Fiscal Year Ended March 31, 2024

Financial Results
Our Business Plan and Growth Potential

May 9, 2024

United, Inc.
(TSE Growth: 2497)© UNITED, Inc.

1

Agenda

1 FY03/24 Financial Highlights

p.3

2 FY03/24 Business Overview

p.8

3 FY03/25 Outlook

p.13

4 Appendix

p.39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time thematerial was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names aretrademarks or registered trademarks of the respective companies.

2

Business Segments and Their Components

Core Businesses

Business

Earnings Drivers

Investment business

Education business

Personnel Matchingbusiness

Ad Tech/Content business

Provision of capital andhands-on support to startups

Online education service thatallows students to gain digitalskillsMatching of digital talent (including
freelancers, side-job workers, andthose seeking career changes) in linewith the needs of startups

Development and operation ofadvertising products,
media, and apps

Kasooku inc.

LIBASE Inc.

UNITED Marketing Technologies
Inc.

Fogg, inc.

Innoop Inc.

ONX inc.

Brewus, Inc.

International Sports Marketing
Co., Ltd.

Components
Investment Division

KiRAMEX Co.

3

FY03/24 Financial Highlights
Sales and profit fell YoY because we reduced the sale of securities in the Investment businessand because ad placements by major advertisers declined in the Ad Technology business.

(-4% YoY)
million
12,573
Consolidated
Operating Performance
Operating profit¥4,859 million (-17% YoY)
Sales

¥

Investment

Sales
Operating profit¥6,635 million (-6% YoY)
¥5,924 million (-11% YoY)

p.8 for details

Education

Sales
Operating profit¥1,249 million (-0.2% YoY)-¥100 million (+¥11 million YoY)

p.9 for details

Personnel Matching

Sales
Operating profit¥517 million (+7% YoY)-¥421 million (-¥74 million YoY)

p.10 for details

Sales
Operating profit¥4,188 million (-5% YoY)¥432 million (-24% YoY)

p.11 for details

Core Businesses

Earnings Drivers
Ad Tech/Content

4FY03/24 Results vs. Forecast
Net income fell below forecast, more so than sales, operating profit, and ordinary profit. This is due to an extraordinary
loss of 160 million yen associated with a goodwill impairment of a consolidated subsidiary.*

Forecast

ActualVs. Forecast

YoY

Sales

13,150 million yen

12,573 million yen

-4.4%

-4.3%

Operating profit

5,000 million yen

4,859 million yen-2.8%-16.6%

Ordinary profit

5,000 million yen

4,829 million yen-3.4%-17.5%Net income*

2,650 million yen

2,366 million yen-10.7%-42.8%

EPS

67.50 yen

60.44 yen

-10.5%-42.3%* Refers to net income attributable to owners of parent*Innoop Inc.

5

Dividend for FY03/24
Based on the new dividend policy* 1, we plan to pay a year-end dividend of 24 yen per share, including acommemorative dividend for our 10th anniversary.
Details of Annual Dividends
FY03/23*2

FY03/24
InterimYear-End*2

InterimYear-End

Record date

September 30, 2023

March 31, 2024

September 30, 2022

March 31, 2023

Dividend per share
(1H)

¥24.0

¥24.0

¥10.0

¥11.5

¥11.5

¥11.5

(DOE 4%)(DOE 4%)

¥10.0

¥11.5

¥12.5

¥12.5

-

-

(1) Ordinary dividend
portion(2) Commemorative
dividend portion

DOE (annual)

9.0%

4.6%

Payout ratio(Annual)

81.0%

20.5%

*1 In FY03/24, we changed our dividend policy from the previous “dividend payout ratio of 20%” to “DOE of 4% or dividend payout ratio of 50%, whichever amount is larger.”*2 To be decided at the 27th annual general meeting of shareholders to be held in late June 2024.
*3 The figures factor in the stock split.

6

Agenda

1 FY03/24 Financial Highlights

p.3

2 FY03/24 Business Overview

p.8

3 FY03/25 Outlook

p.13

4 Appendix

p.39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time thematerial was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names aretrademarks or registered trademarks of the respective companies.

7

Investment Business: Sales and Operating Profit
Sales and profit fell because we reduced the sale of securities from a year earlier.

