Fiscal Year Ended March 2024 (FY2024)

Financial Results
Briefing Material“Kabushiki Kaisha Confidence Interworks”(English name: “Interworks Confidence Inc.”)
Securities code ： 7374

Table ofContents

01

E xec u t ive S u m m a r y

02

C o n so lida ted F in a n c ial Resu lt s a n d
S egm en t Resu lt s
P. 10

03
04

P. 3

T h e c o n so lida ted ea rn in gs f o rec a st ,div iden d f o rec a st a n d b oa rd m em b er
f o r F Y2 0 2 5
P. 2 4B u sin ess To p ic s
／ P ro gress in G ro w t h St ra tegies

P. 3 32

01

Executive Summary

Executive Summary
Achieved significant year-on-year growth for both revenue and profit

FY2024(Actual results)

Operating profit also continued to increase despite amortization of goodwill resulting from the merger
with Interworks on August 1, 2023.
* FY2024 results incorporate Interworks’ results for the eight-month period from August 2023 to March 2024.

- Revenue: 7,488 million yen (+44.1% YoY)

- Gross profit: 3,493 million yen (+89.7% YoY) | Gross profit margin: 46.7% (+11.3 pts YoY)

- Operating profit: 1,195 million yen (+28.0% YoY) | Operating profit margin: 16.0% (-2.0 pts YoY)

Continued double-digit revenue and profit growth

FY2025(Forecast)

Shareholder
Returns

Forecasts are based on organic growth, aiming for a growth rate of +15% to 20%
Target an operating profit margin in excess of 15% to achieve both growth and profitability, while looking
to expand into new areas of business- Revenue: 9,000 million yen (+20.2% YoY)

- Gross profit: 4,476 million yen (+28.1% YoY) | Gross profit margin: 49.7% (+3.0 pts YoY)

- Operating profit: 1,400 million yen (+17.1% YoY) | Operating profit margin: 15.6% (-0.4 pts YoY)

Consecutive dividend increases since listing- FY2024 (Actual results) : Annual dividend 55.0 yen (Interim 25.0 yen | Year-end 30.0 yen) | Payout ratio 45.1% | DOE 8.2%
- FY2025 (Forecast): Annual dividend 65.0 yen (Interim 30.0 yen | Year-end 35.0 yen) | Payout ratio 46.4%
Copyright© Confidence Inc. All Rights Reserved.

|

4

Highlights for FY2024 |Merged with Interworks by Absorption-type Merger to Expand Business Domain
 The addition of Interworks’ media, recruitment, and outsourcing services to Confidence’s mainstay staffing services has created a system capable ofproviding a full range of major human resource services.
 Strategy to expand services widely to other industries with reproducibility, starting from the business base cultivated in the gaming and entertainment
industries, while engaging in specialized industries narrowly and providing services to customers deeply.
Focus“Narrowly”

Deep“Deeply”

Industry-specific Vertical HR Solution Services
Entertainment
Game

Cultivate services in depth

DX

Advertising/Media

・・・

Media
Recruitment
HR
Solution
Services
OfferedOutsourcing
Freelance
Staffing

Services expanded primarily due tothe merger with Interworks

Target Industries
Wide

Covers the industry “widely”
Copyright© Confidence Inc. All Rights Reserved.

|

5

Strengthened Management Structure The management structure from July 2024 onwards is planned as follows.

(Officially decided upon the election resolution at the general meeting of shareholders held on June 27, 2024)

Director

Name

Position after election

Auditorfull-time/part-time

Reappointment/Newly appointed

Name

Position after election

full-time/part-time

Reappointment/Continuation ofterm

Nobuyuki
Takushi• President

full-time

Reappointment

Takashi
Yachi• Outside Auditor

full-time

Reappointment

TakuroYoshikawa• Senior Managing
Directorfull-time

Reappointment

Tadahiko
Yasukuni• Outside Auditor

part-time

Reappointment

Masatsugu
Kudo• Managing Director

full-time

Reappointment

Kenya
Fujimori• Outside Auditor

part-timeContinuationof term

Koji Nagai• Director

full-time

Reappointment

Yoshitaka
Maruta• Outside Auditor

part-timeContinuationof term

Reona
Amemiya• Outside Director

part-time

Reappointment

MidoriMizutani• Outside Director

part-time

Reappointment

Hirofumi
Miki• Outside Director

part-time

Reappointment

Hiroshi
Kawano• Outside Director

part-timeNewly
appointed

Copyright© Confidence Inc. All Rights Reserved.

|

6

Strengthened Management Structure New Director
 Career summary of the newly appointed director is as follows
 Expected to provide advice on our business growth, including marketing, new business, and overseas development, based on his experienceand knowledge in the Sony Group, a global company▍Hiroshi Kawano
Director (Outside Director)

Expected Role

Based on his experience in business management, marketing, and launching new businesses in the Sony Group,a global company, he is expected to advise the Company to achieve further growth in the gaming andentertainment industries, and to contribute to the Company’s expansion into new areas, such as overseas
development, by leveraging his extensive overseas experience and network.
CareerSummary
April 1985

Joined Sony Corporation (currently Sony Group Corporation)
Served as General Manager of Strategic Planning and Management CFO Office and General
Manager of President’s Office

April 2003

SVP, Sony Electronics Inc. (U.S.)
Engaged in new business development in the U.S.

April 2010

President, Sony Computer Entertainment Japan Inc.
(currently Sony Interactive Entertainment Japan Asia Inc.)

Oversaw game console and game software-related business in Japan and Asia

April 2012

President and Representative Director, Sony Marketing Inc.

June 2012

Director, Sony Computer Entertainment Inc. (currently Sony Interactive Entertainment Inc.)

