Consolidated Financial Results
for the Fiscal Year Ended December 31, 2022
[Japanese GAAP]
February 13, 2023

Company name: JAC Recruitment Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2124
URL: https://corp.jac-recruitment.jp
Representative: Hiromi Tazaki, Co-Founder, Chairman, CEO and Managing Director
Inquiries: Toshihiko Okino, Associate Director, Head of Administration HQ and CFO
Phone: +81-3-5259-6926
Scheduled date of Ordinary General Meeting of Shareholders: March 28, 2023
Scheduled date of commencing dividend payments: March 29, 2023
Scheduled date of filing securities report: March 28, 2023
Availability of supplementary briefing material on annual financial results: Available(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2022 (January 1, 2022 to December 31,
2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Net Sales
Fiscal year ended
December 31, 2022
December 31, 2021

Operating Income

million yen%

30,43524,852(Note) Comprehensive income:

22.5
15.0

%

7,044
5,822

21.0
13.3

million yen

7,052
5,813

%

million yen

21.3
11.9

5,029
3,882

Fiscal year ended December 31, 2022: ¥5,173 million [29.6%]
Fiscal year ended December 31, 2021: ¥3,991 million [133.7%]

Earnings
Per Share
Fiscal year ended
December 31, 2022
December 31, 2021

million yen

Profit Attributable to
Owners of Parent

Ordinary Incomeyen

124.5796.02

DilutedEarnings
Per Share

Return on
Equity
yen

%

%

29.5
111.6

Ratio of
Ordinary Income
to Total Assets

Operating
Income Margin
23.1
23.4

%

%

96.01

34.7
28.1

34.4
31.0

Net Assets

Equity Ratio

Net Assets Per Share(Reference) Share of profit (loss) of entities accounted for using the equity method:
Fiscal year ended December 31, 2022: ¥ - million
Fiscal year ended December 31, 2021: ¥ - million(Note) Diluted earnings per share for the fiscal year ended December 31, 2022 are not presented as there were no dilutive
shares.
(2) Consolidated Financial Position

As ofDecember 31, 2022
December 31, 2021

(Reference) Equity:

Total Assets
million yen

22,084
18,935

million yen%

15,585
13,365

70.6
70.6

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

million yen

million yen

million yen

As of December 31, 2022: ¥ 15,585 million
As of December 31, 2021: ¥ 13,365 million(3) Status of Consolidated Cash Flows

Fiscal year ended
December 31, 2022
December 31, 2021

5,913
5,091

(944)
(436)

(3,174)(5,400)yen

385.93331.13

Cash and Cash
Equivalents
at End of Period

million yen

14,87912,932

2. Dividends
Annual Dividends

Fiscal year ended
December 31,
2021
Fiscal year ended
December 31,
2022
Fiscal year ending
December 31,
2023(Forecast)

1st
Quarterendyen

2ndQuarterendyen

3rdQuarterend
yen

-

0.00

-

Year-end

Total

Total
Dividend
Amount(Annual)Dividend
Payout Ratio(Consolidated)

Net Assets-toDividends
Ratio(Consolidated)

yen

yen

million yen

%

%

-

73.00

73.00

2,990

76.8

20.8

0.00

-

80.00

80.00

3,278

65.2

21.2

0.00

-

85.00

85.00

64.3

(Note 1) Dividends for the Company’s shares held in the Employee Stock Ownership Plan (ESOP) Trust Account areincluded in Total Dividend Amount. (Fiscal year ended December 31, 2021: ¥43 million, Fiscal year ended
December 31, 2022: ¥48 million)(Note 2) In calculating dividend payout ratio and net assets-to-dividends ratio, the Company’s shares held in the
Employee Stock Ownership Plan (ESOP) Trust Account are included in the number of shares and the amountof net assets.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023 (January 1, 2023 to
December 31, 2023)(% indicates changes from the previous corresponding period.)

Net SalesFirst half
(Cumulative)
Full year

Operating Income

Ordinary Income

Profit Attributable to
Owners of Parent

Earnings
Per Share

million yen%

million yen%

million yen%

million yen%

yen

17,852

20.4

4,314

10.3

4,331

10.3

3,010

10.2

74.43

36,651

20.4

7,770

10.3

7,783

10.4

5,417

7.7

133.88

*Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scopeof consolidation): None
New: –
Excluded: –Notes on changes in significant subsidiaries during the period(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
Notes on changes in accounting policies, changes in accounting estimates and retrospective restatement(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of December 31, 2022: 41,389,300 shares
As of December 31, 2021: 41,389,300 shares2) Total number of treasury shares at the end of the period:
As of December 31, 2022: 1,005,871 shares
As of December 31, 2021: 1,024,738 shares
3) Average number of shares during the period:
Fiscal year ended December 31, 2022: 40,375,077 sharesFiscal year ended December 31, 2021: 40,429,828 shares
Notes on the total number of issued shares*These financial results are outside the scope of audit procedures by a certified public accountant or an audit firm.
*Disclaimer Regarding the Use of the Financial Results Forecast and Other Special Notes
The financial results forecast and other forward-looking statements in this document are based on information
currently available and certain assumptions the Company deems to be reasonable. Actual results may differ significantly
from these forecasts due to a variety of factors. For the assumptions used for the financial results forecasts and the notes
regarding the use thereof, please refer to “(4) Future Outlook” on page 5 of the attachment.

