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 Fiscal Year Ended March 2023
(Based on Japanese GAAP)May 12, 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 Division
Scheduled date for next ordinary general meeting ofJune 28, 2023
shareholders:
Scheduled date for filing securities report:
June 29, 2023

Phone: +81-3-5312-7700

Scheduled date for commencing dividend payments: June 14, 2023
Preparation of supplementary materials on financial results:

Yes

Holding of financial results briefing session:

Yes(Amounts are rounded down to the nearest million yen, unless otherwise noted)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(Percentage figures represent year-on-year changes)
Profit attributable to
Revenue
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Fiscal year ended
5,197 17.5
933 25.2
927 25.7
617 16.4
March 31, 2023
Fiscal year ended
4,425 24.0
745 23.3
737 22.3
530 32.9
March 31, 2022
(Note) Comprehensive income
Fiscal year ended March 31, 2023:
617 million yen [16.4%]
Fiscal year ended March 31, 2022:
530 million yen [32.9%]
Basic earnings per Diluted earnings per
Return on equity
share
share

Ratio of ordinary
Ratio of operating
profit to total
profit to net sales
assets
%
%

Yen
Yen
%
Fiscal year ended
134.80130.84
33.8
34.8
18.0
March 31, 2023
Fiscal year ended
118.19113.13
46.5
37.0
16.8
March 31, 2022
(Reference) Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 2023: - million yen
Fiscal year ended March 2022: - million yen(Note) Diluted earnings per share for the fiscal year ended March 31, 2022, is calculated by using the average share price for the period
from the initial listing date to the end of the said fiscal year, deeming it to be the period-average share price, as the Company
was listed on the Tokyo Stock Exchange Mothers (currently Growth) market on June 28, 2021.
(2) Consolidated Financial Position
Total assets
As of March 31, 2023
(end of current fiscal year)
As of March 31, 2022
(end of previous fiscal year)(Reference) Total shareholders’ equity
As of March 31, 2023:
As of March 31, 2022:

Net assets

Net assets per share

Equity ratio

Millions of yen

Millions of yen

%

Yen

2,892

2,023

69.6

435.27

2,437

1,655

67.6

359.802,012 million yen
1,648 million yen

(3) Consolidated Cash Flows

Millions of yen

Millions of yen

Millions of yen

Cash and cash
equivalents at end of
periodMillions of yen

748

(82)

(343)

2,047

461

(64)

387

1,724

Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

2. Cash Dividends
End of
1stquarter
Yen

Annual dividends per share
End of
End ofFiscal2nd
3rdyear-endquarter quarter
Yen
Yen
Yen

Total

Total cash
dividends(Total)Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen%%
Fiscal year ended
–
0.00
–
40.00
40.00
183
33.8
15.7
March 31, 2022
Fiscal year ended
–
20.00
–
28.00
48.00
221
35.6
12.1
March 31, 2023
Fiscal year ending
–
–
–
–
–
–
March 31, 2024 (Forecast)(Note) Since the Company plans to conduct business integration with Interworks, Inc. as of August 1, 2023, the dividend forecast for
the fiscal year ending March 31, 2024, is undetermined at this point in time.
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)(Percentage figures indicate year-on-year changes)
Profit attributable to Basic earnings per
Revenue
Operating profit
Ordinary profit
owners of parent
share% Millions of yen%
Yen
Millions of yen% Millions of yen% Millions of yen
First two quarters
–
–
–
–
–
–
–
–
–
(cumulative)
Full year
–
–
–
–
–
–
–
–
(Note) As announced in the “Notice Concerning Conclusion of Merger Agreement between Confidence Inc. and Interworks, Inc.” dated
May 12, 2023, the Company resolved at its board of directors’ meeting held on May 12, 2023, to conduct business integrationof the two companies effective on August 1, 2023 (planned), and concluded a merger agreement regarding the absorptiontype merger with the Company as the absorbing and surviving company and Interworks, Inc. as the absorbed and dissolving
company (the “Merger”). The Merger is subject to approval at the general meeting of shareholders of the two companies (tobe held on June 28, 2023, for the Company), and it is difficult to accurately calculate the impact of the Merger at this point intime. Accordingly, the consolidated earnings forecast for the fiscal year ending March 31, 2024, is undetermined at this point
in time.
* Notes(1) Changes in significant subsidiaries during the fiscal year (changes in specified subsidiaries resulting in change in scope of
consolidation): No(2) 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: No
2) Changes in accounting policies other than those in 1) above:No3) Changes in accounting estimates:

Yes

4) Restatement of prior period financial statements:
No(Note) For details, please refer to 1. Consolidated Financial Statements and Major Notes, (5) Notes to Consolidated Financial
Statements, (Change in Accounting Estimate) on page 9 of the Attachment.
(3) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023
4,623,000 shares As of March 31, 2022
2) Number of treasury shares at the end of the period
As of March 31, 2023
46 shares As of March 31, 2022
3) Average number of shares during the period
Fiscal year ended March 31, 2023
4,583,826 shares Fiscal year ended March 31, 2022

4,580,400 shares- shares
4,492,628 shares

(Reference) Overview of Non-consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-Consolidated Operating Results(Percentage figures represent year-on-year changes)
Revenue
Operating profit
Ordinary profit
ProfitFiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

5,153

18.2

929

25.9

923

26.4

615

17.3

4,359

24.4

737

23.1

730

22.0

524

32.3

Yen

Diluted earnings per
share
Yen

134.26130.32116.83111.83

Basic earnings per share
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

(2) Non-Consolidated Financial Position
Total assets
Millions of yen

Net assets
Millions of yen

Equity ratio

As of March 31, 2023
2,876
2,009
(end of current fiscal year)
As of March 31, 2022
2,419
1,643
(end of previous fiscal year)(Reference) Total shareholders’ equity
As of March 31, 2023: 1,998 million yen
As of March 31, 2022: 1,636 million yen

Net assets per share
%

Yen

69.5

432.2667.6

357.30<Reasons for the difference in non-consolidated operating results from the previous fiscal year’s results>
In the fiscal year under review, the Company expanded the staffing business in its HR Solution business segment, resulting in a 18.2%
increase year on year in revenue, with operating profit, ordinary profit and profit also exceeding the previous fiscal year’s results.
This caused a difference between the actual results for the previous fiscal year and those for the fiscal year under review.
* This summary of financial results is not subject to audit 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 be
construed as a guarantee of achieving the results by the Company. Actual financial results and the like may differ materially due tovarious factors.

Contents of Attachment
1. Consolidated Financial Statements and Major Notes ........................................................................................................................... 2(1) Consolidated Balance Sheets........................................................................................................................................................... 2(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .................................................... 4
Statements of Income ..................................................................................................................................................................... 4
Consolidated Statements of Comprehensive Income ..................................................................................................................... 5(3) Consolidated Statements of Changes in Equity ............................................................................................................................... 6(4) Consolidated Statements of Cash Flows.......................................................................................................................................... 8(5) Notes to Consolidated Financial Statements ................................................................................................................................... 9(Notes on Going Concern Assumption) ........................................................................................................................................... 9(Change in Accounting Estimate) .................................................................................................................................................... 9(Segment Information, Etc.) .......................................................................................................................................................... 10(Per Share Information)................................................................................................................................................................. 13(Significant Subsequent Events) .................................................................................................................................................... 14

1

1. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Thousands of yen)
Current fiscal year
(As of March 31, 2023)

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

1,724,844
515,2312,047,536
572,768

Accounts receivable - other
Other

589
27,597418
41,291

2,268,262

2,662,015

34,293(18,645)

46,334(2,464)

15,64843,86926,151(17,383)

47,859(22,122)

