FY 3/2024 Q3

Financial Results Brief ing
PORT INC. Securities Code: 7047
Feb. 13, 2024

Copyright © PORT INC. All Rights Reserved.

Company Profile
Company name

PORT INC.

Established

April 18, 2011

Head office address

5th Floor, Shinjuku Front Tower, 221-1 Kitashinjuku, Shinjuku-ku,
Tokyo

負債を、次世代へと先送りしながら。

Satellite office3-9-5

Iwasaki, Nichinan, Miyazaki

多方面での歪みは複雑な摩擦を生み、深刻化する一方です。

Share capital

2.3 Billion yen (as of Dec. 31, 2023)

Representative

Hirofumi Kasuga, Representative
Director, President and CEO

Business

Contract support

Number of
employees

510 (as of Dec. 31, 2023;
consolidated)

テクノロジー ×リアルで推進します。

Average age of
employees

Approx. 28 (as of Dec. 31, 2023)「あったらいいな」ではなく、「無くてはならない」、

Ratio of men to
women

6:4

Securities code

7047 (TSE Growth, FSE Q-Board;
listed on December 21, 2018)

Major groupcompanies

INE .Inc. / Five Line Inc.
DOORS Inc.

PURPOSE

社会的負債を、次世代の可能性に 。
社会は常に今を優先してきました。

にもかかわらず、その複雑さが故、いまだ放置されている状態にあります。
だからこそ、いつかではなく、今やる。
私たちは、100年後の次世代にその負債を引き継ぐのではなく、自ら社会課題を特定し、提言から実行まで、世の中にとって大切なものを社会実装します。
そう、一つでも多くの社会 的負債を、次世代の可能性に変えていくために。

Copyright © PORT INC. All Rights Reserved.

2

Contents

01

Revision to the Consolidated financial forecast for the Fiscal year ending March 31, 2024

P4

02

Start of Dividend Payment and Introduction of Steadily Increasing Dividends

P11

03

FY 3/2024 Q3 Summary of Results

P15

04

FY 3/2024 Q3 Summary of Results by Services

P26

05

APPENDIX

P44•

Summary of Financial Data (PL/BS)•Management Strategy, Business Outline

Copyright © PORT INC. All Rights Reserved.

3

01
Revision to the Consolidated financial forecast for
the Fiscal year ending March 31, 2024

Copyright © PORT INC. All Rights Reserved.

4

Medium-term Management Plan:

Financial Guidance (FY 3/2024 – FY 3/2026)
We aim for significant growth in revenue and profit and set an ambitious plan. While we assume 30% growth of CAGR forrevenue, we aim for 30% growth of EBITDA including future earnings because we will be conscious of future earnings during
the period.

Sales revenue

3-year CAGR:

3-year CAGR:

3-year CAGR:

25,000(Million yen)

(Million yen)

(Million yen)

Approx. 30%

EBITDA
including future earnings*

EBITDA

Approx. 30%

Approx. 25%
4,000

16,200

3,850

2,850

11,364

2,168

2,010

~
23.3月期

4,800

24.3月期~
26.3月期

23.3月期 24.3月期~
26.3月期

23.3月期 24.3月期

26.3月期*The forecast for the Fiscal Year Ending March 31 are disclosed on Feb. 13, 2024, "Notice of Revision of Full-Year Earnings Forecasts for the Fiscal Year Ending March 31, 2024“.
*EBITDA including future earnings= EBITDA + earnings which would be posted for the current fiscal year as one-time earnings under ordinary circumstances
Copyright © PORT INC. All Rights Reserved.

5

Q3 Results for the Year Ending March, 2024
Results grew significantly after our contract support business expanded its market share. The Q1-Q3 results already exceed
the full-year results for the previous fiscal year. In the staffing, energy and finance domains, business was bullish.

1Q-3Q

Sales Revenue

EBITDA

11,391 million yen (YoY+43％) 2,100 million yen (YoY+57％)■Main Points

Staffing
SupportSales Revenue 3,762 million yen (YoY＋49％) Business Profit 1,860 million yen (YoY+45％)•

Continued growth was attained due to an increase in the number of career advisors in the personnel referral services,
an increase in the number of contracts chiefly following regional expansion and a rise in the contract unit price.

Sales Promotion
Support:Energy Domain

Sales Revenue 4,278 million yen (YoY＋74％) Business Profit 807 million yen (YoY+81％)•

Sales revenue and profit rose significantly after a significant increase in contracts and a rise in the contract unit pricefollowing investments in marketing in view of the recovery of the electric power market.

Sales Promotion
Support:Finance Domain

Sales Revenue 2,213 million yen (YoY＋39％) Business Profit 506 million yen (YoY+75％)•

Profit attained a substantial rise due to a market share increase and optimization of advertising efficiency. The domain
has grown markedly into a state in which it now holds the largest market share in Japan.

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6

Progress Against Full-year Forecast
As a result of organic growth of individual businesses, progress was faster than expected in the full-year forecast announced
on June 30, which reflected an upward revision.
(Million yen)

Sales
Revenue

FY 3/2024

FY 3/2023

Q1

Q2

Q3

3,579
YoY+36%
3,579

3,936

3,875

2,625
2,625

YoY+49%2,640

YoY+43%

2,707

3,390

Full-year Forecast(Jun.30 Announced

Progress

Total
11,391

74.4％

15,300
YoY+35％

11,364Progress 70.2％

EBITDA

Q1

Q2

Q3

986

FY 3/2024

614
614
YoY+52
YoY+52%%500

FY 3/2023

403
403

YoY+93%

510

423

YoY+18%672

Full-year Forecast(Jun.30 Announced

Total
2,100

Progress

86.1％

2,440
YoY+21％

2,010

Progress 66.5％
Copyright © PORT INC. All Rights Reserved.

7

Revision to the forecasts of consolidated financial results for theyear ending March 31, 2024
Third upward revisions, due to the positive outlook for the cumulative 3Q and 4Q results. We expect to add to each profits,
while making business investments and future earnings growth.

IFRS(Million yen)(Ref.) Consolidated
results
for the year ended
March 31, 2023

Forecast for Full year
Forecast Announced on
Jun. 30, 2023

Revised Forecast
Announced on Feb. 13,
2024

YoY

Sales revenue

11,36415,300+6％（+900）

16,200+43%

EBITDA

2,010

2,440

+17％
（+410）

2,850

+42%

Future earnings

158

690

+45％
（+310）

1,000

+633%

EBITDA
including future
earnings

2,168

3,130

+23％
（+720）

3,850

+78%

Operating profit

1,699

2,110

+14％
（+290）

2,400

+41%

Profit before tax

1,658

2,060

+14％
（+280）

2,340

+41%

Profit

1,232

1,520

+8％
（+120）

1,640

+33%

Profit attributable toowners of parent

1,074

1,460

+8％
（+110）

1,570

+46%

*Until fiscal year ended March 2023: EBITDA = Operating profit + Depreciation and amortization + Stock-based payment expenses*From fiscal year ending March 2024 onward: EBITDA = Operating profit + Depreciation and amortization + Loss on retirement of fixed assets and valuation gain or loss + Stock-based payment expenses*Future revenue: Total amount of revenue to be generated from a contract in the future. Because revenue that would be posted in the current fiscal year under ordinary circumstances will be posted into the future, the actual
performance of the Company should be measured based on EBITDA including future revenue.

Copyright © PORT INC. All Rights Reserved.

