FY2013 Q3 Financial ResultsMarch, 2014

COOKPAD Inc.

Highlights of FY2013 Q3

■ Consolidated Net Sales is 4,693million yen、Consolidated Ordinary Income is 2,307million yen.

■ Non-Consolidated Net Sales increased by 31.5％ y/y.

■ Paid members increased at an accelerated pace, growing to over 1,200,000 members.

■ Smartphone contributed to Ad Business.

2

※Started consolidated balance sheet from FY2013 Q2. Started consolidated income statement from FY2013 Q3.

Summary of Business Conditions

3

※1 Started consolidated balance sheet from FY2013 Q2 and started consolidated income statement from FY2013 Q3. Consolidated income statement includes 3 months of income statement of Coach United Inc. and 9 months of income statement of COOKPAD Inc. (US).

※2 Differences between operating income and ordinary income are mainly from allowance for investment loss and exchange loss.

　FY2012 Q39 months

（Non-consolidated）

FY2013 Q39 months

（Non-consolidated）

y/y

Net sales 3,544 4,659 +31.5％

OperatingIncome 1,875 2,440 +30.1％

OrdinaryIncome 1,865 2,375 +27.3％

Net Income 1,151 1,476 +28.2％

（¥ million）

FY2013 Q39 months（Consolidated）

4,693

2,341

2,307

1,398

※2

※1

Net Sales comparison to past quarter result

0

1,000

2,000

3,000

4,000

5,000

6,000

FY2012 Q3 FY2013 Q3

1,799

1,359

2,8532,184

Premium servicesAdvertisingOthers

(¥ million)

　

Change Factors

PremiumServices

Accelerated growth of paid members

Advertising

Growth of Banner and Tie-ups

Contribution of Smartphone ads

4

3,544

4,69340

Non-consolidated Consolidated

Net Sales trend by Business

5

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q３ Q4 Q1 Q2 Q3

564574660

620485

452420480

390413302354414

410373 1,019956877816775727681638582558542497451402358

Premium servicesAdvertisingOthers

732

865813 851 844

FY2011

972 9731,103

FY2012

■ Highest sales in the history

1,119

1,259

1,4371,539

FY2010 FY2013

1,5332

361

ConsolidatedNon-consolidated

1,180

1,620

(¥ million)

0

500

1,000

1,500

2,000

2,500

FY2012 Q3 FY2013 Q3

544

406

49147

40

108

79323

240

1,119859

SG&A comparison to past quarter result

6

　 Causes

Personnelcosts

Growing number of employees (117 in Jan. 2013 to 147 in Jan. 2014 on non-consolidated basis. 169

in Jan. 2014 on consolidated basis)

Paid-chargecommissions Increase in paid members

Cloud-serviceusage fees

Stable after AWS migrationin FY2011

Promotionfees Shop affiliates increased

Goodwill amortization

Goodwill amortizationof Coach United Inc.

Others Increase in various costs due to service expansion

2,292

1,626

Personnel costsPaid-charge commissionsCloud-service usage feesPromotion feesGoodwill amortizationOthers

Non-consolidated Consolidated

(¥ million)

SG&A trend

7

0

100

200

300

400

500

600

700

800

900

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

192

182169150

132138135133129105116

220

937189

49

73

462613

20172

38

363231

2625283428503130

272727

11210710395

8780726757515250

444035 418359341365

292281285300265259251262203191174

Personnel costsPaid-charge commissionsCloud-service usage feesPromotion feesGoodwill amortizationOthers

327 330370

565

451 466 482535 522

FY2010 FY2011 FY2012

■ Non-Consolidated SG&A in FY2013 Q3 (3 months) is 765 million yen.■ Differences from consolidations/non-consolidations are mainly fromgoodwill amortization and personnel costs■ Increase in personnel costs & promotion fees

544 559

656 673

FY2013

733

886

Non-consolidated Consolidated

(¥ million)

Operating Income trend

8

■ Non-Consolidated Operating Income in FY2013 Q3 (3 months) is 810 million yen and increased by 17.2% y/y.

Non-consolidated Consolidated

FY2010 FY2011 FY2012

0

100

200

300

400

500

600

700

800

900

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

710787843

769691

620563569481491

386275

486470394

FY2013

810 Differences between

consolidation/non-

consolidation

100 million yen

(¥ million)

Business Details - Users

9

The number of monthly users

0

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

Jul Oct Jan Apr Jul Oct Jan

1.171.43

1.482.19

2.553.45

4.28

8.147.54

6.676.53

5.764.97

3.8316.5614.29

11.009.888.706.805.31

15.0215.9514.8114.0613.8814.1712.69

FY2012

(million)

※The number of monthly users is counted on either a browser basis or device basis.

PCSmartphone browsersSmartphone appsFeature phonesOthers

29.41 30.9032.77 34.29

■ The number of total unique visitors is 41.34M as of Jan. 2014.■ The number of Smartphone users is 24.7M as of Jan. 2014.

Smartphone users

24.70M

39.59

FY2013

41.34

26.13

0.430.36

0.10 0.31

More than 1.6 million recipes

10

（million）

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

Jul Oct Jan Apr Jul Oct Jan

1.271.33

1.381.45

1.511.57

1.63

FY2012

Registered recipes

FY2013

Premium Services Business

11

0

200

400

600

800

1,000

1,200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

1,019956

877816775

727681638

582558542497451

402358

FY2011FY2010

Sales trend Paid members

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

FY2012 FY2010 FY2011 FY2012

■ Sales of Premium Services Business increased by 31.5％ y/y in FY2013 Q3.■ Accelerated increase in paid members, already grown over 1,200,000.

