For Immediate Release
November 10, 2023

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the Six Months Ended September 30, 2023(IFRS)PERSOL HOLDINGS CO., LTD. (the Company) today announced its consolidated financial results
for the six months ended September 30, 2023.
(1) Consolidated Operating Highlights
1. Financial Results(In Millions of yen, unless otherwise stated)
Six months ended Sep. 30,% change
2022
2023
607,256
654,887
7.8

Revenue
Operating profit

34,092

26,379-22.6

profit before tax

33,992

25,982-23.6

Profit23,00017,578-23.6

Profit attributable to Owners of parent

22,025

16,768-23.9

Comprehensive income

26,002

23,785-8.5

Basic earnings per share (yen)

9.58

7.41

Diluted earnings per share(yen)

9.54

7.36

EBITDA

49,146

40,771

Adjusted EBITDA

43,28535,039Adjusted Net Profit

24,15419,004

Adjusted EPS(yen)

10.48

8.35

Note:
As of October 1, 2023, the Company conducted a 10-for-1 stock split of shares of common stock. As a result, basic earnings per shareand diluted earnings per share are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal
year.
EBITDA: Operating profit + Depreciation
Adjusted EBITDA: Operating profit + Depreciation (excluding rent and other equivalents from depreciation of right-of-use assets) ±Increase/decrease in accrued paid leave + Share-based payment expenses ± Other revenues and expenses ± Other non-recurring
profit/loss
Adjusted Net Profit : Profit attributable to Owners of parent ± Adjustment Item （(Excluding the portion attributable to noncontrollinginterests)） ± Tax reconciliation related to certain adjustment items
Adjustment Item : Increase/decrease in accrued paid leave + Share-based payment expenses ± other expenses and revenues ± Nonrecurring loss/profit
Adjusted EPS : Adjusted net profit/(Average number of shares outstanding during the period - Average number of treasury shares during
the period)

2.

Statement of financial position(In Millions of yen, unless otherwise stated)
As of March 31, 2023

As of Sep. 30, 2023

Total assets

488,728

497,069

Total equity

183,529

199,251

Total equity attributable to owners of parent

169,670

184,775

Ratio of Equity attributable to owners of theparent

34.7%

37.2%

-1-

(2) Dividend Status(In yen, unless otherwise stated)
Fiscal year ended/ending March 31,
2024 (forecast)

2023
Interim dividends

21.00

43.00

Year-end dividends

40.00

4.30

Annual dividends

61.00

-

Notes:①

No revision of dividend forecast from the latest announcement②

As of October 1, 2023, the Company conducted a 10-for-1 stock split for its common stock.

③

The year-end dividend for the fiscal year ending March 31, 2024 (forecast) with a record date of March 31, 2024 is based on thenumber of shares after the stock split, considering the effect of the stock split.

④

The forecast of total dividend per share is not shown because a simple comparison is notsuitable due to the stock split. The
dividend per share forecast on a pre-split basis is 86 yen per share.

3. Consolidated Financial Forecast for the Fiscal Year Ending March 2024
(In Millions of yen, unless otherwise stated)
Forecast for the fiscal year
% change from theending March 31, 2024
previous fiscal year
Full year

Full year

1,340,000

7.8

Operating profit

54,50027.5

Adjusted EBITDA

75,5000.3

Adjusted net profit

39,000-1.4

Adjusted EPS (yen)

17.14

-

Revenue-2-

Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of
consolidation): None
New: - (company name)
Excluded: - (company name)
(2)
①
②
③

Changes in accounting policies and accounting estimates
Changes in accounting policies required by IFRS: None
Changes in accounting policies other than ①above: None
Changes in accounting estimates: None

(3) Number of shares issued (common stock)
March 31, 2023①

Number of shares issued andoutstanding at the end of the period(including treasury stock)②

Number of shares of treasury stock at
the end of the period③

Average number of shares outstanding
during the period(cumulative quarterly period)

2,367,048,610

Six month ended
September 30, 2023
2,331,998,610

91,773,090

46,776,470

Six months ended
September 30, 2022
2,304,865,177

Six months ended
September 30, 2023
2,276,791,233

Notes:The number of treasury stock at the end of the period includes 25,515,740 shares for the 2nd quarter of the fiscal year ending March 31,
2024 and 14,203,730 shares for the fiscal year ended March 31, 2023. The "Directors' Compensation BIP Trust Account" and the "Stock
Grant ESOP Trust Account" are included in the above description as treasury stocks.
The quarterly financial results are not subject to quarterly review by certified public accountants or auditing firms.
As of October 1, 2023, the Company executed a 10-for-1 stock split of shares of common stock. As a result, ①, ② and ③ is calculatedon the assumption that the stock split was conducted at the beginning of the previous fiscal year.

Disclaimer
Explanation on the appropriate use of earnings forecasts and other special notes(Cautionary statement regarding forward-looking statements)
Forward-looking statements in this document, such as forecasts and projections based on plans, contain elements ofuncertainty and are subject to change. Accordingly, they are not intended to be a promise by the Company that they
will be achieved. Actual results may differ materially from our current expectations.
Note:(Application of International Financial Reporting Standards (IFRS))
Effective from the first quarter of the fiscal year ending March 31, 2024, the Group has adopted International Financial
Reporting Standards (hereinafter referred to as "IFRS"). Financial figures for the first half of the previous consolidated
fiscal year and the previous consolidated fiscal year are also presented in accordance with IFRS.
For the changes between IFRS and Japanese GAAP in relation to financial figures, please refer to "(First-time Adoption)"on page 25.

-3-(1) Management Discussion and Analysis
In the three months period ended June 30, 2023, the Company began to disclose its
condensed quarterly consolidated financial statements in accordance with the International
Financial Reporting Standards (IFRS). Figures for the same quarter of the previous fiscal year
and ones for the previous consolidated fiscal year have been recalculated under IFRS forcomparison and analysis.

1. Result of Operations
This year, PERSOL GROUP (the Group) celebrated its 50th anniversary.
At present, the Group provides a wide range of human resources (HR) related services
including temporary staffing and placement service in Japan. In addition, in the Asia-Pacific(APAC) region, the Group operates staffing business and facility management business.
In the six months ended September 30, 2023, the business environment saw a trend towards
a recovery in the Japanese economy due to the reclassification of COVID-19 from the "Novel
Influenza and other diseases category" (equivalent to so-called Class 2) to Class 5 infectious
diseases (in May 2023). However, the future remained uncertain mainly due to rising prices,which partly reflect soaring energy prices and the depreciation of the yen attributed to theprolonged Ukraine war and the crisis in Israel.
Despite such circumstances, the ratio of job offers to job seekers (seasonally adjusted) inJapan was 1.29 in September 2023, showing that demand for human resources remained
strong. In the APAC region, demand remained generally steady, with the exception of certain
regions where the impact of COVID-19 persisted. Concerning exchange rates, the yen
continued to weaken. (Average exchange rates during the period: [U.S. dollar] ¥134.0 for
FY 2023/3 1H, ¥141.1 for FY 2024/3 1H; [Australian dollar] ¥93.6 for FY 2023/3 1H, ¥93.3
for FY 2024/3 Q2)
In this business environment, the Company has been aggressively investing since thebeginning of the period, mainly in the Careers SBU, BPO SBU, and Technology SBU, whichwere designated as the pillars of profit growth in the Midterm Plan 2026, of which the current
period is the first year. Against this backdrop, in BPO SBU, operations related to infection
control have settled down as initially expected with the subsiding of COVID-19. Revenue inthe other SBUs increased, resulting in overall group revenue of 654,887 million yen (up 7.8%
year-on-year, 48.9% progress rate for full year forecasts).
Profits increased at Career SBU on brisk corporate demand and also rose at APAC SBU, where
integration is in progress. Profit declined at the other SBUs due to temporary and seasonal
factors, such as an increase in social security costs at Staffing SBU, the absence of COVID19-related operations at BPO SBU, and the brisk recruitment of new graduate engineers at
Technology SBU. The overall Group's adjusted EBITDA, which the Company began to use asa key profit indicator in the current fiscal year, stood at 35,039 million yen (down 19.0%
year on year, 46.4％ progress rate for full year forecasts) and operating profit was 26,379
million yen (down 22.6% year on year, 48.4% progress rate for full year forecasts). Profit
before tax was 25,982 million yen (down 23.6% year on year), and net profit attributable toowners of parent company stood at 16,768 million yen (down 23.9% year on year, 50.1%
progress rate for full year forecasts).