Sales Trend (Millions of yen)

Operating Profit Trend (Millions of yen)

-6％ YoY-11％ YoY

7,028
6,635

6,620
5,731

5,924

5,813

3,206
3,258
2,066
2,110

1,261

1,398

277

85
435

261
FY03/2323.3

FY03/24
24.3

Q1
1Q

Q2
2Q

Q3
3Q

FY03/23

Q4
4Q

Q1
1Q

Q2
2Q

-132

175 210Q33Q

FY03/24Q44Q

48

FY03/2323.3

FY03/24
24.3

Q1

Q2

Q3

FY03/23

Q4

Q1

Q2

Q3

Q4

FY03/24

8

Education Business: Sales and Operating Profit
Sales showed little changed YoY.
Operating loss narrowed YoY as development costs declined.

Sales Trend (Millions of yen)

Operating Profit Trend (Millions of yen)

-0.2% YoY

1,252

1,249

364

66

341
318

303

336

316

265

+¥11 million
YoY

8

255
-11

-17
-34
-56

-58

-112

FY03/2323.3

FY03/24
24.3

Q1
1Q

Q2
2Q

Q3
3Q

FY03/23

Q4
4Q

Q1
1Q

Q2
2Q

Q3
3Q

FY03/24Q4
4Q

FY03/23

-100

-109

FY03/24

Q1

Q2

Q3

FY03/23

Q4

Q1

Q2

Q3

Q4

FY03/249

Personnel Matching Business: Sales and Operating Profit
Sales increased YoY owing to the consolidation of ONX inc.
Operating loss widened due to upfront investments centered on Kasooku inc. for medium-term growth.

Sales Trend (Millions of yen)

Operating Profit Trend (Millions of yen)

+7% YoY

146

142

517
481

139

129 128123-¥74 million
YoY

113

76
-49

-62

-70
-84

-94
-346

FY03/2323.3

FY03/24
24.3

Q1
1Q

Q2
2Q

Q3
3Q

FY03/23

Q4
4Q

Q1
1Q

Q2
2Q

Q3 4Q
Q4
3Q

FY03/24

FY03/23-131 -137 -135-421

FY03/24

Q1

Q2

Q3

FY03/23

Q4

Q1

Q2

Q3

Q4

FY03/24

10

Ad Tech/Content Business: Sales and Operating Profit
In the Content business, sales and profit increased YoY owing to growth at Fogg, inc.
In the Ad Tech business,* sales and profit fell YoY along with a decline in ad placements by major advertisers.

Sales Trend (Millions of yen)

Operating Profit Trend (Millions of yen)

Ad Technology
Content-5% YoY-24% YoY
195

4,392
4,188

1,079

168

571

1,155

1,113

1,072 1,058 1,097

1,043

140

959

121
112

432

112
82
68

FY03/2323

FY03/24
24

Q1
1Q Q2
2Q

Q3
3Q

FY03/23*UNITED Marketing Technologies, Inc.

Q4
4Q

Q1
1Q

Q2
2Q

Q3 4Q
Q4
3Q

FY03/24

2023年3月期
FY03/232024年3月期
FY03/24

Q1

Q2

Q3

FY03/23

Q4

Q1

Q2

Q3

Q4

FY03/24

11

Agenda

1 FY03/24 Financial Highlights

p.3

2 FY03/24 Business Overview

p.8

3 FY03/25 Outlook

p.13

4 Appendix

p.39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time thematerial was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names aretrademarks or registered trademarks of the respective companies.

12

Overall Strategy for FY03/25

Segment

StrategyCore Businesses
Earnings drivers

Investment Business

Expand the scale of investment and strengthen investment execution and hands-on
support as lead investor.

Education Business

Focus on data and AI.
Aim to improve earnings and return to profitability by streamlining operations.

Personnel Matching Business

Focus on personnel referral (of full-time employees). Continue to make upfront
investments for medium-term growth.

Ad Tech/Content Business

Target continuous profit generation, with each company implementing its own
strategy

13

FY03/25 Forecast
Negative YoY growth is expected following a decline in the sale of securities in the Investment business.

