This is a translation of the original Japanese release. The Japanese text shall prevail in case of any variance between this version and the Japanese text.
Consolidated Financial Results (Japanese Accounting Standards)
for the First Quarter Ended 31 December 2016 (Q1 FY2017)
26 January 2017
Company Name
BEENOS Inc.
Stock Exchange Listing
Tokyo
Stock Code
3328
URL http://www.beenos.com
Representative
President and Group CEO
Shota Naoi
Contact
Executive Director and Group CFO Koji Nakamura
(TEL) 03-5739-3350
Scheduled date for filing of securities
Scheduled date of commencement
14FEB2017
―
report
of dividend payment
Supplementary documents for quarterly results： Yes
Quarterly results briefing： Yes (for Analysts)
(Amounts rounded down to the nearest million yen)
１．Consolidated Financial Results for the First Quarter Ended 31 December 2016
(1 October 2016 – 31 December 2016)
（１）Consolidated Results of Operations
(Accumulated Total)
(％ show year-on-year changes)
Net sales
Million yen
Million yen
％
4,970
4,655
6.8
10.8
88
185
△52.5
△64.4
1Q FY2017
1Q FY2016
(Note)
Comprehensive
Income
Operating income
％
1Q FY2017
235 Mil. yen ( 124.0％)
Ordinary income
Million yen
76
189
1Q FY2016
Net income
％
Million yen
％
△59.6
△62.8
△89
109
―
△71.6
105 Mil. yen
( △80.9 ％)
Net income per share Net income per share
(basic)
(diluted)
Yen
1Q FY2017
1Q FY2016
Yen
―
△7.31
8.96
8.94
（２）Consolidated Financial Position
Total assets
1Q FY2017
FY2016
Shareholders’
(Reference)
equity
Net assets
Net assets per share
Equity ratio
Million yen
Million yen
％
13,561
13,095
8,125
8,025
49.9
51.1
31DEC2016
6,773 Million yen
30SEP2016
Yen
554.08
548.80
6,695 Million yen
２．Dividends
Dividend per share
End of 1Q
End of 2Q
Yen
End of 3Q
Yen
Year-end
Yen
FY2016
―
0.00
―
FY2017
―
FY2017(Forecast)
5.00
―
(Note) Revisions to dividend forecasts published most recently: None
Total
Yen
Yen
13.00
13.00
13.00
18.00
(Note) Breakdown of the 2nd Quarter dividend forecast: 5.00 yen Commemorative Dividend
３．Consolidated Forecast for the Fiscal Year Ending 30 September 2017 (1OCT2016 – 30SEP2017)
(Percentage figures for the fiscal year represent the changes from the previous year)
Net income per
Net sales
Operating income Ordinary income
Net income
share
Million yen
％
Million yen
％
Million yen
％
FY2017
20,000
4.0
1,400 16.6
1,400 15.6
(Note) Revisions to most recently published financial forecasts: None
―1―
Million yen
％
Yen
750 △20.3
61.47
※ Notes
（１）Changes of important subsidiaries during period
： None
（２）Application of particular accounts procedures to the
preparation of quarterly consolidated financial statements
： None
（３）Changes in accounting policies and changes or restatement of accounting estimates
①
Changes in accounting policies caused by revision of
accounting standards
： None
②
Changes in accounting policies other than ①
： None
③
Changes in accounting estimates
： None
④
Restatement
： None
（４）Number of shares outstanding (common shares)
①
Number of shares outstanding at the end of
period (including treasury shares)
②
Number of treasury shares at end of period
③
Average number of shares outstanding
during the term
※
1Q FY2017
12,266,600
shares
1Q FY2017 42,418 shares
1Q FY2017
12,209,151
shares
FY2016
FY2016
1Q FY2016
12,266,600
shares
66,218 shares
12,195,696
shares
Status of a quarterly review
This financial summary does not need to undergo a quarterly review under the Financial Instruments and
Exchange Act. 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 result forecasts included in this document are based on the information
available to the Company at the time of the announcement and on certain assumptions 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
5
（３）Report on Forecast Information including Consolidated Results
5
２．Notes on Summary Information
6
（１）Important transfers concerning the subsidiaries
this consolidated cumulative quarter
6
（２）Particular account processes in the preparation of
the quarterly consolidated financial statements
6
（３）Accounting changes, changes in accounting estimates, restatements
6
３．Quarterly Financial Statements
7
（１）Quarterly Consolidated Balance Sheet
7
（２）Quarterly Consolidated Profit & Loss Statement and
Quarterly Consolidated Statement of Comprehensive Income
9
Quarterly Consolidated Profit & Loss Statement
Consolidated Cumulative 3rd Quarter
9
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative 3rd Quarter
（３）Notes to Quarterly Financial Statements
9
11
(Notes regarding the premise of a going concern)
11
(Notes regarding any significant changes in the amount of shareholder’s equity)
11
(Segment Information, etc.)
