Gurunavi : Supplementary materials on the results for 3Q FY2019

INVESTOR PRESENTATION

Financial Results for the Third Quarter of the Fiscal Year 2019

(April 1 - December 31, 2019)

Gurunavi, Inc.（Stock Code : 2440）

Financial Highlights

• Financial highlights for the first nine months of FY2019

Net sales	JPY	23,431 million	(4.4) % YoY
Operating income	JPY	1,397 million	24.3	% YoY
Operating income on net sales		6.0 %	1.4	pp YoY
Net income attributable to owners of parent	JPY	790 million	4.8	% YoY
Basic earnings per share (EPS)	JPY	16.89	4.7	% YoY
Number of all paying member restaurants		59,067	(2.7) % YoY
(Including member restaurants with other fee type contract)		(At the end of December 2019)
Number of basic member restaurants with annual fixed fee		56,067	(4.3) % YoY
	(At the end of December 2019)
Number of Gurunavi members		18.50 million	10.3	% YoY
	(As of January 1, 2020)

2

Full-year Consolidated Forecasts

• Full-yearforecasts revised upwards
  Full-scale structural reforms and upfront investment based on the medium-term business policy be postponed to the next fiscal year

	FY2018		FY2019
（ JPY million）		Q3		Full-year
Results	Results	Previous forecast	Revised forecast	Change
Net Sales	32,728	23,431	30,800	31,000	+200
Operating income	1,216	1,397	(2,000)	1,400	+3,400
				4.5%
Operating income on net sales	3.7%	6.0%	-	-
Ordinary income	1,289	1,423	(2,000)	1,440	+3,440
Net income attributable to owners of parent	581	790	(2,050)	790	+2,840
Basic earnings per share (JPY)	12.42	16.89	(43.77)	16.86	+60.63
Annual dividends (JPY)	8.00	-	8.00	8.00	-
Payout ratio	64.4%	-	-	47.4%	-

3

Financial Highlights and Full-year Consolidated Forecasts (1)

• Progress on initiatives for the recovery and regrowth of business performance continue under new management structure

1	Expense reductions to strengthen profit structure progressing faster than expected
2	To maximize results radical structural reforms and upfront investment be implemented
next fiscal year rather than quick short-term measures in the current year

Background

1

Background

2

Factors hindering flexible and rapid service development and improvement are scattered within the company

 Aging system  Lack of date accumulation and maintenance  Resource allocation  Human resource development, etc.

Present	Renewing internal systems and strengthening human resource strategies under medium-
situation	term business policy

Conclusion that implementing reforms with sufficient preparation is more effective

 Analysis and verification of current situation takes	 Short-term measures are less effective than expected
longer than expected
Present	Under preparation and coordination of operational aspects for prompt implementation of
situation	reforms next fiscal year

4

Financial Highlights and Full-year Consolidated Forecasts (2)

Image of profit trends
Thorough	Focus on regaining trustworthiness	Full recovery and growth
from our customers
expense reduction	of business performance
and strengthening business structure

Recovery

Image of profit trends from quick short-term measures

Structural reforms

&

upfront investment

FY2018

FY2019

FY2020

5

Financial Highlights and Full-year Consolidated Forecasts (3)

• Policy to prioritize structural reforms and investment over profit in the next fiscal year

Image of cost and investment

3 Considerflexibly further investment

Deferment of upfront investment to the next fiscal

2 year based on medium-term policy

1	Reduction in recurring costs
due to cost-cutting

Full recovery in business performance expected from the fiscal year after next

FY2018	Previous forecast		Revised forecast	FY2020
results		policy
	FY2019

6

Consolidated income statement

（JPY million）	Q3 FY2018	Ratio to	Q3 FY2019	Ratio to	YoY
(Apr.-Dec.)	sales	(Apr.-Dec.)	sales	Change
Net sales	24,513	100.0%	23,431	100.0%	(4.4)%
Cost of sales	7,625	31.1%	7,739	33.0%	1.5%
Gross profit	16,887	68.9%	15,692	67.0%	(7.1)%
SG&A expenses	15,763	64.3%	14,294	61.0%	(9.3)%
Operating income	1,124	4.6%	1,397	6.0%	24.3%
Ordinary income	1,148	4.7%	1,423	6.1%	24.0%
Net income before income taxes	1,125	4.6%	1,130	4.8%	0.4%
Net income attributable to owners of parent	754	3.1%	790	3.4%	4.8%

