For Immediate Release
May 13, 2022

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
PERSOL HOLDINGS CO., LTD. (the Company) today announced its consolidated financial results
for the fiscal year ended March 31, 2022 and consolidated financial forecasts for the fiscal year
ending March 31, 2023.
Consolidated Operating Highlights
1) Financial Results

Net sales(In millions of yen, unless otherwise stated)
Fiscal year ended March 31,% change
2021
2022
950,7221,060,893
11.6

Operating profit

25,724

48,143

87.2

EBITDA2

43,17067,15055.5

Ordinary profit

28,45349,48473.9

Net profit3

15,341

31,523105.5

Net profit per share (yen)66.50

136.84-

Adjusted profit

23,29639,146

68.0

Adjusted EPS4 (yen)100.98169.9368.3

Notes:
1. Effective in the three months ended December 31, 2021, the accounting policy was changed at an overseas subsidiary where theInternational Financial Reporting Standards (IFRS) are applied, based on the “Configuration or Customization Costs in a Cloud
Computing Arrangement (IAS No. 38)”, an agenda decision by the IFRS Interpretations Committee (IFRIC) that was announced in
April 2021. Accordingly, the values for the previous fiscal year were corrected retroactively by reflecting the said change of theaccounting policy. The percentages for year-on-year changes were calculated by using the values after the retroactive correction.
2. EBITDA = operating profit + depreciation + amortization of goodwill
3. Net profit attributable to owners of parent
4. Adjusted EPS = adjusted profita/ (average number of shares during the period - number of treasury stock during the period)a.

Adjusted profit = net profit attributable to owners of parent ± adjustment itemsb (excluding non-controlling interests) ± tax
reconciliation related to certain adjustment itemsb.

Adjustment items = amortization of intangible assets except goodwill by acquisitions + amortization of goodwill ± extraordinary
income/losses

2) Balance Sheet Data
(In millions of yen, unless otherwise stated)
As of March 31, 2021

As of March 31, 2022

Total assets

381,179

421,778

Net assets

173,600

204,313

40.8

43.4

Net assets per share (yen)676.03793.68Equity capital

155,564

182,995

Equity ratio (%)

3) Balance Sheet Data
(In millions of yen, unless otherwise stated)
As of March 31, 2021

As of March 31, 2022

Cash flows from operating activities

36,80550,692

Cash flows from investing activities-13,188-7,057

Cash flows from financing activities-17,973-21,145

Cash and cash equivalents at end of period

82,991

106,558

4) Dividend Status(In yen, unless otherwise stated)
Fiscal year ended/ending March 31,
2021

2023 (forecast)

2022

Interim dividends

13.00

20.00

21.00

Year-end dividends

13.00

22.00

21.00

Annual dividends

26.00

42.00

42.00

Total dividend amount (million yen)

6,022

9,745

-

Payout ratio (%)

39.1

30.7

32.8

Dividend on equity ratio (%)

4.0

5.7

-

5) Consolidated Financial Forecast for the Fiscal Year Ending March 2023
(In millions of yen, unless otherwise stated)
Forecast for the fiscal year
% change from theending March 31, 2023
previous fiscal year
1st half

Full year

1st half

Full year

Net sales

569,000

1,165,000

10.9

Operating profit

26,40052,000

-1.3

8.0

-

74,200-10.5

Ordinary profit

26,30051,700-4.6

4.5

Net profit1

15,20029,500-2.2-6.4

Net profit per share (yen)66.29

128.05--Adjusted profit-

37,200--5.0

Adjusted EPS (yen)-161.46--5.0

EBITDA

9.8

Note:
1.

Net profit attributable to owners of parent

Disclaimer
The statements concerning the Company's future business performances in this material such as financial forecasts are
based on information currently available and certain assumptions deemed to be reasonable by the Company, and do notmean that the Company promises to achieve these figures. Actual results may differ materially from the statements due
to a variety of factors.