12
―3―
１．Qualitative Information for this Quarter’s Results
（１）Business Performance Report
The BEENOS Group aims to become the “Neo-General Trading Company” by breaking new ground in IT and
internet based markets and businesses. This fiscal year’s strategical focus is to “Expand the domestic circulation
network and pioneer new contents,” “Broaden and strengthen network with foreign marketplaces,” and “Expand
the global commerce network through domestic and international investments and consultation.”
As a result, the 1st quarter consolidated net sales were 4,970 Million JPY (+6.8% from 1Q FY2016), the
operating income was 88 Million JPY (-52.5% from 1Q FY2016), the ordinary income was 76 Million JPY (-59.6%
from 1Q FY2016) and the net loss attributable to owners of the parent company was 89 Million JPY (net profit
attributable to owners of the parent company for 1Q FY2016 was 109 Million JPY).
The reason for the decrease in operating income and ordinary income compared to 1Q FY2016 is mainly
because there were no profits on operational investment securities in this quarter for the Incubation Business.
The E-Commerce Business is seeing an increase in revenue and profit. Also, the loss in profit attributable to
owners of the parent company occurred mainly because of the drawdown of deferred tax assets.
The achievements of each business segment are as follows.
①
E-Commerce Business
The Cross Border Business’s Overseas Forwarding and Proxy Purchasing Business FROM JAPAN has
increased the number of compatible websites for its proxy purchasing service “Buyee” and has actively invested
in shipping fee discount promotions. It has also increased the number of accepted currencies for online payments
to better the service’s usability. The depreciated yen also served as a tailwind to boost GMV, net sales and
operating income.
The Global Shopping Business TO JAPAN implemented new services and systems as a result of the
internalization of its US warehouse and customer support. It also increased the number of marketing channels
to increase GMV, net sales and operating income.
As a result, the consolidated net sales were 1,006 Million JPY (+6.6% from 1Q FY2016) and the operating
income was at a record high 158 Million JPY (+487.8% from 1Q FY2016).
The Value Cycle Business on the purchasing side has continued to conduct mass advertising for its brandname product buy back service website “Brandear” from the previous quarter along with the upgrading of the
group of buyback affiliated websites to increase usability. It has also tied-up with a fashion EC website for
buyback services. As a result, buyback items and value have both increased. The vending side has conducted a
systems upgrade of its “Brandear Auction” site to increase usability and listed a lot of big ticket items for the
year-end holiday season and saw a healthy increase in net sales.
The Value Cycle Business has also made anticipatory investments in hiring more engineers to develop and
operate a new system compatible for the long term growth of the business.
As a result, the consolidated net sales were 2,664 Million JPY (+12.3% from 1Q FY2016) and the operating
income was 12 Million JPY (-17.5% from 1Q FY2016).
The Producing and Licensing Business of the Retailing and Licensing Business has strengthened its EC by
renewing the official EC websites of popular singing groups and the artists which it holds the master licensing
rights of. It also conducted a trial to increase the awareness of Japanese artist brands in the global distribution
market by selling its master licensed brand products at a store in Taiwan.
