UT Group INTEGRATED REPORT2021

UT Group
INTEGRATED REPORT

https://www.ut-g.co.jp/

UT Group’s “Integration Report 2021” is structured to provide an orderly understandingof the development and current status of the worker dispatch market, UT's progress
and value creation process, and medium- to long-term plans, while linking them to the
Essence of UT Group as shown below.
It is also possible to start reading from the specific initiatives of the Essence of UT Group.

The Essence of UT GroupCONTENTS

Theme Category

Key Themes and Initiatives

Materialities

A B
A B

Policy on Value Creation
Basic Policy on Individual
Dignity and Growth

Value creation activities torealize the mission C

We respect and are engaged
with each worker and continue tocreate an environment where
workers can vigorously work.

Purpose A

Mission B
VisionValues

We continue to lead the staffing
industry from the perspectiveof workers, without being
constrained by legacy customs.

Basic Policies on
Organizational
Governance
Basic Policy on Corporate Governance
Basic Policy on Sustainability
Basic Policy on Stakeholder Engagement
Basic Policy on Internal Control System
Basic Policy on Risk Management
Basic Policy on Compliance
Basic Policy on Information Security

17
19

Securing oftalented people

We foster a corporate culture that
respects each individual,
and maintain an open and faircorporate attitude.

21

Diversity andinclusion

C

Basic Policy on
Environmental Policy

We recognize our impact
on the natural environment
and appropriately control it.

Challenges that must be addressed to grow

23

UT Group’s value creating process25

Nurturing people who support Japan’s
manufacturing―Business strategy

27

Business development in three segments

29

Strengthening competitiveness in the personnel
dispatch business

31

Expanding UT’s share of dispatched workplaces
through support for personnel mobilization

Health and safetyof associates

C
D
D
E

33

For workers, from the workers’ viewpoint―The enhancement of the business baseand growth strategies

35

UT Group’s unique value chain

37

Efforts to strengthen the value creation base41

Voices from UT associates

45

UT Group’s future depicted in the Fourth
Medium-term Business Plan

47
49

Aiming to further increase the value of workers
Expanding and enhancing business areas
mainly by M&As

Corporate
governanceF

Environmental-friendly
sustainable business
management

Progress of UT Group which continues to pursue

together with workers

Business ethics

Appropriate
environmental
considerations

The worker dispatch market up to now andvalue enhancement for workers

Code of Conduct

Fair and transparent
organizational controls F

Changes in the worker dispatch market andin the future

Data security

Organizational support
and business baseto support value
creation activities

Top message

progress of UT Group

Appropriate
work practices

Continued strengtheningof business base E

One-to-One Spirit

09
15

Development of
human resources

Individualsʼ potential
to be broadened D

03

Development ofenvironmental policies
and environmental
management

51

UT Group today―Financial and non-financial highlights

53

Financial position and operating results FY3/2021

56

Sustainability indices (non-financial KPIs)

57

10-year financial data

59

Responsibilities to be fulfilled for
associates and client companies―Corporate governance

61

Policy on Corporate Governance64

Messages from Outside Directors

68

UT Group’s IR activities

69

Team of Board Directors and Audit & Supervisory
Board Members

70

Team of Executive Officers

71

Corporate profile and stock information74

In issuing of the Integrated Report 2021

In FY3/2021, when the COVID-19 pandemic hit the world, we reconfirmed thefour values that we at UT Group have cherished while protecting our associates* and workplaces.
The phrase “One-to-One Spirit” was derived from this process.
Presented here are voices of our associates in workplaces where they standby people and stay face to face with them.
* Note: UT Group has decided to use the term “associate” to describe its “employees”. This is to more accurately express how
its people are positioned in UT Group: In addition to getting paid to work, they can also become its shareholders, can be promoted to the management, and are regarded as its customers in the Twin Customer Strategy.

One-to-One SpirittoWe stand by people
and stay face to facewith them.
We contribute to the growth of clients through the growth of our associates.
Our business is only possible when our associates receive high expectations
and are highly valued.
Through those associates, we contribute to our clients’ business and society.
While our services are invisible and intangible, UT Group works for clients andfor society through the action taken by each of UT Group’s associates.
With that in mind, each of us will continue to act autonomously and strive forself-improvement on the basis of our Four Values.
In the One-to-One Spirit, each of us stands by each other and stays face to facewith each job, task, and desire.

UT Group’s Four Values

Presence: Increase your presence
Believe and broaden the potential of each individual.

Fairness : Stick to fairness
Share the perspective of workers and always act correctly.

All for one: Exceed the simple sum of targets, by a team effort
Utilize our diverse organization for each and every one.

Challenging: Take up the challenge
Set high goals and aspirations and take up the challenge.

I would like to share withmany colleagues the joy oftackling a big goal together.

Urged by a desire toincrease my own value,
I moved into the unknown worldof the semiconductor industry.

Presence｜Increase your presence

All for one｜Exceed the simple sum of targets, by a team effort

In the fourth year at UT Aim, when I wanted to change myself in a new environment, I encountered the job of a semiconductor manufacturing equipment

Takahiko ISHIBASHI̶The appeal of working in the UT Group is that you work toward high goals
with your colleagues and feel the joy of achieving them.

engineer.

Joined UT Aim Co., Ltd. in 2017

In order to realize this, I, as an on-site manager, have strived to clearly com-

I had neither experience nor knowledge but I roused myself to take up thisCurrently, Iwate Kitakami CF

municate the vision of the top management to those in the workplace.

challenge to “increase my value.”

Manufacturing North Japan

Sharing goals with each and every associate* helps unite the workplace.

After eight months since being assigned to a workplace after training, I feelBusiness Unit,

that my potential has expanded as more tasks are assigned to me.

̶Joined UT Pabec Co., Ltd. in 1997
Currently, Office Manager of Kosai
Office, andSenior Manager of Shonan Branch,
Product Service Head Office

Note: “Associate” is a term UT Group has decided to use to describe its employees.

As a manager,
I have secured the opportunity
for each associate to playempowered and vigorous roles.

Fairness｜Stick to fairness
As a manager leading 400 technical associates, I try to make them aware of
their strengths.
This is because if they have a solid skill, they can live wherever they go.
I would like to convey my core ideas to the next generation so that all associates can maintain an environment where they can all work with empowerment and vigor.

My desire is to have more colleagues overcome challenges together in a team.

Yuri KINOSHITA

Koji ANDO̶

Everyday at UT is to me a historyof challenges.
My dream is to start up a business
in which non-Japanese workers
work vigorously.

Challenging｜Take up the challenge
Everyday at UT is to me a history of challenges.

Thiha SOE

Joined UT Aim Co., Ltd. in 2007

Since the first year at UT Aim, I have undertaken various assignments, in-Currently, Career Manager of Kokubu

cluding proposals for new businesses, sales in Japanese, and training of for-

Joined UT Aim Co., Ltd. in 2017eign technical interns.

Currently, East Japan Business

CF and Higashi Kumamoto CF, andManager of the First Group, Second
Section of Kyushu,
Manufacturing Kyushu
Business Unit

My dream is to start up a new business utilizing non-Japanese workers.
And eventually, I would like to become a business person who can serve as abridge between my home country, Myanmar, and Japan.

̶Section,Global Business Unit

07

The Essence of UT Group

PurposeWe at UT Group aim to realize a society in which all
people who are willing to work are equally given
opportunities for skill development and careerformation, and are treated fairly.

Our Mission

Create vigorous workplaces
empowering workers

Create vigorous workplaces empowering workers

Mission

We, UT Group, have grown since our foundation with a focus on realizing ourworkers’ personal growth and reassurance in their lives.
The power of working really brings us a variety of empowerment.
The power of working brings us reassurance in life.

VisionBecoming the company with a future workstyleplatform

Values

One-to-One Spirit
We stand by people and stay face to face with them

The power of working brings us bonding in society.
And the power of working sometimes helps us realize our potential, which we
could not have imagined ourselves.
It gives us the joy of living up to dreams and aspirations that had been given
up or forgotten.
We offer opportunities for skill development and career formation to people
who are willing to work. We also build a “good place to work” with our clients,
and continually increase the number of people who are aware of their potential and who live their lives seriously.
We believe that increasing the number of such individuals and increasing theoverall sum of individuals’ empowerment end up helping our clients’ busiBasic Policy on Corporate Governancenesses to grow and ultimately contributing to society.

Basic Policy on Sustainability

Basic Policies on
Organizational Governance

Basic Policy on Stakeholder Engagement
Basic Policy on Environmental Policy
Basic Policy on Internal Control System
Basic Policy on Risk Management
Basic Policy on Compliance
Basic Policy on Information Security

Policies on Value Creation

Basic Policy on Individual Dignity and Growth

08

09

10

Essence of UT GroupIn FY3/2021 we made a great advance by protecting the employment
and the workplaces in the midst of unprecedented COVID-19 crisis.
I would like to express my heartfelt sympathy to those affected by the COVID-19 infections and appreciate the medical workers and others who have supported the social infrastructure. I would also like tothank all our shareholders and stakeholders for supporting us in these circumstances.
The COVID-19 pandemic has transformed the society. In fiscal year ended March 31, 2021, we kept
our eyes open for changes in business conditions in the midst of the unprecedented COVID-19 crisis. We
were particularly hit hard in the first quarter, from April to June 2020. Numerous factories of our clientcompanies suspended operations and our 4,000 associates in total were forced to be on standby. Without knowing an extent of the impact, I remember that we considered multiple response measures, evenassuming a scenario of sales to shrink by half.
Fortunately, the situation has quickly improved since July in the second quarter. Demand for humanresources, particularly in the automotive-related sector and the semiconductors and electronic parts
sector, resurged, which led us to achieve a V-shaped recovery that exceeded our expectations in the second half (2H) of the fiscal year, which started in October.
In such an extremely difficult situation in the first half (1H), the UT Group devoted to taking care of
its associates and client companies, upholding its corporate-wide mission of protecting employment
and the workplaces. By maintaining employment without hesitation, we were able to quickly respond toa resurging demand for personnel in 2H. Client companies reached a full recovery phase in production
activities and their demand for personnel exceeded our expectations. We therefore made corporate-wide
efforts in hiring with a target of 1,000 new hires per month. This resulted in hiring approximately 5,600
people in 2H. Combined with additional employees from the acquired companies, our number of technical associates at the end of FY3/2021 reached 23,736, significantly renewing the record high. Despite
the COVID-19 pandemic, we thus achieved record-high sales in FY3/2021. Our rapid response to changes, I believe, was the key for such great results.

“One-to-One Spirit” became the criterion for judgment during thechanging phase
I always think that “responding to change” is an essential part of management. How a company acts inthe time of a change in the environment manifests an important characteristic of the company. UT Group
has a history of overcoming difficult business conditions, such as the IT recession around 2001 and theTop message

Even during the COVID-19 crisis, we aimed to increase
our market share by flexibly responding to
the changing business environment while protecting
employment of each associate* .
Yoichi Wakayama
President, Representative Director and CEO
UT Group Co., Ltd.

global financial crisis in 2008. In fact, UT Group has used significant changes in society as a catalyst for
its great advance.
Whenever I face change, I go back to our values, “One-to-One Spirit,” and our mission, “Create vigorStable growth, driven by a rock solid business portfolio, despite the COVID-19 pandemic
Sales by segment (million yen)
＋126%

35,00030,000companies
・2Q: Consolidation of one Hitachi Group com-pany

25,000・Increase in sales of existing operating com-panies (UT Pabec, UTHP)

20,000▲6％

15,0000
1Q

Manufacturing and Engineering
Businesses＋30%

Enhanced hiring
Impacts of work
activities incancelation due toresponse to earlyclientsʼ operationsuspension, caused by recovery in demand
the COVID-19 impact

10,0005,000

Note: “Associate” is a term UT Group has decided to use to describe its employees.

Solution Business・1Q: Consolidation of three Toshiba Group

Captured major manufacturersʼ
demand in mobilization of theirpersonnel

2Q
3Q
FY3/2020

4Q

1Q

2Q
3Q
FY3/2021

4Q

・1Q: Affected by clientsʼ operation suspension
・2Q: Affected by reductions and cancellationsof work due to clientsʼ production adjustments
・3Q: Order recovery due to clientsʼ production

recovery・4Q: Accelerated hiring due to growth inorders11

Respond to change. This is what corporate
management is all about.

12

Essence of UT Groupous workplaces empowering workers.” We stand by and stay face to face with each and every associate,

demic, we were scarcely affected even though several of our client companies adjusted their production

and focus on creating vigorous workplaces, in order to provide higher value to our clients. Even during

activities again.

the COVID-19 crisis, we adhered to these values and acted on the basis of these values. I believe this has
enabled us to overcome this difficult situation.

Looking back at FY3/2021, despite somewhat being affected by some clients’ operation suspension,
we took advantage of a rapid recovery in production activities. This led to an increase in share and a re-

UT Group, founded in 1995, has consistently been working to improve the treatment of dispatchedcord-high sales level. I am pleased that our efforts resulted in attaining such results.

workers and raise their skills. We created a business model in which we dispatch our regular associateunder open-ended (indefinite) employment contract to production sites of client companies in the manufacturing industry. We arranged for all associates to be fully covered by social insurance ̶ not following
the dispatch industry’s practice of not insuring dispatched workers ̶ and established a career forma-

Three growth strategies of the Fourth Medium-term Business Plan
were given attention during the COVID-19 pandemic

tion support system aimed at associates’ skill development and growth. Subsequently, we introduced a

In May 2020, UT Group launched the Fourth Medium-term Business Plan for the five-year period from

“Twin Customer Strategy” with the aim of becoming a company chosen not only by manufacturing com-

FY3/2021 to FY3/2025 and has since been promoting it. The plan has identified three growth strategies

panies (clients) but also by workers. We have since endeavored to increase the value of workers by pro-―“One-Stop Strategy for Major Manufacturers,” “Area Platform Strategy” and “Solution Strategy” underviding various support using the three keywords “Reassurance, Bonding and Growth.” The management

the medium-term management goal “Create a 'diversity & inclusion’ workstyle platform.” Interestingly,

decision to maintain employment rather than seek profit during the COVID-19 pandemic was based on

due to the COVID-19 pandemic, I believe our three strategies have become more aligned with the needs

our long-accumulated “One-to-One Spirit” that we have abided by since our foundation.

of society.
Let me walk you through the three strategies and give their update. First, the “One-Stop Strate-

The “Top Share Strategy” adopted after the global financial crisis
proved to be successful

gy for Major Manufacturers” is to provide a one-stop set of services, from manufacturing operators to
manufacturing engineers in charge of production technology and equipment maintenance, based on ourstrong relationship with the leading manufacturers, which have been our conventional partners. We ex-

We have made good use of our experience in the global financial crisis of 2008 in our recent thoroughpect that our expanded service range helps our on-site associates to advance their career and that high-response to client companies. The shutdown of client plants was much more advanced and severer

ly-motivated associates may also benefit from access to a career path to become highly-skilled design

back in 2008 than in the COVID-19 crisis. Back then, dispatch contracts were immediately canceled, andand development engineers. This also directly links to the “Top Share Strategy” in the client factories.

the “layoff of dispatched workers” even became a social issue. Looking at the data of that time, we foundNowadays clients demand dispatched companies not only to provide the service of large mobilizationthat the contract of a dispatched company with a high work share in the client’s plant was not termi-

of workers but also higher-value-added workers and compliance. Demand for development of workers

nated. A high share in the factory reflects high evaluation by our clients. After the 2008 crisis, we had

is particularly high, and we also focus on this. As an example, we have established the Technology Skill

executed the Top Share Strategy that remained in place for over ten years. There are several conditions

Development Centers as a base for developing specialized engineers on our own in the rapidly-expand-

to be satisfied for there to be an increase in the share of the work in a client’s factory. First, the ability to

ing semiconductor sector. After the opening of a center in Kitakami City, Iwate Prefecture in December

mobilize a large number of high-quality workers. Second, dispatched workers need to ensure compli-

2020, we have opened three more centers across Japan developing semiconductor manufacturing

ance in the workplace. While this was quite a challenge for small dispatch companies, we have steadilyequipment engineers. With the goal of nurturing and producing 3,000 engineers in three years, we are

increased our share by maintaining a virtuous cycle of large-scale hiring, development of hired person-

committed to meeting the high needs of client companies.
Next, on the “Area Platform Strategy.” This is to provide a variety of “working opportunities” in eachnel, compliance education, and mass mobilization.
Furthermore, unlike many dispatch companies which diversified their business as a risk hedge, we

region in response to the desire of job seekers to work in their local area. In order to achieve this goal,

chose to become closer to major clients in manufacturing. Our strategy was to work closely with clients,

we are actively promoting business alliances and M&As with leading local dispatch operators, strength-

to focus on dispatching quality workers, and to help increase the value of them and us. This strategy

ening our local hiring capability, and establishing a stable employment environment. Another aim behindproved to be successful to make us become the fastest-growing company in the manufacturing dis-

this strategy is to implant compliance awareness on the part of small and medium-sized local operators

patching industry over the years after the global financial crisis. And at this time of the COVID-19 pan-and promote the soundness of the dispatch industry as a whole by ensuring their business in their re-Twin Customer Strategy

Three growth strategies
Supply high-skilled talent

GrowthReassurance

Flexibility

Value provided
to workers

Value provided toclient companies
BondingEnhancedcompetitiveness

Provide good workplaces
Achieve the growth of both workers and clients

Expand services to theengineer field

1

One-Stop Strategy for
Major Manufacturers
ComplianceFurther enhance the competitivenessof manufacturing dispatch for large
companies, which is a core businessarea of the dispatch, and expand the
manufacturing engineer field, leveraging the existing client base.

Build the structure toadvance career in a local
area

2

Promote support formobilization of personnelof major manufacturers

3

Area Platform Strategy

Solution Strategy

Promote partnerships with and M&As
of local dispatch operators, enhance
the local workplace, integrate their employees in UT’s career platforms, andraise profitability.

Promote and ensure support for human resource mobilization in responseto the potentially growing demand in
structural reform of large companies
due to the changing business environment.

UT Group’s mission is to spreadthe new career platform throughout Japan
Essence of UT Group

spective area. Our aim is to build a new career platform that presents a variety of workstyles fitted toeach life stage of those who prefer jobs in their familiar area and prioritize reassurance and safety invalue standard. We believe that the COVID-19 pandemic has further augmented the social significanceof this strategy.
And finally, the “Solution Strategy.” This used to be our solution business, repositioned as one of
the new strategies. In this strategy, we support large corporate groups’ human resource strategy with afocus on resolving management issues including optimal staffing and reemployment of retiring workers, in connection with review of strategies and business portfolios. As the business environment isdrastically changing, large companies have to undertake structural reforms ̶ now or never. In the past,
UT Group had supported the mobilization of human resources of the largest corporate groups in Japan,such as Panasonic and Fujitsu, by accepting their employees as full-time associates of UT Group. In
FY3/2021, we started similar collaboration with the Toshiba Group and the Hitachi Group.
Drastic changes, such as the electrification of automobiles, are taking place across the entire industrial arena. The relationship between companies and workers is also changing. For example, worklife balances are changing and working at side jobs are encouraged by some companies. In the current

Target to achieve ¥15 billion in EBITDA in FY3/2023,
a year ahead of the plan

trend of structural reforms by large companies across Japan, I believe that UT Group should play a role
In the current fiscal year ending March 2022, we are continuing to strengthen our hiring activities andof proposing new solutions.
While pursuing these efforts, we are working to improve corporate value through high growth in a

focusing on the “Top Share Strategy” in the worker dispatch business for large manufacturers. Person-

sustainable manner. Our targets for FY3/2025, the final year of the Fourth Medium-term Business Plan,nel demand is expected to remain strong as our main clients in manufacturing are experiencing a short-are ¥200 billion in net sales and ¥20-30 billion in EBITDA.

age in manpower.
In order to achieve the EBITDA target of ¥20-30 billion yen in the final year of the Fourth Medi-

Established the Basic Policy on Sustainability which made visual
our existing efforts

um-term Business Plan, it would be essential to achieve EBITDA of ¥15 billion in FY3/2023, which isa turning point of the plan period. Therefore, in anticipation of the recovery of economic activities, we
aim at achieving ¥15 billion in EBITDA in FY3/2023, one year ahead of the originally-planned FY3/2024.

Workstyles are drastically changing in Japan and so is the raison d’être of dispatch companies. As I have

Accordingly, the sales target for the FY3/2022 is ¥150 billion and we will continue to emphasize sales

explained, the dispatch operators are expected to play a greater role in supporting career formation of

growth.

workers and enhancing compliance. By integrating our existing efforts, we compiled them into a BasicWith regard to hiring activities, which is a major driver of sales growth, our targets remain to be

Policy on Sustainability in April 2021 as a part of efforts to help create sustainable society. This process

hiring of 1,000 people per month and 12,000 people per year. While hiring-related expenses are expect-of preparation made us reconfirm what we value as a company in order to realize a sustainable society.

ed to increase, sales growth in FY3/2022 will be a key to raise the certainty of achieving EBITDA of ¥15

Our accumulated efforts were put into the wording of the basic policy: Respect individual dignity, broad-billion in FY3/2023. We will also continue to work on alliances with and M&As of local major companies,

en the potential of individuals, and maintain the coexistence and prosperity of individuals and society.

and on support for personnel mobilization of large corporate groups.

We will disclose our efforts in keeping with the basic policy and their relation to stakeholders, andreport on the process of how consistent they are to the policy, and are managed from the perspectiveof corporate governance. I believe that is our responsibility as a leading company in manufacturing dis-

Beyond the Medium-term Business Plan is the longer-term “UT Vision 2030,” in which we have set
targets of ¥600 billion in sales and ¥100 billion yen in EBITDA for fiscal year ending March 2030.
With the workstyle undergoing a major transformation, I strongly believe in UT Group’s mission tobuild a new career platform and disseminate it throughout Japan. Profiting from a solid demand for per-patch.

sonnel, UT Group is committed to realizing sustainable growth.

