Benefit One : Operating Performance at Benefit One for the First Three Months of the Fiscal Year Ending March 31, 2023

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

July 28, 2022

Operating Performance at Benefit One for the First Three Months of

the Fiscal Year Ending March 31, 2023 (Q1 FY03/23)

Summary of Consolidated Operating Results for Q1 FY03/23

Performance was strong due to M&A-related impact and recovery in our surrounding business environment, and ordinary income increased 2.3% YoY

We project that our surrounding business environment will recover over the medium to long term and accordingly made large-scale promotional investment while laying a groundwork for office consolidation

• Sales generated through the Employee Benefit Services business grew 39.5% YoY as we achieved both internal and external growth, with the latter stemming primarily from M&A; rebate-related expenditures increased YoY as service usage among members recovered, and we also booked upfront expenses associated with major promotional investments
• With regard to the Healthcare business, health checkups and guidance services generally progressed according to our projections; in the COVID-19 vaccination support business, acquisition of orders associated with the third round of COVID-19 shots was strong
• We relocated our head office effective from July 1, 2022 and recorded a corresponding one-time expense of approximately ¥150 million in Q1
• Operating performance was generally solid in Q1, and we have refrained from making changes to the previous operating performance forecast we announced on May 10, 2022

１．Consolidated operating performance (April 1, 2022-June30, 2022)

	FY03/22	FY03/23		YoY change	Vs. forecast
(Millions of yen)	Amount	% of	Amount	% of		Change	%	1H	Q1
		sales		sales					forecast	progress
Sales	8,483	-	10,583	-		+2,100		+24.8%	20,950	50.5%
Cost of sales	3,882	45.8%	4,759	45.0%	+876	+22.6%	-	-
Gross profit	4,600	54.2%	5,824	55.0%	+1,223	+26.6%	-	-
SG&A expenses	1,754	20.7%	2,924	27.6%	+1,170	+66.7%	-	-
Operating income	2,846	33.6%	2,899	27.4%		+53		+1.9%	4,000	72.5%
Ordinary income	2,877	33.9%	2,943	27.8%		+66		+2.3%	3,990	73.8%
Net income attributable	2,051	24.2%	1,999	18.9%		▲52		▲2.6%	2,640	75.7%
to owners of parent

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

２．Performance of Major Businesses (April 1, 2022-June30, 2022)

(Millions of yen)

Sales

YoY

Operating

YoY

Reasons for change

Change

%

income

Change

%

Employee Benefit

6,100

+1,728

+39.5%

Performance

boosted by

both internal

Services

and external growth

Individual Benefit

449

▲49

▲9.8%

2,315

+30

Increase in rebate-related expenditures

Services

+1.3%

driven by recovery in service utilization

Booked about ¥140 million in expenses

CRM

156

+46

+42.4%

associated

with

major

promotional

investments

Incentive

992

+11

+1.1%

214

▲54

▲20.2%

Delayed granting/exchanging of

incentive points in the new fiscal year

Health checkups and guidance services

generally progressed according to

Healthcare

2,236

+426

+23.5%

1,150

+358

+45.2%

projections

Strong support operations for the third

round of COVID-19 vaccination shots

Purchase and

146

▲19

▲11.8%

20

+3

+17.0%

Roughly in line with assumptions

Settlement Service

underlying our projections

Payment

3

▲0

▲3.5%

▲16

+7

-

Roughly in line with assumptions

underlying our projections

Incurred upfront expenses associated

Overseas

352

+3

+1.0%

▲84

▲43

-

with personnel expansion, system

development, etc.

Incurred a one-time expense

of about

Other (company-wide

149

▲46

-

▲700

▲248

-

¥150 million

in

connection

with the

shared expenses, etc.)

