[Delayed]Operating Performance at Benefit One for the First Half of the Fiscal Year Ending March 2022 (1H FY03/22)

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

November 4, 2021

Operating Performance at Benefit One for the First Half of

the Fiscal Year Ending March 2022 (1H FY03/22)

Summary of Consolidated Operating Results for 1H FY03/22

Steady performance centered on the Healthcare business; operating profit up 54.7%

• In the Employee Benefit Services business, recovery in the use of services was delayed due to the COVID-19 crisis, resulting in a slower-than-expected increase in rebate-related expenditures.
• In the Healthcare business, the health support service for COVID-19 vaccine rollout programs, etc., a new service launched this fiscal year, grew more than expected, contributing to consolidated profit growth.
• Adoption of the Accounting Standard for Revenue Recognition from FY03/22 pushed down sales by ¥3,860 million (excluding the impact of the new accounting standard, sales increased 31.5%).
• No change has been made to the full-year operating performance forecast announced on May 12, 2021.

１．Consolidated operating performance in 1H FY03/22 (April 1, 2021-September30, 2021)

			1H FY03/21		1H FY03/22		YoY				Full-year forecast
	(Millions of yen)				% of				% of								Progress
			Amount			Amount			Change	%			Amount		vs.
				sales			sales
																forecast
	Sales		17,190		-		18,748		-		+1,558		+9.1%			37,310		50.3%
Cost of sales	9,407	54.7%	8,357	44.6%		▲1,049	▲11.2%	-	-
Gross profit	7,783	45.3%	10,391	55.4%	+2,608		+33.5%	-	-
SG&A expenses	3,328	19.4%	3,500	18.7%	+172		+5.2%	-	-
	Operating income		4,454		25.9%		6,890		36.8%		+2,435		+54.7%			11,750		58.6%
	Ordinary income		4,487		26.1%		6,887		36.7%		+2,400		+53.5%			11,830		58.2%
Net income attributable	3,071	17.9%	4,826	25.7%	+1,754		+57.1%	8,120	59.4%
to owners of parent

Note 1: Due to the adoption of the Accounting Standard for Revenue Recognition from the start of FY03/22, sales were down ¥3,860 million (of which, ¥3,628 million was in Healthcare and ¥232 million in Employee Benefit Services), cost of sales was down ¥3,846 million, and profit was down ¥13 million, versus what each would have been under the previous accounting standard.

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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, 2021-September 30, 2021)

(Millions of yen)

Sales

YoY

Operating

YoY

Reasons for change

Change

%

income

Change

%

Employee Benefit

8,716

▲168

▲1.9%

A ¥232 million decrease in sales due to

Services

the adoption of the new accounting

Individual Benefit

982

▲93

▲8.7%

standard; a ¥655 million increase in profit

Services

4,736

+663

+16.3%

due to changes in the allocation method

of companywide shared expenses; and a

CRM

220

▲0

▲0.2%

rise in rebate-related

expenditures

on

recovery in the use of accommodation

and other services.

Incentive

1,902

▲213

▲10.1%

485

▲40

▲7.5%

Decline in service usage by major

existing clients

Growth in new earnings-generating

Healthcare

5,544

+1,805

+48.3%

2,674

+2,595

+3291.0%

businesses such as COVID-19

vaccination support services

Prolonged voluntary restraints on

Purchase and

327

+5

+1.5%

32

+13

+64.0%

business trips despite gradual

Settlement Service

recovery in the use of the service

on such trips

Launch of Kyutokubarai, and

Payment

5

+1

+37.2%

▲40

▲44

-

upfront spending associated with

the launch

Overseas

642

+81

+14.4%

▲74

▲12

-

Higher sales in China and

Singapore, among other regions

Other (company-wide

410

+140

-

▲923

▲740

-

Increased due to

changes

in

shared expenses, etc.)

expense allocation method

Total

18,748

+1,558

+9.1%

6,890

+2,435

+54.7%

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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