Formulation of the Basic Policy on Sustainability

PurposeTo realize a society in which all motivated people are
equally given opportunities for skill development
and career formation, and are treated fairly

Numerical targets for the Fourth Medium-term Business Plan
Sales target (billion yen)

EBITDA goal (billion yen)

30% growth throughaggressive share expansion
and enhanced hiring
2,000

MissionVision

1,800
Values1,500 1,500

Respect individual dignity
Respect the will ofeach individual

Broaden the potential ofindividuals
Face each individualʼs will

Aim to achieve ¥15 billion
in FY2022, the turning
point of the plan300

Becoming a workstyleplatform company
Net sales ¥600 billion
EBITDA ¥100 billion

FY2029Forward expenses in
FY2021 due to focus
on sales growthBusiness expansionin adjacent areas
Net sales ¥200 billion
EBITDA ¥20-30 billion

200

Basic Policy on Sustainability
The realization of an organization in which
diverse individuals are respected and mutually
benefit by interaction with each other.

UT Vision 2030

1,300

Coexistence and co-prosperity of
individuals and society

Maintain the coexistence andprosperity of individuals and society
Moral values in the position of workers

150
150

1,151

120

1,088
100

1,011

FY20/386

FY21 FY22 FY23 FY24 FY25
The Fourth Medium-term
Business Plan period

60

FY20/3

79

FY21

90

FY22 FY23 FY24 FY25
The Fourth Medium-term
Business Plan period

No.1 in manufacturing
dispatch
Net sales ¥115.1 billion
EBITDA ¥7.9 billion

FY2020

FY2024

15

Changes of the worker dispatch market
and progress of UT Group16

subsequent bubble economy● Enforcement of the Worker Dispatching Act● Great Hanshin-Awaji Earthquake● September 11● Liberalization of job categories● Lifting of the ban on manufacturing dispatch● Lifting of the ban on em-● Great East Japan Earthquakeployment placement dispatchingdispatched workers to 26● Reorganized Aim-CIC Ltd. to Nihon Aim Co., Ltd.

● Listed Nihon Aim on the JASDAQ.

● Realized a scheme to train dispatched workers

and raise their salary according to their improvement in skills.
● Established Aim-CIC. Realized the open-ended● Introduced a unique busi-

employment and the 100% social insurance coverage.

● Established a

Development Di-

Jobs-to-applicants ratio in Japan (times)
Ratio of non-regular workers in Japan (%)● Pro-

Non-regular workers in Japan (10,000)

semitechni-

Dispatching offices● Relaxation of the dispatch period.
No more restriction on the dispatch
period for 26 job categories specified
by the Cabinet Order● Implementation of the optimization plan

● Mandatory employ
ment stability measuresfor 26 specialized job categories● Equal pay

workstylereform-related billto equal work for
dispatch workers● Received the Grand Prize in the Good

Career Company Award.
● Received the Porter Award.

● Promotion of the protection● Mandatory career formation(currently UT Group) as a pure holding company.

of dispatched workers

support by dispatch companies

ness model of contracting the entire process work.

moted the entire process contracted work in the
conductor sector and the improvement of the skills ofcal associates specialized in the semiconductor business

2020●Enactment of the● Established United Technology Holdings Co., Ltd.

contract promotion team (origin of the current Career
vision) to improve skills of technical associates.

2019

2018

● Start of the Trump Administrationin the U.S.

● Start of the Democratic Party Administration in Japanfor dispatched workers in principle● Expansion of job categories for

2017

2016

2015

2014

2013

2012

2011

● Global financial crisis. Layoff of dispatched

Ter-rorist Attacks in the U.S.

workers becoming a social issue● Establishment of the European Union (EU)UT Group technical associates (persons)

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1988

1987

1986

1985

1989

● The Bank of Japanʼs tighter monetary policy,
leading to the bursting of the bubble economy● Plaza Accord of the G-5 nations and the● Made a transition from being specialized in● Launched thesemiconductors to targeting all industries.

“One UT” and “Next UT”.

85,227

83,67737.4● Announced the Long-Term
Management Vision. Changed
market listing to the First Sectionof the Tokyo Stock Exchange.

38.3 2,187
1.6

2,009
● UT Groupʼs topics

19,634● Revision of the Worker Dispatching Act

33.8● Major events

1,766
31.5
1.26

* UT Group technical associates as ofthe end of fiscal year;* Jobs-to-applicants ratio compiled from
the Ministry of Health, Labor and Welfareʼs survey (average per year);*The ratio and number of of non-regular
workers, compiled from the “ Labor
Force Survey (detailed compilation of
long-term time series data)” by the Statistics Bureau of the Ministry of Internal
Affairs and Communications (interim/quarterly average for ratios and fiscal year-end numbers of the workers for
1999-2020);*The number of dispatching offices fromthe “Current Status of Worker Dispatch(General)” and “Results of the Business
Report of Worker Dispatching Business”
by the Ministry of Health, Labor andWelfare

1,585

1.09

25.3
9,299

1,268
30,033
0.83
971
20.3
19.1

12,803817
10,305

4,004
12,653
2,851

0.64

696

15.3
604

The worker dispatch market has been growing tomeet the needs of the times since its inception.

0.48

0.48

Dedication to workers led to UT Group’s creation of abusiness model that was ahead of the times.

best system. We simply thought hard about what we should

employment status was once again highlighted, bringing

triggered the layoff of dispatched workers, and their unstable

do for our workers and devoted our efforts to doing the ob-

The number of dispatching offices has been increasing in thegreater focus on the protection of dispatched workers. As a

While the protection of dispatch workers has been calledvious right things with a focus on those who work with us.

worker dispatch market, regardless of social circumstances

result, employment stability measures and career formation

for in recent years, UT Group, since its foundation, has been

Now the times have caught up with us from behind. That isor the economy. The dispatch industry has gained greater

support became mandatory for dispatch companies, theirworking on introducing friendly measures for its associ-how we feel. We are pleased that our efforts have resulted inrecognition amid the increase in the number of non-regular

asset requirements became severer from the perspective ofates, including open-ended employment and 100% social

the current growth of our business. UT Group’s “One-to-One

workers. A turning point in the rise of the prosperous dis-business continuity, and the worker dispatch business be-

insurance coverage. Unlike many of our competitors which

Spirit” is the backbone of our business to support workers

patch market came in 1999, when the the Worker Dispatchingcame centrally controlled by a permit system. These moves

are still struggling to build a system to support employee

and broadly contribute to society in the past and in the fu-

Act was revised and the scope of work and the dispatch peri-

to enhance the protection of the rights of dispatch workers

education and career formation, we started to do this in theture.

od were relaxed. However, the global financial crisis in 2008

have been affecting dispatch companies’ business operations.

early 2000s and have already established the industry’s

Changes of the worker dispatch market and progress of UT Group

Essence of UT Group1984

The worker dispatch market in Japan has expanded and become transformed, due to the impact of social
circumstances and legal revisions. UT Group has been a leader in the industry in adopting new systems,
including the open-ended employment of dispatched workers.

17

The worker dispatch market up to now and in the future

18

The Revised Worker Dispatching Act of 1986 has set the rules for the worker dispatch market,
which continues to expand by incorporating the diverse needs of workers and companies involved.

Japan since the Edo period. Prior to the enforcement of thethrough revisions to the Worker Dispatching Act expanded

Worker Dispatching Act, however, it was in the form of “jobthe worker dispatch market. Although the instability of em-

contracting” because the dispatch business had not beenployment during recessions tends to be a problem, the mar-approved. The pioneer companies in the worker dispatch

ket is expected to expand further amid growing social needs

business were born in the 1960s and 1970s, and the Worker

for diverse workstyles in tandem with an emphasis on the

Dispatching Act was enforced in 1986, creating the founda-

protection of workers.

tion for current worker dispatch services.

Types of employment in Japan’s labor market
Japan’s labor market can be classified by three factors: di-workers. Dispatched workers do not have a direct employ-rect or indirect employment, contract period, and applicablement relationship with the company they are dispatched to.

law. As opposed to regular employees who are primarily

The company they work at and the company by whom they

full-time employees of a company, non-regular workers include part-time workers, contract workers, and dispatched

are paid are different, and the Worker Dispatching Act is ap-

Social background of the increasing number of non-regular workers
Over 300% increase in the number of dispatched workers since 2002,
and an increasing shift from contract workers to dispatched workers
Changes in the competitive landscape are forcing many

Labor Contract Law was revised, and rules were establishedcompanies to have different employment needs so theyso that workers whose work period exceeded a total of fiveare shifting away from the Japanese-style employment

years under a fixed-term labor contract could apply for anenvironment. Job seekers also prefer more diverse work-

open-ended labor contract and convert their employment

styles. Owing to such changes in society, the number ofstatus. This has led companies to employ fewer contract

non-regular workers is on a rising trend. The number ofworkers and more dispatched workers and the worker dis-dispatched workers, in particular, increased by more thanpatch market is thus expected to expand further.

300 percent from 2002 to 1.38 million in 2020. In 2013, theDispatched workers vs. contract workers(10,000)
500

Contract workers
Dispatched workers
who belong to dispatch companies

plicable to them.
400

Classification

Term of the employment
contract

Revision of the Worker Dispatching Act which affected theworker dispatch market
1999: Liberalization in principle of allowable job categories for worker dispatch
2004: Lifting of the ban on dispatch to manufacturing operations
When the Worker Dispatching Act came into effect in 1986, the number of allowablejob categories for worker dispatch was limited to 13 specialized jobs, but this has
since been expanded as a result of subsequent revisions. This deregulation has encouraged more industries to use dispatched workers.
●●

Applicable legislation̶

300

2012: Promotion of the protection of dispatched workers
2015: Mandatory implementation of career formation support and employment
stability measures by dispatch companies● 2020: Elimination of unreasonable difference in treatment of regular versus
non-regular employees
Since 2010, the laws have been revised to improve the working environment of dispatched workers, including a ban in principle on daily labor dispatch of 30 days or
less, and an obligation on dispatch companies to explain the treatment of workers.
As the “notification system” was also abolished and unified into a “permit system,”some dispatch operators could not respond to these changes and withdrew fromthe business.
●●

Indefinite (open-ended) term Labor Law in general* Limited full-time employee

200

The strategic targets andthe areas of strength of
the UT Group

2020

2019

2018

2017

2016

2015

Worker Dispatching Act

2014

Fixed/ Indefinite(open-ended) term

2013

Dispatched worker or
temporary worker

Indirect0

2012

Labor Contracts Act

2011

Fixed term

2010

Contract worker

100
2009

Part-time Labor Act

2008

Fixed term

2007

Non-regular Part-time worker

2006

Full-time employee

2005

Regular2004

Direct2003

Employment
statusFrom the Labor Force Survey, Statistics Bureau, Ministry of Internal Affairs
and Communications (detailed data for 2020)

Issues raised by lack of career formation support for non-regular workers
The size of the dispatch worker market targeted by UT Group

Although the revised Worker Dispatching Act of 2015 re-OJT undertaken for non-regular workers were far less thanquired dispatch companies to train their dispatched workers,

for full-time employees. The lack of career formation sup-educational support has not yet been enhanced. The 2021

port for non-regular employees, particularly among young

Basic Survey on Skill Development by the Ministry of Health,people, is a noteworthy problem as it is expected to eventually affect the future growth of the Japanese economy.

UT Group’s main target is the dispatch of workers engaged

dispatched workers in Japan, there are 340,000 productionin production processes in the manufacturing industry,

process workers who are the target for UT Group. In addi-

with a primary focus on the semiconductor, automotive

tion, 80,000 engineers with more advanced skills and knowl-and machinery sectors. According to the the Labor Forceedge in the dispatched worker category as well as 370,000

Labour and Welfare shows the reality that both off-JT and

Survey (FY3/2021) by the Statistics Bureau of the Ministry

production process workers in the contract worker category

Dispatching offices which carried out off-JT (by job class) (%)

of Internal Affairs and Communications, out of 1.38 million

are also UT’s prospective target categories.

Dispatched workers 1.38mn
Non-regular workers

Production process workers 0.34mn

Engineers 0.08mn

20.90mn
Employees/work-

Issues raised by lack of career formation support for non-regular workers behind their increase

New employees(full-time)Mid-career employees(full-time)●

Shortage of high-skill workers at companies●

Difficulty in achieving long-term stability for non-regular workers

Managers(full-time)●

Decline in labor productivity in Japan as a wholeNon-regular
workers0

Office workers, etc 0.96mn

10

20

30

40

50

60

Dispatching offices which carried out planned OJT (by job class) (%)

ers (excl. executivesof companies)

Contract workers 2.79mn

56.29mn
Regular employees
35.39mn

Part-time workers 14.73mn
Commissioned and other
2.01mnProduction process workers 0.37mn

Engineers 0.11mn

Office workers, etc. 2.31mn

From the Labor Force Survey, Statistical Bureau, Ministry of Internal Affairs and Communications basic data for 2020)

Increasing needs for dispatch companies thathave a solid career formation support system
Many dispatch companies and companies which use dispatch workers do not provide sufficient training to dispatch

New employees(full-time)

workers. This is not only due to lack of awareness of dispatch

Mid-career employees(full-time)systems, and facilities. UT Group is different. Since founda-

companies, but also because of a shortage of instructors,
tion, UT Group has focused on supporting career formation

Managers(full-time)and has expanded training facilities and training menus tosuit the purpose and level of workers. This has therefore

Non-regular
workers

become UT’s strength and UT has become a company that is
0

10

20

30

40

50

From the Basic Survey on Skill Development (2021) of the Ministry of Health,
Labor and Welfare

60

chosen by client companies and workers alike.

The worker dispatch market up to now and in the future

Thereafter, the expansion of the scope of dispatch work

2002

Essence of UT Group

It is said that the business of dispatching labor has existed in19Progress of UT Group which continues
to pursue value enhancement for workers

20

UT Group, founded in 1995, celebrated its 26th anniversary in 2021. We experienced numerous difficulties
and turning points in becoming a leading company in manufacturing dispatch.
Essence of UT GroupIn 1995, UT Group began with just two people with a sharedspread of COVID-19 infections, we are expanding the number

ambition to change the worker dispatch industry. We haveof technical associates* and aiming to help realize a society

turned the IT recession of 2001, the global financial crisis

in which all those who are willing to work will have equal op-of 2008, and numerous other hardships into opportunities

portunities to improve their skills and develop their careers.

and are now entering another growth period. In March 2019,

We are determined not to forget our initial resolution to makewe passed a big milestone of ¥100 billion in net sales. In

efforts for workers.

fiscal year ending March 2022, despite being troubled by the

Note: “Associate” is a term UT Group has decided to use to describe its employees.

［FY3/2021］
Number of technicalassociates

23,736
Sales¥115.1billion
Second founding period

First growth period

Second growth period

Progress of UT Group which continues to pursue value enhancement for workers

Founding period

Globalfinancial crisis

Number of technical associates
Sales from the staffing business
Sales from the manufacturing
equipment businessIT recession

FY2005

FY2000

FY1996FY2015FY2010

FY2021

Founding period

First growth period

Second growth period

Second founding period

Strived hard to change the worker
dispatch industry without being held backby so-called common sense

The first stock listing in the
manufacturing dispatch industry
Expansion of business to achieve further growth

Setbacks, caused by the global
recession, and then a return to basics in orderto achieve recovery

Toward the realization of a career
platform concept that allows both workers and clientcompanies to grow together

At the time of UT’s founding, the low retention rate for man-

In 2003, Nihon Aim became the first company in the manu-

After achieving rapid growth through its expansion strategy,

UT Group was ahead of the times in developing various

ufacturing dispatch workers was the general norm. In orderfacturing dispatch industry to be listed on the JASDAQ mar-UT Group recorded a significant decline in profit, due to theleading initiatives for personnel development and career

to break this status quo, we proposed a system to provide

ket. In addition to the worker dispatch business specializing

global recession triggered by the global financial crisis information, in addition to the launch of the One UT and theeducational support for dispatch workers and raise theirin the semiconductor manufacturing sector, we subsequent-2008. We then sold the design and development business

Next UT in 2015. These initiatives have gradually becomesalary according to their skill improvement. We adopted thely expanded business through M&A and other means, into aand the manufacturing equipment business in efforts aimed

our strength in being chosen by workers and client compa-

employment of full-time employees and 100% social insur-

design and development business for embedded softwareat revival. We decided to return to basics of foundation

nies alike. We grew to become a top company in scale in theance coverage, breaking the industry norm. However, the IT

development, and a manufacturing equipment business forand to concentrate management resources in the original

manufacturing dispatch industry in 2018. Our business hasrecession in 2001 adversely affected us and we recorded

the sale of used manufacturing equipment, with the aim

worker dispatch business. The major setback caused bybeen highly accredited externally, including the receipt ofa loss for two years in a row despite the continued uptrendof further growth. Our aim was to become a comprehen-

the economic recession therefore prompted us to rethink

the Porter Award in 2019. In November 2019, we changed

in sales. To reconsider the raison d’être of the company,

sive provider of cost-cutting solutions by fully supporting

our purpose and what we should achieve in business. This

our market listing to the First Section of the Tokyo Stock Ex-

a Group of Aims was established by volunteer members

manufacturing companies from the three perspectives ofturned into our second growth period and a trigger for thechange and we are now moving forward to the next stage.

within the company. This has resulted in the creation of UT

design, equipment, and human resources. In fiscal 2007, wefoundation of our base to date.

̶Group’s basic philosophy of “Creating vigorous workplaces

achieved rapid growth, including a 65% increase in consoli-̶empowering workers”.

dated sales and an 80% increase in operating income.

̶
●
●
●

1995: Yoichi Wakayama established Aim-CIC Ltd. at the age of 24.
1996: Aim-CIC was reorganized into Nihon Aim Co., Ltd.
2000: Introduced a unique business model of contracting the entire

process work.
●

2001: Established a contract promotion team to improve skills of tech-nical associates.

̶
●
●
●

2002: Promoted specialization in the semiconductor manufacturing sector.
2003: Nippon Aim was listed on the JASDAQ.
2006: Entered a design and development business and a manufactur-

ing equipment business.
●

2007: Became a holding company, making a new start as United Tech-

nology Holdings.

●●●

2018: Became Japan’s No. 1 in manufacturing dispatch.

2009: Changed company name to UT Holdings Co., Ltd.

●

2018: UT Aim received the Grand Prize of the Good Career Award.

2009: Sold the design and development business and the manufactur-●

2019: UT Group received the Porter Award.

●

2019: Announced the long-term management vision “UT Vision 2030”.

●

2019: Changed market listing to the First Section of the Tokyo Stocking equipment business.
●

2010: Broke away from dependence on semiconductors and Nihon Aimand shifted to an all-direction strategy.
●

2012: Changed all subsidiaries’ names to start from UT.

●

2015: Launched the One UT and the Next UT.

Exchange.

21

Challenges that must be addressed to grow together
with workers

22

To realize a society in which workers can live with reassurance now and in the future.
Our key challenges (materiality) are closely aligned with our thoughts on workers.
Essence of UT Group

Materiality assessment process

Basic Policy on Sustainability and Basic Policy on Environment

In order to understand the social needs of the staffing

UT Group. In order to discuss matters from a common per-In addition to identifying materiality (priority issues), we havesustainable society. We are committed to thinking about theindustry so that we properly identify our materiality, we

spective, we asked them to assign relative priorities to theformulated the Basic Policy on Sustainability to continuously

proper way to operate our business as a company that canlooked at the items of the SASB Materiality Map’s service

12 items of the staffing industry and asked for their specificincrease corporate value, and the Basic Policy on Environ-broadly contribute to our workers, client companies, stake-sector and the items that RobecoSAM has set as criteria toopinions based on that. Similar processes were carried out

ment to contribute to the realization of a globally important

holders, and society.

focus on in the Professional Services sector. We did this tointernally, to receive opinions from executives, managers,

facilitate extracting 12 items that are considered to be high-associates*, and others. We thus set priority on the rele-ly desirable in the staffing industry. We then had dialogues

vance of UT Group’s business to its items.

with external stakeholders and asked what they expected ofNote: “Associate” is a term UT Group has decided to use to describe its employees.

● Issues to be proactively addressed○ Issues to be enforced across the group

Securing of talented people ●Expectations from stakeholders

A
Development of human resources ●Health and safety of associates ●Appropriate work practices ●● Diversity and inclusion

Corporate governance ●Organization control andbusiness base that support
value creation activities
Eco-friendly sustainablebusiness operations● Development of environmental policies

B

Basic Policy on Environment

UT Group respects each and every worker and seeks to har-Just as each individual is the one and only in the world, themonize with society from the perspective of workers.

environment of this planet, which is the stage for all people’s

UT Group strives to create, with client companies, good

lives and for all corporate activities, is also the invaluable

workplaces that allow many workers to be empowered andone and only. UT Group has established a basic policy on the

pursue their potential, and to increase workplaces whereenvironmental in order to ensure that all officers and asso-both workers and companies grow in a virtuous circle. Un-

ciates understand the importance of the environment andder the mission “Create vigorous workplaces empowering

give consideration to the global environment of the present

workers,” all UT Group executives and associates are ex-

and the future in performing their business activities.

pected to naturally contribute to the sustainable coexistence“organization in which diverse individuals are recognizedCompliance with environmental laws and regulations
and environmental-related agreements

and mutually benefit by interaction with each other.”UT Group will understand and comply with environmental

and co-prosperity of individuals and society by realizing anlaws and regulations in each country and international envi-

Respect individual dignity● Code of Conduct● Data security● Business ethics○ Management of client relationshipand environmental management

C○ Operational environmental efficiency measures

Relevance to UTʼ s businesspose of UT Group, which aims to realize a society in which

UT Group will strive to make efficient use of environmental

development and career formation, and are treated fairly.

resources, reduce greenhouse gases emitted as a result of

While striving to ensure the reassurance and security of theits business activities, and conserve the global environment.

working environment and information security, we will work
to create an organization in which diverse individuals are

Broaden potential of individuals

Nowadays companies are questioned about how they ad-

strengthening of business base; C) organizational controls;

UT Group will strive to enhance career support that enables

dress social challenges. UT Group has established mate-and D) environmental considerations. We are making group-

many individuals to pursue their individuality and potential

riality (priority issues) in four categories: A) associates; B)

wide efforts to resolve these issues.

throughout their lives. We will also expand our business andits domains through sound transactions so that we can sustainably provide employment and growth opportunities.

