WILL GROUP, INC. | 6089 (TSE Prime)
Strategy Advisors, Inc.

Company Report

Kenichi Ito
Executive Officer

July 5, 2024

Shift from "Numbers" to "Quality" toReturn to a Growth Trajectory

Stock Price and Volumes

With the mission of being "a change agent group that positively transforms
individuals and organizations", WILL GROUP is developing its human resource
services business in Japan and the Asia-Oceania region. The company provides
temporary staffing, placement and outsourcing services to smartphone sales
floors of electronics retailers, call centers of telecommunications and financial
institutions, food factories, nursing care facilities and construction sites.

1,100

200

900

0

The company intends to gradually increase profitability by shifting from registered
fixed-term temporary staffing to being a business involving quality permanent
staffing for permanent and non-permanent employment. Even during a period of
population contraction, demand for specialized human resources is expected toincrease further and the company expects to return to a growth trajectory throughits business centered on permanent temporary staffing with special skills.
Specifically, the company intends to focus on the dispatch of permanent
employees in the area of construction engineering. The number of workers in theconstruction industry is declining and there is a chronic shortage of labor. On theother hand, the number of job seekers in industry may well increase in the futureas the working environment improves in accordance with the Workplace Reform
Law (in force since April 2019). Furthermore, Open Up Group Inc. (2154 TSE
Prime), a competitor in this field, is prioritizing business expansion throughaggressive hiring and the market has high growth potential.
The stock price has been soft and P/B ratio has fallen to 1.3 times. In addition to
the struggles of existing businesses, the company's share price is likely to beaffected by the slightly lower valuations in the human resources industry as awhole. On the other hand, we expect Will of Construction (a consolidated
subsidiary in construction engineering) to turn profitable from FY3/2025 onward
and also for the existing domestic business to recover and so we believe thecompany will enter a phase in which it is a good investment.

400

24/5

24/3

23/11

23/9

23/7

23/5

23/3

24/1

(‘000 Shares)

(¥)

23/1

1,300

Volume (right axis)
Stock price (left axis)
Source: Strategy Advisors

Key Indicators
Stock Price (7/2/24)

1,037Year-to-Date High (2/6/24)

1,238

Year-to-Date Low (5/30/24)

931

10-Year High (2/2/18)

2,139

10-Year Low (5/14/21)

184

Shares on Issue (mn)22.8Market Capitalization (\ bn)

23.6

EV (\ bn)

28.0

Equity Ratio (3/24 Actual, %)34.0

PER (3/25 CoE, Times)

13.5

PBR (3/24 Actual, Times)

1.3

Yield (3/25 CoE, %)4.5

Source: Strategy Advisors.

Although profits are expected to decline sharply in FY3/2025 (company plan), real
operating income is expected to increase 19.4% excluding gains on sales ofsubsidiaries & the effects of deconsolidation. Profits in the ‘domestic working’business are expected to increase mainly in the highly profitable constructionengineer field. The ‘overseas working’ business is expected to improve profitability
through cost reforms.
IFRS - Consolidation
FY

Sales

YoY

OP

YoY

Pre-Tax Profit

YoY

NP

YoY

EPS

DPS

(\ mn)(%)(\ mn)(%)(\ mn)(%)(\ mn)

(%)

(\)

(\)

FY3/2021

118,249

-3.0

4,030

-2.8

3,788

-6.6

2,363

-0.7

106.4

24.0

FY3/2022

131,080

10.9

5,472

35.8

5,293

39.7

3,286

39.0

147.0

34.0

FY3/2023

143,932

9.8

5,318

-2.8

5,146

-2.8

3,236

-1.5

143.2

44.0

FY3/2024

138,227

-4.0

4,525

-14.9

4,417

-14.2

2,778

-14.1

122.4

44.0

FY3/2025 CoE

140,400

1.6

2,290

-49.4

2,190

-50.4

1,640

-41.0

72.2

44.0

Source: Prepared by Strategy Advisors, Based on Company Data.

1

WILL GROUP, INC. | 6089 (TSE Prime)
Table of Contents
1.

Company Overview - Achieving High Growth with Domain Specialization and Overseas Expansion ........... 5
１）

Establishing a Stable Business Foundation with Industry-Leading Performance in Specific Areas ........... 5

２）

Focus on Specific Areas and Expand Business Through Speedy Growth .............................................. 6

３）

Details of Each Area of the Domestic Working Business .................................................................... 8

４）

Description of the Overseas Working Business ...............................................................................10

2.

Business Model and Key KPI’s .........................................................................................................11
１）

Net Sales = Number of Workers x Dispatch Unit Price x Working Hours -- Stock-Type Business ............11２）

Key KPI’s are the Number of Workers and Dispatch Unit Cost ..........................................................12

３）

Profitability and Cost Structure.....................................................................................................17

４）

Balance Sheet and Cash Flow ......................................................................................................193.

Competitive Advantage Rooted in Top Management's Origins and MVV ................................................21
１）

Founder, Chairman Ikeda's Background and Company History .........................................................21

２）

President Yuichi Sumi's Past and Future ........................................................................................23

３）

MVV (Mission, Vision and Values) and Competitive Advantage .........................................................25

4.

Future Equity Story and Market Potential ..........................................................................................27
１）

From "Number" to "Quality" to Win in the Era of "Job Mismatch" .....................................................27

２）

Market Potential and Growth Strategies for the Construction Engineer Domain...................................28

３）

Overview and Growth Potential of the Foreign Management Contract Business ..................................30

４）

Number of Active Full-Time Temporary Staff by Area and Profitability ...............................................31

5.

Medium-Term Management Plan and Current Performance Trends .......................................................32
１）

Progress of the Medium-Term Management Plan ............................................................................32

２）

Current Performance Trends ........................................................................................................35

6.

Valuations and Competitor Comparisons...........................................................................................38
１）

Time Series Valuations ................................................................................................................38

２）

Competitors and Business Size by Area .........................................................................................42

３）

List of Each Company's Stock Price Trends and Valuations ...............................................................45

7.

Governance and Sustainability ........................................................................................................47
１）

Chairman Ikeda is the Largest Shareholder with Employees Holding Approximately 40% of Shares ......47

２）

The Percentage of Outside & Female Directors is Higher than the TSE Prime Market Average ..............47

３）

In Addition to Environment-Related Activities, the Company Plans to Focus on Improving Wellbeing. ...50

8.

Risk Factors ..................................................................................................................................51
１）

Performance Deterioration in 3 Main Areas ....................................................................................51

２）

Difficulties in Operations Due to Changes in the Dispatched Worker & Other Laws & Regulations .........51

３）

Difficulty in Expanding Business Due to the Inability to Secure Human Resources ..............................51

４）

Risks Associated with Overseas Expansion .....................................................................................51

５）

Risks Related to Personal Information ...........................................................................................51

2

WILL GROUP, INC. | 6089 (TSE Prime)
Executive Summary
With the mission of being "a change agent group that positively transforms
individuals and organizations", the company operates a human resource
services business in Japan and the Asia-Oceania region. The company currently
provides temporary staffing, placement and outsourced contracting services tosmart phone sales floors of electronics retailers, call centers of
telecommunications and financial institutions, food factories, nursing carefacilities and construction sites.
The earnings structure of the temporary staffing business consists of sales =number of workers x unit price of temporary staffing x working hours, with themain KPI’s being the number of workers and unit price of temporary staffing.
Dispatch unit costs vary by area, but generally range from \2,000 to \2,500
per hour.
The company's competitive advantage lies in its hybrid dispatching model,
which leverages its organizational strengths. Hybrid dispatching is a service inwhich WILL GROUP employees (field supporters) and temporary staff work
together as a team at the client site to respond quickly and accurately to clientneeds. In the three main areas of sales outsourcing, call center outsourcing andfactory outsourcing, intensive on-the-job training not only improvescommunication with client-side personnel but also enhances operational
efficiency, which differentiates WILL GROUP from its competitors. In addition,
both of these areas have high turnover rates, and having a full-time employee
at the same site has the added benefit of following up with the staff mentallyand physically, thereby increasing retention rates. In this way, hybrid temporary
staffing is an important strategic tool for the company to increase its presence
within its client base and gain market share by training and following up withtemporary staff at client sites.
The company's equity story is to move away from a low-profit business model
centered on fixed-term temporary staffing and increase the ratio of profitablebusinesses such as permanent staffing, placement, recruiting and outsourced
foreign personnel management to a high value-added business model that cansurvive in an era of declining population as a winner in an era of "job mismatch".
The company intends to shift to a more profitable business model by (1)accelerating growth in the construction engineer field, which is centered on
permanent worker dispatching and (2) re-growing the domestic working
business by expanding foreign worker management contracts and permanent
worker dispatching.

3

WILL GROUP, INC. | 6089 (TSE Prime)
In addition, the stock price has been soft. The share price has been on an
upward trend since 2021, thanks to the strong performance of the overseas
working business due to the post-Corona rebound bubble but has been on a
downward trend since 2023 due to the slowdown in growth of the domestic
working business, in addition to the expiration of the overseas working businessrebound bubble. In addition, valuations have declined markedly and P/B ratios,
which at one point exceeded 5.0 times, are now just 1.3 times. Going forward,
in addition to a recovery in earnings, we expect valuations to improve as a resultof a change in the business model.
The company announced a new medium-term management plan (FY3/2024FY3/2026) titled "WILL-being 2026" and set a quantitative target for thenumber of employees to be hired in this area (1,500 p/year) in order to focus
on accelerating growth in the construction engineer field. The constructionindustry is chronically short of labor, and in addition to strong demand, thecompany expects an increase in job openings due to reforms in work styles. In
addition, Open Up Group (2154 TSE Prime), a competitor in this area, is also
aggressively strengthening recruitment through upfront investment, indicatingthat the market is in a growth phase.
In FY3/2024, the first year of the medium-term management plan, thecompany managed to secure a profit from the sale of a subsidiary (operating
income of \2.06 billion); however, the domestic working business continued to
struggle and the overseas working business experienced a decline in sales forthe first time, resulting in an extremely difficult business environment. In thefiscal year ending March 31, 2025, in addition to the restructuring of existing
businesses, the company expects to see the results of its business modeltransformation through the expansion of permanent worker dispatching in theconstruction engineer field and other areas.

4

WILL GROUP, INC. | 6089 (TSE Prime)
1. Company Overview - Achieving High Growthwith Domain Specialization & Overseas
Expansion
１）Establishing a Stable Business Foundation with
Industry-Leading Performance in Specific Areas
Revenue Source is the
Temporary Staffing Business

The company is a human resource services company that operates temporary
staffing, outsourced contracting and placement services in Japan and the AsiaOceania region with the mission of being "a change agent group that positivelytransforms individuals and organizations". In Japan, the company provides
category-specific temporary staffing, placement and outsourced contracting
services in areas such as smartphone sales floors of electronics retailers, callcenters for telecommunications and financial institutions, food and otherfactories, nursing care facilities and construction sites. Overseas, in Australia
and Singapore, the company provides temporary staffing and placement
services in areas with relatively low economic volatility, such as government
and public administration. Although the company also provides placement andrecruiting services and outsourced contracting services, approximately 70% of
the company's total revenues come from the temporary staffing business.

Establish a Balanced
Business Portfolio

In the fiscal year ended March 2024, sales were \138.2 billion, with thedomestic working business accounting for about 60% and the overseas working
business about 40%. The domestic working business is roughly divided into thesales outsourcing domain (telecommunications, apparel, sales support, etc.),
call center outsourcing domain, factory outsourcing domain (food and otherfactories), nursing care support business domain, construction engineer domain
and others; and is not dependent on any one domain (each domain accounts
for about 10%). In addition, the company is one of the industry leaders in thesales outsourcing domain, call center outsourcing domain and nursing carebusiness support domain.

Australia is the Source of
Revenue for the Overseas
Working Business

The Overseas Working business consists of human resource service operations
in Australia and Singapore. About 80% of sales are in Australia, and about 50%
of sales are for temporary staffing services for government and public
administration. The rest of the company's staffing services are provided to thefinance, information and telecommunications and industrial sectors, as is thecase in Japan. In Singapore, as in Australia, a high percentage of sales are to
the government and administrative sectors.

5

WILL GROUP, INC. | 6089 (TSE Prime)
Figure1: Sales Revenue Breakdown

Source: Company Data.

２）Focus on Specific Areas & Expand Business ThroughSpeedy Growth
Latecomers in the Human
Resources Industry

The company was founded in 1997 in Osaka, Japan, as a contractor forfactory production lines (current consolidated subsidiary Centmedia wasfounded in 1997 and WILL GROUP was founded in 2006). Competitors are
Recruit Holdings (6098 TSE Prime), which was founded in 1960 and PERSOL
Holdings (2181 TSE Prime), which was founded in 1973 by Tempstaff Co.,
Ltd.

Institutional Change is a
Tailwind

One of the reasons for the steady expansion of the business, despite being alatecomer to the market, can be attributed to the systemic changes that took
place in the 2000’s. The market for temporary staffing services was boosted
by the March 2004 revision of the Worker Dispatching Act, which lifted theban on dispatching workers to manufacturing sites and by the clarification ofstandards for temporary staffing and outsourced contracting services in
response to the growing social problem of bogus outsourced contracting.

6

WILL GROUP, INC. | 6089 (TSE Prime)
Fast Management Decision
Making and Timely Entry
into Growing Markets

Since the start of its temporary staffing business in 2000, the company has
expanded its business in the field of sales representative and operator staffing,
while at the same time launching an overseas business, which dispatchesnursing care workers and construction technicians. As a result, the growth rates(CAGR) of sales and operating profit from FY3/2013 to FY3/2024 are high at
18.1% and 20.0%, respectively and the company continues to grow at a highrate despite its late start. This can be attributed to the company's decision toenter a growing market through prompt management decisions.

