For Immediate Release
May 13, 2024

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (IFRS)PERSOL HOLDINGS CO., LTD. (the Company) today announced its consolidated financial results
for the fiscal year ended March 31, 2024 and consolidated financial forecasts for the fiscal year
ending March 31, 2025.
(1) Consolidated Operating Highlights
1. Consolidated Financial Results(In millions of yen, unless otherwise stated)
Fiscal year ended March 31,
Change%2023
2024
1,242,611
1,327,123
6.8
42,75452,06521.8
41,24948,92618.6
24,777
31,97429.0
22,761
29,971
31.7
25,16141,303
64.2
9.94
13.22
9.89
13.14
13.6
16.6

Revenue
Operating profit
Profit before tax
Net Profit
Profit attributable to owners of parent
Comprehensive income
Basic earnings per share (yen)Diluted earnings per share (yen)Ratio of profit to equity attributable to theowners of the parent company
Ratio of profit before income taxes to total
assetsRatio of operating profit to revenue
EBITDA
Adjusted EBITDA
Adjusted net profit
Adjusted EPS (yen)

8.6

9.7

3.4
73,06975,27739,54417.22

3.9
81,70072,287
38,83917.03

Reference: (yen)Share of profit of investments accounted for using equity method:

FY2023/ minus 618 million

Impairment charges of investments accounted for using equity method: FY2023/ minus 2,142 million

FY2022/ minus 505 million
FY2022/ -Note:
As of October 1, 2023, the Company conducted a 10-for-1 stock split of shares of common stock. As a result, basic earnings per shareand diluted earnings per share are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal
year.
EBITDA: Operating profit + Depreciation
Adjusted EBITDA: Operating profit + Depreciation (excluding rent and other equivalents from depreciation of right-of-use assets) ±Increase/decrease in accrued paid leave + Share-based payment expenses ± Other revenues and expenses ± Other non-recurring
profit/loss
Adjusted net profit : Profit attributable to Owners of parent ± Adjustment Item （(Excluding the portion attributable to noncontrollinginterests)） ± Tax reconciliation related to certain adjustment items
Adjustment Item : Increase/decrease in accrued paid leave + Share-based payment expenses ± other expenses and revenues ± Nonrecurring loss/profit
Adjusted EPS : Adjusted net profit/(Average number of shares outstanding during the period - Average number of treasury shares during
the period)-1-2. Consolidated Financial Position(In millions of yen, unless otherwise stated)
As of March 31, 2023

As of March 31, 2024

Total assets

488,728

518,730

Total equity

183,529

208,317

Total equity attributable to owners of parent

169,670

192,349

Ratio of equity attributable to owners of theparentEquity attributable to the owners of theparent company per share

34.7%

37.1%

74.57

84.15

3. Consolidated Cash Flows(In millions of yen, unless otherwise stated)
As of March 31, 2023

As of March 31, 2024

Cash flows from operating activities

68,98077,753

Cash flows from investing activities-22,787-19,000

Cash flows from financing activities-41,779-53,803

Cash and cash equivalents at end of period

101,233

108,369(2) Dividend Status(In yen, unless otherwise stated)
Fiscal year ended March 31,
2024

2023

2025 (Forecast)Interim dividends

21.0

43.00

4.50

Year-end dividends

40.0

4.30

4.50

Annual dividends

61.0

-

9.00

14,024

19,870-

Payout ratio (%)

61.6

66.3

-

Dividend on equity ratio (%)

8.4

11.0

-

Total dividend amount (million yen)

Notes:①②③④⑤

No revision of dividend forecast from the latest announcement.
As of October 1, 2023, the Company conducted a 10-for-1 stock split for its common stock.
The year-end dividend for the fiscal year ending March 31, 2024 (forecast) with a record date of March 31, 2024 is based on thenumber of shares after the stock split, considering the effect of the stock split.
The number of total dividend per share for the Fiscal year Ended March 31, 2023 is not shown because a simple comparison is notsuitable due to the stock split. The dividend per share forecast on a pre-split basis is 86 yen per share.
As part of the financial policy in this mid-term management plan, we have set a target dividend payout ratio, one of the indicatorsof shareholder return, at around 50% of adjusted EPS (earnings per share). The expected dividend payout ratio to adjusted EPS for
the fiscal year ending March 31, 2025 is expected to be in the range of 51.0% to 53.6%.
Reference:
Adjusted EPS-based Dividend Payout Ratio
Fiscal year ended March 31, 2023: 35.4%
Fiscal year ended March 31, 2024: 50.5%(3) Consolidated Financial Forecast for the Fiscal Year Ending March 2025
(In millions of yen, unless otherwise stated)
Forecast for the fiscal year ending March 31, 2025
Firs half year
Revenue

696,000

Change%
6.3

Operating profit

24,400-7.5

Profit before tax

24,000-7.6-2-

Full year
1,417,000~1,429,000
52,000~55,000
51,200~54,200

Change
%
6.8
~7.7
-0.1
~5.6
4.6
~10.8

Net Profit

16,000-9.0

Profit attributable to owners of parent

15,200

-9.4

6.66

-

Adjusted EBITDA

35,1000.2

Adjusted net profit

17,900-5.7

Adjusted EPS (yen)

7.84

-

Basic earnings per share (yen)34,300~36,300
32,500~34,500
14.24~15.1273,000~76,000
38,300~40,300
16.79~17.66

7.3
~13.5
8.4
~15.1
1.0
~5.1
-1.4
~3.8
-

Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
New: - (company name)
Excluded: - (company name)
(2)
①
②
③

Changes in accounting policies and accounting estimates
Changes in accounting policies required by IFRS: None
Changes in accounting policies other than ①above: None
Changes in accounting estimates: None(3)

Number of shares issued (common stock)

(1)
(2)
(3)

Fiscal year ended March 31,
2023
2024
2,367,048,610
2,331,998,610

Number of shares issued and outstanding at
the end of the period(including treasury stock)
Number of shares of treasury stock at theend of the period
Average number of shares outstanding
during the period

91,773,090

46,220,639

2,296,552,614

2,280,947,273

Notes:①
The number of treasury stock at the end of the period includes 24,591,386 shares for the fiscal year ended March 31, 2024 and
14,203,730 shares for the fiscal year ended March 31, 2023 held by the "Directors' Compensation BIP Trust Account" and the"Stock Grant ESOP Trust Account" that are included in the above description as treasury stocks.
The quarterly financial results are not subject to quarterly review by certified public accountants or auditing firms.
②
As of October 1, 2023, the Company executed a 10-for-1 stock split of shares of common stock. As a result, (1), (2) and (3) arecalculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

Disclaimer
This quarterly financial results Tanshin is not subject to quarterly review by certified public accountants or auditing
firms.
Explanation on the appropriate use of earnings forecasts and other special notes(Cautionary statement regarding forward-looking statements)
Forward-looking statements in this document, such as forecasts and projections based on plans, contain elements ofuncertainty and are subject to change. Accordingly, they are not intended to be a promise by the Company that they
will be achieved. Actual results may differ materially from our current expectations.
Note Regarding Reference Translation
This document has been translated from the Japanese language original for reference purposes only and may not be
used or disclosed for any other purpose without the Company’s prior written consent. In the event of any conflict or
discrepancy between this translated document and the Japanese language original, the Japanese language original shallprevail in all respects. The Company makes no representations regarding the accuracy or completeness of thistranslation and assumes no responsibility for any losses or damages arising from the use of this translation.
(Application of IFRS Accounting Standards (IFRS))
Effective from the 1st quarter of the fiscal year ending March 31, 2024, the Group has adopted IFRS AccountingStandards (hereinafter referred to as "IFRS"). Financial figures for the previous consolidated fiscal year are alsopresented in accordance with IFRS.
For the changes between IFRS and Japanese GAAP in relation to financial figures, please refer to "(First-time Adoption)"on page 26.

