Gurunavi : Supplementary materials on the results for 1Q FY2020

INVESTOR PRESENTATION

Financial Results for the First Quarter of the Fiscal Year 2020

Gurunavi, Inc.（Stock Code : 2440）

Financial Highlights

• Significant decline in sales as a result of temporary suspension and exemption of membership fee payment to respond to the spread of COVID-19

• From June, member restaurants resume service usage and users returned to the Gurunavi site (p.5~7)
• Adapted to changes in the business environment, aiming business recovery and growth as a restaurant management support company (p.11~19)

Net sales	JPY	1,783 million	(76.4) % YoY
Operating loss	JPY	(3,824) million
Net loss attributable to owners of parent	JPY	(3,777) million
Basic loss per share (EPS)	JPY	(80.60)
Number of total paying member restaurants		51,640	(12.5) % YoY
	(At the end of June 2020)
Number of Gurunavi members who tie-up with Rakuten ID		2.66 million	109.6 % YoY
	(At the end of June 2020)

2

Consolidated income statement

（JPY million）

Net sales

Cost of sales

Gross profit

SG&A expenses

Operating income (loss)

Ordinary income (loss)

Net income (loss) before income taxes

Net income (loss) attributable to owners of parent

Q1 FY2019	Ratio to	Q1 FY2020	Ratio to	YoY
(Apr.-June)	sales	(Apr.-June)	sales	Change
7,551	100.0%	1,783	100.0%	(76.4)%
2,684	35.5%	1,738	97.5%	(35.2)%
4,867	64.5%	45	2.5%	(99.1)%
4,787	63.4%	3,869	217.0%	(19.2)%
80	1.1%	(3,824)	-	-
90	1.2%	(3,815)	-	-
90	1.2%	(3,767)	-	-
61	0.8%	(3,777)	-	-

3

Consolidated売上高内訳 sales breakdown

（JPY million）	Q1 FY2019	Q1 FY2020	YoY
(Apr.-June)(Apr.-June)
Net sales	7,551	1,783	(76.4)%
Restaurant promotion services	6,982	1,475	(78.9)%
Cumulative retained services	6,014	1,350	(77.5)%
Spot services	967	125	(87.1)%
Promotions	118	133	12.6%
Related businesses	451	174	(61.3)%

Cumulative retained services

• From April, due to the spread of COVID-19, measures such as suspension, reductions or exemptions, etc. were taken according to conditions of member restaurants.

Spot services

• Online reservation commission fees decreased significantly due to a decline in restaurant demand.

Related businesses

• Split of "Let's Enjoy Tokyo" business in September 2019 and business regarding food delivery service for corporations in January 2020.
• Implement measures of suspension in "LIVE JAPAN" business.

(JPY million)
10,000
9,000		534		634				461					Related businesses
8,000		513	600
	144	322	451	433	200	382
		174	314
7,000		751	1,166	999	118	179	1,511	293				Promotions
6,000			691		967	1,021	995
5,000													Spot services
4,000		6,778
3,000		6,417	6,385	6,300	6,014	5,978	6,093	5,823				Cumulative retained
		174
2,000												services
									133
1,000										125
									1,350
0
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
				FY2018				FY2019		FY2020

4

Impact of the spread of COVID-19

• Status of cumulative retained services

While the use of our services resumed from June onwards following their temporary suspension and exemption,

restaurants' business conditions were more severe than expected and there was an increase in the number of

cancellations due to financial difficulties.

We aim to recover the loss of contracts by introducing new services and other measures (see later slides for details).

