Results for
the Fiscal YearEnding May 31,
2024
FY2023(June 1, 2023 - May 31, 2024)

Pasona Group Inc.
Prime Market TSE (2168)
July 17, 2024

www.pasonagroup.co.jp/English

Pasona Heartful Inc. Artist Satoru Ueda [Zenbo Seinei]

Table of Contents

１．FY2023 Results2

２．Segment information

9

３．FY2024 Forecasts

19

４．Returns to Shareholders

23

５．Use of Funds

25

６．FY2024 Progress of Group Priority strategy

29

７．Reference39

1

FY2023 Results※ Units in billions of yen have been rounded to the nearest first decimal place. Units in millions of yen have been rounded down.

2

Consolidated Results（Millions of yen）

FY22

FY23

(%)

(%)

Increase/Decrease372,579

356,733(15,846)

100.0

100.0

(4.3)%

281,053

271,907(9,145)

75.4

76.2

(3.3)%

91,52584,825(6,700)

24.6

23.8

(7.3)%

77,14878,030

+881

20.7

21.9

+1.1%

14,377

6,794(7,582)3.9

1.9(52.7)%

15,366

7,152(8,214)4.1

2.0(53.5)%Net profit attributable to ownersof parent or net loss attributableto owners of the parent

6,099

95,891+89,791

1.6

26.9+1,472.1%

Gross profit ratio
Operating profit ratio

24.6%
3.9%

23.8%
1.9%

(0.8)pt(2.0)pt

Net sales
Cost of sales
Gross profit
SG＆A
expenses
Operating profit
Ordinary profit

Net Sales

Operating Profit(Billions of yen)

(4.3)%
YoY

372.6(52.7)%
YoY

356.7

14.38

6.79

FY22

FY23

FY22

FY23

3

Operating Profit
Gross profit(6.70) [84.83]

Operating
ProfitDecrease in
net sales
Decrease in(3.89)
gross profit
ratio(2.81)

14.38

SG＆A Expenses+0.88 [78.03](Billions of yen)

Personnel
expenses+1.84

IT related
expenses
+0.04

Rent
(0.68)

Advertisement
expenses(0.64)

others
+0.32

6.79(52.7)%
YoY

FY22

FY23

FY15

Gross Profit ratio
SG&A ratio
Operating Profit ratio

20.0%
18.6%
1.5%

FY16

20.2%
18.6%
1.6%

FY17

21.5%
19.4%
2.1%

FY18

22.8%
20.0%
2.9%

FY19

23.6%
20.3%
3.3%

FY20

24.8%
18.8%
6.0%

FY21

24.5%
18.5%
6.0%

FY22

FY23

24.6%
20.7%
3.9%

23.8%
21.9%
1.9%

Major Item of Increase/Decrease● Gross profit：The Group experienced a decline in sales as a result of a decrease in special demand related to measures against COVID-19
infections, which affected Expert Services, Outsourcing, and a portion of Life Solutions, respectively.
Above the reason, gross profit ratio has decreased from 24.6% to 23.8%. ((0.8) pt YoY)

● SG&A expenses ：Personnel expenses increased due to personnel reinforcement and upfront investment in growth areas, etc.

4Non-operating/Extraordinary profit (loss), Others（Millions of yen）
Operating profit

FY22

Increase/
Decrease

FY23

14,377

6,794(7,582)(52.7)%

Non-operating
profit

1,788

1,145

(642)

(35.9)%

Non-operating
expenses

798

787

(10)

(1.4)%

15,366

7,152(8,214)(53.5)%

Extraordinary
profit1,530

112,060+110,529+7,220.0%

Extraordinary
loss

131

12,961+12,829+9,764.2%

16,766106,251+89,485+533.7%

Income taxes- current

7,508

4,926

(2,582)(34.4)%

Income taxes- deferred(1,450)1,886+3,336

-

6,058

6,813

+754

+12.5%

4,608

3,547

(1,060)(23.0)%

6,099

95,891+89,791+1,472.1%

Ordinary profit

Profit before
income taxes

Income taxes
Profit attributable tonon-controlling interests
Net profit attributable to owners of parent or
net loss attributable to owners of the parent

Net profit attributable to owners of parent or
net loss attributable to owners of the parent

Ordinary profit

YoY(53.5)%
YoY+1,472.1%
YoY(Billions of yen)

95.89

15.37
7.15
6.10

FY22

FY23

FY22

FY23

Major Item of Increase/Decrease● Non-operating profit
Subsidy income
FY22 ¥ 968 million / FY23 ¥ 523 million● Extraordinary profit
Gain on sale of shares of subsidiaries and associates（Benefit One Inc.）¥ 112.0 billion● Extraordinary loss
Impairment loss
¥ 10.8 billion
Costs related on sales of subsidiaries and associates ¥ 1.2 billion● Income taxes-deferred（loss）¥ 1.9 billion

5Consolidated Results by Segment(Millions of yen)

Net sales
Segment
Expert Services(Temporary Staffing)
BPO Services②(Contracting)
HR Consulting ,③
Education & Training , Others.
Global Sourcing④(Overseas)①

Subtotal⑤

Career Solutions(Placement/ Recruiting, Outplacement)

Operating profit (loss)

FY22

FY23

Increase/
Decrease

YoY

147,188

134,534(12,654)(8.6)%

142,327

142,854

+526

+0.4%

8,340

8,673

+332

+4.0%

9,831

11,024+1,192

307,687 297,085

Operating profit ratio

FY22

FY23

Increase/
Decrease

YoY

14,515

11,499(3,015)(20.8)%

4.9%

4.0%

(0.9)pt+12.1%

617

270

(347)

(56.2)%

6.3%

2.5%

(3.8)pt(10,601)(3.4)%

15,132

11,770(3,362) (22.2)%

4.9%

4.0%

(0.9)pt

FY22

Increase/
Decrease

FY23

13,923

13,054(869)(6.2)%

4,089

4,042

(46)

(1.1)%

29.4%

31.0%

+1.6pt⑥

Outsourcing

42,37638,962(3,413)(8.1)%

10,487

7,615(2,871)(27.4)%

24.7%

19.5%

(5.2)pt⑦

Life Solutions

8,200

7,792

(407)

(5.0)%

364

128

(236)

(64.8)%

4.4%

1.6%

(2.8)pt⑧

Regional Revitalization
Solutions

6,931

6,223

(708)

(10.2)%(2,877)(2,588)

+288

-

-

-

-

⑨

Eliminations and Corporate(6,539)(6,385)+154-(12,819)(14,174)(1,355)

-

-

-

-

372,579 356,733(15,846)(4.3)%

14,377

6,794(7,582) (52.7)%

3.9%

1.9%

(2.0)pt

Total

6

Balance Sheets(Billions of yen)
Major Item of Increase/Decrease

May 31,2023

May 31,2024

Increase/
Decrease

275.5

301.1

+25.6

194.3

243.6

+49.4

123.1

192.3

+69.2

52.6

43.5

(9.2)

81.1

57.3

(23.8)

Property, plant and equipment

33.7

35.5

+1.7

Intangible assets

26.6

5.0

(21.6)

Investments and other assets

20.8

16.9

(3.9)

203.9

146.4

(57.5)

144.8

103.9

(40.9)

Accounts payable-trade

7.4

3.4

(4.0)

Short-term loans payable

10.3

9.3

(1.0)

Deposits received

78.7

56.4

(22.3)

59.1

42.5(16.6)

43.5

29.4(14.1)

71.6

154.7

+83.0

52.7

147.3

+94.6

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, and contract
assetsNon-current assets

Liabilities
Current liabilities

Non-current liabilities
Long-term loans payable

Net assets
Shareholders' equity
Capital surplus

17.1

17.5

+0.4

Retained earnings

32.9

127.4

+94.5

Treasury shares

(2.4)

(2.7)

(0.3)

Total accumulated other comprehensive income

1.3

1.2

(0.1)

Share acquisition rights

0.0

0.0

(0.0)

Non-controlling interests

17.6

6.2

(11.5)

Equity ratio

19.6%

49.3%

+29.7pt

Equity ratio （Excluding deposits receiv ed for contracted projects）

26.9%

60.3%

+33.4pt

Benefit One is excluded from BS at the end of 24/5 due to the sale of shares

Benefit One assets and liabilities excluded
Assets（50.6 billion）：
Current assets 24.1 billion / Non-current assets 26.4 billion
Liabilities（26.3 billion）：
Current liabilities 16.9 billion / Non-current liabilities 9.4 billion

Major Item of Increase/Decrease【 Cash and deposits 】
・Increased due to sale of Benefit One shares.