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1. Result of Operations(1) Financial Position
This year, PERSOL GROUP (the Group) celebrated its 50th anniversary since our founding.
At present, the Group provides a wide range of human resources (HR) related services
including temporary staffing and placement service in Japan. In addition, in the Asia-Pacific(APAC) region, the Group operates HR related services and facility management business.
During the consolidated fiscal year under review, Japanese economic conditions weremoderate, with an increase in capital expenditure by companies and recovery of consumer
spending reflecting wage hikes seen amid an improvement in the employment and income
environment. A temporary halt was also seen , partly reflecting downward factors including
high prices and a slowdown in overseas economies. The future remains uncertain, mainlyreflecting the impacts of global monetary restraint and rising geopolitical risks.
Despite such circumstances, the ratio of job offers to job seekers (seasonally adjusted)* inJapan was 1.28 times in March 2024, showing that demand for human resources remained
strong. Supply and demand began to show differences in certain industries, depending on
the company size. In the APAC region, generally, the economy is on a recovery trend, anddemand for human resources is strong., albeit at levels that differ among countries andregions.
In this business environment, during the consolidated fiscal year under review, the Groupaggressively invested mainly in the Career SBU, BPO SBU, and Technology SBU, which were
designated as the pillars of profit growth, having started at the beginning of the fiscal yearin accordance with the policy under the Mid-term Plan 2026, of which the fiscal year underreview was the first year.
Reflecting strong corporate demand, revenue increased in all SBUs excluding BPO SBU,
where COVID-19 related operations were dropped as initially anticipated. Revenue of theoverall Group was 1,327,123 million yen (up 6.8% year on year). On the profit front, adjusted
EDITDA, which the Company began to use as a key profit indicator in the fiscal year underreview, increased in all SBUs excluding BPO SBU. However, adjusted EBITDA of the overall
Group decreased to 72,287 million yen (down 4.0% year on year) due to the drop of COVID19- related operations in BPO SBU. Operating profit increased in all SBUs except BPO SBU,
and the overall Group's operating profit increased to 52,065 million yen (up 21.8% year onyear).
Profit before tax amounted 48,926 million yen (up 18.6% year on year), and profit
attributable to owners of parent amounted to 29,971 million yen (up 31.7% year on year).
(Exchange Rate)
Average exchange rate during the period:(USD) FY2022: 135.5 yen, FY2023: 144.6 yen(AUD) FY2022: 92.7 yen, FY2023: 95.1 yen*Active job openings-to-applicants ratio (seasonally adjusted): Announced by the Ministry of Health, Labour and Welfare

a. Staffing SBU
In this segment, the Group operates temporary staffing business, including mainly clericaland administrative staff dispatching and wide range of staffing service.

-4-

Revenue for the fiscal year ended March 31, 2024 was 575,798 million yen (up 5.7% year
on year), adjusted EBITDA was 30,632 million yen (up 14.6% year on year), and operating
profit was 27,187 million yen (up 22.5% year on year)
The increases in revenue and profits are attributed mainly to the number of active temporary
staff and the average billing rate. Operating profit increased by 0.6 points due to control ofadvertising expenses and outsourcing costs, which was made in line with progress in sales.
b. BPO SBUThis segment is a new segment consisting mainly of the business process outsourcing (BPO)
business, which belonged to Staffing SBU until the previous fiscal year.
Revenue for the fiscal year ended March 31, 2024 was 110,795 million yen (down 5.4% year
on year), adjusted EBITDA was 8,907 million yen (down 50.0% year on year), and operating
profit was 6,896 million yen (down 54.8% year on year)
Revenue, adjusted EBITDA, and operating profit all decreased because operations related to
COVID-19 settled down as initially expected. (The negative impact associated with COVID19 on profits was approx. 6.1 billion yen (gross profit from COVID-19 related operations:approx. 9.9 billion yen in the previous consolidated fiscal year, approx. 3.7 billion yen in the
consolidated fiscal year under review).)c. Technology SBU
This segment had been Professional Outsourcing SBU until the previous fiscal year. Somebusinesses were transferred to BPO SBU. In this segment, the Group operates manufacturing
and development outsourcing business in IT & DX solutions ,engineering areas and temporary
staffing business specialized in engineers dispatching.
Revenue for the fiscal year ended March 31, 2024 was 102,380 million yen (up 12.5% year
on year), adjusted EBITDA was 6,930 million yen (up 9.3% year on year), and operating
profit was 5,695 million yen (up 20.0% year on year).
Revenue increased because the engineering outsourcing business area saw growth in demand,
mainly for development in the manufacturing industry and also steady growth was seen in
the IT area. Adjusted EBITDA and operating income decreased until the third quarter due toan increase in the number of inactive engineers resulting from aggressive hiring. However,
due to the lack of branding investments, which was seen in the last 4th quarter and the effectof increased billing rates, we saw an year on year increase in profits for the full year.
d. Career SBU
This segment mainly operates placement business, supporting corporate clients' mid-career
hiring activities, and job recruitment media business.
Revenue for the fiscal year ended March 31, 2024 was 128,284 million yen (up 22.8% year
on year), adjusted EBITDA was 25,001 million yen (up 24.1% year on year), and operating
profit was 19,924 million yen (up 18.3% year on year).
Revenue increased significantly although some uncertainty in business confidence began toemerge in the placement business and job recruitment media business market. In addition,
the special demand for hiring following the subsiding of COVID-19 began to show a sign ofcoming to an end. Adjusted EBITDA and operating profit increased despite increasing SG&A
expenses due to marketing investments, strengthening recruiting, and raising base salarylevels.

-5-

e. Asia Pacific SBU
In this segment, the Group operates temporary staffing business and placement business in
Asia and staffing business and facility management business in Australia (those businesses
are operated under PERSOLKELLY brand in Asia and under Programmed brand in Australia.)
Revenue for the fiscal year ended March 31, 2024 was 412,770 million yen (up 6.8% year
on year), adjusted EBITDA was 9,832 million yen (up 28.4% year on year), and operating
profit was 4,841 million yen (4,281 million yean of operating loss in the previous fiscal year).
Revenue increased due to progress in the recovery from the impact of the spread of COVID19 infection, with steady growth in sales from the facility management business in particular.
An impairment loss of approximately 8.9 billion yen was recorded in the previous fiscal year.
In the current fiscal year, an impairment loss of approximately 2.2 billion yen.
2. Business Outlook and Management Policy
I.

Changes in the Market Environment and Its Overall Picture

Reflecting the power shift of individuals, including the employment mobility and diversification ofwork styles and values about working, the time is coming when individuals envision their careers
on their own, understand that not only work but also their life constitute a part of their career,
and then seek “Workplace Well-being,” or happiness felt by them through their own work. In
addition, the evolution of management through collaborative creation by people and technologies
is demanded at present due to rapid technological evolution, including the shift to remote work,
automated operations and labor saving, and data-based analysis and optimization.
The Company aims to be a company creating Workplace Well-being, which expands the happinessof individuals and society by broadening the range of options available for each individual andthe freedom of working through the provision of diverse work styles and learning opportunities
under the Group Vision, “Work, and Smile.” Further, to respond to these social changes anddiversifying individual needs, the Company has set the direction of its management, in which itaims to evolve into a technology-driven HR service company, which achieves discontinuous
growth with products and digitalization while attaching importance to the intervention value of
people.
Taking advantage of various businesses and services related to working and diverse humancapital, the Company will work to create value for the future, aiming to “create better work
opportunities for one million people by 2030 by expanding possibilities of people.”
II. Goal of Value Creation
The Company has set “creating better work opportunities for one million people by 2030 byexpanding possibilities of people” as the goal of its value creation. The Company will provide
diverse work styles and offer learning opportunities, aiming to create better work opportunities
for at least 500,000 people under the Group Mid-term Management Plan 2026 (FY2023 to
FY2025) and for at least one million people by 2030.
III. Materiality Initiatives
Under the Group Mid-term Management Plan 2026 toward 2030, the Company has identified thefollowing eight issues of materiality, which are categorized into solving social issues throughbusiness activities and foundation for achieving sustainable growth. The Company will takeinitiatives to address each.
-6-<Solving social issues through business activities>i.

Creating work opportunities: Expanding the potential of one million workers by 2030 bycreating better employment opportunities, using our strengths in matching people withorganizations, attracting customers and designing operationsii.

Providing diverse work styles: Proposing and providing flexible work styles andemployment options, helping people realize work styles that cater to their individual needs

iii.

Providing learning opportunities: Broadening the range of options for workers by providing
learning opportunities that will lead to employment, reskilling, and upskilling, thus
maximizing career possibilities of individuals

iv.

Improving productivity at companies: Contributing to the streamlining of corporate
activities and to solutions to the labor shortage by providing services which help improve
productivity<Foundation for achieving sustainable growth>v.

Active roles for diverse personnel: Achieving the Group Vision by developing a corporate
culture of, and building an environment for, taking advantage of diversityvi.

Strengthening data governance: Clearly stating and further strengthening the Company's
common approach and management and protection frameworks for utilization of personaldata, thus improving the user environment and securing trustvii.

Respect for human rights: Promoting initiatives that conform to international norms as a
responsible company, thereby reducing human rights risks and earning the trust of all
stakeholders including employees

viii.

