Benefit One Inc. TSE 1, Security Code: 2412 https://corp.benefit-one.co.jp/

February 1, 2022

Operating Performance at Benefit One for the First Nine Months of the Fiscal

Year Ending March 2022 (cumulative Q3 FY03/22)

Summary of Consolidated Operating Results for cumulative Q3 FY03/22

The Healthcare business contributed significantly to overall performance; consolidated operating income up 37.9%

  • COVID-19vaccination support operations expanded in the Healthcare business, boosting consolidated earnings.
  • Towards the end of 2021, member usage of services provided through the Employee Benefit Services business grew, and rebate-related expenditures were on the rise.
  • With the conversion of JTB Benefit Service, Inc. into a subsidiary, total member count exceeded 10 million(Note 1). This change will be reflected in the Company's consolidated income statement starting in Q4.
  • The Company's adoption of new accounting standards had a downward impact of ¥5,835 million on sales and an insignificant impact on income.
  • The Company has made no changes to the full-year projections it announced on May 12, 2021.

Note 1: Total number of members including Employee Benefit Services members, Individual Benefit Services members, and CRM

members.

1. Consolidated operating performance in cumulative Q3 FY03/22 (April 1-December31, 2021)

Nine months ended

Nine months ended

YoY

Full-year forecast

December 31, 2020

December 31, 2021

(Millions of yen)

% of

% of

Progress

Amount

Amount

Change

%

Amount

vs.

sales

sales

forecast

Sales

27,074

-

27,068

-

▲5

▲0.0%

37,310

72.6%

Cost of sales

15,215

56.2%

12,256

45.3%

▲2,959

▲19.5%

-

-

Gross profit

11,858

43.8%

14,812

54.7%

+2,954

+24.9%

-

-

SG&A expenses

4,942

18.3%

5,274

19.5%

+332

+6.7%

-

-

Operating income

6,916

25.5%

9,538

35.2%

+2,621

+37.9%

11,750

81.2%

Ordinary income

6,960

25.7%

9,552

35.3%

+2,591

+37.2%

11,830

80.7%

Net income attributable

4,772

17.6%

6,663

24.6%

+1,890

+39.6%

8,120

82.1%

to owners of parent

Note 2: The Company's application of the Accounting Standard for Revenue Recognition from the start of FY03/22 had downward impacts of ¥5,835 million on sales, ¥5,821 million on cost of sales, and ¥14 million on income.

1

Benefit One Inc. TSE 1, Security Code: 2412 https://corp.benefit-one.co.jp/

２．Performance of Major Businesses (April 1, 2021-December 31, 2021)

(Millions of yen)

Sales

YoY

Operating

YoY

Reasons for change

Change

%

income

Change

%

Employee Benefit

13,075

▲279

▲2.1%

Recovery

in member service

Services

usage; increase in rebate-

Individual Benefit

1,444

▲134

▲8.5%

related expenditures

Services

Sales impact of change in

6,889

+718

+11.6%

accounting

standards: -¥368

million

CRM

328

+7

+2.3%

Income impact of changes in

the allocation

method

for

companywide

shared

expenses: +¥928 million

Incentive

2,586

▲323

▲11.1%

612

▲73

▲10.7%

Decline in service usage from

major existing clients

Contribution from expansion in

COVID-19 vaccination support

Healthcare

7,441

+561

+8.1%

3,570

+3,227

+942.3%

services

Sales impact of change in

accounting standards: -¥5,467

million

Continued to incur COVID-19-

Purchase and

477

▲27

▲5.3%

60

+18

+44.0%

related impact despite

Settlement Service

recovery in the use of the

service on business trips

Launch of Kyutokubarai and

Payment

8

+1

+21.6%

▲54

▲59

-

upfront spending associated

with the launch

Transactions with existing

Overseas

1,080

+97

+9.8%

▲105

▲23

-

customers strong despite

COVID-19-related impact

Increase

in

expenses

Other (company-wide

629

+92

-

▲1,434

▲1,187

-

stemming

from

changes

in

shared expenses, etc.)

