PERSOL HOLDINGS CO., LTD.
Held on Thursday, July 4, 2024
Script of IR DAY: DAY2 Asia Pacific SBU Business Description【Executive Officer Asia Pacific SBU Lead Yamazaki】

Hello everyone, my name is Yamazaki in charge of APAC SBU.
Today, I would like to give you an overview of our APAC business and discuss the
progress of our Mid-term Management Plan, which is now in its second year.

As you can see on the slide, "Work and Smile" is a very important vision for us at
APAC SBU, and we promote it on social media such as LinkedIn, in the form of
PERSOL "Work and Smile. It has been very well received internally by our employees
as well as externally by customers and candidates.

First, let me talk about the scale and coverage of the APAC business. We aredeveloping our business in 13 Asian countries/regions (excluding Japan), which wecall 13 markets, and our sales exceed 400 billion yen.

The history of PERSOLKELLY dates back to 2012, when we established a joint
venture in North Asia, the predecessor of PERSOLKELLY, and began to actively
engage in overseas business. More than a decade has passed since then, and thescale of the business has grown to 400 billion yen. I have been in charge of the Asia
Pacific Business since 2014, and the business has grown from 4 to 5 billion yen inrevenue at that time to more than 400 billion yen today, with 10,000 diverse. At
400 billion yen, this is without a doubt a larger business in APAC outside of Japan
than that of our competitors, an achievement that has been made possible by thetremendous efforts of our colleagues.

As I mentioned when explaining the Mid-term Management Plan, questions like why
do we do business not only in Japan but also in APAC, and why do we do businessin APAC despite its lower profitability compared to Japan have come up in the past,
but the working population and the general population itself are expected to growin APAC. For example, New Zealand and Australia are still growing, and in India andVietnam, the working population and the general population are growing rapidly.
We believe that it is very important for us to realize "Work and Smile" in this market
in light of our mission, and we are working diligently to gain market share as the
top provider in this market.

This is a reiteration of the Mid-term Management Plan, but we are the largest
company in APAC (excluding Japan) with revenue of 400 billion yen, and we havethe top market share in each of the major markets. In Singapore, the company has
a 23% share of the market; in Malaysia, 27%; and in Australia, we are the largest
staffing company, taking a 13% share of the blue-collar staffing market. I would
like to emphasize here that in the major countries we cover, we have almost the
top market share, or are at least top three. The fact that we have the top market
share means that we can expect to grow as the market grows. We feel that we are
currently progressing as envisioned, and we expect further business expansion in
the future as we gain market share.

From this page, I will speak in terms of US$. This slide hasn't been shown before,
but in APAC, both revenue and profits have been growing remarkably. As you cansee on the top of the slide, from 2020 to 2023, revenue grew by more than 20%,gross profit by 26%, and operating profit by 580%, and although the base in 2020
was low, profits have grown very significantly. Despite the large sales, both revenue
and gross profit are growing. In addition, as I will explain later, I would like toemphasize here that operating profit is growing much faster than revenue and grossprofit due to various cost optimization measures.

Here is an overview of the APAC SBU.

As I mentioned in the Mid-term Management Plan, we have made full use ofmergers and acquisitions to create this business, and through these mergers andacquisitions, we are now able to form an international management team that has
joined the PERSOL Group. As for the APAC board members who are considered
EXCO, Francis, who heads the staffing business, is Singaporean and Stephen Leach,the CFO, is an Australian resident of African origin. We are very proud of ourinternational and talented Divisional Head and Support Function, who have beenbrought in through mergers and acquisitions and continue to work for the PERSOLGroup. We think we should be very proud of our team.

Let me then reiterate about our business domain. The two main categories arestaffing and maintenance. In Japan, the word "staffing" conjures up images of
temporary staffing, but overseas, the term "staffing" refers to human resources
services, including both permanent placement and temporary staffing, with revenueof US$1.7 billion in FY2023. Maintenance includes facility management and property
services, with revenue of approximately US$1 billion.

In the area of staffing, our goal is to become the No. 1 human resources services
company in the APAC region, and we are currently working diligently to achieve thisgoal. What is needed to achieve this is described in the lower half of the slide,including Client Focus.

