【英語版】FY2016 2Q Financial Results(November …...* The number of dues-paying members in...

Copyright © 2016 Benefit one Inc. All Rights Reserved 0

FY2016 2Q

Financial Results Benefit One Inc.

Listed on second section of TSE (2412)

November 1, 2016

http://www.benefit-one.co.jp/


1. Summary of the Results for FY2016 Q2

Contents

2. Future Growth Strategy

3. DATABOOK

… p . 2 - 1 6

… p . 1 7 -4 3

… p . 44 -59




3. DATABOOK


+790 million yen vs. plan (+45.6%)

+2.40 billion yen year-on-year

(+20.1%)

Financial Highlights for FY2016 2Q (year-to-date)

Sales

Ordinary income

14.35 billion yen

2.50 billion yen

Operating income

2.52 billion yen

Summary of the Results


+1 billion yen year-on-year

(+65.9%)


+1.03 billion yen year-on-year

(+70.4%)


Year-on-

year

Major factors for 1 billion yen increase YoY in operating income


Welfare Program / Personal / CRM * Members and fee revenue increased, and operation

streamlining progressed. +770 million yen

Healthcare Both health checkups and other health programs

increased, and operation streamlining progressed. +130 million yen

Incentive Points accumulated from the previous term were

actively exchanged. +100 million yen

Overseas bases Gross profit increased in Thailand while SG&A was

curbed. +30 million yen

Other businesses (BTM, cost reduction, etc.) -30 million yen

* The category method are changed. See page 6 for details.


Major factors for 800 million yen increase vs. plan in operating income


Vs. plan

Welfare Program / Personal / CRM * Revenue from welfare program membership fees

increased while supplemental payment to users,

promotion expenses, and SG&A were lower than the

plan.

+600 million yen

Healthcare Orders were implemented ahead of schedule. +160 million yen

Incentive Point grant and point exchange were promoted. +80 million yen

Overseas bases SG&A was controlled. +10 million yen

Other businesses (BTM, cost reduction, etc.) -50 million yen

* The category method are changed. See page 6 for details.


87.195.9 95.0

15.4 17.0 23.0

17.6% 17.7%24.2%

0%

5%

10%

15%

20%

25%

30%

0

20

40

60

80

100

120

1H Plan Actual

Sales Operating income Operating income ratio

① Welfare Program + Personal + CRM

Sales for 1H 9.50 billion yen/Operating income for 1H 2.30 billion yen

+9.0% YoY, -1.0% vs. Plan +49.9% YoY, +35.3% vs. Plan

First half summary

・ Members and membership fee revenue increased.

・ The cost ratio decreased (55.4% to 50.2%), resulting from further operation streamlining.

Ye

ar-

on-y

ear

Vs. P

lan

・ Sales did not achieve the plan because the number of new personal members fell short of

the plan.

・ Operating income exceeded the plan by 600 million yen as a result of controlling

supplemental payment to users and other expenses.

●1H business results (Unit: 100 million yen) <Consolidated report on operating income>

Welfare Program business, Personal business, and CRM business

increasingly share the Benefit Station platform. Thus, there is a

possibility that the actual operating income of respective businesses

may not be correctly calculated due to the allocation of service

development expenses, system development expenses, operation

costs, etc. For this reason, we consolidate operating income from these

three businesses.

Thank you for your understanding.

* For the transition of business results after category change, see

pages 58 and 59 of the DATABOOK.


31.3

42.847.7

12.2 15.423.0

0

10

20

30

40

50

60

FY14 FY15 FY16

Actual for full-term (projected figures for FY16)

1H actual

326 347 379 406 420 450

243 153 160 141 137 15068

91147 227 223

400638 591

686774 780

1,000

0

200

400

600

800

1,000

1,200

13/4 14/4 15/4 16/4 16/9 17/4(Initial plan)

Welfare Program CRM Personal

Sales plan for full term 20.09 billion yen/Operating income plan 4.77 billion yen

Second half measurements

+11.8% YoY +11.4% YoY

▪ Increase sales by 2.11 billion yen year on year by increasing members.

▪ Increase profitability by controlling supplemental payment to users and other

expenses.

Keep the cost growth rate at 9.9% while increasing sales by 11.8%.

▪ The operating income ratio is 24.2%, up 0.4 points YoY.

●Performance (Unit: 100 million yen) ●Total members (Unit: 10 thousand persons)

① Welfare Program + Personal + CRM

Progress rate: 48.3%

* The number of dues-paying members in April 2016 was updated from the forecasted 7.85 million persons to the

actual 7.74 million persons. (Personal: 2.33 to 2.27 million persons / CRM: 1.46 to 1.41 million persons)

※


69.1 70.9 71.1

0.0

20.0

40.0

60.0

80.0

100.0

Previous Term Plan Actual

387417 420

0

100

200

300

400

500


Welfare Program,

75%

Personal, 22%

CRM, 3%

●Personal membership, end of Sep. (Unit: 10,000 persons) ●Sales for 1H (Unit: 100 million yen)

▪ Membership fee revenue increased, resulting from

membership increase of 330 thousand persons.

▪ Labor cost decreased, resulting from lower supplemental

payment to users and operation streamlining.

Sales for 1H 7.11 billion yen

+3.0% YoY, +0.3% vs. Plan

First half summary

+330,000 persons YoY,

+20,000 persons vs. Plan

▪ Membership fee revenue increased, resulting from membership increase of 20 thousand

persons.

▪ Supplemental payment to users was lower than the plan by 360 million yen, and SG&A

was curbed.

● % in sales

FY15 1H FY16 1H

①-1 Welfare Program Business

+200 million yen YoY,

+20 million yen vs. Plan

Welfare Program,

79%

Personal, 18%

CRM, 3%

Ye

ar-

on-y

ear

Vs. P

lan


129.6 139.2 143.8

64.2 69.1 71.1

0

50

100

150

200

FY14 FY15 FY16


1H actual

326 347379

406 420450

0

50

100

150

200

250

300

350

400

450

500

13/4 14/4 15/4 16/4 16/9 17/4 (plan)

Sales plan for full term 14.38 billion yen


● Welfare Program membership (Unit: 10,000 persons) ● Transition of sales (Unit: 100 million yen)

Progress rate 49.5%

+140,000 persons

vs. Apr ‘16

+300,000 persons vs. Sep ‘16

+3.3% YoY

①-1 Welfare Program Business

▪ The number of members is expected to steadily increase.

