COOKPAD Inc.FY2011 Financial Results

Jun, 2012

Highlights of FY2011

2

Total sales increased by 20% y/y due to growth of Premium Services Business.

Paid members steadily increased.

Healthy increase of new paid members via Smartphones.

Summary of Business Conditions of FY2011

　

FY2010 FY2011(Forecast)

FY2011(Result) y/y

Net sales 3,263 4,000 3,909 +19.8％

Operating income 1,626 1,872 1,929 +18.6％

Ordinaryincome 1,594 1,822 1,907 +19.7％

Net income 847 1,002 1,110 +31.0％

（¥ million）

4

Summary of Business Conditions- Operating income increased by 19% y/y -

0

800

1,600

2,400

3,200

4,000

2011/4 2012/4

558

4441,028

1,108

2,3221,710

（¥ million）

Premium ServicesMarketing SupportAdvertising

3,263

3,909 　y/y Causes

Premium Services +35.8％ Stable growth

Marketing Support -7.2% Reorganization of

product strategy led to rapid growth of Advertising Business

Advertising +25.8％

Reorganization of product strategy led to rapid growth of Advertising Business

5

Business Results of FY2011- Premium Services continue to grow -

（¥ million）

0

200

400

600

800

1,000

1,200

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

215

162102

7999127109

107110

106

8487

265228311

222254286300

266300

256

210200

638582558542497451402358306237179129

Premium ServicesMarketing SupportAdvertising

417473

599

716 732

865813 851 844

2012/42010/4 2011/4

972 973

6

1,119

Net Sales by Business - Highest Sales in Company History -

0

400

800

1,200

1,600

2,000

2011/4 2012/4

483

486 228

171166

113

1,057822

(¥ million)

　y/y Causes

Personnel costs +28.6％Growth in no. of employees

(86 in Apr 2011 to 102 in Apr 2012)

System related costs +46.6％ Service expansion

Paid-charge commissions +33.2％ Increase in paid

members

Others -0.6% Temporary high costs in FY2011 Q4

Personnel costsSystem related costsPaid-charge commissionsOthers

1,935

1,593

7

SG&A increase/decrease

（¥ million）

0

100

200

300

400

500

600

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

127

124111120

223

967492

89

776082

67

57515250

444035

30

231713

4538503130

272727

31

292719295

260253247259200189171

219

133123113

Personnel costsSystem related costsPaid-charge commissionsOthers

228 230263

370327

370330

565

451

2012/42010/4 2011/4

482466

8

535

Breakdown of SG&A for Each Quarter

9

　

FY2010 FY2011 y/y

Cash flow from operating activities 988 561 -427

Cash flow from investing activities -56 -43 12

Cash flow from financing activities 2 28 26

Cash and cash equivalents at the end

of quarter3,439 3,978 538

（¥ million）

Cash Flows

Business Details

0

4.5

9.0

13.5

18.0

Nov Jan Mar May Jul Sep Nov Jan Mar

（million）

Device UUs (million)

PCs 10.69

Smartphone Browsers* 4.51*

2011/4 2012/4

PCsSmartphons

11

Smartphone browser-based users steadily increased

COOKPAD’s monthly UUs (PCs, Smartphone browsers)

Unique users by device (Apr, 2012)

*Not including iPhone Apps/Android Apps users

12

More than 1.2 million registered recipes

Business Updates

0

100

200

300

400

500

600

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

638582558542497

451402

358306

237179

129

2012/42010/4 2011/4

（¥ million）

2010/4 2011/4 2012/4 14

Premium Services Business Sales of Premium Services Business increased by 28.4% y/y in FY2011 Q4. Paid members steadily increased and q/q growth of paid members accelerated.

Sales for each quarter Paid members

Nov Jan Mar May Jul Sep Nov Jan Mar

Healthy increase of new paid members via Smartphones

15y/y Increase shown from January

2011/4 2012/4

Smartphone paid membership has steadily increased

Incremental increase in number of paid members

16

The smartphone-app users steadily increased

iPhone App

4.5milliondownloads

Android App

3.0milliondownloads

As of Apr. 2012

（¥ million） （¥ million）

0

50

100

150

200

250

300

350

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

265228

311

222254

286300266

300256

210200

0

50

100

150

200

250

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

215

162

10279

99127

1091071101068487

2012/42010/4 2011/4 2012/42010/4 2011/4 17

Marketing Support Advertising

Sales of Marketing Support Business decreased by 4.2% y/y in FY2011 Q4. Sales of Advertising Business increased by 116.2% y/y in FY2011 Q4. Overall business efficiency improved due to growth of Advertising Business.

Marketing Support Business/Advertising Business

0

80

160

240

320

400

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

9464

85

2887638635

171164227194167

224214230

Existing CustomersNew Customers（¥ million）

2011/4 2012/4

266300 286

254222

311

228

18

265

Sales breakdown of existing customers/new customers

19

TV commercials +

Promotions on COOKPAD!

- Pageviews are at five times the normal rate- More than 800 recipes

Recent successful projects in recipe marketing

Tie-ups with TV commercials

No. 1 in “Soup”No. 4 in “Gyoza”in Search by popularity

(Apr 2012)

Recipe Contest on COOKPAD drove the “Shiokoji” boom

Hot-selling products

Future Strategy

A global service for every household in the world!

21

22

Recipes FoodBeauty*

Sport*

Commerce**

Healthy*

Farming

PastHuge Recipe Collection・User-created contents・”Saving money,” “Easy,” “Speedy”

FutureFood Platform・Ordinary users and celebrities/Professionals・ Better food according to one’s goal・Entry into e-commerce market

Market size¥30 trillion

*Health food market：¥0.7trillion**Food delivery market：¥1.7trillion

Market size of recipe books

Around ¥30 billion

（Yano Research’s Survey）

Premium Service:- Targeting new age groups- Service expansion

Now

・Branding: 　NO.1 recipe service in Japan・Business model: 　Start and growth of Premium service

・New age groups:　More women and men・Service expansion:　ex. Healthy, Beauty・Promotion:　Awareness of new services

23

Marketing support and Advertising:Promotions utilizing existing user base

・Top page renewal・Tie-up with retail companies　

24

“Menu for healthy lifestyle” “Quick side dish search”

New services for Smartphone users

25

New launch of Recipe Store

26

Both sales and Operating income will increase y/y

Agile service expansion and promotion

Speed up for creation of food platform

27

FY2012 forecast

Connect people to share great experiences around cooking.

- This document includes some forecasts, which are based on currently available information. It may contain an element of uncertainty. Actual performance data and similar information may differ due to diverse factors.

- We appreciate your understanding. When producing this document, we were careful not to include errors or omissions, but the authenticity and integrity of the information are not guaranteed.