• Recorded an extraordinary loss of JPY 293 million in loss on valuation of investment securities

7

Consolidated sales breakdown

			（JPY million）		Q3 FY2018		Q3 FY2019	YoY		Cumulative retained services
				(Apr.-Dec.)		(Apr.-Dec.)
									• Contract reductions/cancellations remain low this quarter as measures
Net sales					24,513		23,431	(4.4)%		to expand the use of online reservations (enhancing customer referral
						capability) continued and proposals for business support services
	Restaurant promotion services			22,190		21,586	(2.7)%		• New orders remain at low level due to strengthening of proposals to
													member restaurants
	Cumulative retained services			19,581		18,086	(7.6)%		Spot services
	Spot services				2,609		3,500	34.2%		• Online reservation commission fees grew
	Promotions				641		498	(22.4)%		Related businesses
	Related businesses				1,681		1,346	(19.9)%		• Transfer of "Let's Enjoy Tokyo" business in September and business
						regarding food delivery service for corporations scheduled in January
(JPY million)
10,000				631															Related businesses
9,000				635
	515	516	266
					403
8,000		152	195	1,198		534			634	600				461
			604	710			861				322				200
								144	513		314		451	433				Promotions
7,000								751	174	1,166	999		118	179	1,511
											691			967	1,021
6,000
5,000																				Spot services
4,000		7,518	7,346	7,443	7,225
3,000		6,778	6,417	6,385	6,300		6,014		6,093			Cumulative retained
								5,978
2,000																				services
1,000
0
	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2	Q3
				FY2017						FY2018				FY2019

8

Consolidated cost breakdown

	（JPY million）	Q3 FY2018	Q3 FY2019	YoY	Cost of Sales
	(Apr.-Dec.)	(Apr.-Dec.)
			• Expenses increase with increased use of business support services
Total cost	23,389	22,033	(5.8)%
(advertisement placement agency service, etc.)
	Cost of sales	7,625	7,739	1.5%	SG&A
	SG&A	15,763	14,294	(9.3)%	• Personnel expenses／Business consignment expenses
	Personnel expenses	7,537	6,875	(8.8)%	As a result of focusing resources on restaurant support business and
	improving business efficiency, recruitment activities were reviewed and
	Rent expenses	1,525	1,476	(3.2)%	in-house production progressed, resulting in a reduction in
		1,629	987		personnel-related costs
	Business consignment expenses	(39.4)%	• Advertising and promotion expenses
	Advertising and promotion expenses	1,613	2,401	48.9%	Expenses for promoting online reservation use increased
	Other	3,457	2,552	(26.2)%	Expenses related to points program increased due to the increase in the
	number of online reservations

(JPY million)

10,000														Cost of sales
9,000
8,000														Advertising and
7,000			2,682				2,805
		2,786	2,385		3,019						promotion expenses
6,000	2,252	2,420			2,434		2,684		2,590			Other expenses
	654		835		2,464
5,000	474	460	1,108	367	410	787
	620		1,085			Business consignment
	1,103		1,304	1,267	1,208	695
4,000	974	1,166	981	946
843				expenses
	565	528	544	602	550	542	536	801	907
3,000	473	414
412	402	548	512	494	519	274	298			Rent expenses
2,000	403	516	493	481	501
1,000	2,582	2,557	2,474	2,472	2,528	2,500	2,509	2,378	2,415	2,292	2,167			Personnel expenses
0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
		FY2017			FY2018			FY2019

