Shunichiro Ninomiya, President
Honyaku Center Inc.

For the nine-month period ended December 31, 2023, the Honyaku Center Group (Group) posted net sales of 8,323 million yen, up 3.2% on a year-on-year basis, as the Temporary Staffing Business, the Interpretation Business and the Convention Business saw growth, while sales slightly declined in the Translation Business, which is the core business. In terms of profit, the Group posted operating income of 578 million yen, down 6.9% on a year-on-year basis; ordinary income of 597 million yen, down 4.7% on a year-on-year basis; and net income attributable to the parent company’s shareholders of 400 million yen, down 4.2% on a year-on-year basis due to increased selling, general and administrative expenses, mainly personnel expenses.

Financial results forecasts for the fiscal year ending March 31, 2024

For the fiscal year ending March 31, 2024, the Group expects net sales of 11,550 million yen, up 5.5% on a year-on-year basis; operating income of 1,000 million yen, up 7.6% on a year-on-year basis; ordinary income of 1,020 million yen, up 6.1% on a year-on-year basis; and net income attributable to the parent company’s shareholders of 700 million yen, up 1.9% on a year-on-year basis.

Dividend forecasts for the fiscal year ending March 31, 2024

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, 2024 is 50 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.

The 5th Medium-Term Management Plan (FY2022 - FY2024)

The Group formulated its 5th Medium-Term Management Plan (from the fiscal year ended March 31, 2023 to the fiscal year ending March 31, 2025) in May 2022.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.

February 2024
Shunichiro Ninomiya, President