Forecast

ActualYoY

Sales

9,400 million yen – 10,300 million yen

12,573 million yen-25.2% – -18.1%

Operating profit

2,000 million yen – 2,500 million yen

4,859 million yen-58.8% – -48.6%

Ordinary profit

2,000 million yen – 2,500 million yen

4,829 million yen-58.6% – -48.2%

Net income*

1,150 million yen – 1,500 million yen

2,366 million yen-51.4% – -36.6%

EPS

29.00 yen – 38.50 yen

60.44 yen

-52.0% – -36.3%* Refers to net income attributable to owners of parent

14

Dividend Forecast for FY03/25
We will improve capital efficiency by reducing shareholders' equity, secure funds for business operations, including
funds for growth investments, and continue to enhance shareholder returns. Thus, we will pay a special dividend of 25
yen per share. The total dividend per share is expected to be 48 yen.
Dividend per Share Forecast
Dividend
Forecast

Previous Fiscal(FY03/25)(FY03/24)

Year*1YoY

Ordinary
dividend¥23¥23(DOE4%)(DOE4%)

Commemorative
dividend

-

¥25

-¥25

Special dividend

¥25

-

+¥25

Total

¥48

¥48

-

DOE

9.0%

9.4%

Payout ratio(Including special dividend)

124.7~165.5%(Including special dividend)*1 Decided at the 26th Annual General Meeting of Shareholders to be held in late June 2023.

(Including commemorative
dividend)

79.4%(Including commemorative
dividend)--0.4pt+45.34 – +86.1pt
15

Investment Business16

Significance of Pursuing the Investment BusinessWe provide funds and know-how toentrepreneurs with willpower in order toraise the success rate of startups.
⚫ Fostering startups is vital to the Japanese
economy.

⚫ United will raise the success rate of startups
and accelerate their growth by providing
funds and support.

17

Investment Business: Market Environment
The Japanese government has set forth “the enhancement of support toward startups” as a major agenda in its socalled Big-Boned Policy andformulated the Startup Development Five-Year Plan, which targets ¥10 trillion in startup
investments by fiscal 2027. Seeing this as a chance to expand investment opportunities, we are executing investments
at an accelerated pace.
Three pillars of the Startup Development Five-Year Plan

Amount invested in domestic startups/government target

10,000(Billions of yen)

Pillar 1

Develop human resources and put in place networks thatenable establishment of startups
Roughly 10-foldincrease

Pillar 2 Strengthen funding for startups and diversify exit strategies

867.6

Pillar 3 Promote open innovation

555.4

2020

Source: Startup Development Five-year Plan (draft) by the Cabinet Secretariat, Government of Japan

945.9

2021

2022

2027
(government target)

Source: Japan Startup Finance 2022, “Amount of Funds Raised by Domestic Startups,” by Uzabase, Inc.
Japan Startup Finance 1H 2023 (Latest Edition) by Uzabase, Inc.

18

Investment Business: Strategy for FY03/25
We will invest in seed-to-early-stage startups by drawing on our two competitive advantages. We plan to invest
approximately 1.5 billion yen*1 this fiscal year. We will strengthen investments and hands-on support as lead investor*2
Competitive Advantages

Number of investment projects, the amount of investment

Number of investment projects (number of investees)

Investments
using own
funds

Investment amount (million yen)

• We can invest with flexibility, without constraint on
the amount of capital provided or the ratio of stakeacquired per project.

1,500• We can invest in business domains that requiretime for growth because, unlike other VC funds,
there is no constraint on the investment period.

1,187

825
750
22

• We have access to a wide range of startups thanks
Reach to a wide
to our track record of numerous investments andrange ofexits, the network we established with venture
startups
capitalists and top management of startups, and ourinvestment in 36 external funds as an LP.

18

FY03/22

FY03/23362
5

FY03/21*1 Equivalent to the scale of a ¥5.5 billion-plus fund (if committed over three years)*2 The largest investor in the investment round18

FY03/24

FY03/25 (Plan)

19

Investment Business: Investment Track Record
As of end-FY3/24, the cumulative investment amount was approximately 7.2 billion yen. The gain on sale, together withunrealized gains, totaled approximately 53.4 billion yen.
Investment Track Record (since January 2013)
Gains on sale of securities(cumulative)

Investment amount(cumulative)

Breakdown of Operational Investment Securities

Unrealized gains on shares
held as of end-March 2024*(Millions of yen)

InvesteeCompanies

3,870

Listed shares• Mercari, Inc.
• Wonder Planet, Inc.
• CyberBuzz, Inc.
• Socialwire Co., Ltd.
• Interworks Confidence Inc.
• Excite Holdings Co., Ltd.