Management Discussion and Analysis(1) Management Discussion and Analysis for the Fiscal Year under Review
1. Result of Operations
PERSOL GROUP (the Group) provides a wide range of human resources (HR) related services;
temporary staffing and placement service as the core businesses in Japan and Asia-Pacific(APAC) region.
Although the business outlook remained uncertain in Japan due to the continuing spread of
COVID-19, during this fiscal year, the ratio of job offers to job seekers (seasonally adjusted)
in Japan was 1.22 in March 2022, showing that demand for human resources was recovering.
At the Group, orders received in placement service, have already recovered to the preCOVID-19 level. In the APAC region, economies were generally recovering although theimpact of COVID-19 remains in some regions. In Australia, the Australian dollar strengthened
against the Japanese yen.
In this business environment, business performance of Staffing SBU (Strategic Business Unit)
remained strong, and that of Career SBU also recovered steadily. Sales in other SBUs also
increased. As a result, consolidated net sales for this fiscal year ended March 31, 2022, were1,060,893 million yen (increasing 11.6% year-on-year). Operating profit was 48,143 million
yen (increasing 87.2% YoY) because of an increase in sales in the profitable BPO (Business
Process Outsourcing) sector in Staffing SBU and a recovery of sales in other SBUs as a resultof demand recovering from the effect of COVID-19, which contributed to an increase in profits
or a reduction of losses in all SBUs. Ordinary profit was 49,484 million yen (increasing 73.9%
YoY) and net profit attributable to owners of parent was 31,523 million yen (increasing
105.5% YoY).
Results by SBU (before inter-segment elimination) are as follows.
a. Staffing SBU
In this segment, the Group operates temporary staffing business, including mainly clericaland administrative staff dispatching and wide range of staffing service, BPO (Business
Process Outsourcing) and placement service mainly for administrative talents in Japan.
Sales for this fiscal year were 575,743 million yen (increasing 8.6% YoY) and operating profit
was 39,359 million yen (increasing 35.1％ YoY).
Sales in the temporary staffing sector increased, mainly reflecting a year-on-year increasein the number of temporary active staff. Sales in BPO sector increased because orders
received remained strong, mainly in public-related projects. Operating profit increased as aresult of the effect of a sales increase in the temporary staffing sector and the growth of thehighly profitable BPO sector.
b. Career SBU
In this segment, the Group mainly operates placement business, supporting corporate clients'
mid-career hiring activities, and job recruitment media business.
Sales for this fiscal year were 75,279 million yen (increasing 26.4% YoY) and operating profit
was 7,264 million yen (increasing 2088.9% YoY).
Sales in the placement business and job recruitment media business increased due tostronger sales promotion activities in addition to a recovery of demand for hiring among
companies. Operating profit increased significantly on stronger sales, offsetting the rise inselling, general and administrative expenses that resulted from marketing investment madein response to the rising demand and enhancement of hiring activities.
c. Professional Outsourcing SBU
In this segment, the Group operates manufacture and development outsourcing business in
IT and engineering areas and temporary staffing business specialized in engineers
dispatching.
Sales for this fiscal year were 121,109 million yen (increasing 7.1% YoY) and operating profit
was 6,934 million yen (increasing 72.1% YoY).
Sales increased because the engineering area saw a recovery in demand, mainly fordevelopment in the manufacturing industry. An additional factor was continued growth in the
IT area. Operating profit increased with a recovery in the operating rate in the engineering
area and a sales increase in the IT area.
d. Solution SBU
In this segment, the Group provides digital solution services for hiring talents and managing
human resources and creates new businesses through incubation programs.
Sales for this fiscal year were 11,169 million yen (increasing 95.9% YoY) and the operating
loss was 3,058 million yen (the operating loss was 4,809 million yen for the previous fiscal
year).
Sales increased due to the continued growth of the career change application business andcloud POS business, mainly reflecting the recovery in companies’ demand for hiring and theeffect of sales promotion activities. An operating loss was recorded, despite the effect of thesales increase, as a result of continuous active investments to increase staff for sales
promotion for future growth.
e. Asia Pacific SBU
In this segment, the Group operates a temporary staffing business and placement businessin Asia and a staffing business and maintenance business in Australia (those businesses areoperated mainly under PERSOLKELLY brand in Asia and mainly under Programmed brand inAustralia).
Sales for this fiscal year were 290,138 million yen (increasing 15.4% YoY) and operating
profit was 1,042 million yen (the operating loss was 2,235 million yen for the previous fiscal
year).
Sales increased due to progress in the recovery from the impact of COVID-19, continued
strong sales in Singapore as the main market, and growth in sales of the placement businessmainly in China, in addition to the effect of the stronger Australian dollar. The SBU moved
into operating profit because of the sales increase in the profitable placement business andprogress in the establishment of an efficient operation structure.
#

#

#

#

The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) is applied effective from the beginning of this fiscal year. Also, effective in the threemonths ended December 31, 2021, at an overseas subsidiary where the International
Financial Reporting Standards (IFRS) are applied, based on the “Configuration orCustomization Costs in a Cloud Computing Arrangement (IAS No. 38)”, an agenda decision
by IFRIC, applicable values for the same period of the previous fiscal year were corrected
retroactively. Please refer to “Changes in Accounting Policies”.

