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

August 1, 2024

Consolidated Financial Report
For the Three Months Ended June 30, 2024
(Japanese GAAP)
Company Name:
Meitec Group Holdings Inc.
Listed Stock Exchange
Tokyo
Code No.:9744
URL:
https://www.meitecgroup-holdings.com/en/index.html
Representative:
Masato Uemura, President, Group CEO
Inquiries:
Toru Yamashita, Executive officer for the Accounting, the Finance, the Management AdministrationScheduled date to commence dividend payments:―Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
None[Fractions of one million yen are rounded down]

1. Consolidated Results for the 1st Quarter (April 1, 2024 to June 30, 2024)(1) Consolidated operating results(% is comparison to the previous fiscal year)

Net Sales

Profit Attributable toOwners of Parent

Ordinary Profit

Millions of Yen％

Millions of Yen％

Millions of Yen％

Millions of Yen％

32,91031,302

5.1
9.3

4,767
4,238

12.5
13.8

4,780
4,225

13.2
12.9

3,223
2,638

22.2
11.3

Three months ended June 30, 2024
Three months ended June 30, 2023

(Note) Comprehensive Income;Operating Profit

Three months ended June 30, 2024:
Three months ended June 30, 2023:

3,226
2,669

Earnings per Share

Diluted Net Incomeper Share

Yen

Yen

Three months ended June 30, 2024

41.75

－

Three months ended June 30, 2023

33.65

－

million yen [ 20.9 % ]million yen [ 10.7 % ](2) Consolidated financial position
Total Assets
As of June 30, 2024
As of March 31, 2024

Reference: Shareholders’ Equity;

Net Assets

Equity Ratio

Millions of Yen

Millions of Yen%

81,97345,51855.5

47,69645,518 million yen
47,696 million yen

52.6

90,761as of June 30, 2024:
as of March 31, 2024:

2. Dividends
1st Quarter
FY ended March 31, 2024
FY ending March 31, 2025

Annual Dividends per Share
2nd Quarter
3rd Quarter
Year-end

Total

Yen

Yen

Yen

Yen

Yen

――

44.00

―

70.00

114.0088.00―
100.00188.00(Note) Revision of dividends forecast from recent forecast:
None(Note) Breakdown of dividends for FY ending March 31, 2025: ordinary dividend of ¥158.00 and commemorative dividend of ¥30.00(the 50th anniversary commemorative dividend)

FY ending March 31, 2025 (Forecast)1

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

3. Consolidated Forecasts for Fiscal Year ending March 31, 2025 (April 1, 2024 to March 31, 2025)(% is comparison to the same period of previous fiscal year)

OperatingProfit

Net Sales

Six months ending September 30, 2024
FY ending March 31, 2025

Profit Attributableto Owners ofParentOrdinary
ProfitEarnings
per Share

Millions ofYen%

Millions ofYen%

Millions ofYen%

Millions ofYen%

Yen

65,000132,700

3.9
4.5

8,200
17,500

(4.9)
(0.9)

8,200
17,600

(4.9)
(0.4)

5,600
12,100

(2.6)
(2.0)

72.53
156.72(Note) Revision of performance forecast from recent forecast:

None

Notes to Financial Statements(1) Significant changes in the scope of consolidation during the period: None
Newly consolidated: ―Excluded: ―(2) Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatements
i. Change in accounting policies :None
ii. Changes not relating to i. :Noneiii. Changes in accounting estimates :None
iv. Restatements :None(4) Number of shares issued (common stock)i. Number of shares issued at the fiscal year end (including treasury shares)
1st quarter ended June 30, 2024:
78,000,000
FY ended March 31, 2024:
78,000,000
ii. Number of treasury shares at the fiscal year end
1st quarter ended June 30, 2024:
792,517
FY ended March 31, 2024:
792,507iii. Average number of shares outstanding during the period (first quarter cumulative)
1st quarter ended June 30, 2024:
77,207,486
1st quarter ended June 30, 2023:
78,421,587* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or an audit firm : None
* Advice relating to appropriate use of financial forecasts and other relevant information
Earnings forecasts and other forward-looking statements in this release are based on data currently available to management andcertain assumptions that management believes are reasonable, and it is not intended to promise its achievement. Actual results may
therefore differ materially from these statements for various reasons. Some important factors that might have an effect on businessperformance pertain to Business Risks stated in the Company’s annual securities report and other information already released, but
factors influencing business performance are not limited to those released.