Unlisted
sharesLP
investments

As ofMarch 31, 2024
(amount on BS)

Approx.

¥2.4 bn*

92 companies

Approx.

¥3.8 bn

39 funds

Approx.

¥1.5 bn

49,454
43,17436,58630,14023,364

4,092

FY03/20

4,485

FY03/215,245

FY03/226,089

FY03/237,276

FY03/24*Figures for unlisted shares were calculated based on latest reports from the issuers.

* We have forward contracts for some stocks. Including derivatives in the balance
sheet, the amount was ¥3,669 million as of end-March 2024.
20

Investment Business: New Investee
We made new investments in 13 companies* in Q4 FY03/24

Established

November 2020

Representative

Tomoo Aratsu

Our value Inc.
March 2024

FAcraft Co., Ltd.

Yutaro Kondo

Business

Develops and operates “Re-rent,” which allows renters to reduce
rent payments by renting out their room when they are away

Established

October 2022

EstablishedFebruary 2020

Representative

Kazuki Okimori

Representative

Yo AokiBusiness

Develops facility-maintenance DX solutions for the manufacturingindustry

Business

Provides “Kensetsu PAD” (Construction PAD), cloud-based softwarethat simplifies paperwork in the construction industry

January 2024

KENZO Co., Ltd.
March 2024

Established

November 2019

Established

November 2022

Representative

Noritaka Okabe

Representative

Yuta Tanaka

Business

Develops and operates JPYC, a yen stablecoin

Business

Provides “Taxnap,” an accounting app for freelancers and sole
proprietors

TxTo,Inc.

January 2024

*This is not a complete list.

Representative

Unito, inc.

Operates “PREMIER VALUE Ikkatsu Satei” (bulk assessment) and“PREMIER VALUE shop,” a secondary distribution platform service
for high-end movable assets

JPYC Inc.

January 2024

January 2020

Business

March 2024

corom MusicEntertainment Co., Ltd.

EstablishedFebruary 2024

EstablishedMarch 2014

EstablishedFebruary 2020

Representative

Koichiro Saji

Representative

Homare Kon

Business

Provides “Re:Sense,” spatial acoustic technology

Clepseadra Inc.
Business

Operates “corom,” a micro live space app for artists

January 2024

21

Investment Business: Major Startup Investments
Post IPO

Middle to later stage

Seed to early stage

As of end-April 2024
22

Investment Business: Major Funds We Invest in as LP
We expect to record gains on distribution from the multiple external funds (39 in total) we invest in as an LP. These
funds also serve as our source of new investment projects, as they allow us to reach out to over 1,000 startups.
Major Funds We Invest in as LP

23

Education Business24

Significance of Pursuing the Education BusinessWe provide an environment for growthto people with willpower, and solve shortages ofdigital talent⚫ We provide an environment that fosters wisdom so that
individuals can realize what they aspire with strong will
⚫ We create a venue where individuals can flourish, thereby
creating opportunities for them to achieve continual growth25

Education Business: Market Environment
In 2030, the pool of digital talent in Japan will be short by about 800 thousand people.
With the AI market expanding, the need to foster digital talent will rise.

Increasing shortage of digital talent

Digital talent in Japan

Outlook on the AI systems market in Japan

Shortage of digital talent in Japan(10,000 people)

1,103.4
493.0(Billions of yen)

Roughly 3-foldincrease

79
41
388.3

106

2020

113

2030
(Projection)

Source: 2008 Survey on Infrastructure Development and IT Personnel Supply and Demand related to Japan’s Data-driven
Society, a report by Mizuho Information & Research Institute, Inc.

2022

2027
(Projection)

Source: Japan Artificial Intelligence Systems Forecast, 2023–2027 by IDC Japan
26

Education Business: Service Overview & Business Model
We offer online education and practical work opportunities to solve digital talent shortages.

