Cookpad Inc. · Cookpad Inc. Consolidated Earnings Results for the Fiscal Year ended December 31,...
Transcript of Cookpad Inc. · Cookpad Inc. Consolidated Earnings Results for the Fiscal Year ended December 31,...
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Cookpad Inc.
Consolidated Earnings Results for the Fiscal Year ended December 31, 2014
[Japanese GAAP] February 6, 2015
Stock listed: Tokyo Stock Exchange
Securities code: 2193
URL: http://info.cookpad.com/en
Representative: Yoshiteru Akita, CEO
For further information please contact: Jun Kanma, CFO
Tel: +81-3-6368-1000
Scheduled dates
Annual shareholder’s meeting: March 26, 2015
Dividend payout: March 27, 2015
Filing of statutory financial report March 27, 2015
Supplementary materials for earnings results: Yes
Fiscal year-end earnings results briefing: Yes (for institutional investors)
1. Consolidated Results for the Fiscal year ended December 31, 2014 (May 1, 2014 - December 31, 2014)
(Amounts rounded down to the nearest million)
(1) Operational Results (% as year-on-year changes)
Net Sales Operating Income Ordinary Income Net Income
Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen %
December 31, 2014 6,702 - 2,679 - 2,645 - 1,523 -
April 30, 2014 6,572 - 3,132 - 3,147 - 1,868 -
(Note) Comprehensive income Fiscal year ended December 31, 2014: ¥1,795 million ( - %)
Fiscal year ended April 30, 2014: ¥1,862 million ( - %)
EPS Diluted EPS ROE Ordinary income
to total assets Operating income
to net sales
Fiscal year ended Yen Yen % % %
December 31, 2014 45.57 44.93 11.8 17.9 40.0
April 30, 2014 56.62 55.92 23.6 32.6 47.7
(References)
Equity in earnings of non-consolidated subsidiaries and affiliates
Fiscal year ended December 31, 2014: -
Fiscal year ended April 30, 2014: -
Operating income before goodwill amortization
Fiscal year ended December 31, 2014: ¥2,989 million ( - %)
Fiscal year ended April 30, 2014: ¥3,277 million ( - %)
For the definition of operating income before goodwill amortization, refer to 1. (1) Analysis of Operating Results on page 2 in the
Appendix.
(Notes)
1. Due to the fiscal year-end change from April to December, the year ended December 31, 2014 refers to eight months from May
1, 2014 to December 31, 2014, thus % changes are not provided.
2. % changes for the year ended April 30, 2014 are not provided, since the consolidation started during the period and no
corresponding data is available prior to the period. ROE and ratio of ordinary income to total assets for the first consolidation year
were calculated using equity and assets as of the end of the year, respectively.
(2) Financial Position
Total Assets Net Assets Equity Ratio BPS
Millions of yen Millions of yen % yen
As of December 31, 2014 19,984 18,005 89.5 502.29
As of April 30, 2014 9,648 7,943 82.0 239.36
(Reference) Total equity: As of December 31, 2014: ¥17,878 million
As of April 30, 2014: ¥7,916 million
(3) Cash Flows
Cash flows from
operating activities
Cash flows from
investing activities
Cash flows from
financing activities
Cash and cash equivalents
at end of period
Fiscal year ended Millions of yen Millions of yen Millions of yen Millions of yen
December 31, 2014 1,166 (1,016) 8,201 13,189
April 30, 2014 1,924 (1,320) (123) 4,691
2. Dividends Dividends per Share Total dividends
paid (full year)
Payout ratio (consolidated)
Dividends to net assets
(consolidated) Q1 Q2 Q3 Year-end Total
Fiscal year ended Yen Yen Yen Yen Yen Millions of yen % %
April 30, 2014 - 0.00 - 12.00 12.00 396 21.2 5.0
December 31, 2014 - 0.00 - 12.00 12.00 427 26.3 3.2
Year ending December 31,
2015 (Forecast) - - - - - -
(Note) Dividends for the year ending December 31, 2015: TBD
3. Earnings Forecast for the Fiscal Year ending December 31, 2015 Effective the fiscal year ending December 31, 2015, the Company will voluntary adopt the International Financial Reporting
Standards (IFRS) instead of Japanese Generally Accepted Accounting Principles (JGAAP). For the year 2015, net sales and income
before taxes are projected to be higher than the results for the corresponding period from January 1, 2014 to December 31, 2014.