▪ “Yahoo! Welfare Program” was released in October through the alliance with

Yahoo.

Direct sales to SMEs by sales staff of the Softbank Group

▪ Promote the acquisition of SME customers through inside sales and the utilization

of agent networks.


15.6

22.521.2

0.0

5.0

10.0

15.0

20.0

25.0


188

268

223

0

100

200

300


Welfare Program, 79%

Personal, 18%

CRM, 3%

●Personal membership, end of Sep. (Unit: 10,000 persons)

Sales for 1H 2.12 billion yen

+36.3% YoY, -5.9 % vs. Plan

▪ Sales increased by 570 million yen, resulting from a substantial membership increase.

●Sales for 1H (Unit: 100 million yen)

First half summary

+350,000 persons YoY,

-450,000 persons vs. Plan

▪ Sales fell short of the plan by 130 million yen partly due to the difference in the assumed

business environment of partner companies.

▪ Operating income is expected to exceed the forecast as a result of expense control.

FY15 1H FY16 1H

●% in sales

①-2 Personal Business

+560 million yen YoY,

-130 million yen vs. Plan

Ye

ar-

on-y

ear

Vs. P

lan

Welfare Program, 75%

Personal, 22%

CRM, 3%


18.8

35.3

51.7

7.815.6

21.2

0

20

40

60

FY14 FY15 FY16


1H actual

6891

147

227 223

400

0

50

100

150

200

250

300

350

400

450

13/4 14/4 15/4 16/4 16/9 17/4(initial plan)

Sales plan for full term 5.17 billion yen

● Welfare Program membership (Unit: 10,000 persons) ● Transition of sales (Unit: 100 million yen)


▪ The acquisition of new members in the second half will vary according to the situation.

There is no change in the medium-term target of new personal membership.

▪ Mitigate the impact of income decrease resulting from existing partner companies’

slowing membership acquisition by increasing wholesale prices.

▪ Business talks are now underway to enable new partner companies to acquire one

million members in the second half.

Progress rate 41.1%

-40,000 persons

vs. Apr ‘16

+1,770,000 persons vs. Sep ‘16

+46.2% YoY

* The number of dues-paying members in April 2016 was updated from forecasted 2.33

million persons to actual 2.27 million persons.

*

①-2 Personal Business


11.313.4

18.2

1.7 2.0 2.7

15.0% 14.7%15.0%

0%

5%

10%

15%

20%

25%

30%

0

5

10

15

20


Sales Operating income Operating income ratio

● Grant points and exchange ratio in first half

▪ Sales increased by 690 million yen, resulting from the active exchange of points accumulated

from the previous term.

▪ Operating income increased by 100 million yen, resulting from an increase in gross profit of

110 million yen.

Sales for 1H 1.82 billion yen/Operating income for 1H 270 million yen

+61.3% YoY, +35.5% vs. Plan +60.9% YoY, +37.7% vs. Plan

● Performance (Unit: 100 million yen)

First half summary

Note: Exchange ratio =cumulative exchange amount / (points carried forward as of previous term

and + cumulative grant for the term)

▪ Existing customers actively exchanged their points. Many points were granted and

exchanged in unplanned new contracts.

▪ Sales and operating income increased by 480 million yen and 80 million yen, respectively.

② Incentive Business

Ye

ar-

on-y

ear

Vs. P

lan

Previous Term Plan Actual YoY Vs plan

Balance carried forward 30.6 36.3 36.3 5.7 0.0

Grant 17.5 20.0 23.7 6.2 3.8

15.5 17.5 21.3 5.7 3.8

1.9 2.5 2.4 0.5 ▲ 0.0

Cumulative grant point 48.1 56.2 60.0 11.9 3.8

27.0% 26.7% 32.7% 5.8pt 6.0pt

(Unit: 100 million yen)

Existing

New

Exchange ratio


2.2

3.74.5

1.01.7

2.7

0

2

4

6

FY14 FY15 FY16


1H actual

6 8 14 21 23 31 36 9

16 22

23 31

3439

3

4 5

5

5

7

15 27

40 49

59 69

82

Over 100

0

20

40

60

80

100

120

FY10 FY11 FY12 FY13 FY14 FY15 FY16(Plan)

FY17(Target)

Sales plan for full term 3.07 billion yen/Operating income plan 450 million yen


● Cumulative grant points (Unit: 100 million yen) ● Transition of operating income (Unit: 100 million yen)

Progress rate 60.1%

Forwarded

(unused in

previous term)

Granted to

existing customers

Granted to new

customers

▪ The balance of points as of the end of September (= Points carried over from the previous term +

Points granted in the current term – Points exchanged in the current term) is equivalent to 3.9 billion

yen (+300 million yen from the beginning of the term).

▪ Focus on increasing point grant to new customers for the next term.

▪ Promote the development of potential customers by utilizing agents and allied

companies.

▪ Increase the exchange difference gain ratio by strengthening product purchase, etc. and

by reducing purchase prices.

+25.5% YoY +36.6% YoY

First half cumulative points:

6 billion yen

(+380 million yen vs. Plan)

② Incentive Business


14.616.6

22.2

▲ 0.7 ▲ 1.0

0.6

(5)

0

5

10

15

20

25


Sales Operating income

7.5 10.113.8

5.95.8

7.3

1.20.7

1.0

0

5

10

15

20

25


Health checkup Health guidance Others

▪ Sales increased by 760 million yen, resulting from a substantial increase in health checkups

and health guidance.

▪ Operating income increased by 130 million yen, resulting from improvement of operational

efficiency and reduction of the cost ratio and SG&A.

Sales for 1H 2.22 billion yen/Operating income for 1H 60 million yen

+52.0% YoY, +33.8% vs. Plan

First half summary

● Sales breakdown (Unit 100 million yen) ● 1H performance (Unit: 100 million yen)

+130 million yen YoY, +160 million yen vs. Plan

▪ Some second-half orders were recorded for the first half since they were implemented

ahead of schedule.

