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

July 12, 2024

CONSOLIDATED FINANCIAL REPORT (Japanese GAAP)FY2023 (June 1, 2023 to May 31, 2024)
Listed company name:
Pasona Group Inc.
Listing stock exchange:
The Prime Section of the Tokyo Stock Exchange
Securities code number:
2168
URL:
https://www.pasonagroup.co.jp
Representative:
Yasuyuki Nambu, Group CEO and President
For further information contact: Yuko Nakase, Senior Managing Executive Officer and CFO
Tel. +81-3-6734-0200
Date of Annual General Meeting of Shareholders: August 22, 2024
Scheduled payment date of cash dividends: August 8, 2024
Scheduled filing date of the securities report: August 23, 2024
Supplemental materials prepared for financial results: Yes
Holding of financial results meeting: Yes (for analysts and institutional investors)(All amounts are in millions of yen rounded down unless otherwise stated.)

1. CONSOLIDATED BUSINESS RESULTS(1) Consolidated Financial Results
Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.
Net Sales

Operating profit%

FY2023
FY2022356,733
372,579(Note) Comprehensive income

(4.3)
1.8

FY2023
FY2022%

6,794
14,377%(52.7)(34.9)

7,152
15,366FY2023: ¥99,351 million (849.1%)

Net profit
per Share

Profit attributable toowners of parent

Ordinary profit

Yen

Diluted Net Profit
per ShareYen

2,447.56
155.702,446.76
155.22%(53.5)(31.7)

95,891
6,099－(29.3)FY2022: ¥10,468 million ((27.5)%)%

Ordinary Profit toTotal Assets%

Operating Profit to
Net Sales
%

94.7
11.7

2.5
6.4

1.9
3.9

Return on Equity(Reference) Equity in earnings of unconsolidated subsidiaries and affiliates
FY2023: ¥131 million FY2022: ¥153 million(2) Consolidated Financial Position
Total Assets

May 31, 2024
May 31, 2023

Net Assets

301,090
275,504

154,661
71,624Equity Ratio (%)

49.3
19.6

Net Assets per Share(Yen)

3,789.42
1,378.40(Reference) Equity
As of May 31, 2024: ¥148,488 million
As of May 31, 2023: ¥53,998 million(Note) Total assets for the fiscal years ended May 31, 2023 and May 31, 2024 include temporary “deposits
received” from customers for contracted projects and the corresponding “cash and deposits” in assets
and liabilities. For details, please refer to “1. Summary of Business Results, etc. (2) Summary of
Financial Position for the Fiscal Year under Review.”― 1 ―(3) Consolidated Cash Flows
Cash Flows fromOperating Activities

FY2023
FY2022

Cash Flows from
Investing Activities

7,397
5,961

Cash and Cash
Equivalents,
End of Period

Cash Flows from
Financing Activities

94,252(12,502)(12,879)(2,292)137,047
47,919

2. DIVIDENDSDividends per Share (Yen)End ofFirst
Quarter

End ofSecondQuarter

End ofThird
Quarter

FiscalYear-End

－
－
－

0.00
0.00
0.00

－
－
－

35.00
75.00
75.00

FY2022
FY2023
FY2024(Forecast)

Annual

Total
Dividend
Payment(Annual)

35.00
75.00
75.00

Dividend
Payout Ratio(Consolidated)

1,396
3,018

22.5%
3.1%
226.0%

Ratio of
Dividends to
Net Assets(Consolidated)

2.6%
2.9%

(Note) Breakdown of year-end dividend for the fiscal year ending May 31, 2024
Ordinary dividend ¥15.00
Special dividend ¥60.00
3. FORECAST OF RESULTS FOR THE FISCAL YEAR ENDING MAY 31, 2025
Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.
Net Sales

FY2024 Full Fiscal Year

Operating Profit

Profit attributable toowners of parent

Ordinary Profit

Net Profit
per Share

%

%

%

%

Yen

330,000 (7.5)

5,000 (26.4)

5,000 (30.1)

1,300 (98.6)

33.18

4. NOTES(1) Changes in significant subsidiaries during the fiscal year under review: Yes(Changes in specified subsidiaries that caused changes in the scope of consolidation)
Exclusion 1 company(company name) Benefit One Inc.
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies in line with revisions to accounting and other standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Number of shares issued and outstanding (common shares)
1) Number of shares issued and outstanding as of the period-end (including treasury shares)
May 31, 2024: 41,690,300 shares
May 31, 2023: 41,690,300 shares
2) Number of treasury shares as of the period-end
May 31, 2024: 2,505,360 shares
May 31, 2023: 2,515,520 shares
3) Average number of shares for the period
FY2023: 39,178,295 shares
FY2022: 39,174,636 shares― 2 ―1. FY2023 (June 1, 2023 to May 31, 2024)(1) Non-consolidated Financial Results
Percentage figures represent year-on-year increase / (decrease).
Net Sales%

FY2023
FY2022

10,004
15,646(36.1)
55.5

Net Profit per ShareFY2023
FY2022

Operating Profit (Loss)%－－(5,206)997

Ordinary Profit (Loss)

Net Profit%(8,778)
691

－
－

%

－
52.0

100,843
2,033

Diluted Net Profit
per Share

Yen

Yen

2,573.96
51.90

－
－

(2) Non-Consolidated Financial Position
Total Assets

May 31, 2024
May 31, 2023

Net Assets

194,284
97,963Equity Ratio (%)

118,855
19,396(Reference) Equity as of May 31, 2024: ¥118,855 million

Net Assets per Share (Yen)

61.2
19.8

3,033.18
495.11

As of May 31, 2023: ¥19,396 million(Note)The Company has introduced “Board Benefit Trust (BBT)” and “Employment Stock Ownership Plan
(J-ESOP).” The Company’s shares in BBT and J-ESOP, which are reported as treasury shares under
Shareholders’equity, are counted as the number of treasury shares as of the average number of shares outstanding
for the period for the purpose not including computing earnings and net assets per share.
This Financial Report is not subject to a review conducted by CPA or audit firm.
Cautionary statement and other explanatory notes
The aforementioned forecasts are based on assumptions and beliefs in light of information available to management at
the time of document preparation and accordingly include certain unconfirmed factors. As a result, readers are advisedthat actual results might differ materially from forecasts for a variety of reasons. Please refer to (Attachment) “1.
Summary of Business Results, etc., (4) Future Outlook” on page 11 for the assumptions used in the forecast of businessresults.
We are planning to hold a financial results online meeting for analysts and institutional investors on July 17, 2024.
Supplemental materials for the financial results will be posted on the Company’s website(https://www.pasonagroup.co.jp/ir/)immediately after the meeting.

― 3 ―FY2022 Consolidated Financial Report

INDEX
Summary of Business Results, etc.

・・・・・

P.5

(1) Summary of Business Results for the Fiscal Year under Review

・・・・・

P.5

(2) Summary of Financial Position for the Fiscal Year under Review

・・・・・

P.11

(3) Summary of Cash Flows for the Fiscal Year under Review

・・・・・

P.11

(4) Future Outlook

・・・・・

P.13

(5) Policy on the Appropriation of Profits and Dividends for FY2023 and FY2024

・・・・・

P.15

2.

Basic Consideration on Selecting our Accounting Standard

・・・・・

P.15

3.

Consolidated Financial Statements and Primary Notes

・・・・・

P.16

(1) Consolidated Balance Sheets

・・・・・

P.16

(2) Consolidated Statements of Income & Comprehensive Income

・・・・・

P.18

(3) Consolidated Statements of Changes in Shareholders’Equity

・・・・・

P.20

(4) Consolidated Statements of Cash Flows

・・・・・

P.22

(5) Note to Consolidated Financial Statements

・・・・・

P.24

(Notes to Going Concern Assumption)

・・・・・

p.24

(Important Items Considered Fundamental

・・・・・

p.24

(Changes in Presentation Method)

・・・・・

P.25

(Business Combinations, etc.)

・・・・・

p.26

(Segment Information, etc.)

