FY2022.9 Q2 Presentation Material
Kufu Company Inc.

May 13, 2022
1

Agenda1. Consolidated Financial Results for FY2022.9 Q2
2. Business Overview by Segment• Daily Life Business• Life Event Business21. Consolidated Financial Results for
FY2022.9 Q2

3

Group Composition (Main Group Companies)
Daily Life BusinessLife Event Business

Daily life
domainHomedomainShopping information service andlifestyle information media

MarriagedomainHome and real estate
specialized media

Management consulting service

Wedding information
media and service

Educational
app

Household budget
service

Purchase and resale service

Regional
information domain

Consulting service forhigh-net-worth individuals

Insurance domain
Insurancesales agency

Regional information media

Development and salesof insurance products

OthersInvestment and entrepreneur
support domain

Design domain
Technology domain

Development and researchBusiness management
domain

くふうキャピタル

Support for holding companies
Investment management
and operating companies

Affiliates
Informational website for trips
with children

4Highlights
Group as a whole
In Q2 (Jan. to Mar. 2022), EBITDA came to 658 million yen, +83.7% YoY (+24.3% excluding the consolidation of HyAS & Co.
Inc.), and progress toward full-year earnings forecasts was also steady.

Daily Life Business(Daily life domain) The Tokubai business performed well against plans.
Price revisions for corporate service plans scheduled for this fiscal year have been rescheduled to be carried out at the sametime as a service update in the next fiscal year.
Large-scale service updates including the introduction of a spot pricing model were launched to acquire new businessformats and improve unit prices.

Life Event Business(Home domain)

HyAS & Co. Inc. performed well against plans.
The consulting business for high-net-worth individuals contributed to higher sales and profits for the overall home domain.

(Marriage domain) While we continued to invest in human resources and development to strengthen the media for the future, sales decreased
and losses were recorded mainly because the number of weddings held dropped in the producing business due to the impactof the COVID-19 pandemic and other factors.

5Consolidated Financial Results
 Progress toward full-year earnings forecasts was good

FY2022.9
FY2020.9*

FY2021.9*

Net sales

6,042

11,25618,000Operating profit

604

1,000

EBITDA

890

1,617(JPY MM)Q2(cumulative)

Progress rate

159.9%

9,127

50.7%

1,300

129.9%

773

59.5%

2,300

142.2%

1,284

55.9%

Forecast

YoY* Results for FY2020.9 (Oct. 2019 to Sep. 2020) and FY2021.9 (Oct. 2020 to Sep. 2021) are the simple aggregate of consolidated earnings results for the former KUFU COMPANY INC.
and Locoguide Inc. for each period (unaudited).

6

Consolidated Financial Results – Quarter Achieved significant year-on-year sales and profit growth. Sales and profits also increased steadily QoQ※
FY2021.9*

FY2022.9

Q1

Q2

Q3

Q4

Q1

Q2

YoY

QoQ

Net sales

1,340

2,053

1,695

6,166

4,528

4,599

224.0%

101.6%

Operating profit

156

261

143

438

369

403

154.4%

109.0%EBITDA

226

358

247

784

626

658

183.7%

105.2%(JPY MM)* Results for FY2021.9 (Oct. 2020 to Sep. 2021) are the simple aggregate of consolidated earnings for the former KUFU COMPANY INC. and Locoguide Inc. (unaudited).
Profit (loss) from KIDS STAR Inc. was consolidated from the second quarter of FY2021.9, and profit (loss) from SHIZUOKAONLINE CO., LTD. and HyAS & Co. Inc. was consolidated from the fourth
quarter of FY2021.9.
In accordance with the change in accounting period of HyAS & Co. Inc, five months of profit (loss) from HyAS & Co. Inc. was recorded for May to Sep. 2021 in the fourth quarter of FY2021.9.

