Kakaku com : FY3/2023 2Q Consolidated Financial Results

This is an abridged translation of the original Japanese document and is provided for informational purposes only.

If there are any discrepancies between this and the original, the original Japanese document prevails.

November 2, 2022

Kakaku.com, Inc.

Consolidated Earnings Report for the

Second Quarter of the Fiscal Year Ending March 31, 2023

Stock listings:	Tokyo Stock Exchange
Securities code:	2371
URL:	https://corporate.kakaku.com/
Representative:	Shonosuke Hata, President and Representative Director
Information contact:	Kiyoaki Shirakawa
	Executive Officer, Corporate Management Division General Manager
Telephone	[phone]

Scheduled dates
Filing of statutory quarterly financial report:	November 9, 2022
Dividend payout:	December 1, 2022
Supplementary materials to financial results available:	Yes
Quarterly earnings presentation held:	Yes (for institutional investors and analysts)

																	(Amounts of less than one million yen are rounded.)
1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023
(1) Consolidated Operating Results											(% = year-on-year change)
																				Profit attributable	Total
		Revenue				Operating profit	Profit before	Profit for the	comprehensive
					to owners of the
					income taxes	period		income for the
														parent company
																				period
Q2	¥ million		%		¥ million		%	¥ million		%		¥ million		%	¥ million	%	¥ million		%
	28,240			18.2		10,906		34.3	11,330		41.1	8,061		39.7	8,046	39.3	8,167		42.8
FY2023/3
Q2		23,882			9.8		8,121		18.1	8,027		22.0	5,769		33.3	5,774	30.0	5,721		31.7
FY2022/3
					Basic earnings per				Diluted earnings
								share				per share
Q2 FY2023/3						¥					¥
					39.33			39.30
Q2 FY2022/3						28.06			28.04
(2) Consolidated Financial Position
															Total equity	Total equity
															attributable to
							Total assets			Total equity	attributable to
									owners of the
									owners of the
															parent company
															parent company
																ratio
								¥ million				¥ million			¥ million		%
As of September 30, 2022		78,984				52,291			52,068		65.9
As of March 31, 2022			70,477				48,164			47,956		68.0

2. Dividends

			Annual dividends
	Q1	Q2		Q3	Year end	Annual total
FY2022/3	¥	¥	¥	¥	¥
-	20.00		-	20.00	40.00
FY2023/3	-	20.00
FY2023/3				-	20.00	40.00
(Forecast)
(Note) Revisions to most recent dividend	forecasts: None

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(% = year-on-year change)

			Operating	Profit before	Profit		Basic earnings
	Revenue	attributable to
	profit		income taxes	owners of the	per share
								parent company
	¥ million	%	¥ million		%	¥ million	%	¥ million		%	¥
Full year	64,500	24.7	25,900		35.3	25,800	23.5	17,600		23.1	86.02

(Note) Revisions to most recent earnings forecasts: None

*Notes

1. Changes in significant subsidiaries during the period: None
2. Accounting policy changes and accounting estimate changes:
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes other than the above i): None
   3. Changes in accounting estimates: None
4. Number of shares issued (common stock)
5. 1. Number of shares issued at end of period (treasury shares included): September 30, 2022: 205,281,200 shares

March 31, 2022:

205,281,200 shares

1. Number of shares held in treasury at end of period: September 30, 2022: 667,087 shares

March 31, 2022:

675,587 shares

• 1. Average number of shares outstanding during the period: September 30, 2022: 204,610,329 shares September 30, 2021: 205,799,468 shares
• Quarterly consolidated earnings reports are exempt from the quarterly review procedures of certified public accountants and the accounting auditor.

*Appropriate Use of Earnings Forecasts and Other Important Information

(Disclaimer Regarding Forward-Looking Statements)

The above forecasts, which constitute forward-looking statements, are prospects based on information available to the Company as of the date of the release of this document. Actual results may differ materially from the above forecasts due to a range of factors.

Contents

1. Operating Results and Financial Position .......................................................................................................................	2
(1)	Operating Results..................................................................................................................................................	2
(2)	Financial Position .................................................................................................................................................	3
(3)	Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements....................................	3
2. Condensed Consolidated Financial Statements ..............................................................................................................	4
(1)	Condensed Consolidated Statement of Financial Position ...................................................................................	4
(2)	Condensed Consolidated Statement of Income ....................................................................................................	6
(3)	Condensed Consolidated Statement of Comprehensive Income ..........................................................................	7
(4)	Condensed Consolidated Statements of Changes in Equity .................................................................................	8
(5)	Condensed Consolidated Statement of Cash Flows ...........................................................................................	10
(6)	Notes on the Condensed Consolidated Financial Statements.............................................................................	11
(Notes regarding the going concern assumption).................................................................................................	11
(Significant subsequent events)............................................................................................................................	11

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1. Operating Results and Financial Position

(1) Operating Results

The Company's operating results for the six months ended September 30, 2022, were as follows.

Consolidated revenue increased 18.2% year on year to 28,240 million yen. This was mainly due to an increase in revenue in Tabelog's restaurant promotion business, the New Media and Solutions business including the Kyujin Box business, and the Finance business, despite a decrease in revenue in the Kakaku.com business, as economic and social activities have been normalizing after a nationwide lifting of priority preventive measures and other restrictions, although affected by the spread of infection with new variants of the virus that occurred from July onward.

Consolidated operating profit rose 34.3% year on year to 10,906 million yen. This was mainly due to increased revenue. Consolidated profit before income taxes increased 41.1% year on year to 11,330 million yen, mainly due to an increase in operating profit, an increase in finance income, and a decrease in a net loss on equity-method investments.