April 2018

Executive Vice President and Representative Director, Sony Imaging Products & Solutions Inc.
(currently Sony Corporation)

April 2021

Managing Director and Executive Officer, Sony Corporation
Copyright© Confidence Inc. All Rights Reserved.

|

7

Growth Strategy │ Future Growth Indicators: Quantitative objective
 In addition to the steady growth achieved by Confidence alone since its listing, the merger has increased the bases that drive revenue
 For all businesses, select segments and aim to become the No. 1 group, by specialization target areas.

（Target）

20 billion yen

To Expand Sales

By selecting segments in all business areas
and going deep into the interior, andwe will build up a group that is No. 1 in its category
Organic growthof existing businesses

Accelerate further growththrough M&A
YoY

August 1,2023
Mergedwith Interworks

CAGR

28.0%
Upon listing on the
TSE Mothers

Established inAugust 2014

FY2021

1.19 billion yen
FY2022

Actual results

FY2023Operatingprofit（Forecast）

9.0 billion yen

3billion yen

7.48 billion yen
Operatingprofit3.56 billion yen

20.2%

FY2024

Operatingprofit1.40 billion yen
FY2025
Forecast

3-5 years later
FutureCopyright© Confidence Inc. All Rights Reserved.

|

8

Growth Strategy │ Toward a Transition to the Prime Market
 Aim to achieve revenue of 20 billion yen and operating profit of 3 billion yen (operating profit margin of 15%) and meet the criteria of total

market capitalization of tradable shares and market capitalization for a transition to the Prime Market at an early stage▍Transition to the Prime Market: Quantitative Criteria

End ofMar. 2023

End ofMar. 2024

End ofMar. 2025

Number ofshareholders

No less than 800〇〇

Number of shares incirculation

No less than 20,000 units

×〇×

Total market
capitalization of
tradable shares

No less than 10 billion yen

××

Aim for early×
achievement

Marketcapitalization

No less than 25 billion yen

××

Aim for× earlyachievement

GovernanceRatio of tradable
sharesNo less than 35%〇〇

OperatingResults andFinancial
Condition

Revenue baseTotal profit for the last two years is no lessthan 2.5 billion yen

××

Financial Condition

Net assets of no less than 5 billion yen

××〇

Liquidity〇(Estimate)〇×(Estimate)〇(Estimate)〇×(Estimate)〇×(Estimate)
Copyright© Confidence Inc. All Rights Reserved.

|

9

02

Consolidated Financial Results andSegment Results

Business Overview│Segmentation After the Merger
 As a result of the merger, segments and service groups were changed as shown in the figure below, and the new segment groups werereported from the financial results for Q2 FY2024

Before the merger: Segments of each company

After the merger: New segments

Staffing

HR Solution
business

Outsourcing
HR
Solutionbusiness
Recruitment

1

Freelancers

Media businessMediaMediabusiness

Media &
Ad salessolutions business Media business
Recruitment
businessMediabusinessplacement

Hiring support
business

HiringbusinesssupportMedia

Staffing

HR Solution business(Staffing and Outsourcing)

HR Solution
Outsourcing
business

HR Solution business(Recruitment)

Recruitment
HR
Solution
Employmentbusinessplacement

Freelancers

2

3
Media

Employment

Media & Solutions Business

HR Solution
Ad salesbusiness
Hiring support

Copyright© Confidence Inc. All Rights Reserved.

|

11

[Consolidated] Financial Highlights of FY2024 (Cumulative) Significant year-on-year increases as a result due to the merger with Interworks as of August 1, 2023
 By progress rate against the full year forecast, revenue was slightly behind, while operating profit grew steadily even after amortizing goodwill▍Full-year results(Million yen)▼For Interworks, 8-month results (August - March) were recorded.

FY2023(Full year)

FY2024(Full year)

Forecast

YoY

Progress rate(announced on
August 10, 2023)

Revenue

5,197

7,488

+44.1%

8,000

93.6%

Gross profit

1,841

3,493

+89.7%

3,718

93.9%

35.4%

46.7%

+11.3pt

46.5%

-

933

1,195

+28.0%

1,120

106.7%

18.0%

16.0%

-2.0pt14.0%-

Ordinary profit

927

1,142

+23.2%

1,065

107.3%

Profit617

725+17.4%

725

100.1%

Reference: EBITDA *

969

1,346

+38.9%

1,258-

EBITDA margin

18.7%

18.0%

-0.7pt15.7%-

Gross profit margin
Operating profit
Operating profit
margin* EBITDA = Operating profit + (Depreciation + Amortization of goodwill) │ EBITDA margin = EBITDA ÷ Revenue
Copyright© Confidence Inc. All Rights Reserved.

|

12

[Consolidated] Quarterly Results Trends
 Revenue and operating profit significantly increased by 58.0% and 56.7% year on year, respectively, due to the merger in August 2023
 Strive for further earnings expansion in the next fiscal year based on the post-merger business foundation▍Revenue (quarterly trends)(Million yen)

2,000

2,127 2,111： Consolidated

1,840▍Operating profit (quarterly trends)(Million yen)

1,042 1,052

1,149 1,180

1,250

1,293 1,316 1,336+56.7%： Consolidated

300

282

264
236

1,500

1,000

+58.0%

1,409

211
200

181

172

180

333
279

299

241
191

100
500

0

Q1 FY22.3
Q2 FY22.3
Q3 FY22.3
Q4 FY23.3
Q1
Q2 FY24.3
Q3 FY24.3
Q4Q1Q2 FY23.3
Q3 FY23.3
Q4 FY24.3
FY22.3
FY23.3
FY24.3
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
FY2022
FY2024FY20230Q1Q2Q3 FY22.3
Q4 FY23.3
Q1Q2
Q3 FY24.3Q4Q1Q2Q3 FY23.3
Q4 FY24.3
FY22.3
FY22.3
FY22.3
FY23.3
FY23.3
FY24.3
FY24.3
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
FY2022
FY2024FY2023* Figures after eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

|

13

[Consolidated] Factor Analysis of Increase/Decrease in Operating Profit (YoY) The merger significantly increased gross profit
 Despite amortization of goodwill incurred since Q2 of the current fiscal year, increased profit was secured by optimizing back-office expenses

due to the merger and other factors to offset increased costs.
(Million yen)