7

Consolidated Financial Results – Quarterly Trends
 Achieved significant year-on-year sales and profit growth. Sales and profits also increased steadily QoQ(JPY MM)(JPY MM)Net sales

OP

EBITDA

800

7,000

784

6,000
600

5,000
4,000

400
358
4,528

2,000
1,000

438

6,166

3,000

4,599

200
1,340

2,053

1,695

Q2

Q3

658

626

226

369

261

156

403

247
143

0

0
Q1
FY2021.9*Q4Q1
FY2022.9Q2Q1
FY2021.9*

Q2

Q3

Q4

Q1
FY2022.9

Q2* Results for FY2021.9 (Oct. 2020 to Sep. 2021) are the simple aggregate of consolidated earnings for the former KUFU COMPANY INC. and Locoguide Inc. (unaudited).
Profit (loss) from KIDS STAR Inc. was consolidated from the second quarter of FY2021.9, and profit (loss) from SHIZUOKAONLINE CO., LTD. and HyAS & Co. Inc. was consolidated from the fourth
quarter of FY2021.9.
In accordance with the change in accounting period of HyAS & Co. Inc, five months of profit (loss) from HyAS & Co. Inc. was recorded for May to Sep. 2021 in the fourth quarter of FY2021.9.

8

Consolidated Financial Results – Quarterly Trends (Ex. HyAS) Excluding the impact of the consolidation of HyAS & Co. Inc., sales and profits continued to grow

(JPY MM)Net sales(JPY MM)

3,000

OP

EBITDA

500

2,500

400

2,000
300
1,500
2,407

2,576

2,053

1,000
500

2,565

358

1,695
1,340

100

0

445

425

200
226

347

261

156

247

309

329

233

143

0
Q1
FY2021.9*

Q2

Q3

Q4

Q1
FY2022.9Q2Q1
FY2021.9*

Q2

Q3

Q4

Q1
FY2022.9

Q2* Results for FY2021.9 (Oct. 2020 to Sep. 2021) are the simple aggregate of consolidated earnings for the former KUFU COMPANY INC. and Locoguide Inc. (unaudited).
Profit (loss) from KIDS STAR Inc. was consolidated from the second quarter of FY2021.9, and profit (loss) from SHIZUOKAONLINE CO., LTD. was consolidated from the fourth quarter of FY2021.9.

9

Consolidated Financial Results – Net Sales by Segment (Quarter) The Daily Life Business remained flat from the previous quarter despite a steady increase in sales of the Tokubaibusiness due to a decrease in sales of other businesses
 Sales of the Life Event Business increased QoQ as increased sales of the home domain offset decreased sales
in other domains
1
FY2021.9*※1

Q1

Q2

FY2022.9

Q3

Q4

Q1

Q2

YoY

QoQ

(JPY MM)
Daily Life Business*2※2

614

713

769

960

1,101

1,101

154.3%

100.0%

Life Event Business*3 ※3

694

933

908

5,190

3,426

3,489

373.9%

101.9%

Other

61

450

50

43

36

39

8.7%

105.9%

Adjustments

-30

-44

-31

-27

-35

-30

-

-

Net sales*1: Results for FY2021.9 (Oct. 2020 to Sep. 2021) are the simple aggregate of consolidated earnings for the former KUFU COMPANY INC. and Locoguide Inc. (unaudited).
*2: In the “Daily Life Business,” profit (loss) from KIDS STAR Inc. was consolidated from the second quarter of FY2021.9, and profit (loss) from SHIZUOKAONLINE CO., LTD. was consolidated from thefourth quarter of FY2021.9.
*3: In the “Life Event Business,” profit (loss) from HyAS & Co. Inc. was consolidated from the fourth quarter of FY2021.9.
In accordance with the change in accounting period of HyAS & Co. Inc, five months of profit (loss) from HyAS & Co. Inc. was recorded for May to Sep. 2021 in the fourth quarter of FY2021.9.

10

Consolidated Financial Results – OP and EBITDA (Quarter) The Tokubai business achieved a steady increase in profits, but profits for the Daily Life Business as a whole andfor other businesses decreased QoQ Profits for the Life Event Business as a whole increased as profits for the home domain increased by more than
30% QoQ, despite losses recorded by other domains
FY2021.9*1
Q1Q2