Responding to climate change: Working to achieve carbon neutrality and helping realize adecarbonized society through environment-related (GX: Green Transformation) staffing
services and other initiatives

IV. Actions for enabling management with an awareness of capital cost and share price
Under the PERSOL Group Mid-term Management Plan 2026, the Company divided thefinancial strategy into three components — major indicators for the financial strategy, cash
allocation and shareholder return — and set targets for each so as to enhance its corporate
value.
< Key Financial Strategy Indicators >Growth Potential

Annual growth rate of adjusted EBITDA

Efficiency

ROIC

15% or higher

ROE

20% or above

Soundness

Above 10%Net Debt/Equity

Up to 1.0

Net Debt/EBITDA

Up to 2.0

The Board of Directors has been monitoring the cost of capital and capital efficiency. We recognize
the cost of capital of approx. 8% and the P/B ratio is consistently in excess of 1x. In the current
consolidated fiscal year, ROIC was 15.1%, far exceeding the cost of capital of approximately 8%.
We are working to reduce the cost of capital and to increase “ROIC - Cost of Capital”(ROIC spread)over the medium to long term. We have already introduced the improvement of capital efficiency
into our executive compensation system.
-7-

<Cash Allocation>
The cash allocation is expected to be revised downward in line with the downward revision of thebusiness forecast announced in February 2024 due to the recent rapid changes in the businessenvironment, although pre-tax Adjusted EBITDA was set at 200 billion yen in mid-term
management plan through the fiscal year ending March 2026.
<shareholders return>
We are to give emphasis to shareholders return. Current mid-term plan determines the approx..
50% of payout ratio (adjusted EPS base) as a target through the period.

Financial Forecasts of the Fiscal Year Ending March 31, 2025
The uncertain international situation attributed to overseas geopolitical risks, ongoing price hikes,
and other events need to be monitored closely. Meanwhile, although the human resources market
continues to grow due to demand for human resources reflecting the labor shortages faced bycompanies, there are also glimpses of uncertainties, partly due to the wait-and-see stancereflecting wage hikes on the job seekers' side and partly because of the careful selection of humanresources seen among some employers.
Reflecting this environment, financial forecasts for the fiscal year ending March 31, 2025 are as
follows.
(In millions of yen, unless otherwise stated)
Forecast for the fiscal year ending March 31, 2025
First halfyear
696,000

Change%
6.3

Operating profit

24,400-7.5

Profit before tax

24,000-7.6

Net Profit

16,000-9.0

Profit attributable to owners of parent

15,200

-9.4

6.66

-

Adjusted EBITDA

35,1000.2

Adjusted net profit

17,900-5.7

Adjusted EPS (yen)

7.84

-

Revenue

Basic earnings per share (yen)

#

#

#

Full year
1,417,000~1,429,000
52,000~55,000
51,200~54,200
34,300~36,300
32,500~34,500
14.24~15.1273,000~76,000
38,300~40,300
16.79~17.66

Change
%
6.8
~7.7
-0.1
~5.6
4.6
~10.8
7.3
~13.5
8.4
~15.1
1.0
~5.1
-1.4
~3.8
-

#

(2) Financial Position
1. Consolidated Statement of financial position
Total assets at the end of the consolidated fiscal year under review was 518,730 million yen,
an increase of 30,001 million yen from the end of the previous consolidated fiscal year.
Current assets increased by 11,244 million yen, to 312,690 million yen. This mainly reflects-8-increases in cash and deposits of 7,136 million yen and in trade and other receivables of
6,155 million yen. Non-current assets increased by 18,757 million yen, to 206,040 million
yen. This is mainly due to increases in right-of-use assets of 7,804 million yen and in otherfinancial assets of 5,729 million yen.
The total amount of liabilities was 310,412 million yen at the end of the fiscal year underreview, up 5,213 million yen from the end of the previous consolidated fiscal year. Current
liabilities increased by 7,863 million yen, to 257,416 million yen. This chiefly reflects
increases in other current liabilities of 14,091 million yen, trade and other payables of 1,582
million yen and in lease liabilities of 1,004 million yen, more than offsetting a decrease in
Corporate bonds and borrowings of 7,030 million yen, and income tax payable of 1,701
million yen. Non-current liabilities decreased by 2,650 million yen, to 52,996 million yen.
This is attributed mainly to a decrease in bonds and borrowings of 10,117 million yen,partially offset by an increase in lease liabilities of 7,021 million yen.
The total amount of assets was 208,317 million yen at the end of the fiscal year under review,up 24,788 million yen from the end of the previous consolidated fiscal year. This was mainly
due to an increase of 11,053 million yen in retained earnings, which resulted primarily fromthe recording of 29,971 million yen in profit attributable to owners of parent and the payment
of dividends of 18,927 million yen, and a decrease of 9,874 million yen in treasury sharesthat resulted from cancellation and disposal of treasury shares.
As financial indicators based on the financial position described above, the current ratio
increased from 120.8% to 121.5％, and the equity attributable to owners of the parent ratio
increased from 34.7 ％ to 37.1 ％ , respectively, compared to the end of the previous
consolidated fiscal year.
As of March 31,2023

As of March 31,
2024

Return on asset (ROA)

4.8%

5.9%

Return on equity (ROE)

13.6%

16.6%

Ratio of operating profit to revenue

3.4％

3.9％

Ratio of adjusted EBITDA to revenue

6.1％

5.4％

Current ratio

120.8％

121.5％

Fixed ratio*

110.4％

107.1％

Fixed long-term precision

83.1%

84.0%

Equity attributable to owners of the parent ratio

34.7％

37.1％

ROIC

12.7%

15.1%

Debt (excluding lease)/equity ratio

0.30

0.18

Net cash/EBITDA ratio

0.68

0.91

488,728

518,730

169,670

192,349

101,233

108,369

Invested capital (million yen)

233,632

238,642EBITDA (million yen)

73,06981,700Adjusted EBITDA (million yen)

75,27772,287

Total assets (million yen)
Equity attributable to owners of the parent(million yen)
Cash and cash equivalents at end of period(million yen)

Note:
Return on assets (ROA) is calculated using the following formula.
𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑡𝑡𝑟𝑖𝑏𝑢𝑡𝑎𝑏𝑙𝑒 𝑡𝑜 𝑜𝑤𝑛𝑒𝑟𝑠 𝑜𝑓 𝑝𝑎𝑟𝑒𝑛𝑡(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 𝑎𝑡 𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑜𝑓 𝑝𝑒𝑟𝑖𝑜𝑑＋𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 𝑎𝑡 𝑒𝑛𝑑 𝑜𝑓 𝑝𝑒𝑟𝑖𝑜𝑑) ÷ ２

-9-

× 100

2. Consolidated Cash Flows
Cash and cash equivalents (hereinafter “capital”) as of March 31, 2024 was 108,369 million
yen, up 7,136 million yen from the end of the previous consolidated fiscal year. Presented
below are an overview of cash flows for the fiscal year ended March 31, 2024 and main
factors behind them.
(Cash flow from operating activities)
Capital generated by operating activities increased by 8,773 million yen from the previous
consolidated fiscal year, to 77,753 million yen. Major factors included income taxes paid of
21,523 million yen, offset by profit before income taxes of 48,926 million yen anddepreciation and amortization of 29,634 million yen.
(Cash flow from investing activities)
Capital used as a result of investing activities decreased by 3,787 million yen from theprevious consolidated fiscal year, to 19,000 million yen. This was mainly due to spending of
12,207 million yen on the purchase of intangible assets and 3,279 million yen spent onpurchase of property, plant, and equipment.
(Cash flow from financing activities)
Capital used as a result of financing activities increased by 12,023 million yen from theprevious consolidated fiscal year, to 53,803 million yen. Proceeds from short-term borrowings
totaled 166,839 million yen, while repayment of short-term borrowings totaled 174,713
million yen, cash dividends paid totaled 18,921 million yen, and repayment of leaseobligations totaled 16,876 million yen.

