COOKPAD Inc.FY2011 Q3 Financial Results

March, 2012

Highlights of FY2011 Q3

2

Total sales increased by 16% y/y due to growth of Premium Services Business.

m/m growth of paid members accelerated.

Continued improvement of business efficiency led to a rapid increase in sales of Advertising Business in Q3.

Summary of Business Conditions of FY2011 Q3

　

FY2010 Q3(9 months)

FY2011 Q3(9 months) y/y

Net sales 2,411 2,790 +15.7%

Operating income 1,351 1,359 +0.6%

Ordinaryincome 1,341 1,317 -1.8%

Net income 722 766 +6.1％

（¥ million）

4

Summary of Business Conditions- Net sales increased by 16% y/y -

0

600

1,200

1,800

2,400

3,000

2011/4 3Q (9 months) 2012/4 3Q (9 months)

343

344762

853

1,6831,213

（¥ million）

5

Premium ServicesMarketing SupportAdvertising

2,4102,790 　

y/y Causes

Premium Services +38.8％ Stable growth

Marketing Support -10.6% Reorganization of

product strategy led to rapid growth of Advertising Business

Advertising -0.3%

Reorganization of product strategy led to rapid growth of Advertising Business

Business Results of FY2011 Q3- Premium Services continue to grow -

（¥ million）

60

200

400

600

800

1,000

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

162102

7999127109

107110

106

8487

228311222

254286

300266

300

256

210200

582558542497451402358306237

179129

Premium ServicesMarketing SupportAdvertising

417473

599

716 732

865813

851 844

2012/42010/4 2011/4

972 973

Net Sales by Business - Premium Services recorded its Highest Sales to date -

0

300

600

900

1,200

1,500

2011/4 Q3 (9 months) 2012/4 Q3 (9 months)

355

262161

120120

82

762562

(¥ million）

7

　y/y Causes

Personnel costs +35.5％Growth in no. of employees(77 in Jan 2011 to 100

in Jan 2012)

System related costs +45.5％ Service expansion

Paid-charge commissions +33.7％ Increase in paid

members

Others +35.3％Increase in

recruiting costs, rent accounts, etc.

Personnel costsSystem related costsPaid-charge commissionsOthers

1,399

1,028

SG&A increase/decrease

(¥ million）

80

100

200

300

400

500

600

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

124111120

223

967492

89

776082

57515250

444035

30

231713

38503130

272727

31

292719 260253247259200189171

219

133123113

Personnel costsSystem related costsPaid-charge commissionsOthers

228 230263

370327

370330

565

451

2012/42010/4 2011/4

482466

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 Dec

COOKPAD’s monthly UUs (PCs, Smartphone browsers)

10

（million）

Device UUs (million)

PCs 10.73

Smartphone Browsers* 2.94*

Unique users by device (Jan, 2012)

2011/4 2012/4

*Not including iPhone Apps/Android Apps users

PCsSmartphones

Smartphone browser-based users steadily increased

11

More than 1.13 million registered recipes

Business Updates

130

100

200

300

400

500

600

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

582558542497

451402

358306

237179

129

2012/42010/4 2011/4

Sales for each quarter(¥ million)

Paid members

2010/4 2011/4 2012/4

Premium Services Business Sales of Premium Services Business increased by 29.1% y/y in FY2011 Q3. Paid members steadily increased due to adoption of NTT docomo’s automatic transition service (for switching from i-mode to sp-mode).

14

Smartphone paid membership has steadily increased

Nov Dec Jan Feb

Usability improvements, special content

for Valentine’s Day

Adoption of NTT docomo’s i-mode transition service

Adoption of all three carrier’s open-ID based system

Incremental number of paid members

15As of Jan. 2012

The smartphone-app users steadily increased

iPhone App

3.5milliondownloads

Android App

2.0milliondownloads

Optimized UIs for Smartphone

Feature phone Smartphone

16

（¥ million）

0

50

100

150

200

250

300

350

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

228

311

222254

286300266

300256

210200

0

50

100

150

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

162

102

7999

127109107110106

8487

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

Marketing Support Business/Advertising Business

Sales of Marketing Support Business decreased by 20.3% y/y in FY2011 Q3. Sales of Advertising Business increased by 26.7% y/y in FY2011 Q3. Overall business efficiency improved due to growth of Advertising Business. Reorganization of product strategy will encourage growth of Marketing Support.

Marketing Support Advertising（¥ million）

18

Sales breakdown of existing customers/new customers

0

80

160

240

320

400

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

64

85

2887638635

164227194167

224214230

Existing CustomersNew Customers

2011/4 2012/4

266300 286

254222

311

228

(¥ million)

No. 1 in “Butabara”No. 4 in “Nabe”

in Search by popularity

19

Tie-ups with TV commercials

Transformation of passive viewing of TV commercials to

real-life cooking experience

Hot-selling products

Promotion of product understanding drove the “Hongcho” boom

(Jan 2012)

New successful projects in recipe marketing

　

FY2011 Q3Result (9 months)

FY2011Forecast

Budget progress for FY2011

Net sales 2,790 4,000 69.8%

Operating income 1,359 1,872 72.6%

Ordinary income 1,317 1,822 72.3%

Net income 766 1,002 76.4%

20

FY2011 forecast

(¥ million)

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.