*Notes (1) Significant changes in scope of consolidation: No
(Note) SELECTURE, inc. and two other companies are included in consolidation starting from the year ended December 31,
2014, neither of which falls under a change in specific subsidiary.
(2) Changes in accounting policies, changes in accounting estimates, and restatements: 1) Changes due to revisions to accounting principles, etc.: No
2) Changes in accounting policies other than 1): No
3) Changes in accounting estimates: No
4) Restatements: No
(3) Number of shares outstanding (common stocks)
1) Number of shares outstanding (including treasury shares)
As of Dec. 31, 2014: 35,594,800 shares
As of Apr. 30, 2014: 33,074,800 shares
2) Number of treasury shares
As of Dec. 31, 2014: 1,208 shares
As of Apr. 30, 2014: 1,208 shares
3) Number of average shares during the period
Fiscal year ended Dec. 31. 2014: 33,438,050 shares
Fiscal year ended Apr. 30. 2014: 33,000,494 shares
(Reference)
1. Non-consolidated Results for the Fiscal year ended December 31, 2014 (May 1, 2014 - December 31, 2014) (1) Non-consolidated Operational Results
(% as year-on-year changes)
Net Sales Operating Income Ordinary Income Net Income
Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen %
December 31, 2014 5,993 - 3,192 - 3,048 - 1,965 -
April 30, 2014 6,494 30.3 3,375 27.6 3,275 21.2 2,046 26.6
EPS Diluted EPS
Fiscal year ended Yen Yen
December 31, 2014 58.77 57.95
April 30, 2014 62.00 61.23
(Note) Due to the fiscal year-end change from April to December, the year ended December 31, 2014 refers to eight months
from May 1, 2014 to December 31, 2014, thus % changes are not provided.
(2) Financial Position
Total Assets Net Assets Equity Ratio BPS
Millions of yen Millions of yen % yen
As of December 31, 2014 19,873 18,429 92.4 516.06
As of April 30, 2014 9,580 8,159 84.9 245.89
(Reference) Total equity: As of December 31, 2014: ¥18,368 million
As of April 30, 2014: ¥8,132 million
* Audit Procedures
As of the release date of this report, an audit of the consolidated financial statements in accordance with Financial Instruments
and Exchange Act of Japan is underway.
*Appropriate Use of Earnings Results and Other Special Notes (Notes on forward-looking statements)
The above forecasts, which constitute forward-looking statements, are based on information available to the Company and the
assumptions of management as of the release date of this document. Actual results may differ materially from the above forecasts
due to a range of factors.
For the assumptions underlying the forecasts herein and other information on the use of earnings forecasts, refer to Outlook for
Year 2015 on page 4 in the Appendix.
1
Appendix
1. Analysis of Operating Results and Financial Position ....................................................................................... 2
(1) Analysis of Operating Results ....................................................................................................................... 2
(2) Analysis of Financial Position ....................................................................................................................... 4
(3) Basic Policy for Profit Distribution and Dividends ....................................................................................... 5
2. Management Policy ........................................................................................................................................... 5
(1) The Company’s Management Policy ............................................................................................................ 5
(2) Management Index ........................................................................................................................................ 5
(3) Mid to Long-term Management Strategy ...................................................................................................... 5
(4) Issues to Be Addressed .................................................................................................................................. 5
3. Consolidated Financial Statements .................................................................................................................... 6
(1) Consolidated Balance Sheets ......................................................................................................................... 6
(2) Consolidated Statements of Income and Comprehensive Income ................................................................ 8
(3) Consolidated Statements of Changes in Net Assets .................................................................................... 10
(4) Consolidated Statements of Cash Flow ....................................................................................................... 12
(5) Notes to Consolidated Financial Statements ............................................................................................... 13
(Notes on the Going Concern Assumption) ................................................................................................. 13
(Segment Information) ................................................................................................................................ 13
(Per Share Data)........................................................................................................................................... 16
(Important Subsequent Events).................................................................................................................... 16
2
1. Analysis of Operating Results and Financial Position
(1) Analysis of Operating Results A comparative analysis with the previous year is not provided, since the fiscal year ended December 31, 2014
refers to eight months from May 1, 2014 to December 31, 2014 due to the year-end change.
“Cookpad” is the Company’s core business which allows users to post and search cooking recipes online. In line
with the corporate mission to “make everyday cooking fun,” the company has been expanding such business.
During the fiscal year (for eight months), the Company continued global expansion of its recipe services as well
as development of new businesses in the domestic market, so that it can elevate “Cookpad” to a platform for
living infrastructure around food.