・・・・・

p.28

(Per Share Information)

・・・・・

p.34

(Important Subsequent Events)

・・・・・

p.34

1.

to the Preparation of Consolidated Financial Statements）― 4 ―1. Summary of Business Results, etc.
(1) Summary of Business Results for the Fiscal Year under Reviewi) Business results for the fiscal year ended May 31, 2024
During the consolidated fiscal year under review, the Japanese economy came to a standstill toward the end of
the period, although consumer spending and employment conditions improved as socioeconomic activities began
to normalize. In addition, the economic outlook remains uncertain due to global monetary tightening and rising
prices.etc.
As for our business environment, the demand for BPO services remained firm due to the promotion ofbusiness efficiency and DX (Digital Transformation) by companies. In addition, demand for human resources
remained strong against the backdrop of economic recovery, and tourism demand continued to recover as thenumber of tourists, including inbound tourists, increased amid a shift in the social environment toward a
post-COVID-19 situation.
Under these circumstances, the Group's net sales were negatively affected by a decline in the Expert Services,
Outsourcing, and a portion of the Life Solutions businesses, as a result of a decrease in special demand related tomeasures to combat COVID-19 infections in the previous fiscal year. In BPO services, sales increased from theprevious fiscal year as the accumulation of new contracts absorbed the decline in revenue.
As a result, consolidated net sales for the current fiscal year were ¥356,733 million (down 4.3%
year-on-year), and gross profit was ¥84,825 million (down7.3% year-on-year). SG&A expenses increased to ¥78,030 million (up 1.1% year-on-year) due to increased personnel expenses for personnel reinforcement andupfront investments in growth areas, resulting in operating profit of ¥6,794 million (down 52.7% year-on-year)
and ordinary profit of ¥7,152 million (down 53.5% year-on-year).
Also, the Company sold shares of its consolidated subsidiary Benefit One Inc. during the period under review,
resulting in an extraordinary gain of ¥112,040 million on the sale of shares of subsidiaries and associates in the
consolidated financial statements. In addition, the Company posted an extraordinary loss of ¥1,164 million for
expenses related to the sale of shares of subsidiaries and associates, which were necessary for a series oftransactions related to the sale of shares. On the other hand, as a result of reviewing future business plans forcommercial facilities, etc. mainly belonging to the Regional Revitalization Solutions segment in light of thebusiness environment and current performance trends, the Company recorded an impairment loss of ¥10,811
million on fixed assets in the fourth quarter of the current fiscal year, as the recoverable amount was lower thanthe book value. In addition, as a result of estimating future taxable income and examining the recoverability ofdeferred tax assets, the Company recorded income taxes-deferred of ¥1,886 million in the current fiscal year. As
a result of the above, profit attributable to owners of parent amounted to ¥95,891 million (up 1,472.1%
year-on-year).
Consolidated Business Results(Millions of yen)

FY2022
Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent

YoY

FY2023
372,579
14,377
15,366

356,733
6,794
7,152

(4.3)%(52.7)%(53.5)%

6,099

95,891

1,472.1 %― 5 ―ⅱ) Business Segment Information (before elimination of intersegment transactions)*In accordance with the reorganization of subsidiaries in the current consolidated fiscal year, some businesses
falling under "BPO Services" and "HR Consulting, Education/Training and Others" were reviewed and thesegment classifications were changed. Figures for the previous consolidated fiscal year are compared based on
the reclassified figures after the change.
HR Solutions
Expert Services (Temporary Staffing), BPO Services (Contracting and Outsourcing), etc.
Net sales ¥297,08¥297,085
5 million Operating profit ¥11,77¥11,770
0 million[Expert Services]
Net sales ¥134,534 million
In this business, the Group provides a wide range of human resource services, including office work support,
clerical work, the provision of highly specialized skilled personnel, engineers, sales, and marketing personnel, andExpert Services (Temporary Staffing) for a wide range of age groups and job types, from young adults to seniorcitizens.
During the period under review, the number of active staff continued to decline throughout the year as
operations related to COVID-19 infections, which were handled nationwide in the previous period, were largely
completed. On the other hand, unit dispatch costs increased due to the revision of dispatch fee rates, and we also
made progress in improving compensation to temporary staff. However, the negative impact of the special demand
could not be made up, and net sales totaled ¥134,534 million (down 8.6% year-on-year). Looking ahead to thenext fiscal year, Pasona Inc. is working to strengthen its business foundation by launching "Code; Without Barriersin Japan" with Microsoft to increase orders for high-level clerical work and to develop human resources, and bytraining 10,000 temporary staff to become digital human resources.
[BPO Services]
Net sales ¥142,854 million
In this business, the Group provides BPO services by contracting reception, sales administration, order receipt
and placement, human resources, labor, and payroll, as well as general administration and general affairs toconsolidate and streamline complicated clerical work and accounting and finance to handle expense reimbursement
and other operations according to the busy schedule of customers.
During the period under review, the Company secured new demand from both the private sector and the public
sector, despite a decline in the number of projects that had been in special demand up to the previous period.
Private-sector companies increased their needs for support to concentrate on core operations in the areas of humanresources, accounting and general affairs, as well as for RPA implementation and operation support to improve
productivity, while needs expanded for overseas human resources support, as companies' overseas expansion
became more active with the general end of the COVID-19 infections. The public sector has expanded its
contracting of reskilling and administrative agency services. In our strategic X-TECH BPO, we also expanded
in-house production support for DX human resources development in both the private and public sectors, as well as
in online health promotion support for employees.
On a company-by-company basis, Bewith, Inc., which provides contact center and BPO services utilizing digitaltechnology such as Omnia LINK, a self-developed cloud-based PBX, and Pasona Nihon Soumubu Co., Ltd.
(renamed on April 1, 2024, formerly Pasona Panasonic Business Service Co., Ltd) made steady progress inacquiring new projects.
As a result, net sales totaled ¥142,854 million (up 0.4% year-on-year), absorbing the decline in revenue from
special demand related to measures to combat COVID-19 infections.

― 6 ―[HR Consulting, Education & Training, Others]
Net sales ¥8,673 million
this business, we provide consulting and management support by professional personnel such as freelancers andformer executives of listed companies in the advisory consulting business, as well as education and training
business commissioned by companies and the public sector.
In the advisory and consulting business, demand for professional personnel in specialized areas related to humancapital management and integrated reporting increased, as did hiring demand from companies seeking female
directors. In the recruiting business, demand for recruiting consulting services further expanded in order to secure
the most suitable personnel amid a steady demand for human resources. In the education and training business,
demand for specialized training and other training increased from the previous fiscal year as companies promoting
the advancement of female employees increased their needs, and the majority of new employee training was
face-to-face training.
As a result, net sales amounted to ¥8,673 million (up 4.0% year-on-year).
[Global Sourcing]
Net sales ¥11,024 million
Operating profit ¥270 million
This segment provides a full line of human resource-related services overseas, including placement andrecruiting, temporary staffing and outsourcing, payroll, and education and training.
In the Asian region, demand for human resources from the semiconductor and manufacturing industries
increased in Taiwan, and in Vietnam, development work in the IT field from Japanese companies expanded oncontract. In addition, human resource services expanded in Indonesia, where economic growth continues, and other
Southeast Asian countries saw increased revenues. In the North America region, while placement and recruiting
expanded due to a tight labor market, temporary staffing revenues declined due to an increase in direct hiring bycompanies. On the cost front, SG&A expenses increased due to up-front hiring and compensation improvements tostrengthen personnel at many locations, particularly in the U.S., as well as due to active implementation of training
and business travel.
As a result, net sales amounted to ¥11,024 million (up 12.1% year-on-year), while operating profit amounted to¥270 million (down 56.2% year-on-year), due in part to the foreign exchange effects of the weaker yen.
Net sales for the segment consisting of the above businesses amounted to ¥297,085 million (down 3.4%
year-on-year). In terms of profit, operating profit was ¥11,770 million (down 22.2% year-on-year), mainly due to adecrease in gross profit margins in Expert Services as a result of a decline in the number of active personnel, also
due to a decrease in the dispatch of medical professionals as a result of the general end of COVID-19 pandemic.
Career Solutions (Placement/Recruiting, Outplacement)
Net sales ¥13,05¥13,054
4 million Operating profit ¥4,04¥4,042
2 million
This business segment provides the Placement/Recruiting business, which supports companies’mid-career
recruitment activities and matches job-transfer candidates, and the Outplacement business, which supports
companies’personnel transitions based on their human resource strategies.
In the Placement / Recruiting business, although there was a decline in the willingness to hire in some industries,
stable demand continued in the high-career field, a strategic focus for the Group, and the unit contract price rosefrom the beginning of the period. On the other hand, the number of contracts signed decreased compared to theprevious fiscal year due to an increase in the number of job-transfer applicants who were consoled with theirresignation.
In the Outplacement business, demand continued to decline from the beginning of the period, as the number of
early and voluntary retirements offered by domestic companies in the period under review was the smallest in morethan a decade. However, an increasing number of companies are now offering early and voluntary retirement due tochanges in the business environment and corporate structural reforms. In addition, "Safe Placement Total Service,"
which supports employees' autonomous career development, expanded steadily due to the reskilling of veteranpersonnel and the rise of corporate human capital management.

