kakaku.com, inc. management vision and strategy result...

Kakaku.com, Inc.Management Vision and StrategyManagement Vision and Strategy

Result Briefing for the Third Quarterf th T d d M h 2013of the Term ended March 2013

February 6th, 2013Kakaku.com, Inc.

Progress in Ratio of Actual to Forecasted Business Results

Almost all Businesses achieved results in line with the plan.

Business Results

(Unit: million yen)

Actual Results FY2012 3Q

(Cumulative)

ForecastsFY2012

(Full Year)

Progress Ratio (%)(Cumulative) (Full Year)

Sales 16,449 23,000 71.5%

Operating profit 8,157 11,000 74.2%

Current profit 8 123 11 000 73 8%Current profit 8,123 11,000 73.8%

Net income 4,941 6,800 72.7%

N t Eff ti f FY2012 th t ti f i b i l i h d f Note: Effective from FY2012, the presentation of service business sales is changed from a gross basis to a net basis.

1

FY2012 3Q Results Highlights

Sales for 3Q increased by 27.4% to 6,112 million yen while operating profit increased by 39.1% to 3,173 million yen.

(Unit: million yen)

FY2012 3Q (Oct. to Dec. 2012)

FY2011 3Q (Oct. to Dec. 2012)

Year on Year (%)

Sales 6,112 4,797 +27.4%

Operating profit 3,173 2,281 +39.1%

Current profit 3,176 2,282 +39.2%, ,

Net income 1,943 1,324 +46.7%

Operating profit margin 51.9% 47.6% -

N t Eff ti f FY2012 th t ti f i b i l i h d f Note: Effective from FY2012, the presentation of service business sales is changed from a gross basis to a net basis. Following this change, actual figures in and before the FY2011 have been restated on a net basis.

2

Quarterly Summary of Quarterly Summary of Business Conditions

3

Sales by Business for Each Quarter (Consolidated Basis)

Sales for shopping performed steadily as a result of the year-end sales season. Both numbers of tabelog paying member restaurants and premium members continued to show robust growth, contributing to a significant increase in sales.

(Consolidated Basis)

Jan Mar

Oct.-Dec.20126 112

33 2%

Jul.-Sep.20125,245

Shopping*Note 1: Each amount is

Oct.-Dec.2010

Apr.-Jun.20125,091Jul.-Sep.

2011

Jan.-Mar.20114,462

Apr.-Jun.2011

Oct.-Dec.20114,797

Jan.-Mar.20125,456

6,112

32.0%

40.7%34.9%

32.8%

36.3%36.3%

35.7%

33.2%

27.4%

32.2%

25.7%

Service

Kak

aku.

com

Note 1: Each amount is the value after eliminating internal sales amount or transfer amount for inter-segment sale or transfer.

4,178 4,2294,462 2011

3,980

23.0%

15.6%

18.7%

19.5% 16.6%

22.9%27.2%

13.8%25.2%

16.9%

11 0% 13 1%

25.9%

14.7%19.0%

21.4%

14 2%

14.5%

15.2% 17.8%

25.7%

13.4%

tabelog

Advertising

K

18.1%

17.0%

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Shopping 1,699 1,618 1,443 1,477 1,713 1,811 1,670 1,687 1,952

7.3% 8.6% 7.6%10.9% 11.0%

7.8%3.9% 3.0%

13.1%

2.9% 2.8%

12.0%7.8%3.3%

7.0%2.7%

14.2%6.8%2.9%

8.2%2.8%

Travel and RealEstate ,etc.

Unit:(million yen)Finance

7.2%2.7%

Service 782 1,125 1,032 967 1,024 1,495 1,384 1,347 1,403 Advertising 813 754 586 702 910 788 700 704 1,041 tabelog 456 491 476 552 680 830 796 933 1,108 Travel and Real Estate, etc. 305 348 309 363 338 372 388 428 439 Finance 121 123 132 166 129 157 150 144 166

Note: Effective from FY2012, the presentation of service business sales is changed from a gross basis to a net basis. Following this change, actual figures in and before the FY2011 have been restated on a net basis. 4

Breakdown of Costs for Each Quarter (Consolidated Basis)

Profit margin improved to 51.9% through an increase in sales in FY2012 3Q.Personnel related expenses increased due to issuance of share warrants for employees.