Gross profit

SG&A expenses

Copyright© Confidence Inc. All Rights Reserved.

|

14

[Consolidated] Quarterly SG&A Expenses Trends
 The merger with Interworks significantly changed the size and composition ratio of SG&A expenses

 Maintain the organizational structure to generate steady operating profit through thorough cost control▍Quarterly trends▍Annual trends

Personnel expenses
Commission expenses
Depreciation
Other(Million yen)

900
800

Rent expenses on land and buildings
Taxes and dues
Amortization of goodwill

738

700

130

600

553

500
400

100
0

91

71

27
6
10

42

130

2,400
2,200
2,000
1,800

41
16
17
82
42

188
32
0
2
9
32
13

176

187

231
34
＊1
0
17
11
33
14

285
212
34
0
17
7
30
15

189
31
0
2
7
29
15

219
34
0
6
7
34
16

32
0
2
5
24
13

35
0
7
5
27
13

98

98

98

118

105

103

119

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2022

FY2023

60
＊1
0
9
9
38
17
150

Q4

37
0
4
9
37
18

＊1

441

324

126

Q1

1,600

249

1,400

139

1,000

420

800

Q3

FY2024

Q4

783

908
161
0
36
32
133
65

400

134
0
28
32
118
55

200

413

479

FY2022

FY2023

600

0
Q2

109
41
54

＊2

1,200

35

234

2,298
390

＊2

58

300
200

41
15
16

771

Other
Amortization of goodwill
Depreciation
Taxes and dues
Commission expenses
Rent expenses on land and buildings
Personnel expenses

1,312

FY2024*In light of the effects of the merger in the current fiscal year, and in view of the impact ofsome changes to the breakdown of account items from the second quarter of this year,changes have been made retroactively from previous years.
*This graph is compiled based on management accounting classification.
Copyright© Confidence Inc. All Rights Reserved.

|

15

[Consolidated] Financial Highlights of FY2024 (Full Year) by Segment
 Revenue and profit increased in all segments. Significant growth due to the addition of Interworks’ recruitment and media businesses
 HR Solution Business - Staffing and Outsourcing accounted for 73.3% of revenue, driving company-wide performance▍Full-year Actual Results▼Figures after reclassifying to new segments▼For the figures, 8-month results (August - March) of Interworks were recorded

FY2023(Full year)

FY2024(Full year)

YoY

Revenue Composition

5,197

7,488

+44.1%

5,117

5,486

+7.2%

HR Solution Business- Recruitment

34

1,032

+2,851.7%

Media & Solutions Business

45

969

+2,049.9%

1,375

2,002

+45.6%

1,352

1,379

+2.0%

HR Solution Business- Recruitment

-0

342

-

Media & Solutions Business

22

279

+1,125.1%

SG&A Expenses (common expenses)

441

807

+82.7%

Revenue *HR Solution Business- Staffing and Outsourcing

Segment profit
HR Solution Business- Staffing and Outsourcing

Operating profit* Figures after eliminating internal sales within the consolidated companies

933

1,195

+28.0%FY2024

73.3%

Revenue (Actual results)

7.48

13.8%

billion yen

12.9%

HR Solution Business - Staffing and Outsourcing
HR Solution Business - Recruitment
Media & Solutions Business

Copyright© Confidence Inc. All Rights Reserved.

|

16

[HR Solution Business - Staffing and Outsourcing] Financial Highlights of FY2024
 The majority of this segment is dominated by the HR Solution business of the former Confidence Inc.
 The mainstay staffing business achieved growth both in revenue and segment profit. The segment profit margin remained largely the same as

the year-earlier level▍Full-year results(Million yen)

Revenue *Staffing
Outsourcing andothersGross profit
Gross profit margin
Segment profit
Segment profit margin▼Figures after reclassifying to new segments

FY2023(Full year)

FY2024(Full year)

Forecast

YoY

Progress rate(announced on
August 10, 2023)

5,117

5,486

+7.2%

5,714

96.0%

4,898

5,293

+8.1%

-

-

219

193

-12.1%

-

-

1,777

1,889

+6.3%

-

-

34.7%

34.4%

-0.3pt

-

-

1,352

1,379

+2.0%

-

-

26.4%

25.1%

-1.3pt--＊1 Figures after eliminating internal sales within the consolidated companies are indicated＊2 The freelance matching business operated by Confidence Pro Co., Ltd., established on April 3, 2023, is included in this category and disclosed.
Copyright© Confidence Inc. All Rights Reserved.

|

17

[HR Solution Business - Staffing and Outsourcing] Trends in Major KPIs
 Creator staffing assignments, which serve as the foundation of the Company’s recurring income model, increased by 12 from the year-earlier

quarter, at a slower pace than past growth This was due to the slowdown in the mobile gaming market, although the human resource needs in the home-use game console market
remained solid. The utilization rate stayed at a high level▍Creator staffing assignments▍Utilization days *1 / Utilization rate *2+12 people