-4-

a. Staffing SBU
In this segment, the Group operates temporary staffing business, including mainly clericaland administrative staff dispatching and wide range of staffing service.
Sales for the six months ended September 30, 2023 were 286,459 million yen (up 7.4% year
on year), adjusted EBITDA was 15,931 million yen (down 6.3% year on year), and operating
profit was 14,420 million yen (down 5.9% year on year)
The increase in revenue is attributed mainly to the number of active temporary staff at approx.
122,000 persons (up 5.6% year on year) and the average billing rate of 2,267 yen (up 3.0%
year on year). The decline in operating profit and adjusted EBITDA chiefly reflects an increasein social security cost.
b. BPO SBUThis segment is a new segment consisting mainly of the business process outsourcing (BPO)
business, which belonged to Staffing SBU until the previous fiscal year.
Sales for the six months ended September 30, 2023 were 54,137 million yen (down 5.1%
year on year), adjusted EBITDA was 3,729 million yen (down 57.8% year on year), andoperating profit was 2,644 million yen (down 65.8% year on year)
Both revenue, operating profit and adjusted EBITDA decreased because operations related
to infection control settled down as initially expected. (The negative impact associated with
COVID-19 on profits was approx. 3.1 billion yen (gross profit from COVID-19 related businessduring the period: approx. 5.2 billion yen in 23/3-1H, approx. 2.1 billion yen in 24/3-1H).)
c. Technology SBU
This segment had been Professional Outsourcing SBU until the previous fiscal year. Somebusinesses were transferred to BPO SBU. In this segment, the Group operates manufacturing
and development outsourcing business in IT and engineering areas and temporary staffing
business specialized in engineers dispatching.
Sales for the six months ended September 30, 2023 were 49,415 million yen (up 14.2% year
on year), adjusted EBITDA was 2,713 million yen (down 17.2% year on year), and operating
profit was 2,339 million yen (down 24.1% year on year)
Revenue increased because the engineering area saw growth in demand, mainly fordevelopment in the manufacturing industry. An additional factor was steady growth in the IT
area. Operating profit and adjusted EBITDA decreased, mainly reflecting an increase inpersonnel expenses that resulted from enhanced activities to recruit new graduate engineers(up 104.7% year on year).
Operating rate was 85.3% for IT and DX Solutions (up 83.8% from Q1) and 93.5% forEngineering (up 89.9% from Q1).
d. Career SBU
In this segment, the Group mainly operates placement business, supporting corporate clients'
mid-career hiring activities, and job recruitment media business.
Sales for the six months ended September 30, 2023 were 63,388 million yen (up 29.2% year
on year), adjusted EBITDA was 11,893 million yen (up 10.7% year on year), and operating
profit was 9,629 million yen (up 4.3% year on year).
Revenue in the placement business and job recruitment media business increased due toefficient, stronger sales promotion activities in addition to the growth of demand for hiring-5-among customers although slight signs of uncertainty began to be seen in business
confidence. Operating profit and adjusted EBITDA increased on stronger sales, absorbing therise in selling, general and administrative expenses that resulted from marketing investment
made in response to the rising demand, investment to high-salary career zone businesses,
and enhancement of hiring activities.
With the enhanced hiring activities, the headcount (HC, the number of personnel) of CA(Career advisor) and others increased steadily, to 2,261 persons (average for the second
quarter under review) (up 25.1% year on year). In addition, productivity (revenue ÷ HC)
was 2,730 thousand yen (average for the second quarter under review) (up 0.4% year onyear), showing that efficiency was also improved.
e. Asia Pacific SBU
In this segment, the Group operates temporary staffing business and placement business in
Asia and staffing business and facility management business in Australia (those businesses
are operated under PERSOLKELLY brand in Asia and under Programmed brand in Australia.)
Sales for the six months ended September 30, 2023 were 203,323 million yen (up 6.0% year
on year), adjusted EBITDA was 5,347 million yen (up 15.3% year on year), and operating
profit was 3,464 million yen (up 59.2% year on year).
Revenue increased due to progress in the recovery from the impact of the spread of COVID19 infection, with steady growth in sales from the facility management business in particular.
Operating profit and adjusted EBITDA rose significantly due to cost optimization associatedwith the consolidation of administrative departments, in addition to stronger sales.
Profitability also improved, with operating profit margin at 1.7% (up 0.6% year on year).
#

#

#

#

(2) Financial Position
1. Consolidated Statement of financial position
Total assets increased 8,341 million yen compared to the end of the previous fiscal year.
Current assets decreased 1,641 million yen, and non-current assets rose 9,982 million yen.
The decrease in current assets chiefly reflected a decrease of 2,168 million yen in trade andother receivables. Non-current assets climbed mainly due to increases in right-of-use assetsof 3,517 million yen, in intangible assets of 2,094 million yen, and in goodwill of 1,793 million
yen.
Liabilities decreased 7,381 million yen compared to the end of the previous fiscal year.
Current liabilities decreased 1,730 million yen and non-current liabilities decreased 5,650
million yen. Liabilities declined mainly because bonds and borrowings decreased 5,392 million
yen in current liabilities and 10,117 million yen in non-current liabilities, which was partially
offset by a rise in lease liabilities of 3,655 million yen in non-current liabilities.
Equity increased 15,722 million yen compared to the end of the previous fiscal year. Thiswas mainly due to an increase of 7,677 million yen in retained earnings, which resulted
primarily from the payment of dividends from surplus of 9,101 million yen and the recordingof 16,768 million yen in quarterly income attributable to owners of the parent, and a decreaseof 9,689 million yen in treasury shares that resulted from cancellation and disposal oftreasury shares.

-6-

As of March 31,2023

As of September 30,
2023

Ratio of operating profit to sales

3.4％

4.0％

Ratio of Adjusted EBITDA to sales

6.1％

5.4％

Current ratio

120.8％

121.0％

Fixed ratio

110.4％

106.8％

Fixed long-term precision

83.1%

84.0%

Equity attributable to owners of the parent Ratio

34.7％

37.2％

0.30

0.19

488,728

497,069

169,670

184,775

101,233

102,753

EBITDA (million yen)

73,06940,771

Adjusted EBITDA (million yen)

75,27735,039Debt(excluding lease)/equity ratio
Total assets (million yen)
Equity attributable to owners of the parent(million yen)
Cash and cash equivalents at end of period(million yen)

Notes:
Effective from the first quarter of the fiscal year ending March 31, 2024, the Group has adopted International Financial ReportingStandards (hereinafter referred to as "IFRS") for the first time. Non-current assets increased due in part to the recoding of rightof-use assets resulting from the transition to IFRS. Accordingly, the fixed ratio increased from the previous fiscal year, whenfinancial statements were disclosed under Japanese GAAP.

2．Business and financial issues to address
The six months ended September 30, 2023 saw no significant change in business andfinancial issues that the Group should address.

3．Consolidated Cash Flows
Cash and cash equivalents (hereinafter "capital") as of September 30, 2023 was 102,753
million yen, up 1,519 million yen from the end of the previous consolidated fiscal year.
Presented below are an overview of cash flows for the six months ended September 30, 2023
and main factors behind them.
(Cash flow from operating activities)
Capital used by operating activities was 40,867 million yen (as compared to 26,709 million yen
generated in the same period of the previous fiscal year). Major factors were a profit before taxof 25,982 million yen and depreciation, amortization of 14,391 million yen, decrease in tradeand other receivables, among other cash inflows, and income taxes paid of 11,600 million yen,among other cash outflows.
(Cash flow from investing activities)
Capital used as a result of investing activities was 7,781 million yen (as compared to 13,871
million yen used in the same period of the previous fiscal year). This was mainly due tospending of 5,562 million yen on the purchase of intangible assets.
(Cash flow from financing activities)
Capital used as a result of financing activities was 33,609 million yen (as compared to 21,131
million yen used in the same period of the previous fiscal year). This was mainly caused by
repayments of short-term borrowings of 141,605 million yen, spending of 10,000 million yen for
the redemption of bonds payable and 9,097 million yen in dividend payments, partially offset byproceeds from short-term borrowings of 135,637 million yen.
-7-

Condensed Consolidated Financial Statements(1) Condensed Consolidated Balance Sheet(In Millions of yen)
Date ofTransition(April 1, 2022)

As of March 31,2023

As of Sep. 30,
2023

Cash and cash equivalents

95,933

101,233

102,753

Trade and other receivables

158,857

162,853

160,684

Contract assets

19,07723,533

22,692Other financial assets

94

78

233

Other current assets

8,032

13,74813,440Total current assets

281,995

301,445299,804

320

309

327

4,230

3,937

4,731

9,989

9,229

8,817

Right-of-use assets

28,39928,16831,685

Goodwill

63,941

58,46560,258Intangible assets

35,76235,25037,345Investments accounted for using equity

2,771

4,729

4,908

Other financial assets

22,17523,46425,058Deferred tax assets

18,46023,41023,834

204

317

298

Total non-current assets

186,255

187,283

197,265

Total assets

468,251

488,728

497,069

AssetsCurrent assets

Non-current assets
Trade and other receivables
Contract assets
Property, plant and equipment

methodOther non-current assets-8-

(Condensed Consolidated Balance Sheet)(In Millions of yen)
Date ofTransition(April 1, 2022)

