Gurunavi : Consolidated Financial Results for 3Q FY2019

Translation

February 5, 2020

Consolidated Financial Results

for the Third Quarter of the Fiscal Year Ending March 31, 2020

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
Contact:	Teruhisa Yamada, Senior Managing Executive Officer
	TEL: [phone]

Scheduled date to submit Quarterly Securities Report:	February 6, 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 third quarter of the fiscal year ending March 31,

2020 (from April 1, 2019 to December 31, 2019)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
		Net sales		Operating income		Ordinary income	Net income attributable
				to owners of parent
Nine months ended	Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen	%
December 31, 2019	23,431	(4.4)		1,397	24.3	1,423	24.0	790	4.8
December 31, 2018	24,513	(9.5)		1,124	(71.8)	1,148	(71.3)	754	(72.2)
Note:	Comprehensive income
	Nine months ended December 31, 2019:	¥720 million	[ (4.4%)]
	Nine months ended December 31, 2018:	¥754 million	[ (72.3%)]
		Basic earnings	Diluted earnings
		per share			per share
Nine months ended		Yen			Yen
December 31, 2019	16.89		16.88
December 31, 2018	16.13		16.10
(2) Consolidated financial position
		Total assets		Net assets		Equity ratio		Net assets per share
As of		Millions of yen		Millions of yen		%		Yen
December 31, 2019		24,557			19,145		77.7		407.33
March 31, 2019		23,797			18,704		78.4		398.48
Reference:	Equity
	As of December 31, 2019:	¥19,091 million	As of March 31, 2019:	¥18,662 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	-	5.00	-	3.00	8.00
March 31, 2019
Fiscal year ending	-	4.00	-
March 31, 2020
Fiscal year ending
March 31, 2020				4.00	8.00
(Forecast)
Note:	Revisions to the cash dividend forecasts most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)

(Percentages indicate year-on-year changes.)

								Net income	Basic earnings
		Net sales		Operating income	Ordinary income	attributable to
			per share
								owners of parent
		Millions of		Millions of		Millions of		Millions of
		yen	%	yen	%	yen	%	yen	%	Yen
Fiscal year ending	31,000	(5.3)	1,400	15.1	1,440	11.7	790	35.9	16.86
March 31, 2020
Note:	Revisions to the consolidated earnings forecasts most recently announced: Yes

* Notes

1. Changes in significant subsidiaries during the nine 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 December 31, 2019	48,675,100 shares
As of March 31, 2019	48,675,100 shares

1. Number of treasury shares at the end of the period

As of December 31, 2019	1,806,562 shares
As of March 31, 2019	1,839,162 shares

1. Average number of shares during the period (cumulative from the beginning of the fiscal year)

Nine months ended December 31, 2019	46,836,649 shares
Nine months ended December 31, 2018	46,795,671 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 31,2019	As of December 31,2019
Assets
Current assets
	Cash and deposits	7,630,364	9,969,629
	Notes and accounts receivable - trade	4,536,063	4,546,711
	Accounts receivable - other	1,636,447	2,012,951
	Other	1,099,744	1,491,541
	Allowance for doubtful accounts	(298,993)	(201,579)
	Total current assets	14,603,626	17,819,254
Non-current assets
	Property, plant and equipment	1,163,040	915,122
	Intangible assets
	Software	3,745,185	2,239,233
	Other	205,042	72,505
	Total intangible assets	3,950,227	2,311,738
	Investments and other assets	4,080,913	3,510,994
	Total non-current assets	9,194,181	6,737,856
Total assets	23,797,808	24,557,111
Liabilities
Current liabilities
	Notes and accounts payable - trade	229,919	119,253
	Income taxes payable	168,574	125,230
	Provision for bonuses	709,854	300,494
	Provision for point card certificates	328,884	214,629
	Accounts payable - other	2,416,444	2,747,304
	Other	925,868	1,645,790
	Total current liabilities	4,779,545	5,152,703
Non-current liabilities
	Asset retirement obligations	313,286	257,781
	Other	900	900
	Total non-current liabilities	314,186	258,681
Total liabilities	5,093,731	5,411,384
Net assets
Shareholders' equity
	Share capital	2,334,300	2,334,300
	Capital surplus	2,884,780	2,884,780
	Retained earnings	18,162,181	18,574,039
	Treasury shares	(4,863,326)	(4,777,121)
	Total shareholders' equity	18,517,935	19,015,998
Accumulated other comprehensive income
	Valuation difference on available-for-sale	159,910	114,429
	securities
	Foreign currency translation adjustment	(14,884)	(39,422)
	Total accumulated other comprehensive income	145,026	75,007
Share acquisition rights	41,113	54,720
Total net assets	18,704,076	19,145,726
Total liabilities and net assets	23,797,808	24,557,111
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1. Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (cumulative)

		(Thousands of yen)
	Nine months ended	Nine months ended
	December 31,2018	December 31,2019
Net sales	24,513,584	23,431,370
Cost of sales	7,625,726	7,739,338
Gross profit	16,887,857	15,692,031
Selling, general and administrative expenses	15,763,603	14,294,050
Operating income	1,124,254	1,397,981
Non-operating income
Subsidy income	5,378	6,361
Other	19,200	20,635
Total non-operating income	24,578	26,996
Non-operating expenses
Foreign exchange losses	821	1,461
Total non-operating expenses	821	1,461
Ordinary income	1,148,012	1,423,516
Extraordinary income
Gain on reversal of share acquisition rights	7,668	-
Total extraordinary income	7,668	-
Extraordinary losses
Loss on valuation of investment securities	29,681	293,230
Total extraordinary losses	29,681	293,230
Net income before income taxes	1,125,998	1,130,286
Income taxes	371,299	339,449
Net income	754,699	790,836
Net income attributable to owners of parent	754,699	790,836

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Consolidated statement of comprehensive income (cumulative)

		(Thousands of yen)
	Nine months ended	Nine months ended
	December 31,2018	December 31,2019
Net income	754,699	790,836
Other comprehensive income
Valuation difference on available-for-sale securities	16,250	(45,481)
Foreign currency translation adjustment	(16,801)	(24,538)
Total other comprehensive income	(550)	(70,019)
Comprehensive income	754,149	720,817
Comprehensive income attributable to:
Owners of parent	754,149	720,817

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