Sales of cumulative retained services

Changes in number of total paying member restaurants

			Suspension and
			exemption
			measures
			June sales
			43% compared to March
			39% year on year
Mar.	Apr.	May	June

59,173
			51,640
Mar.	Apr.	May	June

Note: Restaurants which suspended operations are counted as paying member restaurants

5

Impact of the spread of COVID-19

• Status of cumulative retained services

Trends in number of member restaurants and ARPU（Image）

1 April - May

2 June onwards

3 Business recovery to growth (aim)

ARPU declined due to temporary suspension and exemption

Cancellations increased as a result of management difficulties at restaurants → no. of restaurants decreased

ARPU

ARPU recovered from temporary suspension and exemption

Increase in cancellations continues due to management difficulties of restaurants → no. of restaurants decreased

Introduce new services and expand sales area, aiming for a recovery of no. of restaurants and

ARPU

Before COVID-19

No. of member restaurants

6

Impact of the spread of COVID-19

• Status of online reservations

After cancellation of the emergency declaration, consumer demand for eating out began to gradually return, and the number of online reservations which dropped in April to 6% of the previous year's level recovered to 51% in June.

300

250

200

150

100

50

0

	Number of online reservations	YOY change in online reservations
FY2018			FY2019		FY2020	133%

(April 2018 = 100)

51%

6%

12%

Apr. May June

July

Aug. Sep.

Oct. Nov. Dec.

Jan.

Feb. Mar.

Jan.

Feb.

Mar.

Apr.

May

June

Q1

Q2

Q3

Q4

7

Consolidated cost breakdown

（JPY million）	Q1 FY2019	Q1 FY2020	YoY
(Apr.-June)	(Apr.-June)

Total cost		7,471	5,607	(24.9)%
Cost of sales		2,684	1,738	(35.2)%
SG&A			4,787	3,869	(19.2)%
Personnel expenses		2,415	2,018	(16.4)%
Rent expenses		493	501	1.6%
Business consignment expenses	414	285	(30.9)%
Advertising and promotion expenses	620	229	(63.1)%
Other			843	834	(1.1)%
(JPY million)
10,000
9,000
8,000
7,000	2,385		2,805	3,019
6,000	2,434		2,684
5,000	367	410	835	787	620
	1,267	1,208
4,000	981	946
843
	550	542	536
3,000	473	414
512	494	519
2,000	516	493
1,000	2,528	2,500	2,509	2,378	2,415
0
	Q1	Q2	Q3	Q4	Q1

FY2018

Cost of sales

• Reduced human resource-related cost and development cost as a result of work efficiency measures implemented in the previous fiscal year.
• In addition, content production cost and service operation cost decreased due to the temporary suspension of the use of services.

SG&A

• Personnel /business consignment expenses
  Costs reduced as a result of work efficiency measures implemented in the previous fiscal year.
• Advertising and promotion expenses
  Decrease expenses related to points program as a result of decrease in online reservations during state of emergency Limited advertisement for the promotion of services.

							Cost of sales
							Advertising and
	2,590						promotion expenses
2,464	2,397					Other expenses
1,085	1,738
695	885
229
			Business consignment
801	907	929
834			expenses
274	298	328	285
481	501	500	501			Rent expenses
2,292	2,167	2,031	2,018
Q2	Q3	Q4		Q1			Personnel expenses
	FY2019			FY2020

8

Consolidated balance sheets

• Strengthened financing means as preparation for the possible recurring waves of infection and the long-term effects of COVID-19
  Increased committed credit lines amounted to 12 billion yen from 6 billion yen

（JPY million）

Total current assets

Cash and deposits

Notes and accounts receivable-trade

Accounts receivable- other

Allowance for doubtful accounts

Other

Total non-current assets

Property, plant and equipment

Intangible assets

Investments and other assets

Total assets

As of Mar. 31,	As of June 30,
2020	2020
18,002	12,390
11,653	9,520
4,172	1,967
1,511	310
(205)	(296)
871	889
5,977	5,728
844	909
1,823	1,517
3,309	3,300
23,979	18,119

Change	（JPY million）
(5,611)	Total current liabilities
(2,132)	Accounts payable-
other
(2,205)	Income taxes payable
(1,200)	Provision for bonuses
(91)	Provision for point
card certificates
17	Other
(248)	Total non-current
liabilities
65	Total liabilities
(305)	Total net assets
(8)	Equity
(5,860)	Total liabilities and
net assets