- 10 -

Consolidated Financial Statements(1) Consolidated Balance Sheet(In millions of yen)
Date ofTransition(April 1, 2022)

As ofMarch 31,
2023

As of
March 31,2024

AssetsCurrent assets
Cash and cash equivalents

95,933

101,233

108,369

Trade and other receivables

158,857

162,853

169,008

Contract assets

19,07723,53324,426

Other financial assets

94

78

113

Other current assets

8,032

13,748

10,771

Total current assets

281,995

301,445

312,690

Non-current assets
Trade and other receivables
Contract assets

320

309

320

4,230

3,937

5,020

Property, plant and equipment

9,989

9,229

9,575

Right-of-use assets

28,39928,16835,973

Goodwill

63,941

58,46559,019Intangible assets

35,76235,25039,655Investments accounted for using equity

2,771

4,729

2,287

Other financial assets

22,17523,46429,193

Deferred tax assets

18,46023,41024,561

methodOther non-current assets

204

317

433

Total non-current assets

186,255

187,283

206,040468,251

488,728

518,730

Total assets- 11 -

(Consolidated Balance Sheet)(In millions of yen)
Date ofTransition(April 1, 2022)

As ofMarch 31,
2023

As of
March 31,2023

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

87,103

93,68895,270Bonds and borrowings

14,96821,17414,144

Lease liabilities

13,63014,00515,010

836

989

1,141

10,745

10,535

8,834

787

1,588

1,019

4,951

6,596

6,931

Other current liabilities

92,854

100,972

115,063

Total current liabilities

225,877

249,552

257,416

Bonds and borrowings

40,00030,11720,000

Lease liabilities

12,622

12,813

19,835

Other financial liabilities
Income taxes payable
Provisions
Contract liabilities

Non-current liabilities

Other financial liabilities

737

809

976

Provisions

4,492

4,660

5,084

Deferred tax liabilities

3,919

4,394

4,343

Other non-current liabilities

3,126

2,850

2,756

Total non-current liabilities

64,89955,64752,996

290,777

305,199

310,412

17,47917,47917,479Total liabilities
EquityShare capital
Capital surplus

12,11012,272

4,751

Retained earnings

141,880

154,926

165,979

Treasury shares-10,351-19,459-9,584

Other components of equity

4,290

4,452

13,724

Total equity attributable to owners of parent

165,409

169,670

192,349

Non-controlling interests

12,064

13,85915,968

Total equity

177,474

183,529

208,317468,251

488,728

518,730

Total liabilities and equity- 12 -

(2) Consolidated Income Statements and Comprehensive Income Statement(Consolidated Income Statement)(In millions of yen)
Fiscal year ended March 31,
2023

2024

Revenue

1,242,611

1,327,123

Cost of sales-960,751-1,025,962

Gross profit

281,859

301,161

Selling, general and administrative expenses-225,479-247,395

Other income

262

1,578

Other expenses-13,888-3,278Operating profit

42,75452,065

Finance income

570

918

-1,569-1,296

-505

-618

－

-2,142

Profit before tax

41,24948,926

Income tax expense-16,471-16,952

Profit24,777

31,974

22,761

29,971

Finance costs
Share of profit (loss) of investments accounted
for using equity method
Impairment charges of investments accounted
for using equity method

Profit attributable to
Owners of parent
Non-controlling interests

2,015

2,002

24,777

31,974

Basic earnings per share

9.94

13.22

Diluted earnings per share

9.89

13.14

ProfitEarnings per share- 13 -

(Consolidated Comprehensive Income Statement)(In millions of yen)
Fiscal year ended March 31,
2023
Profit2024
24,777

31,974

174

1,725

31

-115

205

1,609

3

－

-26

7,401

201

318

179

7,719

Other comprehensive income
Items that will not be reclassified to profit or
loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Total of items that will not be reclassified to
profit or loss
Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that may be reclassified to profit
or loss
Other comprehensive income, net of tax
Comprehensive income

384

9,328

25,16141,303

23,11639,252Comprehensive income attributable to
Owners of parent
Non-controlling interests

2,044

2,050

Comprehensive income

25,16141,303- 14 -

(3) Consolidated Statement of Changes in Equity
For the Fiscal Year Ended March 31, 2023
(In millions of yen)

Balance at beginning of period
ProfitOther comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Share-based payment transactions
Increase (decrease) by business combination
Changes in ownership interestin subsidiaries
Loss of control of subsidiaries
Transfer from other components of equity toretained earnings
Other
Total transactions with owners
Balance at end of period

Balance at beginning of period
ProfitOther comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Share-based payment transactions
Increase (decrease) by business combination
Changes in ownership interestin subsidiaries
Loss of control of subsidiaries
Transfer from other components of equity toretained earnings
Other
Total transactions with owners
Balance at end of period

Equity attributable to owners of parent
Retained
Treasury
earnings
sharesShare capital

Capital surplus

17,479
－
－
－
－
－
－
－
－
－
－

12,110
－
－
－
－
-828
－
－
1,081
－
-91

141,880
22,761－
22,761－－－-9,909－－－-10,351－－－-9,999
891
－
－
－
－
－

－
－
150
150
－
－
－
－
－
－
－

-3
－
3
3
－
－
－
－
－
－
－

－
－

－
－

－
193

－
－

－
－

－
－

－
－
17,479－161
12,272－-9,715
154,926－-9,108-19,459

－
－
150

－
－
－

Equity attributable to owners of parent
Other components of equity
Financial
Remeasureme
Total
assetsnts of definedmeasured at
benefit plans
fair value
through othercomprehensiv
e income
4,309
-16
4,290
－
－
－
170
31
355
170
31
355
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

Other components of equity
Exchange
Cash flow
differences onhedgestranslation offoreign
operations

Noncontrollinginterests

Total

Total

165,40922,761
355
23,116-9,99963－-9,9091,081－-91

12,064
2,015
29
2,044
－
－
－
-248
－
-10
0

177,474
24,777384
25,161-9,99963－-10,158
1,081
-10
-90

－
-193

－
－

－
-193

－
－

8
－

8
－

－
-193
4,287

－
－
14

－
-193
4,452

－
-18,855
169,670－-250
13,859－-19,106
183,529- 15 -

For the Fiscal Year Ended March 31, 2024
(In millions of yen)
Equity attributable to owners of parent
Share capital

Balance at beginning of period

Capital surplus

Retainedearnings

TreasurysharesOther components of equity
Exchangedifferences ontranslation offoreign
operations

Cash flow
hedges17,47912,272

154,926-19,459

150－

Profit－－29,971－－－Other comprehensive income

－

－

－

－

7,671

－

－

－

29,971

－

7,671

－

Purchase of treasury shares

－

－

－

-0

－

－

Disposal of treasury shares－-1,915

－

2,346

－

－

Cancellation of treasury shares－-7,528

－

7,528

－

－

Dividends－－-18,927－－－

Share-based payment transactions

－

2,031

－

－

－

－

Increase (decrease) by business combination

－

－

－

－

－

－

Changes in ownership interestin subsidiaries
Loss of control of subsidiaries

－

-107

－

－

－

－

－

－

－

－

－

－

Transfer from other components of equity toretained earnings
Other

－

－

9

－

－

－

Comprehensive income

Total transactions with owners
Balance at end of period

－

-0

－

－

－

－

－

-7,520-18,918

9,874

－

－

17,4794,751

165,979-9,5847,821－

Equity attributable to owners of parent
Other components of equity

Noncontrollinginterests

Total

Financialassetsmeasured atfair value
through othercomprehensiv
e income
4,287

Remeasureme
nts of defined
benefit plans

14

4,452

169,670

13,859183,529－－－

29,971

2,002

31,974

1,724

-115

9,280

9,280

47

9,328

1,724

-115

9,280

39,2522,050

41,303Purchase of treasury shares

－

－

－

-0

－

-0

Disposal of treasury shares

－

－

－

430

－

430

Cancellation of treasury shares

－

－

－

－

－

－

Dividends－－－-18,927-242-19,169

Share-based payment transactions

－

－

－

2,031

－

2,031

Increase (decrease) by business combination

－

－

－

－

－

－

Changes in ownership interestin subsidiaries
Loss of control of subsidiaries

－

－

－

-107

311

204

－

－

－

－

-10

-10

Transfer from other components of equity toretained earnings
Other

-9

－

-9

－

－

－

Balance at beginning of period
ProfitOther comprehensive income
Comprehensive income

Total transactions with owners
Balance at end of period

Total

Total

－

－

－

-0

－

-0

-9

－

-9

-16,57358-16,514

6,002

-100

13,724

192,349

15,968208,317- 16 -

(4) Consolidated Statements of Cash Flows(In millions of yen)
Fiscal year
ended March 31, 2023

Fiscal year
ended March 31, 2024

Cash flows from operating activities
Profit before tax

41,24948,926

Depreciation and amortization

30,31529,634

Impairment losses

12,975

2,501

－

2,142

Impairment charges of investments accounted forusing equity method
Decrease (increase) in trade and other receivables-3,164322