Service Overview

Business Model

Online programming school for individuals andcorporations

TechAcademy IT Training

Online tutoring

TechAcademy/
Yahoo! TechAcademy

IT Training
Online training for corporations
Online training for non-engineers and engineers¥

Tuition fees

Online tutoring
Individuals
aspiring tobecome digitalprofessionals¥

Tuition fees
Recruitment support

Worker referral¥

Companies
aiming for
growththrough digitaltechnology

Referral fees

(LINE Yahoo Tech Academy)Service that allows students to acquire practicalskills based on Yahoo's expertise27

Education Business: Competitive Advantage

1. Fully online

2. High quality mentors
No need to physically attend classes;
Courses are available 24 hours a day.

3. Improved proficiency and retention through mentoringHigh education quality is achieved through regular mentoring anddaily Slack support from active engineers.

Online mentoring twice aweek

Daily Slack support from
3pm to 11pm

Approximately 1,000 highly skilled mentors are available to instruct
students. They have passed the selection process with anacceptance rate of around 10% based on their technical andcommunication skills.

4. Acquisition of practical skills
Students can acquire hands-on skills by working on real-world
projects with mentors after graduation.

Tech Academy
graduates

Mentors28

Education Business: Strategy for FY03/25
We will focus on LINE Yahoo TechAcademy,* and data and AI, to improve earnings and return to profitability.

Line Yahoo TechAcademy

Data and AI

First Prompt Engineering Course

LLM Application Development Course

Students gain practical skills that are based on
LINE Yahoo’s expertise.

Students gain the skills to utilize AI in
actual work.

* Taking advantage of the practical technologies of LINE Yahoo, the academy enables students without any programming experience to be work-ready as a web engineer in just four months.
Also supports the students’ career-change activities.
LINE Yahoo TechAcademy was chosen for the Reskilling-based Career Development Support Program led by the Ministry of Economy, Trade and Industry.

29

Education Business: Examples of Data and AI initiatives
LINE Yahoo TechAcademy offers data and AI personnel training for corporations.

Personnel Development Program Centered on Data and AI Utilization

AI Utilization Academia
Course(Regular version / Shortened version)

An AI resource development course targeting non-engineers.
The course is particularly suitable for personnel seeking to improve the efficiency of
existing operations, as well as personnel handling new business.

Basic Course on
Data Utilization

Training program on big data and statistics, extended to the employees of LINE Yahoo.
The course is particularly suitable for front-line business people wishing to utilize datain their work.

Web Application
Development Course

Course based on the curriculum of LINE Yahoo TechAcademy.
The course is particularly suitable for those who want to learn programming and otherskills, as well as those without any related experience.

30

Personnel Matching Business31

Significance of Pursuing the Personnel Matching BusinessWe create opportunities where people
and businesses, both withwillpower can come together.
⚫ We contribute to the creation of new industries byintroducing superior talent to startups.

⚫ In anticipation of Japan’s shrinking workforce, we promote
optimum allocation of human resources by boosting
personnel mobility.
⚫ We provide opportunities where individuals can improvetheir skills through various work and gain experience as abusinessperson.

32Personnel Matching Business: Market Environment
The population of side-job workers and freelancers has increased on the back of workstyle reforms and widespread adoptionof remote work.
The ratio of workers changing jobs is rising due to work style diversification and a change in people’s values concerning
work. We expect to see personnel mobility expand moving forward.
Recruiting industry market size

Side-job and freelance population
Side job & freelance
population

Population of those who have no side-job
experience but have the intent to work side jobs

Referral fee income(10,000 people)(Billions of yen)

770.3
1,784

631.5
541.8

524.0

444.6
353.5

387.6

2,482
1,470

2015

1,775

1,882

1,895

1,854

1,770

2016

2017

2018

2019

2020

2021

Sources:
New Freelance Fact-Finding Investigation Report 2021–2022, “Segment-specific Trends,” by Lancers, Inc.
Freelance Fact-Finding Investigation Report 2021, “Increase of Side-job and Multiple-job Workers,” by Lancers, Inc.
Freelance Fact-Finding Investigation Report 2018, “Trends in the Economic Scale and Population of Side-job
Workforce,” by Lancers, Inc.
”CrowdWorks Conducts Survey on Side Jobs,” by CrowdWorks, Inc.

