3rd Quarter of Fiscal Year Ending March 2024 (FY2024)

Financial Results
Briefing Material“Kabushiki Kaisha Confidence Interworks”(English name: “Interworks Confidence Inc.”)
Securities code ： 7374

Table ofContents

01
02
03
04
05

E xec u t ive S u m m a r y

P. 3

C o m pa n y O ver v iew

P. 6

C o n so lida ted F in a n c ial Resu lt s a n d
S egm en t Resu lt s
P. 1 1D iv iden d D ist r ibu tio n

P. 2 3

P ro gress of G ro w t h St ra tegies／
B u sin ess To p ic s

P. 2 52

01

Executive Summary

Financial Highlights of Q3 FY2024 (Cumulative) As a result of the merger with Interworks on August 1, Q3 FY2024 saw significant year-on-year growth for both revenue and gross profit
 Despite the amortization of goodwill associated with the merger, operating profit continued to increase. The operating profit margin was

16.7%, keeping a high level▍Q3 results

Revenue

Gross profit

Operating profit

5,377 million yen

2,422 million yen

895 million yen

YoY

39.3%

Revenue CAGR

26.9%

YoY

77.6%

Gross profit margin:

45.1%

YoY

20.7%

Operating profit margin:

16.7%* Revenue CAGR is calculated based on actual figures between FY2019 and FY2023.

Copyright© Confidence Inc. All Rights Reserved.

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4

Trends in Revenue / Operating Profit Over the Years As of Q3, revenue has already exceeded the full-year figure of FY2023, partly due to the inclusion of Interworks’ results for five months(August through December) By progress rate, revenue and operating profit were at 67.2% and 80.0%, respectively, against the full-year forecast, with revenue slightly behind

despite a trend of larger volume in 2H while operating profit progressed faster than the forecast
August 2023
Merged with Interworks▍Revenue(Million yen)

9000

6000

4,425
3,569

4000
3000 Established in0

Progressrate◀ 67.2%

5,197

5000

1000

◀ Forecast+17.5%

7000

2000

1300

8,000

8000

2,004

August 2014

46
FY2015188

FY2016512

FY2017+20.0%(Million yen)

+53.9%

10000▍Operating profit+25.2%

1100

5,377

745
700

604

FY2020

Past results

FY2021

FY2022

FY2023

FY2024Current
fiscal
year

895

335
300

69

100

FY2019Progressrate◀ 80.0%

900

1,140

FY2018◀ Forecast

933

500

2,604

1,120

-100

-6

FY2015-15FY2016FY2017148

FY2018174

FY2019FY2020

Past results

FY2021

FY2022

FY2023

FY2024Current
fiscalyear

Copyright© Confidence Inc. All Rights Reserved.

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5

02

Company Overview

Company Overview

VisionEmpowering Professionals to
Create the Future Together
Our goal is to help many professionals achieve their dreams
in a society that values diversity, and to make a positive
impact on their companies, industries and society, creating asociety with endless opportunities.

PROFESSIONAL

CLIENT

Company
nameKabushiki Kaisha Confidence Interworks (English name: Interworks Confidence Inc.)

Representative

Nobuyuki Takushi, President

Established

August 2014

Head office

BYGS Shinjuku Bldg. 10F
2-19-1 Shinjuku, Shinjuku-ku, Tokyo

Local Office

Nagoya │ Osaka │ Fukuoka

Consolidated
subsidiary

Dolphin Inc.

Officers

Confidence Pro Inc.

President

Nobuyuki Takushi

Senior Managing
Director

Takuro Yoshikawa

Managing Director

Masatsugu Kudo

Director

Koji Nagai

Outside Director

Reona Amemiya

Outside Director

Midori Mizutani

Outside Director

Hirofumi Miki

Outside Director

Tomonori Hayakawa

Outside Auditor

Takashi Yachi

Outside Auditor

Tadahiko Yasukuni

Outside Auditor

Kenya Fujimori

Outside Auditor

Yoshinori Maruta

Paid-in capital

509 million yen (as of December 31, 2023)

Line ofbusiness

HR solution business (staffing, outsourcing, recruitment), Media & solutions businessNo. ofemployees