2. Business Outlook and Management Policy
Business Environment and the Company's Management Policy
The Group understands that, while the labor market is changing from moment to moment,
reflecting the declining labor force population in Japan, social roles of the HR service industry
and the roles and responsibilities to be fulfilled by the Group are significant, including active
mid-career hiring activities and the promotion of the active participation of women, theelderly, and foreigners, etc. In the era of 100-year lifespans, people live and work longer allover the world. This means that there will be increasing opportunities for people to engage
in various jobs in their lifetime. Additionally, it is expected that individuals’ working styles
will change in all industries with advancing technologies and AI.
The Group will detect changes in the world of work by forecasting what society will be like in2030 and will continue to suggest new work styles and new styles of employment bycompanies and organizations in the era of 100-year lifespans, in its efforts to achieve theGroup Vision, "Work, and Smile."

Three Group Key Strategies towards 2030
To respond to changes in the world of work, the Group has developed three key strategies
for its business activities.
Key strategy

OutlineFocusing on eachindividual

Helping every individual to improve work engagement by
providing work opportunities and raising their awareness inaccordance with their life-stage changes, aptitude, and capabilities

Innovating throughtechnologies

Suggesting new work styles and employment formats by driving
digital transformation with the full utilization of technologies

Extending ourvalue globally

Utilizing insights and expertise accumulated in Japan to spread the“Work, and Smile.” concept from the APAC region

Mid-term Management Plan 2023
The Group positions the first three years on the journey toward 2030 as a period forestablishing a platform for growth through enhanced business activities and a stronger
management structure. It has adopted the following five strategies under the Mid-termManagement Plan 2023.
<Five strategies under the Mid-term Management Plan 2023>
・ Increasing social value
・ Increasing economic value
・ Shifting to a SBU structure
・ Identifying growth areas
・ Strengthening business with technology

3. Financial Forecasts for Fiscal Year Ending March 31, 2023
While it remains uncertain when COVID-19 will be put under control and the impact ofoverseas geopolitical risks on the economy has to be watched closely, the HR market
conditions encompassing the business of the Group in the fiscal year ending March 31, 2023
are expected to remain above the pre-COVID-19 level. Given that sales for the fiscal year
ending March 31, 2023 are expected to increase in all segments, net sales forecast is 1,165.0
billion yen and operating profit forecast is 52.0 billion yen.,Staffing SBU, the core business, is expected to continue increasing the number of temporary
active staff in the temporary staffing sector. In the BPO sector, however, orders for spotcontract public related projects are expected to decline.
In the placement business operated by Career SBU, significant increases of sales and profit
are expected as the market is expected to expand due to high corporate demand for humanresources and an increase of job seekers. This will be the growth driver of the Group.
In overseas business, efforts will be made to realize integrated management, which willproduce synergy between PERSOLKELLY and Programmed, and to improve profitability.

