PERSOL HOLDINGS CO., LTD.
Held on Tuesday, July 2, 2024
Script of IR DAY: DAY1 Technology SBU Business Description【Executive Officer Technology SBU Lead Masaki】

Hello, everyone. I am Masaki, in charge of the Technology SBU.

We have five agenda today. The first is market expectations for the Technology SBU,
then the significance and its role in the PERSOL Group. Third is what our business
is, then how we will succeed. Fifth is what we want to achieve.

First, the market expectations. Here are five key points. The second is where ourstrengths or differentiations are. The third is the value of the Technology SBU group.
The fourth is how each business is related in the Technology SBU. Here I will discuss
sub-segments. The fifth is measures to improve profitability.
The first is that we are the 5th largest in the market. We want to outcompete interms of operating margin and operating profit growth rate organicly.
The second is differentiation. We want to leverage the PERSOL Group's
infrastructure to overcome competing engineer dispatching firms with a higher
contracting ratio.
Third is the synergy. We help the Staffing SBU to improve procudtivity throughdeveloping mission-critical operating systems for them. I also want to use thisexpertise for external customers, too.
The fourth is the relationships between the businesses within the Technology SBU.
I believe a new market will be created with productivity improvement as its keyword.
We hope to help customers increase productivity leveraging hardware and software
engineers while ensuring their careers are fulfilling.
Fifth is measures to improve profitability. 2023 and 2024 are time for investment,
and 2025 will be the time to reap the benefits. 2023 and 2024 are time forinvestment, and 2025 will be the time to reap the benefits.
The Group will establish new upstream operations and restructure its businesses toprepare for the Group's profit pillars. We are currently focused on improving
compensation, establishing training and education environments, recruitment, andimproving systems.

In the PERSOL Group, the Career SBU will drive growth until the end of the Midterm Management Plan in FY2025, This is an investment period. From 2026 to 2028
we will start to take fruits. By FY2030, we want to achieve an operating margin of12%.

Today's presentation is focused on what we want to achieve by 2030, which is, firstand foremost, an operating margin of 12% while maintaining a sales CAGR of 10%,and an operating profit CAGR of 20%. We have 10,000 engineers in the area of
non-financial use, but we aim to increase this to 18,000. I value raises andpromotions highly, and in this era of inflation, we will continue to improve thecompensation of our engineers and provide increases that are 1% above the rate of
inflation. To do this, we will improve the added value we provide.

Next: inorganic M&A. We have a three-part policy here.
First, the engineer dispatching market is growing, so we aim to increase our shareof this market through acquisitions. We supply engineers and also provide systems
development, so we hope to collaborate with system integrators. We hope to workwith DX companies, productivity improvement-related companies, and companies
conducting physical experiments.

So, what areas do we intend to compete in?

The Japanese market was previously in a period of deflation and low interest rates.
Now, after COVID-19, we need to do business in a world of inflation and highinterest rates.

I believe everyone is aware that in the Japanese market, an increase in GDP equals
economic growth, but this growth is driven by three factors: an increase in the
population, and increase in the workforce, and an increase in productivity. However,Japan's population is decreasing, and the workforce is aging. 5 million people willreach the age of 66 in 2025. 5 million people reminds me of my hometown, Fukuoka.
The population of Hokkaido is 5 million, and everyone from babies to grandparents
will reach the age of 66. We must grow our economy in these areas. We do this byincreasing productivity.

Japan has the fourth largest GDP, having been overtaken by Germany this fiscal
year. By the end of the year it will be overtaken by India, and next year by the UK.
The population of Germany is about 85 million and Japan is 125 million, so despite
having 50 million fewer people, Germany's GDP exceeded Japan’s. I do not believe
this is due to the weak yen. The factories of BMW, Bosch, Schaeffler and other wellknown German companies, are thoroughly IT-enabled, putting productivity on adifferent level. In Japan, the manufacturing industry’s productivity is very highcompared to the retail and service industries, but compared to famous companies
in the US and Germany, productivity is very low. We believe that there is a large
market for contributions to the DX of manufacturing.

