First Quarter, Fiscal Year Ending March 2024

Financial Results
August 8, 2023

United, Inc.
(TSE Growth: code 2497)© UNITED, Inc.

1

Purpose
People who push themselves forward.
Businesses that move society forward.
The betterment of society is driven by people andbusinesses with willpower.
Strong willpower is the source of energy thatchanges society for the better.
UNITED will maximize this energy and willpower.

Maximize willpower andaccelerate the betterment of society.

We will provide knowledge and opportunities topeople with willpower.
We will provide funds and know-how to businesses
with willpower.
And when both parties meet, their mutual growth
will spark even further growth.
This cycle of growth will enrich society.
We will move society in a better direction fasterwith willpower.
We will maximize willpower and accelerate thebetterment of society.
2Agenda1 Financial Highlights of Q1 FY03/24

p.4

2 Q1 FY03/24 Business Overview

p.11

3 Appendix

p.39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time thematerial was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names aretrademarks or registered trademarks of the respective companies.

3

Business Segments and Their Components

Core Businesses

Business

Earnings Drivers

Investment business

Education business

Personnel Matchingbusiness

Ad Tech/Content business

Provision of capital andhands-on support to startups

Online education service thatallows students to gain digitalskillsMatching of digital talent (including
freelancers, side-job workers, andthose seeking career changes) in linewith the needs of startups

Development and operation ofadvertising products,
media, and apps

Kasooku inc.

LIBASE Inc.

UNITED Marketing Technologies
Inc.

Fogg, inc.

Innoop Inc.

ONX inc.

Brewus, Inc.

International Sports Marketing
Co., Ltd.

Components
Investment Division

KiRAMEX Co.

Consolidated in July 2023

4

Financial Highlights of Q1 FY03/24

Sales and operating profit increased YoY as the sale of investment securities concentrated in the quarter.

7,224 million (+51% YoY)
Operating profit ¥ 5,361million (+72% YoY)
Sales

¥

Investment

Sales
Operating profit¥5,813 million (+78% YoY)
¥5,731 million (+79% YoY)

Education

Sales
Operating profit¥341 million (-6% YoY)-¥17 million (-¥84 million YoY)

p.21 for details

Personnel Matching

Sales
Operating profit¥113 million (+49% YoY)-¥137 million (-¥88 million YoY)

p.28 for details

Sales
Operating profit¥959 million (-11% YoY)
¥68 million (-44% YoY)

p.36 for details

Consolidated
Operating PerformanceCore Businesses
p.11 for details

Earnings Drivers
Ad Tech/Content

5Overall Strategy for FY03/24

In order to drive medium-term growth for the Personnel Matching business, we will actively invest profits
generated from our other businesses.

Continuous profit generation

Medium-term earnings generation

Investment business

Education business

Upfront
investments

Personnel Matchingbusiness

Ad Tech/Content business

6

Q1 Progress vs. Full-year FY03/24 Forecast

The Q1 progress rates for profit items from operating profit and below exceeded 100% versus our full-yeartargets since we sold investment securities ahead of schedule.
As our plan calls for continued investment in the Personnel Matching business, we left the full-year earnings
forecast unchanged.
Consolidated ForecastSales： ¥ 13,150 million

Operating profit：¥ 5,000 million

Ordinary Profit：¥

Net Income*

：

EPS

：

5,000 million¥ 3,300 million¥ 79.50

Q1 Progress vs. Full-year Forecast (as of the end of Q1 FY03/24)
Sales

55%

Operating
Profit107%

Ordinary
Profit107%

Net Income*

100%
v

112%

* Refers to net income attributable to owners of parent
7

Expanding Shareholder Returns

In addition to continued business investment, we expanded shareholder returns to improve our capitalefficiency.

Through FY03/23

Dividend policy

Other

Dividend payout
ratio of 20%

Share buyback

FY03/24

Dividend policy
from FY03/24 onward

DOE of 4% or dividend
payout ratio of 50%,
whichever amount is larger

Commemorative
Dividendin celebration ofUnited’s 10th anniversary

Other

Commemorative dividendof ¥25 per share

Stock split(2-for-1 stock split
with June 1, 2023 as the effective date)8

Dividend Increase due to Expanded Shareholder Returns

We expect dividend per share to increase by ¥26.5 YoY.
Total payout ratio is also projected to rise 12.3pt YoY.
Dividend per Share Forecast(FY03/24)

