Abbreviated Version
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 Second Quarter Ended 31 March 2017 (2Q FY2017)
28 April 2017
Tokyo
Company Name
BEENOS Inc.
Stock Exchange Listing
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
12MAY2017
―
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 Second Quarter Ended 31 March 2017
(1 October 2016 – 31 March 2017)
（１）Consolidated Results of Operations
(Accumulated Total)
(％ show year-on-year changes)
Net sales
％
Million yen
％
10,019
9195
9.0
11.5
398
479
△16.8
△35.9
2Q FY2017
2Q FY2016
(Note)
Comprehensive
Income
Operating income
Million yen
2Q FY2017
422 Mil. yen ( 101.3％)
Ordinary income
Million yen
453
508
2Q FY2016
Net income
％
Million yen
％
△10.9
△30.9
104
300
△65.3
△50.7
210 Mil. yen
( △72.6 ％)
Net income per share Net income per share
(basic)
(diluted)
Yen
2Q FY2017
2Q FY2016
Yen
8.52
24.64
8.51
24.59
（２）Consolidated Financial Position
Total assets
2Q FY2017
FY2016
Shareholders’
(Reference)
equity
Net assets
Net assets per share
Equity ratio
Million yen
Million yen
％
13,481
13,095
8,416
8,025
51.8
51.1
2Q FY2017
6,979 Million yen
FY2016
Yen
567.74
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
―
5.00
FY2017(Forecast)
―
(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
Abbreviated Version
※ 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
2Q FY2017
2Q FY2017
2Q FY2017
12,332,600
shares
39,418 shares
12,243,073
shares
FY2016
FY2016
2Q FY2016
12,266,600
shares
66,218 shares
12,197,951
shares
※
This financial summary is not subject to a quarterly review.
※
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―
Abbreviated Version
Breakdown of the Dividend for Capital Surplus as Dividend Resources
The breakdown of the dividend for capital surplus as dividend resources for FY 2016 is as follows:
Reference date
Year-end
Dividends per share
Total amount of dividends
(Note)
Total
13.00 Yen
13.00 Yen
158 Million yen
158 Million yen
Capital diminution rate 0.023
The breakdown of the dividend for capital surplus as dividend resources for FY 2017 is as follows:
Reference date
Dividends per share
Total amount of dividends
(Note)
2Q end
Total
5.00 Yen
5.00 Yen
61 Million yen
61 Million yen
Capital diminution rate 0.009
―3―
Abbreviated Version
○Table of Contents
１．Qualitative Information for this Quarter’s Results
5
（１）Business Performance Report
5
（２）Financial Status Report
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 2nd Quarter
10
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative 2nd Quarter
11
（４）Notes to Quarterly Financial Statements
12
(Notes regarding the premise of a going concern)
12
(Notes regarding any significant changes in the amount of shareholder’s equity)
12
(Segment Information, etc.)
13
―4―
Abbreviated Version
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 2nd quarter consolidated net sales were 10,019 Million JPY (+9.0% from 2Q FY2016), the
operating income was 398 Million JPY (-16.8% from 2Q FY2016), the ordinary income was 453 Million JPY (10.9% from 2Q FY2016) and the net profit attributable to owners of the parent company was 104 Million JPY (65.3% from 2Q FY2016).
The reason for the decrease in operating income and ordinary income compared to 2Q 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.
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 2,063 Million JPY (+7.7% from 2Q FY2016) and the operating
income was at 314 Million JPY (+199.2% from 2Q 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 as well as increased sales channels while
posting items on them simultaneously to generate a healthy increase in net sales and operating income. It has
also achieved the “Yahoo! Auction Overall Annual Best Store Grand Prix” for the 8 th consecutive year.
As a result, the consolidated net sales were 5,407 Million JPY (+10.9% from 2Q FY2016) and the operating
income was 301 Million JPY (+7.6% from 2Q 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 which led to an increase in sales and
operating income.
Furthermore, it has made SWATi inc., a company specializing in the planning and distribution of interior
goods such as candles, a subsidiary to strengthen its product and market development.
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. However, the decrease in gross margin rate due to inventory disposal has led to an operating loss.
―5―
Abbreviated Version
As a result, the consolidated net sales were 2,546 Million JPY (+14.5% from 2Q FY2016) and the operating
income was 65 Million JPY (-40.7% from 2Q FY2016).
For the E-Commerce Business as a whole this quarter, the consolidated net sales were 10,017 Million JPY
(+11.1% from 2Q FY2016) and the operating income was 681 Million JPY (+37.5% from 2Q FY2016), which was
a record high.
