2nd Quarter of Fiscal Year Ending March 2024 (FY2024)

Financial Results
Briefing Material“Kabushiki Kaisha Confidence Interworks”(English name: “Interworks Confidence Inc.”)
Securities code ： 7374

Table ofContents

01
02
03
04
05

E xec u t ive S u m m a r y

P. 3

C o m pa n y O ver v iew

P. 7

C o n so lida ted F in a n c ial Resu lt s a n d
S egm en t Resu lt s
P. 1 3D iv iden d D ist r ibu tio n

P. 2 5

P ro gress of G ro w t h St ra tegies／
B u sin ess To p ic s

P. 2 72

01

Executive Summary

Financial Highlights of Q2 FY2024 (Cumulative) As a result of the merger with Interworks on August 1, Q2 FY2024 saw significant year-on-year growth for both revenue and gross profit
 Despite the amortization of goodwill associated with the merger, operating profit continued to increase. The operating profit margin was

17.3%, keeping a high level▍Q2 results

Revenue

Gross profit

Operating profit

3,249 million yen

1,350 million yen

561 million yen

YoY

27.7%

Revenue CAGR

26.9%

YoY

49.5%

Gross profit margin:

41.6%

YoY

12.2%

Operating profit margin:

17.3%* Revenue CAGR is calculated based on actual figures between FY2019 and FY2023.

Copyright© Confidence Inc. All Rights Reserved.

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4

Trends in Revenue / Operating Profit Over the Years Due to the merger with Interworks, Interworks’ business results were consolidated from August onwards
 The progress rate against the full year forecast announced at the time of the announcement of the Q1 FY2024 financial results was 40.6% forrevenue and 50.2% for operating profit, generally as planned

August 2023
Merged with Interworks▍Revenue(Million yen)

9,000

6,000

Established inAugust 2014
2,000

46
FY2015188

FY20162,004

Progressrate◀ 40.6%512

FY2017

2,604

500

335

3,249

69

100

FY2018FY2019

Past
results

FY2020

FY2021

FY2022

FY2023

FY2024Current
fiscalyear

Progressrate◀ 50.2%

604

300

1,140

◀ 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

-100

-6

FY2015-15FY2016FY2017148

FY2018561

174

FY2019

Past
results

FY2020

FY2021

FY2022

FY2023

FY2024Current
fiscalyear

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5

Summary of Dividend Forecast for FY2024
 The full year dividend for FY2024 is expected to be 55 yen, an increase of 7 yen (YoY). The interim dividend was decided at 25 yen, an

increase of 5 yen (YoY) The following is a various indicators related to dividends with an assumption of the current full year forecast▍Trends in dividend per share+7.0 yen

Year-end dividend (current forecast)

55

Interim dividend (Finalized)
Year-end dividend (past results)
Interim dividend (past results)▍Summary of dividend indicator48

Payout ratio

46.4%

FY2023 results

DOE

8.7%

FY2023 results

40
30
28

40

+5.0 yen20

FY2022

FY202325

FY2024

Dividend
yield

35.6%

(Forecast)

12.1%(Forecast)

3.4%(Forecast/estimate:stock price at the endof September)

As of March 31,
2023

2.6%

* EPS, which is the basis for calculating dividend yields, is estimated based on
the full year figures announced for FY 2024.
Copyright© Confidence Inc. All Rights Reserved.

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6

02

Company Overview

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
 The merger generated goodwill of approximately 1.64 billion yen, with amortization of goodwill of approximately 110 million yen (for 8
months) in the current term and approximately 160 million yen in the next term and thereafter.

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.

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8

Company Overview

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.

PROFESSIONAL

CLIENT

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

Local Office

Nagoya │ Osaka │ Fukuoka

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

509 million yen (as of September 30, 2023)

Line ofbusiness

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

1,192 (as of September 30, 2023) [consolidated]

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9

Business Overview│Who We Are

D E V E LO P I N G A S E G M E N T - S P E C I F I C H R B U S I N E S S *Core ValueTe c h n i q u e s a n d t o o l s t h a t a r e c o m m o n l y u s e d a c r o s s i n d u s t r i e s .
HR Solution

Media

Attraction
techniques

Recruitment

Content creation

Matching
techniques
Sales

Communication*HR business: a general term for staffing, recruitment, outsourcing, and media (job ad/media operations)
Copyright© Confidence Inc. All Rights Reserved.