Previous Fiscal
Year*

Ordinary
dividend

¥23

¥21.5

+¥1.5

Commemorative
dividend

¥25

-

+¥25

Total

¥48

¥21.5

+¥26.5

DOE

9.5%

4.6%

+4.9ptPayout ratio

56.8%

20.5%

+36.3pt

Total payout
ratio

56.8%

44.5%

+12.3pt

Dividend Forecast* Figures adjusted to reflect the stock split

YoY(FY03/23)

9Agenda1 Financial Highlights of Q1 FY03/24

p.4

2 Q1 FY03/24 Business Overview

p.11

3 Appendix

p.39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time thematerial was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names aretrademarks or registered trademarks of the respective companies.

10Investment Business11

Investment Business: Sales and Operating Profit

Sales and operating profit were up YoY as we sold investment securities ahead of schedule versus ourfull-year plan.
On a full-year basis, we expect earnings to finish in line with the plan.
Sales Trend (Millions of yen)

Operating Profit Trend (Millions of yen)
+78% YoY+79% YoY

5,813

3,258

5,731

3,206

2,110

2,066
1,398

1,261

261
Q1

85

Q2

Q3
FY03/23Q4Q1
FY03/24

Q1
1Q

Q2
2Q

Q3
3Q
FY03/23

Q4
4Q

Q1
1Q
FY03/2412

Investment Business: New Investees

We newly invested in three companies.

GauG Inc.

Scenario Inc.

REXIT Inc.

Company

GauG Inc.

Company

Scenario Inc.

Company

REXIT Inc.

Established

October 2021

Established

January 2021

EstablishedMay 2016

Representative

Naoto Maeda

Representative

Shun Yokoyama

Representative

Masaki AndoBusiness

Operator of GauG, a community
platform for gamers

Business

Developer and provider of Liferary jobchange service

Business

Operator of “tokihana,” offering personal
support in selecting wedding venues

Investment
executed

April 2023

Investment
executed

June 2023

Investment
executed

July 2023

13

Investment Business: Expanding the Number of Investment Projects

Drawing on our two competitive advantages, we will boost the number of investment projects forpromising startups.
We plan to invest a total of ¥1.0 billion* in 20 companies this fiscal year.
Competitive advantages

Number of investment projects, the amount of investment
Number of investment projects (number of investees)

Investments
using own
funds

Investment amount (million yen)

• We can invest with flexibility, without having to limit
the amount of capital provided or the ratio of stakeacquired per project.

1,000

825

• We can invest in business domains that requiretime for growth because, unlike other VC funds,
there is no need to limit the investment period.

750

20

• We have access to a wide range of startups thanks
Reach to a wide
to our track record of numerous investments andrange ofexits, the network we established with venture
startups
capitalists and top management of startups, and ourinvestment in 36 external funds as an LP.

18

FY03/22

FY03/23362

5

FY03/21* Equivalent to the scale of a ¥4 billion-plus fund (if committed over three years)

18

FY03/24 (Plan)

14

Investment Business: Investment Track Record

As of Q1 FY03/24, we have invested a total of approximately ¥6.1 billion on a cumulative basis and our gains
on sale of securities, combined with unrealized gains, stood at roughly ¥53.2 billion.
Investment Track Record (since January 2013)
Investment amount(cumulative)

Gains on sale of securities(cumulative)

Breakdown of Operational Investment Securities

Unrealized gains on shares
held as of end-June 2023

InvesteeCompanies(Millions of yen)
4,300

Listed shares•Mercari, Inc.
•Wonder Planet, Inc.
•CyberBuzz, Inc.
•Socialwire Co., Ltd.
•Confidence Inc.
•Excite Holdings Co., Ltd.

Unlisted
sharesLP
investments

As of June 30, 2023
(amount on BS)

Approx.

¥3.7bn *76 companies

Approx.

¥3.0 bn

36 funds

Approx.

¥1.5 bn

48,924
43,17436,58630,14023,364
4,092

FY03/20

4,485

FY03/215,245

FY03/226,089

FY03/23

6,109

FY03/24*We have forward contracts for some stocks. Including derivatives in the balance sheet, theamount was ¥4,297 million as of end-June 2023.

15

Significance of Pursuing the Investment BusinessWe provide funds and know-how toentrepreneurs with willpower in order toraise the success rate of startups.

⚫ Fostering startups is vital to the Japanese economy.
⚫ United will raise the success rate of startups andaccelerate their growth by providing funds and support.

