Benefit One : Summary of Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2022（July 29, 2021）

Summary of Consolidated Financial Results for the First Three Months of the

Fiscal Year Ending March 31, 2022 (Q1 FY03/22) [Japanese Standard]

July 29, 2021

Name of listed company:

Benefit One Inc.

Listed exchange:

Tokyo Stock Exchange

Stock exchange code:

2412

URL

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

Representative:

(Title) President & COO

(Name) Norio Shiraishi

Contact:

(Title) Managing Director

(Name) Kenji Ozaki

(TEL) [phone]

Quarterly securities report to be submitted on:

August 13, 2021

Dividend payment to start on:

-

Quarterly results supplementary material: Yes

Quarterly results briefing: No

(Rounded down to the nearest million yen)

1. Q1 FY03/22 consolidated operating performance (April 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)

(% shows increase/decrease rate from Q1 of FY03/21)

Net income

Sales

Operating income

Ordinary income

attributable to owners

of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Q1 FY03/22

8,483

2.8

2,846

31.4

2,877

32.1

2,051

37.8

Q1 FY03/21

8,248

△5.0

2,165

13.0

2,179

13.2

1,489

13.3

Note: Comprehensive income	Q1 FY03/22 ¥2,112	million (26.8 %)	Q1 FY03/21 ¥1,665 million (12.8 %)
	Net income per share	Diluted net income
		per share
		Yen Sen		Yen Sen
Q1 FY03/22		12.89		-
Q1 FY03/21		9.36		-
(2) Consolidated financial position
		Total assets		Net assets	Equity ratio
		Millions of yen		Millions of yen	%
Q1 FY03/22		32,830		17,192	52.4
FY03/21		36,171		19,865	54.9

Ref. Equity capital Q1 FY03/22 ¥17,192 million FY03/21 ¥19,865 million

Note: Effective from the beginning of the Q1 FY03/22 consolidated accounting period, the Company has applied the Accounting Standard for Revenue Recognition, etc. and recognized its revenue based on the standard, etc. For details, see "(3) Notes on the quarterly consolidated financial statements (Changes of the accounting policy)" on page 8 of the appendix.

2. Dividends

				Annual dividend
	End of Q1	End of Q2	End of Q3		End of FY	Total
	Yen Sen	Yen Sen	Yen Sen		Yen Sen	Yen Sen
FY03/21	-		0.00	-		30.00	30.00
FY03/22	-
FY03/22 (forecast)			0.00	-		36.00	36.00

Note: Correction from the most recently announced dividend forecast: No

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

(% shows QoQ and YoY increase/decrease rate, respectively.)

								Net income	Net income per
	Sales		Operating income	Ordinary income	attributable to
		share
								owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen Sen
Q2 (cumulative)	17,670		2.8	5,280	18.5	5,330	18.8	3,630	18.2	22.81
Full-year	37,310		△1.4	11,750	20.2	11,830	20.0	8,120	20.0	51.03

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Note: Correction from the most recently announced performance forecasts: No

Effective from the beginning of the Q1 FY03/22 consolidated accounting period, Benefit One has applied the Accounting Standard for Revenue Recognition, etc. and the sales forecasts provided above are based on the new accounting standard. The sales forecast for FY03/22 when not applying the new accounting standard would be ¥25,140 million (up 46.2% YoY) for the second quarter (cumulative) and ¥49,200 million (up 30.0% YoY) for the full year. We do not expect any changes in the forecasts for operating income, ordinary income, and net income attributable to owners of the parent as a result of the application of the Accounting Standard for Revenue Recognition, etc.

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* Notes

(1) Important change to a subsidiary company during the cumulative

: No

quarterly consolidated accounting period

(a change to a specified subsidiary with a change of the scope of consolidation)

(2) Application of the entry under accounting methods specific to the

: No

preparation of quarterly consolidated financial statements

(3) Changes of the accounting policy, changes to accounting estimates, and restatement

1)	Changes of the accounting policy resulted from the revision of	:	Yes
	accounting standards, etc.
2)	Changes of the accounting policy other than 1)	:	No
3)	Changes to accounting estimates	:	No
4)	Restatement	:	No

Note: For details, see "2. Quarterly consolidated financial statements and major notes, (3) Notes on the quarterly consolidated financial statements (Changes of the accounting policy)" on page 8 of the appendix.

(4) Number of issued shares (common shares)

1)	Number of issued shares (including treasury	Q1 FY03/22	159,970,000	shares	FY03/21	159,970,000	shares
	shares) as of the end of the period
2) Number of treasury shares as of the end of the
Q1 FY03/22	835,204	shares	FY03/21	835,160	shares
	period
3)	Average number of shares during the period
Q1 FY03/22	159,134,832	shares	Q1 FY03/21	159,134,877	shares
	(cumulative quarterly)

Note: The Company has introduced "the Japanese version of the Employee Stock Ownership Plan (J-ESOP)" and "Board Benefit Trust (BBT)." Treasury shares remaining in "the Japanese version of the Employee Stock Ownership Plan (J-ESOP)" and "Board Benefit Trust (BBT)" that are recorded as treasury shares in shareholders' equity are included in treasury shares deducted in the calculation of the average number of shares during the period for the calculation of quarterly net income per share.