▪ Sales and operating income increased by 560 million yen and 160 million yen, respectively,

partly because of the impact of orders carried over from the previous term.

③ Healthcare Business

Ye

ar-

on-y

ear

Vs. P

lan


1.0

2.7

1.5

▲ 0.2 ▲ 0.7

0.6

▲ 1.0

0.0

1.0

2.0

3.0

FY14 FY15 FY16


1H actual

Sales plan for full term 4.51 billion yen/Operating income plan 150 million yen


● Outline of “Health Point” services ● Transition of operating income/loss (Unit: 100 million yen)

+6.0% % YoY +180 million yen YoY

▪ Increase health guidance in the second half by securing health counselors and

strengthening matching in response to the strong needs for health guidance, etc.

▪ Promote improvement of operational efficiency by such means as IT investment for

data input.

▪ Promote health point sales promotion targeting National Health Insurance and

independent company health insurances.

Progress rate39.9% Smoking

cessation Running Sports Diet

③ Healthcare Business


Sales for 1H 200 million yen / Operating income for 1H -80 million yen

Country Business Measures, situation, etc.

China Incentive Surplus has yet to be achieved. However, customers were steadily acquired

and sales increased.

USA Incentive The strategy was shifted from a focus on Japanese companies to the

incorporation of local companies. Informal approval was acquired.

Singapore Welfare Program / Incentive / CRM Incentive business promotion was started in collaboration with Rewardz. Sales

will be recorded from October.

Thailand Incentive Surplus was achieved in the first half as a result of sales to Thailand Tobacco

Monopoly.

Indonesia Incentive Orders and informal approval were acquired from both Japanese and local

companies.

Germany Incentive An informal order was acquired from a local bank for the first time, in addition to

an order from a manufacturer.

+108.7%YoY, -6.6% vs. Plan +30 million yen YoY, +10 million yen vs. Plan

④ Overseas Business (excluding Taiwan accounted for by the equity method)

Sales plan for full term 700 million yen / Operating income plan -120 million yen

+349.0% YoY +100 million yen YoY




3. DATABOOK


“Creation of Service Distribution”

Service matching site that charges users

Distribution of services Distribution of goods

Warehouse store for members only Internet shopping mall for members only

Management Prospect


Benefit One 20th anniversary: Toward the second stage of Internet services

Conventional Future

Rise of full-scale,

Advertising

revenue

Revenue

from flat-rate

fee

Hotel and air ticket ⇒ Expansion to other industries such as gourmet,

entertainment, and healthcare

Business Model That Has Room to Grow


User

Supplier Supplier

User

Ad revenue

Commission

Revenue from

flat-rate fee

Fee-charging

matching site Ordinary, charge-free

matching site

Flat-rate fee model charging users (Subscription)

Advertising

revenue

Revenue from

flat-rate fee

Business Model Since Foundation


Pass savings onto users.

Wholesale price No ad commission

Service rating

1. Inexpensive service fee at

wholesale prices

User feedback

Open and fair evaluation 2. Evaluate services form users’ viewpoint

Secure advantage through a unique business model

Suppliers Users

Strength of Charging Users

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwiSrKSliqTMAhWIGZQKHXQtAX4QjRwIBw&url=http%3A%2F%2Fmacleons.com%2Fabout-us%2F&bvm=bv.119745492,d.dGo&psig=AFQjCNG3PaNMky-rwN5XJ5o9msKi3M-91Q&ust=1461477548375477

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjn0bOUi6TMAhVHVZQKHYVuBsAQjRwIBw&url=http%3A%2F%2Fxn--dckvcvat7gqi751y6lo.net%2Fmotherclass.html&bvm=bv.119745492,d.dGo&psig=AFQjCNGgA71jxM_7XwyeLQ-6Y3eB4SCHxw&ust=1461477723669624


2016

20th anniversary

2 49

2231

49

62 60

82

102

137147 138 147 150

176

204

216

261

302

42 7 7 8

9

13

20

24 24 2325

27

3133

43

53.5

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

（計画）

(100 million yen)(100 million yen)

Sales (left axis) Ordinary income (right axis)

2004

Listed on Jasdaq

2006

Listed on

second section of TSE

2006

Started Incentive

1996

Established

business co-op

First stage

Pursuing economies of scale Second stage

Promoting diversification

Third stage Entering into BtoC market

2008

Started Healthcare

2012

Started global

operations 2009

Started Personal

Business Performance Transition

Ordinary income for the term is planned to be 5.35 billion yen, 24% up YoY

(plan)


96 126 148205 244 259 262 279 284 326 347 379 406 450

413

45

57

101148

199232 239

243153

160 141150

7

2852

6891

147227

400

100139

193

262

345

407

468

539575

638591

686

774

1,000

0

200

400

600

800

1,000

1,200

04/4 05/4 06/4 07/4 08/4 09/4 10/4 11/4 12/4 13/4 14/4 15/4 16/4 17/4(Initial plan)

Welfare program CRM Personal

* The number of dues-paying members in April 2016 was updated from the forecasted 7.85 million persons to the actual 7.74

million persons. (Personal: 2.33 to 2.27 million persons / CRM: 1.46 to 1.41 million persons)

Over

5 million

Over

1 million

Over

3 million

Over

6 million ※

Membership Transition

Target number of members is 10 million persons by April 2017.

The ratio of BtoC members is expected to exceed 50%.

Total

members in

April 2015

6.86 million

Total

members in

April 2016

7.74 million

Total

members in

April 2017

10 million

2.26 million up from

April ’16

・+0.44 mil in Welfare

・+0.09mil in CRM

・+1.73 mil in Personal

0.88 million up from

April ’15

・+0.27 mil in Welfare

・-0.19 mil in CRM

・+0.80 mil in Personal

(*)


1996 -

First stage

2006 -

Second stage

2014 -

Third stage

Business domain was redefined in FY2014, based on two axes: BtoB and BtoC.