1,188 (as of December 31, 2023) [consolidated]

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7

Business Overview│Who We Are

D E V E LO P I N G A S E G M E N T - S P E C I F I C H R B U S I N E S S *Core ValueTe c h n i q u e s a n d t o o l s t h a t a r e c o m m o n l y u s e d a c r o s s i n d u s t r i e s .
HR Solution

Media

Attraction
techniques

Recruitment

Content creation

Matching
techniques
Sales

Communication*HR business: a general term for staffing, recruitment, outsourcing, and media (job ad/media operations)
Copyright© Confidence Inc. All Rights Reserved.

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8

Business Overview│Composition of Revenue

71.4%

HR Solution business (Staffing and Outsourcing)Composition of revenue

・ Specializing in the gaming andStaffing
Outsourcing
Freelancers
entertainment industries
Staffing and outsourcing services that meet the needs of each phase anddepartment
In April 2023, freelancer matching started. ▶

15.6%

HR Solution business (Recruitment)
FY2024

Revenue (Forecast)

8.0

billion yen

・ Cross-industry career-change support services centered on middle- andhigh-class human resources. Recruitment Employment
placement

Recruitment platforms ▶

13.0%

Media & Solutions Business・ Specializing in manufacturing and factories throughout Japan
Operation of job change recruitment
Media
Ad salesmedia “Kojo Works”
Media operations ▶

・ Boasting more than 30 years of experience, we are developinga recruitment outsourcing business

Recruitment
support

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9

Business Overview│Segmentation After the Merger
 As a result of the merger, segments and service groups were changed as shown in the figure below, and the new segment groups werereported from the financial results for Q2 FY2024

Before the merger: Segments of each company

After the merger: New segments

Staffing

HR Solution
business

Outsourcing
HR
Solutionbusiness
Recruitment

1

Freelancers

Media businessMediaMediabusiness

Media &
Ad salessolutions business Media business
Recruitment
businessMediabusinessplacement

Hiring support
business

HiringbusinesssupportMedia

Staffing

HR Solution business(Staffing and Outsourcing)

HR Solution
Outsourcing
business

HR Solution business(Recruitment)

Recruitment
HR
Solution
Employmentbusinessplacement

Freelancers

2

3
Media

Employment

Media & Solutions Business

HR Solution
Ad salesbusiness
Hiring support

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10

03

Consolidated Financial Results andSegment Results

[Consolidated] Financial Highlights of Q3 FY2024 (Cumulative) Significant year-on-year increases were seen as a result of expanded bases for revenue and respective profits due to the merger with Interworks as ofAugust 1, 2023

 By progress rate against the full year forecast, revenue was slightly behind despite a trend of larger volume in 2H, while operating profit grew steadilyeven after amortizing goodwill▍Q3 results▼For Interworks, 5-month results (August - December) were recorded.

FY2023(Q3)

FY2024(Q3)Forecast

YoY

Progress rate(announced on
August 10, 2023)

Revenue

3,861

5,377

+39.3%

8,000

67.2%

Gross profit

1,364

2,422

+77.6%

3,718

65.2%

35.3%

45.1%

+9.8 pts

46.5%

-

742

895

+20.7%

1,120

80.0%

19.2%

16.7%

-2.5 pts

14.0%-

Ordinary profit

741

843

+13.7%

1,065

79.2%

Profit

503

547

+8.7%

725

75.5%

Reference: EBITDA *

769

990

+28.7%

1,258-

EBITDA margin

19.9%

18.4%

-1.5 pts

15.7%-

Gross profit margin
Operating profit
Operating profit
margin* EBITDA = Operating profit + (Depreciation + Amortization of goodwill) │ EBITDA margin = EBITDA ÷ Revenue
Copyright© Confidence Inc. All Rights Reserved.