― 7 ―As a result, net sales were ¥13,054 million (down 6.2% year-on-year) and operating profit was ¥4,042 million(down 1.1% year-on-year) as efforts to curb SG&A expenses, mainly through a review of personnel allocation,
failed to offset the decline in sales.
Outsourcing
Net sales ¥38,96¥38,962
2 million Operating profit ¥7,61¥7,615
5 million
This segment includes the outsourcing services provided by Benefit One Inc., a former consolidated subsidiaryof the Company, mainly for the provision of employee benefit services for corporations, public offices andmunicipalities.
In the welfare and benefit business, membership fee revenue, which accounts for the majority of sales, increased
from the previous year, while transactions specific to the former JTB Benefit and others declined. In terms of
expenses, profitability improved due to the effect of duplicate cost reductions resulting from the integration ofservices of the former JTB Benefit, although expenses increased from the previous fiscal year due to investments inhuman resources and systems for medium- and long-term growth.
In the healthcare business, sales of the COVID-19 vaccination support business decreased from the previous year
due to a contraction of operations. The health guidance business posted year-on-year increases in both revenue andincome, despite delays in acquiring new orders. The health checkup business generally progressed as planned.
As a result, net sales amounted to ¥38,962 million (down 8.1% year-on-year), and although the SG&A-to-sales
ratio was at the same level as the previous year, operating profit amounted to ¥7,615 million (down 27.4%
year-on-year) due to a decrease in gross profit margin caused by an increase in subsidy expenditures due toincreased use of employee benefit services toward the end of the period and increased amortization ofsystem-related expenses, etc.
Life Solutions
Net sales ¥7,79¥7,792
2 million Operating profit ¥12¥128
8 million
This business includes: the childcare business, which includes the operation of licensed and certified childcare
centers, in-house childcare facilities, and childcare for school-age children; the nursing care business, which
includes daycare services and home-visit nursing care; and the life support business, which includes housekeeping
services.
In the childcare business, although the number of children accepted at existing childcare facilities increased fromthe previous year, including the opening of new licensed nursery schools and school-age clubs, gross profit
decreased due to upfront expenses for new openings and higher personnel and other operating expenses.
In the Life Support business, sterilization and disinfection services, which until the previous fiscal year had been
contracted by hospitals and lodging facilities as a countermeasure against the spread of COVID-19 infections,declined, as did demand for the dispatch of nursing care personnel to care facilities for infected patients. In
addition, although business commissioned by local governments, such as housekeeping services for families raisingchildren, expanded steadily, SG&A expenses, especially personnel expenses, increased due to the dispersion ofsuch services across multiple regions.
As a result, net sales amounted to ¥7,792 million (down 5.0% year-on-year), while operating profit amounted to¥128 million (down 64.8% year-on-year).

― 8 ―Regional Revitalization Solutions
Net sales ¥6,22¥6,223
3 million Operating profit ¥(2,588¥(2,588)) million
In this business, we are engaged in regional development projects to create new industries and employment inrural areas in cooperation and collaboration with local residents, local businesses, and local governments.
At the Hyogo Prefectural Awaji Island Park Animation Park "Nijigen-no-Mori," the "NARUTO & BORUTO
SHINOBI-ZATO" attraction from "NARUTO," which is popular even overseas, and the "Godzilla Intercept
Operation," a Godzilla attraction that has gained increased interest in Japan and overseas after winning the2024 Academy Award this year, saw a large increase in inbound visitors. In addition, the rural "Haru-Sansan"
restaurant in the field, which serves cuisine from local areas using local ingredients from Awaji Island, attracted
many visitors as a facility where visitors can fully enjoy the charms of nature.
On the other hand, during the period under review, the number of visitors to some facilities did not reach theinitial forecast due to the summer heat wave and bad weather on weekends, as well as the dispersion of tourist
destinations in Japan. In addition, at facilities that provide restaurants and other food & beverage services, the costof sales ratio rose due to soaring raw material prices, and personnel expenses also increased due to improved
compensation. The Company reviewed future business plans in light of these business environments and current
performance trends and, as a result, recorded an impairment loss on fixed assets in those commercial facilities, etc.
in the fourth quarter of the current fiscal year, since the recoverable amount was less than the book value.
As a result, net sales were ¥6,223 million (down 10.2% year-on-year), and although the deficit improved
slightly, an operating profit was ¥(2,588) million (operating profit of ¥(2,877) million in the previous period). In theprevious fiscal year, some subsidiaries changed their fiscal year-ends from March to May, resulting in a 14-monthaccounting period. Excluding the technical impact of this change, sales increased from the previous fiscal year.
Eliminations and Corporate
Net sales ¥(6,385¥(6,385)) million Operating profit ¥(14,174¥(14,174)) million
This includes costs for eliminating intergroup transactions and maximizing group synergies, incubation costs for
new businesses, and administrative costs as a holding company.
In the period under review, personnel expenses and IT-related expenses to promote DX increased, as well assome expenses related to the pavilion at the Osaka-Kansai Expo in 2025. As a result of these, net sales for theelimination of intergroup transactions amounted to ¥(6,385) million (¥(6,539) million in the previous fiscal year),while operating profit amounted to ¥(14,174) million (¥(12,819) million in the previous fiscal year).

― 9 ―Segment Information (Figures include intersegment sales)
Consolidated Net Sales by Segment

HR Solutions
Expert Services (Temporary staffing),
BPO Services (Contracting), Others
Expert Services (Temporary staffing)
BPO Services (Contracting)
HR Consulting, Education & Training, Others
Global Sourcing (Overseas)
Career Solutions (Placement / Recruiting, Outplacement)
Outsourcing
Life Solutions
Regional Revitalization Solutions
Eliminations and Corporate
Total(Millions of yen)

FY2022363,987

FY2023
349,102

YoY(4.1) %

307,687

297,085(3.4) %

147,188
142,327
8,340
9,831
13,92342,3768,200
6,931(6,539)372,579

134,534
142,854
8,673
11,024
13,05438,962
7,792
6,223(6,385)356,733(8.6) %
0.4 %4.0 %12.1 %(6.2) %
(8.1) %
(5.0) %
(10.2) %―(4.3) %

Consolidated Operating Profit (Loss) by Segment(Millions of yen)

FY2022
29,709FY202323,428YoY(21.1) %HR Solutions
Expert Services (Temporary staffing),
15,132
11,770(22.2) %BPO Services (Contracting), Others
Expert Services (Temporary staffing)
BPO Services (Contracting)
14,515
11,499(20.8) %HR Consulting, Education & Training, Others
Global Sourcing (Overseas)
617
270(56.2) %Career Solutions (Placement / Recruiting, Outplacement)
4,089
4,042
(1.1) %
Outsourcing
10,4877,615(27.4) %Life Solutions
364
128(64.8) %Regional Revitalization Solutions(2,877)(2,588)―Eliminations and Corporate(12,819)(14,174)―
Total
14,377
6,794(52.7) %*In accordance with the reorganization of subsidiaries in the current consolidated fiscal year, some businesses
falling under "BPO Services" and "HR Consulting, Education/Training and Others" were reviewed and thesegment classifications were changed. Figures for the previous consolidated fiscal year are compared based on
the reclassified figures after the change.

― 10 ―

(2) Summary of Financial Position for the Fiscal Year under Review
Status of Assets, Liabilities and Net Assets
Assets and liabilities as of May 31, 2024 included ¥54,975 million (¥74,869 million as of May 31, 2023) intemporary “deposits received” from customers related to contract projects for which use by the Group isrestricted and a corresponding amount of “cash and deposits.”
AssetsTotal assets as of May 31, 2024 increased ¥25,585 million (up 9.3%) from the end of the previous fiscal yearto ¥301,090 million. Cash and deposits increased by ¥69,214 million due to the sale of shares of a consolidated
subsidiary of the Company, Benefit One Inc. (hereinafter referred to as "Benefit One"), decrease in "Deposits
received" above, acquisition of fixed assets and repayment of long-term debt, etc. and construction in progressincreased by ¥11,977 million in the Regional Revitalization Solutions business, while the exclusion of Benefit
One from consolidation led to a ¥7,379 million decrease in accounts receivable-trade, a ¥7,692 million decreasein other current assets, and a ¥21,570 million decrease in intangible fixed assets.
Liabilities
Total liabilities as of May 31, 2024, amounted to ¥146,428 million, a decrease of ¥57,451 million or 28.2%,
compared with May 31, 2023. Deposits received decreased by ¥22,316 million due to the above-mentioned
commissioned projects, etc., and long-term loans payable decreased by ¥14,077 million due to repayment ofborrowings. Also contract liabilities decreased by ¥5,377 million due to the deconsolidation of Benefit One andaccounts payable-trade decreased by ¥4,003 million, etc.
Net Assets
Net assets as of May 31, 2024, amounted to ¥154,661 million, an increase of ¥83,037 million or 115.9%,
compared with May 31, 2023. This was mainly attributable to an increase of ¥94,507 million in retained earnings
due to net income attributable to owners of the parent of 95,891 million yen, and noncontrolling interests
decreased by ¥11,451 million as a result of the deconsolidation of Benefit One.
As a result of the above, the equity ratio as of May 31, 2024 was 49.3% (19.6% at the end of the previous
fiscal year). Total assets, after deducting “cash and deposits” associated with “deposits received” forcommissioned projects, amounted to ¥246,115 million (¥200,634 million at the end of the previous fiscal year),resulting in an equity ratio of 60.3% (26.9% at the end of the previous fiscal year).
(3) Summary of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents (hereafter “net cash”) in FY2023 increased by ¥89,127 million, compared with
May 31, 2023, to ¥137,047 million. “Net cash” does not include “cash and deposits” corresponding totemporary “deposits received” from customers related to contract projects.
Cash Flows from Operating Activities
Net cash provided by operating activities increased by ¥1,435 million, compared with the previous fiscal year,to ¥7,397 million (an increase of ¥5,961 million in the previous fiscal year).
Major cash inflows included profit before income taxes totaling ¥106,251 million (¥16,766 million in theprevious fiscal year), depreciation and amortization totaling ¥5,569 million (¥5,126 million in the previous
fiscal year), and impairment loss totaling ¥10,811 million (none occurred in the previous fiscal year).
The cash flow from the sale of shares of Benefit One is included in the cash flow from investing activities, andthe gain on sale of shares of subsidiaries and affiliates of ¥112,040 million is deducted from the cash flow fromoperating activities.