9

Consolidated balance sheets

（JPY million）	As of Mar. 31,	As of Dec. 31,	Change	（JPY million）	As of Mar. 31,	As of Dec. 31,	Change
2019	2019	2019	2019
Total current assets	14,603	17,819	3,215	Total current liabilities	4,779	5,152	373
Cash and deposits	7,630	9,969	2,339	Accounts payable-	2,416	2,747	330
other
Notes and accounts	4,536	4,546	10	Income taxes payable	168	125	(43)
receivable-trade
Accounts receivable-	1,636	2,012	376	Provision for bonuses	709	300	(409)
other
Allowance for doubtful	(298)	(201)	97	Provision for point	328	214	(114)
accounts	card certificates
Other	1,099	1,491	391	Other	1,155	1,765	609
Total non-current	9,194	6,737	(2,456)	Total non-current	314	258	(55)
assets	liabilities
Property, plant and	1,163	915	(247)	Total liabilities	5,093	5,411	317
equipment
Intangible assets	3,950	2,311	(1,638)	Total net assets	18,704	19,145	441
Investments and
4,080	3,510	(569)	Equity	18,662	19,091	428
other assets
Total assets	23,797	24,557	759	Total liabilities and	23,797	24,557	759
net assets

10

Progress of measures to expand use of online reservations (1)

Online reservations per month

		FY2017		FY2018		FY2019
(April 2017 = 100)
				October 2018
							Started Rakuten ID tie-up

350

300

250

200

150

100

50

0

Apr.	May	Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.	Mar.
	Q1			Q2			Q3			Q4

11

Progress of measures to expand use of online reservations (2)

Restaurants that award reservation points			Number of ID tie-up (Accumulation)
	(million people)
(restaurants)
				ID tie-up by new Gurunavi members
				ID tie-up by existing Gurunavi members

Approximately

30,000 restaurants

30,000

	Approximately
3.0	2.1 million people

20,000

2.0

10,000

1.0

0

0.0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

3Q

4Q

1Q

2Q

3Q

4Q

FY2018

FY2019

FY2018

FY2019

12

Progress of measures to expand use of online reservations (3)

• Measures have just begun. Considerable room for expansion in online reservations

Progress in Q3

The number of restaurants that award reservation points / offer immediate reservations steadily increased

Enhance

Improve vacant seat

• Enhanced promotion and support by human support structure
• Launched app version of Gurunavi ledger to expand support for reducing workload of reservation and seat management

reservation

information

Future plans

Aiming to improve conversion rate with the improvement of quantity and quality of vacant seat information

conversion

rate

Improve

user interface

• Further expansion of restaurants that award reservation points / offer immediate reservations
• Expand vacant seat information in areas, hours and category where user needs are high

Progress in Q3 Improved the route to online reservation mainly at restaurant pages

• Contribution to conversion rate improvement was below expectation

Future plans

Thorough analysis of user behavior and continuous improvement

Expand	Expand
tie-ups
inflow

Increased awareness due to advertising and campaign in the

Progress in Q3	year-end party season

• Members who tie-ups user identifier exceed target

with Rakuten

Future plans

Focus on advertising spending and collaboration with Rakuten while monitoring conversion rate

13

Topics: Leveraging online reservations for restaurants (1)

Strategies to Sustain and promote Japan's vibrant food culture

• Environment and issues surrounding leveraging online reservations for restaurants

＜Restaurant management environment＞

Intensifying labor	Diversifying sales
shortages	promotion methods

● ● ●

Benefits of using online reservations

Accept reservations	Increases opportunities to
regardless of time of day
attract customers using
＝Reduces burden of
various media
handling phone calls

Issues of using online reservations

Constantly		Risk of
fluctuating vacancy	Burden of media
cancellations
＝Complicated	updates
without notice
seat management

One day of a restaurant（example）

Average values at member restaurants from January 2019 to December 2019

Time allotted for media updates

Outside business hours		Lunch			Dinner

Time zone for telephone inquiries

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

（a.m.）（p.m.）

Time zone for online reservations

0	1	2	3	4	5	6	7	8	9	10 11 12	1	2	3	4	5	6	7	8	9	10 11
（a.m.）									（p.m.）

Providing support services that leverage our unique business assets

to solve the issues restaurants face

14

Topics: Leveraging online reservations for restaurants (2)