Table of Contents - Attachments
1. Overview of Operating Results, etc. ..................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review ................................................... 2(2) Overview of Financial Position for the Fiscal Year under Review .................................................. 4(3) Overview of Cash Flows for the Fiscal Year under Review ............................................................. 4(4) Future Outlook ................................................................................................................................. 5
2. Management Policy .............................................................................................................................. 6(1) Basic Management Policy ................................................................................................................ 6(2) Target Management Benchmarks ..................................................................................................... 6(3) Medium- to Long-Term Business Strategy ...................................................................................... 6(4) Issues to be Addressed ...................................................................................................................... 7(5) Promotion of Environmental Conservation, Social Contribution, and Health Management
Activities, and Efforts in SDGs, etc. ................................................................................................ 7
3. Basic Policy on Selection of Accounting Standards ............................................................................. 8
4. Consolidated Financial Statements and Principal Notes ...................................................................... 9(1) Consolidated Balance Sheets ........................................................................................................... 9(2) Consolidated Statements of Income and Comprehensive Income ................................................. 11(3) Consolidated Statements of Changes in Equity ............................................................................. 13(4) Consolidated Statements of Cash Flows ........................................................................................ 15(5) Notes to Consolidated Financial Statements .................................................................................. 17(Notes on going concern assumption) ............................................................................................. 17(Significant basis of preparing consolidated financial statements) ................................................. 17(Changes in accounting policies) .................................................................................................... 18(Changes in presentation) ............................................................................................................... 19(Additional information) .................................................................................................................. 19(Segment information, etc.) ............................................................................................................ 19(Per share information) ................................................................................................................... 24(Significant subsequent events) ...................................................................................................... 25-1-

1. Overview of Operating Results, etc.

(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended December 31, 2022, while the impact of COVID-19 softened, the Bank of Japan’s
Tankan Survey released in December indicated that business sentiment among large companies fell for the fourthconsecutive quarter with increasing uncertainty over the global economic outlook mainly in Europe and theUnited States due to factors such as the prolonged situation in Russia and Ukraine and global rise in prices
followed by a credit crunch.
Under these circumstances, although some foreign companies started to show moves to refrain from hiring
employees, in Japan, many companies were hiring employees for the regrowth of their businesses and securingof diverse human capital, and the jobs-to-applicants ratio remained robust. Due to this trend, the Domestic
Recruitment Business continued to be solid, resulting in strong sales for the Group overall during the period underreview.
In the Domestic Recruitment Business which accounts for about 90% of consolidated net sales, with asteady increase in the number of our consultants, net sales reached a record-high level during the period underreview. As for the number of our consultants, we strengthened the team in charge of hiring as part of our importantmeasures in 2022, and have successfully hired more than 20 consultants every month since past July. At the sametime, we have formulated the “JAC Standard” that all consultants of the Group must achieve, and reformed ourtraining program in line with the Standard. As a result, we achieved high productivity with a decreased turnoverrate of consultants, successfully realizing a record-high increase in the number of consultants. Furthermore, wehave continued to broadcast TV commercials that started in May, aiming to promote acquiring the target humanresources and increase the recognition of our brand. As a result, the number of visits to our Web site and new
registrations have increased, and we are beginning to see its effects in the increased recognition of the Company’s
name as well. Consequently, we started to run advertisements in trains and taxis in the Kanto area in October, in
addition to the TV commercials. In addition, we started to broadcast TV commercials in the Kansai area as well,as our efforts to strengthen regional sites since 2022 have also been proceeding steadily. Meanwhile, since
September, we have been participating in the IDEACTIVE JAPAN PROJECT, a business idea competition andhackathon event sponsored by Microsoft Japan Co., Ltd. and other companies, as a Global Human Resource
Development Partner. This participation is part of our measures we are strengthening to acquire human resourcesin the digital tech field, who are now in high demand. We are working to increase the recognition in the IT and
DX domains by holding seminars, workshops, and other events, in an effort to further expand our business.
Regarding the Overseas Business, despite the impact of COVID-19 still remaining in China, an earnings
recovery is underway in the regions including Europe, Singapore, Malaysia, and Indonesia, and we recorded
profit during the period under review.
In addition, as for the Domestic Job Offer Advertising Business, management strategies that revamped its
business model contributed to the improved profitability. As a result, the Company succeeded in recording profit
during the period under review.
While selling, general and administrative expenses landed almost in line with the forecasts, since April,
they have increased due to an increase in provision for bonuses reflecting strong business results, in addition to
the increased hiring of consultants, investment in hiring and education, and the broadcasting of the TVcommercials.
As a result, for the fiscal year ended December 31, 2022, net sales reached ¥30,435 million (up 22.5% year
on year). By segment, the Domestic Recruitment Business, the Domestic Job Offer Advertising Business, and theOverseas Business had net sales of ¥26,726 million (up 20.0% year on year), ¥356 million (up 44.8% year onyear), and ¥3,351 million (up 43.7% year on year), respectively.
In terms of profit, operating income was ¥7,044 million (up 21.0% year on year), ordinary income was¥7,052 million (up 21.3% year on year), and profit attributable to owners of parent was ¥5,029 million (up 29.5%
year on year). By segment, the Domestic Recruitment Business posted ¥6,872 million in profit (up 17.3% year
on year). The Domestic Job Offer Advertising Business posted ¥43 million in profit (compared with a loss of ¥73
million a year earlier), and the Overseas Business posted ¥95 million in profit (compared with a loss of ¥9 million
a year earlier).

-2-1) Analysis of net sales
Net sales in the Domestic Recruitment Business increased by 20.0% year on year to ¥26,726 million, due to anincrease in the number and improved productivity of consultants.
Net sales in the Domestic Job Offer Advertising Business increased by 44.8% year on year to ¥356 million,
due to successfully shifting from prepayment to success-based fees.
Net sales in the Overseas Business increased by 43.7% year on year to ¥3,351 million, due to progress in
the recovery of earnings mainly in Europe and Singapore.
As a result, net sales for the fiscal year ended December 31, 2022 increased by 22.5% year on year to¥30,435 million.
2) Analysis of operating income
Due to the increase in net sales in the Domestic Recruitment Business and others, gross income for the fiscal year
ended December 31, 2022 increased by 21.9% year on year to ¥28,043 million, and the gross income margin was
92.1%.
Selling, general and administrative expenses increased by 22.2% year on year to ¥20,999 million, due toan increase in personnel expenses owing to increased number of personnel and strong performance, as well as
strategic investment in advertising and investment in IT.
As a result, operating income for the fiscal year ended December 31, 2022 increased by 21.0% year on yearto ¥7,044 million, and the operating income margin decreased by 0.3 points year on year to 23.1%, remaining
almost flat.
3) Analysis of non-operating income and loss
Non-operating income for the fiscal year ended December 31, 2022 increased by 160% year on year to ¥39
million, due to the posting of items such as reversal of allowance for loan losses and gain on cancellation of leases.
Non-operating expenses increased by 28.1% year on year to ¥30 million, due to the posting of items such as
interest expenses and foreign exchange losses.
4) Analysis of profit before income taxes and profit attributable to owners of parent
Profit before income taxes for the fiscal year ended December 31, 2022 increased by 13.7% year on year to ¥41
million, despite the posting of extraordinary losses such as impairment losses. Total of income taxes - current andincome taxes - deferred increased only by 4.6% year on year to ¥1,981 million due to tax credit based on the Tax
Credit System for Promotion of Securing Human Resources.
As a result, profit attributable to owners of parent for the fiscal year ended December 31, 2022 increasedby 29.5% year on year to ¥5,029 million.
The following is the sales performance by segment for the fiscal year ended December 31, 2022:
Segment