The Internet Shopping Business has increased its conversion rate by evolving its customer portfolio
management and used its resources to increase the development and sales of its original fashion and beauty
products.
As a result, the consolidated net sales were 1,296 Million JPY (+12.4% from 1Q FY2016) and the operating
―4―
income was 47 Million JPY (-10.3% from 1Q FY2016).
For the E-Commerce Business as a whole this quarter, the consolidated net sales were 4,967 Million JPY
(+11.1% from 1Q FY2016) and the operating income was 219 Million JPY (+129.4% from 1Q FY2016).
②
Incubation Business
The Incubation Business has continued to invest in businesses in online general marketplaces and online
payments in prominent emerging countries along with investing in specialized online marketplaces. It has been
focusing on large markets including automobile, real estate, fashion and healthcare.
It has also seen a business opportunity in the increasing number of foreign visitors to Japan and has invested
domestically in a business in the online homestay/guest house marketplace that offers a collective management
tool for that market.
As a result, the consolidated net sales were 2 Million JPY (-98.7% from 1Q FY2016) and the operating loss was
37 Million JPY (the operating income for 1Q FY2016 was 166 Million JPY).
（２）Financial Status Report
①Financial Status Analysis
（ⅰ）Assets
The total assets for the first quarter consolidated accounting period was 13,561 Million JPY which is an
increase of 466 Million JPY from the previous end of the consolidated fiscal year.
The breakdown of the funds are the following: Total current assets are at 12,057 Million JPY which is a 270
Million JPY increase from the end of FY2016. Increasing factors include 547 Million JPY in operational
investment securities, 226 Million JPY in accounts receivable and 192 Million JPY in notes and accounts
receivable-trade. Decreasing factors include 585 Million JPY in cash and deposits and 145 Million JPY in
deferred tax assets-current.
Furthermore, the total fixed assets rose to 1,504 Million JPY which is a 196 Million JPY increase from the
previous end of the consolidated fiscal year. The main factors were a 109 Million JPY increase in investment
account security and a 58 Million JPY increase in goodwill.
（ⅱ）Liabilities
The total liabilities for the first quarter consolidated accounting period was 5,436 Million JPY which is a 366
Million JPY increase from the previous end of the consolidated fiscal year.
The breakdown of the funds are the following: Total current liabilities are at 5,167 Million JPY which is a 336
Million JPY increase from the previous end of the consolidated fiscal year. Increasing factors include 297 Million
JPY in deposits received, 162 Million JPY in accounts payable, and 60 Million JPY in short-term loans.
Decreasing factors include 111 Million JPY in income taxes payable.
Furthermore, total fixed liabilities rose to 269 Million JPY which is a 30 Million JPY increase from the
previous end of the consolidated fiscal year. The main factor was a 30 Million JPY in long-term loans.
（ⅲ）Net Assets
The total net assets for the first quarter consolidated accounting period was 8,125 Million JPY which is a 99
Million JPY increase from the previous end of the consolidated fiscal year. Increasing factors include 250 Million
JPY in exchange conversion adjustment account and 70 Million JPY in valuation difference on available-for-sale
securities. Decreasing factors include 188 Million JPY in capital surplus and 89 Million JPY in earned surplus.
（３）Report on Forecast Information including Consolidated Results
There are no changes to the forecasts made on 27 October 2016 for the 2017 Fiscal Year.
―5―
２．Notes on Summary Information
（１）Important transfers concerning the subsidiaries this consolidated cumulative quarter
Not applicable.
（２）Particular account processes in the preparation of the quarterly consolidated financial statements
Not applicable.
（３）Accounting changes, changes in accounting estimates, restatements
Not applicable.
（４）Additional Information
(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
The “Implementation Guidance on Recoverability of Deferred Tax Assets” (Accounting Standards Board of Japan
Guidance No. 26, 28 March 2016) has been applied as of the 1 st quarter’s consolidated fiscal results.