With regard to the global expansion, the company has acquired overseas recipe services in the previous year such
as “Mis Recetas” provided in Spanish, “Dapur Masak” in Bahasa Indonesia, and “allthecooks” in English. To
accelerate their growth, the company advanced the global platform development to leverage strengths of each
service including Japan. All the service names and logos are now unified under “Cookpad” brand, and their recipe
sites have incorporated the site design of “Cookpad” which optimizes each with more user-friendly layout. The
Company also shared technical know-how with them for the operations of large-scale services such as processing
massive traffic to “Cookpad.” As a result, the number of monthly users reached 7.6 million in Spanish-speaking
market, 1.8 million in Bahasa Indonesia, and 1 million in English as of the end of December 2014.
In this third quarter, we entered into a share purchase agreement for “Shahiya,” a leading recipe service provided
in Arabic, to make it a subsidiary, which successfully joined the Cookpad Group in January 2015. The Group is
now enabled to provide the services with approximately 1.2 billion people around the world including Japanese,
English, Spanish, Arabic, and Indonesian-speaking countries. To further boost the user base, the Company will
continue to tap into the know-how of “Cookpad” and generate synergy among the Group.
In the domestic market, the monthly users of “Cookpad” continued to show steady growth, totaling 50.42 million
as of the end of December 2014. In particular, the number of users accessing from smartphones rose sharply and
reached 34.14 million (+44.1%) including tablet app users. While Cookpad services are used in various daily-life
situations, that figure confirms that such services are highly compatible with smartphones and tablet devices as
they allow users to access Cookpad whenever they like
It is also true that it is a variety of recipes posted by a large number of users that creates value for “Cookpad.” As
a result of the continuous improvement to make it more fun for users to post their recipes, the cumulative number
of posted recipes exceeded 1.9 million as of the end of December 2014.
Moreover, the Company stayed focused on new business to develop “Cookpad” from a search engine of recipes
into a platform of living infrastructure around food. For example, “Tokubai Joho” (grocery deals) provides users
with information on their neighbor supermarket and grocery deals, and users can browse it from “Cookpad” site.
The number of registered stores to offer such information has reached approximately 10,000, and the registered
users as well keep increasing steadily to exceed 3.3 million as of the end of December 2014.
In the second quarter, SELECTURE, inc., which operates online store “Angers” for clothing, kitchenware and
sundry goods, became a consolidated subsidiary. Through developing such e-commerce business, “Cookpad”
aims to be a place where users enjoy shopping ingredients, kitchenware, and everyday things and bring more fun
into their everyday cooking and dining.
As a result, the consolidated fiscal year results are as follows.
Net sales 6,702 million yen
Operating income before goodwill amortization 2,989 million yen
Operating income 2,679 million yen
Ordinary income 2,645 million yen
Net income 1,523 million yen
Operating income before goodwill amortization refers to operating income before goodwill amortization of 309
million yen generated by acquisitions and business transfers.
Special notes regarding the operating results are below:
a. Net sales were 6,702 million yen. In the Premium Services business, Premium Memberships have steadily
increased to more than 1.5 million. In the Advertising business, smartphone ads continued to grow sharply.
b. Operating income was 2,679 million yen, and operating income before goodwill amortization was 2,989
3
million yen.
Net sales for each segment are as follows.
(Millions of yen)
Reportable Segment For fiscal year
ended December 31, 2014
Internet/Media 6,163
Premium Services 3,367
Advertising 2,485
Other 310
EC 538
Total 6,702
a. Internet/Media
Net sales from the Internet/Media segment were 6,163 million yen, and operating income was 2,626 million yen.
(Premium Services)
The Premium Services segment offers a fee-based service for users to gain additional features or functions of
Cookpad. The membership continued to rise steadily, exceeding 1.5 million as of December 31, 2014 in line with
the increase in number of smartphone users. As a result, the segment net sales reached 3,367 million yen.
During the fiscal year, the Segment conducted trend analysis on daily use of the services to find more values,
while seeing that interest in food getting even more diversified as users increase. It also improved the strategies to
attract new members to Premium Service and ran promotional campaigns through mobile phone shops, resulting
in a steady increase in Premium Memberships.
The Segment will continue to boost Premium Memberships by adding new services and raising their awareness.
(Advertising)
Net sales from the Advertising segment rose to 2,485 million yen. Smartphone ads began contributing to the sales
in the previous year, and they showed continuous growth during the year.