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12

[Consolidated] | Quarterly Results Trends
 The merger with Interworks led to a significant increase in Q3 revenue. Even excluding the effects of the merger, revenue of former Confidence

still increased 9.3% year on year Operating profit grew 38.4% year on year to reach a new record high after reflecting the amortization of goodwill+61.6%▍Revenue (quarterly trends)(Million yen)

2,127 (Million yen)

： Consolidated

2,000

832 830926

979

1,0421,052

1,1491,180

1,250

1,2931,3161,336+38.4%
333： Consolidated

300

1,840

1,500

1,000

▍Operating profit (quarterly trends)

282 279

264
241

236

1,409

211
200

185

181

161
134

191

180

172

123

100
500

0

Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

FY2023* Figures after eliminating internal sales within the consolidated companies are indicated

Q4

Q1

Q2

FY2024

Q3

0

Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

FY2023

Q4

Q1

Q2

Q3

FY2024

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13

[HR Solution Business - Staffing and Outsourcing] Financial Highlights of Q3 FY2024
 The majority of this segment is dominated by the HR Solution business of the former Confidence Inc.
 The mainstay staffing business achieved growth both in revenue and segment profit. The segment profit margin remained largely the same as

the year-earlier level▍Q3 results(Million yen)

Revenue *Staffing
Outsourcing andothersGross profit
Gross profit margin
Segment profit
Segment profit margin▼Figures after reclassifying to new segments

FY2023(Q3)

FY2024(Q3)Forecast

YoY

Progress rate(announced on
August 10, 2023)

3,792

4,166

+9.8%

5,714

72.9%

3,631

4,017

+10.6%

-

-

161

149

-7.5%

-

-

1,309

1,448

+10.6%

-

-

34.5%

34.8%

+0.3 pts

-

-

1,014

1,074

+5.8%

-

-

26.8%

25.8%

-1.0 pts--* Figures after eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

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14

[HR Solution Business - Staffing and Outsourcing] Trends in Major KPIs
 Creator staffing assignments, which serve as the foundation of the Company’s recurring income model, increased by 24 from the year-earlier

quarter, but at a slower pace than past growth This was due to the slowdown in the mobile gaming market, although the human resource needs in the home-use game console market

remained solid. The utilization rate stayed at a high level▍Creator staffing assignments+24 people

1000

800

600

504

529

564

620

630

673

715

740

▍Utilization days *1 / Utilization rate *2

768

775

Utilization days

848 840816 813 830

80.0
60.0

99.4% 99.9% 99.7% 99.6% 99.5% 99.2% 99.8% 99.4% 99.6% 99.6% 98.9%
56.7

54.5

56.9

55.0

56.4

55.7

55.9

55.3

57.3

56.3

55.2

100.0%
80.0%
60.0%

40.0

40.0%

20.0

20.0%

0.0
*1

400

*2

0.0%
Q11Q FY24
Q22Q FY24
Q33Q
Q1 1Q FY23
Q22Q FY23
Q33Q FY23
Q44Q FY23
Q1 1Q FY23
Q22Q FY23
Q33Q FY23
Q44Q FY24
FY23
FY2023
FY2022
FY2024
Quarterly total of the number of days arrived at by dividing the total number of days worked by each person
on a monthly basis by the number of utilized persons at the end of the month
The ratio obtained by dividing the total number of utilized staff at month end by the total number of staff
that can be utilized at month end▍Trends in average daily overtime hours *200

FY20230.80

0Utilization rate

Q1
FY21
1Q

Q2
FY21
2Q

Q3
FY21
3Q

FY2021

Q4
FY21
4Q

Q1
Q2 FY22Q3 FY22Q4 Q1
Q2 FY24
Q3
FY22 FY22
FY23 Q2
FY23 Q3
FY23 Q4
FY23 Q1
FY24 FY24
1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

2Q

FY2024

3Q

0.60
0.40

FY2024

0.60

0.63

0.55

Apr

0.58

0.59

0.61

0.62

0.59

0.59

0.60

0.57

0.56

0.56

0.54

0.55

0.52

0.53

0.53

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

0.20
0.00

0.60

0.61

0.59

Jan

Feb

Mar

*Daily average obtained by dividing the average total monthly overtime hours by the average number ofactual utilization days

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15

[HR Solution Business - Recruitment] Financial Highlights of Q3 FY2024
 The segment achieved a significant year-on-year increase in revenue and profit compared with the former Confidence alone, as the recruitment businessof the former Interworks accounts for a large portion of the segment