Utilization days

1000

800

630

673

715

740

768

775

816

813

830

848

840

825

80.0

99.4% 99.9% 99.7% 99.6% 99.5% 99.2% 99.8% 99.4% 99.6% 99.6% 98.9% 98.7%
56.7

60.0

56.9

54.5

55.0

56.4

55.7

55.9

55.3

57.3

55.2

56.3

52.7

20.0%
Q11QFY24
Q2 2QFY24
Q33QFY24
Q44Q
Q11QFY23
Q22QFY23
Q3 3QFY23
Q4 4QFY23
Q11QFY23
Q22QFY23
Q33QFY23
Q44QFY24
FY23
FY2024FY2022
FY2023
*1

400

80.0%

40.0%

20.0
0.0

100.0%

60.0%

40.0

600

*2

0.0%

Quarterly total of the number of days arrived at by dividing the total number of days worked
by each person on a monthly basis by the number of utilized persons at the end of the month
The ratio obtained by dividing the total number of utilized staff at month end by the total
number of staff that can be utilized at month end▍Trends in average daily overtime hours *200

FY20230.80
0Utilization rate

0.60

Q11Q FY23
Q22Q FY23
Q33Q FY23
Q44Q FY24
Q11Q FY24
Q22Q FY24
Q33Q FY24
Q4 4Q
Q11Q FY22
Q22Q FY22
Q33Q FY22
Q44Q FY23FY22

FY2022

FY2023

FY20240.40

FY2024

0.60

0.63

0.55

Apr

0.58

0.59

0.61

0.62

0.59

0.59

0.60

0.60

0.61

0.59

0.57

0.56

0.56

0.54

0.55

0.52

0.53

0.53

0.54

0.54

0.56

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

0.20
0.00

* Daily average obtained by dividing the average total monthly overtime hours by the average numberof actual utilization days
Copyright© Confidence Inc. All Rights Reserved.

|

18

[HR Solution Business - Recruitment] Financial Highlights of FY2024
 The segment achieved a significant year-on-year increase in revenue and profit compared with the former Confidence alone, as the recruitment businessof the former Interworks accounts for a large portion of the segment

 The range of revenue generation expanded as the recruitment business was significantly strengthened, centered on middle- and high-class humanresources across the industry▍Full-year results(Million（百万円）yen)

Revenue *Recruitment
Gross profit
Gross profit margin
Segment profit
Segment profit margin▼For Interworks, 8-month results (August - March) were recorded.
▼Figures after reclassifying to new segments

FY2023(Full year)

FY2024(Full year)

Forecast

YoY

Progress rate(announced on
August 10, 2023)

34

1,032

+2851.7%

1,243

83.0%

34

1,032

+2851.7%

-

-

27

824

+2868.0%

-

-

79.4%

79.9%

+0.5pt

-

-

-0

342

-

-

-

-

33.2%

-

-

-

* Figures after eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

|

19

[HR Solution Business - Recruitment] Trends in Major KPIs
 During the period under review, the number of consultants increased to 79 on average. Productivity declined due to the increase in training man-hours

as personnel was augmented.
 Policy for FY2025 is planned to focus on and improve productivity per consultant as a preliminary step to a large increase in the number of consultants.

▍Number of contracts closed and unit price per contract▍Number of consultants (average)

Unit price per contract: Index based on the FY2022 (Q1) at 100(Number of contracts)

200

100

* Calculated based on the average number of consultants at the end of each month

106
95

101

103

98

105

79

(Number of people)

Number of contracts closed
Unit price per contract

99

104
92

80

106

: Number of consultants

96
58

60

132

100

100

114

147
129

114

131

133

140

136

140

131

44

47

40

20

0

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

FY2023

Q4

Q1

Q2

Q3

FY2024Q40

0

FY2021

FY2022

FY2023

FY2024

Average

Average

Average

Average

Copyright© Confidence Inc. All Rights Reserved.

|

20[Media & Solutions Business] Financial Highlights of FY2024
 The segment achieved a significant year-on-year increase in revenue and profit compared with the former Confidence alone, as the Media & Solutions

business of the former Interworks accounts for a large portion of the segment

 For job opening advertisements (Kojo Works), aim to secure stable segment profit by lowering the break-even point through the reduction of fixed

costs▍Full-year results(Million（百万円）yen)▼For Interworks, 8-month results (August - March) were recorded.
▼Figures after reclassifying to new segments

FY2023(Full year)

FY2024(Full year)

Forecast

YoY

Progress rate(announced on
August 10, 2023)

45

969

+2049.9%

1,041

93.1%

Job opening
advertisement

-

696

-

-

-

Outsourcing andothers45273+506.7%

-

-

35

779

+2075.1%

-

-

79.5%

80.4%

+0.9pt

-

-

22

279

+1125.1%

-

-

50.6%

28.8%

-21.8pt--＊ *Revenue

Gross profit
Gross profit margin
Segment profit
Segment profit margin* Figures after eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

|

21

[Media & Solution Business - Job Advertisements] Trends in Major KPIs
 Number of job postings, number of trading clients, and unit price per client all remained flat.
 Aim to increase media power by improving original content and UI to counter the decline in customer attraction ability resulting

from the decentralization of media platforms.

