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
To whom it may concern,
Listed company name

Pasona Group Inc.

Listing stock exchange:

Tokyo Stock Exchange Prime Market

Securities code number:

2168

Representative:

Yasuyuki Nambu, Group CEO and President

For further information contact:

Yuko Nakase,
Senior Managing Executive Officer and CFO

Tel.

+81 3 6734 0200

Notice Regarding the Recording of Extraordinary Losses, etc.
and the Recording of Income Tax Adjustment

Pasona Group Inc. (the “Company”) announces that it has recorded extraordinary loss, etc. and income taxesdeferred (loss) for the fourth quarter of the fiscal year ending May 31, 2024 (From March 1, 2024 to May 31,2024), as described below.
1. Recording of extraordinary losses, etc.
(1) Recording of impairment loss (consolidated and non-consolidated)
As a result of reviewing future business plans of commercial facilities, etc., mainly in the Regional
Revitalization Solutions segment, based on the business environment and current performance trends, therecoverable amount of some fixed assets fell below the book value, and the Company recorded an
extraordinary loss of ¥10,811 million in the consolidated accounts and ¥4,727 million in the non-consolidated
accounts.
(2) Recording of loss on valuation of shares of subsidiaries and associates (non-consolidated)
As a result of the above impairment loss and other factors, the real value of the Company's holdings of sharesof subsidiaries and associates declined significantly, and a loss on valuation of shares of subsidiaries andassociates of ¥5,962 million was recorded as an extraordinary loss in the non-consolidated financial statements.
Since the loss on valuation of shares of subsidiaries and associates is eliminated in the consolidated financialstatements, there is no impact on consolidated profit and loss.
(3) Recording of provision of allowance for doubtful accounts (non-consolidated)
Due to the above impairment losses and other factors, a provision for allowance for doubtful accounts of¥3,264 million was recorded as a non-operating expense in the non-consolidated financial statements toprovide for allowance for doubtful accounts for loans to affiliates that have become insolvent. Since thisprovision of allowance for doubtful accounts is eliminated in the consolidated financial statements, there is noimpact on consolidated profit and loss.
(4) Recording of write-down of investment securities (non-consolidated)
As the real value of some of the non-marketable investment securities held by the Company declined
significantly compared to the book value, a loss on valuation of investment securities of ¥685 million wasrecorded as an extraordinary loss.

2. Recording of income tax adjustment (loss) (consolidated and non-consolidated)
As a result of estimating future taxable income and examining the recoverability of deferred tax assets, theCompany recorded an income taxes adustment (loss) of ¥1,886 million in the consolidated financial statementsand ¥1,120 million in the non-consolidated financial statements for the current fiscal year. As a result, income tax(loss) adjustment in the consolidated financial statements for the fourth quarter (March 1, 2024 to May 31, 2024)
amounted to ¥2,294 million.

3. Impact on Business ResultsThis matter is reflected in the "Summary of Financial Statements for the Fiscal Year Ended May 31, 2024
[Japanese GAAP] (Consolidated)" disclosed today.