¥ 115.2 billion

・Decreased in temporary deposits related to contracted projects.
¥ (19.9) billion YoY
As of May 31, 2024（FY23） ¥ 55.0 billion
As of May 31, 2023（FY22） ¥ 74.9 billion【 Deposits received 】
Decreased in temporary deposits related to contracted projects.
¥ (19.9) billion YoY【 Retained earnings 】
Increased in profit from the sale of Benefit One shares.

¥ 112.0 billion【 Non-controlling interest 】
Decreased due to exclusion of Benefit One from consolidation.¥ 12.1 billion【 Equity ratio 】
60.3% (+33.4pt) after deducting “deposits received” related to contracted
projects.

7

Cash Flows
Major Item of Increase/Decrease

FY22(Billions of yen)
Increase/
Decrease

FY23

Cash flows from operating activities

6.0

7.4

+1.4

Income before income taxes

16.8

106.3

+89.5

Depreciation and amortization

5.1

5.6

+0.4

-

10.8

+10.8

0.7

0.8

+0.0

Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts
receivable-trade and contracts asset

(1.3)

(0.0)

+1.3

(1.2)

4.2

+5.4

Increase (decrease) in deposits received

1.1

(1.3)

(2.3)

Loss(gain) on sales of shares of subsidiaries
and associates(0.0)(112.0)(112.0)(12.5)

94.3+106.8Purchase of property, plant and equipment(9.0)(15.2)(6.2)

Purchase of intangible assets

(4.6)

(4.9)

(0.3)

Purchase of investment securities

(0.6)

(0.4)

+0.2

1.8

0.0

(1.8)

(1.3)

-

+1.3

0.0

115.2

+115.2(2.3)(12.9)(10.6)

Proceeds from long-term loans payable

15.7

2.5

(13.2)

Purchase of treasury shares of subsidiaries

(1.5)

(0.0)

+1.5

(8.7)

89.1

+97.7

Cash and cash equivalents at beginning of the period

56.6

47.9

(8.7)

Cash and cash equivalents at the end of the period

47.9

137.0

+89.1

Free cash flows

(6.5)

101.6

+108.2

Impairment loss
Amortization of goodwill

Cash flows from investment activities

Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting
in change in scope of consolidation
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation

Cash flows from financing activities

Net increase (decrease) in cash and cash equivalents

Major Item of Increase/Decrease【 Profit before amortization 】¥ 123.5 billion (YoY ¥ +100.7 billion)※Excluding the sale of Benefit One shares¥ 12.5 billion (YoY ¥ (10.1) billion)【 Loss (gain) on sales of shares of subsidiaries and associates 】
Profit on sales of investments in subsidiaries and associates was deductedfrom "Cash flows from operating activities" in order to include the cashfrom the sale of shares of Benefit One in "Cash flows from investing
activities".
【 Purchase of property, plant and equipment 】
Acquisition of assets in the Regional Revitalizations Solutions segment , etc.

【 Proceeds from sales of investments in subsidiaries resulting inchange in scope of consolidation 】
Increased due to sale of Benefit One shares.

【 Purchase of treasury shares of subsidiaries 】
Acquisition of treasury stock by Benefit One Inc.
※Cash flow does not include the cash balance and increase/decrease in cash
corresponding to "deposits" from customers for projects entrusted to the company.

8

Segment information※ Units in billions of yen have been rounded to the nearest first decimal place. Units in millions of yen have been rounded down.

9Expert Services (Temporary staffing)
Net Sales

Total
Q4(Term)
Q3(Term)
Q2(Term)

Q1(Term)

152.1

147.2

38.0

36.3

35.4

35.7

(Billions of yen)

(8.6)%
YoY

134.5

33.6

(7.5)%
QoQ

32.3(9.6)%

38.0

37.4

34.1

(8.7)%

40.7

37.8

34.6

(8.7)%

FY21

FY22

FY23

Staff Engagement
Aiming to expand recruitment andregistration of temporary staff and temporary
staffing services in the Kansai area, which
will host the Osaka-Kansai Expo in 2025, thecompany relocated its Umeda and Namba
offices in Osaka, respectively.
Furthermore, we host staff events and otheractivities.
▲Myakmyak, the official character of the Osaka-Kansai Expo

Business Conditions (FY23 result)・The number of temporary staff decreased throughout the year due to thecompletion of work related to COVID-19 infection.
・Dispatch unit costs rose due to the revision of dispatch rates, and hourly rates for
temporary staff also increased.
・Increased in orders for high-level clerical work, and efforts to train digital humanresources for the purpose of human resource development.

▲ Osaka Umeda Twins Towers
South(relocated in May 2024)▲Namba Skyo(relocated in July 2024)

10

BPO Services (Contracting)
Net Sales(Billions of yen)

BPO Services , Outsourcing Sales Trends※ Subsidiaries were reorganized in FY23, with certain subsidiaries reassigned to different
business segments. Figures from3Q of FY22 onwards have been recombined retroactively toreflect these segment reassignments.

(Billions of yen)

+0.4%
YoY

139.3

142.3

142.9

36.8

37.3

36.1

(3.2)%
QoQ

34.9

36.7

34.8

(5.2)%

Q2(Term)

33.4

34.5

36.0

+4.4%

Q1
(Term)

34.2

33.8

35.9

+6.3%

FY21

FY22

FY23

Total
Q4
(Term)
Q3(Term)▲1.6%
YoY（Benefit One Inc.）

FY14

FY15 FY16

FY17 FY18

FY19

FY20

FY21 FY22 FY23

Business Conditions (FY23 result)・Despite a decrease in special demand projects, new demand from the private sector and the public sector.
・From the private sector, there was an increase in support for focusing on core operations in the areas of human resources, accounting, andgeneral affairs, as well as support for the introduction and operation of RPA to improve productivity.
・From the public sector, the number of contracts for reskilling and administrative agency services is expanding.
・New business acquisitions by Bewith and Pasona Nihon Somubu Co., Ltd. (former Pasona Panasonic Business Service) were steady.

11

Global Sourcing (Overseas)
Operating Profit ,Operating Profit Ratio

Net Sales

Sales by Region(Millions of yen)(Billions of yen)

+12.1%
YoY

9.83
Total

8.34
2.54

Q4
(Term)

2.19

Q3(Term)

2.08

Q2(Term)
Q1(Term)

2.00
2.06

2.37

5.00

11.02
3.11

FY22

5.0%

Asia

6,691

FY22

（Exclude Japan）

0.62

3.00

+14.4%

FY23

0.0%
2.00

2.68 +13.1%

0.45
1.00

2.69

+6.4%

(1.00)

2.55

+6.3%

(2.00)(3.00)

FY21

2.5%

5,861

FY21

10.0%

6.3%

4.00

+2.24%
QoQ

0.00

2.53
2.40

5.4%

0.19
0.09

0.11

(56.2)%
YoY
0.27(5.0)%(10.0)%

0.24

0.16

(3.6)%
QoQ

2,834

Europe &North
America

3,574

+1.9%

(15.0)%

0.08 (64.9)%
0.05 (54.2)%

0.11
0.06

0.11

FY21

(0.02)
FY22
FY23

FY23

Business Conditions (FY23 result)

0.16※Including overseas outsourcing(20.0)%

・Asia (Taiwan) Increased demand for human resources from semiconductor andmanufacturing industries.
(Vietnam) Expansion of development work in the IT field from Japanese companies.
(Indonesia) Continued economic growth and expansion of human resource services.
・In addition to the prior implementation of hiring and compensation improvements tostrengthen the workforce at many locations, SG&A expenses increased due to active
implementation of training and business trips.

Sales by Business Segment(Millions of yen)
FY21

FY22

FY23

YoY

Temporary Staffing

4,221

4,720

5,593

+18.5%

Placement / Recruiting

1,809

2,393

2,507

+4.7%

Contracting(Payroll, others)

1,470

1,713

1,901

+10.9%

Others

834

1,003

1,021

+1.8%

Total

8,335

9,831

11,024+12.1%

12

HR Consulting , etc. / Operating Income by Segments
Net Sales(HR Consulting , Education & Training , Others.)(Billions of yen)

※ Subsidiaries were reorganized in FY23, with certain subsidiaries reassigned to different
business segments. Figures from3Q of FY22 onwards have been recombined retroactively toreflect these segment reassignments.