16

Investment Business: Initiatives

In keeping with our purpose statement, we focus on investment in seed- to early-stage startups.
We seek to enhance the value of startups by stepping up our efforts to provide hands-on support.
Reason behind our focus on seed- to early-stage startups

Hands-on support

The ratio of new business launches and the percentage of people aspiring to start
their own businesses are both low in Japan. To create new industries, it is crucial
to invest and provide support from an early stage.
Percentage of people who consider
entrepreneurship as a desirable
career option*2

Ratio of new business launches*1

Japan

U.S.

67.9%
9.9%

10.1%
9.5%

9.2%

9.2%

Examples of support offered by UVS*3,
our investee support organization
Formulation of business strategy/plan, financing support,
formulation and execution of organizational strategy,
digital marketing support, etc.

9.3%

Matching of talent and startups throughbusiness collaboration
5.6%

5.6%

5.2%

5.1%
4.4%

2015

2016

2017

2018

24.6%

Collaboration with the Personnel Matching business

4.2%

2019

2020

Japan

U.S.

Source:*1 2022 White Paper on Small and Medium Enterprises in Japan and 2023 White Paper on Small and Medium
Enterprises in Japan by The Small and Medium Enterprise Agency*2 Collection of Basic Data regarding Startups by the Cabinet Secretariat, Government of Japan*3 UNITED Venture Success. Investee support organization comprised of venture capitalists and consultants17

Investment Business: Market Environment

The Japanese government has set forth “the enhancement of support toward startups” as a major agenda inits so-called Big-Boned Policy and formulated the Startup Development Five-Year Plan, which targets ¥10trillion in startup investments by fiscal 2027. Seeing this as a chance to expand investment opportunities, weare executing investments at an accelerated pace.
Three pillars of the Startup Development Five-Year Plan

Amount invested in domestic startups/government target

10,000(Billions of yen)

Develop human resources and put in place networks that
Pillar 1 enable establishment of startups
Roughly 10-foldincrease

Pillar 2 Strengthen funding for startups and diversify exit strategies
867.6

Pillar 3 Promote open innovation

555.4

2020

Source: Startup Development Five-year Plan (draft) by the Cabinet Secretariat, Government of Japan

945.9

2021

2022

2027
(government target)

Source: Japan Startup Finance 2022, “Amount of Funds Raised by Domestic Startups,” by INITIAL, Inc.
Japan Startup Finance 1H 2023 (Latest Edition) by INITIAL, Inc.

18

Investment Business: Major Startup Investments

Post IPO

Middle to Later Stage

Seed to Early Stage

NEW

NEW

NEW

As of end-July 2023
19

Investment Business: Major Funds LP Investments

We expect to record gains on distribution from the multiple external funds (36 in total) we invest in as an LP.
These funds also serve as our source of new investment projects, as they allow us to reach out to over 1,000
startups.
Major Funds We Invest in as LP

20

Education Business21

Education Business: Sales and Operating Profit

Sales declined YoY as we offered the Generative AI course at a special price* when we launched the program.
Operating profit was down YoY owing to an increase in advertising cost for the Generative AI course andexpenses associated with bolstering the business structure.
Sales Trend (Millions of yen)

Operating Profit Trend (Millions of yen)
-6% YoY-¥84 million YoY

364
341

66

318

303
265

-11

-17

-58

-109
Q1
1Q

Q2
2Q

Q3
3Q
FY03/23

Q4
4Q

Q1
1Q

Q1

FY03/24* The First Prompt Engineering Course (ordinarily priced at ¥149,600) was offered for ¥55,000 from April 17 to May 28, 2023.

Q2

Q3
FY03/23Q4Q1
FY03/24

22

Education Business: Toward Regrowth

Since Q4 FY03/23, we have focused on Yahoo! TechAcademy and First Prompt Engineering Course with aplan to achieve regrowth.
• TechAcademy expanded due to the COVID-19
pandemic• Ran a TV commercial (Q4)

Sales

• Efficiency in securing TechAcademy students
declined due to increased number of competitors• Curbed ad investment• Focused on TechAcademy Works• Launched Yahoo! TechAcademy (Q4)
• Launched Generative AI course (Q1)

Operating profit(Millions of yen)

636
577

591

511

462

440
380

389

364
318

303

341

265
159
120
66

57

Q1

Q2

Q3
FY03/21

-40

-67

-92

-100

Q4

Q1

-11

-18

-17
-58
-109

Q2

Q3
FY03/22

Q4

Q1

Q2

Q3
FY03/23Q4Q1
FY03/24

23

Education Business: Strategy for FY03/24

In FY03/23, we focused on TechAcademy Works, which offers practical work opportunities, to provide more
added value to our students.
In FY03/24, we will focus on Generative AI initiatives as well as the Yahoo! TechAcademy.
FY03/23

FY03/24

In addition to taking courses, students gain practicalskills by participating in actual development projects.