Accelerating Growth
Through Overseas
Expansion

In particular, the company's decision to launch overseas operations at a
relatively early stage was an excellent business decision. As the domestic
market is facing a period of population contraction, there are limits to growthin the domestic market on its own. By expanding overseas, mainly through
M&A, the company was able to acquire a new pillar of growth that accounts for
40% of its sales and earnings.

Figure2: Long-Term Performance Trends

Source: Company Data.

7

WILL GROUP, INC. | 6089 (TSE Prime)３）Details of Each Area of the Domestic Working Business① Sales Outsourcing Domain(telecommunications, apparel, sales support, etc.)
Provides support for the expansion of customers' products andservices at mass-scale electronic retailers, apparel stores, etc., andplans and manages various campaigns for major IT companies. In
sales support at mass-scale electronic retailers, the company
dispatches staff to engage in sales operations such as customer
service, product explanations and applications, management ofsales staff, and collection and reporting of sales information, mainly
for smartphones and other mobile devices.
② Call Center Outsourcing Domain(call center and others, office, finance)
For companies that operate call centers and telemarketing services,
the company provides services to help build trust between
customers and end users by dispatching staff to provide information,deliveries, after-sales services, consultations; and to receive,
process and resolve complaints. Among call centers, the company's
main services are for telecommunications companies, BPO andfinancial institutions. The company also provides outsourced
telemarketing services using its own call centers. The company also
provides office staffing and placement services.
③ Factory Outsourcing Domain(food factories, non-food factories)
The company offers services to improve its clients' productivity byproviding technology and human resource management expertise in
the production process of food, electrical equipment, electronics,
transportation equipment, chemicals/pharmaceuticals, metals andother manufacturing industries. Among manufacturing industries,
the company focuses on the food manufacturing industry, which isrelatively less susceptible to economic downturns and dispatches
staff engaged in manufacturing, inspection, quality control, sorting,packaging and other operations. The company also provides support
management contract services for outside personal laborers, whichis expected to increase in the future.

8

WILL GROUP, INC. | 6089 (TSE Prime)④ Care Support Business Domain
The company provides services that support the stable operation ofnursing care facilities by dispatching and placing nursing care staff
to companies that operate nursing care facilities. In addition,
through the operation of the "WILLOF Care Academy," which is aqualification acquisition support service, the company provides skill
improvement and career support for staff.
⑤ Construction Engineer Domain
Provides construction management engineer dispatch andplacement
servicestomajor
generalcontractors
andsubcontractors. In addition to experienced employees, the company
also dispatches newly graduated and inexperienced technicalemployees.
⑥ Other Domains(IT engineers, etc.)
The company provides dispatch and the introduction of systemengineers.
⑦ Other Businesses
The company is engaged in rental housing for IT engineers/creators(TECH RESIDENCE) and other businesses.

9WILL GROUP, INC. | 6089 (TSE Prime)４）Description of the Overseas Working BusinessBusiness Expansion
Through Aggressive M&A

The company provides temporary staffing and placement services in Singapore,other Asian countries and Australia. Since its establishment in Singapore in
2011, the company has been expanding its business through aggressive M&A.
In particular, since the acquisition of DFP Recruitment Holdings Pty Ltd., in
Australia, the company has been expanding its business scale.

Less Susceptible to
Economic Fluctuations Dueto the Focus on Government
and Administrative Projects

The company's overseas working business is characterized by its high ratio ofgovernment and administrative projects, particularly temporary staffing
projects, which are less susceptible to economic fluctuations. The company's
entry into the market through the acquisition of local subsidiaries has beensuccessful, and despite being a foreign company, it has been able to acquire
projects from local governments and public administrations. Aside fromgovernment and public administration, a relatively high percentage of its
business is in the industrial and financial sectors. As in Japan, the company has
established a business portfolio by dispatching personnel to a variety ofindustries, rather than relying on a single industry.

In Australia, Six M&A
Companies have AlreadyBeen Acquired

By region, Australia accounts for about 70% of the overseas business total. The
company has already acquired six Australian companies. The company's
overseas M&A policy is to acquire a majority stake in the first acquisition,
followed by an earn-out to acquire additional shares over the next one to three
years, targeting 1) companies in areas with growth potential, 2) companies withsuccession plans and 3) category-specific companies. In addition, PMI (Post
Merger Integration) will be considered to support business succession from thefounder, integrate back-office divisions and cross-sell among consolidated
subsidiaries. Since the acquisition, the company has focused on creatingsynergies, targeting an average annual growth rate of 15%.

Both Singapore andAustralia have Good
Economies

We believe that one of the factors behind the company's success in expanding
its business overseas is the relatively favorable business climate in both
Singapore and Australia. When the company entered the Australian market in2018, real GDP was A$2.2 trillion, but by 2023 it had grown to A$2.4 trillion.
Similarly, Singapore's real GDP was $377.4 billion in 2011, the year thecompany entered the market, and it is growing to $532.2 billion in 2023. It canbe said that the company has been able to expand its business in a timely
manner to meet the needs of companies that require manpower to keep up
with economic growth.

10WILL GROUP, INC. | 6089 (TSE Prime)
Figure 3: Trends in Overseas Working Business Performance
FY3/2020 FY3/2021 FY3/2022 FY3/2023 FY3/2024
Overseas Working

36,13336,946

48,74657,53855,430Temporary staffing

31,38533,23641,43849,28748,018Permanent placement

4,641

3,649

7,308

8,179

7,353

107

61

-

72

59

Australlia

28,16930,54938,19743,42939,231

Asia

8,024

6,369

10,548

14,11016,201

Australlia

78.0%

82.7%

78.4%

75.5%

70.8%

Asia

22.2%

17.2%

21.6%

24.5%

29.2%

Overseas Working

-

1,942

3,348

3,406

1,946

OP margin

-

5.3%

6.9%

5.9%

3.5%

Revenue by type

Others
Revenue by Region

Ratio by Region

Source: Prepared by Strategy Advisors, Based on Company Data.
Note: Does Not Include Consolidation Adjustments within Segments.

2. Business Model & Key KPI’s
１）Net Sales = Number of Workers x Dispatch Unit price x
Working Hours -- Stock-Type Business
Net Sales = Number ofWorkers x Dispatch Unit
Price x Working Hours

The revenue structure of the temporary staffing business consists of sales =number of workers x unit price of temporary staffing x working hours. In thecase of the company, it has secured approximately 1 million registeredtemporary workers through its own media, "Will of" and by other means. The
company generates revenue when registered workers find jobs with theconditions they desire in the media, the registered workers actually work andthe company charges the client the unit price for the temporary staffing
services. Cost of sales is calculated by multiplying the unit price paid totemporary workers by the number of hours and number of workers.

The Company's Revenue
Source is from RegisteredTemporary Staffing and
Fixed-Term Temporary
Staffing

There are two types of worker dispatching: registered fixed-term worker
dispatching, in which workers register in advance and sign a contract with adispatch company when a client matching their conditions is found; andpermanent fixed-term worker dispatching, in which workers become regular
employees or contract workers of a dispatch company. The former has theadvantage of allowing workers to choose when to work, working hours and job
content to suit their lifestyles. On the other hand, the latter offers more stable
employment and income and sometimes better benefits. From the standpointof the temporary staffing worker, there is a risk that a client may not be
assigned to a fixed-term worker, resulting in a period of waiting time and no
income, while from the standpoint of the temporary staffing provider, there isno need to pay salaries during the waiting period, as is the case with permanent
placement workers and the business is more stable. The company's main sourceof revenue is from fixed-term temporary staffing, which is a stable stock-type11

WILL GROUP, INC. | 6089 (TSE Prime)
business.

The Construction Engineer
Area Provides Permanent
Dispatch of Permanent
Employees for an Indefinite
Period of Time

The construction engineer field differs from other fields in that both temporary
staffing and outsourced contracting are permanent placement services forpermanent employees. Profitability is also higher than in other areas, with grossprofit margins hovering in the upper 20% range. The company is able to secure
profitability because of the clear labor shortage in the construction industry as
a whole, as well as by dispatching engineers and providing services through thedispatch of permanent employees.
Figure 4: Schematic Diagram of Temporary Staffing Business

Source: Company Data.

２）Key KPI’s are the Number of Workers and Dispatch Unit Cost
Key KPI’s are the Numberof Workers & Dispatch
Unit Cost

As mentioned above, the revenue structure is as follows: revenue = number ofworkers x unit price of temporary staffing x working hours. Given the difficultyof increasing working hours to an extreme level due to overtime regulations,the main KPI’s are the number of workers and unit price of temporary staffing.

Existing Areas Account
For Less Than 60%of the Total

The number of active workers at the end of FY3/2024 was 20,059, which is thesum of the number of permanent staff dispatched (approximately 3,000) andtemporary staff (approximately 17,000). By area, the company's sales andearnings are linked to the size of its revenue, with the existing areas (sales
outsourcing, call center outsourcing, and factory outsourcing) accounting forslightly less than 60% of total sales and earnings.

12

WILL GROUP, INC. | 6089 (TSE Prime)
Figure 5: Number of Employees by Area as of the End of FY3/2024(Unit: Persons)

Source: Prepared by Strategy Advisors, Based on Company Data.

KPI’s Include the Numberof "Will of" Registrants,
Retention Rate ofPermanent Temporary
Staff & Number of Hires

The number of registered users of "Will of", the company's media, the retention
rate of permanent staffing and the number of hires should also be monitored
closely as management indicators that affect the number of workers. The
company conducted a "Will of" promotion in FY3/2024. The company
conducted terrestrial TV commercials featuring celebrities and distributed online
advertisements on YouTube and other sites. The company has seen positive
response in terms of recognition, the number of nomination searches andintention to use the service; and these measures have led to an increase intemporary staffing registrations on "Will of". Given that there are many
competing media outlets, it is essential to secure a certain level of inflow to Willof in order to secure temporary staff.

Retention Rate in theConstruction Area is Low,
with High Room for
Improvement

In addition, the company disclosed the retention rate and the number of fulltime temporary staff hired in the construction engineer field, which is currently
the focus of the company's efforts. The company expects to improve theretention rate to the same level as the competition by reviewing the hiring
process and continuously negotiating for higher fees (unit price negotiations)from FY 3/2025 onward. The company expects to improve the retention rate toa level comparable to its competitors by improving compensation through areview of the hiring process and ongoing negotiations for higher fees (unit pricenegotiations).

It is Important toSophisticate the Processof Recruitment, Training,
Operation & Retention

In the construction engineer field, inexperienced mid-career workers accountfor nearly 60% of the total number of workers in the company's workforce andit is extremely important to establish a three-way process for clients, employees
and the company; by upgrading the series of hiring, training, operation andretention processes. In order to achieve this, it is necessary to establish asystem with a high retention rate and high yield rate in parallel with

13

WILL GROUP, INC. | 6089 (TSE Prime)
strengthening recruitment.
Figure 6: KPI Trends in the Construction Engineer Domain (Unit: Persons, %)Source: Company Data.
Note (*): Occupancy Rate for 1Q is the Occupancy Rate for the Month of June, Excluding the Impact of the New
Graduate Training Perio

The Company Plans to Hire
Approximately 1,500 People
in the Area of Construction
Engineers in the Future

In FY3/2024, the company made steady progress in hiring constructionengineers and achieved its recruitment target (1,270). However, in the revisionof its medium-term management plan disclosed at the same time as the yearend earnings announcement, the company announced a reduction in its initial
recruitment target (from 2,000 to 1,500 in FY3/2026). The company plans tocontinue hiring approximately 1,500 employees and expand its humanresources while seeking the best balance based on the effects of future
investments and retention and utilization rates.

Capital and Business
Alliance with ROXX, Inc.
to Secure Human Resources

In addition, the company aims to strengthen its recruitment in the area of
construction engineers, In May 2024, the company entered into a capital andbusiness alliance with ROXX, Inc. （ROXX operates "agent bank," a cloud job
database specialized in the recruiting business. In addition to the 3,500 regularjobs, the database contains approximately 39,000 jobs from the company's
partner, Persol Career; and the company uses this information to conduct morethan 10,000 job introductions each month. The company has already hired
several hundred people through ROXX, Inc., and is expected to continue tointroduce highly accurate job seekers to the company in the future.

14

WILL GROUP, INC. | 6089 (TSE Prime)
Figure 7: Trends in the # of Construction Engineer Recruits (Persons)

Source: Company Data.

Dispatch Unit Price Varies
by Area

Although the company does not disclose specific amounts of dispatch unit
prices, the unit prices for each area based on interviews are as follows. Whilethe unit price in the sales outsourcing domain is slightly high at \2,500 per
hour, the unit price in the call center outsourcing domain, factory outsourcing
domain and nursing care support business domain is relatively low. The
existence of competition in each of these areas makes it difficult to raise unit
prices to extreme levels. The unit price in the construction engineer field differsfrom the other fields, ranging from \2,500 to \4,500 and varies widely. Sinceengineers are dispatched, there is a large difference in the unit price of
dispatched workers depending on the skills of each worker.
Figure 8: Dispatch Unit Cost Per Area (Unit: ￥/Hour)

Source: Prepared by Strategy Advisors, Based on Company Data.

15

WILL GROUP, INC. | 6089 (TSE Prime)
The Construction Engineer
Area is More Likely to
Negotiate Unit Prices

In the area of construction engineers, the company is actively negotiating
charge increases and the average contract unit price for new graduates andinexperienced employees has increased by 5% per year. In addition, the unit
price per contract for each year of employment is also increasing. As a result,
it is easier to raise the unit price for experienced and skilled employees than inother areas. Another feature of the construction engineer field is that there is awell-developed qualification system to prove skills, such as being a qualified
construction management engineer. For inexperienced employees who join thecompany on a full-time basis, it is possible to negotiate higher fees by improving
their skills through the acquisition of qualifications, in parallel with their practicalexperience in the field.