Total

8.42

8.34

+4.0%
YoY
8.67
(9.7)%
QoQ
+7.8%

2.16

2.09

2.29

Q3
(Term)

2.42

1.99

2.15

1.91

2.24

2.14 (4.3)%

Q1(Term)※ES～GS: Expert Services ,BPO Services ,HR Consulting ,Global Sourcing

308.1
79.1

Q4
(Term)

Q2(Term)

Operating Profit ,Operating Profit Ratio

Net Sales(ES~GS)

74.8
75.3

1.93

2.02

2.09 +3.5%

78.8

FY21

FY22

FY23

FY21

Business Conditions (FY23 result)・Advisory andIncreased demand for professional personnel in specialized areas
consulting business：related to human capital management and integrated reporting.
Increased demand from companies seeking female directors.
・Recruiting Business： Increased demand for recruiting consulting services.
(Recruiting Agency)
・Education andtraining business： Increased demand for specialized training to promote the successof female employees. Demand for face-to-face training for newhires is increasing as the majority of training is conducted in person.

307.7
78.2
76.7
76.6

(3.4)%
YoY
297.1
75.1
71.9

6.1%
(4.0)%
QoQ(6.3)%

75.0(2.1)%(1.2)%

76.1

75.1

FY22

FY23

(Billions of yen)

4.9%

18.8
4.7

4.7

15.1
3.7

4.0%

(22.2)%
YoY
11.8

5.1

3.5

4.1
1.6
2.9
3.1

FY21

FY22

FY23

4.3

3.7
4.2

+11.4%
QoQ(57.5)%(29.8)%(11.6)%

Business Conditions (FY23 result)・Decreased in net sales mainly due to lower number of active workers in Expert Services.
・Decreased in the number of medical specialists dispatched due to the end of
COVID-19 infection and lower gross profit margin.

13

Career Solutions (Placement/Recruiting , Outplacement )Operating Profit ,Operating Profit Ratio

Net Sales(Billions of yen)

14.70
13.92

Total
Q4
(Term)
Q3(Term)
Q2(Term)

Q1(Term)

3.68
3.53
3.88

3.62
3.40

30.4%

(6.2)%
YoY

13.05
3.14
3.10

29.4%

(1.1)%
YoY

4.47(13.1)%
QoQ(8.7)%

3.48

3.47(0.2)%

3.61

3.43

3.34

(2.7)%

FY21

FY22

FY23

31.0%

4.09

4.04

1.12

1.06

(5.1)%
QoQ

0.98

0.85

(12.5)%

1.07

1.10

+2.5%

1.13

0.92

1.03

+11.5%

FY21

FY22

FY23

1.11
0.97
1.25

Business Conditions (FY23 result)・Placement / Recruiting Business: Despite a decline in the willingness to recruit in some industries, stable demand continued in the strategically focusedhigh-career field. Despite an increase in the unit contract price since the beginning of the period, the number ofcontracts decreased from the previous period due to an increase in the number of job seekers who stayed in thiercurrent positions.
・Outplacement business: Demand continued to decline from the beginning of the period. In the recent past, an increasing number of companies havebeen recruiting early and voluntary retirees due to changes in the business environment and moves toward corporate structuralreforms. Steady growth in demand for Safe Placement Total Service, which supports employees' autonomous career development.

14

Outsourcing （Benefit One Inc.）Net Sales

100.0

Operating Profit ,Operating Profit Ratio

90.0

76.2

80.0
70.0

33.3%

60.0

38.36
Total
Q4
(Term)
Q3(Term)
Q2(Term)
Q1(Term)

11.29

8.32
10.23
8.51

FY21

42.38
11.35
10.79

(8.1)%
YoY

10.59

19.5%

20.0

(6.8)%
QoQ(10.6)%

9.65

9.16

(5.1)%

10.58

9.57

(9.6)%

FY23

30.0%

Benefit One Membership Trends
合計（10Thousands people）

Personal

CRM
Employee fringe benefit

1,307

20.0%

30.0

9.65

FY22

40.0%

24.7%

40.0

10.0

50.0%

(Billions of yen)

50.0

38.96

60.0%

12.77

0.0

3.23
2.65

4.04

(27.4)%
10.49
YoY
2.65

7.62

3.01

1.80

2.84

2.90

2.27
1.61
1.93

FY21

FY22

FY23

1.93

1,126

1,162

1,165

10.0%

0.0%

86

78

76

138

136

132

902

948

957

869
(32.0)%
QoQ

135

109
127

(24.5)%(16.7)%

99

1,073

633

(33.2)%
Apr.

Apr.
2021

2021

Apr.

Apr.
2022

2022

Apr.

Apr.
2023
2023

Sep.

Sep.
2023
2023

Apr.

Apr.
2024
2024
Forecast

Forecast

Business Conditions (FY23 result)・Welfare and benefit business: Membership fee revenue, which accounts for the majority of sales, increased year-on-year, while transactions specific to
the former JTB Benefit declined. Profitability improved due to reduction of duplicated costs by integrating services offormer JTB Benefit, despite increased expenses for human resources and system investments for medium- and long-term
growth.
・Health Care Business: Sales of COVID-19 vaccination support business decreased from the previous fiscal year due to the downsizing of operations.
・Health Care Guidance Business: Net Sales and profit increased from the previous year despite delay in acquiring new orders.

15

Life Solutions (Nursing care , Life support , Childcare)
Operating Profit ,Operating Profit Ratio

Net Sales

Facilities of Pasona Foster・ Pasona Life Care※As of May.31, 2024

1.3

1.4

(5.0)%
YoY

8.20
Total
Q4
(Term)
Q3(Term)
Q2(Term)
Q1(Term)

7.16

2.09

1.90
1.79
1.77
1.71

FY21

1.2

3.2%

4.4%

7.79

△2.0%

0.6

+0.9%
QoQ

1.89

(10.7)%

2.04

1.87

(8.0)%

1.96

1.92

FY22

FY23

Business Conditions (FY23 result)

Facilities

0.0%(2.0)%

△4.0%

0.36
0.05

0.4
0.2
0.0

2.12

4.0%
2.0%

0.8

2.11

8.0%
6.0%

1.6%

1.0

※We changed the counting method for facilities on Aug 2023,
and some changes have been made retroactively.

(Billionsof yen)
10.0%

0.23
0.05
0.06
0.10
0.01

0.14

△8.0%

(64.8)%
YoY
0.13

0.12
0.06

0.04
0.07
0.03
(0.01)FY21

FY22

Pasona Foster△6.0%(0.01)FY23

May May May May YoY
2021 2022 2023 2024

89

92

98 105+7

Child-care facilities

49

49

49

47

(2)

After-school children’s clubs

40

43

49

58

+9

22

22

20

19

(1)

△10.0%

Pasona Life Care
(25.4)%
QoQ

Nursing care facilities(52.1)%(75.4)%

Initiatives for Pasona Foster
Miracle Labo, an educational after-school program operated by Pasona Foster Inc, received
the Excellence Award of “17th Kids Design Award” and “Award of Minister of State forConsumer Affairs Award” sponsored by the Ministry of Economy, Trade and Industry.

・Childcare business: Increased in the number of children accepted at existing childcare facilities from the previous fiscal year,
including the opening of new licensed nursery schools and school-age children's clubs. Gross profit
declined due to upfront costs for new openings and higher personnel and other operating expenses.
・Life support business：
Decrease in sterilization and disinfection services, which had been commissioned by hospitals(housekeeping services, etc.) and lodging facilities as a measure against the spread of COVID-19 infection until the previous
fiscal year. Demand for dispatching nursing care workers to facilities for the treatment of
infected patients also declined. Steady growth in contract housekeeping services for families
with children, however, SG&A expenses increased mainly due to labor costs, which werespread across multiple regions.

▲Collaborative PBL class with students

16

Regional Revitalization Solutions
Operating Profit

Net Sales

1.13(10.2)%
YoY
6.93
6.22
1.68
+12.5%
1.90
QoQ
1.82
1.23 (32.6)%

1.24

1.89

1.57

(17.0)%

0.76

1.53

1.53

(0.2)%

FY21

FY22

FY23

Total
Q4
(Term)
Q3(Term)
Q2(Term)
Q1(Term)

Q1(Term)

4.43

1.29

Q2
(Term)
Q3(Term)
Q4(Term)

Total

Initiatives for regional revitalization(Billions of yen)
FY21 ⇒ Apr-Mar
FY22 ⇒ Jun-May（※）
FY23 ⇒ Jun-May（※）The performance comparison period
is different because some subsidiaries
changed their fiscal year-end in theprevious fiscal year.

