Translation
Notice: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the latter shall prevail.

Summary of Consolidated Financial Results
for the First Three Quarters of the Fiscal Year Ending March 2024
(Based on Japanese GAAP)
February 9, 2024
Company name: Interworks Confidence Inc.

Listing exchange: Tokyo Stock Exchange

Securities code: 7374

URL: https://ciw.jp/

Representative: Nobuyuki Takushi, President
Inquiries:

Koji Nagai, Director in charge of Administration Division

Scheduled date for filing quarterly securities report:

Phone: +81-3-5312-7700

February 9, 2024

Scheduled date for commencing dividend payments: Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefing session:

No(Amounts are rounded down to the nearest million yen, unless otherwise noted)
1. Consolidated Financial Results for the First Three Quarters (April 1, 2023 to December 31, 2023) of the Fiscal Year Ending March 31, 2024
(1) Consolidated Operating Results (Cumulative)(Percentage figures represent year-on-year changes)
Profit attributable to
Revenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
First three quarters ended
5,377 39.3
895 20.7
843 13.7
547
8.7
December 31, 2023
First three quarters ended
3,861 19.0
742 31.3
741 32.8
503 23.0
December 31, 2022
(Note) Comprehensive income
First three quarters ended December 31, 2023: 547 million yen [8.7%]
First three quarters ended December 31, 2022: 503 million yen [23.0%]

First three quarters ended
December 31, 2023
First three quarters ended
December 31, 2022

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

95.59

93.92

109.92106.54(2) Consolidated Financial Position
Total assets
As of December 31, 2023
As of March 31, 2023
(end of previous fiscal year)(Reference) Total shareholders’ equity
As of December 31, 2023:
As of March 31, 2023:

Net assets

Equity ratio

Millions of yen
6,747

Millions of yen
5,762

%
85.1

2,892

2,023

69.6

5,740 million yen
2,012 million yen

2. Cash Dividends
Annual dividends per share
End of 1st quarter End of 2nd quarter End of 3rd quarter
Yen
–
–

Yen
20.00
25.00

Fiscal year ended March 2023
Fiscal year ending March 2024
Fiscal year ending March 2024
(Forecast)(Note) Revisions to the most recently announced dividend forecast: No

Yen
–
–

Fiscal year-end

Total

Yen
28.00

Yen
48.00

30.00

55.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)(Percentage figures indicate year-on-year changes)
Profit attributable to Basic earnings
Revenue
Operating profit
Ordinary profit
owners of parent
per share
Millionsofyen%Millions
of
yen
%
Yen
Millions of yen% Millions of yen%
Full year
8,000 53.9
1,120 20.0
1,065 14.8
725 17.3
118.58(Note) Revisions to the most recently announced earnings forecast: No* Notes(1) Changes in significant subsidiaries during the quarter (changes in specified subsidiaries resulting in change in scope of
consolidation): No(2) Application of accounting treatments specific to the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
1) Changes in accounting policies due to revisions to accounting standards and other regulations: No
2) Changes in accounting policies other than those in 1) above:No3) Changes in accounting estimates:

Yes

4) Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023
6,609,977 shares As of March 31, 2023
2) Number of treasury shares at the end of the period
As of December 31, 2023
5,203 shares As of March 31, 2023
3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
First three quarters ended
First three quarters ended December
5,726,771 shares
December 31, 2023
31, 2022

4,623,000 shares
46 shares
4,582,667 shares* This summary of financial results is not subject to quarterly review procedures by a public accountant or audit corporation.
* Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information currently available
to and certain assumptions that are thought to be reasonable by the Company. Accordingly, such statements should not be
construed as a guarantee of achieving the results by the Company. Actual financial results and the like may differ materially due tovarious factors.

Contents of Attachment
1. Quarterly Consolidated Financial Statements and Major Notes ........................................................................................................... 2(1) Quarterly Consolidated Balance Sheets .......................................................................................................................................... 2(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income .................... 4
Quarterly Consolidated Statements of Income ............................................................................................................................... 4(Cumulative) ................................................................................................................................................................................ 4
Quarterly Consolidated Statements of Comprehensive Income ..................................................................................................... 5(Cumulative) ................................................................................................................................................................................ 5(3) Notes to Quarterly Consolidated Financial Statements .................................................................................................................. 6(Notes on Going Concern Assumption) ........................................................................................................................................... 6(Notes in Case of Significant Changes in the Amounts of Shareholder’s Equity) ............................................................................ 6(Change in Accounting Estimate) .................................................................................................................................................... 6(Segment Information, Etc.) ............................................................................................................................................................ 6(Business Combinations, Etc.) ......................................................................................................................................................... 7(Significant Subsequent Events) ...................................................................................................................................................... 7

