Consolidated Financial Results (Japanese Accounting Standards)
for the Nine Months Ended 30 June 2016 (3Q FY2016)
21 July 2016
Company Name:
Stock Code:
Representative:
Contact:
BEENOS Inc.
3328
President and Group CEO
Executive Director and Group CFO
Scheduled date for filing of
securities report
5 Aug. 2016
Stock Exchange Listing: Tokyo
URL: http://www.beenos.com
Shota Naoi
Koji Nakamura
Tel. 03-5739-3350
Scheduled date of
―
commencement of dividend
payment
Supplementary documents for quarterly results： Yes
Quarterly results briefing： Yes (for Analysts)
(Amounts rounded down to the nearest million JPY)
１．Consolidated Financial Results for the Nine Months Ended 30 June 2016 (1 Oct. 2015 – 30 Jun. 2016)
（１）Consolidated Results of Operations
(Accumulated Total)
(Percentages show year-on-year changes)
Net sales
Nine months ended
30 Jun. 2016
30 Jun. 2015
Operating income
Ordinary income
Million JPY
％
Million JPY
％
Million JPY
％
Million JPY
％
14,464
12,666
14.2
38.5
1,136
1,053
7.9
―
1,162
1,033
12.5
―
828
864
(4.2)
―
(Note) Comprehensive Income 30 Jun. 2016: 495
mil. JPY ( (52.7％))
Net income
30 Jun. 2015: 1,048
mil. JPY ( ― ％)
Net income per share Net income per share
(basic)
(diluted)
Nine months ended
30 Jun. 2016
30 Jun. 2015
JPY
JPY
67.91
71.07
67.76
70.49
（２）Consolidated Financial Position
Total assets
Net assets
Equity ratio
Million JPY
Million JPY
％
10,646
6,022
54.2
10,019
5,679
54.5
30 Jun. 2016
Year ended 30 Sep.
2015
(Reference) Shareholders’ equity
30 Jun. 2016: 5,769 million JPY
30 Sep. 2015:
5,463 million JPY
２．Dividends
Dividend per share
End of first End of second End of third
quarter
quarter
quarter
JPY
JPY
Year-end
JPY
Year ended 30 Sep.
―
―
0.00
2015
Year ending 30 Sep.
―
―
0.00
2016
Year ending 30 Sep. 2016
(forecast)
(Note) Revisions to dividend forecasts published most recently: None
Annual
JPY
JPY
13.00
13.00
10.00
10.00
３．Consolidated Forecasts for the Fiscal Year Ending 30 September 2016 (1 Oct. 2015 – 30 Sep. 2016)
(Percentage figures for the fiscal year represent changes from the previous year)
Net income per
Net sales
Operating income Ordinary income
Net income
share
Million JPY
％
Million JPY
％
Million JPY
％
Year ending
19,600 15.7
1,000 (15.6)
950 (17.3)
(Note) Revisions to financial forecasts published most recently: None
―1―
Million JPY
％
650 (27.6)
JPY
53.42
*
Notes
（１）Changes of important subsidiaries during the period
（２）Application of specific accounts procedures to the
preparation of quarterly consolidated financial statements
： None
： None
（３）Changes in accounting policies and changes or restatements of accounting estimates
①
Changes in accounting policies due to revisions of
accounting standards
： Yes
②
Changes in accounting policies other than ①
： None
③
Changes in accounting estimates
： None
④
Restatements
： None
（４）Number of shares outstanding (common shares)
①
Number of shares outstanding at the end of
the period (including treasury shares)
②
Number of treasury shares at the end of the
period
③
Average number of shares outstanding
during the term
*
30 Jun. 2016 12,266,600 shares
30 Sep. 2015
12,266,600 shares
30 Jun. 2016
66,218 shares
30 Sep. 2015
75,970 shares
30 Jun. 2016 12,198,767 shares
30 Jun. 2015
12,162,026 shares
Status of quarterly review
This financial summary does not need to undergo a quarterly review according to the Financial Instruments and
Exchange Act. The procedures for a quarterly review of the consolidated financial statements are being followed at the
time of the announcement of this financial summary.