 The range of revenue generation expanded as the recruitment business was significantly strengthened, centered on middle- and high-class humanresources across the industry▍Q3 results（百万円）

Revenue *Recruitment
Gross profit
Gross profit margin
Segment profit
Segment profit margin▼For the figures, 5-month results (August - December) of Interworks were recorded

FY2023(Q3)

FY2024(Q3)

YoY

Forecast

Progress rate(announced on
August 10, 2023)

31

623

+1856.4%

1,243

50.1%

31

623

+1856.4%

-

-

25

499

+1859.3%

-

-

80.0%

80.1%

+0.1 pts

-

-

5

184

+3181.3%

-

-

17.7%

29.6%

+11.9 pts--

The progress rate of the businesses related to the former Interworks indicates the figures for the five months(August - December) passed out of the 8 months for the entire fiscal year▲* Figures after eliminating internal sales within the consolidated companies are indicatedCopyright© Confidence Inc. All Rights Reserved.

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16

[HR Solution Business - Recruitment] Trends in Major KPIs
 In Q3, the number of consultants increased to 77 on average, and efforts were made to foster them, resulting in the number of contracts closed

standing at the same level as in Q1 and Q2
 In the recruitment business, where a larger number of consultants directly leads to larger revenue, our plan is to make progress by increasing the numberof consultants and focusing on their productivity▍Number of contracts closed and unit price per contract
Unit price per contract: Index based on the FY2022 (Q1) at 100* Calculated based on the average number of consultants at the end of each month(Number of people)(Number of contracts)
Number of contracts closed

200

100

106

95

132

100

100

▍Number of consultants (average)

114

101

103

Unit price per contract

98

147
129

114

105

131

99

133

80

104

96

92

140

136

77

： Number of consultants

58

60

140

44

47

40

20

0

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

FY2023Q4Q1Q2FY2024Q3

0

0

FY2021

FY2022

FY2023

FY2024

Average

Average

Average

Average

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17

[Media & Solutions Business] Financial Highlights of Q3 FY2024
 The segment achieved a significant year-on-year increase in revenue and profit compared with the former Confidence alone, as the Media & Solutions

business of the former Interworks accounts for a large portion of the segment

 For job opening advertisements (Kojo Works), aim to secure stable segment profit by lowering the break-even point through the reduction of fixedcosts▍Q3 results（百万円）▼For the figures, 5-month results (August - December) of Interworks were recorded

FY2023(Q3)

FY2024(Q3)Forecast

YoY

Progress rate(announced on
August 10, 2023)

36

587

+1494.6%

1,041

56.4%

Job opening
advertisement

-

431

-

-

-

Outsourcing andothers36

156+324.2%

-

-

29

474

+1523.9%

-

-

79.3%

80.8%

+1.5 pts

-

-

18

150

+703.2%

-

-

50.8%

25.6%

-25.2 pts

-

-

＊ *
Revenue

Gross profit
Gross profit margin
Segment profit
Segment profit margin* Figures after eliminating internal sales within the consolidated companies are indicated

The progress rate of the businesses related to the former Interworks indicates the figures for the five months(August - December) passed out of the 8 months for the entire fiscal year▲
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18

[Media & Solution Business - Job Advertisements] Trends in Major KPIs
 The number of job postings has been recovering since May

 The number of trading clients increased by 20 from Q2. The unit price per client remained on an upward trend compared withFY2023▍Kojo Works’ number of trading clients and unit
price per client▍Number of job postings on Kojo Works(No. of jobs posted)

Unit price per client: Index based on the FY2022 (Q1) at 100(No. of companies)

31,00630,00028,7901200

27,275959
23,39220,00020,301

Number of trading clients

22,222

23,43922,62421,989900

19,405

20,176

812

868

950
844

916

859
679

19,494
16,942300

Unit price per client
941

（%）

726

746

200

600

15,436100

10,000

107

108

114

96

87

84

89

Q2

Q3

Q4

105

105

113
100

FY2022

FY2023

FY2024

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

0

May

300

0

Q1

Q2

Q3

FY2022Q4Q1

FY2023

Q1

Q2

Q3

Q4

0

FY2024

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19

[Consolidated] Quarterly SG&A Expenses Trends
 The merger with Interworks significantly changed the size and composition of SG&A expenses