8

The Points of revision to Full-Year Earnings Forecasts for the
Fiscal Year Ending March 31, 2024
With a view to reaching the EBITDA target of 4 billion yen set in the Medium-term Management Plan and to continuous
growth over the medium and long term, we focused on recurring earnings and changed our policy to build up a large amountof future earnings (1,000 million yen for the current fiscal year).
Amount of upward revision to future

310 million yen

earnings ：Earnings forecast figures after the current revision
with a focus on future earnings
Full-year forecast

1,000 million yen

EBITDA

2,850 million yen (YoY+42％)

Operating profit

2,400 million yen (YoY+41％)

690 million yen

Projects in the initial plan
Full-year performance for the fiscal year ending March 31, 2024

Announced on Jun. 30

EBITDA

3,100 million yen (YoY+56％)

Operating profit

2,650 million yen (YoY+54％)

Announced on Feb. 13

Future earnings plan

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9Outlook for 4Q and next fiscal year

All•

Aggressive investment in each business with a view to continued growth at a
CAGR 30% or more in the next fiscal year•

Maximizing future earnings to ensure recurring earnings for the final year of
the Medium-termuStaffing Support Services•

Further expanded organization and product lineup•

In April, the total number of new graduates will be increased by approximately 90, and half of them will be assigned to the contract
support organization. In particular, growth in new graduate personnel referral services is expected to be the driving force.

•" Minshu" is scheduled to be consolidated from 1Q of the next fiscal year. Continued high growth rate through expansion of productlineup, including development of new products.

Each Business

Energy Domain•

Priority given to expanding market share through large-scale marketing investments•

Negotiations with power utilities on contract unit prices for the next fiscal year are making good progress due to the Company's
increased market presence by expanding its market share.

•

Maximizing future earnings, we expect a steady increase in the profit baseline in the next fiscal year and the year after that.

u

Finance Domain••

Invest in growth in existing and new businesses in 4Q to achieve continuous high growth rate
To achieve high growth rates in the next fiscal year, we will develop new channels to attract customers in the card loan businessand make large investments in new businesses such as credit cards.

•

Focused on business alliance with "Shinsei Financial" to acquire recurring earnings.

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10

02
Start of Dividend Payment and Introductionof Steadily Increasing Dividends

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11

Medium-term Growth Strategy
To increase the likelihood of continuous growth, we introduced a revenue portfolio in the current fiscal year. We will
endeavor to ensure that recurring earnings accounts for around 20% of EBITDA of 4 billion yen for the final year of theMedium-term

Recurring earnings ratio

Policy of the Medium-term Management Plan
Fucus Points
Establishing a portfolio of
revenue sources

recurring earnings•

Convert part of the one-time revenue intorecurring earnings for increasing the likelihood ofcontinuous growth•Gain recurring earnings from business operators
according to their monthly power consumption in
the energy domain•

Obtain recurring earnings from business operators
according to the loan balance in the finance domain

Copyright © PORT INC. All Rights Reserved.

FY 3/2024
Plan

FY 3/2026
TargetRecurring earnings
200 million yen (Plan)

7.4％

Recurring earnings
800 million yen (Target)

20 ％ more

EBITDA

2.85billion yen

EBITDA

4billion yen

12Shareholder Returns Policy and Dividend Payment Policy
In view of the steady rise in recurring earnings and our financial standing, we will start to pay our first dividends from theend of the current fiscal year. We will be paying progressively increasing dividends from recurring earnings as the source
funds, on the condition that consolidated operating profit remains positive even after subtracting the amount of dividends.

Forecast for
FY 3/2024

Mediumterm
Management
Plan(FY 3/2026)

Recurring earnings（million
yen）

200

800

Image of recurring earnings
after tax (million yen）

140

560

Dividend per share（yen）

2

Will be paying
increasing
dividends

Total dividends（million yen）

26

Will be paying
increasing
dividends

Steadily Increasing
Dividends
Continuous increases in dividends in step with
the increase in recurring earnings•

Policy of paying dividends once a year at the end of the fiscal year•

The General Meeting of Shareholders acts as a decision-making
body for dividends (whereas interim dividends are subject toresolution of the Board of Directors).

•

We will continue to use internal reserves for improving ourfinancial structure for the long-term stabilization of ourmanagement foundations and for investing in business growth.

2yen

FY 3/2024* This matter will be discussed at the Ordinary General Meeting of Shareholders that is scheduled to take place in June 2024.
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13

Profit Return Program
We will carry out a three-in-one profit return program that benefits our particularly important stakeholders, namely
shareholders, employees and society. Increasing the returns to different types of stakeholders according to total dividends
to shareholders, we will strive to build long-term solid relationships.

Three-in-one profit return
programShareholders• Offer returns to employees and society
properly under the predetermined standards
according to the returns to shareholders(total amount of dividends).
• Set up a sustainability committee as adecision-making body for destinations ofreturns to society and their methods.

Society

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Employees

14

03
FY 3/2024 Q3 Summary of Results

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15

FY 3/2024 Q3 Financial Summary (Oct. 2023 – Dec. 2023)
Sales revenue: 3,875 million yen (up 43% yoy)
Overall

EBITDA:

500 million yen (up 18% yoy)

EBITDA including future earnings:

799 million yen (up 73% yoy)•

Sales revenue increased 43%, mainly reflecting significant growth in personnel referral services and the energy domain.

•

Profit increased 18% year on year while we invested in continuous growth for the coming fiscal years and continued to build up future earnings.

•

Approximately 300 million yen was gained in Q3 alone through the steady accumulation of future earnings. Recurring earnings for Q3 stood at
65 million yen.

Staffing Support
Services

Sales revenue: 1,192 million yen (up 25% yoy)
Business Profit: 583 million yen (up 24% yoy)
In personnel referral services, sales revenue jumped 59% year on year as a result of increasing the number of career advisors and•conducting regional expansion to sustain brisk growth.
In alliance services, sales revenue rose slightly. This is explained by a change in the year group of students to be sent resulting from an•earlier start to job-hunting activities (as mentioned on page 28) and our focus on personnel referral services.
Alliance cross-selling sales growth was significant with +256% YoY.

•

Sales Promotion Support
Services

Sales revenue: 2,674 million yen (up 69% yoy)
Business Profit : 551 million yen (up 81% yoy)•In the energy domain, , the number of contracts increased significantly with investments in marketing in view of the growing drive ofelectric power providers to capture new customers, along with an improvement in our presence.

•

In addition, the company posted a significant profit increase of +150% while further building up future earnings.

•

The finance domain made good progress in optimizing advertising efficiency, growing significantly with +16% YoY revenue growth and+41% profit growth.

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16

Results for FY 3/2024 Q3 (Oct. 2023 - Dec. 2023)
For Q3, sales revenue surged 43% year on year, reflecting growth of individual businesses. EBITDA was up 18% year on
year. This resulted mainly from the continued accumulation of future earnings and the continuation of investments in growth.
Profit after taxes dropped due to a tax difference from the previous fiscal year.
FY 3/2024*Accounting
IFRS（Million yen）

standards: IFRS

Q3

(Ref.) FY 3/2023
Q3

YoY

3,875

+43%

2,707

EBITDA

500

+18%

423

Future earnings

299

+670%

38

EBITDA
including future

799

+73%

462

Operating profit

377

+13%

332

Profit before tax

349

+10%

319

Profit

199

-18%

244

Profit attributable to owners ofparent

181

-7%

194

Sales revenue*Until fiscal year ended March 2023: EBITDA = Operating profit + Depreciation and amortization + Stock-based payment expenses*From fiscal year ending March 2024 onward: EBITDA = Operating profit + Depreciation and amortization + Loss on retirement of fixed assets and valuation gain or loss + Stock-based payment expenses*Future earnings: Total amount of earnings to be generated from a contract in the future. Because earnings that would be posted in the current fiscal year under ordinary circumstances will be posted into the future, the actual
performance of the Company should be measured based on EBITDA including future earnings.