*
Explanations and other special notes concerning the appropriate use of business performance forecasts
The forward-looking statements such as results forecasts included in this document are based on the information
available to the Company at the time of the announcement and based on certain assumptions that are considered
reasonable, and the Company makes no representations as to their achievability. Actual results may differ materially
from the forecast depending on a range of factors.
―2―
○Table of Contents
１．Qualitative Information for this Quarter’s Results
4
（１）Business Performance Report
4
（２）Financial Status Report
6
（３）Report on Forecast Information including Consolidated Results
6
２．Notes on Summary Information
7
（１）Important transfers concerning the subsidiaries
this consolidated cumulative quarter
7
（２）Particular account processes in the preparation of
the quarterly consolidated financial statements
7
（３）Accounting changes, changes in accounting estimates, restatements
7
３．Quarterly Financial Statements
8
（１）Quarterly Consolidated Balance Sheet
8
（２）Quarterly Consolidated Profit & Loss Statement and
Quarterly Consolidated Statement of Comprehensive Income
10
Quarterly Consolidated Profit & Loss Statement
Consolidated Cumulative 3rd Quarter
10
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative 3rd Quarter
（３）Notes to Quarterly Financial Statements
11
12
(Notes regarding the premise of a going concern)
12
(Notes regarding any significant changes in the amount of shareholders’ equity)
12
(Segment Information, etc.)
13
―3―
１．Qualitative Information for this Quarter’s Results
（１）Business Performance Report
“Strategically investing in Cross Border E-Commerce resources” is this quarter’s strategic axis for the BEENOS
Group. Likewise, all the segments in the E-Commerce Business and the Incubation Business have conducted
their operations according to their own strategic plan: “Segregating ourselves, through pricing strategy, to take
advantage of our overwhelming position as No. 1” for the Cross Border Business, “Expand further by
continually fortifying our branding” for the Value Cycle Business and “Dig deeper into India and Southeast
Asia” for the Incubation Business.
As a result, the 3rd quarter consolidated gross sales were 14,464 million JPY (a 14.2% increase on the same
period last year), operating income was 1,136 million JPY (a 7.9% increase on the same period last year),
ordinary income was 1,162 million JPY (a 12.5% increase on the same period last year) and net profit
attributable to owners of the parent company was 828 million JPY (a 4.2% decrease on the same period last
year).
The achievements of each business segment are as follows.
①
E-Commerce Business
The Overseas Forwarding and Proxy Purchasing Business FROM JAPAN launched a pick-up service at
convenience stores in Taiwan, waived the substitute purchase transaction fees for a portion of its participating
shopping sites, installed a shipment and product quality guarantee service plan, and began accepting 15 major
global currencies, etc. to cater to the needs of its clientele. By so doing, it segregated itself from rival companies
and saw a healthy increase in registered users, consolidated GMV and gross sales. On the other hand, a
temporary increase in cost as a result of strategic investments in promotion costs and an increase in engineers
due to business expansion led to a decrease in operating incomes compared to the same period last year, but
performance remains steady.
The Global Shopping Business TO JAPAN has a self-manufactured storage in the United States as well as a
customer support system, and is now able to provide new services while lowering costs. It consequently revised
its commission system, which led to a better earnings structure. Furthermore, it renewed its website so that
users can shop for products that are not available in Japan without having to worry about the foreign exchange
rate, thereby increasing its target audience to include women with an interest in apparel. This led to an increase
in new buyers and GMV.
As a result, 3rd quarter consolidated gross sales were 2,873 million JPY (a 28.3% increase on the same period
last year) and operating income was 179 million JPY (a 37.8% decrease on the same period last year).
The Value Cycle Business on the purchasing side reached 1.5 million users this May due to an internally
developed microchip inventory management system and streamlining its operation by outsourcing. The
investment in a new TV advertisement also had an impact, resulting in an increase in users and the number of
purchasing transactions. The vending side won the “Yahoo! Auction Overall Annual Best Store Grand Prix” for
the 7th consecutive year through its strong line and broad range of designer and luxury goods.
