FY2013 Financial ResultsJun, 2014

COOKPAD Inc.

Highlights of FY2013■ COOKPAD goes Global !

■ Change in the accounting system, J GAAP to IFRS in FY2015 !

■ Existing business grew well, Net sales increased by 30.3% y/y, Operating Income increased by 27.3 y/y (Non-consolidated basis) !

■ Paid members increased at an accelerated pace, growing to over 1,300,000 members. !

■ Smartphone contributed to Ad Business. 2

COOKPAD goes Global

3

40 million users

1million users

6 million users

0.5 million users

The largest “user-generated” recipe service in Spain

Indonesian recipe service acquired in 4th quoter

No.1 recipe app on Google Play USA

※1

※1 “Cooking and Recipes”category ranking in Spain by SimilarWeb（http://www.similarweb.com/） ※2 Recipe apps ranking on Google Play USA by App Annie（www.appannie.com/jp/） ※3 Number of users are monthly unique users at Dec. 2013 (allthecooks and mis recetas) and Apr. 2014 (Dapur Masak)

※2

From J GAAP to IFRS

4

!

!

■ Change the accounting period from April to December in FY2014. !

■ Change in the accounting system, J GAAP to IFRS from FY2015. !※ This change requires the amendment of the articles of incorporation. It will be approved on the annual meeting of stockholders on 24 July, 2014.

※

Consolidated Business Results

May1,2013～April30,2014

Major consolidated companies

6

Company Description of business Timing of acquisition

ALLTHECOOKS, LLCRecipe apps in English 3rd quarter

COOKPAD SPAIN, S.L.Recipe service in Spanish 3rd quarter

DAPUR MASAK PTE. LTD.Recipe service in Indnesian 4rd quarter

Company Description of business Timing of acquisition

Coach United Inc.Market place of private lessons 2nd quarter

International

Japan

Differences between consolidation/non-consolidation

7

Non-consolidated operating income

3,375 million yen

Goodwill amortization

144 million yen Other99 million yen

3,132 million yen

Consolidated operating income

　FY2012 Full year

（Non-consolidated）

FY2013 Full year

（Non-consolidated）

y/y

Net sales 4,982 6,494 +30.3%

Operating Income 2,644 3,375 +27.6%

Ordinary Income 2,701 3,275 +21.2%

Net income 1,616 2,046 +26.6%

（¥ million）

FY2013 Full year

（Consolidated）

6,572

3,132

3,147

1,866

Summary of income statement

8

※1 Started consolidated balance sheet from FY2013 Q2 and started consolidated income statement from FY2013 Q3. ※2 Differences between operating income and ordinary income are mainly from allowance for investment loss.

※2

※1

Operating income before goodwill amortization

2,644 3,375 +27.6% 3,277

※1

Cash Flows

9

（¥ million yen）

※　Breakdown of cash flow from investing activities 　　FY2012：Expenditure due to the fixed deposit　1,500million yen 　　FY2013：Expenditure due to the acquisition of stock and business　2,631 million yen 　　　　　 Refund from the fixed deposit　1,500 million yen

　

FY2012 (Non-consolidated)

FY2013 (Consolidated)

Cash flow from operating activities 1,874 1,924

Cash flow from investing activities -1,683 -1,320

Cash flow from financing activities -9 -123

Cash and cash equivalents at the end of

FY20134,167 4,691

※ ※

Dividend

10

■ Considering share splitting on 1 May, 2013, dividend per share increased from 5yen to 12yen.

FY2012 FY2013Dividend per Share（Before share splitting） 10yen ーDividend per Share（After share splitting） 5yen 12yen

Consolidated dividend ratio 10.1% 21.2%

Non-consolidated Business Results

May1,2013～April30,2014

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY2012 (Full year) FY2013 (Full year)