Consolidated profit attributable to owners of the parent company increased 39.3% year on year to 8,046 million yen.

Operating results (after intersegment eliminations) are presented below by business segment.

(a) Internet Media Business

The Internet media business's revenue increased 18.9% year on year to 26,792 million yen while its segment income rose 35.1% year on year to 10,516 million yen in the six months ended September 30, 2022.

(Kakaku.com)

Kakaku.com's revenue decreased 8.4% year on year to 9,643 million yen in the six months ended September 30, 2022.

The shopping business's and the advertising business's revenue decreased year on year due to the continued effects of fewer new products and other constraints on the supply side. The service business's revenue declined due to such factors as the settling down of stay-at-home demand in the telecommunications domain, and the continued weak personal consumption in the financial domain.

As a result, revenue in the shopping business decreased 8.4% year on year to 4,024 million yen, revenue in the service business declined 8.3% year on year to 3,836 million yen, and revenue in the advertising business fell 8.7% year on year to 1,783 million yen.

Kakaku.com had 46.80 million monthly unique users1 in September 2022.

(Tabelog)

Tabelog's revenue increased 47.9% year on year to 10,821 million yen in the six months ended September 30, 2022.

The restaurant promotion business's revenue increased 62.4% year on year to 9,242 million yen. As the impact of COVID- 19 is weakening and social activities are normalizing, while there is an impact from the spread of infection with new variants of the virus from July and onwards, the demand for eating out was on a steady recovery trend, leading to an increase of 182.7% year on year in the cumulative number of online reservations to 23.63 million in the six months ended September 30, 2022. Due to the expanded use of online reservation services by restaurants, the total number of restaurants with paid plans was 67,400 as of September 30, 2022.

The premium membership business's revenue decreased 4.2% year on year to 735 million yen due to a decline in fee-paying members.

The advertising business's revenue increased 18.3% year on year to 804 million yen as a result of partnerships with other sites, and revenue from commissioned business2 was 40 million yen.

Tabelog had 89.98 million monthly unique users1 in September 2022.

(New Media and Solutions)

The New Media and Solutions business's revenue increased 35.2% year on year to 6,329 million yen in the six months ended September 30, 2022.

In the New Media and Solutions business, revenue increased mainly in the Kyujin Box business and in the domain of travel/transportation.

(b) Finance Business

The finance business's revenue grew 7.1% year on year to 1,447 million yen, while its segment income increased 15.8% year on year to 390 million yen in the six months ended September 30, 2022.

Kakaku.com Insurance, a site operated by consolidated subsidiary Kakaku.com Insurance, Inc., increased its commission revenue mainly through growth in online insurance applications.

(Notes) 1. Monthly unique users are counted as the number of browsers that visited the site (for certain browsers, operating systems, etc., there may be instances in which users who re-visited the site after a certain period of time are counted multiple times). Double-counting as a side effect of high-speed loading of mobile webpages and mechanical accesses by third parties' web-scraping bots etc. are eliminated from the count to the fullest extent possible. Tabelog's support of AMP (Accelerated Mobile Pages) ended in February 2022.

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1. 2. Refers to revenue from Go To Eat campaign-related business commissioned by the Ministry of Agriculture, Forestry and Fisheries. It does not, however, include advertising income (booked in the advertising business) related to the commissioned operations.

2. Financial Position

1) Analysis of Financial Position

Assets

Consolidated assets at September 30, 2022, totaled 78,984 million yen, an 8,507 million yen increase from March 31, 2022. The increase was mainly the net result of a 690 million yen decrease in right-of-use assets being offset by increases in cash and cash equivalents of 5,052 million yen and other current assets of 3,127 million yen, respectively.

Liabilities

Consolidated liabilities at September 30, 2022, totaled 26,693 million yen, a 4,380 million yen increase from March 31, 2022. The increase was mainly the net result of a 363 million yen decline in lease liabilities (non-current) being offset by a 3,733 million yen increase in other current liabilities.

Equity

Consolidated equity at September 30, 2022, totaled 52,291 million yen, a 4,127 million yen increase from March 31, 2022. This was mainly the net result of 8,046 million yen of profit attributable to owners of the parent company and the declaration of a 4,092 million yen dividend from retained earnings.

2) Cash Flows

Cash and cash equivalents ("cash") at September 30, 2022, totaled 39,350 million yen, a 5,052 million yen increase from March 31, 2022. Cash flows from operating, investing, and financing activities were as follows.

Cash flows from operating activities

Operating activities provided net cash of 10,825 million yen (vs. 6,311 million yen provided in the year-earlier period). The main outflow was 3,181 million yen of income taxes paid, which was offset by 11,330 million yen in profit before income taxes and 1,739 million yen in depreciation and amortization.

Cash flows from investing activities

Investing activities used net cash of 991 million yen (vs. 1,283 million yen used in the year-earlier period).

This was primarily due to 664 million yen used to purchase intangible assets, including server software, and 205 million yen used to purchase property, plant and equipment.

Cash flows from financing activities

Financing activities used net cash of 4,792 million yen (vs. 10,155 million yen used in the year-earlier period). This was primarily due to 4,091 million yen for dividends paid.

(3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements

The consolidated earnings forecasts for the fiscal year ending March 31, 2023, that were disclosed in the Consolidated Earnings Report for the Fiscal Year Ended March 31, 2022, released on May 11, 2022, remain unchanged.

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