(Consolidated Basis)

J M Apr.-Jun.Oct.-Dec.

2012Jul.-Sep.20122,663

22.6%25.1% 24.4%

*Note 1 : Commission = (Various commissions paid) + (advertisement agency commissions)*Note 2 : The number of employees

Advertising expenses Oct.-Dec.

2010

Jul.-Sep.20112 178

Jan.-Mar.20112,221

Apr.-Jun.2011

Oct.-Dec.20112,516

Jan.-Mar.20122,661

Apr. Jun.20122,688

20122,938

22.3%

22.6%

34.9%

19.5%21.6%22.4%

35 9%

19.8%

34.8%

22.7%

33.3% 34.7%

p yrepresents the number of regular employees. The average number of temporary employees for each quarter is separately indicated in parentheses.

Personnel expenses

20102,007

2,178,2,097

33.7%

4.0%13.6%0.9%

1 3%

35.9%

4.9%

15.7%

37.2%

4.0%

1 2%14.2%

1 2%

35.9%

4.3%

1.2%

37.8%

4.2%13.1%

4.6%

1.0%

16.1%

4.5%

1.0%

14.4%17.0%

3.6%

0.8%12.5%

Depreciation

Commission *1

Amortization of goodwill

3.8%

15.6%

0.8%

23 8%

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Advertising expenses 391 496 414 470 570 667 655 601 655

24.0%1.3%

22.7% 21.8%

1.2%1.2%

19.2% 23.9% 20.8% 21.7% 24.0%Others

Unit:(million yen)Oct.-Dec.2012: Breakdown of Others・Rent

23.8%

Personnel expenses 721 796 793 809 875 887 932 929 989Depreciation 97 96 87 88 114 119 95 106 112Commission *1 314 378 274 308 405 383 336 361 458Amortization of goodwill 25 25 25 25 25 25 22 22 22

・Rent ¥ 128 M・Subcontract ¥ 240 M・Server maintenance ¥ 105 M・Recruiting

Others 457 426 501 475 523 577 645 642 700337（43） 351（47） 377（43） 385（48） 409（56） 416（64） 442（67） 446（74）Employees *2

・Recruiting ¥ 34 M, etc.


464（75）

Operating Summary by SiteOperating Summary by Site

6

C t P h i S t SitCustomer Purchasing Support Site『 Kakaku.com 』』

7

Access Status for “Kakaku.com”Users Page views

4,000

4,5001,200Users per Month(PC)(smartphone)

42.69M31.29M9.95M

Monthly AccessUsers

(Unit: ten thousand) Page views

(Unit: million)

3,000

3,500

800

1,000( p )(feature phone)

Page Views per Month 1.44M

1,093.97MPV(as of end of Dec. 2012)

2,000

2,500

600

1,000

1,500

200

400

Number of users(feature phone)

Number of users(smartphone)

f ( C)

0

500

0

200

09/4 10/4 11/4 12/4

Number of users(PC)

Page views

12/12

Monthly total of “unique users” is the number of individual users who visit the site during a month. It is not the number

※Monthly each site user counting method The number of monthly users is counted on either a browser basis or device basis. (Source: Kakaku.com, Inc.)

of total visits but the number of net users, counting a user who visits multiple times as one user. We consider this an important indicator for accurately measuring the number of users who are interested in the site. 8

“Kakaku.com” Description of Shopping Business3Q Topics・ Revised the pricing method for pay per click to four levels: 10, 20, 25, 30 yen (Nov).・ Started showing prices of commodities including shipping costs from November.g p g pp g・ Released “Barcode search” function for smartphone sites (Nov).・ “O2O (Online to Offline)” became available to view over the counter pricing and inventory information on online (Dec).