The Segment will continue to expand the business with core advertising products as below, which enable clients
to widely promote their brand and products on both PCs and smartphones.
Product name of ads Content
Display ads / Banners Display ads directly sold to advertisers or
advertising agencies
Tie-up ads Tie-up campaign ads directly sold to
advertisers or advertising agencies
Network ads Ads automatically sent via ad network
provided by advertising distributors.
b. EC
SELECTURE, inc., which became a consolidated subsidiary in the second quarter, operates online store “Angers”
for clothing, kitchenware and sundry goods. For the year ended December 31, 2014, net sales from the EC
segment were 538 million yen, and operating income was 52 million yen.
4
(Outlook for Year 2015)
The Company plans to voluntarily adopt International Financial Reporting Standards (IFRS) in place of the
existing Japanese Generally Accepted Accounting Principles (JGAAP) from fiscal 2015.
For the fiscal year ending December 31, 2015, both revenue and income before taxes are projected to exceed
the cumulative amounts generated from January 1, 2014 through December 31, 2014. The Company will strive for
the continued growth over medium-term by attracting the wider range of users to Cookpad services and boosting
Premium Services Memberships.
(2) Analysis of Financial Position
1) Assets, Liabilities, and Net Assets
(Assets)
As of December 31, 2014, total assets were 19,984 million yen, up 10,335 million yen as compared with the
previous fiscal year-end.
This was primarily due to an increase of 8,498 million yen in cash and deposits stemming from the issuance of
new shares, and an increase of 321 million yen in the investment securities from the purchase of investment
securities.
(Liabilities)
Liabilities were 1,978 million yen, up by 273 million yen as compared with the previous fiscal year-end. The key
factor was an increase of 131 million yen in non-current liabilities as compared with the previous fiscal year-end
owing to the booking of asset retirement obligations.
(Net Assets)
Net assets were 18,005 million yen, up by 10,062 million yen as compared with the previous fiscal year-end,
largely due to an increase in capital stock and capital surplus, each of which rose by 4,333 million yen,
accompanying the issuance of new shares and other factors.
2) Cash Flows
As of December 31, 2014, cash and cash equivalents (“Funds”) balance was 13,189 million yen, an increase of
8,498 million yen as compared with the previous fiscal year-end, primarily due to the following factors.
(Cash flow from operating activities)
Funds provided by operating activities totaled 1,166 million yen. While income before income taxes and minority
interests is 2,658 million yen, there was payment of income tax of 1,485 million yen.
(Cash flow from investing activities)
Funds used in investing activities totaled 1,016 million yen. This is primarily due to 180 million yen for
investments in affiliated companies, 249 million yen for investments in subsidiaries resulting in change in scope
of consolidation, and 321 million yen for the purchase of investment securities.
(Cash flow from financing activities)
Funds provided by financing activities totaled 8,201 million yen, attributable to the proceeds of 8,619 million yen
from the issuance of new shares and payments of cash dividend totaling 396 million yen.
(Reference) Trend of Related Indices
As of April 30,2014 As of December 31, 2014
Total equity ratio (%) 82.0 89.5
Total Equity ratio on a market value basis (%) 701.0 739.1
Interest-bearing debt to cash flow ratio (%) 0.8 0.1
Interest coverage ratio (times) 11,755.0 3,723.2
(Notes)
1. Based on consolidated financial results.
2. The market value is based on the number of shares outstanding excluding treasury shares.
3. Cash flow in the calculation refers to operating cash flow.
4. No data available prior to the above, as the consolidated reporting started in the year ended April 30, 2014.
5
(3) Basic Policy for Profit Distribution and Dividends The Company puts priority on distribution of profit to shareholders, and the basic policy for the allocation of
retained earnings is to distribute profit in accordance with our business performance. The company is to flexibly
examine the appropriate way to return profit in relation to the operating results, financial position, outlook, and
the adequate reserves to achieve the long-term business expansion.
For fiscal year ended December 31, 2014, the Board of Directors declared a year-end dividend of 12 yen per
share (26.3% payout ratio on consolidated basis).
The year-end dividend for next term or fiscal 2015 is to be determined after considering such factors as
operational progress and business environment, with an indication of 25% payout ratio on consolidated basis. The
Company will announce its dividend for fiscal 2015 as soon as it is determined.
