Kakaku com : Summary of Results Briefing for the First Quarter of the Fiscal Year ending March 31, 2024

F Y 2 0 2 4 / 3 F i r s t Q u a r t e r

Results Briefing

August 3, 2023

Kakaku.com, Inc. (TSE Prime: 2371)

© 2023 Kakaku.com, Inc.

Hello, this is Shonosuke Hata from Kakaku.com. Thank you for joining us today. I will now explain the financial results for Q1 of this fiscal year.

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1. Operating Results (Consolidated/by Business)

2. Progress by Business

3. Topics

4. Appendix

© 2023 Kakaku.com, Inc.

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Consolidated Operating Results

	FY23/3		FY24/3		Forecast	Progress
	Q1		Q1
(Unit: million yen)		YoY
Revenue	14,015		15,362	+9.6%	67,700	22.7%
Operating Profit	5,374		5,171	-3.8%	27,100	19.1%
OP Margin	38.3%		33.7%	-4.6pt	40.0	-
Profit Before	5,645		5,296	-6.2%	26,900	19.7%
Income Taxes
Profit Attributable	4,171		3,651	-12.5%	18,400	19.8%
to Owners of the
Parent Company

*As of FY24/3 Q1, the Company is applying IAS 12 "Income Taxes" (amended in May 2021). Figures after the retrospective application are used for comparative analysis with FY23/3 Q1.

© 2023 Kakaku.com, Inc.

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First, please see page three of the presentation, for our consolidated operating results.

In Q1, sales were 15,362 million yen, up 9.6% from the previous year; operating income was 5,171 million yen, down 3.8% from the previous year; operating margin was 33.7%; income before income taxes was 5,296 million yen; and net income was 3,651 million yen.

Compared to our full-year forecast, progress for revenue was 22.7%, progress for operating profit was 19.1%. Although revenue increased by 9.6%, operating profit was slightly lower than last year.

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Consolidated Operating Expenses

Advertising expenses and commissions increased year-on-year in line with growth for Tabelog and Kyujin Box. Outsourcing cost increased due mainly to an increase in development-related costs for Tabelog.

(Unit: million yen)							10,241	10,197
				8,646		9,311
8,016		8,398	8,428	8,693	2,686	2,253	Advertising
7,776				2,137			Commissions
		1,839	1,785
		1,694
1,543	1,482	2,047
				2,299	Outsourcing
						2,214
						2,128
				1,900	1,960
1,661	1,610	1,951	1,735			Depreciation
			1,097	1,124
813				842	923	910	Rent
863	856	916	547
523
492
492	461	463	456	464	474	355	Personnel Expenses
354	363	362
357	352	351	350	356
2,656		2,610		2,802	2,822	2,830	2,763	3,105	Other
2,645	2,573	Server maintenance 19m yen
									Recruiting 118m yen
494	362	473	351	444	374	452	597	513
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
		FY22/3				FY23/3		FY24/3

© 2023 Kakaku.com, Inc.

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Next, please see page four, for quarterly trends and breakdown of operating expenses and other expenses.

Compared to last year, advertising expenses increased by 410 million yen, commissions by 400 million yen, outsourcing expenses by 280 million yen, and personnel expenses by 300 million yen, for a total increase of about 1.4 billion yen. As a result, operating profit growth was negative despite positive revenue growth.

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Operating Results by Business

		Q1	Year-on-Year Change
(Unit: million yen)	Revenue	Amount	%
Kakaku.com	4,487	-470	-9.5%
Shopping	1,838	-275	-13.0%
Service	2,021	+75	+3.9%
Advertising	628	-27	-30.1%
Tabelog	6,404	+1,031	+19.2%
Restaurant Promotion	5,681	+1,059	+22.9%
Premium User Memberships	374	+5	+1.4%
Advertising	349	-11	-2.9%
Kyujin Box*	1,985	+588	+42.1%
New Media and Solutions/Finance*	2,486	+198	+8.7%
New Media and Solutions	1,853	+288	+18.4%
Finance	633	-90	-12.4%

*As of FY24/3 Q1, [Kyujin Box], which was previously included in [New Media and Solutions/Finance] , is listed separately due to its increased financial impact. YoY figures have been adjusted accordingly.
© 2023 Kakaku.com, Inc.	5

The next page shows operating results by business. Starting this fiscal year, we are listing Kyujin Box, which was previously included in new media and solutions, as a separate item.

First, Kakaku.com's shopping business was down 13%, the service business was up 3.9%, and advertising was down 30.1%, resulting in a 9.5% decrease in overall revenue from the Kakaku.com business, compared to last year.

Next, regarding Tabelog, the restaurant promotion business was up 22.9%, the premium user membership business was up 1.4%, and advertising was down 2.9%, resulting in a 19.2% increase for Tabelog as a whole.

Next, Kyujin Box was up 42.1% compared to last year.

New media and solutions were up 18.4%, and finance was down 12.4%, resulting in an 8.7% increase in the new media and solutions/finance business compared to last year.

Next, let me explain the progress of each business in detail.

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