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17

Results for FY 3/2024 Q3 (Apr. 2023 - Dec. 2023)
Every indicator showed a significant hike with the buoyant progress of individual businesses and the consolidation of Five Line
Inc. that commenced in Q2. For Q1-Q3, sales revenue, EBITDA and operating profit surpassed their respective figures forthe same period a year earlier.
IFRS（Million yen）

FY 3/2024

Q3(Apr. – Dec.)(Ref.) FY 3/2023
Q3

YoY

Sales revenue

11,391

+43%

7,973

EBITDA

2,100

+57%

1,337

Future earnings

560

+466%

98

EBITDA
including future

2,660

+85%

1,436

Operating profit

1,772

+58%

1,124

Profit before tax

1,714

+56%

1,097

Profit

1,053

+25%

845

980

+34%

729

Profit attributable to owners ofparent*Until fiscal year ended March 2023: EBITDA = Operating profit + Depreciation and amortization + Stock-based payment expenses*From fiscal year ending March 2024 onward: EBITDA = Operating profit + Depreciation and amortization + Loss on retirement of fixed assets and valuation gain or loss + Stock-based payment expenses*Future earnings: Total amount of earnings to be generated from a contract in the future. Because earnings that would be posted in the current fiscal year under ordinary circumstances will be posted into the future, the actual
performance of the Company should be measured based on EBITDA including future earnings.

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18

FY 3/2024 Q3 Recurring Earnings
For Q3, we accumulated future earnings mainly in the energy domain. Recurring earnings for Q3 stood at 65 million yen. The
ratio of recurring earnings to EBITDA rose to 7.4%. A continued rise is expected for Q4 and later.

Contribution from future earnings torecurring earnings

EBITDA vs. recurring earnings(Million yen)

Future earnings(Million yen)

We have a target of ensuring that recurring revenue
will make up around 20% of EBITDA worth 4 billion
yen for the fiscal year ending March 31, 2026, whichis the final fiscal year of the Medium-termManagement Plan.

Q3
299

Full-year

Recurringearnings

Ratio of recurring earnings to
EBITDA *1

6.8％

Q2

7.4％

165

158

Q1
94

FY 3/2023

FY 3/2024

65

FY 3/2024 Q3

65

54

Q2

Q3
FY 3/2024*1 Ratio of recurring earnings to EBITDA of 800 million yen after exclusion of the gain on sale of shares.
*2 The amount of recurring earnings is calculated based on the figures for the energy domain, which are the priority projects in line with the key initiatives of the medium-term management plan
(additional figures will be disclosed in the future when the finance domain also makes a certain contribution to the total).
*3 Recurring earnings・・・Profit from sales of recurring revenues-type contracts minus expenses
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19

Trends in Quarterly Sales Revenue by Service Segment
Sales revenue surged 43% year on year, primarily because of substantial revenue increases in the energy domain and inpersonal referral services as part of the staffing support services.

YoY+(Million yen)

43 %Staffing Support

3,936 3,875

Sales Promotion Support
New, other businesses

3,390

3,579

6

9

189

169

2,578 2,625 2,640
201

1,606
1,318
982

888

914

159

194

215

369

337

395

310
534

1,081
760
216

1,241

382

371

473

Q1

Q2

Q3

Q4

FY 3/2020

180

161

185

764

755

1,595

167

1,534

2,511

168
1,971

2,238

1,249

1,151

Q4

Q1

2,674

1,581

1,812

192
195
530

925
675

299
359

197

1,422 1,491 1,500

180

2,707

244

354

373

Q1

Q2

Q3

842

498

400

Q4

Q1

FY 3/2021*Transferred shares in Port Engineering in July, 2023. (New, other business)
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565

560

Q2

Q3

FY 3/2022

781

Q4

939

957

Q2

Q3

1,418

1,192

633

Q1

FY 3/2023

Q2

Q3

FY 3/2024
20

Change in Major Expenses
Labor costs and advertising expenses increased, among others, as a result of upfront investments in strengthening theorganizational structure with an eye towards growth for the next fiscal year.
(Million yen)

3,551

Labor cost

3,277

Adv ertis in g expens es
O utsourci ng cos t

2,807

D eprec ia ti on amortizati on

Goodwill amortizat io n2,253 2,295 2,235

O ther expens es

1,807
184

1,059
839

106

1,019
780

130

115

164

1,163

367

1,441 1,403
136
267

119

132

587

547

108
133

83
168

262

277

335

213

213

208

209

207

233

260

260

332

347

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

214

177
507

182
250

FY 3/2020

429

335

430

411

67

367
313
717

352
737
747

208
612

619

527
1,518
1,165

1,283

1,356

1,050

1,071

992

983

496

515

641

699

357

501

591

769

460

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

206
911

656

490

FY 3/2021

FY 3/2022

FY 3/2023* In and before the fiscal year ended March 31, 2021, Japan GAAP had been applied. From the fiscal year ended March 31, 2022, IFRS is applied.
Copyright © PORT INC. All Rights Reserved.

2,391

118

298

769

233

1,372

286

734

89

423

3,068

FY 3/2024

21

Change in Ratio of Advertising Expenses to Sales Revenue
The ratio of advertising expenses to sales revenue rose 4.7 percentage points quarter on quarter. This resulted from asignificant rise in sales revenue in the energy domain, in which the ratio is high, and from upfront investments for the next

fiscal year.

56.7%

Sales revenue(Million yen)

Advertising expenses
46.1%

Advertising expense ratio
39.7%

38.5%
34.1%
29.5%

39.5%

39.4%

37.8%

36.5%

37.3%

39.2%

38.8%

30.3%

3,936
3,390

2,578

1,606
1,318

262

Q1

1,081

982

914

888

35.8%

34.4%

41.5%

32.9%

1,241

277

Q2

335

Q3

250

Q4

FY 3/2020

Copyright © PORT INC. All Rights Reserved.

Q1

429

Q2

1,491

1,071

656

490

Q3

FY 3/2021

Q4

Q1

587

Q2

2,640

992

983

3,875

3,579

2,707

1,500

911

760
507

1,422

2,625

34.5%

1,050

1,165

1,283

1,356

Q1

Q2

1,518

547

Q3

FY 3/2022

Q4

Q1

Q2

Q3

FY 3/2023

Q4

Q3

FY 3/2024

22

Financial Position
Part of the funds procured by the public offering in October 2023 will be allocated to repayment of borrowings. The resulted
in a huge fall in non-current liabilities. The capital adequacy ratio rose 13.2 percentage points to 41.9% as of the end of
December. (For the financial impacts of the acquisition of the Rakuten Minshu business, see the next page.)
IFRS(Million yen)

FY 3/2024
Q2(Sep. 30, 2023)(Million yen)

Q3
(Dec. 31, 2023)

Difference

Cash and Cash Equivalents

4,914

4,963

+48

Total Current Assets

7,029

7,283

+253

Goodwill

3,992

3,995

+2

Total Non-current Assets

7,100

8,305

+1,204

14,13015,588+1,458

Total Current Liabilities

3,823

3,750

-72

Total Non-current Liabilities

6,217

5,248

-968

10,0408,999-1,041Equity Attributable to Owners of Parent

4,049

6,532

+2,483

Ratio of Equity Attributable to Owners of
Parent to Total Assets

28.7%

41.9%

+13.2p

4,089

6,589

+2,499Total Assets

Total Liabilities

Total Equity*Ratio of equity attributable to owners of parent (net worth ratio)
Copyright © PORT INC. All Rights Reserved.