Established System toSupport Career
Development

A construction management engineer is a person in charge of construction sitemanagement who is responsible for planning, process control and quality andsafety control at construction sites. It is recognized as a national qualificationand it is required that a contract amount of \40 million or more must have acertified construction management engineer as a "chief engineer". According to
the website of Will of Construction, a subsidiary of the company that provides
human resource services in the construction engineer field, the averagemonthly number of certified engineers is 83.

Figure9: Average Contract Unit Price, Average Overtime (Monthly)(Unit: Hours, \1,000)

Source: Company Data.

16

WILL GROUP, INC. | 6089 (TSE Prime)３）Profitability and Cost Structure
Gross Profit Margin Has
Been in a Range

The company's gross profit margin has remained in the range of 20-22%.
Generally, gross profit margins increase with the expansion of business scale inmany industries. For example, in the manufacturing industry, as sales increase,manufacturing costs are reduced and the gross profit margin rises. For
example, in the manufacturing industry, the gross profit margin rises with anincrease in sales as manufacturing costs are reduced. In the retail industry, thegross profit margin rises with a reduction in purchasing costs through volume
discounting. On the other hand, in the temporary staffing business, the margin
earned from each temporary worker is fixed, limiting the improvement in grossprofit margin as the company grows in size. Therefore, while the company's
revenue grew 1.7 times from FY3/2018 to FY3/2024, its gross profit margin
improved only by about 2%.

Gross Profit Margin
Improved Due to the
Expansion of the Overseas
Working Business, WhichAccounts for a High
Proportion of Placement &Recruiting Activities

The main reason for the 2% improvement is an improved business mix due tothe expansion of the overseas working business. The overseas working businesshas a higher proportion of placement and recruiting (commission income), andits gross profit margin is higher than that of the domestic working business.
The gross profit margin of this business increased to 41.7% (FY3/2024),
resulting in an improvement in the gross profit margin of the entire company.

High Profitability in theConstruction Engineer Area

Operating Income Margin
Remained Flat Due to an
Increase in SG&A Expenses

Gross profit margins in each area of the domestic working business are
generally linked to differences in unit prices of temporary staffing, with theconstruction engineer area accounting for the highest percentage at the higher
half of 20%-30% range, followed by the sales outsourcing area, call center
outsourcing area and finally the factory outsourcing area. The nursing care
support business domain is slightly more profitable than the call center
outsourcing and factory outsourcing domains because the amount isdetermined by nursing care fees.
Looking at profit margin trends, gross profit margin improved by 1.9%
compared to FY 3/2018, but the operating profit margin slowed slightly, due toan upward trend in SG&A expenses resulting from the M&A of C4 (Will ofConstruction's predecessor company) and 4 overseas companies, as well as theincrease in SG&A expenses from FY 3/2023 onward. In addition, the company
has been making up-front investments (increased recruiting and personnel
expenses) in its focus areas (construction engineers, startups and nursing care)
and advertising to raise awareness of its own brand "WILL OF" since FY3/2023.
Upfront investments amounted to \1 billion in FY3/2022, \830 million in
FY3/2023 and \800 million in FY3/2024.

17

WILL GROUP, INC. | 6089 (TSE Prime)
Figure10: Trends in Gross Profit Margin and Operating Profit Margin

Source: Prepared by Strategy Advisors, Based on Company Data.
Note: Operating income margin for FY3/2024 takes into account the impact of the saleof subsidiaries (\2.06 billion) and the exclusion of subsidiaries from the scope of
consolidation.

Labor Costs Accountfor a High Percentage
of SG&A

The largest component of SG&A expenses (as shown in the Annual Securities
Report) is employee benefit expenses, which are labor costs for WILL GROUP
employees, coordinators working at operating companies, sales personnel,
back-office personnel, etc. (labor costs for permanent temporary workers areincluded in cost). Recruiting expenses are fees paid to other media outlets forjob postings and fees paid to human resource agents. Fees and commissions
are the sum of various payments, and a relatively large component is
information system-related expenses.

18

WILL GROUP, INC. | 6089 (TSE Prime)
Figure11 Breakdown of SG&A and Trends (￥mil)

Source: Prepared by Strategy Advisors, Based on Securities Reports.
Note: "Other" is Calculated by Subtracting Each Expense from Total SG&A Expenses.

４）Balance Sheet and Cash Flow
Balance Sheet is Healthy,
With Net Debt of-\1.17 Billion

The company has a sound balance sheet, with net debt (total long and shortterm debt minus cash and deposits) of -\1.17 billion at the end of FY3/2024,with cash and deposits exceeding debt. In addition, human resource service
companies do not require facilities such as factories, so their fixed assets
account for a low percentage of their total assets, including those of theircompetitors. Therefore, it is rare for a company to take out large loans forpurposes other than M&A. In the case of the company, it took out \8.51 billion
in long-term debt in FY3/2019, due to the acquisition of 10 companies inAustralia and Singapore, in addition to C4 (now Will of Construction). Since
then, the company has gradually repaid the debt and its financial position has
improved.

10 Days of Trade Debt
Payment is Due

Another characteristic of the temporary staffing business is the relatively large
amount of trade receivables. In the case of the company, wages are paid to
employees and staff on the 20th of the following month, while accounts
receivable are collected at the end of the following month, resulting in 10 daysof trade debt payment (in advance).

19

WILL GROUP, INC. | 6089 (TSE Prime)
High FCF (Free Cash Flow)
Generation Capacity

As mentioned above, although there is an impact from increases and decreases
in working capital, the company is fundamentally strong in cash flow generationand has generated \3-4 billion of FCF (CF from operations + CF frominvestments) every fiscal year since FY3/2021. In the case of the company,
operating CF is calculated by adding depreciation and amortization (noamortization of goodwill due to IFRS) to profit and taking into account changes
in working capital. The company's investment CF is mainly for the acquisitionof property, plant and equipment and intangible assets.
Figure12: Net Debt (bar) and FCF (line) (￥mil)

Source: Prepared by Strategy Advisors, Based on Company Data.

20

WILL GROUP, INC. | 6089 (TSE Prime)
3. Competitive Advantage Rooted in Top
Management's Origins and MVV
１）Founder, Chairman Ikeda's Background & Company History
Background of Chairman
Ikeda's Life and His
Decision to Start his Own
Business

Chairman Ryosuke Ikeda is 55 years old, born in Hyogo Prefecture (December
5, 1968). He has been a business owner since his grandfather's generation andhis father's business failure and the death of his mother without satisfactory
medical treatment affected him. Believing that knowledge and skills in
accounting were necessary for management, he joined an accounting firm
(April 1992). Later, after the Great Hanshin Earthquake (1995), he realized that
he had to do what he wanted to do to the best of his ability while he was still
alive and decided to start his own business.

Centmedia is Established

In January 1997, Centmedia (now Will of Work, a consolidated subsidiary) wasestablished in Osaka City with telemarketing as its main business. In the same
year, BigAid was established in Osaka City as a short-term contractor for light
work, such as moving and setting up event venues. In October of the same
year, Mr. Ikeda participated in the launch of Big Aid out of a desire to start abusiness, which led to the current WILL GROUP.

A Series of Failures andthe Company's Values

At that time, Big-Aid was a venture company in its early stages, with only threestaff members: the president, the branch manager, and Chairman Ikeda. The
company started out as an outsourced contracting service for the
manufacturing industry and although it had no track record and was facing aseries of failures, the staff and Mr. Ikeda worked together to somehow improve
the field and did not run away from the task. What emerged from thisexperience was the motto "Believe in Your Possibility," which has become thecompany's current corporate value. In three years, BigAid grew to have \500
million in annual sales.

Factory Outsourcing
Business is Launched

In 2000, with the aim of achieving synergy between the telemarketing andoutsourcing businesses, St. Media merged with BigAid and launched its factory
outsourcing business. In the same year, St. Media established St. Staff for the
purpose of providing temporary staffing services.

Appointment of President
and Challenges

At the age of 32, Mr. Ikeda was appointed president of the company. He aspiredof becoming a manager, but since his dream was solely to run the company hehad founded himself; he was not comfortable with being appointed president,
or a hired gun. Although he once refused the offer, he became president on thepromise that he would remain in office until the company went public. However,upon assuming the position of president, he found that St. Media was a lossmaking company and even the office rent was in arrears, so the company was
strapped for cash. To improve these conditions, he implemented management
reforms using every means at his disposal and succeeded in bringing thecompany back to health in about a year, but this highlighted an important issue:
the company lacked a clear corporate philosophy and vision.

21

WILL GROUP, INC. | 6089 (TSE Prime)
The Company's MVV

When Mr. Ikeda asked a question at a lecture by Masao Horiba, then Chairmanof Horiba Manufacturing Co., Ltd. famous for its company motto, "Beinteresting"; Mr. Horiba replied, "You are still young, so you should devote
yourself to your work. You should value the customers in front of you and put
into words what is truly important and absolutely non-negotiable as you growthrough your management". From then on, he earnestly worked on what wasin front of him, and in 2003, the principles of "Positively Individual andOrganization," "We Do Change, and "Change Agent," which led to the current
MVV, were born.

Repeated Hardships Became
a Source of Sustenance for
Him as a Manager

Chairman Ikeda's positive attitude in the face of adversity, including the failureof his father's business, the bereavement of his mother and the restructuringof a loss-making company, is reflected in the company's MVV and culture, andit can be said that these experiences have provided him with the strength to bea manager in the human resources business, where people are assets.

22

WILL GROUP, INC. | 6089 (TSE Prime)２）President Yuichi Sumi's Past and Future
President Sumi's
Background

President Yuichi Sumi is 43 years old and was born in Abiko, Chiba Prefecture(October 6, 1980). His hobby is trail running. He grew up in a typicalbusinessman family with parents and a younger sister. When he was a student,
he wandered around the world in several countries as a backpacker. His dreamfor the future was to "earn money and live a life of visiting world heritage sites".

Joined Centmedia, Then
Worked in Sales and Human
Resources

He wanted to become president at the age of 30 and Chairman at 40. When he
was job hunting in the human resource service industry, where he thought hecould grow quickly, he found St. Media. After graduating from university, I
joined Centmedia (now Will of Work) in April 2003 and was assigned to theSales Department. 2 years later, when the first branch was opened in Ibaraki
Prefecture, he became the branch manager and was later transferred to the
Human Resources Department, where he was mainly responsible for new
graduate recruitment.

From General Dispatching
to Outsourced Contracting

In 2009, he transferred to St. Media Field Agent (now Will of Work), which
manages the manufacturing field. He received an order from a major food
manufacturer to dispatch workers to their factory, gradually gaining the client's
trust and after three years, the company began to receive around 200
dispatched workers. In addition, orders shifted from general dispatching tohighly profitable outsourced contracting. In general dispatching, the client side
is responsible for guaranteeing the quality of the deliverables. With outsourced
contracting, however, the client is responsible for guaranteeing the quality ofthe deliverables. This required a high level of operational know-how and at thesame time led to increased profit margins. During this period, his goal was tobe active in the company rather than to become an independent president.

The Financial Crisis
Triggered by the Lehman
Brothers Collapse, Led theCompany to Acquire
Expertise in Hybrid
Dispatching

The turning point in the company's growth was the economic crisis triggeredby the financial crisis (2008). As orders from the automobile and othermanufacturing industries plummeted, the company liquidated its small-lot
clients and selected around 100 clients with whom it should have long-term
relationships and concentrated its resources there. It was also during this periodthat the company's expertise in hybrid temporary staffing, which is one of its
strengths, was enhanced. After the financial crisis, the company's performance
deteriorated significantly, forcing the company to dispatch its regular employees
from the head office to the field. The company's regular employees andtemporary staff worked together to help each other overcome the economiccrisis and immersed themselves in on-site work in unison, which brought theregular employees and temporary staff closer together and the hybrid dispatchstyle took root. Subsequently, as business conditions recovered, the company
was able to leverage hybrid temporary staffing to grow its temporary staffing
business.

23

WILL GROUP, INC. | 6089 (TSE Prime)
Experienced HR
Department Manager

President Sumi has worked in sales at the group's major domestic subsidiaries
before becoming the head of the human resources department for the entire
group in Japan. He has extensive knowledge of the human resources businessand has led the company with strong leadership skills. Mr. Sumi has since beenrecognized for his skills and has risen quickly through the ranks at a youthfulage.

After Holding Various
Positions, he Became
President of Will ofConstruction in April 2021

In April 2009, he transferred to Centmedia Field Agents (now Will of Work),
where he was appointed General Manager of Sales in April 2014, Director in
April 2016, and Executive Officer and General Manager of Human Resources for
WILL GROUP in July 2018 In June 2019, he was appointed Director ofCentmedia, In April 2021, he was appointed President of Will of Construction in
the area of construction engineers, his focus area.

Appointed as Representative
Director of WILL GROUP to
Leverage the Domestic
Working Business

In June 2022, he became a director of WILL GROUP and in June 2023, heassumed the position of Representative Director. Based on Chairman Ikeda's
decision that the next generation needs to be refreshed in order to continue torespond to change and achieve sustainable growth, he replaced former
President Shigeru Ohara (appointed in 2016), who had led the company's
growth in tandem with Chairman Ikeda. The company is expanding its businessin the field of construction engineers and increasing the ratio of full-time
temporary staffing to its total workforce in order to get its domestic working
business back on a growth trajectory.

24

WILL GROUP, INC. | 6089 (TSE Prime)３）MVV (Mission, Vision and Values) and Competitive Advantage
The Mission is: Be "A
Change Agent Group that
Positively Transforms
Individuals & Organizations

The company's mission is to be "a change agent group that positivelytransforms individuals and organizations". The company is convinced that if
positives can outweigh negatives by as little as 51 to 49, both individuals andorganizations will gradually grow and become a better society.

The Current Mission isBorn as We Continue to Deal
With Customers and Staff

This mission was born out of facing customers and staff onsite. The firm
believes that the human resources business is more than just matching andthat both clients and staff can grow in a better direction when they work
together to create better workplaces; and that creating positive change is theultimate value of WILL GROUP's existence.