2. Management Policy
(1) The Company’s Management Policy In line with the corporate mission to “make everyday cooking fun,” the Company aims to raise its corporate value
by bringing more satisfaction to the users and customers, through which the Company strives to elevate “Cookpad”
to a platform of living infrastructure around food, while having the global market of recipe services in view.
(2) Objectives and Management Index
The number of users is an important index for the management, as it reflects user satisfaction with the services
which the Company operates. The Company believes that achieving the higher satisfaction will further enhance
the corporate value. For the continued expansion, the Company also uses sales growth rates, operating profit
margins, ordinary income growth rates and other financial indices to measure its growth and efficiency.
(3) Mid to Long-term Management Strategy Regarding the global strategy, the Company aims to globally expand its recipe services and make it possible for
people around the world to enjoy local cuisine of any country in the world.
As for the domestic strategy, the Company is committed to increase not only the recipe users of “Cookpad,” but
the wider range of services as part of living infrastructure to attract new users and enhance the user satisfaction. In
line with such strategy, the Company will proactively launch new services and businesses to boost the revenue
generation and achieve the long-term sustainable growth.
(4) Issues to Be Addressed
Issues the Company should address are as follows:
1) Globalization of the recipe service business
The Company aims to provide its recipe services with people around the world and addresses the following for its
achievement:
-To gather high-quality recipes, it is important to create recipe communities that fit in well with each market and
keep it vitalized. Hence, the Company needs to develop a system to make it more fun for people to post their
recipes and raise awareness of such communities.
-The Company also needs to build revenue base abroad similar to Cookpad in Japan by setting up Premium
Services and Advertising businesses. Therefore, the Company will strive for a fee-based service meeting the
expectations of overseas users and an advertising model primarily based on network ads.
2) New services and businesses
The Company is committed to develop new services and businesses, aiming to provide not only recipes but living
infrastructure around food with Cookpad users and to enrich their everyday life. The Company will also strive for
the services in areas other than food and continue to seek the way it can meet the user needs.
6
3. Consolidated Financial Statements (1) Consolidated Balance Sheets
(Thousands of yen)
As of April 30, 2014 As of December 31, 2014
ASSETS
Current assets
Cash and deposits 4,691,335 13,189,802
Notes and accounts receivable - trade 1,343,918 2,048,863
Deferred tax assets 123,748 119,894
Other 126,895 283,053
Allowance for doubtful accounts (3,028) (4,805)
Total current assets 6,282,869 15,636,809
Non-current assets
Property, plant and equipment
Buildings 69,071 384,295
Accumulated depreciation (66,749) (29,038)
Buildings, net 2,322 355,256
Tools, furniture and fixtures 99,461 111,466
Accumulated depreciation (64,817) (67,423)
Tools, furniture and fixtures, net 34,644 44,042
Total property, plant and equipment 36,966 399,299
Intangible assets
Goodwill 2,541,980 2,653,569
Other 63,621 108,948
Total intangible assets 2,605,602 2,762,518
Investments and other assets
Investment securities 42,000 363,883
Investments in subsidiaries and associates 178,253 343,445
Guarantee deposits 227,230 179,854
Deferred tax assets 254,756 294,148
Other 21,119 4,548
Total investments and other assets 723,360 1,185,879
Total non-current assets 3,365,929 4,347,697
Total assets 9,648,798 19,984,506
LIABILITIES
Current liabilities
Accounts payable - trade 21,708 107,620
Accounts payable-other 678,841 808,872
Income taxes payable 846,556 565,970
Other 146,102 352,486
Total current liabilities 1,693,208 1,834,950
Non-current liabilities
Long-term debt 12,092 7,896
Asset retirement obligations - 135,973
Total non-current liabilities 12,092 143,869
Total liabilities 1,705,300 1,978,820
7
(Thousands of yen)
As of April 30, 2014 As of December 31, 2014
NET ASSETS
Shareholders’ equity
Capital stock 871,425 5,205,095
Capital surplus 870,850 5,204,520
Retained earnings 6,182,035 7,212,613
Treasury shares (1,185) (1,185)
Total shareholders' equity 7,923,124 17,621,044
