Kufu Company Inc.

FY2023.9 Q1
Presentation Material
February 14, 2023

Agenda1. Consolidated Financial Results for FY2023.9 Q1
2. Business Overview by Segment• Daily Life Business• Life Event BusinessKufu Company Inc.

1. Consolidated Financial Resultsfor FY2023.9 Q1

Group Composition (Main Group Companies as of February 2023)
Life Event Business

Daily Life Business
Daily and community life
domainMarriagedomainHome domain

Shopping information service andlifestyle information media

Regional information media

Management
consulting service

Consulting service forhigh-net-worth individuals
Wedding information media
and service

Household budget service

Educational app

Home and real estate specialized media andpurchase and resale service*Established through the merger of O-uccino, Inc. and Ouchino Kufu
Co., Ltd. on October 1, 2022

Investment and Incubation Business
Investment and businessdevelopment domain

Holding company(Investment)

Design development
domainInvestment
management

Development and sales of
insurance productsTechnology development
domainBusinessmanagement domain

Travel/outing media(Affiliate)

Insurance sales agency

OthersInformational website fortrips with children

Research and development

Holding company(Support for operatingcompanies)

Consolidated Financial Results
・In FY2023.9 Q1, EBITDA was 685 million yen.
Progress toward full-year consolidated earnings forecasts was generally good

FY2020.9* FY2021.9*
ResultResultFY2022.9

FY2023.9

ResultFY2023.9
forecast

YoY

Q1 result

Progress

Net Sales

6,042

11,256

18,62521,000112.8%

4,883

23.3%

Operatingprofit

604

1,000

1,558

2,000

128.4%

433

21.7%

EBITDA

890

1,617

2,581

3,100

120.1%

685

22.1%(JPY MM)•

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. andLocoguide Inc. for each period (unaudited).

4

Highlights of FY2023.9 Q1 Consolidated Financial Results
・In FY2023.9 Q1, EBITDA was 685 million yen.
Progress toward full-year consolidated earnings forecasts was generally good

Progress by segment
Daily Life BusinessLife Event Business

Daily and community life domain
・ The Tokubai business was in line with the plan. Focused on proposal activities in preparation for price revision fromMarch onward
・ Profit decreased both YoY and QoQ mainly due to the decrease in profit of SHIZUOKAONLINE, but othercompanies generally performed well
Home domain
・ Sales of SaaS tools for real estate agencies were steady. The purchase and resale service business took a waitand-see stance in expectation for a market downturn, while the business for high-net-worth individuals made good
progress in signing contracts, which contributed to earnings
・ HyAS & Co. Inc. decreased sales and profit both YoY and QoQ due to a slowdown of new orders and concentrated
deliveries in the second half. Acquired shares in OM Solar, Inc. specializing in development and sale of solar heatutilization systems and made it a consolidated subsidiary (consolidated only on the balance sheet for Q1)
Marriage domain
・ Seasonal advertising products in the Media business contributed to earnings, while customers of dress sales
decreased due to suspension of event-related business

Investment andIncubation Business

Investment and business development domain
・ Acquired shares in the operator of travel and going out service “RETRIP” and made it a consolidated subsidiary(consolidated only on the balance sheet for Q1)
・ Profit associated with disposal of a part of operational investment securities was recorded5Consolidated Quarterly Financial Results
・Sales and profit both grew year on year

FY2022.9

FY2023.9

Q1

Q2

Q3

Q4

Q1

Net Sales

4,528

4,599

4,175

5,321

4,883 107.8%

91.8%

Operatingprofit

369

403

233

551

433 117.3%

78.6%

EBITDA

626

658

488

808

685 109.5%

84.8%

YoY

QoQ

(JPY MM)

6

Consolidated Financial Results – Quarterly Trends
・Sales and profit both grew year on year
OperatingprofitNet Sales

4,883

7,000

JPY MM

6,000

EBITDA

433

1,000

JPY MM

685

JPY MM

800

5,000
600

4,000
3,000

400

2,000

200

1,000
0
(JPY MM)Q1
FY2022.9

Q2

Q3

Q4

Q1
FY2023.9

0(JPY MM)Q1
FY2022.9

Q2

Q3

Q4

Q1
FY2023.9

7

Consolidated Quarterly Financial Results – Net Sales by Segment
・ Against the backdrop of fluctuations in the real estate market, sales of the home domain of the Life
Event Business decreased
・ Sales associated with disposal of part of operational investment securities were posted
FY2022.9