FY2022.9

Q3

Q4

Q1

Q2

YoY

QoQ

(JPY MM)OP

EBITDA

Daily Life Business*2

176

185

207

220

365

351

189.0%

96.2%

Life Event Business*3

83

112

91

410

243

280

248.9%

115.3%

Other

-16

62

-22

-29

-31

-27

-

-

Adjustments

-86

-100

-133

-161

-207

-202

-

-

Daily Life Business*2

185

206

234

257

397

383

185.4%

96.5%

Life Event Business*3

97

126

105

587

328

365

287.5%

111.1%

Other

-16

62

-22

-29

-31

-26

-

-

Adjustments

-40

-37

-70

-30

-67

-62

-

-

*1: Results for FY2021.9 (Oct. 2020 to Sep. 2021) are the simple aggregate of consolidated earnings for the former KUFU COMPANY INC. and Locoguide Inc. (unaudited).
*2: In the “Daily Life Business,” profit (loss) from KIDS STAR Inc. was consolidated from the second quarter of FY2021.9, and profit (loss) from SHIZUOKAONLINE CO., LTD. was consolidated from thefourth quarter of FY2021.9.
*3: In the “Life Event Business,” profit (loss) from HyAS & Co. Inc. was consolidated from the fourth quarter of FY2021.9.
In accordance with the change in accounting period of HyAS & Co. Inc, five months of profit (loss) from HyAS & Co. Inc. was recorded for May to Sep. 2021 in the fourth quarter of FY2021.9.

11

Consolidated Financial Results – B/S(JPY MM)

As of
As of end-Mar.
establishment in
2022
Oct. 2021

Change15,613

13,725-1,888(Cash and deposits)

7,780

7,120

-660

(Operational investment
securities)

3,335

1,759

-1,575(Real estate for sale)

2,412

2,595

182

Non-current assets

6,374

6,745

371

(Goodwill)

4,190

3,858

-332

(Investments and other assets )

1,096

1,844

747

22,00010,46020,4799,940-1,521
-520

6,432

6,046

-386

11,54010,539-1,001(Retained earnings)

738

980

241

(Valuation difference on
available-for-sale securities)

455

-856

-1,31222,00020,479-1,521

Current assets

AssetsLiabilities(Short-term and long-termborrowings)

Net assets

Total liabilities and net assets* Items in parentheses are included in totals.

Change factors
・ While we acquired funds through our operating
activities, cash and deposits declined 660 million
yen mainly owing to the repayment of borrowings
and the acquisition of investment securities
・ Operational investment securities declined 1,575
million yen owing partly to changes in the fair valueof securities with a fair value and revisions to thebook value as a result of the receipt of dividends
・ Investment and other assets increased 747 million
yen mainly owing to the acquisition of investment
securities

・ Short-term borrowings and long-term borrowings
declined 386 million yen mainly owing to repayments
・ Valuation difference on available-for-salesecurities declined 1,312 million yen owing partly tochanges in the fair value of securities with a fair
value

12

Group Business Foundations (as of End-Mar. 2022)
Users
Support users’ actions through three contact points with users

Media

SaaS
Indirectly provide services to

Maximize contact points with users

users through support forbusiness operators

Tool/Agent
Provide useful tools for daily life andspecialized services for life events

Total tool downloads

*1:
*2:
*3:
*4:

Monthly active users

Contracted accounts

Approx. 41 million*1

Approx. 59,100*2

Approx. 23.3 million*3
Services provided annually
Approx. 4,300*4

Total users as of end-March 2022 for the main media and tools in the daily life domain, regional information domain, home domain, and marriage domain (browser or device base). Based on simple aggregate, without taking into consideration users of multiple
media or tools.
Total as of end-March 2022 of stores using “Tokubai” (paid and unpaid), stores posting ads and using tools and services to support operations offed by O-uccino, Inc., member companies for services provided by HyAS & Co. Inc., and venues trading withanymarry Co., Ltd.
Total cumulative downloads as of end-March 2022 for “Tokubai,” “Zaim,” and “Gokko Land.”13
Total of estimate of annual wedding ceremonies produced by anymarry Co., Ltd. as of March 2022, estimate of services offered annually in home domain (ex. HyAS & Co. Inc.) as of March 2022, and number of consultations in “Ietate Sodan Counter”
over the past one year in SHIZUOKAONLINE CO., LTD.

Group-wide Media Monthly Active Users
 Group-wide media monthly active users exceeded 40 million on a simple aggregate baseMonthly active users*(Million users)
45.0

35.0

25.0

15.0
Mar.
2019

Jun.

