www.lovebonito.com/

URL: https://www.tabsquare.ai/

Note: Information and projections of future performance contained in this document include the Company's judgments premised on information available at the time of preparation and assumptions concerning uncertainties. They may differ from actual business performance and results due to a variety of factors.

26	©2020 Kakaku.com, Inc.