As a result, 3rd quarter consolidated gross sales were 7,310 million JPY (a 16.3% increase on the same period
last year) and operating income was 285 million JPY (a 362.3% increase on the same period last year).
The Retailing and Licensing Business strengthened its EC by renewing the official EC websites of the artists for
whom it holds the master licensing rights. It has seen a healthy increase in gross sales and operating income
―4―
through its success in creating a real shop with a collection of its master licensed brand products and holding a
limited time collaborated café to increase awareness.
The Internet Shopping Business increased its conversion rate by evolving its customer portfolio management
and increased the gross margin rate of its original fashion and beauty products by strengthening sales. However,
because it made active investments in the promotion cost for acquiring new customers and activating inactive
users, its operating incomes decreased.
As a result, 3rd quarter consolidated gross sales were 3,372 million JPY (an 8.2% increase on the same period
last year) while operating income was 136 million JPY (a 16.9% decrease on the same period last year).
For the E-Commerce Business as a whole, 3rd quarter consolidated gross sales were 13,557 million JPY (a 16.4%
increase on the same period last year) and operating income was 601 million JPY (a 16.4% increase on the same
period last year).
②
Incubation Business
The Investment and Consultation Business has been working actively and investing and consulting with online
marketplaces and the online payment field in developing countries. It has already invested in such companies in
dominant developing countries, and specifically targeted India this quarter. It is making new investments to
develop a large-scale marketplace for online marketplaces that specialize in a variety of categories. Meanwhile,
it has been supporting the growth of existing investments by procuring funds and sharing expertise, and by
cashing in investments. It recorded gains on sales from operational investment securities in the first and third
quarters.
As a result, 3rd quarter consolidated gross sales were 907 million JPY (an 11.4% decrease on the same period last
year), while operating income was 801 million JPY (a 2.3% decrease on the same period last year).
―5―
（２）Financial Status Report
① Financial Status Analysis
（i） Assets
Total assets for the third quarter consolidated accounting period were 10.6 billion JPY, which is an increase of 627
million JPY from the end of the previous consolidated fiscal year.
The breakdown of the funds is as follows: Total current assets are 9.3 billion JPY, which is an increase of 641
million JPY from the end of the previous consolidated fiscal year. The main factors for the increase include an
increase of 665 million JPY in cash and deposits as well as 161 million JPY in accounts receivable, with a decrease
of 183 million JPY in prepaid current assets.
Furthermore, fixed assets totaled 1.2 billion JPY, which is a decrease of 14 million JPY from the end of the previous
consolidated fiscal year. The main factors for the increase are an increase of 24 million JPY in intangible assets,
including software, and decreases in goodwill of 23 million JPY and investment securities of 12 million JPY.
（ⅱ）Liabilities
Total liabilities for the third quarter consolidated accounting period were 4.6 billion JPY, which is an increase of
284 million JPY from the end of the previous consolidated fiscal year.
The breakdown of the funds is as follows: Liquid liabilities are 4.4 billion JPY, which is an increase of 237 million
JPY compared to the last consolidated fiscal year. The main factors for the increase are an increase in accounts
payable of 390 million JPY and decreases in deposits received of 118 million JPY and income taxes payable of 40
million JPY.
Total fixed liabilities are 202 million JPY, which is an increase of 46 million JPY compared to the last consolidated
fiscal year. The main factors for the increase are increases in long-term loans payable of 37 million JPY and lease
obligations toward noncurrent assets of 8 million JPY.
（ⅲ）Net Assets
Total net assets from the third quarter consolidated accounting period were 6 billion JPY, which is an increase of
342 million JPY from the end of the previous consolidated fiscal year. The main factors for the increase are
increases in retained earnings to 293 million JPY and a decrease in capital surplus of 164 million JPY.
（３）Report on Forecast Information Including Consolidated Results
There are no changes to the forecasts made on 29 October 2015 with regard to the consolidated results for the
September 2016 period.