Vision Calls for Being
No. 1 in Each Domain

The company's vision is to create a branding company with high expected value
in the business domains of "work", "play", "learn" and "live," and to become theNo. 1 presence in each domain.

Values are"Believe in Your Possibility"

And the value is to "Believe in Your Possibility": a company started by threepeople, always looking forward, no matter how difficult the situation, believing
in their own potential and in the potential of their colleagues. Even today, withthe company having grown to such a large scale, the potential of many people
is the foundation of the group and the driving force of the company.

MVV Reflects Chairman
Ikeda's Way of Life &Management Philosophy

In our opinion, the company's MVV strongly reflects the way of life andmanagement philosophy of its founder, Chairman Ikeda. In order to scale thelabor-intensive temporary staffing business amidst a certain number ofcompetitors, it is important for both individuals and the organization to move
forward in a positive manner; and it is this kind of organizational attractivenessthat has led to the securing of temporary and permanent staff and supported
the growth of the business to date.

Competitive Advantage
Lies in Hybrid Dispatch

The company's competitive advantage lies in its hybrid temporary staffing
model, which leverages its organizational strength. Hybrid dispatching is aservice in which WILL GROUP employees (field supporters) and temporary staff
work together as a team at the client site, enabling the company to respondquickly and accurately to client needs. The hybrid temporary staffing businessmodel was born in the wake of the financial crisis in 2008, when the company's
performance deteriorated significantly and it was forced to dispatch regular
employees from the head office to work in the field. This is a strength that othercompanies do not have.

Michael Porter's
Differentiation Strategy

Michael Porter classifies competitive strategies into differentiation, costleadership, and concentration. The company has achieved high growth in thestaffing industry despite being a latecomer through differentiation. Porter lists
the following sources of differentiation: (1) product features, (2) coordinationof functions, (3) timing, (4) geographic location, (5) product assortment, (6)relationships with other firms and (7) reputation (brand).

25

WILL GROUP, INC. | 6089 (TSE Prime)
Hybrid Dispatch Facilitates
On-Site Communication

In the case of general temporary staffing, the client company must train thetemporary staff, but in the case of hybrid temporary staffing, field supporters,
who are WILL GROUP employees, train the staff on behalf of the client company.
In the case of hybrid dispatching, however, WILL GROUP employees, field
supporters, train staff on behalf of the client company. This allows for smoothcommand and control and also allows for good teamwork since the staff
members are working at the client company as colleagues. As a result, themorale and retention rate of temporary staff is improved. Especially in anindustry with a high turnover rate, the improvement of on-site communicationand follow-up systems through hybrid dispatching, etc., will be extremely
important.

Hybrid Dispatch is Rooted
in the MVV

Note that we believe that hybrid dispatching has become a competitive
advantage for the company because it is rooted in WILL GROUP's MVV. In aninterview for the Integrated Report (2023), newly appointed President Sumi
stated, "We have a corporate culture that values meritocracy, trying to create
results not individually but as a team, and the quality of human relationships".
As can be seen from these words, the company has a culture of valuing humanrelationships, whereby the company's employees and regular employees work
together as a team to create results, regardless of their positions as regular
employees or temporary staff.

26

WILL GROUP, INC. | 6089 (TSE Prime)
4. Future Equity Story and Market Potential
１）From "Numbers" to "Quality" in Order to Win in the Era of"Job Mismatch"
The Equity Story is a Shift toa Value-Added Business
Model

The company's equity story is to move away from a low-profit business model
centered on fixed-term temporary staffing and increase the ratio of profitablebusinesses such as permanent staffing, placement and recruiting andoutsourced foreign personnel management and thereby move to a high valueadded business model, so that the firm that can be a survivor in an era of
declining population as a winner in an era of "job mismatch". Against the
backdrop of slowing growth in existing areas, a drastic change is required.

Shortage of Professionals is
Expected to Become More
Apparent in the Future

We believe that changes in the macro environment will also be a tailwind.
According to a survey by Mitsubishi Research Institute, the number of jobs that
require less manpower is expected to increase in the latter half of the 2020sdue to technological changes represented by AI and the "job mismatch"(increasing gap between required skills and skills possessed) is likely to further
widen the gap. According to the study, there will be fewer production andadministrative jobs, which are currently in short supply and an overabundanceof human resources, while at the same time there could be a shortage of 1.7
million professionals who can lead technological innovation and apply it to realbusinesses.

Change From "Numbers"
to "Quality"

In light of these social changes, the company intends to shift to a more
profitable business model by 1) accelerating growth in the constructionengineer field, which is centered on permanent worker dispatching and 2) regrowing the domestic working business (outside the construction engineer field)by expanding foreign worker hiring management contracts and permanent
worker dispatching. In Japan, where the population is shrinking, the current
business model centered on fixed-term temporary staffing is reaching the limitsof growth. Going forward, the company is expected to leverage its existing
business assets (clients and temporary staffing know-how) to shift from a"quantity" to a "quality" business model and increase its corporate value.

27

WILL GROUP, INC. | 6089 (TSE Prime)
Figure13: Gap Between Supply & Demand of Human Resources
by Occupation (v’s 2015)

Source: Mitsubishi Research Institute, "Medium- to Long-Term Outlook for Domestic
and Foreign Economies, FY 2018-2030" (July 9, 2018).

２）Market Potential and Growth Strategies for theConstruction Engineer Domain
Labor Environment is
Improving

The construction engineer field has become so unpopular among young people
that it is derided as a "3K" (hard, dirty, and dangerous) industry due to the long
working hours outdoors and the risk of accidents that are characteristic of theconstruction industry. The number of workers in this industry continues todecline and there is a chronic shortage of labor. Meanwhile, improvements inthe working environment in the construction industry are underway inaccordance with the Law on Reform of Working Conditions (to be enforced in
April 2019). Since the construction industry was allowed to take special
measures, the overtime limit regulations have been in effect since April 2024.
The improved labor environment may lead to an increase in the number of job
seekers in this industry in the future, which is a tailwind for the company.

Open Up Group is
Aggressively Expanding
its BusinessOpen Up Group (2154 TSE Prime), a competitor in the construction engineer
field, posted construction segment sales of \40.13 billion (FY6/2023), aboutfour times the company's revenue and employs more than 6,000 engineers inJapan. The company employs 2,340 people annually (in FY6/2023), indicatingthat it is still in a growth phase and is accelerating its business expansion. In
our opinion, both companies are in a growth phase that prioritizes market
acquisition, as charge-up negotiations are progressing smoothly.

28

WILL GROUP, INC. | 6089 (TSE Prime)
Market Growth Potential
is High

Of course, there is a possibility that the competitive environment will worsen in
the future and that adverse effects such as recruitment difficulties and aslowdown in the range of charge increases will become apparent. However,considering that the competitors, who are leading the industry, are expanding
their business at full throttle, the market has high growth potential and thecompany should be able to follow their lead.

Also Possesses Know-How
in Dispatching Permanent
Employees

Although the company's main business has been fixed-term temporary staffing,it has also provided hybrid temporary staffing services and thus has a certain
amount of expertise in permanent staffing, which in our view has been apositive factor. Although this business is somewhat different from thecompany's traditional business of dispatching permanent engineers, we expect
the company to accelerate its growth in this business by leveraging its existing
business assets, such as improved recruitment and retention rates.

Policy to Hire 1,500
Employees

The company intends to establish a structure that will enable it to hire 1,500
people in this area by the final year of its medium-term management plan,
FY3/2026. As mentioned above, the number of employees hired by the OpenUp Group, a competitor, is 2,340 per year, so hiring 1,500 employees is arealistic target.

There is Significant
Room for Improvementin Retention Rates

In addition to strengthening recruitment, the company intends to improve theretention rate. Since the company has prioritized business expansion andaggressively strengthened the hiring of new graduates and inexperienced
employees, the retention rate is 71.2% (as of the end of FY3/2024), whichappears to be lower than that of competitors. The resignation rate of the OpenUp Group (number of employees who resign in a year/number of employees
enrolled at the end of the previous year + number of employees hired in a year)
is around 20-24%, suggesting that there is room for the company to improve
its retention rate to the upper 70% range.

Figure14: Number of Active Workers and Sales Revenue in theConstruction Engineer Area (￥mil LHS/Persons RHS)

Source: Prepared by Strategy Advisors, Based on Company Data.

29

WILL GROUP, INC. | 6089 (TSE Prime)３）Overview and Growth Potential of the Foreign Management
Contract Business
Overview of Foreign
Management Trusteeship

Foreigner Management Outsourcing is a service in which the company provides
a variety of support for foreign workers on behalf of companies that host foreigntechnical intern trainees. In cooperation with the supervisory organization, thecompany provides preliminary guidance prior to travel to Japan, assistance withimmigration and transportation, housing, assistance with contracts necessary
for daily living and accompaniment with official procedures. The company has
an overseas group company in Vietnam, Myanmar, Indonesia and othercountries, which works in partnership with state governments and local school
corporations.

Livelihood Support Fees
are a Source of Revenue

In addition to the placement fee earned during the recruitment stage, thecompany's sources of revenue include a monthly cost of living support(\30,000) and visa application agency fees (from \50,000 per person). The
company outsources visa application agency fees to administrative scriveners,
etc., so profitability is likely to be low, but the cost of recruiting and lifestylesupport fees is low, so profitability is likely to be high.

Expected to Earn About\1 billion

The company intends to increase the number of foreign employees undermanagement to 3,500 by FY3/2026, the final year of its medium-term
management plan; the number at the end of FY3/2024 was 2,341, and thecompany expects to increase this number by improving the quality of orders(locations and salary conditions that make it easier to attract customers). The
monthly living support fee of \30,000 x 12 months x 3,500 persons is expected
to generate approximately \1 billion in revenue (roughly equivalent to grossprofit).

Leverage Business Assets
Such as Existing Customers& Overseas Group
Companies

In addition, 1,702 of the total number of foreign employees under contract for
management as of the end of FY3/2024 were in the factory outsourcing area.
In the case of the company, it is able to leverage its existing client assets
because it has been conducting business with food and other factories in thetemporary staffing business. In addition, as mentioned above, the company
hires locally through its overseas group companies, state governments and local
educational institutions, making it relatively easy to expand this business aslong as it can secure quality orders.

The Number of TechnicalInternship Residents
is on the Rise

The market environment is also favorable, and although the number of foreign
residents temporarily declined due to the Corona disaster, it has been
recovering since 2022, reaching 3.22 million as of the end of June 2023. By
country, the number of foreign residents from Vietnam and the Philippines is ona remarkable upward trend. Compared to the end of December 2010, thenumber of technical intern trainees increased by 10.2% over the past six
months and the market is expected to continue to expand in the future.

30

WILL GROUP, INC. | 6089 (TSE Prime)
Figure15: Changes in Foreign Residents (‘000)

2,232 2,383
2,066 2,122

2013

2014

2015

2016

2,562

2017

2,731

3,075 3,224
2,933 2,887
2,761

2018

2019

2020

2021

2022

2023

Source: Immigration and Immigration Agency.
Note: Figures for 2023 are as of the end of June and figures for other years are as ofthe end of December.

４）The Number of Active Full-Time Temporary Staff by
Area & Profitability
Factory Outsourcing and IT
Engineering Domains Led
the Permanent Staffing
Business

In addition to fixed-term temporary staffing, the company is also focusing on
permanent staffing and the number of workers is steadily increasing. The
factory outsourcing and IT engineering fields led the increase in permanent
staffing.

Use of Permanent andHybrid Temporary Staffing
for Each Area

In the case of the company, there are two types of dispatching: hybrid
dispatching of regular employees (field supporters) and regular employee
dispatching alone, with varying degrees of intensity in each area. In the Factory
Outsourcing domain, which supports factory operations, a high percentage ofhybrid dispatching is used, while in the Sales Outsourcing domain, the company
uses only permanent employee dispatching. In the IT engineer field, hybrid
dispatching is not practiced and is basically a permanent employee dispatch.

Profitability of Permanent
Staffing is HighCompared to fixed-term temporary staffing, permanent temporary staffing
requires a certain degree of skill and thus has a higher unit cost. As a result,the gross profit margin for fixed-term temporary staffing services is around
14% to 17%, while that for permanent temporary staffing services is around
21% to 28%. In terms of profitability by area, the IT engineer area has thehighest profitability, followed by the construction engineer area, then the sales
outsourcing area and then the factory outsourcing area.

There is a Serious Shortageof Engineers and Growth
Potential in this Area is HighThe IT engineering field has just started up, and although the number of active
employees is low at 342 (as of the end of FY3/2024), the shortage of engineers
is clear and the growth potential is high. Some IT companies are already hiring
locally overseas. The company may be able to increase the speed of growth in
this area by taking advantage of its overseas group companies, hiring skilled
Southeast Asian engineers locally and assigning them to Japanese companies.

31

WILL GROUP, INC. | 6089 (TSE Prime)
The Company Plans to
Expand the Number of FullTime Temporary Employees
to Roughly 3,500 by the End
of FY March 31, 2024

The company intends to increase the number of full-time temporary workers toapproximately 3,500 by the fiscal year ending March 31, 2024, the final year ofits medium-term management plan. While the sales outsourcing and call center
outsourcing areas continue to struggle, the company intends to achieve steady
growth in other areas, making this a feasible quantitative target.

Figure16: Number of Full-Time Temporary Workers in Operation(Excluding Construction Engineer Area) (Unit: Persons)

Source: Prepared by Strategy Advisors, Based on Company Data.

5. Medium-Term Management Plan andCurrent Performance Trends１）Progress of the Medium-Term Management Plan
In the Previous MediumTerm Management Plan,the Policy was to Improve
Profitability in Existing
Areas and Expand Strategic
Investment Areas

In May 2023, the company announced a new medium-term management plan
titled "WILL-being 2026" (FY3/2024-FY3/2026). The previous medium-term
management plan, "WILL-being 2023" (FY3/2021-FY3/2023), called for
improving profitability through a portfolio shift and the company has beenworking to improve profitability in existing areas (factory outsourcing, callcenter outsourcing, and sales outsourcing). At the same time, the company alsoplans to expand its strategic investment areas such as the construction engineer
area, nursing care business support area and start-up human resources support
area.

