Shunichiro Ninomiya, President
Honyaku Center Inc.

For the fiscal year ended March 31, 2026, the Honyaku Center Group posted net sales of 10,871 million yen, down 3.0% 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 705 million yen, down 20.7% on a year-on-year basis due to a decrease in gross profit resulting from lower net sales despite Group-wide efforts to reduce costs; ordinary income of 748 million yen, down 17.3% on a year-on-year basis; and net income attributable to the parent company’s shareholders of 462 million yen, down 36.1% on a year-on-year basis, reflecting the absence of the gain on sale of shares of subsidiaries and compensation for the forced relocation of the Tokyo head office recorded in the previous fiscal year.

Financial results forecasts for the fiscal year ending March 31, 2027

For the financial results forecasts for the fiscal year ending March 31, 2027, the Group expects net sales of 11,300 million yen, up 3.9% on a year-on-year basis; operating income of 750 million yen, up 6.2% on a year-on-year basis; ordinary income of 780 million yen, up 4.1% on a year-on-year basis; and net income attributable to the parent company’s shareholders of 500 million yen, up 8.1% on a year-on-year basis.

Dividends for the fiscal year ended March 31, 2026 and dividend forecast for the fiscal year ending March 31, 2027

Based on the changes to the shareholder return policy described below, the Company will increase the dividend per share for the fiscal year ended March 31, 2026 by 65 yen to 140 yen per share. For the fiscal year ending March 31, 2027, the Company plans to pay a dividend of 140 yen per share.

Changes to the shareholder return policy

The Company regards the return of profits to shareholders as a significant management issue, and has been paying dividends in accordance with its current dividend policy, comprehensively taking into account various factors such as trends in financial results, financial condition, and future investment plans for its businesses. To further enhance the return of profits to shareholders and improve capital efficiency, the Company has decided to set a “dividend on equity ratio (DOE) of 6% or more” and a “total payout ratio of 100% or more” as its shareholder return policy under the Medium-Term Management Plan covering the period from the fiscal year ended March 31, 2026 to the fiscal year ending March 31, 2028 (the “Medium-Term Management Plan”). This policy change will be applied from the year-end dividend for the fiscal year ended March 31, 2026.

Revision of the financial targets set forth in the Medium-Term Management Plan

In light of the financial results for the fiscal year ended March 31, 2026, the Company revised its consolidated financial targets set forth in the Medium-Term Management Plan. Under the Medium-Term Management Plan, our basic policy is as follows: “We at the Honyaku Center Group aim to become the most reliable language service partner for our corporate clients. We will do this by providing language services required in the digital age through the use of translators and interpreters who are experts in specialized fields and using our wealth of language assets accumulated on a daily basis.” The Company expects demand for language services rooted in the fields of expertise it focuses on to remain strong over the long term, and it will maintain this basic policy under the revised plan. In order to respond to the rapidly changing business environment, the Company will further push forward each of the priority measures.

Ｍay 2026
Shunichiro Ninomiya, President