1

1. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
Third quarter ofcurrent fiscal year
(As of December 31, 2023)

Previous fiscal year
(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits

2,047,536

3,653,220

Accounts receivable - trade
Accounts receivable - other572,768
418

768,996
16,894

Other
Allowance for doubtful accounts

41,291-

108,297(5,094)

2,662,015

4,542,315

46,334(2,464)

123,452(44,951)

43,86978,500Tools, furniture and fixtures

47,859102,755

Accumulated depreciation(22,122)(73,813)

Tools, furniture and fixtures, net

25,73628,941

Total property, plant and equipment

69,606

107,442

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net

Intangible assets
Goodwill-

1,581,062

17,193-

123,708
13,000128-

17,321

1,717,772

Investment securities
Deferred tax assets

20,90056,48335,900116,497

Guarantee deposits
Other

64,693
1,300

224,509
3,227

-

(22)

Software
Software in progress
Trademark right
Total intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

2

143,377

380,112230,305

2,205,327

2,892,320

6,747,643

(Thousands of yen)
Third quarter ofcurrent fiscal year
(As of December 31, 2023)

Previous fiscal year
(As of March 31, 2023)
Liabilities
Current liabilities
Current portion of long-term borrowings
Accounts payable - trade

22,5002,270

73,981

Accounts payable - otherAccrued expenses

80,588283,333

199,911356,684

Income taxes payable
Accrued consumption taxes

216,116
129,22270,738
139,410

Deposits received
Contract liabilities

18,953-73,586
2,727

Refund liabilities
Provision for bonuses

97
115,632

7,443
61,087

Total current liabilities

868,715

985,570

Non-current liabilities
Deferred tax liabilities

11

-

11

-

868,726

985,570

Share capital
Capital surplus

508,034
400,028

509,484
3,882,406

Retained earnings
Treasury shares

1,104,231(83)

1,357,071(8,390)Total shareholders’ equity

2,012,210

5,740,571

11,38321,5002,023,594

5,762,072

2,892,320

6,747,643

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Share acquisition rights
Total net assets
Total liabilities and net assets3(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(Cumulative)
First three quarters ofprevious fiscal year
(April 1, 2022 –December 31, 2022)
3,861,482(Thousands of yen)First three quarters ofcurrent fiscal year
(April 1, 2023 –December 31, 2023)
5,377,382

Cost of sales

2,497,095

2,954,414

Gross profit

Revenue

1,364,387

2,422,968

Selling, general and administrative expenses

622,138

1,527,218

Operating profit

742,249

895,750

Non-operating income
Interest income
Rental income from buildings
Subsidy income
Other
Total non-operating income

8

42

30
-

1,205
279

-

262

38

1,789

Non-operating expenses
Interest expenses

645

37

Commission expenses
Other

207
-

53,501
678

Total non-operating expenses

852

54,217

741,435

843,322

Gain on reversal of share acquisition rights

759-

Total extraordinary income

759

-

2,873
10,157

4,507

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Office relocation expenses

13,031

4,507

Profit before income taxes

Total extraordinary losses

729,164

838,814

Income taxes - current

204,084

219,179

Income taxes - deferred

21,366

72,232

Total income taxes

225,451

291,411

Profit503,712547,402

Profit attributable to non-controlling interests
Profit attributable to owners of parent

4

-

-

503,712547,402

Quarterly Consolidated Statements of Comprehensive Income(Cumulative)

ProfitOther comprehensive income
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

5(Thousands of yen)First three quarters ofprevious fiscal year
(April 1, 2022 –December 31, 2022)
503,712First three quarters ofcurrent fiscal year
(April 1, 2023 –December 31, 2023)
547,402--503,712547,402503,712547,402--(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.

(Notes in Case of Significant Changes in the Amounts of Shareholder’s Equity)
The Company merged with Interworks, Inc. as of August 1, 2023, and allotted and issued 0.205 shares of common stock ofConfidence for each share of common stock of Interworks. As a result of the merger, capital surplus increased by 3,480,927
thousand yen to 3,882,406 thousand yen as of the end of the third quarter of the current consolidated fiscal year.
(Change in Accounting Estimate)(Change in estimated useful life)
The Company made a resolution at its Board of Directors’ meeting held on November 17, 2023 regarding the relocation of
the Tokyo Office. In association with this, the useful life of non-current assets that are unlikely to be used after the relocation
has been shortened, which will be applied prospectively.
As a result of this change in the estimate, operating profit, ordinary profit and profit before income taxes for the first threequarters of the current fiscal year decreased by 5,934 thousand yen, respectively, compared with the previous estimate
method.
(Segment Information, Etc.)[Segment information]
I. First three quarters of the previous fiscal year (April 1, 2022 – December 31, 2022)
1. Information on revenue and profit or loss and revenue breakdown by reportable segment(Thousands of yen)Amountrecorded inquarterly
Adjustments
statements of(Note 1)income(Note 2)