― 11 ―Cash Flows from Investing Activities
Net cash used in investing activities increased by ¥106,754 million, compared with the previous fiscal year, to¥94,252 million (a decrease of ¥12,502 million in the previous fiscal year).
Major cash inflows was mainly due to proceeds of ¥115,228 million (none occurred in the previous fiscal
year) from the sale of shares of a subsidiary resulting in a change in the scope of consolidation, as a result of thesale of shares of Benefit One.
Major cash outflows was mainly due to the purchase of property, plant and equipment of ¥15,244 million (¥9,029 million in the previous fiscal year) for the opening of commercial facilities in the Awaji Island Regional
Revitalizaion Solutions project and the construction of new business facilities in the corporate segment, and thepurchase of intangible assets of ¥ 4,905 million (¥ 4,591 million in the previous fiscal year) for system capital
expenditures.
Cash Flows from Financing Activities
Net cash used in financing activities increased by ¥10,586 million, compared with the previous fiscal year, to¥12,879 million (a decrease of ¥2,292 million in the previous fiscal year).
Major cash inflows included proceeds from long-term loans payable totaling ¥2,500 million (¥15,727 million
in the previous fiscal year) for the purpose of securing long-term working capital and funds for capital
investment.
Major cash outflows included repayment of long-term loans payable totaling ¥10,325 million (¥10,339
million in the previous fiscal year), and dividends paid totaling ¥4,568 million (¥5,169 million in the previous
fiscal year).
(Reference) Cash Flow Benchmarks
FY201922.7%

FY202025.2%

FY202124.5%

FY202219.6%

FY202349.3%

Equity ratio
Equity ratio based on market
35.7%
49.0%
40.3%
24.7%
28.4%
capitalization
Ratio of interest-bearing debt
3.2
1.8
5.3
9.9
5.8
to cash flows (years)
Interest coverage ratio
57.9
64.5
35.4
15.9
16.6
Notes:
1. Equity ratio: Shareholders’equity / Total assets
Equity ratio based on market capitalization: Market capitalization / Total assets
Ratio of interest-bearing debt to cash flows: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payments
2. Each benchmark is calculated based on the consolidated financial statements.
3. Market capitalization is calculated by multiplying the period-end closing share price with the number of outstanding
shares at period-end (after deducting treasury shares).
4. Cash flows from operating activities are used in calculations for cash flows.
5. Interest-bearing debt includes all interest-bearing debt under liabilities recorded on the consolidated balance sheets.
6. The equity ratio after deduction of temporary "deposits" from customers related to contracted projects whose use by
the Group is restricted and the corresponding "cash and deposits" is as described in the previous section "(2) Summaryof Financial Position for the Current Period", and the equity ratio based on market value was 34.8% (33.9% at theend of the previous fiscal year).

― 12 ―

(4) Future Outlook
As we will soon mark the 50th anniversary of our founding in 1976, we are discussing the formulation of a
growth strategy for the next 50 years based on our unchanging corporate philosophy of "solving society's
problems".
In the fiscal year ending May 31, 2025, although the economic outlook remains uncertain due to global monetary
tightening and rising prices, demand for BPO services that support operational efficiency and rapid businessstartups is expected to remain strong in Japan against the backdrop of further advances in AI and other digitaltechnologies and a labor shortage. And with the Osaka-Kansai Expo to be held in 2025, we expect the number oftourists, including inbound tourists, to continue to increase, especially in the Kansai region.
The key strategies for the fiscal year ending May 31, 2025 are to (1) evolve X-Tech BPO and expand business inthe specialized BPO domain, (2) improve profitability of the Regional Revitalization Solutions business, and (3)create new businesses, thereby increasing productivity and profitability of existing businesses and creating new
businesses that will serve as pillars of our business over the medium to long term.
In addition, the Company's business portfolio and earnings structure changed during the period ending May
31, 2025 due to the sale of shares of its consolidated subsidiary, Benefit One Inc. during the period under review.
As a result, the Company has changed the names and composition of some of its segments from the fiscal year
ending May 31, 2025.
Based on the above, the Company projects that its consolidated net sales for the fiscal year ending May 31, 2025
will be ¥330,000 million (down 7.5% from the current fiscal year). However, excluding the impact of the sale ofshares of Benefit One Inc., the Company plans a 3.7% increase in net sales. In terms of profit, we expect operating
profit of ¥5,000 million (down 26.4% year-on-year) and ordinary profit of ¥5,000 million (down 30.1%
year-on-year), as the Osaka-Kansai Expo will open in April 2025 and some pavilion-related expenses and operating
costs will be incurred in connection with the exhibition. Since extraordinary profit from the sale of shares insubsidiaries and associates were posted largely in the current period, net profit attributable to shareholders of theparent company is planned to be ¥1,300 million (down 98.6% year-on-year).
Consolidated Business Results Forecast(Millions of yen)

356,733
6,794
7,152

FY2024(Forecast)
330,000
5,000
5,000

95,8911,300

FY2023
Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent(Reference) Comparison excluding the outsourcing segment (Benefit One Inc.)
FY2024FY2023(Forecast)
Net sales
318,301
330,000
Operating profit
(821)
5,000

― 13 ―

YoY(7.5) %
(26.4) %(30.1) %(98.6) %

YoY
3.7%
―

Forecasts by Segment
Effective from the fiscal year ending May 31, 2025, the Company has partially changed the composition of its
reportable segments, excluding the "Outsourcing" segment that existed in the fiscal year ended May 31, 2024. The
figures for the fiscal year ended May 31, 2024 have been restated to reflect the new segment classifications.
Consolidated Net Sales by Segment(Millions of yen)

FY2023(Reference)
297,715

FY2024(Forecast)
306,000

BPO Solutions (Contracting)147,579

150,000

1.6 %Expert Solutions (Temporary staffing)

137,082

141,500

3.2 %

13,054
11,024
7,792
6,610(4,841)
318,301

14,50012,5008,400
7,700(4,600)330,000

11.1 %
13.4 %
7.8 %
16.5 %―
3.7 %FY2023(Reference)
15,625

FY2024(Forecast)
18,500

11,582

14,00020.9 %

Career Solutions (Placement / Recruiting, Outplacement)
Global Solutions
Life Solutions

4,042
270
128

4,500
800
300

Regional Revitalization and Tourism Solutions(2,671)(500)

11.3 %
195.7 %
133.5 %―

Eliminations and Corporate(14,174)(14,100)

(821)

5,000

HR Solutions

Career Solutions (Placement / Recruiting, Outplacement)
Global Solutions
Life Solutions
Regional Revitalization and Tourism Solutions
Eliminations and Corporate
Total
Consolidated Operating Profit (Loss) by Segment

YoY
2.8 %

(Millions of yen)

HR Solutions
BPO Solutions (Contracting)Expert Solutions (Temporary staffing)

Total

YoY
18.4 %――*The "HR Consulting, Education/Training, and Other" has been eliminated from the fiscal year ending May 31,
2025, and the subject businesses have been incorporated into the "BPO Solutions" and "Expert Solutions"segments. "Outsourcing" was discontinued due to the sale of shares of the subject subsidiary. In addition, Thesegment names have been changed from "BPO Services" to "BPO Solutions," "Expert Services" to "Expert
Solutions," "Global Sourcing" to "Global Solutions," and "Regional Revitalization Solutions" to "Regional
Revitalization and Tourism Solutions.
*Figures for the fiscal year ending May 31, 2024 have been restated to reflect the new segment classifications.
The "Outsourcing" segment is excluded.

