Benefit One : Overview of Operating Performance at Benefit One for the Fiscal Year Ended March 31, 2021（May 12, 2021）

Benefit One Inc. TSE 1, Security Code: 2412 https://corp.benefit-one.co.jp/

May 12, 2021

Overview of Operating Performance at Benefit One for the Fiscal Year Ended March 31, 2021 (FY03/21)

Summary of Consolidated Operating Results for FY03/21

Despite short-term impacts of the COVID-19 crisis, achieved higher profits for the 10th consecutive year. Consolidated ordinary income increased16.5% to a record-high

• Employee Benefit Services saw a steady increase in member counts primarily for major corporations and public institutions. The use of member services, especially those involving outings, was down year over year, and accordingly, rebate expenses fell.
• In Healthcare, provision of health checkups and guidance services was delayed due to the pandemic, pushing back the booking of some sales and profits to the next fiscal year
• Consolidated sales up 1.5%, operating income up 16.4%

Summary of operating performance forecast for the fiscal year ending March 31, 2022

Aim for consolidated ordinary income of ¥11,830 million, marking the 11th consecutive year of profit growth, driven by the Healthcare business benefiting from the shift to outsourced healthcare services

• Plans to pay a dividend per share of ¥36 (up ¥6 year over year)

１．Consolidated operating performance (April 1, 2020 to March 31, 2021)

		FY03/20		FY03/21		YoY change		Vs. forecast
(Millions of yen)		Amount		% of		Amount		% of		Change	％		Vs.	％
			sales			sales				forecast
Sales		37,271		-		37,841		-		+569	+1.5%		▲2,308	▲5.7%
Cost of sales	22,469	60.3%	21,418	56.6%		▲1,051	▲4.7%	-	-
Gross profit	14,802	39.7%	16,422	43.4%	+1,620	+10.9%	-	-
SG&A expenses	6,407	17.2%	6,648	17.6%	+241	+3.8%	-	-
Operating income		8,394		22.5%		9,774		25.8%		+1,379	+16.4%		+724	+8.0%
Ordinary income		8,462		22.7%		9,858		26.1%		+1,396	+16.5%		+758	+8.3%
Net income attributable	5,641	15.1%	6,766	17.9%	+1,125	+19.9%	+566	+9.1%
to owners of parent

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Benefit One Inc.

TSE 1, Security Code: 2412

https://corp.benefit-one.co.jp/

２．Performance of Major Businesses (April 1, 2020 to March 31, 2021)

(Millions of yen)

Sales

YoY

Operating

YoY

Reasons for change

Change

%

profit

Change

%

Employee Benefit

17,932

+221

+1.2%

Steady increase in corporate

Services

members

Individual Benefit

2,056

▲459

▲18.2%

8,389

+1,510

+22.0%

Decline in

the use of services

Services

involving

outings

amid the

pandemic,

and

accompanying

CRM

471

▲18

▲3.7%

decline in rebate expenses

Incentive

3,957

+277

+7.5%

975

+186

+23.6%

Increase in points granted,

progress in point redemption

Due to delays in providing

Healthcare

10,367

▲231

▲2.2%

755

▲376

▲33.2%

services, booking of some sales

and profits pushed back to the next

fiscal year

Purchase and

695

▲57

▲7.5%

73

▲37

▲33.5%

Voluntary restraints on business

Settlement Service

trips due to the pandemic

Increased transactions in

Overseas

1,424

+568

+66.4%

▲104

+129

-

Singapore and Thailand, among

other countries

Other

939

+268

-

▲314

▲33

-

―

Total

37,841

+569

+1.5%

9,774

+1,379

+16.4%

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Benefit One Inc. TSE 1, Security Code: 2412 https://corp.benefit-one.co.jp/