23

Financial Position
For continuing flexible M&A deals in the future, we repaid part of the borrowings from financial institutions to improve our financialbase. Following the acquisition of Minshu, which will be part of the consolidated accounting from April 2024 onwards, we expect

interest-bearing debt to rise. We assume that the investment will be recovered swiftly with our current capability to create cash flows.

Interest-Bearing Debt
Equity Attributable to Owners of Parent

Goodwill Net Asset Value Ratio

Interest-Bearing Debt （Million yen）
Improve financial basethrough public offering

Ration of Equity Attributable to
Owners of Parent

M&A of Rakuten
MinshuIncrease due to debt
financing for M&A of FiveLine and acquisition of
100% ownership of INE

for M&A of Five Line
41.9%

Target30％ 28.4%

Increase due to Goodwill
M&A of Rakuten
Minshu

37.1%

33.1%

Target 105.0%
100％

28.7%

98.6%

Improve financial basethrough public offering

85.0%
93.0%
61.2%

4,703

4,787

6,549

5,595

7,495

FY 3/23

FY 3/24
Q1

FY 3/24
Q2

FY 3/24
Q3

Estimated value*Figures as reflect the public offering and take into account the repayment of a portion of the debt
Copyright © PORT INC. All Rights Reserved.

FY 3/23

FY 3/24
Q1

FY 3/24
Q2

FY 3/24
Q3

Estimated value

24

Financial Position (Valuation of Goodwill)
PMI made steady progress. At present, there is no sign of impairment or other change of goodwill. Minshu is set to be addedin April 2024.

MarketStaffing Support
Services
Approx. 2.6 billion yen
Dec. 31, 2023•

The market for recruitment support for
new graduates is trending higher amid a
growing corporate willingness to hire such
workers and climbing demand for them.

•

Enrichment of the product lineup will
strengthen the new graduate member
base and increase our ability to attract
users.

•The population of new graduates as our
main service targets is expected to remain
flat amid the rise in the ratio of students
advancing to higher educations.

•

In view of the expansion of the contract
support organization and regional
expansion, major growth in personnel
referral services is anticipated.

•

The labor shortage and encouragement of
reskilling are expected to help boost needs
for hiring young workers.

•

We will bolster cross-selling promotion for
graduates and recent graduates in the
future•Following the increase in regulated
electricity rates of regional electric powercompanies, electric power providers raised
their rates.

•

In line with growth in market share, ourpresence will increase and so will the unit
rate.

•

Although there is still a risk of fluctuationin electricity wholesale rates, the market
was more stable than in 2022.

•

To increase the likelihood of continuous
growth, we will attach importance to theshift to recurring earnings.

•

The competitive environment intensified
as electric power providers stepped up
efforts to capture new customers andundertook aggressive promotion of sales
activities.

•

We will make active investments inmarketing seeking further expansion inmarket share.

•

Despite a downward trend in new
construction projects, demand forrenovation is strong.

•

We will place our management emphasis
on streamlining to create stable earnings.

•

With the development of online renovation
applications, the market related to us is on
the increase.

•

Performance for the fiscal year ending
March 31, 2024 is expected to be at thesame level as in the previous fiscal year.

0.6 billion yen

Acquired in Apr. 2024:(Planed) Min-Shu, Inc.

Approx.

2 billion yen

Energy Domain
Approx. 2.1 billion yen
Acquired in Jan. 2022: INE Inc.
Acquired in Jul. 2023: Five Line inc.

Renovation Domain
Approx. 1.3 billion yen
Acquired in Aug. 2020: Doors Inc.

Copyright © PORT INC. All Rights Reserved.

Outlook04
FY 3/2024 Q3
Summary of Results by Service
Staffing Support Services

Copyright © PORT INC. All Rights Reserved.

26

Staffing Support Services: Sales Revenue
We were oriented to growth of overall staffing support services. We made active use of the member base for personnel
referral services and continued to achieve robust revenue growth, with an increase of 59%. In alliance services, sales
revenue was up 3% year on year. This is explained mainly by our focus on the personnel referral services and an earlier start
to job-hunting activities.

(Million yen)

FY2024/3 Q3
Total

Alliance

Personnel Referral
Services

Other

1,192 (YoY +25%)

601 (YoY +3%)

526 (YoY +59%)

63 (YoY +61%)

Alliance

YoY+

25 %

Personnel Referral Services

1,418

Other

1,249

1,192

1,151
939

957

389

781

498

473
359
80

382
139

371
68

64

245

223

259

323

Q1

Q2

Q3

Q4

FY 3/2020

Copyright © PORT INC. All Rights Reserved.

354

373

137

106

244
78

198

229

Q1

Q2

Q3

FY 3/2021

560

230

168

200

400
89

145

565

633

349

Q4

124
258

312

351

Q1

Q2

Q3

FY 3/2022

408

681
398

526

331

211
805
523

Q4

405

Q1

501

Q2

585

Q3

FY 3/2023

Q4

722

695

Q1

Q2

601

Q3

FY 3/2024

27

Staffing Support Services: Changes in demand due to seasonality
While demand from staffing companies and labor-seeking companies remains high, the number of contracts won and the unit
price changed year on year partly because of an earlier start to job-hunting activities in Q3 of the current fiscal year.
Meanwhile, personnel referral services benefited from a significant rise in the number of contracts following regional
expansion and organizational enlargement.

Alliance
YoY

primary factors

Contract
won

Until the previous fiscal year, there wasdemand for sending university students
in their fourth year in the OctoberDecember period. After the start ofinternship programs directly linked withrecruitment and other starts of jobhunting activities were moved up,
demand for sending university students
in their third year increased.

Contract
Price

Given the demand-supply balance,
unit prices are higher for university
students in the second half of theirfourth year. However, demand has
increased for sending university
students in their third year, for which
the unit price is lower.

-

Copyright © PORT INC. All Rights Reserved.

Personnel Referral Services
YoY

primary factors

With regional expansion, the attributesof users we can serve became morediverse. An increase in career advisors
helped increase the numbers ofinterviews and referrals significantly.

While labor-seeking companies
continue to have strong needs, thenumber of referrals of university
students in their third year increased
after an earlier start to job-hunting
activities. The unit price rose slightly.

28

Staffing Support Services: Business Profit
We made active business investments in test marketing and other areas for the continuous growth of staffing support

services. The business profit rate stayed flat from the same period in the previous fiscal year.
(Million yen)
Business profit

YoY+

Business profit ratio
57%

54%

52%

59%

58%

55%

24 %

55%
52%
48%

47%
43%

49%

47%

49%

50%

49%

41%

40%

739

713

37%
583

563
517
469
408

204

207

297

267

259
204

193

230

214
179

158

90

Q1

Q2

Q3

Q4

FY 3/2020

Copyright © PORT INC. All Rights Reserved.