Accumulated other comprehensive income
Foreign currency translation adjustment (6,366) 257,584
Total accumulated other comprehensive income (6,366) 257,584
Stock warrants 26,740 61,474
Minority interests 65,582
Total net assets 7,943,498 18,005,686
Total liabilities and net assets 9,648,798 19,984,506
8
(2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income
(Thousands of yen)
Fiscal Year ended
April 30, 2014
(May 1, 2013 to
Apr. 30, 2014)
Fiscal Year ended
December 31, 2014
(8 months from May 1 to
Dec. 31, 2014)
Net sales 6,572,139 6,702,015
Cost of sales 93,481 409,083
Gross profit 6,478,657 6,292,931
Selling, general and administrative expenses 3,346,190 3,613,685
Operating income 3,132,467 2,679,246
Non-operating income
Interest income 4,930 304
Foreign exchange gains 4,779 9,220
Subsidy income 3,000 -
Other 3,902 2,929
Total non-operating income 16,612 12,455
Non-operating expenses
Interest expenses 163 313
Share issuance cost - 43,401
Other 972 2,056
Total non-operating expenses 1,136 45,771
Ordinary income 3,147,943 2,645,929
Extraordinary gains
Gain on reversal of stock warrants 14,598 -
Gain on transfer of business 8,000 -
Gain on step acquisitions 11,084 -
Gain on sales of non-current assets - 546
Gain on sales of shares of subsidiaries and associates - 13,557
Total extraordinary gains 33,682 14,104
Extraordinary losses
Loss on sales of non-current assets 461 1,335
Loss on valuation of shares of subsidiaries and
associates 43,789 -
Total extraordinary losses 44,250 1,335
Income before income taxes and minority interests 3,137,375 2,658,698
Income taxes - current 1,369,548 1,187,153
Income taxes - deferred (100,955) (60,375)
Total income taxes 1,268,593 1,126,778
Income before minority interests 1,868,782 1,531,920
Minority interests in income - 8,146
Net income 1,868,782 1,523,774
9
Consolidated Statement of Comprehensive Income (Thousands of yen)
Fiscal Year ended
April 30, 2014
(May. 1, 2013 to
Apr. 30, 2014)
Fiscal Year ended
December 31, 2014
(8 months from May 1 to
Dec. 31, 2014)
Income before minority interest 1,868,782 1,531,920
Other comprehensive incomes
Foreign currency translation adjustment (6,366) 263,951
Total other comprehensive income (6,366) 263,951
Comprehensive income 1,862,415 1,795,872
Comprehensive income attributable to:
Owners of parent 1,862,415 1,787,725
Minority interests - 8,146
10
(3) Consolidated Statements of Changes in Net Assets
Fiscal Year ended April 30, 2014 (May 1, 2013 to April 30, 2014)
(Thousands of yen)
Shareholders’ equity
Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’
equity
As of May 1, 2013 847,440 846,865 4,509,800 (1,185) 6,202,919
Changes during the period
Issuance of new shares 23,985 23,985 47,970
Cash dividends paid (164,417) (164,417)
Net income 1,868,782 1,868,782
Changes in scope of consolidation
(32,129) (32,129)
Net changes other than shareholders’ equity
Total changes during the period
23,985 23,985 1,672,235 - 1,720,205
As of April 30, 2014 871,425 870,850 6,182,035 (1,185) 7,923,124
Accumulated other
comprehensive income Stock warrants Total net assets
Foreign currency
translation adjustment
As of May 1, 2013 - 36,883 6,239,802
Changes during the period
Issuance of new shares 47,970
Cash dividends paid (164,417)
Net income 1,868,782
Changes in scope of consolidation
(32,129)
Net changes other than shareholders’ equity
(6,366) (10,142) (16,509)
Total changes during the period
(6,366) (10,142) 1,703,696
As of April 30, 2014 (6,366) 26,740 7,943,498
11
Fiscal Year ended December 31, 2014 (May 1, 2014 to December 31, 2014)
(Thousands of yen)
Shareholders’ equity
Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’
equity
As of May 1, 2014 871,425 870,850 6,182,035 (1,185) 7,923,124
Changes during the period
Issuance of new shares 4,333,670 4,333,670 8,667,341
Cash dividends paid (396,883) (396,883)
Net income 1,523,774 1,523,774
Changes in scope of consolidation
(30,121) (30,121)
Increase/decrease resulting from FY-end change by consolidated subsidiaries
(66,191) (66,191)
Net changes other than shareholders’ equity
Total changes during the period
4,333,670 4,333,670 1,030,578 - 9,697,920
As of December 31, 2014 5,205,095 5,204,520 7,212,613 (1,185) 17,621,044
Accumulated other comprehensive income
Stock warrants Minority interests Total net assets Foreign currency
translation adjustment
As of May 1, 2014 (6,366) 26,740 - 7,943,498
Changes during the period
Issuance of new shares 8,667,341
Cash dividends paid (396,883)
Net income 1,523,774
