1H of FY2019 Cookpad Inc. Make everyday cooking fun! 2 Business - PowerPoint PPT Presentation

1H of FY2019 Cookpad Inc.

Make everyday cooking fun! 2

Business Overview 3

1H Highlights JPY 5.78bn (-0.15bn YoY) -Revenue of Japan recipe service (Premium Service) was Sales JPY 3.68bn ( ＋ 0.14bn YoY) Revenue ” Cookpad ” Premium Service members increased by 41K YoY -Revenue of Japan recipe service (Advertisement) was JPY 1.39bn (-0.23bn YoY) -Other revenue was JPY 0.7bn （ -0.06bn YoY ） JPY 0.45bn (-1.12bn YoY) Operating -SG&A expense was JPY 5.21bn (+0.85bn YoY) Income Expenses associated with strengthened recruiting activities worldwide and expenses related with new businesses such as ” CookpadTV ” increased 4

Operation Results （ in millions of JPY ） FY2019 FY2018 1H 1H vs PY Discription Decrease in sales from the Revenue sharing and the 5,786 5,938 -2.6% Sales revenue Advertising business. Sales from the Premiun servise members increased. Increase in payroll and other expense related with 456 1,583 -71.2% Operating income recruitment in overseas and new businesses. Operating 7.9% 26.7% -18.8pt Increase in SG&A expenses. income margin 429 1,530 -71.9% Exchange gain in this year. Profit before tax Profit attributable to Non-controlling interest of CookpadTV happened through 289 607 -52.3% shareholders of the third-party allocation of shares to Mitsubishi corporation Cookpad Inc. on Aug 2018. 5

Change of sales disclosure Changed segment name and sales classification to clarify our intention to focus on Business to make everyday cooking fun! After Before Premium Service membership sales of Japan recipe service recipe service in Japan (Premium Services) Advertising sales of recipe service in Japan recipe service Make Japan (Advertising) everyday Editorial fee sales of publications cooking fun! Revenue share sales of recipe service in Japan Other Premium membership sales and advertising sales in overseas Sales of CookpadTV, Komerco, Cookpad mart and other new ※Written in red are reclassified items 6

Sales revenue Mix （ in millions of JPY ） Make everyday cooking fun! 12.2 Japan recipe service (Premium service) 3,683 % Domestic "Cookpad" Premium Service membership sales FY2019 Japan recipe service (Advertisement) 1,399 24.2 63.7 1H Advertisement sales on domestic "Cookpad" sites % % 5,786 Others 703 Editorial fee sales of publications Revenue share sales of recipe service in Japan Premium membership sales and advertising sales in overseas Sales of CookpadTV, Komerco, Cookpad mart and other new businesses 7

SG&A Expenses Mix （ in millions of JPY ） Personnel expenses 2,404 Salary for employees Outsourcing expenses 484 Mainly "Cookpad" and "Cookpad TV"outsourcing expenses 21.8% Sales commisions 484 Commisitons to settlement platform of Premium membership FY2019 Cloud computing fee 292 0.4%1.3% 46.1% Fee to use cloud computing for “Cookpad” services 1H 6.2% Depreciation expense 320 5,210 Depreciation cost of fixed assets Rent 18 5.6% Rent of office and Cookpad TV studios Promotion fee/ Advertising 67 9.3% Promotion fee, Advertising for each service 9.3% Others 1,137 System usage fee, Recruiting expense etc. 8

Financial Summary by Quarter （ in millions of JPY ） Sales revenue Operating income Operating income margin 4,000 60.0% 53.9% 50.1% 3,500 3,660 50.0% 3,455 3,000 3,228 3,063 3,065 38.7% 40.0% 2,974 2,964 2,937 2,872 2,848 2,500 27.9% 30.0% 25.4% 2,000 1,972 16.4% 10.1% 1,500 1,730 20.0% 14.3% 5.6% 1,000 1,250 10.0% 831 752 500 0.0% 437 471 298 158 *1 *2 0 1Q 2Q 4Q 1Q 2Q 3Q 4Q*2 1Q 2Q 3Q ＊ 1 -10.0% -500 FY2017 FY2018 -390 FY2019 *1 Impairment losses on goodwill JPY 0.8 billion -12.7% 9 -1,000 -20.0% *2 Impairment losses on goodwill and fixed assets JPY 0.6 billion

Sales revenue by Quarter Japan recipe service (Premium service) Japan recipe service (Advertisement) Others （ in millions of JPY ） 4,000 FY2019 1Q on FY2019 2Q -3.0% 3,500 FY2018 2Q on FY2019 2Q -3.9 ％ 797 669 3,000 463 377 530 384 382 351 352 362 1,116 2,500 1,065 1,053 837 878 640 792 759 807 704 2,000 1,500 1,856 1,827 1,000 1,808 1,805 1,752 1,725 1,789 1,746 1,719 1,711 500 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019 10 * Data of FY2017 & FY2018 are based on new sales classification