―6―
２．Notes on Summary Information
（１）Important transfers concerning subsidiaries this consolidated cumulative quarter
Not applicable.
（２）Specific account processes in the preparation of the quarterly consolidated financial statements
Not applicable.
（３）Accounting changes, changes in accounting estimates, restatements
(Accounting changes)
(Application of Accounting Standards for Business Combinations and related matters)
Standards such as the Accounting Standard for Business Combinations (ASBJ No. 21 of 13 September 2013), the
Accounting Standard for Consolidated Financial Statements (ASBJ No. 22 of 13 September 2013) and the
Accounting Standard for Business Divestitures (ASBJ No. 7 of 13 September 2013) have been applied since the
first quarter consolidated accounting period.
The Company has changed its allocation of the difference in changes in equity of its subsidiaries to capital surplus
as well as its acquisition-related costs to expenditures for the consolidated fiscal year. With regard to corporate
combinations that will occur after the beginning of the first quarter consolidated accounting period, the review of
the acquisition cost allotment from the provisionally fixed account process has been changed to be reflected in the
quarterly consolidated financial statement for the quarterly consolidated accounting period in which it occurs from
the date of the corporate combination. Furthermore, changes have been made to the display of items such as
quarterly net profit as well as minority stockholder equity interest to non-controlling stockholder interest. The
Company has reclassified the previous consolidated cumulative 3 rd quarter and the previous consolidated
accounting period to reflect the applicable display changes in the quarterly consolidated financial statement as
well as the consolidated financial statement.
The application of the Accounting Standard for Business Combinations and the other standards follow the
transitional treatment specified in Article 58-2 (4) of the Accounting Standard for Business Combinations, Article
44-5 (4) of the Accounting Standard for Consolidated Financial Statements and Article 57-4 (4) of the Accounting
Standard for Business Divestitures. These standards have been applied since the beginning of the consolidated
fiscal year under review, and they will continue to be applied going forward.
There is no impact on the quarterly consolidated financial statement from the consolidated cumulative 2nd quarter.
(Changes in Depreciation Method)
The Practical Solution on Accounting for Changes in Depreciation Method related to the 2016 Tax Law Changes
(PITF No. 32 as of 17 June 2016) has been reflected in this 3rd quarter accounting period, and so the depreciation
and amortization method for any buildings and accompanying facilities as well as structures obtained on or after
1 April 2016 has been changed from the declining-balance method to the straight-line method as a result.
There is no impact on the quarterly consolidated financial statement from the consolidated cumulative 2 nd quarter.
―7―
３．Quarterly Financial Statements
（１）Quarterly Consolidated Balance Sheet
Previous Consolidated Fiscal
Year
(30 September 2015)
(Unit: 1,000 JPY)
3rd Quarter Consolidated
Fiscal Period
(30 June 2016)
Cash and Deposits
Notes and Accounts Receivable-trade
3,276,662
1,006,283
3,942,321
904,889
Operational Investment Securities
Products
1,663,906
1,111,424
1,830,851
1,173,971
Deferred Tax Assets – Current
Accounts Receivable
74,907
695,825
59,435
857,282
Other
Allowance for Cancellation Loss
924,388
(7,529)
644,343
(25,461)
8,745,869
9,387,634
309,545
327,180
(114,509)
(141,060)
195,035
186,119
Assets Section
Current Assets
Total Current Assets
Fixed Assets
Tangible Assets
Buildings and Structures
Accumulated Depreciation
Buildings and Structures (Net Base)
Tools, Materials and Supplies
Accumulated Depreciation
Tools, Materials and Supplies (Net
Base)
Total Tangible Assets
Intangible Assets
Goodwill
Other
85,534
102,153
(60,316)
(70,802)
25,218
31,350
220,253
217,469
87,487
63,792
38,773
62,767
126,260
126,560
Investment Account Security
Deferred Tax Assets – Current
491,521
16,673
478,650
15,424
Other
Allowance for Cancellation Loss
420,194
(1,749)
422,436
(1,749)
Total Intangible Assets
Investments etc.
Total Investments, etc.