▍Number of job postings on Kojo Works▍Kojo Works’ number of trading clients and unit priceper client(No. of jobs posted)(No. of companies)

31,00630,00028,79020,301

Number of trading clients

1200

27,275959
23,39220,000

Unit price per client: Index based on the FY2022 (Q1) at 100

22,222

23,43922,62421,989900

19,405

20,176

19,933

812

868

950
844

Unit price per client

916

941

300

859
679

19,494
16,942

(%)

726

746

729

113

113

200

600

15,436100

10,000

107

108

114

96

87

84

89

Q2

Q3

Q4

105

105

100

FY2022

FY2023

FY2024

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

0

May

300

0

Q1

Q2

Q3

FY2022Q4Q1

FY2023

Q1

Q2

Q3

Q4

0

FY2024

Copyright© Confidence Inc. All Rights Reserved.

|

22

[Consolidated] Balance Sheets/Statements of Cash Flows As a result of the merger, cash and deposits increased by 2.04 billion yen, net assets by 3.94 billion yen, and total assets by 4.29 billion yen(goodwill by 1.53 billion yen) from the end of FY2023
 Continued to secure high financial stability, with net cash amounting to 4.07 billion yen and the equity ratio standing at 82.7%▍Balance sheets at end of Q4 FY2024(Million yen)

▍FY2024 4Q C/FBorrowings 11

4,089

Other current assets

919

Goodwill

1,539
Non-current assets(excluding goodwill)636

Net assets

5,970

2,047

Balance of cash and deposits as of March 31, 2023

Other current
liabilities 1,202
Cash and deposits(Million yen)

Share capital

520 million yen

Capital surplus

3,893 million yen

Retainedearnings

1,535 million yen

Cash flows from operating activities+1,033

Cash flows from investing activities-68

Cash flows from financing activities *-301

Increased amount in cash and deposits due to merger+1,378

Increase/decrease in cash and deposits+2,041
4,089

Balance of cash and deposits as of March 31, 2024

Treasury shares-10 million yen

Share acquisitionrights27 million yen* Dividends paid: -294 million yen, repayments of borrowings: -22 million yen,other, net: +15 million yen

Non-controllinginterests

3 million yen

Financial indicators
Net cash4.07 billion yen

Equity ratio

82.7%

ROE (Reference)

18.2%

Copyright© Confidence Inc. All Rights Reserved.

|

23

03

The consolidated earnings forecast, dividend
forecast and board member for FY2025

[Consolidated] Assumptions Underlying the Preparation of Earnings Forecast and Dividend Forecast for FY2025▍Assumptions underlying the preparation of earnings
forecast

Aim for growth through “industry-specific vertical HR solution
services” based on the premise of achieving both growth andprofitability, as has been the management policy to date.
Also, set EPS growth as a target indicator
Target indicators
Revenue
growth rate
Operatingprofit margin(excluding
amortization of
goodwill)▍Assumptions underlying the preparation of dividend
forecast

Formulate a dividend policy based on the basic policy ofcontinuous and stable dividends, with a medium-term target ofachieving “DOE 10%,” which was set in the medium-term growthstrategy after listing, and also with capital efficiency in mind.
Target indicators

15%~20%

Payout ratio

Over 30%

Over 15%

DOE

Over 10%** Future achievement goals

EPS growthrateOver 15%
Copyright© Confidence Inc. All Rights Reserved.

|

25

[Consolidated] Trends in Revenue/Operating Profit Over the Years and Forecast for FY2025
 Trends in revenue and operating profit over time, including forecasts for FY2025, are as shown below
 Continue to aim for achieving both growth and profitability, and aim for further earnings growth, with increases in revenue by 20.2% andoperating profit by 17.1%

Merged with Interworks▍Revenue+20.2%(Million yen)

+44.1%

10000
9000
8000

9,000

7,488

4,425

3000 Establishedin August
2014
2000
1000
0

46

188

2,004
512

(Million yen)

+28.0%

1500
1300

933
745
604

500

2,604

335
300

1,140

69

100

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Past results

1,400

1,195

700

3,569

4000

+17.1%

900

5,197

5000

▍Operating profit

1100

7000
6000

Merged with Interworks

Forecast

-100

-6

148

174

-15

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Past results

Forecast

Copyright© Confidence Inc. All Rights Reserved.

|

26

[Consolidated] Earnings Forecast for FY2025 - By Segment  Continued revenue and profit growth expected in all segments in FY2025* Interworks’ 12-month results are included from FY2025 (eight months’ worth of contribution in FY2024)

after reclassifying▍Full-year earnings forecast for FY2025 ▼ Figures
to new segments

FY 2023

FY 2024

FY 2025

YoY

Revenue Composition(million yen)

5,197

7,448

9,000

+20.2%

HR Solution Business- Staffing and Outsourcing(million yen)

5,117

5,486

5,853

+6.7%

HR Solution Business– Recruitment(million yen)

34

1,032

1,666

+61.4%FY2025Media & Solutions Business(million yen)

45

969

1,480

+52.6%(million yen)

1,841

3,493

4,476

+28.1%

Revenue (Forecast)

(%)

35.4%

46.7%

49.7%

+3.0 pts

933

1,195

1,400

+17.1%

18.0%

16.0%

15.6%

-0.4 pts

Revenue

Gross profit
Gross profit margin
Operating profit
Operating profit margin(million yen)(%)

Ordinary profit(million yen)

927

1,142

1,401

+22.6%

Profit(million yen)

617

725

882

+21.6%

18.5%

65.0%

9

billion yen

16.5%

HR Solution Business - Staffing and Outsourcing
HR Solution Business - Recruitment
Media & Solutions Business
Copyright© Confidence Inc. All Rights Reserved.

|

27

[Consolidated] Integration Effects: Cost Synergies from Merger with Interworks
 Estimated cost synergies from the August 2023 merger by consolidating the listing costs of both parties and integrating or eliminating

duplicative parts of their operations
 In FY2025, we expect to recover 160 million yen of amortization of goodwill (annual) through cost synergies▍Cost synergies from merger with Interworks
Back-office-related expenses(Million yen)

1,000

Cost synergies

994

930
167

750

552
* Interworks backoffice expenses

500

*

763
250

0

442

FY2023

Past results

FY2024

Specific cost synergy items-130 million yen•

Trust bank fees•

Fees to TSE and Japan Securities
Depository Center•

Audit fees to accounting auditors•

Expenses for printing companies•

Cost savings for duplicated work
due to integration, etc.