SG&A Expenses by Quarter FY2019 1Q on FY2019 2Q ＋ 0.4% （ in millions of JPY ） FY2018 2Q on FY2019 2Q ＋ 16.6 ％ 2,500 2,000 1,500 1,000 500 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019 Others 302 314 310 397 454 460 526 573 581 555 Promotion fee/ Advertising 45 25 21 30 14 40 33 251 42 24 Rent 60 67 70 96 112 121 106 127 10 8 Depreciation expense 27 28 33 40 51 58 70 79 160 160 Cloud computing fee 101 106 111 112 127 118 128 132 138 154 Sales commisions 134 125 152 205 220 235 237 255 245 239 Outsourcing expenses 204 199 202 196 207 216 222 219 237 247 Personnel expenses 701 765 785 973 926 986 1,036 1,190 1,184 1,219 Total 1,578 1,632 1,687 2,053 2,114 2,237 2,361 2,829 2,600 2,609 11 333 354 367 389 413 443 472 476 490 502 Consolidated employees as end of quarter * Depreciation expense is shown separately from FY2019 1Q in order to explain IFRS 16 reclassification between depreciation expense and Rent

Cash Flows （ in millions of JPY ） FY2019 FY2018 FY2018 1H 1H Full year Increase /Decrease Cash flows 115 1,358 -1,243 1,136 from operating activities Cash flows -136 -392 256 -810 from investing activities Cash flows -221 -856 635 3,129 from financing activities Cash and cash equivalents 22,490 19,492 2,998 22,756 at end of period 12

Web/APP Usage 13

* Domestic “ Cookpad ” monthly average users by quarter （ in millions ） 70.00 54.83 60.00 50.00 40.00 30.00 20.00 10.00 0.00 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019 Features Phone 0.31 0.23 0.20 0.19 0.17 0.20 0.11 0.09 0.09 0.05 PC 11.94 11.46 10.75 10.87 9.80 9.80 9.20 9.08 8.02 7.85 Apps 9.40 9.01 8.56 8.70 8.96 8.49 8.27 8.01 8.10 7.75 Smartphone Browsers 39.67 37.91 35.76 36.87 37.57 37.09 36.83 37.43 39.42 39.16 Total 61.34 58.62 55.28 56.65 56.53 55.59 54.42 54.62 55.64 54.83 14 * Monthly average of visitor counted by every access from one of the devices or browsers above

Domestic “ Cookpad ” daily user trend （ in millions ） 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 15

Overseas “ Cookpad ” monthly average users by quarter *1 （ in millions ） 38.64 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019 *1 Others *2 1.36 3.75 4.89 5.80 8.38 9.27 11.78 12.35 9.82 10.60 English 1.01 0.60 0.66 0.75 0.85 0.82 1.03 1.13 1.62 1.29 Arabic 5.39 5.32 3.73 4.60 4.71 5.18 4.16 4.06 3.94 3.75 Russian 4.22 3.55 Spansh 13.15 11.24 9.75 11.65 10.24 10.13 10.21 11.79 10.38 9.25 Bahasa Indonesian 8.45 9.93 10.18 11.37 12.07 10.90 10.90 10.86 11.03 10.17 Total 29.38 30.86 29.24 34.20 36.27 36.33 38.09 40.21 41.04 38.64 16 *1 Monthly average of visitor counted by Google Analytics. The data from FY2019 is tallied based on 10 ％ of sample data *2 Getting data by all the languages from FY2019 1Q. A language of over 3million MAU will be disclosed separately.

“ Cookpad ” cooking recipes Domestic Overseas （ in millions ） 3.15 recipes 3.50 3.1 3.05 3.00 2.95 2.89 2.83 3.00 2.86 recipes 2.78 2.73 2.66 2.50 2.41 2.12 2.00 1.85 1.65 1.50 1.44 1.19 1.00 1.03 0.50 0.00 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 17 FY2017 FY2018 FY2019

Domestic “ Cookpad ” premium service members （ in millions ） 2.500 2.025 members 2.048 2.043 1.999 1.998 1.984 1.958 1.959 1.94 1.938 2.000 1.500 1.000 0.500 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019 18 * The number of Premium Service members via iOS is tallied based on sales reports from Apple Inc.

New Business Initiatives 19

Cooking Video Business ● “Cookpad store TV” cooking video signage ● Live cooking app released in March 2018 Over 13,000 units installed in approximately Significant update of “cookpadTV” 5,000 stores (as of June 30, 2019) The live cooking app that had provided new cooking experiences Full-scale implementation started in December 2017, and the to users as a live delivery service enabling people to cook with service has been expanding due to being well received in chefs and celebrities was updated as “cookpadLive” in April 2019. many retail chains. It is possible to add value to the sales floor The content delivered has been expanded with a richly diverse without the addition of personnel, and there is an increasing cast, the delivery of programs in the sports category and the number of cases where there is a significant difference in sales addition of new functions in the form of “special time” and of the products covered in stores where the units are installed “studio viewing mode.” and those where they are not. There are plans to release several new services in partnership with retail companies in future. 20