Pursuit of the economy of scale

Promote diversification

Welfare Program outsourcing as a measure to acquire dues-paying members

Effective utilization of management resources that are fostered

in Welfare Program business

Promotion of BPO business Creation of service distribution

Growth Process

Full-scale entry into BtoC market

Further development of BtoB market


２００２２００３２００４２００５２００６２００７２００８２００９２０１０２０１１２０１２２０１３２０１４２０１５２０１６２０１７２０１８２０１９２０２０２０２１

toＢ

toＣ

April 2021

2016

・・・・

2020

2021

Liberalization of the energy market Electricity & gas: Total of 10-trillion-yen market

Differentiation strategy demand spurred the BtoC market.

Full-scale development of health points Data health plans and other national policies provided a

boost.

Tokyo Olympics Accelerate business expansion in the BtoC

market where over 200 thousand

employees and over 500 thousand foreign

visitors to Japan are expected.

April 2017

Expansion of the individual-type DC market People covered by the individual-type DC pension

system increased.

20 million members

10 million members

Develop the basis for the creation of service distribution by achieving a

total of 30 million members

Medium-term Management Goal


Charge-free matching site

Fee-charging matching site

Revenue

source Ad revenue/commission

Revenue from flat-rate fee

(No commission)

Member

acquisition

Easy to acquire non-paying

members at once Steadily acquire dues-paying members

Shop

development

Easy to develop shops at

once

Steadily increase shops according to

the number of actual users

Content Boutique-type content Comprehensive content

Type of

charging

Transaction business according

to the number of customers

forwarded

Stock business according to the

number of members

Target

customer Light users Heavy users

Competitive advantage reverses when the number of dues-paying

members exceeds a certain number.

Comparison with Competing Service-Matching Sites


1. No ad commission/charge

2. Ability to send as many

customers as open sites

Establishment of strong partnership utilizing the ability to send 30 million

customers and a user charging model

Suppliers Users

No ad

commission

Send

customers

Can enjoy the advantage

Value Enhancement for Suppliers




1. Wholesale prices including no

commission

2. Users can use as many

services as they like at the lowest

market price.

Suppliers Users

Commission is

returned to users

No need to pay

for every use

Establishment of a proxy shopping portal site that enables users to buy

services at low membership prices

Can enjoy the advantage

Value Enhancement for Users




Changes in the environment surrounding Japan’s economy and society

serve as a spur.

●National policy on healthcare

Legislation of health

management, data health

plans, and stress checks

Health points

●Labor shortage

Decrease in worker population

Selection of and concentration on

core operations

Expansion of outsourcing needs

Environmental Analysis toＢ

●Reinforcement of

governance

Revision of the Companies Act

Corporate governance code

Visualization of expenses

the

accelerating of

the


Transformation into an efficient sales style, targeting SMEs

toＢ Sales Strategy -Toward an efficient sales style-

1

2

3

Use inside sales to approach potential SME

customers and to follow up existing customers.

Further increase efficiency through partnership

with leading agents.

Introduce a marketing automation tool.

Renovate the website.


Product Strategy –Platform of the BPO service- ｔｏＢ

Establish a multivendor-type BPO platform using personnel data as a core

Personnel data

toＢ

Services for employees

Services for HR personnel

Services for GA personnel

Portal services for employees have

emerged in the U.S. and European markets.

Utilize the strength of Japan’s only one-

stop service provider offering

.

Establish a BPO platform that

serves as a

. External

services

Recognition

Education

Finance

Welfare

program

Reward

Health

Evaluation

Talent

management

Salary

calculation

Travel

expense

adjustment

Petty cash

adjustment


Recognition

POINT 1

Portal site that strengthens employees’

POINT 2

POINT 3

POINT 4

Ad

Product Strategy -BPO portal site initiative- ｔｏＢ toＢ

Establish a multivendor-type BPO platform using personnel data as a core

* Tentative name

Basic functions are provided free of charge.

Paid BPO functions are seamlessly available.

Various points are shared.

External vendor services are also available.

Basic functions Paid-for functions

Business chat Task management Sharing economy

Schedule Information News Ad spot setting

Welfare

program Reward Health

Travel expense

adjustment Petty cash

adjustment Salary

calculation


Attribute data

containing personnel

information such as

workplaces and addresses

Future Vision -Utilization of big data-

Create a new added-value by utilizing bid data accumulated through

BPO services

Advisory services for employees Advisory services for company personnel

Transaction data

containing distribution

information used for

various BPO services

Advisory services for employees

※仮称

ｔｏＢ toＢ

* Tentative name

Ｆｉｎｔｅｃｈ

４０１Ｋ

Data health

Health points


Financial portal site initiative

Portal site that offers effective

financial information for personal

asset building on a monthly fee basis

Provision of information on

life planning

Stocktaking, simulation, and

consultation

Selling of financial products

without commission

Example of Advisory Services

Support individual persons’ optimal asset management, utilizing technology

ｔｏＢ toB

Support for individual persons’ optimal asset

management, utilizing knowledge accumulated by

MONEY DESIGN Co., Ltd.

Law revision in January 2017

Increase of approx. , including government employees and

housewives

MONEY

DESIGN Co.,

Ltd.


ｔｏＢ Overseas Reinforcement of Global Business

Capital/business tie-up with Rewardz, expecting the acceleration and

synergy in business development in Asia

Singapore Dubai

Hong Kong

Malaysia

Indonesia

Australia

Sales channels are

now being expanded

through Rewardz’s

offices and overseas

agents.

Rewards offers applications related to welfare program,

health management, and rewards in and outside

Singapore, using BtoBtoC and BtoBtoE business models

Health Reward Welfare

program


Environmental Analysis

●Elderly household market ●Flat-rate fee model

Penetration of the

subscription

(=flat-rate fee) model

Model charging users Rise of service-matching sites

toＣ

Changes in users’ buying behaviors and IT use attitudes serve as a spur.

Good opportunity to approach

at an accelerated pace

●4th industrial revolution

・ Age of IT consumption using only

smartphones

・ Accumulation of big data

・ Structural reform utilizing AI and IoT

Every company strategically

strengthens the retention of

elderly households in

response to the aging society.


