カカクコム（2371） – FY3/2022 3Q 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. February 3, 2022 Kakaku.com, Inc. Consolidated Earnings Report for the Third Quarter of the Fiscal Year Ending March 31, 2022 Stock listings: Securities code: URL: Representative: Information contact: Tokyo Stock Exchange (First Section) 2371 http://corporate.kakaku.com/ Shonosuke Hata, President and Representative Director Kiyoaki Shirakawa Executive Officer, Corporate Management Division General Manager +81-3-5725-4554 Telephone Scheduled dates Filing of statutory quarterly financial report: Dividend payout: Supplementary materials to financial results available: Fiscal year-end earnings presentation held: February 9, 2022 – Yes Yes (for institutional investors and analysts) 1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022 (1) Consolidated Operating Results (% = year-on-year change) (Amounts of less than one million yen are rounded.) Revenue Operating profit Profit before income taxes Profit for the period Profit attributable to owners of the parent company Total comprehensive income for the period ¥ million % ¥ million % ¥ million % ¥ million % ¥ million % ¥ million % 37,935 0.4 13,782 2.3 14,813 12.9 10,440 18.9 10,448 17.5 10,374 17.6 37,768 (16.5) 13,469 (35.5) 13,116 (36.1) 8,779 (37.2) 8,889 (36.4) 8,823 (36.2) Q3 FY2022/3 Q3 FY2010/3 Basic earnings per share Diluted earnings per share Q3 FY2022/3 Q3 FY2021/3 ¥ 50.86 43.18 (2) Consolidated Financial Position ¥ 50.83 43.15 Total assets Total equity Total equity attributable to owners of the parent company Total equity attributable to owners of the parent company ratio ¥ million ¥ million ¥ million As of December 31, 2021 As of March 31, 2021 65,977 70,958 44,138 47,141 43,939 46,880 % 66.6 66.1 2. Dividends Q1 Q2 Q3 Year End Annual total Annual dividends FY2021/3 FY2022/3 FY2022/3 (Forecast) (Note) Revisions to most recent dividend forecasts: None ¥ – – ¥ 20.00 20.00 3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022) ¥ – – ¥ 20.00 20.00 ¥ 40.00 40.00 Revenue Operating profit Profit before income taxes Full year 55,800 9.2 21,500 17.5 21,300 19.0 14,600 24.1 ¥ million % ¥ million % ¥ million % ¥ million (% = year-on-year change) Profit attributable to owners of the parent company % Basic earnings per share ¥ 70.94 (Note) Revisions to most recent earnings forecasts: None *Notes (1) Changes in significant subsidiaries during the period: Yes Excluded from the scope of consolidation: 4travel, Inc. (2) Accounting policy changes and accounting estimate changes: i) Changes in accounting policies required by IFRS: None ii) Changes other than the above i): None iii) Changes in accounting estimates: None (3) Number of shares issued (common stock) i) Number of shares issued at end of period (treasury shares included): December 31, 2021: March 31, 2021: 205,281,200 shares 206,705,000 shares ii) Number of shares held in treasury at end of period: December 31, 2021: March 31, 2021: 679,587 shares 701,758 shares iii) Average number of shares outstanding during the period: December 31, 2021: December 31, 2020: 205,406,968 shares 205,885,986 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 – 1 – 1. Operating Results and Financial Position  (1) Operating Results The Company’s operating results for the nine months ended December 31, 2021, were as follows. Consolidated revenue increased 0.4% year on year to 37,935 million yen. This was mainly due to the increase in revenue in the Tabelog business’s restaurant promotion business, the New Media and Solutions business, and the Finance business amid the pickup in economic activity and corporate activity accompanying the increase in the movement of people in conjunction with the lifting of the state of emergency, despite a decline in revenue in the Kakaku.com business due to the impacts of the decrease in new products and the supply restrictions resulting from the shortage of semiconductors and other components. Consolidated operating profit increased 2.3% year on year to 13,782 million yen, mainly as a result of the increase in revenue and decreases in advertising expenses and outsourcing expenses. Consolidated profit before income taxes increased 12.9% year on year to 14,813 million yen, mainly reflecting the increase in operating profit and the booking of gain on sales of investments in associates. Consolidated profit attributable to owners of the parent company increased 17.5% year on year to 10,448 million yen. Operating results (after intersegment eliminations) are presented below by business segment. (a) Internet Media Business The Internet media business’s revenue decreased 0.1% year on year to 35,936 million yen while its segment income