As you can see from the organization of our business, we are now operating the
US$1.7 billion business I mentioned earlier, divided into this many organizations.
Since each of the 13 country/regional markets has a very different strategy, we
have divided them into segments and have a firm focus and execution within eachsegment. First of all, SBG1, the second market on the left, is a relatively mature
market in which we have a large market share, consisting of Singapore, Malaysia,
and India. We are basically operating with the goal of pursuing profitability andmaintaining a solid market share. Next, listed second on the right side, is SBG2. We
are aiming for further expansion while investing in both China and Hong Kong, whichhave very large market sizes. SBG3 is the so-called growth countries, which include
Vietnam, Thailand, Indonesia, and Taiwan. Since these countries have a growing
population and are expected to experience significant growth in the future, we aim
to achieve the top market share by focusing on permanent placement, and after
achieving the top market share, we hope to increase revenue and profits in line withmarket growth. SBG4 is South Korea and consulting business. The business here is
growing at an exceedingly stable pace, and I believe that the main agenda for SBG4
is to increase revenues and grow the business. Next is SBG5, shown in the lower
right corner. SBG5 covers manufacturing, infrastructure, and training in Australia,
and the key agenda is to see how far we can go with technology to make ouroperations more efficient, because the margins are not that high, although we area very large business. SBG6 is the mining industry. Australia has a very large mining,energy, and resource base, and we are doing staffing for this. We believe this is a
growing business, and we are aiming for revenue and gross profit growth while also
making investments. BTIES APAC, shown on the left side, is the so-called executive
search business. We are currently expanding permanent placement services forclients with relatively high annual income structures in major Southeast Asian
countries, Australia, China, and other APAC countries, and are in the process ofsignificantly increasing our headcount and growing. We are also engaged in whitecollar human resources business in Australia and New Zealand, which are listed at
the bottom of the left-hand side of the page, included in SBG1. For SBG1, we placea high priority on using technology in addition to stable growth, and as in Singapore
and other countries, we are working hard on our agenda for Australia and New
Zealand to use technology to increase efficiency in the white-collar area. We havea very large business that has been grouped into segments, and each segment head
has a clear understanding of the key agendas that I just described, and under theleadership of Francis, who heads the staffing business, we are developing ourbusiness in our staffing business organization.

Next, I would like to talk about maintenance. There is probably no company in Japanthat does this business as human resources business, and PERSOL does not do thisbusiness in Japan, so I will explain it as it may be difficult for you to understandwhat it is. Maintenance includes facility management, known as FM, and property
services. I would like you to understand first of all that there are these two types.
Facility management is a service that provides focused maintenance andoutsourcing services to owners and operators of assets, equipment, and facilities.
We have a variety of projects, but to give you an example, we are doing
maintenance for the City Hall in Melbourne. With regard to the facilities in the city
hall, there is electricity and there is gas. We have to do maintenance on the floors
and the walls. FM business is the comprehensive contracting of such business forthe proper maintenance of facilities. We have various subcontractors under FM, and
we also control the subcontractors. Property services, on the other hand, are more
like direct maintenance of facilities. For example, we are often in the business ofpainting the exterior walls of schools and other facilities, which we call painting
services. We also have a service called grounds. There are many parks in Australia,
and we maintain the trees in these parks, watering them and cutting branches, etc.
In some cases, we receive business as FM, but with property service handling partof that business, so the two businesses complement each other. Property service isinvolved as subcontractors for about 10% to 20% of PERSOLKELLY's revenue fromprojects comprehensively undertaken by FM, and we would like to increase thisfigure in the future.

As for FM, we are currently doing business in the areas shown on the left. Morethan 90% of revenue are government-affiliated. These are projects from theAustralian national, state, and city governments. We are engaged in a variety ofbusinesses, such as education, which includes, for example, the operation offacilities at universities and high schools. If you go to the left, you will see Social
Housing, which is public housing maintenance. Water, this is the operation of thewater department's facilities. This business is growing a lot right now. Corrections
means prisons, so we also do maintenance for prisons. Below is Airports. In termsof the larger airports, Melbourne and Sydney, we provide comprehensive
maintenance services for airport facilities. As for Utilities, we are also involved inpublic infrastructure facilities, including electricity and gas. In Telecom, we focus on
facility management with telecommunications carriers and have recently taken on
a major project. As I mentioned earlier, we also take on various projects fromgovernments in terms of managing buildings such as city halls and state
government buildings. This is an overview of FM.

