Shunichiro Ninomiya, President
Honyaku Center Inc.

For the fiscal year ended March 31, 2024, the Honyaku Center Group (“the Group”) posted net sales of 11,303 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 remained almost flat in the Translation Business, which is the core business, due to a decline in sales in the Medical field. In terms of profit, the Group posted operating income of 902 million yen, down 2.8% on a year-on-year basis, and ordinary income of 938 million yen, down 2.2% on a year-on-year basis, due to increased selling, general and administrative expenses, mainly personnel expenses, and a decline in sales in the Medical field of the Translation Business. Net income attributable to the parent company’s shareholders increased 3.5% on a year-on-year basis to 711 million yen due to a gain on bargain purchase resulting from the acquisition of shares in a newly consolidated subsidiary.

Financial results forecasts for the fiscal year ending March 31, 2025

For the financial results forecasts for the fiscal year ending March 31, 2025, the Group expects net sales of 12,100 million yen, up 7.0% on a year-on-year basis; operating income of 1,050 million yen, up 16.3% on a year-on-year basis; ordinary income of 1,080 million yen, up 15.0% on a year-on-year basis; and net income attributable to the parent company’s shareholders of 720 million yen, up 1.2% on a year-on-year basis.

Dividend forecasts for the fiscal year ending March 31, 2025

The Group recognizes the return of profits to shareholders to be a significant managerial issue, sets the basic policy of distributing profits by comprehensively taking into account stable dividends and internal reserves for future business expansion, aiming for a consolidated dividend payout ratio of 35%. Based on this basic policy, the Company plans to pay a dividend of 75 yen per share for the fiscal year ending March 31, 2025 (up 10 yen from the previous year), a record high for the second consecutive year, taking into consideration the financial position, profit level, and other factors comprehensively.

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.

Ｍay 2024
Shunichiro Ninomiya, President