Net sales (Million yen)Domestic Recruitment Business
Domestic Job Offer Advertising Business
Overseas Business
Total(Notes) Intersegment transactions were eliminated.

-3-Year-on-year comparison (%)

26,726

120.0

356

144.8

3,351

143.7

30,435

122.5

The following is the sales performance by segment and industry:
Segment/industry

Net sales (Million yen)

Year-on-year comparison (%)

1. Domestic Recruitment BusinessElectrical, machinery, chemical

9,148

128.4

Consumer goods, services

5,188

110.4

IT, telecom

4,499

108.7

Medical, healthcare

4,268

115.6

Financial services

3,392

138.5

229

134.7

26,726

120.0

356

144.8

Overseas Business Total

3,351

143.7

Total

30,435

122.5

Other
Domestic Recruitment Business Total
2. Domestic Job Offer Advertising
Business
Domestic Job Offer Advertising BusinessTotal
3. Overseas Business(Notes) Intersegment transactions were eliminated.

(2) Overview of Financial Position for the Fiscal Year under Review
Total assets at the end of the fiscal year ended December 31, 2022 increased by ¥3,148 million from the end of
the previous fiscal year to ¥22,084 million. Cash and deposits increased by ¥1,946 million, accounts receivable trade increased by ¥443 million, and property, plant and equipment increased by ¥326 million.
Liabilities increased by ¥929 million from the end of the previous fiscal year to ¥6,498 million. Accrued
expenses increased by ¥420 million, non-current liabilities increased by ¥192 million, and provision for stocks
payment increased by ¥170 million.
Net assets increased by ¥2,219 million from the end of the previous fiscal year to ¥15,585 million, and theequity ratio came out to be 70.6%. The Company posted profit attributable to owners of parent of ¥5,029 million,
but paid dividends of surplus totaling ¥2,990 million.
(3) Overview of Cash Flows for the Fiscal Year under Review
The balance of cash and cash equivalents at the end of the fiscal year ended December 31, 2022 increased by¥1,946 million from the end of the previous fiscal year to ¥14,879 million. The following is a summary of cash
flow activities.
(Million yen)

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Cash and cash equivalents at end of period

Fiscal year ended
December 31, 2021
5,091
(436)
(5,400)12,932

Fiscal year ended
December 31, 2022
5,913
(944)
(3,174)
14,879Changes
822
(507)
2,226
1,946

[Cash flows from operating activities]
Net cash provided by operating activities for the fiscal year ended December 31, 2022 was ¥5,913 million(compared with ¥5,091 million provided in the previous fiscal year). The main factors for this are profit before
income taxes of ¥7,011 million and income taxes paid of ¥2,261 million.

-4-

[Cash flows from investing activities]
Net cash used in investing activities for the fiscal year ended December 31, 2022 was ¥944 million (comparedwith ¥436 million used in the previous fiscal year). The main factor for this is purchase of intangible assets of¥408 million.
[Cash flows from financing activities]
Net cash used in financing activities for the fiscal year ended December 31, 2022 was ¥3,174 million (comparedwith ¥5,400 used in the previous fiscal year). The main factor for this is dividends paid of ¥2,986 million.
Reference: Trends in cash flow indicators

Equity ratio (%)
Equity ratio at fair value (%)
Cash flow vs. interest-bearing
debt (%)
Interest coverage ratio

Fiscal year
ended
December 31,
2018
74.0
406.3

Fiscal year
ended
December 31,
2019
78.3
395.2

Fiscal year
ended
December 31,
2020
76.4
416.6

Fiscal year
ended
December 31,
2021
70.6
444.2

Fiscal year
ended
December 31,
2022
70.6
444.2

–

–

–

–

–

28,220.2

280.4

240.5

302.4

267.2

Equity ratio: Equity/Total assets
Equity ratio at fair value: Market capitalization/Total assets
Cash flow vs. interest-bearing debt: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest payment(Notes) 1. Market capitalization is calculated as closing price at end of period X Shares outstanding at end of period(excluding treasury shares)
2. Cash flow indicates cash flow from operating activities on the consolidated statements of cash flows.
3. Interest-bearing debt covers all liabilities that bear interest recorded on the consolidated balance sheet.

(4) Future Outlook
While the global economic outlook, especially in Europe and the United States remains uncertain, Japanesecompanies are experiencing a strong sense of labor shortage. Accordingly, the Group will promptly develop
initiatives that will lead to the expansion and cultivation of market, centered around strengthening our bases andenhancing our brand power mainly in the Domestic Recruitment Business, while paying careful attention tochanges in the market. We will continue conducting market-centered business while focusing on increasing andretaining consultants, quickly training them to be productive workers, enhancing the rank-based education andsystems for management, and strengthening advertising to promote registration of job seekers and increase ourbrand recognition.
Regarding the consolidated financial results forecast for the fiscal year ending December 31, 2023, theCompany expects net sales of ¥36,651 million, operating income of ¥7,770 million, ordinary income of ¥7,783
million, and profit attributable to owners of parent of ¥5,417 million. Considering our internal reserves provided
for corporate acquisitions, we also plan to pay a year-end dividend of ¥85 per share.