Net Sales

FY2023.9

Q1

Q2

Q3

Q4

Q1

YoY

QoQ

Daily Life Business

1,101

1,101

1,056

1,143

1,110

100.8%

97.1%

Life Event Business

3,401

3,473

3,092

3,675

2,938

86.4 %

79.9%

Investment andIncubation Business

25

16

24

495

828

3,242.8%

167.2%

Other

36

39

30

39

50

137.9%

128.1%

Adjustment

-36

-31

-28

-32

-43

-

(JPY MM)8

Consolidated Quarterly Financial Results – OP by Segment
・In the Daily Life Business, profit decreased both YoY and QoQ mainly due to the decrease in profit of
SHIZUOKAONLINE, but other companies generally performed well・Profit of the Life Event Business decreased mainly due to the decrease in profit of the home domain
・Profit associated with disposal of a part of operational investment securities was recorded
FY2022.9Q1Q2

FY2023.9
Q3

Q4

Q1

YoY

QoQ

Daily Life Business

365

351

278

282

259

71.0%

91.7%

Life Event Business

251

287

206

302

191

75.9%

63.1%

Operating Investment andprofit Incubation Business

-8

-6

-5

202

313

-

155.4%

Other

-31

-27

-34

-31

-61

-

-

Adjustment

-208

-202

-211

-204

-269

-

(JPY MM)

9

Consolidated Financial Results – B/S
As of
As of
end-Sep. 2022 end-Dec. 2022

ChangeChange factors

14,826

14,784

-42

7,269

6,916

-352

2,979

2,948

-30

2,758

2,516

-241

6,498

7,677

1,179

(Goodwill)

3,526

4,080

554

(Investments and other assets)

2,047

2,220

173

Assets21,32922,464

1,134

Liabilities(Short-term and long-termborrowings)
Net assets

9,666

10,602

935

5,856

6,123

267

11,663

11,862

199

1,191

1,404

213

-443

-443

0

399

367

-31

21,32922,464

1,134

Current assets(Cash and deposits)(Operational investment
securities)(Real estate for sale)Non-current assets(Retained earnings)(Treasury shares)(Valuation difference on availablefor-sale securities)
Total liabilities and net assets*Items in parentheses are included in totals.

・Cash and deposits declined by 352
million yen mainly due to the acquisitionof shares in subsidiaries, offsetting cash
acquired through operating activities andborrowings
・Goodwill increased by 554 million yen
due to the start of consolidation of
RETRIP, Inc. and OM Solar, Inc.
・Real estate for sale declined by 241
million yen due to the inventory reduction

・Short-term borrowings and long-termborrowings increased by 267 million yen(JPY MM)10Group Business Foundations (as of Dec. 31, 2022)

Users
Support users’ activities through three contact points with them

Maximize contact points
with users

Indirectly provide services to users
through support for business operators

Monthly active users*1

Contract accounts*2

Approx. 52 million

Approx. 62,500

Provide useful tools for daily life andspecialized services for life events
Total tool downloads*3

Services provided
annually*4

Approx. 25.8million Approx. 4,300*1: Total users as of the end of Dec. 2022 for the main media and tools in each domain (browser or device base). Based on simple aggregate, without taking into consideration users of multiple media or tools.
*2: Total as of the end of Dec. 2022 of stores using “Tokubai” (paid and unpaid), stores posting ads and using tools and services to support operations offered by O-uccino, Inc., member companies for services provided by HyAS & Co. Inc., and trading partner venues ofanymarry Co., Ltd.
*3: Total cumulative apps downloaded as of the end of Dec. 2022 for “Tokubai,” “Zaim,” and “Gokko Land.”*4: Total of number of consultations in “Ietate Sodan Counter” over the past one year in SHIZUOKAONLINE CO., LTD., number of services offered over the past one year in home domain (ex. HyAS & Co. Inc.), and estimate of annual wedding ceremonies
produced by anymarry Co., Ltd. as of Dec. 2022

11

Group-wide Media Monthly Active Users
・ Due to group participation, users of the travel and going out service “RETRIP” have been added up from Dec. 2022
・ Group-wide media monthly active users have grown to approx. 52 million on a simple aggregate base52 million

Monthly active users*
55

45

35

25

15
(Million users)

Mar.
2019

Jun.

Sep.

Dec.

Mar.
2020

Jun.

Sep.

Dec.

Mar.
2021

Jun.

Sep.

Dec.

Mar.
2022

Jun.

Sep.

Dec.

* Total users for the main media and tools in each of the domains (browser or device base). Based on simple aggregate, without taking into consideration users of multiple media or tools.

12Group-wide Contract Accounts
・ Tokubai is boosting sales activities in preparation for price revision from March onward

64,00062,000

Other

Tokubai subscriber
storesNumber of contract accounts*+1,21361,15060,000+38

62,487＋86
Tokubai non-subscriber
stores

58,00056,00054,00052,0005,0000Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec.
2019
2020
2021
2022

Sep.

