Kakaku com : Consolidated Earnings Report for the Fiscal Year Ended March 31, 2021

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.

May 11, 2021

	Kakaku.com, Inc.
	Consolidated Earnings Report for the
	Fiscal Year Ended March 31, 2021
Stock listings:	Tokyo Stock Exchange (First Section)
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
Ordinary general meeting of shareholders:	June 17, 2021
Dividend payout:	June 18, 2021
Filing of statutory year-end financial report:	June 17, 2021
Supplementary materials to financial results available:	Yes
Fiscal year-end earnings presentation held:	Yes (for institutional investors and analysts)
	(Amounts of less than one million yen are rounded.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Consolidated Operating Results								(% = year-on-year change)
											Profit			Total
	Revenue	Operating	Profit before		Profit for the		attributable to		comprehensive
			owners of the
	profit	income taxes		period			income for the
					parent
													period
											company
	¥		¥		¥			¥			¥			¥
	million	%	million	%	million	%		million	%		million	%		million	%
FY2021/3	51,077	(16.2)	18,295	(32.8)	17,904	(32.7)		11,630	(36.6)		11,763	(35.9)		11,680	(35.2)
FY2020/3	60,978	11.2	27,217	8.6	26,619	7.2		18,338	9.5		18,348	9.9		18,029	7.4
					Profit to equity	Profit before
	Basic earnings	Diluted	attributable to	Operating
	income taxes
	earnings per	owners of the	profit to
	per share	to total assets
	share	parent	revenue ratio
			ratio
					company ratio
		¥		¥		%		%		%
FY2021/3		57.13		57.09		26.2		26.7		35.8
FY2020/3		88.25		88.20		44.0		46.5		44.6

For reference: Share of profit (loss) of associates and joint ventures accounted for by the equity method: Year ended March 31, 2021: (169) million yen

Year ended March 31, 2020: (396) million yen

(2) Consolidated Financial Position

Total equity

Total equity

Equity per

share

attributable to

attributable to

attributable to

Total assets

Total equity

owners of the

owners of the

owners of the

parent

parent

parent

company

company ratio

company

¥ million

¥ million

¥ million

%

¥

As of March 31, 2021

70,958

47,141

46,880

66.1

227.57

As of March 31, 2020

63,317

43,303

42,909

67.8

208.43

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents

operating activities

investing activities

financing activities

at end of period

¥ million

¥ million

¥ million

¥ million

FY2021/3

17,288

(2,182)

(9,722)

34,888

FY2020/3

23,997

(3,958)

(16,946)

29,504

2. Dividends

Annual dividends

Total

Dividends to

Payout ratio

equity attributable

Year-

Annual

Q1

Q2

Q3

payout

(consolidated)

to owners of the

end

total

(full year)

parent company

(consolidated)

¥

¥

¥

¥

¥

¥ million

%

%

FY2020/3

－

20.00

－

20.00

40.00

8,291

45.3

19.9

FY2021/3

－

20.00

－

20.00

40.00

8,238

70.0

18.3

FY2022/3

－

20.00

－

20.00

40.00

51.2

(forecast)

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(% = year-on-year change)

	Revenue		Operating profit	Profit before	Profit attributable	Basic earnings
		income taxes	to owners of the	per share
						parent company
Six months ending	¥ million		%	¥ million	%	¥ million	%	¥ million	%	¥
27,000		24.2	10,200	48.3	10,200	55.0	7,000	57.6	33.98
September 30, 2021
Full year	59,000		15.5	23,600	29.0	23,500	31.3	16,100	36.9	78.15

*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 1): None
   3. Changes in accounting estimates: None

(3) Number of shares issued (common stock)

i) Number of shares issued at end of period (treasury shares included):

March 31, 2021:	206,705,000 shares
March 31, 2020:	206,705,000 shares

ii) Number of shares held in treasury at end of period:

March 31, 2021:	701,758 shares
March 31, 2020:	836,558 shares

1. Average number of shares outstanding during the period: Year ended March 31, 2021: 205,909,357 shares Year ended March 31, 2020: 207,911,788 shares

For Reference

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Operating Results

(% = year-on-year change)

			Net sales		Operating income	Ordinary income	Net income
		¥ million		%		¥ million	%	¥ million		%	¥ million		%
	FY2021/3	46,544		(14.9)		18,313	(28.2)	18,432		(27.2)	12,165		(30.7)
	FY2020/3	54,665		10.5		25,494	9.4	25,333		8.9	17,566		9.2
		Net income per share	Net income per share
			- basic			- fully diluted
					¥			¥
	FY2021/3				59.08			59.04
	FY2020/3				84.49			84.44
(2) Financial Position
			Total assets	Net assets	Equity ratio		Net assets per share
					¥ million	¥ million			%				¥
	As of March 31, 2021		55,786		45,743	81.6		220.95
	As of March 31, 2020		50,144		41,418	82.2		200.17
	For reference: Total	equity: March 31, 2021: 45,515 million yen	March 31, 2020: 41,209 million yen
		Total equity = Shareholders' equity plus total accumulated other comprehensive income

Note: For non-consolidated financial results, amounts are rounded down to the nearest million yen.