-5-2. Management Policy(1) Basic Management Policy
The Group’s main business is recruitment consultancy. The Group has been connecting people, businesses, theeconomy and society and contributing to their growth by linking (introducing) professionals who play animportant role in the development of companies around the world.
The success of the professionals we connect leads to the progress of companies and eventually to the developmentof the economy. The economy develops, and in turn society develops as a result.
Every person we connect will connect to new people in new environments, leading to further personal growth.
Connecting our ambitions leads to the development of individuals, companies, society, nations and the world.
Based on our mission, we always aspire to company management with the following corporate goals.
1. Respect high quality and work with a high level of awareness.
2. Work to the highest level of satisfaction of both companies and job seekers.
3. Be a company that always makes speedy improvements and reforms.
4. Always aspire to be professional, continue to grow as an excellent company in profitability and profit growthrate, and aim to be an attractive company that can satisfy shareholders, customers, and employees.
(2) Target Management Benchmarks
In the recruitment business, which does not make many capital investments, we recognize that the growth rate ofprofit will result in increasing ROE and ROA; therefore, we regard ROE and ROA as the most importantbenchmarks.
(3) Medium- to Long-Term Business Strategy
Many Japanese companies are now globalizing, but because of its beginning in the United Kingdom, theCompany since its establishment has demonstrated superiority in recruiting not only for foreign companies, butalso for Japanese companies that are expanding their business globally.
In the past, the mobility of middle management and specialists in Japan was conceived to be lower than inEurope and the Americas. However, in recent years, due to the overseas expansion and other globalization ofJapanese companies as well as the government’s promotion of personnel mobility, mid-career hiring of workready personnel has increased, and the role of recruitment consultancy has rapidly increased. With its focus on
highly specialized positions, middle management to executive positions, and global human resources positions,
the Group has maintained a system as the industry leader that can respond to overseas personnel needs from large
to medium and small enterprises.
In addition, in Asia with its many emerging economies, the Group’s overseas locations have locallyprovided Japanese and foreign global companies with international recruitment services.
Going forward, we will position foreign companies, global business, global human resources, specialists,
executives, and regional revitalization as our core values. We will aim to maintain our position as the leader ofthis field in Japan and further expand. In addition, while working to improve the professionalism and service
level of every consultant, we will strive to increase organizational synergies with each of the Group companies
and expand our business.
We are recognized for our impeccable service and our ability to stably provide personnel to Japanesecompanies, as well as for our ability to provide international standard services to foreign and global companies.
We would like to increase the value of the Group by aiming to be a true industry leader both domestically andoverseas.
In order to firmly pursue the above strategy, along with expanding our business operations, we will also
improve both our management system and hiring of personnel. In line with our future medium-term expansion
plan, we will quickly proceed to train and secure the next generation’s leaders.

-6-(4) Issues to be Addressed
In the fiscal year ending December 31, 2023, the Domestic Recruitment Business will continue working toincrease the number of consultants and strengthen education and management, with the aim of expanding thebusiness over the medium- to long-term. In order to significantly increase the number of consultants, in addition
to the enhancement of hiring systems, education to quickly develop productive workers and reduce employee
turnover, as well as education for management according to the expansion of the size of our business are essential.
Since the previous fiscal year, we have been working on the “JAC Standard” that all consultants of the Group
must achieve. In fiscal 2023, we will promote the practice of the Standard at the management level as well, andthereby work to strengthen the education system. In addition, we will focus on the development of markets inlocal areas, including expansion and establishment of new locations, and plan to expand the areas to broadcast
TV commercials that were effective in acquiring job seekers.
Regarding the Domestic Job Offer Advertising Business, we will work to increase sales by promoting
success-based fees and renovation of our website for this purpose.
Regarding the Overseas Business, we will pursue stable growth in areas showing earnings recovery,
including Europe and Singapore. At the same time, we will work to raise the unit price of contracts and make ourbusinesses highly profitable by focusing on entry into developed countries, including the U.S. location establishedin December 2022. We will also consider closing existing unprofitable locations.
(5) Promotion of Environmental Conservation, Social Contribution, and Health Management Activities, andEfforts in SDGs, etc.
The Company has long been actively involved in activities that contribute to sustainable development.
The Group began an initiative in fiscal 2008 called PPP Project “One Placement Creates One Plant to Save
the Planet,” in which it plants one tree in designated areas of Indonesia and Malaysia for every person it places
into a new job. This embodies our hope that as the seedling grows, the job changer will also grow in his or her
new company and that the idea of social contribution will sprout in as many people as possible. In order to convey
the significance of this project to our employees, we provide opportunities for employees themselves to plant
trees in the designated forests. Working together with local students helps to raise awareness among employees.
(Due to COVID-19, employees were not sent to plant trees in the fiscal year ended December 31, 2022.) In
addition, from the perspective of SDGs, these forestation activities create jobs locally. The amount of greenhousegases absorbed by more than 120,000 trees planted to date is estimated to be a little less than 500 tons per year,
and the Group achieved net-zero carbon emissions target for Scope 1 and Scope 2 greenhouse gas emissions.
Moreover, in March 2022 Hiromi Tazaki, Co-Founder, Chairman, CEO and Managing Director of theCompany, founded “JAC Environmental & Animal Protection Foundation.” The Company supports the spirit ofand provide assistance to the Foundation. We intend to work on preserving the natural environment and protecting
animals in Japan through the activities of the Foundation.
In addition to these projects, in 2019 the Company switched business card material from recycled paper
containing used paper to LIMEX, a material with less environmental impact. We have also worked to foster a“plastic free” awareness by, for example, removing products in plastic PET bottles with a high environmental
impact from the vending machines installed in our offices. We have switched to paperless meetings,
internationally certified eco-friendly paper “FSC certified paper,” and recycled polypropylene folders. In addition,
we have distributed cloth eco-bags to all Group employees to use instead of plastic bags and shared thesignificance of this with them. Furthermore, in April 2022 we switched the electric power used at our Tokyo Head
Office to green electricity by 100%, in principle.
As part of the D&I Project, in order to take the initiative in promoting active social participation by women,
since 2007 we have implemented the Employee Childcare Support Project, which provides a fixed amountchildcare allowance to employees. In the fiscal year ended December 31, 2022, we provided dual-income couples
with up to ¥100,000/month (up to 9 months old) – ¥30,000/month (from the first to third year of primary school)per child. As a result, almost 100% of our female employees return to work after maternity leave, and the personal
performance of working mothers in consultant positions after returning is comparable to the company-wide
average. As a company, we have promoted and achieved a system that allows most consultants and staff members-7-