Total Fixed Assets
Total Assets
―8―
926,639
914,760
1,273,154
1,258,790
10,019,023
10,646,424
Previous Consolidated Fiscal
Year
(30 September 2015)
(Unit: 1,000 JPY)
3rd Quarter Consolidated
Fiscal Period
(30 June 2016)
Accounts Payable
Short-term Loans
398,423
909,600
459,015
921,375
Current Portion of Long-term Debt
Income Taxes Payable
10,000
221,999
9,996
181,616
35,991
1,629,039
7,429
2,019,196
543,627
435,095
425,309
397,781
4,183,777
4,421,720
－
9,040
37,505
8,522
146,706
－
147,784
8,757
Liabilities Section
Current Liabilities
Deferred Tax Debts – Non current
Accounts Payable – Other
Deposits Received
Other
Total Current Liabilities
Fixed Liabilities
Long-term Loans
Deferred Tax Debts – Non current
Asset Retirement Obligation
Other
Total Fixed Liabilities
Total Liabilities
155,746
202,570
4,339,524
4,624,290
2,725,977
2,725,977
2,467,686
14,475
2,303,061
842,838
Net Assets Section
Capital Stock
Capital Stock
Capital Surplus
Earned Surplus
Common Stock for Treasury
(108,379)
(94,498)
Total Capital Stock
5,099,760
5,777,378
30,072
(48,092)
333,444
40,397
363,517
(7,695)
16,796
199,425
14,239
238,211
Accumulated Other Comprehensive Income
Valuation Difference on Available-for-sale
Securities
Exchange Conversion Adjustment Account
Total Accumulated Other Comprehensive
Income
Equity Warrant
Minority Stockholder Equity Interest
Net Assets Section
Total Liabilities
―9―
5,679,499
6,022,134
10,019,023
10,646,424
（２）Quarterly Consolidated Profit & Loss Statement and Quarterly Consolidated Statement of Comprehensive
Income
Quarterly Consolidated Profit & Loss Statement
Consolidated Cumulative 3rd Quarter
Previous Consolidated
Cumulative 3rd Quarter
(1 October 2014 ~
30 June 2015)
12,666,833
5,847,410
(Unit: 1,000 JPY)
Current Consolidated
Cumulative 3rd Quarter
(1 October 2015 ~
30 June 2016)
14,464,271
6,709,438
Gross Profit
6,819,423
7,754,832
Selling, General and Administrative Expenses
5,765,934
6,618,515
Operating Income
1,053,488
1,136,317
223
－
332
3,128
－
16,843
－
20,910
－
Sales
Cost of Sales
Non-operating Income
Interest Income
Foreign Exchange Gains
Share of profit of entities accounted for using
the equity method
Gain on Investments in Partnership
Compensation Received
3,656
Other
3,835
9,664
Total Non-operating Income
7,715
50,879
5,621
18,863
5,557
－
Equity in Losses of Affiliates
Equity in Earnings of Affiliates
1,672
353
－
－
Loss on Investments in Partnership
Other
1,014
19,236
45
27,524
24,839
1,033,679
1,162,357
Gain on Change in Equity
Gain on Return Asset Retirement Obligations
226,938
25,730
－
－
Total Extraordinary Income
252,669
－
580
－
10,344
147,708
－
－
158,633
－
1,127,714
1,162,357
264,629
280,329
Non-operating Expenses
Interest Expenses
Exchange Loss
Total Non-operating Expenses
Ordinary Income
Extraordinary Income
Extraordinary Losses
Loss on Sales of Stocks and Subsidiaries and
Affiliates
Office Transfer Expenses
Impairment Loss
Total Extraordinary Losses
Quarterly Income Before Income Taxes
Income Taxes – Current
Income Taxes – Deferred
(8,073)
14,879
Total Income Taxes
256,556
295,208
Quarterly Net Income
871,158
867,148
6,755
38,786
864,402
828,362
Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent
―10―
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative 3rd Quarter
Quarterly Net Income
Other Comprehensive Income
Valuation Difference on Available-for-sale
Securities
Foreign Currency Translation Adjustment
Re-measurements of Defined Benefit Plans, Net
of Tax
Share of Other Comprehensive Income of
Entities Accounted for Using the Equity
Method
Quarterly Comprehensive Income
Previous Consolidated
Cumulative 3rd Quarter
(1 October 2014 ~
30 June 2015)
871,158
(Unit: 1,000 JPY)
Current Consolidated
Cumulative 3rd Quarter
(1 October 2015 ~
30 June 2016)
867,148
32,888
(78,820)
139,493
(282,013)
4,955
(10,378)
177,337
(371,212)
1,048,495
495,936
1,041,740
457,150
6,755
38,786
(Breakdown)
Comprehensible Income Attributable to Owners
of the Parent
Comprehensible Income Attributable to Noncontrolling Interests
―11―
（３）Notes to Quarterly Financial Statements
(Notes regarding the premise of a going concern)
Not Applicable
(Notes regarding any significant changes in the amount of shareholders’ equity)
Not Applicable
―12―
(Segment Information, etc.)
