Open Up Group
Mid-term Management Plan
June FY2022 - June FY2025

BY25
Disclosure day：6th August 2021
Company name part revision day：1st January 2023

Points for the Mid-term Management Plan
External environment
1. COVID-19 brought significant changes in the working environment
2. Workers start to think what they are working for and how they want to work
3. Social interest in Sustainable Development Goals (SDGs) is rising.
We will promote "8. Job Satisfaction and Economic Growth"Open Up Group
1. A temporary staffing company with the largest number of engineers in Japan throughthe business integration
2. Covers various industries in the domestic business, including Machinery, Electronics
and IT Software and construction
3. Values, social significance and course of action that can be shared among all
members of the Group are necessary

Our visions
1. Profit growth to realize a sustainable society is our basis
2. Reestablish and reconfirm our Group’s aim “Purpose (significance of existence)” , driven
by social changes and integration

2

Purpose (Significance of Existence)
Open up individual potential
through rewarding work

Open up individual potential
through rewarding work
Make society morediverse and prosperous

Doors areOpportunities

New JobTraining

Counseling

Various Doorsfor individualFirst Doorto society

Open up individual potential
through rewarding work
Just as each individual has a different way of thinking about happiness,
We believe that rewarding work for workers is also diverse.

Our role is to create many doors to open up possibilities and a milestone
toward a rewarding work for each employee.
We support the workers to open the doors.
-For some people, the challenge to a new job.
-For some people, to improve their skills in training.
-For some people, the time to consult future careers.
We believe that people will always grow and drive the society forward
when they open the next door.
We will increase the number of people who open the door to the next
to make society more diverse and prosperous.

We the Open Up Group exists to create such a future.

BY254-year mid-term plan
“Open Up Group Mid-term Management Plan BY25”(from June FY2022 to June FY2025)

Outlook for Engineer Staffing Market∎ Even after COVID-19, the supply-demand matching opportunities areexpected to expand.
Human resource demand:⚫ The economy is expected to recover sooner or later in 1
to 2 years after the convergence of COVID-19.
⚫ Structural issues remain, such as rigid employment
systems and practices, and low mobility of humanresources to growth fields.
⚫ As the economy recovers, the trend of human resource
shortages, which had temporarily toned down, will
surely return.

⚫ Shortage of IT engineers (especially those withexperience) is a long-standing issue.
⚫ Further expanding opportunities for young andexperienced engineers through the spread of DX

Human resource supply:⚫ The majority of HR service companies intend tomaintain and slightly increase the number of dispatchedemployees even under the COVID-19 crisis⚫ Manufacturing dispatch business, which is recovering
quickly due to the economic downturn, is already brisk,
and competition for hiring in the IT field is also
intensifying.
⚫ Many major human resource companies havesignificantly increased their recruitment plans in
anticipation of the post-COVID era⚫ Dispatch engineers are required to have a certain levelof skills and to continuously improve their skills⚫ It is expected that user companies will increasingly fill acertain percentage of their resource needs from outside
the company.

In the engineer staffing market, which is experiencing a favorable and expanding
trend, we will achieve significant growth by focusing on the high-volume market
and investing to expand our strengths.
7

Target zone / competitor analysis∎ We aim to increase market share in large-volume zones (upper low-end to mid-end)⚫ Domestic Engineer dispatching market：¥2,053bn（the number of Engineer

dispatching: 310 thousand people）※ Period: April 2019 to March 2020
※ The market share of engineer dispatch is compiled by the IR Department based on data from the Ministry of Health, Labour and Welfare.

High-end
Market share is based on
the number of dispatchedengineers

Company M
Market share: 3.7%

・Technology concept
・Basic design
・Detailed design¥5,000 or more/ hour/ person

Company T
Market share: 6.6%

Our company
Market share: 5.1%

Mid-end・Programming/CAD
・Inspection and maintenance・Construction and installation¥3,000 or more/ hour/ person¥3,000 or less/ hour/ person

Company O
Market share: 6.7%

Low-end・Technical Support
・Field Engineering※ Company M: as of the end of March 2021; Company T: as of the end of June 2021; Company O: as of the end of December 2020;
and Our: number of engineers as of the end of June 2021

8

Goals through Business Integration∎ Aim for No.1 player in the engineer temporary staffing industry
Changes after business integration