Increase (decrease) in trade and other payables

6,251-2,058Decrease (increase) in contract assets-4,584

218

100

-101

Increase (decrease) in accrued consumption taxes

1,397

5,847

Increase (Decrease) in accrued bonus

1,799

328

Increase (Decrease) in accrued paid vacation

4,311

3,457

Decrease (increase) in prepaid expenses

Other

3,954

8,375

Subtotal

94,606

99,594

Interest and dividends received

353

594

Interest paid

-716

-911

Income taxes refund (paid)-25,262-21,523

Net cash provided by (used in) operating activities

68,98077,753

Cash flows from investing activities
Purchase of property, plant and equipment-3,257-3,279Purchase of intangible assets-9,440-12,207

Purchase of shares of subsidiaries and associates-1,301－

Purchase of investments-2,867-792-3,321-646-2,486－

Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments for acquisition of businesses
Other
Net cash provided by (used in) investing activities-113-2,073-22,787-19,000

Cash flows from financing activities
Proceeds from short-term borrowings

104,269

166,839

Repayments of short-term borrowings-94,173-174,713

Repayments of long-term borrowings-15,515-190

Repayments of lease liabilities-16,124-16,876－-10,000

Redemption of bonds
Purchase of treasury shares-10,000-0

Dividends paid

-9,907-18,921

Other

-328

60

-41,779-53,803

886

2,186

5,299

7,136

Cash and cash equivalents at beginning of period

95,933

101,233

Cash and cash equivalents

101,233

108,369

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents- 17 -

(5) Notes to the Consolidated Financial Statements
Notes on Going Concern Assumption
Not applicable.

- 18 -

Segment Information(1) Overview of reportable segments
The reportable segments are constituent parts of the Group for each of which separate financial
information is available. The Board regularly reviews operations in each reportable segment to evaluate
performance and determine the distribution of management resources.
The Group changed its management structure on April 1, 2023. Aiming to enhance its ability toformulate and pursue strategies, clarify responsibilities, make agile management decisions in responseto rapidly changing business environments, and achieve further growth. To this end, the Group has fivereportable segments: Staffing, BPO, Technology, Career and Asia Pacific.
The segment information for the fiscal year ended March 31, 2023 is prepared based on the newreportable segments.
(2) Information of reportable segments
Profit in reportable segments is adjusted EBITDA (operating profit + depreciation (excluding rent andother equivalents from depreciation of right-of-use assets) ± increase/decrease in accrued paid leave +share-based payment expenses ± other revenues and expenses ±non-recuring profit/loss).
Intersegment revenues are based on prevailing market prices.

- 19 -

For the Fiscal Year Ended March 31, 2023
(In Millions of yen)
Reportable Segment
Staffing

Technology

BPO

Career

Other

Asia
Pacific

Total

*1

Total

Adjustme Consolida
nts*2
ted

Revenue
Revenue fromexternalcustomers
Intersegment
revenue
Total
Segment profit(loss)

538,525

109,754

84,083102,210

386,4081,220,982

21,622

1,242,604

6

1,242,611

6,214

7,331

6,904

2,256

2

22,70910,59133,301-33,301－

544,740

117,085

90,987

104,467

386,4101,243,692

32,213

1,275,906-33,295

1,242,611

26,727

17,827

6,343

20,142

7,659

78,700-1,46077,239-1,96275,277

Depreciation (excluding rent and other equivalents from depreciation of right-of-use assets)

14,056

Increase/decrease in accrued paid leave

4,452

Share-based payment expenses

1,080
262

Other income

13,888Other expenses

692

Other non-recurring profit/loss

42,754

Operating profit
Share of profit (loss) of investments accounted for using equity method-505

Impairment charges of investments accounted for using equity method－

Finance income

570

Finance costs

1,569

Profit before tax

41,249165,792

55,51553,88963,395

143,555

482,146

22,243504,390-15,661

488,728

Depreciation andamortization

4,188

2,539

1,538

2,925

5,988

17,1792,554

19,734

10,58130,315

Impairment loss

－

243

－

131

8,929

9,304

3,768

13,072△96

12,975Investments
accounted forusing the equity
methodCapitalexpenditure

456

－

－

255

684

1,396

65

1,462

3,267

4,729

2,039

1,346

380

4,742

1,023

9,531

3,408

12,940364

13,304

Segment assets
Other- 20 -

For the Fiscal Year Ended March 31, 2024
(In Millions of yen)
Reportable Segment
Staffing

Technology

BPO

Career

Other

Asia
Pacific

Total

*1

Total

Adjustme Consolida
nts*2
ted

Revenue
Revenue fromexternalcustomers
Intersegment
revenue
Total
Segment profit(loss)

570,221103,959

92,014

126,148412,770

1,305,114

22,002

1,327,116

6

1,327,123

5,577

6,836

10,365

2,136－

24,915

12,64937,565-37,565－

575,798

110,795

102,380

128,284

412,770

1,330,029

34,651

1,364,681-37,558

1,327,123

30,632

8,907

6,930

25,001

9,832

81,304-1,666

79,638-7,35072,287

Depreciation (excluding rent and other equivalents from depreciation of right-of-use assets)

12,554

Increase/decrease in accrued paid leave

3,758

Share-based payment expenses

2,209

Other income

1,578

Other expenses

3,278

Other non-recurring profit/loss－
52,065

Operating profit
Share of profit (loss) of investments accounted for using equity method-618

Impairment charges of investments accounted for using equity method-2,142
918

Finance income
Finance costs-1,296

Profit before tax

48,926
190,098

61,53065,567

74,164

151,995

543,356

23,313566,669-47,939518,730

Depreciation andamortization

3,873

2,238

1,517

3,412

6,113

17,155

2,223

19,378

10,25529,634

Impairment loss

－

－

－

279

2,279

2,559

－

2,559

-58

2,501

Investments
accounted forusing the equity
methodCapitalexpenditure

537

－

－

353

488

1,379

58

1,437

849

2,287

3,108

1,113

330

5,839

1,532

11,924

3,328

15,252986

16,239Segment assets
Other(Notes)①
Other is a business segment that includes operations that are not included in reportable segments, including operations related tothe entire Group, education and training, operations related to persons with disabilities, operations related to facility management,
the provision of digital solution services for hiring talents and managing human resources, and the creation of new businesses
through incubation programs.
②
Right-of-use assets are not included in Capital expenditures.
③
Adjustments are as follows:(Segment profit (loss))(In millions of yen)
Fiscal year
ended March 31, 2023

Fiscal year
ended March 31, 2024

Elimination of inter-segment transactions-22,379-56,933

Corporate revenue*1

33,76364,813

Corporate expenses*2-13,346-15,231-1,962-7,350Total*1 Corporate revenue is mostly business management fees and dividend income from Group companies.
*2 Corporate expenses are mostly expenses related to Group management at the Company- 21 -

(Segment assets)

Elimination of inter-segment transactions

Fiscal year
ended March 31, 2023
-143,352(In millions of yen)
Fiscal year
ended March 31, 2024
-201,142

127,691

153,203-15,661-47,939

Corporate assets*
Total*Corporate assets consist mainly of the Company's cash and deposits, investment securities, loans
receivable, and assets related to administrative operations.

- 22 -

(Consolidated Income Statement)(1) Other expenses
Major items of other expenses are as follows
Fiscal year ended March 31, 2023
<Impairment loss>
In calculating impairment losses, the Group groups its assets based on the smallest unit of an asset groupthat is identified as generating independent cash inflows.
The breakdown of impairment losses by asset type is as follows.

Item
Tangible fixed assets(In millions of yen)
Fiscal year
ended March 31, 2023
75
40

Right-of-use assets

9,665

Goodwill
Intangible assets

3,012

Software

181

Other
Other non-current assets

-

Total

12,975The impairment loss on goodwill was mainly due to the fact that the Property Services business ofProgrammed Maintenance Services Limited ("Programmed"), a consolidated subsidiary of the Company inAustralia, was no longer expected to generate the expected revenue, The book value was reduced to therecoverable amount, and an impairment loss of 8,929 million yen was recorded. The recoverable amount
was measured by value in use, which is calculated by discounting future cash flows to present value using
a pre-tax weighted average cost of capital of 14.31%.
The impairment loss on intangible assets was mainly due to a 2,156 million yen impairment loss on the
fixed assets of Miidas Corporation, a consolidated subsidiary of the Company, because the book value ofthe assets was reduced to the recoverable amount due to the fact that the expected earnings were nolonger expected. The recoverable amount was measured by value in use, but the recoverable amount wasdeemed to be zero based on the future cash flows were expected within the economic remaining life of thesoftware.
<Extraordinary loss>
649 million yen in extraordinary loss due to the revision to a new working hour management standard at aconsolidated subsidiary of the Company.