― 14 ―

(5) Policy on the Appropriation of Profits and Dividends for FY2023 and FY2024
In order to play a sufficient role as a company with sustainable development, we are striving to strengthen ourmanagement base and profitability while securing funds for growth, such as new business investment and capital
investment, and to increase shareholder returns by enhancing corporate value. In line with our basic policy ofreturning profits to shareholders in line with business performance, we have been targeting a consolidated dividend
payout ratio of 30%, but in order to further enhance returns to shareholders, we will strive to maintain continuousand stable dividends by raising the consolidated dividend payout ratio to 40% from the fiscal year ending May 31,2025.
As announced in the "Resolution to Pay Special Dividend and Revision of Dividend Forecast for the Fiscal YearEnding May, 2024" dated April 12, 2024, the Company resolved to pay a special dividend of 60 yen per share foreach of the five fiscal years from the fiscal year ending May 31, 2024 to the fiscal year ending May 31, 2028 as ameasure to increase shareholder returns following the sale of shares of consolidated subsidiaries during the fiscal
year ended May 31, 2024.
Therefore, the year-end dividend for the current fiscal year is 75 yen per share, consisting of an ordinary
dividend of 15 yen and a special dividend of 60 yen per share.
With regard to dividends for the next fiscal year, we expect a significant decrease in profit due to the sale ofshares of a consolidated subsidiary in the previous fiscal year. However, in accordance with our dividend policy ,we plan to pay a regular dividend of 15 yen per share, the same amount as the current fiscal year, plus a special
dividend of 60 yen per share, for a total dividend of 75 yen per share.

2. Basic Consideration on Selecting our Accounting Standard
The Group has adopted Japanese GAAP as our accounting standard, considering the period comparability of theconsolidated financial statements and the comparability between companies. Regarding the application for IFRS
(International Financial Reporting Standards), we will proceed with consideration based on domestic andinternational situations.

― 15 ―

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Millions of yen)

As of May 31, 2023
ASSETS
Current assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Contract assets
Inventories
Income taxes refund receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant, and equipment
Intangible assets
Goodwill
SoftwareLeased assets
Customer assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance cost
Total deferred assets
Total assets― 16 ―

As of May 31, 2024

123,06773
40,973
11,5773,365
2,693
12,643(121)
194,275

192,281
182
33,594
9,678
1,781
1,231
4,951
(63)
243,637

23,179(7,798)15,381
4,894(1,083)
3,810
8,063
2,306
(1,171)
1,134
3,353
8,109
(6,127)
1,981
33,725

16,767(7,924)8,843
2,214(1,221)
993
8,021
1,521
(634)
886
15,331
7,157(5,766)
1,391
35,467

7,353
10,027
7
9,067
126
26,582

842
3,121
18
921
107
5,011

6,586
34
2,245
2,909
7,773
1,248
(7)
20,79181,099

3,288
33
3,165
1,640
7,328
1,417
(10)
16,862
57,341130130275,504

111
111
301,090

(Millions of yen)

As of May 31, 2023
LIABILITIESCurrent liabilities
Accounts payable-trade
Short-term borrowings
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Deposit received
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Provision for share awards for directors (and otherofficers)
Allowance for stock benefit for employee
Retirement benefit liability
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets― 17 ―

As of May 31, 2024

7,427
10,296383
10,33417,009
3,061
4,482
7,488
78,690
4,667

3,423
9,263
342
6,333
16,756
1,138
3,033
2,111
56,374
4,205

26

13

17
897
144,783

98
793
103,889

3,224
43,505924

2,630
29,427
678

600

418

566
2,409
2,366
2,554
2,945
59,096
203,880

281
2,407
1,320
2,326
3,048
42,539146,428

5,000
17,09432,941(2,378)52,6585,000
17,495
127,449(2,685)147,260

853
348
138
1,340
2
17,622
71,624
275,504

121
604
501
1,228
2
6,171
154,661
301,090

(2) Consolidated Statements of Income & Comprehensive Income
Consolidated Statements of Income(Millions of yen)

FY2022

FY2023

Net sales

372,579

356,733

Cost of sales

281,053

271,907

Gross profit

91,52584,825

Selling, general and administrative expenses

77,14878,030Operating profit

14,377

6,794

Non-operating income
Interest income
Share of profit of entities accounted for using equity
methodSponsorship money income

41

43

153

131

100

83

Subsidy income

968

523

Other

525

363

1,788

1,145

Interest expenses

393

439

Commitment fee

60

64

Other

344

283

Total non-operating expenses

798

787

15,366

7,152

Gain on sales of non-current assets

33

2Gain on sales of investment securities

1,267

0

Gain on sale of shares of subsidiaries and associates

17

112,040

Gain on change in equity

213

17

Total extraordinary profit

1,530

112,060

Loss on sales and retirement of non-current assets

131

299

Impairment loss－

10,811

Loss on valuation of investment securities－

685

Costs related on sales of subsidiaries and associates

－

1,164

Total extraordinary loss

131

12,961

Profit before income taxes

16,766106,251

Income taxes-current

7,508

4,926

Income taxes-deferred(1,450)

1,886

Income taxes

6,058

6,813

Profit10,70799,438

Profit attributable to non-controlling interests

4,608

3,547

Profit attributable to owners of parent

6,099

95,891

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary profit

Extraordinary loss

― 18 ―

Consolidated Statements of Comprehensive Income(Millions of yen)

FY2022
ProfitFY2023
10,70799,438Valuation difference on available-for-sale securities

(534)

(725)

Foreign currency translation adjustment

162

274

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

132

364

0

0

(239)

(86)

10,46899,351

6,099

95,779

4,368

3,572

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable tonon-controlling interests― 19 ―

(3) Consolidated Statements of Changes in Shareholders ’Equity
FY2022 (For the fiscal year ended May 31, 2023)(Millions of yen)
Shareholders’equity
Share capital
Balance at beginning of period

Retained
Earnings

Capital surplus

5,000

17,786

Total shareholders’equityTreasury shares

28,238(2,378)48,646

Changes during period
Dividends of surplus(1,396)(1,396)

Profit attributable to owners of parent

6,099

6,099

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares by stock
payment trust

00Change in ownership interest ofparent due to transactions with
non-controlling interests

(688)

(688)

Capital increase of consolidated
subsidiaries

(3)

(3)

Net changes in items other thanshareholders’equity

－
－

(692)

4,703

0

4,011

5,000

17,09432,941(2,378)52,658

Total changes during period
Balance at end of period

Total accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

1,131

197

Total
Share
Remeasurements accumulated acquisitionof definedotherrightsbenefit plans comprehensive
income
10

1,339

4

Noncontrollinginterests

Total net
assets17,155

67,146

Changes during the period
Dividends of surplus－(1,396)

Profit attributable to owners of parent

－

6,099

Purchase of treasury shares－(0)

Disposal of treasury shares by stock
payment trust－

0

Change in ownership interest of parent
due to transactions with non-controllinginterests

－

(688)

Capital increase of consolidated
subsidiaries－(3)

Net changes in items other thanshareholders’equity

(278)

150

127

0

(1)

467

465

Total changes during period

(278)

150

127

0

(1)

467

4,477

Balance at end of period

853

348

138

1,340

2

17,622

71,624― 20 ―

FY2023 (For the fiscal year ended May 31, 2024)(Millions of yen)
Shareholders’equity
Share capital
Balance at beginning of period

Retained
Earnings

Capital surplus

5,000

17,094

Total shareholders’equityTreasury shares

32,941(2,378)52,658Changes during period
Dividends of surplus(1,396)(1,396)

Profit attributable to owners of parent

95,891

95,891

Purchase of treasury shares
Disposal of treasury shares
Treasury shares possession of stock
ownership plan trust
Disposal of treasury shares by stock
payment trust
Change in scope of consolidation

318

(0)

(0)

279

597

(597)

(597)

11

11

12

Change in ownership interest of parent
due to transactions with non-controllingshareholders
Capital increase of consolidated
subsidiaries
Net changes in items other thanshareholders’equity

12

82

82

(0)

(0)
－

－

401

94,507(306)

94,601

5,000

17,495

127,449(2,685)147,260

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasurements accumulated acquisitiondifference on
currencyof definedotherrightsavailable-for-sale translation
benefit plans comprehensive
securities
adjustment
incomeBalance at beginning of period

853

348

138

1,340

2

Noncontrollinginterests

17,622

Total net
assets71,624

Changes during the period
Dividends of surplus－(1,396)

Profit attributable to owners of parent－

95,891

Purchase of treasury shares－(0)

Disposal of treasury shares
Treasury stock possession of treasury
shares by stock benefit trust
Disposal of treasury shares by stock
benefit trust

－

597

－

(597)

－

11

Change in scope of consolidation

－

12

－

82

－

(0)

Change in treasury shares of parent
arising from transactions with
non-controlling shareholders
Capital increase of consolidated
subsidiaries
Net changes in items other thanshareholders’equity

(731)

255

363

Total changes during period

(731)

255

Balance at end of period

121

604

― 21 ―(112)(0)(11,451)(11,564)

363

(112)

(0)

(11,451)

83,037

501

1,228

2

6,171

154,661(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2022

FY2023

Cash flows from operating activities
Profit before income taxes

16,766106,251

Depreciation

5,126

5,569

Impairment loss－

10,811

Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses

721

750

62

53

(96)