* Total of stores using “Tokubai” (paid and unpaid; excluding accounts linked with initiatives with approx. 16,000 convenience stores), stores posting ads and using tool services to support operations
offered by Kufu Sumai Inc., member companies for services provided by HyAS & Co. Inc., and trading partner venues of anymarry Co., Ltd.

Dec.

13

Group Management Target by FY2026.9 (5th Term)
Group EBITDA*1

10 billion yen

*2

50%

Ratios of main
business segments *3

Daily Life Business
Daily andcommunity life
domain50%

Life Event Business
MarriagedomainHome domain※4*1: EBITDA (operating profit + depreciation and amortization)*2: Target to be achieved through organic growth of each group companies
EBITDA plus costs for stock-related compensation upon the resolution to issue the 8th and the 9th share acquisition rights(stock options with charge)*3: Ratio of each business segment based on the sum of the Daily Life Business and the Life Event Business.
In September 2022, some of the business segments and domains were revised. The composition ratio was calculated based on
the revised amounts.
*4: The home domain includes HyAS & Co. Inc.

14

Kufu Company Inc.

2. Business Overview by Segment

15

Daily Life Business

16

Daily Life Business – Financial Results – Quarterly Trends• As for Locoguide, net sales decreased QoQ in reaction to the growth in earnings due to the event held by
Retail Research Institute inc. (a subsidy of Locoguide Inc.) in the pervious quarter. The Tokubai business has grown steadily• Primarily due to the decreased sales of SHIZUOKAONLINE, profit decreased both YoY and QoQ, but other companies
generally performed well

1200
1000
800

SHIZUOKAONLINENet Sales

1,110

Operatingprofit

JPY MM
500

KIDS STAR

EBITDA

259

Zaim
400

Locoguide (including
sales of former Kufu
Lifestyle)

JPY MM

296

JPY MM

300

600
200

400

100

200
0

(JPY MM) Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep.Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.

2020

2021

2022

0

(JPY MM)

Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.

Jan.-Mar. Apr.-Jun. Jul.-Sep.Oct.-Dec.

2020

2022

2021

17

Daily and Community Life Domain – Monthly Active Users• Tokubai active users increased partly due to sales promotion to meet needs of searching for operating hours of stores
during year end and new-year holidays• Accesses dropped temporarily in December due to the domain change along with the rebranding from “Yomuno” to“Kufu Live!” but started growing again in January
Monthly active users*

50

Tokubai

45

Tokubai News

Kufu Live !

Other

40
35
30
25
20
15
10
5
0
(Millionusers)

Mar.

Dec.
2020

2021

Jun.

Sep.

Dec.

Mar.

Jun.

Sep.

Dec.

2022

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

18Number of Subscriber Stores for Tokubai Services and Average Unit Price• As of the end of December 2022, there were 39, 309 subscriber stores (Stores with fixed price contracts
were up 9.7 % YoY to 30,647)• Average unit prices rose partly due to major retailors’ adoption of service options
Average unit prices at fixed price contract stores

Subscriber stores
Fixed pricecontract stores

40,000Pay-for-performance
stores

4,800
4,600

30,0004,400+9.7% YoY

20,00030,647 stores

10,0000(Stores)

4,200
4,000

Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec.

2019 2020

2021

2022

3,800
(JPY)

Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec.

2019 2020

2021

2022

19

Expansion of Companies Introducing Tokubai Service Options• In December, 780 Yamada Denki stores in total started introducing “Auto-linkage function with Google
Business Profile”• Made entry into new domains including major electric appliance retail chains and increased companies
introducing service options
Get automatically linked with Google BusinessProfile just by posting flier information on
Tokubai!

Linkage with Yamada Denki storesnationwide started

TokubaiTokubai

20

Life Event Business21Home Domain (Ex. HyAS) Business – Financial Results*1 – Quarterly Trends
・ Sale of SaaS tools remained steady. Media monthly active users were on a recovery trend due to enhancement of content,
which is expected to contribute to future earnings
・ The purchase and resale service business took a wait-and-see stance in expectation for a market downturn
・ The business for high-net-worth individuals has steadily increased contracts and contributed to earnings
OperatingprofitNet Sales*2
1,200
1,000
800

200

Business for high-net-worth individuals
Purchase and resale
service business +brokerage service

EBITDA

150

Media+SaaS

600

100

400
50
200
0
(JPY MM)

Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.

2020 2021

2022

0(JPY MM)

Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.