(2) Financial Position
1. Consolidated Balance Sheet
Total assets at the end of this fiscal year was 421,778 million yen, an increase of 40,598
million yen from the end of the previous fiscal year. Current assets increased by 49,953
million yen, to 286,897 million yen. The main factors include an increase in the sum of notes
receivable - trade, accounts receivable - trade and contract assets (notes and accounts
receivable - trade in the previous fiscal year) of 35,784 million yen and an increase in cash
and deposits of 24,384 million yen.
Non-current assets decreased by 9,355 million yen, to 134,880 million yen. This is
attributable mainly to decreases in goodwill of 5,077 million yen and in investment securitiesof 2,679 million yen.
The total amount of liabilities was 217,464 million yen at the end of this fiscal year, up 9,885
million yen from the end of the previous fiscal year. Current liabilities increased by 22,315
million yen, to 167,893 million yen. The main reasons for the increase were increases in thecurrent portion of long-term borrowings of 11,272 million yen, in accounts payable - otherof 8,220 million yen, and in income taxes payable of 6,765 million yen, offsetting a decreasein current portion of bonds payable of 10,000 million yen.
Non-current liabilities decreased by 12,430 million yen, to 49,570 million yen. This is
attributed mainly to a decrease in long-term borrowings of 11,629 million yen.
The amount of total net assets at the end of this fiscal year was 204,313 million yen, up
30,713 million yen compared to the end of the previous fiscal year. This was mainly causedby the payment of dividends of surplus of 7,651 million yen and the posting of 31,523 million
yen in net profit attributable to owners of parent, which resulted in an increase in retained
earnings of 24,077 million yen and a foreign currency translation adjustment increase of
3,836 million yen.
As financial indicators based on the financial position described above, the current ratio
increased from 162.8% to 170.9％, and the equity ratio increased from 40.8％ to 43.4％,
respectively, compared to the end of the previous fiscal year.
As of March 31,
2021

As of March 31,
2022

Return on assets (ROA)

4.5％

8.6％

Return on equity (ROE)

10.1％

18.6％

Ratio of operating profit to sales

2.7％

4.5％

Ratio of ordinary profit to sales

3.0％

4.7％

Current ratio

162.8％

170.9％

Fixed ratio

92.7％

73.7％

Equity ratio

40.8％

43.4％

ROIC

9.2％

14.2％

Debt/equity ratio

0.40

0.28

Net cash/EBITDA ratio

0.48

0.82

Total assets (million yen)

381,179

421,778

Equity capital (million yen)

155,564

182,995

Invested capital (million yen)

244,109269,323

Cash and cash equivalents at end of
period (million yen)

82,991

106,558

*Effective in the three months ended December 31, 2021, the accounting policy was changed at an
overseas subsidiary where the International Financial Reporting Standards (IFRS) are applied, basedon the “Configuration or Customization Costs in a Cloud Computing Arrangement (IAS No. 38)”, anagenda decision by the IFRS Interpretations Committee (IFRIC) that was announced in April 2021.
Accordingly, the values for the above management indicators, etc. concerning the previous fiscal
year were corrected retroactively by reflecting the said change of the accounting policy.

2. Consolidated Cash FlowsThe balance of cash and cash equivalents (hereinafter "capital") at the end of this fiscal year
was 106,558 million yen, up 23,567 million yen from the end of the previous fiscal year.
Presented below are an overview of cash flows for this fiscal year and main factors behindthem.
(Cash flows from operating activities)
Capital generated by operating activities increased 13,887 million yen from the previous fiscal
year, to 50,692 million yen. Major factors included an increase in trade receivables of 28,855
million yen and income taxes paid of 12,542 million yen, offset by profit before income taxesof 50,043 million yen, depreciation of 12,150 million yen, an increase in trade payables of
7,367 million yen, and amortization of goodwill of 6,856 million yen.
(Cash flows from investing activities)
Capital used as a result of investing activities decreased by 6,130 million yen from theprevious fiscal year, to 7,057 million yen. This was mainly due to spending of 8,383 million
yen on the purchase of intangible assets and 2,604 million yen spent on purchase of property,
plant and equipment.
(Cash flows from financing activities)
Capital used as a result of financing activities increased by 3,172 million yen from theprevious fiscal year, to 21,145 million yen. This was mainly caused by spending of 10,000
million yen for the redemption of bonds and 7,651 million yen in dividends paid.

Basic Policy of Accounting Standards
The Group's policy for the time being is to create consolidated financial statements inaccordance with Japanese standards considering the potential to compare consolidated
financial statements between periods and between companies.
Application of International Financial Reporting Standards (IFRS) is currently scheduled forthe fiscal year ending in March 2024, taking into consideration of a change in the ratio of
foreign shareholders and the trend of Japanese competitors to apply IFRS.