FY2025

Forecast* Figures exclude amortization of goodwill (common portion) from total common expenses in segment disclosures
Copyright© Confidence Inc. All Rights Reserved.

|

28

[Consolidated] EPS-related
 EPS temporarily declined due to the merger with Interworks in August 2023, but is expected to exceed the pre-merger level after the dilution
 With profit attributable to owners of parent growing steadily, we will execute new business investment and M&A strategies in a manner withrising EPS in mind

▍EPS trends▍Profit attributable to owners of parent
EPS trends(yen)150.00140.00▼ Level of the last fiscal year
before the merger(Forecast)140.00134.80118.19120.00(Forecast)

1000

882

122.03

400

617

725

399

200

93.57
FY2021530

600

110.0090.00

Profit attributable to owners of parent

800

130.00100.00(Million yen)

FY2022

FY2023

Past results

FY2024FY2025
Forecast

0

FY2021

FY2022

FY2023

Past results

FY2024FY2025
Forecast

Copyright© Confidence Inc. All Rights Reserved.

|

29

Shareholder Return Policy│Dividend Results/Forecast
 Regarding shareholder returns, the Company’s basic policy is to provide continuous and stable dividends, with the goal of achieving a DOE of 10% overthe medium term Dividend for FY2024 is finalized at 55 yen, an increase of 7 yen from the previous fiscal year. For FY2025, we expect to increase the annual dividend byanother 10 yen to 65 yen

Basic Policy on Shareholder Returns/Target Indicators
The Company regards the return of profits to shareholders as an importantmanagement issue and makes it a basic policy to pay continuous and stabledividends while retaining the necessary internal reserves for future businessexpansion and bolstering of the Company’s financial position

Dividend Results/Forecast(Forecast)Consecutive
dividend
increases
since listing

Shareholder
Returns

Higher capitalefficiency

40

48

65

55

(Return on
equity)×

Payout ratio

Over

30%

Year-end dividend

30Interim dividend

30
28
40

ROE

35

＝

20

DOE

(Dividend on
equity ratio)

Over

10%

* Future achievement goals

25

FY2022

FY2023

FY2024FY2025

YoY

Payout
ratio

33.8%

35.6%

45.1%

46.4%

+1.3 pts

ROE

46.5%

33.8%

18.2%

15.3%

-2.9 pts

DOE

15.7%

12.1%

8.2%

7.1%

-1.1 pts

Dividend
yield *1

1.9%

2.6%

3.3%

4.2%

*2

+0.9 pts*1 Calculated based on the share priceat the end of the fiscal year

*2 Assumed stock price of 1,531 yen (closing price on April 30, 2024)
for dividend yield calculation
Copyright© Confidence Inc. All Rights Reserved.

|

30

Strengthened Management Structure The management structure from July 2024 onwards is planned as follows.

(Officially decided upon the election resolution at the general meeting of shareholders held on June 27, 2024)

Director

Name

Position after election

Auditorfull-time/part-time

Reappointment/Newly appointed

Name

Position after election

full-time/part-time

Reappointment/Continuation ofterm

Nobuyuki
Takushi• President

full-time

Reappointment

Takashi
Yachi• Outside Auditor

full-time

Reappointment

TakuroYoshikawa• Senior Managing
Directorfull-time

Reappointment

Tadahiko
Yasukuni• Outside Auditor

part-time

Reappointment

Masatsugu
Kudo• Managing Director

full-time

Reappointment

Kenya
Fujimori• Outside Auditor

part-timeContinuationof term

Koji Nagai• Director

full-time

Reappointment

Yoshitaka
Maruta• Outside Auditor

part-timeContinuationof term

Reona
Amemiya• Outside Director

part-time

Reappointment

MidoriMizutani• Outside Director

part-time

Reappointment

Hirofumi
Miki• Outside Director

part-time

Reappointment

Hiroshi
Kawano• Outside Director

part-timeNewly
appointed

Copyright© Confidence Inc. All Rights Reserved.

|

31

Strengthened Management Structure New Director
 Career summary of the newly appointed director is as follows
 Expected to provide advice on our business growth, including marketing, new business, and overseas development, based on his experienceand knowledge in the Sony Group, a global company▍Hiroshi Kawano
Director (Outside Director)

Expected Role

Based on his experience in business management, marketing, and launching new businesses in the Sony Group,a global company, he is expected to advise the Company to achieve further growth in the gaming andentertainment industries, and to contribute to the Company’s expansion into new areas, such as overseas
development, by leveraging his extensive overseas experience and network.
CareerSummary
April 1985

Joined Sony Corporation (currently Sony Group Corporation)
Served as General Manager of Strategic Planning and Management CFO Office and General
Manager of President’s Office

April 2003

SVP, Sony Electronics Inc. (U.S.)
Engaged in new business development in the U.S.

April 2010

President, Sony Computer Entertainment Japan Inc.
(currently Sony Interactive Entertainment Japan Asia Inc.)

Oversaw game console and game software-related business in Japan and Asia

April 2012

President and Representative Director, Sony Marketing Inc.

June 2012

Director, Sony Computer Entertainment Inc. (currently Sony Interactive Entertainment Inc.)

April 2018

Executive Vice President and Representative Director, Sony Imaging Products & Solutions Inc.
(currently Sony Corporation)

April 2021

Managing Director and Executive Officer, Sony Corporation
Copyright© Confidence Inc. All Rights Reserved.

|

32

04

Business Topics／Progress in Growth Strategies

Progress in Growth Strategies/Business Topics▍Summary of Business Topics [FY2024]

Established Confidence
Pro Inc., a consolidated
subsidiary specializing infreelance matching

Apr 3, 2023

Invested in Indigames(engaged in offshore gamedevelopment, 3D CG
outsourcing services, etc.)