In terms of regions, we have a very broad range of businesses throughout Australia,
and we also have a very large business in New Zealand. In terms of businesses, weare doing a great deal of business in Western Australia (WA) whose largest city is
Perth, as well as in large cities such as Melbourne and Sydney. As for New Zealand,
which I mentioned earlier, we have taken on many projects from schools and thegovernment.

The above is an overview of our business, and from here I would like to talk about
the progress of our Mid-term Management Plan.

The Mid-term Management Plan is very simple for APAC, and has three pillars. We
have been doing mergers and acquisitions for a long time, so we have a very large
number of businesses in various countries. Which of these businesses should wereally focus on? Conversely, if there are businesses for which we are not the rightowner, we were committed to doing the right thing to make them optimal businessports, including boldly selling them off. This is a way of doing what is called"selection and concentration" properly.
Second, as I mentioned earlier, we have been doing mergers and acquisitions for along time, so our back offices are redundant in some countries. In this context, weare not optimizing our costs, so we will make structural reforms, mainly with respect
to the back offices.
The third is DX. Our businesses are very labor-intensive, so I believe that it isinevitable that we will include technology and digitize our processes with respect toeach of our businesses, thereby increasing our productivity. This would be primarily
a collaboration with the Japanese side. The Japanese side is very digitized in thehuman resources business, so we will work with them to develop the humanresources business in APAC, especially the DX for permanent placement, which I
will explain later. The third pillar of our plan is to firmly implement the DX of"permanent placement."

The results status for 2023 compared to 2020 is shown here.
First of all, regarding portfolios, we are focusing on "Selection and Concentration."
In terms of selection, we believe that the placement business is extremely profitable
and capital efficient. This is a business in which we are very strong in Japan, but in
Asia it is very small compared to the temporary staffing business, so our aim is toinvest a lot here throughout the 13 countries/regions. This is growing at a 13%
CAGR over 2020. Although COVID-19 has caused some difficulties in this area,
revenue has reached US$60 million in 2023, which is directly translated into grossprofit, so we are seeing solid growth in both revenue and gross profit.
Furthermore, facility management, as I explained earlier, is very stable. For most of
our contracts, we have contracts for more than 10 years. In addition, working
capital is basically paid by customers in very short cycles, so the business does not
require much working capital. In that sense, I believe that this business willcontribute very much to ROIC improvement, and I said at the time of the Mid-termManagement Plan announcement that we would focus our efforts on this business.
This business is growing at 19% CAGR each, and by 2023 it was worth nearly
US$800 million, or more than 100 billion Japanese yen. At the same time, in thecontext of selection and concentration, we have been reviewing various businesses
that we need to sell. The sale of Programmed's Australian health business, whichmainly provided home care, especially for the disabled, some elderly care, and someveterans' care, has been completed. As for us, we are now able to fully concentrateon permanent placement in staffing and FM in maintenance, as I mentioned earlier.
We believe that we are steadily reviewing our business portfolio in this way.

Next is cost optimization through structural reforms, and as a result of mergers andacquisitions, we have support functions in various places. In order to completely
consolidate these functions, we have created a regional headquarters, PERSOL Asia
Pacific, and have centralized all corporate functions under this regional headquarters.
As a result, we have been able to reduce support costs by about half compared to
FY2020. This has contributed to the improvement in profitability that you have justseen. As part of our cost-cutting efforts, we are transferring our back-office
operations in Australia, where personnel expenses are high and our business is large,
to Malaysia. Malaysia has very high language capabilities and costs are very low
compared to Australia. To be more specific, the costs are about one-third. The
shared service center started with one person as a start-up in 2020, but by 2023
there were 178 employees, and most recently probably over 200, in Malaysia, andthey are doing business in Australia. We hope you understand that this has further
contributed to the halving of support costs.