Sep.

Dec.

Mar.
2020

Jun.

Sep.

Dec.

Mar.
2021

Jun.

Sep.

Dec.

* Total users for the main media and tools in the daily life domain, regional information domain, home domain, and marriage domain (browser or device base).
Based on simple aggregate, without taking into consideration users of multiple media or tools.

Mar.
2022

14

Group-wide Contract Accounts
 Our sales focus on persuading stores using the Tokubai service to subscribe to the paid service led to adecrease in the number of non-subscriber stores and an increase in the number of subscriber stores
Contract accounts*+3,58664,00062,00059,85360,000+136

59,136-4,43958,00056,00054,00052,00050,000
Mar.
2019

Jun.

Sep.

Dec.

Mar.
2020

Jun.

Sep.

Dec.

Mar.
2021

Jun.

Sep.

Dec.

Mar.
2022

Dec.
2021

TokubaiTokubainonsubscriber
subscriber
storesstoresOthersMar.
2022* Total of stores using “Tokubai” (paid and unpaid), stores posting ads and using tools and services to support operations offed by O-uccino, Inc., member companies for services provided by HyAS & Co. Inc.,and venues trading with anymarry Co., Ltd.

15

Resolution Adopted for Acquisition of Treasury Shares The Company adopted a resolution for the acquisition of treasury shares together with the issuance ofcompensatory stock options on May 13, 2022

・A resolution was adopted to issue compensatory stock options to the Group’s officers and employees, with achievement of
EBITDA of 10 billion yen* in FY2026.9 as the exercise condition

・The Company plans to acquire treasury shares to prevent stock dilution from the issuance of compensatory stock options

and to prepare for a flexible capital strategy for the future, comprehensively taking into account factors such as trends in the

Company’s stock price, which we consider is currently undervalued, and the Company’s financial position

Total number of shares tobe acquired(1.7% of total number of shares issued(excluding treasury shares))
Up to 1,000,000 shares

Total amount of shareacquisition cost

Up to 850,000,000 yen

Acquisition period

From May 16, 2022 to December 31, 2022

* Sum of EBITDA and stock compensation fees16

2. Business Overview by Segment

17

Daily Life Business

18

Daily Life Business – Financial Results – Quarterly Trends
 Net sales of Locoguide expanded due to an increase in the number of subscriber stores in the Tokubai business Higher profits of Locoguide due to expanded sales could not offset a pullback from the expansion of profits for
SHIZUOKAONLINE due to seasonal factors and contribution of delivery projects for KIDS STAR in the previous quarter,
resulting in a slight QoQ decrease in profits for the business as a whole
Net sales(JPY MM)
Locoguide

Kufu Lifestyle

Zaim

1,200

(JPY MM)KIDS STAR

1,101

OP

EBITDASHIZUOKAONLINE

500

1,101

960
1,000
Locoguide+
Kufu Lifestyle

769
713

800
614
600

(Two companies integratedon April 1, 2022)

400
397

300

206

185

100

0

257

234

200

400
200

383

176

185

207

220

Oct.-Dec.
2020

Jan.-Mar.
2021

Apr.-Jun.

Jul.-Sep.

365

351

Oct.-Dec.

Jan.-Mar.
2022

0
Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
2020
2021
2022

19

Daily Life Domain – Monthly Active Users
 The number of Tokubai and Yomuno users increased during the year-end and New Year season. Seasonal demand settled
down but the number of users remained strong

・The number of monthly active users of Yomuno surpassed 22 million in January 2022
Monthly Active Users*(Million users)

50.0

TokubaiTokubai News

YomunoOther

May Jul.
2021

Sep. Nov.

45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0

0.0
Jan.

Mar.

May Jul.
2020

Sep. Nov.

Jan.

Mar.

Jan. Mar.
2022* Total users for the main media and tools in the daily life domain (browser or device base). Based on simple aggregate, without taking into consideration users of multiple media or tools.