 Even after the merger, will continue to thoroughly control costs and maintain an organizational structure that generates solid operating profit▍Quarterly trends(Million yen)

Personnel expenses

Rent expenses on land and buildings

Commission expenses

Taxes and dues

Depreciation

Amortization of goodwill

Other

700

130

600

553
91

500

27
6
10
58

400

285

300
200
100
0

738

188
32
0
2
9
32
13

187

176

231
34

212

0
17
11
33
14

34
0
17
7
30
15

219

189

34
0
6
7
34
16

31
0
2
7
29
15

32
0
2
5
24
13

35
0
7
5
27
13

98

98

98

118

105

103

119

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2022

FY2023

60
0
9
9
38
17
150

Q4

41

15
16

71
42

35

234
37
0
4
9
37
18

420
324

126

Q1

Q2

Q3

FY2024
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20

[Consolidated] Factor Analysis of Increase/Decrease in Operating Profit (YoY) As a result of the merger, Interworks’ gross profit and expenses were added. Besides, despite amortization of goodwill incurred since Q2, theincreased costs were offset and a larger profit was secured through Interworks’ recruitment and Media & Solution businesses contributing togross profit and optimization of back office expenses through the merger. The same trend is expected to continue in Q4 and beyond(Million yen)

Gross profit

SG&A expenses

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21

[Consolidated] Balance Sheets/Statements of Cash Flows As a result of the merger, cash and deposits increased by 1.60 billion yen, net assets by 3.73 billion yen, and total assets by 3.85 billion yen(goodwill by 1.58 billion yen) from the end of FY2023
 Continued to secure high financial stability, with net cash amounting to 3.65 billion yen and the equity ratio standing at 85.1%▍Balance sheets at end of Q3 FY2024▍Cash flows for Q3 FY2024(Million yen)

(Million yen)

Current liabilities

985

Cash and deposits

3,653

Share capital

Other current assets

889

Goodwill

1,581

Non-current assets(excluding goodwill) 624

Net assets

5,762

509 million yen

Capital surplus

3,882 million yen

Retained earnings

1,357 million yen

Treasury shares

Share acquisitionrights-8 million yen

Balance of cash and deposits as of March 31, 2023

2,047

Cash flows from operating activities+629

Cash flows from investing activities-80

Cash flows from financing activities *-322

Increased amount in cash and deposits due to merger+1,378

Increase/decrease in cash and deposits+1,605

Balance of cash and deposits as of December 31, 2023

3,653

21 million yen * Dividends paid: -294 million yen, repayments of borrowings: -22 million yen, other, net:
-5 million yen

Financial indicators
Net cashEquity ratio
ROE (Reference) *3.65 billion yen
85.1%
18.7%

* Profit, which is the basis for calculating ROE, is an estimate based on the full-year forecast
for FY2024 that has been announced

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22

04

Dividend Distribution

Summary of Dividend Forecast for FY2024
 The full year dividend for FY2024 is expected to be 55 yen, an increase of 7 yen (YoY). Dividend policy is basically to pay continuous andstable dividends, and it has increased dividends consecutively since it was listed on the stock exchange.
 The following is a various indicators related to dividends with an assumption of the current full year forecast▍Trends in dividend per share+7.0 yen

Year-end dividend (current forecast)

55

Interim dividend (Finalized)
Year-end dividend (past results)
Interim dividend (past results)▍Summary of dividend indicator48

Payout ratio

46.4%

FY2023 results

DOE

8.6%

FY2023 results

40
30
28

40

+5.0 yen20

FY2022

FY202325

FY2024

Dividend
yield

35.6%

(Forecast)

12.1%(Forecast)

3.5%(Forecast/estimate:stock price at the endof December)

As of March 31,
2023

2.6%

* EPS, which is the basis for calculating dividend yields, is estimated based on
the full year figures announced for FY 2024.
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24

05

Progress of Growth Strategies/
Business Topics

Progress in Growth Strategies/Business Topics▍Summary of Business Topics [FY2024]

Established Confidence
Pro Inc., a consolidated
subsidiary specializing infreelance matching

Invested in Indigames(engaged in offshore gamedevelopment, 3D CG
outsourcing services, etc.)