to balance work and childcare while continuing to build a career. In addition, the Company has set a target ofincreasing the percentage of female employees in managerial positions of the Company to 40% by the end of2025. The percentage as of December 2022 was 23%, which is significantly higher than the national average of
9% (according to study by TEIKOKU DATABANK in 2022).
The “Philosophy & Policy” of our management includes “Fairness: A company where employees areevaluated based on their capabilities and achievements. People who work at JAC are always given a fair chance.”
Based on this thinking, to ensure that LGBTQ employees can work with peace of mind, we have created a work
environment where diverse employees can play an active role, such as by making employees in same-sex
marriages and common-law marriages eligible for congratulatory and condolence payments.
As part of our philosophy, our employees aim to take care of both body and mind and to be individuals
who can play a significant role in the growth of client companies and people. With management-levelcommitment, we have implemented various company-wide health promotion activities. In order to enhance the
Healthy Challenge program, we have introduced a system to assist employees with sports club expenses, as wellas other initiatives such as providing health-conscious meals in the office. We are also aiming for a 0% smoking
rate Group-wide, and we subsidize the cost of smoking cessation treatment to achieve the target. In fiscal 2022,
for the fifth consecutive year, we were recognized under the Health & Productivity Management Recognition
Program by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi. We will continue toactively work on SDGs company-wide.
3. Basic Policy on Selection of Accounting Standards
Believing that applying IFRS would be of little advantage in the current situation, and considering the burden ofchanging to IFRS, the Group applies Japanese GAAP.
Concerning the future, the Group will appropriately respond while taking into consideration trends in IFRS
adoption by listed companies.

-8-4. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Million yen)
As of December 31, 2021

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Electronically recorded monetary claims - operating
Supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Lease and guarantee deposits
Claims provable in bankruptcy, claims provablein rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Long-term accounts receivable - other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of December 31, 2022

12,932
1,800
5
7
282
227
(14)
15,242

14,879
2,244

392
(243)
149
45
(29)
15
0
(0)

421
(220)
201
66
(35)
30
0
(0)

431
(353)
78
4
(1)
2
16
439
(282)
156
418

383
(237)
145
4
(2)
2
0
401
(36)
364
745

887
638
91
1,617

814
617
100
1,532

0
0
811

0
0
969

13

13

9
836
1
(15)
1,657
3,693
18,935

27
988
2
(16)
1,985
4,263
22,084

–

-9-

–

7
413
283
(7)
17,820–(Million yen)
As of December 31, 2021
Liabilities
Current liabilities
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Unearned revenue
Provision for stocks payment
Provision for contract cancellation
Refund liabilities
Other
Total current liabilities
Non-current liabilities
Lease obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 10 -

As of December 31, 2022

0
628
2,575
1,319
492
169
51
–
51
–
134
5,424

0
590
2,995
1,207
659
242
93
170
–
74
128
6,161

2
142
145
5,569

1
335
337
6,498

672
1,515
12,982(1,829)13,340672
1,514
15,022(1,793)
15,41525
25
13,36518,935169
169
15,58522,084

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances
Legal welfare expenses
Retirement benefit expenses
Provision for share awards
Provision of allowance for doubtful accounts
Rent expenses on land and buildings
Depreciation
Amortization of goodwill
Advertising expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Reversal of allowance for doubtful accounts
Gain on cancellation of leases
Insurance fee income
Rental income from facilities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

For the fiscal year ended
December 31, 2021
24,852
1,848
23,004- 11 -(Million yen)
For the fiscal year ended
December 31, 2022
30,4352,391
28,043

732
9,882
1,322
296
–
6
1,065
402
111
1,054
2,308
17,182
5,822

772
11,868
1,522
376
170
0
1,157
448
115
1,597
2,969
20,999
7,044

4
–
–
–
2
8
15

4
7
6
5
4
10
39

16
5
2
23
5,813

22
8
0
30
7,052

3
32
–
36
5,776
2,056
(162)
1,894
3,882
3,882

12
29
0
41
7,011
2,134
(152)
1,981
5,029
5,029

Consolidated Statements of Comprehensive Income

ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the fiscal year ended
December 31, 2021
3,882(Million yen)
For the fiscal year ended
December 31, 2022
5,029

108
108
3,991

144
144
5,173

3,991

5,173

–

–

- 12 -

(3) Consolidated Statements of Changes in Equity
Fiscal year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)(Million yen)

Shareholders’ equity
Capital stock
Balance at beginning of period
Changes of items during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at end of period

Balance at beginning of period
Changes of items during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at end of period

Capital surplus

619

1,569

52

52

Retainedearnings

Treasury shares

12,403(3,303)105(3,303)

3,882

3,882
(2,904)
1,363(2,904)
1,256

578
12,982(1,541)(1,829)(964)
13,340

Subscription
rights to shares

Total net assets

105

14,326(105)

0(3,303)

(107)

52
672

(54)
1,515

Accumulated othercomprehensive income
Total
Foreign currency
accumulated
othertranslation
comprehensive
adjustment
income
(83)
(83)

(288)