grew 1.6% year on year to 13,276 million yen in the nine months ended December 31, 2021. (Kakaku.com) Kakaku.com’s revenue declined 8.7% year on year to 15,851 million yen in the nine months ended December 31, 2021. In the shopping business and the advertising business, revenue decreased due to the decline in new products and other impacts from limitations on the supply side. In the service business, revenue declined, as personal consumption remained weak. As a result, revenue in the shopping business declined 13.6% year on year to 6,601 million yen, revenue in the service business declined 6.9% year on year to 5,995 million yen, and revenue in the advertising business decreased 1.0% year on year to 3,256 million yen. Kakaku.com had 60.52 million monthly unique users1 in December 2021. (Tabelog) Tabelog’s revenue decreased 7.2% year on year to 12,626 million yen in the nine months ended December 31, 2021. In the restaurant promotion business, demand for dining out headed towards a recovery in conjunction with the lifting of the state of emergency, and the number of online reservation bookings declined 15.6% year on year to a total of 19.70 million people in the nine months ended December 31, 2021. The fee-based plan subscribership stood at 63,600 restaurants as of December 31, 2021. The premium membership business’s revenue decreased due to a decline in fee-paying members, and revenue in the advertising business declined due to postponements and cancelations of advertisement placements. As a result, revenue in the restaurant promotion business increased 0.7% year on year to 10,098 million yen, revenue in the premium membership business fell 11.1% year on year to 1,141 million yen, revenue in the advertising business decreased 17.7% year on year to 1,179 million, and commissioned business revenue2 dropped 75.8% year on year to 207 million yen. Tabelog had 136.52 million monthly unique users1 in December 2021. (New Media and Solutions) The New Media and Solutions business’s revenue increased 48.8% year on year to 7,459 million yen in the nine months ended December 30, 2021. Revenue increased in all domains, particularly in the Kyujin Box business and in the real estate domain. (b) Finance Business The finance business’s revenue grew 11.5% year on year to 2,000 million yen, while its segment income increased 25.5% year on year to 503 million yen in the nine months ended December 31, 2021. Kakaku.com Insurance, a site operated by consolidated subsidiary Kakaku.com Insurance, Inc., increased its commission revenue through growth in online applications mainly 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 mechanical accesses by third parties’ web-scraping bots etc. are eliminated from the count to the fullest extent possible. 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 these commissioned operations. – 2 – (2) Financial Position 1) Analysis of Financial Position Assets Consolidated assets at December 31, 2021, totaled 65,977 million yen, a 4,981 million yen decline from March 31, 2021. The decline was mainly the result of a 6,707 million yen decrease in cash and cash equivalents, a 1,272 million yen decline in investments accounted for using equity method, and a 1,034 million yen decline in right-of-use assets, despite increases of 1,836 million yen in other financial assets (non-current), 1,365 million yen in other current assets, and 1,117 million yen in trade and other receivables. Liabilities Consolidated liabilities at December 31, 2021, totaled 21,839 million yen, a 1,978 million yen decrease from March 31, 2021. The decrease was mainly the result of a 2,262 million yen reduction in other financial liabilities (current), a 1,158 million yen decline in income taxes payable, a 929 million yen decrease in lease liabilities (non-current), and a 347 million yen decrease in bonds and borrowings (current), despite a 2,578 million yen increase in other current liabilities. Equity Consolidated equity at December 31, 2021, totaled 44,138 million yen, a 3,003 million yen decrease from March 31, 2021. This was mainly the net result of the declaration of an 8,218 million yen dividend from retained earnings and the booking of a decline of 4,956 million yen due to the purchase and disposal of treasury shares, despite the booking of 10,448 million yen of profit attributable to owners of the parent company. 