As of Mar. 31,	As of June 30,	Change
2020	2020
4,449	2,623	(1,826)
2,154	1,312	(842)
505	37	(467)
587	306	(280)
209	171	(37)
993	795	(197)
259	147	(111)
4,709	2,770	(1,938)
19,270	15,348	(3,921)
19,211	15,283	(3,927)
23,979	18,119	(5,860)

9

FY2020 Consolidated forecasts

• Currently undecided

Since it is difficult to calculate a rational business outlook based on the impact on restaurants by COVID- 19 and new lifestyle during/post COVID-19, the consolidated forecasts for the fiscal year ending March 2021 are currently undecided.

The forecasts will be promptly disclosed when they become available.

10

Initiatives for recovery of business performance

• The risks and opportunities of our business as revealed by the spread of COVID-19

Risks

Opportunities

The market

for eating out

contracts

Structural

changes of restaurants

The effect of spread of COVID-19

• Expenditure for eating out down due to economic downturn and prolonged impact of COVID-19
• Decrease in eating out opportunities due to lifestyle changes
• Selection/reduction of restaurants
  ・・・
• Increase in business participation in prepared meals
• Changes in business region
• Need for operational efficiency
  ・・・

Concerns around

contraction of

existing businesses

centered on sales promotion support

Increase in demand

for business and

management

support

Future initiatives

1 Recovery of

existing businesses

Reliably capture consumer demand and send customers to member restaurants

Develop and strengthen services respond to the challenges of restaurants

Build a multi-faceted structure to support restaurants and diversify revenue sources

2 Create new sales

Accelerate remote working among our employees

3 Improve productivity,

reduce fixed costs

11

Initiatives for recovery of business performance

• Direction of Initiatives for recovery of business performance

Aim to recover and re-grow of business performance by recognizing that this is an opportunity to accelerate the evolution from a restaurant promotion support company to a management support company, which is our medium- term business policy.

1 Recovery of

existing businesses

Reliably capture consumer demand and send customers to member restaurants

Develop and strengthen services respond to the challenges of

restaurants

Build a multi-faceted structure to support restaurants and diversify revenue sources

2 Create new sales

3 Improve productivity,

reduce fixed costs

From a restaurant promotion support company to a management support company

Strengthening

profitability

Image of recovery of business performance

Sales

2

Fixed cost

3

1

Now

Time

12

Initiatives for recovery of business performance

(Reference) Changes required for restaurants during/post COVID-19

Various changes are required in restaurant management to meet consumer needs and lifestyles transformed by the spread of COVID-19

Consumer lifestyle changes	Reoccurring waves of infection,
during/post COVID-19
concerns over long-term impacts of COVID-19

New lifestyle patterns, rein in expenditure, change in area of activity etc.

	Target objectives for restaurants
Rebuild marketing plans	Diversification of sales channels	Strengthen communication
with consumers
Reduction of large-scale company	Continued demand for prepared meals
Effective information dissemination
parties and dinners	(delivery, takeout, e-commerce)
to regular customers
Infectious disease control,	Strengthen profitability
hygiene management
Operational optimization,	Maintain/improve service quality
Ensure social distancing,
fixed cost reduction
shift to contactless reception

13

Initiatives for recovery of business performance

(Reference) Status of member restaurants

In June, while some restaurants have continued to shorten business hours, the number of restaurants that resumed business increased. With the spread of COVID-19, the number of restaurants that start home meal replacement (particularly takeout/takeaway) is increasing.

