Gurunavi : Consolidated Financial Results for 3Q FY2020

Translation

February 3, 2021

Consolidated Financial Results

for the Third Quarter of the Fiscal Year Ending March 31, 2021

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:	February 4, 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 third quarter of the fiscal year ending March 31,

2021 (from April 1, 2020 to December 31, 2020)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
		Net sales		Operating income		Ordinary income	Net income attributable
				to owners of parent
Nine months ended	Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen	%
December 31, 2020	12,041	(48.6)		(6,250)		-	(6,217)	-	(6,486)	-
December 31, 2019	23,431	(4.4)		1,397	24.3	1,423	24.0	790	4.8
Note:	Comprehensive income
	Nine months ended December 31, 2020: ¥(6,391) million	[	-%]
	Nine months ended December 31, 2019:	¥720 million	[ (4.4%)]
		Basic earnings	Diluted earnings
		per share			per share
Nine months ended		Yen			Yen
December 31, 2020	(138.30)			-
December 31, 2019	16.89			16.88
(2) Consolidated financial position
		Total assets		Net assets		Equity ratio		Net assets per share
As of		Millions of yen		Millions of yen		%		Yen
December 31, 2020		24,890			12,744		50.9		269.99
March 31, 2020		23,979			19,270		80.1		409.90
Reference:	Equity
	As of December 31, 2020:	¥12,667 million	As of March 31, 2020:	¥19,211 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	-	4.00	-	4.00	8.00
March 31, 2020
Fiscal year ending	-	0.00	-
March 31, 2021
Fiscal year ending
March 31, 2021				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, 2021 (from April 1, 2020 to March 31, 2021)

(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
Fiscal year ending	15,800	(48.9)	(9,200)	-	(9,200)	-	(9,500)	-	(202.54)
March 31, 2021
Note:	Revisions to the consolidated earnings forecasts most recently announced: Yes

* Notes

1. Changes in significant subsidiaries during the nine 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 December	31, 2020	48,675,100 shares
As of March 31,	2020	48,675,100 shares

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

As of December	31, 2020	1,757,262 shares
As of March 31,	2020	1,806,562 shares

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

Nine months ended December 31, 2020	46,898,835 shares
Nine months ended December 31, 2019	46,836,649 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, 2020	As of December 31, 2020
Assets
	Current assets
		Cash and deposits	11,653,173	11,474,337
		Notes and accounts receivable - trade	4,172,261	3,862,906
		Accounts receivable - other	1,511,515	4,248,377
		Other	871,123	853,029
		Allowance for doubtful accounts	(205,621)	(477,593)
		Total current assets	18,002,452	19,961,057
	Non-current assets
		Property, plant and equipment	844,294	869,025
		Intangible assets
		Software	1,750,689	980,324
		Other	72,835	176,181
		Total intangible assets	1,823,525	1,156,505
		Investments and other assets	3,309,395	2,903,436
		Total non-current assets	5,977,215	4,928,967
	Total assets	23,979,668	24,890,024
Liabilities
	Current liabilities
		Notes and accounts payable - trade	153,667	164,873
		Income taxes payable	505,411	14,422
		Provision for bonuses	587,296	292,263
		Provision for point card certificates	209,520	184,199
		Accounts payable - other	2,154,388	7,660,655
		Deposits received	315,724	3,504,559
		Other	523,961	138,582
		Total current liabilities	4,449,971	11,959,557
	Non-current liabilities
		Asset retirement obligations	258,238	184,954
		Other	900	900
		Total non-current liabilities	259,138	185,854
	Total liabilities	4,709,110	12,145,412
Net assets
	Shareholders' equity
		Share capital	2,334,300	2,334,300
		Capital surplus	2,884,780	2,884,780
		Retained earnings	18,732,221	11,963,323
		Treasury shares	(4,777,121)	(4,646,756)
		Total shareholders' equity	19,174,181	12,535,647
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	65,015	161,846
		securities
		Foreign currency translation adjustment	(27,800)	(30,030)
		Total accumulated other comprehensive income	37,214	131,816
	Share acquisition rights	59,162	77,148
	Total net assets	19,270,557	12,744,612
Total liabilities and net assets	23,979,668	24,890,024
				- 3 -

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

		(Thousands of yen)
	Nine months ended	Nine months ended
	December 31, 2019	December 31, 2020
Net sales	23,431,370	12,041,910
Cost of sales	7,739,338	5,788,324
Gross profit	15,692,031	6,253,585
Selling, general and administrative expenses	14,294,050	12,503,762
Operating income (loss)	1,397,981	(6,250,177)
Non-operating income
Gain on sales of supplies	-	19,344
Subsidy income	6,361	3,588
Other	20,635	14,695
Total non-operating income	26,996	37,629
Non-operating expenses
Foreign exchange losses	1,461	4,961
Total non-operating expenses	1,461	4,961
Ordinary income (loss)	1,423,516	(6,217,509)
Extraordinary income
Gain on sales of investment securities	-	358,068
Gain on sale of businesses	-	37,443
Total extraordinary income	-	395,512
Extraordinary losses
Loss on valuation of investment securities	293,230	117,322
Total extraordinary losses	293,230	117,322
Net income (loss) before income taxes	1,130,286	(5,939,319)
Income taxes	339,449	546,792
Net income (loss)	790,836	(6,486,112)
Net income (loss) attributable to owners of parent	790,836	(6,486,112)

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