Q1

Q2

Q3

FY 3/2021

Q4

Q1

Q2

Q3

FY 3/2022

Q4

Q1

Q2

Q3

FY 3/2023

Q4

Q1

Q2

Q3

FY 3/2024

29

KPIs of Staffing Support Services:
Number of Contracting Companies and ARPU
Increase in the number of contracting companies due to climbing demand from labor-seeking companies for
personnel referral services. The average revenue per user (ARPU) rose slightly because Alliance Services sales
revenues increased slightly.

Number of contracting companies

4,000

ARPU

3,000

2,000
443

402
302
200

206

230

263

243

251

247

319

329

388

408

423

347

341

265

1,000

168

0
Q1

Q2

Q3

Q4

FY 3/2020

Copyright © PORT INC. All Rights Reserved.

Q1

Q2

Q3

FY 3/2021

Q4

Q1

Q2

Q3

FY 3/2022

Q4

Q1

Q2

Q3

FY 3/2023

Q4

Q1

Q2

Q3

FY 3/202430

千(Thousand yen)

KPIs of Staffing Support Services:
Number of Contracts Won in Personnel Referral Services
In addition to the market environment of increased demand for personnel referral services, the number of careeradvisors increased and the number of regional offices expanded, resulting in a large YoY increase.

YoY+

Q1

Q2

Q3

FY 3/2022

Copyright © PORT INC. All Rights Reserved.

Q4

Q1

Q2

Q3

FY 3/2023

Q4

58 %

Q1

Q2

Q3

FY 3/2024

31

KPIs of Staffing Support Services:
Sales of Cross-Selling with Members
Cross-selling sales to operators of staffing services mainly for graduates, recent graduates, part-time workers andother young people grew120% year on year, through using of new graduate membership data effectively.

YoY+

Q1

Q2

Q3

FY 3/2022

Copyright © PORT INC. All Rights Reserved.

Q4

Q1

Q2

Q3

FY 3/2023

Q4

120 %

Q1

Q2

Q3

FY 3/2024

32

KPIs of Staffing Support Services:
Unique Members
The number of new members graduating in FY2025/3 will increase at a higher rate than those graduating in FY2024/3 due tothe earlier start of job-hunting activities and product enhancement. Continued steady growth in membership.

Total Unique Members *1,*2

Total Unique Members by Graduation Year *1,*2(thousand people)(thousand people)

500

464

Graduate in 2023

450

Graduate in 2024

3,000

Graduate in 2025

400

3,500

2,500

350
300

2,000

250

220

1,500

200
150

1,000

Total Unique Members

500

Approx.
millionexceeded

3.0

100
50
0
Q1

Q2

Q3

FY 3/2022

Q4

Q1

Q2

Q3

FY 3/2023

Q4

Q1

Q2

Q3

FY 3/2024

0
Q1

Q2

Q3

FY 3/2022

Q4

Q1

Q2

Q3

FY 3/2023

Q4

Q1

Q2

Q3

FY 3/2024*1 Due to a change in the definition for the number of members data, there is a slight discrepancy with the number of members of the graduate of 2024 and 2025 that was disclosed in the past.
*2 “Career Park! and “就活会議" and other services operated by the our group companies.
*3 Total number of members = includes students who have already graduated and those who are expected to graduate in the future.
33
Copyright © PORT INC. All Rights Reserved.

Staffing Support Services:
Market Trend (New Graduate Support Services Market)
An earlier start to job-hunting activities meant that needs in Q3 shifted from university students in their fourth year to
students in their third year. For Q3 itself, demand fell overall. At the moment, we assume that demand will be the largest in
Q4. It may possibly be postponed to Q1 or Q2 of the next fiscal year. We need to keep a close eye on it.
Apr

May

Jun

Jul

Q1

Aug

Sep

Q2

Oct

Nov

Dec

Q3

Jan

Feb

Mar

Q4
Spring internship2nd-yearundergraduates△
Opening of major internshipsites

3rd-yearundergraduates/1styear graduate students

Opening of internship of directly linked torecruitment
Summer
Winterinternships
internships

△

○

○

Mar. 1: Official opening of jobhunting season
Opening of major recruitment
sites◎*Peak demand period

Jun. 1: Official start date ofjob interviews

4th-yearundergraduates/2nd-year graduate
students

Level of contribution to
the Company's sales

Unofficial job offer
ceremony◎◎◎(Before: 〇 )

△

: Low

○

: Medium

◎

〇
◎
大◎)
(Before:(Before: 〇 ): High(Reference) Impact of the Earlier Opening of Major Recruitment Sites on the Company's Business Performance, a news release dated March 6, 2023
Copyright © PORT INC. All Rights Reserved.

△

34

04
FY 3/2024 Q3
Summary of Results by Service
Sales Promotion Support Services

Copyright © PORT INC. All Rights Reserved.

35

Sales Promotion Support Services Sales Revenue
Record high quarterly sales revenue. In the energy domain, the number of contracts and the contract unit price hiked even in
Q3, which falls within the slack season. Consequently, the domain marked the highest rate of growth of all services. The
effect of improved unit prices will continue in Q4 and beyond.

(Million yen)

*Name changed from card loan domain to finance domain from FY 3/2024 Q1

FY 3/2024 Q3 Results

Total

EnergyFinanceRenovation

2,674 (YoY +69%)

1,698 (YoY +127%)

667(YoY +16%)

308 (YoY +20%)
YoY+

EnergyFinance
R enovati o n

69 %
2,674
2,511

2,238
1,971

1,812
1,595
293
255
925

369

338

395

369

338

395

Q1

Q2

Q3

FY 3/2020

534

530
299

534

Q4

173

675

240

842
252

274

299

357

401

Q1

Q2

Q3

FY 3/2021

764
282

755

458

590

481

453

Q4

Q1

Q2

Q3

FY 3/2022

323
417

258

318

616

308
667

694

282
851

575
1,511

301

685

602

1,534

1,581

305

881

915

793

747

Q4

Q1

Q2

Q3

FY 3/2023*In the energy domain, INE.Inc. became a consolidated subsidiary in January 2022, also Five Line Inc, became a consolidated subsidiary in July 2023
Copyright © PORT INC. All Rights Reserved.

1,072

1,068

Q4

Q1

Q2

1,698

Q3

FY 3/2024

36

Sales Promotion Support Services Business Profit
Although the energy domain is focusing on future earnings, business profit jumped 150% year on year, partly reflecting a risein contract unit price under stable market circumstances. In the finance domain, optimization of advertising operation
efficiency progressed, increased 41% year on year in profit.
(Million yen)

FY 3/2024 Q3 Results
Total

EnergyFinanceRenovation

Business Profit

551 (YoY +81%)

326 (YoY +150%)

143 (YoY +41%)

81 (YoY +13%)

Business Profit Ratio

20.6％

19.0％

21.6％

26.4％

EnergyFinanceRenovati o n

489

479
438
74

186
132
92
132

Q1

92

Q2

91

73

82
49

91

73

49

43
38

Q3

Q4

Q1

Q2

FY 3/2020

129
22

79
73

Q3

FY 3/2021

26
(61)
(87)

Q4

44

91

72
108
248

177

107

89

95

Q1

Q2

Q3

FY 3/2022

253

84

40

133

Q1

81

Q2

143

175

273

228

207

Q4

Q1

326

130

Q3

FY 3/2023*In the energy domain, INE.Inc. became a consolidated subsidiary in January 2022, also File Line inc, became a consolidated subsidiary in July 2023
Copyright © PORT INC. All Rights Reserved.