▲TANGO KINGDOM Beer®

Tango Kingdom Brewery Inc.
・Began canned beer business to strengthen sales
channels both in Japan and overseas.
・Homebrewed Craft Beer Selected for “the 2024
SUPERIOR TASTE AWARD” by “the Jury of theInternational Taste Institute(formerly known
as iTQi)”.
Takumi Sousei Inc.

FY21

FY22

FY23

[ Profit
improvement
amount ](0.70)(0.67)(0.65)[+0.02]・Started selling at “city'super”, a high-end supermarket in Hong Kong.

(0.55)(0.45)(0.57)[(0.12)](0.45)(1.00)(0.75)[+0.25]・Three brands won gold medals at “the 18th Feminaries World Wine
Competition 2024”.

(0.62)[+0.14]

Pasona Agri-Partners Inc.

[+0.29]・Promoting the “Awaji Nature Lab & Resort” project to realize a richlifestyle that incorporates the blessings of nature.

(0.91)(0.76)(2.61)(2.88)(2.59)

・Launched the “Inishie no Bishu Koshukura Project” to promote the sale ofold sake blended from different breweries.

・Six of our wines won prizes at “IWC 2024”, the world's largest liquor competition.

Business Conditions (FY23 result)・ Awaji Island Park Animation Park “Nijigen-no-mori” saw a large increase in inbound visitors.
・ The number of visitors during the period under review fell short of the initial forecast due to the effectsof the heat wave and bad weather on weekends, as well as the decentralization of tourist attractions.
・In food and beverage facilities, the cost of sales ratio rose due to soaring raw material prices,and personnel expenses also increased due to improved compensation.
・In the previous fiscal year, some subsidiaries changed their fiscal year-ends from March to May(5 months were recorded in the previous 3Q period).

17

Elimination/Corporate Segment Costs
Net Sales

Strengthening Collaboration to
Develop Global Human Resources

Operating Profit(Billions of yen)

Q1
(Term)
Q2(Term)

FY21

FY22

FY23

(1.50)(1.52)(1.60)(1.96)(1.80)(1.64)(1.56)(1.51)

Q3(Term)(1.33)

Q4(Term)(1.85)(1.67)(6.64)(6.54)

Total

FY21

FY22

FY23

[Profitimprovement
amount](2.67)(3.38)(3.18)[+0.20](3.47)(3.37)[+0.10](3.32)[(0.42)](4.31)[(1.24)](2.88)(2.54)(2.90)(1.64)(6.39)(3.47)(11.57)(3.07)(12.82)(14.17)[(1.35)]Main Factors for Cost Increase/Decrease (FY23 result)・UNITAR (United Nations Institute for Training and Research)
Memorandum of Understanding to support women and young people in
improving their digital skills and employment.
(June 2023)
・Zuidan University and National University of Technology Danang, Vietnam
Memorandum of Understanding on IT Human Resource Development and
Employment Support.
(December 2023)
・The University of Hong Kong Business School
Memorandum of Understanding to foster an environment that supportsbusiness education and the promotion of international business.
(March 2024)
・Taiwan University"Letter of Intent" for fostering global leaders
Taiwan University students begin internships on Awaji Island. (June 2024)

Creation of Well-being Industry
・Pasona Group "Awaji Well-being Week 2024" to be held this fall, a complex
event with the theme of "well-being" that aims to realize a truly affluent
society.
・“Awaji Well-being Business Contest 2024” to create a new industry based on
the theme of "well-being" (applications will be accepted in July 2024)

・Increased in personnel expenses and IT-related expenses associated with DX
promotion.
・Partially incurred expenses related to the pavilion at the Osaka-Kansai Expo in 2025.
・Promote efforts to establish university partnerships and educational institutions for
future human resource development▲Chefs from around the world compete in“the World Chef King Culinary Competition”▲Awaji Well-being Week 2023

18

FY2024 Forecasts※ Units in billions of yen have been rounded to the nearest first decimal place. Units in millions of yen have been rounded down.

19

FY2024 Consolidated Forecasts
Net Sales

Profit attributableto owners of parent

Operating Profit
YoY (7.5)%(26.4)%(98.6)%(Billions of yen)

95.89
327.0 325.0 334.5

366.1 372.6

356.7
330.0

22.08
19.94
14.38
8.62

10.58

9.47

6.79

6.78

5.00
1.98

FY18 FY19 FY20 FY21 FY22 FY23 FY24
Forecast

6.10

1.30

0.59

FY18 FY19 FY20 FY21 FY22 FY23 FY24

FY18 FY19 FY20 FY21 FY22 FY23 FY24

Forecast

Forecast(Millions of yen)
FY18

FY19

FY20

FY21

FY22

FY23

FY24
Forecast

326,984

324,984

334,540

366,096372,579

356,733

330,000(26,733)(7.5)%

Operating profit

9,465

10,577

19,94022,083

14,377

6,794

5,000

(1,794)(26.4)%

Ordinary profit

9,237

10,236

20,37922,496

15,366

7,152

5,000

(2,152)(30.1)%

Profit attributable to owners of parent

1,975

594

6,784

8,621

6,099

95,891

1,300(94,591)(98.6)%Net sales

vs FY23
Increase/Decrease

YoY

20

Segment Change
Since Benefit One Inc., which was responsible for the "Outsourcing" segment,
has been excluded from the scope of consolidation due to the sale of shares,
the composition and names of reportable segments will be partially changed from FY24.
Current Segment

New Segment

１．HR Solutions

Ⅰ．HR Consulting
Education & Training
Others➀Expert Services

１．HR Solutions➀BPO Solutions②BPO Services②Expert Solutions③HR Consulting, Education & Training,
OthersⅡ．Temp to perm
commission for
an introduction④Global Sourcing⑤Career Solution⑥Outsourcing

２． ⑦Life Solution
３． ⑧Regional Revitalization Solution
４． ⑨Elimination/Corporate Segment Costs③Career Solutions
２． ④Global Solutions

Exclusion

Ⅲ．Changed toindependent segment

３． ⑤Life Solutions
４． ⑥Regional Revitalization andTourism Solutions

５． ⑦Elimination/Corporate Segment Costs
21

FY2024 Consolidated Forecasts by New Segment(Millions of yen)

Net sales
New Segment① BPO Solutions

Operating profit (loss)

FY23*

FY24
Forecast

Increase/
Decrease

147,579

150,000+2,420

YoY

Operating profit ratio

FY23*

FY24
Forecast

Increase/
Decrease

11,582

14,000+2,417+20.9%YoY

FY24
Forecast

Increase/
Decrease

4.1%

4.8%

+0.7pt

FY23*

+1.6%

② Expert Solutions

137,082

141,500+4,417+3.2%③ Career Solutions

13,054

14,500+1,445+11.1%

4,042

4,500

+457

+11.3%

31.0%

31.0%

0.0pt

Total

297,715

306,000+8,284+2.8%

15,62518,500+2,874+18.4%

5.2%

6.0%+0.8pt④

Global Solutions

11,024

12,500+1,475+13.4%

270

800

+529

+195.7%

2.5%

6.4%

+3.9pt⑤Life Solutions

7,792

8,400

+607

+7.8%

128

300

+171

+133.5%

1.6%

3.6%

+2.0pt⑥

Regional Revitalization andTourism Solutions

6,610

7,700

+1,089+16.5%(2,671)(500)+2,171

-

-

-

-

⑦

Eliminations and Corporate(4,841)(4,600)+241-(14,174)(14,100)

+74

-

-

-

-

318,301

330,000+11,698

+3.7%

(821)

5,000

+5,821

-

-

1.5%

-

Total

※ Consolidated figures for fiscal year ending May 31, 2024 show reference figures that exclude the Outsourcing segment.
Figures for the segment for the fiscal year ending May 31, 2024 are figures that have been reclassified to the new segment classifications.
※ For the fiscal year ending May 31, 2025, only full-year forecasts are disclosed.
The forecast for each segment is expected to expand through the second half of the fiscal year.

22Returns to Shareholders※ Units in billions of yen have been rounded to the nearest first decimal place. Units in millions of yen have been rounded down.

23

Dividends
The Company has resolved to pay a special dividend of 60 yen for five years
beginning in the fiscal year ending May 31, 2024 as a measure to expand shareholder
returns on extraordinary profit from the sale of shares in affiliated companies.

