Benefit One : Operating Performance at Benefit One for the First Three Months of the Fiscal Year Ending March 31, 2022（July 29, 2021）

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

July 29, 2021

Operating Performance at Benefit One for the First Three Months of

the Fiscal Year Ending March 31, 2022 (Q1 FY03/22)

Summary of Consolidated Operating Results for Q1 FY03/22

Ordinary income up 32.1% on robust performance centered on Healthcare

• Based on the medium-term management plan announced on May 12, 2021, launched initiatives geared toward the post-pandemic society. Began transferring data to Bene ONE PLATFORM. Launched Kyutokubarai, a new service utilizing the payroll deduction scheme.
• In Employee Benefit Services, rebate-related expenditures increased due to ongoing recovery in the use of accommodation and other service menus versus FY03/21.
• In Healthcare, business environments for health checkup and health guidance services were back to normal. With an increased need for BPO services providing a tailwind, launched the COVID-19 vaccine rollout support business in response to socio-economic demands, which contributed to consolidated profit growth.
• Due to the adoption of the new Accounting Standard for Revenue Recognition from FY03/22, sales recorded declined by ¥1,654 million (excluding the impact of the new accounting standard, sales would have been up 22.9%).
• Performance in Q1 FY03/22 was largely in line with plan, and no change has been made to the operating performance forecast announced on May 12, 2021.

１．Consolidated operating performance (April 1, 2021-June 30, 2021)

	FY03/21	FY03/22	YoY change	Vs. forecast
(Millions of yen)	Amount	% of	Amount	% of	Change	%	1H forecast	Q1
		sales		sales				progress
Sales	8,248	-	8,483	-	+234	+2.8%	17,670	48.0%
Cost of sales	4,416	53.5%	3,882	45.8%	▲534	▲12.1%	-	-
Gross profit	3,832	46.5%	4,600	54.2%	+768	+20.1%	-	-
SG&A expenses	1,666	20.2%	1,754	20.7%	+88	+5.3%	-	-
Operating income	2,165	26.3%	2,846	33.6%	+680	+31.4%	5,280	53.9%
Ordinary income	2,179	26.4%	2,877	33.9%	+698	+32.1%	5,330	54.0%
Net income attributable	1,489	18.1%	2,051	24.2%	+562	+37.8%	3,630	56.5%
to owners of parent

Note 1: Effective from FY03/22, Benefit One has adopted the new Accounting Standard for Revenue Recognition. Due to the adoption of the new accounting standard, sales were down ¥1,654 million (of which, ¥1,532 million was in Healthcare and ¥122 million in Employee Benefit Services), cost of sales was down ¥1,635 million, and each profit category was down ¥19 million.

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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-June30, 2021)

(Millions of yen)

Sales

YoY

Operating

YoY

Reasons for change

Change

%

income

Change

%

Employee Benefit

4,372

▲69

▲1.5%

The adoption of the new

Services

accounting standard depressed

Individual Benefit

498

▲41

▲7.7%

sales by ¥122 million.

Services

Changes in allocation of company-

2,285

+286

+14.3%

wide shared expenses pushed up

profit by ¥352 million.

CRM

109

▲0

▲0.0%

Rebate-related

expenditures

increased on recovery in members'

use of services, including

accommodation.

Incentive

981

▲14

▲1.4%

269

+35

+15.2%

Largely in line with plan despite

some delays in point redemption

Health checkup and guidance

Healthcare

1,811

+195

+12.0%

792

+763

+2650.9%

services were back to normal.

A new service was launched.

Purchase and

165

+6

+3.7%

17

+1

+5.6%

Largely in line with plan

Settlement Service

Payment

3

+1

+56.7%

▲23

▲25

-

Launch of Kyutokubarai; upfront

spending

Increased transactions in China

Overseas

348

+119

+51.6%

▲41

▲5

-

and Singapore among other

regions

Profit increased due to changes in

Other (company-wide

196

+37

-

▲453

▲375

-

allocation of company-wide shared

shared expenses, etc.)

expenses.

Total

8,483

+234

+2.8%

2,846

+680

+31.4%

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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

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

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

４．Quarterly member count by business

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

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
Health checkup: number of	15	23	13	10	1	28	16	13	16
consultations*Note 2
Specific health guidance: number of initial
	2	2	3	4	1	2	3	4	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 operating performance forecast at the time of its release)

We have formulated our operating performance forecast for the fiscal year ending March 2022 (FY03/22) announced on May 12, 2021 based on the assumption that the impact of the COVID-19 pandemic on members' use of services in the Employee Benefit Services business and the use of the Purchase and Settlement Service on business trips would gradually dissipate over the second half of the fiscal year. We do not expect the pandemic to have a significant impact on other businesses, and the forecast assumes increased transactions and profit growth centered on the Healthcare business.

(Outlook)

The impact of the COVID-19 pandemic on our operating performance to date has been limited. While the pandemic is expected to have a varying degree of impact on each of our businesses, based on our understanding that our performance is largely in line with plan, we have maintained our operating performance forecasts for the first half of and full-year FY03/22 formulated based on assumptions as of May 12, 2021.

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

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 June 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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