(479)

Increase (decrease) in retirement benefit liability

(0)

(4)

Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for share awards for
directors (and other officers)
Increase (decrease) in provision for employees stock
ownership plan trust
Interest and dividends income

(120)

(369)

2

－

(5)

(25)

(82)

(85)

Interest expenses
Subsidy income
Sponsorship income
Share of loss (profit) of entities accounted for using
equity method
Costs related on sales of shares of subsidiaries andassociates
Loss (gain) on sales and retirement of non-current
assetsLoss (gain) on sales of investment securities

393
(968)
(100)

439
(523)
(83)

(153)

(131)

－

1,164

97

297

(1,267)

(0)

－

685

(17)

(112,040)(1,188)

4,177

199

(567)

Decrease (increase) in other assets(3,023)(1,267)

Increase (decrease) in trade payable

(901)

(932)

39

(960)

Increase (decrease) in deposits received

1,061(1,281)

Increase (decrease) in other liabilities

1,717

21

Other, net

(161)

(2)

Subtotal

18,102

11,46898

103

Interest paid

(374)

(445)

Subsidy received

968

723

Support money received

100

83

(12,932)(4,535)

5,961

7,397

Loss (gain) on valuation of investment securities
Loss(gain) on sales of shares of subsidiaries andassociates
Decrease (increase) in accounts receivable-trade, andcontract assets
Decrease (increase) in inventories

Increase (decrease) in accrued consumption taxes

Interest and dividends received

Income taxes paid
Net cash provided by 8used in) operating activities― 22 ―

(Millions of yen)

FY2022

FY2023

Cash flows from investment activities
Decrease (increase) in time deposits

(21)

60

(9,029)(15,244)99

5(4,591)(4,905)Purchase of investment securities

(595)

(417)

Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation
Loans advances

1,790

0

(1,268)－－115,228

(10)

(6)

20

8

(638)

(815)

1,962

642

Payments for asset retirement obligation

(79)

(49)

Payments for acquisition of business

－

(207)

Purchase of property, plant, and equipment
Proceeds from sales of property, plant, andequipment
Purchase of intangible assets

Proceeds from collection of loans receivable
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits

Other, net
Net cash provided by (used in) used in investment
activities
Cash flows from financing activities

(140)

(47)

(12,502)

94,252

Net increase (decrease) in short-term borrowings

(14)

153

Proceeds from long-term borrowings

15,727

2,500

Repayments of long-term borrowings(10,339)(10,325)

Repayments of finance lease liabilities

(448)

(446)

Redemption of bonds
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares

(586)

(586)

201

559

(0)

(597)

Proceeds from disposal of treasury shares－

597

Purchase of treasury shares of subsidiaries(1,506)(0)

Purchase of shares of subsidiaries not resulting inchange in scope of consolidation

(162)

(164)

Proceeds from sale of shares of subsidiaries not
resulting in change in scope of consolidation

5－

Dividends paid

(1,392)(1,392)

Dividends paid to non-controlling interests(3,776)(3,176)(2,292)(12,879)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

174

298

(8,658)89,068Cash and cash equivalents at beginning of period

56,57847,919－59

47,919137,047

Increase in cash and cash equivalents resulting from
inclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period― 23 ―

(5) Note to Consolidated Financial Statements(Notes to Going Concern Assumption)
None(Important Items Considered Fundamental to the Preparation of Consolidated Financial Statements)
1. Scope of Consolidation
1) Consolidated subsidiaries
a. No. of consolidated subsidiaries:
59 companies
b. Major consolidated subsidiaries:
Pasona Inc.
Bewith, Inc.
Pasona Nihon Somubu Co., Ltd. *1
Nijigennomori Inc.
c. New consolidated subsidiaries:
3 companies
Establishment
Japanese Kosyukura Inc.
TECHNORESEARCH CO., LTD.
Change from non-consolidated subsidiary Pasona Force Inc.*2
d. Exclusion from the scope of consolidation: 13 companies
CAPLAN Corporation *3
Pasona Japan Creative University Inc. *4
Benefit One Deutchland Gmbh *5
Benefit One Inc. and its subsidiaries *6*1 The trade name was changed from Pasona Panasonic Business Service Co., Ltd.
*2 Transferred from a non-consolidated subsidiary due to increase in materiality.
*3 Merged with Pasona HR Solution Inc., a consolidated subsidiary of the Company, and was dissolved*4. Merged with Pasona HR HUB Inc., a consolidated subsidiary of the Company, and was dissolved*5.Excluded from the scope of consolidation due to completion of liquidation*6 Benefit One Inc. and its nine subsidiaries were excluded from the scope of consolidation due to thesale of all shares of Benefit One Inc.
2) Non-consolidated subsidiarya. No. of non-consolidated subsidiaries:
4 companies
b. Major non-consolidated subsidiaries:
Tangokura Inc.
c. Reasons for exclusion from the scope of consolidation:
The assets, sales, net profit & loss (the amount equivalent to equity shareholdings), and retained earnings(the amount equivalent to equity shareholdings) are considered insignificant and deemed to have immaterial
impact on the consolidated financial statements. As a result, these non-consolidated subsidiaries have been
excluded from the scope of consolidation.
2. Application of the Equity Method
1) Affiliated companies that are accounted for by the equity method
a. No. of affiliated companies that are accounted for by the equity method
b. Major affiliated companies that are accounted for by the equity method
e-staffing Co., Ltd.
National Examination Center Inc.
circlace Inc.
c. New affiliated companies that are accounted for by the equity method
Share acquisition
Shadow Consulting Inc. *1― 24 ―

5 companies

1 company

d. Exclusion from affiliated companies that are accounted for by the equity method
1 company
Trust Co., Ltd. *2*1.The Company's subsidiary, Bewith, Inc. acquired new shares.
*2.As a result of the sale of all shares of Benefit One Inc., its affiliated company Trust Co., Ltd. were
excluded from the scope of application of the equity method.
2) Non-consolidated subsidiaries and affiliated companies not accounted for by the equity method
a. No. of non-consolidated subsidiaries and affiliated companies not accounted for by the equity method:
5 companies
b. Major non-consolidated subsidiaries and affiliated companies not accounted for by the equity method
Tangokura Inc.
c. Reasons for exclusion from the scope of the equity method
Non-consolidated subsidiaries and affiliated companies not accounted for by the equity method were
excluded from the scope of consolidation, as their net profit and loss (the amount equivalent to equity
shareholdings) and retained earnings (the amount equivalent to equity shareholdings) had an immaterial
impact on the Group and as their overall importance to the Group’s performance was limited.
(Change in Presentation Method)[Notes to Consolidated Statements of Income]"Real estate rent" and "Rent expense on real estate," which were separately presented in the consolidated
statements of income in the previous fiscal year, are included in "Other" under "Non-operating income" and"Other" under "Non-operating expenses," respectively, in the current fiscal year, because the amounts are
insignificant.
In addition, "sponsorship money income," which was included in "other" under "non-operating income" in theprevious fiscal year, is presented as a separate line item in the current fiscal year due to its increased importance interms of amount.
The consolidated financial statements for the previous fiscal year have been reclassified to reflect these methodsof presentation.
As a result of the above, "Real estate rent" of ¥185 million and "Other" of ¥440 million in "Non-operating
income" in the consolidated statement of income for the previous fiscal year have been reclassified as "Sponsorshipmoney income" of ¥100 million and "Other" of ¥525 million, and "Rent expense on real estate" of ¥141 million and"Other" of ¥203 million in "Non-operating expenses" have been reclassified as "Other" of ¥344 million.
[Consolidated cash flows]"Gain (loss) on sale of shares of subsidiaries and associates," which was included in "Other" under "Net cash
provided by (used in) operating activities" in the previous fiscal year, is presented as a separate line item in thecurrent fiscal year because it has become significant in terms of amount.
In addition, "sponsorship income" and "support money received," which were included in "net cash provided by(used in) operating activities" in the consolidated statements of cash flows in the previous fiscal year, are separately
presented in the current fiscal year due to their increased monetary importance.
The consolidated statements of cash flows for the previous fiscal year have been reclassified to reflect thesepresentation methods.
As a result of the above, in the consolidated statements of cash flows for the previous fiscal year, "Other" of¥(178) million in "Net cash provided by (used in) operating activities" was reclassified as "Loss on sales of sharesof subsidiaries and associates" of ¥(17) million and "Other" of ¥(161) million, and "Sponsorship income" of ¥(100)million and "Support money received" of ¥(100) million were presented.