32

WILL GROUP, INC. | 6089 (TSE Prime)
In Addition to a
Deteriorating External
Environment, Strategic
Investment Areas Failed
to Meet Their Targets

Revenue from the start-up human resource support domain expanded from\1.26 billion (FY 3/2020) to \2.99 billion (FY3/2023) and the overseas working
business also achieved improved profitability due to an increase in the ratio ofplacement and recruiting activities. On the other hand, the hiring environment
in the existing areas of Corona Disaster (factory outsourcing, call center
outsourcing, and sales outsourcing) deteriorated more than expected, resulting
in sluggish performance in these areas. In addition, in the strategic investmentarea, recruitment of construction engineers did not proceed as planned; and in
the nursing care area, the company found that it could not expand its placement
and placement services (temporary staffing with the expectation of becoming
a full-time employee) as much as it had expected.

Figure17 Schematic of Portfolio Shift in the Previous Mid-Term Management Plan

Source: Company Data.

The New Medium-Term
Management Plan has
Qualitative & Quantitative
Targets

Based on these reflections, "WILL-being 2026" has set as its basic policy the
re-growth of the domestic working business and as its key strategic objectives:
1) further growth and profitability in the construction engineer field, 2) regrowth of the domestic working business (other than the construction engineer
field) and 3) stable growth of the overseas working business. The company also
set specific quantitative targets for revenue, operating income, the number of
construction engineers it plans to focus on hiring and retention rate, the numberof full-time temporary staffing workers (excluding construction engineers), thenumber of foreign employees it will support and the percentage of sales fromplacement and recruiting activities (overseas working business).

33

WILL GROUP, INC. | 6089 (TSE Prime)
Focus on Construction
Engineer Area

It is noteworthy that the company has set specific targets in the constructionengineer field. The company intends to further accelerate growth in this area
over the same period, as it still has high growth potential; and in addition, ismore profitable than other areas due to its engineer staffing services.

Promote Support for
Permanent Staffing and
Employment of Foreign
Nationals for the Re-Growthof the Domestic Working
Business

In addition, the company intends to aggressively promote permanent staffing
and support for hiring non-Japanese workers in order to re-grow its domestic
working business. The company's strength in hybrid temporary staffing has
given it expertise in permanent staffing; and it intends to expand its businessin the sales outsourcing, factory outsourcing and IT engineering fields. The
company also intends to significantly increase the number of foreign employees
it manages on a contract basis and to increase the monthly cost of living supportby \30,000 per person to improve profitability, which will lead to the placementof foreign employees.

Secured \10 Billion for
M&A Investment Over
3-Years

In addition, the company expects to secure an investment line of \10 billion
over three years through free cash flow and borrowings to fund discontinuous
growth through M&A and to pursue aggressive acquisitions. Targets include
companies engaged in the IT, construction and manufacturing engineer staffing
business, companies that provide placement services in areas where job types
are expected to expand to experts and also companies engaged in educationand training.

Downward Revision of theMedium-Term Management
Plan in the First Year of thePlan

At the same time as the announcement of the year-end results, the company
also announced a downward revision to its medium-term management plan.
Although the company is making steady progress in the area of constructionengineers, on which it has been focusing its efforts, and in increasing thenumber of foreign workers under management; it appears that it will not beable to achieve its initial targets. In addition, demand for human resources has
fallen as the rapid post-Corona rebound bubble has run its course and this is
the main reason why the company is struggling in the overseas Working
business. The company dropped its quantitative targets for sales revenue andoperating profit and at the same time revised its key KPI targets downward.

Sales Revenue & Operating
Income Targets to be
Undisclosed

Although it is extremely regrettable that the downward revision was made one
year after the disclosure of the new medium-term management plan, it can beinferred that the changes in the external environment are so difficult to readthat the targets for sales revenue and operating income were not disclosed. It
also means that the company can concentrate on promoting strategies for the
re-growth of its domestic working business without being tied hand and foot to
unreasonable
performancetargetsundersuchdifficult-to-forecast
circumstances and can be expected to make management decisions that will
ensure sustainable growth.

34

WILL GROUP, INC. | 6089 (TSE Prime)
Figure18: Quantitative Targets of the Medium-Term Management Plan
FY5/24(Downward

FY3/23

FY5/23Gross Profit (￥ bn)

143.9

170

-

Operating Profit (￥ bn)

5.31

6.5

-

OPM

3.7%

3.8%

-

1,000

2,000

1,500

71.0%

73.0%

71.5%

2,450

4,700

3,500

1,750

6,800

3,500

14.0%

17.0%

-

Number of Employees/Year(Construction Technology)
Employment rate
(Construction technology field)
Employees dispatched to work (excluding theconstruction technology field)
Foreign employees
Employment agency sales ratio(Overseas working business)

Revised)Source: Prepared by Strategy Advisors, Based on Company Data.

２）Current Performance Trends
Profit Secured in FY3/2024
Through the Sale ofSubsidiaries

For the fiscal year ended March 31, 2024, net sales were \138.22 billion (down
4.0% YoY) and operating income was \4.52 billion (down 14.9% YoY), fallingshort of the initial plan (net sales of \144.0 billion and operating income of\4.20 billion) in terms of sales, but exceeding it in terms of income. In addition
to the struggles of the domestic working business, the overseas working
business also suffered a decline in revenue as the impact of the Australian
government's shift from temporary to permanent employment became
apparent.

By Domain The Sales & Call Center
Outsourcing Domains
Remained Weak

By area, sales in the sales outsourcing domain declined mainly due to the slump
in telecommunications and the call center outsourcing domain was also affectedby the shift to in-house production following the completion of special demand
for the Corona disaster. In the construction engineer field, on which thecompany has been focusing its efforts, progress was steady and the company
achieved its recruitment target.

35

WILL GROUP, INC. | 6089 (TSE Prime)
Profits Exceeded theInitial Plan Due to Gainson Sales of Subsidiaries

Profits exceeded the initial forecast due to growth in the construction engineer
field and a gain of \2.06 billion from the sale of shares in subsidiaries(BorderLink and Four Startups), while profits in the call center outsourcing,sales outsourcing and factory outsourcing fields decreased by \1.02 billion andthe deconsolidation of a subsidiary pushed down profits by \0.59 billion.
However, growth in the construction engineer field and a \2.06 billion gain on
the sale of shares in subsidiaries (BorderLink and Four Startups) helped thecompany exceed its initial forecasts.

FY3/2025: Slight Increasein Sales, Significant
Decrease in Profit Expected

For the fiscal year ending March 31, 2013, the company plans to make net salesof \140.4 billion (up 1.6% YoY) and operating income of \2.29 billion (down
49.4% YoY). By segment, the domestic working business is expected to post a
2.4% increase in sales, while the overseas working business is expected to post
a 0.4% increase. In the domestic working business, sales are expected toincrease mainly in the construction engineer field, with the existing fields (sales
outsourcing, call center outsourcing, and factory outsourcing) expected toremain flat. The company expects a slight increase in overseas sales, but at the
fiscal year March 2024 year-end results meeting, it was explained that thecompany's policy is to prioritize improving profitability through structuralreforms rather than top-line improvement, as the current situation continues tobe more difficult than expected.

Excluding the Impact of theSale of the Subsidiary, theCompany Expects a 19.4%
Increase in Profit

Although profits are expected to decline significantly, the company projects a
19.4% increase in profits for FY3/2025, given that actual operating income,excluding the impact of sales of subsidiaries and deconsolidation, was \1.92
billion, compared to operating income of \4.52 billion in FY3/2024. In thedomestic working business, the company plans to secure an increase of \370
million in profit through growth centered on the highly profitable constructionengineer field. The overseas working business is expected to increase profit by\210 million.

Note that the Overseas
Working Businesses May
Benefit from Foreign
Exchange Rates

The company's overseas working business is affected by foreign exchange
rates. The exchange rate assumption for the current fiscal year is \91 to theAustralian dollar, and a depreciation of the yen by \1 would have an impact of\0.01 billion on profit growth. Since the Australian dollar has been above \100
recently, the company expects to benefit from the exchange rate advantage in
addition to improved profitability.

36

WILL GROUP, INC. | 6089 (TSE Prime)
19 Assumed Increase/Decrease in Company Profit Forecast for FY3/2025

Source: Company Data.

37

WILL GROUP, INC. | 6089 (TSE Prime)
6. Valuations and Competitor Comparisons
１）Time Series Valuations
Market Capitalization
Exceeded \40 billion in
January 2018, But Growth
Has Been Sluggish Since

The company's market capitalization has been sluggish since it exceeded \40billion in January 2018 and \2.59 billion in operating profit for FY3/2018. Whileperformance is steadily expanding, valuations are shrinking. In addition to
growth in existing areas (sales outsourcing, factory outsourcing, and call center
outsourcing), the company is now in the phase of launching its humanresources business in its focus areas of nursing care and overseas.

Valuations Slumped,
Factoring in the Slump in
the Domestic Working
Business

As mentioned above, valuations have been declining noticeably since 2020. The
domestic working business has been driving growth. Sales and earnings fromthe domestic working business peaked at \84.4 billion in FY 3/2020 andremained sluggish in FY3/2021 (\80.0 billion) and FY3/2022 (\80.7 billion).The
main reason for the decline is that the company's main earners, the sales
outsourcing business and factory outsourcing business, have seen a decline indemand for temporary staffing services due to the impact of the new Corona
outbreak.

There are Also Concerns
About the Normalization of
Online Activities and theIncreasing Manpower
Savings etc.

Although the domestic Working business has once again begun to increase
revenues since FY3/2023 as economic activity has normalized, valuations havecontinued to trend downward. The Company estimates that the market isconcerned about the growth potential of the temporary staffing businessagainst the backdrop of the normalization of online activities due to the spreadof remote work, etc., and the increasing use of manpower due to technologicaladvancements.

Expect to Improve
Profitability ThroughBusiness Portfolio
Transformation

According to company interviews, the company has seen little impact from therise of generation AI, automation of call center operations and labor saving;and it appears that the impact of technological advancements and other factors
has not yet materialized. In addition, the company is shifting from a temporary
staffing business centered on fixed-term temporary staffing to permanent
staffing and as such, we expect a valuation correction to occur along with an
improvement in profitability due to the shift in its business portfolio.

38

WILL GROUP, INC. | 6089 (TSE Prime)
Figure20: Market Capitalization and P/B Trends(Billions of Yen)
50

Market capitalization

45（left axis)
PBR（right axis)（Times)
8.5
7.5

40

6.5

35

5.5

30
25

4.5

20

3.5

15

2.5

10

1.5

5
0

0.5
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Source: Prepared by Strategy Advisors from FactSet.

Note that, like PBR, PER has also been on a downward trend. In January 2018,
PER reached its highest point, at around 45 times; but it has declined sincethen, and the multiple has recently shrunk to 8.1 times (based on FY3/2024
results). The average PER over the past 10 years is 14.4 times.
Figure21: PER (Actual Basis) (Unit: Times)
50.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0

PER
AverageJun-14
Dec-14Jun-15
Dec-15Jun-16
Dec-16Jun-17
Dec-17
Jun-18Dec-18Jun-19Dec-19Jun-20Dec-20Jun-21
Dec-21
Jun-22
Dec-22Jun-23
Dec-23Jun-24

Decline in PER & PBR

Source: Prepared by Strategy Advisors from PEEDA.

39

WILL GROUP, INC. | 6089 (TSE Prime)
Valuations in the Human
Resources Industry as a
Whole are Also Declining

In addition, it should not be overlooked that valuations in the human resourcesindustry as a whole, not just this company, are on a downward trend. The
average P/B ratios of human resources firms (companies with market
capitalization of \100 billion or more), like WILL GROUP, have been trending
lower since 2018. Each company's performance has been strong and while total
market capitalization (see next page) has increased relative to 2018, valuations
have declined.

The Effective Job Openings
Ratio is Recovering, Albeit
Slowly and Valuations for
the Industry as a Whole are
Expected to Rise

We believe that the peak out of the effective job-to-job ratio (number of active
job openings/ number of active job seekers) may be a contributing factor. Thisratio bottomed out in 2009 and began an upward trend, reaching 1.6 times in
2018, but subsequently declined to 1.1 times due to the new corona andremains at 1.3 times today. However, from 2022 onward, as economic activity
normalizes following the new corona's settlement, the effective job openings
ratio is showing a gradual recovery. Given the solid performance of eachcompany, it will be interesting to see whether the industry as a whole will see
its valuations rise again as the multiple begins to trend upward again.

Figure22: Trends in the Ratio of Effective Job Offers to Job Seekers (Unit: Times)
1.8

1.5

1.6

1.4

1.4
1.2
0.8

1.0
0.8
0.6

1.6 1.6

0.6 0.6 0.5 0.6

1.0

1.1

1.1 1.0
0.9

0.8
0.5 0.5

1.2

1.2 1.1

1.3 1.3

0.9

0.7

0.4
0.2
0.0

Source: National Institute for Labour Policy Studies and Research, Independent Administrative Institution.

40

WILL GROUP, INC. | 6089 (TSE Prime)
Figure23: P/B Ratios of 5 Companies in the Human Resources Industry (Unit: Times)
30.0
25.0
20.0
15.0
10.0
5.0

Jun-24Oct-23Jun-23

Feb-24SMS

Feb-23Oct-22Jun-22

Feb-22Oct-21

Jun-21

Feb-21

Oct-20Jun-20TechnoPro HD

Apr-24open-up groupFeb-20

Oct-19Jun-19Feb-19Oct-18Jun-18

Feb-18Oct-17

Jun-17

Feb-17UT GroupDec-23

Will Group

Oct-16Jun-16

Feb-16Oct-15Jun-15

Feb-15Oct-14Jun-140.0

mean value

Source: Prepared by Strategy Advisors from SPEEDA.