Sep 7, 2023

Aug 1, 2023
Started the operation of“Interworks ConfidenceInc.” as a new integrated
company

Held “Game DX Forum”
in collaboration with
GREE Advertising

Launched ”RPA Tips,” apractical information website
on robotic process automation(RPA)

Launched operation of “PlusStartup,” a human resource
agent service specializing in
cutting-edge technology fields

Oct 24, 2023

Jan 9, 2024

March 1, 2024

Oct 17, 2023
Developed a gameplanner training course incollaboration with
Precious Analytics

Nov 29, 2023

Jan 19, 2024

Started collaboration with
Penetrator Inc. to develop
training services for humanresources with RPA skills

Affiliated Protagonist
Inc., which works on Web
3.0 × HR Tech, as a
subsidiary

Copyright© Confidence Inc. All Rights Reserved.

|

34

Growth Strategy | Expand Matching Solutions

Press release dated March 1, 2024

Launched operation of “Plus Startup,” a human resource agent service specializing in cutting-edge technology fields
Look to expand HR solution services in cutting-edge technology fields that have a high affinity with the gaming industry
Expand matching solutions

Expand into new business areas
HR TechNext generation
technology

Web 3.0 area

Aim for the next expansion in specialized industries
through agent services specializing in cutting-edge
technology fields
▍Background

Cutting-edge technology fields, such as metaverse and AI, have a highaffinity with the gaming domain
Besides start-ups/venture companies, there is also a need for recruiting new
business development staff at major companies. However, many companies
face difficulties in identifying talented people who can play an active roleand in attracting the right people through the media
Expand possibilities for job seekers to gain experience in cutting-edge
technology fields
DX
Industry

Web 3.0 and other cutting-edge technology fields in which Protagonist excels
Make inroads comprehensively in major companies in specialized industries
with a focus on recruitment

Entertainment Industry
GamingIndustry

Web 3.0
IndustryMedia
Advertising
Industry

To become the best in the industry by leveraging
the business foundation cultivated in the gamingand entertainment industries in other industries
through the same techniques▍Leverage know-how in the recruitment business

Aim to build relationships within the industry by combining
Protagonist’s database accumulating more than 600 human resources
and matching expertise in recruitment and providing solutions.

Copyright© Confidence Inc. All Rights Reserved.

|

35

Future We Want to Realize/View of the World We Aim For
 Using staffing and recruitment services as a starting point, we will establish a presence in the industry by comprehensively penetrating major

companies in specialized industries and expanding services through cross-selling media, outsourcing, etc. while promoting in-depth cultivationof the industry. Evolve into a key company that works with all stakeholders to solve industry issues

Cross-industry
problem-solving
Establish apresence in theindustry
Enhance services

Evolve into a key company that provides solutions toindustry issues
Solve social issues in collaboration with all stakeholders

Nextgeneration
technology

Collaboration
with relatedindustries

Training

Strengthen connections in the industries and enhance
recruiting/sales efficiency

M&A
Outsourcing

Start-up
supportEnvironmentalissuesSolve further needs and issues through businessMedia

Cultivate theindustry in-depth

Recruitment
StaffingNewbusinesses

Overseas
expansion

Regional
revitalization

Cross-selling of services to meet customer needs

Copyright© Confidence Inc. All Rights Reserved.

|

36

Appendix.

VisionVisionEmpowering Professionals to Create the Future Together
Our goal is to help many professionals achieve their dreams in a society that values diversity, and to make a positive impact on theircompanies, industries and society, creating a society with endless opportunities.

Chronic shortageof human
resources due to aseller’s market

PROFESSIONAL

Realize
dreams ofcompanies
and workers

Changing needs fordiverse work styles

Generateincreased
value

Contribute to
the growth anddevelopmentof society

Changing skill
requirements due totimes and technology
CLIENT

Copyright© Confidence Inc. All Rights Reserved.

|

38

Company Overview
Company Profile

Corporate History

Company name

Kabushiki Kaisha Confidence Interworks (English name: Interworks Confidence Inc.)

Representative

Nobuyuki Takushi, President

Established

August 2014

Head office

BYGS Shinjuku Bldg. 10F2-19-1 Shinjuku, Shinjuku-ku, Tokyo

Local Office

Nagoya │ Osaka │ Fukuoka

Consolidated
subsidiary

Dolphin Inc.│Confidence Pro Inc.│Protagonist Inc.

Officers

Aug. 2014

May 2018

Apr. 2020

President

Nobuyuki Takushi

Senior Managing
Director

Takuro Yoshikawa

Managing Director

Masatsugu Kudo

Director

Koji Nagai

Outside Director

Reona Amemiya

Outside Director

Midori Mizutani

Outside Director

Hirofumi Miki

Outside Director

Tomonori Hayakawa

Outside Auditor

Takashi Yachi

Outside Auditor

Tadahiko Yasukuni

Outside Auditor

Kenya Fujimori

Outside Auditor

Yoshitaka Maruta

Paid-in capital

520 million yen (as of March 31, 2024)

Line of businessHR solution business (staffing, outsourcing, recruitment), Media & solutions businessNo. of employees

1,177 (as of March 31, 2024) [consolidated]

Jun. 2021

May 2022

Apr. 2023

Aug. 2023

Feb. 2024

Establishment of Confidence Inc.
Involved in HR solution business specializing in the gaming
industry since its inception
Made Dolphin Corporation, a company engaged in web
promotion business, a subsidiary

Set up Shinjuku-Gyoen Studio as an outsourcing base

Listed on the Tokyo Stock Exchange Mothers Market (currently
Growth Market)