2,400

Trend in Quarterly Sales (million yen) Sales transaction trend of“Kakaku.com Safe Payment Service” (million yen)1,600

Y Y

1,600

2,000

1 000

1,200

1,400YoY

+13.9%

800

1,200

600

800

1,000

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY2011 FY2012

0

400

0

200

400

FY2010 FY2011 FY2012

Shopping 1,699 1,618 1,443 1,477 1,713 1,811 1,670 1,687 1,9520

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

92012

“Kakaku.com” Description of Service Business3Q Topics・ Started providing “Housing loan refinancing simulation” that allows customers to provisionally calculate total payment amount including various expenses and compare different loan products (Dec).・ Quote inquiries for money related categories such as credit card commission fee comparison and comparison of car loans increased steadily.

1,600

Housing loan refinancing simulationTrend in Quarterly Sales (million yen)YoY

+36.9%

1,200

400

800

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY2011 FY2012

0

FY2010 0 0

Service 782 1,125 1,032 967 1,024 1,495 1,384 1,347 1,403FY2010

10

“Kakaku.com” Description of Advertising Business3Q Topics・ Japanese ad clients were encouraged to place advertisements for the year-end sales season, which resulted in a significant increase in advertising sales compared with previous quarter.

・The need for targeted advertising using cookie information increased.* A “cookie” is an identification data that is temporarily written and stored in a user’s web browser when visiting a particular website.

1,200

Number of advertising clients

500 QoQ+5 7%

Trend in Quarterly Sales (million yen)

800

1,000YoY

+14.4%

+5.7%

400

600450

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY2011 FY2012

0

200

400FY2010 FY2011 FY2012

Advertising 813 754 586 702 910 788 700 704 1,041 Q2 Q3FY2010

FY2012

11

Gourmet Site by Ranking & ReviewGourmet Site by Ranking & Review『tabelog』

12

Access Status for “tabelog”Page views Users

4,000

4,500

900

1,000 Users per Month(PC)(smartphone)

40.95M22.85M15.18M

Monthly AccessPage views

(Unit: million) Users

(Unit: ten thousand)

3,000

3,500

700

800

( p )(feature phone)


877.50MPV(as of end of Dec. 2012)

2,000

2,500

400

500

600

1,000

1,500

200

300

Number of users(feature phone)

Number of users(smartphone)

N b f (PC)

0

500

0

100

09/4 10/4 11/4 12/4

Number of users(PC)

Page views

12/12※Monthly each site user counting method The number of monthly users is counted on either a browser basis or device basis.(Source: Kakaku.com, Inc.)

Gourmet site traffic ranking URL Reach（％）

1 Gourmet Navigator gnavi.co.jp 14.02 tabelog tabelog com 13 6

(Source: Nielsen Online Dec. 2012（Home& Work Data）

2 tabelog tabelog.com 13.63 Hot Pepper Gourmet hotpepper.jp 11.44 livedoor gourmet livedoor Gourmet 0.5

13

Description of “tabelog” Business3Q Topics・ As the net increase premium members accelerated, the accumulated total reached 140,000 members in December.・ Started “tabelog banquet/party search” service (Oct).・ Smartphone (browser and app) users reach approximately 40% of total tabelogusers.

1,200

Trend in Smartphone UU (million people)

16


800

1,000

12

YoY+62.8%

400

600 8

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY2011 FY2012

0

200

0

4

FY2010 FY2011 FY2012

tabelog 456 491 476 552 680 830 796 933 1,108 Apr May Jun Jul Aug Sep Oct Nov Dec2012

14

Travel and Real Estate etcTravel and Real Estate, etc.