The current engineer staffing market is 2 trillion yen, but a new market related to
improving productivity will be created. In particular, we need the systems
integration, AI, IoT and other markets related to automation and electrification todevelop. In these market, we aim to enhance the well-being of engineers.

We will combine people and technology to enhance engineer well-being in Japan asa new productivity market emerges in 2025.

I believe this is where we stand.

The fourth market expectation is how we intend to succeed. This is a summary of
how we will beat our competitors. We want to create value based on five inputs.
We want to beat our competitors at the sub-segment level. We want to effectively
utilize the synergy of the PERSOL Group. Some of the features of the Technology
SBU include high-level technological capabilities, diverse engineer workstyles, thediverse backgrounds of our management team, and the directors who support me.
I’ve also outlined how we create value. To date, our engineer dispatching company
was a matching business. I hope to take it from a temporary staff and freelancer
matching business to a continuous employment business. I hope to take it from a
temporary staff and freelancer matching business to a continuous employmentbusiness.
By advancing the self-actualization of engineers rather than matching, we aim tocreate a positive cycle that improves staff retention, reduces turnover and increases
recruitment, registration numbers and training capabilities. This will increase our
acceptance, service and solution capabilities, increasing the added value we provide
to customers and their satisfaction. By promoting this ecosystem, we arestrengthening our solutions business, following mid- to long-term strategies andexpanding into new areas. We hope to succeed in three segments. These efforts
will result in maintaining the 10% sales CAGR I mentioned at the beginning. FY2024
is the most challenging year for us, as we set a sales growth target of 15%. If we
can achieve this, we hope to moderate growth slightly in the following years andreap the benefits of a 10% growth rate and 12% operating margin. As I said, weaim to increase the operating margin to 12% and the number of engineers to
18,000. We want to compete with other companies in terms of recruiting ability,
and we will improve compensation and increase wages 1% more the rate of inflationeach year. Doing this, we want to be a company that improves productivity
improvements and facilitates customers’ sales and profits—where engineers canwork most effectively and with a smile.

Now, I want to add some detail to the earlier point about input.

The middle shows the PERSOL Group's customer base. We do business with roughly
51,000 companies. The Staffing SBU does business with 19,000 companies, which
is a very large number. The colored areas are the industries we do business with.
We don't need to deliberately cultivate new clients. Our advantage is being able to
do business without cultivating new clients because we get referrals from other
SBUs, such as clients that were cultivated by Tempstaff, doda or other parts of thePERSOL Group.
Secondly, the personal brand doda is very effective in terms of recruiting. In
particular, we were able to achieve our recruitment goals in FY2023.
We want to grow while leveraging the Group's customer base.

The Technology SBU is characterized by its high-level technical capabilities. A muchhigher percentage of its contracts are in mechanical, electrical, embedded control,and similar fields than other engineer dispatching firms. We want to slightly change
the competitive landscape to outcompete others by increasing the contracting ratio
from 45% now to 70% by 2030 and consequently reducing the dispatching ratio to30%. An example of our technical capabilities is this machine that raced in the Dakar
Rally. Have you seen the rear wheels of Hino Motors' Dakar Rally machine, the Little
Monster, which finished 6th among Japanese competitors in the 2023 Dakar Rally?
Our engineers designed this part and the axle. We also put advertisements on thevehicle.
Another example is SkyDrive. This company known for its flying cars is set to exhibit
at the 2025 World Expo. The company has only been around for five years, but I
have known its CEO Tomohiro Fukuzawa for around four and a half years. Theirpropeller-driven cargo drone participated in Noto Peninsula earthquake relief
activities. We help make drones like this. We have done this through contracted
projects, and our mechanical and electrical embedded control team is committed to
expanding our business by transitioning from dispatching to contracting work
leveraging our high level technical capabilities.

So, what are the benefits of increasing the contracting to dispatching ratio?
In dispatching, sales are in terms of person-hours. In contracting, however, thesource of sales is value. In dispatching, what can be done to increase unit prices
and sales generated per worker is limited. We think about how we can improving
the added value we offer to receive compensation that adequately reflects it.
Turnover is much lower at contracting companies than dispatching companies, andthere is a benefit to improving turnover by increasing contracting. I think it will alsosignificantly increase our recruitment capabilities.