Sales Strategy -Revenue share model-

Mobile operator

Energy industry

Financial industry

Platformer

Extra added-value that satisfies client needs

Penetrate into end-users’ lives as an infrastructure

toＣ

Good match

with main

products

Good match

with

consumers

Subscription model


The need of capturing the elderly market is increasing in the progressing

aging society with a low birth rate.

toＣ Sales Strategy -Key target-

引用元内閣府平成28年版高齢社会白書（全体版） C

om

pany

B

O

×

Hope to strategically tie up with a

partner having differentiation

elements

Hope to establish new service

distribution brought by life style

changes such as changes in the

way of using time

Aging society with a low birth rate

People aged 65 and older to account for 30-40%

= People covered by the welfare program are decreasing.

推計値実績値

Increase in collaboration needs ＝

Aging population in the past and future

Actual

Covered by the

welfare program

Not covered by the

welfare program

Source: 2016 Whitepaper on Aging Society,

Cabinet Office, Government of Japan

Forecast

0-14 15-64 over 65 % of over 65


Inventory management

Variable price system

In tandem with national

policies (Data health plans, health

management, stress checks, etc.)

Ticketless

Expansion of

voluntary events

Investment education

Asset management

Focus on

A wide range of data can be accumulated, including consumption patterns,

preferences, and tastes

toＣ Service Strategy -Strategic focus content-


Before After

Sharing of information on unutilized asset

inventory, including not only facilities but also

knowledge and time (manpower)

Hotel

Service Strategy -Inventory-sharing model-

Knowledge Time

Healthcare

Bridal School Fitness Leisure

Air ticket

Relaxation Entertainment

Real estate Used car

Inventory-sharing

model

Match everything through the Internet by computerizing inventory information

Gourmet

Beauty

Privately owned car

+ Working power of time


Real

matching

Inventory-sharing

model Service Strategy -Real matching-

B ｔｏC

Prices are variable depending on the changes in supply-demand balance

[Supply]

Hope to attract

customers in

the off season

Supplier Hope to use

services

conveniently at

low price

User

[Demand]

Needs for

attracting

customers

Needs for

discount Room

availability

information

High

discount rate

Reservation

Payment

Member

privilege

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwiSrKSliqTMAhWIGZQKHXQtAX4QjRwIBw&url=http://macleons.com/about-us/&bvm=bv.119745492,d.dGo&psig=AFQjCNG3PaNMky-rwN5XJ5o9msKi3M-91Q&ust=1461477548375477


Inventory-sharing

model

Create a buying/selling and borrowing/lending platform, utilizing a network

of 8 million members, based on the “creditworthiness” established through

BtoB transactions

Service Strategy -Sharing economy-

C to C

C to B

Member Member

Member Company

Utilization of members’ idle

assets

Utilization of members’

manpower

One company Group

companies

All Benefit one

members

Companies

Members Members

Members

Things not

needed at

present

Things

needed at

present

Time

Knowledge Manpower

Manpower

•Knowledge

•Time

Manpower

•Routine

work


Inventory-sharing

model

We have started the initiative for “outsourcing 75% routine work,”

utilizing our member network.

Staff, players

Manager Inside

Inside

Manager Manager

Management

of results

Inside

Member network including retired employees

Visualization

Manual creation

Outside

Check operations

and breaking them

up into factors

Outsourcing

Higher efficiency

Contribute to the

elimination of labor

shortage and local

revitalization

Work Style Reform -Our initiative-

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwia0_jL3-rOAhVCl5QKHRUYBHkQjRwIBw&url=http://www.openbar.jp/geniuslove/bing.php?/images/search?q=%E3%83%A6%E3%83%BC%E3%82%B6%E3%83%BC&first=1&count=28&FORM=IBASEP&psig=AFQjCNFHSWUp1GwiXUYxe8Mrqb4Pjipfvw&ust=1472701708999733
























3. DATABOOK


12.4 14.7

25.0

FY141H

FY151H

FY161H

12.4 15.2

25.2

FY141H

FY151H

FY161H

99.3 119.5

143.5

FY14

1H

FY15

1H

FY16

1H

+20.1% YoY

Sales Operating income Ordinary income

Financial Results for 2Q Highlight


+65.9% YoY +70.4% YoY

Both sales and incomes performed well.

(Unit: 100 million yen)FY14

1H(%)

FY15

1H(%)

FY16

1H(%)

YoY

change(%)

F16 full-

term planProgress rate

Sales 9,932 (100.0) 11,954 (100.0) 14,351 (100.0) 2,397 +20.1% 30,200 +47.5%

Operating income 1,237 (12.5) 1,521 (12.7) 2,523 (17.6) 1,002 +65.9% 5,350 +47.2%

Ordinary income 1,237 (12.5) 1,470 (12.3) 2,504 (17.5) 1,034 +70.4% 5,350 +46.8%

Second quarter net

income attributable

to parent company's

shareholders

765 (7.7) 945 (7.9) 1,684 (11.7) 739 +78.3% 3,500 +48.1%


Financial Results for 2Q Cost of Sales

Cost of sales ratio: 60.6% (-1.2 pt YoY),

resulting from operation streamlining

(%)

Cost of sales 6,176 7,388 8,700 1,312 +17.8%

Cost of goods purchased 3,835 4,340 4,812 471 +10.9%

Supplemental payment

(hotel/service)1,865 1,975 1,630 ▲344 ▲17.4%

Guidebook(including CRM and Personal)

374 395 416 20 +5.1%

Incentive 652 819 1,400 582 +71.0%

Product sales 289 291 304 13 +4.5%

Manufacturing cost 2,342 3,048 3,889 840 +27.6%

Labor cost 1,163 1,189 1,252 63 +5.3%

Manufacturing expense 1,179 1,859 2,637 778 +41.8%

Cost of sales ratio 62.2% 61.8% 60.6% ▲1.2pt ―


1H

FY15

1H

FY16

1H

YoY

change


In the FY15 first half, temporary expenses were incurred, including

head office relocation expenses. SG&A ratio: 21.8% (-3.7 pt YoY)

Financial Results for 2Q SG&A

(%)

SG&A 2,517 3,043 3,127 84 +2.8%

Labor cost 1,219 1,376 1,402 26 +1.9%

General expenses 1,298 1,667 1,725 58 +3.5%

SG&A ratio 25.4% 25.5% 21.8% ▲3.7pt ―


1H

FY15

1H

FY16

1H

YoY

change


(Unit: million yen) Plan (%) Actual (%)YoY

change(%)

Sales 13,550 (100.0) 14,351 (100.0) 801 +5.9%

Cost of sales 8,475 (62.5) 8,700 (60.6) 225 +2.7%

Gross profit 5,075 (37.5) 5,651 (39.4) 576 +11.4%

SG&A 3,355 (24.8) 3,127 (21.8) ▲227 ▲6.8%

Operating income 1,720 (12.7) 2,523 (17.6) 803 +46.7%

Ordinary income 1,720 (12.7) 2,504 (17.5) 784 +45.6%

Second quarter net

income attributable

to parent company's

shareholders

1,050 (7.7) 1,684 (11.7) 634 +60.5%

● Sales

• Healthcare (Delivery carried over from the

previous term, etc.)

