Gurunavi : Notice regarding Upward Revision of Full-Year Business Forecast for FY2024 and Recording of Extraordinary Loss

For immediate release

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

Notice regarding Upward Revision of Full-Year Business Forecast

for the Fiscal Year ending March 31, 2025

and Recording of Extraordinary Loss

November 21, 2024 ̶Gurunavi, Inc. (the "Company") announces that the Company has revised up its consolidated full-year business forecast for the fiscal year ending March 31, 2025 as follows from those announced on November 1, 2024, in light of recent business performance.

In addition, the Company also announces that it expects to record extraordinary losses for the third and fourth quarters of the fiscal year ending March 31, 2025 as a result of the decision made at the Executive Committee held today to withdraw from some facilities in the restaurant development business and to reduce the number of employees at Gurunavi (Shanghai), Inc. as detailed below:

1. Upward revision of full-year business forecast

1. Revised consolidated full-year business forecast for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)

Net income

Basic

Operating

Ordinary

attributable

Net sales

income per

income

income

to owners of

share

parent

Forecast previously

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

announced (A)

14,250

240

180

150

0.74

New forecast (B)

14,250

240

180

200

1.63

Difference (B-A)

－

－

－

50

Rate of difference (%)

－

－

－

33.3

(Reference)

Results for the fiscal year

12,982

(339)

(277)

(363)

(8.98)

ended March 31, 2024

(2) Reasons for revision

The Company has revised up net income attributable to owners of parent as shown in (1) above in light of the recording of extraordinary income (gain on sale of investment securities) announced on November 6, 2024 and the recording of extraordinary loss described below.

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2. Details of extraordinary loss

(1) Loss on restaurant development business

The restaurant development business is a new business that aims to create bustling with "food" through the production of restaurant floors at commercial facilities. As of November 21, 2024, the Company operated eight facilities. In light of its expansion to a certain scale, in order to promote business operations with more profitability in mind, the Company decided to withdraw from some facilities after considering the status of recovery from the COVID-19 pandemic in each facility. As a result, the Company expects to record withdrawal-related expenses of approximately 56 million yen as extraordinary loss in the third quarter of the fiscal year ending March 31, 2025.

This partial withdrawal is aimed at improving the profitability of the restaurant development business in the next fiscal year and beyond, and will contribute to improving the Company's overall business performance.

(2) Loss on Gurunavi (Shanghai), Inc.

Gurunavi (Shanghai), Inc., which promotes Japanese cuisine and Japanese food culture in China, is promoting structural reforms aimed at improving profitability and strengthening its financial position, in order to restructure its existing businesses and develop new services. As part of this process, the Company decided to reduce the number of employees at Gurunavi (Shanghai), Inc. As a result, the Company expects to record economic compensation payments to six employees planning to retire of approximately 52 million yen as extraordinary loss in the fourth quarter of the fiscal year ending March 31, 2025.

For some of the retirees, the Company plans to enter into a business consignment agreement again and continue to engage in the business of Gurunavi (Shanghai), Inc.

(3) Outlook

The extraordinary loss is reflected in the full-year business forecasts for the fiscal year ending March 31, 2025 as described in 1. above.

The Company aims to transition to profit expansion phase in the fiscal year ending March 31, 2026, as outlined in the Medium-Term Business Policy, by improving profitability through the initiatives described in

(1) and (2) in 2 above.

The above forecasts are based on information available at the time of this announcement and are subject to a number of uncertainties. Actual results could differ materially from the above forecasts due to changes in business conditions and other factors.

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