2020

2021

2022

*1: The simple aggregate of Kufu Sumai Inc. and SSI Corporation (includes some intragroup transactions). O-uccino, Inc. and Ouchino Kufu Co., Ltd. were integrated into Kufu Intermediate Holding Company Inc. which was renamed as
Kufu Sumai Inc. as of October 1, 2022.
*2: The business for high-net-worth individuals shows sales of SSI Corporation, and others show sales of Kufu Sumai Inc. For net sales in September 2022 or before, Media +SaaS represents sales of former O-uccino, Inc. andPurchase and resale service business + brokerage service represents results of former Ouchino Kufu Co., Ltd.

22

Inventory Status in Purchase and Resale Service Business・Gross margin in the Oct.-Dec. quarter was 6.9 % (9.8 % in Jul.-Sep.), and inventory turnover (days)* was 260 days asof the end of December (160 days as of the end of September)・Controlled purchasing in light of market situation and lowered prices to increase cash reserves, and the inventory
amount slightly reduced
Inventory (amount)
2,000

80

1,500

60

1,000

40

500

20

0

0

(JPY M)

Dec. Mar. Jun. Sep. Dec.
2020

2021

Mar. Jun. Sep. Dec.
2022

(Properties)

0-100 days

Inventory turnover days

101-180 days
181 days +RentalDec. Mar. Jun. Sep. Dec.
2020

2021

Mar. Jun. Sep. Dec.
2022

* Inventory turnover (days) = Average inventory amount / amount of property sales (ex. amount for rental properties. Amount of property sales were calculated on a pro rata basis for the quarter)23

HyAS & Co. Inc. Consolidated Financial Results – Quarterly Trends
・The growth of new orders in the R + house business was stagnant. Focused on various support activities for member companies
・Efforts were made to establish an efficient and effective operational system for the construction business, but concentrated deliveries ofhouses are expected in the second half・After making OM Solar, Inc. a consolidated subsidiary, full-year forecasts of net sales and operating profit were revised to 8,200 million
yen and 520 million yen respectively
Net Sales

2,500

Operating profit

300

1,471

2,000

JPY MM

250
200

1,500
150
1,000

JPY MM

100

500

50

0
(JPY MM)640Nov.-Jan. Feb.-Apr.

2020

2021

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

2022(JPY MM)

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

2020

2021

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

2022

24

Marriage Domain Business – Financial Results – Quarterly Trends
・Seasonal advertising products in the media business contributed to earnings, and customers of dress sales
decreased due to suspension of event-related business
OperatingprofitNet Sales
1,250

250

Production and dress sales
Media

1000

EBITDA

200
150

750

100
500

50

250

0
(JPY MM)

0

Oct.Dec.

Jan.Mar.

2019

2020

Pre-COVID-19
pandemic

Apr.Jun.

Jul.Sep.

Oct.Dec.

Jan.Mar.

2021
COVID-19
pandemic

Apr.Jun.

Jul.Sep.

Oct.Dec.

Jan.Mar.

2022

Apr.Jun.

Jul.Sep.

Oct.Dec.

-50(JPY MM)

Oct.Dec.

2019

Jan.Mar.

Apr.Jun.

Jul.Sep.

2020

Pre-COVID19 pandemic

Oct.Dec.

Jan.Mar.

2021
COVID-19
pandemic

Apr.Jun.

Jul.Sep.

Oct.Dec.

Jan.Mar.

Apr.Jun.

Jul.Sep.

Oct.Dec.

2022

25

Marriage Domain Initiatives
・ The expansion of venues with production contracts has slowed down from the previous year.
We will focus on proposing new ways of a wedding ceremony this year
・ In FY2023.9 Q1, we improved and increased content of actual wedding cases and started to enhance consulting andadvisory function mainly online

1,800
1,600

Expansion of venues “other than”
conventional wedding venues

Enhancement of consulting andadvisory function

Contracted venues*

Support users in choosing a wedding ceremony with no regrets,
with information provided in the media andknow-how shared by a wedding consultant

1,400

Of contracted venues:

1,200・Parks・Public facilities andaesthetic areas
・Shrines and temples, etc.

1000
800
600

Consultation

400
200
0

(Venues)Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec.

2020

2021

2022

*Total of venues with paid ad postings or production contracts (number of unique venues, with venues withmultiple contracts counted as a single venue).

Providinginformation

Sending users

Providinginformation

Wedding consultant
26

Disclaimer

Kufu Company Inc.

Important notes

This document contains forward-looking statements. These forward-looking statements are based only on the information made available to Kufu Company asof 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 and industry 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 orotherwise.

Information that is not related to Kufu Company is derived from publicly available information. Accordingly, Kufu Company does not verify nor guarantee theaccuracy, completeness and correctness of such information.

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

Website: https://kufu.company/en27