A

B

Associates’ potential to be broadened
We respect and are engaged with each worker and continue tocreate an environment where workers can vigorously work.

Continued strengthening of business base
We continue to lead the staffing industry from the perspective ofworkers, without being constrained by legacy customs.

Fair and transparent organizational controls
We foster a corporate culture that respects each individual, andmaintain an open and fair corporate attitude.

C

Appropriate environmental considerations
We recognize our impact on the natural environment and appropriately control it.

Development of human resources● Securing of talented people● Diversity and inclusion●

Appropriate work practices
Health and safety of associates● Data security●●

Code of Conduct● Corporate governance● Business ethics●

Maintain the coexistence and prosperity of
individuals and society
UT Group strives to create and increase, with client companies, good workplaces where both workers and companies
grow in a virtuous circle in order to provide a dependable
workplace where as many people as possible are empowered and work vigorously for a long time. In doing so, wewill always have a public perspective Also, not only will wevigorously comply with social ethics and prevailing trends,

Development of environmental policies and environmental management●

Reduction in environmental impact

all motivated people are equally given opportunities for skill

recognized and utilized by each other.

Materiality of UT Groupronmental-related agreements.

Respect of individual dignity is essentially the corporate pur-but also will strengthen corporate governance and to reduce
environmental impact. We will thus strive to maintain thecoexistence and mutual prosperity of individuals and society
with strong connections to the public perspective.

Environmental education and awareness raising
UT Group will carry out educational activities to ensure that
officers and associates of each group company understandthe importance of environmental conservation.

Challenges that must be addressed to grow together with workers

Value creation activities
to realize the mission

Basic Policy on Sustainability

23

UT Group’s value creating process

24

Financial capital●

Shareholdersʼ equity (million yen) 19,116●

Interest-bearing debt (million yen) 11,723●

Debt to equity ratio (D/E ratio) (time)

Create vigorous workplace
Business

0.61

Operating performance

sempowering workers
Model

Human capital

25,083●

Employees in Japan (person)●

Employees outside Japan (person) 13,444●

Professional Career Partners (person)

15●

Career Partners (person)

581

●

7,937

●

Client companies

1,538

●

Workplaces

2,054

Giving as many
workers as
possible thepower of work

Cycle to develop
workers through work

Cycle to develop
good workplaces

Supporting
competitivenessof client companies
through thepower of work

346

Investment in software (million yen)

585

Natural capital●

Energy consumption (kWh)56,625●Gasoline consumption (ℓ)

737,660

Basic Policy on

Corporate

Code of Conduct based on the One-to-One Spirit:

O U T
Note: Explanation of some indices isavailable on the back cover page.

EPS (yen)

106.53●

Free cash flow (million yen)

4,240

●

ROE

25.3%

●

Work-creating value (million yen)

95,517

Participants in education courses (person)
Career interviews conducted (time)●

Users of career path (person)

1,014

●

Employee retention rate

76.7％

●

Ratio of employees (technical associates)

who work for 3 or more years

42.8％

●

Ratio of women in employees

28.9％

●

Ratio of women in managers

10.5％

Greenhouse gas emissions

Manufactured capital●●

Diversity indices

Career development expenses (million yen)

Capital expenditures (million yen)

7,991

25,118207●

EBITDA (million yen)●Intellectual capital●●

32,87436,753New hires (person)

115,131

Career formation support

116,463Interviews (person)

Net sales (million yen)

Realization of a society that equally provides opto all people who are willing to work,

Sustainability

GovernanceWe stand by people and stay face to face with them.

C O M E
portunities to raise skills and advance careersand ensure they are fairly treated●

Scope1［tCO2］--●

Scope2［tCO2］

26●

Scope3［tCO2］

1,713

UT Group’s value creating process●

Applicants (person)●●

Social capital●

OUTPUT

Essence of UT GroupINPUT

UT Group is creating value that is deeply associated with the development of society
in order to help realize a society where workers and companies can grow sustainably.

Nurturing people who support
Japan’s manufacturing̶Business strategy
The goal of our business is to have both workers andclient companies as customers and help everyone involved
achieve sustainable growth.
UT Group’s business model is based on the growth ofworkers and aims to contribute to client companies’
improvement of productivity and mobilization of humanresources.

27

Business development in three segments

28

UT Group reports its performance in three segments:
Manufacturing, Engineering and Solution.

Supply high-value-added personnel to a wide range of industrial fields

This segment is engaged in manufacturing dispatch and●UT Aim Co., Ltd.

Manufacturing personnel services, Administration service and consulting

outsourced work services. Our strength is that we can dis-business of the Training Programs for Foreign Workers

patch teams of associates* for outsourced work of an entire●

Business strategy

production line to Japan’s major manufacturers of semi-

UT Community Co., Ltd.

General personnel dispatch and outsourced work

conductors, electronic components, and automobile-related●

Support System Co., Ltd.

products. In addition to being able to mobilize a large num-

General personnel dispatch and outsourced work

ber of highly skilled personnel, our high personnel retention●

Seekel Holdings Co., Ltd.

General personnel dispatch and outsourced work

rate has been highly evaluated by client companies.

●

Note: “Associate” is a term UT Group has decided to use to describe its employees.

ronment and energy, and medical domains; the engineering

is engaged in business at workplaces across Japan. By mak-business includes fields such as machinery and electric

ing use of economies of scale in doing this, we can and do

design, production technologies, ICT systems, construction

promptly deliver a large workforce to client companies na-

and civil engineering, and robot simulation. We have diverse

tionwide. UT Group’s industry coverage in dispatch businesstraining programs that address needs in these diverse do-is diverse: the manufacturing business extends from semi-

mains to develop value-added workers and support manu-

conductors and electronic equipment to automobiles, envi-

facturing workplaces all over Japan.

Green Speed Joint Stock Company

General personnel dispatch and outsourced work in Vietnam●

Under the vision “Create jobs nationwide in Japan”, UT Group

Progress Group Inc.

The strength that UT Group has cultivated has become a great advantage

General personnel dispatch and outsourced work●

SURI-EMU Corp.

The revision of labor-related laws has expanded the need for the
dispatch of open-ended (indefinite) contract workers

General personnel dispatch and outsourced work

Engineering Business

Revised Labor Contract Law (2013)This segment is engaged in transfer of engineers in design●& development, software, IT, and construction. In addition
to new graduates, operators in the Manufacturing Businesswith no experience in engineering are trained and trans-

Requirement for companies to give an open-end-

UT Aim Co., Ltd.

Design and manufacturing engineer outsourcing and commissioned
business●

UT Technology Co., Ltd.

●developing higher- value-added engineers by operating awith contract periods of over five years

Revised Worker Dispatching Act (2015)

IT engineer outsourcing and commissioned businessferred to client companies as engineers. We also focus on

ed contract to their fixed-term contract workers

Abolition of the upper limit for the dispatch term
to the same client company when dispatchingopen-ended contract workers

UT Construction Co., Ltd.

Construction engineer outsourcing

training facility where we assist engineers to further enhance their skills.

Expanded need to switch“contract workers” to“dispatched workers”

Expanded advantage of dispatch ofopen-ended contract workers―thestrength of UT Group

Accelerated use of dispatched workers on
open-ended contracts

Accelerating dominance by major dispatch companies

Solution BusinessThis segment supplies large corporate groups with labor●

UT Pabec Co., Ltd.

Changes surrounding
the employment service
industry

Impact on small to
medium-sized and local
dispatch companies

Stricter complianceDifficulty in complying
with regulations andreduced continuity incontract

Battery manufacturing personnel dispatch and outsourced work

issue solutions by accepting their employees as UT Group’s●

employees. We deploys diverse solutions to assist client

UTHP Co., Ltd.

Manufacturing personnel dispatch and outsourced work

companies’ structural reforms, including the type of out-●

sourced work called client employee transfer (In-house
Solution Service) in which all manufacturing employees of

Fujitsu UT Co., Ltd.

●●transferred to UT Group. Reforms also include establish-

UT Toshiba Co., Ltd.
Tight supply and demand in production
process

UT System Products Co., Ltd.

Sales of information system equipment

ment of a joint company with a client company in which we

Gained a big advanced
due to UT’s accumulated
strength

General personnel dispatch and outsourced work
General personnel dispatch and outsourced work

one plant of the client company as well as their work are

Impact on UT Group●

Difficulty in meetingthe needs and gettingordersUT MESC Co., Ltd. (formerly Mito Engineering Service Co., Ltd.)assist fixed-term employees’ change in status to regular

Manufacturing outsourced work and dispatch of engineer for elevators,(open-ended) employment.

escalators, etc.

Major client companies or groups

Gained more advantage
due to UT’s industry-leading hiring and development capabilities

Recruiting people by M&A.
Increased shareof the market byaccepting moreworkers and doing M&As

Larger growth
opportunities

Benefits provided by UT Group to client companies and associates●

Aishin Group●

Shimizu Corporation●

Toshiba Group●

Mitsubishi Motors Group●

INES Corporation●

SCREEN Group●

Toyota Group●

Mitsubishi Electric Group

Benefits to client companies

Benefits to associates●

Asahi Kasei Group●

SUBARU Group

●

Nissan Motor Group●

Meltec Business Co., Ltd.

UT Group’s outstanding hiring capabilities enable clients to se-

UT Group is developing diverse workplaces across Japan to broad-●

Isuzu Group●Sony Group●

NISSHA Group●

Yamaha Group

cure many workers when needed. Dispatched workers are highly

en the potential of each associate. This means satisfying workers’●

INTEC Inc.

●

Taisei Corporation●

NEC Group●

Yokogawa Solution Service Corporation

skilled and they are managed by UT Group’s worksite manager. In

diverse desires, such as developing skills at different workplaces●

NTT Group●

Daihatsu Motor Group●

Hakuyosha Co., Ltd.

●

Likes Co., Ltd.

addition, workplace improvement proposals are implemented withand taking on a stable job in a local area. UT also has enhanced●

Obayashi Corporation●

Daiwa House industry Co., Ltd.

●

Panasonic Group●

LIXIL Groupawareness of compliance. Utilizing the nationwide network, UT

training programs for skill development and a career formation●

Olympus Group●

Takenaka Corporation●

Hitachi Group●

Renesas Group

responds to client companies’ sudden fluctuation in demand at the

support system. Career counseling by an on-site manager is also●

Kajima Corporation●

Disco Group●

Hibiya Engineering Ltd.

●ROHM Group

worksite.

available.

●

Kurita Water Industries Ltd.

●

Densan System Co., Ltd.

●

Fujitsu Group●

GS Yuasa Group●Tokyo Electron Group●

Honda GroupAs of August 31, 2021

Business development in three segments

Manufacturing Business29

Strengthening competitivenessin the personnel dispatch business

CLOSE-UT Group’s strength lies in its ability to support all manufacturing processes, from designand development to manufacturing processes and quality control. Our overwhelming hiring capability
and personnel development capability support the supply of high-value-added personnel.

One-stop support for everything in the manufacturing processreliable quality support for all processes at the productionpany for the manufacturing industry and has since expand-site is our major strength in the manufacturing dispatch in-

ed its business fields to design and development, testing

dustry.

Business strategy

and assessment, production technology and facility mainte-

UT’s Manufacturing Business Unit is responsible for thenance, and quality assurance and control, in response to the

production process process, while the Engineering Businessneeds of clients. Our support system that provides one-stop,

Unit is responsible for other processes.

Design & development

Testing & evaluation

Production technology &equipment maintenance

Production process

Quality assurance
and control

Manufacturing BusinessEngineering BusinessEngineering Business

Increase the value of client companies through overwhelming “hiring capabilities”
and “personnel development capabilities”
Since its inception, UT Group has been considering workers

workplace through a unique development system that in-as customers and providing its unique value of reassur-

creases the added value of recruited personnel. In addition,

ance, bonding and growth to them. We are proud to become

our worksite management system with a focus on compli-

a company chosen by many workers, as evidenced in ourance contributes to the enhancement of the value of manu-

outstanding capability to hire more than 1,000 people per

facturing companies.

month. We have also achieved a high retention rate in the

Manufacturers

Enhancement ofcompetitiveness

Flexibility

ComplianceUP

Becoming a one-stop partner in the new era
that develops and supplies high-skill talent
Nobuyuki TSUKUISenior Executive Officer in charge of the Manufacturing Business Division President of UT Aim Co., Ltd.
Joined Victor Company of Japan, Limited in 1989. After serving as Director, Business Planning Officeof Daitec Co., Ltd. (Crystal Group), and as Managing Executive Officer of Icon World Co., Ltd. (currently,
Fujiwork Co., Ltd.), he joined UT Group in 2012.

UT Group’s hiring and personnel
development capabilities are gaining more
attention in the time of change
The “One-Stop Strategy for Major Manufacturers ”̶ one

Realize high hiring capability

Workplace control systemwith emphasis on complianceThree merits

TOPIC

The Area Platform Strategy

The Area Platform Strategy is one of the three strategies

M&As of local dispatching companies which have local hiringpromoted in UT Group’s Fourth Medium-term Business Plan.

capabilities and a local network of client companies, thereby

expansion of 5G-related businesses. There is no doubt that
personnel demand will remain steady.
In response to the needs of such markets, we have es-

Business Plan ̶ is undertaken by the Manufacturing Busi-tablished the Technology Skill Development Centers, which

ness Division and the Engineering Business Division, which

are dedicated facilities to foster manufacturing engineers inare mainly engaged in worker dispatch to leading Japanesethe semiconductor field. We are now operating four centerscompanies in the automotive, semiconductor, and electronicnationwide: Kitakami City (Iwate Prefecture), Yokkaichi City

parts sectors. One of the strengths of UT Group is its ability(Mie Prefecture), Osaka City, and Kumamoto City. Our plan is

to mobilize a large number of high-quality workers. The highto nurture 3,000 semiconductor manufacturing equipment

retention rate, which resulted from the emphasis on person-engineers and assign them in workplaces within three years.

nel management in workplaces, is also an advantage over

Another area where we are making efforts, in additioncompetitors.

to personnel development, is the strengthening of internal

We are highly evaluated by client companies thanks tocompliance. Our efforts have been highly noted by client

our overwhelming hiring capability. The number of technicalcompanies, and some have asked for our advice concern-

associates* at the end of FY3/2021 was 23,736, a record high.

ing compliance at their factory where our workers are dis-

In fact, it has only been the last several years that we arepatched.

able to hire a large number of workers as it is today. Since

At present, manufacturers in Japan face a variety ofaround 2013, eight years ago, we have focused on hiring andchallenges. The environment is changing constantly, includ-

steadily achieved results. Back then, the hiring team started

ing the decline in the working population, ICT development,with five people with a goal of 500 new hires per month, andglobalization, changes in labor legislation, and the risk of

it now grew to the team of over 100 staffs. The monthly hires

COVID-19 infections. In this phase, UT Group’s capability toreached 1,000 workers in 2018, three years ago.

hire and develop workers is certainly a strength. Our month-

The more hiring capability to secure workers we have,
Provide highly-skilledworkersof the global shortage of semiconductors, driven by theof the three growth strategies of the Fourth Medium-term

the more we can naturally acquire client companies. The
UT Group

44.1% of sales in the Manufacturing Business on the backly target in hiring is expected to increase from the present
1,000 to 1,500, and 2,000.

more value we can add to workers through our development

This also requires a digital shift in personnel manage-

programs, the greater power to negotiate with client com-

ment. Recently, the COVID-19 pandemic has rapidly accel-

panies we have. In recognition of our efforts to achieve thiserated the use of online interviews. It appears that digita-

virtuous cycle, UT Aim, a core member of the UT Group, re-lization in personnel development will be essential as theceived the Grand Prize in the Good Career Company Award

workforce increases.

2018 sponsored by the Ministry of Health, Labour and Wel-

As shown in the case of the semiconductor industry

fare. In 2019, we also received the Porter Award, operated

shows, UT Group is expected to take a greater role in work-

by Hitotsubashi University Business School.

ers’ career formation support and motivation management
on behalf of client companies. As we further build theknow-how for personnel development, we will attract more

This is in response to the desires of people who want toenhancing the level of workplace development in the area

have a stable job in the local community. As the COVID-19

and aiming at building a new career platform. Another ob-

Opened a dedicated facility to internally nurture
manufacturing engineers in the semiconductor fieldpandemic further boosted these needs, we introduced a divi-

jective of ours here is to promote the soundness of the entire

The COVID-19 pandemic had a limited impact on the facto-

the sustainable development of manufacturers in Japan bysion system that enables area offices to make their own de-dispatch industry by making smaller local dispatch opera-

ries of manufacturers ̶ our main field of business. Since

expanding our career platform, which covers a wide range

cisions from sales to recruitment in April 2021. This system

tors aware of compliance. We firmly believe that there is a

September 2020, personnel demand has had a V-shapedof industries, a wide range of areas, and a wide range ofhigh need in proposing workstyles tailored to the life stage

recovery and is further increasing. The semiconductor andpeople.

of workers, with reassurance and safety as value standard.

electronic parts markets, in particular, are booming. In

expands the role of area offices so that they can meet thedifferent needs of different customer by area. Across Japan
there are many dispatching companies. We are promoting

FY3/2021, UT Group’s sales to those markets represented

workers. Under the mission to “create vigorous workplaces
empowering workers,” we are committed to contributing toNote: “Associate” is a term UT Group has decided to use to describe its employees.

Strengthening competitiveness in the personnel dispatch business

UT Group was established as a personnel dispatching com-

30

31

Expanding UT’s share of dispatched workplaces
through support for personnel mobilization

CLOSE-UT Group’s Solution Business Division is engaged in supporting the personnel mobilization of large companies
that need to undertake structural reform. Needs are expanding due to the changing business environment
and the COVID-19 impact.

Sales growth achieved in the Solution Business for FY3/2021

UP

We will strengthen the relationship with client companies
by responding to their needs for structural reform.
Yuji WATANABE

sales at UT Pabec and other existing subsidiaries, which pre-since FY3/2020. In FY3/2021, three Toshiba Group compa-

viously became subsidiaries, the segment increased sales in

Joined Argus Co., Ltd. in 1991. After serving as a director of Icon World Co., Ltd. (currently Fujiworknies became UT Group’s consolidated subsidiaries in April

FY3/2021. In the future, demand for structural reform fromCo., Ltd.), he joined UT Group in 2012. After serving as Senior Executive Officer, Division Manager

2020 and one Hitachi Group company also became a subsid-

large manufacturers, our existing clients, is expected toiary in July 2020. Due to these additions and an increase ingrow more and more.

July 2013

April 2020

UT Pabec Co., Ltd.

UT Toshiba Co., Ltd.

Formerly a Panasonic Group company

UT Business Service Co., Ltd.
UT System Products Co., Ltd.

April 2018

Fujitsu UT Co., Ltd.

Formerly three Toshiba Group companies

Formerly a Fujitsu Group company
July 2020

Mito Engineering Service Co., Ltd.

Director, Senior Executive Officer in charge of Customer Solution Business Divisionof the Solution Division, he was appointed as a Board Member (current position) in 2019.

The employment of full-time associates,
since inception, is a unique element of
UT’s personnel solutions.

core employee dispatch company within its Group, this dis-

The Solution Strategy is one of the growth strategies of UT

it may be acquired by UT Group. One of the most distinctive

Group’s Fourth Medium-term Business Plan. Its objective isschemes is UT’s In-house Solution® (full-time employee

to help resolve large corporate groups’ management issues

transfer-type contract) in which UT Group takes over thethrough support for mobilization of their personnel, and to

specific production work and employees of a client compa-

further strengthen our relationship with them.

ny’s manufacturing plant. The affected employees are trans-

Large corporate groups that operate in multiple areas(Currently UT MESC Co., Ltd.)

Formerly a Hitachi Group company

tend to have subsidiaries that support indirect operations

Basic scheme of the Solution Businesspatch company alone cannot cope well with the revision of
the Worker Dispatching Act and the Labor Contract Law, so

ferred to UT Group, but continue to do the same job at thesame workplace.

within the group, in addition to operating subsidiaries that

In any of these schemes, UT Group hires the transferred

generate direct profits, and employ many people. However,

employee as UT’s full-time employees. The transferred em-

the changing business environment may force them to re-ployees obtain not only job stability but also more careerquire more flexibility in their organization and use of person-

options as UT Group has good workplaces nationwide. This

The Solution Business is driven by four major schemes: 1)

which UT Group takes over the specific business and em-

nel. Since the 2000s, major electric equipment manufactur-is one of the reasons why UT Group is chosen by clients.

to create subsidiaries through M&A; 2) to form joint ventures

ployees of a client company. We have so far accepted a total

ers have reviewed their management strategies and boldly

When we present a solution to clients, the focus is on

based on joint investment; 3) business splits called carve-of 2,400 employees from 11 clients as our full-time employ-

carried out structural reforms. UT Group has provided vari-

expanding the potential of their employees. They can raiseouts; and 4) the transfer of clients’ full-time employees to UT

ees, and have enhanced the relationship of trust with theseous forms of support related to personnel strategy to these

their value, even when their work or conditions may change,

Group, called “In-house Solution®.”companies by maintaining continuity in these employees’clients by utilizing its know-how in the personnel businessas long as an environment where they can continue work-

employment and career.

and track record of full-time employment since its inception.

ing vigorously over the next 10 or 20 years is provided. UT’s

Support services include the reemployment of clients’ re-support schemes for personnel mobilization have been

tiring personnel, in addition to consolidation of their grouphighly praised by clients, leading to further strengthening ofcompanies and mobilization of their workforce in connection

their relationships of trust with us.