― 25 ―

(Business Combinations, etc.)
Business Divestitures[Sale of shares of a subsidiary]
On February 8, 2024, the Board of Directors of the Company resolved to enter into an agreement with Dai-ichi
Life Holdings Company, Inc. (the "Tender Offeror") that the Company will not tender all of its shares in
the Benefit One Inc.(the "Target Company", which is a consolidated subsidiary of the Company and belongs tothe outsourcing segment), in the tender offer (the "Tender Offer") to be conducted by the Offeror for thecommon shares of the Target Company. After the consummation of the Tender Offer, the Target Company willconduct a reverse stock split in which the Tender Offeror and the Company will be the only shareholders andthen conduct a share repurchase (the "Share Repurchase"), whereby the Company will sell all of the shares of theTarget Company it holds at that time, etc. Since the share transfer was completed on May 23, 2024, the execution
date of this share buyback, the Target and its subsidiaries and others were excluded from the Company's scope of
consolidation as of the end of the current fiscal year.
(1) Outline of Business Divestiture
1. Name of the company to be divested
Dai-ichi Life Holdings Company, Inc.
2. Name and Business of the Separated Subsidiary
Name of subsidiary:
Description of business:

Benefit One Inc.
Employee benefit business, personal business, CRM (Customer
Relationship Management) business, Incentive Business, Health Care
Business, Purchasing, Reimbursement Agency Business, Payment
Business

3. Main Reasons for Business Divestiture
The Target Company belongs to the outsourcing segment of the Company and generates synergies in sales
activities with the temporary staffing, placement and BPO services provided by the Group, and the Company
has held shares of the Target Company for the purpose of enhancing the medium- to long-term corporate
value of the Company and the Target Company. On the other hand, in the course for the Target Company,
including the transfer of shares to a new partner, with a view to further increasing its corporate value. The
Company received a proposal from the Offeror that it plans to commence the Tender Offer. After careful
examination of the proposal received and the content of the public announcement, the Company concluded
that the Offeror's proposal was economically rational and would contribute to improving the Company's
corporate value, and decided to transfer the shares.
4. Date of Business Separation
May 23, 2024
5. Other matters related to the outline of the transaction, including legal form
Share transfer for which the consideration to be received is cash or other assets only

― 26 ―

(2) Summary of accounting procedures performed
ⅰ. Amount of profit (loss) on transfer
Gain on sales of shares of subsidiaries and associates¥112,040 million
ⅱ. Appropriate book value of assets and liabilities related to the transferred business and their major
breakdown
Current assets¥24,142 million
Fixed assets¥26,444 million
Total assets¥50,587 million
Current liabilities¥16,870 million
Long-term liabilities¥9,385 million
Total liabilities¥26,256 million
ⅲ. Accounting treatment
The difference between the consolidated book value of the transferred shares and the sale price isrecorded as "Gain on sales of shares of subsidiaries and associates" in extraordinary profit.
(3) Reportable segments in which the divested business was included
Outsourcing(4) Estimated amount of profit/loss related to the separated business recorded in the consolidated statement ofincome for the current fiscal year
Net sales¥38,962 million

Operating profit¥7,615 million― 27 ―

(Segment Information, etc.)[Segment Information]
1. Overview of reportable segments(1) Method of determining reportable segments
The business segments reported by the Group are the business units for which the Group is able to obtainrespective financial information separately in order for the Board of Directors to conduct periodic
investigations to determine the distribution of management resources and evaluate their business results.
The Group’s principal business activities are comprehensive human resource-related support services.
Accordingly, the Group has designated “Expert Services (Temporary staffing), BPO Services (Contracting),
Others,” “Career
Solutions(Placement/Recruiting,
Outplacement),” “Outsourcing,” “Life
Solutions,” and “Regional Revitalization Solutions” as reporting segments. The Group as a holding
company, pursues the formulation of strategies for the Group management and supports operation execution,
governance of management, and the proper allocation of management resources, as well as developing new
businesses related to job creation.
Benefit one Inc. and its subsidiaries were excluded from the scope of consolidation as of the end of thecurrent fiscal year due to the sale of the Company's shares in Benefit One Inc., which was in charge of"Outsourcing".
(2) Matters related to changes in reportable segments, etc.
Following the reorganization of subsidiaries in the third quarter of the fiscal year, the Company reviewed
and made changes to the information applicable to "BPO services" and "HR consulting, education andtraining, and others" in the revenue decomposition information, in light of the organizational structure andbusiness activities after the reorganization. In addition, the decomposition information of revenue for theprevious fiscal year is also presented in the amount after the change.
2. Method of computing net sales, profit (loss), assets, liabilities, and other items by reporting segment
The accounting treatment method for the Group’s reporting segments is generally same as the consolidated
financial statements.
Also, segment profit is based on operating profit.
The prices of intersegment transactions and transfers are determined by price negotiations based on theGroup’s submission of preferred prices after taking market conditions into account.

― 28 ―

3. Information regarding net sales, profit (loss), assets, liabilities, and other items by reporting segment
FY2022 (For the fiscal year ended May 31, 2023)(Millions of yen)
Reporting segments
HR Solutions
ExpertServices,
BPO
Services,
Others

CareerSolutionsOutsourcing

Regional
Life
Revitalization
Solutions
Solutions

Total

Figures in
Adjustment consolidated(Note 1)statements
of incomeNet Sales
Expert Services
146,655－－－－ 146,655－ 146,655－ 139,669
BPO Services
139,669－－－－ 139,669
HR Consulting, Education
7,185
－
－
－
－
7,185
－
7,185
& Training, Other－
Global Sourcing
9,654
－
－
－
9,654
－
9,654
－
Career Solutions－
13,893－－
13,893－
13,893－
Outsourcing－－
41,779－41,779－41,779－Life Solutions
－
－
－
7,686
7,686
－
7,686
Regional Revitalization
－
－
－
－
6,055
6,055
－
6,055
Solutions
Revenue from contracts
303,164
13,893
41,7797,686
6,055 372,579－ 372,579
with customers－
Other revenue
－
－
－
－
－
－
－
Net sales to outside
303,164
13,893
41,7797,686
6,055 372,579－ 372,579
customers
Intersegment sales and
4,522
29
597
514
875
6,539
(6,539)－transfers
Total
307,687
13,92342,3768,200
6,931 379,119(6,539) 372,579
Segment profit (loss)
15,132
4,089
10,487364(2,877) 27,196 (12,819) 14,377
Segment assets
157,934
21,68053,9402,564
17,803 253,922
21,582 275,504
Other items
Depreciation and
1,166
140
1,674
51
1,160
4,194
932
5,126
Amortization
Amortization of
426
－
294
－
－
721
－
721
Goodwill
Impairment losses
－
－
－
－
－
－
－
－
Increase in tangible and
3,746
230
3,767
144
2,534
10,422
5,918
16,341
intangible fixed assets
Notes:
1. The following are included in the adjustment item.
(1) Adjustment of segment loss totaling ¥(12,819) million includes Group management costs relating to theCompany and incubation cost of our new business totaling ¥(13,074) million, as well as intersegment sales
and transfers totaling ¥255 million.
(2) Adjustment of segment assets totaling ¥21,582 million includes the Company’s cash and deposits and assets
relating to Group management totaling ¥54,816 million, as well as intersegment sales and transfers totaling¥(33,234) million.
(3) Adjustment of depreciation and amortization totaling ¥932 million is mainly comprised of depreciation andamortization of assets relating to Group management totaling ¥982 million, as well as intersegment sales andtransfers totaling ¥(50) million.
(4) Adjustment of increase in tangible and intangible fixed assets totaling ¥5,918 million is mainly comprised of
an increase of assets relating to Group management and headquarters functions totaling ¥6,037 million, as wellas intersegment sales and transfers totaling ¥(119) million.
2. Segment profit is adjusted with operating profit under consolidated statements of income.

― 29 ―

FY2023 (For the fiscal year ended May 31, 2024)(Millions of yen)
Reporting segments
HR Solutions
ExpertServices,
BPO
Services,
Others