20Number of Subscriber Stores for Tokubai Services
 As of end-March 2022, there were 38,924 subscriber stores・ The number of stores with fixed price contracts increased mainly among home centers and drugstores, while the unit pricealso increased

・The number of pay-for-performance stores increased due to the introduction at mobile shops(Stores)
40,000

Subscriber Stores
Fixed price contract stores

Pay-for-performance stores(Dec. 2019 = 1.00)

Unit price (12-month average) 1.15

30,0001.10

20,0001.05

10,000

1.00

-

0.95
Dec.
2019

Mar.
2020

Jun.

Sep.

Dec.

Mar.
2021

Jun.

Sep.

Dec.

Mar.
2022

21

Tokubai Service Initiatives: Growth of Fixed Price Subscriber Stores
 DCM Co., Ltd.’s paid posting started in March. All top 3 companies in the home center industry are now on Tokubai
 Paid postings of restaurant chains, which had been postponed since last year, resumed
 Started trial postings with several companies, mainly restaurant chains, to expand the postings of new business formats
Examples of newly contracted stores

Number of fixed price contracts

Izumiya Co., Ltd.

DCM Co., Ltd.

29,294
26,879+9.0％

Market share of fixed price subscriber stores by industry
Home centers
Domestic market: 4,377
stores*1

Supermarkets
Domestic market: 22,760
stores*2

Drugstores
Domestic market: 21,725
stores*3

Tokubai
fixed pricesubscriber
storesTokubai
fixed pricesubscriber
storesTokubai
fixed pricesubscriber
stores

70%

48%

37%

*1 Ministry of Economy, Trade and Industry,“The Current Survey of Commerce”(2021)*2 Statistics and Data on Supermarkets(http://www.j-sosm.jp/, March 2022)*3 Japan Association of Chain DrugStores, 2021 Survey of DrugStores in Japan

22

Tokubai Service Initiatives: Strengthening Media Capabilities
 Service renewals are being implemented in stages to enhance content for increasing use frequency
by users
Consolidation of information that is highly sought after by users, such as
flyers, special sale information, coupons, recipes, and special features,on the top page of the app (launched on March 8)
Renewal of the coupon function in the app. Enhancement of the
distribution of coupons for “nearby stores” and “frequently visitedstores” (launched on April 12)
Enhancement of the coupon search function on the website.
Implementation of the function of narrowing search by options such as
payment methods and business hours (launched on April 22)

 The Tokubai’s logo design was renewed for the first time since the start ofthe business23

Tokubai Service Initiatives: Collaboration between Tokubai and Yomuno
 Started offering products through collaboration ads between Tokubai and Yomuno

・Increase contact points with users by linking marketing campaigns on the Tokubai app and tie-up articles in Yomuno
・Provide added value that goes beyond mere advertising through synergies between Tokubai and Yomuno

Example of Otafuku Sauce Co., Ltd.

✖
・Implementation of a marketing campaign, etc., on the Tokubai app
・Provision of marketing support such as shop notices and GPS
push notifications

・Menu development by Yomuno Mates (official
Instagrammers) using products

・Creation of product appeal by providing real user
perspectives through articles

24

[Reference] Tokubai User Survey
 Users’ mindset to protect their daily lives has been heightened by concerns in household finances dueto the prolonged COVID-19 pandemic and recent rises in prices
In addition to “stopping unnecessary shopping” and “checking special sale

Over 40% people “cook,” “check flyers,” and “do bulk buying” more

items on flyers before shopping,” using “coupons” has become more popular

frequently than before the COVID-19 pandemic

in response to the price-hike rush
[Reference: Tokubai User Survey (Feb. 24, 2022 to Mar. 3, 2022][Reference: Tokubai User Survey (Apr. 15, 2022 to Apr. 21, 2022]

Are there any behaviors that you feel have increased in your daily life
compared to before the COVID-19 pandemic (before February 2020)?
(multiple choices, n=5,510)
Cook myself
Check flyers
Buy food in bulk
Avoid busy hours to go shopping
Search recipes
Shop at a local supermarket
Write down what I need before shopping
Buy frozen food
Buy food and daily necessities from online shops
Order take-out from restaurants
Cook ahead
Buy deli food
Buy food frequently as needed
Order delivery
Have regular delivery of food and daily necessities