2) Cash Flows Cash and cash equivalents (“cash”) at December 31, 2021, totaled 28,182 million yen, a 6,707 million yen decrease from March 31, 2021. Cash flows from operating, investing, and financing activities were as follows. Cash flows from operating activities Operating activities provided net cash of 9,038 million yen (vs. 11,109 million yen provided in the year-earlier period). The main inflows were 14,813 million yen of profit before income taxes and 2,624 million yen in depreciation and amortization, which were partially offset by outflows of 5,649 million yen in income taxes paid and 2,265 million yen used due to the decrease in other financial liabilities. Cash flows from investing activities Investing activities used net cash of 789 million yen (vs. 1,924 million yen used in the year-earlier period). This was primarily due to 1,013 million yen used to purchase intangible assets, including server software, 647 million yen used for the purchase of investment securities, and 217 million yen used to purchase property, plant and equipment, which was partially offset by 880 million yen in proceeds from sales of investments in associates. Cash flows from financing activities Financing activities used net cash of 14,955 million yen (vs. 9,362 million yen used in the year-earlier period), mostly 8,215 million yen for dividends paid, 5,016 million yen used to purchase treasury stock, and 1,059 million yen used for the repayment of lease obligations. (3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements Regarding the consolidated earnings forecasts for the fiscal year ending March 31, 2022, no changes have been made to the consolidated earnings forecasts for the fiscal year ending March 31, 2022, announced in the “Notice of Revision of Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022” released on October 20, 2021. – 3 – 2. Condensed Consolidated Financial Statements (1) Condensed Consolidated Statement of Financial Position As of March 31, 2021 As of December 31, 2021 (Millions of yen) Assets Current assets Cash and cash equivalents Trade and other receivables Other financial assets Other current assets Total current assets Non-current assets Property, plant and equipment Right-of-use assets Goodwill and other intangible assets Investments accounted for using equity method Other financial assets Deferred tax assets Other non-current assets Total non-current assets Total assets 34,888 7,672 684 3,952 47,196 2,453 8,050 6,964 2,063 3,410 722 100 23,762 70,958 28,182 8,790 233 5,317 42,521 2,292 7,016 6,848 791 5,246 1,174 90 23,456 65,977 – 4 – As of March 31, 2021 As of September 30, 2021 (Millions of yen) Liabilities Current liabilities Trade and other payables Bonds and borrowings Other financial liabilities Income taxes payable Lease liabilities Employee benefit obligations Other current liabilities Total current liabilities Non-current liabilities Bonds and borrowings Lease liabilities Provisions Other non-current liabilities Total non-current liabilities Total liabilities Equity Capital stock Capital surplus Retained earnings Treasury shares Other components of equity Total equity attributable to owners of the parent Non-controlling interests Total equity Total liabilities and equity 2,400 806 3,968 2,736 1,357 1,628 4,013 16,907 83 6,016 539 271 6,909 23,816 916 463 47,028 (1,842) 316 46,880 261 47,141 70,958 2,550 459 1,706 1,578 1,309 1,624 6,591 15,818 76 5,087 549 308 6,021 21,839 916 141 44,777 (2,188) 294 43,939 199 44,138 65,977 – 5 – (2) Condensed Consolidated Statement of Income Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Revenue Operating expenses Other income Other expenses Operating profit Finance income Finance expenses Share of profit (loss) of associates and joint ventures accounted for by the equity method Impairment loss on investments accounted for using the equity method Gain on sales of investments in associates Gain from remeasurement relating to discontinued application of the equity method Profit attributable to: Profit before income taxes Income tax expense Profit Owners of the parent company Non-controlling interests Earnings per share Basic earnings per share (yen) Diluted earnings per share (yen) 37,768 24,345 78 33 13,469 138 67 (115) 308 – – 13,116 4,336 8,779 8,889 (110) 43.18 43.15 37,935 24,184 13,782 37 6 52 35 – (126) 1,000 139 14,813 4,374 10,440 10,448 (8) 50.86 50.83 – 6 – (3) Condensed Consolidated Statement of Comprehensive Income Profit 8,779 10,440 Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Other comprehensive income (Net of related tax effect） Items that will not be reclassified to profit or loss Net changes in fair value of financial assets measured at fair value through other comprehensive income Total items that will not be reclassified to profit or loss Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations Share of other comprehensive income of associates and joint ventures accounted for using the equity method Total items that may be reclassified to profit or loss