• Incentive (Active point exchange by existing

customers)

● Cost of sales

• Supplemental payment to users and

campaign expenses fell short of the

plan. Cost increase was limited in

comparison with sales.

● SG&A

• Labor cost was basically the same

as the plan. General expenses

including packing and shipping costs

were curbed as a whole.

Financial Results for 2Q Plan Variance Factors

Both sales and incomes exceeded the plan.


● Investment plan in software and tangible fixed assets

Financial Results for 2Q Capital Expenditures

Notes: 1) Including the amount commensurate with long-term prepaid expenses (2014 full-term actual: 23M, 2015 full-term actual: 82M, 2016 1H actual: 10M, 2016 full-term plan: -M)

2) Including assets under lease contracts (2014 full-term actual : 84M, 2015 full-term actual: 42M, 2016 1H actual: 77M, 2016 full-term plan: 117M） 3) Including consolidated adjustment (2014 full-term actual: -M, 2015 full-term actual : -9M, 2016 1H actual: -M, 2016 full-term plan: -M)

(1H actual) Full-term plan

Benefit One 720 552 217 699 ▲169 ▲23% +148 +27%

Software 376 404 182 583 +28 +7% +178 +44%

Tangible fixed assets (including

leased assets)344 147 35 117 ▲197 ▲57% ▲31 ▲21%

202 198 22 104 ▲4 ▲2% ▲95 ▲48%

Software 186 196 22 64 +9 +5% ▲132 ▲67%


leased assets)16 3 0 40 ▲13 ▲84% +37 +1492%

92 57 4 90 ▲35 ▲38% +33 +57%

Software 92 44 4 90 ▲48 ▲52% +46 +106%


leased assets)0 14 0 0 +14 +5533% ▲14 ▲100%

18 22 3 32 +4 +22% +10 +47%

Software 17 19 3 32 +1 +7% +13 +72%


leased assets)0 3 0 0 +3 +766% ▲3 ▲100%

Total 1,032 820 246 925 ▲212 ▲21% +105 +13%

Software 672 654 211 768 ▲18 ▲3% +115 +18%


leased assets)361 167 35 157 ▲194 ▲54% ▲10 ▲6%

(%)(Unit: million yen) FY14

actual

FY15

actual

FY16 14→15

change

Benefit one Healthcare

Benefit One Solutions

Consolidated overseas subsidiaries

(excluding affiliated companies

(%)15→16

change


● Financial condition

● Management index

■ Cash and deposits : -462

■ Accounts receivable: -784

■ Deposits paid: +1,000

15/9 16/3 16/9

Operating income to sales % 12.7 16.7 17.6

Ordinary income to sales % 12.3 16.6 17.5

Second quarter net income ratio

attributable to parent

company's shareholders

% 7.9 10.5 11.7

Net earnings per share yen 23.12 67.34 41.73

■ Second quarter net income

attributable to parent

company's shareholders: +1,684

■ Dividend payment: -1,352

15/9 16/3 16/9 16/3→16/9

change

Total assets million yen 18,565 22,002 21,654 ▲348

Current

assets million yen 12,537 16,180 15,818 ▲361

Fixed assets million yen 6,028 5,821 5,835 +13

Net assets million yen 10,776 11,927 12,294 +366

Equity ratio % 57.5 53.9 56.5 +2.6pt

Financial Results for 2Q Financial Condition


Financial Results for 2Q Cash Flow Condition

(Unit: million yen) 15/9 16/9 Change

CF from operating

activities 1,213 2,106 +893

CF from investing

activities 224 ▲330 ▲554

CF from financing

activities ▲1,855 ▲1,174 +681

Cash and cash

equivalents at end

of year 6,411 8,826 +2,415

● Cash increase

・ Net income before income tax 2,514

・ Depreciation 350

・ Decrease in receivables 778

● Cash decrease

・ Decrease in accounts payable 813

・Income tax payment 1,037

● Cash decrease

・ Acquisition of tangible/intangible

fixed assets 205

● Cash decrease

・ Payment of dividend 1,350


33.4 43.1

53.5

FY14 FY15 FY16

(plan)

33.5

43.6 53.5

FY14 FY15 FY16

(plan)

216.4 260.5

302.0

FY14 FY15 FY16

(plan)

(Unit: million yen) FY14 (%) FY15 (%)FY16

(plan)(%)

14→15

change(%)

15→16

change(%)

Sales 21,642 (100.0) 26,053 (100.0) 30,200 (100.0) 4,411 +20.4% 4,146 +15.9%

Operating income 3,353 (15.5) 4,355 (16.7) 5,350 (17.7) 1,002 +29.9% 994 +22.8%

Ordinary income 3,343 (15.4) 4,313 (16.6) 5,350 (17.7) 970 +29.0% 1,036 +24.0%

Net income attributable

to parent company's

shareholders

1,983 (9.2) 2,737 (10.5) 3,500 (11.6) 753 +38.0% 762 +27.9%

Sales Operating income Ordinary income

Consolidated Forecasts for FY2016


Full-term forecasts are left unchanged from the initial plan, aiming to

increase both sales and incomes with over 10% growth.