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10

Business Overview│Composition of Revenue

71.4%

HR Solution business (staffing, outsourcing)Composition of revenue

・ Specializing in the gaming andStaffing
Outsourcing
Freelancers
entertainment industries
Staffing and outsourcing services that meet the needs of each phase anddepartment
In April 2023, freelancer matching started. ▶

15.6%

HR Solution business (recruitment)
FY2024

Revenue (Forecast)

8.0

billion yen

・ Cross-industry career-change support services centered on middle- andhigh-class human resources. Recruitment Employment
placement

Recruitment platforms ▶

13.0%

Media & Solutions business・ Specializing in manufacturing and factories throughout Japan
Operation of job change recruitment
Media
Ad salesmedia “Kojo Works”
Media operations ▶

・ Boasting more than 30 years of experience, we are developinga recruitment outsourcing business

Recruitment
support

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11

Business Overview│Segmentation After the Merger
 As a result of the merger, segments and service groups were changed as shown in the figure below, and the new segment groups werereported from the financial results for Q2 FY2024

Before the merger: Segments of each company

After the merger: New segments

Staffing

HR Solution
business

Outsourcing
HR
Solutionbusiness
Recruitment

1

Freelancers

Media businessMediaMediabusiness

Media &
Ad salessolutions business Media business
Recruitment
businessMediabusinessplacement

Hiring support
business

HiringbusinesssupportMedia

Staffing

HR Solution business(Staffing, outsourcing)

HR Solution
Outsourcing
business

HR Solution business(Recruitment)

Recruitment
HR
Solution
Employmentbusinessplacement

Freelancers

2

3
Media

Employment

Media & Solutions business

HR Solution
Ad salesbusiness
Hiring support

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12

03

Consolidated Financial Results andSegment Results

[Consolidated] Financial Highlights of Q2 FY2024 (Cumulative)
 In the first financial results after the merger with Interworks on August 1, 2023, even after posting amortization of goodwill, the company

grew steadily on the basis of operating profit
 Although ordinary profit increased only slightly year on year, it was due to advisory fees related to the merger, and the impact was one-off
until Q2 FY2024▍Q2 results▼ For Interworks, 2-month results (August - September) were recorded.

FY2023(Q2)

FY2024(Q2)

Full-year forecast

YoY(announced on
August 10, 2023)

Progress rate

Revenue

2,544

3,249

+27.7%

8,000

40.6%

Gross profit

903

1,350

+49.5%

3,718

36.3%

35.5%

41.6%

+6.1 pts

46.5%

-

501

561

+12.2%

1,120

50.2%

19.7%

17.3%

-2.4 pts

14.0%-

Ordinary profit

500

510

+2.1%

1,065

48.0%

Profit

339

337

-0.5%

725

46.6%

Reference: EBITDA *

516

599

+15.9%

1,158

51.7%

EBITDA margin

20.3%

18.4%

-1.9 pts

14.5%-

Gross profit margin
Operating profit
Operating profit
margin* EBITDA = Operating profit + (Depreciation + Amortization of goodwill) │ EBITDA margin = EBITDA ÷ Revenue
Copyright© Confidence Inc. All Rights Reserved.

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14

[Consolidated] | Quarterly Results Trends
 As a result of the merger with Interworks, revenue increased significantly in Q2. Even excluding the effects of the merger, the former

Confidence still posted a 10.2% year-on-year increase in revenue Operating profit also saw solid year-on-year growth at 5.6% after reflecting the amortization of goodwill▍Revenue (quarterly trends)(Million yen)

+42.4%: Consolidated

2,000

1,840

1,500

1,000

832 830926▍Operating profit (quarterly trends)

979

1,042 1,052

1,149 1,180

1,250

1,293 1,316 1,336(Million yen)

+5.6%

: Consolidated

282 279

300

264
241

236

1,409

211
200

185

181

161
134

191

180

172

123

100
500

0

Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

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

Q4

Q1

Q2

FY2024

0

Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

FY2023Q4Q1Q2FY2024

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15

[HR Solution Business - Staffing and Outsourcing] Financial Highlights of Q2 FY2024
 The majority of this segment is dominated by the HR Solution business of the former Confidence Inc.
 In our mainstay staffing business, we steadily increased the number of creator staffing assignments and maintained a high level of profitability.

Continued growth was seen in both revenue and segment profit.