1. Business scale comparable to industry leader : About 15,000 engineers (Japan)…5,000 engineers each in the construction, Machinery, Electronics and IT Software domains
Reaching the industry's top in each area
2. Capacity to generate stable cash and financial foundation in the construction, Machinery, Electronics and IT
Software domains…Capable of making more aggressive investments (core and new businesses) including large M&As

3. Enhancement of management resources, sharing of knowhow and expansion of opportunities for business
optimization…Ability to develop recruitment skills and training skills, data usage, back- office business, M&A
sourcing/PMIHigh management goals toward new challenges
and further accelerate growth speed
9BY25
Aspiration⚫ Net sales:¥250 billion⚫ EBITDA:¥25 billion⚫ Number of employees(domestic):
31,000Open Up Group BY25: Plan and Aspiration(Million yen)

IFRS

IFRS

FY06/22

FY06/25

ForecastPlanChange

3 yearGrowth rate

FY06/25
Aspiration

Net sales

148,000

200,000+52,000+35.1%

250,000

Gross profit

34,00046,800+12,800+37.6%

60,000

23.0%

23.4%

+0.4pt25,00030,800+5,800

16.9%

15.4%

△1.5pt10,00016,000+6,0006.8%

8.0%+1.2pt27,0008,000

Profit ratio

SGA
Profit ratio

EBITDA
Profit ratio

Operating income

24.0%+23.2%

35,00014.0%+60.0%

25,000
10.0%

9,000

Profit ratio

6.1%

Number of engineers &technicians (Japan)

19,000+42.1%*Excluding amortization of goodwill, depreciation and amortization, one-time acquisition costs, employment adjustment subsidy, etc.

11Open Up Group BY25: Plan and Aspiration(Million yen)

IFRS

IFRS

FY06/22
Forecast

FY06/25
Plan

Change3 yearGrowth rate

CAGR

148,000

200,000+52,000+35.1%+10.6%

Machinery, Electronics
and IT Software

70,00097,000+27,000+38.6%+11.5%

Construction

38,00049,000+11,000+28.9%+8.8%

Manufacturing10,00017,000+7,000+70.0%+19.3%

Overseas28,50035,000+6,500+22.8%+7.1%

10,000 (6.8%)

16,000 (8.0%)+6,000+60.0%+17.0%

Machinery, Electronics
and IT Software

6,500（9.3%)

11,030 (11.4%)+4,530+69.7%+19.3%

Construction

5,600（14.7%)

6,860 (14.0%)+1,260+22.5%+7.0%

Manufacturing

500（5.0%)950 (5.6%)+450+90.0%+23.9%

Overseas660（2.3%)

880 (2.5%)+220+33.3%+10.1%

19,00027,000+8,000+42.1%+12.4%

Machinery, Electronics
and IT Software

10,90015,050＋4,150+38.1%+11.4%

Construction

5,550

7,600

+2,050+36.9%+11.0%

Manufacturing

2,550

4,350

+1,800+70.6%+19.5%Net sales

EBITDA

Number of engineers & technicians* The above figures do not include business results which are not included in each segment and headquarters adjustment expenses, etc

12Segment/Strategies for Each Domain

Machinery,Electronics
and IT
SoftwareConstruction[IT Software] Development of inexperienced people to a middle-level ITengineers[Machinery & Electronics] Improve skills and increase unit price throughestablishment of Engineer Value (EV) model
Maximize engineer’s LTV (promotion of long-term work) and deepen
long-term relationship with customers to further strengthen thepositon of the Japan’s largest player (total profit contribution duringtenure)

ManufacturingObtain key clients, promote retail marketing and strengthen our own
recruitment in areas for stable growth in manufacturing temporary
staffing maintaining high earning rate

Overseas[Europe] Raise profitability through expansion of professional sector[Asia] Seek for the opportunities for change, development andexpansion in human resources market while securing profits
13

Machinery, Electronics and IT Software Segment: Strategies for IT Domain∎ The environment surrounding the IT industry is drastically changing■ Further shortage of IT engineers• Strong demand for experienced IT engineers who are ready to work
➢ The shortage of experienced engineers is accelerating reflecting the rapid increasein development needs

Future ➢ As new technologies arise, it is difficult to deal with changes only by experiencedengineers■ Lower IT technological hurdles• It takes certain period of time to acquire proficiency skills= high hurdle to becoming an IT engineer➢ General-purpose packages become the mainstream due to the evolution of ITtechnology
Future➢ The age of low codes for both development and infrastructure enable us toshorten the development period