15

Access Status for Travel and Reservation SitesW b it f l t i t

Word-of-mouth Travel Site『4travel』

Website for last-minute discounts on rooms at hotels and Japanese-style inns『yoyaQ.com』

Users per Month(PC)(smartphone) (feature phone)

4.88M4.25M0.47M0.16M


0.58M0.29M0.21M0.08M(feature phone)


32.69MPV(feature phone)


5.90MPV(as of end of Dec. 2012) (as of end of Dec. 2012)

(Transferred in Oct. 2004)(Acquired in Jan. 2005) 16

Access Status for Real Estate SitesSearch Site for Brand-new apartment『 Mansion DB 』

Real Estate/Housing Information Site『 Sumaity 』



0.78M0.67M0.10M0.02M

0.21M0.18M0.02M0.01M(feature phone)

Page Views per Month (feature phone)


7.92MPV0.01M

1.04MPV(as of end of Dec. 2012) (as of end of Dec. 2012)

(Opened in Sep. 2008) (Opened in Apr. 2007) 17

Access Status for “eiga.com” and “PHOTOHITO”Comprehensive Movie Information Site『eiga.com 』

Photo Community Site『PHOTOHITO』


4.86M4.23M0.11M0.52M

0.36M0.36M

Users per Month(PC)

(feature phone)

Page Views per Month (as of end of Dec. 2012) (as of end of Dec. 2012)

0.52M

26.12MPV 14.38MPVPage Views per Month

(Acquired in Apr. 2007) (Opened in Feb. 2008) 18

Description of Travel and Real Estate Business3Q Topics・ Number of likes for 4travel Facebook page rose above 70,000 in December. Number of word-of-month reviews has also been increasing steadily.・ Encouraged more postings by increasing number of photos from 5 to 30 to be posted at one time on travel blog (Dec).・ Number of registration and inquiries on Sumaity Rental Property increased steady.

450

500

Trend in the Number of Inquiries on “SumaityRental Property”

YoY

Trend in Quarterly Sales (million yen)YoY

+130 9%

300

350

400

450 +30.0% +130.9%

100

150

200

250 FY2011 3Q FY2012 3Q

Trend in the Number of Word-of-month Reviews on 4travel (ten thousand reviews)

50

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY2011 FY2012

0

50

100

FY2010 0

25

Travel and Real Estate, etc. 305 348 309 363 338 372 388 428 439

19

0 3/11 6/11 9/11 12/11 3/12 6/12 9/12 12/12

FinanceFinance

20

Description of Finance Business3Q Topics・ As a result of number of contracts for life/non-life insurance increasing steadily, sales in insurance agency business increased by 42.3% from the previous quarter.・ Sold and transferred majority of FX margin transaction service business to SaxoBank FX Securities K.K. in January. Remaining business is scheduled to cease operations in early March.

200

Number of life insurance contracts (thousand contracts)

3YoY


1502

YoY+72.8%

YoY+29.1%

50

100

1

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY2011 FY2012

0 01Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

FY2010 FY2011 FY2012

Finance 121 123 132 166 129 157 150 144 166 2010 2011 2012FY2010

21

FY FY FY

Strategy for FY2012 2H and AfterStrategy for FY2012 2H and After

22

FY2012 2H Objectives

E d b i fi ld f K k kExpand business field of Kakaku.com

Full-scale monetization of tabelog

R S it t b h i Renew Sumaity to become a comprehensive real-estate site and boost number of 4travel users

23

FY2012 2H Business Strategies

Revised the pricing method for pay li k f t t f l l d

Measures already implemented

Increase in number of stores for O2O business

Measures to be implemented going forward

Kakaku.com

per click from two- to four-leveled

Started O2O business

Started “Housing loan refinancing

Scheduled to implement renewal of the interior category in March

Sched led to pro ide estimates for g gsimulation”

Provided “tabelog banquet/party h” f ti

Scheduled to provide estimates for housing renovations in February

I b f t t

tabelogsearch” functionRenewed online restaurant booking system with added functions such as reservation book and customer management system

Increase number of restaurants using restaurant booking system and online reservations via booking system

Travel and Real Estate,

etc

Released Sumaity’s for brand-new apartment searchIncrease traffic of 4travel by boosting number of new postings and

Smartphone page optimization for Sumaity and 4travel Reinforce number of postings and SNS alliance for 4traveletc.

y gboosting number of new postings and by enhancing SNS alliances.