Apr 3, 2023

Held “Game DX Forum”
in collaboration with
GREE Advertising

Launched ”RPA Tips,” apractical information website
on robotic process automation(RPA)

Oct 24, 2023

Jan 9, 2024

Sep 7, 2023

Aug 1, 2023
Started the operation of“Interworks ConfidenceInc.” as a new integrated
company

Oct 17, 2023
Developed a gameplanner training course incollaboration with
Precious Analytics

Nov 29, 2023

Jan 19, 2024

Started collaboration with
Penetrator Inc. to develop
training services for humanresources with RPA skills

Affiliated Protagonist
Inc., which works on Web
3.0 × HR Tech, as a
subsidiary

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26

Growth Strategy | Expand Matching Solutions

Press release dated January 9, 2024

Launched RPA Tips, an information website
Work to expand HR Solution services in the DX industry through training services for human resources
with RPA skills
Expand matching solutions

Expand into new business areas
HR Solution
business

Media businessDX industry

Utilize our existing know-how in media operations to
expand the industry and increase attraction coveragethrough the provision of information
 Articles are written by practicing RPA engineers Can provide consultation for companies considering adoption of RPA▍Market size
The domestic DX market will expand to 6.5 trillion yen in FY2030
Companies will increasingly adopt RPA each year, with demand forhuman resources in the area expected to grow(Billion yen)

Market size of the domestic DX market*

7,000

6,519.5

6,000
5,000
4,000
3,000

2,317.3

2,000
1,000
0

Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025
(Actual(Actual(Forecast) (Forecast) (Forecast)results)
results)

Fiscal 2030
(Forecast)* Source: “Future Outlook of the Digital Transformation Market 2023 <Market Edition>”(Fuji Chimera Research Institute, Inc.)

Copyright© Confidence Inc. All Rights Reserved.

|27

Growth Strategy | Expand Matching Solutions

Press release dated January 19, 2024

Affiliated Protagonist Inc., which works on Web 3.0 × HR Tech, as a subsidiary
Look to expand HR solution services in the Web 3.0 areas that have a high affinity withthe gaming industry
Expand matching solutions

Expand into new business areas
HR TechNext generation
technology

Web 3.0 area

▍Overview of Protagonist Inc.

Conduct business to meet the needs for human resources in
the Web 3.0 area
A recruitment platform for Web 3.0
specialists
Support service for changing careers in
the Web 3.0 area

▍Market size

The Web 3.0 market size will expand to 7.3 trillion yen by 2030
(Billion yen)

Global Web 3.0 market size forecast*
7,237.0

8,000

Approx.

15

4,000

0

times
486.2
2022

2030

* Source: Referred to the reports by Cognitive Market Research▍Intention and synergy of affiliation as a
subsidiary A high affinity with the gaming industry and the Web 3.0
industry
 Cross-connection of the two companies’ client networks
and human resources databases
 Provision of know-how in the recruitment business
Copyright© Confidence Inc. All Rights Reserved.

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28

Appendix.

Merger with Interworks, Inc. (as of August 1, 2023)
 The new company, Interworks Confidence Inc. (securities code: 7374), started operations on August 1, 2023, with prior approval and resolution

on the merger made at the general meeting of shareholders of each company
 The merger generated goodwill of approximately 1.64 billion yen, with amortization of goodwill of approximately 110 million yen (for 8
months) in the current term and approximately 160 million yen in the next term and thereafter.

Since August 1, 2023

New
company(English name: Interworks Confidence Inc.)
Absorbing andsurviving company

Merger ratio
1

:

0.205

Absorbed anddissolving company

Absorption-type merger
Copyright© Confidence Inc. All Rights Reserved.

|30

Growth Strategy │ Future Growth Indicators: Quantitative objective
 In addition to the steady growth achieved by Confidence alone since its listing, the merger has increased the bases that drive revenue
 For all businesses, select segments and aim to become the No. 1 group, by specialization target areas.

