1st Quarter of Fiscal Year Ending March 2024 (FY2024)

Financial Results Briefing MaterialInterworks Confidence Inc.
（Former name: Confidence Inc. ）Securities code: 7374

Table ofContents

01

P.3

02

Executive Summary

Company
Overview

04

05

P. 21

Overview ofMergerAgreement

P. 9

03

P. 12

Consolidated Financial
Results and Segment Results

P. 24

The consolidated earnings forecast
and dividend forecast
for FY2024
Copyright© Confidence Inc. All Rights Reserved.

|

2

01

Executive Summary

Copyright© Confidence Inc. All Rights Reserved.

|

3

Financial Highlights of Q1 FY2024[Operating Results of Former Confidence Inc.]

 New record-high figures achieved in revenue as well as profits at respective stages for Q1 FY2024
 Achieved year-on-year growth of 12.7% in revenue and 19.6% in operating profit▍Q1 results (operating results of former Confidence Inc.)

Revenue

Gross profit

1,409 million yen

517 million yen
Gross profit margin:

36.7%+12.7%
YoY+15.1%
YoY

Staffing
assignments

Operatingprofit+62

830 people

from Q1

282 million yen+19.6%FY2023Operating profit margin:

20.1%

YoY

Copyright© Confidence Inc. All Rights Reserved.

|

4

Merger with Interworks, Inc. (as of August 1, 2023)
 The new company, Interworks Confidence Inc. (securities code: 7374), started operations on August 1, 2023, with prior approval and resolution

on the merger made at the general meeting of shareholders of each company

Since August 1, 2023

New
company(English name: Interworks Confidence Inc.)

Absorbing andsurviving company

Merger ratio
1

:

0.205

Absorbed anddissolving company

Absorption-type merger
Copyright© Confidence Inc. All Rights Reserved.

|

5

Summary of Earnings Forecast for FY2024 Ending March 2024
 Based on the merger with Interworks, the earnings forecast for FY2024 projects revenue of 8.0 billion yen (up 53.9% year on year) Operating profit is projected to be 1.12 billion yen (operating profit margin: 14.0%) after reflecting amortization of goodwill associated withthe merger (*includes expected profit of former Interworks for the 8 months from August 2023 to March 2024)▍Full-year earnings forecast for FY2024

Revenue

8.0 billion yen▍Breakdown of revenue by element+53.9%For 8 months

For 12 months

YoY

Revenue

Operatingprofit1.12 billion yen

Operating profit margin:

14.0%

8.0 billion yen+20.0%YoY* As the Company merged with Interworks, Inc. on August 1, 2023, thefull-year earnings forecast includes estimated revenue and profit figuresof former Interworks for 8 months.

Former Interworks

Media & solutions business

Recruitment
business

Hiring support
business

Former Confidence

HR Solution
businessMediabusiness

Copyright© Confidence Inc. All Rights Reserved.

|

6

Trends in Revenue / Operating Profit Over the Years
 Progress rate against the earnings forecast announced today stood at 17.6% for revenue (24.1% in FY2023) / 25.2% for operating profit (27.8% in FY2022)
 The Q1 results are for Confidence (before merger) alone, and the figures of Interworks will be included in August and thereafter. In consideration of this,the progress rate in Q1 was as solid as planned

August 2023
Merged with Interworks▍Revenue(Million yen)

9,000

6,000

Established inAugust 2014
2,000

46
FY2015188

FY20162,004
512

FY20172,604

Progressrate◀ 17.6%
1,409

FY2019

Past
results

FY2020

FY2021

604

500

1,140

FY2018◀ Forecast

933

700

3,569

3,000

1,100

1,120

745

4,425

4,000

+25.2%

900

5,197

5,000

0

◀ Forecast+17.5%

7,000

1,000

1,300

8,000

8,000

+20.0%(Million yen)

+53.9%

10,000▍Operating profit

FY2022

FY2023

FY2024Current
fiscal
year

335
300

69

100

-100

-6

FY2015-15FY2016FY2017148

Progressrate◀ 25.2%

174
282

FY2018FY2019

Past
results

FY2020

FY2021

FY2022

FY2023

FY2024Current
fiscalyear

Copyright© Confidence Inc. All Rights Reserved.

|

7

Summary of Dividend Forecast for FY2024
 A dividend of 55.0 yen per share (including an interim dividend of 25.0 yen per share) is planned to be paid for FY2024 ending March 2024

▍Full-year earnings forecast for FY2024▍Trends in dividend per share

Year-end dividend (current forecast)

Dividend
per share

55.0 yen(including interim

dividend of 25.0 yen)Interim dividend (current forecast)+14.6%
YoY

Year-end dividend (past results)
Interim dividend (past results)

48+14.6%

55

40
30
28

Payout
ratio

46.4%

FY2023
results

40

35.6%

20

FY2022

FY202325

FY2024

Copyright© Confidence Inc. All Rights Reserved.

|

8

02

Company Overview

Copyright© Confidence Inc. All Rights Reserved.

|

9

Company Overview of Interworks Confidence Inc.
(Former name: Confidence Inc.)