Finance(I )

Target improved usability and an increase in the number of products

SNS alliance for 4travel

Target increase in product offerings by improving plans offered and UIRamp up additional production of (Insurance) c ease t e u be o p oducts

offered p

a p up add t o a p oduct o ocontent and products for smartphones

24

Supporting MaterialSupporting Material

25

Site Business

Segments and Their Business DetailsSegment Site

CategoryBusiness Category Business Details

Shopping Commission from registered shops based on the number of clicks and sales performance.

Inter

Kakaku.com Service

Commission according to the number of broadband line contracts.Commission based on estimates/brochure requests for car insurance, finance, and used car searches.rnet M

ed

AdvertisingAdvertising income from banners, text advertisements, and advertisements interlocking with search keywords and website contents on “Kakaku.com”.

Income from “tabelog” (income from advertisements for restaurants dia tabelog tabelogg (

and regular clients, income of pay-for-service business for individuals).

OtherTravel and

R l E t t Income from operative sites such as “yoyaQ.com”, “4Travel”, Other Real Estate,

etc.

p y y , ,“Mansion DB”, and “Sumaity”.

F Commission from general independent agency business of life insurance and non-life insurance.Finance

Finance*Run by Kakaku.com Insurance, Inc.

Commission from customers of online FX margin transactions, option trading, and contract for difference (CFD) trading. (Withdrawal is planned on March 31, 2013)

*Run by Kakaku.com Financial, Inc.

2626

User Profile for Our SiteHigh proportion of users aged 30 and over. The websites are used by users with purchasing power.Proportion of male users is higher. An increase in female users is expected in the future.There is more access from metropolitan areas. An increase in the amount of access from rural areas is expected to grow in the future.

Users aged 30 and over Users living in the Kanto Male users account f 60%

100% 100%100%

account for 80% region account for 50%for 60%

Age Distribution Male/Female Ratio Geographical Attributes

60%

80%

60%

80%

60%

80%

20%

40%

20%

40%

20%

40%

0%

Group site Kakaku.com tabelog

50+ 40-49 30-39 20-29 19=>

0%

Group site Kakaku.com tabelogKanto KansaiTokai Hokkaido/TohokuKyushu/Okinawa Chubu/Hokuriku

0%

Group site Kakaku.com tabelogMale Female

yChugoku Shikoku

(Age distribution and male–female ratio / Source: Nielsen Online Dec. 2012)(Geographical Attributes / Source: Kakaku.com, Inc. Dec. 2012) 27

Consolidated Quarterly Sales Before and After the Accounting Treatment ChangeAccounting Treatment Change

Consolidated sales after change (presented on a net basis)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Sales after change 2 5812 5583 0513 4663 5143 4484 1784 4623 9804 2294 7975 4565 0915 2456 112

Unit:(million yen) FY2009 FY2010 FY2011 FY2012

Sales after change 2,5812,5583,0513,4663,5143,4484,1784,4623,9804,2294,7975,4565,0915,2456,112

Consolidated sales before change ( t d b i )(presented on a gross basis)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Sales before change 3,138 2,799 3,494 3,615 4,079 3,524 4,583 4,615 4,510 4,297 5,235 6,043 5,636 5,556 6,466

Unit:(million yen) FY2009 FY2010 FY2011 FY2012

28

Operating Profit by Quarter (Consolidated)

60%4,000

(Unit: million yen)

40%

50%

3,000

30%

40%

2,000

20%

1,000

0%

10%

0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Operating profit 1,136 1,120 1,491 1,707 1,758 1,683 2,171 2,241 1,882 2,051 2,281 2,794 2,402 2,581 3,173

Operating profit margin 44.0%43.8%48.9%49.3%50.0%48.8%52.0%50.2%47.3%48.5%47.6%51.2%47.2%49.2%51.9%

