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

Summary of Consolidated Financial Results
for the First Three Quarters of the Fiscal Year Ending March 2023
(Based on Japanese GAAP)
February 9, 2023
Company name: Confidence Inc.

Listing exchange: Tokyo Stock Exchange

Securities code: 7374

URL: https://confidence-inc.jp

Representative: Nobuyuki Takushi, President
Inquiries:Koji Nagai, Director and General Manager, Administration DivisionScheduled date for filing quarterly securities report:

Phone: +81-3-5312-7700

February 9, 2023

Scheduled date for commencing dividend payments: Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefing session:

No(Amounts are rounded down to the nearest million yen, unless otherwise noted)
1. Consolidated Financial Results for the First Three Quarters(April 1, 2022 to December 31, 2022) of the Fiscal Year Ending March 31, 2023
(1) Consolidated Operating Results (Cumulative)(Percentage figures represent year-on-year changes)
Profit attributable toRevenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
First three quarters ended
3,861 19.0
742 31.3
741 32.8
503 23.0
December 31, 2022
First three quarters ended
3,244 25.3
565 17.5
558 16.5
409 27.8
December 31, 2021
(Note) Comprehensive income
First three quarters ended December 31, 2022: 503 million yen [23.0%]
First three quarters ended December 31, 2021: 409 million yen [27.8%]
Basic earnings per shareDiluted earnings pershareYenYen
First three quarters ended
109.92106.54
December 31, 2022
First three quarters ended
91.58
87.47
December 31, 2021
(Note) Diluted earnings per share for the first three quarters ended December 31, 2022 is calculated by using the average share pricefor the period from the initial listing date to the end of the said quarters, deeming it to be the period-average share price, as
the Company was listed on the Tokyo Stock Exchange Mothers market on June 28, 2021.
(2) Consolidated Financial Position
Total assets
As of December 31, 2022As of March 31, 2022
(end of previous fiscal year)(Reference) Total shareholders’ equity
As of December 31, 2022:
As of March 31, 2022:

Net assets

Equity ratio

Millions of yen
2,659

Millions of yen
1,889

%
70.7

2,437

1,655

67.6

1,879 million yen
1,648 million yen

2. Cash Dividends
Annual dividends per share
End of 1st quarter End of 2nd quarter End of 3rd quarter
Fiscal year ended March 2022
Fiscal year ending March 2023
Fiscal year ending March 2023
(Forecast)

Yen
––Yen
0.00
20.00

Yen––

Fiscal year-endTotal

Yen
40.00

Yen
40.00

28.00

48.00

(Note) Revisions to the most recently announced dividend forecast: Yes
For the revisions to the dividend forecast, please refer to “Notice Concerning Revisions to Full-Year Earnings Forecast and Dividend
Forecast” (Japanese) announced today (February 9, 2023).
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)(Percentage figures indicate year-on-year changes)
Profit attributable to Basic earnings perRevenue
Operating profit
Ordinary profit
owners of parentshareMillionsofyen%Millionsofyen%
YenMillions of yen% Millions of yen%909 23.2
600 13.0
130.93Full year
5,200 17.5
910 22.1(Note) Revisions to the most recently announced earnings forecast: Yes
For the revisions to the consolidated earnings forecast, please refer to “Notice Concerning Revisions to Full-Year Earnings Forecastand Dividend Forecast” (Japanese) announced today (February 9, 2023).
* Notes(1) Changes in significant subsidiaries during the quarter (changes in specified subsidiaries resulting in change in scope ofconsolidation): No(2) Application of accounting treatments specific to the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
1) Changes in accounting policies due to revisions to accounting standards and other regulations:
No2) Changes in accounting policies other than those in 1) above:No3) Changes in accounting estimates:

Yes

4) Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022
4,585,800 shares As of March 31, 2022
2) Number of treasury shares at the end of the period
As of December 31, 2022
46 shares As of March 31, 2022
3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
First three quarters ended
First three quarters ended
4,582,667 shares
December 31, 2022
December 31, 2021

4,580,400 shares- shares4,470,364 shares* This summary of financial results is not subject to quarterly review procedures by a public accountant or audit corporation.
* Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information currently available
to and certain assumptions that are thought to be reasonable by the Company. Accordingly, such statements should not beconstrued as a guarantee of achieving the results by the Company. Actual financial results and the like may differ materially due tovarious factors.

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
Third quarter ofcurrent fiscal year
(As of December 31, 2022)

Previous fiscal year
(As of March 31, 2022)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

1,724,844
515,231

1,906,497
528,919

Accounts receivable - other
Other

589
27,597791
46,241

2,268,262

2,482,449

34,293(18,645)

46,801(5,203)

15,64841,597

26,151(17,383)

44,584(20,051)

Tools, furniture and fixtures, net

8,767

24,532

Total property, plant and equipment

24,415

66,13011,78917,43114513211,935

17,56449,00883,31927,70464,191618

1,618

132,946

93,513

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, netTools, furniture and fixtures
Accumulated depreciation

Intangible assets
SoftwareTrademark right
Total intangible assets
Investments and other assets
Deferred tax assets
Guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

1

169,297

177,208

2,437,559

2,659,657

(Thousands of yen)
Third quarter ofcurrent fiscal year
(As of December 31, 2022)