１．Special dividend（Resolution on Special Dividend and Revision of Year-End Dividend Forecast for the Fiscal Year Ending May 31,2024" dated April 12, 2024）

From the fiscal year ending May 31, 2025, we will change the target consolidated
dividend payout ratio from 30% to 40%, and aim to further increase corporate value
and achieve sustainable growth by allocating management resources with a greaterawareness of the balance between investment in growth and shareholder returns.

２．Change in dividend policy

３．Dividends for the current fiscal year and this fiscal year
FY17

FY18

FY19

FY20

FY21

FY22

35

75

75

Common dividend
15
Special dividend
60

Common dividend
15
Special dividend
60

22.5

3.1

226.0

※Dividend payout ratio against common dividend（％）（0.6％）（45.2％）

Annual dividend
(yen)

13

18

19

30

Dividend payout
ratio (％)

37.2

35.6

124.9

17.3

Common dividend
30
Special dividend
５

FY24（forecast）

FY23

15.9

35

24

Use of Fund

※ Units in billions of yen have been rounded to the nearest first decimal place. Units in millions of yen have been rounded down.

25Use of Proceeds from Sale of Shares in Affiliated Companies
In the fiscal year ended May 31, 2024, the Company recorded an extraordinary profit of ¥112,040 million on the sale ofshares in an affiliate in its consolidated financial statements as a result of the sale of shares in Benefit One Inc.
The Company plans to use the proceeds from the sale to invest in new businesses, capital expenditures, M&A investments,and other investments for growth, as well as to strengthen its management base and return profits to shareholders, with theaim of increasing the Company's corporate value over the medium to long term.
（mainly use of fund）
BPO
SolutionsImprove profitability by optimizing
business processes

Core system renewal

ExpertSolutions

Growth Investment（Approx. 60～70％）

Extraordinary
profit112.0 billion

Strengthening ofManagement Base（Approx. 20～30％）

Expansion of
Shareholder Returns（Approx. 10～20％）

Regional
Revitalization andTourism Solutions

Awaji Island Iwaya Area Hotel Development ProjectNewbusiness

Ventureinvestment/support

HumancapitalDX Human Resource
Development

Branding

Exhibited at the OsakaKansai Expo Pavilion

shareholder
returnSpecial Dividend＊Figures in parentheses indicate approximate investment ratio

１

２

Approx. ¥5 billion
Scheduled to start
operation in February 2025
Approx. ¥14 billion
Scheduled to open insummer 2025 or later

Investments aimed at creating social
impact in venture companies in thewell-being area, etc.

Approx. ¥３billion
Sequential

Strengthen recruitment and training
Approx. 3,000 employees by the fiscal
year ending May 2026

Approx. ¥1.5billion
From FY2024

Branding for new business creation on
the occasion of the 50th anniversary of
the company's

Approx. ¥５billion
From FY2023

For Special dividend of 60 yen per share at
the end of each fiscal year from the end of
the fiscal year ending May 31, 2024 to theend of the fiscal year ending May 31, 2028.

Approx. ¥12 billion
From FY2023

26

➀ Venture investment/support
To embody the Pasona Group's venture mindset, we aim to create a social impact by investing in or providing
management support to venture companies in the area of well-being and group synergies.

HONESTIES, Inc.
Kumonos Corporation
Digital measurement and spatial data service for cracks
The company has developed a special 3D laser scanner to generate various
point cloud data for towns, roads, historical buildings, etc., and isdeveloping structural inspection and survey services using 3D measurement
technology, etc., including a non-contact digital measurement and analysis
service for cracks as small as 0.2 mm at a distance of 100m.

Manufacture and sale of underwear, etc.
without front and back lining

By eliminating “back and front” from underwear, we propose a simple and “do your best at
what really matters” lifestyle by making “putting on, taking off, and putting away” easier. As auniversal design that can be used by everyone, including children, the elderly, and people withhandicaps, the company aims to become the de facto standard for underwear worldwide.
Investment
Objectives

Aligns with our well-being direction. Collaborate with our group's nursing
care facilities, childcare facilities, and support for people with disabilities.

Space bio-venture using one-chip
microscopic observation technology
IDDK Co., Ltd.
“KUMONOS” enables accurate measurement of cracks with non-contact.
Capable of non-contact measurement and analysis of damage from large
buildings to exterior walls.
Investment
Objectives

In the future, the company will provide services, including humanresources, to municipalities and other entities regarding disasterprevention and infrastructure repair using scanners. In addition,
the company will develop new businesses by digitizing data.

A space bio-venture that provides a one-stop space experiment venue by using MID (Micro
Imaging Device), a one-chip microscopic observation technology, to perform microscopic
observation in the smallest space and lightest weight in a satellite, contributing to drug
discovery for intractable diseases and anti-aging, regenerative medicine, space agriculture, etc.
Investment
Objectives

Indirectly supporting physical health, one of well-being, throughregenerative medicine and drug discovery

27

② Exhibited at the Osaka-Kansai Expo Pavilion
Pasona Group Inc. will exhibit its pavilion "PASONA NATUREVERSE" at the 2025 Japan International Expo
(Osaka-Kansai Expo).
Pavilion Name

About Pavilion

www.pasonagroup.co.jp/expo2025/

PASONA NATUREVERSE

Pavilion navigator

body navigator

Pavilion Concept「Thank you for life.」
Pasona Group's job is to “make the most of people”. We aim to realize a society inwhich everyone can play an active role in a healthy and vigorous manner. “Thankyou for life”. From children to the elderly, all people around the world arecommitted to the “Thank You for Life” concept, We want to create a world where
everyone in the world, from children to the elderly, respects life and is filled withgratitude for it. Our society is part of the natural world, we humans are also a partof the natural world and are kept alive by nature. However, we have taken this for
granted and forgotten to be grateful for it, we may have forgotten to be gratefulfor the abundance that nature provides us. For the abundant blessings that natureprovides us humans. We want to create a new world where we can say “thankyou” to each other and leave it to the next generation. We hope that many people
from all over the world will visit our pavilion, and join us in creating“NATUREVERSE (Nature x Universe),” a world where “Thank you” resonates witheach other. This is the wish of Pasona Group.

Main Exhibition Themes

1. body
2. heart
Medical care / Food Motivation/Compassion

3. tiesWork / Mutual Aid© TEZUKA PRODUCTIONSMedia Introduction

Number of media
introductions

871（＊FY21～FY22）28

FY2024
Progress of Group Priority strategy※ Units in billions of yen have been rounded to the nearest first decimal place. Units in millions of yen have been rounded down.

29Medium- to Long-Term Strategy①

On the occasion of the 50th anniversary of the company's founding,
we are working on a growth strategy for the next 50 years with theunchanging corporate philosophy of “solving society's problems.”＜ Medium- to Long-Term vision＞
Aim to maximize corporate value by achieving sustainable growth through“growth of existing businesses and improvement of profitability” and“creation of new industries” to solve new social issues.

＜Short-term strategy＞
・Restructuring ofbusiness portfolio
・Investment in new
industries
・M&A implementation

・ Strengthen managementfoundation
・ Enhancement ofshareholder returns

50
50 years since establishment (1976-2025)th

Towards the next 50th
© 2024 Pasona Group Inc. All rights reserved.

30

Medium- to Long-Term Strategy②

1. Strengthening existing businesses① BPO Solutions② Global Solutions③ Improved profitability of Regional
Revitalization and Tourism solutions④ Competitiveness Enhancement(DX, Human Capital）

2. Creating new industries
Business growth through creation of
Well-being industries© 2024 Pasona Group Inc. All rights reserved.

31

FY2024 Progress of Group Priority strategy

１

Evolution of X-TECH BPO andexpansion of business in
specialized BPO areas

2 Improved profitability of Regional
Revitalization and Tourism
Solutions3
Creating new business© 2024 Pasona Group Inc. All rights reserved.

32

1. Evolution to X-Tech BPO and expansion of business in specialized BPO areas⚫ Strategically expand BPO services even during economic downturns, contributing to consolidated sales growth⚫ In FY24, “Evolution to X-Tech BPO” and “Expansion of business in specialized areas” will be promoted
FY13～FY２３
BPO services
Sales CAGRBPO Solutions Consolidated
Net Sales Composition Ratio

13．7

%

BPO services

Professional BPO Solution
intellectual
property

general affairs

payrolllabormanagement

Procurement andPurchasing

Accounting and
Finance

Customer
Supportbusiness
administration

Recruitment
agencyDispatch
Management

health promotion

environmental
conservation

Design andDevelopment

Internalization
SupportAI / RPA

Avatarreskilling

Promotion of
women's activities

Extensive
track record

Human resource layer in collaboration
with expert services, etc.