Business status of member restaurants

Response for takeout/takeaway and delivery (as of June)

〈Takeout/Takeaway〉 〈Delivery〉

44.1%

7.6%

36.5%

11.7%

22.0%

28.5%

15.5%

7.6%	57.0%

52.0%	55.9%
3.9%

April Survey	June Survey
As usual		Shorten business hours			Suspension

15.8%

41.9%

	Already started before COVID-19		Start in response to COVID-19
	Under consideration		Not planned

*Web survey for member restaurants, April survey: conducted from April 24 to May 1 (n=229), June survey: conducted from June 22 to 29 (n=315)

14

Initiatives for recovery of business performance

• Develop/strengthen services in response to changes in challenges for restaurants

1	Recovery of existing	2	Create new sales
businesses

Introduce services essential for restaurants during/post COVID-19 flexibly and promptly

Supporting the management of a wide range of restaurants and lead to recovery and expansion of customer numbers and contract volume

• Introduce new service plans that package
  'immediately' essential support to restaurants

Diversification of sales channels

・Rakuten Realtime Takeout

・Gurunavi Takeout

Streamline customer/seat management

・Gurunavi ledger

Effective information dissemination

・Mail delivery agent service

・Creation and distribution of restaurant's video

• Expand business support services
  Multi-payment service "Gurunavi Pay"
  June 29 Five card brands added
  Can be used at various stores other than Gurunavi member restaurants

• Expand area of service providers

Launch supportive efforts for restaurants in areas without business offices that use agencies

• Expanding nationwide support for restaurant management centered

on ICT support for store operations

and agency services that are in high demand

Area without business office

15

Initiatives for recovery of business performance

• Build versatile restaurant support and diversify revenue sources (1)

2 Create new sales

Launch ordering support service for ingredients under national restoration policies

Revitalize food service industries, including producers, while expanding support for restaurants

• Launch of e-commerce website to connect restaurants, producers, and wholesalers nationwide impacted by COVID-19

Restaurants can purchase domestic ingredients and takeout/delivery packaging materials sold by domestic producers or on wholesale for up to half the regular cost

Leveraging know-how and networks built by this business

Mid-term vision

Restaurants (Orderer)

Further expand the network of member restaurants by expanding support areas

Efficiency by ICT

Build/expand network of producers etc.

Producer/Wholesaler/Distributor

(Supplier)

*Scheduled to operate until end of 2021/1, as part of policy of the Ministry of Agriculture, Forestry and Fisheries

Aim for full-scale entry into food ordering

support business

16

Initiatives for recovery of business performance

• Build versatile restaurant support and diversify revenue sources (2)

2 Create new sales

Aim for entry into leasing service that connects real estate companies and restaurants

Seek new profits from real estate and other businesses while expanding support for restaurants

Mid-term vision

		Business assets of Gurunavi
								Location introduction,
Database on	Network of	ICT	…
management support
eating out		restaurants	tools
		Analysis	Leveraging		Matching,
								rotation
Concept		Attracting	Floor
design	restaurants management …	Consulting and
								promotional support
		Creating bustling with "food"
		at commercial facilities

Restaurants

Real estate companies

Reduce hurdles in restaurant expansion Create branch opportunities for ambitious restaurants regardless of business scale

Creating bustling at commercial facilities by leveraging network of member restaurants and media power

17

Initiatives for recovery of business performance

• Capture consumer demand
  and send customers to member restaurants

1 Recovery of existing businesses

Reliably capture consumer demand for both eating out and prepared meals and send customers to member restaurants

Response to changes in challenges for restaurants by COVID-19

• Strengthen takeout service through partnership with Rakuten

Began partnership with Rakuten Realtime Takeout in July

Order/pre-pay via PC	Prepare the	Pick up at
or smart phone	foods	specified time

• Added information of hygiene-related efforts on restaurant page

（image）

Measures to continuously strengthen online reservations

• Continue to improve UI/UX → Increase CVR/login reservation rate

Better guide users to online reservations on restaurants pages

Promote logins on reservation forms

• Stimulate demand and promote online reservations through the Gurunavi site

Implement campaign with Rakuten Super Points as the hook

Number of Gurunavi members who tie-up

with Rakuten ID (cumulative)

(million people)