134

101

76
68

Q4

93

188

304

302

152

551

107

120

110

555

Q2

Q3

FY 3/2024

37

Concept of Business Profit in the Energy Domain
Focus on future earnings to maximize recurring earnings in the energy domain When converted to conventional one-time
earnings, the capacity to generate business profit exceeded 600 million yen on a non-consolidated basis in Q3.

Ability to generate business profit
in the energy domain

Method of calculating future earnings(Million yen)

Business Profit

625

Future Earnings
Futurerevenue
438

287

276

168
248

228

Excluding
expenses tobe incurred in
the future

326

273

207
299

130

300

300

300

yen

yen

yen

N

N+1

～

N+60

165

68
28

31

38

59

1Q

2Q

3Q

4Q

Copyright © PORT INC. All Rights Reserved.

Example: (1) 300 yen as monthly
recurring sales x 60 months as
contract period x 2% as monthly
cancellation rate x 20% as
discount rate = (2) Future sales

301

99

2023年3月期

Example: If a
project thatgenerates
recurring salesof 300 yen permonth isacquired94

1Q(1) Monthly recurring sales x monthly
cancellation rate x discount rate

2Q

3Q

*Future sales for up to five years are to befactored in.

(2) Future
revenues(3)Future
earnings

2024年3月期

38

KPI for Energy in Sales Promotion Support Services
The total number of successful contracts rose significantly with the consolidation of Five Line, increased marketinginvestments, and an increase in gas and other ancillary rates.

Number of contracting
companies

Number of multi-contracts won

ARPU(Electric, Gas and Others)

YoY
+241％

50

70

67

百万

(Million yen)

178,46140
133,165

58

49

52

53

30
48
85,911

20

68,281
54,34961,14864,396
51,824 52,355

50,034 47,285

10

0

Q1

Q2

Q3

FY 3/2023

Copyright © PORT INC. All Rights Reserved.

Q4

Q1

Q2

Q3

FY 3/2024

Q1

Q2

Q3

FY 3/2022

Q4

Q1

Q2

Q3

FY 3/2023

Q4

Q1

Q2

Q3

FY 3/202439

Growth Mechanisms for Energy domain
To achieve the overwhelming No. 1 market share, the Company will focus on increasing the total number of successful
contracts, including roll-up M&As, as our most important indicator. The transformation of Five Line Inc. into a wholly owned
subsidiary reached completion in January 2024. We will continue our efforts to maximize synergies.

Increase in
the number ofsuccessful
contracts

Business expansion
through roll-up M&A

The total number of successful
contracts in the energy domain(electricity, gas, etc.) increased
significantly.

INE Inc.

Marketinginvestments

Five Line Inc.

In January 2024, we made an additional
acquisition to attain a 100% stake.

Improving
marketpresence

The increase in the unit
price enables further
marketing investments
to be made.

Increase insales fromsuccessful
contracts

Increase inunit price for a
successful
contract

The expansion of
our share in theenergy market will
increase ourpresence andcontribute to anincrease in ourbargaining power.

It will have an impact on consolidated financial resultsfrom Q4 of the fiscal year ending March 31, 2024 onwards.

Copyright © PORT INC. All Rights Reserved.

Since sales = numberof contracts x unit
price, sales rise as
the number ofsuccessful contracts
increases.

Increased bargaining power withclients contributed to higher unit
contract prices, including volume
incentives.
40Market Trend in Energy Domain
JEPX prices have stabilized compared to the previous year due to lower fuel prices and other factors, and the performance of
all regional electric power companies has improved. Impact on increase in the unit contract price from 3Q of this fiscal year.

FY 3/2023

FY 3/2024

Here atpresent

Steep rise inelectricity
wholesale pricereflecting theimpact of the
weak yen andsoaring resource
pricesElectric powercompanies'
reduction ofsales promotion
costs(yen/kWh)Electric powercompanies'
control andsuspension of newuser acquisition

Increase of prices
under regulation
implemented byregional electric
power companies

Price increase
implemented byelectric powercompanies

Resumption ofuser acquisition
activities

Market Price (JEPX*）

70
60
50
40
30

20
10
0

Jan.

Feb.

Mar.

Apr.

May.

Jun.

2022

Jul.

Aug.

2023

2024

* JEPX(Japan Electric Power Exchange) https://www.jepx.jp/electricpower/market-data/spot/
Copyright © PORT INC. All Rights Reserved.

Sep.

Oct.

Nov.

Dec

41

KPI for Financial domain in Sales Promotion Support Services
For 3Q, although we were affected, as expected, by restraints in each business operation on new customer acquisition, we
succeeded in increasing our market share, sales revenue and profit by expanding contracting companies and optimizing
efficiency in advertising operations.
(* The number of customers send had been disclosed as a standard value of ability to send customers but since the definition of the contract point frequently changes for each client company anddoes not directly correlate with the sales growth rate, it will not disclosed.)

Number of contracting companies
ARPU(Million yen)

50
27
23

24

22

24

30

19
16

16

16

40

24

16

20

10

0
Q1

Q2

Q3

FY 3/2022
Copyright © PORT INC. All Rights Reserved.

Q4

Q1

Q2

Q3

FY 3/2023

Q4

Q1

Q2

Q3

FY 3/2024
42

Finance Domain; Progress of Business Alliance with Shinsei
Financial LakeIn September 2023, the company announced a partnership with a recurring earnings model with Shinsei Financial Lake, andit has been progressing well. Also the results of the recurring earnings in finance domain will be disclosed in the future whenmakes a certain contribution to the total.

OutlineProgress and future

Send users• The shift to recurring earnings started in Q3 of thecurrent fiscal year and is making good progress.

Remuneration forsending customers

recurring earnings
Costs are calculated based on the loan balances of users
sent by the Company, and sales are generated in theform of profit sharing.

• The amount of recurring earnings that is disclosed
at the moment pertains solely to the energy
domain. It does not reflect the effect of thisactivity.
• The amount of recurring earnings will be disclosed
at a future time when the recurring earnings
resulting from this activity will produce some effecton the performance.

*Customers are sent to card loan providers via ASP (Application Service Provider).
*For details of the business alliance with Shinsei Financial Co., Ltd., please refer to the "Notice of Business Alliance Agreement with Shinsei Financial Co., Ltd. for Recurring earnings Model in Card
*Loan Business Lake" released on September 19, 2023.
43
Copyright © PORT INC. All Rights Reserved.

05
APPENDIX
Summary of Financial Data
（PL/BS）*Untill fiscal year ended March 2020:Japanese GAPP
*From fiscal year ended March 2021:IFRS*Until fiscal year ended March 2023: EBITDA = Operating profit + Depreciation and amortization + Stock-based payment expenses*From fiscal year ending March 2024 onward: EBITDA = Operating profit + Depreciation and amortization + Loss on retirement of fixed assets and valuation gain or loss + Stock-based payment
expenses*Future earnings: Total amount of earnings to be generated from a contract in the future. Because earnings that would be posted in the current fiscal year under ordinary circumstances will be posted
into the future, the actual performance of the Company should be measured based on EBITDA including future earnings.

Copyright © PORT INC. All Rights Reserved.

