Shunichiro Ninomiya, President
Honyaku Center Inc.

We would like to express our heartfelt sympathy to all those affected by the 2026 Kumamoto Earthquake.

During the three-month period ended June 30, 2026, the Interpretation Business of the Honyaku Center Group posted record-high sales for the first three months of a fiscal year. On the other hand, sales in the Translation Business, which is the core business, decreased significantly due to a decline in orders from certain major customers and the absence of spot projects that boosted sales in the same period of the previous fiscal year. As a result, consolidated net sales were 2,454 million yen, down 8.0% on a year-on-year basis. In terms of profit, the Group posted operating income of 62 million yen, down 70.8% on a year-on-year basis, as gross profit decreased due to a significant decrease in sales in the Translation Business; ordinary income of 67 million yen, down 69.3% on a year-on-year basis; and net income attributable to the parent company’s shareholders of 36 million yen, down 74.1% on a year-on-year basis.

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.

Dividend forecasts for the fiscal year ending March 31, 2027

The Company regards the return of profits to shareholders as a significant management issue. In May of this year, the Company revised its shareholder return policy, and in the 6th Medium-Term Management Plan covering the period from the fiscal year ended March 31, 2026 to the fiscal year ending March 31, 2028, the Company has established a new policy of targeting a “dividend on equity ratio (DOE) of 6% or more” and a “total payout ratio of 100% or more”. Based on this basic policy, after comprehensively considering its financial position, profit level, and other factors, the Company plans to pay a dividend of 140 yen per share for the fiscal year ending March 31, 2027.

Based on the Medium-Term Management Plan, the Company aims to become the most reliable language service partner for its clients by providing language services required in the digital age through the use of translators and interpreters who are experts in specialized fields and leveraging our wealth of language assets accumulated on a daily basis. The Company will further advance each of the priority measures while flexibly responding to changes in the business environment.

August 2026
Shunichiro Ninomiya, President