2016

2017

2018

2019

2020

2021

2022

Source: Ministry of Health, Labour and Welfare, “Aggregate results of business reports on recruiting businesses”

33Personnel Matching Business: Business Model / FY03/25 Strategy
We have executed five M&A deals* since FY03/21 to expand business areas.
In addition to matching personnel (mainly freelancers/side job workers) with growth companies, we will
strengthen our response to the strong demand for fulltime employees and build an earnings base during this fiscal year.
Growth companies
Matching personnel who contribute to growth with companies through appropriate contractual arrangements in accordance with the companies’ growth phase

Matching¥

Outsourcing
expensesWorker referral

Freelancers/side job workers¥

Referral fees

Outsourced recruiting
messaging services

Operates JOOi, a designer-focusedmatching service

Service registration/
job application

Kasooku inc.

Send job seekers to
ONX/Bushing

Operates Kasooku, a matching service
for those seeking side jobs¥

Agency fees

Full-time employees
Agent

LIBASE Inc.

¥

Solutions

ONX inc.

Bushing inc.*2

Innoop Inc.

• Operates Carry Up, amatching service for HR
professionals• Provides personnel referral

Personnel referral

Operates offerBrain, a
recruitment support tool

Project-based
compensation

Service registration

Job seekers
We create opportunities for people to improve skills and gain experiences suitable to their career plans byproviding employment opportunities that cater to diverse work styles.
*1 (1) LIBASE Inc. in June 2021, (2) Cocodoru, Inc. in July 2022 (acquired and absorbed by Kasooku inc. in June 2023), (3) Innoop Inc. in August 2022, (4) Kasooku inc. in December 2022, and(5) ONX inc. in July 2023
*2 Equity-method affiliate

34

Personnel Matching business: Changes in the Number of Active Workers
The number increased from Q4 of the previous fiscal year owing to business expansion through M&A.

Changes in the number of active workers* (at end-Q4)

YoY +33％
ONX inc.
consolidated

Kasooku inc.
consolidated
Cocodoru, Inc.
consolidated

2022/06
Q1

2022/09
Q2

2022/12Q3

FY03/232023/03Q4

2023/06
Q1

2023/09Q2

2023/12Q32024/03
Q4

FY03/24*The number of people registered with any of the Personnel Matching companies and who have worked as side-job workers or freelancers, and those who changed their jobs through personnel referral
services. In addition to matching side-job workers and freelancers with employers, we will also strengthen personnel referral (of full-time employees). For this reason, we have set the number of active
workers as a KPI, which is applicable to both side-job workers/freelancers and full-time employees.

35

Ad Tech/Content Business

36

Ad Tech・Content Business: Strategy for Each Business
Establish a stable earnings foundation by implementing tailored strategies for each company as earnings driverbusinesses.
Company
Ad
Technology

UNITED Marketing Technologies Inc.

Service

Ad optimization products formedia (SSP)

Ad optimization products foradvertisers (DSP)

Strategy

Earnings declined YoY in the Ad Tech business, but profitability
improved in businesses integrated* in the previous fiscal year.
We will focus on expanding the e-book area this fiscal year.
*Plus U, Inc. and TREiS, inc.

Online lottery service

Fogg, inc.

Content

Cloud-based membership management service

International Sports Marketing Co., Ltd.

Smartphone app development

Brewus Inc.

87apps
As of end-March 2024

Topline expanded YoY.
We will focus on monetizing IP this fiscal year, particularly the
online lottery Raffle, and on sales promotion and PR support.

Topline expanded YoY.
We will focus on expanding the membership cloud service
Zebral.

Smartphone app development projects expanded YoY.
We will expand into new technology areas with a focus on AI thisfiscal year.
37

Agenda

1 FY03/24 Financial Highlights

p.3

2 FY03/24 Business Overview

p.8

3 FY03/25 Outlook

p.13

4 Appendix

p.39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time the material
was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names are trademarks orregistered trademarks of the respective companies.