As of March 31,2023

As of Sep. 30,
2023

Trade and other payables

87,103

93,68895,021

Bonds and borrowings

14,96821,174

15,782

Lease liabilities

13,63014,005

13,976

Liabilities and equity
Liabilities
Current liabilities

Other financial liabilities
Income taxes payable
Provisions

836

989

603

10,745

10,535

9,094

787

1,588

963

4,951

6,596

7,050

Other current liabilities

92,854

100,972

105,330

Total current liabilities

225,877

249,552

247,821

Bonds and borrowings

40,00030,11720,000

Lease liabilities

12,622

12,813

16,469

737

809

934

Provisions

4,492

4,660

4,774

Deferred tax liabilities

3,919

4,394

4,868

Contract liabilities

Non-current liabilities

Other financial liabilities

Other non-current liabilities

3,126

2,850

2,948

Total non-current liabilities

64,89955,64749,996

290,777

305,199

297,818

Share capital

17,47917,47917,479

Capital surplus

12,11012,272

3,851

Retained earnings

141,880

154,926

162,604

Treasury shares-10,351-19,459-9,770Total liabilities
EquityOther components of equity
Total equity attributable to owners of parent

4,290

4,452

10,610165,409

169,670

184,775

Non-controlling interests

12,064

13,85914,476

Total equity

177,474

183,529

199,251468,251

488,728

497,069

Total liabilities and equity-9-(2) Condensed Consolidated Income Statements and Condensed Comprehensive Income
Statement(Condensed Consolidated Income Statement)(In Millions of yen)Six months ended Sep. 30,
2022
2023
Revenue

607,256

654,887

Cost of sales-468,025-506,242

Gross profit

139,231

148,645

Selling, general and administrative expenses-105,073-122,587

150

570

Other income
Other expenses

-215

-248

Operating profit

34,092

26,379Finance income

267

495

Finance costs

-431

-760

64

-132

Profit before tax

33,992

25,982

Income tax expense-10,992-8,404

Profit23,00017,57822,025

16,768

Share of profit of investments accounted forusing equity method

Profit attributable to
Owners of parent
Non-controlling interests

974

809

23,00017,578

Basic earnings per share

9.58

7.41

Diluted earnings per share

9.54

7.36

ProfitEarnings per share- 10 -

(Condensed Consolidated Income Statement)(In Millions of yen)Three months ended Sep. 30,
2022

2023

Revenue

306,788326,183

Cost of sales-237,097-252,642

Gross profit

69,69173,541

Selling, general and administrative expenses-52,960-61,699

Other income

87

53

Other expenses

-162

-191

Operating profit

16,655

11,703Finance income

103

103

Finance costs

-297

-279

21

-162

Share of profit of investments accounted forusing equity method
Profit before tax

16,482

11,365

Income tax expense-5,123-3,521

Profit11,3597,843

10,886

7,399

Profit attributable to
Owners of parent
Non-controlling interests

473

444

11,359

7,843

Basic earnings per share

4.74

3.27

Diluted earnings per share

4.71

3.25

ProfitEarnings per share- 11 -

(Condensed Consolidated Comprehensive Income Statement)(In Millions of yen)Six months ended Sep. 30,
2022
Profit2023
23,00017,578-303

501

Other comprehensive income
Items that will not be reclassified to profit or
loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Total of items that will not be reclassified to

3

-77

-300

423

profit or loss
Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign

16

－

3,040

5,473

245

310

3,302

5,783

operations
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that may be reclassified to profit
or loss
Other comprehensive income, net of tax

3,002

6,207

26,002

23,785

Owners of parent

24,99022,937

Non-controlling interests

1,012

848

Comprehensive income

26,002

23,785Comprehensive income
Comprehensive income attributable to- 12 -

(Condensed Consolidated Comprehensive Income Statement)(In Millions of yen)Three months ended Sep. 30,
2022
Profit2023
11,359

7,843

-5

-48

Other comprehensive income
Items that will not be reclassified to profit or
loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans

3-0

Total of items that will not be reclassified to

-2

-49

profit or loss
Items that may be reclassified to profit or loss
Cash flow hedges

17－

Exchange differences on translation of foreign

564

800

106

45

687

846

operations
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that may be reclassified to profit
or loss
Other comprehensive income, net of tax
Comprehensive income

684

796

12,044

8,640

11,5598,184

Comprehensive income attributable to
Owners of parent
Non-controlling interests

484

456

Comprehensive income

12,0448,640- 13 -

（３）Condensed Consolidated Statement of Changes in Equity
Six months ended September 30, 2022
(In Millions of yen)
Equity attributable to owners of parent
Share capital

Balance at beginning of period

CapitalsurplusRetainedearnings

TreasurysharesOther components ofequityExchange
Cash flow
differences
hedgesontranslationof foreign
operations

17,47912,110141,880-10,351

Profit--22,025---

Other comprehensive income

-

-

-

-

3,248

16

Comprehensive income

-

-3

-

-

22,025

-

3,248

16

Purchase of treasury shares

-

-

-

-2,054--

Disposal of treasury shares

-

-821

-

875

-

-

Dividends---5,072---

Share-based payment

-

567

-

-

-

-

-

-

-

-

-

-

-

-68

-

-

-

-

Loss of control of subsidiaries

-

-

-

-

-

-

Transfer from other components

-

-

187

-

-

-

transactions
Increase (decrease) bybusiness combination
Changes in ownership interest in
subsidiaries

of equity to retained earnings
Other
Total transactions with owners
Balance at end of period

-

-322

-4,884-1,179--17,47911,788159,021-11,5313,248

13Equity attributable to owners of parent
Other components of equity

Balance at beginning of period
ProfitOther comprehensive income
Comprehensive income

Financialassetsmeasured
at fairvaluethroughothercomprehensiveincomeRemeasurements ofdefinedbenefit
plans

4,309

-16

Noncontrollinginterests

Total

Total

Total

4,290

165,409

12,064

177,474---

22,025974

23,000

-303

3

2,964

2,964

37

3,002

-303

3

2,964

24,9901,012

26,002

Purchase of treasury shares

-

-

-

-2,054--2,054

Disposal of treasury shares

-

-

-

53

-

53

Dividends----5,072-248-5,321

Share-based payment

-

-

-

567

-

567

-

-

-

-

-10

-10

transactions
Increase (decrease) bybusiness combination- 14 -

Changes in ownership interest in

-

-

-

-68

-

-68

subsidiaries
Loss of control of subsidiaries

-

-

-

-

8

8

-187

-

-187

-

-

-

Total transactions with owners

-187

-

-187

-6,574-251-6,825

Balance at end of period

3,818

-12

7,067

183,824

12,826

196,651

Transfer from other componentsof equity to retained earnings
Other- 15 -Six months ended September 30, 2023
(In Millions of yen)
Equity attributable to owners of parent

Share capital

Balance at beginning of period

CapitalsurplusRetainedearnings

Other components ofequityExchangedifferencesonCash flowtranslation
hedgesof foreign
operations

Treasuryshares17,47912,272

154,926-19,459

Profit

--16,768Other comprehensive income

-

-

-

Comprehensive income

150

-

-

-

-

-

5,744

-

-

-

16,768

-

5,744

-

Purchase of treasury shares

-

-

-

--

-

-

Disposal of treasury shares--1,915

-

2,160

-

-

Cancellation of treasury shares--7,528

-

7,528

-

-

Dividends---9,101

-

-

-

-

1,131

-

-

-

-

-

-

-

-

-

-

-

-107

-

-

-

-

-

-

-

-

-

-

-

-

-10

-

-

-

Share-based paymenttransactions
Increase (decrease) bybusiness combination
Changes in ownership interest in
subsidiaries
Loss of control of subsidiaries
Transfer from other componentsof equity to retained earnings
Other

-

-0

-

-

-

-

Total transactions with owners--8,420-9,090

9,689

-

-

17,4793,851

162,604-9,7705,894-

Balance at end of period

Equity attributable to owners of parent
Other components of equity
Financialassetsmeasured
at fairvaluethroughothercomprehensiveincomeRemeasurements ofdefinedbenefit
plans

4,287

14

4,452

169,670

13,859183,529---

16,768809

17,578

501

-77

6,168

6,168

38

6,207

501

-77

6,168

22,937848

23,785Purchase of treasury shares

-

-

-

-

-

--

Disposal of treasury shares

-

-

-

245

-

245

Cancellation of treasury shares

-

-

-

-

-

-

Balance at beginning of period
ProfitOther comprehensive income
Comprehensive income- 16 -

Noncontrollinginterests

Total

Total

Total

Dividends

-

-

-

-9,101-242-9,343

Share-based paymenttransactions

-

-

-

1,131

-

1,131

Increase (decrease) bybusiness combination

-

-

-

-

-

-

Changes in ownership interestin subsidiaries

-

-

-

-107

11

-96

Loss of control of subsidiaries

-

-

-

-

-

-

-10

-

-10

-

-

-

-

-

-

-0

-

-0

-10

-

-10

-7,832-231-8,063

4,778-62

10,610184,775

14,476

199,251

Transfer from othercomponents of equity toretained earnings
Other
Total transactions with owners
Balance at end of period- 17 -