VisionEmpowering Professionals to
Create the Future Together
Our goal is to help many professionals achieve their dreams
in a society that values diversity, and to make a positive
impact on their companies, industries and society, creating asociety with endless opportunities.

Company
nameKabushiki Kaisha Confidence Interworks (English name: Interworks Confidence Inc.)

Representative

Nobuyuki Takushi, President

Established

August 2014

Head office

BYGS Shinjuku Bldg. 10F
2-19-1 Shinjuku, Shinjuku-ku, Tokyo

Consolidated
subsidiary

Dolphin Inc.

Officers

Confidence Pro Inc.

President

Nobuyuki Takushi

Senior Managing
Director

Takuro Yoshikawa

Managing Director

Masatsugu Kudo

Director

Koji Nagai

Outside Director

Reona Amemiya

Outside Director

Midori Mizutani

Outside Director

Hirofumi Miki

Outside Director

Tomonori Hayakawa

Outside Auditor

Takashi Yachi

Outside Auditor

Tadahiko Yasukuni

Outside Auditor

Kenya Fujimori

Outside Auditor

Yoshinori Maruta

Paid-in capital

508 million yen (as of June 30, 2023)

Line ofbusiness

HR solution business (staffing, outsourcing, recruitment), Media & solutions businessNo. ofemployees

971 (as of June 30, 2023) [consolidated] *Figures for the former Confidence Group alone

Copyright© Confidence Inc. All Rights Reserved.

|

10

Business Overview of Interworks Confidence Inc.
 Confidence’s mainstay staffing business and Interworks’ mainstay job opening advertisement business and recruitment business are areas having very high affinity
 Leverage the business areas where the two companies have strengths in the HR Solution and Media businesses to broaden the service lineups, and endeavor to expand

business through cross-selling

HR Solution businessMedia business

Staffing

Media operations• Industry-specificstaffing• Curation websites
operation• Freelancer matching

Job opening advertisement

Recruitment

Digital marketing• Career-changing
and job opening
media• Industry-specificrecruitment

Outsourcing• QA and debugging• Hiring support andhiring services• Human resource
development andeducation

Outsourcing• Social media
operations• Advertising
operation services

Copyright© Confidence Inc. All Rights Reserved.

|

11

03

Consolidated Financial Results andSegment Results
Copyright© Confidence Inc. All Rights Reserved.

|

12

[Consolidated] Financial Highlights of Q1 FY2024[Financial Results of Former Confidence Inc.]

 Revenue and respective profits continued to grow steadily from the year-earlier period Ongoing growth while maintaining high profit margins with gross profit margin at 36.7% (target: over 30%) and operating profit margin at

20.1% (target: over 15%）

▍Q1 results
FY2023(Q1)

FY2024(Q1)

YoY

Full year forecast(announced on
August 10, 2023)

FY2023(Full year)

Progress rate

Revenue *

1,250

1,409

+12.7%

8,000

17.6%

5,197

Gross profit

449

517

+15.1%

3,718

13.9%

1,841

Gross profit
margin

35.9%

36.7%

+0.8 pts

46.5%

-

35.4%

Operating profit

236

282

+19.6%

1,120

25.2%

933

18.9%

20.1%

+1.2 pts

14.0%

-

18.0%

Ordinary profit

236

245

+4.0%

1,065

23.1%

927

Profit

156

167

+7.3%

725

23.1%

617

Operating profit
margin* Figures after eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

|

13

[Consolidated] Quarterly Results Trends by Business[Financial Results of Former Confidence Inc.] Achieved record-high figures both in revenue and operating profit in Q1 to continue the upward trend, driven by the strong growth of the

HR Solution business, our mainstay business▍Revenue (quarterly trends)(Million yen)