• The summary of quarterly financial results is not subject to the quarterly review by a certified public accountant or an auditing firm.
• Explanation on the appropriate use of performance forecasts and other notable matters
  ・Descriptions about the future, including performance forecasts, in this document are based on information that the Company has at present and certain assumptions judged as reasonable. The Company does not intend to promise to achieve them. Actual performance, etc. could significantly differ depending on various factors. For conditions on which performance forecasts are based and notes for the use of performance forecasts, etc. see "1. Qualitative information regarding the quarterly financial results, (3) Qualitative information regarding consolidated operating performance forecasts" on page 3 of the appendix.
• • The Company plans to post its supplementary material on quarterly financial results on the company website (https://corp.benefit-one.co.jp/ir/library/index.html).

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Contents of Appendix

1. Qualitative information regarding the quarterly financial results …………………………………………….. P.2
2. 1. Qualitative information regarding consolidated operating results……………………………………… P.2
   2. Qualitative information regarding consolidated financial position…………………………………….. P.2
   3. Qualitative information regarding consolidated operating performance forecasts…………………… P.3
3. Quarterly consolidated financial statements and major notes……………………………………………….. P.4
4. 1. Quarterly Consolidated Balance Sheet………………………………………………………………….. P.4
   2. Quarterly consolidated profit and loss statements and quarterly consolidated comprehensive income

statements…………………………………………………………………………………………………. P.6

Quarterly Consolidated Balance Sheet…………………………………………………………………… P.6

Quarterly consolidated profit and loss statements………………………………………………………	P.7
(3) Notes on the quarterly consolidated financial statements……………………………………………	P.8
(Notes on the going concern assumption)……………………………………………………………	P.8

(Notes on substantial changes in the amount of shareholders' equity)………………………………P.8

(Application of the entry under accounting methods specific to the preparation of quarterly consolidated financial statements……………………………………………………………………….. P.8

(Changes of the accounting policy) …………………………………………………………………… P.8

(Changes to accounting estimates) …………………………………………………………………… P.9

(Restatement)…………………………………………………………………………………………….. P.9

(Important subsequent events)………………………………………………………………………….. P.9

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1. Qualitative information regarding the quarterly financial results

(1) Qualitative information regarding consolidated operating results

In the Q1 FY03/22 cumulative accounting period, the Japanese economy continued to experience difficult circumstances due to the impact of COVID-19.

The impact of COVID-19 on the Company Group's performance was limited. The Company Group announced the medium-term management plan on May 12, 2021, and launched initiatives geared toward the post-pandemic society. Specifically, the Company Group began to offer the members-only ID "Bene Account" in June this year to support enterprises' HRDX. The "Bene Account" allows members to use services, including Employee Benefit Services, Healthcare, and Incentive offered by the Company Group, with a common ID. The Company Group began sequentially transferring data to Bene ONE PLATFORM for existing service users. The Company Group also launched Kyutokubarai, a new service utilizing the payroll deduction scheme, in June this year and began to offer Employee Benefit Services using the new settlement scheme.

The Company Group delivered robust performance in the Q1 FY03/22 cumulative accounting period, while implementing these medium- to long-term initiatives, by means such as launching new health support services.

In Employee Benefit Services, results were largely as planned while the business decelerated due to the COVID-19 pandemic. Regarding cost, rebate-related expenditures increased from FY03/21 due to ongoing recovery in the use of accommodation and other menus involving outings. In Healthcare, the business environment for health checkup and health guidance services was back to normal in general with an increased need for BPO (business process outsourcing) services providing a tailwind. Moreover, the Company Group launched the COVID-19 vaccine rollout support business in response to socio-economic demands, which contributed to consolidated profit growth. Other businesses are largely progressing as planned.

As a result of the above, the Company Group reported consolidated sales of ¥8,483 million (up 2.8% YoY), consolidated operating income of ¥2,846 million (up 31.4% YoY), consolidated ordinary income of ¥2,877 million (up 32.1% YoY), and net income attributable to owners of the parent of ¥2,051 million (up 37.8% YoY) for the Q1 FY03/22 cumulative accounting period.

Effective from the beginning of the Q1 FY03/22 consolidated accounting period, the Company Group has adopted the Accounting Standard for Revenue Recognition, etc. As the impact of applying the standard, etc. on the above performance, sales and cost of sales decreased by ¥1,654 million and ¥1,635 million, respectively. Operating income, ordinary income, and quarterly net profit before taxes also decreased by ¥19 million, respectively.

The Company Group is engaged in the membership service business, mainly the outsourced employee benefit service business in Japan. As a result of consolidating business segments, the segment to be reported is only the membership service business, and thus segment information is omitted.

(2) Qualitative information regarding consolidated financial position

Status of assets, liabilities, and net assets (Assets)

Total assets at the end of the Q1 FY03/22 consolidated accounting period were ¥32,830 million, a decrease of ¥3,340 million from the end of the previous consolidated fiscal year.

Current assets decreased by ¥4,014 million to ¥24,681 million. This is primarily because of a decrease in "Cash and deposits" (¥3,428 million), a decrease in "Notes, accounts receivable, and an increase in 'Contract assets - trade'" (¥1,960 million), an increase in "Accounts receivable - other" (¥1,453 million), etc.

Non-current assets increased by ¥673 million to ¥8,149 million primarily because of an increase in software (¥670 million) resulted from an investment in system equipment.

(Liabilities)

Total liabilities at the end of the Q1 FY03/22 consolidated accounting period were ¥15,638 million, a decrease of

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