（4）Condensed Quarterly Consolidated Statements of Cash Flows(In Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Cash flows from operating activities
Profit before tax

33,992

25,982

Depreciation and amortization

15,054

14,391

Decrease (increase) in trade and other receivables

3,016

6,414

Increase (decrease) in trade and other payables-5,074-976

Decrease (increase) in contract assets-2,015

1,601

Decrease (increase) in prepaid expenses-838-1,826

Increase (decrease) in accrued consumption taxes-1,734

2,561

Increase (Decrease) in accrued bonus-2,014-1,607

Increase (Decrease) in accrued paid vacation

1,428

1,789

Other
Subtotal

479

4,196

42,29352,527

Interest and dividends received

231

404

Interest paid

-282

-464

Income taxes refund (paid)-15,533-11,600

Net cash provided by (used in) operating activities

26,70940,867Purchase of property, plant and equipment-1,591-1,656

Purchase of intangible assets-4,640-5,562

Purchase of shares of subsidiaries and associates-1,301

－

-692

-387

-3,321-10

Cash flows from investing activities

Purchase of investments
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments for acquisition of businesses
Other
Net cash provided by (used in) investing activities-1,453

－

-870

-164

-13,871-7,781

Cash flows from financing activities
Proceeds from short-term borrowings

1,600

135,637

Repayments of short-term borrowings-870-141,605

Repayments of long-term borrowings-2,346-183

Repayments of lease liabilities-8,126-8,207－-10,000

Purchase of treasury shares-2,055－

Dividends paid

-5,071-9,097

Other-4,261-153

Net cash provided by (used in) financing activities-21,131-33,609

Effect of exchange rate changes on cash and cash

945

2,042

Net increase (decrease) in cash and cash equivalents-7,348

1,519

Cash and cash equivalents at beginning of period

95,933

101,233

Cash and cash equivalents

88,585

102,753

Redemption of bonds

equivalents- 18 -

（５）Notes to the Condensed Quarterly Consolidated Financial Statements
Notes on Going Concern Assumption
Not applicable.

- 19 -

Segment Information(1) Overview of reportable segments
The reportable segments are constituent parts of the Group for each of which separate
financial information is available. The Board regularly reviews operations in each reportablesegment to evaluate performance and determine the distribution of management resources.
The Group changed its management structure on April 1, 2023. Aiming to enhance its ability
to formulate and pursue strategies, clarify responsibilities, make agile management decisions in
response to rapidly changing business environments, and achieve further growth. To this end,
the Group has five reportable segments: Staffing, BPO, Technology, Career and Asia Pacific.
The segment information for the six months and three months ended September 30, 2022 isprepared based on the new reportable segments.
(2) Information of reportable segments
Profit in reportable segments is adjusted EBITDA (operating profit + depreciation (excluding
rent and other equivalents from depreciation of right-of-use assets) ± increase/decrease inaccrued paid leave + share-based payment expenses ± other revenues and expenses ±nonrecuring profit/loss).
Intersegment revenues are based on prevailing market prices.
For Six months ended September 30 2022
(Millions of yen)
Reportable Segment

Other

CareerAsia
Pacific

Total

*1

Total

Adjustme Consolida
nts*2
ted

Staffing

BPO

TechnologyRevenue fromexternalcustomers
Intersegment
revenue

263,739

54,151

39,69347,890191,649

597,124

10,127 607,252

3,068

2,912

3,565

1,180

1

10,728

4,967

Total

266,808

57,064

43,25949,070191,650

607,853

15,094 622,948 -15,692 607,256

16,993

8,834

3,279

10,741

4,638

44,487

Revenue

Segment profit(loss)
Depreciation(excluding rent
and otherequivalents fromdepreciation ofright-of-use
assets)Increase/decreasein accrued paidleave
Share-based
payment
expenses-902

3 607,256

15,695 -15,695

43,584-299－

43,285
6,976

1,583

567

Other income

150

Other expenses

215

Operating profit

34,092

Share of profit(loss) ofinvestments
accounted forusing equity
method64- 20 -

Finance income

267

Finance costs

431

Profit before tax

33,992For Six months ended September 30 2023
(Millions of yen)
Reportable Segment

Other

*1

Adjustme Consolida
nts*2
ted

Total

Staffing

BPO

TechnologyCareerAsia
Pacific

Total

Revenue fromexternalcustomers
Intersegment
revenue

283,648

50,91644,26662,321

203,223

644,377

10,508 654,885

2,810

3,220

5,149

1,067

－

12,247

6,041

Total

286,459

54,13749,41563,388203,223

656,625

16,550 673,175 -18,287 654,887

15,931

3,729

2,713

11,893

5,347

39,615

Revenue

Segment profit(loss)
Depreciation(excluding rent
and otherequivalents fromdepreciation ofright-of-use
assets)Increase/decreasein accrued paidleave
Share-based
payment
expenses-936

2 654,887

18,289 -18,289

38,679-3,639－35,039
6,078

1,791

1,113

Other income

570

Other expenses

248

Operating profit

26,379

Share of profit(loss) ofinvestments
accounted forusing equity
method-132

Finance income

495

Finance costs

760

Profit before tax

25,982(Notes)1. Other is a business segment that includes operations that are not included in reportable segments, including
operations related to the entire Group, education and training, operations related to persons with disabilities, operations
related to facility management, the provision of digital solution services for hiring talents and managing humanresources, and the creation of new businesses through incubation programs.

2. Adjustments are as follows:(Segment profit (loss))(In Millions of yen)Six months ended Sep. 30 2022 Six months ended Sep. 30 2023

- 21 -Elimination of inter-segment-832-1,497

Corporate revenue*1

6,443

4,905

Corporate expenses*2-5,910-7,047

Total

-299

-3,639transactions*1 Corporate revenue is mostly business management fees and dividend income from Group companies.
*2 Corporate expenses are mostly expenses related to Group management at the Company

For Three months ended September 30 2022
(In Millions of yen)
Reportable Segment

Other

*1

Total

Staffing

BPO

TechnologyCareerAsia
Pacific

Total

Revenue fromexternalcustomers
Intersegment
revenue

131,688

27,45520,32324,30397,759301,530

1,589

1,476

1,929

568

0

5,563

Total

133,278

28,931

22,252

24,87297,759307,094

7,721 314,815

7,673

4,617

1,935

4,869

2,486

21,582-695

Adjustme Consolida
nts*2
ted

Revenue

Segment profit(loss)

5,252 306,782

2,469

8,033

20,886

Depreciation(excluding rent
and otherequivalents fromdepreciation ofright-of-use
assets)Increase/decreasein accrued paidleave
Share-based
payment
expenses

5 306,788-8,033－-8,027 306,788-280

20,606
3,522

63

289

Other income

87

Other expenses

162

Operating profit

16,655

Share of profit(loss) ofinvestments
accounted forusing equity
method21

Finance income

103

Finance costs

297

Profit before tax

16,482

For Three months ended Sep. 30 2023
(Millions of yen)
Reportable Segment
Staffing

BPO

TechnologyCareer- 22 -

Asia
Pacific

Other
Total

*1

Total

Adjustme Consolida
nts*2
ted

Revenue
Revenue fromexternalcustomers
Intersegment
revenue

140,329

26,05822,40230,988100,954

320,732

1,336

1,559

3,151

498

－

6,545

Total

141,665

27,61725,554

31,486

100,954327,278

8,513 335,791-9,608 326,183

6,546

2,072

1,954

5,248

2,751

18,573-433-2,113

Segment profit(loss)

5,450 326,183

3,063

9,608

18,1390 326,183-9,608Depreciation(excluding rent
and otherequivalents fromdepreciation ofright-of-use
assets)Increase/decreasein accrued paidleave
Share-based
payment
expenses－

16,025
3,116

403

663

Other income

53

Other expenses

191

Operating profit

11,703

Share of profit(loss) ofinvestments
accounted forusing equity
method-162

Finance income

103

Finance costs-279

Profit before tax

11,365(Notes)1. Other is a business segment that includes operations that are not included in reportable segments, including
operations related to the entire Group, education and training, operations related to persons with disabilities, operations
related to facility management, the provision of digital solution services for hiring talents and managing humanresources, and the creation of new businesses through incubation programs.

