Gurunavi : Consolidated Financial Results for 1Q FY2023

Translation

August 1, 2023

Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2024

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, 2023
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,

2024 (from April 1, 2023 to June 30, 2023)

(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, 2023	2,586	(12.4)	(67)		-	(68)	-	(285)	-
June 30, 2022	2,953	(2.7)	(1,027)		-	(1,006)	-	(844)	-
Note:	Comprehensive income
	Three months ended June 30, 2023:	¥(282) million	[	-%]
	Three months ended June 30, 2022:	¥(816) million	[	-%]
		Basic earnings	Diluted earnings
		per share		per share
Three months ended		Yen		Yen
June 30, 2023	(5.80)		-
June 30, 2022	(16.04)		-
(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, 2023		10,595		6,614		61.7		86.07
March 31, 2023		13,001		6,898		52.5		89.08
Reference:	Equity
	As of June 30, 2023:	¥6,539 million	As of March 31, 2023:	¥6,821 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, 2023
Fiscal year ending	-
March 31, 2024
Fiscal year ending
March 31, 2024		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, 2024 (from April 1, 2023 to March 31, 2024)

							(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	5,600	(4.5)	(500)	-	(540)	-	(550)	-	(11.24)
September 30, 2023
Fiscal year ending	13,700	11.4	(700)	-	(750)	-	(770)	-	(16.55)
March 31, 2024
Note:	Revisions to the consolidated earnings forecasts most recently announced: Yes

* Notes

1. Changes in significant subsidiaries during the three months under review: 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, 2023	56,903,800 shares
As of March 31, 2023	56,903,800 shares

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

As of June 30, 2023	1,128,462 shares
As of March 31, 2023	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, 2023	55,775,338 shares
Three months ended June 30, 2022	54,996,038 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		Per-share dividends
First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	-	-	45	45
March 31, 2023
Fiscal year ending	-
March 31, 2024
Fiscal year ending
March 31, 2024		-	-	45	45
(Forecast)

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Quarterly consolidated financial statements

(1) Consolidated balance sheet

		(Thousands of yen)
	As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	8,266,468	6,888,292
Notes and accounts receivable - trade	2,871,526	1,625,562
Accounts receivable - other	813,708	772,892
Other	307,188	480,489
Allowance for doubtful accounts	(197,826)	(75,814)
Total current assets	12,061,065	9,691,421
Non-current assets
Property, plant and equipment	-	43,266
Intangible assets	-	132,344
Investments and other assets	939,941	728,552
Total non-current assets	939,941	904,163
Total assets	13,001,006	10,595,584
Liabilities
Current liabilities
Notes and accounts payable - trade	117,622	60,902
Income taxes payable	22,434	6,430
Provision for bonuses	178,311	95,036
Provision for point card certificates	15,829	17,583
Accounts payable - other	2,031,459	1,025,847
Deposits received	920,919	111,039
Other	370,478	209,010
Total current liabilities	3,657,055	1,525,850
Non-current liabilities
Long-term borrowings	2,200,000	2,200,000
Asset retirement obligations	158,920	169,317
Other	86,343	86,059
Total non-current liabilities	2,445,264	2,455,376
Total liabilities	6,102,319	3,981,227
Net assets
Shareholders' equity
Share capital	100,000	100,000
Capital surplus	9,045,626	9,045,626
Retained earnings	490,295	204,778
Treasury shares	(2,996,438)	(2,996,438)
Total shareholders' equity	6,639,483	6,353,966
Accumulated other comprehensive income
Valuation difference on available-for-sale	134,887	131,737
securities
Foreign currency translation adjustment	47,315	53,400
Total accumulated other comprehensive income	182,202	185,137
Share acquisition rights	77,000	75,253
Total net assets	6,898,687	6,614,357
Total liabilities and net assets	13,001,006	10,595,584

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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, 2022	June 30, 2023
Net sales	2,953,119	2,586,778
Cost of sales	1,316,360	851,321
Gross profit	1,636,759	1,735,457
Selling, general and administrative expenses	2,664,387	1,802,794
Operating loss	(1,027,628)	(67,337)
Non-operating income
Dividend income	12,214	2,000
Other	11,306	5,223
Total non-operating income	23,521	7,223
Non-operating expenses
Commitment fees	1,994	1,994
Interest expenses	233	5,536
Other	499	755
Total non-operating expenses	2,727	8,286
Ordinary loss	(1,006,834)	(68,400)
Extraordinary income
Gain on reversal of asset retirement obligations	48,241	-
Gain on sale of investment securities	290,290	-
Gain on reversal of share acquisition rights	2,972	2,128
Total extraordinary income	341,504	2,128
Extraordinary losses
Loss on cancellation of rental contracts	150,829	-
Loss on valuation of investment securities	18,572	212,815
Total extraordinary losses	169,401	212,815
Net loss before income taxes	(834,732)	(279,087)
Income taxes	9,411	6,430
Net loss	(844,143)	(285,517)
Net loss attributable to owners of parent	(844,143)	(285,517)

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