： HR Solution business

1,500

1,000

： Media business

832
24

830
12

500
808

0

817

926
14

979
20

1,042 1,052
17▍Operating profit (quarterly trends)+12.7%

1,149
24

1,180
16

1,250
16

1,293 1,316
28

15

1,3361,409
17

16(Million yen)

： HR Solution business300： Media business

200

161

912

958

1,024

1,034

1,125

1,163

1,234

1,318

100
159

Q1 FY21.3
Q2 FY21.3
Q3 FY21.3
Q4 FY22.3
Q1 FY22.3
Q2 FY22.3
Q3 FY22.3
Q4 FY23.3
Q1 FY23.3
Q2 FY23.3
Q3 FY23.3
Q4 FY24.3
Q1
FY21.3
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q

FY2021

FY2022134

FY2023* Figures after eliminating internal sales within the consolidated companies are indicatedFY2024

0

0

172

133

180

170

2

3

0

2

206

3

241

180

4

186

282

191

123

0

1,392

181

-1

4

6

-4

211

185
1

1,301

264
236

18

1,265

+19.6%

240

258

279
238
187

180

118

Q1 FY21.3
Q2 FY21.3
Q3 FY21.3
Q4 FY22.3
Q1 FY22.3
Q2 FY22.3
Q3 FY22.3
Q4 FY23.3
Q1 FY23.3
Q2 FY23.3
Q3 FY23.3
Q4 FY24.3
Q1
FY21.3
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q

FY2021

FY2022

FY2023

FY2024

Copyright© Confidence Inc. All Rights Reserved.

|

14

[HR Solution Business] Financial Highlights of Q1 FY2024[Financial Results of Former Confidence Inc.]

 Revenue and segment profit grew steadily, with the number of creator staffing assignments increasing and the profit margin kept at a high level▍Q1 results
FY2023(Q1)(Million yen)

Revenue＊

FY2024
(Q1)

1,240

1,392

+12.3%

5,138

444

507

+14.3%

1,801

35.8%

36.4%

+0.6 pts

35.1%

372

403

+8.2%

1,433

30.0%

29.0%

-1.0 pts

27.9%

Gross profit
Gross profit margin
Segment profit
Segment profit margin

FY2023(Full year)

YoY* Figures after eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

|

15

[HR Solution Business] Trends in Major KPIs
[Financial Results of Former Confidence Inc.] Creator staffing assignments, which serve as the foundation of the Company’s recurring income model, steadily increased, although

they slightly stagnated in Q4 FY2023, rising by 62 people from the year-earlier period The utilization rate has been kept at a high level since last year

▍Creator staffing assignments▍Utilization days*1 / Utilization rate*2+62 people

Utilization days

1,000

800

600

504

529

564

620

630

673

715

740

768

775

816

813

830

80.0
60.0

99.4%

99.9%

99.7%

99.6%

99.5%

99.2%

99.8%

99.4%

99.6%

56.7

54.5

56.9

55.0

56.4

55.7

55.9

55.3

57.3

60.0%
40.0%

20.0
0.0

100.0%
80.0%

40.0

20.0%
Q11Q
FY23

Q22Q FY23Q33Q
FY23
FY2022

Q44Q
FY23

Q11Q
FY23

Q2 2Q FY23
Q33Q
FY23
FY2023

Q4 4Q
FY23

Q11Q
FY24
FY20240.0%*1 Quarterly total of the number of days arrived at by dividing the total number of days worked by each
person on a monthly basis by the number of utilized persons at the end of the month*2 The ratio obtained by dividing the total number of utilized staff at month end by the total number of staff
that can be utilized at month end

400▍Trends in average daily overtime hours*

200

FY20230.65

0Utilization rate

0.60
FY21
Q1 1QFY21
Q2 2QFY21
Q3 3QFY21
Q4 4QFY22
Q1 1QFY22
Q2 2QFY22
Q33QFY22
Q4 4QFY23
Q11QFY23
Q22QFY23
Q33QFY23
Q44QFY24
Q11Q

FY2021

FY2022

FY2023

FY2024

0.55
0.50

0.60

0.55
Apr

FY2024
0.63
0.58
0.57
May

0.59

0.61

0.62

Aug

Sep

0.59

0.59

Oct

Nov

0.60

0.60

Dec

Jan

0.61

0.59

0.56
Jun

Jul

Feb

Mar

* Daily average obtained by dividing the average total monthly overtime hours by the average number ofactual utilization days
Copyright© Confidence Inc. All Rights Reserved.