+15.9% YoY +22.8% YoY +24.0% YoY


Operating Results and Financial Condition Transition

FY11 FY12 FY13 FY14 FY15 FY16

Consolidated Consolidated Consolidated Consolidated Consolidated Plan

Sales (million yen) 14,959 17,610 20,356 21,642 26,053 30,200

YoY (%) +1.8% +17.7% +15.6% +6.3% +20.4% +15.9%

Gross margin (million yen) 5,900 6,688 7,538 8,352 10,241 12,000

YoY (%) +5.0% +13.4% +12.7% +10.8% +22.6% +17.2%

Gross margin ratio (%) +39.4% +38.0% +37.0% +38.6% +39.3% +39.7%

Operating income (million yen) 2,471 2,731 3,169 3,353 4,355 5,350

YoY (%) +9.0% +10.5% +16.0% +5.8% +29.9% +22.8%

Operating income ratio (%) +16.5% +15.5% +15.6% +15.5% +16.7% +17.7%

Ordinary income (million yen) 2,512 2,714 3,145 3,343 4,313 5,350

YoY (%) +7.3% +8.0% +15.9% +6.3% +29.0% +24.0%

Ordinary income ratio (%) +16.8% +15.4% +15.5% +15.4% +16.6% +17.7%

Net income (million yen) 1,447 1,623 1,892 1,983 2,737 3,500

YoY (%) +7.2% +12.2% +16.5% +4.8% +38.0% +27.9%

Net income ratio (%) +9.7% +9.2% +9.3% +9.2% +10.5% +11.6%

Total assets (million yen) 15,283 16,316 18,480 20,564 22,002 -

Current assets (million yen) 11,792 11,675 12,369 13,446 16,180 -

Net assets (million yen) 9,618 9,227 10,644 11,871 11,927 -

CF from operating activities (million yen) 2,533 2,631 2,211 2,812 3,941 -

CF from investing activities (million yen) 167 ▲ 1,821 ▲ 1,717 ▲ 1,859 33 -

CF from financing activities (million yen) ▲ 574 ▲ 2,095 ▲ 555 ▲ 932 ▲ 2,527 -

Cash and cash equivalents at end of year (million yen) 7,908 6,624 6,567 6,669 8,262 -

Income statement

Balance sheet

Cash flow statement


12.515.0

17.521.0

24.0

33.5

0.0

10.0

20.0

30.0

40.0

11/3 12/3 13/3 14/3 15/3 16/3

Dividend per Share

* Our company adopts the share unit system where one common share was split into 200 shares and the number of one share units was 100 shares, effective on October 1, 2013.

* Above figures are after retroactive adjustments in view of the stock split.

（円）

Major Management Index Transition

The dividend payout ratio in FY2015 was 49.8%.

40.8%

45.7% 46.0% 45.4%

49.6% 49.8%

30.0%

40.0%

50.0%

60.0%

11/3 12/3 13/3 14/3 15/3 16/3

Dividend Payout Ratio

6.6% 6.9%7.9%

8.7% 8.9%

11.6%

0.0%

5.0%

10.0%

15.0%

11/3 12/3 13/3 14/3 15/3 16/3

Dividend on Equity Ratio

FY11 FY12 FY13 FY14 FY15

Consolidated Consolidated Consolidated Consolidated Consolidated

Capital ratio (%) 62.9% 56.6% 56.7% 57.0% 53.9%

Return on Asset (ROA) (%) 16.4% 17.2% 18.1% 17.1% 20.3%

Return on Equity (ROE) (%) 15.0% 17.2% 19.2% 17.9% 23.2%

Earnings per Share (EPS) (yen) 32.85 38.06 46.21 48.41 67.34

Net Assets per Share (yen) 218.32 225.52 255.52 286.10 293.59

Dividend per Share (DPS) (yen) 15.0 17.5 21.0 24.0 33.5

Dividend Payout Ratio (%) 45.7% 46.0% 45.4% 49.6% 49.8%

Dividend on Equity Ratio (DOE) (%) 6.9% 7.9% 8.7% 8.9% 11.6%

Management index


No Category Business Services

1

BtoB

Welfare Program

Business Welfare Program outsourcing for various needs from companies’ employees

2 Incentive Business Loyalty and motivation increase support, through various point exchange items

3 Healthcare

Business Health support to prevent diseases, such as health checkups, specific health

guidance, and mental checks

4 BTM Business Business trip support, focusing on cost reduction operation efficiency

improvement and compliance enhancement

5 Cost Reduction

Business Outsourcing of administrative work, such as communication line use and

adjustment for travel expenses

6 Payroll Business Outsourcing of companies’ payroll calculation (affiliated company accounted for

by the equity method)

7

BtoC

Personal Business Real matching of services for individual customers

8 CRM Business Customer satisfaction and loyalty improvement support, for clients’ customers

9 Inbound Business Offering for tourists visiting Japan, and planning and managing of employees’ trip

and events

10 BtoB Overseas Business Business is operated in 7 countries, mainly Incentive business (6 consolidated

subsidiaries and 1 affiliated company accounted for by the equity method)