National BPO Center© 2024 Pasona Group Inc. All rights reserved.

33

1. Evolution to X-Tech BPO and expansion of business in specialized BPO areas① Evolution to X-TECH BPO⚫ Continued to expand X-TECH BPO, which provides integrated management from development toimplementation and operations⚫ Also working with IT partners to strengthen DX human resource development

X-TECH BPO

DX human resources development 10,000

Microsoft × PASONA
Digital Human Resource Development Program

Overseas Resident Management

Resident Management
SystemOverseas
Resident
Personnel
Operations✓ expatriate information management✓ Information dissemination to expatriates✓ Application/approval workflow✓ Reimbursement of reimbursable
expenses, etc.

✓ Payroll during assignment✓ Expense reimbursement approval✓ Pre-assignment training✓ Labor management, etc.

DX Training Courses

DX Career Support✓Fundamentals of Microsoft Copilot,✓Career Consulting

Microsoft's generative AI tool

✓ Employment support✓ Copilot Human Resources Course –✓ Further DX career courses

People who use it✓ AI Development Human Resource
Course - Creators© 2024 Pasona Group Inc. All rights reserved.

34

1. Evolution to X-Tech BPO and expansion of business in specialized BPO areas② Expansion of business in specialized BPO areas⚫ Further focus on intellectual property, general affairs, and human resources areas where we have a highdegree of expertise and competitive advantage.
Focus area

Services
・Patent SearchingIntellectual
property

・IP Management
・Filing・Utilization

・Outsourcing of general affairs
・Facility management

Administration

Human
Resources

Strategy✓ Provide IP services to patent firms, venture capital firms, etc.
✓ Strengthen efforts in IP utilization business (license-related)✓ Distribute IP by building a platform✓ Expansion of external sales of know-how accumulated over many years
in the operation of major general affairs divisions

・Event planning and management✓ Shift to high-value-added services by outsourcing the entire business flow

・Workplace Design✓ Expansion of services utilizing X-TECH such as XR (Cross Reality)

・Labor Management✓ Expand service areas to include peripheral labor and payroll operations

・Payroll✓ Promote efficiency and automation and improve profitability and・Education and Training
・Sustainability Management
Strategy Support

productivity by utilizing RPA/AI, etc.
✓ Further acquisition of large-scale projects by strengthening
collaboration with partner companies, etc.
© 2024 Pasona Group Inc. All rights reserved.

35

2. Improved profitability of Regional Revitalization and Tourism Solutions⚫ With a recent increase in the number of tourists and the effect of the weak yen, inbound tourism is expanding,and multifaceted measures are being implemented to accelerate profit improvement.
01. Expansion of transportation infrastructure
Outside the island

Round the island

Strengthen PR as a place
where people who want to drink alcoholand do not have their own car
can come by bus◼

Strengthening cooperation with bus companies
Shinki Bus, Honshi-Kaikyo Bus, West Japan JR Bus◼

Expand PR through various media◼

Offer preferential treatment to bus users

03. Attracting more customers

02. Implementation of attractive content
A real-life collaboration event of“Monster Hunter,” which is popular
all over the world and has been madeinto a live-action movie in Hollywood,is now being planned. （Limited Time）◼
◼

Attract new users
Various plans linked to the collaboration
event
Guidance and collaboration with existing
facilities◼

04. Recruitment and training of professional person

Maximize the growing number of
inbound tourists, strengthen
attraction of group tourists,and expand for repeat customer

Improve staff hospitality andstrengthen human resource
development with world-class chefs◼

◼

Collaboration with educational institutions
around the world◼

Opening of school “Awaji Chef’s Scuola“→ Cultivating ”regional revitalization chefs” who create

Inbound→ Expand collaboration with overseas OTAs and travel agencies◼

Group tourists→ Collaboration with shopping concierge and provision ofpreferential treatment plans◼

Repeat customer→ Expansion of various benefits▲ Awaji Chef’s Scuola（Former Toshima Elementary School）

new value from local resources and food culture andpromote the appeal of the region© 2024 Pasona Group Inc. All rights reserved.

36

3.Creating new businessCorporate Philosophy

Changes in the external environment『Solving Society’s
Problem』• Low birthrate and aging population• Diversification of lifestyles• Importance of extending healthy life
expectancy• Changes in affluence and values

Creation of Well-being industry
Since our founding, we have created “mental health” and “social health” through our human resource services, andsince 2003 we have also been working on “physical health” and “mental health” through agriculture and regional
development. In response to the growing awareness of healthy life expectancy and changes in affluence and values,
we will further develop our existing businesses into the “Well-being” Industry.

Physical Health

Mental HealthSocial HealthmissionCreating a healthy body throughpre-symptomatic disease,including eating habits

Based on the spirit of “compassion,”
we will create a society where everyone
can think about their own future, where
diversity abounds, and where life is fullof meaning and fulfillment.

Creating a “mutual society,” a truly affluent
society in which all people can work actively
and live happily.

Business• Wellness Retreat Business• Sports Wellness Business• Agri-Culture Business• Tourism Business• Entertainment Business• Arts & Culture• Educational Community
Business• Mutual Community Business© 2024 Pasona Group Inc. All rights reserved.

37

3.Creating new business （ Reference: Market size ）The global market for the Well-being industry is worth $5.6 trillion (about 840 trillion yen *calculated at 150 yen to the dollar)
and is expected to grow at an annual rate of 8.6% until 2027. Japan's market size is $241 billion (approximately ¥36 trillion*calculated at 150 yen to the dollar).
※The Global Wellness Institute defines "wellness" as active awareness and action toward a state of well-being.
（Global Wellness Institute 「The Global Wellness Economy: Country Rankings」 2022）

Area Breakdown（Global）

Traditional andComplementary
Medicine
519

Wellnessrelated Real
Estate398

WorkplaceWellness
51
Public health,prevention,
personalized
medicine
611

Foods forHealthy,
Nutritionaland Dietary
Purposes
1,079

Mentalwellness

181

Market Forecast (Global)

Personal
Care &
Beauty1,089

Wellnesstourism
651

Sports andPhysical
Activities
976

Hot
spring /mineralspring46

Spa
105※Unit: trillion dollars※Unit: billion dollars© 2024 Pasona Group Inc. All rights reserved.

38

Reference※ Units in billions of yen have been rounded to the nearest first decimal place. Units in millions of yen have been rounded down.

39

『Health & Productivity Management Outstanding Organization 2024』⚫ 【 Pasona Group Inc. / Pasona Inc. 】
Health & Productivity Management Outstanding Organizations“White 500“ （ eight consecutive years ）⚫ 【 Pasona Panasonic Business Service Co., Ltd. 】※Pasona Panasonic Business Service Inc. changed its name to
Pasona Nihon Somubu Co., Ltd. on April 1, 2024.

Health & Productivity Management Outstanding Organizations“Bright 500“
⚫ 【 Pasona HS Inc. 】【 Pasona JOB HUB Inc. 】
Health & Productivity Management Outstanding Organizations【Pasona Group Inc. Major Initiatives for Health Management】
1．Conduct lifestyle surveys and publish results
Once a year, a lifestyle survey is conducted for employees to score their lifestyle habits in the categories of exercise, diet, sleep, and preferences (drinking,snacking, smoking) and provide feedback.
2．Mental Health Measures
Conducted mental care training for all employees to promote self-care and line-care in conjunction with the implementation of stress checks.
3．Supporting Health Promotion for Men and Women
Health lectures by obstetrics and gynecology specialists were given to all employees to promote understanding of changes in the minds and bodies of men andwomen and to "improve literacy".
4．Promoting employee communication through health
Promoting group-wide communication by creating our own original physical exercises and providing physical exercise, training gyms,
healthy lunches, etc.
5．Establishment of various consultation services
We provide not only career counseling, but also a contact point to discuss various concerns such as one's own health and lifestyle.
Women‘s health support programs are also being expanded, including an “online consultation service” where women can consult with specialists on women’s
specific health issues and concerns about childcare and childbirth.