2

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

1. Overview of Operating Results(1)Overview of operating results for the 1st Quarter
During the first quarter of the current fiscal year (the three months from April 1, 2024 to June 30, 2024), whilebusiness conditions continued to gradually recover, the economic outlook remained uncertain due mainly to thecontinued tense international situation and rising prices of resources and other items.
MEITEC (MT) and MEITEC Fielders (MF), which are responsible for the Engineering Solutions Business thataccounts for more than 90% of the Group’s consolidated net sales, saw orders remain strong as leading manufacturersthat constitute the Group’s major clients invested in technological development focused on the next generation ofproducts. Furthermore, the Company continued proactive recruitment that adheres to high standards even in achallenging hiring situation, with an eye on medium- and long-term growth. As a result, 631 (MT: 329, MF:302) newemployees joined the Group in April 2024, bringing the number of engineers (total for MT and MF) as of June 30,2024 to 12,686 (up +109, or +0.9% compared to June 30, 2023). In addition, as a result of promoting assignments ofboth new and existing employees in response to orders, the Company achieved both an increase in the number ofengineers assigned to clients and improvement in the utilization ratio. Moreover, working hours increased slightly year
on year, mainly due to an increase in overtime work.
As a result, consolidated net sales for the period under review increased ¥1,607 million, or 5.1%, from a year
earlier to ¥32,910 million. Consolidated cost of sales increased ¥1,028 million, or 4.5%, from a year earlier to¥23,917 million, due mainly to an increase in labor expenses associated with growth in the number of engineers, andconsolidated selling, general and administrative expenses increased ¥49 million, or 1.2%, from a year earlier to¥4,224 million. As a result, consolidated operating profit increased ¥529 million, or 12.5%, from a year earlier to¥4,767 million. Consolidated ordinary profit increased ¥555 million, or 13.2%, from a year earlier to ¥4,780 million,
while profit attributable to owners of parent increased ¥584 million, or 22.2%, from a year earlier to ¥3,223 million.
For details, please refer to the “Results for the 1st Quarter of the Fiscal Year Ending March 31, 2025” released
today on the Tokyo Stock Exchange’s Timely Disclosure network (TDnet Company Announcements Service) and theCompany’s website.
The following information highlights performance by segment:
With the transition to a holding company structure on October 1, 2023, and from the third quarter of the previous
fiscal year, the Company changed its segment categories from the previous two categories of “Engineering Solutions
Business” and “Recruiting & Placement Business for Engineers” to the three categories of “Engineering Solutions
Business,” “Recruiting & Placement Business for Engineers” and “Other.”(1)-1. Engineering Solutions BusinessNet sales in the Engineering Solutions Business segment, especially in the temporary engineer staffing business, ourcore business, increased ¥1,621million, or 5.2%, from a year earlier to ¥32,570 million on the back of the increase innumber of engineers assigned to clients and improvement in the utilization ratio. Operating profit increased ¥594
million, or 14.4%, from a year earlier to ¥4,714 million. The overall utilization ratio increased year on year to 95.8%at MT (94.5% in the previous fiscal year) and to 93.5% at MF (90.6% in the previous fiscal year). Working hours
increased slightly year on year to 8.37 hours/day at MT (8.33 hours/day in the previous fiscal year) and to 8.21
hours/day at MF (8.19 hours/day in the previous fiscal year).
(1)-2. Recruiting & Placement Business for Engineers
MEITEC NEXT CORPORATION operates job placement business for engineers. Net sales for the fiscal year underreview decreased ¥15 million, or 4.3%, from a year earlier to ¥345 million due to a decrease in the number of job
placement, and operating profit increased ¥1 million, or 1.1%, from a year earlier to ¥119 million.
(1)-3. OtherIn the businesses related to the group’s operations, net sales were ¥7,679 million, and operating profit was ¥7,450million.

3

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

(2) Overview of Financial Position for the 1st Quarter
Total consolidated assets at the end of the 1st quarter (June 30, 2024) decreased ¥8,787 million from March 31,2024 to ¥81,973 million. This reflected a decrease of ¥8,937 million in current assets as a result of a decrease in cash
and deposits from the previous fiscal year-end. Furthermore, the main factors for the decrease in cash and deposits
were payment of bonuses, income taxes payable and year-end dividends of the previous fiscal year.
Total consolidated liabilities as of June 30, 2024 decreased ¥6,609 million from March 31, 2024 to ¥36,454
million. This reflected a decrease of ¥ 6,695 million in current liabilities from the previous fiscal year-end. The
decrease in current liabilities was primarily due to a decrease in provision for bonuses associated with the payment ofbonuses.
Total consolidated net assets as of June 30, 2024 decreased ¥2,177 million from March 31, 2024 to ¥45,518 million.
This mainly reflected an increase in profit attributable to owners of parent due to business performance in the period
under review, offset by the payment of dividends.

