Consolidated Financial Results for 2Q FY2021

Translation

November 4, 2021

Consolidated Financial Results

for the Second Quarter of the Fiscal Year Ending March 31, 2022

Name of the Listed Company:	Gurunavi, Inc.
Listed Stock Exchanges:	Tokyo Stock Exchange
Stock Code:	2440
URL:	https://corporate.gnavi.co.jp/en/
Representative:	Akio Sugihara, President and Representative Director
Contact:	Teruhisa Yamada, Senior Managing Executive Officer
	TEL: [phone]

Scheduled date to submit Quarterly Securities Report:	November 5, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:	Yes (for institutional investors and analysts)

(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for the second quarter of the fiscal year ending March

31, 2022 (from April 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Net sales		Operating income		Ordinary income		Net income attributable
				to owners of parent
Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
September 30, 2021	6,105	4.8	(2,170)	-	(2,176)	-	(2,240)	-
September 30, 2020	5,824	(61.6)	(4,939)	-	(4,927)	-	(5,446)	-

Note:	Comprehensive income
	Six months ended September 30, 2021: ¥(2,214) million	[	-%]
	Six months ended September 30, 2020: ¥(5,201) million	[	-%]
		Basic earnings	Diluted earnings
		per share	per share
Six months ended	Yen		Yen
September 30, 2021	(47.75)		-
September 30, 2020	(116.16)		-
(2)	Consolidated financial position
		Total assets	Net assets		Equity ratio		Net assets per share
As of	Millions of yen		Millions of yen		%	Yen
September 30, 2021	10,593		7,675		71.5	150.83
March 31, 2021	13,567		9,375		68.5	198.02
Reference: Equity
	As of September 30, 2021: ¥7,576 million	As of March 31, 2021:	¥9,290 million

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2. Cash dividends

				Annual dividends
		First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
		Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	0.00	-	0.00	0.00
March 31, 2021
Fiscal year ending	-	0.00
March 31, 2022
Fiscal year ending
March 31, 2022			-	0.00	0.00
(Forecast)
Note:	Revisions to the	cash dividend forecasts	most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

As it is difficult to make assumptions about the business environment on which the consolidated earnings forecasts are based, the consolidated earnings forecasts for the full year for the fiscal year ending March 31, 2022 are not determined.

Note:

Revisions to the consolidated earnings forecasts most recently announced: None

* Notes

1. Changes in significant subsidiaries during the six months under review (changes in specified subsidiaries resulting in change in scope of consolidation): None
2. Application of special accounting for preparing quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement of prior period financial statements after error corrections: None
5. Number of shares issued (common shares)
6. 1. Total number of shares issued at the end of the period (including treasury shares)

As of September 30, 2021	48,675,100 shares
As of March 31, 2021	48,675,100 shares

1. Number of treasury shares at the end of the period

As of September 30, 2021	1,757,262 shares
As of March 31, 2021	1,757,262 shares

1. Average number of shares during the period (cumulative from the beginning of the fiscal year)

Six months ended September 30, 2021	46,917,838 shares
Six months ended September 30, 2020	46,889,281 shares

• Quarterly financial results are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

Forward-looking statements, including the consolidated forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ materially due to various factors.

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Quarterly consolidated financial statements

(1) Consolidated balance sheet

			(Thousands of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
	Current assets
	Cash and deposits	7,507,254	4,866,604
	Notes and accounts receivable - trade	2,741,754	2,360,479
	Accounts receivable - other	1,154,849	740,545
	Other	842,395	567,526
	Allowance for doubtful accounts	(581,667)	(347,537)
	Total current assets	11,664,585	8,187,617
	Non-current assets
	Property, plant and equipment	-	53,588
	Intangible assets	-	617,273
	Investments and other assets	1,903,296	1,734,751
	Total non-current assets	1,903,296	2,405,614
	Total assets	13,567,882	10,593,231
Liabilities

Current liabilities

Notes and accounts payable - trade

Income taxes payable

Provision for bonuses

Provision for point card certificates

Accounts payable - other

Asset retirement obligations

Deposits received

Other

Total current liabilities

Non-current liabilities

Asset retirement obligations

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Deposits for subscriptions of shares

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income Valuation difference on available-for-sale securities

Foreign currency translation adjustment

143,539	55,565
57,599	5,486
247,272	245,046
158,979	30,563
1,482,069	1,040,018
111,738	26,160
1,675,578	984,588
147,280	361,866
4,024,059	2,749,294
167,531	167,885
900	900
168,431	168,785
4,192,490	2,918,080
2,334,300	100,000
-	500,147
2,884,780	5,119,080
8,745,156	6,505,047
(4,646,756)	(4,646,756)
9,317,480	7,577,518
(6,308)	(6,627)
(20,477)	5,863

Total accumulated other comprehensive income	(26,786)	(763)
Share acquisition rights	84,698	98,396
Total net assets	9,375,392	7,675,151
Total liabilities and net assets	13,567,882	10,593,231
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1. Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		September 30, 2020	September 30, 2021
Net sales	5,824,118	6,105,077
Cost of sales	3,466,933	2,450,866
Gross profit	2,357,184	3,654,211
Selling, general and administrative expenses	7,287,717	5,824,908
Operating loss	(4,930,532)	(2,170,696)
Non-operating income
Gain on sales of supplies	2,387	21,606
Dividend income	3,026	5,814
Other	8,257	15,469
Total non-operating income	13,671	42,890
Non-operating expenses
Commitment fees	9,384	48,539
Foreign exchange losses	1,720	583
Total non-operating expenses	11,105	49,122
Ordinary loss	(4,927,965)	(2,176,929)
Extraordinary income
Gain on sale of investment securities	92,500	-
Gain on sale of businesses	37,443	-
Total extraordinary income	129,943	-
Extraordinary losses
Loss on valuation of investment securities	117,322	54,057
Total extraordinary losses	117,322	54,057
Net loss before income taxes	(4,915,344)	(2,230,986)
Income taxes	531,140	9,121
Net loss	(5,446,485)	(2,240,108)
Net loss attributable to owners of parent		(5,446,485)	(2,240,108)

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Consolidated statement of comprehensive income (cumulative)

		(Thousands of yen)
	Six months ended	Six months ended
	September 30, 2020	September 30, 2021
Net loss	(5,446,485)	(2,240,108)
Other comprehensive income
Valuation difference on available-for-sale securities	256,801	(318)
Foreign currency translation adjustment	(12,159)	26,340
Total other comprehensive income	244,641	26,022
Comprehensive income	(5,201,843)	(2,214,086)
Comprehensive income attributable to:
Owners of parent	(5,201,843)	(2,214,086)

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