relocation of our head office

Total

10,583

+2,100

+24.8%

2,899

+53

+1.9%

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

３．Performance of Major Businesses, by Quarter

								ＦＹ03/21								ＦＹ03/22					ＦＹ03/23
		(Millions of yen)
			1Ｑ		2Ｑ		3Ｑ		4Ｑ		1Ｑ		2Ｑ		3Ｑ		4Ｑ		1Ｑ
		Employee Benefit	4,441	4,443	4,470	4,577	4,372	4,344	4,359	6,721	6,100
		Services
		Individual Benefit	539	536	503	478	498	484	462	447	449
		Services
		CRM	109	111	101	151	109	110	108	161	156
		Incentive	995	1,120	794	1,048	981	921	683	888	992
		Healthcare	1,616	2,123	3,141	3,486	1,811	3,733	1,897	2,169	2,236
		Purchase and	160	162	182	191	165	161	150	164	146
		Settlement Service
		Payment	-		-	-		-		3		2	3		10	3
		Overseas	230	331	422	441	348	293	438	394	352
		Other	158	115	271	395	196	217	219	339	149
	Sales			8,248			8,941			9,884			10,767			8,483			10,265			8,319			11,293			10,583
	Gross profit			3,832			3,951			4,076			4,564			4,600			5,790			4,421			5,916			5,824
		Gross profit margin (%)	46.5%	44.2%	41.2%	42.4%	54.2%	56.4%	53.1%	52.4%	55.0%
	SG&A expenses			1,666			1,662			1,614			1,707			1,754			1,746			1,773			2,684			2,924
		Employee Benefit Services +
		Individual Benefit Services +	1,999	2,074	2,098	2,218	2,285	2,451	2,153	2,595	2,315
		CRM
		Incentive	233	291	161	290	269	216	127	169	214
		Healthcare	29	50	264	413	792	1,882	896	987	1,150
		Purchase and	16	4	22	31	17	15	28	36	20
		Settlement Service
		Payment	-		-	-		-			▲23		▲17		▲14		▲8		▲16
		Overseas		▲37		▲25		▲20		▲22		▲41		▲33		▲31		▲65		▲84
		Other (company-wide		▲75		▲105		▲63		▲72		▲453		▲470		▲512		▲483		▲700
		shared expenses, etc.)
	Operating income			2,165			2,289			2,462			2,858			2,846			4,044			2,647			3,231			2,899
		Operating income margin (%)	26.3%	25.6%	24.9%	26.5%	33.6%	39.4%	31.8%	28.6%	27.4%
	Ordinary income			2,179			2,307			2,474			2,898			2,877			4,010			2,664			3,274			2,943
		Ordinary income margin (%)	26.4%	25.8%	25.0%	26.9%	33.9%	39.1%	32.0%	29.0%	27.8%
	Net income attributable to			1,489			1,582			1,701			1,994			2,051			2,774			1,837			2,286			1,999
	owners of parent
		Net income margin (%)	18.1%	17.7%	17.2%	18.5%	24.2%	27.0%	22.1%	20.2%	18.9%

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

４．Quarterly member count by business

						ＦＹ03/21							ＦＹ03/22				ＦＹ03/23
	Ten thousand members
		Jun.		Sep.			Dec.		Mar.			Jun.		Sep.		Dec.		Mar.		Jun.
		Employee Benefit	590	624	624	621	634	635	893	893	908
		Services
		Individual Benefit	125	120	115	111	106	101	105	96	84
		Services
		CRM	124	124	125	130	127	127	139	141	137
	Total members		839		868			864		862			867		863		1,137		1,130		1,129

５．Various service numbers in the Healthcare business

		ＦＹ03/21			ＦＹ03/22		ＦＹ03/23
(10,000 cases)
1Ｑ	2Ｑ	3Ｑ	4Ｑ	1Ｑ	2Ｑ	3Ｑ	4Ｑ	1Ｑ
Health checkup: number of	1	28	16	13	16	25	14	9	17
consultations *Note 1
Specific health guidance: number of initial
	1	2	3	4	3	3	3	4	2
consultations *Note 2
COVID-19 vaccinations *Note 3	-	-	-	-	34	72	25	26	19

Note 1: "Health checkup: number of checkups" refers to the number of health checkups for which Benefit One made appointments on behalf of service members.

Note 2: "Specific health guidance: number of initial consultations" refers to the number of initial consultations members eligible for this service had with specialist staff.

Note 3: "COVID-19 vaccinations" refers to the number of COVID-19 vaccinations that were arranged by the Company and administered by municipal governments or at workplaces.

6. Qualitative information regarding consolidated operating performance forecast

(April 1, 2022-March 31, 2023)

Progress achieved during Q1 FY03/23 varied by business, but overall performance was generally strong. Depending on socioeconomic trends stemming from subsequent waves of COVID-19, the Company could, moving forward, observe fluid fluctuation in impact from factors such as recovery in service utilization among members in the Employee Benefit Services business and in the Healthcare business, circumstances surrounding administration of the fourth and following rounds of COVID-19 vaccines. However, forecasting the impact of fluctuations in these factors is prohibitively difficult at this point in time, so we have maintained our operating performance projections for 1H and full-year FY03/23 as previously announced on May 10, 2022.

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, 2022. 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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