expense allocation method

Total

27,068

▲5

▲0.0%

9,538

+2,621

+37.9%

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Benefit One Inc. TSE 1, Security Code: 2412 https://corp.benefit-one.co.jp/

３．Performance of Major Businesses, by Quarter

ＦＹ03/20

ＦＹ03/21

ＦＹ03/22

(Millions of yen)

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

Employee Benefit

4,359

4,471

4,396

4,484

4,441

4,443

4,470

4,577

4,372

4,344

4,359

Services

Individual Benefit

647

650

628

589

539

536

503

478

498

484

462

Services

CRM

130

114

103

142

109

111

101

151

109

110

108

Incentive

1,295

770

630

986

995

1,120

794

1,048

981

921

683

Healthcare

1,837

2,711

2,737

3,313

1,616

2,123

3,141

3,486

1,811

3,733

1,897

Purchase and

189

187

179

195

160

162

182

191

165

161

150

Settlement Service

Payment

-

-

-

-

-

-

-

-

3

2

3

Overseas

107

253

227

268

230

331

422

441

348

293

438

Other

115

122

205

233

158

115

271

395

196

217

219

Sales

8,679

9,278

9,105

10,210

8,248

8,941

9,884

10,767

8,483

10,265

8,319

Gross profit

3,553

3,406

3,754

4,089

3,832

3,951

4,076

4,564

4,600

5,790

4,421

Gross profit margin (%)

40.9%

36.7%

41.2%

40.0%

46.5%

44.2%

41.2%

42.4%

54.2%

56.4%

53.1%

SG&A expenses

1,636

1,560

1,562

1,649

1,666

1,662

1,614

1,707

1,754

1,746

1,773

Employee Benefit

Services + Individual

1,624

1,605

1,849

1,801

1,999

2,074

2,098

2,218

2,285

2,451

2,153

Benefit Services + CRM

Incentive

289

127

122

252

233

291

161

290

269

216

127

Healthcare

85

233

325

489

29

50

264

413

792

1,882

896

Purchase and

34

21

22

32

16

4

22

31

17

15

28

Settlement Service

Payment

-

-

-

-

-

-

-

-

▲23

▲17

▲14

Overseas

▲75

▲66

▲48

▲42

▲37

▲25

▲20

▲22

▲41

▲33

▲31

Other (company-wide

▲41

▲74

▲78

▲92

▲75

▲105

▲63

▲72

▲453

▲470

▲512

shared expenses, etc.)

Operating income

1,916

1,846

2,192

2,440

2,165

2,289

2,462

2,858

2,846

4,044

2,647

Operating income margin

22.1%

19.9%

24.1%

23.9%

26.3%

25.6%

24.9%

26.5%

33.6%

39.4%

31.8%

(%)

Ordinary income

1,925

1,870

2,208

2,459

2,179

2,307

2,474

2,898

2,877

4,010

2,664

Ordinary income margin

22.2%

20.2%

24.3%

24.1%

26.4%

25.8%

25.0%

26.9%

33.9%

39.1%

32.0%

(%)

Net income attributable

1,314

1,289

1,504

1,534

1,489

1,582

1,701

1,994

2,051

2,774

1,837

to owners of parent

Net income margin (%)

15.1%

13.9%

16.5%

15.0%

18.1%

17.7%

17.2%

18.5%

24.2%

27.0%

22.1%

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Benefit One Inc. TSE 1, Security Code: 2412 https://corp.benefit-one.co.jp/

４．Quarterly member count by business

Ten thousand

ＦＹ03/20

ＦＹ03/21

ＦＹ03/22

members

Jun.

Sep.

Dec.

Mar.

Jun.

Sep.

Dec.

Mar.

Jun.

Sep.

Dec.