ID tie-up by new Gurunavi members

ID tie-up by existing Gurunavi members

		✓ Regrowth in no. of ID tie-ups from June
3.0						2.66 million people
2.5
2.0
1.5
1.0
0.5
0.0
Q3	Q4	Q1	Q2	Q3	Q4	Q1
	FY2018		FY2019		FY2020

18

Initiatives for recovery of business performance

• Improve value creativity and productivity, reduce fixed costs

3 Improve productivity,

reduce fixed costs

To prevent the spread of infection, continue to work remotely in principle from the end of February

Taking environmental changes as opportunities for evolution, aiming for a "new way of working" with the

aim of improving productivity and workability

Make remote working

the standard	Reduce office space
*excludes some sales offices and job	*Scheduled for end of Dec. 2020
categories
Expand support for construction and	Returned 3 floors of 5 floors of the
maintenance of work environment,
head office
such as provision of remote work
75% reduction in seats
subsidy

Rent reduction effect：0.4 billion yen per year

Make office coworking space

and open-seating

*Sequentially from Oct. 2020

Position office space as a place for

value co-creation

*Some costs will be incurred this year for the restoration of floors for which contracts are cancelled and repair of those which will continue to be used

19

Gurunavi will continue evolving to create

a gourmet lifestyle for the 21st century.

Reference materials

21

Number of member restaurants

FY2020 Q1

Number of total paying member restaurants

51,640

at the end of June 2020

*Including member restaurants with other fee type contract

down by 7,367 from the end of June 2019

Number of basic member restaurants with

48,144

at the end of June 2020

annual fixed fee

down by 8,365 from the end of June 2019

(Restaurants)

65,000

Basic member restaurants with annual fixed fee

60,000

Member restaurants with other fee type contract

55,000

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Q1

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

22

User reach

■ Unique user per month	： 56.00 million	In December 2019; 61.00 million users in December 2018

• Decreased year-on-year, affected by closing and transfer of related sites due to reorganization of businesses

■ Number of Gurunavi members ： 19.00 million	As of July 1, 2020; 17.57 million members as of July 1, 2019

Gurunavi members

(Million people)

18
16
14
12
10
8
6
4	7.05	7.19	7.54	8.02	8.45	8.59	8.96	9.26	9.41	9.66	10.04	10.33	10.61	10.92	11.33	11.80	12.09	12.38	12.67	12.97	13.23	13.46	13.73	13.97	14.20	14.42	14.65	14.89	15.12	15.36	15.79	15.86	16.05	16.25	16.77	17.18	17.57	17.96	18.50	18.85	19.00
2
0
Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1
		FY2010			FY2011			FY2012			FY2013			FY2014			FY2015			FY2016			FY2017			FY2018			FY2019		FY2020
			*Unique users per month: Based on browser count		*Gurunavi member: An individual who has registered for membership at Gurunavi

23

Quarterly sales data (consolidated)

		Net sales (Unit: JPY million)
		Cumulative retained services	a
		Spot services	b
			c=
	Restaurant promotion services
	a+b
	Promotions	d
		Core businesses total	e=
		c+d
		Related businesses	f
		Total	g=
		e+f
		(Unit: JPY)
Cumulative retained services	h *1
revenue per restaurant(ARPU)
Restaurant promotion services revenue	i	*2
per restaurant(ARPU) 1
Restaurant promotion services revenue	j	*3
per restaurant(ARPU) 2

		FY2017						FY2018						FY2019
Q1		Q2		Q3		Q4	Q1		Q2		Q3		Q4	Q1		Q2		Q3
7,518		7,346		7,443		7,225	6,778		6,417		6,385		6,300	6,014		5,978		6,093
604		710		1,198		861	751		691		1,166		999	967		1,021		1,511
8,123		8,056		8,641		8,087	7,530		7,108		7,552		7,299	6,982		6,999		7,605
152		195		266		403	144		174		322		314	118		179		200
8,276		8,252		8,908		8,490	7,674		7,282		7,874		7,614	7,100		7,178		7,805
515		516		631		635	534		513		634		600	451		433		461
8,791				9,539		9,126	8,209		7,795		8,509		8,214	7,551		7,611		8,267
	8,769
		FY2017						FY2018						FY2019
Q1		Q2		Q3		Q4	Q1		Q2		Q3		Q4	Q1		Q2		Q3
41,202		40,352		40,791		39,755	37,791		36,191		36,279		36,185	35,181		35,357		36,182
44,292		43,772		46,718		43,667	40,933		38,911		41,493		40,430	39,227		39,557		42,961
44,515		44,253		47,357		44,495	41,982		40,091		42,902		41,927	40,842		41,396		45,158