The industry ischanging.
-Training-oriented IT
engineer staffing
companies like us
enjoy a tailwind■ In-house system development at user companies• End-user companies ask system integrators to develop all their IT projects• IT-engineers concentrate on system integrators, and orders are multiply structured

Future➢IT as an important business strategy issue for companies➢

End-user companies hire in-house IT engineers → promote in-housesystem development14

Machinery, Electronics and IT Software Segment:
Strategies for IT Domain∎ Hybrid training [Training program × OJT] + [OJT within the Group] topromote skill improvement and career advancement of inexperienced
employees
OJT
Mid-level training
Salesforce
AWS

High-endengineers

Mid-end engineers

OJT
Advance training
LPIC
CCNA

Low-end engineers

Our group companies (systemdesign/development/contracting)as training sites

Inexperienced

ビーネックス
ソリューションズ

15

Machinery, Electronics and IT Software Segment:
Strategies for Machinery & Electronics Domain∎ Further promote the improvement of engineers' skills, careers, and unit price by upgrading,deepening, and thoroughly implementing each element of the engineering value (EV) model.

Visualization of "Value"• Collection, accumulation, and analysis ofengineer information from a diverse perspective:
skills, experience, results, customer evaluations,career orientation, assignment wishes, etc.

Enhancement of "Value"• Provide opportunities to improve skills according
to each engineer• Appropriate market-price dispatch fees based ontechnological level

Realization of "Active Participation"• Performance-based awarding, salary increases,bonuses, and training programs

Further development of "Possibility"• Utilize IT tools to improve operational efficiency
and increase the number of opportunities

16Strategies for Construction Segment∎ Aim to achieve stable employment and transactions with both engineers andcustomers to be a Japan's largest temporary staffing company for the constructionindustry.
■ Maximize LTV of engineers(promote long-term employment)• Periodic follow-up system for on-siteengineers• Prioritize the dispatch sites to keep highretention rates

Sales andAssignment
StaffsFollow-up
StaffsEngineers assignedto each site

■ Systems and services that prioritize
lengthening contracts withcustomers• Assign exclusive sales staffs to clientswith numerous projects, such as major
general contractors• Prioritize the dispatch of engineers toclients who can expect long-term andcontinuous contracts• Jointly implement business improvement
measures with customers, such as
introducing web system, to create
benefits of continuing business with us

Periodic follow-up

17

Manufacturing Segment Strategy∎ Achieved top-class profitability in the manufacturing dispatching industry by focusing on more
profitable business than business scale∎ Aiming for stable growth by maintaining a high profit margin and promoting area strategy andstrengthening proprietary recruitment

Promotion of regional strategies

Strengthen independent recruitment
Own brand

In-house
Recruitment bases

In-house
recruitment site

Cultivate customers in the same area
and allocate human resources in thearea without waste
18

Overseas Segment Strategies∎ Large-scale overseas investments and new regional development came to an end,
and each has secured profitability∎ Will consider business portfolio recombination and new approach in countries whereregional developments have been completedUK:
Increases in profit/profitability through expanded
high-margin sector

Asia: (China/Indonesia/Vietnam)
Seek opportunities to develop and expand
human resources market while securing profits

・Large M&A investments completed by 2018 andestablished a business foundation of 30 billion yen insales

・Local corporations and joint ventures all turned
profitable

・Focus on shifting to a highly profitable professional
sector from the current core manufacturing (nonskilled) sector

・Scalable business model and sector have not yet beenfound using our Japanese human resources service
company knowhow and management power

・Make investments within the funds generated fromthe UK business if new acquisition is necessary

・Wait for opportunities for market changes including awide range of developments, such as exploring
opportunities to invest in new HR tech companies

19Strategies for Company-wide Measures∎ Promote measures to enhance corporate value group-wide in addition to strategies for each segment

DX mid-term measures:
Establish data usage method to realize
efficiency, sophistication and acceleration ofbusiness
Identify and create a mechanism of business processcapable of improving within the in-house system or byeasily analyzing collectable data

BPR mid-term measures:
Cost reduction due to unification of the Group’s
back-office operation
Unification of common tasks such as attendance,salary, billing and contract led by the Head Office totake advantage of the economies of scale inbusiness merger

Continuation of aggressive M&As: Select key investment projects setting goals for each domain
1. Machinery and electronics & construction▷ Focus on M&As which further enhance and expand existing
businesses▷ Aim to introduce business management method, strengthenmarketing and recruitment capability and improve efficiencyof SG&A expenses, etc. after M&As

2. IT
▷ Gain opportunities to improve skills and careers of young
experienced workers▷ Realize value improvement taking advantage of the Group’s
recruitment capability▷ Establishment of a cooperative model with a company with technologicalskills

20

Key Performance Indicators
Open up individual potential through rewarding work
(Key Performance Indicators to achieve this philosophy)

Examples of KPIs:
Retention rate for acertain period of time

Number of newemployees

Rate of taking
paid leave

Recommendation level-Would you recommend
your workplace to a friend?