Employee

513

522

522

522

590

624

624

621

634

635

893

Benefit Services

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（258）

Individual Benefit

137

141

140

134

125

120

115

111

106

101

105

Services

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（11）

CRM

119

118

117

124

124

124

125

130

127

127

139

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（12）

Total members (Note 3)

769

781

779

780

839

868

864

862

867

863

1,137

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（-）

（281）

Note 3: JTB Benefit Service, Inc.'s contributions to individual member counts are displayed in parentheses (to be reflected in the consolidated income statement starting in Q4).

５．Number of consultations in the Healthcre business

ＦＹ03/20

ＦＹ03/21

ＦＹ03/22

(10,000 cases)

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

Health checkup: number of

15

23

13

10

1

28

16

13

16

25

14

consultations(Note 4)

Specific health guidance: number of

2

2

3

4

1

2

3

4

3

3

3

initial consultations(Note 5)

COVID-19 vaccinations(Note 6)

-

-

-

-

-

-

-

-

34

72

25

Note 4: "Health checkup: number of checkups" refers to the number of health checkups for which Benefit One made appointments on behalf of service members.

Note 5: "Specific health guidance: number of initial consultations" refers to the number of initial consultations members eligible for this service had with specialist staff.

Note 6: "COVID-19 vaccinations" refers to the number of COVID-19 vaccinations that were arranged by the Company and administered by municipal governments or at workplaces.

4

Benefit One Inc. TSE 1, Security Code: 2412 https://corp.benefit-one.co.jp/

６．Qualitative information regarding consolidated operating performance forecast (April 1,

2021-March 31, 2022)

(Assumptions underlying the forecast as of the date of its release on May 12, 2021)

In the operating performance forecast for the fiscal year ending March 2022 (FY03/22) announced on May 12, 2021, we expected the impact of the COVID-19 pandemic on the service usage by members in the Employee Benefit Services business and the use of the service on business trips in the Purchase and Settlement Service business would gradually dissipate over the second half of the fiscal year. We did not anticipate the pandemic to have a significant impact on other businesses, and formulated the forecast based on the assumption that transactions and profit would increase primarily in the Healthcare business.

(Consolidated operating results for cumulative Q3)

In the Employee Benefit Services business, recovery in member usage of services was initially hampered by states of emergency issued in response to the COVID-19 pandemic, but we began to observe steady recovery from October 2021 once the state of emergency was lifted. Meanwhile, in the Healthcare business, contribution from COVID-19 vaccination support operations expanded, driving overall growth in consolidated income.

(Assumptions for operating performance outlook going forward)

We project ongoing recovery in member usage of services offered through our Employee Benefit Services business, and through our Healthcare business, we expect to provide additional support for the third dose of COVID-19 vaccinations moving forward. However, we also acknowledge that these projections, as well as performance in other business areas, could be affected by changing trends associated with the COVID-19 pandemic. We plan to begin reflecting financial results generated through JTB Benefit Service, Inc. (acquired as a subsidiary on October 29, 2021) within our consolidated income statement in Q4. The Company projects that JTB Benefit Service's impact on FY03/22 consolidated financial results will be limited because its period of inclusion within these results will be short and synergies stemming from its organizational integration are not anticipated until FY03/23.

In light of these factors, we have maintained the full-year projections we previously released on May 12, 2021.

These materials are intended to provide information pertaining to financial results. They are not intended to solicit investments in securities issued by the Company. These materials were prepared on the basis of data as of December 31, 2021. Accordingly, opinions or forecasts contained in these materials are based on the judgment of the Company as of the date the materials were prepared. The Company makes no guarantees or pledges as to the accuracy or completeness of this information. Furthermore, this information may be changed without notice.

IR contact: Corporate Planning Division

TEL：03-6870-3802／MAIL：ir_inquiry@benefit-one.co.jp

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Benefit One Inc. published this content on 03 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 February 2022 03:18:08 UTC.