Students gain the skills to utilize AI in actual work.
Students gain practical skills that are based on
Yahoo Japan’s expertise.

TechAcademy

learning

Works

First Prompt
Engineering Course

practice* We will focus on the above while continuing TechAcademy Works.

24

Education Business: Initiatives for the Yahoo! TechAcademy

Yahoo! TechAcademy was chosen for the Reskilling-based Career Development Support Program* led by the
Ministry of Economy, Trade and Industry.
In fall 2023, we plan to begin accepting student applications for the second year.
TechAcademy

Yahoo! TechAcademy offers practical curriculum that allows students to obtain the skills
required in the internet industry.
Students can acquire practical skills that are based on Yahoo Japan’s expertise, and areoffered support during their career-change processes.

Practical curriculum

One-on-one instructions
and lectures

Career-change support

Students acquire necessary skills in fourmonths through practical training that draws
on the expertise of Yahoo! JAPAN

Career support through one-on-one
instructions and lectures by Yahoo! JAPANengineers

Meticulous career-change support for thosewith no experience* A program that integrates “career consulting” in which employed workers can consult about their careers, “reskilling” in which such workers can take reskilling sessions based on the
consultation, and “career-change support” in which such workers can receive career-change support based on the career consultation and reskilling sessions provided.
25

Significance of Pursuing the Education BusinessWe provide an environment for growthto people with willpower.
We enrich society with opportunities and people
who continue to pursue self-actualization.
⚫ As the pace of changes in society accelerates, it becomes increasingly
difficult to survive with knowledge and skills in just one area.
⚫ We provide an environment that fosters wisdom so that individuals canrealize what they aspire with strong will.
⚫ Rather than simply providing wisdom, we also provide a place wherethat wisdom can be applied, thereby creating opportunities forindividuals to achieve continued growth.

26

Education Business: Initiatives

To solve the shortage of digital talent, we seek to improve the skillsets of prospective talent by providing
education and practical work opportunities.
By focusing on Generative AI, we provide the learning necessary for the future era.
Educate prospective digital talent

Provide practical work opportunities

Provide learning that can be applied
to the coming era

We offer a wide range of courses
from introductory courses for non-engineers tocourses involving practical training.

We support skill enhancement and career change by
providing practical work opportunities.

We provide the learning that one needs
in a society where the spread of technology/AI is
progressing rapidly.

Works
An online school that teaches programming
and app development to individualand corporate customers.

TechAcademy
Service that allows students to acquire
practical skills based on Yahoo's expertise

Service where graduates and mentors
collaborate on corporate development projects

First Prompt
Engineering Course
卒業生とメンターが共同でStudents gain
the skills to utilize Generative AI
in real-life work。
企業の開発案件に対応するサービス

AI Course
卒業生とメンターが共同でStudents gain
knowledge on deep learning and企業の開発案件に対応するサービス
machinelearning necessary for building AI.

We plan on implementing new initiatives such as
the launch of a course on how to incorporate
Generative AI in businesses.

27

Education Business: Market Environment

In 2030, the pool of digital talent in Japan will be short by about 800 thousand people.
With the AI market expanding, the need to foster digital talent will rise.

Expanding shortage of digital talent
Digital talent in Japan

Outlook on the AI systems market in Japan

Shortage of digital talent in Japan(10,000 people)

11,034(Billons of yen)

Roughly 3-foldincrease

79
41
3,883

106

113

2020

2030
(Projection)

Source: 2008 Survey on Infrastructure Development and IT Personnel Supply and Demand related to Japan’s Data-driven
Society, a report by Mizuho Information & Research Institute, Inc.