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 3 Million JPY (-98.2% from 2Q FY2016) and the operating loss was
79 Million JPY (the operating income for 2Q FY2016 was 141 Million JPY).
（２）Financial Status Report
①Financial Status Analysis
（ⅰ）Assets
The total assets for the 2nd quarter consolidated accounting period was 13,481 Million JPY which is an
increase of 386 Million JPY from the previous end of the consolidated fiscal year.
The breakdown of the funds are the following: Total current assets are at 11,906 Million JPY which is a 119
Million JPY increase from the end of FY2016. Increasing factors include 585 Million JPY in operational
investment securities. Decreasing factors include 176 Million JPY in notes and accounts receivable-trade, 134
Million JPY in merchandise, 108 Million JPY in deferred tax assets-current and 51 Million JPY in cash and
deposits and.
Furthermore, the total fixed assets rose to 1,575 Million JPY which is a 267 Million JPY increase from the
previous end of the consolidated fiscal year. The main factors were a 99 Million JPY increase in investment
account security, a 56 Million JPY increase in buildings and structures, a 50 Million JPY increase in goodwill
and a 25 Million JPY increase in software which is included in intangible assets.
（ⅱ）Liabilities
The total liabilities for the 2nd quarter consolidated accounting period was 5,065 Million JPY which is a 4,443
Million JPY decrease from the previous end of the consolidated fiscal year.
The breakdown of the funds are the following: Total current liabilities are at 4,793 Million JPY which is a 36
Million JPY decrease from the previous end of the consolidated fiscal year. Increasing factors include 249 Million
JPY in deposits received, 128 Million JPY in accounts payable, and 35 Million JPY in short-term loans.
Decreasing factors include 372 Million JPY in accounts payable and 75 Million JPY in income taxes payable.
Furthermore, total fixed liabilities rose to 271 Million JPY which is a 32 Million JPY increase from the
previous end of the consolidated fiscal year. The main factor was a 22 Million JPY in long-term loans and 12,228
Million JPY in asset retirement obligations.
（ⅲ）Net Assets
The total net assets for the 2nd quarter consolidated accounting period was 8,416 Million JPY which is a 390
Million JPY increase from the previous end of the consolidated fiscal year. Increasing factors include 162 Million
JPY in exchange conversion adjustment account, 115 Million JPY in non-controlling interests and 106 Million
JPY in earned surplus.
―6―
Abbreviated Version
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.
―7―
Abbreviated Version
３．Quarterly Financial Statements
（１）Quarterly Consolidated Balance Sheet
(Unit: 1,000 JPY)
Year-end FY2016
(30 September 2016)
2Q FY2017
(31 March 2017)
Assets Section
Current Assets
Cash and Deposit
Notes and Accounts Receivable-trade
6,307,317
914,843
6,255,368
737,987
Operational Investment Securities
Products
1,605,068
1,187,282
2,190,445
1,052,373
Accounts Receivable
Deferred Tax Assets – Current
892,956
195,344
972,570
86,641
Other
Allowance for Cancellation Loss
704,306
△20,076
624,947
△14,239
11,787,041
11,906,094
327,914
△151,083
384,859
△166,246
176,831
218,612
117,057
△82,382
124,630
△91,281
34,674
33,349
211,506
251,962
58,758
109,431
Other
121,222
146,848
Total Intangible Assets
179,981
256,279
Investment Account Security
Deferred Tax Assets – Current
484,061
19,016
583,472
23,272
Other
Allowance for Cancellation Loss
415,300
△1,749
460,488
-
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
―8―
916,628
1,067,233
1,308,116
1,575,475
13,095,158
13,481,569
Abbreviated Version
(Unit: 1,000 JPY)
Year-end FY2016
(30 September 2016)
2Q FY2017
(31 March 2017)
Liabilities Section
Current Liabilities
Accounts Payable
Short-term Loans
395,301
914,655
524,179
949,830
20,160
2,486,366
28,495
2,113,405
Deposits Received
Income Taxes Payable
292,712
245,083
542,385
169,714
Deferred Tax Debts – Non current
Other
79
476,275
16,543
449,309
4,830,634
4,793,862
74,842
148,144
97,462
160,372
7,740
8,188
6,378
7,031
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
271,244
5,069,549
5,065,106
2,725,977
2,775,840