Satisfaction
with career
consultation

Training hours peremployee

Number of employees
to improve skill
proficiency

Satisfaction withcorporate support

Number of licenses
acquired21

ESG/SDGs Initiatives ①∎

We will incorporate ESG into our business objectives and evaluation systems in order to contribute to solvingsocial issues and enhancing corporate value over the medium to long term.

∎We strive to understand the direction of the disclosure standards for non-financial information and the ratingsof evaluation organizations, etc., and will continue to disclose ESG information to improve awareness.

Disclosure of our initiatives on ESG• Next report will be published in November 2021, mainly on governanceIntegrated
ReportScheduled to be
published in earlyNovember everyyear

and environmental initiatives of the system after the shareholders

meeting.
• Due to the business integration in April 2021, we were unable to cover
the full-year official status in the previous fiscal year.
• Full-year actual conditions are expected to be properly reflected from theNovember 2022 publication•Information is updated on the following website

http://www.openupgroup.co.jp/en/sustainability/

22

ESG/SDGs Initiatives ②■Basic items
In particular, we will set items for SASB and GRI standards and disclose theprogress/effects in the integrated report (initially scheduled to start with SASB).

■Unique items of our group
Disclose our progress and results on SDGs initiatives in the Integrated Report and on
our website◆ Well-Being of employees
Promote the sustainable achievement of the Ministry of Economy, Trade andIndustry's "Health Management" standards and disclose key items in an integrated
report and on the website
Monthly monitoring of labor, safety and health (overtime works, paid maternity leave,etc.)
Percentage of employees with disabilities (more than 2.3%) exceeding the statutory
requirement◆ Environmental Initiatives
Establish environmental regulations mainly for purchasing to promote bothbusiness growth and environmental considerations
Annual changes are disclosed in the Integrated Report and on the website.
Environmentally conscious purchasing (paper, gasoline, plastics*, green plants)* Recycling of used papers* Implemented at a special subsidiary for the employment of people with disabilities

手すきによる再生紙を使用したノベルティ23

Capital and Financial Strategy and Shareholder Return Policy∎ To increase corporate value over the long term, we will establish optimal
capital and financial policies supporting sustainable growth
Capital and financial strategies in BY25
• Recover ROE to 10% or higher• Maintain DER within 1.0 times

Shareholder Returns•

2 pillars: stable dividends and purchaseof treasury stockSpecific measures:Dividends:✓ Purchase of treasury stock✓ Aim to increase dividends every year basedon growth in earnings per share– 15 to 20 billion yen during the period(4 billion yen in FY06/22)✓ Revaluation of goodwill increased as a resultof the management integration– Scheduled at the time of adoption ofIFRS✓ Setting hurdle rates for M&A investment
criteria– Target: WACC 8%✓ Prioritize debt to finance M&A investments(Full-year forecast for FY06/22 is 45 yen per share)✓ Target: dividend payout ratio 40%

Purchase of treasury stock✓ As shown on the left, capital efficiency andfinancial soundness are also taken into
consideration✓ The amount of acquisition for each fiscal
year will be resolved and announced on acase-by-case basis, taking into accountbusiness performance and other factors.

24

BY25
Aspiration⚫ Net sales:¥250 billion⚫ EBITDA:¥25 billion⚫ Number of employees(domestic):
31,000Disclaimer
This material is intended to provide explanations of our business and is not intended to solicit
investment in securities issued by us.
The forecasts described in this document are our judgments at the time of preparation of thisdocument, and the accuracy of information is not guaranteed.

It is also subject to change without notice in the future.
In the unlikely event that we or our providers of information were to suffer any damages
based on this information, we and our providers assume no liability.

(Inquiries) Investor Relations, Open Up Group Co.： ir@openupgroup.co.jp