2. Adjustments are as follows:(Segment profit (loss))(In Millions of yen)Three months ended Sep. 30
2022

Three months ended Sep. 30
2023

-478

-1,076

Corporate revenue*1

3,233

2,511

Corporate expenses*2-3,035-3,548

Total

-280

-2,113Elimination of inter-segment
transactions*1 Corporate revenue is mostly business management fees and dividend income from Group companies.
*2 Corporate expenses are mostly expenses related to Group management at the Company- 23 -

(Earnings per Share)

Basic earnings per share and diluted earnings per share are as follows:(First six-month period)
Six months ending
September 30, 2022

Six months ending September
30, 2023

22,025

16,768－－22,025

16,7682,298,208

2,264,486

9,617

15,0972,307,825

2,279,584

Basic earnings per share (yen)

9.58

7.41

Diluted earnings per share (yen)

9.54

7.36

Profit attributable to owners of parent (million yen)
Adjustment to profit for the period (million yen)
Profit used to calculate diluted earnings per share(million yen)
Weighted average number of common shares(thousand shares)
Increase in number of common shares
Share-based compensation (thousand shares)
Weighted average number of common shares after
dilution (thousand shares)(Three months period)
Three months ending
September, 2022

Three months ending
September, 2023

10,886

7,399

－

－

10,886

7,399

2,296,211

2,263,994

10,54015,2172,306,752

2,279,211

Basic earnings per share (yen)

4.74

3.27

Diluted earnings per share (yen)

4.71

3.25

Profit attributable to owners of parent (million yen)
Adjustment to profit for the period (million yen)
Profit used to calculate diluted earnings per share(million yen)
Weighted average number of common shares(thousand shares)
Increase in number of common shares
Share-based compensation (thousand shares)
Weighted average number of diluted ordinary
shares (thousand shares)

Note:
As of October 1, 2023, the Company conducted a 10-for-1 stock split of shares of common stock. As a result, basic earnings per shareand diluted earnings per share are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscalyear.

- 24 -

(Subsequent Events)

Not applicable.
(First-time Adoption)

The Group is disclosing quarterly consolidated financial statements complying withIFRS from the first quarter of this fiscal year under review. The most recent consolidated
financial statements prepared under Japanese GAAP are those for the fiscal year ended
March 31, 2023. The date of transition to IFRS is April 1, 2022.
(1) Exemptions set out in IFRS 1
In principle, an entity that applies IFRS for the first time (hereinafter “First-time
Adopter”) is requested to retrospectively apply IFRS. However, IFRS 1 - First-time
Adoption of International Financial Reporting Standards (hereinafter “IFRS 1”) sets out
standards to which exemptions have to be applied mandatorily and standards to which
exemptions are applied optionally. The effects of the applied exemptions are adjusted
by retained earnings or other components of equity on the date of transition to IFRS.
When the Group moved from Japanese GAAP to IFRS, it applied the following
exemptions:- Business combination
The First-time Adopter is allowed to choose not to retrospectively apply IFRS 3
Business Combinations (hereinafter “IFRS 3”) to business combinations before the dateof transition to IFRS. The Group has applied the exemption and has chosen not toretrospectively apply IFRS 3 to business combinations before the date of transition. As aresult, goodwill that resulted from business combinations before the date of transition isbased on the book value on the date of transition under Japanese GAAP.
The Group conducted an impairment test related to goodwill on the date of transition
regardless of the existence of signs of impairment.

- Exchange differences on translation of foreign operations
IFRS 1 allows entities to choose to deem cumulative translation differences for foreign
operations as of the date of transition to IFRS to be zero. The Group has chosen to deem
cumulative translation differences for foreign operations to be zero as of the date oftransition.

- Share-based payment transactions
The Group has chosen not to apply IFRS 2 of Share-based payment transactions tostock compensation that was vested before the date of transition.

- LeaseIFRS 1 permits a first-time adopter to assess whether a contract contains a lease
based on the facts and circumstances that exist at the date of transition to IFRSs.
Applying this exemption, the Group has assessed whether the contract contains a leaseon the basis of the facts and circumstances existing at that date.

25

- Decommissioning liabilities included in the cost of property, plant and equipment
Regarding decommissioning liabilities included in the cost of property, plant andequipment, IFRS 1 permits an entity to select either to retrospectively
apply IFRSs requirements for the period back to the time when the liability first arose or
to measure the liability as at the date of transition to IFRSs. The Group has chosen tomeasure the decommissioning liabilities included in the cost of property, plant andequipment as at the date of transition to IFRSs.

- Designation of previously recognized financial instruments
Regarding the classification under IFRS 9 Financial Instruments (hereafter, "IFRS 9"),IFRS 1 permits an entity to make a judgment on the basis of the facts andcircumstances that exist at the date of transition to IFRSs, instead of facts andcircumstances at the time of initial recognition. IFRS 1 also permits an entity todesignate an equity instrument as a financial asset to be measured at fair value throughother comprehensive income, on the basis of the facts and circumstances that exist at
the date of transition to IFRSs.
Regarding the classification under IFRS 9, the Group has made judgments on the basisof the facts and circumstances that existed at the date of transition to IFRSs anddesignated some of its equity instruments as financial assets to be measured at fairvalue through other comprehensive income.

(2) Mandatory exceptions under IFRS 1IFRS 1 prohibits retrospective application of IFRSs in relation to estimates,
derecognition of financial assets and financial liabilities, hedge accounting, noncontrolling interests, classification and measurement of financial products, etc. The
Group applies IFRSs on these topics prospectively from the date of transition to IFRSs.

26

(3) Reconciliations
Reconciliations that are required to be disclosed in the first-time adoption of IFRS areas follows.
The "Impact of change of the fiscal year end" among the reconciliations shows theimpact of unifying the reporting period of subsidiaries and affiliates whose fiscal year
end differed from the Company's. Among the other reconciliations, items which do nothave an impact on retained earnings and comprehensive income are presented in"Reclassification" and those that do have an impact on retained earnings andcomprehensive income are presented in "Recognition and measurement differences."

Reconciliations of equity as of transition date (April 1, 2022)(In Millions of Yen)Line items underJapanese GAAP

Japanese
GAAP

Impact ofchange inaccounting
periodReclassification

Differences inrecognition
andmeasurement

IFRS

Notes

Line items underJapanese IFRSs

AssetsAssetsCurrent assets

Current assets

Cash anddeposits

107,545-11,524-88－

95,933

1

Cash and cash
equivalents

Notes andaccounts
receivable trade150,173

7,390

1,294

－

158,857

3,4

Trade andotherreceivables

Contract assets

18,658

4,649-4,230－19,077Work in process

333

－

-333

－

－

2

－

－

94

－

94

1,3

Other financial
assets

10,74020-1,519-1,208

8,032

2

Other current
assetsAllowance for
doubtfulaccounts

-554

1

552

－

－

4

Total current
assets286,897537-4,230-1,208281,995

Other

Contract
assetsTotal current
assetsNon-current
assetsNon-current assets

Property, plantand equipment

Intangible assets

Trade and otherreceivables

－

－

308

12

320

－

－

4,230

－

4,230

13,414254- 4,820

1,140

9,989

－

－

4,820

23,57928,39917

Right-of-use
assets95,1293,112- 34,300－

63,941

15

Goodwill

27

4,6

Contract
assetsProperty,plant andequipment－－

34,3001,462

35,762

14

Intangible
assetsInvestments
accounted forusing equity
method

－

－

2,771

－

2,771

5

Investment
securities

8,664

126

7,432

5,951

22,175

5,6,16

Other financial
assetsDeferred tax
assets10,324

10

－

8,125

18,460

12

Deferred tax
assetsOther

12,208199-12,193

-9

204

6

Allowance for
doubtfulaccounts-1,527

-153

1,681

－

－

4

Total noncurrent
assets138,213

3,549

4,230

40,261

186,255

425,110

4,087－

39,052

468,251

Total assets

Other noncurrent assets

Total noncurrent
assetsTotal assets
Liabilities andequityLiabilities

Liabilities

Current liabilities

Current liabilities

Short-termborrowings

Bonds andborrowings

162

824

13,998-16

14,9687

11,304

2,694-13,998

－

－

7

－

－

1,608

12,021

13,6309,17Lease liabilities

Accounts
payable - trade

630

-45

86,587-68

87,1038,9Trade andother
payablesAccounts
payable - other

81,813

6,649-88,462

－

－

8

－

－

815

21

836

8

11,211-465－－

10,745

714

73

－

－

787

－

－

4,951

－

4,951

Accruedconsumption
taxes

17,432-0-17,431－－

9

Provision forbonuses

17,847-497-17,350

－

－

9

71

-45

-25

－

－

9

26,706928

29,30735,911

92,854Current portionof long-termborrowings

Income taxes
payableOther provisions

Provision forbonuses for
directors (andother officers)
Other

28

Other
financialliabilities
Income taxes
payableProvisions
Contract
liabilities

8,9,18Other current
liabilities

Total current
liabilities

167,893

10,115－47,868

Total current
liabilities

225,877

Non-current
liabilities

Non-current
liabilities
Bonds andborrowings

10,000－30,000－40,00030,000－-30,000

－

－

1,997

-16

－

10,642

12,622

17

Lease liabilities

－

－

9

727

737

8,11

Other
financialliabilities

Asset
retirement
obligation

4,430

60

1

－

4,492

10

Provisions

Deferred tax
liabilities

3,039

1,111

－

-231

3,919

12

Deferred tax
liabilities

Retirement
benefit liability

414

24

-439

－

－

11

Provision forshare awards

810

1

-811

－

－

11

Provision forshare awards
for directors(and otherofficers)