Next — IT, where we have strong technical capabilities. Genesis, our dispatchingbusiness’s core system, was created by the Technology SBU. We spent about 5billion yen to create this core system, engaging 600 engineers. It is the system withthe heaviest traffic in Japan. In other words, we are a 1st tier vendor with 600
engineers and 5 billion yen. We have the ability to develop systems. Going forward,
we want to increase added value by providing contracting solutions rather thanfocusing on the dispatching business.

The third feature is our engineering team’s roots in Nissan Diesel Industries.
We have engineers who developed diesel trucks for the Nissan Group's commercial
vehicles, Volvo's UD trucks, and others.
We have the same technical capabilities as OEM manufacturers, and this is a corestrength for us. These engineers joined the PERSOL Group in 2013. Since then we
have been doing good business with commercial vehicle manufacturers andagricultural and construction equipment manufacturers. Group member PERSOLAVC TECHNOLOGY is composed of engineers from Panasonic's consumer electronics
division. When people are upgrading their consumer electronics, I recommend
Panasonic products, like Viera portable TVs, DIGA recorders, and LUMIX cameras if
you want to record video with the best image stabilization. The products I justmentioned are designed by our engineers. Our engineers were from Panasonic, so
we are known for our advanced technical capabilities and the ability to always dobusiness with customers at a Panasonic level of quality.
Last autumn we established a company with Serverworks, a leading AWS company.
It started operating this April. We want to create a dedicated dispatching company
so that we can produce many cloud engineers.

Characteristically, our business has diverse engineers and a broad customer base,so we can operate with registered dispatch engineers as well as provide dispatching
services. We are proud that we can support system integrator customers.
We also value the registration business because it allows us to supply engineers to
our customers every month, when business with only employees only take on newhires in April and October.
In addition to full-time jobs, we also started offering freelance opportunities thisApril. We also work with business partner affiliates so that when we are short on
staff, we can receive support from them. We have a pool of 100,000 registeredengineers that we bring together for training.
I think our strength is in gathering 50,000 customers and solving their productivity
improvement issues.

Finally, we will introduce our board members. Both Vice President Isoda and I are
from PERSOL Tempstaff.
Mr. Sato, on the far left, is the president of Person AVC Technology. He oversees
security engineers in our cross-business. He came from Sony. The Board Member
at the bottom right, Mr. Kawabata, has been with us since last October. He was aspecialist with Accenture for 28 years. I hope that Mr. Kawabata will firmly lead the
IT business.

Now let's talk about value creation.

We want to create value. We have two missions: improve the productivity of people
and organizations and create a better way for engineers to work.
We aim to be unique and to create a company and services that our competitors’
can’t emulate. Kawabata will lead IT and DX Solutions, and Isoda will lead
Engineering. Within IT and DX solutions, Sato's PERSOL AVCT team I mentioned
earlier aims to increase customer value through IoT.

These are written as No. 1 and No. 2 in terms of their synergy. We supply solution
services and engineers to customers. Regarding them, I think countless customers
are offering solution services. However, customers who are solution service
providers cannot supply engineers. Conversely, engineer dispatching companies can
supply engineers but can't provide solution services. We can do both.
This is what differentiates us from other companies, and we have been very
successful in recruiting new engineers by highlighting this during recruitment.

We have received many business inquiries since April, and we have established IT
consulting in the Kawabata team dealing with DX in the manufacturing and logistics
industries. We have received many business inquiries since April, and we haveestablished IT consulting in the Kawabata team dealing with DX in the
manufacturing and logistics industries. In Japan, 3D CAD is used up to the design
stage, but when it comes to manufacturing technology and production lines, wehave to prepare paper drawings and make corrections with red pens as we go. This
process significantly reduces productivity in the manufacturing industry. We provide
end-to-end services, from initial consultation to implementation support, and fromsystem roll out to maintenance and operation. This includes dispatching services.
We dispatch instructors to fill any gaps, particularly for 3D CAD training. We are
now offering this service as a package to our customers, It has been well received.