• Support services that leverage our unique business assets

Strategies to Sustain and promote Japan's vibrant food culture

media media

AB

Gurunavi	Official website	Google My Business	Other media	Phone

Media update agency service

• Gurunavi staff centrally manages not only updates to the Gurunavi website but also to other media
• Optimize overall dissemination of restaurant information to maximize customer attraction and reservations

Reservation management agency service

• Gurunavi staff centrally manages telephone reservations, and online reservations via Gurunavi as well as other online media
• Prevent cancellations without notice by confirming reservations over the phone

Sales

increase

Provide comprehensive service by leveraging our unique expertise and data in the field of restaurant promotion

Continue to expand services that contribute to solving issues restaurants face

Realize our future vision of "Growing together with restaurants"

15

Gurunavi will continue evolving to create

a gourmet lifestyle for the 21st century.

Reference materials

17

Progress of measures to expand use of online reservations (Reference)

Gurunavi ledger (reservation and customer management system) contacts

Approximately 5,800

November 2019 Launched app version

Oct. Nov. Dec. Jan. Feb. Mar.	Apr. May Jun.	Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.	Apr. May Jun.	Jul. Aug. Sep. Oct. Nov. Dec.
FY2017		FY2018		FY2019

18

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)

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0

2014

2015

2016

2017

2018

*The Ministry of Economy, Trade and Industry (METI); FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey)

41.6% increase year on year in 2018

19

Gurunavi's unique business model

• Offer support through the establishment and integration of two solid business bases

1. Restaurant support through IT-basedbusiness-support platform (online infrastructure)
2. Restaurant support through human support structure (offline infrastructure)

	Restaurant			Related business：7.0％
			Promotions：2.9％
Own
restaurant
information	Membership	2
1	fees		Spot
			Promotion fees	services
			Farmers & growers,	Sales
			JPY32.7bn
Restaurant			Municipalities,
visit			Food manufactures	(FY2018)
Provide			Promotion support
information
	Search for			Cumulative retained
information			services
	Internet users			Restaurant promotion services：90.1％

20

Human support structure (offline infrastructure)

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	Holding more than 3,000 lectures annually for restaurant
Call center staff have specific skills related to the restaurant industry	managers and executives, focusing on case studies of success
Call center	Gurunavi Academy

Implement PDCA cycle to identify and solve restaurant issues

Utilizing all of our strengths to provide versatile restaurant support

21

Number of member restaurants

FY2019 Q3

Number of all paying member restaurants	59,067	at the end of December 2019
*Including member restaurants with other fee type contract	down by 1,645 from the end of December 2018
Number of basic member restaurants with	56,067	at the end of December 2019
annual fixed fee	down by 2,541 from the end of December 2018

(Restaurants)

65,000

60,000

55,000

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Basic member restaurants with annual fixed fee

Member restaurants with other fee type contract

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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

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 ： 18.50 million	As of January 1, 2020; 16.77 million members as of January 1, 2019

Gurunavi members

(Million people)

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

0

5.34	5.43	5.68	5.88	5.95	6.01	6.21	6.41	6.56	6.70	6.85	6.96	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
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 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3
	FY2007		FY2008		FY2009		FY2010		FY2011		FY2012		FY2013		FY2014		FY2015		FY2016		FY2017		FY2018	FY2019

*Unique users per month: Based on browser count

*Gurunavi member: An individual who has registered for membership at Gurunavi

23

User overview

Users by age group	User composition by gender
Unknown	Under 20
4.9%	0.5%

60 and above

9.1%

20's

13.1%

50's	30's	Women	Men
17.2%
53.4%
	27.9%	46.6%

40's

27.4%

Source: Gurunavi member data （In December 2019）

There is little gap between men and women among Gurunavi users, and the site is used by persons from a broad range of age groups.

In addition, the results from a survey conducted by the company show that our users tend to select restaurants based on the menu and atmosphere, showing a high grade of customers who are not searching for discounts.