0%0

FY2009 FY2010 FY2011 FY2012


Sales by Business for Each Term (Consolidated Basis)(Consolidated Basis)

18,463

15,603

11,657

34.9%

15,603

38.7%

Shopping

ku.c

om

24.5%39.3%

22.0%

9,026

34.4%6,219*Note 2: Each amount is the

Service

Kak

ak

16.2%

13.7%

25.3%18.2%

10.2%19.5%

24.4%

22.7%

,

28.1%

27.6%

26 0%

value after eliminating internal sales amount or transfer amount for inter-segment sale or transfer.

Advertising

tabelogTravel and Real

FY2007 FY2008 FY2009 FY2010 FY2011Shopping 1,716 3,105 4,581 6,043 6,445

7.5%3.2%

4.7%7.2%4.0%

7.8%3.1%

3.1%9.3%6.1%

1.7%10.2%6.4%

26.0%Unit:Sales(million yen)Percentage of sales(%) Finance

Travel and RealEstate,etc.

Service 1,746 2,199 2,951 3,426 4,520Advertising 1,619 2,050 2,271 2,848 2,988tabelog 108 283 541 1,584 2,539Travel and Real Estate, etc. 633 839 844 1,213 1,384, , ,Finance 395 547 466 487 585


Trend in Operating Income by Fiscal Year (Consolidated)

60%10,000

(Consolidated)(Unit: million yen)

50%8,000

30%

40%6,000

20%4,000

0%

10%

0

2,000

FY2007 FY2008 FY2009 FY2010 FY2011Operating profit 1,915 3,914 5,456 7,854 9,010 Operating profit margin 30.8% 43.4% 46.8% 50.3% 48.8%

0%0


Shareholder returns

Increased dividend per share each fiscal year. Forecast dividend per share of 35 yen for fiscal year ending March 2012

Dividend amountUnit: yen

¥35 35

40 Unit: yen

Trend of dividend per share

¥25 25

30

¥19 20

25

¥12

10

15

¥2.3

¥6

0

5

0 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012

(Forecast)

32※The 2-for-1 stock split (occurred July 2008) and 200-for-1 stock split (occurred in August 2011) are both calculated to have been completed in the beginning of fiscal year ending March 2007.

Business Results for 3Q Consolidated Accounting Period of FY2012 Comparison with Previous 3Q Consolidated Accounting PeriodQuarterly consolidated accounting period (3 months) Unit: million yen

Oct.-Dec. 2011 Oct-Dec. 2012Amount

increase/decreaseIncrease-Decrease

ratio

Sales 4,797 6,112 1,315 27.4% increase

Operating profit 2,281 3,173 892 39.1% increase　Operating profit margin 47.6% 51.9%

Current profit 2,282 3,176 893 39.2% increase

Net income 1,324 1,943 618 46.7% increase

EBITDA* 2,476 3,400 923 37.3% increaseEBITDA 2,476 3,400 923 37.3% increase

Consolidated accounting period (9 months) Unit: million yen

Apr.-Dec. 2011 Apr.-Dec. 2012Amount

increase/decreaseIncrease-Decrease

ratio

Sales 13,007 16,449 3,441 26.5% increasesOperating profit 6,216 8,157 1,941 31.2% increase

Operating profit margin 47 8% 49 6%　Operating profit margin 47.8% 49.6%

Current profit 6,219 8,123 1,903 30.6% increase

Net income 3,615 4,941 1,325 36.7% increase

*EBITDA = (profit before taxes) + (depreciation) + (goodwill amortization) + (interests paid) Note: Effective from FY2012, the presentation of service business sales is changed from a gross basis to a net basis. Following this change, actual figures in and before the FY2011 have been restated on a net basis.