|

16

[Media Business] Financial Highlights of Q1 FY2024[Financial Results of Former Confidence Inc.] As our policy for the Media business, we aim to establish and expand the ecosystem through collaboration with the HR Solution business, after securing profitability ofthe business as a minimum requirement

 As we do so, revenue remained at the same level as the year-earlier period while segment profit turned profitable, although the impact on consolidated results islimited▍Q1 results(Million yen)

FY2023(Q1)

FY2024(Q1)

FY2023(Full year)

YoY

Revenue *

16

16

-0.7%

77

Gross profit

49+93.0%

39

30.2%

58.8%

+28.6 pts

51.5%

-2

4

-

18

-16.5%

29.2%

-

24.1%

Gross profit margin
Segment profit
Segment profit margin* Figures before eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

|

17

[Consolidated] Quarterly SG&A Expenses Trends[Financial Results of Former Confidence Inc.]

 In line with the revenue growth, made investments to prepare for future growth, taking account of our target profit margin ➡ appropriately

controlled SG&A expenses▍Quarterly trends(Million yen)

300

*1

Personnel expenses

Rent expenses on land and buildings

Taxes and dues

Commission expenses

Depreciation

Other

250

200

150

143
24

100

2

15
6
13

149

143

27

26

2

1

19
4
13

17
4
13

0

80

79

82

Q1

Q2

Q3

FY2021

37
2

188
32
2

30

32

4
13

9
13

187

176

35

32

7

2

27

24

5
13

5
13

34
17
33
11
14

219

212
36
17
29
7
15

189

36

32

6
33

2

28

105

98

98

98

Q4

Q1

Q2

Q3

FY2022

61

234

9

37

36
9
17

7
16

7
15

4
37
9
18

＊1
＊1

＊1

＊1

50

285
231

195

Includes provision for performance bonus(15 million yen for FY2021 / 16 million yen for FY2022 / 23 million yen for FY2023)

118

Q4

105

103

Q1

Q2

119

FY2023

Q3

150

Q4

126

Q1

FY2024

Copyright© Confidence Inc. All Rights Reserved.

|

18

[Consolidated] Factor Analysis of Increase/Decrease in Operating Profit (YoY)[Financial Results of Former Confidence Inc.] Gross profit increased steadily along with business expansion, contributing to larger operating profit

 Moreover, recruited head office employees and took measures in line with enhanced recognition of the Company toward achieving continuous growth(Million yen)

Gross profit

SG&A expenses

Copyright© Confidence Inc. All Rights Reserved.

|

19

[Consolidated] Balance Sheets/Statements of Cash Flows [Financial Results of Former Confidence Inc.] There is no concern about financial stability (net cash: 1.97 billion yen / equity ratio: 72.6%)
 All borrowings have been fully repaid by the end of May 2023

▍Balance sheets at end of Q1 FY2024▍Cash flows for Q1 FY2024(Million yen)

（Million yen）

Balance of cash and deposits as of March 31, 2023

Other current liabilities

761

Cash and deposits

1,972

Net assets

2,064

Other current assets

629

Non-current assets

223

Share capital

Capital surplus
Retainedearnings

Treasury shares

Share acquisitionrights

508 million yen
1,142 million yen-0 million yen
12 million yen

Cash flows from operating activities+85

Cash flows from investing activities-9

Cash flows from financing activities *-150

Increase/decrease in cash and deposits-75

Balance of cash and deposits as of June 30, 2023

400 million yen
*

2,047

1,972

Dividends paid: -129 million yen, repayments of borrowings: -22 million yen,other, net: +1 million yen

Financial indicators
Net cashEquity ratio

1.97 billion yen
72.6%

Copyright© Confidence Inc. All Rights Reserved.

|

20

04

Overview of Merger Agreement

Copyright© Confidence Inc. All Rights Reserved.

|

21

Merger with Interworks, Inc. (as of August 1, 2023)
 The new company, Interworks Confidence Inc. (securities code: 7374), started operations on August 1, 2023, with prior approval and resolution

on the merger made at the general meeting of shareholders of each company

Since August 1, 2023

New
company(English name: Interworks Confidence Inc.)