Tools, furniture and fixtures, net

8,767

25,736

Total property, plant and equipment

24,41569,606

11,78917,193

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

Intangible assets
SoftwareTrademark right

145

128

11,935

17,321

Investment securities
Deferred tax assets

49,00820,90056,483

Guarantee deposits
Other

83,319618

64,693
1,300

Total investments and other assets

132,946

143,377

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

2

169,297

230,305

2,437,559

2,892,320

(Thousands of yen)
Current fiscal year
(As of March 31, 2023)

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

90,00022,500Accounts payable - otherAccrued expenses

43,685258,920

82,858283,333

Income taxes payable
Accrued consumption taxes

118,577
131,543

216,116
129,222

Deposits received
Refund liabilities

16,144276

18,953
97

Provision for bonuses

100,504

115,632

Total current liabilities

759,652

868,715

Long-term borrowings
Deferred tax liabilities

22,500-11

Total non-current liabilities

22,500

11

782,152

868,726

Shareholders’ equity
Share capital

497,384

508,034

Capital surplus
Retained earnings

389,378
761,274

400,028
1,104,231-(83)

1,648,036

2,012,210

7,371

11,383

1,655,407

2,023,594

2,437,559

2,892,320

Non-current liabilities

Total liabilities
Net assets

Treasury shares
Total shareholders’ equity
Share acquisition rights
Total net assets
Total liabilities and net assets3(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Statements of Income(Thousands of yen)Previous fiscal year
(April 1, 2021 –March 31, 2022)
4,425,005

Current fiscal year
(April 1, 2022 –March 31, 2023)
5,197,888

Cost of sales

2,896,477

3,356,572

Gross profit

1,528,528

1,841,316

Revenue

Selling, general and administrative expenses

783,046

908,003

Operating profit

745,482

933,313

12

16

Rental income from buildings
Gain on sale of goods

2

122
-

Total non-operating income

14

139

Non-operating income
Interest income

Non-operating expenses
Interest expenses

1,679

741

Commission expenses
Share issuance costs

6,008

5,362
-

Total non-operating expenses

7,687

6,103

737,809927,349

Gain on reversal of share acquisition rights-

759

Total extraordinary income

-

759

4,734

2,926
14,481

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Office relocation expenses

4,734

17,407

Profit before income taxes

Total extraordinary losses

733,074

910,701

Income taxes - current
Income taxes - deferred

209,252(7,150)300,276(7,464)

Total income taxes

202,101

292,811

Profit530,973

617,889--

530,973

617,889

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

4

Consolidated Statements of Comprehensive Income(Thousands of yen)

ProfitOther comprehensive income
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

5

Previous fiscal year
(April 1, 2021 –March 31, 2022)
530,973

Current fiscal year
(April 1, 2022 –March 31, 2023)
617,889--

530,973

617,889

530,973

617,889--

(3) Consolidated Statements of Changes in Equity
Previous fiscal year (April 1, 2021 to March 31, 2022)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

257,500

149,494

Cumulative effects ofchanges in accounting
policies
Restated balance

Retained earnings
230,387

Total shareholders’equityTreasury shares-(86)
230,300

637,381(86)

257,500

149,494-

637,294

Issuance of new shares

234,784

234,784

469,568

Issuance of new shares(Exercise of shareacquisition rights)

5,100

5,100

10,200Changes of items during
periodDividends of surplus
Profit attributable toowners of parent

530,973

530,973

Net changes in items
other thanshareholders’ equity-

Total changes during
period239,884

239,884

530,973-

1,010,741

Balance at end of period

497,384

389,378

761,274-

1,648,036

Share acquisitionrightsTotal net assets-

637,381

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance(86)-637,294

Changes of items during
periodIssuance of new shares

469,568

Issuance of new shares(Exercise of shareacquisition rights)

10,200

Dividends of surplus
Profit attributable toowners of parent
Net changes in items
other thanshareholders’ equity

530,973
7,371

7,371

Total changes during
period7,371

1,018,112

Balance at end of period

7,371

1,655,407

6

Current fiscal year (April 1, 2022 to March 31, 2023)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