Other comprehensive income (Net of related tax effect) Comprehensive income Comprehensive income attributable to: Owners of the parent company Non-controlling interests 39 39 0 4 4 43 8,823 8,932 (110) (64) (64) (0) (1) (2) (66) 10,374 10,382 (8) – 7 – (4) Condensed Consolidated Statements of Changes in Equity Nine months ended December 31, 2020 (From April 1, 2020 to December 31, 2020) (Millions of yen) Capital stock Capital surplus Retained earnings Treasury shares Non-controlling interests Total equity Total Subscription rights to shares Total other components of equity Equity attributable to owners of the parent company Other components of equity Net changes in fair value of financial assets measured at fair value through other comprehensive income Exchange differences on translation of foreign operations Share of other comprehensive income of associates and joint ventures accounted for using the equity method 916 464 43,515 (2,196) (7) (15) (6) 238 210 42,909 394 43,303 Profit Other comprehensive income － － － － － － 8,889 － － － － － 8,889 (110) 8,779 － 43 43 0 43 － － 8,889 － － 43 8,932 (110) 8,823 Dividends － － (8,235) － － － (8,235) － (8,235) － － (11) 232 (43) (43) 177 － 177 － 39 39 － － － － － 0 0 － － － － － 4 4 － － － － － 1 53 － － － － 95 95 95 － 95 Others (1) － － 1 (0) － (0) (1) (8,246) 232 53 (7,963) － (7,963) 916 463 44,158 (1,964) 32 (15) (2) 291 306 43,879 284 44,163 － － Balance at beginning of period Total comprehensive income Purchase or disposal of treasury shares Share-based payment transactions Total transactions with owners Balance at end of period – 8 – Nine months ended December 31, 2021 (From April 1, 2021 to December 31, 2021) Capital stock Capital surplus Retained earnings Treasury shares Equity attributable to owners of the parent company Other components of equity Net changes in fair value of financial assets measured at fair value through other comprehensive income Exchange differences on translation of foreign operations Share of other comprehensive income of associates and joint ventures accounted for using the equity method (Millions of yen) Non-controlling interests Total equity Total Subscription rights to shares Total other components of equity 916 463 47,028 (1,842) (14) (1) 293 316 46,880 261 47,141 － － － 10,448 － － － (0) － － － 10,448 (8) 10,440 (1) － (66) (66) 0 (66) － － 10,448 (0) (1) (66) 10,382 (8) 10,374 Dividends － － (8,218) － (8,218) － (8,218) － － (4,602) (346) (7) (7) (4,956) － (4,956) － (306) － － 0 － － － 0 (306) (36) (342) － － － － － － － 51 51 51 － 51 Change in cope of consolidation － － 122 － 122 (18) 104 Others － (15) － － (15) － (15) － (322) (12,698) (346) 44 (13,323) (54) (13,377) 916 141 44,777 (2,188) (26) (15) (2) 337 294 43,939 199 44,138 － － － － 43 － － － － － － － － － － － 37 － (64) (64) － － － － 0 － － － － － – 9 – Balance at beginning of period Profit Other comprehensive income Total comprehensive income Purchase or disposal of treasury shares Changes in ownership interest in subsidiaries Share-based payment transactions Total transactions with owners Balance at end of period (5) Condensed Consolidated Statement of Cash Flows Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Cash flows from operating activities Profit before income taxes Adjustments to reconcile profit before income taxes Depreciation and amortization Interest and dividend income Decrease (increase) in trade and other receivables Increase (decrease) in trade and other payables Increase (decrease) in other financial liabilities Other Subtotal Interest paid Income taxes paid Interest and dividend income received Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from distribution of investment in partnerships Proceeds from sales of investments in associates Payments for lease and guarantee deposits Other Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in short-term loans payable Repayments of long-term loans payable Repayment of lease obligations Purchase of treasury shares Dividends paid Purchase of shares of subsidiaries that do not result in change in scope of consolidation Proceeds from issuance of share options Other Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period – 10 – 13,116 2,653 (4) (539) 107 4,130 (9) 19,453 7 (36) (8,315) 11,109 (414) (1,232) (546) 23 – (91) 337 (1,924) 450 (32) (1,723) (8,231) 177 (4) (9,362) – – 1 (176) 29,504 29,328 14,813 2,624 (3) (1,117) 148 (2,265) 509 14,709 7 (29) (5,649) 9,038 (217) (1,013) (647) 57 880 (23) 173 (789) (315) (38) (1,059) (5,016) (8,215) (342) 34 (4) (1) (14,955) (6,707) 34,888 28,182 (6) Notes on the Condensed Consolidated Financial Statements (Notes regarding the going concern assumption) Not applicable. (Significant subsequent events) Not applicable. – 11 –