- 23 -

Fiscal year ended March 31, 2024
<Impairment loss>
In calculating impairment losses, the Group groups its assets based on the smallest unit of an asset groupthat is identified as generating independent cash inflows.
The breakdown of impairment losses by asset type is as follows.

Item
Goodwill(In millions of yen)
Fiscal year
ended March 31, 2024
2,279

Intangible assets
221

Software

2,501

Total

An impairment loss of 2,025 million yen was recognized for the entire amount of goodwill, mainly due tothe fact that Helpster Pte. Ltd. and its subsidiaries are no longer expected to generate the anticipatedearnings. The recoverable amount was measured by value in use, which is calculated by discounting future
cash flows to present value using a pre-tax weighted average cost of capital of 14.80%.

<Impairment charges of investments accounted for using equity method>
Fiscal year ended March 31, 2023
Not applicable.

Fiscal year ended March 31, 2024
As a result of the impairment test following an indication that the investment in GLINTS PTE. LTD. wasimpaired, an impairment loss of 2,142 million yen was recognized, since the initially expected profitability
was no longer expected.

- 24 -

(Earnings per Share)

Basic earnings per share and diluted earnings per share are as follows:
Fiscal year
ended March 31, 2023

Fiscal year
ended March 31, 2024

22,761

29,971－－

22,761

29,9712,289,514

2,267,568

11,407

13,8982,300,921

2,281,466

Basic earnings per share (yen)

9.94

13.22

Diluted earnings per share (yen)

9.89

13.14

Profit attributable to owners of parent (million yen)
Adjustment to profit for the period (million yen)
Profit used to calculate diluted earnings per share(million yen)
Weighted average number of common shares(thousand shares)
Increase in number of common shares
Share-based compensation (thousand shares)
Weighted average number of common shares after
dilution (thousand shares)

Note:
As of October 1, 2023, the Company conducted a 10-for-1 stock split of shares of common stock. As a result, basic earnings per shareand diluted earnings per share are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal
year.

(Subsequent Events)

Not applicable.

25

(First-time Adoption)

The Group is disclosing quarterly consolidated financial statements complying withIFRS from the first quarter of this fiscal year under review. The most recent consolidated
financial statements prepared under Japanese GAAP are those for the fiscal year ended
March 31, 2023. The date of transition to IFRS is April 1, 2022.
(1) Exemptions set out in IFRS 1
In principle, an entity that applies IFRS for the first time (hereinafter “First-time
Adopter”) is requested to retrospectively apply IFRS. However, IFRS 1 - First-time
Adoption of International Financial Reporting Standards (hereinafter “IFRS 1”) sets out
standards to which exemptions have to be applied mandatorily and standards to which
exemptions are applied optionally. The effects of the applied exemptions are adjusted
by retained earnings or other components of equity on the date of transition to IFRS.
When the Group moved from Japanese GAAP to IFRS, it applied the following
exemptions:- Business combination
The First-time Adopter is allowed to choose not to retrospectively apply IFRS 3
Business Combinations (hereinafter “IFRS 3”) to business combinations before the dateof transition to IFRS. The Group has applied the exemption and has chosen not toretrospectively apply IFRS 3 to business combinations before the date of transition. As aresult, goodwill that resulted from business combinations before the date of transition isbased on the book value on the date of transition under Japanese GAAP.
The Group conducted an impairment test related to goodwill on the date of transition
regardless of the existence of signs of impairment.

- Exchange differences on translation of foreign operations
IFRS 1 allows entities to choose to deem cumulative translation differences for foreign
operations as of the date of transition to IFRS to be zero. The Group has chosen to deem
cumulative translation differences for foreign operations to be zero as of the date oftransition.

- Share-based payment transactions
The Group has chosen not to apply IFRS 2 of Share-based payment transactions tostock compensation that was vested before the date of transition.

- LeaseIFRS 1 permits a first-time adopter to assess whether a contract contains a lease
based on the facts and circumstances that exist at the date of transition to IFRSs.
Applying this exemption, the Group has assessed whether the contract contains a leaseon the basis of the facts and circumstances existing at that date.

- Decommissioning liabilities included in the cost of property, plant and equipment
Regarding decommissioning liabilities included in the cost of property, plant andequipment, IFRS 1 permits an entity to select either to retrospectively
26

apply IFRSs requirements for the period back to the time when the liability first arose or
to measure the liability as at the date of transition to IFRSs. The Group has chosen tomeasure the decommissioning liabilities included in the cost of property, plant andequipment as at the date of transition to IFRSs.

- Designation of previously recognized financial instruments
Regarding the classification under IFRS 9 Financial Instruments (hereafter, "IFRS 9"),IFRS 1 permits an entity to make a judgment on the basis of the facts andcircumstances that exist at the date of transition to IFRSs, instead of facts andcircumstances at the time of initial recognition. IFRS 1 also permits an entity todesignate an equity instrument as a financial asset to be measured at fair value throughother comprehensive income, on the basis of the facts and circumstances that exist at
the date of transition to IFRSs.
Regarding the classification under IFRS 9, the Group has made judgments on the basisof the facts and circumstances that existed at the date of transition to IFRSs anddesignated some of its equity instruments as financial assets to be measured at fairvalue through other comprehensive income.

(2) Mandatory exceptions under IFRS 1IFRS 1 prohibits retrospective application of IFRSs in relation to estimates,
derecognition of financial assets and financial liabilities, hedge accounting, noncontrolling interests, classification and measurement of financial products, etc. The
Group applies IFRSs on these topics prospectively from the date of transition to IFRSs.

27

(3) Reconciliations
Reconciliations that are required to be disclosed in the first-time adoption of IFRS areas follows.
The "Impact of change of the fiscal year end" among the reconciliations shows theimpact of unifying the reporting period of subsidiaries and affiliates whose fiscal year
end differed from the Company's. Among the other reconciliations, items which do nothave an impact on retained earnings and comprehensive income are presented in"Reclassification" and those that do have an impact on retained earnings andcomprehensive income are presented in "Recognition and measurement differences."
Reconciliations of equity as of transition date (April 1, 2022)(In millions of yen)Line items under Japanese GAAP
AssetsJapanese
GAAP

Impact of change inaccounting period

Reclassification

Differences inrecognition andmeasurement

IFRS

Million of Yen

Million of Yen

Million of Yen

Million of Yen

Million of Yen

Notes

Line items under Japanese IFRSs
AssetsCurrent assets

Current assets

Cash and deposits

107,545△11,524△88－

95,933

1

Notes and accounts receivable - trade150,173

Contarct assets

18,658Cash and cash equivalents

7,390

1,294

－

158,857

3,4

Trade and other receivables

4,649△4,230－19,077Work in process

333

－

△333

－

－

2

Contract assets

－

－

94

－

94

1,3

Other financial assets

Other

10,74020△1,519△1,208

8,032

2

Other current assets

Allowance for doubtful accounts

△554

1

552

－

－

4

286,897537△4,230△1,208281,995

－

－

308

12

320

－

－

4,230

－

4,230

13,414254△ 4,820

1,140

9,989

－

－

4,820

23,57928,39917

Right-of-use assets

95,1293,112△ 34,300－

63,941

15

Goodwill－－

34,3001,462

35,762

14

Intangible assets

－

－

2,771

－

2,771

5

Investments accounted for using equity method

8,664

126

7,432

5,951

22,175 5,6,16 Other financial assets

Total current assets

Total current assets

Non-current assets

Property, plant and equipment
Intangible assets

Investment securities
Deferred tax assets

Non-current assets
Trade and other receivables
Contract assets
Property, plant and equipment

10

－

8,125

18,460

12

Deferred tax assets

Other

12,208199△12,193

△9

204

6

Other non-current assets

Allowance for doubtful accounts△1,527

△153

1,681

－

－

4

138,213

3,549

4,230

40,261

186,255

425,110

4,087－

39,052

468,251

Total non-current assets
Total assets

10,324

4,6

Total non-current assets
Total assets
Liabilities and equity

Liabilities

Liabilities

Current liabilities
Short-term borrowings

Current liabilities
162

824

13,998△16

14,9687

11,304

2,694△13,998

－

－

7

－

－

1,608

12,021

13,6309,17Accounts payable - trade

630

△45

86,587△68

87,1039

Accounts payable - other

81,813

6,649△88,462

－

－

8

－

－

815

21

836

8,9

11,211△465－－

10,745

714

73

－

－

787

Current portion of long-term borrowings

Income taxes payable
Other provisions

Lease liabilities
Trade and other payables
Other financial liabilities
Income taxes payable
Provisions