Retained earnings

Total shareholders’equityTreasury shares

497,384

389,378

761,274-

1,648,036

497,384

389,378

761,274-

1,648,036

10,65010,650

Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares(Exercise of shareacquisition rights)

21,300

Dividends of surplus(274,932)(274,932)

Profit attributable toowners of parent

617,889

617,889

Purchase of treasury
shares(83)(83)

Net changes in items
other thanshareholders’ equity
Total changes during
period10,65010,650342,957(83)

364,174

Balance at end of period

508,034

400,028

1,104,231(83)

2,012,210

Share acquisitionrightsTotal net assets

7,371

1,655,407

7,371

1,655,407

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodIssuance of new shares(Exercise of shareacquisition rights)

21,300

Dividends of surplus(274,932)

Profit attributable toowners of parent

617,889

Purchase of treasury
shares(83)

Net changes in items
other thanshareholders’ equity

4,012

4,012

Total changes during
period4,012

368,186

Balance at end of period

11,383

2,023,5947

(4) Consolidated Statements of Cash Flows(Thousands of yen)Previous fiscal year
(April 1, 2021 –March 31, 2022)

Current fiscal year
(April 1, 2022 –March 31, 2023)

Cash flows from operating activities
Profit before income taxes
Depreciation

733,074
21,928910,701
29,886

(12)
-

(16)
2,926

Share issuance costs
Share-based payment expenses

6,008
3,319

4,771

Gain on reversal of share acquisition rights
Relocation expenses

4,734

(759)
14,481

Decrease (increase) in trade receivables
Decrease (increase) in accounts receivable - other(69,800)(420)(57,537)
171

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses

4,913
33,81525,43524,469

Increase (decrease) in deposits received
Increase (decrease) in provision for bonuses

2,066(3,711)

2,808
15,127

Increase (decrease) in accrued consumption taxes
Other, net(16,229)
16,075(2,321)(4,507)

Subtotal

735,761

965,637

12(4,734)16(10,933)

Interest paid
Income taxes paid

(1,701)(267,749)(752)(205,510)

Net cash provided by (used in) operating activities

461,587

748,458

Cash flows from investing activities
Purchase of property, plant and equipment(6,951)(63,987)

Purchase of intangible assets
Proceeds from refund of guarantee deposits(10,585)-(9,212)
38,742

Payments of guarantee deposits
Payments for asset retirement obligations(47,342)-(15,462)(11,230)

Interest and dividend income
Loss on retirement of non-current assets

Interest and dividends received
Payments of relocation expenses

Purchase of investment securities
Net cash provided by (used in) investing activities-(20,900)(64,879)(82,049)(90,000)
463,559(90,000)
-

4,051

-

10,20021,300-(84)(274,932)

Cash flows from financing activities
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from issuance of share acquisition rights
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities

387,811(343,716)

Net increase (decrease) in cash and cash equivalents

784,520322,692

Cash and cash equivalents at beginning of period

940,324

1,724,844

1,724,844

2,047,536

Cash and cash equivalents at end of period8(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
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 of
the 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 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 current
fiscal year decreased by 7,016 thousand yen, respectively, compared with the previous estimate method.

9

(Segment Information, Etc.)[Segment information]
I. Overview of reportable segments(1) Method of determining reportable segments
The Company’s reportable segments are those for which separate financial information is available and which are
subject to periodic reviews by the Board of Directors to determine the allocation of management resources andevaluate their performance among its components.
The Group has established business departments within the Company and its subsidiaries, and each of thedepartments formulates comprehensive domestic strategies for the products and services it handles and conducts
business activities.
The HR Solution business provides staffing, recruitment and outsourcing services specialized in the gaming andmobile gaming industries. The Media business operates and manages “Lovely,” a website for women, and conducts
outsourced promotional services.
II. Methods of calculating revenue, profit/loss, assets, liabilities and other items for each reportable segment
The accounting methods for the reportable segments are in accordance with the accounting policies adopted in the
preparation of consolidated financial statements.
The profit of each reportable segment indicates the figure of operating profit.
Inter-segment sales or transfers are based on prevailing market prices.
III. Information on revenue, profit/loss, assets, liabilities and other items by reportable segment
Previous fiscal year (April 1, 2021 – March 31, 2022)(Thousands of yen)
Reportable segment
HR Solution
businessMediabusiness