33

EBITDA* 6,571 8,537 1,965 29.9% increase

Cash Flow Statement for 3Q Consolidated Accounting Period of FY2012Comparison with Previous 3Q Consolidated Accounting Period

Quarterly consolidated accounting period (3 months) Unit: million yen

Oct.-Dec. 2011 Oct.-Dec. 2012Amount

increase/decrease

Cash flow from operating activities 149 669 520

Cash flow from investing activities (264) (120) 143

Cash flow from financing activities 16 (2 740) (2 757)Cash flow from financing activities 16 (2,740) (2,757)

*Free cash flows (115) 549 664

Cash and cash equivalents, end of quarter 15,536 12,349 (3,187)

Consolidated accounting period (9 months) Unit: million yen

Apr.-Dec. 2011 Apr.-Dec. 2012Amount

increase/decrease

Cash flow from operating activities 2,385 4,131 1,746

Cash flow from investing activities (427) (3,448) (3,020)

Cash flow from financing activities (897) (6,721) (5,824)

*Free cash flows 1,958 683 (1,274)

*Free cash flows = (Cash flow from operating activities) + (Cash flow from investing activities) 34

Cash and cash equivalents, end of quarter 15,536 12,349 (3,187)

Balance Sheets as of End of 3Q Consolidated Accounting Period of FY2012 Comparison with End of Previous 3Q

Consolidated Accounting Period(Assets)

C t t 23 805 93 9% 25 093 94 1% 1 287

Dec. 2011 Dec. 2012Increase

/ Decrease Current assets 23,805 93.9% 25,093 94.1% 1,287 Cash and deposits 15,468 15,405 (62) Cash segregated as deposits 2,932 4,262 1,330 Accounts receivables 2,887 3,372 485 Others 2,517 2,052 (465)Non-current assets 1,538 6.1% 1,587 5.9% 48, , Property, land and equipment 484 540 56 Intangible assets 682 595 (87) Investment and other assets 370 450 80Total assets 25,343 100.0% 26,680 100.0% 1,336 (Liabilities)Current liabilities 8,318 32.8% 9,658 36.2% 1,340 Accounts payables 1,246 1,613 366 Accrued income taxes 752 1,218 466 Guarantee deposits 3,952 4,616 663 Others 2,366 2,210 (156)N t li biliti 92 0 4% 124 0 5% 31Non-current liabilities 92 0.4% 124 0.5% 31 Deferred tax liabilities 36 52 15 Asset retirement obligations 55 64 8 Others 0 7 7Total liabilities 8,410 33.2% 9,782 36.7% 1,372 (Net assets) (Net assets) Capital stock 842 915 73 Capital surplus 1,291 1,365 73 Retained earnings 14,643 17,316 2,673 Treasury Stock - (2,880) (2,880) Stock warrants - 11 11

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Stock warrants 11 11 Minority interests 155 167 12Total net assets 16,932 66.8% 16,897 63.3% (35)Total liabilities and net assets 25,343 100.0% 26,680 100.0% 1,336

Services provided by the Kakaku.com Group◆Gourmet Site by Ranking & Review｢

◆Website for last-minute discounts t h t l d J t l

◆Customer Purchasing Support Site「｢tabelog｣ http://tabelog.com/

This site provides reliable restaurant rankings by rating them on a scale of one to five based on word-of-mouth and reviews collected from users who actually visited the restaurants. An information service for member restaurants is

l i i l it

on rooms at hotels and Japanese-style inns「yoyaQ.com」 http://yoyaq.com/This is a reservation service for rooms at hotels and Japanese-style inns at bargain rates for plans that are discounted due to last-minute

「Kakaku.com」 http://kakaku.com/This site provides price/product/word-of-mouth information on various products and services including PCs and home electronics, broadband and mobile phone telecommunication fees, food/drink, interiors and cosmetics.

◆ Real Estate/Housing Information Website「Sumaity」 http://sumaity.com/

◆Photo Community Site「PHOTOHITO」 http://photohito.com/Based on the concept of “connecting people with

◆Search Site for Brand-new apartment「Mansion DB」 http://mansion-db.com/This site provides information on newly built

also gaining popularity.pcancellations or other special reasons.