The most unique scheme is the “In-house Solution®”, inM&A(acquired companies tobecomes subsidiaries)

Formation ofa joint venture

Company A

Company A

Carve-out(business split)

Company A

In-house Solution®
(full-time employeetransfer)

X businessof A

Specific business
transfer to UT
UT
100%

UT
80%

A
20%

New business

X businessof UTThe Solution Business has various schemes to meetan accelerating pace, needs for the Solution Business will
expand into a wide range of sectors besides the electronics

Outsourced contract
for the entire Manufacturing Div.

workplaces for its employees when their plant is closed

sector. In order to advance the structural workstyle reform

due to a business strategy review, these employees can beof not only manufacturing companies but also across Japan,transferred to a joint venture with UT Group and be assigned

we intend to develop support for personnel mobilization that

Admin. Div. ofCompany A

to a nearby workplace of UT Group, thereby maintaining

is a step ahead of the times.

Manufacturing
Div. of A

Manufacturing
Div. of UTSTEP 1

STEP 2

STEP 3

Formation of a joint venture

Strengthen business

Improve profitability

UT Pabec Co., Ltd.

UT Pabec Co., Ltd.

UT Pabec Co., Ltd.

Panasonic

UT

81%

19%

Panasonic

UT［Manufacturing Div. + Employees］

STEP

As the business environment continues to change atclient needs. For example, if a client is unable to secure

Admin. Div. ofCompany A

Example of UT Pabec Co., Ltd.

Panasonic Battery
Engineering Co., Ltd.

with structural reform.

UT 100%
Employees670 → 1,800

STEP

UT Group acquired an 81% stake inPanasonic Battery Engineering, made it a sub-STEPUT Group took over the JV’s Manufacturing Division and its employees. This group of

UT Group acquired all the equity. Significantly improved profitabi to expand organi-sidiary, and changed the company name to UT

battery specialists strengthened manufacturing

zation.

Pabec.

outsourcing services specializing in batteries.

their employment. In the case of a client which has a non-We expect further
synergies with UT Group’s
hiring and sales
capabilities.

Panasonic Battery Engineering Co., Ltd. joined the UT Group in 2013. After the business integration, the renamed UT Pabec benefitted from strong growth in battery
demand with the acceleration of electrification of vehicles and increased the number of associates* from around 700 in 2013 to morethan 1,800 in April 2021. Without UT Group’s hiring and sales capabilities, the current development could not have been achieved. Due to the

Ken ISHIWATARI

major trend toward a decarbonized society, demand for lithium-ion

President and Representative Director

batteries, our main manufacturing product, will grow further. We

UT Pabec Co., Ltd.

are anticipating greater synergies from UT Group’s hiring andsales capabilities and UT Pabec’s technical capabilities.
Note: “Associate” is a term UT Group has decided to use to describe its employees.

Expanding UT’s share of dispatched workplaces through support for personnel mobilization

Business strategy

The Solution Business segment has been performing well

Major consolidated subsidiaries in the Solution Businesses

32For workers,
from the workers’ viewpoint̶Enhancement of the business baseand growth strategies

How can a workplace with highly-motivated, highly-skilledemployees be developed?
UT Group’s various long-cultivated systems – fromeducational support to recruiting and hiring activities andcareer formation schemes – create high added value,
which is chosen by workers and client companies alike.

35

UT Group’s unique value chain

36

UT Group’s value chain facilitates continuous growth of associates
and the improvement of their working environment.

formance of these high-value-added associates leads to the

Secure personnel based on the needs of client companies.

tured to continuously raise value in a sustainable cycle cen-development of new client companies with better treatment

Support new hires meticulously.

tered on personnel development and the creation of better

and work environments, and then leads to the realization

workplaces. In this sustainable cycle, associates receiveof an environment in which more associates can vigorously

extensive career formation support as well as education

work.

Aim to create added value for client companies and associates*

and training, and raise their skills and motivation. The per-6

Vigorously
work withskills attained

Achieve growth of associates according to their individual career plan
A unique system that enables transfer of workers
for positions at a client company or UT Group
Improve workers’ skills and also their motivation for work
Good performance of highly skilled associates
helps boost development of new workplaces
Note: “Associate” is a term UT Group has decided to use to describe its employees.

Enhancement of the business base and growth strategies

Workplacedevelopment
activities

1

Hiringactivities

7

2

Workplaceand labor
management

3

Support forcareerformation

4

Education anddevelopment

5

Production oftalented
personnel

Creating
a vigorous
workplace

Workplace development activities

Hiring activities

Workplace and labor management

Support for career formation

Education and development

Production of talented personnel

The basic system of UT Group is to

Our hiring activities aim to match theOn-site managers are responsible for

UT Group’s internally certified Career

Based on the Group’s unique three-

A variety of job and transfer opportu-

improve the skills and motivation ofneeds of job seekers to the needs

managing the health and motivation

Partners suggest the best career pathstep education system, we offer a wide

nities are realized with UT’s systems,

associates, under its extensive ca-of client companies on a nationwideof each associate, as well as under-

for each associate and support moti-

range of programs from the basics toincluding One UT (job change fromreer formation support. By proposing

scale, using recruitment methods ac-

standing and managing the statusvated and growing associates throughprofessional knowledge. In addition to

manufacturing operator to high-such a system for fostering person-

cording to the characteristics of eachof the working environment at client

regular career interviews. In the per-collective training and online live train-ly-skilled engineer), Next UT (transfer

nel and enhancing their added value,area. When recruiting, job seekers’

companies and outsourced workplac-sonnel system, we have achieved aing, e-learning and other self-learningfrom UT’s dispatched worker to a

we seek to improve their treatment

wishes and potentials, in addition toes where UT associates work daily. At

fair and highly transparent evaluation

programs are available. In addition, weclient company’s full-time employee)

and the working environment at their

their current skills, are put into consid-

the outsourced workplaces, we havesystem by utilizing a common group-

have educational facilities that allow

and UT Entry (associates’ voluntarydispatched workplaces and devel-

eration. We also secure a wide range

established and have been operating awide system consisting of “baseassociates to develop knowledge andnomination to the position of person

op new clients. A sustainable cycleof recruitment channels, including

labor safety and health management

evaluation”, which is centered on theskills through first-hand experiencein charge of group management or ofcentered on personnel development

marketing for recruitment, call centerssystem based on the OSHMS*, and at

duration of service, attendance rate,of using special equipment. Even theexecutive officer). We respect the will

and the creation of better workplaces

that serve as application points for job

the dispatched workplaces, we workand collaboration, and “job evaluation”,

unexperienced can acquire practicaland careers of associates and haveis a unique value chain and a great

seekers, interviews at offices nation-

hard to create pleasant workplaces

which is centered on job quality.

skills step by step.

established a system to promote evenstrength of UT Group.

wide and online interviews

jointly with client companies. We en-

Main initiatives: Support by Career Partners, regular

Main initiatives: Practical training to nurture pro-

Main initiatives: Recruiting job seekers according toof personnel, business outsourcing proposals, compliance system construction, and workplace improvement
proposals

areas and job characteristics, call centers accepting
applications, interviews at offices nationwide and online
interviews

courage both associates and client

career interviews, enhanced career paths of choice, anda common group HR system for performance evaluation

fessionals by job type, development of a three-step
education system, rich educational opportunities, andcurriculum of hands-on learning at training facilities

the production of talented personnel

Main initiatives: Client development, proposals on use

companies to join us in creating an environment where associates can worksafely and reassured.
Main initiatives: Labor management by on-site man-＊Occupational Safety and Health Management System (OSHMS): A system of health and safety management aimed at

improving the standard in workplaceagers, corporate housing arrangement and management, transportation, labor management, joint safety
and health conference, and regular meetings for workplace improvement with clientsas part of business goals.
Main initiatives: One UT, Next UT, and UT Entry

UT Group’s unique value chain

UT Group’s value chain is unique and strong as it is struc-37

Efforts to strengthen the value creation base
UT Group considers the securing and development of personnel as the foundation of value creationand is committed to creating good workplaces and conducting careful hiring activities.

CLOSE-

38

UP

Women’s Empowerment Promotion Project
to boost diversity in workforce
Reassurance and Bonding to expand Growth of each individual

Manabu SOTOMURAUT Group has strived to provide Reassurance, Bonding, and

our Career Partners support their career formation. Our as-

Growth to associates* since foundation. This is a base to im-sociates are further motivated by our internal training pro-

Joined Recruit Co., Ltd. in 1991. After serving as BELLSYSTEM24 Co., Ltd. as Executive

prove their skills and provide a higher quality workforce tograms and transfer systems. These result in raising value of

Officer, he joined UT Group in 2017 and has been in the current position since 2019.

client companies. We employ dispatched workers as regular

our workers and ultimately, higher customer satisfaction.

employees with an open-ended employment contract, andNote: “Associate” is a term UT Group has decided to use to describe its associates.

Enhancement of the business base and growth strategies

Reassurance

Bonding

GrowthCreation of quality workplaces;
Thorough labor management

Career Partners;
Dispatch in teamTraining programs;
Personnel promotion systems

We ensure stability of life and continuity of

We offer an environment where associ-We offer training programs and career

UT Group has widely accepted people
who have a desire to work̶ has been dominated by young men. However, against theUT Group has been providing work opportunities for alltion, we will also focus on women and the elderly. Recently,

motivated people and has expanded their growth potential

we have been particularly making efforts to expand oppor-

since its foundation. The criteria for employment have nevertunities for women to play an active role.

been limited to age, gender, or education. We have accepted
everyone who wanted to work, reassured them with an in-careers for our associates by hiring themates can communicate with their manag-

opportunities. Systems for internal career

finite-term (open-ended) employment contract and a social

as regular employees with an open-ended

ers and colleagues so that they can workchange and transfer to a client company

insurance coverage, and provided career formation opportunities. These are what we have achieved up to now.

employment contract. They are covered

with peace of mind. Regular interviews

and a system to participate in manage-

by social insurance and some corporate

with a Career Partner are held. A work-

ment based on skills and experience havehousing is available. We also work on de-style of team dispatch that enables work-

also been established.

veloping more workplaces.

ing with colleagues in the same workplace is also established.

Workplace Development Activities to expand the potential of individuals
UT Group is committed to creating good workplaces where

Safety and Health Management System) guidelines.

backdrop of the social issue of the declining working popula-

Building a career platform that aligns
with a diversified workforce
UT Group started the Women’s Empowerment Promotion

In personnel management and development UT Group

Project in April 2021. The main objectives are to develop

has always focused on providing fair and equitable op-

women leaders as role models and to build internal net-

portunities. We have also been constantly dealing with theworks of women associates. We are implementing various

challenges of our associates. This has led to the creation of

measures with the goal of raising the ratio of female man-a unique personnel system that was beyond the thinking ofagers in general office works from 11.3% as of April 2021 toconventional dispatch companies, including our One UT, Next

15% by April 2025. Concerning candidates for female man-

UT, and UT Entry. Our attitude of staying face to face with as-agers in general office work, their ratio is not low at 24.9%

sociates is what lies behind these systems. Our associates

even at present. In the future, we intend to develop the sim-

are at various stages of their lives. Some want to focus onilar trend in local workplaces. Creating workplaces where

associates can expand their potential and feel their growth.

In recent years, we have also been focusing on work-

learning skills, some are busy raising children, and somefemale leaders play an active role nationwide is essential in

A key here is to create a comfortable working environment

place development activities across Japan in response toothers are challenging a second career. We face each asso-

promoting the “Area Platform Strategy” of the Fourth Medi-with a client company which receives dispatched workers.

the need of people who want to work locally. There is also an

ciate’s way of life and present career paths with numerous

um-term Business Plan.

For example, UT Group’s on-site managers are engaged inincrease in the support work for the establishment of com-different colors to them. This history is incorporated in the

managing labor affairs of on-site associates. The on-sitepliance systems for local dispatch operators that have joined

present UT Group.

managers make sure not to cause trouble in clients’ pro-the UT Group through M&A. The creation of a good work-

Now, UT Group is taking on new challenges. So far, ourduction plants, by managing attendance of associates andplace that is thoroughly managed by the on-site manager

workforce in manufacturing dispatch ̶ UT’s main businesslancers.

caring for their physical and mental wellness. In order toand abides by laws and regulations is highly appreciated byprevent industrial accidents, health and safety education

both the workers and client companies.

The ratio of female managers in general office work target:

Associates in general office work by gender (as of April 1, 2021)

is carried out in accordance with the OSHMS (Occupational

Looking ahead to a new era, we are committed to building a career platform that aligns with a diversified workforce, including women, the elderly, non-Japanese, and free-

15% by April 2025!

Hiring Activities for accepting as many as possible
UT Group is actively striving to hire a targeted 1,000 people

online interview system to enable hiring across Japan. The

per month. We have expanded our business by providing

most important thing we keep in mind in hiring is to provide“opportunities to work” to as many people with a willing-

the best employment opportunity for each individual. For

ness to work as possible. Based on this mission, we are now

that purpose, we thoroughly face people and their challenge.

expanding our headquarters call center to accommodate

To provide fair and equitable opportunities to all associates

hiring of as many people as possible. In addition, in lineis the personnel policy that UT Group has cherished since its

with the development of the “Area Platform Strategy” offoundation.

the Fourth Medium-term Business Plan, we are building an

FY3/2021

FY3/2025 (targets)

Number of managers

408̶

Number of female managers

46

73

Ratio of female managers

11.3%

15.0%

Women 209

24.9%
Total
838
Men 62975.1%

Efforts to strengthen the value creation baseThree key factors provided by UT Group to associates

Director and Senior Executive Officer in charge of Management Reformation Division

39

CLOSE-40

UP

To become a company that plays a role in producing people
who can continue to update their learning to society.
Career paths to choose from, according to associates’ life stages and desires

Kentaro YAMAGISHIUT Group has developed career paths that enable each as-

time employees at client companies, and “UT Entry,” whichsociate to grow according to their life stages. This includes

allows any associate to nominate themself for an executive

Since 1991 up to 2015, he had been engaged in research and development in the HR assess-“Good Job,” which allows associates to freely choose theirposition. All of these systems were beyond the thinking ofment area at a company related to Recruit. After being in the management of the artificial

workplace within UT Group, “One UT,” which allows them toconventional dispatch companies. They have truly embodied

change careers within UT Group, “Next UT,” which supports

UT Group’s philosophy of broadening the potential of eachthe transfer of dispatched associates to positions as full-

associate since the Group’s foundation.

Enhancement of the business base and growth strategies

Good Job

One UT

Next UTUT Entry

Select an optimal job

Career path to become
an engineer

Support the transfer to adispatched client company

Career path to become a business
manager or an executive

Enable associates in the manufacturing division to select their own
workplace

Enable a career change from a manufacturing operator to an engineer

Support the transfer for position as
full-time employee at a dispatchedclient company

Enable voluntary nomination to abusiness staff, a manager, or an executive

UT Advanced Career Center (UTACC), a dedicated facility for developing engineers

intelligence business, he joined UT Group in 2018.

UT Group to play the role ofpersonnel development in the manufacturing industry
on behalf of manufacturers

a semiconductor manufacturing equipment engineer. The

In order to realize the growth strategies of the Fourth Medi-

during, and after the training course. In addition, the Centers’

um-term Business Plan, I believe that UT Group has to en-

education system features a two-step education curriculum.

hance its educational function. This has also been a trend inThis means building on basic skills such as communication,

the personnel dispatch industry in recent years.

which is required regardless of the job role, and then on the

It was driven by the revision of the Worker Dispatchingspecialized knowledge and skills that are specific to the job
type. Unless you have solid fundamental social skills, youment measures for the stable employment of dispatchedcannot use the expertise, which is added on top of it, in theworkers and to support their career formation. Since then,actual field. As we have the training know-how accumulatedsocial awareness has changed dramatically. Meanwhile,in the UTACC engineer training facility and other programs,
our associates are able to make a career change fromscratch.

UT Group operates the UT Advanced Career Center (UTACC),

group work to nurture a culture of help and competing witha dedicated facility that fosters manufacturing engineers

each other in addition to obtaining knowledge. Each learnerchallenge of securing sufficient time to nurture young tal-

who become ready to work at the manufacturing site. UTACC

is given guidance tailored to the learner’s competence by re-ents in a rapidly changing business environment. Their ex-

has a variety of practical programs to train associates withpeated interviews by a lecturer before, during, and after thepectations for dispatched workers are rising year after year.

no experience in engineering to become engineers. The

training course.

In other words, supplying value-added dispatched workers
to these manufacturers directly lead to increase their corporate value.

Technology Skill Development Centers
for developing semiconductor manufacturing equipment engineersof proficiency, and the learner receives guidance before,

Act in 2015, which required dispatch companies to imple-

large manufacturers ̶ major clients of UT Group ̶ face thecourses from basic training to expert training include a lot of

training period is set up according to the learner’s level

Optimal career formation for each associate
The goal is to help our associates to develop theircareers as they like

UT Group has expanded the scope of its business since

In the development of our associates, what we emphasize

its foundation, with a focus on the growth of our associates

most is their learning attitude. Anyone can change at any

and the reassurance of their lives. As we have consistently

age if the person has the right learning attitude. Even thosestrived to promote the career formation of our associates

who have entered the dispatch industry with not much ca-

In response to the growing demand for semiconductorsture), and Kumamoto City (Kumamoto Prefecture) as train-

since 1995, the organizational culture to think first about

reer orientation can change their future by taking up theworldwide, UT Group has established the UT Group Technol-

ing facilities for developing semiconductor manufacturing

broadening the potential of each associate is rooted in thechallenge of a new job at UT Group, and becoming a new

ogy Skill Development Centers in four locations, in Kitakami

equipment engineers. Through training from basic working

mindset of our on-site managers throughout Japan. In otherperson, in other words, by doing successful re-learning.

City (Iwate Prefecture) in December 2020, and subsequently

skills to knowledge and skills in specialized areas, we planwords, UT Group does not merely set goals to realize the

Our corporate mission is to offer work opportunities toin Yokkaichi City (Mie Prefecture), Osaka City (Osaka Prefec-

to develop 3,000 engineers in three years.

growth of associates but goes deeper to devise measures topeople who are willing to work, build good workplaces withachieve these and makes serious efforts to implement them.

our clients, and continually increase the number of people

The Centersʼ unique
two-step education curriculum［STEP 2］Specialized skills

May 2021

1 Knowledge

Osaka, Osaka Pref.

2 Work elements and technology

March 2021

Dec. 2020

Kumamoto,
Kumamoto Pref.

Kitakami, Iwate Pref.

3 Safety

LectureExperience
Repetitive training［STEP 1］Basic skills

1 Communication in operation

March 2021

Yokkaichi, Mie Pref.

Comprehension
confirmation

2 PC skills

Basic communication training
Understanding and training of elements tobecome a member of a team or workplace

Mock examination●●

Opened 4 Technology Skill Development Centers (Dec. 2020 - May 2021)

Two-step education curriculum to develop Basic skills required for all job types asa base and then Specialized skills required for a specific job

The core of personnel development at UT Group is to

who realize their own potential and live their lives seriously

support manufacturing operators advance career to man-with their own will. As the trend to take charge of humanufacturing engineers for production technology and facility

resource development on behalf of client companies accel-

maintenance. The latest example of our measures is theerates, sending out as many people as possible into society

opening of the Technology Skill Development Centers at thewho can continue to “update their learning” will become theend of 2020. The Centers are dedicated facilities to nurture

new role of UT Group.

manufacturing equipment engineers in the semiconductor

Going forward, UT Group aims to build a system that en-

field. The Centers are now operating at four locations nation-

ables “career development of your choice.” “Individual opti-

wide ̶ Kitakami City (Iwate Prefecture), Yokkaichi City (Miemization” of education will require the construction of AI and

Prefecture), Osaka City (Osaka Prefecture), and Kumamotoe-learning systems. In order to realize our target of “Creating

City (Kumamoto Prefecture). We plan to develop 3,000 en-a ‘diversity & inclusion’ workstyle platform” set forth in thegineers in three years through training from basic working

Fourth Medium-term Business Plan, the Career Develop-

skills to knowledge and skills in specialized areas.

ment Division intends to keep updating itself at all times.

A unique feature of the Centers is that those with noexperience can take up the challenge of changing career toEfforts to strengthen the value creation basePrimary career paths

Senior Executive Officer in charge of Career Development Division

41

Voices from UT associates

42

Associates working nationwide embody in their workplace the “One-to-One Spirit”
̶ the unchanged values of UT Group.

Presence｜ Increase your presence

Challenging｜ Take up the challenge

Urged by a desire to increase my own value,
I moved into the unknown world of the semiconductor industry.

Everyday at UT is to me a history of challenges.
My workplace has a constantly stimulating environment.

er. After completing the six-week course, I began working

I am in charge of the education and life support ofThiha SOE

dream. While attending a vocational school for sports, I

at a semiconductor manufacturer’s plant in January 2021,

non-Japanese technical interns from Asian countries,

Joined UT Aim Co., Ltd. in 2017

was not sure what to do after graduation. I just happened

together with my four colleagues who also completed themainly from Vietnam and Indonesia, in UT Aim’s Global

to look at UT Group’ application form that my friend had,same tough course with me.

Business Unit, which is responsible for overseas business

When I joined UT Aim at the age of 20, I had no particular

Currently, East Japan
Business Section,

operations. I came to Japan from Myanmar in 2007 andnew to me and, honestly speaking, I memorized the work

after working other industries, I joined UT Global (now UT

After I joined UT Aim, I worked at a factory in Niigata

process by using my hands and body. There were someAim) in 2017.