CareerSolutionsOutsourcing

Regional
Life
Revitalization
Solutions
Solutions

Total

Figures in
Adjustment consolidated(Note 1)statements
of incomeNet Sales
Expert Services
133,964－－－－ 133,964－ 133,964－ 140,144
BPO Services
140,144－－－－ 140,144HR
Consulting, Education &
7,476
－
－
－
－
7,476
－
7,476
Training,Other－
Global Sourcing
10,791－－－
10,791－
10,791－
Career Solutions－
13,031－－
13,031－
13,031－
Outsourcing－－
38,431－
38,431－
38,431－
Life Solutions
－
－
－
7,229
7,229
－
7,229
Regional Revitalization
－
－
－
－
5,663
5,663
－
5,663
Solutions
Revenue from contracts
292,376
13,031
38,431
7,229
5,663 356,733－ 356,733
with customers－
Other revenue
－
－
－
－
－
－
－
Net sales to outside
292,376
13,031
38,431
7,229
5,663 356,733－ 356,733
customers
Intersegment sales and
4,709
22
530
563
559
6,385
(6,385)－transfers
Total
297,085
13,05438,962
7,792
6,223 363,118(6,385) 356,733
Segment profit (loss)
11,770
4,042
7,615
128
(2,588) 20,968 (14,174)
6,794
Segment assets
139,606
22,030－2,208
13,648 177,492 123,597 301,090
Other items
Depreciation and
1,182
106
2,249
59
1,171
4,768
801
5,569
Amortization
Amortization of
455
－
294
－
0
750
－
750
Goodwill
Impairment losses
834
－
－
－
9,977
10,811－
10,811
Increase in tangible and
2,138
127
3,019
15
6,948
12,2498,231
20,480intangible fixed assets
Notes:
1. The following are included in the adjustment item.
(1) Adjustment of segment profit totaling ¥(14,174) million includes Group management costs relating to theCompany and incubation cost of our new business totaling ¥(14,228) million, as well as intersegment sales
and transfers totaling ¥53 million.
(2) Adjustment of segment assets totaling ¥123,597 million includes the Company’s cash and deposits and assets
relating to Group management totaling ¥159,144 million, as well as intersegment sales and transfers totaling¥(35,546) million.
(3) Adjustment of depreciation and amortization totaling ¥801 million is mainly comprised of depreciation andamortization of assets relating to Group management.
(4) Adjustment of increase in tangible and intangible fixed assets totaling ¥8,231 million is mainly comprised of
an increase of assets relating to Group management and headquarters functions totaling ¥8,240 million, as wellas intersegment sales and transfers totaling ¥(8) million.
2. Segment profit is adjusted with operating profit under consolidated statements of income.
3 Benefit One Inc. and its subsidiaries, a consolidated subsidiary of the Company that was responsible foroutsourcing during the current consolidated fiscal year, were excluded from the scope of consolidation. As aresult, no segment assets were recorded at the end of the current consolidated fiscal year.

― 30 ―

(additional information)
Change in segment classification from the following fiscal year
In the current fiscal year, the Group's reportable segments were divided into "Expert Services, BPO Services,
etc.," "Career Solutions," "Outsourcing," "Life Solutions," and "Regional Revitalization Solutions," but some ofthese segments were reclassified in the following fiscal year, The Group's reportable segments were "BPO
Solutions, Expert Solutions," "Career Solutions," "Global Solutions," "Life Solutions," and "Regional Revitalization
and Tourism Solutions".
Benefit One Inc., a consolidated subsidiary of the Company, which was responsible for outsourcing in the current
consolidated fiscal year, and its subsidiaries, etc., were excluded from the scope of consolidation; therefore, there isno outsourcing from the following consolidated fiscal year.
Information on sales and profit or loss by reportable segment for the current fiscal year based on the segmentclassification after the change is as follows.
FY2023 (For the fiscal year ended May 31, 2024)(Millions of yen)
Reporting segments
HR Solutions
BPO
Solutions,
ExpertSolutions

CareerSolutionsGlobalSolutionsRegional
Life
Revitalization
Outsourcing
Solutions and Tourism
Solutions

Total

Figures in
Adjustment consolidated(Note 1) statements
of incomeNet Sales
BPO Solutions
145,059－－－－－ 145,059－ 145,059－
Expert Solutions
136,501－－－－
136,501－ 136,501
Career Solutions－ 13,031－－－－ 13,031－ 13,031－ 10,791
Global Solutions－－ 10,791－－－ 10,791－
Life Solutions
－
－
－
7,229
－
7,229
－
7,229
Regional－
Revitalization and
－
－
－
－
5,688
5,688
－
5,688
Tourism Solutions
Outsourcing－－－－－ 38,431 38,431－ 38,431
Revenue from contracts
281,560 13,031 10,791
7,229
5,688 38,431 356,733－ 356,733
with customers－
Other revenue
－
－
－
－
－
－
－
－
Net sales to outside
281,560 13,031 10,791
7,229
5,688 38,431 356,733－ 356,733
customers
Intersegment sales and
3,101
22
233
563
922
530
5,372 (5,372)－
transfers
Total
284,661 13,054 11,024
7,792
6,610 38,962 362,106 (5,372) 356,733
Segment profit (loss)
11,5824,042
270
128 (2,671)
7,615 20,968 (14,174)
6,794
Notes:
1.Adjustment of segment profit totaling ¥(14,174) million includes Group management costs relating to theCompany and incubation cost of our new business totaling ¥(14,228) million, as well as intersegment sales andtransfers totaling ¥53 million
2.Segment profit is adjusted with operating profit under consolidated statements of income[Related information]
FY2022 (For the fiscal year ended May 31, 2023
1. Information by product and service
Nothing is stated herein as similar information is disclosed in segment information.
2. Information on geographic areas(1) Net sales― 31 ―

Since the percentage of net sales in Japan exceeds 90%, information on geographic areas is omitted in thisreport.
(2) Property, plants, and equipment
Because the percentage of total property, plants, and equipment located in Japan exceeds 90%, information
on geographic areas is omitted in this report.
3. Information by major customer
No major customer is stated because no customer accounted for more than 10% of net sales.
FY2023 (For the fiscal year ended May 31, 2024
1. Information by product and service
Nothing is stated herein, as similar information is disclosed in segment information.
2. Information on geographic areas(1) Net sales
Because the percentage of net sales in Japan exceeds 90%, information on geographic areas is omitted inthis report.
(2) Property, plants, and equipment
Because the percentage of total property, plants, and equipment located in Japan exceeds 90%, information
on geographic areas is omitted in this report.
3. Information by major customer
No major customer is stated because no customer accounted for more than 10% of net sales.
[Information regarding Impairment Loss on fixed assets by reporting segment]
FY2022 (For the fiscal year ended May 31, 2023)
None
FY2023 (For the fiscal year ended May 31, 2024.)
Because an impairment loss on fixed assets has been already disclosed in the segment information, it is omitted
in this report.

― 32 ―

[Information regarding Unamortized Balance of Goodwill by reporting segment]
FY2022 (For the fiscal year ended May 31, 2023)(Millions of yen)
Reporting segments

Balance at the end of
the period

Expert Services,
BPO Services, Career Solutions
OthersLife Solutions

Regional
Revitalization
Solutions

Adjustment

Outsourcing

－

5,529

－

－

－

1,823

Total

7,353

FY2023 (For the fiscal year ended May 31, 2024)(Millions of yen)
Reporting segments

Balance at the end of
the period

Expert Services,
BPO Services, Career Solutions
OthersLife Solutions

Regional
Revitalization
Solutions

Adjustment

Outsourcing

－

－

－

－

－

842

Total

842

(Note) Benefit One Inc. and its subsidiaries, a consolidated subsidiary of the Company that was responsibleforoutsourcing during the current consolidated fiscal year, were excluded from the scope of consolidation. As
a result, there is no unamortized balance of goodwill as of the end of the current fiscal year.
[Information regarding Gain on Bargain Purchase by reporting segment]
FY2022 (For the fiscal year ended May 31, 2023)
None
FY2023 (For the fiscal year ended May 31, 2024)
None― 33 ―

(Per Share Information)(Yen)

FY2022
FY2023
Net assets per share
1,378.40
3,789.42
Net profit per share
155.702,447.56
Diluted net profit per share155.22
2,446.76(Notes)1. The Company’s shares in BBT and J-ESOP, which are reported as treasury shares under Shareholders’equity,
are not counted toward the number of treasury shares as of the period-end and the average number of shares
outstanding for the period, for the purpose of computing earnings and net assets per share.
The number of treasury shares deducted for calculation of net assets per share was 424,862 in FY2022 and
601,862 in FY2023, in terms of BBT, and was 297,514 in FY2022 and 464,274 in FY2023 in terms of J-ESOP(year-end basis). The number of treasury shares deducted for calculation of net profit per share was 424,862 in
FY2022 and 572,362 in FY2023, in terms of BBT, and was 297,664 in FY2022 and 441,470 in FY2023 in termsof J-ESOP (year-average basis).
2. The following shows the basis for calculating net profit per share and diluted net profit per share.
(Millions of yen)

Items
Profit attributable to owners of the parent
Amount not applicable to shareholders of common
stockProfit attributable to owners of the parent
applicable to common stock
Average number of shares for the period (shares)

FY2022

Diluted net profit per share
Adjustment to net profit attributable to owners of
the parent(Adjustment due to latent shares of consolidated
subsidiaries)
Overview of diluted shares excluded from thecalculation of net profit per share after adjustingfor diluted share because of lack of diluting effect

FY2023
6,099

95,891

―

―

6,099

95,891

39,174,636

39,178,295

(18)

(31)

((18))((31))――

3. The following shows the basis of calculating net assets per share.
(Millions of yen)

Items
Total net assets
Amount deducted from total net assets
Net assets applicable to common stock as of the
fiscal period-end
Number of common stock shares used to calculate
net assets per share (shares)(Important Subsequent Events)
None― 34 ―

As of May 31, 2023
71,624
17,625

As of May 31, 2024
154,661
6,173

53,998148,488

39,174,780

39,184,940