20

2,505

1,979

3,9683,001

Premium servicesAdvertisingOthers

（¥ million）

6,494+30.5%

Net Sales comparison to past year result

　Change Factors

Premium Services

Accelerated growth of paid members

AdvertisingContribution of Smartphone ads

!Growth of Banner and Tie-ups

Others Sales of recipe books

12

4,982

Net Sales trend by Business

13

（¥ million yen）

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

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

13

3621

705

564574660

620485

452420480

390413302354414410

373410362

294287

1,1141,019956877816775727681638582558542497451402358305237179129

Premium servicesAdvertisingOthers

732

865813 851 844

FY2011

972 9731,103

FY2012

1,119

1,259

1,4371,539

FY2010 FY2013

1,533

1,180

1,587

FY2009

716599

473417

1,834

0

500

1,000

1,500

2,000

2,500

3,000

3,500

FY2012 (Full year) FY2013 (Full year)

728

557208

53

155

110 449

335

1,5151,225

Personnel costsPaid-charge commissionsCloud-service usage feesPromotion feesOthers

SG&A comparison to past quarter result

14

（¥ million yen）　

Change Factors

Personnel costsGrowing number of employees

(128 in Apr. 2013 to 181in Apr. 2014

including 17 of new graduates)

Paid-charge commissions Increase in paid members

Cloud-service usage fees

Stable afterAWS migration in FY2011

Promotion fees Shop affiliates increased

Others Increase various costs due to service expansion

3,055

2,282

Personnel number trend

15

FY2013

（Personnel number）

0

50

100

150

200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q４FY2010 FY2011 FY2012

New Graduates 17

members

FY2009

56

7575

5769

62

9786

77

11211010210098

138132128

117

181

147

■ Started to hire new graduates for the sustainable organization.

SG&A trend

16

（¥ million yen）

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 Q4 Q1 Q2 Q3 Q４

192

179182

169150

132138135133129105116

220

937189

86

745582

65

70462613

20172

47

38363231

2625283428503130

27272731

292719

127

11210710395

8780726757515250

44403530

231713

449364359341365

292281285300265259251262203191174222

135128113

Personnel costsPaid-charge commissionsCloud-service usage feesPromotion feesOthers

327 330370

565

451 466482

535 522

FY2010 FY2011 FY2012

■ Increase in personnel costs & promotion fees

544 559

656 673

FY2013

733765

FY2009

882

370

263230228

Operating income trend

17

（¥ million）

FY2010 FY2011 FY2012

0

100

200

300

400

500

600

700

800

900

1,000

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

FY2013FY2009

178231

322 330

394

470 486

275

386

491 481

569 563

769

691

620

843

787810

935

Business Details - Users

18

The number of monthly users

0

5

10

15

20

25

30

35

40

45

Jul Oct Jan Apr Jul Oct Jan Apr

.44.43

.36

.31.1

1.071.17

1.43

1.482.19

2.553.45

4.28

9.018.14

7.54

6.676.53

5.764.97

3.83

17.7616.5614.2911.09.888.76.8

5.31

15.7315.0215.9514.8114.0613.8814.1712.69

PCSmartphone browsersSmartphone appsFeature phonesOthers

FY2012

(million）

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

29.4130.90

32.77 34.29

Smartphone users

26.78M

39.59

FY2013

41.340.430.36

0.100.31

44.04 million0.44

26.13

y/y +34.4%

More than 1.7 million recipes

19

（million）

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

Jul Oct Jan Apr Jul Oct Jan Apr

1.271.33

1.381.45

1.511.57

1.631.71

FY2012

Registerd recipes

FY2013

No.1 recipe site in Japan

20

■ “Which recipe site do you use most frequently?’’ - 90% of users answered “COOKPAD’’.

COOKPAD 90.3%

Kewpie 1.4%

Ajinomoto 1.3%

Kyounoryori.jp 2.2%

Rakuten Recipe 1.4%

Other 2.5%

<Investigation summary> Subject：”questionnaire about cooking” Method：Internet research（using monitors of MACROMILL Inc.) Region：Japan Target：both sexes aged 20～59 Number of valid answers：1,453samples（Female 1,245samples, Male 208samples） Period：11 Mar, 2014～12 Mar, 2014

Demographics of COOKPAD users

21

Male 13.6%

Female 86.4%

Gender Age groups (Female)