24

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 1.2%

Chugoku 3.1% Okinawa 1.5%

Hokuriku 2.9%

Touhoku 2.8%

Hokkaido 2.6%

Kyushu 5.5%

Chubu 8.7%	Kanto 50.8%
Kansai 20.8%

Percentage of member restaurants (paid) by restaurant type

Other cuisine 6.7%

Cafes / Dessert Spots 2.0%

Chinese 3.5%

Asian BBQ / Teppanyaki 9.0%

Japanese 25.4%

Bars / Gastropubs 4.3%

Other Western 2.7%

Italian / French 8.9%	Izakaya (Japanese Pub)
	37.5%

* In December 2019

25

Sales and costs & expenses

Sales

Costs & Expenses

(Million yen) 40,000

(Million yen)

40,000

35,000

Related businesses

Promotions

Spot services

	2,381	2,298
	1,007
2,214	1,018

		Cost of sales
35,000		Advertising and promotion expenses
	Other expenses

30,000			Cumulative retained services
						2,786
							924
25,000						2,323	1,698
			1,298		921
	1,033
	1,772	1,670	1,529
	1,820
	1,076	1,062
	1,008	1,138
20,000
15,000
							25,109
				21,091		22,490
10,000	20,313	20,431
5,000

	989	2,638		2,282
2,761		3,374
750	2,529			956

1,847	3,609

28,883 30,951 29,534

27,277

25,881

			Business consignment expenses
30,000			Rent expenses
			Personnel expenses				8,832	10,142	10,645
25,000
								8,683	8,626
							7,817
						6,114
20,000				5,191						2,773	2,697	2,400
				5,096				2,363
							2,458
	5,398			2,718	3,037
					4,575	4,549	4,403
				2,272
15,000				2,150				3,989
						4,185
	1,393				4,191
			4,485			2,658	2,240	2,103
				4,242	4,003			2,331
						2,169
	4,004						1,766	2,042
				1,904	1,366	1,565
10,000			1,879
			1,471	1,415	1,173
					1,106
	1,326	1,252	1,116
	1,133
	1,227
5,000						7,833	8,313	8,867	9,510	9,833	10,086	9,916
				7,438	7,190
	6,279

0

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

0

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

26

Quarterly sales data (consolidated)

		Net sales (Unit: JPY million)			FY2016				FY2017				FY2018				FY2019
			Q1	Q2		Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2	Q3
		Cumulative retained services	a	7,601	7,674		7,880	7,795	7,518	7,346		7,443	7,225	6,778	6,417		6,385	6,300	6,014	5,978	6,093
		Spot services	b	487	596		813	741	604	710		1,198	861	751	691		1,166	999	967	1,021	1,511
	Restaurant promotion services	c=	8,088	8,271		8,693	8,536	8,123	8,056		8,641	8,087	7,530	7,108		7,552	7,299	6,982	6,999	7,605
	a+b
	Promotions	d	155	189		262	399	152	195		266	403	144	174		322	314	118	179	200
		Core businesses total	e=	8,243	8,460		8,956	8,936	8,276	8,252		8,908	8,490	7,674	7,282		7,874	7,614	7,100	7,178	7,805
		c+d
		Related businesses	f	520	508		676	676	515	516		631	635	534	513		634	600	451	433	461
		Total	g=	8,763	8,968		9,633	9,613	8,791	8,769		9,539	9,126	8,209	7,795		8,509	8,214	7,551	7,611	8,267
		e+f
		(Unit: JPY)			FY2016				FY2017				FY2018				FY2019
			Q1	Q2		Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2	Q3
Cumulative retained services	h *1	43,990	43,420		43,625	42,700	41,202	40,352		40,791	39,755	37,791	36,191		36,279	36,185	35,181	35,357	36,182
revenue per restaurant(ARPU)
Restaurant promotion services revenue	i *2	-	-		-	-	44,292	43,772		46,718	43,667	40,933	38,911		41,493	40,430	39,227	39,557	42,961
per restaurant(ARPU) 1
Restaurant promotion services revenue	j *3	46,811	46,793		48,126	46,763	44,515	44,253		47,357	44,495	41,982	40,091		42,902	41,927	40,842	41,396	45,158
per restaurant(ARPU) 2
*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 all paying member restaurants at previous and current quarter-endi=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-endj=2/3*c/(lt-1+lt)
		Number of member restaurants			FY2016				FY2017				FY2018				FY2019
		(Unit: restaurants)		Q1	Q2		Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2	Q3
All paying member restaurants	k=	58,226	59,612		60,816	60,886	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	58,226	59,612		60,816	60,886	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
Non-paying member restaurants	n	81,529	83,182		82,466	87,019	86,536	86,679		87,665	86,607	88,078	89,927		89,584	91,405	90,345	81,586	75,763