Prefecture, where I was responsible for the assembly pro-difficult processes, but I overcame them one by one inEveryday at UT is to me a history of challenges. In thecess of LED lighting fixtures. It was a kind of simple work

the last eight months. It made me happy to be able to do

first year, I took up a challenge to devise a new businessand I began to think about doing something different.

things that I could not do. As more tasks are assigned toplan, while working at the headquarters. The proposal I

Then in July 2020 I was told that the production line willme, I feel that my potential has expanded.

presented made into the final review round. Although myme to pursue my desire. In the fourth year, I expanded my

My next goal is to become a workplace leader whobusiness proposal was not materialized, I received greattask to telephone sales using Japanese. In the current

When I was thinking about what to do next, the man-can handle problems. The first step is to catch up with the

feedback. In the second year, I applied for a selective

fifth year (2021), while caring for non-Japanese techni-ager in charge offered me a job at a semiconductor man-leader of my team. I am always aware of the leader who

training system named the Super Manager School (cur-cal interns, I am striving to improve skills so that I canufacturing plant in Kitakami City, Iwate Prefecture. The

can instantly give an answer to any question. And if I canrently Stage-up Training). I submitted a research paper

achieve results in sales.

semiconductor work seemed to be difficult, and I had no

make a good income, I want to send more money to myand was selected as one of 55 students from all over theI have a dream. It is to start up a new business utiliz-

knowledge. Back then, I was not even sure about using

family. I want to proudly tell my mother who has raised

country. Then in the third year, I applied and was accepted

ing non-Japanese workers. And eventually, I would likea PC and wondered about what I should do, but I roused

me and my two sisters what kind of work I am now doing.

for a manager in the manufacturing workplace. I wanted

to become a business person who can serve as a bridge

myself to take up this challenge to become a new me and

To do so, first, I need to be able to do more tasks on myto learn not only the theory of management but also thebetween my home country, Myanmar, and Japan. That isincrease my value.

own. I am really glad to have joined the UT Group, which

practical skills in workplace, and my boss encouraged

why I continue to take up the challenges at UT Group.

Enhancement of the business base and growth strategies

opportunity.

be closed next month.

I took a training course at the Tohoku Technology Skill
Development Center in Kitakami City. It started with how
to use a PC and tools and I also learned about difficult
chemistry and electromagnetism. I did not study thesesubjects at high school and I felt like my head was going
to explode every day. I was able to overcome the challenge because I and my colleagues encouraged each oth-has expanded my potential in the unknown world of thesemiconductor industry.

All for one｜ Exceed the simple sum of targets, by a team effort

I would like to share with many colleagues
the joy of tackling a big goal together.
Since joining UT Pabec in 1997, I have been watching theYuri KINOSHITAUT Group’s business expansion, while I took a childcare

Joined UT Pabec Co., Ltd. in 1997

leave in between. At UT Pabec, which is engaged in battery manufacturing, I am currently working on the development of managers.

Currently, Office Manager ofKosai Office, and Senior
Manager of Shonan Branch,
Product Service Head Office

The appeal of working in the UT Group is that you
work toward high goals with your colleagues and feelthe joy of achieving them. The management consistently
imposes challenging numerical goals to workplaces but
Takahiko ISHIBASHI

leaves how they can be achieved to leaders in workplac-

Joined UT Aim Co., Ltd. in 2017

es. As a leader, I have experienced it many times. My role

Currently, Iwate Kitakami CF

there is clear. It is to clearly communicate the vision of

Manufacturing North Japan Business Unit

the top management to those in the workplace. Sharing
goals with each and every associate helps unite the workplace. As a manager, I therefore had a close communication with those in the workplace. For me, all associates I
was in charge of are like family members. In numerous
occasions, I talked over with associates who expressed tome “The work is tough. I want to quit.” and eventually toldme “I will try a little more!” Such anecdotal experiences

remind me that I am continuing this job because I reallylike people.
My current goal is to increase female managers at
workplaces across Japan. I believe the perspective of
women who tend to notice fine details can be a greatstrength in managing the manufacturing workplace. I
want to create a vigorous workplace empowering people,
and to share with more and more people the joy of working as a team toward a big goal.

Voices from UT associates

Global Business Unit

Initially everything I saw and heard at the plant was

and I applied because I was attracted for the local work

43

Fairness｜ Stick to fairness

One-to-One ｜ We stand by people and stay face to face with them.

As a manager, I have secured the opportunity
for each associate to play empowered and vigorous roles.

“One-to-One Spirit” has been built up at worksites
various workplaces and applied for an executive officer

During the COVID-19 crisis in 2020, I did not hesitate

Aim) in 2005 as the first cohort of new hires. I remember

position in 2016. You have now become an executive of-facturing sites are unlikely to survive in the future. This is

to make judgment in workplaces. The most importantthat I was really glad that Nihon Aim was chosen by aficer in a company of 20,000 associates but have not be-because “on-site capability” and “contracting capability”

thing was to protect the employment. In order to ensure

graduate with a master’s degree in science who had seri-come big-headed. You treat everyone equally. I think this– the capabilities to nurture workers in worksite, work onthat every associate could keep working vigorously re-ously studied physics.

is truly amazing.

the quality control, and create the worksite together withgardless of the circumstances, I properly responded while

Yamada̶ Semiconductor was a keyword I searched,

Yamada̶That is thanks to your guidance, Tanaka-san,a client company – are always required of dispatch com-assuming all risks. Fortunately, the Higashi Kumamoto

which led me to Nihon Aim. You were in charge of hiring

and that of other senior members. Just as you stay face topanies. This makes my job difficult but also worthwhile.

CF was not greatly affected by the COVID-19, and sinceand my first impression of you is of a nice uncle from Osa-

face with each new hire like a family member and listen

At present, I am currently in charge of the Higashi Kuma-

the fall of 2020, the factory operation has returned to theka. While holding out a can of coffee, you said to me “Whatpolitely, I have always stayed face to face with my associ-moto Client Factory (CF) and the Kokubu CF in Kagoshima

pre-COVID-19 level. The semiconductor business is in ado you want to do in the future?” You politely explained toates in the workplace I was in charge of.

Prefecture as Career Manager of UT Aim. For many years,

further growth phase as global demand increases. If weme that Nihon Aim was looking for future executive candi-

Tanaka̶The same can be said for President Wakaya-

UT Aim has been engaged in large-scale outsourced work

receive a larger order in the future, the personnel devel-

dates, and I thought that this company took young people,

ma. His attitude has not changed for over 25 years. He

opment will become increasingly important.

such as new graduates, seriously.

always makes sure to share our goals with associates inof semiconductor plants of major manufacturers, and has

My next mission is to nurture a manager as my suc-Tanaka̶Back then, when I said “outsourcing,” appli-

workplaces no matter how large our Group has grown,

I joined UT Aim in 2007, moving from a competitor incessor. It is a great pleasure for me to nurture young

cants couldn’t understand this well. I tried to seriously

and he maintains an environment where everyone has a

the same industry, and had been a manager of the Kokubu

people who will play a role in the development of the re-convince you that this company could offer various oppor-

fair opportunity.

CF. In 2015 I was also assigned to look after the Higashi

gion. Employees who are conscious of their strengths andtunities to you.

Yamada̶You have to keep on working on the frontline,

Kumamoto CF. Then the Kumamoto Earthquake of a mag-are willing to grow are highly evaluated on the worksite,

Yamada̶After I joined Nihon Aim, I met you only about

too, Tanaka-san.

nitude of over 6 hit us in April 2016. It caused great dam-which is leading into a virtuous cycle of personnel devel-

once a year or so but, every time, you greeted me nicely.

Tanaka̶I will soon be 71 years old, but if I can be ofage to the factory where I work. It was forced to suspend

opment and quality improvement. I would like to convey

Tanaka̶I always asked you to come and speak at ahelp, I want to keep working hard. I want to encounter

operation for a long time, and several of my colleagues

my core ideas to the next generation so that all associates

recruitment briefing session for new hires, as a speech by

more nice students.

quit the job.

can maintain an environment where they can all work

an associate working on the frontline makes the greatest

Yamada̶I think it is most important to to do your bestwith empowerment and vigor.

impression on prospective applicants.

regardless of your position. Now, as a person responsible

ates I was in charge could have lost job, I decided to keep

Yamada ̶ Whenever I met you at the recruitment

for the Area Strategy, I feel it is rewarding to share with

one thing in my mind. It is to make each associate become

briefing session, I felt like I was back at the beginningand communicate UT Group’s philosophy to new asso-

conscious of own strength. If you have skills that can be

and it was an important event for me. As I was a bit over-ciates who joined our Group from acquired companies.

used anywhere, you do not need to worry about temporar-whelmed with my expanding work assignment and re-Tanaka̶ So, here too, we have to meet face to face

ily losing job. I thus question associates on the worksite

sponsibility, I looked at you, reminded myself what I want-with each other and overcome each challenge.

about their strengths. Since the Kumamoto Earthquake, I

ed to do at this company, and reset myself.

Yamada̶ I think that’s exactly what the UT Group’s

have been conscious of this in managing workplaces.

Tanaka̶ Mie, Kyoto, Shiga... you were a manager in“One-to-one Spirit” is about.

more than 400 technical associates in the area.

At the time, on the verge of a crisis that all 450 associ-Tsutsoshi YAMADA (right)
Senior Executive Officer in charge ofKoji ANDO
Joined UT Aim Co., Ltd. in 2007

Area Strategy Business Division
UT Group

Currently, Career Manager of Kokubu

Masakazu TANAKA (left)

CF and Higashi Kumamoto CF, and

New Graduate Recruiter Section

Manager of the First Group, Second

New Graduate Recruiting Unit, Group

Section of Kyushu,

Recruiting Division

Manufacturing Kyushu Business Unit

UT Group

Voices from UT associates

Enhancement of the business base and growth strategies

Tanaka̶Yamada-san, you joined Nihon Aim (now UTDispatch companies that simply send people to manu-

44

45

UT Group’s future depictedin the Fourth Medium-term Business Plan

46

A platform that supports diversity of workstyle is needed.
UT Group will create a future that will broaden the potential of workers.

UT VISION 2030

Toward a company that realizes diverse forms of workstyles tailored to each associate
Until now, the primary hiring target of UT Group’s businessin addition to provision of growth opportunities, will become

model, which is focused on manufacturing dispatch, hasmore important. The COVID-19 pandemic has also boosted

been young men who want to develop skills and build expe-

demand to continue the same work in the same area. In theBased on the foundation that we have established, we aim to help achieve a sustainable society

rience. We are now expanding the target to include women,

future, the form of support for career formation will change

by balancing an environment in which everyone with a desire to work can work vigorously, and an

the elderly, non-Japanese, and freelancers in the Fourth Me-

to fit each individual’s life stage.

environment in which companies that use workers can achieve growth even in the changing busi-

dium-term Business Plan.

Becoming the company with a future workstyle platform

ness environment.

paths than ever before will need to be available. We will

areas, including medium-sized factories, offices, and other

therefore further enhance assessment to find the best job

industries. In addition, our service offerings will be extended

for each individual and the education system for the skills

to business process outsourcing (BPO), with the aim of help-

required for the job. The UT Group will continue to evolve to

ing more companies grow.

achieve its long-term vision of “Becoming the company with

By launching the new strategy, the value offered to work-

Expand coverage of the career platforma future workstyle platform.”ers will also diversify. Provision of stable work opportunities,

The recruitment target, which is mainly young men, is being expanded to include women, theelderly, and non-Japanese. The client target is also being expanded to medium-sized factories,

The future workstyle platform

offices, and other industries, in addition to large manufacturing companies.

UT Group will offer more diverse jobs than ever before in order to respond to all those who have a desire to work.

Respond to various workstyles in accordance with the life stage of associates
We are responding to the needs of people who want to advance their careers as well as those
who want a stable job in a local area. Our support for career formation is in accordance with thelife stage of each associate.

Supply of highly-skilled workers

Mainly young men

Manufacturers(large factories)

Expand job types and career paths
We are further expanding workstyle options through business expansion. The assessment and education system to realize various forms of workstyles is also being enhanced throughout Japan.
Expand job types and training courses
Women

Numerical goals and commitments of the Fourth Mediumterm Business Plan
We are focusing on increasing the number of technical employees
and increasing sales growth in FY3/2022, in order to achieve EBITDAof ¥15 billion yen in FY3/2023.

Sales target (billion yen)

30% growththrough aggressive
market share expansion
and enhanced hiring● EBITDA growth rate: 30% or more (CAGR starting from
FY3/2021)

by business expansion. The Fourth Medium-term Business Plan
includes strategic M&A activities aimed at formation of a long-term

2,000

300
Affected byadvance costs
for sales growth
in FY22150 150

1,500 1,500

The UT Group emphasizes earnings growth as much as sales growth

1,300
1,151

86

60

79

The UT Group recognizes return to shareholders as an important

FY21

FY22

FY23

FY24

The Fourth Medium-term
Business Plan period

FY25

FY20/3

FY21

90

FY22

FY24

through strategic investment as well as return to shareholders. We
are committed to a total return ratio of 30% or more by dividend pay●

Gross D/E ratio: 1.0 or less (at the end of FY3/2025)

We intend to achieve both a high growth and a stable financial position by balancing debts with shareholders’ equity, which stems fromefficient business operation and capital policy.

事務・経理

Other

Establish worker dispatch services to offices, in addition to manufacturing plants.

Other industries

Support for diverse career paths

FY25

The Fourth Medium-term
Business Plan period

management priority. We intend to achieve a corporate growthment and share buyback.

Administrative,
accounting

Want to develop useful skills in the future. Want to work reassured even in aforeign country.
FY23

Expand UTʼs client base across all domestic companies, and promote worker
dispatch services to medium-sized local
companies.

Offices

Design anddevelopment
Labor
management

Non-Japanesestarting from FY3/2021.
FY20/3

Facility
maintenance

200

100

earnings growth and set 30% or more CAGR in EBITDA for the period

Total return ratio: 30% or more

Elderly
Want to work even if I get older. Reduce
working time considering my health.

120

1,088
1,011

business base. We therefore use EBITDA to show our commitment in●

Manufacturing
process

Target ¥15bn in FY23,
the halfway point

1,800

Commitments

Want to reduce workload after childbirth.
Want to seek for workstyle that fits thelife stage.

EBITDA target (billion yen)

Manufacturers(medium-sized factories)

Total return ratio: The total return ratio represents the proportion of shareholder
return to net profit.
Total return ratio = (Dividends + Shares bought back) / Net profit after tax
Gross D/E ratio: The gross debt/equity ratio indicates the ratio of interest-bearing
debt to shareholders’ equity of the fund sources of a company. A ratio of 1.0 or lessis generally regarded as indicating a healthy financial position.

In addition to manufacturing worker dispatch, expand into staffing services to diverse industries and provide comprehensive
outsourced services in labor management.

Freelancers

BPO

Want information on a variety of jobs thatcan broaden my career. Want to work at
my preferred time.

BPO for multiple industries. The internal
infrastructure was established throughthe operation of the worker dispatch
business.

Offering of good workplaces

Expansion of workforce attributes

Expansion of client base

UT Group’s future depicted in the Fourth Medium-term Business Plan

Enhancement of the business base and growth strategies

What we want to accomplish in the Fourth Medium-term Business Plan

As workforce attributes expand, more diverse career

The client base will also be expanded to a wide range of47

Aiming to further increase the value of workers

48

The Fourth Medium-term Business Plan has six key themes, from which three growth strategies
have been developed and steadily implemented.

Six main themes of the Fourth Medium-term Business Plan
Develop and provide
manufacturing workers

Manufacturing Business

Create vigorous work
environment empowering
non-Japanese workers

In Japan, where the population of production ages is declining, manufacturing

Exploit work areas
for highly-skilled engineers4
5
6

Accelerate support
for personnel mobilization

Build a business basein new job areas

Solution Businessa robust base as a core business. Specifically, we will incorporate HR Technology

One-Stop Strategy for Major Manufacturers

and other technologies into UT Group’s core functions of hiring and personnel de-Develop and provide manufacturing workers

Solution Strategy
Accelerate support
for personnel mobilization

velopment, in order to improve functions, raise efficiency, and enhance the qualityof corporate services. At the same time, we will effectively promote the career formation of our associates in response to their career-oriented workstyle.

Area Platform Strategy
Expand area platforms

Exploit work areas for highly-skilled engineers

Build a business basein new job areas

Base building through M&As

Base building for existing business companies

Depending on their life stage, some associates may prefer a stability-first workstyle. We will therefore include a function of offering a stable living base in the
career platform and further expand that role. Specifically, we will expand therole of our regional offices so that we can quickly respond to different local
needs of clients and reorganize to enable them make own decisions from sales

Create vigorous work environment
empowering non-Japanese workers

Priority growth strategy
in the 5-year plan period

Base building through M&As
Longer-term measures for business baseto recruitment.

Three growth strategies

sites that support Japan’s manufacturing are facing a major challenge of securing
workers. Meanwhile, in emerging countries, the manufacturing industry is expected to grow along with its economic development. Anticipating the growing needsof non-Japanese who want to acquire skills in Japan and work in their home coun-

One-Stop Strategy for Major
Manufacturers

try and the growing needs of Japanese companies that build manufacturing bases

Expand service to the engineer areain emerging countries, we aim to foster non-Japanese workers in Japan and serve

We will leverage our existing client base to expand

as a bridge between Japan and emerging countries.

Increase share in allprocesses of clients’plantsthe field of manufacturing engineers and strengthen our competitiveness. By promoting careeradvancement from manufacturing operators toTechnology is critical to improving corporate productivity. In addition, more highly-skilled people with knowledge and experience across business domains are

manufacturing engineers, we promote long-term
retention of technical associates and increase ourshare in all processes of clients’ plants.

needed due to an increase in product development where software and networking are integrated with manufacturing. We will expand business and enhancefunctions in this area, through alliance with proven large companies and M&As, in

Area Platform Strategy

order to respond to the needs of engineers who want to continue working in the

Build a structure that will allow you
to grow your career locallytechnical field by expanding their scale and enhancing their functions.

We will accelerate industry reorganization by promoting alliance and M&A with dispatch operatorswith a solid local business base. Through man-

The Elderly Employment Stabilization Act, which was revised as part of the Jap-

agement integration, we will enhance local work-

anese government’s campaign for a society in which all 100 million people canplaces, build a career platform that encompasses

work actively, requires companies to rehire those who want to work after retirement. UT Group aims to support continued employment by establishing joint-venture companies, particularly for large companies with large numbers of employees, and to develop workplaces where the wealth of experience of the elderly isused in a variety of fields.

Solution Strategy
Promote support for personnel
mobilization of major manufacturers
We will provide support for personnel mobilizaof large companies. We will support their personnel strategies with a focus on reviewing their

non-core products and office dispatching, as well as personnel engaged in these

fixed workforce composition and business portfo-

areas from manufacturers which need to reorganize operations due to changes inlio and solving their managerial issues including

the business environment and management strategy. We will establish a business

reemployment of their retiring employees.

base in new areas such as office dispatch and business process outsourcing (BPO),
based on new companies that have joined in UT’s Solution Business.

Build a career platform that encompasses the area

the area, and improve profitability.

tion in response to the structural reform demand

UT Group takes over operations in non-core businesses, such as manufacturing ofCompetition of small
dispatch operators within
an area

Furtherincrease indemand forstructural reform due to thepost-COVID-19
changing business environment

Aiming to further increase the value of workers

Enhancement of the business base and growth strategies

12

3

Engineering BusinessWe will further strengthen and expand the industry-leading manufacturing personnel services established in the third medium-term business plan, and makeExpand area platforms

The basic strategy for each segment

49

Expanding and enhancing business areas
mainly through M&A

CLOSE-UT Group is actively engaged in good workplace development through M&A across Japanto promote the Fourth Medium-term Business Plan.

M&A-driven good workplace development across JapanUP

Building better relationships between workers
and client companies through M&A
Satoshi MORIYASU

Since the start of the 2020s, we have been actively strength-

es, this will also improve profitability through the integration

ening our business base through M&A. Among the six key

of career platforms. We plan to roll out the M&A strategy

Started his career with a consulting farm. After serving as Director of Peach John Co., Ltd.,

themes of the Fourth Medium-term Business Plan, the four

throughout Japan.

Manager of of G.U. Co., Ltd. and Executive Officer of TAKE AND GIVE NEEDS Co., Ltd., he isrelevant themes are 1) to expand area platforms; 2) to ex-

Among several schemes for M&A, the main one is busi-

ploit work areas for highly-skilled engineers; 3) to accelerate

ness integration through acquisition of 100% of equity of a

support for personnel mobilization; and 4) to create vigorouscompany. The way in which a deal proceeds depends on dis-

work environment empowering non-Japanese workers. In

cussions with the company to be affiliated. In all cases, weparticular, in the Area Platform Strategy, we have produced

will promote M&A that can result in improving the value ofseveral achievements in partnerships and M&A with local

workers and client companies.

of dispatch operators, driven by client companies’ increased

that strongly drives UT Group’s Four Medium-term Businessawareness of compliance, and business deterioration trig-

Plan. Of the six key themes, the M&A strategy is incorporat-

gered by COVID-19 since 2020. UT Group’s Business Devel-

ed in the three themes of expanding area platforms, exploit-

opment Division currently has four members. Each of us

Support System Co., Ltd.(Osaka Prefecture): Comprehensive personnel dispatch and outsourcing business centered in the Kansai

ing work areas for highly-skilled engineers, and accelerating

has over 10 years of experience practical M&A and related

region. UT acquired all shares and made it a consolidated subsidiary.

support for personnel mobilization. In addition, M&A willbusinesses in the areas of corporate management planning,

have a significant effect on the theme of creating vigorous

financial advice, and management consulting. This enables

work environment empowering non-Japanese workers.

us to perform due diligence, post-integration planning, andThree Toshiba Group companies (Kanagawa Prefecture): The three Toshiba Group companies engaged in personnel dispatch andOctober

Among them, we are making particular efforts on M&A

post-merger integration (PMI) practice at a level of expe-

Mito Engineering Service Co., Ltd. (currently UT MESC Co., Ltd., Ibaraki Prefecture): A Hitachi Group company engaged in man-aimed at expanding the area platform. Partly due to therience equivalent to that of M&A specialists at consulting

ufacturing outsourcing and dispatch of design engineers for elevators. UT acquired all shares and made it a consolidated subsidiary.