	FY2020
Q4	Q1
5,823	1,350

1. 125
   6,819 1,475

1. 133
   7,113 1,608

1. 174

7,495	1,783
	FY2020
Q4	Q1
34,797	8,687
38,449	8,878
40,747	9,492

*1) Sales of cumulative retained services devided by the average of number of basic member restaurants with annual fixed fee at previous and current quarter-endh=2/3*a/(lt-1+lt)
*2) Sum of sales of cumulative retained services and those of spot services devided by the average of number of total paying member restaurants at previous and current quarter-end	i=2/3*c/(kt-1+kt)
*3) Sum of sales of cumulative retained services and those of spot services devided by the average of number of basic member restaurants with annual fixed fee at previous and current quarter-end	j=2/3*c/(lt-1+lt)
	Number of member restaurants			FY2017				FY2018						FY2019
	(Unit: restaurants)		Q1	Q2		Q3	Q4	Q1	Q2		Q3	Q4		Q1		Q2		Q3
Total paying member restaurants	k=	61,383	61,328		61,986	61,482	61,157	60,629		60,712	59,660		59,007		58,951		59,067
l+m
	Basic member restaurants	l	60,770	60,606		61,045	60,123	59,452	58,747		58,608	57,465		56,509		56,210		56,067
	with annual fixed fee
	Paying member restaurants	m	613	722		941	1,359	1,705	1,882		2,104	2,195		2,498		2,741		3,000
	with other fee type contract
			86,536	86,679		87,665	86,607	88,078	89,927		89,584	91,405		90,345		81,586		75,763
Non-paying member restaurants	n

	FY2020
Q4	Q1
59,173	51,640
55,505	48,144
3,668	3,496
73,978	73,399

24

User overview

Users by age group

User composition by gender

Unknown

4.7%

Under 20

60 and above

9.7%

0.4%

20's

12.6%

50's30's

17.8%26.7%

40's

28.2%

Women Men

46.7% 53.3%

Source: Gurunavi member data （In June 2020）

25

Regional expansion and member restaurants

21 sales offices that provide services to local businesses across the country

Head Office	Kanazawa Sales Office
Hokkaido Sales Office	Osaka Sales Office
Sendai Sales Office	Kyoto Sales Office
Ibaraki Sales Office	Kobe Sales Office
Tochigi Sales Office	Okayama Sales Office
Saitama Sales Office	Hiroshima Sales Office
Chiba Sales Office	Ehime Sales Office
Yokohama Sales Office	Fukuoka Sales Office
Shizuoka Sales Office	Kagoshima Sales Office
Nagoya Sales Office	Okinawa Sales Office
Niigata Sales Office

Percentage of member restaurants(paid) by region

Shiokoku 1.3%

Chugoku 3.0%Okinawa 1.5%

Hokuriku 2.9%

Touhoku 2.9%

Hokkaido 2.4%

Kyushu 5.5%

Chubu 9.2%

Kanto 50.3%

Kansai 21.0%

Percentage of member restaurants (paid) by restaurant type

Other cuisine 6.5%

Cafes / Dessert Spots 2.0%

Chinese 3.5%

Asian BBQ / Teppanyaki 9.4%

Japanese 26.0%

Bars / Gastropubs 4.2%

Other Western 2.8%

Italian / French 9.3%	Izakaya (Japanese Pub)
	36.3%

* In June 2020

26

Sales and costs & expenses

Sales

(Million yen) 40,000

Costs & Expenses

(Million yen) 40,000

35,000

30,000

Related businesses

Promotions

Spot services

Cumulative retained services

2,323

			2,381	2,298
		2,214	1,007	1,018
		989	2,638		2,282
	2,761		3,374
2,786	750	2,529			956	1,729
				792
1,847
924				3,609
1,698						4,496