Business Summary


Sales Transition by Business



Sales (million yen) 14,959 17,610 20,356 21,642 26,053 30,200

YoY (%) +1.8% +17.7% +15.6% +6.3% +20.4% +15.9%

Welfare Program Business (million yen) 11,356 11,627 12,399 12,959 13,918 14,382

YoY (%) ▲5.4% +2.4% +6.6% +4.5% +7.4% +3.3%

Personal Business (million yen) 577 892 1,158 1,879 3,535 5,167

YoY (%) +129.1% +54.6% +29.9% +62.2% +88.1% +46.2%

CRM Business (million yen) 902 844 631 552 526 561

YoY (%) ▲0.4% ▲6.4% ▲25.3% ▲12.5% ▲4.6% +6.7%

Incentive Business (million yen) 993 1,512 1,796 1,965 2,442 3,065

YoY (%) +75.8% +52.3% +18.8% +9.4% +24.3% +25.5%

Healthcare Business (million yen) 682 1,737 3,336 3,100 4,257 4,511

YoY (%) +19.4% +154.5% +92.1% ▲7.1% +37.3% +6.0%

BTM Business (million yen) 19 52 71 94 128 208

YoY (%) +218.9% +170.4% +35.7% +32.8% +35.9% +61.8%

Cost Reduction Business (million yen) - 345 369 405 495 525

YoY (%) - - +6.8% +9.8% +22.0% +6.1%

Inbound Business (million yen) 14 66 29 29 20 480

YoY (%) - +387.6% ▲56.4% +0.7% ▲30.9% +2285.6%

Overseas Business (million yen) - - - 32 155 698

YoY (%) - - - - +381.9% +349.0%


Operating Income Transition by Business



Operating Income (million yen) 2,471 2,731 3,169 3,353 4,355 5,350

YoY (%) +9.0% +10.5% +16.0% +5.8% +29.9% +22.8%

Welfare Program Business (million yen) 2,284 2,119 2,461 2,530 3,256 3,320

YoY (%) ▲5.3% ▲7.2% +16.1% +2.8% +28.7% +2.0%

Personal Business (million yen) 78 222 392 597 975 1,407

YoY (%) - +183.9% +76.6% +52.2% +63.3% +44.3%

CRM Business (million yen) 78 119 57 35 62 93

YoY (%) +109.7% +52.1% ▲52.0% ▲38.5% +77.0% +48.9%

Incentive Business (million yen) 125 173 118 217 332 454

YoY (%) +118.2% +38.8% ▲31.9% +84.5% +53.0% +36.6%

Healthcare Business (million yen) 1 134 179 96 ▲ 33 150

YoY (%) - +9935.6% +33.7% ▲46.2% - -

BTM Business (million yen) ▲ 50 ▲ 15 10 6 11 25

YoY (%) - - - ▲41.8% +99.0% +114.2%

Cost Reduction Business (million yen) - 68 75 87 100 133

YoY (%) - - +9.7% +16.0% +14.9% +32.8%

Inbound Business (million yen) ▲ 25 ▲ 19 ▲ 6 ▲ 6 ▲ 33 1

YoY (%) - - - - - -

Overseas Business (million yen) - - ▲ 6 ▲ 96 ▲ 223 ▲ 122

YoY (%) - - - - - -


Performance by Business for FY2016 (First Half)

* Including the amount of company-wide adjustment

Change (%) Change (%)

11,954 13,550 14,351 2,398 +20.1% 802 +5.9% 30,200 47.5%

11,857 13,334 14,150 2,292 +19.3% 816 +6.1% 29,502 48.0%

6,907 7,088 7,112 205 +3.0% 24 +0.3% 14,382 49.5%

1,556 2,254 2,121 565 +36.3% ▲133 ▲5.9% 5,167 41.1%

249 247 265 17 +6.7% 18 +7.3% 561 47.3%

1,129 1,345 1,822 693 +61.3% 478 +35.5% 3,065 59.4%

1,458 1,656 2,216 758 +52.0% 559 +33.8% 4,511 49.1%

59 86 63 4 +6.3% ▲23 ▲26.6% 208 30.4%

231 246 243 12 +5.3% ▲3 ▲1.3% 525 46.2%

13 144 28 16 +124.0% ▲116 ▲80.5% 480 5.9%

97 216 202 105 +108.7% ▲14 ▲6.6% 698 28.9%

Sales

FY16 full-term

planProgress rate

YoY Vs. planFY15

1H actual

FY16

1H plan

FY16

1H actual

Inbound

②Subtotal, overseas business

(Unit: million yen)

Incentive

Healthcare

BTM

Cost reduction

Personal

CRM

①Subtotal, domestic business

Welfare Program

Total, consolidated

Change (%) Change (%)

1,521 1,720 2,523 1,002 +65.9% 803 +46.7% 5,350 47.2%

1,626 1,814 2,603 977 +60.1% 789 +43.5% 5,472 47.6%

1,537 1,701 2,303 766 +49.9% 601 +35.3% 4,770 48.3%

170 198 273 103 +60.9% 75 +37.7% 454 60.1%

▲70 ▲96 60 130 - 156 - 150 39.9%

9 6 ▲14 ▲23 - ▲20 - 25 -

42 51 38 ▲4 ▲10.3% ▲13 ▲25.9% 133 28.4%

▲13 ▲14 ▲20 ▲8 - ▲6 - 1 -

▲107 ▲94 ▲80 27 - 14 - ▲122 - ②Subtotal, overseas business

Incentive

Healthcare

BTM

Cost reduction

Inbound

Total, consolidated

①Subtotal, domestic business

Welfare Program + Personal + CRM　*

Operating income

(Unit: million yen)FY15

1H actual

FY16

1H plan

FY16

1H actual

YoY Vs. plan FY16 full-term

planProgress rate


<Reference> Welfare Program + Personal + CRM

* Operating income includes the amount of company-wide adjustment.

*

*

*

*

● Transition of integrated results of Welfare Program, Personal, and CRM businesses

1H 2H Full term

(million yen) 6,990 7,198 14,188

YoY (%) +6.3% +6.1% +6.2%

(million yen) 975 1,936 2,911

YoY (%) +18.0% +18.4% +18.3%

1H 2H Full term

(million yen) 7,455 7,935 15,390

YoY (%) +6.7% +10.2% +8.5%

(million yen) 1,225 1,902 3,127

YoY (%) +25.7% ▲1.7% +7.4%

1H 2H Full term

(million yen) 8,712 9,267 17,979

YoY (%) +16.9% +16.8% +16.8%

(million yen) 1,537 2,744 4,281

YoY (%) +25.4% +44.3% +36.9%

1H 2H Full term plan

(million yen) 9,499 20,092

YoY (%) +9.0% +11.8%

(million yen) 2,303 4,770

YoY (%) +49.9% +11.4%

Sales

Operating income

FY13 (actual)

FY14 (actual)

FY15 (actual)

FY16 (1H: Actual / Full term: Initial plan)

Sales

Operating income

Sales

Operating income

Sales

Operating income


- One-stop site for service matching -

Creation of Service Distribution

■ IR contact: Corporate Planning Division Tel: 03-6870-3802 Mail: [email protected] URL: http://www.benefit-one.co.jp/

This material is intended to provide information on the performance of the financial results for the second

quarter of the fiscal year ending March 2017. In no way is the information intended to solicit an investment

in securities issued by the Company. The information is prepared based on data as of the end of

September 2016. Accordingly, the opinions or forecasts on this presentation are dependent on the

judgment of the Company at the time of the preparation, and do not guarantee nor pledge accuracy or

integrity of the information. In addition, such opinions or forecasts may be changed without notice.

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