TO OUR SHAREHOLDERS AND INVESTORS,
THE FISCAL YEAR ENDED MARCH 31, 2022
For the fiscal year ended March 31, 2022, the Honyaku Center Group (Group) posted net sales of 10,337 million yen, up 4.3% on a year-on-year basis, as the Translation Business, which is the core business, stayed on a recovery track and performed well, and the Interpretation Business and the Language Education Business recorded results that exceeded the same period of the previous year. In terms of profit, the Group experienced a significant increase in profit, posting operating income of 811 million yen, up 94.0% on a year-on-year basis; ordinary income of 841 million yen, up 80.8% on a year- on-year basis; and net income attributable to the parent company’s shareholders of 573 million yen, up 387.0% on a year-on-year basis due to higher net sales in the Translation Business and an improved gross profit ratio as a result of an increase in productivity.
Financial results forecasts for the fiscal year ending March 31, 2023
For the fiscal year ending March 31, 2023, the Group expects net sales of 11,100 million yen, up 7.3% on a year-on-year basis; an operating income of 910 million yen, up 12.1% on a year-on-year basis; an ordinary income of 920 million yen, up 9.3% on a year-on-year basis; and net income attributable to the parent company’s shareholders of 620 million yen, up 8.1% on a year-on-year basis.
The 5th Medium-Term Management Plan (FY2022 - FY2024)
The Honyaku Center Group has formulated its 5th Medium-Term Management Plan for the three years from the fiscal year ending March 31, 2023 to the fiscal year ending March 31, 2025. The Group will continue to work toward the management vision of being a “language concierge that connects all companies to the world,” and will aim to be a company that offers high added value and responds to the increasingly diversified and sophisticated needs of customers. The Group has set consolidated operating margin and return on equity (ROE) as management indicators and will achieve, in the mid- to long-term, an operating margin of 9% through increasing sales and profit and an ROE of 12% through the improvement of capital efficiency.
Dividend forecasts for the fiscal year ending March 31, 2023
The Group recognizes the return of profits to shareholders to be a significant managerial issue, and sets the appropriation of profits in accordance with its performance as one of the basic policies of the Group. The dividend forecast for the fiscal year ending March 31, 2023 is 45 yen per share, up 5 yen on a year-on-year basis, considering the financial condition and profit level in a comprehensive manner while securing retained earnings necessary for capital spending to develop future businesses and strengthen the business structure.