COVID-19 impact, there is an increasing demand for people

firms. We always make sure to include a post-integration

to work in their local community, and UT Group needs to de-business manager from the early stage of the M&A project.

velop jobs in each area. That is why the strategy to acquire a

We believe this is of utmost importance in PMI to ensure that

local dispatch operator which has established a local hiring

the business manager is committed to grouping in with thesystem and a network with client companies and make it

acquired company and to gain trust in its workplaces.

Green Speed Joint Stock Company (Vietnam): A holding company of two staffing companies in Vietnam. UT acquired a 51% stakeand entered into a capital alliance. To serve as a career bridge of non-Japanese technical interns.

November

Seekel Holdings (Ibaraki Prefecture): Comprehensive personnel dispatch and outsourcing business based in Ibaraki Prefecture. UTacquired all shares and made it a consolidated subsidiary.

2021 AprilMay

to the revised Worker Dispatching Act of 2015, the selection

our subsidiary is greatly beneficial for UT Group to build a

Aki-Japan Corp. (Tokyo): An engineer dispatching operator specialized in the construction industry. UT acquired a 20% stake of abusiness base that is closely tied to the area. Collaboration

special holding company which held all shares of Aki-Japan, and entered into a capital alliance, on the premise of a business alliance.

with UT Group will also benefit dispatch workers working
The workers can use UT Group’s personnel development

The development of work areas for highly-skilled
engineers and the creation of a vigorous work
environment empowering non-Japanese workers.

SURIEMU Corp. (Aichi Prefecture): Comprehensive personnel dispatch and contracting business based in Aichi Prefecture. Its

programs, and compliance at workplaces will be enhanced,

In the future, we will also focus on M&A measures in theworkforce included many Japanese-Brazilians. UT acquired all shares and made it a consolidated subsidiary.

increasing the trust of the client. We have recently seen an

development of work areas for highly-skilled engineers.

increasing number of cases involving business succession

We can also expect collaboration with companies that have

due to the aging of the business owner.

expertise in technical education and personnel develop-

Progress Group, Co., Ltd. (Aichi Prefecture): Comprehensive personnel dispatch and contracting business based in Aichi Prefecture. Its workforce were Japanese and people of Japanese descent. UT acquired all shares and made it a consolidated subsidiary.

Positioning of M&A in the Fourth Medium-term Business Plan

Expand area platforms

Accelerate support for
personnel mobilization

Exploit work areas forhighly-skilled engineers

Promote partnerships and M&A
with regional dispatch operators
to enhance workplaces in the area
and improve profitability throughintegration into career platforms.

Strengthen the business base ofhighly-skilled engineers throughpartnerships with major dispatching operators and M&A of dispatch
operators specializing in engineers.

Acquired:

Acquired:

Support System
SeekelProgress Group, etc.

Aki-Japan, etc.

Promote support for personnel
mobilization and firmly incorporate demand for structural reformfrom large companies, which is
expected to expand due to thechanging business environment.

M&A

Create vigorous work
environment empowering
non-Japanese workers
While solidifying the base of thelabor management agency business in Japan, establish a business base for personnel services
overseas through overseas business alliances and M&A.

for local dispatch operators and their client companies.

I would like to emphasize that we are not making ac-

ment. We also believe that creating an environment where

quisitions to secure immediate sales. We are carrying them

non-Japanese can work with vigor is the mission of UT

out to accelerate the realization of the Fourth Medium-termGroup, and we are focusing our attention on dispatch oper-

Business Plan and to increase our associates nationwide

ators which have connections with the community of people

in order to realize UT Group’s mission to “Create vigorousof Japanese descent.

workplaces empowering workers” together.

Again, we do not pursue superficial M&A that entails

There are detailed numerical criteria for evaluating

re-labeling acquired companies. Our first priority is to pro-target companies for M&A, such as sales volume and themote a relationship of trust between the workers and cli-

number of employees. Of course, we also closely simulateents of the acquired company and our group. We believe it

how much the target company’s profitability can be raised

is important to bring in associates who can empathize with
UT Group’s values. We explain to those in the acquired com-

Acquired:

Acquired:when acquired. However, I believe that even more important

UT Toshiba
UT MESC (former Mito Engineering Service), etc.

Green Speed Joint Stock Company

is how it fits with UT Group’s corporate philosophy and poli-pany UT Group’s culture of creating fair opportunities forcies. In interviews with the owner and the top management

everyone and making it a business and UT’s Iong-cherishedof the target company in its assessment, we particularly fo-

values. We also want to expand the nationwide network ofcus on their views of employees and their corporate culture.

associates who appreciate UT Group’s values. We are dedi-

If the company can share the values of UT Group, it makes

cated to advance M&As to build better relationships between

sense to have that company join UT Group.

workers and client companies.

We are receiving more and more prospective local M&A

Expanding and enhancing business areas mainly through M&A

Enhancement of the business base and growth strategies

I believe that the M&A strategy will play the role of a driverother activities have become UT’s consolidated subsidiaries.

Julycurrently Senior Executive Officer of UT Group.

deals due to an increase in costs associated with responding

Major M&As (2020 March - 2021 May)

April

Senior Executive Officer in charge of Business Development Division

The M&A strategy is essential
for building area platforms.

dispatch operators. In addition to enhancing local workplac-

2020 March50

UT Group today
̶Financial and non-financial highlights
Since the fall of 2020, as the COVID-19 impact
had settled down, client plants recovered production.
In response to their growing personnel demand,
UT Group took a major step forward in its hiring activities.

53

Financial position and operating results for FY3/2021

54Group. These resulted in a significant increase in the num-came consolidated subsidiaries of UT Group on April 1, 2020,

scale recovery stage in production activities. In addition,

ber of technical employees. In addition, since January 2021,

and Mito Engineering Service Co., Ltd., a Hitachi Group com-under the Area Platform Strategy and Solution Strategy

Green Speed Joint Stock Company, which owned 100% ofpany, also became a consolidated subsidiary of UT Group on

set forth in the Medium-term Business Plan, we promoted

the shares of Green Speed Co., Ltd. and Hoang Nhan Co.,

July 1, 2020. These companies also contributed to increase

The spread of COVID-19, which began in January 2020, con-alliances with and M&As of local leading companies, accep-Ltd., which had been engaged in the staffing business inin segment sales and profit.

tinued to have a significant impact on the world economy

tance of personnel from major corporate groups, and busi-

Vietnam, has become a consolidated subsidiary.

and social life, even after mid-2021. In March 2020, the To-

ness transfer. In FY3/2021 nine companies joined the UT

kyo Olympic and Paralympic Games was postponed for one

Group as consolidated subsidiaries.

As a result, in FY3/2021, the segment recorded net sales

Because of these developments, the Manufacturing Busi-of ¥29,717 million (up 113.3% from ¥13,930 million in theness has begun to increase quarterly sales since the thirdprevious fiscal year), segment profit of ¥1,309 million (upyear, and in April, seven prefectures issued an emergency

As a result, we renewed record-highs in net sales andquarter. Segment profit, however, decreased y-o-y due to27.0% from ¥1,031 million), and the number of technicaldeclaration. The spread of COVID-19 did not settle down

the number of technical employees in FY3/2021, as wea significant increase in hiring expenses, which were posi-

employees of 4,469 (up 1,499 from 2,970 a year ago).

and we started FY3/2021 in April 2020 in the midst of therecorded net sales of ¥115,131 million (up 13.8% fromtioned as advance investment.

COVID-19 pandemic.

¥101,191 million in fiscal 2019), operating profit of ¥7,163

As a result, in FY3/2021, the Manufacturing Business

The environment surrounding UT Group was also greatly

million (down 10.9% from ¥8,040 million), ordinary profit ofsegment recorded net sales of ¥69,252 million (down 1.8%

In the Engineering Business, as a part of the business strat-

affected, and in the automotive-related sector, supply chain¥7,191 million (down 11.4% from ¥8,113 million), and profit

from ¥70,527 million in the previous fiscal year) and seg-egy review, we sold one subsidiary engaged in dispatch of

disruption forced some client plants to temporarily suspend

attributable to owners of the parent of ¥4,299 million (downment profit of ¥3,437 million (down 42.2% from ¥5,951 mil-IT engineers on January 29, 2021. In addition, One UT, ouroperation, which resulted in order suspension for some of

4.6% from ¥4,509 million ). The number of technical employ-lion), while the number of technical employees was 29,956

internal system that encourages employee status transfer

UT’s associates. However, since the lifting of the emergency

ees was 37,012 (up 17,378 from 19,634 a year ago).

Engineering Business

Financial and non-financial highlights(up 15,912 from 14,044 a year ago). Excluding Green Speedfrom manufacturing operators to engineers, was difficult tostate in May 2020, the number of temporarily-suspended

Joint Stock Company, Green Speed and Hoang Nhan, statedbe implemented under conditions imposed by the COVID-19

clients’ factories had decreased and in the automobile-re-above, the segment’s domestic net sales were ¥67,503 mil-pandemic. Mainly due to these factors, segment sales de-lated sector, which was most significantly affected by the

Results by segmentlion (down 4.1% from ¥70,527 million in the previous fiscal

creased year-on-year and the number of technical employ-global COVID-19 outbreak, personnel demand had increased

Manufacturing Businessyear) and segment profit was ¥3,385 million (down 43.1%

ees declined. In the meantime, segment profit increased

along with a recovery in production activities, driven by ma-

In the Manufacturing Business, clients’ suspension of fac-from ¥5,951 million), while the number of technical employ-

substantially thanks to 1) robust demand for field engineers

jor automakers. The semiconductors and electronic com-

tory operations in the automobile-related sector̶the mostees was 16,680 (up 2,636 from 14,044 a year ago).

and equipment maintenance operators mainly from clientsponents sector also showed signs of recovery in personnel

severely affected sector by the COVID-19 spread, came to ademand, in response to growth in production of semicon-

halt by the end of the second quarter and personnel demand

Solution Businessefficiency, driven by the reorganization of operating compa-

ductor manufacturing equipment and devices, driven by anhas since been recovering strong along with a recovery inIn the Solution Business, impacts from production adjust-nies, and 3) a review of a support and placement system forincrease in semiconductor demand for automobiles andproduction activities. In the semiconductors and electron-

ment and other measures taken by some clients, due to the

new hires, which led to their earlier start in assignment anddemand related to the next-generation wireless communi-

ic components sector, personnel demand was also robust

COVID-19 spread, came to a halt and personnel demand has

improved operating rate. demand for field engineers andcation standard 5G.

thanks to an increase in semiconductor demand for auto-

since been recovering, mainly at UT Pabec, which is spe-equipment maintenance operators was solid mainly frommobiles and demand related to the next-generation wirelesscialized in battery manufacturing. In addition, the unit priceclients in the manufacturing field.

communication standard 5G and telework.

In response to these strong demand, the order-taking

in the manufacturing field, 2) improvement in operating

has increased, associated with adherence to the principle of

As a result, in FY3/2021, the segment recorded net

the recovery of clients’ production activities since the fall

In response to this increase in personnel demand at

equal pay for equal work. As a result, the number of techni-sales of ¥16,218 million (down 4.2% from ¥16,929 million inof 2020. In the Manufacturing Business, which is a coreclient companies, UT Group made efforts in hiring activities

cal employees as well as segment sales and profit increased

the previous year) and segment profit of ¥2,431 million (upbusiness, we were engaged in aggressive hiring activities

and the number of employees who joined the company was

substantially. Moreover, UT Toshiba Co., Ltd., UT Business111.0% from ¥1,152 million), while the number of technicalthroughout the Group companies with the aim of recruiting

increased. In November 2020, Seekel Holdings Co., Ltd. andService Co., Ltd., and UT System Products Co., Ltd., all of

employees was 2,587 (down 33 from 2,620 a year ago).

1,000 people per month in order to respond quickly to theSeekel Co., Ltd. became consolidated subsidiaries of UT

which were group companies of Toshiba Corporation, be-environment for the UT Group significantly improved with

Net sales (consolidated, million yen)
115,131
101,103

EBITDA and EBITDA margin (million yen)
EBITDA

8,686

101,191

Earnings per share (Yen)

Sales by segment (million yen)

EBITDA margin

8,604
7,991

101,103123.07111.71

0.9%＋13.8％

＋0.1％

8.6％

Sales breakdown by segment
115,131106.53

101,191

16,2184.2％

14,051＋20.5％

12,171＋14.4％

13,925＋113.4％74,8806.1％

70,336

1.6％

16,929

13.9％

＋2.8

16.7％

12.0％

＋1.8

13.8％

4.6

69.5％

2.6

14.1％

Engineering Business
Solution Business
Manufacturing Business

29,711

＋12.0

25.8％

9.4

60.1％

7.1％

8.5％
9.2％

6.9％

4.6％

74.1％
69,201＊Inter-segment sales and transferred

FY3/2019

FY3/2020

FY3/2021

FY3/2019

FY3/2020

FY3/2021

FY3/2019

FY3/2020

FY3/2021

FY3/2019

FY3/2020

FY3/2021

FY3/2019

FY3/2020

FY3/2021

amount are eliminated.

Financial position and operating results for FY3/2021

personnel demand of client companies at a potential full-Recovery of manufacturing on-site operations
since the fall of 2020Engaged in group-wide aggressive hiring activities

55

Sustainability indices (non-financial KPIs)

56

Indices aimed at respecting the will of each and every worker, and aiming for co-existence
and co-prosperity with society from the perspective of workers have been set as follows:

remain strong, as the large manufacturing industry, which isconditions to respond to production plans.
UT Group has set an EBTIDA target of ¥20-30 billion for
the final year of the fourth Medium-Term Business Plan an-

Continued strengthening of business base

Broaden the potential of each individuala major client base for UT Group, is experiencing tight labor●

Hiring activities

Applicants ＊1
Number of interviews＊1

FY3/2019

FY3/2020

FY3/2021●

133,644

109,220

116,463

40,07735,25236,753nounced in May 2020. In order to achieve this target, it would

Graduates hired (technical jobs)

637

951

553

of our primary management issues. Our baseline target is abe essential to achieve EBITDA of ¥15 billion in FY3/2023,

Graduates hired (general jobs) ＊3

12

26

17

total return ratio of 30% or more through dividend payments

which is a turning point of the plan period. Therefore, in an-

Mid-career hired (technical jobs) ＊4

10,060

6,483

7,291

or share buybacks, which help to improve capital efficiency.

ticipation of the recovery of economic activities, driven by the

Mid-career hired (general jobs) ＊3

165

93

76

In the previous year of fiscal 2019, we forwent a returnpresent increase in personnel demand and the progress of

21,74622,30525,083

FY3/2019

FY3/2020

FY3/2021

19,95537,00532,874to shareholders. The amount equivalent to 30% of profit at-

vaccinations, we will focus on increasing share and sales intributable to owners of the parent for that year was paid as

FY3/2022 with the aim of achieving ¥15 billion in EBITDA ina special dividend in addition to the regular dividend, which

FY3/2023, one year ahead of originally-planned FY3/2024.

was 30% of profit attributable to owners of the parent forWith regard to hiring activities, which is a major driver

FY3/2021. In aggregate, the dividend for FY3/2021 amount-of sales growth, UT Group aims to regularly employ 1,000

ed to ¥66 per share (a total return ratio of 62.0%).

people a month and 12,000 people a year. While employ-

Workforce

●

＊2

＊3

Financial and non-financial highlightsof strengthening of hiring activities, we will seek to improve

Recipients of training courses ＊5target to achieve ¥15 billion in EBITDA in FY3/2023. We will

spread of COVID-19 infection is expected to gradually settle

also continue to promote the Area Platform Strategy as wellas vaccinations are progressing in each country, but theas alliances with and M&As of local major companies.

impact on economic activity is expected to continue to a cer-

In sum, as for forecasts for FY3/2022, we are projecting

tain degree. In addition, although demand for end products

consolidated net sales of ¥150,000 million (up 30.3% fromsuch as automobiles and smartphones is strong, the global

the previous fiscal year), operating profit of ¥8,000 million (upshortage of semiconductor supplies could be a bottleneck,

11.7%), ordinary profit of ¥8,000 million (up 11.2%), and net

causing temporary delays in production of these end prod-

profit attributable to owners of the parent of ¥4,800 million

ucts. In the meantime, personnel demand is expected to(up 11.6%).

EBITDA target (billion yen)

Commitments

3 times in 5 years and 10 times in 10 years●

100

Aim for high growth, from a negative growth
due to COVID-19, through a new growthstrategy

EBITDA growth rate: 30% or more

FY3/2021

Acquirers of child-care leave ＊3

―

―

242

Return rate after child-care leave ＊3

91.8％

83.1％

79.6％

―

―

4.0

FY3/2019

FY3/2020

FY3/2021

―

18.2

11.5

Acquirers of nursing-care leave●

Health and Safety

Fair and transparent organizational controls
Corporate Governance

FY3/2020

FY3/2021

FY3/2019

71

32

12

11

3

Voting rights exercise rate ＊7

80.8％

85.0％

80.1％

Ratio of independent outside officers＊7

63.0％

75.0％

60.0％

Average attendance rate of the Board of

97.0％

99.0％

100.0％

Board meetings held ＊7

18

21

19

Nomination Committee meetings held ＊7

4

4

4

FY3/2019

FY3/2020

FY3/2021550

FY3/2019

FY3/2020

FY3/2021

Recipients of compliance training courses ＊9 713

21,78817,411

Cases of serious violations of laws and00

Attendees at the general meeting of share- 77●

Workplace development activities
FY3/2019

holders ＊7
FY3/2020

FY3/2021

Questions raised at the general meeting ofshareholders ＊7

Client companies ＊3

909

1,042

1,538

●

Career path

FY3/2019

FY3/2020

FY3/2021

One UT users ＊6

607

322

236

Next UT users ＊2

561

456

412

UT Entry users＊3

Job changers, from a technical job to a

443

406

348

71

55

18

general job ＊3●

Diversity indices

FY3/2019

FY3/2020

FY3/2021

Elderly hired ＊7

260

569

425

Disabled persons hired ＊7

29

33

14

Women hired (technical jobs) ＊4

2,512

1,914

2,838

●

Directors ＊7

Women hired (general jobs)＊7

Ratio of female directors ＊3＊3(CAGR starting from FY3/2021)

Ratio of female managersc

The UT Group emphasizes earnings growth as much as sales growth

Ratio of female associates ＊3

50

49

36

0.0％

0.0％

0.0％

8.5％

11.0％

10.5％

20.8％

28.0％

28.9％

cludes strategic M&A activities aimed at formation of a long-term busi-

Code of Conduct

Internal whistleblowing cases ＊3●

Business Ethics

0

regulations ＊3

Appropriate environmental considerations

by business expansion. The Fourth Medium-term Business Plan in-

30〜45

＊3

Average overtime hours ＊8●

hiring efficiency throughout the year, taking into account the

As for FY3/2022 (from April 1, 2021 to March 31, 2022), theFY3/2020

Career formation support activities

ment-related expenses is expected to increase as a result

Outlook for FY3/2022

FY3/2019●

Environmental management

ness base. We therefore use EBITDA to show our commitment in earn-

Unit

FY3/2019

FY3/2020

tCO2

FY3/2021

ings growth and set 30% or more CAGR in EBITDA for the period start-

30

Greenhouse gas emissions ＊10 ＊12

ing from FY3/2021.
●

Total return ratio: 30% or more

The UT Group recognizes return to shareholders as an important man-

2,015.5

1,738.3―――

Greenhouse gas emissions (Scope 2)

―

34.1

25.7

―

1,981.4

1,712.6

―

100.0

79.8

Greenhouse gas emissions (Scope 3)

agement priority. We intend to achieve a corporate growth throughPaper consumption to sales ＊11 ＊13

strategic investment as well as return to shareholders. We are commit-

20―

Greenhouse gas emissions (Scope 1)―

ted to a total return ratio of 30% or more by dividend payment and15

share buyback.

15

●

12
10

8.6

Gross D/E ratio: 1.0 or less (at the end of FY3/2025)

We intend to achieve both a high growth and a stable financial position
by balancing debts with shareholdersʼ equity, which stems from effi-

9cient business operation and capital policy.

7.9
4.9

Total return ratio: The total return ratio represents the proportion of shareholder
return to net profit.

FY20

FY21

FY22

FY23

FY24

FY25

The Fourth Medium-term Business Plan period* Initial forecasts as of May 2020

FY27

FY30

＊1｜UT Aim, UT Community, Support System, UT Pabec, UTHP, and UT Construction＊9｜UT Group, UT Aim, UT Community, UT Pabec, UTHP, Fujitsu UT, UT Toshiba, UT Tech-＊2｜UT Aim, UT Community, UT Pabec, UT Technology, and UT Construction

nology, UT Construction, and UT Heartful＊3｜UT Group companies in Japan＊10｜UT Group and UT Aim＊ 4｜ UT Aim, UT Community, Support System, UT Pabec, UTHP, UT Technology, and UT＊ 11｜ UT Group, UT Aim, UT Community, UT Pabec, UTHP, UT Toshiba, UT System Prod-

Construction

ucts, UT Technology, UT Construction, and UT Heartful＊ 5｜ UT Group, UT Aim, UT Community, UT Pabec, UTHP, UT Technology, and UT Con-

＊ 12｜ Emissions are calculated based on the “Green Value Chain Platform” of the Envi-

structionronment Ministry and the Ministry of Economy, Trade and Industries.

＊6｜UT Aim, UT Community, UT Pabec, UTHP, UT Technology, and UT Construction

Scope1: Direct emissions of greenhouse gases from burning fuel at business site

＊7｜UT Group (Attendees at the general meeting of shareholders include viewers of live

Scope2: Carbon dioxide emissions from electricity use in the offices

debt to shareholdersʼ equity of the fund sources of a company. A ratio of 1.0 or lessbroadcasts.)

