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

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1H Highlights

Sales Revenue Operating Income

JPY 5.78bn (-0.15bn YoY)

• Revenue of Japan recipe service (Premium Service) was

JPY 3.68bn (＋0.14bn YoY)

”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)

• SG&A expense was JPY 5.21bn (+0.85bn YoY)

Expenses associated with strengthened recruiting activities worldwide and expenses related with new businesses such as ”CookpadTV” increased

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Operation Results

5 （in millions of JPY）

FY2019 FY2018 1H 1H vs PY

Sales revenue

5,786 5,938

• 2.6%

Decrease in sales from the Revenue sharing and the Advertising business. Sales from the Premiun servise members increased. Operating income

456 1,583

• 71.2%

Increase in payroll and other expense related with recruitment in overseas and new businesses. Operating income margin

7.9% 26.7%

• 18.8pt Increase in SG&A expenses.

Profit before tax

429 1,530

• 71.9% Exchange gain in this year.

Profit attributable to shareholders of Cookpad Inc.

289 607

• 52.3%

Non-controlling interest of CookpadTV happened through the third-party allocation of shares to Mitsubishi corporation

• n Aug 2018.

Discription

Change of sales disclosure

※Written in red are reclassified items

After

Changed segment name and sales classification to clarify our intention to focus on Business to make everyday cooking fun!

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Make everyday cooking fun!

Before

Japan recipe service (Premium Services)

Premium Service membership sales of recipe service in Japan

Japan recipe service (Advertising)

Advertising sales of recipe service in Japan

Other

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

Sales revenue Mix 5,786

FY2019 1H

7 （in millions of JPY）

63.7 % 24.2 % 12.2 %

Make everyday cooking fun!

Japan recipe service (Premium service) 3,683 Japan recipe service (Advertisement) 1,399 Others 703 Advertisement sales on domestic "Cookpad" sites 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 Domestic "Cookpad" Premium Service membership sales

46.1% 9.3% 9.3% 5.6% 6.2% 0.4%1.3% 21.8%

SG&A Expenses Mix 5,210

FY2019 1H

8 （in millions of JPY） Personnel expenses 2,404 Outsourcing expenses 484 Sales commisions 484 Cloud computing fee 292 Depreciation expense 320 Depreciation cost of fixed assets Rent 18 Promotion fee/ Advertising 67 Others 1,137 System usage fee, Recruiting expense etc. Salary for employees Commisitons to settlement platform of Premium membership Fee to use cloud computing for “Cookpad” services Promotion fee, Advertising for each service Rent of office and Cookpad TV studios Mainly "Cookpad" and "Cookpad TV"outsourcing expenses

Financial Summary by Quarter

*1 *1 Impairment losses on goodwill JPY 0.8 billion *2 Impairment losses on goodwill and fixed assets JPY 0.6 billion *2

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（in millions of JPY）

3,660 3,455 3,063 3,228 2,974 2,964 2,872 3,065 2,937 2,848 1,972 1,730 437 1,250 831 752 471

• 390

298 158 53.9% 50.1% 14.3% 38.7% 27.9% 25.4% 16.4%

• 12.7%

10.1% 5.6%

• 20.0%
• 10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

• 1,000
• 500

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 1Q 2Q 3Q＊1 4Q 1Q 2Q 3Q 4Q*2 1Q 2Q FY2017 FY2018 FY2019 Sales revenue Operating income Operating income margin

1,746 1,719 1,725 1,711 1,752 1,789 1,805 1,808 1,827 1,856 1,116 1,065 807 1,053 837 792 704 878 759 640 797 669 530 463 384 382 362 377 351 352 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019 Japan recipe service (Premium service) Japan recipe service (Advertisement) Others

FY2018 2Q on FY2019 2Q -3.9％

Sales revenue by Quarter

* Data of FY2017 & FY2018 are based on new sales classification

FY2019 1Q on FY2019 2Q -3.0%

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（in millions of JPY）

500 1,000 1,500 2,000 2,500 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019

SG&A Expenses by Quarter

FY2019 1Q on FY2019 2Q ＋0.4% FY2018 2Q on FY2019 2Q ＋16.6％

* Depreciation expense is shown separately from FY2019 1Q in order to explain IFRS 16 reclassification between depreciation expense and Rent