35,000

Cost of sales

Advertising and promotion expenses

Other expenses

Business consignment expenses

30,000

Rent expenses

Personnel expenses

8,832	10,142	10,645

25,000 1,298921

1,772 1,670 1,529

25,000

7,817

8,683

8,626

10,136

1,076 1,062

1,138

20,000

15,000

10,000 21,091 20,431

22,490

			30,951
		28,883	29,534
	27,277
		25,881
25,109
		23,909

20,000

5,191

6,114

5,096

2,718 3,037

2,458

2,363

2,773	2,697	2,400
	4,549	3,287
4,575	4,403

15,000 2,272

2,1504,185

4,485 4,191

3,989

		3,482
2,658	2,240	2,103

10,000

4,242

1,471

4,003

2,169

1,415 1,879 1,904 1,173

2,331

1,366

1,565	1,766	2,042	1,315
		1,976

1,252

1,133

1,116 1,106

5,000

0

5,000

0

7,438

7,190 7,833 8,313 8,867

9,510

9,833	10,086	9,916	8,906

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

27

Historical data (consolidated)

(Unit: JPY million)	FY2010	FY2011	FY2012	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019
			Consolidated business results
Net sales	25,238	24,302	27,265	30,518	32,636	34,617	36,979	36,226	32,728	30,927
Operating income	3,369	3,312	3,116	4,147	5,099	6,429	6,740	4,742	1,216	1,821
Ordinary income	3,406	3,375	3,153	4,167	5,127	6,492	6,813	4,809	1,289	1,894
Net income	1,813	1,909	1,959	2,420	3,279	4,367	4,799	3,192	581	949
			Assets・Liabilities・Net assets
Total assets	19,653	16,951	19,103	22,071	23,665	27,322	23,917	25,457	23,797	23,979
Cash and deposits	10,398	7,548	7,399	9,448	10,492	13,131	7,922	8,000	7,630	11,653
Liabilities	8,519	4,381	5,005	5,926	6,201	7,026	5,878	6,270	5,093	4,709
Net assets	11,133	12,569	14,098	16,145	17,464	20,296	18,038	19,186	18,704	19,270
Equity	11,133	12,555	14,042	16,099	17,427	20,266	18,013	19,166	18,662	19,211
				Per share data
Earnings per share *1	35.76	39.12	40.15	49.56	67.26	90.19	102.25	68.27	12.42	20.26
Dividends per share(JPY) *1	10	10	10	15	28	38	42	44	8	8
				Other
Operating margin(%)	13.4	13.6	11.4	13.6	15.6	18.6	18.2	13.1	3.7	5.9
Return on equity(%)	16.1	16.1	14.7	16.1	19.6	23.2	25.1	17.2	3.1	5.0
Return on assets(%)	10.4	10.4	10.9	11.8	14.3	17.1	18.7	12.9	2.4	4.0
Payout ratio(%)	28.0	25.6	24.9	30.3	41.6	42.1	41.1	64.5	64.4	39.5
Shareholders' equity ratio(%)	56.7	74.1	73.5	72.9	73.6	74.2	75.3	75.3	78.4	80.1
Number of shares of treasury stock	15,854	1,585,400	1,585,400	1,503,649	266,059	216,459	1,924,559	1,892,159	1,839,162	1,806,562
Number of member restaurants (paid)	48,129	48,893	50,310	52,235	53,263	56,967	60,886	60,123	57,465	55,505

*1:Gurunavi implemented a 100-to-1 share split on April 1, 2011 and a 2-to-1 split on April 1, 2014. Calculated on the assumption that these share split were conductedat the beginning of FY2010 (April 1, 2010).