Changes in scope of consolidation
(30,121)
Decrease resulting from FY-end change by consolidated subsidiaries
(66,191)
Net changes other than shareholders’ equity
263,951 34,734 65,582 364,268
Total changes during the period
263,951 34,734 65,582 10,062,188
As of December 31, 2014 257,584 61,474 65,582 18,005,686
12
(4) Consolidated Statements of Cash Flow (Thousands of yen)
Fiscal Year ended
Apr. 30, 2014
(May 1, 2013 to Apr. 30,
2014)
Fiscal Year ended
December 31, 2014
(8 months from May 1 to
Dec. 31, 2014)
Cash flows from operating activities
Income before income taxes and minority interests 3,137,375 2,658,698
Depreciation 25,289 47,194
Amortization of goodwill 144,692 309,923
Loss (gain) on step acquisitions (11,084) -
Increase (decrease) in allowance for doubtful accounts 443 1,060
Interest and dividend income (4,930) (304)
Interest expenses 163 313
Foreign exchange losses (gains) (5,810) (16,308)
Stock issuance cost - 43,401
Gain on reversal of stock warrants (14,598) -
Loss (gain) on sales and retirement of non-current assets 461 788
Gain on sales of shares of subsidiaries and associates - (13,557)
Loss on valuation of shares of subsidiaries and associates 43,789 -
Decrease (increase) in notes and accounts receivable - trade (263,077) (627,509)
Increase (decrease) in notes and accounts payable - trade 12,427 32,900
Decrease (increase) in other assets 49,598 18,747
Increase (decrease) in other liabilities 102,138 196,721
Subtotal 3,216,880 2,652,069
Interest and dividend income received 15,369 304
Interest expenses paid (163) (313)
Income taxes paid (1,307,265) (1,485,713)
Net cash provided by (used in ) operating activities 1,924,819 1,166,347
Cash flows from investing activities
Withdrawal of time deposits 1,500,000 -
Purchase of property, plant and equipment (28,440) (256,425)
Purchase of intangible assets (12,797) (53,498)
Purchase of shares of subsidiaries and associates (214,346) (180,000)
Sales of shares of subsidiaries and associates - 18,000
Purchase of investment securities - (321,873)
Purchase of shares of subsidiaries resulting in change in scope
of consolidation (1,403,041) (249,644)
Payments of short-term loans receivable - (30,000)
Payments for transfer of business (1,014,521) -
Payments for guarantee deposits (147,573) (1,147)
Collection of guarantee deposits - 57,406
Other 158 770
Net cash provided by (used in) investing activities (1,320,562) (1,016,411)
Cash flows from financing activities
Increase (decrease) in short-term debt - (45,000)
Repayments of long-term debt (2,400) (8,200)
Issuance of common shares 43,523 8,619,460
Proceeds from issuance of stock warrants - 32,092
Cash dividends paid (164,417) (396,883)
Net cash provided by (used for) financing activities (123,294) 8,201,469
Effect of exchange rate change on cash and cash equivalents (1,395) 181,559
Net increase (decrease) in cash and cash equivalents 479,566 8,532,965
Cash and cash equivalents at beginning of period 4,167,841 4,691,335
Increase (decrease) in cash and cash equivalents resulting from
change in scope of consolidation 43,926 13,933
Increase (decrease) in cash and cash equivalent resulting from
FY-end change by consolidated subsidiaries - (48,431)
Cash and cash equivalents at end of period 4,691,335 13,189,802
13
(5) Notes to Consolidated Financial Statements
(Notes on the Going Concern Assumption) N/A
(Segment Information)
1. Overview of reportable segments
A reportable segment is a distinguishable component for the company for which separate financial information
is available. For such a component, the Board of Directors evaluates its resource allocation and performance on
regular basis.
The Company has business divisions and subsidiaries by products and services, and each of them follows a
comprehensive strategy for both domestic and global markets according to the products and services.
Therefore, the segmentation by products and services is applicable, and there are a couple of reportable
segments in the Company, namely “Internet/Media” and “EC.”
“Internet/Media” segment primarily provides recipe services through “Cookpad” which allows users to post
and search cooking recipes. “EC” segment operates “Angers,” an online home & kitchen store.
Effective the fiscal year ended December 31, 2014, “EC” was added as a new segment after the acquisition of
SELECTURE, inc., which operates EC business and became a consolidated subsidiary. Segment information
for the previous year ended April 30, 2014 was not provided because of single segment.