27

Historical data (consolidated)

(Unit: JPY million)	FY2009	FY2010	FY2011	FY2012		FY2013	FY2014	FY2015	FY2016	FY2017	FY2018
			Consolidated business results
Net sales						30,518
24,175	25,238	24,302	27,265		32,636	34,617	36,979	36,226	32,728
Operating income	4,545	3,369	3,312	3,116		4,147	5,099	6,429	6,740	4,742	1,216
Ordinary income	4,578	3,406	3,375	3,153		4,167	5,127	6,492	6,813	4,809	1,289
Net income	2,323	1,813	1,909	1,959		2,420	3,279	4,367	4,799	3,192	581
			Assets・Liabilities・Net assets
Total assets						22,071
15,309	19,653	16,951	19,103		23,665	27,322	23,917	25,457	23,797
Cash and deposits	5,531	10,398	7,548	7,399		9,448	10,492	13,131	7,922	8,000	7,630
Liabilities	3,895	8,519	4,381	5,005		5,926	6,201	7,026	5,878	6,270	5,093
Net assets	11,413	11,133	12,569	14,098		16,145	17,464	20,296	18,038	19,186	18,704
Equity	11,413	11,133	12,555	14,042		16,099	17,427	20,266	18,013	19,166	18,662
				Per share data
Earnings per share *1						49.56
45.20	35.76	39.12	40.15		67.26	90.19	102.25	68.27	12.42
Dividends per share(JPY) *1	10	10	10	10		15	28	38	42	44	8
				Other
Operating margin(%)						13.6
18.8	13.4	13.6	11.4		15.6	18.6	18.2	13.1	3.7
Return on equity(%)	22.0	16.1	16.1	14.7		16.1	19.6	23.2	25.1	17.2	3.1
Return on assets(%)	16.5	10.4	10.4	10.9		11.8	14.3	17.1	18.7	12.9	2.4
Payout ratio(%)	22.1	28.0	25.6	24.9		30.3	41.6	42.1	41.1	64.5	64.4
Shareholders' equity ratio(%)	74.6	56.7	74.1	73.5		72.9	73.6	74.2	75.3	75.3	78.4
Number of shares of treasury stock	2,779	15,854	1,585,400	1,585,400		1,503,649	266,059	216,459	1,924,559	1,892,159	1,839,162
Number of member restaurants (paid)	50,227	48,129	48,893	50,310		52,235	53,263	56,967	60,886	60,123	57,465
*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 FY2009 (April 1, 2009).

28

Company profile as of the end of December 2019

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%, Japan Traffic Culture Association 4.0%,
	The Master Trust Bank of Japan, Ltd. (Trust account) 2.8%, 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	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%,
	BNYM SA/NV FOR BNYM FOR BNYM GCM CLIENT ACCTS M ILM FE 1.6%,
	*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	12,273
Number of total personnel	Non-consolidated : 1,671 Consolidated : 1,917
Consolidated subsidiaries	Gurunavi Promotion Community, Inc. （100%）, Gurunavi Shanghai, Inc. （100%）
Gurunavi Research Institute, Inc. （100%）, Gurunavi Support Associe, Inc. （100%）

29

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 December 2019. 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.