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To our shareholders and investors,
Ikuo Higashi, President
Honyaku Center Inc.

Business Results for 2Q of FY2015

We would like to express our sincere gratitude to all shareholders and investors for their continued warm support and encouragement of the Honyaku Center Group.

On November 10, the Honyaku Center Group announced its business results for the second-quarter cumulative period of the fiscal year ending March 2016.

The Group posted net sales of 4,262 million yen (down 2.2% year-on-year) for the second-quarter cumulative period of fiscal 2015, with operating income at 134 million yen (down 12.9%), ordinary income at 126 million yen (down 19.4%) and net income attributable to the parent's shareholders at 61 million yen (down 28.9%).Although revenue from the translation business operated by Honyaku Center increased, both sales and profits declined on a consolidated basis due mainly to a drop in revenue at the temporary staffing business resulting from the sale of a subsidiary relating to personnel referral in March. The decreases in both sales and profits for the second-quarter cumulative period have been taken into account in the initial plan, and both sales and profits remain almost as planned on a full-year basis.

Business Results Forecast for FY2015
The Group's business results forecast for the fiscal year ending March 2016 remains unchanged from the initial plan, and the Group projects that it will achieve record highs in both sales and profits as it did in fiscal 2014. Specifically, net sales are expected to be 9,500 million yen (up 3.3% year-on-year), operating income is forecast to be 550 million yen (up 8.9%), ordinary income is projected to be 550 million yen (up 9.4%) and net income attributable to the parent's shareholders is estimated to be 320 million yen (up 13.0%).

Third Mid-term Management Plan Announced
When it announced business results for the fiscal year ended March 2015, the Group also disclosed the Third Mid-term Management Plan with the fiscal year ending March 2018 as the final year. Under the plan, which succeeded the management vision of the Second-term Management Plan, we will implement the strategy for specializing each of business fields to meet diverse and highly advanced customer needs as well as expand market share. For the fiscal year ending March 2018, our targets are net sales of 11,000 million yen, operating income of 750 million yen and net income of 450 million yen. Furthermore, we will set the consolidated operating income margin and return on equity (ROE) as management indicators, aiming to achieve the said margin of 8% by increasing sales and improving profitability and ROE of 10% or more by enhancing capital efficiency in the medium to long term.

We sincerely hope that you have gained an understanding of the Group's businesses and corporate principles, and we humbly ask for your continued support and encouragement going forward.

November 2015

Ikuo Higashi, President

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