Scope3: Major indirect emissions excluding the above (use of company vehicles for busi-

is generally regarded as indicating a healthy financial position.

＊8｜UT Group, UT Aim, UT Community, UT Pabec, UTHP, UT Technology, UT Construction,ness)

and UT Heartful＊13｜Indices are set based on 100 for FY3/ 2020.

Total return ratio = (Dividends + Shares bought back) / Net profit after tax

Gross D/E ratio: The gross debt/equity ratio indicates the ratio of interest-bearing

Sustainability indices (non-financial KPIs)

We recognize that returning profits to shareholders is one

Proper labor practices｜
Financial position and operating results for FY3/2021

Returning profits to shareholders
through dividends
Total return ratio of 62.0%, including an additional
portion for previous year’s unpaid dividend

57

10-year Data

58

(Million yen)

FY3/2012

FY3/2013

FY3/2014

FY3/2015

FY3/2016

FY3/2017

FY3/2018

FY3/2019

FY3/2020

FY3/2021

24,10627,85430,77936,47844,05057,58881,751

101,103

101,191

115,131

Gross profit

4,314

4,484

5,429

6,760

8,747

11,462

16,01020,73820,006

21,602

EBITDA

1,519

1,523

1,882

2,288

2,574

3,652

5,713

8,686

8,604

7,991

Operating Profit

1,453

1,473

1,824

2,232

2,462

3,413

5,197

8,083

8,040

7,163

Net profit before income taxes and other adjustments

1,273

1,217

1,432

2,149

2,353

3,154

5,385

7,718

6,705

7,000

Net profit attributable to owners of the parent

880

922

934

1,168

1,497

2,033

3,534

4,968

4,509

4,299

Capital expenditures

75

85

86

24

376

236

371

543

286

346

Depreciation and amortization

66

49

56

51

68

155

118

195

251

378

Total assets

8,550

9,505

12,05816,427

17,13923,14429,71033,72036,30852,666

Shareholders’ equity

3,120

2,711

3,101

3,520

4,096

5,605

8,947

12,89014,90019,116

Interest-bearing debts

2,577

3,732

5,495

6,856

7,049

7,822

7,696

5,543

8,789

11,723

Cash flow from operating activities

1,367

915

358

3,131

517

3,107

4,942

6,864

3,509

6,654

Cash flow from investing activities

△ 527

△ 447

△ 23

△ 679

△ 334

△ 1,052

△ 975

△ 669

△ 805

△ 2,413

Cash flow from financing activities△ 1,916

△ 220

1,196

515

△ 789

△ 147

△ 519

△ 3,184

721

2,613

840

468

335

2,451

183

2,054

3,967

6,195

2,703

4,240

Earnings per share (Yen)

21.30

22.63

23.96

30.29

40.40

57.19

91.19

123.07111.71106.53

Free cash flow

Per-share data

Fully-diluted earnings per share

18.1%

6.2%

5.9%

26.4%

33.4%

41.6%

59.4%

35.0%

△ 9.2%△ 4.6％

Book value per share (Yen)

73.34

69.49

79.58

91.20

111.16158.75220.45319.26369.01472.90

Dividend per share (Yen)

12.50

13.00

13.50

0.00

0.00

0.00

0.00

61.93

0.00

66.00

Gross profit margin

17.9%

16.1%

17.6%

18.5%

19.9%

19.9%

19.6%

20.5%

19.8%

18.8%

EBITDA margin

6.3%

5.5%

6.1%

6.3%

5.8%

6.3%

7.0%

8.6%

8.5%

6.9%

Financial indices

Operating margin

6.0%

5.3%

5.9%

6.1%

5.6%

5.9%

6.4%

8.0%

7.9%

6.2%

Return on Equity (ROE)

30.9%

31.7%

32.2%

35.3%

39.3%

41.9%

48.6%

45.5%

32.5%

25.3%

10.3%

9.7%

7.8%

7.1%

8.7%

8.8%

11.9%

14.7%

12.4%

8.2%

Return on Invested Capital (ROIC)

17.7%

17.3%

14.2%

12.2%

14.7%

16.9%

20.5%

28.4%

23.0%

14.4%

Equity ratio

36.5%

28.5%

25.7%

21.4%

23.9%

24.2%

30.1%

38.2%

41.0%

36.2%

0.83

1.38

1.77

1.95

1.72

1.40

0.86

0.43

0.59

0.61

Return on Assets (ROA)＊1＊2＊3

Debt to Equity Ratio (D/ERatio)

Stock information
Stock price (fiscal year end) (Yen)

305

328

540

470

525

1,447

3,500

2,536

1,110

3,635

Price to Earnings Ratio (PER)

14.3

14.5

22.5

15.5

13.0

25.3

38.4

20.6

9.9

34.1

0.96

1.54

3.37

0.59

0.39

0.61

0.65

0.59

△ 1.07△ 7.35

Total shareholder return

531

507

526

999

749

609

1,060

2,499

0

2,663

Total dividend amount

531

507

526

0

0

0

0

2,499

0

2,663

0

529

0

999

749

609

1,060

0

0

0

60.4%

54.9%

56.3%

85.6%

50.1%

30.0%

30.0%

50.3%

0.0%

62.0%

6,272

6,983

7,955

9,489

11,370

16,104

19,581

21,74622,18038,527

6,082

6,821

7,768

9,299

10,926

15,48818,56920,583

20,90623,736＊4

Price/Earnings-to-Growth Ratio (PEG Ratio)

Return to shareholders

Purchase of treasury shares
Total payout ratio

Non-financial information
Number of employees
Number of technical employees (Japan)
Number of technical employees (Overseas)
Number of general employees＊5Work creating value(million yen)

-

-

-

-

-

-

-

-

-

13,276

190

162

187

190

444

616

1,012

1,163

1,274

1,515

-

25,58628,02932,944

39,18851,06173,867

92,05093,12095,517＊1｜ROA = [Net profit attributable to owners of the parent] / [Total assets (fiscal year average)]＊4｜PEG Ratio = [P/E Ratio at year end] / [EPS growth rate] X 100＊2｜ROIC= [Net profit attributable to owners of the parent] / [Shareholders’ equity (fiscal year average) + Interest-bearing debt (fiscal year average)]＊5｜Work creating value = [Operating profit] + [Total personnel expenses], UT Group’s unique indicator for providing jobs to many people and supporting their growth＊3｜D/E Ratio = [Interest-bearing debt] / [Shareholders’ equity] *1|ROA= Net income/total assets belonging to the parent company’s shareholders

10-year Data

Financial and non-financial highlights

Net salesResponsibilities tobe fulfilled for associates andclient companies
̶Corporate governance
UT Group’s business is always centered around people.
This is why corporate compliance and corporate governancethat supports it are the most important management issues.
We will continue to move on by always keeping the rightperspective for the sake of associates and client companies.

61

Policy on Corporate Governance62

As a company that supports the employment of workers and corporate production activities,
we will continue to consider corporate governance as the most important management issue
and to fulfill our social responsibilities.

In realizing UT Group’s mission to “Create vigorous work-in personnel demand from clients and their markets, andplaces empowering workers,” we believe it is important tofluctuations in supply volumes of dispatch workers. In order

expand, with a sense of speed, environments in which work-

to consistently improve corporate value with high growthers can broaden their potential. In doing so, we are highly

potential while maintaining employment even in such a busi-

aware that our business has a strong character as a public

ness environment, we believe that we need both “defensive

infrastructure that provides stable employment for individu-

governance” and “aggressive governance.” What we mean byals and labor for corporate production activities, and that we

defensive governance is to constantly control risks and op-

have a serious social responsibility. To fulfill our responsi-

Title in UT Group

Term of Independent
officeofficer

Yoichi WAKAYAMA President & CEO

Nomination and Com- Compliance and Risk
IT Investment
pensation Committee Management Committee Committee●

1

Yuji WATANABE Full-time Board Director and◎1

Senior Executive Officer

Manabu SOTOMURA Full-time Board Director and1●

Senior Executive Officer

GovernanceCouncil

●

●

●

●

Noboru HACHIMINE Board Director

1●

Tetsuro YOSHIMATSU Board Director

1

●

●

●

erate the business in an appropriate manner. By aggressive

Taisuke IGAKI Board Director

1

●

●

●

bility, first and foremost, we must respect the human rights

governance, what we mean is to support flexible thinking

Hiroko SASAKI Board Director1●

of individuals and comply with laws, regulations, and social

and bold risk-taking that can quickly respond to environ-norms while maintaining high ethical standards. In order tomental changes and turn into new business opportunities.

gain the trust of our associates*, clients, other stakeholders,

Based on these ideas, we will continue to strengthen ourand society, we disclose information with high transparency,

corporate governance by positioning it as one of the mostcommunicate appropriately, and fulfill our accountability.

important issues of management.

At the same time, our business is heavily influenced by

Riichiro KOMATSU Full-time Audit & Supervisory

4

●

●

Board Member

Masahito FUKUMORI Full-time Audit & Supervisory●

4

Board Member

●

◎

●

●

Hirokazu MIZUKAMI Audit & Supervisory Board Member 4●●

Hiroyuki YOSHIDA Audit & Supervisory Board Member 4●●

Note: “Associate” is a term UT Group has decided to use to describe its employees.

◎ Chairperson; as of August 31, 2021

changes in the business environment, such as fluctuations

Corporate governance structure

知識

作業要素、
技術

安全

Board Directors and Audit & Supervisory Board
Members: Numbers and Ratios of Outside Directors
and Audit & Supervisory Board Members

Advisory bodies（%）

Nomination andCompensation
Committee(Person)General Meeting of Shareholders
Supervisory and Decision-making Bodies

Corporate governance8

Outside Director

Nomination &dismissal

Nomination & dismissal

Nomination & dismissal

7
6

Collaboration
5

Audit & Supervisory Board

Audit

Board of Directors(Audit & Supervisory Board Members
and Outside Audit & Supervisory
Board Members)

Consultation
Collaboration

Collaboration
Audit

Accounting Auditors(Directors and Outside Directors)

Proposal

Proposal

Consultation

Collaboration

Nomination andCompensation Committee

IT Investment
Committee

Accounting
audit

Proposal

70

Internal Audit & Supervisory
Board Member

Ratio of Outside Directors
and Audit & Supervisory
Board Members

40

3

30

2

20

1

10

14

15

16

17

18

Business Execution Bodies

Internal Audit Division

Senior Executive Officer

President

President
2 full-time directors
1 internal audit & supervi- 2 full-time directors
1 external expert
sory board member
1 outside audit & supervi- 1senior executive
officersory board member
2 external lawyers
1 senior executive officer
1 executive officer

1 full-time director
2 outside directors
1 external expert

Objectives Ensure transparency Control UT Group’s breach Consider long-termand objectivity in the in compliance and risks; development andinvestment plansprocedure to designate and minimize loss
for UT Group’s incandidates for positions
formation systemof board director, audit &infrastructure
supervisory board member or executive officer;
establish basic policies
for CEO succession planning and supervision

21 （FY）

Experience and expertise

Independence Gender Corporate
Humanmanagement resourcesbusiness

Compliance and Risk
Management Committee

Board
Directors

Management Committee

Yoichi WAKAYAMA●

Yuji WATANABE

Operating divisions
Operating companies

Collaboration
Collaboration

As of August 31, 2021

Globalbusiness●

M&A

Finance and Legal and risk
Personnel
Business
IT andaccounting management
affairs anddevelopment digitaltechnology development

●

●

●

●

●

●

●

●

Manabu SOTOMURA

Instruction &supervision
Auditing

20

IT Investment
Committee

Skills matrix of the Board of Directors and the Audit & Supervisory Board

President & CEO
Instruction &supervision

19

Compliance andRisk Management
Committee

Consultation

Decision-making& supervision

Attributes

ReportingMembers President

50

4

13

Chairperson External expert

60

Outside Audit & Supervisory
Board Member

12

Governance Council

80

Internal Director●

Noboru HACHIMINE●●

Tetsuro YOSHIMATSU●●

Taisuke IGAKI●

Hiroko SASAKI●

Audit &
Riichiro KOMATSU
Supervisory
Masahito
FUKUMORI
Board
Members
Hirokazu MIZUKAMI●

Hiroyuki YOSHIDA

●

●

●
●

●

●

●
●

●
●

●
●

●

●
●

●
●

●

Policy on Corporate Governance

Board Directors and Audit & Supervisory Board Members

Basic Policy on Corporate GovernanceCLOSE-UP

Policy on Corporate Governance

Roles of organizations that comprise the supervisory and decision-making bodies
UT Group’s corporate governance system is characterized by the separation of management supervision and execution, thegranting of the majority of business execution authority of the Board of Directors to executive officers, and the establishmentof advisory bodies for each important management theme.

Board of Directors

IT Investment Committee

As UT Group’s highest decision-making body of manage-

The IT Investment Committee has two roles: a role as anment, the Board of Directors decides basic managementadvisory body to the Board of Directors by which it reviews

policies and important matters based on the Companies Act,medium- to long-term development and investment plans

UT Group’s Articles of Incorporation, and internal rules. It

concerning the information system infra-structure of thealso focuses on appropriately supervising execution of du-entire UT Group; and a role as a decision-making body con-ties by board directors. In order to accomplish these roles,

cerning execution of duties related to shorter-term system

the number of board directors is limited to facilitate active

investment and the like. The committee, chaired by the Pres-discussion, while independent board directors represent

ident and comprised of full-time board directors and outside

over a half of the Board in order to enable highly objective

IT experts, reviews IT system solutions for managerial is-supervision.

sues and discusses the appropriateness of investment deci-

Aiming to achieve organizationalchange, including ensuring diversity.

Enhanced risk hedging to realize
strategic M&A

sions and effectiveness after investments have been made.

Hiroko SASAKI

Taisuke IGAKIA Nomination and Compensation Committee is established

Governance Council

as an advisory entity serving the Board of Directors, with the

The Governance Council, chaired by a full-time audit & su-

aim of ensuring transparency and objectivity in the proce-

pervisory board member, shares information concerning

dure to designate candidates for positions of board director,

corporate governance and exchanges opinions in order to

audit & supervisory board member and executive officer,

facilitate external executives to engage in active discussions

and of enhancing accountability of the Board of Directors.

at the Board of Directors. Certain opinions shared at the

The Nomination and Compensation Committee, chaired byGovernance Council are submitted to the Board of Directors

an outside lawyer and composed of some board directors,

as a discussion theme to enhance corporate governance, as

audit & supervisory board members and outside experts,̶̶Outside Director, President & CEO of ChangeWAVE Inc.

Outside Director and LPC Partner of Nishimura & Asahi Law Firm

The worker dispatch industry was sometimes regarded

Approximately three years have passed since being appoint-

as an industry in which workers could not have options or

ed as outside director of UT Group, I believe that UT Group’sbuild careers. In such an industry, the concept of UT Group

Board of Directors has been strengthened along with theto stand by workers and bring about a new workstyle isexpansion of business. The Board now has three internal di-

expected to greatly change the foundation of society. I haverectors, compared to just having President Wakayama three

been involved in the organizational transformation of indus-

years ago, and four outside directors. At times, the balancetries and companies as a “transformer” and I assumed the

between supervision and execution was pointed out. How-

position of outside director of UT Group in empathy with its

ever, UT Group has focused on strengthening the effective-

needed.

vision to change society.

ness of the Board of Directors around the time of changing

While the speed and unity of UT Group’s organization are

its market listing to the TSE First Section, and has addedsustainable growth and medium- to long-term increase in

Accounting Auditors

evidenced in its realization of a significant business expan-

diverse perspectives on the Board, enabling more effective

corporate value and refers the candidates to the Board of

The Company has entered into an accounting audit agree-sion in a short period of time, I feel that many challenges

supervision and more reasonable decision making. I believe

Directors. (On August 30, 2021, a Nomination and Compen-

ment with Gyosei & Co. As its accounting auditor who per-remain in ensuring diversity. For example, the fact that I am

this has led to enhanced business continuity and the build-sation Committee was thus newly established as an adviso-

forms audits of financial statements based on the Compa-

the only woman in positions of executive officer and above is

ing a foundation for growth.

ry body for the Board of Directors by enhancing the functionnies Act and the Financial Instruments and Exchange Act.

Nomination and Compensation Committee

Corporate governancedesignates persons who shall contribute to the Group’sof the Nomination Committee and adding the function of aCompensation Committee.)in general rather rare. I believe that it is my duty to explore

As a lawyer, I have been engaged in two major areas of

the cause of this problem and encourage the organization to

specialization: Corporate matters related to business expan-

realize transformation by boldly working as a “different ele-sion, such as M&A and financing, and matters of disputes,

ment.”

such as litigation and arbitration. Based on these experienc-

Of course, a seamless organization has advantages,

es, I, as an outside director, am consciously playing the role

but these are limited to periods when the market still hasof risk control in the “offensive actions” required for corpo-

significant room to grow and the organization can expand

rate growth, as well as the role of putting on the brakes ofby expanding and reproducing past business models. When

predicting and preventing risks. In particular, in recent years,

the society or the market changes or when the organization

the number of M&A cases has increased significantly at UT

matures, a lack of diversity causes a delay in awarenessGroup. The rapid pace of M&A has been enabled by UT’sof issues and risks, and, ultimately a delay in making im-

significant presence in the industry and its excellent M&A

portant decisions. I believe that UT’s management shouldteam. I consciously try to adopt a critical viewpoint in thebe highly evaluated, as it has recognized this issue and has

process of approving each case, such as overseeing proper

focused on recruiting new personnel. I intend to make ef-

due diligence and pointing out risks. Going forward, in orderforts in the area of organizational transformation so that UT

to achieve the Fourth Medium-term Business Plan, we will

Group moves away from its current organizational structure,need systems, such as establishing a mechanism to deter-achieves further evolution and advances to the next step.

mine risks and determining whether an acquisition is in linewith the management plan. While the internal risk control
system has been established to a certain extent, I intend to
strive to further enhance that level.

65

Basic Policy of the Business Execution Bodies
UT Group has adopted a system that enables the rapid exe-

the divisions as well as the overall executive responsibilities

cution of its operations while clarifying its responsibilities byof the divisions. Executive Officers are responsible for thedelegating part of its business execution authority to exec-

functions and operations that are fragmented within theutive officers. Senior Executive Officers are responsible fordivision, which enables the management’s intentions to be

the divisions that are established in line with the businessreflected in the execution of the business even in areas withscale and strategy and are engaged in coordination amonghigh levels of expertise.

Manufacturing Business Division

Group Recruiting DivisionThis division develops and implements business plans based

This division is responsible for managing the call center ason the One-Stop Strategy for Major Manufacturers. Having

a common function required by the Group’s operating com-

Japan’s leading manufacturers as clients, the division ispanies, hiring new graduates, operating the company’s own

engaged in the dispatch of design and manufacturing engi-

recruitment medium, and managing the recruitment infor-

neers, the worker dispatch and manufacturing outsourcing

mation of Group companies as a hub for recruitment.

required in the production process by a team of workers including a dedicated on-site manager, and the management

Career Development Divisionof non-Japanese technical interns.

This division develops and promotes the Career Platform
Strategy. It develops the educational content and assess-

知識

作業要素、
技術

安全
Operating companies

Manufacturing
Business Division

Area Strategy Business Division

ment programs, as a mechanism to support the career

This division develops and implements business plansdevelopment of associates. It also nurtures managers andbased on the Area Platform Strategy. It is engaged in acareer partners, and operates educational facilities.

community-based worker dispatch business that provides
UT Aim, UT Pabec

Area Strategic
Business Division

UT Aim, UT Community,
UTHP, UTMESC, Support System,
Seekel, SURIEMU, Progress

Customer Solution
Business Division

Fujitsu UT, UT Toshiba,
UT System Products

Engineering Division

UT Construction
UT Technology

a workstyle platform for workers and client companies in

Business Development Divisioneach area. In order to provide more detailed services, an or-This division develops plans for the M&A Strategy in areas

ganization for sales and marketing, hiring, and management

to be enhanced and expanded by M&A in the medium-term

is established by each small areas throughout Japan.

business plan. The division is also engaged in operations
related to capital alliances and M&A, from finding deals to

Business
Division
Corporate governance

Board of Directors

President
andRepresentative
Director

Management
Council

Overseas Business
Division

Compliance andRisk Management
Committee

Green Speed JSC

Group Recruiting Division
Career Development
Division
Administrative
DivisionManagement Reformation
Division

General Affairs Division
Management Reformation
DivisionInternal Audit Division

Customer Solution Business Division

their closing and early PMI.

This division develops and implements business plans basedon the Solution Strategy. It operates operating companies

General Affairs Division

through capital alliances with client companies. In addition

This division plays an important role in supporting the man-to manufacturing outsourcing, worker dispatch to production

agement of the entire group, such as the management ofprocesses, and the dispatch of engineers and administrativecompliance systems, including dispatch management ofoperators, the division strives to solve personnel challenges

group companies; corporate functions including finance,

faced by major corporate groups and to realize stable em-

accounting, and legal affairs; the management of support

ployment for workers by re-employing retiring employees ofdesks for associates; and the establishment of a manage-

corporate groups.

ment base of acquired companies.

Engineering Division

Management Reformation DivisionThis division is engaged in the dispatch of engineers in theThis division is responsible for the planning and monitoringmechanical and electrical, IT, and construction fields. Be-of the entire group’s business plan as well as the promotion

sides new hires and mid-career hires, the division steadilyof corporate-wide projects toward the realization of the me-

provides engineers with highly specialized skills to clientdium-term business plan, the planning and managementcompanies by using UT Group’s network and training associ-of personnel management and personnel affairs, and theates* who have moved from manufacturing operating work

corporate communication for constructive dialogues withat group companies, according to their aptitude as one of the

stakeholders.

career paths.
As of August 31, 2021

Note: “Associate” is a term UT Group has decided to use to describe its employees.