2022

2027
(Projection)

Source: Japan Artificial Intelligence Systems Forecast, 2023–2027 by IDC Japan28

Personnel Matching Business

29Personnel Matching Business: Sales and Operating Profit

Sales increased YoY due to the three M&A transactions we executed in FY03/23.
Operating loss widened YoY owing to increases in goodwill amortization and advertising expenses associatedwith Kasooku inc.
Sales Trend (Millions of yen)

Operating Profit Trend (Millions of yen)
+49% YoY

142

139-¥88 million YoY

123
113

76
-49
-70
-94

Q1
1Q

Q2
2Q

Q3
3Q
FY03/23

Q4
4Q

Q1
1Q
FY03/24Q1Q2Q3
FY03/23

-131

-137

Q4

Q1
FY03/2430

Personnel Matching Business: Promoting Growth of Existing Businesses

The number of registrants* have continued to increase due to the M&A transactions executed since FY03/23.
Although the number of corporate users rose YoY, it fell QoQ as the integration of Cocodoru, Inc. did not
progress smoothly.
In FY03/24, we will merge Cocodoru with Kasooku, reorganize, and aim for business expansion once again.
Number of registrants

Number of corporate users

Kasooku inc.
consolidated(Registrants)(Users)300+58% YoY

24,86923,650
250

200

150
Cocodoru, Inc.
consolidated

100

5,064

4,832

50

175
0
1Q
Q1

2Q
Q2

3Q
Q3

FY03/23

4Q
Q4

1Q
Q1

FY03/24

2022年3月期
Q2 2Q

2022年3月期
Q3 3Q

FY03/222022年3月期
Q4 4Q

2023年3月期
Q1 1Q

2023年3月期
Q2 2Q

2023年3月期
Q3 3Q

FY03/232023年3月期
Q4 4Q

2024年3月期
Q1 1Q

FY03/24* Job seekers registered with our services
31Personnel Matching Business: Strengthening M&A and capital/business alliances

We made ONX inc. a subsidiary to strengthen business in the HR domain.

Business overview

Operates “Carry Up,” a referral service specializing in freelance HR professionals.
HR professionals who have passed ONX’s screening process provide support spanning
formulation to execution of HR strategies.

Company

ONX inc.

Established

August 2021

Representative
Business
Share transfer
date

Representative Director: Yoshiki Baba
Matching service specializing in freelance HR
professionals

July 2023
32

Significance of Pursuing the Personnel Matching BusinessWe create opportunities where people
with willpower and businesses withwillpower can come together.
⚫ We contribute to the creation of new industries byintroducing superior talent to startups.
⚫ In anticipation of Japan’s shrinking workforce, we promote
optimum allocation of human resources by boosting
employment mobility.

⚫ We provide opportunities where individuals can improvetheir skills through various work and gain experience as abusinessperson.

33Personnel Matching Business: Initiatives

We focus on startups, and match personnel based on contractual arrangements (career change, side job,
freelancing, etc.) that suit the startups’ needs.
We seek to boost employment mobility and contribute to the creation of new industries by offering job
seekers work opportunities of diverse formats.
Startups

We introduce talent who can assist business-stage-appropriate growth of startups,
under suitable contractual arrangements.

Career change

Recruitment support businessSide job

Matching service for those seeking
side jobs and career changes

Freelancing

Designer-focused
crowdsourcing service

We create opportunities for people to improve skills and gain experiences suitable to their career plans by providing
employment opportunities that cater to diverse work styles.
Job seekers
34Personnel Matching Business Market Environment

The population of side-job workers and freelancers has increased on the back of workstyle reforms andwidespread adoption of remote work.
The ratio of workers changing jobs is rising due to work style diversification and a change in people’s values
concerning work. We expect to see employment mobility expand moving forward.
Side-job and freelance population
Side job & freelance
population

Ratio of workers who have changed jobs during the year

Population of those who have no side-job
experience but have the intent to work side jobs

7.6%

(10,000 people)

7.0%

7.0%

1,784

5.3%

4.9%
4.2%
3.7%

2,482
1,470

2015

1,775

1,882

1,895

1,854

1,770

2016

2017

2018

2019

2020

2021

Sources:
New Freelance Fact-Finding Investigation Report 2021–2022, “Segment-specific Trends,” by Lancers, Inc.
Freelance Fact-Finding Investigation Report 2021, “Increase of Side-job and Multiple-job Workers,” by Lancers, Inc.
Freelance Fact-Finding Investigation Report 2018, “Trends in the Economic Scale and Population of Side-job
Workforce,” by Lancers, Inc.
”CrowdWorks Conducts Survey on Side Jobs,” by CrowdWorks, Inc.