* This earnings report is exempt from audit procedures by 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)	Cash Flows..................................................................................................................................................................	3
(4)	Outlook for Fiscal Year Ending March 31, 2022 ........................................................................................................	3
2. Basic Approach to Selection of Accounting Standards .......................................................................................................	3
3. Consolidated Financial Statements .....................................................................................................................................	4
(1) Consolidated Statement of Financial Position ............................................................................................................	4
(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income.....................................	6
(3)	Consolidated Statements of Changes in Equity ........................................................................................................	8
(4)	Consolidated Statement of Cash Flows ...................................................................................................................	10
(5)	Notes on Consolidated Financial Statements ..........................................................................................................	11
(Notes regarding the going concern assumption) .....................................................................................................	11
(Changes in presentation) .............................................................................................................................................	11
(Segment information) ..............................................................................................................................................	11
(Per share data) .........................................................................................................................................................	14
(Significant subsequent events) ................................................................................................................................	14

1

1. Operating Results and Financial Position

(1) Operating Results

The Company's operating results for the fiscal year ended March 31, 2021, are as follows.

Consolidated revenue declined 16.2% year on year to 51,077 million yen. Amid ongoing restrictions on economic and corporate activity involving movement of people in association with COVID-19, the main drivers were increases in revenue in the Kakaku.com shopping business, the Kyujin Box business in the New Media and Solutions business, and the Finance business, which were more than offset by declines in revenue in the Kakaku.com service business, the Tabelog business, and in the New Media and Solutions business's travel/transportation domain.

Consolidated operating profit fell 32.8% year on year to 18,295 million yen. This was mainly due to the decline in revenue in the Kakaku.com service business, the Tabelog business, and the New Media and Solutions business's travel/transportation domain, along with the booking of impairment losses on goodwill and fixed assets of a subsidiary.

Consolidated profit before income taxes declined 32.7% year on year to 17,904 million yen, mainly due to the drop in operating profit as well as the booking of impairment loss on investments accounted for using the equity method. Consolidated profit attributable to owners of the parent company decreased 35.9% year on year to 11,763 million yen.

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

(a) Internet Media Business

The Internet media business's revenue declined 17.3% year on year to 48,583 million yen, while its segment income fell 33.2% year on year to 17,687 million yen in the fiscal year ended March 31, 2021.

(Kakaku.com)

Kakaku.com's revenue decreased 1.9% year on year to 23,496 million yen in the fiscal year ended March 31, 2021.

In the shopping business, revenue increased due to the increase in "work-from-home" and "stay-at-home" demand, along with growing e-commerce usage. In the service business, revenue declined mainly in the telecommunications domain due to the disappearance of overseas Wi-Fi rental demand. In the advertising business, revenue was less than in the previous year due to the impact of postponements and cancellations of advertising placements.

As a result, revenue in the shopping business grew 8.3% year on year to 10,100 million yen, revenue in the service business declined 9.8% year on year to 9,063 million yen, and revenue in the advertising business fell 5.5% year on year to 4,333 million yen.

Kakaku.com had 70.40 million monthly unique users1 in March 2021.

(Tabelog)

Tabelog's revenue declined 32.5% year on year to 17,786 million yen in the fiscal year ended March 31, 2021.

The first state of emergency declared in response to COVID-19 was lifted in May 2020, and demand for dining out, which had gradually been recovering, expanded significantly as a result of the start of the "Go To Eat" campaign, but a second state of emergency was declared in January 2021 due to a resurgence in COVID-19 infections.

As a result, revenue in the restaurant promotion business declined 39.2% year on year to 13,081 million yen, online reservation bookings declined 23.6% year on year to a cumulative total of 28.88 million people, and the fee-based plans' subscribership stood at 57,000 restaurants as of March 31, 2021.

The premium membership business's revenue declined 27.5% year on year to 1,693 million yen due to a decrease in fee- paying members.

The advertising business's revenue was down 23.8% year on year to 1,921 million yen due to postponements and cancellations of advertisement placements.

Revenue from commissioned business2 was 1,091 million yen Tabelog had 115.86 million monthly unique users1 in March 2021.

(New Media and Solutions)

The New Media and Solutions business's revenue declined 13.3% year on year to 7,302 million yen in the fiscal year ended March 31, 2021.

For services in the travel/transportation domain, and some services in the entertainment/hobbies domain that involve going out, the situation remains challenging due to the impacts of COVID-19. On the other hand, both Kyujin Box and Sumaity saw increases in revenue.

(b) Finance Business

The finance business's revenue grew 12.2% year on year to 2,494 million yen while its segment income decreased 17.6% year on year to 604 million yen in the fiscal year ended March 31, 2021.

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

(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

2