Q&A: Reasons for downward revisions

Moderator: We have questions that ask, " Will you please tell us the reasons for the downward
revisions?"
Shimizu: As I mentioned earlier, there were three negative factors and three positive factors. Broadly
speaking, the initial scenario was that even if automobiles didn’t go into recovery production, it wouldnormalize from the fourth quarter.
This was not our assumption, but the general view of automobiles manufacturers at the time was thatproduction would begin to normalize in the second half of the fiscal year or so, and that recovery
production would begin in the fourth quarter. However, the biggest factor was probably that it wasmore difficult than expected to procure parts, mainly semiconductors, and we have not been able toachieve recovery production.
In conjunction with this, we believe that the primary factor is that the production of electronic
components has slowed down.

Q&A: Recruitment policy
Moderator: We have a question that asks, "Despite the uncertainty of the external environment, doyou plan to continue to actively promote recruitment with increased efficiency?"
Shimizu: Although the external environment is indeed uncertain, there is an active demand for humanresources from our clients. However, there is one thing to consider here.
From our point of view, we are extremely grateful to be able to increase the utilization of those whoare already assigned. In addition, workers can increase their income by working a moderate amountof overtime. From the fourth quarter onwards, we would like to focus on such matters.
Such efforts will ultimately lead to an improvement in our profit structure. In addition, based on theidea of increasing the number of staff with a strong emphasis on the automobiles industry in thefuture, we are thinking of actively assigning such staff to our prospective business partners and fields
with an eye on the future.
This is connected to the fact that the matching of human resources is not as easy as in theautomobiles-related industry. Since we believe that such human resources will be assigned after asomewhat longer training period than before, the growth in the number of enrolled staff is expected toslow down slightly. However, we believe that we will be able to show positive results in terms of sales
and earnings by steadily increasing our operations.

Q&A: The Aim of Kumamoto Training CenterModerator: We have a question that asks, "Will you please tell us about the aim of opening theKumamoto Training Center in April?”
Shimizu: The Kumamoto Training Center is modeled after the Technical Center Higashi-Nihon, one ofNISSO’s training facilities. We plan to utilize the expertise we have accumulated there. The aim is to“develop human resources who will be the key when establishing mass-production technology in theKyushu area”. We are thoroughly discussing the curriculum and other matters with our business
partners, heading toward the opening.
We believe that by increasing the training capacity of this training facility, we are leading the way inlaying the foundation for the development of human resources necessary for mass-production
technology in this area, mainly in Kumamoto.

Q&A: Normalization, including recovery production ofautomobiles
Moderator: We have a question that asks, "Do you think that normalization, including the recovery
production of automobiles, will be difficult in the next fiscal year as well?"Shimizu: It will be difficult to do so with our efforts alone. The most uncertain thing is the current
inventory level of semiconductors for automobiles, including power semiconductors.
We believe that successful procurement of semiconductors will lead to recovery production for theautomobiles industry. This is because Japanese automobiles manufacturers have a considerable
number of backorders and want to shorten their delivery times.
Although they want to move toward recovery production in light of the situation, it will be greatly
affected by whether or not they can procure the necessary parts. However, measures are steadily
being taken, and since companies that manufacture semiconductors for automobiles in Japan are
also increasing production, I believe the situation should gradually improve.

Q&A: Recovery of Electronic Devices
Moderator: We have a question that asks, “When do you expect electronic devices to recover?"Shimizu: This is not my opinion, but based on a comprehensive judgment of what our clients aresaying, although we initially thought that the recovery of semiconductor memory in particular would
start from around June, it may have been delayed by about three months. Therefore, we believe thatthe validity of the recovery after September or October next year is very high.
However, in any case, although there are various things such as the delay in the development of 5G

infrastructure, technology is steadily evolving, so it is safe to say that there will be a shortage ofsemiconductors in memory as well. In the medium to long term, I believe that the trend is likely tocontinue to rise.