44

PL (Quarterly)（Million yen）

FY 3/2021

FY 3/2023

FY 3/2024

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

760

1,081

1,241

1,606

1,422

1,491

1,500

2,578

2,625

2,640

2,707

3,390

3,579

3,936

3,875

Staffing Support Services

244

354

373

498

400

565

560

781

633

939

957

1,249

1,151

1,418

1,192

Sales Promotion Support
Services

299

530

675

925

842

764

755

1,595

1,812

1,534

1,581

1,971

2,238

2,511

2,674

New, other businesses

216

195

192

197

180

161

185

201

180

167

168

169

189

6

9

Major Expenses

780

1,019

1,163

1,807

1,441

1,403

1,372

2,253

2,295

2,235

2,391

2,807

3,068

3,277

3,551

Labor cost

207

233

260

260

332

347

357

460

501

496

515

591

641

699

769

Advertising expenses

250

429

490

911

656

587

547

1,071

992

983

1,050

1,165

1,283

1,356

1,518

Outsourcing cost

182

164

206

367

267

286

298

430

411

619

527

612

747

737

717

Depreciationamortization

13

15

15

36

48

49

51

56

54

67

90

85

81

116

122

goodwill amortization

10

46

70

46

0

0

0

0

0

0

0

0

0

0

0

Other expenses

115

130

119

184

136

132

118

233

335

67

208

352

313

367

423

206

348

378

208

308

414

443

736

787

779

783

1,192

1,062

1,254

999

Staffing Support Services

90

204

179

214

158

267

230

408

297

517

469

739

563

713

583

Sales Promotion Support
Services

49

82

152

-61

129

133

186

302

479

253

304

438

489

555

551

New, other businesses

66

61

46

54

20

13

26

25

10

8

9

14

9

-14

-136

Operating profit

-20

92

192

-162

26

96

134

341

349

442

332

574

532

863

377

EBITDA

16

133

235

-99

76

147

186

398

403

510

423

672

614

986

500

EBITDA including future
earnings

-

-

-

-

-

-

-

-

431

542

462

732

709

1,151

799

Profit before tax（loss）

-35

86

185

-77

16

89

131

327

348

429

319

561

518

846

349

Profit（loss）

-35

76

160

-40

2

54

105

203

287

314

244

386

311

542

199

Sales Revenue

Business profit

Q1

FY 3/2022*From fiscal year ended March 2021:IFRS (Excluding major expenses)
Copyright © PORT INC. All Rights Reserved.

45

PL (Yearly)(Million yen)

FY 3/2020

FY 3/2021

FY 3/2022

FY 3/2023

4,103

4,689

6,994

11,364

Staffing Support Services

1,587

1,471

2,308

3,779

Sales Promotion Support
Services

1,636

2,431

3,957

6,899

New, other businesses

879

801

728

685

3,403

4,770

6,470

9,730

844

961

1,498

2,105

1,382

2,082

2,863

4,191

Outsourcing cost

694

920

1,282

2,171

Depreciationamortization

71

81

206

297

goodwill amortization

21

173

0

0

Other expenses

389

550

620

963

1,504

1,141

1,902

3,542

Staffing Support Services

864

689

1,064

2,023

Sales Promotion Support
Services

389

223

751

1,476

New, other businesses

250

228

86

42

Operating profit

699

106

599

1,699

EBITDA

792

290

810

2,010

-

-

-

2,168

Profit before tax（loss）

609

159

564

1,658

Profit（loss）

382

160

365

1,232

Revenue

Major Expenses
Labor cost

Advertising expenses

Business profit

EBITDA including future earnings*From fiscal year ended March 2021:IFRS (Excluding major expenses)
Copyright © PORT INC. All Rights Reserved.

46

BS (Yearly)(Million yen)

FY 3/2019

FY 3/2021

FY 3/2022

3,095

3,618

3,780

5,878

5,872

7,283

2,395

2,764

2,411

3,962

3,872

4,963

379

338

2,975

4,443

5,562

8,305

Property, plant andequipment

31

27

59

63

316

728

intangible assets

171

187

429

443

607

935

Goodwill

123

-

1,909

3,337

3,399

3,995

3,482

3,962

6,755

10,322

11,435

15,588

1,209

1,189

2,103

3,060

3,023

3,750

181

656

2,630

4,274

4,392

5,248

1,391

1,845

4,733

7,335

7,415

8,999

Total equity・net assets

2,091

2,116

2,022

2,986

4,019

6,589

Total equity attributable toowners of parent

2,091

2,111

2,022

2,367

3,242

6,532

Ratio of equity attributable toowners of parent to total
assets

60.0%

53.3%

29.9%

22.9%

28.4%

41.9%

3,482

3,962

6,755

10,322

11,435

15,588

Total current assets

Cash and cash equivalents
Total non-current assets

Total assets
Total current liabilities
Total non-current liabilities
Total liabilities

Total liabilities and equity*From fiscal year ended March 2021:IFRS
Copyright © PORT INC. All Rights Reserved.

FY 3/2023

FY2024/3
3Q

FY 3/2020

47

05
APPENDIXManagement Strategy, Business Outline

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48

Management Strategy

Creating possibilities in a society facing
a declining working population
Supplying human resources to each industry and improving industry productivity with the contract support business,thus creating possibilities in a society facing a declining working population

Contract support
Technology
×RealIndustry 1

Staffing Support

Industry 2

Industry 3

Sales Promotion
SupportIndustry 4

Industry 5

Technology
×
Real

・・・

Industry N

Improving productivity in society as a wholeby improving the efficiency and profitability of each industry
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49

Insight into Society: Issues Faced by the Labor Market of Japan

Declining working population(working-age population)

Low labor productivity

The working-age population of Japan will decrease due to thedeclining birthrate and aging population.*1

The labor productivity of Japan was ranked 23th among 38 OECD
countries in FY2020, falling in rank in recent years.*2

100.0

Forecast changes in working-age
population (15 to 64 years old)1

87 million

6
United States, 8
1145 million

50.0France, 10
Germany, 13

16

United Kingdom, 16
Italy, 17
Canada, 19

21

Japan
, 24
Japan,
23

0.0

26

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060

The working population will inevitably decline. Moreover, Japan also
faces a sustainability crisis due to low labor productivity.
*1 https://www.chusho.meti.go.jp/pamflet/hakusyo/H30/h30/html/b2_1_2_1.html*2 https://www.jpc-net.jp/research/assets/pdf/international_trend_summary2021.pdf

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50

Insight into Society: Themes of Issues to SolveManagement issue of company is sales
activities

Low productivity of sales activities

Management issues for companies, which constitute 90% of all
Japanese companies*1, are sales promotion and human resources*2.
In other words, they are issues related to sales activities.

The sales efficiency of Japanese companies is said to be lower thanthat of companies in other countries. This is attributable to the low
profitability and inefficiency of the ratio of cost of sales activities.