Total

Adjustments(Note)

Total

Revenue
Sales to outside customers

4,347,840

77,165

4,425,005-

4,425,005

6,070

-

6,070

(6,070)-4,353,911

77,165

4,431,076(6,070)4,425,005

Segment profit

1,166,027

13,525

1,179,552(434,070)

745,482

Segment assets

530,598

169,967

700,566

1,736,993

2,437,559

Segment liabilities

364,377

9,803

374,180

407,971782,152

570

480

1,051

20,877

21,928Inter-segment sales ortransfers
Total

Other items
Depreciation

Increase in property, plant andequipment and intangible
611
4,354
4,966
5,006
9,972
assets(Notes) 1. Adjustments are as follows.
(1) Adjustments of segment profit (-434,070 thousand yen) are corporate expenses that are not allocated to any
reportable segment, and are mainly general and administrative expenses that do not belong to any reportablesegment.
(2) Adjustments of segment assets (1,736,993 thousand yen) are corporate assets that are not allocated to any
reportable segment, and are mainly cash and deposits that do not belong to any reportable segment.
(3) Adjustments of segment liabilities (407,971 thousand yen) are corporate liabilities that are not allocated to
any reportable segment, and are mainly borrowings, etc. that do not belong to any reportable segment.
(4) Adjustments of other items are related to corporate assets that are not allocated to any reportable segment,
and are the amount of depreciation and the amount of increase in property, plant and equipment andintangible assets.
2. Segment profit has been adjusted with the operating profit in the Consolidated Statements of Income.

10Current fiscal year (April 1, 2022 – March 31, 2023)(Thousands of yen)
Reportable segment
HR Solution
businessMediabusiness

Total

Adjustments(Note)

Total

Revenue
Sales to outside customers

5,120,555

77,333

5,197,888-

5,197,888

18,362-

18,362(18,362)-

5,138,917

77,333

5,216,251(18,362)

5,197,888

Segment profit

1,433,998

18,617

1,452,616(519,302)

933,313

Segment assets

615,888

170,351

786,240

2,106,080

2,892,320

Segment liabilities

407,2125,358

412,570

456,155

868,726

6,796

992

7,789

22,09629,886

Inter-segment sales ortransfers
Total

Other items
Depreciation

Increase in property, plant andequipment and intangible
12,996
12,99670,393
83,389assets(Notes) 1. Adjustments are as follows.
(1) Adjustments of segment profit (519,302 thousand yen) are corporate expenses that are not allocated to any
reportable segment, and are mainly general and administrative expenses that do not belong to any reportablesegment.
(2) Adjustments of segment assets (2,106,080 thousand yen) are corporate assets that are not allocated to any
reportable segment, and are mainly cash and deposits that do not belong to any reportable segment.
(3) Adjustments of segment liabilities (456,155 thousand yen) are corporate liabilities that are not allocated to
any reportable segment, and are mainly borrowings, etc. that do not belong to any reportable segment.
(4) Adjustments of other items are related to corporate assets that are not allocated to any reportable segment,
and are the amount of depreciation and the amount of increase in property, plant and equipment andintangible assets.
2. Segment profit has been adjusted with the operating profit in the Consolidated Statements of Income.