40

Quarterly Sales and Profit Trends
10.0%(Billions of yen)

Net Sales
3.7%

3.6%

2.0%

92.1

91.9

90.6

89.9

Operating Profit Ratio FY22

2.3%

0.8%

91.9

89.4

95.2

93.3

88.4

5.0% Operating Profit Ratio FY21

3.9%

4.2%

2.5%

Operating
Profit Ratio

Operating Profit Ratio FY23
0.0%

95.3

91.2

86.2

-5.0%

-10.0%-15.0%

1Ｑ
3M
FY21

１Ｑ
3M
FY22

2Ｑ
3M
FY23

3M
FY21

Q1 (June to August)

２Ｑ
3M
FY22

3Ｑ
3M
FY23

3M
FY21

4Ｑ
3M
FY23

３Ｑ
3M
FY22

Q2 (September to November)

3M
FY21

Q3 (December to February)

3M
FY23

４Ｑ
3M
FY22

-20.0%（Millions of yen）

Q4 (March to May)

Consolidated

FY21

FY22

YoY

FY23

YoY

FY21

FY22

YoY

FY23

YoY

FY21

FY22

YoY

FY23

YoY

FY21

FY22

YoY

FY23

YoY

Net sales

91,92792,066+0.2%

89,881(2.4)%

90,55891,906+1.5%

89,434(2.7)%

88,38993,307+5.6%

86,241(7.6)%

95,221

95,299+0.1%

91,174(4.3)%

Gross profit

21,72022,273+2.5%

21,226(4.7)%

22,792

22,582(0.9)%

21,259(5.9)%

21,525

22,956+6.7%

19,964(13.0)%

23,63323,712+0.3%

22,375(5.6)%

SG&A expenses

16,02018,943+18.2%

18,997+0.3%

16,49619,180+16.3%

19,508+1.7%

16,17319,025+17.6%

19,270+1.3%

18,89819,999+5.8%

20,254+1.3%

Operating profit

5,700

3,330

(41.6)%

2,228(33.1)%

6,295

3,402

(46.0)%

1,751(48.5)%

5,352

3,931

(26.5)%

693(82.3)%

4,735

3,712

(21.6)%

2,120(42.9)%

Profit (Loss) attributable to owners of parent

2,481

1,293

(47.9)%

187(85.5)%

2,318

1,440

(37.9)%

(41)

-

2,514

1,213

(51.7)%

(899)

-

1,306

2,151

+64.6%

96,644 +4,392.5%

Gross profit ratio

23.6%

24.2%

+0.6pt23.6%(0.6)pt

25.2%

24.6%

(0.6)pt

23.8%(0.8)pt

24.4%

24.6%

+0.2pt23.1%(1.5)pt

24.8%

24.9%

+0.1pt24.5%(0.4)pt

SG&A expense ratio

17.4%

20.6%

+3.2pt21.1%+0.5pt

18.2%

20.9%

+2.7pt21.8%+0.9pt

18.3%

20.4%

+2.1pt22.3%+1.9pt

19.8%

21.0%

+1.2pt22.2%+1.2ptOperating profit ratio

6.2%

3.6%

(2.6)pt

2.5%(1.1)pt

7.0%

3.7%

(3.3)pt

2.0%(1.7)pt

6.1%

4.2%

(1.9)pt

0.8%(3.4)pt

5.0%

3.9%

(1.1)pt

2.3%(1.6)pt※ Please refer to the Investors Guide for the figures before the listed year.

41

Quarterly Sales and Profit Trends by Segment(Millions of yen)

Sales
Segment①

Expert Services(Temporary Staffing)

YoY

YoY

YoY

YoY

33,596(8.7)%(8.7)%(9.6)%(7.5)%Q1 FY22Q2 FY22Q3 FY22Q4 FY22Q1 FY23Q2 FY23Q3 FY23Q4 FY23

37,83737,37535,66336,311

34,551

34,13332,252②

BPO Services(Contracting)

33,81734,50736,72237,27935,932

36,03834,80636,076

+6.3%

+4.4%

(5.2)%(3.2)%③

HR Consulting ,Education & Training ,Others.

2,021

2,235

1,994

2,088

2,092

2,139

2,149

2,291

+3.5%

(4.3)%

+7.8%

+9.7%

2,395

2,526

2,366

2,543

2,545

2,688

2,677

3,112

+6.3%

+6.4%

+13.1%+22.4%

76,071

76,64576,74678,22375,12275,00071,88575,077(1.2)%(2.1)%(6.3)%(4.0)%

3,434

3,475

3,395

3,618

3,341

3,468

3,099

3,144

(2.7)%(0.2)%(8.7)%(13.1)%④

Global Sourcing(Overseas)

Subtotal⑤

Career Solutions(Placement/Recruiting, Outplacement)⑥

Outsourcing

10,5839,650

10,788

11,353

9,571

9,156

9,648

10,586(9.6)%(5.1)%(10.6)%(6.8)%⑦

Life Solutions

1,963

2,035

2,115

2,086

1,923

1,873

1,889

2,105

(2.0)%(8.0)%(10.7)%+0.9%⑧

Regional Revitalization
Solutions

1,529

1,894

1,823

1,684

1,526

1,572

1,228

1,895

(0.2)%(17.0)%(32.6)%+12.5%⑨

Eliminations and Corporate(1,515)(1,795)(1,561)(1,666)(1,604)(1,636)(1,509)(1,635)

-

-

-

-

92,06691,90693,307

95,29989,88189,43486,241

91,174(2.4)%(2.7)%(7.6)%(4.3)%Total※ Please refer to the Investors Guide for the figures before the listed year.
※ Subsidiaries were reorganized in FY5/24, with certain subsidiaries reassigned todifferent business segments. Figures from3Q of FY5/23 onwards have been
recombined retroactively to reflect these segment reassignments.

42

Quarterly Sales and Profit Trends by Segment(Millions of yen)

(Millions of yen)

Operating profit (loss)
Segment①

Q3 FY22Q4 FY22Q1 FY23Q2 FY23Q3 FY23Q4 FY23

YoY

YoY

YoY

3,992

(10.2)%(27.7)% (55.7)%

155(54.2)%(64.9)%

YoY

3,398

3,963

3,591

3,561

3,050

2,865

1,590

108

241

106

161

49

84

(19)

3,506

4,205

3,697

3,723

3,100

2,949

1,571

919

1,074

976

1,119

1,025

1,100

854

1,062

+11.5%+2.5%(12.5)%(5.1)%

Expert Services
BPO Services(Contracting)③

HR Consulting ,Education & Training ,Others.

Global Sourcing(Overseas)

Subtotal⑤

Q2 FY22(Temporary Staffing)②④

Q1 FY22

Career Solutions(Placement/Recruiting, Outplacement)+12.1%-(3.6)%

4,148 (11.6)% (29.8)% (57.5)%+11.4%⑥

Outsourcing

2,897

1,927

3,013

2,648

1,934

1,605

2,273

1,801

(33.2)%(16.7)%(24.5)%(32.0)%⑦

Life Solutions

55

117

140

50

(5)

28

67

37

-

(75.4)%(52.1)%(25.4)%⑧

Regional Revitalization
Solutions

(667)

(450)

(1,001)

(757)

(648)

(568)

(750)

(621)

-

-

-

-

⑨

Eliminations and Corporate(3,381)(3,471)(2,895)(3,071)(3,177)(3,365)(3,322)(4,309)

-

-

-

-

3,330

3,402

3,931

3,712

2,228

1,751

693

Total

2,120 (33.1)% (48.5)% (82.3)% (42.9)%※ Please refer to the Investors Guide for the figures before the listed year.
※ Subsidiaries were reorganized in FY5/24, with certain subsidiaries reassigned todifferent business segments. Figures from3Q of FY5/23 onwards have been
recombined retroactively to reflect these segment reassignments.

