Gurunavi : Consolidated Financial Results for 1Q FY2020

Translation

July 29, 2020

Consolidated Financial Results

for the First 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:	July 30, 2020
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 first quarter of the fiscal year ending March 31,

2021 (from April 1, 2020 to June 30, 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
Three months ended	Millions of yen	%	Millions of yen		%	Millions of yen	%		Millions of yen	%
June 30, 2020	1,783	(76.4)	(3,824)		-	(3,815)	-	(3,777)	-
June 30, 2019	7,551	(8.0)	80	(86.6)	90	(85.0)	61	(84.7)
Note:	Comprehensive income
	Three months ended June 30, 2020:	¥(3,740) million	[	-%]
	Three months ended June 30, 2019:	¥9 million	[ (98.0%)]
		Basic earnings	Diluted earnings
		per share		per share
Three months ended		Yen			Yen
June 30, 2020	(80.60)		-
June 30, 2019	1.31	1.31
(2) Consolidated financial position
		Total assets	Net assets		Equity ratio			Net assets per share
As of		Millions of yen	Millions of yen		%			Yen
June 30, 2020		18,119		15,348		84.4			326.10
March 31, 2020		23,979		19,270		80.1			409.90
Reference:	Equity
	As of June 30, 2020:	¥15,283 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	-
March 31, 2021
Fiscal year ending
March 31, 2021		-	-	-	-
(Forecast)
Note:	Revisions to the cash dividend forecasts most recently announced: None
	The dividend forecasts for the fiscal year ending March 31, 2021 are undecided

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)

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, and therefore are not presented.

The forecasts will be promptly disclosed when they become available.

* Notes

1. Changes in significant subsidiaries during the three 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 June 30, 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 June 30, 2020	1,806,562 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)

Three months ended June 30, 2020	46,868,538 shares
Three months ended June 30, 2019	46,835,938 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 June 30, 2020
Assets
	Current assets
		Cash and deposits	11,653,173	9,520,794
		Notes and accounts receivable - trade	4,172,261	1,967,124
		Accounts receivable - other	1,511,515	310,738
		Other	871,123	889,049
		Allowance for doubtful accounts	(205,621)	(296,770)
		Total current assets	18,002,452	12,390,936
	Non-current assets
		Property, plant and equipment	844,294	909,890
		Intangible assets
		Software	1,750,689	1,386,092
		Other	72,835	131,687
		Total intangible assets	1,823,525	1,517,780
		Investments and other assets	3,309,395	3,300,685
		Total non-current assets	5,977,215	5,728,355
	Total assets	23,979,668	18,119,292
Liabilities
	Current liabilities
		Notes and accounts payable - trade	153,667	77,760
		Income taxes payable	505,411	37,851
		Provision for bonuses	587,296	306,345
		Provision for point card certificates	209,520	171,661
		Accounts payable - other	2,154,388	1,312,115
		Other	839,685	717,597
		Total current liabilities	4,449,971	2,623,332
	Non-current liabilities
		Asset retirement obligations	258,238	146,294
		Other	900	900
		Total non-current liabilities	259,138	147,194
	Total liabilities	4,709,110	2,770,526
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	14,767,260
		Treasury shares	(4,777,121)	(4,777,121)
		Total shareholders' equity	19,174,181	15,209,220
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	65,015	119,956
		securities
		Foreign currency translation adjustment	(27,800)	(45,412)
		Total accumulated other comprehensive income	37,214	74,544
	Share acquisition rights	59,162	65,001
	Total net assets	19,270,557	15,348,765
Total liabilities and net assets	23,979,668	18,119,292
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1. Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		June 30, 2019	June 30, 2020
Net sales	7,551,840	1,783,360
Cost of sales	2,684,057	1,738,267
Gross profit	4,867,783	45,093
Selling, general and administrative expenses	4,787,413	3,869,662
Operating income (loss)	80,369	(3,824,569)
Non-operating income
Dividend income	2,987	3,026
Gain on forfeiture of unclaimed dividends	2,419	2,261
Other	4,350	3,639
Total non-operating income	9,757	8,927
Ordinary income (loss)	90,127	(3,815,642)
Extraordinary income
Gain on sales of investment securities	-	92,500
Gain on sale of businesses	-	37,443
Total extraordinary income	-	129,943
Extraordinary losses
Loss on valuation of investment securities	-	82,067
Total extraordinary losses	-	82,067
Net income (loss) before income taxes	90,127	(3,767,766)
Income taxes	28,844	9,720
Net income (loss)	61,282	(3,777,487)
Net income (loss) attributable to owners of parent	61,282	(3,777,487)

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Consolidated statement of comprehensive income (cumulative)

		(Thousands of yen)
	Three months ended	Three months ended
	June 30, 2019	June 30, 2020
Net income (loss)	61,282	(3,777,487)
Other comprehensive income
Valuation difference on available-for-sale securities	(60,502)	54,941
Foreign currency translation adjustment	8,452	(17,611)
Total other comprehensive income	(52,049)	37,330
Comprehensive income	9,233	(3,740,156)
Comprehensive income attributable to:
Owners of parent	9,233	(3,740,156)

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