20-29 32.7%

-20 9.1%

50- 6.1%

30-39 33.1%

40-49 19.0%

※ The attribute data of registered users on COOKPAD for May. 2014

■ Used by the most of Japanese women in 20-40s

Premium Services Business

22

0

200

400

600

800

1,000

1,200

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

1,114

1,019956

877816

775727

681638

582558542497

451402

358305

237179

129

FY2011FY2010

Sales trend（¥ million）

Paid members

300,000

600,000

900,000

1,200,000

1,500,000

FY2012 FY2010 FY2011 FY2012

■ Growing to over 1,300,000 members

FY2013 FY2013FY2009 FY2009

0

30,000

60,000

90,000

120,000

150,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4FY2011 FY2013

363 thousand

200%

181 thousand

Comparison of the net increase

FY2013FY2012

Increase in consumption tax

One time effect

Number of paid members

23

Incremental increase in number of paid members

FY2012

One time effect

Temporary decreased due to the shift to smartphones

■ Net increase of paid members has doubled compared to the previous year. ■ The accelerated growth of paid members by improving subscription process and shop affiliates.

Advertising

24

420480

390413

302

452485

620

Sales trend（¥ million）

0

100

200

300

400

500

600

700

800

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

705

564574

660620

485452

420

480

390413

302

FY2011 FY2012 FY2013 FY2011 FY2012 FY2013

Breakdown by product（¥ million）

0

100

200

300

400

500

600

700

800

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q４

184

143131

109152

121117102

12672

18

19

266192

163

209

181

1451057687

88

81

61

254228279341

286218229242265228

311222

Tie-ups BannersNetwork Ads

574564

660620

485

420452

480

390413

302

705

64 million yen

174 million yen

Q3 Q4

FY2013

Focus on Smartphone ads

25

Gain customers other than Food and Beverage

Q1 Q2

Sales of smartphone ads

■ Smartphone contributed to Ad revenue from second half year

Future Strategy

By Apr. 2017

Ordinary income 10billion yen

Make cooking fun around the world

COOKPAD goes Global

“100 million users” is the next target in fast-paced.29

6 million users

1million users

40 million users

0.5million users

Reach to one billion people

English 330

Spanish 400

Indonesian 140

Japanese 120

1billionSource: http://www.ethnologue.com/

Population by mother tongue(millions)

Total

（English version）

30

Major recipe services around the world

31

Country Recipe service No. of unique users Summary

Japan 44million Founded in 1997, “user generated” service. Listed on Tokyo Stock Exchange in Jul. 2009

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

Germany Chefkoch.de 15million Founded in 1998, “user generated” services. Gruner+Jahr acquired in 2007.

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

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

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

Italia Giallozafferano.it 4.3million Founded 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

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

Next challenge

“Infrastructure” for all food-related things

33

“Infrastructure” for all food-related things

Shopping

Healthcare

Education/Entertainment

Household budget

Beauty

More than 1.7 million recipes

Over 40 million users

Everyday Cooking

“Infrastructure”

Enhance users’ Eating and Living Habits

34

“COOKPAD News” ～Over 1,000 news～

“Cooking BBS” ～1.6 million users in Apr. 2014～

■ Invest on owned media to increase the reach

Supermarket Special Offers

35

.5

1.0

1.5

2.0

2.5

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

Registered users

Apr. 2014

Over 2million

FY2013

■ Deliver special offers from your nearby supermarkets

（million）

Number of registered supermarkets

36

■ Many large supermarket chains are using our system actively.

※2

※1

20,000 Supermarkets in Japan

special offers 10,000 retailers

real-time special offers

4,500 retailers

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

Promotion using special offers and recipes

37（“Shukan Toyo Keizai”26 Apr, 2014）（Leaflet with special offers and recipes）

“Healthy recipes”

38

■ Supporting prevention of adult diseases by healthy recipes and the meal planning !■ Over 3,000 recipes edited by managerial dietician !■ “Meal planning tool” to support healthier eating !

（Meal planning tool）

“COOKPAD cooking school”

39

■ COOKPAD branded cooking school by the certified teachers !■ Various lessons by the different types of cuisines and teachers !

FY2014 Forecast

40

!

!

■ Change the accounting period from April to December !

■ Both sales and operating income will increase y/y (compared to 8 months from 1 May, 2013 to 31 Dec, 2013) !

■ Consolidated dividend ratio 20% !

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.