To Expand Sales（Target）

20 billion yen

By selecting segments in all business areas
and going deep into the interior, andwe will build up a group that is No. 1 in its category
Organic growthof existing businesses

Accelerate further growththrough M&A

Operatingprofit（Forecast）

Upon listing on the
TSE Mothers

3.5 billion yen
Established inAugust 2014

Actual results

3billion yen

8.0 billion yen
5.2 billion yen
Present* 5-year CAGR (actual) of revenue from FY2019 to FY2023: 26.9%

Operatingprofit1.12billion yen
FY2024

Future3-5 years later

Copyright© Confidence Inc. All Rights Reserved.

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31

[Consolidated] Summary of Earnings Forecast/ Dividend Forecast for FY2024
 The following is a summary of earnings forecast and various indicators of Interworks Confidence Inc. for FY2024 ending March 2024
 Estimated by factoring in the impact of integration-related expenses that will temporarily accrue as a result of the merger and amortization of goodwill, etc.
* As the Company merged with Interworks, Inc. on August 1, 2023,
the full-year earnings forecast includes estimated revenue and profit
figures of former Interworks for 8 months.

▍Full-year earnings forecast for FY2024
FY2022(formerly Confidence)

FY2023(formerly Confidence)

YoY

FY2024(Interworks Confidence)(vs. former
Confidence)

Revenue(million yen)

4,425

5,197

8,000

+53.9%

Gross profit(million yen)

1,528

1,841

3,718

+102.0%

(%)

34.5%

35.4%

46.5%

+11.1 pts

745

933

1,120

+20.0%

16.8%

18.0%

14.0%

-4.0 pts

Gross profit margin
Operating profit
Operating profit
margin(million yen)(%)

Ordinary profit(million yen)

737

927

1,065

+14.8%

Profit(million yen)

530

617

725

+17.3%

Basic earnings per share(yen)

118.19134.80118.58-Dividend per share

(yen)

40.0

48.0

55.0

+14.6%
Copyright© Confidence Inc. All Rights Reserved.

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32

Assumptions Underlying the Preparation of Earnings Forecast▍Target indicators for earnings forecast and dividend forecast
for FY2024▍Assumptions underlying the preparation of earnings forecast
for FY2024

Target indicators

Assumptions underlying the preparation of earnings forecast

Growthindicator

Revenue
growth rate

15% - 20%

• As the merger becomes effective on August 1, 2023, the underlying figures offormer Interworks are the balance of assets and liabilities at the end of July 2023
and the revenue and profit figures for the 8 months from August 2023 to March
2024• Expenses temporarily accruing through the integration and amortization of
goodwill are factored in
Q1
Apr

Profitability
indicator

Shareholder
returnindicator

Operatingprofit margin(excluding
amortization of
goodwill)

Over

15%

May

Q2
Jun

Jul

Aug

Q3
Sep

Oct

Nov

Q4
Dec

Jan

Feb

Mar

12
months8months• Finalize the balance of assets and liabilities succeeded by Confidence• Calculate the total amount of goodwill
Accounting treatment and policy of goodwill

Payout ratio

Over

30%

• The accounting treatment for the calculation of goodwill (including theidentification of intangible assets) will be finalized in Q2 after discussing with
the independent auditor• As for amortization of goodwill, the impact for FY2024 is estimated undercertain assumptions and factored in the earnings forecast

Copyright© Confidence Inc. All Rights Reserved.

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33

Empowering Professionals to Create the Future Together
Inquiries about this material: IR staff, FP&A Division （ir@ciw.jp）
Handling of this material
This material includes forward-looking statements. These are nothing but the statements prepared on the basis of the information available at the time of preparing them. Moreover,such statements are not a guarantee of future results, and contain risks and uncertainties. Please note that actual results may differ significantly from future forecasts due to changes
in the business environment and other factors. Factors that may affect the actual results mentioned above include, but are not limited to, economic conditions in and outside Japanand trends of the industries related to the Company.
In addition, the information contained in this material and related to matters other than the Company has been quoted from publicized information. The Company has made no
verification about the accuracy and appropriateness, etc. of such information, and provides no guarantee about it.