Benefit One : FY03/2021 Annual Securities Report（June 25, 2021）

Annual Securities Report

The 26th Fiscal Year

From April 1, 2020 to March 31, 2021

Benefit One Inc.

―1―

Annual Securities Report

1. This document was prepared by outputting and printing the annual securities report prepared based on Article 24, Paragraph 1 of the Financial Instruments and Exchange Act and by adding a Table of Contents and pages to the data submitted by using the electronic data processing system for disclosure (EDINET) set forth in Article 27-30-2 of the Act.
2. At its end, this document contains the audit report attached to the annual securities report submitted by the above method, as well as the internal control report and the confirmation letter submitted with the above annual securities report.

―2―

Table of Contents

Page

The 26th Fiscal Year Annual Securities Report

[Cover] ……………………………………………………………………………………………………………………………… 1

Part I: Company Information…………………………………………………………………………………………………… 2

I-1: Company overview ……………………………………………………………………………………………………… 2

1. Transition of major management indicators, etc.………………………………………………………………. 2
2. Company history…………………………………………………………………………………………………… 4
3. Contents of business……………………………………………………………………………………………… 6
4. Status of associated companies………………………………………………………………………………… 8
5. Status of employees……………………………………………………………………………………………… 9 I-2. Status of business………………………………………………………………………………………………………. 10

1. Management policies, management environment, challenges to address, etc.…………………………… 10

2. Risk of business, etc.………………………………………………………………………………………………. 11

3. Analysis of financial position, operating results, and cash flow status by the management……………… 15

1. Important business contracts, etc.……………………………………………………………………………….. 19
2. R&D activities……………………………………………………………………………………………………… 19 I-3. Status of equipment……………………………………………………………………………………………………… 20

1. Outline of capital investment, etc.……………………………………………………………………………….. 20
2. Status of major equipment………………………………………………………………………………………… 20
3. Plans for new equipment, equipment retirement, etc.………………………………………………………… 20 I-4. Status of the reporting company……………………………………………………………………………………….. 21

1. Status of shares, etc.………………………………………………………………………………………………..21
2. Status of the acquisition of treasury shares, etc.……………………………………………………………….. 25
3. Dividend policy……………………………………………………………………………………………………….26
4. Status of corporate governance, etc.…………………………………………………………………………….. 26 I-5. Status of accounting……………………………………………………………………………………………………… 44

1. Consolidated financial statements, etc. ………………………………………………………………………… 45
2. Financial statements, etc. ………………………………………………………………………………………… 73 I-6. Outline of share-related procedures of the reporting company……………………………………………………… 86
   I-7. Reference information on the reporting company…………………………………………………………………… 87

1. Information on the reporting company's parent company, etc.………………………………………………… 87
2. Other reference information……………………………………………………………………………………… 87 Part II: Information on the Reporting Company's Guarantor Company, etc.……………………………………………… 88

Audit Report

Internal Control Report

Confirmation Letter

―3―

[Cover]

Document submitted:	Annual Securities Report
Grounds:	Article 24, Paragraph 1 of the Financial Instruments and Exchange Act
Submitted to:	Director-general of the Kanto Finance Bureau
Date of submission:	June 25, 2021
Fiscal year:	The 26th fiscal year (April 1, 2020 to March 31, 2021)
Company name:	Benefit One Inc.
Company name in English:	Benefit One Inc.
Name and title of the representative:	Norio Shiraishi, President & COO
Location of the head office:	6-2,2-chome, Otemachi, Chiyoda-ku, Tokyo, Japan
Telephone No.:	[phone] (Main)
Name of the contact person:	Kenji Ozaki, Managing Director
Nearest contact point:	6-2,2-chome, Otemachi, Chiyoda-ku, Tokyo, Japan
Telephone No.:	[phone] (Main)
Name of the contact person:	Kenji Ozaki, Managing Director
Places where a copy is to be made	Osaka Branch, Benefit One Inc.
available for public inspection:	(1-1,4-chome, Doshonachi, Chuo-ku,Osaka-shi, Osaka, Japan)
	Nagoya Branch, Benefit One Inc.
	(1-4,1-chome, Meieki, Nakamura-ku,Nagoya-shi, Aichi, Japan)
	Yokohama Branch, Benefit One Inc.
	(23-2,2-chome,Tsuruya-cho,Kanagawa-ku,Yokohama-shi, Kanagawa,
	Japan)
	Tokyo Stock Exchange, Inc.
	(2-1,Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan)

―4―

Part I: Company Information

I-1 Company overview

1. Transition of major management indicators, etc.

(1) Consolidated management indicators, etc.

Fiscal period		22nd	23rd	24th	25th	26th
Closing month/year		Mar. 2017	Mar. 2018	Mar. 2019	Mar. 2020	Mar. 2021
Sales	(¥Mil)	29,478	32,089	34,461	37,271	37,841
Ordinary income	(¥Mil)	5,727	6,263	7,707	8,462	9,858
Net income attributable to owners of parent	(¥Mil)	3,855	4,190	5,176	5,641	6,766
Comprehensive income	(¥Mil)	4,139	4,250	5,089	5,620	7,285
Net assets	(¥Mil)	14,712	17,107	19,882	16,567	19,865
Total assets	(¥Mil)	26,779	30,235	34,774	29,926	36,171
Net assets per share	(¥)	181.83	105.69	123.03	104.10	124.84
Net income per share	(¥)	47.75	25.95	32.05	35.24	42.52
Diluted per share amount of net income	(¥)	-	-	-	-	-
Equity ratio	(%)	54.8	56.5	57.1	55.4	54.9
Return on equity	(%)	29.1	26.4	28.0	31.0	37.1
Price earnings ratio	(times)	35.8	56.7	67.8	40.0	69.1
Cash flow from operating activities	(¥Mil)	5,765	6,289	5,628	5,476	9,862
Cash flow from investing activities	(¥Mil)	△906	△1,079	△844	△748	△1,175
Cash flow from financing activities	(¥Mil)	△1,214	△2,189	△2,387	△9,077	△4,110
Cash and cash equivalents,	(¥Mil)	11,896	14,924	17,328	12,962	17,554
end of year
Number of employees (Average number	(persons)	730	692	676	704	860
of temporary workers)	(275)	(275)	(331)	(400)	(449)

Note 1: Sales do not include consumption tax, etc.

Note 2: Diluted net income per share is not stated because there are no dilutive shares.

Note 3: The Company has introduced the Japanese version of the Employee Stock Ownership Plan (J-ESOP) and the Board Benefit Trust (BBT) since the 22nd fiscal year. Treasury shares remaining in the Japanese version of the Employee Stock Ownership Plan (J-ESOP) and the Board Benefit Trust (BBT) that are recorded as treasury shares in the shareholders' equity are included in treasury shares deducted from the total number of issued shares as of the end of the year for the calculation of net assets per share, and in treasury shares deducted in the calculation of the average number of shares during the year for the calculation of net income per share.

Note 4: One common share was split into two shares, effective on October 1, 2017. Net assets per share and net income per share were calculated assuming that the share split was conducted at the beginning of the 22nd fiscal year.

Note 5: One common share was split into two shares, effective on March 1, 2019. Net assets per share and net income per share were calculated assuming that the share split was conducted at the beginning of the 23rd fiscal year.

―5―