We have 35 implementation consultants working in the area I just explained. We
believe that by the end of this fiscal year, this will increase to 80 consultants. In July,
they will be joined by the 4 to 5,000-member system solutions team responsiblefor infrastructure construction. We will create verification and optimization systems,
low-code systems and other products, and work with our business partners to add
value for customers in the manufacturing industry by combining hardware andsoftware, IT and mechanical/electrical embedded control and IoT solutions.

The second point is about enabling diverse working styles for engineers. Examplesof their life plans are listed above. They may start as full-time employees, thenswitch to being freelancers as they become more confident in their skills, and thenseek stability again. The second point is about enabling diverse working styles forengineers. Examples of their life plans are listed above.
They may start as full-time employees, then switch to being freelancers as they
become more confident in their skills, and then seek stability again. Engineers whojoin us in those career stages won't need to switch jobs. This is the kind of working
environment we are aiming to establish. When an engineer first joins the company
they work hard in training, operations and development. As freelancers, we wantthem to take advantage of our freelance services. They can even become project
managers, reskill and return to full-time employment when it suits them. With
recent advancements in AI, for instance, a worker can start out as a data scientist
and eventually become a consultant. Workers can start being dispatched as anengineer and ultimately become a scientist or consultant, and we are strengthening
our services to effectively support this progression.
We have created a place for engineers to work within our company without having
to change jobs.

Since we are in the investment stage, we are fully aware that our profit margin is
low compared to other companies. This why we are investing — to close that gap.

Until 2018, we achieved low growth and high profit margins, with sales growing 2
to 3% and operating margins up to 10%. During the COVID pandemic from 2020
to 2023, including internal transactions, we reached medium growth and medium
profitability. We want to properly invest now and show everyone we are reaping thebenefits of those investments so that in 2028 and 2030, we can achieve high profit
margins while maintaining high growth, and succeed against our competitors. We
are trying to grow convincingly now on the way to first place. Once we are no. 1,
we will drop the CAGR a little and maintain it at 10%. By 2030, the operating margin
will be 12%. We are now creating a detailed plan to realize these goals.

We want to catch up to the leading companies in the industry by conducting indepth research, quickly enter the top three in the industry.

The investment phase is continuing through 2023 and 2024. We plan to reap the
benefits from these investments in and after 2025.

We have merged four companies. When the COVID-19 pandemic started, we
decided that operating separately as 20 to 40 billion yen companies would be
difficult, so we invested in PMI and established a new company in January 2023.
Last April, we also invested in GLOBE-ING which operates in the areas of IT
consultants and strategic consulting as part of our consulting team. This July, we
fully integrated the strategic consulting, IT consulting, systems development
solutions, team dispatch, SES services and PXT engineer dispatching services. We
started operations in January and April of this year. I think our customers are making
great use of AWS in particular. Together with leading AWS provider Serverworks
and its President Ryo Ooishi, we established PERSOL Serverworks. Since we havealways had a good relationship with Microsoft Azure, I think we now have a strong
position working with the two major cloud providers.
I mentioned the System Solutions or SSOL Business will be reorganized in July. We
intend to merge SSOL and security services in an absorption-type split in July.

Today, I want to give a rough outline of our growth strategy up to 2030 in thiscontext. I will outline two basic strategies. The first is a shift to a solutions businessand expansion into new industries and business sectors. For the solutions business,this means changing the tools we have and the quality we offer. In terms of
expanding into new industries and business sectors, it means changing the market.
Changing the tools we have means supplying labor and solving customers' problems.
By changing quality, I mean increasing the number of consultants from 35 to 80,
and changing the quality we offer by supplying talent in areas such as PMO, AI anddigital technologies and working on related solutions. The second basic strategy is
to change the market. In Japan, there are customers whose productivity is still quite
low, particularly in the retail and service sectors. Even in our own company. DX has
not significantly progressed in these areas, and we want to target customers likethis and provide services to them. The PERSOL Group has a great deal of businessin the manufacturing industry. As I mentioned, the engineering team has close
relationships with manufacturers, especially commercial vehicle manufacturers,
agricultural and construction equipment manufacturers, and consumer vehicle
manufacturers, so we would like to offer support in the area of IT.