▍Q2 results(Million yen)

Revenue *Staffing
Outsourcing andothersGross profit
Gross profit margin
Segment profit
Segment profit margin▼ Figures after forming new segments

FY2023(Q2)

FY2024(Q2)

Full-year forecast

YoY

Progress rate(announced on
August 10, 2023)

2,495

2,760

+10.6%

5,714

48.3%

2,385

2,657

+11.4%

-

-

110

103

-6.5%

-

-

864

962

+11.3%

-

-

34.6%

34.9%

+0.3 pts

-

-

678

728

+7.3%

-

-

27.2%

26.4%

-0.8 pts--* Figures after eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

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16

[HR Solution Business - Staffing] Trends in Major KPIs
 Creator staffing assignments, which serve as the foundation of the Company’s recurring income model, steadily increased by 73 from the endof the same quarter in the previous year The creator utilization rate continued to be at a high level▍Creator staffing assignments+73 people

1,000

800

600

504

529

564

620

630

673

715

▍Utilization days*1 / Utilization rate*2

740

768

775

816

813

Utilization days

848
830

80.0
60.0

99.4% 99.9% 99.7% 99.6% 99.5% 99.2% 99.8% 99.4% 99.6% 99.6%
56.7

54.5

56.9

55.0

56.4

55.7

55.9

55.3

57.3

55.2

100.0%
80.0%
60.0%

40.0

40.0%

20.0

20.0%

0.0

0.0%
Q11Q FY23
Q22Q FY23
Q33Q FY23
Q44Q FY24
Q11Q FY24Q22Q
Q11Q FY23
Q22Q FY23
Q33Q FY23
Q44Q FY23FY23
FY2023
FY2022
FY2024*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

FY21 Q2
FY21 Q3
FY21 Q4
FY21 Q1
FY22 Q2
FY22
Q1
1Q

2Q

3Q

FY20214Q

1Q

2Q

FY22 Q4FY22Q33Q

FY2022

4Q

FY23
Q1
1Q

FY23
Q2
2Q

FY23
Q3
3Q

FY2023

FY23
Q4
4Q

FY24
Q1
1Q

FY24
Q2
2Q

FY2024

0.60
0.55
0.50
0.45

0.60

0.55
Apr

FY2024

0.63

0.58

0.59

0.57

0.56

0.56

May

Jun

Jul

0.61

0.62

0.54

0.55

Aug

Sep

0.59

0.59

Oct

Nov

0.60

0.60

0.61

Dec

Jan

Feb

0.59

Mar

* Daily average obtained by dividing the average total monthly overtime hours by the average number ofactual utilization days
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17

[HR Solution Business - Recruitment] Financial Highlights of Q2 FY2024
 In this segment, the recruitment business of the former Interworks accounts for a large portion, and performance resulted in a significant year-

on-year increase in revenue and profits for the former Confidence alone Although the contribution of the former Interworks in Q2 was for two months, the range of revenue generation expanded due to thesignificant strengthening of the recruitment business▍Q2 results（百万円）

Revenue*
Recruitment
Gross profit
Gross profit margin
Segment profit
Segment profit margin▼ Regarding this figure, former Interworks recorded 2-month results (August - September).

FY2023(Q2)

FY2024(Q2)

Full-year forecast

YoY

Progress rate(announced on
August 10, 2023)

21

256

+1083.5%

1,243

20.7%

21

256

+1083.5%

-

-

17

207

+1065.0%

-

-

81.9%

80.6%

-1.3 pts

-

-

6

85

+1252.9%

-

-

29.2%

33.3%

+4.1 pts--* Figures after eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

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18

[HR Solution Business - Recruitment] Trends in Major KPIs
 The number of contracts closed in Q2 has been on a recovery trend from the previous quarter, and the average unit price of the contracts hasremained at a high level While maintaining high productivity, we continue to endeavor to increase revenue by increasing the number of consultants. The number ofconsultants increased to an average of 71 at the end of each month until the end of Q2▍Number of contracts closed and unit price▍Number of consultants (average)

Unit price: Index based on the FY2022 (Q1) at 100(Number ofcontracts)

200(Number of people)

Number of contracts closed
Unit price

100

106

95

132

100

*Calculated based on the average number of consultants at the end of each month.