FY2013 FY2013

(¥ million)

Number of paid members

12

■ Accelerated growth of paid members by improving subscription process and shop affiliates.

Incremental increase in number of paid members

0

20,000

40,000

60,000

80,000

100,000

120,000

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY2011 FY2013FY2012

One time effect

One time effect

30-day freetrial campaign

Advertising

13

Sales trend

■ Sales of Advertising Business increased by16.2％ y/y in FY2013 Q3.■ Smartphone contributed to Ad business.

Breakdown by product

420480

390413

302

452485

620

0

100

200

300

400

500

600

700

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

564574

660620

485452

420480

390413

302354

414410373

FY2011FY2010 FY2012 FY2013

0

100

200

300

400

500

600

700

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

143131

109152

121117102126

7218

19 192163

209181

145105768788

81

61

228279341286218229242265228311

222

FY2011 FY2012

Tie-upsBannersNetwork Ads

FY2013

574564

660620

485420

452480

390413

302Smartphone64 million

PC128 million

(¥ million) (¥ million)

Case of Smartphone Ads

14

■ Combine to comfort for users and effective ads.

Result of the search pageFront page

Topics

Supermarket Special Offers

16

■ As Jan. 2014, Over 3,000 food retailers have registered to update their special offers in real time.■ More large supermarket chains are starting to use our system actively.

Special offers in real time

※1 From special offers information service “SHUFUMO”※2 From the research by New Supermarket Association of Japan

special offers10,000 retailers

real-time special offers3,000 retailers

20,000 Supermarkets in Japan ※2

※1

　“Cooking BBS” reached over 1 million visitors

17

■ Launched in Oct. 2012 and reached over 1 million visitors in Jan. 2014.

1million

0.7million

Oct. 2013 Jan. 2014Oct. 2012

Start

PC Smartphone

COOKPAD Goes Global

To become the world’s No.1 recipe service

“100 million users” is the next target.19

Major recipe services around the world

20

No.1 recipe services in U.S. and Europe

■ Several major recipe services are already available in U.S. & Europe and millions of people use for everyday cooking.■ There are several wellknown PC-based recipe services, but smartphone-based services are still immature.■ Many of PC-based services have been acquired by traditional media companies, and their business is mainly focusing on Advertising.

Country Recipe service No. of unique users Summary

U.S. Allrecipes.com 30millionFounded in 1997, “user generated” services. Meredith acquired in 2012 for $175 million.

Germany Chefkoch.de 13millionFounded in 1998, “user generated” services. Gruner+Jahr acquired in 2007.

France marmiton.org 8.4millionFounded in 1998, “user generated” services. aufeminin.com acquired in 2006.

U.K. Bbcgoodfood.com 8.0millionBBC publish recipes which are introduced on TV programs on their own site.

Spain 6.0millionFounded in 2006, “user generated” services. From 2014, one of COOKPAD group companies.

Italia Giallozafferano.it 4.3millionFounded in 2006, “user generated” services. Banzai Media acquired in 2009.

※1

※2

※1 From No.1 recipe services by country on SimilarWeb（http://www.similarweb.com/)※2 Reference to each web-sites

COOKPAD’s Core Value

21

Cookpad Goes GlobalTraditional Media Companies- “User Generated” contents

- Smartphone based services- High profit based on subscription-based services

- Celebrity contents- PC based services- Main business is advertising.

More than 80% of COOKPAD’s new paid members are from smartphone.Provide the best experience to search recipes on Smartphone for the paid members.

COOKPAD is focusing on

222006.4 2008.4 2010.4 2012.4 2014.1

1.631.45

1.2

0.97

0.75

0.530.35

0.230.14

COOKPAD’s registered recipes

（million）

To encourage users“What motivates recipe authors?”“How to attract more recipe authors?”“How to make recipes popular?”

1. “User Generated” 2. Mobile First 3. Subscription-Based

2006.4 2008.4 2010.4 2012.4 2014.1

26.31

14.06

（million）

COOKPAD’s monthly unique users

Mobile

PC

◆Acquired mobile first services- “allthecooks” Android Apps ranked No.1 for the recipe category on Google Play. Already released application for Google Glass.- “Mis Recetas” iOS Apps ranked No.1 in the Food & Beverage category for 17 Spanish speaking countries.

◆Success in JapanCOOKPAD is the largest mobile recipe service in the world with 26.31 million monthly unique users as in Jan. 2014.

Not focusing on creating contents for each country/region

(For example media, games etc)

Focusing on “Platform”to encourage users to post more recipes

No.1in global

2006.4 2008.4 2010.4 2012.4 2014.1

More than 1.2million

（million）

COOKPAD’s paid members

Paid membersincrease on Feature phones

◆Growing smartphone marketSmartphone users are rapidly increasing. Expansion of Application markets follows (App Store, Google Play).

◆The best way to “Search recipes”

Paid membersincrease on Smartphones

Same business model in global

23

Ex．Assuming monthly unique users in Spain would be above 20 million...

300yen × 20million users × 0.05 × 12months ＝ 3,600million yen/year

Premium Services BusinessAssuming 5% of unique users pay a monthly charge of 300yen...

Advertising Business (assuming only network ads)Assuming CPM and PV/user are almost equal between Spain and Japan...

0.1yen/PV × 25 PV/user × 15million users × 12months = 450million yen/year

0.02yen/PV × 50 PV/user × 20million users × 12months = 240million yen/year

(PC)

(Mobile)

Total 4,300million yen/year

Make everyday cooking fun

- 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.