3,882
(2,904)
1,256
108

108

108
25

108
25

- 13 -

Total
shareholders’equity14,304

108
(105)
–

(960)
13,365Fiscal year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)(Million yen)

Shareholders’ equity
Capital stock
Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance
Changes of items during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at end of period

Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance
Changes of items during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at end of period

Capital surplus

672

1,515

Retainedearnings

Treasury shares

12,982(1,829)

1
672

1,515

12,983(0)
1,514

Accumulated othercomprehensive income
Total
Foreign currency
accumulated
othertranslation
comprehensive
adjustment
income25
25

1(1,829)(2,990)

5,029

5,029
(0)
36

(0)
35

2,038
15,02135(1,793)

2,074
15,415

Subscription
rights to shares

Total net assets–

13,365
1

25

25

–

13,367–(2,990)
5,029
(0)
35

144

144

144
169

144
169

- 14 -

13,341(2,990)

(0)

–
672

Total
shareholders’equity13,340

144
–
–

2,218
15,585

(4) Consolidated Statements of Cash Flows
For the fiscal year ended
December 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for stocks payment
Increase (decrease) in provision for contract cancellation
Increase (decrease) in refund liabilities
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Impairment losses
Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Short-term loan advances
Collection of short-term loans receivable
Purchase of long-term prepaid expenses
Payments of leasehold and guarantee deposits
Proceeds from collection of other investments
Net cash provided by (used in) investing activities- 15 -(Million yen)
For the fiscal year ended
December31, 2022

5,776
402
111
4
(5)
(4)
–
(4)
16
1
3
32
–
(664)
(6)
233
1,078
60
(20)
7,016
4
(16)
(1,912)
5,091

7,011
448
115
(6)
170
–
22
(4)
22
1
12
29
0
(439)
0
(90)
420
166
313
8,192
4
(22)
(2,261)
5,913

(32)
(288)
(18)
20
(12)
(106)
0
(436)

(312)
(408)
(38)
37
(28)
(195)
0
(944)

For the fiscal year ended
December 31, 2021
Cash flows from financing activities
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights
Dividends paid
Repayments of lease obligations
Proceeds from disposal of treasury shares
Purchase of treasury shares
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 16 -For the fiscal year ended
December31, 2022
0–(3,299)(0)993(2,904)(189)(5,400)94(651)
13,584
12,932(2,986)
(0)
–
(0)
(186)
(3,174)151
1,946
12,932
14,879(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Significant basis of preparing consolidated financial statements)
1. Scope of consolidation
Number of consolidated subsidiaries: 22
Names of main consolidated subsidiaries
JAC International Co., Ltd.
C.C. Consulting Co., Ltd.
VantagePoint K.K.
JAC Recruitment International Ltd.
2. Scope of equity method
Not applicable.
3. Fiscal year-end, etc. of consolidated subsidiaries
The fiscal year-end of consolidated subsidiaries is the same as the consolidated fiscal year-end.
4. Accounting policies(1) Valuation methods for assets
Securities
Other securities:
Shares, etc. that do not have a market priceStated at cost determined by the moving average method.
(2) Depreciation and amortization of significant assets
1) Property, plant and equipment (excluding leased assets)
The Company and its domestic consolidated subsidiaries apply the declining-balance method. However,auxiliary facilities attached to buildings and structures acquired on or after April 1, 2016, are depreciatedby the straight-line method.
Overseas consolidated subsidiaries apply the straight-line method.
The main useful lives are as follows:
Buildings:
3-15 years
Machinery and equipment: 7 years
Tools, furniture and fixtures: 2-20 years
2) Intangible assets (excluding leased assets)
The straight-line method is applied. Internal use software is amortized over its internal estimated usefullife (3-5 years).
3) Leased assets
The straight-line method is applied assuming the lease periods as useful lives with no residual value.
(3) Recognition standards of significant allowances
1) Allowance for doubtful accounts
To cover losses from bad debts for accounts receivable - trade, etc., an allowance for doubtful accounts
is provided based on historical experience of bad debts for general receivables and on an estimate of thecollectability of certain receivables deemed doubtful of collection.
2) Provision for stocks payment
To cover employee stock payments based on the Share Delivery Rules, the Company records a provision
for stocks payment based on the estimated amount of share payment obligations as of the consolidatedbalance sheet date.

- 17 -

(4) Standards for recording significant revenues and expenses
1) Recruitment BusinessIn the recruitment service, we have obligations to introduce candidates primarily for permanent positions
to client employers. We recognize success-based consulting fees as revenue when the candidates join
the client employers. We receive consideration for the transaction generally within one month from thetime when the performance obligations were fulfilled.
In the Recruitment Process Optimisation service, we have obligations to support client employers intheir recruitment activities primarily for permanent employees. The service is provided over a contract
period, and we recognize revenue on a pro rata basis over the contract period, judging that our
performance obligations are fulfilled with the lapse of time. Consideration for the transaction is received
in a phased manner, generally according to the progress of the performance obligations, in accordancewith the terms and conditions of transactions.
2) Job Offer Advertising BusinessIn the Job Offer Advertising Business, we have obligations to post job offers primarily for permanent
positions solicited from client employers on job offer advertising websites. We concurrently use a
prepayment method in which we recognize revenue when we are awarded a contract and a success-based
method in which we recognize revenue when a job seeker joins a client employer via a job offer
advertising website. We receive consideration for the transaction generally within one month from thetime when the performance obligations were fulfilled.
(5) Translation standards of significant assets and liabilities in foreign currency
Assets and liabilities of overseas consolidated subsidiaries are translated into yen at the rates of exchange in
effect at the consolidated balance sheet date, and revenue and expense accounts are translated at the average
rates of exchange in effect during the fiscal year. Differences arising from the translation are presented astranslation adjustments in the net assets section.
(6) Method and period of amortization of goodwill
Amortized using the straight-line method over 10 to 12 years.
(7) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn at any time, andshort-term investments with a maturity of three months or less when purchased which can easily be converted
to cash and are subject to little risk of change in value.
(Changes in accounting policies)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020), etc. (the “Revenue Recognition Standard”) from the beginning of the fiscal year under review, andrecognizes revenue in the amount expected to be received in exchange for promised goods or services at the time
when the control of these goods or services is transferred to the customer. Due to the application of the Revenue
Recognition Standard, recruitment fee revenue amounts expected to be refunded in the future, which theCompany previously included in the provision for contract cancellation, are now recognized as refund liabilities.
The Company applies the Revenue Recognition Standard, etc. in accordance with the transitional treatment
provided for in the proviso to Paragraph 84 of the Revenue Recognition Standard. The cumulative impact ofretrospectively applying the new accounting policies to prior periods is adjusted to retained earnings at the
beginning of the fiscal year under review, with the new accounting policies applied from the beginning balance.
The impact resulting from this change on profit (loss) for the fiscal year under review and the beginningbalance of retained earnings is immaterial.
In accordance with the transitional treatment set forth in Paragraph 89-2 of the Revenue Recognition
Standard, figures for the previous fiscal year have not been reclassified based on the new presentation method.
In addition, in accordance with the transitional treatment set forth in Paragraph 89-3 of the Revenue
Recognition Standard, information on the disaggregation of revenue from contracts with customers for theprevious fiscal year is not presented.
(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July4, 2019), etc. (the “Fair Value Standard”) from the beginning of the fiscal year under review, and it has applied
the new accounting policy set forth by the Fair Value Standard, etc. prospectively in accordance with thetransitional treatment provided in Paragraph 19 of the Fair Value Standard and Paragraph 44-2 of the “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This change has no impact on the
consolidated financial statements.