Previous fiscal year
(As of March 31, 2022)
Liabilities
Current liabilities
Current portion of long-term borrowings
Accounts payable - other

90,00043,68545,000118,842

Accrued expenses
Income taxes payable

258,920
118,577

289,585
112,409

Accrued consumption taxes
Deposits received

131,543
16,144

111,845
44,497

Refund liabilities
Provision for bonuses

276
100,504203
47,412Other-

330

759,652

770,126

Long-term borrowings
Deferred tax liabilities

22,500-62

Total non-current liabilities

22,50062

782,152

770,189

Share capital
Capital surplus

497,384
389,378498,734
390,728

Retained earnings
Treasury shares

761,274-990,054(83)

1,648,036

1,879,433

7,371

10,034

1,655,407

1,889,468

2,437,559

2,659,657

Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Share acquisition rights
Total net assets
Total liabilities and net assets2(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Statements of Income(Cumulative)(Thousands of yen)First three quarters ofprevious fiscal year
(April 1, 2021 –December 31, 2021)
3,244,960

First three quarters ofcurrent fiscal year
(April 1, 2022 –December 31, 2022)
3,861,482

Cost of sales

2,127,523

2,497,095

Gross profit

1,117,437

1,364,387

Revenue

Selling, general and administrative expenses

551,958

622,138

Operating profit

565,478

742,249

Non-operating income
Interest income

48

Rental income from buildings
Gain on sale of goods

230-Total non-operating income

638Non-operating expenses
Interest expenses

1,353

645

Commission expenses
Share issuance costs

6,008

207
-

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income

7,361

852

558,123

741,435

-

759

-

759

Extraordinary losses
Loss on retirement of non-current assets

-

2,873

Office relocation expenses-

10,157

Total extraordinary losses-

13,031

Profit before income taxes

558,123

729,164

Income taxes - current

126,377

204,084

Income taxes - deferred

22,347

21,366Total income taxes

148,725

225,451

Profit409,398

503,712--409,398

503,712

Profit attributable to non-controlling interests
Profit attributable to owners of parent3

Quarterly Consolidated Statements of Comprehensive Income(Cumulative)(Thousands of yen)First three quarters ofprevious fiscal year
(April 1, 2021 –December 31, 2021)
409,398

ProfitOther comprehensive income
Total other comprehensive income
Comprehensive income

First three quarters ofcurrent fiscal year
(April 1, 2022 –December 31, 2022)
503,712--409,398

503,712409,398

503,712--Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests4(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.

(Notes in Case of Significant Changes in the Amounts of Shareholder’s Equity)
Not applicable.
(Change in Accounting Estimate)(Change in estimated useful life)
The Company made a resolution at its Board of Directors’ meeting held on November 10, 2022 regarding the relocation ofthe QA studio for its outsourcing business. In association with this, the useful life of non-current assets that are unlikely to
be used after the relocation has been shortened, which will be applied prospectively.
Moreover, by revising the estimate for the cost of restoration to the original state, the Company reasonably estimated theamount of security deposits deemed to be ultimately uncollectible, and recognized the amount attributable to the first threequarters of the current fiscal year as expenses.
As a result of this change in the estimate, operating profit, ordinary profit and profit before income taxes for the first threequarters of the current fiscal year decreased by 2,816 thousand yen, respectively, compared with the previous estimate
method.
(Segment Information, Etc.)[Segment information]
I. First three quarters of the previous fiscal year (April 1, 2021 – December 31, 2021)
Information on revenue and profit or loss by reportable segment
Reportable segment
HR Solution
businessMediabusiness

Total(Thousands of yen)Amount recordedin quarterly
Adjustments
statements of(Note 1)
income(Note 2)

Revenue
Sales to outside customers
Inter-segment sales ortransfers
Total
Segment profit

3,184,741

60,2183,244,960-

3,244,960

3,621

-

3,621

(3,621)-

3,188,363

60,2183,248,582(3,621)

3,244,960

844,878

12,154

857,032(291,554)

565,478(Notes) 1. Adjustments of segment profit (-291,554 thousand yen) include corporate expenses of 291,554 thousand yen thatare not allocated to each reportable segment.
2. Segment profit has been adjusted with the operating profit in the Quarterly Consolidated Statements of Income.
II. First three quarters of the current fiscal year (April 1, 2022 – December 31, 2022)
Information on revenue and profit or loss by reportable segment
Reportable segment
HR SolutionbusinessMediabusiness

Total(Thousands of yen)Amount recordedin quarterly
Adjustments
statements of(Note 1)
income(Note 2)

Revenue
Sales to outside customers
Inter-segment sales ortransfers
Total
Segment profit

3,801,916

59,566

3,861,482-

3,861,482

14,251-

14,251(14,251)-

3,816,167

59,566

3,875,734(14,251)

3,861,482

1,085,439

11,775

1,097,214(354,965)

742,249(Notes) 1. Adjustments of segment profit (-354,965 thousand yen) include corporate expenses of 354,965 thousand yen thatare not allocated to each reportable segment.
2. Segment profit has been adjusted with the operating profit in the Quarterly Consolidated Statements of Income.
(Significant Subsequent Events)
Not applicable.
5