Internal Audit DivisionThis division, which is under the direct control of the Pres-

Compliance and Risk Management Committee
The UT Group Compliance and Risk Management Committee,

research, and establishes recurrence prevention measures.

chaired by the Senior Executive Office and with participation

In addition, the Committee identifies types of risks of theby other Senior Executive Officers in charge of BusinessCompany and its Group, controls and evaluates these risks,

Division and Administrative Division and a few outside law-takes action to prevent risk occurrence, and, in the event ofyers, is an advisory entity serving the Board of Directors. The

risk occurrence, minimizes loss and establishes recurrence

Committee discusses compliance policy and action plans,prevention measures.

studies matters needed for ensuring legal compliance, does

Engineering Division

ident, examines and evaluates compliance, effectiveness,

This division is responsible for establishing and developing

and efficiency of the status of corporate organization es-

the overseas staffing business through overseas businesstablishment and business management of the entire Group,

alliances and M&As. By establishing a business base over-based on the internal control plan, and reports the resultsseas from a medium- to long-term perspective, the division

to the President and Audit & Supervisory Board Members.

aims to build a career bridge in which non-Japanese work-

The Internal Audit Division also cooperates with the Board ofers who have gained technical skills through internship in

Directors and Audit & Supervisory Board Members to appro-

Japan can utilize their technology after returning to theirpriately audit effectiveness of the status of governance andhome country.

the internal control system of the entire Group.

Policy on Corporate Governance

Roles of organizations that comprise the Business Execution Bodies

Execution function and complianceBusiness Execution Bodies’ structure66

CLOSE-UT Group’s IR activities

UP

68

UT Group recognizes that engagement with shareholders is indispensable for the achievement ofsustainable growth. Along this line, investor relations (IR) activities are considered as important management
matters and UT Group actively communicates with stakeholders.
｜ UT Group’s IR activities
Policy on Corporate Governance

UT Group’s stance of prioritizing compliance since
its foundation has supported its evolution.

67

Promotion of constructive dialogues with shareholders

Takahito YAMADA

The general meeting of shareholders is UT Group’s highest

Senior Executive Officer in charge of General Affairs Division

Engaged in the Financial Instruments Exchange Law and Corporate Law Audit at Deloitte

decision-making body and a place of dialogues where the

Touche Tohmatsu LLC. Joined UT Group in 2018, after serving as Executive Officer, Generalmanagement shares thoughts and vision with shareholders.

Manager of the Accounting Department of Culture Convenience Club Co., Ltd.

We hold the meeting on a Saturday when there is not a concentration of annual meetings (a long-standing tendency inJapan), so that as many shareholders as possible can attend

UT’s compliance system is thoroughly
ensured down to the level of workplaces,
because our business involves people.

In rare cases, target companies may have serious issues. In

One of UT Group’s basic values is to see things from thepatching Act-related aspects that cannot be covered by legal

perspective of workers and always do the right thing. As ourdue diligence alone so that we can understand the risks andbusiness involves people, our compliance system is a very

consider measures before concluding a deal.

order to identify such risks, we have established a system inwhich the internal legal department checks the Worker Dis-

important element of business continuity, and we have been

In the post-merger integration (PMI) process, the ded-working on it to ensure that compliance with laws and reg-

icated PMI team identifies issues in about three months,

ulations, such as the Labor Law and the Worker Dispatching

using mechanisms and tools, and has a system in place toAct, is enforced down to the level of each workplace. Since

proceed with the integration of operations and awareness in

our foundation, we have aimed to build and continuously op-

accordance with our compliance requirements. In April 2021,

erate a system that is free of legal defects. In recent years,

we established various concepts and principles, including

we have strengthened the system that enables comprehen-the Basic Policy on Compliance and the Basic Policy on Risk

Corporate governancesive management, including connecting the site manage-

Management. While we are striving to realize the medi-

ment with the monitoring at the headquarters, to ensureum-term business plan, we know that the establishment andthe management of working hour and compliance with theoperation of the compliance system has no goal and must be

Worker Dispatching Act.

continuously addressed as the business expands.

it. The 14th general meeting of shareholders was conducted
and its live video streaming was simultaneously arranged,with due consideration to the impact of COVID-19. We also
try to send a convocation notice well ahead in order to provide sufficient time for shareholders to review proposals forresolution . After the general meeting of shareholders, a presentation by the president is made, sharing future businessplans with shareholders and including constructive dialogue.
(After the 14th general meeting of shareholders, a presentation by the president was not held in view of the COVID-19
pandemic.)̶●Participants in the general meeting of shareholders: 32 shareholders(2 attendees and 30 viewers of live broadcasts)●

Number of questions：3 questions●

Voting rights exercise rate：80.1％

Among past efforts, I particularly remember our ini-

In terms of UT Group’s current issues, I recognize thetial period of strategic business expansion around 2015-

challenge to further strengthen the system to match the in-2016, when we had to increase the number of managers

creasing number of offices and associates as the business

UT Group holds IR briefings on financial results with pre-with management knowledge and skills in tandem with an

expands. While thorough implementation of labor-manage-

sentations by the president. UT Group’s executive officer inincrease in business bases. In order to train managers, wement agreements, including the management of working

charge of IR activities is mainly responsible for engagement

had established a system for developing managers, includ-

hours, should be performed as fundamental matters, there

in constructive dialogues with institutional investors, suching the development of educational content for managers

may be differences in the system and the knowledge ofas one-on-one meetings and small meetings with investors

at each level. Confronting the challenge of management de-managers, which may lead to poor workplace managementin Japan and abroad, and participation in conferences andvelopment at that time turned into an opportunity to create

at some offices. At the Compliance Risk Management Coun-other occasions. Opinions of institutional investors obtainedinternal awareness of what knowledge and skills managers

cil that I chair, we clarify specific issues and adopt effective

through these dialogues are reported at the Board of Direc-

need and their ideal status. Building awareness and a man-measures by delving into the case of these high-risk offices

tors meeting and used for improvement in management andager development system as well as strengthening the baseor even specific individuals. Other things we are working on

IR activities.

management system during that period are the foundation

are to develop and operate a system that allows daily mon-

̶of UT’s compliance until today.

itoring of work conditions at the headquarters and workplaces, and managing compliance that had previously been

Aiming to prevent increased risk
from rapid business expansion through M&A
In recent years, UT Group has once again been boosting thePromotion of constructive dialogues with institutional investors●

Institutional investors whom we have had dialogues with: 286 compa-

nies in FY3/2021●

performed remotely from the headquarters’ specialist divi-

IR briefings: 3times●

Participants in IR briefings: 1,101 investors

sion at each operating company and each office, by placing＊Financial results briefings for the first quarter and the third quarter were conducted

personnel with legal knowledge there, so that they can be
managed more closely to the workplaces.

number of offices and associates nationwide, and there is

In 2020, UT Group made Green Speed Joint Stockconcern about elevated compliance risks. The Company has

Company in Vietnam a subsidiary and began overseas

therefore adopted a process to incorporate the opinions ofbusiness. Foreign countries have different laws and labor

those in the compliance management system, including me,practices to Japanese and we have to respond differently.

from the study stage of each M&A deal. At present, there are

By accumulating know-how to develop a compliance system

many prospective M&A deals involving unlisted owner com-that can accommodate a variety of countries and regions,panies, based on one of the key themes of the Fourth Medi-

we will strengthen the compliance platform of the entire UT

um-term Business Plan, that is, to expand area platforms.

Group.

in video streaming. The above figures included the number of video views from outside
the company.

IR briefing in 2019

Team of Board Directors andAudit & Supervisory Board Members

As of June 30, 2020 ｜ Term in office / Number of shares held ｜＊Independent Director ｜ ○ Concurrently Senior Executive Officer

Board Directors

Senior Executive Officers
Yuji WATANABE｜51

Manabu SOTOMURA｜53

Noboru HACHIMINE ｜54

President & CEO

Full-time Board Director ○Full-time Board Director ○Board Director (Outside)

14 years/9,031,178 shares

2 years/51,114 shares

2 years/1,500 shares

5 years/2,000 shares

After having worked at Temporary Center,

Director, UT Toshiba Co., Ltd.

Director, UT Construction Co., Ltd.

Chairman, Digital Holdings, Inc.

Inc. (currently Pasona Inc.) and other com-

Director, UT System Products Co., Ltd.

Director, UT Technology Co, Ltd.

President, Digital Soft, Inc.

panies, Mr. Wakayama established Nihon

Director, Green Speed JSC̶̶

Mr. Sotomura joined Recruit Group in 1991.

Mr. Hachimine worked at Mori Building Co.,

Mr. Watanabe joined Argus Co., Ltd. in

After serving Bellsystem 24 Holdings, Inc.

Ltd. and then founded OPT Holding (current

1991. After serving Icon World Co., Ltd.

as Executive Officer, he joined UT Group in

Digital Holdings). He supports growth of(currently Fujiwork Co., Ltd.) as Director,

2017. After serving as Senior Executive Of-

many IT companies in the rapidly-chang-

he joined UT Group in 2012. After serving

ficer and Head Officer of the CEO’s Office,ing IT industry, based on the “businessas Senior Executive Officer of the Solution

he was appointed Board Member (current

creation platform concept.”

Division, he was appointed Board Member

position) in 2019.

Aim Co., Ltd. (current UT Aim Co., Ltd.)in 1995 and made it the manufacturing
dispatch industry’s first OTC-registered(current JASDAQ Market) company. He has
UT Group since 2007.

̶

̶

̶

̶

(current position) in 2019.

Nobuyuki TSUKUITsutoshi YAMADA

Yuji WATANABE

Kentaro YAMAGISHIIn charge of Manufacturing BusinessIn charge of Area Strategy Business Division

In charge of Customer Solution BusinessIn charge of Career Development Division

Division

Representative Director, UT Aim Co., Ltd.

Division

President, UT Aim Co., Ltd.

President, SURI-EMU Corp.

Tetsuro YOSHIMATSU＊｜48

Taisuke IGAKI＊｜48

Hiroko SASAKI＊｜48

Board Director (Outside)

Board Director (Outside)

Board Director (Outside)

5 years/−

3 years/−

Newly elected

President & CEO, istyle Inc.

LPC Partner, Nishimura & Asahi

President & CEO, ChangeWAVE Inc.

Outside Director, Planet, Inc.

Outside Director, en-japan Inc.

President & CEO, Lyxis Co., Ltd.

After working at Andersen Consulting

After working at Kitahama Partners, Mr.

(currently Accenture plc), Mr. Yoshimatsu

Igaki joined Nishimura & Asahi (law firm).

founded istyle Inc. and has expanded its

He has abundant knowledge and expe-

Sasaki was engaged in numerous corpo-

business that uses its proprietary data-

rience on overall corporate legal affairs,

rate business transformation projects ofbase under the vision of “consumer-cen-particularly on cross-border deals, M&As,

financial, retail, telecommunication com-

Satoshi MORIYASU

Takahito YAMADAManabu SOTOMURA

tered market creation.”business restructuring and lawsuits.

panies and public institutions at McKinsey

In charge of Business Development

In charge of General Affairs Division and

In charge of Management Reformation& Company, Inc. After she left McKinsey,

Division

Overseas Business Division

Division

̶

̶

̶

̶

̶

Outside Director, Shinsei Bank, Limited̶

After working at The Bank of Japan, Ms.

President, UT Heartful Co., Ltd.

she work as a corporate “transformation”
designer and established ChangeWAVE Inc.

Riichiro KOMATSU ｜74

Masahito FUKUMORI｜60

Hirokazu MIZUKAMI ｜73

Hiroyuki YOSHIDA ｜52

Masumi SATO

Shinichiro YAGIKen ISHIWATARI

Koji HIROTA

Full-time Audit & Supervisory Board Mem-

Full-time Audit & Supervisory Board Member

Audit & Supervisory Board Member (Outside)

Audit & Supervisory Board Member (Outside)

Manufacturing Business Division

Manufacturing Business Division

Manufacturing Business Division

Area Strategy Business Divisionber (Outside)

4 years/2,200 shares

12 years/−

6 years/−

President, UT Pabec Co., Ltd.

Executive Officer, UT Aim Co., Ltd.

Director, Yoshida Certified Public Accoun-＊＊

3 years/−̶̶̶After working at Daiwa Bank (currently

Representative Director, Advan Capital K.K.

After serving many years in the banking

Resona Bank, Limited) and Icon World Co.,business, at Taiyo Bank and Sakura Bank

Ltd. (currently Fujiwork Co., Ltd.), Mr. Fu-(both currently Sumitomo Mitsui Banking

kumori jointed UT Group. After serving as

Corporation), Mr. Komatsu was assigned

Head Officer of Internal Audit Division andto a position of a representative director

Senior Manager of General Affairs Division,and president of KOSAIDO Co., Ltd. andhe was appointed Audit & Supervisory

has abundant knowledge and insights on

Board Member of UT Group in 2017.

general corporate management.

̶

After serving as Director of The Sumitomo
Trust and Banking (currently Sumitomo
Mitsui Trust Bank) and President of Aozora Bank, Ltd., Mr. Mizukami established
Advan Capital K.K. He has many years of＊̶tant Office
Representative Director, High Brain Co., Ltd.
Outside Director, Nihon Highway Service
Co., Ltd.

Masato ONO

Okihiko OGUCHI

Toshinori MIGITA

Naoki ITO

Area Strategy Business Division

Area Strategy Business Division

Area Strategy Business Division

Area Strategy Business Division

In charge of Group Recruiting Division

President, UTHP Co., Ltd.

President, UT Community Co., Ltd.

President, Support System Co., Ltd.

Hiroshi HOKARI

Hajime NISHIKAWA

Masahiko HIOKIKoji MORIKAWA

In charge of Engineering Business Division

Customer Solution Business Division

Customer Solution Business Division

Customer Solution Business Division̶After working at Deloitte Touche Tohmatsu

experience in financial institutions and

LLC and Hongo Tsuji Tax & Consulting, andabundant knowledge.

Watanabe &Co. (tax accountant corporation), Mr. Yoshida established Yoshida Certified Public Accountant Office. He has professional knowledge in tax and accounting
and a wide range of experiences.

President, UT Construction Co., Ltd.

President, FUJITSU UT Co., Ltd.

President, UT Technology Co., Ltd.

Koji SHIGETA

Chonga HON

Masaki ISOBE

Kenichi TOYODA

Customer Solution Business Division

Overseas Business Division

Overseas Business Division

Business Development Division

Kosuke KASHIWAGI

Dai NAMIKI

Junya KOIKEManagement Reformation Division

Management Reformation Division

Management Reformation Division

President, UT Toshiba Co., Ltd.
President, UT Business Service Co., Ltd.

Executive Officers of UT Aim(From left) Hiroyuki YOSHIDA, Riichiro KOMATSU, Tetsuro YOSHIMATSU, Manabu SOTOMURA, Hiroko SASAKI, Yoichi WAKAYAMA, Hirokazu MIZUKAMI, Yuji WATANABE, Noboru HACHIMINE,
Taisuke IGAKI, and Masahito FUKUMORI

Masaru MORIOKA

Jun OTA

Tsutomu KOKUBO

Masato HAYAMA

Manufacturing Business Division

Manufacturing Business Division

Manufacturing Business Division

Manufacturing Business Division

Hiromi KASHIHARA

Kenya ONO

Takanobu HONMA

Hideo YOSHIDA

Manufacturing Business Division

Manufacturing Business Division

Area Strategy Business Division

Area Strategy Business Division

Team of Executive Officers

Corporate governance

Executive Officers of UT Group

Audit & Supervisory Board Members｜
Team of Board Directors and Audit & Supervisory Board Members

been President & CEO (current position) of

70

As of August 31, 2021＊

Yoichi WAKAYAMA｜50
̶69

Team of Executive Officers

71

Corporate Profile

Share price performanceName

UT Group Co., Ltd.

Location

1-11-15 Higashi-Gotanda, Shinagawa-ku, Tokyo 141-0022 Japan

Originally started

April 14, 1995

5,000

Established

April 2, 2007

4,500

Capital¥680 million

Number of employees

38,527 (consolidated); 615 (non-consolidated)

Listed stock exchangeTokyo Stock Exchange, First Section

3,500

Securities code

2146

3,000

Fiscal year

April 1 to March 31

General meeting of shareholders

Annually held in June

Shareholder record dates

Four times a year (June 30, September 30, December 31, and March 31)

2,000

Trading unit

100 shares

1,500

Number of shares authorized

160,000,000 shares

Number of issued and outstanding shares

40,363,067 shares

Number of shareholders

4,648

Shareholders registry administrator

(yen)

4,000

2,500

1,000
500

Mitsubishi UFJ Trust and Banking Corporation, Securities Agency Division,

0

FY2017Shin-Tokyo Post Office, PO box No.29, Tokyo 137-8081 Japan

FY2018FY2019FY2020

FY2021FY2018FY2019FY2020

FY2021FY2019FY2020

FY2021

Major Shareholders

Number of Shares Owned

Percentage（%）

Yoichi Wakayama

9,031,178

22.37

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

3,786,900

9.38

Trust & Custody Services Bank, Ltd. (Trust E Account)

2,919,700

7.23

J.P. MORGAN BANK LUXEMBOURG S.A. 381572

1,672,600

4.14

Trust & Custody Services Bank, Ltd. (Trust Account)

1,477,900

3.66

THE BANK OF NEW YORK, NON-TREATY JASDEC ACCOUNT

950,000

2.35

Lei Hau’oli Co., Ltd.

908,600

2.25

Copernicus Co., Ltd.

908,600

2.25

CREDIT SUISSE (LUXEMBOURG) S.A. / CUSTOMER ASSETS, FUNDS UCITS

884,500

2.19

THE BANK OF NEW YORK MELLON 140044

830,500

2.06

Corporate Profile

Trading volume（10,000 shares）

3,500

Corporate governance

3,000

2,500

2,000

1,500

1,000

500

0

FY2017

Share price performance relative to TOPIX
Distribution of shares

Number of shareholders＊Including holders of shares

2021

UT Group
1,000■ Foreign investors

27.7

4.6

33.2

TOPIX

（%）

33.0

900
2021

800

4,648

1.5
2020

21.9

4.7

700
37.9

34.0

2020

7,478

36.6

2019

7,364

2018

7,049

1.5
2019

19.1

5.0

1,100

less than one unit

■ Financial institutions ■Securities companies ■Other corporations■ Individuals and others

600
500

38.2

0.9

400
300

2018

19.3

5.6

44.1

29.1

200

1.9
2017

21.4

6.2 5.9

34.6

72

As of March 31, 2021

31.8

2017

3,942

100
0

＊The number of outstanding shares includes the treasury stock of 154 shares. Shareholding ratios are calculated by excluding the treasury stock.

FY2017FY2018

On the publication of the Integrated Report 2021
UT Group published its first annual report in FY3/2018 and began re-flecting a greater focus on integrated thinking in the report in FY3/2019.
We are now issuing our first integrated report.
In 2020, the COVID-19 pandemic sharpy increased social uncertainty,
and workers became more concerned about employment stability. In thissituation, UT Group has put together its management philosophy of supporting the employment stability and growth of dispatched workers since
its foundation in a sustainability context, and articulated this as the Basic
Policy on Sustainability in April 2021.
Based on this, this Integrated Report incorporates sustainability aspects in the conventional annual report. It also integrates financial andnon-financial information, and seeks to make it easier for shareholders,investors, and other stakeholders to understand our efforts to improve
corporate value in the medium to long term.
Going forward, we intend to utilize the integrated report and strive toimprove our corporate value through constructive dialogue with stakeholders.
Further information is also available on the Sustainability page of our
website.
https://www.ut-g.co.jp/sustainability/P23-24 UT Group’s value creating process
Explanation of some indicesFinancial capital●

Debt to equity ratio (D/E ratio) = interest-bearing debt/
Shareholder’s equity

Human capital●

Professional Career Partner (PCP): A professional who
supports the career formation of technical employees
from a long-term perspective●

Career Partner (CP): An in-house certified career counselor that supports technical employees’ job assignment
at their workplace and also helps their career formation

Intellectual capital●

Career development expenses: The total expenses of
the Career Development Division, which performs institutional design and educational content development
related to career formation support

Natural capital●

Energy consumption: Annual electricity usage of the UT●

Gasoline consumption: Annual gasoline consumption forGroup’s Gotanda headquarters
company vehicles managed by UT Group Co., Ltd.

Operating performance●

Work-creating value: UT Group’s unique benchmark forproviding work opportunities to many people and supporting their growth: Operating income + total personnel
expenses

Editorial Policy: This Integrated Report is positioned as a communication tool for
conducting constructive dialogues with shareholders, investors, and other stakeholders

●

●

●

●

Career formation support

and we hope they understand our value creating process as we provide financial andUsers of career path: Annual users of the One UT, Next

non-financial information concerning UT Group’s mission, management strategies and

UT, UT Entry, and job transfer from technical employees

business model for medium- to long-term corporate value enhancement, and operating

to general employees

performance among others.

Greenhouse gas emissions

Reporting Organization: UT Group Co., Ltd. and its consolidated subsidiaries
Reporting period: FY3/2021 (April 2020-March 2021)

Calculation is based on the Green Value Chain Platform* Including some activities since April 2021

by the Ministry of the Environment and the Ministry ofReference Guidelines: The International Framework of the International Integration

Economy, Trade and Industry (METI).

Reporting Council (IIRC) / The “Guidance for Integrated Corporate Disclosure and Compa-

Scope 1: Direct emissions of greenhouse gases fromny-Investor Dialogues for Collaborative Value Creation” of the Ministry of Economy, Tradeburning fuel at business sites

and Industry of Japan / GRI Standards, Global Reporting Initiative

Scope 2: Carbon dioxide emissions from electricity use in

Forward-looking statements: The information contained in this report contains for-officesward-looking statements. They are based on the Company’s judgment at the time of thisScope 3: Major indirect emissions excluding the above

report, and include factors such as risks and uncertainties. Actual results and results(use of company vehicles for business)

may differ from those stated in this report.