―6―
３．Quarterly Financial Statements
（１）Quarterly Consolidated Balance Sheet
(Unit: 1,000 JPY)
Year-end FY2016
(30 September 2016)
1Q FY2017
(31 December 2016)
Assets Section
Current Assets
Cash and Deposit
Notes and Accounts Receivable-trade
6,307,317
914,843
5,722,174
1,107,767
Operational Investment Securities
Products
1,605,068
1,187,282
2,152,115
1,236,106
Accounts Receivable
Deferred Tax Assets – Current
892,956
195,344
1,119,855
49,484
Other
Allowance for Cancellation Loss
704,306
△20,076
688,989
△19,116
11,787,041
12,057,376
327,914
△151,083
344,184
△158,546
176,831
185,637
117,057
△82,382
122,349
△86,858
34,674
35,491
211,506
221,129
58,758
117,661
Other
121,222
139,639
Total Intangible Assets
179,981
257,301
Investment Account Security
Deferred Tax Assets – Current
484,061
19,016
593,257
18,299
Other
Allowance for Cancellation Loss
415,300
△1,749
414,333
―
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
Investments etc.
Total Investments etc.
Total Fixed Assets
Total Assets
―7―
916,628
1,025,890
1,308,116
1,504,322
13,095,158
13,561,698
(Unit: 1,000 JPY)
Year-end FY2016
(30 September 2016)
1Q FY2017
(31 December 2016)
Liabilities Section
Current Liabilities
Accounts Payable
Short-term Loans
395,301
914,655
557,328
975,160
20,160
2,486,366
19,992
2,456,434
Deposits Received
Income Taxes Payable
292,712
245,083
590,430
133,675
Deferred Tax Debts – Non current
Other
79
476,275
23,779
410,292
4,830,634
5,167,093
74,842
148,144
104,932
148,507
7,740
8,188
7,998
7,613
Current Portion of Long-term Debts
Accounts Payable – Other
Total Current Liabilities
Fixed Liabilities
Long-term Loan
Deferred Tax Debts – Non current
Asset Retirement Obligation
Other
Total Fixed Liabilities
238,915
269,051
5,069,549
5,436,144
2,725,977
2,725,977
Common Stock for Treasury
3,129,121
955,054
△94,498
2,940,742
865,860
△60,484
Total Capital Stock
6,715,654
6,472,095
△42,932
27,494
22,834
273,614
△20,097
301,108
14,235
1,315,815
6,299
1,346,050
Total Liabilities
Net Assets Section
Capital Stock
Capital Stock
Capital Surplus
Earned Surplus
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
Total Net Assets
Total Liabilities
―8―
8,025,608
8,125,554
13,095,158
13,561,698
（２）Quarterly Consolidated Profit & Loss Statement and Quarterly Consolidated Statement of Comprehensive
Income
Quarterly Consolidated Profit & Loss Statement
Consolidated Cumulative 1st Quarter
1Q FY2016
(1 October 2015 –
31 December 2015)
4,655,380
2,279,710
(Unit: 1,000 JPY)
1Q FY2017
(1 October 2016 –
31 December 2016)
4,970,334
2,424,975
Gross Sales
2,375,670
2,545,359
Selling, General and Administrative Expenses
2,190,162
2,457,213
185,508
88,145
19
50
―
853
1,149
5,769
Other
8,310
2,131
Total Non-operating Income
9,183
9,101
979
3,320
2,727
16,857
403
0
444
454
4,703
20,484
Ordinary Income
189,988
76,762
Quarterly Income Before Income Taxes
189,988
76,762
35,232
42,846
10,784
151,413
Net Sales
Cost of Sales
Operating Income
Non-operating Income
Interest Income
Gain on bad debts recovered
Gain on investments in partnership
Non-operating Expenses
Interest Expenses
Exchange Loss
Equity in Losses of Affiliates
Other
Total Non-operating Expenses
Income Taxes – Current
Income Taxes – Deferred
Total Income Taxes
Quarterly Net Income
Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent
―9―
78,079
162,197
111,909
△85,435
2,661
3,758
109,248
△89,194
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative 1st 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 Equity Method
Quarterly Comprehensive Income
1Q FY2016
(1 October 2015 –
31 December 2015)
111,909
(Unit: 1,000 JPY)
1Q FY2017
(1 October 2016 –
31 December 2016)
△85,435
△7,349
70,569
158
237,001
557
13,634
△6,633
321,205
105,276
235,770
102,615
232,011
2,661
3,758
(Breakdown)
Comprehensible Income Attributable to Owners
of the Parent
Comprehensible Income Attributable to Noncontrolling Interests
―10―
（３）Notes to Quarterly Financial Statements
(Notes regarding the premise of on-going concerns)
Not Applicable
(Notes regarding any significant changes in the amount of shareholder’s equity)
Not Applicable
―11―
(Segment Information, etc.)
