Gurunavi : Notice regarding Reduction in the Amount of Stated Capital and Capital Reserves

For immediate release

Name of Listed Company:	Gurunavi, Inc.
Listed Stock Exchanges:	Tokyo Stock Exchange
Stock Code:	2440
Representative:	Akio Sugihara, President

Notice regarding Reduction in the Amount of Stated Capital and Capital Reserves

May 12, 2021 ̶The board of directors of Gurunavi, Inc. (the "Company") ) today resolved to submit a proposal for reduction in the amount of stated capital and capital reserves to the 32nd Ordinary General Meeting of Shareholders scheduled on June 21, 2021 (the "General Meeting").

1. Purpose of reduction in the amount of stated capital and capital reserves

In order to ensure flexibility and mobility in future capital policies and to maintain a sound financial position in light of the impact of the recent spread of COVID-19 on the Company's business performance and financial position, the Company will reduce the amount of stated capital and capital reserves in accordance with the provisions of Article 447, Paragraph 1 and Article 448, Paragraph 1 of the Companies Act.

2. Detail of reduction in the amount of stated capital

(1) Amount of stated capital to be reduced

The amount of stated capital will be reduced by 2,234,300,000 yen from 2,334,300,000 yen to 100,000,000 yen.

(2) Method of reduction in the amount of stated capital

The total number of shares issued will not be changed, and the entire amount of reduced stated capital will be transferred to other capital surplus.

3. Detail of reduction in the amount of capital reserves

(1) Amount of capital reserves to be reduced

The entire amount of capital reserves of 2,884,780,625 yen will be reduced.

(2) Method of reduction in the amount of capital reserves

The entire amount of reduced capital reserves will be transferred to other capital surplus.

4. Schedule of reduction in the amount of stated capital and capital reserves

Date of the resolution by the board of directors	May 12, 2021
Date of the resolution by the General Meeting	June 21, 2021 (planned)
Deadline for filing of objections by creditors	July 29, 2021 (planned)
Effective date	July 30, 2021 (planned)

5. Outlook

As this capital reduction is a transfer of the capital between accounts in the net assets section of the balance sheet, it will not change the amount of net assets and will not give any impacts on the business performance. This matter is subject to approval at the General Meeting.