4

2. Quarterly consolidated financial statements and principal notes(1) Quarterly Consolidated Balance Sheets(Millions of Yen)
The 1st Quarter ended
Jun. 30, 2024

Fiscal year ended
Mar. 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Work in process
Consumption taxes refund receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Deferred tax assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Income taxes payable
Provision for bonuses for directors (and other officers)
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
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
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

552,744
18,215
174
2,432
1,203
(4)
74,76745,567
18,712
285
－
1,269
(4)
65,829

3,005
1,650
4,656

2,971
1,641
4,613

403
403

379
379

9,356
1,592
(15)
10,933
15,99390,761

9,352
1,813
(15)
11,15016,144
81,9733,674
131
10,612
11,37325,791

1,702
70
5,103
12,22019,096

17,273
17,27343,064

17,35817,35836,4545,000
1,259
43,554(1,691)
48,1225,000
1,259
41,373(1,691)45,941

(662)
236
(425)
47,696
90,761

(662)
240
(422)
45,51881,973

（2）Quarterly Consolidated Statements of Income and Comprehensive Income( Quarterly Consolidated Statements of Income)(Millions of Yen)
The 1st Quarter ended
Jun. 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Subsidy income
Interest on tax refund
Other
Total non-operating income
Non-operating expenses
Commitment fees
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent

The 1st Quarter ended
Jun. 30, 2024

31,302
22,889
8,413
4,175
4,238

32,91023,917
8,992
4,224
4,767

0
3－1
40
3
73
14

0
17
18
4,225

0
1
14,780

0
0
4,224
1,585
2,638
2,638

0
0
4,780
1,557
3,2233,223(Quarterly Consolidated Statements of Comprehensive Income)The 1st Quarter ended
Jun. 30, 2023
ProfitOther comprehensive income
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent6(Millions of Yen)
The 1st Quarter ended
Jun. 30, 2024

2,638

3,223

30
30
2,669

33
3,226

2,669

3,226

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

(3) Notes to Quarterly Consolidated Financial Statements(Notes to Financial Statements Regarding Going Concern)
None(Significant Changes in Shareholders’ Equity)
None(Notes to Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows are not prepared for the three months ended June 30, 2024.
Depreciation (including amortization of intangible assets) for the three-month period under review is as follows:(Millions of Yen)

Three months ended June 30, 2023 Three months ended June 30, 2024
(from April 1, 2023 to(from April 1, 2024 toJune 30, 2023)
June 30, 2024)
Depreciation

94775

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

(Notes to Segment Information, etc.)[Segment Information]
Ⅰ Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Disclosure of Sales and Profit (Loss) for Each Reportable Segment・Matters regarding changes to reporting segments, etc.

(Millions of Yen)
Reportable segments
Recruiting &Engineering Solutions
Placement BusinessBusinessfor Engineers
Net sales
Revenues from external customers

30,946356–

31,302

14–

630,948360–

31,309

4,119

118

–

4,238

Intersegment sales and transfers
Total
Segment profit

Total

Other

2. Difference between the Total Amount of Profit (Loss) for Reportable Segments and the Amount Recorded in the Quarterly
Consolidated Financial Statements and the Main Details of Such Difference (Matters Concerning Reconciliation)(Millions of Yen)
ProfitAmountReportable segment total
Intersegment eliminations

4,238–Operating profit in quarterly consolidated financial statements

4,238

Ⅱ

Three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
1. Disclosure of Sales and Profit (Loss) for Each Reportable Segment(Millions of Yen)
Reportable segments
Recruiting &Engineering Solutions
Placement BusinessBusinessfor Engineers

Total
OtherNet sales
Revenues from external customers

32,569

340

–04

7,679

7,684

32,570345

7,679

40,594

Intersegment sales and transfers
Total

32,910

Segment profit
4,714
119
7,450
12,284
Note: The “Other” segment represents the Company’s business as a holding company, mainly engaged in the management of Group
companies and real estate.
2. Difference between the Total Amount of Profit (Loss) for Reportable Segments and the Amount Recorded in the Quarterly
Consolidated Financial Statements and the Main Details of Such Difference (Matters Concerning Reconciliation)(Millions of Yen)
ProfitAmountReportable segment total

12,284

Intersegment eliminations(7,517)

Operating profit in quarterly consolidated financial statements

4,767

8

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

3. Matters relating to changes in reportable segments
With the transition to a holding company structure on October 1, 2023, and from the third quarter of theprevious fiscal year, the Company changed its segment categories from the previous two categories of“Engineering Solutions Business” and “Recruiting & Placement Business for Engineers” to the three categories
of “Engineering Solutions Business,” “Recruiting & Placement Business for Engineers” and “Other.”
Furthermore, the category of the Company, which is a holding company and was previously categorized in the“Engineering Solutions Business,” has been changed to “Other.” Moreover, segment information for the firstquarter of the previous fiscal year has been created and disclosed based on the reportable segment categories
following the transition to the holding company structure.

(Application of special accounting for preparing quarterly consolidated financial statements)
Tax expenses
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimated effective
tax rates after the application of tax effect accounting to the profit before income taxes for the fiscal year
including the first quarter ended June 30, 2024.

9