Figure24 Total Market Capitalization of Five Human Resources Industry Companies (\ Millions)1,200,000

1,000,000

800,000

600,000

400,000

200,000

Aug-23Apr-23

Dec-22Aug-22

Apr-22

Dec-21

Aug-21

Apr-21

Dec-20Aug-20

Apr-20Dec-19Aug-19Apr-19Dec-18Aug-18Apr-18Dec-17Aug-17

Apr-17

Dec-16Aug-16

Apr-16

Dec-15Aug-15

Apr-15

Dec-140

Source: Prepared by Strategy Advisors from SPEEDA.
Note: Total Market Capitalization of WILL GROUP, UT Group, Open Up Group, TechnoPro HD and SMS.

41

WILL GROUP, INC. | 6089 (TSE Prime)２）Competitors and Business Size by Area
In the Construction
Engineer Domain, the OpenUp Group Has a Large-Scale
Business

There are many companies that provide temporary staffing services and in thecase of the company, there are competitors in each area. In the constructionengineer field, Open Up Group (2154 TSE Prime) is the largest company, withsales and earnings exceed those of WILL GROUP. Copro Holdings Co., Ltd. (7059
TSE Prime) and TechnoPro Holdings Inc. (6028 TSE Prime) also provide
temporary staffing services in this field. Copro Holdings has 3,568 engineers on
staff (as of the end of FY3/2024) and TechnoPro Holdings has about 2,000
engineers on staff, which is small compared to the Open Up Group, which hasover 6,000 engineers.

The Factory Outsourcing
Domain Will Not Have Many
Direct Competitors, as it
Requires Expertise in Each
Industry

In the factory outsourcing domain, competitors include World HD Co., Ltd.
(2429 TSE Prime), Outsourcing (unlisted), Ut Group Co., Ltd. (2146 TSE Prime),
and NISSO Holdings (9332 TSE Prime). Outsourcing is one of the larger players
in the human resources industry, with revenues in excess of \700 billion. In a
broad sense, the two companies compete with each other, but the majority of
their customers are transportation equipment and electrical equipment
manufacturers, which is somewhat different from WILL GROUP, which serves a
relatively high percentage of food factories. In addition, the factory outsourcing
field requires more industry-specific expertise and technology than other fields,
so although the two companies compete in a broad sense, they and othercompanies do not directly compete with each other.

In the Sales Outsourcing
Domain, HITOCommunications HD
Would be a Direct
Competitor

HITO-Communications Holdings, Inc. (4433 TSE Prime) and Like Co., Ltd.
(2462 TSE Prime) are competitors in the sales outsourcing domain. HITOCommunications sales of sales support services totaled \16.47 billion(FY8/2023), putting it ahead of the company in this area. In addition, HITOCommunications directly competes with the telecommunications companies,
which account for a relatively high percentage of their sales in the temporary
staffing business. Both companies have been affected by the sluggish
performance of their clients and the shift to in-house production and sales inthis field have been declining.

In the Call Center
Outsourcing Domain, S-pool
is Similar in Scale to theCompany & Can be
Considered a Direct
Competitor

In the call center outsourcing domain, competitors are S-pool, Inc. (2471 TSE
Prime), CRG Holdings (4071 TSE Growth) and CareerLink (6070 TSE Prime). SPool's call center outsourcing service sales (FY11/2023) totaled \11.09 billion(-23.3% YoY), which is similar in scale to the company's sales, making it adirect competitor. Both companies continue to face somewhat difficult
conditions, affected by a reactionary decline from the special demand forCorona. CRG Holdings and CareerLink do not disclose their sales to call centers,
but their combined revenue disclosures suggest that they are not as large as
the WILL GROUP.

42

WILL GROUP, INC. | 6089 (TSE Prime)
Company Survey Shows
that the Company has
Secured Top-Level Market
Share in Sales Staffing &Operator Staffing

According to company surveys, the company has secured top-level market
shares in sales staffing (No. 3 in the industry) and operator staffing (No. 1 in
the industry), which have driven the company's growth; and in the field ofnursing care staffing, the company also ranked second in the industry,
according to the survey.

The Construction Engineer
Domain is ranked 8th.
Meaning there is a Lot ofPotential Upside

In the food/manufacturing temporary staffing business, the company's industry
ranking is 7th due to the large number of competitors and the high percentageof food factories in the industry. In the construction engineer field, where thecompany is focusing its efforts, the company is ranked 8th, still a latecomer tothe industry. Going forward, the company intends to expand its business inorder to secure the number of employees needed to compete with the leading
Open Up Group and to become one of the top companies in the industry. In thetemporary staffing business, it is easy to demonstrate economies of scale in thehiring and training processes and it will be important for the company to berecognized as a top-tier company in the industry.

43

WILL GROUP, INC. | 6089 (TSE Prime)
Figure25: List of Competitors
Company Name

Stock Code

Sales

OP

OPM

ROE

Equity Ratio

Number Of
Employees

Overseas
Sales

Competition（\ mn）（\ mn）

(%)

(%)

(%)

(Person)

(%)

Area

FY

Business

Temporary Staffing/Introduction,
Outsourced Contracting, overseas(Temporary Staffing/Introduction) Business

WILL GROUP Inc.

6089

24-Mar138,227

4,525

3.3%

17.3%

34.0%

7,004

40.1%

-

World HD Co., Ltd.

2429

23-Dec213,742

10,365

4.8%

16.4%

25.3%

52,570-

Factory

Temporary Staffing, Outsourcing, andContracting Services

Outsourcing Inc.

2427

23-Dec749,608

16,476

2.2%

6.2%

21.2%

126,543

57.4%

Factory

Domestic And Overseas Outsourcing ofEngineering and Manufacturing

Ut Group Co., Ltd.

2146

24-Mar167,030

9,344

5.6%

20.5%

48.5%

53,467

6.5%

Factory

Temporary Staffing, Outsourced
Contracting, Engineer Dispatching,Overseas BusinessNisso HD Co., Ltd.

9332

24-Mar

96,858

3,058

3.2%

13.2%

48.0%

2,336

-

Factory

Temporary Staffing, Contracting, BPO,
Nursing Care and Welfare Services

Open Up Group Inc.

2154

23-Jun161,689

12,760

7.9%

14.9%

64.0%

31,172

17.9%

Construction

Temporary Staffing, Contracting,Outsourcing/Contracting Business, Overseas
Business

Copro HD Co., Ltd.

7059

24-Mar

24,098

2,142

8.9%

19.2%

66.8%

4,189

-

Construction

Engineer
Dispatching/Introduction/Contracting(Construction, Plant, Mechanical Design)

TechnoPro HD Inc.

6028

23-Jun199,851

21,838

10.9%

21.3%

52.4%

27,003

10.6%

Construction

R&D, Construction Management
Outsourcing, Overseas Business

Human HD Co., Ltd.

2415

24-Mar

95,896

3,149

3.3%

14.0%

31.5%

4,480

-

Care

Temporary
Staffing/Introduction/Outsourcing,
Education, Nursing Care, Other Businesses

Career Co., Ltd.

6198

23-Sep17,792

609

3.4%

21.8%

37.7%

308

-

Care

Elderly Care (Temporary
Staffing/Introduction, Outsourced
Contracting)

SMS Co., Ltd.

2175

24-Mar

53,973

8,269

15.3%

17.5%

61.1%

4,188

17.0%

Care

Elderly Care (Temporary/Introduction
Staffing, Outsourced Contracting), Overseas
Business

HITO-Communications HD, Inc.

4433

23-Aug63,980

4,198

6.6%

10.8%

42.0%

1,274

-

Sales

Temporary Staffing/Contracting (Sales
Strategies, Personnel Arrangements,
Customer Service Sales Operations, etc.)

Like Co., Ltd.

2462

23-May60,015

3,581

6.0%

17.4%

39.2%

5,390

-

Sales

Comprehensive Human Resources,
Childcare Support, and Nursing Care
Related Services BusinessS-pool, Inc.

2471

23-Nov

25,784

2,777

10.8%

24.9%

25.5%

973

-

Call
CenterOutsourcing, Temporary Staffing, etc.

CRG HD Co., Ltd.

7041

23-Sep20,816

113

0.5%

1.4%

43.1%

495

-

Call
CenterTemporary Staffing/Introduction (CallCenter, etc.), Manufacturing Outsourcing

CareerLink Co., Ltd.

6070

24-Mar

43,791

3,279

7.5%

15.8%

67.9%

928

Call
CenterTemporary
Staffing/Introduction/Contracting (Clerical,
Manufacturing, Sales)-

Source: Prepared by Strategy Advisors from FactSet.
Note: WILL GROUP, Outsourcing, Open Up Group, TechnoPro Holdings and S-Pool are under IFRS (sales are revenues); others
are under Japanese GAAP.

44

WILL GROUP, INC. | 6089 (TSE Prime)３）List of Each Company's Stock Price Trends & Valuations
Share Price & Valuations Clear Winners & Losers.
COPRO HD the Best
Performer

In the human resources industry, there are clear winners and losers in terms ofshare price trends and valuations. The best performer over the past three years
was Copro Holdings, which achieved a 62.0% increase in profit in FY3/2024
Figure thanks to business expansion in the construction engineer field. In
addition to business growth, the company is also highly conscious of capitalefficiency and has been raising its dividend payout ratio in stages (65.2% in the
FY3/2025 plan).

SMS is Trading at a P/B
Ratio of Less than 4 Times
Due to Steady Earnings
GrowthSMS Co., Ltd. (2175 TSE Prime), with a P/B ratio of less than 4 times, focuseson the nursing and medical care placement business, which is a different
domain from WILL GROUP. Since its inception, the company has achieved 21
consecutive quarters of increased sales and profits and is well trusted by thecapital markets.

Both Stock Price
Performance & Valuations
are Sluggish

WILL GROUP's share price has declined -5.0% over the past three years and its
valuations (P/B ratio of 1.2 times and P/E ratio of 13.3 times) are also
depressed. Similar to WILL GROUP, companies that provide sales staffing
services for telecommunications carriers and call center staffing services are
struggling and we expect the company to join the winning side by shifting its
business portfolio.

45

WILL GROUP, INC. | 6089 (TSE Prime)
Figure26: List of Competitive Valuations
Stock

Company Name

Stock
Code

Mkt Cap

Price

PER

PBR

1-YearYield

Return

CoE

CoE

(7/2)

(7/2)

ROE

FY
Latest3-YearDividend

Rate of
Return

(7/2)

(7/2)

CoE

（\）

（\ mn）(Times）（Times）

CoE (%)

（％）

(%)

(%)

Results

WILL GROUP Inc.

6089

3/24

1,037

23,647

14.3

1.3

9.4%

4.2%

-5.8%

2.1%

World HD Co., Ltd.

2429

12/23

2,174

38,246

8.0

0.9

12.3%

3.7%

-19.6%-30.5%

Outsourcing Inc.

2427

12/23

1,749

220,379

NA

2.4

NA

NA

28.5%

-19.5%

Ut Group Co., Ltd.

2146

3/24

3,425

136,181

10.4

4.9

39.1%

4.8%

13.6%

3.2%

Nisso HD Co., Ltd.

9332

3/24

838

27,456

11.4

1.7

15.9%

2.6%

NA

NA

Open Up Group Inc.

2154

6/23

2,062

179,002

15.9

2.7

16.2%

3.1%

-1.7%

57.3%

Copro HD Co., Ltd.

7059

3/24

1,746

33,319

18.9

4.1

21.6%

3.4%

55.6%

175.0%

TechnoPro HD Inc.

6028

6/23

2,628

278,364

16.8

3.7

20.9%

3.0%

-15.3%

0.6%

Human HD Co., Ltd.

2415

3/24

1,553

16,117

7.3

1.0

13.6%

4.1%

54.8%

71.8%

Career Co., Ltd.

6198

9/23

402

3,419

20.1

1.8

8.5%

0.0%

17.2%

-17.1%SMS Co., Ltd.

2175

3/24

1,990

172,630

21.6

3.9

18.1%

NA

-30.7%-39.8%

4433

8/23

961

17,147

16.2

0.9

5.8%

3.6%

-38.1%-57.7%

Like Co., Ltd.

2462

5/23

1,531

29,380

8.5

1.9

22.5%

3.7%

-9.0%

-24.9%

S-pool, Inc.

2471

11/23

318

25,123

13.7

2.9

22.9%

3.1%

-39.7%-68.2%CRG HD Co., Ltd.

7041

9/23

511

2,824

46.7

0.9

1.9%

0.0%

-15.3%-1.7%

CareerLink Co., Ltd.

6070

3/24

2,493

29,585

12.3

2.0

16.6%

4.8%

-18.8%

9.9%

HITO-Communications
HD, Inc.

Note: WILL GROUP, Outsourcing, Open Up Group, TechnoPro Holdings, and S-Pool are under IFRS (sales are revenues);
others are under Japanese GAAP.
Note: Outsourcing was delisted on 6/5/2024, so share price, market capitalization, and P/B ratio are calculated based on
the 6/5/2024 standard share price.
Note: NISSO Holdings was listed on 10/2/2023, so 1-Year and 3-Year return rates are not available.
Source: Prepared by Strategy Advisors from SPEEDA.

46

WILL GROUP, INC. | 6089 (TSE Prime)
7. Governance and Sustainability
１）Chairman Ikeda is the Largest Shareholder, with Employees
Holding Approximately 40% of Shares
Less Than 40% of Shares
Held by Employees

The company's largest shareholder is Chairman Ikeda. Together with his
personal and asset management companies, he owns about 27% of thecompany. Mr. Ohara, the former president, also owns 7.3%. When combinedwith the employees' shareholding association, the company's employees holdnearly 40% of the company's stock.