0.0%

49.1%
44.8%
44.7%
42.5%
39.3%
37.0%
31.2%
30.0%
25.1%
24.1%
15.8%
15.5%
12.4%
9.9%
8.1%
20.0%

Is there anything you are thinking of doing because of the price-hike rush?
(multiple choices, n=5,015)

Check in advance for coupons
Choose and buy special sale and bargain-priced items at shops
Use coupons at shops
Switch to a cheaper brand for similar products
Pay by a method with a high point redemption rate
Plan my shopping days
Carefully select cards to collect points
Find ahead a payment method with a high point redemption rate
Buy in bulk products whose prices are expected to increase
Pay with points whenever possible
Review fixed costs
Keep a household account book

40.0%

60.0%

66.2%
59.6%
50.5%
50.3%
49.3%

Stop unnecessary shopping
Check special sale items on flyers before shopping

0.0%

31.2%
26.9%
26.8%
23.2%
21.6%
18.5%
17.9%
13.4%
9.8%
20.0%

40.0%

60.0%

80.0%

25

Life Event Business26

Home Domain (ex. HyAS) – Financial Results* – Quarterly Trends
 Sales and profits of O-uccino increased QoQ due to sales growth of tools for which we are developing functions
 Sales and profits of SSI significantly increased due to the recording of sales related to a resort development project in Hawaii
 Sales and profits of Ouchino Kufu’s purchase and resale business decreased QoQ due to a drop in the number of properties
sold(JPY MM)
1,200

Net SalesO-uccino

SSI

Ouchino Kufu

1,000

(JPY MM)
200

OP

O-uccino

SSI

Ouchino Kufu

EBITDA

Total of three companies

150

800
100
600
50
400
0

200
0

-50
Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
2020
2021
2022

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
2020
2021
2022

* Simple aggregate of O-uccino, Inc., Ouchino Kufu Co., Ltd., and SSI Corporation (includes some intragroup transactions).

27

Status of Inventory in Purchase and Resale Business Gross margin in the Jan.-Mar. quarter was 10.7% (11.4% in Oct.-Dec.), and inventory turnover (days)* was 141 days as ofend-March (123 days as of end-December) Stepped up property purchases for sales in and after the second half of the year while maintaining a sound inventory
composition(JPY MM)

Inventories(Properties)

2,000

80

1,500

60

Days in inventory distribution

Rental180 days+

101-180 days

0-100 days

28
15
22

1,000

32

40

500

15
22

20

0
End-Sep. End-Dec. End-Mar. End-Jun. End-Sep. End-Dec. End-Mar.
2020
2021
2022

0

6 1

1
10

9
1
16

28

12
10

10

10

15

7

8

20

19

21

20

End-Sep. End-Dec. End-Mar. End-Jun. End-Sep. End-Dec. End-Mar.
2020
2021
2022

* From FY2022.9, the method of calculation has been changed from previous disclosure (average inventory turnover period = average period held for properties sold during the period) as follows.
Inventory turnover (days) = Average inventory amount / Amount of property sales (ex. amount for rental properties. Amount of property sales calculated on a pro rata basis for the quarter)28

HyAS & Co. Inc. – Consolidated Financial Results – Quarterly Trends
 Operating profit remained stable as the end of the reorganization of the business and the HyAS group came into sight(JPY MM)(JPY MM)Net sales

2,500

Operating profit

200

2,000

150

1,500
1,000

1,987

2,175

1,978

2,192

100

2,367
1,962

2,023

155

146
127

1,391

50

500

128

141

91
59
33

0

May-Jul. Aug.-Oct. Nov.-Jan. Feb.-Apr.

2020

2021

May-Jul. Aug.-Sep.* Oct.-Dec. Jan.-Mar.

2022

0

May-Jul. Aug.-Oct. Nov.-Jan. Feb.-Apr. May-Jul. Aug.-Sep.* Oct.-Dec. Jan.-Mar.

2020* Results for Aug. 1, 2021, to Sep. 30, 2021 (two-month period), owing to irregular accounting period caused by change of accounting period.