11

[Related information]
Previous fiscal year (April 1, 2021 – March 31, 2022)
1. Information by product and service
The information is omitted as the same information is disclosed in the segment information.
2. Information by geographic area
(1) Revenue
The information is omitted as sales to outside customers in Japan account for more than 90% of revenue on theConsolidated Statements of Income.
(2) Property, plant and equipment
Not applicable as there is no property, plant and equipment located outside Japan.
3. Information by major customer(Thousands of yen)
Name of client

Revenue

Name of related segment

Bandai Namco Studios Inc.

476,054

HR Solution business

SEGA CORPORATION

466,104

HR Solution businessCurrent fiscal year (April 1, 2022 – March 31, 2023)
1. Information by product and service
The information is omitted as the same information is disclosed in the segment information.
2. Information by geographic area
(1) Revenue
The information is omitted as sales to outside customers in Japan account for more than 90% of revenue on theConsolidated Statements of Income.
(2) Property, plant and equipment
Not applicable as there is no property, plant and equipment located outside Japan.
3. Information by major customer(Thousands of yen)
Name of customer

Revenue

Name of related segment

Cygames, Inc.

571,133

HR Solution business

Bandai Namco Studios Inc.

552,477

HR Solution business[Information on impairment losses on non-current assets by reportable segment]
Previous fiscal year (April 1, 2021 – March 31, 2022)
Not applicable.
Current fiscal year (April 1, 2022 – March 31, 2023)
Not applicable.
[Information on amortization and unamortized balance of goodwill by reportable segment]
Previous fiscal year (April 1, 2021 – March 31, 2022)
Not applicable.
Current fiscal year (April 1, 2022 – March 31, 2023)
Not applicable.
[Information on gain on bargain purchase by reportable segment]
Previous fiscal year (April 1, 2021 – March 31, 2022)
Not applicable.
Current fiscal year (April 1, 2022 – March 31, 2023)
Not applicable.

12(Per Share Information)
Previous fiscal year
(April 1, 2021 – March 31, 2022)

Current fiscal year
(April 1, 2022 – March 31, 2023)

Net assets per share

359.80 yen

435.27 yen

Basic earnings per share

118.19 yen

134.80 yen

Diluted earnings per share

113.13 yen

130.84 yen(Notes) 1. Diluted earnings per share for the previous fiscal year ended March 31, 2022, is calculated by using the average
share price for the period from the initial listing date to the end of the said fiscal year, deeming it to be the periodaverage share price, as the Company was listed on the Tokyo Stock Exchange Mothers (currently Growth) market
on June 28, 2021.
2. The basis of calculation of basic earnings per share and diluted earnings per share is as follows.
(Thousands of yen)Previous fiscal year
(April 1, 2021 – March 31, 2022)

Current fiscal year
(April 1, 2022 – March 31, 2023)

Basic earnings per share
Profit attributable to owners of parent
Amount not attributable to commonshareholders
Profit attributable to owners of parent forcommon shares
Average number of common shares during
period530,973

617,889--

530,973

617,889

4,492,628 shares

4,583,826 shares--

200,884 shares

138,702 shares

Diluted earnings per share
Adjustments to profit attributable toowners of parent
Increase in the number of common shares(Of which, share subscription rights)
Description of dilutive shares not included in
the calculation of diluted earnings per share
due to the absence of dilutive effects(200,884 shares)(138,702 shares)

One type of share subscription rights(Number of share subscription
rights: 32,000)

One type of share subscription rights(Number of share subscription rights:
26,000)13