FMR (U.S.) Holds a
Large Amount

FMR LLC (U.S.), one of the leading institutional investors in the U.S., is also
confirmed as an owner of the company.
Figure 27 WILL GROUP's Major Shareholders (As of March 31, 2024)
Number of Shares

Shareholding

Held (shares)

Ratio (%)

Ryosuke Ikeda

4,204

18.28

Ikeda Planning Office Co., Ltd.

2,008

8.73

Shigeru Ohara

1,694

7.37

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

1,506

6.55

BBH

1,095

4.76

Custody Bank of Japan, Ltd. (Trust Account)

683

2.97

WILL GROUP Employee Stock Ownership Plan

506

2.20

GOLDMAN SACHS & CO.REG

485

2.11

STATE STREET BANK AND TRUST CLIENT OMNIBUS

421

1.83

400

1.74

Name of Shareholder

FOR

FIDELITY

LOW-PRICED

STOCK

FUND

(PRINCIPAL ALL SECTOR SUBPORTFOLIO)ACCOUNT OM02 505002
Shingo Watabe

Note: Ikeda Planning Co., Ltd. is the Asset Management Company of Ryosuke Ikeda(Representative: Ryosuke Ikeda).
Source: Prepared by Strategy Advisors, Based on Company Data.

２）The Percentage of Outside & Female Directors is Higher than
the TSE Prime Market Average
The Ratio of Outside
Directors is 60% & the
Corporate Governance Code
Implements all Principles

WILL GROUP is a company with auditors and has five directors (including threeoutside directors) and four auditors (including four outside auditors). The ratioof outside directors is 60%, which satisfies Principle 4-8 of the Corporate
Governance Code, which requires companies listed on the prime market toappoint at least one-third of independent outside directors. In addition, thecompany has implemented all principles of the Corporate Governance Code.

Ms. Ichikawa was Appointed

At the annual shareholders' meeting held on June 22, 2024, Ms. Yuko Ichikawa

47

WILL GROUP, INC. | 6089 (TSE Prime)as an Outside Director

was appointed as an outside director. Ms. Ichikawa has extensive knowledge ofthe capital market, having served as head of investor relations at Rakuten Group(4755 TSE Prime) for about 12 years. We look forward to her future efforts toenhance the company's corporate value.

The Percentage of Female
Executives is High & theCompany Actively Embraces
Diversity

In addition, the company is actively working on gender equality and women's
activities. This is probably due to the relatively high ratio of women in thecompany's business. The ratio of female directors is 33.3% (1 female director
and 2 female auditors). The ratio of female directors is relatively high comparedto the 13.4% (in 2023) of all companies listed on the prime market. The TSE
has set a target of appointing at least one female director by 2025 and at least
30% by 2030 for companies listed on the prime market. WILL GROUP has threefemale executives and has achieved the required standard by 2025. In addition
to directors, corporate auditors and executive officers, female officers may
include executive officers or equivalent positions.

48

WILL GROUP, INC. | 6089 (TSE Prime)
Figure 28: Skill Matrix

Source: Company Data.

The Company Intends toIncrease the Ratio of
Female Managers as Wellas Executives

Among regular employees, the ratio of female employees is 46.3%, while theratio of female managers is 30.0%. 40% of female managers is targeted by
2030. The ratio of foreign nationals among regular employees is 30.7%, while
the ratio of foreign nationals in management positions is as high at 40.2%. The
ratio of mid-career hires in management positions is 69.0%. The wage gap
between men and women is 74.2%.

49

WILL GROUP, INC. | 6089 (TSE Prime)３）In Addition to Environment-Related Activities, the Company
Plans to Focus on Improving Wellbeing
Disclose
Sustainability-RelatedInformation in the
Integrated Report

The company launched its sustainability website in 2020 and issued its first integrated
report in 2021. In the integrated report, the company discloses details of its
sustainability initiatives. As priority issues, the company has identified their priorities
as eliminating job mismatches, strengthening disaster resilience (climate change),enhancing human capital and building a strong governance structure.

Endorses the TCFD
on Environmental
Matters

In the environmental area, the company has expressed its support for the Climaterelated Financial Disclosure Task Force (TCFD) recommendations and joined the TCFD
consortium in January 2023. In January 2023, the company joined the TCFD
consortium and has been disclosing information on "governance", "strategy", "riskmanagement" and "indicators and targets," which are the four basic disclosure items
recommended by the TCFD. The company has set an environmental goal of "reducing
total CO2 emissions for fiscal year ending March 31, 2020, by 20% by the fiscal year
ending March 31, 2031.

Well-Being Score
Disclosed

WILL GROUP have also declared health management as key and are working on (1)improvement of work style, (2) maintenance and improvement of mental health, (3)maintenance and improvement of physical health and (4) improvement of healthliteracy. The numerical Well-being target for March 2026 is 66.5 points.
Figure29: WILL GROUP's Well-Being
Unit

3/20203/2021

3/2022

3/20233/2024

pt

66.1

65.7

66.1

66.5

66.4

(1) Well-being Experience

%

-

-

47.4

50.9

50.9

(2) Evaluation of Working

%

-

-

59.4

61.1

61.1

%

-

-

49.4

57.6

57.6

Well-Being Score
Working Well-being(3) Self-Determination in
Working

Note: Well-being at work refers to "the happiness and satisfaction a person feels through working".
Source: Company Data.

50

WILL GROUP, INC. | 6089 (TSE Prime)
8. Risk Factors
１）Risk of Performance Deterioration in 3-Main Areas
Sales in the three main areas (sales outsourcing, call center outsourcing andfactory outsourcing) account for a relatively high percentage of the Group's total
revenues, and a significant deterioration in the performance of these areas due
to external factors such as a downturn in client business performance oradvances in technology could affect consolidated business results.

２）Risk of Difficulties in Business Operations Due to Changes inthe Dispatched Worker Law and Other laws and Regulations
The temporary staffing business is a licensed business conducted under the
Temporary Staffing Business Act and licensed by the Minister of Health, Laborand Welfare. Since the business is operated in accordance with the laws andregulations of the country in which it operates, not only in Japan but also
overseas, there is a risk that changes in laws and regulations may make it
difficult to operate the business.

３）Risk of Difficulty in Expanding Business Due to Inability
to Secure Human Resources
In the temporary staffing business, which is the company's main source ofrevenue, it is essential to secure human resources. If it becomes significantly
difficult to secure human resources due to intensifying competition for humanresources, there is a risk that it will be difficult to operate the business as it has
been historically.

４）Risks Associated with Overseas Expansion
At present, the company has sales offices in Singapore, Malaysia, Australia, theUnited States, China, Vietnam, the United Kingdom and Germany, and there isa risk that changes in the economy, exchange rates, politics or other factors may
make it difficult to operate the business.

５）Risks Related to Personal Information
The Company holds personal information of temporary staffing registrants andjob applicants. If personal information is leaked due to a cyber-attack or other
unforeseen circumstances, there is a risk that business operations may become
difficult due to compensation for damages or loss of credibility.

51

WILL GROUP, INC. | 6089 (TSE Prime)
Figure30: Consolidated Statements of Income IFRSProfit and loss statement（IFRS）

FY3/2020

FY3/2021

FY3/2022

FY3/2023

FY3/2024

FY3/2025

121,916

118,249

131,080

143,932

138,227

140,400
1.6%（\ mn）

CoE

Revenue
YoY

18.0%

-3.0%

10.9%

9.8%

-4.0%

Cost of sales

96,513

94,192

102,314112,194

107,781

Gross profit

25,402

24,05628,76531,73730,446

20.8%

20.3%

21.9%

22.0%

22.0%

21,422

20,463

23,585

27,16928,314

17.6%

17.3%

18.0%

18.9%

20.5%

220

519

387

842

2,412

Gross profit margin

Selling, general and administrative expenses
SG&A ratio to sales

Other income
Other expenses

56

82

95

91

18

4,145

4,030

5,472

5,318

4,525

2,290

YoY

40.2%

-2.8%

35.8%

-2.8%

-14.9%-49.4%

Operating profit margin

3.4%

3.4%

4.2%

3.7%

3.3%

1.6%

-5

-18

-21

-24

42

11

52

161

128

Operating profit

Equity method investment gains and losses
Financial income-

Finance expenses

131

247

212

311

211

Profit before tax

4,057

3,788

5,293

5,146

4,417

2,190

YoY

41.1%

-6.6%

39.7%

-2.8%

-14.2%-50.4%

Pretax profit margin

3.3%

3.2%

4.0%

3.6%

3.2%

1.6%

Income tax expense

1,344

1,110

1,439

1,686

1,539

33.1%

29.3%

27.2%

32.8%

34.8%

2,712

2,678

3,854

3,459

2,878

331

314

568

223

99

2,380

2,363

3,286

3,236

2,778

1,640

YoY

54.6%

-0.7%

39.1%

-1.5%

-14.2%-41.0%

Owners of parent profit margin

2.0%

2.0%

2.5%

2.2%

2.0%

6,136

6,259

7,556

7,456

6,810

5.0%

5.3%

5.8%

5.2%

4.9%

Tax rate

ProfitNon-controlling interests
Owners of parent profit (loss)

EBITDAEBITDA margin

Source: Prepared by Strategy Advisors, Based on Company Data.

52

WILL GROUP, INC. | 6089 (TSE Prime)
Figure31: Key Indicators
Key indicators

FY3/2020

FY3/2021

FY3/2022

FY3/2023

FY3/2024

22,321

22,55522,852

22,94423,000

95

290

285

285

213

EPS（\）

107.1

106.4

147.0

143.2

122.4

EPS（Diluted, \）

104.8

104.6

144.8

142.0

121.6

Stock indicators
Number of shares outstanding at year-end（'000 shares）
Number of treasury shares at year-end（'000 shares）

DPS（\）

23

24

34

44

44

Payout ratio（%）

21.5%

22.6%

23.1%

30.7%

36.0%

DOE（％）

10.8%

7.9%

7.8%

7.6%

6.2%

BPS（\）

235.5

370.1

505.1

646.0

768.4

Gross profit margin（％）

20.8%

20.3%

21.9%

22.0%

22.0%

EBITDA（\ mn）

6,136

6,259

7,556

7,456

6,810

EBITDA margin（％）

5.0%

5.3%

5.8%

5.2%

4.9%

Operating profit margin（％）

3.4%

3.4%

4.2%

3.7%

3.3%

Owners of parent profit margin (%)

2.0%

2.0%

2.5%

2.2%

2.0%

Ratio of pretax profit to total asset（％）

9.2%

8.3%

10.7%

9.6%

8.3%

Ratio of profit to equity attributable to owners of parent (%)

50.5%

35.1%

33.5%

24.9%

17.3%

Ratio of equity attributable to owners of parent to total asset (%)

11.7%

17.6%

21.8%

26.6%

34.0%

Cash and cash equivalents（\ mn）

5,944

7,455

8,973

9,590

7,106

Long- and Short-term Debt（\ mn）

9,710.00

8,788.00

7,988.00

10,146.00

5,930.00

Net Debt （\ mn）

Profitrability indicators

Financial indicators

3,766.00

1,333.00-985.00

556.00-1,176.00

Net DE Ratio

0.72

0.16

-0.09

0.04

-0.07

Net Debt/EBITDA

0.61

0.21

-0.13

0.07

-0.17

14,94317,02819,38624,78423,438NOPAT（NOPLAT, \ mn）

2,772

2,849

3,984

3,576

2,948

ROIC（％, gross IC）

18.1%

17.8%

21.9%

16.2%

12.2%

ROIC（％, company disclosed）

13.9%

13.8%

17.9%

16.6%

13.4%

Working capital（\ mn）

2,546

934

2,161

1,777

1,027

Working capital turnover（Times）

47.9

126.6

60.7

81.0

134.6

Current ratio（％）

102.2%

95.1%

92.9%

100.9%

106.4%

Quick ratio（％）

98.6%

92.1%

90.5%

97.3%

101.0%

Invested capital（\ mn, gross IC）

Efficiency indicators

Source: Prepared by Strategy Advisors, Based on Company Data.

53

WILL GROUP, INC. | 6089 (TSE Prime)
Figure32: Segment Performance by Business Segment

Segment Breakdown (\ mn, %)Revenue

FY3/2020 FY3/2021 FY3/2022 FY3/2023 FY3/2024
121,916

118,249

131,080

143,932

138,227

18.0%

-3.0%

10.9%

9.8%

-4.0%

-

80,05080,726

84,13582,528

YoY

-

-

0.8%

4.2%

-1.9%

Ratio to revenue

-

67.7%

61.6%

58.5%

59.7%

-

36,92048,74657,53755,432

YoY

-

-

32.0%

18.0%

-3.7%

Ratio to revenue

-

31.2%

37.2%

40.0%

40.1%

-

1,278

1,607

2,258

267

-

1.1%

1.2%

1.6%

0.2%

-

24,05628,76531,73730,446Gross Profit Margin

-

20.3%

21.9%

22.0%

22.0%

Domestic Working-

16,43017,231

18,784

18,403

-

20.5%

21.3%

22.3%

22.3%

-

6,994

11,54013,342

12,682

-

19.1%

23.7%

23.2%

22.9%

4,145

4,030

5,472

5,318

4,525

-

-2.8%

35.8%

-2.8%

-14.9%

3.4%

3.4%

4.2%

3.7%

3.3%

-

4,763

4,448

4,451

5,038

YoY

-

-

-6.6%

0.1%

13.2%

OPM

-

6.0%

5.5%

5.3%

6.1%

-

1,942

3,348

3,406

1,946

YoY

-

-

72.4%

1.7%

-42.9%

OPM

-

5.3%

6.9%

5.9%

3.5%

Others

-

-413

-342

-296

-225

Adjusment--2,262-1,982-2,243-2,234

YoY
Domestic Working

Overseas Working

OthersRatio to revenue
Gross Profit

GPM
Overseas Working
GPM
Operating Profit
YoY
Operating Profit Margin
Domestic Working

Overseas Working

Source: Prepared by Strategy Advisors, Based on Company Data.

