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To our shareholders and investors,
Business Results for 3Qof FY2016

Ikuo Higashi, President, Honyaku Center Inc.

Ikuo Higashi, President
Honyaku Center Inc.

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.

In the third quarter of fiscal 2016, the Group posted net sales of 7.752 billion yen (up 15.3% year-on-year), with operating income of 570 million yen (up 64.6%) and ordinary income of 583 million yen (up 70.0%). Net income attributable to the parent's shareholders was 362 million yen (up 18.6%). Earnings in the core translation business rose steadily, and sales revenue increased sharply in the convention business due to the operation of conferences, including major international conferences, which contributed to the Group's profitability.

Business Results Forecast for FY2016

The Group projects that net sales and income for fiscal 2016 will mark record-highs. Specifically, projections are net sales of 9.95 billion yen (up 8.4% year-on-year), with operating income of 720 million yen (up 34.6%) and ordinary income of 720 million yen (up 34.7%). Net income attributable to the parent's shareholders is expected to be 465 million yen (up 8.0%). There have been no changes to the business results forecast since our upward revision made in the second quarter of fiscal 2016.

In addition to the slowdowns in emerging economies and the fallout from Brexit, the effects of the U.S. presidential election results among other factors have heightened uncertainty in overseas economies, creating an environment in which optimism about Japan's economic prospects is difficult. Against the backdrop of this economic environment, we will strive to meet our customers' needs using our high-level expertise, the Company's strength, to ensure orders received and further increase profitability.

Third Mid-term Management Plan (for fiscal 2015 to 2017)

The Group, under the Third Mid-term Management Plan with the fiscal year ending March 2018 as the final year, will implement the strategy for specializing each 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 billion yen, operating income of 750 million yen. As for management indicators, we aim to achieve an operating income margin of 8% by increasing sales and improving profitability and return on equity (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.


February 2017
Ikuo Higashi, President

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