Previous Consolidated Cumulative 1st Quarter (1 October 2015 ~ 31 December 2015)
Ⅰ
１．Information regarding the amount of sales and profit or loss by reporting segment
(Unit: 1,000 JPY)
Recorded
Amount on
Quarterly
Adjustments
Consolidated
*1
Profit & Loss
Statement
*2
Reporting Segment
E-Commerce Business
Subtotal
Incubation
Business
Total
1,153,752
4,470,851
184,529
4,655,380
―
4,655,380
―
―
―
―
―
―
―
943,956
2,373,142
1,153,752
4,470,851
184,529
4,655,380
―
4,655,380
27,019
15,709
52,773
95,502
166,926
262,428
△76,920
185,508
Cross
Border
Business
Value
Cycle
Business
943,956
2,373,142
―
Total
Segment Earnings
Retailing
Licensing
Business
Net Sales
Sales
to Customers
Internal Sales
or
Transfers
Between
Segments
*１．The segment earnings adjustment of △76 Million JPY includes the deletion of inter-segment
transactions of △79 Million JPY, company-wide revenue of 147 Million JPY that is not distributed to each
reporting segment and company-wide costs of △144 Million JPY. Company-wide revenues are mainly the
Company’s received commission from each subsidiary. Company-wide costs are mainly the Company’s
administrative costs toward the subsidiaries.
*２．Segment profits are adjusted in the operating income of the Quarterly Consolidated Profit & Loss
Statement
Current Consolidated Cumulative 1st Quarter (1 October 2016 ~ 31 December 2016)
Ⅱ
１．Information regarding the amount of sales and profit or loss by reporting segment
(Unit: 1,000 JPY)
Recorded
Amount on
Quarterly
Adjustments
Consolidated
*1
Profit & Loss
Statement
*2
Reporting Segment
E-Commerce Business
Retailing
Licensing
Business
Incubation
Business
Cross
Border
Business
Value
Cycle
Business
1,006,613
2,664,498
1,296,831
4,967,943
2,391
4,970,334
―
4,970,334
―
―
―
―
―
―
―
―
1,006,613
2,664,498
1,296,831
4,967,943
2,391
4,970,334
―
4,970,334
158,809
12,967
47,347
219,124
△37,613
181,510
△93,365
88,145
Subtotal
Total
Net Sales
Sales
to Customers
Internal
Sales
or
Transfers
Between
Segments
Total
Segment
Earnings
*１．The segment earnings adjustment of △93 Million JPY includes the deletion of inter-segment
transactions of △53 Million JPY, company-wide revenue of 121 Million JPY that is not distributed to each
reporting segment and company-wide costs of △161 Million JPY. Company-wide revenues are mainly the
Company’s received commission from each subsidiary. Company-wide costs are mainly the Company’s
administrative costs toward the subsidiaries.
*２．Segment profits are adjusted in the operating income of the Quarterly Consolidated Profit & Loss
Statement
―12―