38

Consolidated P/L Statement for FY03/24(Millions of yen)

FY03/23

FY03/24

YoY (%)

Sales

13,14012,573-4.3%

Gross profit

8,797

8,109

-7.8%

SG&A expenses

2,973

3,250

+9.3%

Operating Profit

5,823

4,859

-16.6%

Non-operating profit

40

40

-1.0%

Non-operating expenses

1370+417.3%

5,851

4,829

-17.5%

Extraordinary profit

365

23

-93.6%

Extraordinary losses

49

793

+1,518.2% *1

Profit before income taxes

6,167

4,059

-34.2%Net Income*1

4,139

2,366

-42.8%

Ordinary Profit* Mainly the impact of recording the balance of unamortized goodwill as extraordinary losses

39Consolidated P/L Statement for Q4 FY03/24, by Business(Millions of yen)

Q4 FY23/03

Difference

Q4 FY03/24

YoY (Amount)

YoY (%)

2,965

1,786

-1,178-40%

Investment

1,398

210

-1,187-85%

Education

318

336

+18

+6%

Personnel Matching

139

146

+7

+5%

Ad Tech/Content

1,113

1,097

-15

-1%

-3

-4

-0

-

Gross Profit*

1,766

679

-1,087-62%

Investment

1,279

98

-1,180-92%

Education

33

126

+92

+276%

Personnel Matching

42

54

+11

+27%

Ad Tech/Content

414

404

-10

-2%

-2

-3

-0

-

SG&A Expenses

876

783

-92

-11%

Operating Profit

890

-103

-994

-

Investment

1,261

48

-1,213-96%

Education

-109

8

+117

-

Personnel Matching

-131

-62

+68

-

Ad Tech/Content

140

168

+27

+20%

Other

-271

-266

+5

-

Ordinary Profit

902

-143

-1,045-Net Income

547

-309

-856

-

Sales

Other

Other

*Cost of sales for each business mainly includes advertising, outsourcing, and personnel expenses

40

Consolidated B/S Statement(Millions of yen)

End of FY03/23(March 31, 2023)

End of FY03/24(March 31, 2024)

Difference

27,891

24,379-3,512

Cash & deposits

13,37012,985-385

Operating investment securities

11,236

7,836-3,399 * 1

4,426

2,365

-2,060 *2905

76-828 *3

Total assets

32,31826,745-5,573Current liabilities

2,777

2,063

-714

Non-current liabilities

2,893

1,141

-1,752

2,838

1,089

-1,749 *1

Total liabilities

5,671

3,204

-2,466

Net assets

26,64723,540-3,106

3,934

914-3,020 *1

Current assets

Non current assets

Amortization of goodwill

Deferred tax liabilities

Unrealized gain on securities*1 Of this amount, the impact of revaluation (mark -to-market) and disposal of operational investment securities (listed shares) were as follows:
Operational investment securities -¥4,197 million
Deferred tax liabilities -¥1,189 million
Unrealized gain on securities -¥2,929 million*2 Derivative assets decreased by ¥2,088 million mainly due to the partial expiration of derivative contracts*3 Of this amount, the impact of extraordinary losses recorded was -¥730 million

41

Cashflow
Net cash provided by operating activities decreased YoY due to a decrease in the sales of investment securities.
Net cash used in financing activities decreased YoY due to a decrease in share repurchase-related expenses.

(Millions of yen)

FY03/23

FY03/24

Difference*1*2

Cash Flow from Operating Activities

3,947

2,085

-1,861

Cash Flow from Investing Activities-839-1,134

-295

*3

*4

Cash Flow from Financing Activities-1,903-1,336+566

Cash and Cash Equivalents at
End of Period

13,37012,985-385*1 The amount factors in ¥6,937 million from sale of operational investment securities and -¥1,989 million from income taxes paid
*2 The amount factors in ¥6,481 million from sale of operational investment securities and -¥2,258 million from income taxes paid
*3 The amount factors in -¥1,001 million from share repurchase and -¥794 million from cash dividends paid
*4 The amount factors in -¥1,386 million in dividend payments

42

Purpose
People who push themselves forward.
Businesses that move society forward.
The betterment of society is driven by people andbusinesses with willpower.
Strong willpower is the source of energy thatchanges society for the better.
UNITED will maximize this energy and willpower.

Maximize willpower andaccelerate the betterment of society.