Common Stock for Treasury
3,129,121
955,054
△94,498
2,988,482
1,061,961
△56,197
Total Capital Stock
6,715,654
6,770,087
△42,932
23,869
22,834
185,376
△20,097
209,246
14,235
1,315,815
5,611
1,431,517
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
―9―
8,025,608
8,416,462
13,095,158
13,481,569
Abbreviated Version
（２）Quarterly Consolidated Profit & Loss Statement and Quarterly Consolidated Statement of Comprehensive
Income
Quarterly Consolidated Profit & Loss Statement
Consolidated Cumulative 2nd Quarter
2Q FY2016
(1 October 2015 –
31 March 2016)
9,195,671
4,424,356
(Unit: 1,000 JPY)
2Q FY2017
(1 October 2016 –
31 March 2017)
10,019,417
4,818,017
Gross Sales
4,771,314
5,201,399
Selling, General and Administrative Expenses
4,292,074
4,802,472
479,240
398,927
310
86
－
Net Sales
Cost of Sales
Operating Income
Non-operating Income
Interest Income
Exchange Gains
Equity in Earnings of Affiliates
Gain on investments in partnership
Gain on bad debts recovered
5,509
13,906
－
－
Other
18,111
5,224
Total Non-operating Income
37,837
71,069
3,097
－
5,699
10,060
－
5,664
367
－
43
860
32,978
31,629
1,149
Non-operating Expenses
Interest Expenses
Exchange Loss
Equity in Loss of Affiliates
Loss on investments in partnership
Other
8,805
16,988
Ordinary Income
Total Non-operating Expenses
508,273
453,008
Quarterly Income Before Income Taxes
508,273
453,008
Income Taxes – Current
142,650
152,065
Income Taxes – Deferred
27,123
107,430
Total Income Taxes
169,773
259,496
Quarterly Net Income
338,499
193,511
Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent
―10―
37,934
89,225
300,564
104,286
Abbreviated Version
Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative 2nd 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
2Q FY2016
(1 October 2015 –
31 March 2016)
338,499
(Unit: 1,000 JPY)
2Q FY2017
(1 October 2016 –
31 March 2017)
193,511
△22,101
66,907
△102,576
153,620
△3,750
8,815
△128,428
229,343
210,070
422,855
172,136
333,629
37,934
89,225
(Breakdown)
Comprehensible Income Attributable to Owners
of the Parent
Comprehensible Income Attributable to Noncontrolling Interests
―11―
Abbreviated Version
（４）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
―12―
Abbreviated Version
(Segment Information, etc.)
Previous Consolidated Cumulative 2nd Quarter (1 October 2015 ~ 31 March 2016)
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
2,224,333
9,015,762
179,909
9,195,671
―
9,195,671
―
―
―
―
―
―
―
1,916,795
4,874,633
2,224,333
9,015,762
179,909
9,195,671
―
9,195,671
105,217
279,745
110,563
495,527
141,721
637,248
△158,008
479,240
Cross
Border
Business
Value
Cycle
Business
1,916,795
4,874,633
―
Retailing
Licensing
Business
Net Sales
Sales
to Customers
Internal Sales
or
Transfers
Between
Segments
Total
Segment
Earnings
*１．The segment earnings adjustment of △158 Million JPY includes the deletion of inter-segment
transactions of △75 Million JPY, company-wide revenue of 213 Million JPY that is not distributed to each
reporting segment and company-wide costs of △295 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 2nd Quarter (1 October 2016 ~ 31 March 2017)
Ⅱ
１．Information regarding the amount of sales and profit or loss by reporting segment
(Unit: 1,000 JPY)
Reporting Segment
E-Commerce Business
Retailing
Licensing
Business
Incubation
Business
Adjustments
*1
Recorded
Amount on
Quarterly
Consolidated
Profit & Loss
Statement
*2
Cross
Border
Business
Value
Cycle
Business
2,063,417
5,407,850
2,544,826
10,016,094
3,322
10,019,417
－
10,019,417
－
－
1,233
1,233
－
1,233
△1,233
－
2,063,417
5,407,850
2,546,060
10,017,328
3,322
10,020,650
△1,233
10,019,417
314,799
301,022
65,614
681,436
△79,880
601,556
△202,628
398,927
Subtotal
Total
Net Sales
Sales
to Customers
Internal
Sales
or
Transfers
Between
Segments
Total
Segment
Earnings
*１．The segment earnings or loss adjustment of △202 Million JPY includes the deletion of inter-segment
transactions of △52 Million JPY, company-wide revenue of 190 Million JPY that is not distributed to each
reporting segment and company-wide costs of △340 Million JPY. Company-wide revenues are mainly the
Company’s received commission from each subsidiary within the Group. 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
―13―