Shunichiro Ninomiya, President
Honyaku Center Inc.

For the three-month period ended June 30, 2025, the Honyaku Center Group posted net sales of 2,669 million yen, down 1.7% on a year-on-year basis, as the performance of the Translation Business, which is the core business, struggled due to uncertainties about U.S. trade policy, although the Interpretation Business reached a record high. In terms of profit, the Group posted operating income of 212 million yen, up 22.3% on a year-on-year basis, as selling, general and administrative expenses decreased on a year-on-year basis as a result of Group-wide efforts to cut costs; ordinary income of 219 million yen, up 24.8% on a year-on-year basis due to an increase in the share of profit of entities accounted for using the equity method and a decline in foreign exchange losses; and net income attributable to the parent company’s shareholders of 142 million yen, up 26.8% on a year-on-year basis.

Financial results forecasts for the fiscal year ending March 31, 2026

For the financial results forecasts for the fiscal year ending March 31, 2026, the Group expects net sales of 11,400 million yen, up 1.6% on a year-on-year basis; operating income of 900 million yen, up 1.0% on a year-on-year basis; ordinary income of 920 million yen, up 1.5% on a year-on-year basis; and net income attributable to the parent company’s shareholders of 630 million yen, down 12.9% on a year-on-year basis.

Dividend forecasts for the fiscal year ending March 31, 2026

The Group recognizes the return of profits to shareholders to be a significant managerial issue, and sets the basic policy of distributing profits by comprehensively taking into account stable dividends and internal reserves for future business expansion, aiming for a consolidated dividend payout ratio of 35%. Based on this basic policy, the Company plans to pay a dividend of 75 yen per share for the fiscal year ending March 31, 2026, the same amount as the previous fiscal year, taking into consideration the financial position, profit level, and other factors comprehensively.

The 6th Medium-Term Management Plan (FY2025 - FY2027)

In May 2025, the Company formulated the “6th Medium-Term Management Plan” (covering the period from the fiscal year ending March 31, 2026, to the fiscal year ending March 31, 2028). We aim to become the most reliable language service partner for our clients by providing language services required in the digital age through the use of translators and interpreters who are experts in specialized fields and our wealth of language assets accumulated on a daily basis.

August 2025
Shunichiro Ninomiya, President