(Significant Subsequent Events)[Merger of companies]
The Company and Interworks, Inc. (“Interworks”) resolved at their respective board of directors’ meetings held on May 12,2023, to conduct business integration of the two companies effective August 1, 2023 (planned), and concluded a merger
agreement (the “Merger Agreement”) regarding the absorption-type merger with the Company as the absorbing andsurviving company and Interworks as the absorbed and dissolving company (the “Merger”).
At the same time, the Company plans to change its trade name to “Kabushiki Kaisha Confidence Interworks” (English
name: “Interworks Confidence Inc.”) on the effective date of the Merger.
The Merger is subject to the approval of the general meetings of shareholders of both companies.
1. Purpose of business combination
The Company and Interworks, Inc. aim to realize the benefits of the integration with a focus on “Expanding the businessareas of the HR Solution business/achieving business growth through cross-selling,” “Reinforcing the Media business,” and“Strengthening the business management foundation and reducing administration costs.”
2. Date of business combination
August 1, 2023 (planned)
3. Name and business description of the absorbed and dissolving company
Name of the absorbed and dissolving company: Interworks, Inc.
Business description:Media & solutions business, recruitment business, hiring support
business
4. Legal format of business combination
Absorption-type merger with the Company as the absorbing and surviving company and Interworks as the absorbed anddissolving company
5. Company name after business combination“Kabushiki Kaisha Confidence Interworks”(English name: “Interworks Confidence Inc.”)
6. Details of allotments in connection with the business combination
1) Merger ratio by type of shares
The Company will allot and issue 0.205 shares of its common stock for each share of common stock of Interworks.
2) Calculation method of merger ratio
In order to ensure the fairness of the merger ratio, it was determined that each company should separately request an
independent third-party appraiser to calculate the merger ratio. The Company selected SBI Securities Co., Ltd. andInterworks selected YAMADA Consulting Group Co., Ltd.
The Company and Interworks repeatedly conducted negotiations and discussions on the merger ratio in earnest, withreference to the calculation results, etc. received from the third-party appraisers they selected and in consideration of
their respective financial conditions, performance trends and stock price trends, etc. Consequently, the two companies
ultimately determined that the above merger ratio is appropriate and contributes to the interests of their respective
shareholders, and agreed and determined the merger ratio.
7. Amounts of assets and liabilities to be assumed by the succeeding company
Not yet finalized at this point in time.
8. Overview of the parties involved in the merger
Absorbing and surviving company(1) Name
Confidence Inc.
(2) Location
2-19-1 Shinjuku, Shinjuku-ku, Tokyo
Title and name of(3)
Nobuyuki Takushi, President
representative

Absorbed and dissolving company
Interworks, Inc.
1-6-21 Nishi-Shinbashi, Minato-ku, Tokyo
Kazuyuki Matsumoto, President(4)Line of businessHR solution business, media business

(5)
(6)

Share capital
Established
Number of shares
outstanding
Fiscal year end
No. of employees

508 million yen
August 2014

Media & solutions business, recruitment
business, hiring support business
172 million yen
March 1991

4,623,000 shares

9,800,000 shares

March 31958 (consolidated)

March 31
190

(7)
(8)
(9)

14

9. Schedule of merger
Date of resolution by the board of directors (both companies)
Date of agreement conclusion (both companies)
Record date for general meeting of shareholders (both companies)
Date of resolution at the general meeting of shareholders (Interworks)
Date of resolution at the general meeting of shareholders (theCompany)
Last trading date (Interworks)
Date of delisting (Interworks)
Effective date of merger

May 12, 2023
May 12, 2023
March 31, 2023
June 23, 2023 (planned)
June 28, 2023 (planned)
July 27, 2023 (planned)
July 28, 2023 (planned)
August 1, 2023 (planned)

10. Status after merger and trade name change(1)Name (planned)(2)

Location
Title and name ofrepresentative

(3)
(4)

Line of business

(5)
(6)
(7)
(8)

Share capital
Fiscal year end
Net assets
Total assets

Integrated new company after the business integration
Kabushiki Kaisha Confidence Interworks(English name: Interworks Confidence Inc.)
2-19-1 Shinjuku, Shinjuku-ku, Tokyo
Nobuyuki Takushi, President(Currently President of Confidence Inc.)
HR solution business (staffing, outsourcing, recruitment)
Media & solutions businessNot yet finalized at this point in time.
March every year
Not yet finalized at this point in time.
Not yet finalized at this point in time.

11. Goodwill generated by merger, reason, amortization method and period
Not yet finalized at this point in time.

15