Gurunavi : Consolidated Financial Results for 1Q FY2022

Translation

August 3, 2022

Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2023

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:	August 4, 2022
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 first quarter of the fiscal year ending March 31,

2023 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
		Net sales		Operating income	Ordinary income	Net income attributable
			to owners of parent
Three months ended	Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen	%
June 30, 2022	2,953	(2.7)	(1,027)		-	(1,006)	-	(844)	-
June 30, 2021	3,034	70.2	(1,363)		-	(1,337)	-	(1,353)	-
Note:	Comprehensive	income
	Three months ended June 30, 2022:	¥(816) million	[	-%]
	Three months ended June 30, 2021:	¥(1,336) million	[	-%]
		Basic earnings	Diluted earnings
		per share		per share
Three months ended		Yen			Yen
June 30, 2022	(16.04)		-
June 30, 2021	(28.84)		-
(2) Consolidated financial position
		Total assets	Net assets		Equity ratio		Net assets per share
As of		Millions of yen	Millions of yen		%		Yen
June 30, 2022		11,788		8,033		67.5		112.98
March 31, 2022		12,107		8,851		72.4		127.66
Reference:	Equity
	As of June 30, 2022:	¥7,951 million	As of March 31, 2022:	¥8,767 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, 2022
Fiscal year ending	-
March 31, 2023
Fiscal year ending
March 31, 2023		0.00	-	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, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

								Net income		Basic earnings
		Net sales	Operating income	Ordinary income	attributable to
		per share
								owners of parent
		Millions of		Millions of		Millions of		Millions of
		yen	%	yen	%	yen	%	yen	%	Yen
Six months ending	5,300	(13.2)	(2,500)	-	(2,500)	-	(2,330)	-	(43.76)
September 30, 2022
Fiscal year ending	12,800	(0.4)	(2,550)	-	(2,550)	-	(2,400)	-	(46.42)
March 31, 2023
Note:	Revisions to the	consolidated earnings	forecasts most recently announced: Yes

For details on the revisions to the consolidated earnings forecasts, please refer to "Notice regarding Revision of Interim and Full- Year Business Forecast for the Fiscal Year ending March 31, 2023" announced on this day (August 3, 2022).

* Notes

1. Changes in significant subsidiaries during the three 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: None
   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 June 30, 2022	56,124,500 shares
As of March 31, 2022	56,124,500 shares

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

As of June 30, 2022	1,128,462 shares
As of March 31, 2022	1,128,462 shares

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

Three months ended June 30, 2022	54,996,038 shares
Three months ended June 30, 2021	46,917,838 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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Cash dividends on class shares

The breakdown of per-share dividends on class shares with different shareholders' rights than for common shares is as follows.

Class A preferred shares			Annual dividends
First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	-	-	13.808	13.808
March 31, 2022
Fiscal year ending	-
March 31, 2023
Fiscal year ending
March 31, 2023		-	-	45.000	45.000
(Forecast)

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Quarterly consolidated financial statements

(1) Consolidated balance sheet

(Thousands of yen)

As of March 31, 2022

As of June 30, 2022

Assets

Current assets

Cash and deposits

Notes and accounts receivable - trade Accounts receivable - other

Other

Allowance for doubtful accounts

Total current assets

Non-current assets

Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets

Total assets

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

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

Foreign currency translation adjustment

6,962,974	6,764,835
2,661,470	2,283,429
740,092	643,349
467,176	531,459
(139,740)	(79,573)
10,691,973	10,143,500
-	310,464
-	125,209
1,415,841	1,209,439
1,415,841	1,645,112
12,107,815	11,788,613
99,579	31,082
34,151	6,391
239,077	262,119
19,849	13,916
1,302,249	1,007,170
48,795	129,334
1,040,262	1,850,997
350,349	270,784
3,134,315	3,571,795
119,444	155,964
2,195	26,950
121,640	182,915
3,255,955	3,754,710
100,000	100,000
8,745,596	8,745,596
2,929,632	2,085,489
(2,996,438)	(2,996,438)
8,778,790	7,934,646
(33,675)
(31,619)
22,718	48,708

Total accumulated other comprehensive income	(10,957)	17,088
Share acquisition rights	84,026	82,167
Total net assets	8,851,859	8,033,902
Total liabilities and net assets	12,107,815	11,788,613

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1. Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (cumulative)

		(Thousands of yen)
	Three months ended	Three months ended
	June 30, 2021	June 30, 2022
Net sales	3,034,405	2,953,119
Cost of sales	1,239,710	1,316,360
Gross profit	1,794,694	1,636,759
Selling, general and administrative expenses	3,157,952	2,664,387
Operating loss	(1,363,258)	(1,027,628)

Non-operating income

Gain on sales of supplies

Dividend income

Other

Total non-operating income

Non-operating expenses

Commitment fees

Other

Total non-operating expenses

Ordinary loss

Extraordinary income

Gain on reversal of asset retirement obligations Gain on sale of investment securities

Gain on reversal of share acquisition rights

Total extraordinary income

Extraordinary losses

Loss on cancellation of rental contracts Loss on valuation of investment securities

16,936	3,538
5,814	12,214
8,834	7,767
31,586	23,521
5,534	1,994
-	732
5,534	2,727
(1,337,205)	(1,006,834)
-	48,241
-	290,290
-	2,972
-	341,504
-	150,829
6,272	18,572

Total extraordinary losses	6,272	169,401
Net loss before income taxes	(1,343,477)	(834,732)
Income taxes	9,747	9,411
Net loss	(1,353,225)	(844,143)
Net loss attributable to owners of parent	(1,353,225)	(844,143)

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