－

－

4,951

－

4,951

Accrued consumption taxes

17,432-0△17,431－－

9

Provision for bonuses

17,847△497△17,350

－

－

9

－

9

Provision for bonuses for directors (and other officers)

Bonds and borrowings

Contract liabilities

71

△45

△25

－

Other

26,706928

29,30735,911

92,854 8,9,18 Other current liabilities

Total current liabilities

167,893

10,115－47,868225,877

Bonds payable

10,000－30,000－40,000Total current liabilities

Long-term borrowings

30,000－△30,000－－

Lease liabilities

1,997

△16

－

10,642

12,622

17

Lease liabilities

－

－

9

727

737

8,11

Other financial liabilities

Asset retirement obligation

4,430

60

1

－

4,492

10

Provisions

Deferred tax liabilities

3,039

1,111

－

△231

3,919

12

Deferred tax liabilities

Retirement benefit liability

414

24

△439

－

－

11

Provision for share awards

810

1

△811

－

－

11

Provision for share awards for directors (and other officers)

835

0

△836

－

－

11

Other provisions

81

0

△81

－

－

Non-current liabilities

Other
Total non-current liabilities
Total liabilities

Non-current liabilities

1,239

43

2,157

△313

3,126

52,8501,225－

10,82464,899220,743

11,340－58,693

290,777

Bonds and borrowings

11
11,18

Total non-current liabilities

Net assets

EquityShare capital

17,479－－－17,479

Capital surplus

19,168△5,9740△1,083

12,110Retained earnings

158,282△918－△15,483

141,880

Treasury shares△10,351－－－△10,351

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests

Other non-current liabilities
Total liabilities△1,5307,609－△1,7884,290

183,048716

0△18,356

165,409

0

－

0

－

－

Share capital
Capital surplus
19

Retained earnings
Treasury shares

13,16

Other components of equity
Total equity attributable to owners of parent

21,317△7,969－△1,283

12,064

Total net assets

204,367△7,252－△19,640

177,474

Total equity

Total liabilities and net assets

425,110

4,087－

39,052

468,251

Total liabilities and equity28

Non-controlling interests

Reconciliations of equity as of transition date (March 31, 2023)(In millions of yen)
Presectation under Japanese GAAP

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Contarct assets
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets

Property, plant and equipment
Intangible assets

Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total non-current assets
Total assets
Liabilities
Current liabilities
Short-term borrowings
Current portion of bonds payable
Current portion of long-term
Accounts payable - trade
Accounts payable - other
Income taxes payable
Other provisions
Accrued consumption taxes
Provision for bonuses
Provision for bonuses for directors
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Asset retirement obligation
Deferred tax liabilities
Retirement benefit liability
Provision for share awards
Provision for share awards for
Other provisions
Other
Total non-current liabilities
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total accumulated othercomprehensive income

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

Japanese
GAAP

Impact of change inaccounting period

Reclassification

Differences inrecognition andmeasurement

IFRS

1
3,4

Presentation under IFRS

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Contract assets

99,757
160,980
25,951384－
17,780-572
304,281

1,553
-9
1,519
－
－
-351
-53
2,658

-77
1,881
-3,937-384
78-2,124626-3,937－－－－－-1,556－-1,556－－
14,849－86,320－－12,05813,741
12,535-1,627
137,877
442,159

－
－
-319
－
-845
－
－
-121
33
-10
-2
-1,266
1,392

309
3,937
-5,803
5,803-33,632
33,632
4,542
5,681
－
-12,162
1,629
3,937
－

－
－
503
22,364
6,623
1,617
187
5,846
9,634
-44
－
46,73445,17711361
10,00060－
602
91,934－
11,4181535－
18,967
19,868129
29,541
195,421

-247
－
0
－
-15
3233
－
-883
52
－
-40
-866
91
1123
2,448

10,060-10,000-60
1,937
93,101-95,167
989
－
－
6,596
-18,927-19,001-221
30,693－－－－
12,068
0
－
－
－
－
－
－
－
－
39,614
51,682－
30,116
3,421
－
4,659
4,018
311
1085
1104
45
1,242
46,005
241,426

－
0
-175
－
1
348
22
0
0
－
24
223
2,671

30,117-30,117
－
15
－
－
-333
-1,086-1,104
-45
2,553
－
－

－
－
9,567
793
－
27
－
－
－
－
-969
9,418
61,10017,47913,455
168,890-19,459
5,150

－
-17
-2,481
－
1,141

－
0
－
－
－

－
-1,167-11,4810-1,840Total current assets
Non-current assets
309
4,6
Trade and other receivables
3,937
Contract assets
9,229
Property, plant and equipment
28,16817
Right-of-use assets
58,465
15
Goodwill
35,25014Intangible assets
4,729
5
Investments accounted for using
23,464 5,6,16
Other financial assets
23,410
12
Deferred tax assets
317
6
Other non-current assets－
4
187,283
Total non-current assets
488,728
Total assets
Liabilities and equity
Liabilities
Current liabilities
21,174
7
Bonds and borrowings－
7－
7
14,005 9,17
Lease liabilities
93,6888,9Trade and other payables
－
8
989
8
Other financial liabilities
10,535
Income taxes payable
1588
Provisions
6,596
Contract liabilities
－
9
－
9
－
9
100,972 8,9,18 Other current liabilities
249,552
Total current liabilities
Non-current liabilities
30,117
Bonds and borrowings－
12,813
17
Lease liabilities
809 8,11
Other financial liabilities
4,660
10
Provisions
4,394
12
Deferred tax liabilities
－
11
－
11
－
11
－
11
2,850 11,18
Other non-current liabilities
55,647
Total non-current liabilities
305,199
Total liabilities
Equity17,479
Share capital
12,272
Capital surplus
154,926 16,19
Retained earnings-19,459
Treasury shares
4,452 13,16
Other components of equity

185,517-1,3570-14,489

169,670

015,214
200,732
442,159－
77-1,279
1,392

-0
－
－
－

－
-1,433-15,923
45,177－
13,859183,529488,72829

101,233
162,853
23,533－78
13,748－301,445

Notes

2
1,3
2
4

Other financial assets
Other current assets

Total equity attributable to ownersof parent
Non-controlling interests
Total equity
Total liabilities and equity

Notes on reconciliation of capital(Reclassification)(1) Cash and deposits
Time deposits whose deposit term is more than three months, which were included
in cash and deposits under the Japanese GAAP, are presented by including themin "Other financial assets" under IFRS.

(2) Work in process"Work in process," which was listed separately under the Japanese GAAP, ispresented by including it in "Other current assets" under IFRS.

(3) Current assets (Other)
Other accounts receivable and advances paid, which were included in "Other"under "Current assets" under the Japanese GAAP, are presented by including themin "Trade and other receivables" under IFRS, and deposits paid, advance payments,and short-term loans receivable are presented by including them in "Other financial
assets" under current assets under IFRS.

(4) Allowance for doubtful accounts"Allowance for doubtful accounts," which was listed separately under "Current
assets" under the Japanese GAAP, has been reclassified under IFRS so that it ispresented as a net amount through direct deduction from "Trade and otherreceivables" under current assets. "Allowance for doubtful accounts" under"Investment and other assets" has also been reclassified to be presented as a net
amount through direct deduction from "Trade and other receivables" under noncurrent assets.

(5) Investment securities"Investments accounted for using equity method," which were included
in "Investment securities" under the Japanese GAAP, are listed separately under
IFRS while other securities are presented by including them in "Other financial
assets" under non-current assets.

(6) Investments and other assets (others)
Long-term accounts receivable, which were included in "Other" under investments
and other assets under the Japanese GAAP, are included in ”Trade and otherreceivables” under non-current assets under IFRS while long-term loans receivable,
etc. are presented by including them in "Other financial assets" under non-current
assets and long-term prepaid expense, etc. is presented by including it in "Other
non-current assets."(7) Bonds and borrowings
30

"Current portion of bonds payable" and "Current portion of long-term borrowings,"
which were listed separately under the Japanese GAAP, are reclassified as "Bonds
and borrowings" under current liabilities under IFRS.

(8) Accounts payable - other
Salaries payable, etc., which were included in "Accounts payable - other" under theJapanese GAAP, are presented by including them in "Trade and other payables" under
IFRS while accounts payable – facilities are presented by including them in "Other
financial liabilities" under current liabilities.