I have included this page with details on how we will change the market by changing
the tools we use and quality in each sub-segment. I would be happy to answer any
questions you may have if you look at this later in the briefing materials.

Finally, let's talk about KPIs. I've arranged what I just discussed in the form of an
As-is state to illustrate the relevant KPIs.
First for engineers, the KPI is sales per worker, and for dispatched workers it is theunit price charged when converted to the unit price per hour. We acknowledge that,compared to our rival companies, our rates are still a few hundred yen cheaper.
By increasing contracting work to 70% of our work, we hope to be a company withsales per engineer that is the highest in the industry. In terms of the number ofengineers, there are two KPIs. In terms of the absolute number of hires, we are stillbehind our two rivals due to the size difference. We have been outperforming interms of recruitment rates since FY2023, so we will continue to win and continue
recruiting. Although our current turnover rate is now approaching the Japanese
average of 8.7%, we are still behind our two main competitors.
We would like our turnover to be far below our competitors’. This means a higher
retention rate.

I can’t give you detailed figures about the transformation of our business portfolio,
but we aim to increase sales per engineer to 1.3 times its current level. The slightly
lighter blue section is the IT and DX solutions market. This is a growth market thatwill expand significantly. We want to increase sales per engineer 1.3x. This of course
involves the system solutions team for consultants and will be driven by areas
beyond dispatching, but that is our goal. In terms of the number of engineers, weare targeting a 1.6x increase. In our experience, when the hiring rate exceeds 20%,the organization may break down, and engagement may decline. To prevent this,we have made adjustments and carefully developed plans to aim for that 1.6x
increase.

This page is a summary of the figures. We will continue to implement the PDCA
cycle to realize what I have just described and achieve our vision.

Finally in the appendix, I want to present these examples to you.

On the far left is an award from Microsoft for our Azure system solution. We are ofcourse a strong Azure partner, and I mentioned Serverworks and AWS earlier. We
cover the two major cloud providers on the market. I hope you contact us when
you need help with cloud engineering. Regarding the construction DX payment
system in the middle of the page, you may be aware of the Aneha Scandal that
occurred some time ago. From the news at the time you may remember insufficient
rebar in buildings. This picture shows an iPad-like camera taking a picture of aconstruction site where thousands of reinforcing bars must be installed. This is a
product developed by PERSOL AVC Technology. Using this camera and AI, you can
see at a glance if the thousands of reinforcing bars are in place according to thedesign, just by taking a picture. To date, they were counted by the construction
workers. It is a place where accidents are likely to occur, but now it can be done
simply by taking pictures with a camera like this. I wanted to share how we are
involved in these kinds of solutions. Near the far right is a flying car. I am looking
forward to next year's Expo. I heard that people can’t go on test flights anymore,
but I am sure that everyone will be able to see the aircraft fly. I am very proud that
our engineers are playing an active role in SkyDrive's drones, both those that will
carry people and also cargo drones. The background is a quarry in Atsugi, where
had test drove the vehicle before it competed in the Dakar Rally. Thinking about
how our engineers were designing and making these rear wheels and axles filled
me with pride.
I am in the last photo on the right side of the page, and here is Dr. Azuma, anengineer who developed the Lancer Evolution for Mitsubishi Motors. He is now aprofessor at Kurume Institute of Technology. The mayor of Kurume City introduced
us to Partner Mobility One, Japan's first bench-type self-driving vehicle that can seat
two or three people. The Governor of Tokyo and Minister Kono also endorsed it, andwe were asked to exhibit at last year's Japan Mobility Show. We would like toemphasize that we can make this kind of thing ourselves, which distinguishes us
entirely from other engineering companies.
This completes our IR day presentation.
I would like to engage in meaningful dialogue with you all, and I hope that you takean interest in us, reach out, and make an appointment. We appreciate your support.
Thank you for your time.
Thank you.