2. Calculation of net sales, income and loss and other amounts by reportable segment
Segment income is based on operating income. Assets and liabilities are not allocated to the segments.
3. Net sales, income and loss and other amounts by reportable segment
Fiscal Year ended April 30, 2014 (May 1, 2013 to April 30, 2014)
N/A
Fiscal Year ended December 31, 2014 (May 1, 2014 to December 31, 2014)
(Thousands of yen)
Reportable segment
Adjustment Total Internet/Media EC Total
Net sales
Outside 6,163,483 538,531 6,702,015 - 6,702,015
Intersegment or transfer - - - - -
Total 6,163,483 538,531 6,702,015 - 6,702,015
Segment income 2,626,315 52,930 2,679,246 - 2,679,246
Other Depreciation
46,361 833 47,194 - 47,194
Goodwill amortization 295,672 14,251 309,923 - 309,923
14
[Related Information]
Fiscal Year ended April 30, 2014 (May 1, 2013 to April 30, 2014)
1. Information by product and service
Information is omitted here because net sales of single product/service to outside customers exceed 90% of
the total net sales.
2. Information by geographic area
(1) Net Sales
Information is omitted here because net sales to external customers in Japan exceed 90% of the total net
sales.
(2) Property, plant and equipment
Information is omitted here because the amount of property, plant and equipment held in Japan exceed 90%
of the total.
3. Information by major customer
(Thousands of yen)
Name Net sales
NTT DOCOMO, Inc. 1,768,781
KDDI Corporation 799,312
Fiscal Year ended December 31, 2014 (May 1, 2014 to December 31, 2014)
1. Information by product and service
Information is omitted here because net sales of single product/service to outside customers exceed 90% of
the total net sales.
2. Information by geographic area
(1) Net Sales
Information is omitted here because net sales to external customers in Japan exceed 90% of the total net
sales.
(2) Property, plant and equipment
Information is omitted here because the amount of property, plant and equipment held in Japan exceed 90%
of the total.
3. Information by major customer
(Thousands of yen)
Name Net sales
NTT DOCOMO, Inc. 1,441,067
15
[Impairment loss on non-current assets by reportable segment]
Fiscal Year ended April 30, 2014 (May 1, 2013 to April 30, 2014)
N/A
Fiscal Year ended December 31, 2014 (May 1, 2014 to December 31, 2014)
N/A
[Amortization and unamortized balance of goodwill by reportable segment]
Fiscal Year ended April 30, 2014 (May 1, 2013 to April 30, 2014)
Segment information is omitted here because of single segment.
Fiscal Year ended December 31, 2014 (May 1, 2014 to December 31, 2014)
(Thousands of yen)
Internet/Media EC Corporate/ Elimination
Total
Amortized 295,672 14,251 - 309,923
Unamortized balance 2,325,788 327,781 - 2,653,569
[Gain from negative goodwill by reportable segment]
Fiscal Year ended April 30, 2014 (May 1, 2013 to April 30, 2014)
N/A
Fiscal Year ended December 31, 2014 (May 1, 2014 to December 31, 2014)
N/A
16
(Per Share Data)
Fiscal Year ended
April 30, 2014
(May 1, 2013 to Apr. 30, 2014)
Fiscal Year ended
December 31, 2014
(May 1, 2014 to Dec. 31, 2014)
BPS 239.36 yen 502.29 yen
EPS 56.62 yen 45.57 yen
Diluted EPS 55.92 yen 44.93 yen
(Note) Calculation base for EPS and Diluted EPS are as follows:
Fiscal Year ended
April 30, 2014 (May 1, 2013 to Apr. 30,
2014)
Fiscal Year ended
December 31, 2014 (May 1, 2014 to Dec. 31,
2014)
EPS
Net Income (thousands of yen) 1,868,782 1,523,774
Amount not attributable to common stockholders (thousands of yen)
- -
Net income attributable to common stock (thousands of yen)
1,868,782 1,523,774
Average number of common stock shares outstanding during the period (shares)
33,000,494 33,438,050
Diluted EPS
Adjustment to net income (thousands of yen) - -
Increase in the number of common stock shares (shares)
415,938 473,152
(Of which, stock warrants) ( shares) (415,938) (473,152)
Residual securities that are not dilutive and not included in the calculation for diluted net income per share
- -
(Important Subsequent Events)
N/A