Next is DX. As for permanent placement, doda has a very good business model andexcellent AI matching technology, so we are now coordinating with doda to createa business model that combines a so-called job portal and permanent placement,
based on doda's ribbon model, which we will discuss later. Moreover, one of themost important parts of the permanent placement process is the matching process,which in other words links order and the candidate, but as long as this is done bypeople, it is difficult to increase productivity. doda is equipped with a very brilliant
AI, which is now a great help to our consultants when they are matching. A project
has been launched to apply the same technology in APAC, and has been in operation
for a year now, with some trials already underway in Singapore and elsewhere.

doda's ribbon model is shown on this page. What makes doda so strong is that they
have a portal that connects job seekers and recruiting companies, a so-called
recruitment medium. There, you can see what kind of jobs clients have posted mostrecently, which orders are not attracting the right candidates, and so on. It is also
a good place to learn about the intentions of job applicants and the types of jobs
that interest them. Based on this model, the company has established a model inwhich it charges for job advertisements on doda and also charges for permanent
placements on doda. More to the point, the productivity of permanent placement issignificantly increased by the data from the portal, as consultants can do work basedon a variety of data. We would like to promote this model in Asia as well, and sinceno other company in Asia is doing this, we are now working with PERSOL CAREER
to establish this model. Let me go back one slide.

For temporary staffing, Programmed GO, a mobile application mainly for candidates
and a web-based application for clients, is also available, something originally from
Programmed. We are now looking to expand this to Singapore and Malaysia toincrease the productivity of the temporary staffing business in Singapore andMalaysia.

Specifically, there are many more benefits to the candidate now than to thecustomer. Candidates must install the mobile application, but it allows them tosearch for and apply for temporary positions that we have available. You can also
do the even more cumbersome adjustments there. If a contract is to be signed, asubsequent contract can be signed there as well. In addition, all payroll work is done
there, and pay stubs can be viewed there as well. This will significantly reduce the
man-hours of consultants who used to communicate with candidates in various
ways. This has actually been implemented in Australia, and we are now planning to
introduce this in Singapore and Malaysia, and then to implement it in all other Asian
countries as well. For our clients, we have a web-based dashboard that allows themto see at a glance the availability of staff dispatched from our company, for example,
to approve timesheets, or to see how much they will be billed for this month. We
now have almost 100% of our customers in Australia utilizing these tools, and therate of satisfaction is very high. We would like to expand that in Asia from now on.
To repeat what I said earlier, trials are being conducted in Singapore and Malaysia,
and we are in the process of rolling them out in other countries as well. This will berolled out in all countries during the current Mid-term Management Plan period.

When I talked about our financial targets at the time of the last Mid-termManagement Plan, I said that we were aiming for revenue of US$3 billion andadjusted EBITDA of US$92 million by 2025. As of 2023, revenue reached US$2.9
billion and adjusted EBITDA nearly US$70 million. This means that we haveachieved far more than the numbers originally envisioned for 2023. In the Mid-termManagement Plan, we had stated that EBITDA will be 15 billion Japanese yen in2025 and operating profit 10 billion yen, but due in part to the impact of exchange
rates, EBITDA in excess of 10 billion yen was already achieved as of 2023. At thisrate, we are on track to reach the 2025 target in Japanese yen by 2024, and ourbusiness performance has been very favorable. Moreover, we believe that we willachieve a ROIC of 10% by 2025, although our ROIC is currently very low, as a resultof a series of mergers and acquisitions. We are making very good progress in thisarea as well, and we are now almost at the point where we can see the achievementof 10% ROIC by the year 2025.

Finally, I would like to talk about the future.