Absorbing andsurviving company

Merger ratio
1

:

0.205

Absorbed anddissolving company

Absorption-type merger
Copyright© Confidence Inc. All Rights Reserved.

|

22

Background and Purpose of the Business Integration▍Purpose of business integration

1

2

3

Press release dated May 12, 2023

Expanding the business areas of the HR Solution business /achieving business growth through cross-selling
Reinforcing the Media business
Strengthening business management foundation andreducing administration costs

Copyright© Confidence Inc. All Rights Reserved.

|

23

05

The consolidated earnings forecast anddividend forecast for FY2024
Copyright© Confidence Inc. All Rights Reserved.

|

24

Projection of Future Growth In addition to the steady growth achieved by Confidence alone since its listing, the merger has increased the bases that drive revenue Through the process of expanding the business scale, aim to transform ourselves into an enterprise that can compete with companies already listed on the

TSE Prime market

Expand HR
solution services

Expand the covered businessareas and industries

Business development with a fullline-up of services· Staffing· Outsourcing· Recruitment· Job opening
advertisement

Organic growthof existing
businesses

Accelerate
further growththrough M&A

Expand the base ofrevenue through themergerUpon listing on the
TSE Mothers

3.5 billion yen
Established inAugust 2014

Actual results

5.2 billion yen
Present

Future* 5-year CAGR (actual) of revenue from FY2019 to FY2023: 26.9%
Copyright© Confidence Inc. All Rights Reserved.

|

25

[Consolidated] Summary of Earnings Forecast/ Dividend Forecast for FY2024
 The following is a summary of earnings forecast and various indicators of Interworks Confidence Inc. for FY2024 ending March 2024
 Estimated by factoring in the impact of integration-related expenses that will temporarily accrue as a result of the merger and amortization of goodwill, etc.
* As the Company merged with Interworks, Inc. on August 1, 2023,
the full-year earnings forecast includes estimated revenue and profit
figures of former Interworks for 8 months.

▍Full-year earnings forecast for FY2024
FY2022(formerly Confidence)

FY2023(formerly Confidence)

YoY

FY2024(Interworks Confidence)(vs. former
Confidence)

Revenue(million yen)

4,425

5,197

8,000

+53.9%

Gross profit(million yen)

1,528

1,841

3,718

+102.0%

(%)

34.5%

35.4%

46.5%

+11.1 pts

745

933

1,120

+20.0%

16.8%

18.0%

14.0%

-4.0 pts

Gross profit margin
Operating profit
Operating profit
margin(million yen)(%)

Ordinary profit(million yen)

737

927

1,065

+14.8%

Profit(million yen)

530

617

725

+17.3%

Basic earnings per share(yen)

118.19134.80118.58-Dividend per share

(yen)

40.0

48.0

55.0

+14.6%
Copyright© Confidence Inc. All Rights Reserved.

|

26

Assumptions Underlying the Preparation of Earnings Forecast▍Target indicators for earnings forecast and dividend forecast
for FY2024▍Assumptions underlying the preparation of earnings forecast
for FY2024

Target indicators

Assumptions underlying the preparation of earnings forecast

Growthindicator

Revenue
growth rate

15% - 20%

• As the merger becomes effective on August 1, 2023, the underlying figures offormer Interworks are the balance of assets and liabilities at the end of July 2023
and the revenue and profit figures for the 8 months from August 2023 to March
2024• Expenses temporarily accruing through the integration and amortization of
goodwill are factored in
Q1
Apr

Profitability
indicator

Shareholder
returnindicator

Operatingprofit margin(excluding
amortization of
goodwill)

Over

15%

May

Q2
Jun

Jul

Aug

Q3
Sep

Oct

Nov

Q4
Dec

Jan

Feb

Mar

12
months8months• Finalize the balance of assets and liabilities succeeded by Confidence• Calculate the total amount of goodwill
Accounting treatment and policy of goodwill

Payout ratio

Over

30%

• The accounting treatment for the calculation of goodwill (including theidentification of intangible assets) will be finalized in Q2 after discussing with
the independent auditor• As for amortization of goodwill, the impact for FY2024 is estimated undercertain assumptions and factored in the earnings forecast

Copyright© Confidence Inc. All Rights Reserved.

|

27

Empowering Professionals to Create the Future Together
Inquiries about this material: IR staff, Finance and Planning Division （ir@ciw.jp）
Handling of this material
This material includes forward-looking statements. These are nothing but the statements prepared on the basis of the information available at the time of preparing them. Moreover,such statements are not a guarantee of future results, and contain risks and uncertainties. Please note that actual results may differ significantly from future forecasts due to changes
in the business environment and other factors. Factors that may affect the actual results mentioned above include, but are not limited to, economic conditions in and outside Japanand trends of the industries related to the Company.
In addition, the information contained in this material and related to matters other than the Company has been quoted from publicized information. The Company has made no
verification about the accuracy and appropriateness, etc. of such information, and provides no guarantee about it.