43

Full-Year Key Indicators
Net Assets and Shareholders’ Equity Ratio

Net Sales and Operating Profit Ratio

Net Sales (Billions of yen)
Operating Profit Ratio(%)
1.5

1.5

263.7

1.6

280.4

2.1
311.4

2.9
327.0

6.0

6.0
3.9

3.3
325.0

334.5

366.1

49.3

Net Assets (Billions of yen)
Shareholders' Equity Ratio(%)
372.6

1.9

24.1

22.2

356.7

20.1

20.9

23.7

22.7

154.7
25.2

226.2

29.6

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY14

26.7

28.1

33.9

FY15

FY16

FY17

Results
Key Indicators'15/05'16/05'17/05'18/05'19/05Net Sales
226,227
263,728
280,395
311,410
326,984
Gross Profit Margin
20.3%
20.0%
20.2%
21.5%
22.8%
SG&A Expenses
42,381
48,94852,12860,48965,245
SG&A Expense Ratio
18.7%
18.6%
18.6%
19.4%
20.0%
Operating Profit
3,490
3,860
4,488
6,539
9,465
Operating Profit Ratio
1.5%
1.5%
1.6%
2.1%
2.9%
Ordinary Profit
3,343
3,855
4,319
6,631
9,237
Ordinary Profit Ratio
1.5%
1.5%
1.5%
2.1%
2.8%
Net Profit *1
214
243
(129)
1,288
1,975
Net Profit Ratio
0.1%
0.1%
ー
0.4%
0.6%
Total Assets *2
88,64185,356
94,584112,477
119,459
Net Assets
29,62026,73528,06233,88940,253
Shareholders' Equity Ratio *2
24.1%
22.2%
20.1%
20.9%
23.7%
Return on Equity
1.0%
1.2%
(0.7)%
6.0%
7.6%
Number of Employees
7,908
8,550
8,682
9,074
9,317
1. Since the fiscal year ended on May 31, 2016, net profit has been referred to profit attributable to owners of parent.

'20/05324,986
23.6%
66,112
20.3%
10,577
3.3%
10,236
3.1%
594
0.2%
140,441
42,31622.7%
2.0%
19,538'21/05334,540
24.8%
63,02818.8%
19,9406.0%
20,379
6.1%
6,784
2.0%
151,641
49,77925.2%
19.4%
21,789

40.3

42.3

FY18

FY19

'22/05366,096
24.5%
67,58818.5%
22,0836.0%
22,496
6.1%
8,621
2.4%
203,746
67,14624.5%
19.6%
23,488

24.5

19.6

67.1

71.6

FY21

FY22

49.8

FY20

FY23

(Millions of yen)
'23/05'24/05372,579
356,733
24.6%
23.8%
77,14878,03020.7%
21.9%
14,377
6,794
3.9%
1.9%
15,366
7,152
4.1%
2.0%
6,099
95,891
1.6%
26.9%
275,504
301,090
71,624
154,661
19.6%
49.3%
11.7%
94.7%
24,91825,046

2. As the Company adopted "Partial Amendments to Accounting Standard for Tax Effect Accounting” from the beginning of the first quarter of FY2018. As for the financial position, the figures for the previous consolidated
fiscal year were processed by the method.

44

Share Information (Including treasury share)
Breakdown of Shareholders by Type

Breakdown of Shareholders by Number of Share Held(As of May. 31, 2024)
Treasuryshare
1,439,224
3.45%

Financial companies
21
0.07%
Treasury share
Securities companies
1
21
0.01%
0.07%

Total
28,381peopleIndividuals andothers27,95298.49%

Other
corporations
143
0.50%

Foreign corporations andother foreign investors
243
0.86%

Principal Shareholders

F inancial
companies
4,839,936
11.61%

S ecurities
companies
990,476
2.38%

O thercorporations
5,009,711
12.02%

Total
41,690,300
sharesF oreign corporations
and other foreign
inv estors
9,535,021
22.87%

Indiv iduals andothers19,875,932
47.67%

No. of Shares Held%

Yasuyuki Nambu

14,763,200

35.41%

Nambu Enterprise Inc.

3,738,500

8.97%

The Master Trust Bank of Japan, Ltd (Trust Account)

2,554,700

6.13%

Pasona Group Inc.

1,439,224

3.45%

CEPLUX- THE INDEPENDENT UCITS PLATFORM 2

1,082,000

2.60%

Custody Bank of Japan, Ltd.(Trust Account E)

1,066,136

2.56%

NOMURA INTERNATIONAL PLC A/C JAPAN FLOW

922,000

2.21%

JP JPMSE LUX RE UBS AG LONDON BRANCH EQ CO

803,400

1.93%

THE BANK OF NEW YORK MELLON 140040

722,100

1.73%

Custody Bank of Japan, Ltd.(Trust Account)

644,600

1.55%

1. The Company's treasury share (1,439,224 shares, 3.45% of total issued shares) ranked fourth. In accordance with Article 308.2 of the Corporations Law, there are no voting rights attached to treasury share.
2. Tempered Investment Management Limited sent a change report to the Kanto Finance Bureau on December 27, 2023, reporting that it owns 1,912,100 shares as of December 20, 2023. However, the number ofshares held as of the end of May 2024 cannot be confirmed, so it is not included in the status of the above major shareholders.

45

Group Companies （by segment）
BPO Solutions (Contracting)Expert Solutions (Temporary staffing)

Career Solutions (Placement/Recruiting, Outplacement)

Pasona Inc.

Pasona Nihon Somubu Co., Ltd.

Asahi Beer Communications Co, Ltd.

Bewith, Inc.

Pasona Heartful Inc.

Doinet Co., Ltd.

PASONA LOGICOM Inc.

Pasona art now Inc.

Pasona Joinus Inc．

Pasona HS Inc.

Pasona Knowledge Partner Inc.

TECHNORESEARCH CO.,LTD.

Nagasaki diamond staff

Pasona Intellectual Property
Trust Inc.

Pasona Force Inc.

Profelier,Inc

e-Staffing Co., Ltd. *Pasona Masters Inc.
Pasona HR Solution Inc.
Gotop Co., Ltd.
Pasona JOB HUB Inc.
Pasona YBS Inc.

Pasona Tech，Inc．
Smart Style CO.,Ltd
Pasona HR HUB Inc.

Circlace Inc.*

Pasona Inc.

Life Solutions(Childcare support business and education business, Nursing care business,
Life Support business)

National Examination Center Inc. *Shadow Consulting Inc. *Pasona Foster Inc.

Pasona Life Care Inc.

iBRID.Co.Ltd

Regional Revitalization and Tourism Solutions
Global Solutions (Overseas)
Pasona Furusato Incubation Inc.

RE BORN Inc.

Pasona N A, Inc.

Pasona Tech Vietnam Co., Ltd.

Pasona Agri-Partners Inc.

Kosyunoya Inc.

Pasona Canada, Inc.

Pasona Education Co. Limited
Pasona HR Malaysia Sdn.Bhd.

Tango Kingdom Brewery Inc.

Japanese Kosyukura Inc.

Pasona Tohoku Sousei Inc.

awajishima resort Inc.

PT.Dutagriya Sarana
Agensi Pekerjaan Pasona Sdn. Bhd.

Nijigennomori Inc.

All Japan Tourism Alliance Inc.

Pasona Smile Inc.

Awaji Nature Farm Inc.

Chihou Sousei Inc.

IHATOV TOHOKU Inc. *Pasona Taiwan Co., Ltd.
Pasona Singapore Pte. Ltd.
Pasona Asia Co., Limited
PT Pasona HR Indonesia
Pasona Korea Co., Ltd

Pasona HR Consulting Thailand Co., Ltd
Pasona Oversea Recruitment

Takumi Sousei Inc.

Pasona India Private Limited
MGR Consulting Co.,Ltd.
Pasona Human Resources (Shanghai) Co., Ltd.
Pasona Recruitment (Thailand) Co., Ltd※The information is in line with the new segment
names from the fiscal year ending May 31, 2025.

(As of May. 31, 2024）● Consolidated subsidiaries 59* Equity-method affiliates 5

46

Corporate Information
Prime Market TSE (2168)

Corporate Name

Pasona Group Inc.

Headquarters

Shin Marunouchi Bldg.
1-5-1, Marunouchi, Chiyoda-ku,
Tokyo 100-6514

Established

December 3, 2007
(Founding February 1976)

Paid-in Capital

5,000 million yen

Representative

Yasuyuki Nambu

Business Activities

Comprehensive Group office
Minami-Aoyama 3-1-30 Minato-ku,
Tokyo 107-8351
Phone 03-6734-0200

BPO Solutions (Contracting)Expert Solutions (Temporary staffing)
Career Solutions (Placement/Recruiting, Outplacement)
Global Solutions (Overseas)
Life Solutions (Childcare support business and education business, Nursing care business, Life Support business)※The information is in line with the new segment
Regional Revitalization and Tourism Solutions
names from the fiscal year ending May 31, 2025.

Number of Employees

Consolidated
Group Companies
URL

25,046 (Consolidated, including contract workers)
Subsidiaries 59 , Affiliates 5(As of May. 31, 2024)(As of May. 31, 2024)

www.pasonagroup.co.jp/English/

47