2016

2017

2018

2019

Source: 2023 Survey on Job Change Trends (2022 Results) by Mynavi

2020

2021

2022

35

Ad Tech/Content Business

36

Ad Tech/Content Business: Sales and Operating Profit

Sales and operating profit fell YoY in the Ad Technology business since advertisers’ ad budgets concentratedin 1H FY03/23.

Sales Trend (Millions of yen)

Operating Profit Trend (Millions of yen)

Ad Technology
Content-44% YoY-11% YoY

1,155

195
1,113

1,079

140

1,043
959

121

112

68

Q1
1Q

Q2
2Q

Q3
3Q
FY03/23*UNITED Marketing Technologies Inc.

Q4
4Q

Q1
1Q
FY03/24Q1Q2Q3
FY03/23Q4Q1
FY03/24

37

Agenda1 Financial Highlights of Q1 FY03/24

p.4

2 Q1 FY03/24 Business Overview

p.11

3 Appendix

p.39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time thematerial was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names aretrademarks or registered trademarks of the respective companies.

38Collaboration of the Core Businesses

We will create synergies by strengthening collaboration of our core businesses.

Supply trained digital
personnel

Education business

Match personnel who cancontribute to growth ofinvestee companies

Personnel Matchingbusiness

Develop and improveeducational curriculum

Investment business

Provide access to staffing
needs at startups

39

Growth Mechanism

We will build a unique growth mechanism where the growth of each core business will lead to mutual
enhancement of competitive strengths and KPIs.

Education business

Personnel Matching business

Investment business

Increase the levelof skills gained

Improvematching rate

Expand investment
opportunities

Expand/improveeducation service

Expand/improvetalent pool

Discover superior
growth companies

Widen reach to growthcompanies

Accumulate
skills/know-how

Increase matching
opportunities

KPI The number of individual users

KPI The number of corporate users

Build investment
track record

KPI The number of investment projects

Growth of core businesses as a whole40

Education Business: Service Overview & Business Model

We operate the online school TechAcademy, where students can learn programming and app development,
and we offer TechAcademy Works, which provides practical work opportunities for acquiring hands-on
skills and supports career changes.
Service Overview

Business Model

Online programming school for individuals andcorporations

TechAcademy

Online tutoring

Online tutoring¥

Launched in
January 2023

Service that allows students to acquire practicalskills based on Yahoo's expertise

TechAcademy/
Yahoo! TechAcademy

Individuals
aspiring tobecome digitalprofessionals

Tuition fees¥

Tuition fees

TechAcademy WorksTechAcademy Works
Project-based
compensation

Worker* referral¥¥

Companies
aiming for
growththrough digitaltechnology

Outsourcing fees

Service where graduates and mentors collaborate
on corporate development projects*TechAcademy graduates working on TechAcademy Works projects
41Personnel Matching Business: Business Model & Overview

As the core company of the Personnel Matching business, Kasooku inc. focuses on matching digitalprofessionals in the areas of career changes, side jobs, and freelancing with growth-oriented companies.
Business Model

Business Overview

Side-job worker referral¥
Service registration/
job application

Kasooku inc.

Referral fees

Side job and career change matching platform"Kasooku"
Consolidation started in December 2022

Matching side job workers/
career change talent

Job change talentreferral¥Referral fees

LIBASE Inc.

Job seekers¥

Service registration/
job application

Designer referral

Project-based
compensation

Outsourcing
expenses

Designer matching¥

Outsourced recruiting
messaging services

Recruiter messaging services
for job seekers¥

Agency fees

Designer-focused crowdsourcing service "JOOi"

Start up
Consolidation started in June 2021

Innoop Inc.
Recruitment support business "offerBrain"
Consolidation started in August 2022
42

Summary of Consolidated P/L Statement for Q1 FY03/24(Millions of yen)

Q1 FY03/23

Q1 FY03/24

YoY (%)

Sales

4,776

7,224

+51.3%

Gross profit

3,796

6,241

+64.4%

SG&A expenses

670

880

+31.2%

Operating Profit

3,125

5,361

+71.6%

Non-operating profit

98-11.8%

Non-operating expenses

93-66.1%

3,125

5,366

+71.7%

Extraordinary profit

359

-

-

Extraordinary losses

2

-

-

Profit before income taxes

3,481

5,366

+54.1%Net Income*

2,399

3,685

+53.6%

Ordinary Profit*Refers to net income attributable to owners of parent

43Consolidated P/L Statement for Q1 FY03/24, by Business(Millions of yen)