								ＦＹ03/20									ＦＹ03/21					ＦＹ03/22
		(Millions of yen)
	1Ｑ		2Ｑ		3Ｑ		4Ｑ		1Ｑ			2Ｑ		3Ｑ		4Ｑ		1Ｑ		2Ｑ
		Employee Benefit	4,359		4,471	4,396	4,484	4,441	4,443		4,470	4,577	4,372	4,344
		Services
		Individual Benefit	647		650	628	589	539	536		503	478	498	484
		Services
		CRM	130		114	103	142	109	111		101	151	109	110
		Incentive	1,295		770	630	986	995	1,120		794	1,048	981	921
		Healthcare	1,837		2,711	2,737	3,313	1,616	2,123		3,141	3,486	1,811	3,733
		Purchase and	189		187	179	195	160	162		182	191	165	161
		Settlement Service
		Payment	-		-		-		-		-		-		-	-		3		2
		Overseas	107		253	227	268	230	331		422	441	348	293
		Other	115		122	205	233	158	115		271	395	196	217
	Sales			8,679			9,278			9,105			10,210			8,248				8,941			9,884			10,767			8,483			10,265
	Gross profit			3,553			3,406			3,754			4,089			3,832				3,951			4,076			4,564			4,600			5,790
		Gross profit margin (%)	40.9%		36.7%	41.2%	40.0%	46.5%	44.2%		41.2%	42.4%	54.2%	56.4%
	SG&A expenses			1,636			1,560			1,562			1,649			1,666				1,662			1,614			1,707			1,754			1,746
		Employee Benefit Services
		+ Individual Benefit	1,624		1,605	1,849	1,801	1,999	2,074		2,098	2,218	2,285	2,451
		Services + CRM
		Incentive	289		127	122	252	233	291		161	290	269	216
		Healthcare	85		233	325	489	29	50		264	413	792	1,882
		Purchase and	34		21	22	32	16	4		22	31	17	15
		Settlement Service
		Payment	-		-		-		-		-		-		-	-			▲23		▲17
		Overseas		▲75		▲66		▲48		▲42		▲37			▲25		▲20		▲22		▲41		▲33
		Other (company-wide		▲41		▲74		▲78		▲92		▲75			▲105		▲63		▲72		▲453		▲470
		shared expenses, etc.)
	Operating income			1,916			1,846			2,192			2,440			2,165				2,289			2,462			2,858			2,846			4,044
		Operating income margin (%)	22.1%		19.9%	24.1%	23.9%	26.3%	25.6%		24.9%	26.5%	33.6%	39.4%
	Ordinary income			1,925			1,870			2,208			2,459			2,179				2,307			2,474			2,898			2,877			4,010
		Ordinary income margin (%)	22.2%		20.2%	24.3%	24.1%	26.4%	25.8%		25.0%	26.9%	33.9%	39.1%
	Net income attributable to			1,314			1,289			1,504			1,534			1,489				1,582			1,701			1,994			2,051			2,774
	owners of parent
		Net income margin (%)	15.1%		13.9%	16.5%	15.0%	18.1%	17.7%		17.2%	18.5%	24.2%	27.0%

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

４．Quarterly member count by business

	Ten thousand				ＦＹ03/20				ＦＹ03/21			ＦＹ03/22
	members		Jun.		Sep.	Dec.		Mar.	Jun.	Sep.	Dec.		Mar.	Jun.	Sep.
	Employee Benefit	513	522	522	522	590	624	624	621	634	635
	Services
	Individual Benefit	137	141	140	134	125	120	115	111	106	101
	Services
	CRM	119	118	117	124	124	124	125	130	127	127
Total members		769		781	779		780	839	868	864		862	867	863

５．Number of consultations in the Healthcre business

		ＦＹ03/20			ＦＹ03/21		ＦＹ03/22
(10,000 cases)
1Ｑ	2Ｑ	3Ｑ	4Ｑ	1Ｑ	2Ｑ	3Ｑ	4Ｑ	1Ｑ	2Ｑ
Health checkup: number of	15	23	13	10	1	28	16	13	16	25
consultations*Note 2
Specific health guidance: number of initial
	2	2	3	4	1	2	3	4	3	3
consultations*Note 3

Note 2: "Health checkup: number of checkups" refers to the number of health checkups for which Benefit One made appointments on behalf of service members.

Note 3: "Specific health guidance: number of initial consultations" refers to the number of initial consultations members eligible for this service had with specialist staff.

６．Qualitative information regarding consolidated operating performance forecast (April 1,

2021-March 31, 2022)

(Assumptions underlying the forecast as of the date of its release on May 12, 2021)

In the operating performance forecast for the fiscal year ending March 2022 (FY03/22) announced on May 12, 2021, we expected the impact of the COVID-19 pandemic on the service usage by members in the Employee Benefit Services business and the use of the service on business trips in the Purchase and Settlement Service business would gradually dissipate over the second half of the fiscal year. We did not anticipate the pandemic to have a significant impact on other businesses, and formulated the forecast based on the assumption that transactions and profit would increase primarily in the Healthcare business.

(Consolidated operating results for 1H)

In the first half of the fiscal year ending March 2022, sales and profits exceeded the operating performance forecast announced on May 12, 2021 due to 1) lower-than-expectedrebate-related expenditures as the recovery in the use of member services (such as leisure activity menus) in the Employee Benefit Services business was delayed because of the prolonged fifth wave of the COVID-19 pandemic; and 2) growth in the health support business in tandem with the accelerated rollout of COVID-19 vaccination programs.

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

(Assumptions for operating performance outlook going forward)

We think the following two variable factors could continue to have an impact on our operating performance in the second half of the fiscal year ending March 2022: 1) degree of recovery in the use of member services in the Employee Benefit Services business; and 2) the rollout of COVID-19 vaccine booster shots (third dose). Further, earnings of JTB Benefit Service, Inc., which was made a subsidiary through share acquisition on October 29, 2021, are expected to be included in the consolidated income statement from the fourth quarter of the fiscal year under review. Since earnings of the subsidiary will only be included for one quarter, their impact on full-year consolidated operating performance is expected to be limited. In light of these factors, we have maintained the full-year operating performance forecast announced on May 12, 2021.

These materials are intended to provide information pertaining to financial results. They are not intended to solicit investments in securities issued by the Company. These materials were prepared on the basis of data as of September 30, 2021. Accordingly, opinions or forecasts contained in these materials are based on the judgment of the Company as of the date the materials were prepared. The Company makes no guarantees or pledges as to the accuracy or completeness of this information. Furthermore, this information may be changed without notice.

IR contact: Corporate Planning Division

TEL：[phone]／MAIL：[e-mail]

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