835

0

-836

－

－

11

Other provisions

81

0

-81

－

－

11

1,239

43

2,157

-313

3,126

52,8501,225－

10,82464,899220,743

11,340－58,693

290,777

Bonds payable
Long-term
borrowings
Lease liabilities

Other
Total noncurrent
liabilities
Total liabilities

11,18

Other noncurrent
liabilities
Total noncurrent
liabilities
Total liabilities

Net assets

EquityShare capital

17,479－－－17,479

Share capital

Capital surplus

19,168-5,9740-1,083

12,110Capital surplus

158,282-918－-15,483

141,880

Treasury shares-10,351－－－-10,351

Total
accumulated
othercomprehensive
income-1,5307,609－-1,7884,290

Retainedearnings

Shareacquisitionrights183,048716

0-18,356

165,409

0

－

-0

－

－

29

16,19

Retainedearnings
Treasuryshares

13,16

Other
componentsof equity
Total equity
attributable toowners ofparent21,317-7,969－-1,283

12,064

Noncontrollinginterests

Total net assets

204,367-7,252－-19,640

177,474

Total equity

Total liabilities andnet assets

425,110

4,087－

39,052

468,251

Total liabilities
and equity

Non-controllinginterests

30

Reconciliations of equity as of transition date (September 30, 2022)(In Millions of Yen)Line items underJapanese GAAP

Japanese
GAAP

Impact ofchange inaccounting
periodReclassification

Differences inrecognition
andmeasurement

IFRS

Notes

Line items underJapanese IFRSs

AssetsAssetsCurrent assets

Current assets

Cash and deposits

91,808-2,055-1,167－

88,585

1

Cash and cash
equivalents

Notes andaccounts
receivable - trade153,535

2,123

1,579

-0

157,2383,4Trade and otherreceivables

Contract assets

24,148

1,686-4,459－21,375Work in process

919

－

-919

－

－

2

－

－

5,114

625

5,739

1,3

Other financial
assets16,873260-5,182-1,583

10,367

2

Other current
assets

-625

48

576

－

－

4

286,660

2,064-4,459-959

283,306

Other
Allowance for
doubtful accounts
Total current
assetsContract assets

Total current
assetsNon-current
assetsNon-current assets

Property, plantand equipment

Intangible assets

Trade and otherreceivables

－

－

333

－

333

－

－

4,459

－

4,459

Contract assets

14,383

1,405-6,621822

9,989

Property, plantand equipment

－

－

6,621

22,25528,87617

Right-of-use
assets100,486

1,161-36,421

3,583

68,81015

Goodwill－－

36,421

1,486

37,907

14

Intangible assets
Investments
accounted forusing equity
method

4,6

－

－

5,262

80

5,342

5

Investment
securities

10,348

237

5,446

5,124

21,156

5,6,16

Other financial
assetsDeferred tax
assets10,105

59

－

8,720

18,884

12

Deferred tax
assetsOther

13,054-1,630-11,101

-53

269

6

Allowance for
doubtful accounts-1,702

1,642

60

－

－

4

Total noncurrent assets

146,674

2,877

4,459

42,019196,030

433,335

4,941－

41,060479,336

Total assets

31

Total noncurrent assets
Total assets

Liabilities andequityLiabilities

Liabilities

Current liabilities

Current liabilities

Short-termborrowings

Bonds andborrowings

442

11

23,456607

24,517

7

Current portion ofbonds payable

10,000－-10,000－－

7

Current portion of
long-term
borrowings

11,813

1,642-13,456

－

－

7

－

－

2,070

11,485

13,556

9,17

Lease liabilities

Accounts payable- trade639

282,092

082,7338,9Trade and otherpayablesAccounts payable- other

82,762329-83,092

－

－

8

－

－

435

－

435

8

11,796

-173

－

-51

11,571

804

2

－

－

806

－

－

5,907

－

5,907

Accruedconsumption
taxes

16,062-280-15,782－－

9

Provision forbonuses

15,008376-15,385

－

－

9

19

－

-19

－

－

9

Other

24,643442

23,77336,74585,604

Total current
liabilities

173,993

2,353－

48,786225,133

Income taxes
payableOther provisions

Provision forbonuses for
directors (andother officers)

Income taxes
payableProvisions
Contract
liabilities

8,9,18Long-term
borrowings
Lease liabilities

Asset retirement
obligation
Deferred tax
liabilities
Retirement
benefit liability

Other current
liabilities
Total current
liabilities

Non-current
liabilities
Bonds payable

Other financial
liabilities

Non-current
liabilities
Bonds andborrowings－－

31,514－31,51431,325

188-31,514

－

－

2,503

1,166

－

9,966

13,635

17

Lease liabilities

－

－

13

839

853

8,11

Other financial
liabilities

4,565

12

0

－

4,578

10

Provisions

4,006

155

－

-368

3,792

12

500

23

-524

－

－

11

32

Provision forshare awards

939

1

-940

－

－

11

Provision forshare awards for
directors (andother officers)

959

0

-959

－

－

11

Other provisions

46

－

-46

－

－

11

1,362

7

2,456

-648

3,178

46,209

1,554

－

9,788

57,552

220,202

3,908－

58,575

282,685

Other
Total noncurrent
liabilities
Total liabilities

11,18

Other noncurrent liabilities
Total noncurrent
liabilities
Total liabilities

Net assets

EquityShare capital

17,479－－－17,479

Share capital

Capital surplus

13,533-72

0-1,673

11,788

Capital surplus

Retained earnings

171,968-543－-12,404

159,021

Treasury shares-11,530－－

0-11,531

Total accumulated
othercomprehensive
income

7,637

1,480

－

-2,0507,067

199,087864

0-16,128

183,824

0

－

-0

－

－

14,044168－-1,386

12,826

Non-controllinginterests

Total net assets

213,133

1,033－-17,515

196,651

Total equity

Total liabilities andnet assets

433,335

4,941－

41,060479,336

Total liabilities andequityShare acquisitionrightsNon-controllinginterests

33

16,19

Retainedearnings
Treasury shares

13,16

Other
components ofequityTotal equity
attributable toowners of parent

Reconciliations of equity as of transition date (March 31, 2023)(In Millions of Yen)Line items underJapanese GAAP

Japanese
GAAP

Impact ofchange inaccounting
periodReclassification

Differences inrecognition
andmeasurement

IFRS

Notes

Line items underJapanese IFRSs

AssetsAssetsCurrent assets

Current assets

Cash and deposits

99,757

1,553

-77

－

101,233

1

Cash and cash
equivalents

Notes and accounts
receivable - trade

160,980

-9

1,881

－

162,8533,4Trade and otherreceivables

Contract assets

25,951

1,519-3,937－23,533Work in process

384

－

-384

－

－

2

－

－

78

－

78

1,3

Other financial assets

17,780-351-2,124-1,556

13,748

2

Other current assets

-572

-53

626

－

－

4

304,281

2,658-3,937-1,556

301,445

Other
Allowance for
doubtful accounts
Total current assets

Contract assets

Total current
assetsNon-current assets

Non-current assets
Trade and otherreceivables

－

－

309

－

309

－

－

3,937

－

3,937

Contract assets

14,849-319-5,803503

9,229

Property, plant andequipment

－

－

5,803

22,364

28,16817

Right-of-use assets

86,320-845-33,632

6,623

58,465

15

Goodwill－－

33,632

1,617

35,25014Intangible assets

－

－

4,542

187

4,729

5

Investments
accounted for using
equity method

Investment securities

12,058

-121

5,681

5,846

23,464

5,6,16

Other financial assets

Deferred tax assets

13,741

33

－

9,634

23,410

12

Deferred tax assets

Other

12,535-10-12,162

-44

317

6

Other non-current
assetsAllowance for
doubtful accounts-1,627

-2

1,629

－

－

4

137,877-1,266

3,937

46,734

187,283

442,159

1,392－

45,177

488,728

Property, plant andequipment

Intangible assets

Total non-current
assetsTotal assets

4,6

Total non-current
assetsTotal assets
Liabilities and equity

Liabilities

Liabilities

Current liabilities

Current liabilities

Short-term borrowings

11,361-247

10,060－21,174

7

Current portion ofbonds payable

10,000－-10,000

－

－

7

34

Bonds andborrowings

Current portion of
long-term borrowings

60

0

-60

－

－

－

－

1,937

12,06814,005

9,17

Accounts payable trade

602

-15

93,101093,6889Accounts payable other

91,934

3,233-95,167

－

－

8

－

－

989

－

989

8

Income taxes payable

11,418-883－－

10,535

Income taxes
payableOther provisions

1,535

52

－

－

1,588

Provisions

－

－

6,596

－

6,596

Contract liabilities

Accrued consumption
taxes

18,967-40-18,927－－

9

Provision for bonuses

19,868-866-19,001－－

9

Provision for bonuses
for directors (andother officers)