Consolidated Financial Statements(1) Consolidated Balance Sheet(in millions of yen)
As of March 31,
2021

As of March 31,
2022

AssetsCurrent assets
Cash and deposits

83,161

107,545

Notes and accounts receivable - trade133,047-

Notes receivable - trade-100

Accounts receivable - trade-

150,073

Contract assets-

18,658Work in process

8,300

333

Other

13,146

10,740Allowance for doubtful accounts

-712

-554

236,943286,897

7,413

7,895

Accumulated depreciation-3,847-4,196

Accumulated impairment

-6

-10

3,560

3,687

Tools, furniture and fixtures

6,578

7,062

Accumulated depreciation-4,573-4,835

Accumulated impairment

-76

-79

1,928

2,147

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Buildings and structures, net

Tools, furniture and fixtures, net
Right of use assets

7,216

9,169

Accumulated depreciation-3,733-5,758Right of use assets, net

3,482

3,410

Land

799

515

Other

3,324

3,906

-1,106-1,601

Accumulated depreciation
Other, net
Total property, plant and equipment

2,217

2,304

11,98812,065Intangible assets
Trademark right

9,688

9,803

Goodwill

66,751

61,674

Software15,143

16,787

Other

7,123

6,863

Total intangible assets

98,706

95,12911,344

8,664

Deferred tax assets

7,861

10,233

Other

15,765

10,315

Allowance for doubtful accounts-1,430-1,527

Investments and other assets
Investment securities

Total investments and other assets
Total non-current assets
Total assets

33,54027,686144,235

134,880

381,179

421,778

(Consolidated Balance Sheet)(in millions of yen)
As of March 31,
2021

As of March 31,
2022

Liabilities
Current liabilities
Accounts payable - trade

451

630

Short-term borrowings

603

162

10,000-Current portion of bonds payable
Current portion of long-term borrowings

31

11,304

Accounts payable - other73,592

81,813

Income taxes payable

4,445

11,211

Accrued consumption taxes

17,161

17,432

Provision for bonuses

15,40917,847

Provision for bonuses for directors

47

71

Other provisions

1,116

714

Other

22,717

26,706

Total current liabilities

145,577

167,893

Bonds payable

10,00010,000Long-term borrowings

41,62930,000

Lease obligations

2,047

1,997

Deferred tax liabilities

4,259

2,991

Retirement benefit liability

880

414

Provision for share awards

583

810

534

835

96

81

Non-current liabilities

Provision for share awards for directors (andother officers)
Other provisions
Other

1,970

2,438

Total non-current liabilities

62,001

49,570207,578

217,464

17,47917,479Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

19,008

19,168Retained earnings

134,151

158,229

Treasury shares-11,100-10,351

Total shareholders' equity

159,539

184,526

2,350

959

Foreign currency translation adjustment-6,325-2,489Total accumulated other comprehensive income-3,974-1,530

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities

Share acquisition rights

00

Non-controlling interests

18,03521,317

Total net assets

173,600

204,313

381,179

421,778

Total liabilities and net assets

(2) Consolidated Income Statements and Comprehensive Income Statement(Consolidated Income Statement)(in millions of yen)
Fiscal year ended March 31,
2021
2022
Net sales

950,7221,060,893

Cost of sales

749,309820,056

Gross profit

201,413240,837

Selling, general and administrative expenses

175,688

192,694

Operating profit

25,724

48,143Non-operating income
Interest income

4149

Dividend income

173

232

Subsidy income

3,037

1,342

62

-

Share of profit of entities accounted for using
equity method
Foreign exchange gains
Other
Total non-operating income

-

25

302

540

3,618

2,189

346

270

Non-operating expenses
Interest expenses
Foreign exchange losses

39-

Commission expenses

163

24

-

174

Other

339

377

Total non-operating expenses

888

847

28,45349,484

160

1,500

-

486

321

1,712

Share of loss of entities accounted for using
equity method

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries andassociates
Gain on sale of investment securities
Other
Total extraordinary income

8

-

489

3,698

Extraordinary losses
Loss on disposal of non-current assets

683

Impairment losses

167

1,675

Loss on business restructuring

160-

Loss on sale of investment securities

6

1

Loss on valuation of investment securities

32

801

-

530

643

127

Restructuring expenses
Non-recurring loss

1,078

3,139

Profit before income taxes

Total extraordinary losses

27,86450,043

Income taxes - current

10,523

18,880

Income taxes - deferred382-3,270Total income taxes

10,905

15,610

Profit16,95834,433

Profit attributable to non-controlling interests

1,617

2,909

Profit attributable to owners of parent

15,341

31,523

(Consolidated Comprehensive Income Statement)(in millions of yen)
Fiscal year ended March 31,
2021
2022
Profit16,95834,433