Previous Consolidated Cumulative 3rd Quarter (1 October 2014 ~ 30 June 2015)
Ⅰ
１．Information regarding the amount of sales and profit or loss by reporting segment
(Unit: 1,000 JPY)
Recorded
Amount in
Quarterly
Adjustments
Consolidated
*1
Profit & Loss
Statement
*2
Reporting Segment
E-Commerce Business
Cross
Border
Business
Value
Cycle
Business
2,239,290
6,285,374
－
－
2,239,290
6,285,374
288,188
61,818
Retailing
Licensing
Business
Subtotal
Incubation
Business
Total
Net Sales
Sales
to Customers
Internal Sales
or
Transfers
Between
Segments
Total
Segment
Earnings
3,118,160 11,642,825
－
－
3,118,160 11,642,825
163,935
513,942
1,024,008 12,666,833
－
－ 12,666,833
－
－
1,024,008 12,666,833
－
－ 12,666,833
819,786 1,333,729 (280,240)
1,053,488
*１．The segment earnings adjustment of -280 million JPY includes the deletion of inter-segment
transactions of -14 million JPY, company-wide revenue of 197 million JPY that is not distributed to each
reporting segment and company-wide costs of -463 million JPY. Company-wide revenues are mainly the
Company’s commission received from each subsidiary. Company-wide costs are mainly the Company’s
administrative costs related to the subsidiaries.
*２．Segment profits are adjusted in the operating income of the Quarterly Consolidated Profit & Loss
Statement.
Current Consolidated Cumulative 3rd Quarter (1 October 2015 ~ 30 June 2016)
Ⅱ
１．Information regarding the amount of sales and profit or loss by reporting segment
(Unit: 1,000 JPY)
Recorded
Amount in
Quarterly
Adjustments
Consolidated
*1
Profit & Loss
Statement
*2
Reporting Segment
E-Commerce Business
Cross
Border
Business
Value
Cycle
Business
Retailing
Licensing
Business
2,873,748
7,310,620 3,372,776 13,557,145
Subtotal
Incubation
Business
Total
Net Sales
Sales
to Customers
Internal Sales
or
Transfers
Between
Segments
Total
Segment
Earnings
－
2,873,748
179,151
－
－
－
7,310,620 3,372,776 13,557,145
285,771
136,209
601,131
907,125 14,464,271
－
－
907,125 14,464,271
－ 14,464,271
－
－
－ 14,464,271
801,310 1,402,442 (266,124)
1,136,317
*１．The segment earnings adjustment of -266 million JPY includes the deletion of inter-segment
transactions of -72 million JPY, company-wide revenue of 281 million JPY that is not distributed to each
reporting segment and company-wide costs of -475 million JPY. Company-wide revenues are mainly the
Company’s commission received from each subsidiary. Company-wide costs are mainly the Company’s
administrative costs related to the subsidiaries.
*２．Segment profits are adjusted in the operating income of the Quarterly Consolidated Profit & Loss
Statement.
―13―