28

Human support structure

A partner who works with restaurant managers with the aim of

expanding operations over the long-term

Providing advice on advertising and promotion and other issues facing member restaurants

Member restaurant sales staff

Paying regular visits to member restaurants to answer questions and provide detailed support

Visiting staff

Providing advice to member restaurants in difficulty	Sharing success stories and know-how to restaurant owners
Call center staff have specific skills related to the restaurant industry	through seminars and video distribution
Call center	Gurunavi Academy

29

Business Environment

• Number of restaurants

490 thousand outlets in 2016 (peaked at 650 thousand outlets in 1986)

*Sources: 1986 Business Census; 2014 Economic Census for Business Activity *Institutional meals, bars, and night clubs are excluded.

• Market size of the Japanese restaurant industry

(Trillion yen)

16

14

12

10

8

6

4

2

0

'89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17

*Source: Food Industry Research Institute; Size of restaurant market *Institutional meals, bars, and night clubs are excluded.

Increased for seven consecutive years due to an increase in foreign visitors to Japan and a rise in corporate entertainment spending

• Market size of online reservation in restaurant

（Trillion yen） 0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0

2014

2015

2016

2017

2018

2019

*The Ministry of Economy, Trade and Industry (METI); FY2019 International economic research project on building economic growth strategies in Japan and overseas (E-Commerce Market Survey)

14.3% increase year on year in 2019

30

Company profile as of the end of June 2020

Name	Gurunavi, Inc. （stock code: 2440）
Establishment	October 2, 1989 （incorporated）	February 29, 2000 （Gurunavi, Inc. established）
Head office	1-2-2, Yurakucho, Chiyoda-ku, Tokyo
Capital	2,334 million yen （Number of shares issued: 48,675,100 shares）
Business description	Web-based information provision relating to restaurants etc. using the platform of PC and smartphones etc.
Provision of support service associated with the management of restaurants etc. and other related business
	Chairman and Director : Hisao Taki
Directors	President and Representative Director ： Akio Sugihara
Outside Directors : Koichi Tsukihara (Independent Director), Hidehiko Sato (Independent Director),
	Hirohisa Fujiwara (Independent Director), Kazunori Takeda, Naho Kono
	Rakuten, Inc. 15.0%, Hisao Taki 12.7%, The Master Trust Bank of Japan, Ltd. (Trust account) 4.1%,
	Japan Traffic Culture Association 4.0%, Odakyu Electric Railway Co, Ltd. 2.4%,
	Japan Trustee Services Bank, Ltd. (Trust account) 2.2%, Tokyo Metro Co., Ltd. 2.1%,
Top 10 shareholders	J.P. MORGAN BANK LUXEMBOURG S.A. 1300000 2.0%,
Mizuho Trust & Banking Co., Ltd. retirement benefit trust (Keikyu Corporation account) re-trust trustees, Trust &
	Custody Services Bank, Ltd. 1.9%, Hiroko Taki 1.8%
	*The ratio of shareholding is calculated based on the total number of shares issued after deduction of treasury stock
	(1,806,562 shares).
Total Number of shareholders	12,809
Number of total personnel	Non-consolidated : 1,608 Consolidated : 1,824
Consolidated subsidiaries	Gurunavi Promotion Community, Inc. （100%）, Gurunavi (Shanghai), Inc. （100%）
Gurunavi Research Institute, Inc. （100%）, Gurunavi Support Associe, Inc. （100%）

31

Company information		Gurunavi IR contact information
https://corporate.gnavi.co.jp/en/		https://ssl.gnavi.co.jp/company/english/contact/

This document is not intended for offering investments in the securities issued by the Company. The document has been prepared based on data

Disclaimer available at the end of June 2020. The views and forecasts included in the document reflect judgments of the Company when the document was prepared.

The Company will not guarantee or ensure the accuracy and completeness of the information, which may be changed without prior notice.