Note: Gross profit does not include consolidation adjustments within segments.

54

WILL GROUP, INC. | 6089 (TSE Prime)
Figure33: Details of Domestic Working Business (\ Millions)

SectorFY3/2020 FY3/2021 FY3/2022 FY3/2023 FY3/2024

Domestic Working

84,43780,04980,724

84,13482,560

Sales outsourcing

23,15019,046

19,517

20,395

19,906

Call center outsourcing

16,45916,866

17,041

16,583

14,840

Factory outsourcing

23,745

20,585

18,315

17,63917,990Food factory

12,04010,532

8,920

8,870

8,669

Factory except food

11,70010,053

9,395

8,769

9,321

Care support

12,055

13,21813,678

13,62013,389HR support for startups

1,263

1,273

2,349

2,999

3,421

Construction management engineers

4,806

5,275

5,786

7,665

10,467

Others

2,959

3,786

4,038

5,233

2,547

883

1,134

1,449

1,749

2,228

2,329

2,652

2,589

3,485

319

Domestic Working

5,438

4,711

4,825

4,735

3,032

Sales outsourcing

1,864

1,468

1,614

1,718

1,308

999

1,131

1,176

936

508

1,408

1,001

1,258

948

765

Care support

360

381

296

498

227

HR support for startups

310

159

604

268

401

Construction management engineers

240

39

-559

-498

-400

Others

257

532

436

865

223

Domestic Working

6.4%

5.9%

6.0%

5.6%

3.7%

Sales outsourcing

8.1%

7.7%

8.3%

8.4%

6.6%

Call center outsourcing

6.1%

6.7%

6.9%

5.6%

3.4%

Factory outsourcing

5.9%

4.9%

6.9%

5.4%

4.3%

Care support

3.0%

2.9%

2.2%

3.7%

1.7%

HR support for startups

24.5%

12.5%

25.7%

8.9%

11.7%

Construction management engineers

5.0%

0.7%

-9.7%

-6.5%

-3.8%

Others

8.7%

14.1%

10.8%

16.5%

8.8%

IT engineers
OthersCall center outsourcing
Factory outsourcing

Source: Prepared by Strategy Advisors, Based on Company Data.

55

WILL GROUP, INC. | 6089 (TSE Prime)
Figure 34: Consolidated Balance Sheets
Balance Sheet（IFRS、\ mn）
AssetsCash and cash equivalents
Trade and other receivables
Other financial assets
Other current assets
Current assets
Property, plant and equipment
Right-to-use assets
Goodwill
Other intangible assets
Investment accounted for using equity method
Other financial assets
Deferred tax assets
Other non-current assets
Non-current assets
Total assets
Liabilities
Trade and other payables
Short-term borrowings
Other financial liabilities
Income taxes payable
Other current liabilities
Current liabilities
Long-term borrowings
Others financial liabilities
Deferred tax liabilities
Other non-current liabilities
Non-current liabilities
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Other components of equity
Equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

FY3/2020

FY3/2021

FY3/2022

FY3/2023

FY3/2024

5,944
15,067251
777
22,041
1,315
6,200
5,654
5,455
1,281
1,640
1,011
22,55844,6007,455
14,694690
729
23,570
1,082
5,715
6,155
6,049
495
1,151
1,678
863
23,19046,7608,973
17,458129728
27,289
1,223
6,809
6,514
6,154
477
1,208
1,850
822
25,061
52,3509,590
17,928138
1,009
28,666
1,139
6,349
8,120
5,996
456
1,475
1,953
782
26,27254,9397,106
17,512
171
1,338
26,129
1,275
5,071
8,737
6,109
431
1,158
1,888
741
25,41351,543

12,521
3,177
2,359
1,116
2,391
21,566
6,533
8,012
1,170
193
15,90937,476

13,760
4,865
3,600
514
2,048
24,790
3,923
6,563
1,289
166
11,94336,733

15,297
5,786
5,245
1,195
1,836
29,361
2,202
6,285
1,202
177
9,867
39,22816,151
6,761
1,364
1,027
3,109
28,414
3,385
5,950
1,127
184
10,64839,062

16,485
2,490
2,115
1,005
2,437
24,553
3,440
4,837
1,006
206
9,490
34,024

2,033-1,3996,478-89-1,7895,233

2,089-1,786
8,559
-279
-343
8,240

2,163
-2,266
11,310-274
464
11,3982,187-1,923
13,758-274
890
14,6382,198-2,045
15,528-204
2,032
17,5081,890
7,123
44,600

1,786
10,027
46,7601,723
13,121
52,3501,238
15,87754,93910
17,51851,543-

Source: Prepared by Strategy Advisors, Based on Company Data.

56

WILL GROUP, INC. | 6089 (TSE Prime)
Figure35: Consolidated Statements of Cash Flows (￥mn)
Statement of Cash Flows（IFRS）

FY3/2020

FY3/2021

FY3/2022

FY3/2023

FY3/2024

4,908

4,316

4,350

4,816

3,828

Profit before tax

4,057

3,788

5,293

5,146

4,417

Depreciation and amortization

1,990

2,229

2,084

2,137

2,285

Share-based payment expenses

104

Cash flows from operating activities (1)

204

85

65

107

Decrease (increase) in trade receivables

-292

1,488

-2,494-223

42

Increase (decrease) in trade payables

1,011

72

580

969

1,031

Other

-482

-1,312-4-839-2,489Subtotal

6,489

6,351

5,525

7,297

5,390

10

7

9

17

124

-114

-86

-79

-88

-120

-1,478-1,956-1,104-2,409-1,565-3,035-433-306-1,761

-575

-557

-589

-741

-396

-802

Interests and dividends received
Interest paid
Income taxes paid
Cash flows from investing activities(2)Purchase of property, plant and equipment, and intangible assets

Purchase of investments accounted for using equity method Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation-350 -

-

-312

-46

-63 -

-

7

374

22 -

-

-2,064 ---1,757 -

-

-

1,009

-

Other

-

811

-108

179

475

-617

-584

1,873

3,883

4,044

3,055

3,253

-2,631-2,646-2,959-2,783-6,232

Net increase (decrease) in short-term borrowings-1,413

1,890

1,000

1,590

-3,245

Proceeds from long-term borrowings

3,253

270

1,165

4,383

1,500

Repayments of long-term borrowings-3,729-3,080-2,965-3,367-2,470

Repayments of lease liabilities-1,223-1,302-1,310-1,333-1,335Purchase
Proceedsof shares
from long-termof subsidiaries
debt not resulting in change in scope of
consolidation
-246
-798

-1,969-3,746 -FCF（1＋2）
Cash flows from financing activities

Proceeds
Repaymentsfrom saleof long-temof sharesdebt
of subsidiaries not resulting in change in
scope
977
- of consolidation 1,360 --Dividends paid to non-controlling interests

-181

-362

-281

-373 -

Dividends paid

-400

-511

-540

-776

-1,008Proceeds from government grants

88

1,273

361

524

190

Other

244

-25

222

316

137

-917

1,511

1,517

617

-2,484

Cash and cash equivalents increase (decrease)

Source: Prepared by Strategy Advisors, Based on Company Data.

57

WILL GROUP, INC. | 6089 (TSE Prime)
Figure36: Quarterly Financial Results
FY3/2023

Quarterly Financial Results (\ mn, %)（3 months)
Revenue

FY3/2024

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

35,441

36,91736,25535,31934,43534,841

34,641

34,310

YoY

12.4%

14.0%

7.6%

5.5%

-2.8%

-5.6%

-4.5%

-2.9%

Cost of sales

27,40728,73628,307

27,744

26,883

26,98426,943

26,971

YoY

11.2%

13.9%

7.1%

6.7%

-1.9%

-6.1%

-4.8%

-2.8%

Cost of sales ratio

77.3%

77.8%

78.1%

78.6%

78.1%

77.4%

77.8%

78.6%

Gross profit

8,033

8,182

7,948

7,574

7,552

7,856

7,699

7,339

YoY

16.4%

14.7%

9.5%

1.4%

-6.0%

-4.0%

-3.1%

-3.1%

Gross profit margin

22.7%

22.2%

21.9%

21.4%

21.9%

22.5%

22.2%

21.4%

6,662

6,766

7,086

6,654

7,256

7,021

7,017

7,020

YoY

15.0%

19.2%

22.3%

5.3%

8.9%

3.8%

-1.0%

5.5%

SG&A ratio to revenue

18.8%

18.3%

19.5%

18.8%

21.1%

20.2%

20.3%

20.5%

1,431

1,503

932

1,451

1,132

887

776

1,730

YoY

26.0%

-3.0%

-37.0%

11.0%-20.9%-41.0%-16.7%

19.2%

OP margin

4.0%

4.1%

2.6%

4.1%

3.3%

2.5%

2.2%

5.0%

SG&A

Operating profit

Profit before tax

1,425

1,522

802

1,396

1,195

891

633

1,698

YoY

24.3%

-3.1%

-45.8%

27.4%-16.1%-41.5%-21.1%

21.6%

Pretax profit margin

4.0%

4.1%

2.2%

4.0%

3.5%

2.6%

1.8%

4.9%

758

985

537

954

723

679

162

1,214

YoY

8.0%

-1.1%

-42.3%

45.0%

-4.6%

-31.1%-69.8%

27.3%

NP margin

2.1%

2.7%

1.5%

2.7%

2.1%

1.9%

0.5%

3.5%

Profit attributable to owners of parent

Source: Prepared by Strategy Advisors, Based on Company Data.

58

WILL GROUP, INC. | 6089 (TSE Prime)
Figure 37: Quarterly Results by Segment
FY3/2023

Segment Breakdown (\ mn, %)(3 months)

FY3/2024

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Revenue

35,441

36,91736,25535,31934,43534,841

34,641

34,310

YoY

12.4%

14.0%

7.6%

5.5%

-2.8%

-5.6%

-4.5%

-2.9%

Domestic Working

20,866

20,65921,42021,19020,186

20,51520,94020,887

5.2%

4.5%

4.4%

2.8%

-3.3%

-0.7%

-2.2%

-1.4%

YoY
Ratio to revenue

58.9%

56.0%

59.1%

60.0%

58.6%

58.9%

60.4%

60.9%

14,042

15,702

14,204

13,58914,182

14,258

13,631

13,361

YoY

23.0%

27.7%

11.6%

10.4%

1.0%

-9.2%

-4.0%

-1.7%

Ratio to revenue

39.6%

42.5%

39.2%

38.5%

41.2%

40.9%

39.3%

38.9%

Overseas Working

OthersRatio to revenue
Operating profit
YoY

532

556

631

539

66

68

69

62

1.5%

1.5%

1.7%

1.5%

0.2%

0.2%

0.2%

0.2%

1,431

1,503

932

1,451

1,132

887

776

1,730

26.0%

-3.0%

-37.0%

11.0%-20.9%-41.0%-16.7%

19.2%

OP margin

4.0%

4.1%

2.6%

4.1%

3.3%

2.5%

2.2%

5.0%

Domestic Working

1,186

1,091

885

1,289

1,364

782

850

2,042

YoY

21.4%

-7.8%

-29.5%

24.9%

15.0%

-28.3%

-4.0%

58.4%

OP margin

5.7%

5.3%

4.1%

6.1%

6.8%

3.8%

4.1%

9.8%

Overseas Working

855

1,059

689

803

456

667

526

297

YoY

12.6%

15.5%

-13.6%-8.2%-46.7%-37.0%-23.7%-63.0%

OP margin

6.1%

6.7%

4.9%

5.9%

3.2%

4.7%

3.9%

2.2%

Others

-66

-90

-56

-84

-69

-69

-54

62

Adjusment

-544

-557

-585

-557

-617

-493

-546

-576

Source: Prepared by Strategy Advisors, Based on Company Data.

59

WILL GROUP, INC. | 6089 (TSE Prime)
Figure38: Domestic Working Business Quarterly Details (\ mn)
FY3/2023

Sector
(3 months)

FY3/2024

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Domestic Working

20,866

20,65821,421

21,18920,187

20,51420,941

20,918

Sales outsourcing

5,078

5,019

5,137

5,161

4,886

4,885

4,986

5,149

Call center outsourcing

4,154

4,130

4,221

4,078

3,884

3,753

3,721

3,482

Factory outsourcing

4,472

4,404

4,410

4,353

4,449

4,474

4,631

4,436

Care support

3,526

3,407

3,402

3,285

3,312

3,339

3,398

3,340

709

729

769

792

730

879

826

986

Construction management engineers

1,652

1,862

2,040

2,111

2,347

2,587

2,709

2,824

Others

1,275

1,107

1,442

1,409

579

597

670

701

Domestic Working

1,234

1,299

820

1,382

664

808

713

847

Sales outsourcing

464

441

371

442

282

284

337

405

Call center outsourcing

234

254

230

218

152

114

144

98

Factory outsourcing

287

255

180

226

222

180

229

134

Care support

115

102

122

159

78

48

54

47

HR support for startups

190

197

-205

86

102

204

-84

179

Construction management engineers

-273

-147

-85

7

-273

-59

-20

-48

Others

217

197

207

244

101

37

53

32

HR support for startups

Source: Company Data.

Figure39: Overseas Working Business Quarterly Details
FY3/2023

Revenue by contract type (\ mn)

FY3/2024(3 months)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Overseas W

14,042

15,702

14,205

13,58914,181

14,25913,622

13,367

Temporary staffing

11,91813,356

12,267

11,746

12,227

12,216

11,782

11,793

Permanent placement

2,124

2,346

1,878

1,831

1,933

2,031

1,839

1,550

0

0

60

12

21

12

1

24

Australia

10,66812,098

10,7709,893

10,504

10,220

9,436

9,071

Asia

3,374

3,605

3,435

3,696

3,678

4,039

4,194

4,290

Other
Geographic (Overseas) Revenue

Source: Prepared by Strategy Advisors, Based on Company Data.

60

WILL GROUP, INC. | 6089 (TSE Prime)
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