Q1 FY23/03

Difference

Q1 FY03/24

YoY (Amount)

YoY (%)

4,776

7,224

+2,448+51%

Investment

3,258

5,813

+2,555+78%

Education

364

341

-23

-6%

Personnel Matching

76

113

+37

+49%

1,079

959

-119

-11%

-2

-4

-1

-

Gross Profit*1

3,796

6,241

+2,445+64%

Investment

3,226

5,777

+2,550+79%

Education

171

118

-53

-31%

Personnel Matching

18

28

+9

+50%

Ad Tech/Content

380

321

-58

-15%

-0

-3

-3

-

SG&A Expenses

670

880

+209

+31%

Operating Profit

3,125

5,361

+2,236+72%

Investment

3,206

5,731

+2,524+79%

Education

66

-17

-84

-

Personnel Matching

-49

-137

-88

-

Ad Tech/Content

121

68

-53

-44%

Other

-221

-282

-61

-

Ordinary Profit

3,125

5,366

+2,241+72%

Net Income*2

2,399

3,685

+1,286

+54%

Sales

Ad Tech/Content
Other

Other

*1 Cost of sales for each business mainly includes advertising, outsourcing, and personnel expenses*2 Refers to net income attributable to owners of parent

44

Consolidated B/S Statement

Decrease in assets and liabilities mainly due to mark-to-market valuation and sale of listed shares held.

(Millions of yen)

End of FY03/23(March 31, 2023)

End of Q1 FY03/24(June 30, 2023)

Difference

27,891

28,298+406

Cash & Deposits

13,37017,145+3,774

Operating Investment Securities

11,236

8,386-2,849 *1

4,426

2,272

-2,153

905

848

-57

Total Assets

32,31830,571-1,746

Current Liabilities

2,777

3,125

+348

Non Current Liabilities

2,893

1,301

-1,592

2,838

1,247

-1,590Total Liabilities

5,671

4,427

-1,243

Net Assets

26,647

26,143

-503

3,934

1,912

-2,021 *3

Current Assets

Non Current Assets
Amortization of Goodwill

Deferred Tax Liabilities

Unrealized Gain on Securities*2Note) Of this amount, the impact of revaluation (mark -to-market) and disposal of operational investment securities (listed share s) were as follows:*1 Operational investment securities -¥2,869 million*2 Deferred tax liabilities -¥805 million*3 Unrealized gain on securities -¥2,033 million.

45

Sales and Earnings (FY03/13–FY03/24)(Millions of yen)

Recorded gains on the saleof securities accompanying
the listing of Mercari, Inc.

Sales
Operating profit

Designated corebusinesses in line with
our purpose statement

22,31816,267

13,14012,714

12,60913,15011,084

8,385

8,383

5,552
5,101

4,325

3,955

5,606

5,738

5,823
5,000

2,530

1,509
2
FY03/13138

370

FY03/14

FY03/15

FY03/16

1,395

FY03/17

1,648

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22*

FY03/23

FY03/24(Forecast)*We adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) and the ASBJ Guidance No. 30 (Implementation Guidance on Accounting Standard for
Revenue Recognition) from FY21. In this document, we applied this standard to the past earnings of the Ad Technology business in order to make the comparison easier.

46

Number of Consolidated Employees and Directors

Temporary employees
Headquarters divisions full-time employees

Designated corebusinesses in line with
our purpose statement

Ad Tech/Content full-time employees
Personnel Matching full-time employees
Education full-time employees
Investment full-time employees
Officers (Directors and corporate auditors of parent,
including outside directors/auditors)

359(Numbers employed)

334

335

331

325

325

340

331

346
72

48

30

170

29

54

58

56

51

67

54

69

22
28

28

167

163

26

24

24

165

21

20

21

169

22

22

171

167

168

21

23

22

25

46

45

45

45

172

23

45

42

46

44

45

7
8

6
8

6
8

6
8

7
11

6
11

6
11

6
11

14
11

FY22-1Q
Q1

FY22-2Q
Q2

FY22-3Q
Q3

FY22-4Q
Q4

FY23-1Q
Q1

FY23-2Q
Q2

FY23-3Q
Q3

FY23-4Q
Q4

FY24-1Q
Q1

FY03/22

FY03/23

FY03/2447

48