1,879-1,391

905

4,358

18

40

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

2,803

3,007

19,76237,44018,31833,967

1,443

3,472

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

(3) Consolidated Statement of Changes in Equity
For the Fiscal Year Ended March 31, 2021
(In millions of yen)
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

17,479

Shareholders' equity
Retained
Total shareholders'
Treasury sharesearnings
equity20,396126,285-9,369-990
17,47920,396

154,792-990

125,295-9,369

153,802

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period

Restated balance-6,485

15,341

15,341-1,903-1,903172

172-1,388-1,388--1,3888,856-1,731

5,736

17,47919,008134,151-11,100

159,539

Accumulated other comprehensive income
Total
Valuation
Foreignaccumulateddifference on
currency
otheravailable-fortranslation
comprehensive
sale securities
adjustment
incomeBalance at beginning of
periodCumulative effects ofchanges in accounting
policies-6,485471

471-7,414-6,942-9-9-7,423-6,952

Shareacquisitionrights

Noncontrollinginterests-

16,056Total
net assets

163,906-999-

16,056

162,906

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period-6,485
15,341-1,903172-1,388

1,879

1,097

2,977

0

1,979

4,957

1,879

1,097

2,977

0

1,979

10,6932,350-6,325-3,9740

18,035

173,600

For the Fiscal Year Ended March 31, 2022
(In millions of yen)
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

17,479

Shareholders' equity
Retained
Total shareholders'
Treasury sharesearnings
equity19,008134,151-11,100

205
17,47919,008

159,539205

134,357-11,100

159,745

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period

Restated balance-7,651

31,52331,523

167

-0

-0

749

917

-7

-7

-

160

23,871748

24,78017,47919,168158,229-10,351

184,526

Accumulated other comprehensive income
Total
Valuation
Foreignaccumulateddifference on
currency
otheravailable-fortranslation
comprehensive
sale securities
adjustment
incomeBalance at beginning of
periodCumulative effects ofchanges in accounting
policies-7,651

2,350-6,325-3,974

Shareacquisitionrights

Noncontrollinginterests

0

18,035Total
net assets

173,600
205

2,350-6,325-3,9740

18,035

173,806

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period-7,651
31,523-0917-7-1,391

3,836

2,444

-

3,282

5,726

-1,391

3,836

2,444

-

3,282

30,507959-2,489-1,530021,317204,313

(4) Consolidated Cash Flow Statements(in millions of yen)
Fiscal year ended March 31,
2021
2022
Cash flows from operating activities
Profit before income taxes

27,86450,043

Depreciation

10,76012,150

167

1,675

6,686

6,856

-99

-482

2,687

2,378

-8

21

378

226

85

301

4

-193

Impairment losses
Amortization of goodwill
Increase (decrease) in retirement benefit
liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses
for directors (and other officers)
Increase (decrease) in provision for shareawardsIncrease (decrease) in provision for shareawards for directors (and other officers)
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in other provisions

-132

33

Interest and dividend income

-215

-281

Interest expenses

346

270

-62

174

-3,037-1,342

-

-486

-315

-1,711

32

801

Loss (gain) on disposal of non-current assets-91-1,496

Loss on business restructuring

160

-

-8

-

-

530

Share of loss (profit) of entities accounted forusing equity method
Subsidy income
Loss (gain) on sale of shares of subsidiaries
and associates
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment
securities

Other extraordinary loss (income)Restructuring expenses
Non-recurring loss

643

127

Decrease (increase) in trade receivables-3,617-28,855

Increase (decrease) in trade payables

5,433

7,367

-592

99

-257

-225

Decrease (increase) in other assets-3,092

9,920

Increase (decrease) in other liabilities

2,248

1,922

Subtotal

45,96859,827

Increase (decrease) in accrued consumption
taxes
Increase (decrease) in long-term accounts
payable - other

Interest and dividends received

213

280

Interest paid

-353

-265

Subsidies received

2,724

1,342

-

-530

-12,473-12,542

725

2,581

36,80550,692

Payments of restructuring expenses
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating
activities

(in millions of yen)
Fiscal year ended March 31,
2021
2022
Cash flows from investing activities
Payments into time deposits

