COOKPAD Inc.FY2011 H1 Financial Results

December, 2011

Highlights of FY2011 H1

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Both sales and operating income were above the previous forecast and increased y/y.

Sales of Premium Services Business increased by 44.5% y/y. Paid members continue to steadily increase.

Sales of Marketing Support/Advertising Business has recovered after the earthquake.

Summary of Business Conditions of FY2011 H1

Summary of Business Conditions- Exceeded Forecasts -

　

FY2010 H1 FY2011 H1 y/y

Net sales 1,545 1,817 +17.6%

Operating income 864 878 +1.5％

Ordinary income 856 846 -1.2%

Net income 459 462 +0.6％

（¥ million）

4

0

400

800

1,200

1,600

2,000

FY2010 H1 FY2011 H1

181

216 534

566

1,100761

Business Results of FY2011 H1- Premium Services continue to grow -

（¥ million）

5

Premium ServicesMarketing SupportAdvertising

1,545

1,817　

y-y Causes

Premium Services +44.5％ Stable growth

Marketing Support -5.7%

After the earthquake, Marketing Support and Advertising Business have recovered.

Advertising -16.2%

After the earthquake, Marketing Support and Advertising Business have recovered.

（¥ million）

60

200

400

600

800

1,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

102

7999127109

107110

106

8487

311222

254286

300266

300

256

210200

558542497451402358306237

179129

Premium ServicesMarketing SupportAdvertising

417473

599

716 732

865813

851 844

2012/42010/4 2011/4

972

Net Sales by Business - Highest Sales in Company History -

0

200

400

600

800

1,000

2011/4 H1 2012/4 H1

230

166103

7581

54

501360

（¥ million）

7

　y/y Causes

Personnel costs +38.9％Growth in no. of employees(75 in Oct 2010 to 98 in

Oct 2011)

System related costs +48.6% Service expansion

Paid-charge commissions +36.5％ Increase in paid

members

Others +38.6％Increase in

recruiting costs, rent accounts, etc.

Personnel costsSystem related costsPaid-charge commissionsOthers

917

655

SG&A increase/decrease

（¥ million）

80

100

200

300

400

500

600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

111120

223

967492

89

776082

515250

444035

30

231713

503130

272727

31

292719 253247259200189171

219

133123113

Personnel costsSystem related costsPaid-charge commissionsOthers

228 230263

370327

370330

565

451

2012/42010/4 2011/4

466

Breakdown of SG&A for Each Quarter

Business Details

0

4.5

9.0

13.5

18.0

Aug Oct Dec Feb Apr Jun Aug Oct

COOKPAD’s monthly UUs (PCs, Smartphone browsers)

More than 15 million monthly users

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（million）

Device UUs (million)

PCs 13.82

Smartphone Browsers* 1.93

Unique users by device (Oct, 2011)

2011/4 2012/4

*Not including iPhone Apps/Android Apps users

PCs Smartphones

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Population in Japan（A）(million)

COOKPAD Users（B）(million)

B/A

Total 127.9 13.8 11%

All women 65.6 13.4 20%

50- 30.3 1.0 3%

40-49 8.3 2.9 35%

30-39 8.8 5.0 57%

20-29 6.8 3.8 56%

10-19 5.8 0.6 11%

0-9 5.3 0.0 0%

Used by more than 50% of all Japanese women in 20-30s

Source: MIC (Feb. 2011), COOKPAD’s UU on PCs (Oct. 2011), COOKPAD’s Survey (Jul. 2011)

More than 90% of users visit COOKPAD at least once a week

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Over 90% of COOKPAD users buy ingredients by themselves

Platform for spending decisions

Source: COOKPAD’s Survey (Jul. 2011) Source: COOKPAD’s Survey (Jul. 2011)

Less than once a week5.5%Once a week

7.1%

2-3 days a week24.2%

4-5 days a week21.8%

Almost everyday41.4%

Herself/himself

Partner

Child

Parent

Other

0% 20% 40% 60% 80% 100%

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More than 1.08 million registered recipes

Business Updates

150

100

200

300

400

500

600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

558542497

451402

358306

237179

129

2012/42010/4 2011/4

Sales for each quarter

2010/4 2011/4 2012/4

Paid members(¥ million)

Sales of Premium Services Business increased by 38.6% y/y in FY2011 Q2. Paid members steadily increased after September due to adoption of iPhone’s IAP and Softbank’s payment system.

Premium Services Business

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Paid members have rebounded after September

Jul Aug Sep Oct

Withdrawals from MOBAREPI increased

Incremental number of paid membersNew members on Smartphone service

increasedAdoption of iPhone’s IAP and Softbank’s payment system

iPhone App

3milliondownloads

17

Android App

1.5milliondownloads

As of Oct. 2011

The smartphone-app users steadily increased

18

Feature development making best use of Smartphone’s usability

You can bookmark up to 4 recipes for each meal

0

50

100

150

200

250

300

350

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

311

222254

286300266

300256

210200

0

50

100

150

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

102

7999

127109107110106

8487

2012/42010/4 2011/4 2012/42010/4 2011/4 19

Marketing Support Advertising

Marketing Support Business/Advertising Business

Sales of Marketing Support Business increased by 3.8% y/y in FY2011 Q2. Sales of Advertising Business declined by 7.0% y/y in FY2011 Q2. After the earthquake, Q1 was a difficult period but Q2 business conditions recovered.

(¥ million) (¥ million)

20

Marketing Support

Sales for existing customers increased

0

80

160

240

320

400

Q1 Q2 Q3 Q4 Q1 Q2

85

2887638635

227194167224214230

Existing customersNew customers(¥ million)

266300 286

254222

311

2011/4 2012/4

21

CTR26.5％ on the project page

New cooker’s marketing

High visibility

Tie-up with retailers

Collaboration of Web and shop front

Asahi Beer x Nisshin Foods

Support of shop-front campaign

New successful projects in recipe marketing

FY2011 forecast

　

FY2011 H1Previous forecast

FY2011 H1Result

Budget progress for FY2011 H1

FY2011Forecast

Budget progress for FY2011

Net sales 1,730 1,817 105.0% 4,000 45.4%

Operating income 761 878 115.4% 1,872 46.9%

Ordinary income 736 846 114.9% 1,822 46.4%

Net income 405 462 114.1% 1,002 46.1%

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(¥ million)

New Business

Grocery-shopping Support Business

Buy ingredients CookSearch

recipesPost recipes

24

New Business- Omisekurabe (Launched Sep, 2011)- Yasai-Bin (Launced Dec, 2011)

25

“Omisekurabe” (Online-supermarket Comparison Service)

“Yasai-Bin” (Vegetable Delivery Service)

26

Linkage of Cookpad member and supermarket point card accounts

Service integration and shop-front promotion based on purchasing

Seven supermarket chains (462 stores) agreed on collaboration

27

Users

Retailers Food manufacturers

COOKPAD

Platform for Spending Decisions

9.97MM　×　¥ 60,000　×　12months　

＝　¥7.2trillion

avg. food budgetavg. monthly users in 11/4

Source: MIC’s family budget statistics (2010), COOKPAD’s avg. UU (2011/4)

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- 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.

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