Gurunavi : Consolidated Financial Results for 1Q FY2021

Translation

August 4, 2021

Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2022

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

Scheduled date to submit Quarterly Securities Report:	August 5, 2021
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 first quarter of the fiscal year ending March 31,

2022 (from April 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
		Net sales		Operating income	Ordinary income	Net income attributable
			to owners of parent
Three months ended	Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen	%
June 30, 2021	3,034	70.2	(1,363)		-	(1,337)	-	(1,353)	-
June 30, 2020	1,783	(76.4)	(3,820)		-	(3,815)	-	(3,777)	-
Note:	Comprehensive	income
	Three months ended June 30, 2021:	¥(1,336) million	[	-%]
	Three months ended June 30, 2020:	¥(3,740) million	[	-%]
		Basic earnings	Diluted earnings
		per share		per share
Three months ended		Yen			Yen
June 30, 2021	(28.84)		-
June 30, 2020	(80.60)		-
(2) Consolidated financial position
		Total assets	Net assets		Equity ratio		Net assets per share
As of		Millions of yen	Millions of yen		%		Yen
June 30, 2021		11,054		8,045		72.0		169.54
March 31, 2021		13,567		9,375		68.5		198.02
Reference:	Equity
	As of June 30, 2021:	¥7,954 million	As of March 31, 2021:	¥9,290 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	-	0.00	-	0.00	0.00
March 31, 2021
Fiscal year ending	-
March 31, 2022
Fiscal year ending
March 31, 2022		0.00	-	0.00	0.00
(Forecast)
Note:	Revisions to the	cash dividend forecasts	most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

(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
Six months ending	6,200	6.5	(2,950)	-	(2,950)	-	(2,970)	-	(63.30)
September 30, 2021
Fiscal year ending	-	-	-	-	-	-	-	-	-
March 31, 2022
Note:	Revisions to the	consolidated earnings	forecasts most recently announced: Yes

* Notes

1. Changes in significant subsidiaries during the three months under review: 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: Yes
   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 June 30, 2021	48,675,100 shares
As of March 31, 2021	48,675,100 shares

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

As of June 30, 2021	1,757,262 shares
As of March 31, 2021	1,757,262 shares

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

Three months ended June 30, 2021	46,917,838 shares
Three months ended June 30, 2020	46,868,538 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, 2021	As of June 30, 2021
Assets
	Current assets
	Cash and deposits	7,507,254	5,587,700
	Notes and accounts receivable - trade	2,741,754	2,226,920
	Accounts receivable - other	1,154,849	793,476
	Other	842,395	656,113
	Allowance for doubtful accounts	(581,667)	(381,110)
	Total current assets	11,664,585	8,883,099
	Non-current assets
	Property, plant and equipment	-	37,619
	Intangible assets	-	323,386
	Investments and other assets	1,903,296	1,810,798
	Total non-current assets	1,903,296	2,171,804
	Total assets	13,567,882	11,054,903
Liabilities

Current liabilities

Notes and accounts payable - trade

Income taxes payable

Provision for bonuses

Provision for point card certificates

Accounts payable - other

Asset retirement obligations

Deposits received

Other

Total current liabilities

Non-current liabilities

Asset retirement obligations

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

Foreign currency translation adjustment

143,539	72,873
57,599	8,660
247,272	279,657
158,979	29,348
1,482,069	1,164,249
111,738	-
1,675,578	979,350
147,280	306,360
4,024,059	2,840,500
167,531	167,708
900	900
168,431	168,608
4,192,490	3,009,108
2,334,300	2,334,300
2,884,780	2,884,780
8,745,156	7,391,930
(4,646,756)	(4,646,756)
9,317,480	7,964,254
(6,308)
(9,034)
(20,477)	(721)

Total accumulated other comprehensive income	(26,786)	(9,755)
Share acquisition rights	84,698	91,296
Total net assets	9,375,392	8,045,795
Total liabilities and net assets	13,567,882	11,054,903
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1. Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (cumulative)

		(Thousands of yen)
	Three months ended	Three months ended
	June 30, 2020	June 30, 2021
Net sales	1,783,360	3,034,405
Cost of sales	1,738,267	1,239,710
Gross profit	45,093	1,794,694
Selling, general and administrative expenses	3,865,735	3,157,952
Operating loss	(3,820,641)	(1,363,258)

Non-operating income

Gain on sales of supplies

Dividend income

Gain on forfeiture of unclaimed dividends Other

Total non-operating income

Non-operating expenses

Commitment fees

Total non-operating expenses

Ordinary loss

Extraordinary income

Gain on sale of investment securities Gain on sale of businesses

Total extraordinary income

Extraordinary losses

Loss on valuation of investment securities

-	16,936
3,026	5,814
2,261	2,746
3,639	6,088
8,927	31,586
3,927	5,534
3,927	5,534
(3,815,642)	(1,337,205)
92,500	-
37,443	-
129,943	-
82,067	6,272

Total extraordinary losses	82,067	6,272
Net loss before income taxes	(3,767,766)	(1,343,477)
Income taxes	9,720	9,747
Net loss	(3,777,487)	(1,353,225)
Net loss attributable to owners of parent	(3,777,487)	(1,353,225)

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Consolidated statement of comprehensive income (cumulative)

		(Thousands of yen)
	Three months ended	Three months ended
	June 30, 2020	June 30, 2021
Net loss	(3,777,487)	(1,353,225)
Other comprehensive income
Valuation difference on available-for-sale securities	54,941	(2,725)
Foreign currency translation adjustment	(17,611)	19,756
Total other comprehensive income	37,330	17,030
Comprehensive income	(3,740,156)	(1,336,195)
Comprehensive income attributable to:
Owners of parent	(3,740,156)	(1,336,195)

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