-11

-820

Proceeds from withdrawal of time deposits

45

51

Purchase of property, plant and equipment-3,666-2,604318

1,877-7,735-8,383Purchase of investment securities-589-1,195

Proceeds from sale of investment securities

669

4,276

-224

-250

-

673

-

-1,126-120-3Proceeds from sale of property, plant andequipment
Purchase of intangible assets

Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from sale of shares of subsidiaries
resulting in change in scope of consolidation
Payments for acquisition of businesses
Loan advances
Proceeds from collection of loans receivable

144

4

Payments of guarantee deposits

-644

-452

Proceeds from refund of guarantee deposits
Other, net
Net cash provided by (used in) investing
activities

519

1,072

-1,893-178-13,188-7,057-4,710-470

Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings

5,747

-

Repayments of long-term borrowings-10,032-691--10,000

Redemption of bonds
Purchase of treasury shares-1,9030

Dividends paid

-6,485-7,651

-160

-198

-

-7

-427

-2,125-17,973-21,145

-689

1,078

4,953

23,567

Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting
in change in scope of consolidation
Other, net
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
Cash and cash equivalents at beginning of period

78,03782,991

Cash and cash equivalents at end of period

82,991

106,558

Changes in Accounting Policies
Application of Accounting Standard for Revenue Recognition, etc.
The Group has applied the Accounting Standard for Revenue Recognition (ASBJ Statement
No. 29, March 31, 2020) and others effective from the beginning of this fiscal year and has
decided to recognize the amount expected to be received in exchange for goods or services
as revenue when the control of the promised goods or services has been transferred to thecustomer.
The Accounting Standard for Revenue Recognition, etc. are applied in accordance with thetransitional procedures set forth in the proviso of paragraph 84 of the Accounting Standard
for Revenue Recognition. The cumulative effect of the retrospective application, assuming
the new accounting policy had been applied to periods prior to the beginning of this fiscal
year was added to or subtracted from the beginning balance of retained earnings of this fiscal
year, and thus the new accounting policy was applied from the beginning balance.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “notes andaccounts receivable - trade,” which were presented under “current assets” in the consolidatedbalance sheet for the previous fiscal year, have been included in “notes receivable - trade,”“accounts receivable – trade” and “contract assets,” starting this fiscal year. In accordancewith the transitional procedures set forth in paragraph 89-2 of the Accounting Standard for
Revenue Recognition, reclassification based on the new presentation method has not been
carried out for the previous fiscal year.
The impact of the application of this accounting standard on the consolidated financial
statements is immaterial.

Application of Accounting Standard for Fair Value Measurement, etc.
The Group has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement
No. 30, July 4, 2019) and others effective beginning of this fiscal year, and has decided toapply the new accounting policy set forth by the Accounting Standard for Fair Value
Measurement, etc. into the future in accordance with the transitional procedures stipulated
in paragraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 442 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4,2019).
The impact of the application of this accounting standard on the consolidated financial
statements is immaterial.

Configuration or Customization Costs in a Cloud Computing Arrangement (IAS No. 38), an
agenda decision by IFRIC
At an overseas subsidiary where the International Financial Reporting Standards (IFRS) areapplied, configuration or customization costs in a cloud computing arrangement werepreviously recognized as intangible assets by applying the IAS No. 38 Intangible Assets.
Effective in the three months ended December 31, 2021, however, the method was changed
to one with which the above costs are recognized as costs generated when the configurationor customization service is received, based on the “Configuration or Customization Costs ina Cloud Computing Arrangement (IAS No. 38)”, an agenda decision by the IFRSInterpretations Committee (IFRIC) that was announced in April 2021.

This change in accounting policy is applied retroactively, and the change is reflected in the
consolidated financial statements for the previous fiscal year.
As a result, compared to values before the retroactive application, operating profit, ordinary
profit, and profit before income taxes in the consolidated income statement for the previous
fiscal year decreased 715 million yen, while in the consolidated balance sheet for the previous
fiscal year, intangible assets decreased 2,236 million yen and deferred tax liabilities
decreased 679 million yen. The beginning balance of retained earnings decreased 990 million
yen and foreign currency translation adjustment decreased 9 million yen for the previous
fiscal year due to the application of the cumulative effect to net assets as of the beginning of
the previous fiscal year.
From these results, net profit per share for the previous fiscal year decreased 2.14 yen.