Reportable segment
HR Solution
business Staffing/
Outsourcing

HR Solution
business Recruitment

3,631,660
161,095

31,856-36,8703,631,660
31,856
197,965-

3,631,660
31,856
197,965

3,792,756

31,85636,8703,861,482-

3,861,482

Inter-segment sales or transfers

14,251--

14,251(14,251)-

Total

3,807,007

31,85636,8703,875,734(14,251)

3,861,482

1,014,952

5,631

18,736

1,039,320(297,070)

742,249

Revenue
Staffing
Recruitment
Job advertisement
Outsourcing and other
Sales to outside customers

Segment profit

Media &
Solutionsbusiness

Total(Notes) 1. Adjustments of segment profit (-297,070 thousand yen) include corporate expenses of 297,070 thousand yen thatare not allocated to each reportable segment.
2. Segment profit has been adjusted with the operating profit in the Quarterly Consolidated Statements of Income.
2. Information on impairment losses on non-current assets by reportable segment and goodwill
Not applicable.
II. First three quarters of the current fiscal year (April 1, 2023 – December 31, 2023)
1. Information on revenue and profit or loss and revenue breakdown by reportable segment(Thousands of yen)Amountrecorded inquarterly
Adjustments
statements of(Note 1)income(Note 2)

Reportable segment

Revenue
Staffing
Recruitment
Job advertisement
Outsourcing and other
Sales to outside customers
Inter-segment sales or transfers
Total
Segment profit

HR Solution
business Staffing/
Outsourcing

HR Solution
business Recruitment

4,017,162
149,044623,249-

431,508
156,417

4,017,162
623,249
431,508
305,461-

4,017,162
623,249
431,508
305,461

4,166,207

623,249

587,925

5,377,382-

5,377,382

-

-

-

-

-

-

4,166,207

623,249

587,925

5,377,382-

5,377,382

1,074,012

184,781

150,497

1,409,291(513,541)

895,750

6Media &
Solutionsbusiness

Total

(Notes) 1. Adjustments of segment profit (-513,541 thousand yen) include amortization of goodwill of 27,496 thousand yen
and corporate expenses of 486,044 thousand yen that are not allocated to each reportable segment.
2. Segment profit has been adjusted with the operating profit in the Quarterly Consolidated Statements of Income.
2. Information on changes in reportable segments, etc.
As of August 1, 2023, during the second quarter of the current fiscal year, the Company merged with Interworks, Inc.,the absorbed and dissolving company, and changed its name to Interworks Confidence Inc. As the merger expanded theGroup's business domain significantly, the reportable segment classification has been changed to “HR Solution business- Staffing/Outsourcing,” “HR Solution business - Recruitment,” and “Media & Solutions business” since the second
quarter of the current fiscal year.
The segment information for the first three quarters of the previous fiscal year has been reclassified based on the newreportable segment classification.
3. Information on impairment losses on non-current assets and goodwill, etc. by reportable segment(Significant changes in the amount of goodwill)
With respect to the business combination with Interworks, Inc. conducted in the second quarter of the current fiscal
year, the amount of goodwill was tentatively calculated because the allocation of the acquisition cost had not been
completed. As the allocation of the acquisition cost was completed in the third quarter of the current fiscal year and thetentative accounting treatment was finalized, the relevant amount has been allocated to the reportable segments.
(Thousands of yen)
Reportable segment
HR Solution
business Staffing/
Outsourcing

HR Solution
business Recruitment

Media &
Solutionsbusiness

Total

Elimination or
corporate

Total

Amortization for the first three
26,80914,43541,24527,496
68,741quarters of the current fiscal year
Balance at the end of the first
three quarters of the current fiscal
616,614332,023
948,637
632,424
1,581,062
year(Note) “Elimination or corporate” indicates the amount that is related to the entire company and does not belong to any
reportable segment.
(Business Combinations, Etc.)
Finalization of the amount of generated goodwill
With respect to the absorption-type merger of Interworks, Inc. as of August 1, 2023, tentative accounting treatment had
been conducted in the first two quarters of the current fiscal year and was finalized in the third quarter.
There is no change in the amount due to the finalization of the tentative accounting treatment.
(Significant Subsequent Events)
Not applicable.

7