129

91

-221

－

－

9

Other

29,541

1,123

30,69339,614

100,972

Total current liabilities

195,4212,448－

51,682249,552

7

8,9,18

Lease liabilities
Trade and otherpayablesOther financial
liabilities

Other current liabilities
Total current
liabilities

Non-current liabilities

Non-current liabilities
Bonds andborrowings－－

30,117－30,117Long-term borrowings

30,1160-30,117－－

Lease liabilities

3,421

-175

－

9,567

12,813

17

Lease liabilities

－

－

15

793

809

8,11

Other financial
liabilities

Asset retirement
obligation

4,659

1

－

－

4,660

10

Provisions

Deferred tax liabilities

4,018

348

－

27

4,394

12

Deferred tax
liabilities

Retirement benefit
liability

311

22

-333

－

－

11

Provision for shareawards1,085

0-1,086－－

11

Provision for shareawards for directors(and other officers)

1,104

0

-1,104

－

－

11

45

－

-45

－

－

11

1,242

24

2,553

-969

2,850

46,005

223

－

9,418

55,647

241,426

2,671－

61,100305,199

Bonds payable

Other provisions
Other
Total non-current
liabilities
Total liabilities

11,18

Other non-current
liabilities
Total non-current
liabilities
Total liabilities

Net assets

EquityShare capital

17,479－－－17,479

Share capital

Capital surplus

13,455-17

0-1,167

12,272

Capital surplus

Retained earnings

168,890-2,481－-11,481

154,926

35

19

Retained earnings

-19,459－－

0-19,459

5,150

1,141

－

-1,8404,452

185,517-1,3570-14,489

169,670

0

－

-0

－

－

15,21477－-1,433

13,859Total net assets

200,732-1,279－-15,923

183,529

Total equity

Total liabilities and net
assets442,159

1,392－

45,177

488,728

Total liabilities andequityTreasury shares
Total accumulated
other comprehensive
incomeShare acquisitionrightsNon-controllinginterests

36

Treasury shares

13,16

Other componentsof equity
Total equity
attributable toowners of parent

Non-controllinginterests

Notes on reconciliation of capital(Reclassification)(1) Cash and deposits
Time deposits whose deposit term is more than three months, which were included
in cash and deposits under the Japanese GAAP, are presented by including themin "Other financial assets" under IFRS.

(2) Work in process"Work in process," which was listed separately under the Japanese GAAP, ispresented by including it in "Other current assets" under IFRS.

(3) Current assets (Other)
Other accounts receivable and advances paid, which were included in "Other"under "Current assets" under the Japanese GAAP, are presented by including themin "Trade and other receivables" under IFRS, and deposits paid, advance payments,and short-term loans receivable are presented by including them in "Other financial
assets" under current assets under IFRS.

(4) Allowance for doubtful accounts"Allowance for doubtful accounts," which was listed separately under "Current
assets" under the Japanese GAAP, has been reclassified under IFRS so that it ispresented as a net amount through direct deduction from "Trade and otherreceivables" under current assets. "Allowance for doubtful accounts" under"Investment and other assets" has also been reclassified to be presented as a net
amount through direct deduction from "Trade and other receivables" under noncurrent assets.

(5) Investment securities"Investments accounted for using equity method," which were included
in "Investment securities" under the Japanese GAAP, are listed separately under
IFRS while other securities are presented by including them in "Other financial
assets" under non-current assets.

(6) Investments and other assets (others)
Long-term accounts receivable, which were included in "Other" under investments
and other assets under the Japanese GAAP, are included in ”Trade and otherreceivables” under non-current assets under IFRS while long-term loans receivable,
etc. are presented by including them in "Other financial assets" under non-current
assets and long-term prepaid expense, etc. is presented by including it in "Other
non-current assets."(7) Bonds and borrowings

37

"Current portion of bonds payable" and "Current portion of long-term borrowings,"
which were listed separately under the Japanese GAAP, are reclassified as "Bonds
and borrowings" under current liabilities under IFRS.

(8) Accounts payable - other
Salaries payable, etc., which were included in "Accounts payable - other" under theJapanese GAAP, are presented by including them in "Trade and other payables" under
IFRS while accounts payable – facilities are presented by including them in "Other
financial liabilities" under current liabilities.

(9) Current liabilities (Other)
Lease liabilities, which were included in "Other" under current liabilities under theJapanese GAAP, are listed separately as current liabilities under IFRS.
Further, guarantee deposits received are included in "Trade and other payables"
under current liabilities, refund liability is included in "Other financial liabilities" undercurrent liabilities, and deposits received are included in "Other current liabilities.""Accrued consumption taxes," "Provision for bonuses," and "Provision for bonuses
for directors (and other officers)," which were listed separately under the Japanese
GAAP, are presented by including them in "Other current liabilities" under IFRS.

(10) Asset retirement obligations"Asset retirement obligations," which were listed separately as an item under noncurrent liabilities under the Japanese GAAP, are included in "Provisions" under noncurrent liabilities under IFRS.

(11) Non-current liabilities (Other)
Guarantee deposits received, which were included in "Other" under non-current
liabilities under the Japanese GAAP, are included in "Other financial liabilities" under
non-current liabilities under IFRS.
The provision for directors' retirement benefits, which was included in "Other
provisions" under non-current liabilities under the Japanese GAAP, and "Retirement
benefit liability," "Provision for share awards," and "Provision for share awards for
directors (and other officers)," which were listed separately under the Japanese
GAAP, are presented by including them in "Other non-current liabilities" under IFRS.

(Recognition and measurement differences)(12) Deferred tax assets and deferred tax liabilities
Reflecting the application of IFRS, the collectability of all deferred tax assets has
been reconsidered. Further, deferred tax assets and deferred tax liabilities have beenrecorded to reflect temporary differences that have arisen due to reconciliations
associated with the transition from Japanese GAAP to IFRS.

(13) Transfer of cumulative translation differences related to foreign subsidiaries

38

At the time of the initial adoption, the Company selected the exemption provided in
IFRS 1 and transferred all of the cumulative translation differences that existed at
the date of transition to retained earnings.

(14) Intangible assets with an indefinite useful life
Among intangible assets that were amortized under the Japanese GAAP, theamortization of those classified as intangible assets with an indefinite useful life
under IFRS has been cancelled retrospectively to the period back to the time ofacquisition.

(15) Goodwill
Under the Japanese GAAP, goodwill was to be amortized evenly over the periods inwhich the effects of the goodwill were expected to be produced. Under IFRS, goodwill
is not amortized.

(16) Financial assets measured at fair value through other comprehensive income
Impairment losses that were recognized in past fiscal years in relation to financial
assets measured at fair value through other comprehensive income have beentransferred from retained earnings to other components of equity. Further, whileunlisted shares without market prices and money invested were evaluated with thecost method under the Japanese GAAP, they are measured based on fair value under
IFRS.

(17）Lease
Under the Japanese GAAP, lessee's leases were classified into finance leases andoperating leases, and the method for regular lease transactions was applied to theaccounting for operating leases. Under IFRS, lessee's leases are not separated
into finance leases and operating leases, so "right-of-use assets" and "leaseliabilities" are recorded for all lease transactions, in principle.

(18) Accrued paid leave
Accrued paid leave, which was not recorded under the Japanese GAAP, is recorded
and presented by including it in "Other current liabilities" and "Other non-current
liabilities."39(19) Reconciliation of retained earnings(In Millions of Yen)
Date of Transition(April 1, 2022)

As of Sep. 30,
2022

As of March 31,
2023

Deferred tax assets and deferred
tax liabilities

9,828

9,910

11,133

Transfer of cumulative translationdifferences related to foreignsubsidiaries

5,090

5,090

5,090

Intangible assets with anindefinite useful life

2,354

2,445

2,536

－

3,573

6,675

1,402

1,445

1,465

47

-139

-206

-35,894-36,745-39,614

1,686

2,015

1,435

-15,483-12,404-11,481Goodwill
Financial assets measured at fairvalue through othercomprehensive income
Leasing
Accrued paid leave
Other
Total

40

Reconciliations of profits/losses and comprehensive income for the six months ended
September 30, 2022
(In Millions ofYen)

Account underJapanese GAAP

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Presentation
under IFRSNet sales

586,749

20,506－－607,256

Cost of sales

449,733

17,827-48512468,025

Gross profit

137,016

2,679

48

-512

139,231

Gross profit

2,3,4,6

Selling, generalandadministrative
expenses

Selling, general andadministrative
expenses

Revenue4

Cost of sales

106,299

2,090

-332

-2,984

105,073

－

－

150

－

150

1

Other income

－

－

240

-24

215

1

Other expenses

30,716

588

290

2,495

34,092Non-operating income

912

-162

-749

－

－

1

Non-operating
expenses

270

132

-402

－

－

1

Ordinary profit

31,358294-31,652－－

Extraordinary income

251

12

-264

－

－

1

Extraordinary loss

145

0

-145

－

－

1

－

－

457

-189

267

1

Finance income

－

－

268

162

431

1,4

Finance costs

1

Share of profit
of investments
accounted forusing equity
methodOperating profit

Operating profit

－

－

-12

76

64

Profit before incometaxes

31,465

306

－

2,220

33,992

Income taxes - current

11,208

225

190

-633

10,992

5

322

-131

-190

－

－

5

19,934

211

－

2,853

23,000

Income taxes deferred
Net profit

Profit before tax
Income tax
expenseProfitOther
comprehensive
incomeOther comprehensive
incomeItems that will
not bereclassified to
profit or loss