３．Performance of Major Businesses, by Quarter

								ＦＹ03/19									ＦＹ03/20								ＦＹ03/21
		(Millions of yen)
			1Ｑ		2Ｑ		3Ｑ		4Ｑ		1Ｑ			2Ｑ		3Ｑ		4Ｑ		1Ｑ		2Ｑ		3Ｑ		4Ｑ
		Employee Benefit	3,964	4,157	4,105	4,247	4,359		4,471	4,396		4,484	4,441	4,443		4,470	4,577
		Services
		Individual Benefit	780	762	711	673	647		650	628		589	539	536		503	478
		Services
		CRM	106	106	122	155	130		114	103		142	109	111		101	151
		Incentive	1,162	718	790	808	1,295		770	630		986	995	1,120		794	1,048
		Healthcare	1,364	2,559	2,550	2,938	1,837		2,711	2,737		3,313	1,616	2,123		3,141	3,486
		Purchase and	185	160	165	191	189		187	179		195	160	162		182	191
		Settlement Service
		Overseas	80	84	91	90	107		253	227		268	230	331		422	441
		Other	122	97	209	207	115		122	205		233	158	115		271	395
	Sales			7,763			8,643			8,743			9,309			8,679				9,278			9,105			10,210			8,248			8,941			9,884			10,767
	Gross profit			3,219			3,163			3,598			3,786			3,553				3,406			3,754			4,089			3,832			3,951			4,076			4,564
		Gross profit margin (%)	41.5%	36.6%	41.2%	40.7%	40.9%		36.7%	41.2%		40.0%	46.5%	44.2%		41.2%	42.4%
	SG&A expenses			1,543			1,494			1,550			1,537			1,636				1,560			1,562			1,649			1,666			1,662			1,614			1,707
		Employee Benefit
		Services + Individual	1,532	1,537	1,788	1,932	1,624		1,605	1,849		1,801	1,999	2,074		2,098	2,218
		Benefit Services + CRM
		Incentive	226	113	134	148	289		127	122		252	233	291		161	290
		Healthcare	8		130	232	295	85		233	325		489	29	50		264	413
		Purchase and		▲2		▲9	16	34	34		21	22		32	16	4		22	31
		Settlement Service
		Overseas		▲70		▲66		▲74		▲88		▲75			▲66		▲48		▲42		▲37		▲25		▲20		▲22
		Other		▲19		▲36		▲49		▲73		▲41			▲74		▲78		▲92		▲75		▲105		▲63		▲72
		(Of which, system-
		related investment)		（▲9）		（▲12）		（▲36）		（▲57）		（▲25）			（▲55）		（▲69）		（▲73）		（▲42）		（▲45）		（▲51）		（▲60）
	Operating income			1,675			1,669			2,047			2,248			1,916				1,846			2,192			2,440			2,165			2,289			2,462			2,858
	Operating income margin (%)	21.6%	19.3%	23.4%	24.2%	22.1%		19.9%	24.1%		23.9%	26.3%	25.6%		24.9%	26.5%
	Ordinary income			1,696			1,687			2,052			2,270			1,925				1,870			2,208			2,459			2,179			2,307			2,474			2,898
	Ordinary income margin (%)	21.9%	19.5%	23.5%	24.4%	22.2%		20.2%	24.3%		24.1%	26.4%	25.8%		25.0%	26.9%
	Net income attributable			1,148			1,152			1,407			1,468			1,314				1,289			1,504			1,534			1,489			1,582			1,701			1,994
	to owners of parent
		Net income margin (%)	14.8%	13.3%	16.1%	15.8%	15.1%		13.9%	16.5%		15.0%	18.1%	17.7%		17.2%	18.5%

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														Benefit One Inc.		TSE 1, Security Code: 2412
																				https://corp.benefit-one.co.jp/
４．Quarterly Member Counts by Businesses
						ＦＹ03/19						ＦＹ03/20						ＦＹ03/21
	Ten thousand members
		Jun.		Sep.		Dec.		Mar.	Jun.		Sep.		Dec.		Mar.		Jun.		Sep.		Dec.		Mar.
		Employee Benefit	481	489	493	490		513	522	522	522	590	624	624	621
		Services
		Individual Benefit	152	148	142	138		137	141	140	134	125	120	115	111
		Services
		CRM	119	120	120	121		119	118	117	124	124	124	125	130
	Total members		752		757		755		749		769		781		779		780		839		868		864		862

５．Consolidated operating performance Forecast for FY03/22 (April 1, 2021 to March 31, 2022)