Sales and sales channel
営業・販路開拓development

61%

Human resources
人材

Ratio of cost of
sales activities.*3

51%

15.2%

Development and improvement
商品サービスの開発・改善of products and services

36%

Finance
財務32%

Technologies
技術・研究開発
and R&D

12.8%

Sales efficiency*3
Japan

15%

Global2.76

1.74

Use of ICT
ICT活用
Production/manufacturing
生産・製造

10%
10%

Gross margin*3
Japan

Global
25.8%
23.0%

なし
None

7%

その他
Other

5%

Japan

GlobalEfficiency improvement of sales promotion activities and recruitment, which are regarded as
management issues of companies, were identified as top priority themes of issues to be solved.
*1 https://www.chusho.meti.go.jp/koukai/chousa/chushoKigyouZentai9wari.pdf*2 Source: Nomura Research Institute, Chusho Kigyo Keiei-ni kansuru enquete (Questionnaire survey on SMEs' management) (March 2021)*3 Calculated by determining the simple averages of ROI, etc. by benchmark industry based on Nihon-no Eigyo Seisansei-ha naze hikui noka (why sales efficiency of Japanese companies is low) from McKinsey
https://www.mckinsey.com/jp/~/media/mckinsey/locations/asia/japan/our%20insights/why%20is%20japan%20sales%20productivity%20so%20low%20japanese.pdf

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51

Insight into Society: Solutions

What we are required to do

Potential of the market

Comprehensive support for processes from activities toattract users to the conclusion of a contract, byintegrating technologies with real-life activities

Providinginformation

Estimation
Information
requestSales

Successful
contract

Support for
attracting users
Contract support

Total

Promotion
expenses

Recruitment
expenses

49

39

10

trillion yen

trillion yen

trillion yen

Promotion＝
expenses

Advertising market*1 + Personnel expenses forsalespeople (population x average reward/year)*2

Recruitment＝
expenses

Recruitment advertising market*3 + job placement market*3+ temporary staffing market*3 + personnel expenses forgeneral affairs and personnel affairs (population x averagereward/year)*3

Establishment of a service based on rewards for contracts
We provide comprehensive support for recruiting and sales promotion activities of companies,
from the process of attracting users to the conclusion of a contract. This enables companies toenjoy profit efficiently without risks and aim to increase shares in huge markets.

*1 https://www.dentsu.co.jp/news/release/2022/0224-010496.html*2 Estimated by the PORT INC. based on Rodoryoku Chosa (labor force survey) from the Ministry of Health, Labour and Welfare/Nihon-no Toukei "Shuyo Shokushu-betsu heikin nennrei, kinzoku nensu, jitsu-rodo jikansu togekkan kyuyogaku" (information about average age, length of service, actual working hours, and amount of monthly salary by major job category from a book on statistics in Japan)*3 https://j-hr.or.jp/wp/wp-content/uploads/JHR_JHR_2030_report_20210125.pdf

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52

Contract Support Business: Common Business Model
We adopt a common business model in which we are deeply involved in clients' recruitment and sales promotion processes toearn rewards for their new contracts.
We form a population of users and provide support until new contracts are concluded, aiming to minimize risks in clients'
recruiting and sales promotion activities.

(1) Offering of
information and options

Client(2) Support forrecruitment andsales promotion(2) Support for
decision-making

Users

Contract support
Improving recruiting
efficiency
Improving the efficiency ofsales promotion activities(3) Hiring decision andacceptance of order(4) Rewards forcontracts(3) Decision-making

Elimination of information
asymmetry
Maximization of options
Support for decision-making

Outcomes

Outcomes

Productivity andprofitability
improvement

Satisfactorydecision-making

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53

Contract Support Business: Common Business Model
Total sales are calculated by multiplying the number of contracting companies by the average revenue per user (ARPU).
To increase the above indicator, we position the capability of attracting users, the capability of winning contracts and sales
capability as important factors.

Number of contracting
companies

Net sales

ARPU
Users

Important factors
Capability to win contracts

Capability to attract users•

Providing useful information and

•

•

•

optimal for both clients and users

options based on the user-firstprinciple

Concluding contracts which are

Sales capabilities•

Increasing the number ofFinding new clients to maximize
the number of options•

Increasing rewards for contracts

Continuing to attract users

successful contracts throughbased on successful contracts

through the stock of datacross-sellingachieved actually

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54

Contract Support Business: Sales Breakdown
In the contract support business, we provide services that help increase the efficiency of corporate recruitment and sales
promotion activities.

Contract support

Staffing Support Services

Sales Promotion Support Services

Sales ratio

Sales ratio

Approx.

35%

Approx.

65%

Personnel referral services

Sales and sales promotion support services

Recruitment support services in an alliance withstaffing agencies

Services supporting streamlining of sales andsales promotion processes* The sales ratio has been calculated exclusive of sales of new and other businesses.
Copyright © PORT INC. All Rights Reserved.

55

Staffing Support Services: Business Flow
Providing personnel referral and operating support services and offer various solutions with alliance partners, mainly to the HR
department of each company.
Attracting users and making them members by means of web marketing and helping with decision making with contract
support.

ClientPersonnel referral andoperating support

Company (HRdepartment)

Contract
supportoperations

Fee for successful contract

Web
marketingOffering of
informationand options

Users

Pains

Pains
Inside sales• Manpower shortage
and cumbersome
recruiting activities• Inability to secure an
appropriate numberof new hires or
required level ofhuman resources• Low cost efficiencyof advertising

ClientCareer advisors

HR service

HR service
company

Alliance

Consultants

Fee forsuccessful
contract

Decision-making

Flow of service
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Support for
decisionmaking• Lack of knowledge
about job-hunting
activities and lack ofdata on activities ofpeople who haveobtained informal
job offers• Difficulty finding
companies suitable
for them• Lack of knowledge
about how tochoose companies

Flow of fee
56

Sales Promotion Support Services: Business Flow
After forming a population of users by attracting them through web marketing, we help users make decisions through insidesales, etc. and support clients' sales promotion activities.

Offering of
information andoptions

ClientEnergy: Electric power/gas business operators
Finance: Financial service
providers
Renovation: Outer wall
painting service providers

Contract support
Contract support
operations

Improving thecontract process

Inside sales

Web marketing

い

Pains
• Shortage of sales
resources• Low contract rate
• Cost efficiency of sales
promotion

Users

Consultants

EnergySupport for
decision-making
FinanceRenovation

Fee for successful
contract

Pains• Basic know-how, etc. isdifficult to understanddue to a lack ofknowledge on themarket.
• It is difficult to make theoptimal choice because
there are too many
options.

Decision-making

Flow of service
Copyright © PORT INC. All Rights Reserved.

Flow of fee
57

FY 3/2024 – FY 3/2026

Policy of the Medium-term Management Plan
As stated in the material on the Medium-term Management Plan that we disclosed on May 12, 2023, we will take initiatives
under the following policies.

Long-term policy

Maximizing free cash flow

Policy of the MidTerm Management
Plan

Maximizing EBITDA in the medium to long term

Organic
investment

Medium-term
Growth Strategy

In huge markets, we will establish the position of the contract support business by
combining technologies with real-life activities to make it possible to continue
increasing market share.

Establishing aportfolio of
revenue sources

We attach importance to recurring earnings to establish a portfolio of revenue sources
and increase the probability of continuous growth while assuming growth of revenue
and profit.

Inorganic
investment

To achieve 10.0 billion yen in a single business as soon as possible, we will implement
aggressive, large-scale M&A in existing businesses or new domains and develop new
businesses.

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58

Disclaimer

Note on forward-looking statements- The materials and information provided in this presentation include so-called forward-looking statements.
- These statements are based on assumptions associated with current expectations, forecasts and risks, andinclude uncertainties that could cause actual results to differ substantially from them.
- These risk and uncertainties include regular economic conditions in Japan and overseas, including regularindustry and market conditions, interest rates and currency fluctuations.
- The Company does not assume any obligations to update or revise the forward-looking statements contained inthis presentation even in response to new information or future events.

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59

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60