41

(In Millions ofYen)

Account underJapanese GAAP

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Presentation
under IFRSValuation difference
on available-for-salesecurities

-199

－

－

-104

-303

4

Financialassetsmeasured atfair value
through othercomprehensiv
e income

Retirement benefit
adjustments

－

－

－

3

3

6

Remeasureme
nts of defined
benefit plans
Items that may
be reclassified to
profit or loss

Deferred gains orlosses on hedges
Foreign currencytranslation
adjustment

Share of othercomprehensive
income of entities
accounted for using
equity method

－

9,728

141

－

-6,696

104

－

－

－

16

8

－

Cash flow
hedges

16

3,040

245

7

Exchangedifferences ontranslation offoreign
operations
Share of othercomprehensiv
e income ofinvestments
accounted forusing equity
methodTotal othercomprehensive income

9,670-6,591

－

-77

3,002

Other
comprehensive
income, net oftax

Comprehensive income

29,605-6,379－2,776

26,002Comprehensive
income42

Reconciliations of profits/losses and comprehensive income for the three months ended
September 30, 2022
(In Millions ofYen)

Account underJapanese GAAP

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Presentation
under IFRSNet sales

302,649

4,139

－

－

306,788

Cost of sales

234,335

3,091

-31

-297

237,097

Gross profit

68,313

1,048

31

297

69,691Gross profit

2,3,4,6

Selling, generalandadministrative
expenses

Selling, general andadministrative
expenses

Revenue4

Cost of sales

54,092676-161-1,64752,960

－

－

87

－

87

1

Other income

－

－

186

-24

162

1

Other expenses

14,221

371

94

1,969

16,655Non-operating income

61

222

-284

－

－

1

Non-operating
expenses

169

93

-263

－

－

1

Ordinary profit

14,114499-14,613

－

－

115

17

-133

－

－

1

2

0

-2

－

－

1

－

－

284

-181

103

1

Finance income

－

－

205

91

297

1,4

Finance costs

1

Share of profit
of investments
accounted forusing equity
methodOperating profit

Extraordinary income
Extraordinary loss

Operating profit

－

－

-20

41

21

Profit before incometaxes

14,227

516

－

1,738

16,482

Income taxes - current

7,867

-638

-1,764

-340

5,123

5

Income taxes deferred-2,599

834

1,764

－

－

5

Net profit

8,958

321

－

2,078

11,359Profit before tax
Income tax
expenseProfitOther
comprehensive
incomeOther comprehensive
incomeItems that will
not bereclassified to
profit or loss

43

(In Millions ofYen)

Account underJapanese GAAP

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Presentation
under IFRSValuation difference
on available-for-salesecurities

-199

－

－

194

-5

4

Financialassetsmeasured atfair value
through othercomprehensiv
e income

Retirement benefit
adjustments

－

－

－

3

3

6

Remeasureme
nts of defined
benefit plans
Items that may
be reclassified to
profit or loss

Deferred gains orlosses on hedges
Foreign currencytranslation
adjustment

Share of othercomprehensive
income of entities
accounted for using
equity method

－

2,452

48

－

-1,886

58

－

－

－

17

-2

－

17

Cash flow
hedges564

Exchangedifferences ontranslation offoreign
operations

106

7

Share of othercomprehensiv
e income ofinvestments
accounted forusing equity
methodTotal othercomprehensive income

2,301

1,829

－

212

684

Other
comprehensive
income, net oftax

Comprehensive income

11,260-1,506－2,290

12,044Comprehensive
income44

Reconciliations of profits/losses and comprehensive income for the fiscal year ended
March 31, 2023
(In Millions ofYen)

Account underJapanese GAAPNet sales

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Presentation
under IFRSRevenue

1,223,967

18,643－－

1,242,611

Cost of sales

941,323

17,371

-897

2,953

960,751

Gross profit

282,643

1,272

897

-2,953281,859

Selling,(2)(3) general and
225,479(4)(6) administrative
expenses

Selling, general andadministrative
expenses(4)

Gross profit

229,581

2,668

-655

-6,115

－

－

262

－

262

－

－

13,388499

13,888Operating profit

53,061-1,396-11,573

2,661

42,754Non-operating
income

2,261

-108

-2,152－－(1)

Non-operating
expenses

1,630

205

-1,835－－(1)

Ordinary profit

53,693-1,710-51,982－－

Extraordinary
income

290

-26

-263

－

－

(1)

13,267

212-13,479

－

－

(1)

－

－

598

-28

570

(1)

－

－

1,235

334

1,569

Extraordinary loss

Cost of sales(1)

Other income

(1)

Other
expenses
OperatingprofitFinance income(1)(4) Finance costs
(1)

－

－

-689

183

-505

Share of profit
of investments
accounted forusing equity
methodProfit before income
taxes

40,716-1,950－2,482

41,249Profit before
tax

Income taxes current

20,121278-2,719-1,20816,471(5)

Income taxes deferred-2,241

-478

2,719

－

－

(5)

Net profit

22,835-1,750－3,691

24,77745

Income tax
expenseProfit(In Millions ofYen)

Account underJapanese GAAP

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Other
comprehensive
incomePresentation
under IFRS

Other
comprehensive
incomeItems that will
not bereclassified to
profit or loss

Valuationdifference on
available-for-salesecurities

Retirement benefit
adjustments

12

－

－

－

－

－

158

31

170

31

(4)

Financialassetsmeasured atfair value
throughothercomprehensi
ve income(6)

Remeasurements ofdefinedbenefit plans
Items that may
be reclassified
to profit or loss

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Share of othercomprehensive
income of entities
accounted forusing equity
method

－

6,857

281

Total othercomprehensive
income7,151

Comprehensive
income29,987－-6,947-79-7,027-8,776

－

－

－

3

67

－

Cash flow
hedges

3

-22

(7)

Exchangedifferencesontranslation offoreign
operations

201

Share ofothercomprehensi
ve income ofinvestments
accounted
for usingequitymethod

－

260

384

Other
comprehensive
income, net of
tax

－

3,951

25,161

Comprehensive
income46

Notes on reconciliations of profits/losses and comprehensive income(1) Reconciliation of presented items
Of the items that were included in "non-operating income," "non-operating
expenses," "Extraordinary income," and "Extraordinary losses" under the Japanese
GAAP, finance-related items are recorded as "Finance income" or "Finance costs" under
IFRS, and the other items are reclassified as "Other income," "Other expenses," or"Share of profit of investments accounted for using equity method" under IFRS.

(2) Reconciliation of recorded amount of goodwill
Goodwill is amortized under the Japanese GAAP but not amortized under IFRS.
Accordingly, amortization of goodwill has been discontinued since the date oftransition.

(3）Unused paid leave
Unused paid leave, which was not recorded under the Japanese GAAP, is recognized
as personnel expenses under IFRS.

(4) Reconciliation of finance income and costs
Under the Japanese GAAP, (loss) gain on sale of investment securities or impairment
losses was profit or loss. Under IFRS, concerning equity instruments designated to bemeasured at fair value through other comprehensive income, fluctuation of fair value isrecognized as other comprehensive income and is transferred to retained earnings in
the case of derecognition. Further, while lease payments related to operating leases
were recorded in "Cost of sales" and "Selling, general and administrative expenses"
under the Japanese GAAP, IFRS requires recognition of lease liabilities for all leases, inprinciple, and interest costs are recorded in "Finance costs."(5) Income tax expense
Under the Japanese GAAP, "Income taxes - current" and "Income taxes - deferred"
were presented separately. Under IFRS, they are collectively presented as "Income tax
expense." In addition, reflecting the application of IFRS, collectability of all deferred
tax assets has been reconsidered.

(6) Remeasurements of defined benefit plans
Under the Japanese GAAP, actuarial gains/losses on retirement benefit obligations
and past service cost were recognized as other comprehensive income when suchgains/losses or cost were generated and collectively recorded as expenses for the fiscal
year when they were generated. Under IFRS, remeasurements of defined benefit plans
are recognized as other comprehensive income and past service cost is recognized as
profit or loss when it is generated.

47

(7) Exchange differences on translation of foreign operations
At the time of the initial adoption, the Company selected the exemption provided in
IFRS 1 and transferred all of the cumulative translation differences that existed at thedate of transition to retained earnings.

Reconciliation of cash flows
Under the Japanese GAAP, lease payments related to operating leases were classified
as cash flows from operating activities. IFRS requires recognition of lease liabilities for allleases, in principle, and expenditure for the repayment of lease liabilities is classified
as cash flows from financing activities.

48