100

114

101

103

98

147
129

114

105

131

99

133

104

80

: Number of consultants

71

92

140

58

60

136

44

47

40

20

0

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

FY2023Q4Q1Q2FY20240

0

FY2021

FY2022

FY2023

FY2024

Average

Average

Average

Average

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19

[Media & Solutions Business] Financial Highlights of Q2 FY2024
 In this segment, the Media & Solutions business of the former Interworks accounts for a large portion, and performance resulted in asignificant year-on-year increase in revenue and profits for the former Confidence With regard to job advertisements (Kojo Works), we lowered the break-even point by reducing fixed costs to secure stable segment profits▍Q2 results
（百万円）
＊ *
Revenue

Job opening
advertisement
Outsourcing and others
Gross profit
Gross profit margin
Segment profit
Segment profit margin

FY2023(Q2)

FY2024(Q2)

Full-year forecast

YoY

Progress rate(announced on
August 10, 2023)

27

231

+754.4%

1,041

22.2%

-

162

-

-

-

27

68

+153.7%

-

-

21

181

+754.6%

-

-

78.1%

78.1%

±0.0 pts

-

-

13

53

+305.1%

-

-

48.3%

22.9%

-25.4 pts--

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

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20[Media & Solution Business - Job Advertisements] Trends in Major KPIs
 The number of job postings has been recovering since May. An upward trend continued in this quarter The number of business partners also increased by 47 in Q2 compared with Q1. The unit price per customer was on an upward trend

compared with the previous year

▍Number of job postings on Kojo Works▍Kojo Works’ number of trading customers andunit price per customer(No. of jobs posted)(Company)
31,00630,00028,790

Number of trading customers

1,200
27,275959

24,794
22,624 23,392
20,00020,301

Unit price: Index based on the FY2022 (Q1) at 100

22,90521,98922,222

16,942900

23,43919,864

14,970

812

868

950
844

916

（%）

Unit price per customer
941

300

859

19,405

679

200

726

600

15,436100

10,000

107

108

114

96

105

87

84

89

Q2

Q3

Q4

105
100

FY2022

FY2023

FY2024

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

0

May

300

0

Q1

Q2

Q3

FY2022Q4Q1

FY2023

Q1

Q2

Q3

Q4

0

FY2024
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21

[Consolidated] Quarterly SG&A Expenses Trends
 Merger with Interworks significantly changed the size and composition of SG&A expenses
 However, we will continue to thoroughly control costs and maintain an organizational structure that generates solid operating profit even after

the merger▍Quarterly trends(Million yen)

Personnel expenses

600

Rent expenses on land and buildings

Taxes and dues

Commission expenses

Depreciation

Other

Amortization of goodwill

553
91

500

27
6
10

400

58

285

300

200

100

0

35

143

143

24
2
6
15
13

26
0
1
4
17
13

149
27
0
2
4
19
13

80

79

82

Q1

Q2

Q3

FY2021

195

188

37
2
4
30
13

32
2
9
32
13

105

Q4

176

187

32
2
5
24
13

35
7
5
27
13

98

98

98

Q1

Q2

Q3

FY2022

231
34
17
11
33
14

212
34
17
7
30
15

189

219
34
6
7
34
16

31
2
7
29
15

118

105

103

119

Q4

Q1

Q2

Q3

FY2023

60
9
9
38
17

150

Q4

234
37
4
9
37
18

324

126

Q1

Q2

FY2024
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22

[Consolidated] Factor Analysis of Increase/Decrease in Operating Profit (YoY) As a result of the merger, Interworks’ gross profit/expense were added. In addition, although amortization of goodwill from Q2 FY2024 was incurred,

we secured an increase in profits by offsetting increase in costs through the introduction of Interworks, the contribution of media and solutions togross profits, and the optimization of back-office expenses through the merger. The same trend is expected to continue in Q3 and beyond.
(Million yen)

Gross profit

SG&A expenses

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23

[Consolidated] Balance Sheets/Statements of Cash Flows As a result of the merger, cash and deposits increased by 1.60 billion yen, net assets by 3.68 billion yen, and total assets by 3.87 billion yen

compared with the end of the previous fiscal year (goodwill: 1.62 billion yen)
 Net cash was 3.64 billion yen, and the equity ratio was 84.2%, ensuring high financial stability▍Balance sheets at end of Q2 FY2024▍Cash flows for Q2 FY2024（Million yen）

(Million yen)

Current liabilities

1,049

Cash and deposits

3,648

Other current assets

869

Goodwill

1,622

Non-current assets(Excluding goodwill) 622

Net assets

5,712

Share capital

Capital surplus
Retainedearnings

Treasury shares

Share acquisitionrightsBalance of cash and deposits as of March 31, 2023

2,047

Cash flows from operating activities+407

Cash flows from investing activities-29

Cash flows from financing activities *-156

Increased amount in cash and deposits due to merger+1,3783,882 million yen

Increase/decrease in cash and deposits+1,6001,312 million yen

Balance of cash and deposits as of September 30, 2023

509 million yen-6 million yen
15 million yen

*

3,648

Dividends paid: -129 million yen, repayments of borrowings: -22 million yen,other, net: -4 million yen

Financial indicators
Net cash3.64 billion yen

Equity ratio

84.2%

ROE (Reference) *18.8%* Net profit, which is the basis for calculating ROE, is estimated based on the full year figuresannounced for FY2024
Copyright© Confidence Inc. All Rights Reserved.