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（in millions of JPY）

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

333 354 367 389 413 443 472 476 490 502

Cash Flows

12 （in millions of JPY） FY2019 FY2018 FY2018 1H 1H Full year Cash flows from operating activities

115 1,358

• 1,243

1,136

Cash flows from investing activities

• 136
• 392

256

• 810

Cash flows from financing activities

• 221
• 856

635 3,129

Cash and cash equivalents at end of period

22,490 19,492 2,998 22,756

Increase /Decrease

Web/APP Usage

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Domestic “Cookpad” monthly average users by quarter

54.83

* Monthly average of visitor counted by every access from one of the devices or browsers above

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*

（in millions）

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 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

Domestic “Cookpad” daily user trend

15 （in millions）

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00

Overseas “Cookpad” monthly average users by quarter*1

*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.

38.64

16 （in millions）

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019

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

*1

“Cookpad” cooking recipes

3.15 recipes 2.86 recipes

Domestic Overseas

17 （in millions）

2.66 2.73 2.78 2.83 2.89 2.95 3.00 3.05 3.1 1.03 1.19 1.44 1.65 1.85 2.12 2.41 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019

1.958 1.938 1.94 1.959 1.999 1.984 1.998 2.048 2.043

0.500 1.000 1.500 2.000 2.500 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019

Domestic “Cookpad” premium service members

2.025members

* The number of Premium Service members via iOS is tallied based on sales reports from Apple Inc.

18 （in millions）

New Business Initiatives

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Cooking Video Business

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• Live cooking app released in March 2018

Significant update of “cookpadTV”

The live cooking app that had provided new cooking experiences to users as a live delivery service enabling people to cook with chefs and celebrities was updated as “cookpadLive” in April 2019. The content delivered has been expanded with a richly diverse cast, the delivery of programs in the sports category and the addition of new functions in the form of “special time” and “studio viewing mode.”

• “Cookpad store TV” cooking video signage

Over 13,000 units installed in approximately 5,000 stores (as of June 30, 2019)

Full-scale implementation started in December 2017, and the service has been expanding due to being well received in many retail chains. It is possible to add value to the sales floor without the addition of personnel, and there is an increasing number of cases where there is a significant difference in sales

• f the products covered in stores where the units are installed

and those where they are not. There are plans to release several new services in partnership with retail companies in future.

Shopping Business

• Japan’s first “fresh food” e-commerce platform providing same-day delivery.

A system for delivering to “Mart Stations,” which are fresh produce delivery boxes enabling food to be received while it is still fresh.

All kinds of fresh produce can be sold by local farms, retailers and wholesalers through the app developed by Cookpad. Users can purchase products from multiple stores through the app. Delivery of products is completely free, and can be received

• n the same day at the earliest.

We aim to expand the service by providing value to sellers, users and stores where Mart Stations are located.

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Examples of locations where Mart Stations are installed

Shopping Business

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• Mart Stations have been installed in 22 locations in parts of Tokyo and Kanagawa. We aim to install them

in 100 locations by the end of the year.

The number of participating sellers and the number of products have increased significantly since the end of last year, the service area and number of stations installed have expanded, and the cutoff time for orders has been extended. Prices are the same as or cheaper than supermarkets. The services is provided in iOS and Android apps.

December 31, 2018 Participating sellers: 8 Products provided: 121 Number of stations: 6 Cutoff time: 6pm the previous day July 31, 2019 Participating sellers: 41 Products provided: 812 Number of stations: 22 Cutoff time: 2am the same day

Smart Kitchen Business

• Beyond recipes to a delicious smart kitchen

“OiCy” enabling people to make what they find to be delicious is a smart kitchen service that enriches home-made meals and people’s lives by connecting people and Cookpad recipes to a variety of devices. A demonstration showing an aspect of the linkage of the OiCy service and cooking appliances was conducted at Smart Kitchen Summit Japan held on August 8 and 9, 2019.

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Cookpad Inc. Investor Relations Email ： ir@cookpad.com

This presentation contains certain comments that may be characterized as forward-looking statements. These statements are based on information currently available to management and its beliefs and assumptions regarding future business and financial performance. A number of factors such as changes in business environment may cause actual results to differ materially from any future results or performance expressed or implied by this presentation.

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