FY03/21

Forecast for FY03/22

(Millions of yen)

Full year

Full

Change YoY

1H

YoY

2H

YoY

year

Sales	37,841		37,310		▲532	▲1.4%		17,670		+2.8%		19,640		▲4.9%
Operating income	9,774		11,750		+1,976	+20.2%		5,280		+18.5%		6,470		+21.6%
Ordinary income	9,858		11,830		+1,971	+20.0%		5,330		+18.8%		6,500		+21.0%
Net income attributable to	6,766		8,120		+1,354	+20.0%		3,630		+18.2%		4,490		+21.5%
owners of parent

Note 1: Effective from FY03/22, Benefit One has adopted the new Accounting Standard for Revenue Recognition, and the sales forecast provided above is based on the new accounting standard. Sales forecast for FY03/22 when not applying the new accounting standard would be ¥25,140 million for the first half of the fiscal year (up 46.2% year over year), and ¥49,200 million for the full year (up 30.0% year over year). We do not expect any changes in the forecast for operating income, ordinary income, and net income attributable to owners of parent due to the adoption of the new Accounting Standard for Revenue Recognition.

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Benefit One Inc. TSE 1, Security Code: 2412 https://corp.benefit-one.co.jp/

６．Operating Performance Forecast by Major Business (April 1, 2021 to March 31, 2022)

(Millions of yen)

Sales

YoY

Operating

YoY

Reasons for change

Change

%

profit

Change

%

Employee

Benefit

18,275

+343

+1.9%

Increase in rebate expenses on expected

Services

9,302

+912

+10.9%

recovery in service usage

Individual

Benefit

2,671

+144

+5.7%

Product differentiation through platform

Services + CRM

strategies

Incentive

4,401

+443

+11.2%

1,010

+35

+3.6%

Expansion of the customer base

Healthcare

8,560

▲1,806

▲17.4%

3,373

+2,618

+346.6%

Expected acceleration in the shift to

outsourced healthcare services

Expected recovery in the use of services

Purchase and

827

+132

+19.0%

158

+85

+116.9%

for business trips and entertainment in

Settlement Service

the second half of the fiscal year

Payment

30

+13

+71.0%

▲99

▲115

-

Launch of payroll deduction service in

June 2021

Overseas

1,866

+442

+31.0%

▲80

+24

-%

Earnings improvement primarily in

Singapore, Thailand, and China

Other

680

▲243

-

▲1,914

▲1,583

-

Change in cost allocation standard for

companywide expenses and others

Total

37,310

▲532

▲1.4%

11,750

+1,976

+20.2%

Note 2: From FY03/22, we have adopted the new Accounting Standard for Revenue Recognition and accordingly revised our sales booking methods. The revision will only affect the Healthcare, Employee Benefit Services, and Overseas businesses, and is expected to have no impact on other businesses.

Note 3: From FY03/22, we have changed the way we allocate companywide expenses, and booked expenses that were previously included in Employee Benefit Services + Individual Benefit Services + CRM to Other. We have also changed the way we allocate common system infrastructure expenses, allocating these expenses, which were previously included in Other, to each business.

(Millions of yen)		Sales			YoY	(%)		Operating profit		YoY	(%)
	1H			2H		1H	2H		1H			2H		1H	2H
Employee Benefit		8,741			9,534		▲1.6%	+5.4%
Services
									4,110			5,191		+0.9%	+20.3%
Individual Benefit		1,247			1,424		▲3.7%	+15.6%
Services + CRM
Incentive		2,075			2,326		▲1.9%	+26.2%		501			509		▲4.4%	+12.8%
Healthcare		4,248			4,312		+13.6%	▲34.9%		1,842			1,531		-	+126.3%
Purchase and		351			475		+9.1%	+27.6%		19			139		▲2.5%	+160.8%
Settlement Service
Payment		5			25		+45.7%	+77.5%		▲60			▲38		-	-
Overseas		772			1,094		+37.6%	+26.7%		▲72			▲8		-	-
Other		231			450		-	-		▲1,060			▲854		-	-
Total		17,670			19,640		+2.8%	▲4.9%		5,280			6,470		+18.5%	+21.6%

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