We will provide knowledge and opportunities topeople with willpower.
We will provide funds and know-how to businesses
with willpower.
And when both parties meet, their mutual growth
will spark even further growth.
This cycle of growth will enrich society.
We will move society in a better direction fasterwith willpower.
We will maximize willpower and accelerate thebetterment of society.
43Collaboration of the Core Businesses
We will create synergies by strengthening collaboration of our core businesses.
Match personnel who
can contribute to
growth of investee
companies

Supply trained digital
personnel

Educationbusiness

Personnel Matchingbusiness

Develop and improveeducational curriculum

Investment
business

Provide access tostaffing needs atstartups

44

Growth Mechanism
We will build a unique growth mechanism where the growth of each core business will lead to mutual enhancementof competitive strengths and KPIs.

Education business

Personnel Matching business

Investment business

Increase the levelof skills gained

Improvematching rate

Expand investment
opportunities

Expand/improveeducation service

Expand/improvetalent pool

Discover superior
growth companies

Widen reach to growthcompanies

Accumulate
skills/know-how

Increase matching
opportunities

KPI The number of individual users

KPI The number of corporate users

Build investment
track record

KPI The number of investment projects

Growth of core businesses as a whole45

Risk Awareness and Countermeasures

Item

Affected Segment

Key RisksTechnologicalInnovation

Education Business
Personnel Matching Business
Ad Tech/Content business

Obsolescence of existing
businesses due to the
spread of newtechnologies

Investment Business

Market fluctuations andperformance decline ofinvestee companies

Ad Tech/Content

Stagnation of the entire
market due to theintroduction ofregulations in the internet
sectorInvestment

Business
Environment

Competitive
Environment

business

Education Business
Personnel Matching Business

Rising competition andincreased presence ofdigital transformation
talent development
providers

Manifestation
Probability

Low

MediumLow

MediumManifestation
PeriodLong term

Medium term

Medium term

Medium term

Manifestation
ImpactRisk Countermeasures

Large

Establishing extensive networks with startups
for early information gathering and, whennecessary, implementing strategies such as
M&A.

Large

Diversifying investments and managing
businesses with lower volatility compared toinvestments, thereby reducing overall
company risk.

Large

In the Education Business, Personnel
Matching Business and Investment Business,
operating businesses that do not solely relyon the internet, diversifying risk.

MediumContinuously evolving and differentiating
business models through launching new
businesses, engaging in M&A, and making
strategic investments.

For other risks recognized by our company, please refer to the “Business and Other Risks" section in the securities report.

46

Sales and Earnings (FY03/13–FY03/24)(Millions of yen)

Recorded gains on the saleof securities accompanying
the listing of Mercari, Inc.

Sales
Operating profit

Designated corebusinesses in line with
our purpose statement

22,31816,267

13,14012,714

12,60912,573

11,084

8,385

8,383

5,552
5,101

4,325

3,955

5,606

5,738

5,823
4,859

2,530
1,509
2
FY03/13138

370

FY03/14

FY03/15

FY03/16

1,395

FY03/17

1,648

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22*

FY03/23

FY03/24*We adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) and the ASBJ Guidance No. 30 (Implementation Guidance on Accounting Standard for
Revenue Recognition) from FY21. In this document, we applied this standard to the past earnings of the Ad Technology business in order to make the comparison easier.

47

Number of Consolidated Employees and Directors
Temporary employees
Headquarters divisions full-time employees
Ad Tech/Content full-time employees
Personnel Matching full-time employees
Education full-time employees

Investment full-time employees
Officers (Directors and corporate auditors of parent, including outside directors/auditors)(Numbers employed)
334

48

30

359
340

335

331

54

58

28

170

167

29

26

28

163

24

325

56

24

165

21

325

51

355

357

72

65

65

22

24

23

23

172

173

175

175

23

22

23

23

45

45

46

45

348

346

331

67

54

20

21

69

22

22

169

171

167

168

21

23

22

25

45

45

45

57

42

46

44

45

46

7
8

6
8

6
8

6
8

7
11

6
11

6
11

6
11

14
11

15
11

14
11

14
11

FY22-1Q
Q1

FY22-2Q
Q2

FY22-3Q
Q3

FY22-4Q
Q4

FY23-1Q
Q1

FY23-2Q
Q2

FY23-3Q
Q3

FY23-4Q
Q4

FY24-1Q
Q1

FY24-2Q
Q2

FY24-3Q
Q3

FY24-4Q
Q4

FY03/22

FY03/23

FY03/2448

49