Providing information on rental properties and apartments/houses for sale.Enables house-hunting according to one’s needs, with enhanced house-related information including area details,loan simulations, etc.

Based on the concept of connecting people with photos,” this site provides a place to proudly share photos. Linked to extensive product data on cameras and lenses, kakaku.com allows users to go “from photos to cameras/lenses” and “from cameras/lenses to photos.”

This site provides information on newly built apartments as well as details on their surroundings to allow searches to be refined in various ways to match user needs. Users can request brochures on multiple properties simultaneously.

◆Insurance Consulting Servicehttp://hoken.kakaku.com/This site covers a wide range of policies including life insurance, non-life insurance, car insurance and travel insurance. Experienced and impartial consultants select and propose

◆Word-of-mouth Travel Site「4travel」 http://4travel.jp/Based on the concept of “online travel guide everyone joins to create,” this site provides information on travel at home and abroad posted by users. It also provides a service to compare and

◆Comprehensive Movie Information Site「eiga.com」 http://eiga.com/

This site provides a wide range of information including on the latest movies from Hollywood/Europe, movie reviews by professional critics and our editorial desk as and impartial consultants select and propose

products that match a customer’s request. Inquiries are welcomed via Internet or phone and at agencies (run by our consolidated subsidiary,Kakaku.com Insurance, Inc.)

◆Fashion Coordinator Site for Women

users. It also provides a service to compare and review hotels, tours and air tickets among others, as well as a travel blog service to write up travel memories on the web for free (run by our consolidated subsidiary,4travel, Inc.)

professional critics and our editorial desk as well as those posted by users (run by our consolidated subsidiary,eiga.com, Inc.)

◆ Photo Sharing Application for Food ◆Cooking Support Application ◆Fashion Coordinator Site for Women「Dre‘Che」 http://dreche.co

This site lets users search images of fashion coordination posted by other users by such categories as “item” and “brand.” In addition, users can find the latest ensemble through user ranking. This is a convenient site for users to get insights on

◆ Photo Sharing Application for Food 「Tabera」 http://camera.tabelog.com/ Unique to “tabelog,” this photo sharing application focuses on gourmet meals, embracing the concept of “share your everyday cuisine and restaurant.” The proprietary image-editing function enables photos of food to look even more delicious and the uploaded photos are shared among users. These photos can be shared easily through Twitter and Facebook with the

◆Cooking Support Application 「recipom」 http://recipom.com/“Link to your refrigerator” is the concept of this cooking support application, which enables users to search for recipes that use the ingredients in their refrigerators while managing the ingredients they have in stock. By registering the contents of their refrigerators, users can find recipes that use their available ingredients Byg g

what to buy or wear among the clothes they have. shared easily through Twitter and Facebook with the restaurant information provided by “tabelog.”

find recipes that use their available ingredients. By combining the displayed recipe choices, users can plan menus easily.

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Company Profile■Company Name Kakaku.com, Inc.■Address EBISU IMARK GATE（Daikanyama Digital Gate Building）,

3-5-7, Ebisu minami, Shibuya-ku, Tokyo 150-0022 ■Founded December 1997■Founded December 1997■URL http://corporate.kakaku.com/■Share Listing The First Section of Tokyo Stock Exchange■Stock Code 2371

■Related CompaniesKakaku.com Insurance, Inc. URL: http://hoken.kakaku.com/insurance/company.html4travel, Inc. URL: http://4travel.jp/Kakaku.com Financial, Inc. URL: http://kakakufx com/Kakaku.com Financial, Inc. URL: http://kakakufx.com/eiga.com, Inc. URL: http://eiga.com/

Information and future prospects herein are based on company judgments founded on data available at time of document preparation and on the premise of assumptions made on uncertain data. Therefore, the contents of this document may not be consistent with the actual business performance and results due to that such are subject to various factors in the future.

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kakaku.com, inc. management vision and strategy result...

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