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24

04

Dividend Distribution

Summary of Dividend Forecast for FY2024
 The full year dividend for FY2024 is expected to be 55 yen, an increase of 7 yen (YoY). The interim dividend was decided at 25 yen, an

increase of 5 yen (YoY) The following is a various indicators related to dividends with an assumption of the current full year forecast▍Trends in dividend per share+7.0 yen

Year-end dividend (current forecast)

55

Interim dividend (Finalized)
Year-end dividend (past results)
Interim dividend (past results)▍Summary of dividend indicator48

Payout ratio

46.4%

FY2023 results

DOE

8.7%

FY2023 results

40
30
28

40

+5.0 yen20

FY2022

FY202325

FY2024

Dividend
yield

35.6%

(Forecast)

12.1%(Forecast)

3.4%(Forecast/estimate:stock price at the endof September)

As of March 31,
2023

2.6%

* EPS, which is the basis for calculating dividend yields, is estimated based on
the full year figures announced for FY 2024.
Copyright© Confidence Inc. All Rights Reserved.

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26

05

Progress of Growth Strategies/
Business Topics

Progress in Growth Strategies/Business Topics▍Business topic summary [2023]

Make equity investment
in Protagonist Inc., whichworks on Web 3.0 × HR
Tech

FY2024

Hosting “Web3
Connections Tokyo”

Jan. 19, 2023

Launched a nurturingtype HR solution service
in the digital marketing
field

Established aconsolidated subsidiary“Confidence Pro”
specializing in freelance
matching

Invested in Indigames(offshore gamedevelopment, 3DCG
contracting, etc.)

Mar. 22, 2023

Apr. 3, 2023

Sep. 7, 2023

Feb. 13, 2023

Jan. 20, 2023
In collaboration with
Glossom and the
Nishinippon Shimbun, we
started DX support inregional areas throughdigital talents development

Mar. 1, 2023
Opened Fukuoka Branchand strengthened
support for DX marketing
areas

Mar. 28, 2023
Formed a businessalliance with Beaglee tostrengthen its creative
production support andmarketing businessspecializing in thegaming industry

Aug. 1, 2023
Started as a new
integrated company“Interworks Confidence
Inc.”

Held “Game DX Forum”
in collaboration with
GREE Advertising

Oct. 24, 2023

Oct. 17, 2023
Joint development of agame planner training
course with Precious
Analytics

Copyright© Confidence Inc. All Rights Reserved.

|28

Growth Strategy: Expand Matching Solutions
Press release dated September 7, 2023

Expansion of matching solutions

Expand into new business areas
Web3.0Metaverse

Other areas•Investment in Indigames, which handles offshore
game development and 3DCG contracting▍Overview of Indigames, Inc.
A game development company that is expanding its gamebusiness globally Gaming business such as hyper-casual games, live
gaming, and NFTs CG production business utilizing Vietnam offshore Game engine business utilizing Python▍Purpose of investment
 Collaboration with Indigames, which has advanced
CG artists and engineers at its base in Vietnam
and a wealth of experience in contracting
 Expansion of the scope of responding to theoutsourcing needs of domestic business partners
 Securing and expanding the scale of global techtalents
Copyright© Confidence Inc. All Rights Reserved.

|29

Growth Strategy: Enhance Business Management Efficiency by Establishing an Ecosystem

Enhancement of business
management efficiency

HR

Media

Outsourcing

by establishing an ecosystem
HR Solution

××

Held Game DX ForumMedia• Customer network cultivated through the HR
Solution business for the gaming industry-Games & EntertainmentNumber of corporate clients(cumulative)

Press release dated September 29, 2023

More than230

companies* Compiled based on the actual data through FY2023• Our media “GAMEMO”

×• DX support in collaboration
with Glossom (a GREE subsidiary)• In the future, we will continue to hold similar events tocontribute to the development of the gaming industry
and related markets
Copyright© Confidence Inc. All Rights Reserved.

|

30

Appendix.

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.

|

32

[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.

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33

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.

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34

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.