- 18 -

(Changes in presentation)(Consolidated statements of income)“Gain on forfeiture of unclaimed dividends” and “refund income” which were presented as separate accounts
under “Non-operating income” in the previous fiscal year, have been included in “Other” under “Non-operating
income” in the current fiscal year due to their decreased financial materiality.
“Gain on forfeiture of unclaimed dividends” and “refund income” under “Non-operating income” in the
consolidated financial statements for the fiscal year under review were ¥2 million and ¥1 million, respectively.
(Additional information)(Transactions to deliver shares of the Company through a trust to employees)
The Employee Stock Ownership Plan (ESOP) Trust Program, an incentive plan for employees, was introducedin August 2015 for the purpose of enhancing employee benefits and increasing the Company’s medium- to longterm corporate value, but due to its termination in March 2021, it was re-introduced in May 2021.
(1) Transaction summary
Pursuant to the established Share Delivery Rules, the Company grants points to employees who satisfy certain
requirements, and shares of the Company equivalent to these points are delivered. The shares delivered to
employees, including those to be delivered in the future, are purchased by cash held in the trust, managed
separately as trust assets.
(2) Company shares remaining in the trust
Shares of the Company remaining in the trust are recorded as treasury shares under net assets based on thebook value in the trust (excluding incidental expenses). The book value and the number of said treasury shareswere ¥287 million and 279,410 shares, respectively, as of December 31, 2021, and ¥1,017 million and 600,080
shares, respectively, as of December 31, 2022.
(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The reportable segments of the Group are components for which separate financial information is available andare the subject of regular review by the Board of Directors to determine the allocation of management resourcesand evaluate performance.
The Group is engaged in the Domestic Recruitment Business, the Domestic Job Offer Advertising Business,and the Overseas Business. The Group has 10 domestic offices and two subsidiaries in the Domestic Recruitment
Business, one domestic subsidiary in the Domestic Job Offer Advertising Business, and 19 subsidiaries in 12
countries and regions in the Overseas Business. As management resources are allocated to each business,reportable segments are presented according to business unit.
2. Method of calculating amounts of net sales, profit (loss), assets, liabilities, and other items by reportable segment
In principle, the accounting method for reportable segments is the same as described in “Significant basis ofpreparing consolidated financial statements.” Inter-segment sales and transfers are based on prevailingmarket prices.
The Group does not allocate assets to business segments as asset information is not used for managing
performance.

- 19 -

3. Information on net sales, profit (loss), assets, liabilities, and other items by reportable segment
For the fiscal year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

Net sales to outside
customers
Intersegment net sales ortransfers

22,273

246

15

Total

Segment total

Adjustment

2,332

24,852―

24,852

17

5

39

(39)

―

22,289264

2,338

24,891(39)

24,852

5,859

(73)

(9)

5,776

―

5,776

Depreciation

259

1

142

402

―

402

Amortization of goodwill

74

―

37

111

―

111

Interest income

0

0

3

4

―

4

Interest expenses

0

―

16

16

―

16

Extraordinary losses

3

8

23

36

―

36

(Loss on retirement of noncurrent assets)

3

―

―

3

―

3

(Impairment losses)

―

8

23

32

―

32

Overseas
Business

Total

Net sales

Segment profit (loss)
Other items(Note)

Segment profit (loss) is consistent with the profit before income taxes in the consolidated statements of income.

- 20 -

For the fiscal year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

26,215

217

511

Segment total

Adjustment

2,360

28,793―

28,793

139

991

1,642

―

1,642

26,726356

3,351

30,435―30,43526,726356

3,351

30,435―30,435

19

18

19

56

(56)

―

26,746375

3,371

30,492(56)

30,435

6,872

43

95

7,011

―

7,011

Depreciation

289

―

159

448

―

448

Amortization of goodwill

74

―

41

115

―

115

Interest income

0

0

3

4

―

4

Interest expenses

0

―

22

22

―

22

Extraordinary losses

8

―

33

41

―

41

(Loss on retirement of noncurrent assets)

8

―

4

12

―

12

(Impairment losses)

―

―

29

29

―

29

Overseas
Business

Total

Net sales
Goods transferred at apoint in time
Goods transferred overtime
Revenue from contracts
with customers
Net sales to outside
customers
Intersegment net sales ortransfers
Total
Segment profit (loss)
Other items(Loss on valuation of
0
―
―
0
―
0
investment securities)(Notes) 1. Segment profit is consistent with the profit before income taxes in the quarterly consolidated statements ofincome.
2. The figures for the Domestic Recruitment Business reportable segment and the Overseas Business reportablesegment include amortization of goodwill of ¥74 million and ¥41 million, respectively.