Relocated head office to Shinjuku-ku, Tokyo (current office)Established Confidence Pro Inc. to provide freelance matching services
Merger by absorption of Interworks, Inc.
Changed company name to “Kabushiki Kaisha Confidence Interworks”(English name: “Interworks Confidence Inc.”)
Made Protagonist Inc., a Web 3.0 x HR Tech business, a consolidated
subsidiary

Copyright© Confidence Inc. All Rights Reserved.

|

39

Business Overview│Composition of Revenue

65.0%

HR Solution business (Staffing and Outsourcing)Composition of revenue

・ Specializing in the gaming andStaffing
Outsourcing
Freelancers
entertainment industries
Staffing and outsourcing services that meet the needs of each phase anddepartment
In April 2023, freelancer matching started. ▶

18.5%

HR Solution business (Recruitment)
FY2025

Revenue (Forecast)

9.0

billion yen

・ Cross-industry career-change support services centered on middle- andhigh-class human resources. Recruitment Employment
placement

Recruitment platforms ▶

16.5%

Media & Solutions Business・ Specializing in manufacturing and factories throughout Japan
Operation of job change recruitment
Media
Ad salesmedia “Kojo Works”
Media operations ▶

・ Boasting more than 30 years of experience, we are developinga recruitment outsourcing business

Recruitment
support

Copyright© Confidence Inc. All Rights Reserved.

|

40

Business Structure│Services（2/2)
 Confidence has been providing industry-specific human resource services since its inception. The addition of Interworks’ recruitment, job

advertising, and recruiting support businesses to the staffing and outsourcing businesses, which have been our main business, has created an
operating structure that can respond to client needs in a comprehensive manner
Staffing │ Staffing, Freelancers
Dispatch personnel with the skills
required by the client company fromamong our own registered workers
for the required period of time

Job Advertisement │Job Advertisement
Provide opportunities to matchcompanies by posting information
on job openings on web media, etc.,
and provide information toapplicants

Career │ Recruitment
Act as an intermediary between job
seekers and companies, thereby
introducing appropriate job seekers
to companies seeking humanresources

Outsourcing │ Outsourcing
Undertake various types of work inbulk or in part from clientcompanies, and perform work on
their behalf after implementing work
instructions and worker
management

Copyright© Confidence Inc. All Rights Reserved.

|

41

Competitive Advantage｜Three Strengths to Achieve Core Value Maximize the total number of matches by strengthening both human resources and sales capabilities
 Establish a competitive edge through unparalleled operational methods

Core Value: The “CIW Method“ generates high profit margins
Professional human resources
capabilities
Build a database with a wide
range of work-ready humanresources

Human Resources Database
Job type

Experience andskillsEmployment
statusHuman
resourcesfor gaming
industryOver
800 people

High-precision matchingcapabilities

Maximize the total number of matches throughmeticulous process management

Understanding of
Human Resources

Utilization
rate
99%

Understanding of
Recruitment(1) Targeting by industry
segmentation(2) Team building through division oflabor and standardization(3) PDCA management based on
accumulated industry knowledge

Sales capabilities to clientcompanies
Ability to acquire customers forclient companies and build
relationships thereafter
Client companies

Continuingtransactions

GamingIndustry
Over 90%
coverage

Evolve into a highly specialized professional group
To further acquire
human resources

To further develop
recruitment
Copyright© Confidence Inc. All Rights Reserved.

|

42

Competitive Advantage ｜ Details of Matching Capabilities
 While optimizing initial investment by narrow industry targeting, conduct hypothesis testing in the fastest possible time to determine which industries toenter Build a highly agile organization through team building based on the division of labor and standardization of operations, and quickly grow to be aprofessional group by facilitating the PDCA cycle

Established a unique methodology to maximize the total number of matches(1) Targeting by industry
segmentation

・ Hypothesis testing at the fastest
speed
・ Optimize initial investment(2) Team building through division oflabor and standardization

・ Build a highly agile organization
・ Establish a highly reproducible
operational system(3) PDCA management based on
accumulated industry knowledge

・ PDCA cycle practice at high speed
・ Early optimization of management

Copyright© Confidence Inc. All Rights Reserved.

|

43

IR Information
 In order to provide timely and easy-to-understand corporate information to our shareholders and investors, we have revamped the IR page on

our website
 Interworks Confidence Inc. will continue to disseminate information to raise awareness of and build trust in our IR activities▍Renewal of IR site

▍Participation in IR note magazine▍Enhancement of explanations forindividual investors<FY2024>
・ Wealth advisor
Online IR fair for individual investors
・ Kabu Berry Lab

https://note.com/ciw_ir

・ STOCKVOICE Asset Building Festa 2024
・ Seminar for individual investors hosted
by Nihon Securities Journal Inc.
<FY2025>
・ Shonan Investment Study Group(scheduled)・ To Be Updated

https://ciw.jp/ir-en/@ciw_ir

Copyright© Confidence Inc. All Rights Reserved.

|

44

Empowering Professionals to Create the Future Together
Inquiries about this material: IR staff, FP&A Division （ir@ciw.jp）
Handling of this material
This material includes forward-looking statements. These are nothing but the statements prepared on the basis of the information available at the time of preparing them. Moreover,such statements are not a guarantee of future results, and contain risks and uncertainties. Please note that actual results may differ significantly from future forecasts due to changes
in the business environment and other factors. Factors that may affect the actual results mentioned above include, but are not limited to, economic conditions in and outside Japanand trends of the industries related to the Company.
In addition, the information contained in this material and related to matters other than the Company has been quoted from publicized information. The Company has made no
verification about the accuracy and appropriateness, etc. of such information, and provides no guarantee about it.