2021

2022
29

HyAS & Co. Inc. – Status of Improvements
・Designation as Security on Alert (Nov. 27, 2020)

・A decision was made to continue to designate the company as Security on Alert (Jan. 26, 2022)

・The Tokyo Stock Exchange will inspect the contents of the written confirmation of internal management system to be
resubmitted by HyAS & Co. Inc. after 1 year and 6 months have passed since the designation (May 27, 2022)

・Status of improvements
・Feb. 28, 2022

Released “(Progress of Disclosure Matters): Notice regarding the Improvement Plan and Status Report (Summary of Causes
and Progress of Recurrence Prevention Measures)”・Mar. 31, 2022

Released “(Progress of Disclosure Matters): Notice regarding the Improvement Plan and Status Report”

・Apr. 19, 2022

Released “(Progress of Disclosure Matters): Notice regarding the Improvement Plan and Status Report”

・Next steps

・ A new Director will be appointed at the extraordinary general meeting of shareholders scheduled to be held on May 26, 2022
・Scheduled to resubmit the written confirmation of internal management system after May 27, 2022

30

Home Domain Initiatives
 Focus on realizing “direct transactions” between sellers andbuyers from a user’s perspective in order to “eliminate users’

Started a matching service for off-market
properties on an individual property basis asa trial run

regrets related to housing”
 Make full use of the functions of each group company to support
users from the consideration stage to the completion of trading
・One-stop provision of a series of functions necessary forbuying and selling used homes, such as information
gathering through media, property selection (assessment/

Purchase offers foroff-market properties canbe made from the website

appraisal), renovation, and various insurance andwarranties

・Aim to improve user experience (UX) throughout atransaction rather than individual optimization, with apossibility of integrating media and services within thedomain31

Marriage Domain – Financial Results – Quarterly Trends
 Although investment in human resources and development continued with a view to strengthening the media for the future,sales and profits decreased mainly because the number of weddings held dropped in the producing business due to theimpact of the COVID-19 pandemic and other factors(JPY MM)Net sales(JPY MM)OP

EBITDA

250

1,250

200

1,000

150
750
100
500

50

250
0

0
-50
Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
2020
2021
2022

Pre-COVID-19
pandemic

COVID-19
pandemic

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
2020
2021
2022

Pre-COVID-19
pandemic

COVID-19
pandemic

32

Marriage Domain Initiatives
 Attract customers in the producing business through media while strengthening media capabilities of “Minna-no-Wedding,”
based on the concepts of “Any place” and “Any plan”
Expansion of venues “other than” so-called wedding venues

Acceleration of the enhancement of various media content

The number of venues listing wedding plans surpassed 1,400(Example) Expand the listing of venues and plansthat “anymarry” can produce on “Minna-no-Wedding”

Became No. 1 in Japan’s general bridal media market*2(Venues)
1,500◁List venues that “anymarry” can produce other thanvenues posting ads on “Minna-no-Wedding”▽ Create a section for “anymarry” plans and an
enquiry section on the venue page

Contracted venues*1
Of contracted venues:
・Parks・Public facilities andbeautiful areas
・Shrines and temples, etc.

1,000

500

Mar.
2020

Jun.

Sep.

Dec.

Mar.
2021

Jun.

Sep.

Dec.

Mar.
2022

*1: Total of venues with paid ad postings or production contracts (number of unique venues, with venues with multiple
contracts counted as a single venue).
*2: Internal research as of February 2022. Venues listing “wedding plans” are counted, and comparison is made based on
the information disclosed publicly by each media.

Strengthen “media capabilities” and“capabilities to attract customers in the
producing business” at the same time33

Disclaimer

Important notes
This document contains forward-looking statements. These forward-looking statements are based only on theinformation made available to Kufu Company as of the date this document was prepared. These statements are
not guarantees of future results and involve risks and uncertainties. Accordingly, the actual results may differ
materially from those projected herein depending on operating environment and other factors.
Actual results could be affected by, but are not limited to, domestic and international economic conditions andindustry trends surrounding Kufu Company.
Kufu Company undertakes no obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Information that is not related to Kufu Company is derived from publicly available information. Accordingly, Kufu
Company does not verify nor guarantee the accuracy, completeness and correctness of such information.

=Inquiries=
IR Representative, Corporate Communications Department
E-mail: ir@kufu.co.jp

Website: https://kufu.co.jp/en/34