4. Information on impairment losses on non-current assets and goodwill by reportable segment(Significant impairment losses on non-current assets)
The Overseas Business reportable segment posted impairment losses of ¥29 million for the fiscal year ended
December 31, 2022.

- 21 -

[Related information]
For the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)
1. Information by product and service
This information is not provided here because it is the same as the information provided under “Segment
information.”
2. Information by geographical area
(1) Net sales
Japan

Asia

(Million yen)Total
24,852Europe22,5192,058(Note) Net sales are segmented into country or region based on customer location.

273(2) Property, plant and equipment
Japan
219

Asia
(excluding Thailand)
135(Million yen)
ThailandEurope
42

Total
21

418

3. Information by major customer
This information is not provided here because there were no customers that accounted for 10% or more of the
net sales recorded in the consolidated statements of income.
For the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)
1. Information by product and service
This information is not provided here because it is the same as the information provided under “Segment
information.”
2. Information by geographical area
(1) Net sales
Japan

Asia

(Million yen)Total
30,435

Europe27,083
2,957(Note) Net sales are segmented into country or region based on customer location.

394(2) Property, plant and equipment
Japan
309

Asia
(excluding Singapore)
106(Million yen)
Singapore

Europe
308

Total
19

745

3. Information by major customer
This information is not provided here because there were no customers that accounted for 10% or more of the
net sales recorded in the consolidated statements of income.

- 22 -

[Information on impairment losses on non-current assets by reportable segment]
For the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)
Reportable segment
Domestic Domestic Job
Offer
Recruitment Advertising
Business
Business
Impairment losses―

8

Overseas
Business(Million yen)

Corporate orReportable elimination ofsegments total inter-segment
transactions

23

32

―

For the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)
Reportable segment
Domestic Domestic Job
Offer
Recruitment Advertising
Business
Business
Impairment losses――

Overseas
Business

29

Domestic Job
Domestic
Offer
Recruitment
Advertising
Business
Business
Balance at end of period

592―

Overseas
Business887

29(Million yen)

Corporate orReportable elimination ofsegments total inter-segment
transactions

294

Total

―

[Information on amortization of goodwill and unamortized balance by reportable segment]
For the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)
Reportable segment

32(Million yen)

Corporate orReportable elimination ofsegments total inter-segment
transactions

29

Total

―

Total

887

(Notes) 1. Amortization of goodwill is not provided here because it is the same as the information provided under“Segment information.”
2. ¥18 million of impairment losses on goodwill are recorded in the Overseas Business reportable segment.

For the year ended December 31, 2022 (from January 1, 2022 to December 31, 2022)
Reportable segment
Domestic Job
Domestic
Offer
Recruitment
Advertising
Business
Business
Balance at end of period(Note)

518―

Overseas
Business(Million yen)

Corporate orReportable elimination ofsegments total inter-segment
transactions

295

814

―

Total

814

Amortization of goodwill is not provided here because it is the same as the information provided under “Segment
information.”[Information on gain recognized on negative goodwill by reportable segment]
Not applicable.

- 23 -

(Per share information)(Yen)

Previous fiscal year
(From January 1, 2021 to December 31, 2021)

Current fiscal year
(From January 1, 2022 to December 31, 2022)

Net assets per share331.13

Net assets per share

385.93

Basic earnings per share

96.02

Basic earnings per share

124.57

Diluted earnings per share

96.01

Diluted earnings per share―(Note) 1. The basis for calculation of net assets per share is as follows.
Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

13,365

15,585

Amounts deducted from total net assets (Million yen)――[Subscription rights to shares (Million yen)]

[―]

[―]

13,365

15,585

Number of outstanding common shares

41,389,300

41,389,300

Number of treasury shares of common shares

1,024,738

1,005,871

Number of common shares used to calculate net assets per
share

40,364,562

40,383,429

Total net assets (Million yen)

Net assets attributable to shares of common shares(Million yen)

2. The basis for calculation of basic earnings per share and diluted earnings per share is as follows.
Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

Basic earnings per share
Profit attributable to owners of parent (Million yen)Amount not attributable to common shareholders(Million yen)
Profit attributable to owners of parent relating tocommon shares (Million yen)
Average number of common shares during the period

3,882

5,029

―

―

3,882

5,029

40,429,828

40,375,077

―

―

4,585

―

[4,585][―]

Diluted earnings per share
Adjustments of profit attributable to owners of parent(Million yen)
Increase in number of common shares[Number of subscription rights to shares]
Anti-dilutive shares excluded from calculation of diluted
earnings per share―

3. Diluted earnings per share for the fiscal year ended December 31, 2022 are not presented as there were no
dilutive shares.
4. The shares of the company remaining in the trust, which are recorded as treasury shares under shareholders’equity, are included in the treasury shares to be deducted in the calculation of average number of shares
during the period for the purpose of calculating basic earnings per share and diluted earnings per share,
and are also included in the number of treasury shares to be deducted from the total number of shares
outstanding as of the end of the period for the purpose of calculating net assets per share.
The average number of treasury shares during the period deducted for the purpose of calculating basic- 24 -

earnings per share and diluted earnings per share is 418,226 shares for the fiscal year ended December 31,
2021 and 600,080 shares for the fiscal year ended December 31, 2022. The number of treasury sharesdeducted at the end of the period for the purpose of calculating net assets per share is 600,080 shares forthe fiscal year ended December 31, 2021 and 600,080 shares for the fiscal year ended December 31, 2022.
5. The “Accounting Standard for Revenue Recognition,” etc. has been applied as stated in “Changes inaccounting policies.” The impact resulting from this change on net assets per share and basic earnings per
share for the fiscal year under review is immaterial.
(Significant subsequent events)
Not applicable.

- 25 -