(9) Current liabilities (Other)
Lease liabilities, which were included in "Other" under current liabilities under theJapanese GAAP, are listed separately as current liabilities under IFRS.
Further, guarantee deposits received are included in "Trade and other payables"
under current liabilities, refund liability is included in "Other financial liabilities" undercurrent liabilities, and deposits received are included in "Other current liabilities.""Accrued consumption taxes," "Provision for bonuses," and "Provision for bonuses
for directors (and other officers)," which were listed separately under the Japanese
GAAP, are presented by including them in "Other current liabilities" under IFRS.

(10) Asset retirement obligations"Asset retirement obligations," which were listed separately as an item under noncurrent liabilities under the Japanese GAAP, are included in "Provisions" under noncurrent liabilities under IFRS.

(11) Non-current liabilities (Other)
Guarantee deposits received, which were included in "Other" under non-current
liabilities under the Japanese GAAP, are included in "Other financial liabilities" under
non-current liabilities under IFRS.
The provision for directors' retirement benefits, which was included in "Other
provisions" under non-current liabilities under the Japanese GAAP, and "Retirement
benefit liability," "Provision for share awards," and "Provision for share awards for
directors (and other officers)," which were listed separately under the Japanese
GAAP, are presented by including them in "Other non-current liabilities" under IFRS.

(Recognition and measurement differences)(12) Deferred tax assets and deferred tax liabilities
Reflecting the application of IFRS, the collectability of all deferred tax assets has
been reconsidered. Further, deferred tax assets and deferred tax liabilities have beenrecorded to reflect temporary differences that have arisen due to reconciliations
associated with the transition from Japanese GAAP to IFRS.

(13) Transfer of cumulative translation differences related to foreign subsidiaries
31

At the time of the initial adoption, the Company selected the exemption provided in
IFRS 1 and transferred all of the cumulative translation differences that existed at
the date of transition to retained earnings.

(14) Intangible assets with an indefinite useful life
Among intangible assets that were amortized under the Japanese GAAP, theamortization of those classified as intangible assets with an indefinite useful life
under IFRS has been cancelled retrospectively to the period back to the time ofacquisition.

(15) Goodwill
Under the Japanese GAAP, goodwill was to be amortized evenly over the periods inwhich the effects of the goodwill were expected to be produced. Under IFRS, goodwill
is not amortized.

(16) Financial assets measured at fair value through other comprehensive income
Impairment losses that were recognized in past fiscal years in relation to financial
assets measured at fair value through other comprehensive income have beentransferred from retained earnings to other components of equity. Further, whileunlisted shares without market prices and money invested were evaluated with thecost method under the Japanese GAAP, they are measured based on fair value under
IFRS.

(17）Lease
Under the Japanese GAAP, lessee's leases were classified into finance leases andoperating leases, and the method for regular lease transactions was applied to theaccounting for operating leases. Under IFRS, lessee's leases are not separated
into finance leases and operating leases, so "right-of-use assets" and "leaseliabilities" are recorded for all lease transactions, in principle.

(18) Accrued paid leave
Accrued paid leave, which was not recorded under the Japanese GAAP, is recorded
and presented by including it in "Other current liabilities" and "Other non-current
liabilities."32

(19) Reconciliation of retained earnings(In millions of yen)Transition date
(April 1, 2022)

Fiscal year
ended March 31, 2023

Deferred tax assets and deferred tax liabilities

9,828

11,133

Transfer of cumulative translation differences
related to foreign subsidiaries

5,090

5,090

Intangible assets with an indefinite useful life

2,354

2,536

－

6,675

1,402

1,465

47

-206

-35,894-39,614

1,686

1,435

-15,483-11,481Goodwill
Financial assets measured at fair value throughother comprehensive income
Leasing

Accrued paid leave

Other
Total

33

Reconciliations of profits/losses and comprehensive income for the fiscal year ended
March 31, 2023
(In millions of yen)
Presectation under Japanese GAAPNet sales
Cost of sales
Gross profit
Selling, general and administrative
expenses

Japanese GAAP

1,223,967
941,323
282,643
229,581

Impact of thechange of fiscal
year end
18,643
17,371
1,272
2,668

－
－
53,061
2,261
1,630
53,693290
13,267－－－

Reclassification

Recognition andmeasurement
differences

IFRS

Notes

－
-897
897
-655

－
2,953
-2,953-6,115－－-1,396-108
205-1,710
-26
212
－
－
－

262
13,388-11,573-2,152-1,835-51,982-263-13,479
598
1,235
-689

－
499
2,661
－
－
－
－
－
-28
334
183

262
13,88842,754
－
－
－
－
－
570
1,569
-505

40,716
20,121-2,241
22,835-1,950278-478-1,750－-2,719
2,719
－

2,482
-1,208－
3,691

41,24916,471－
24,777

5
5

Valuation difference on available-forsale securities
Retirement benefit adjustments

12

－

－

158

170

4

－

－

－

31

31

6

Deferred gains or losses on hedges
Foreign currency translation
adjustment
Share of other comprehensive incomeof entities accounted for using equity
methodTotal other comprehensive income
Comprehensive income

－
6,857

－
-6,947

－
－

3
67

3
-22

7

281

-79

－

－

201

7,151
29,987-7,027-8,776

－
－

260
3,951

384
25,161

Operating profit
Non-operating income
Non-operating expenses
Ordinary profit
Extraordinary income
Extraordinary loss

Profit before income taxes
Income taxes - current
Income taxes - deferred
Net Profit
Other comprehensive income

34

1,242,611
960,7514
281,859
225,479 2,3,4,6
1
1

Presentation under IFRSRevenue
Cost of sales
Gross profit
Selling, general and administrative
expenses
Other income
Other expenses
Operating profit

1
1
1
1
1
1,4
1

Finance income
Finance costs
Share of loss (profit) of entities
accounted for using equity method
Profit before tax
Income tax expense
Net Profit
Other comprehensive income
Items that will not be reclassified to
profit or loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit
plans
Items that may be reclassified to profit
or loss
Cash flow hedges
Exchange differences on translation offoreign operations
Share of other comprehensive incomeof investments accounted for using
equity method
Other comprehensive income, net of tax
Comprehensive income

Notes on reconciliations of profits/losses and comprehensive income(1) Reconciliation of presented items
Of the items that were included in "non-operating income," "non-operating
expenses," "Extraordinary income," and "Extraordinary losses" under the Japanese
GAAP, finance-related items are recorded as "Finance income" or "Finance costs" under
IFRS, and the other items are reclassified as "Other income," "Other expenses," or"Share of profit of investments accounted for using equity method" under IFRS.

(2) Reconciliation of recorded amount of goodwill
Goodwill is amortized under the Japanese GAAP but not amortized under IFRS.
Accordingly, amortization of goodwill has been discontinued since the date oftransition.

(3）Unused paid leave
Unused paid leave, which was not recorded under the Japanese GAAP, is recognized
as personnel expenses under IFRS.

(4) Reconciliation of finance income and costs
Under the Japanese GAAP, (loss) gain on sale of investment securities or impairment
losses was profit or loss. Under IFRS, concerning equity instruments designated to bemeasured at fair value through other comprehensive income, fluctuation of fair value isrecognized as other comprehensive income and is transferred to retained earnings in
the case of derecognition. Further, while lease payments related to operating leases
were recorded in "Cost of sales" and "Selling, general and administrative expenses"
under the Japanese GAAP, IFRS requires recognition of lease liabilities for all leases, inprinciple, and interest costs are recorded in "Finance costs."(5) Income tax expense
Under the Japanese GAAP, "Income taxes - current" and "Income taxes - deferred"
were presented separately. Under IFRS, they are collectively presented as "Income tax
expense." In addition, reflecting the application of IFRS, collectability of all deferred
tax assets has been reconsidered.

(6) Remeasurements of defined benefit plans
Under the Japanese GAAP, actuarial gains/losses on retirement benefit obligations
and past service cost were recognized as other comprehensive income when suchgains/losses or cost were generated and collectively recorded as expenses for the fiscal
year when they were generated. Under IFRS, remeasurements of defined benefit plans
are recognized as other comprehensive income and past service cost is recognized as
profit or loss when it is generated.

(7) Exchange differences on translation of foreign operations
35

At the time of the initial adoption, the Company selected the exemption provided in
IFRS 1 and transferred all of the cumulative translation differences that existed at thedate of transition to retained earnings.

Reconciliation of cash flows
Under the Japanese GAAP, lease payments related to operating leases were classified
as cash flows from operating activities. IFRS requires recognition of lease liabilities for allleases, in principle, and expenditure for the repayment of lease liabilities is classified
as cash flows from financing activities.

36