Some might repeat the question of why we are doing business in APAC, and as I
already mentioned, we have a scale of 400 billion yen, and we have almost the top
share of the market in major countries. In the human resources business, market
share is extremely important, and in markets where we have a near-top market
share, we expect our market share to grow as the market grows. That is what
happened in Japan. I believe this will happen in Asia as well. Salary levels are still
lower than in Japan, but Vietnam and Indonesia are rapidly catching up with Japanin terms of salary levels. The market sizes have grown accordingly, and I believethat we have the top market share in almost all major markets and will continue togrow as the market grows. I believe that a scale of 700 to 800 billion yen in revenue
by 2030 is not just a dream, and we are determined to raise it to that level. Moreover,at the same time, by implementing the measures described below, we will also raise
the adjusted EBITDA margin to 7%-8%. As a result, we are confident that APAC
can become an important mainstay business for the PERSOL Group at that time. I
think it is the mission of APAC to do so, and I believe that is the meaning of doing
business in APAC. As for what we are going to do from now on, we will not changemuch from the current Mid-term Management Plan and grow the FM business, andI think it is very important to increase the adjusted EBITDA margin in the highly
profitable placement business. To boost permanent placement, we believe that DX
investment and the overseas development of the doda model are extremely
important, and although we have not yet announced the next mid-term
management plan, it's our APAC policy to continue to implement these three pillars
as we head toward 2030.

First of all, the market for FM is growing rapidly. It has nearly doubled compared to2020, and I believe that this is due in part to the trend in Australia of various sectors
being shifted from the public sector to the private sector, and that what was
originally done by the government itself is being increasingly transferred to theprivate sector. The market is getting bigger and bigger, and since we are in a good
position in the market, I think we are growing rapidly. I believe that growth can be
expected beyond 2024, and that the market will be even larger by 2030, so I would
like us to focus firmly on FM in Australia. In addition, we are now very
knowledgeable in Australia regarding FM. Technology is also important when it
comes to FM. We must have the technology to manage various types of facilities,
and we have accumulated the knowledge to manage them in our 40 years ofexperience. I believe that we can expand our business in Asia, where such facilities
will increasingly be built in the future. As a specific example, in the Philippines, there
is talk of building more and more new airports, and the Philippine government isalso in the process of building more and more facilities. The governments of thePhilippines, Malaysia, Singapore and other countries have told us that Programmed
is doing a good job in Australia, that we have accumulated a lot of knowledge, thatthe number of their facilities has increased, that they need to do facility
management from now on, and that they have been doing it on their own up to
now but have now reached their limit. We would like to expand into those countries,
and I think that if we expand into those countries, the market size will increase
dozens of times if not more. We would like to do so without hesitation.

Next is permanent placement. As for permanent placements, the population isnaturally growing and salaries are increasing, so even if fees are not as high as inJapan, the size of the market will continue to grow. I think the market will grow in
Asia at a greater rate than in Japan for permanent placement. Especially with regard
to China, I believe it will continue to grow. We currently have 400 permanent
placement consultants in China, and I think it will be easy to increase this number
to 1,000 or 2,000, so while doing that, we want to continue to expand ourpermanent placement business in other markets as well.

With that in mind, as I mentioned earlier, I believe that DX investment is key. Even
if we only do the current labor-intensive manual permanent placement, theprofitability of the permanent placement is naturally high, but it is not expected to
be as profitable as it is in Japan. In this context, we are looking at permanent
placement combined with job advertisements, and also with the incorporation of AI
in the permanent placement matching process, as well as the incorporation ofvarious technologies in other processes. If we can digitize more than half of thepermanent placement process like that, the productivity of our consultants will
double. Further, with respect to so-called job advertisements, we do not have any,
so we pay a large amount of money to other job advertising media and LinkedIn. If
the doda model can be implemented, we can save money there as well.
Moreover, considering that we receive the data, which is extremely valuable formatching, I believe that we can expect the market to grow and profitability andproductivity to improve by building that, so we would like to do this by combining
DX and permanent placement growth as we invest in DX.
We believe that this is the key to improving EBITDA margin, and we would like towork in close coordination with the Japanese side in this area.

The growth scenario of the Mid-term Management Plan is as I have explained up tonow, but first of all, ROIC of 10% in the current Mid-term Management Plan, as I
mentioned earlier, is almost in sight as a result of various efforts. Furthermore,
profitability has been improving. After completing this goal, in the next mid-term
management plan, we will work in cooperation with the domestic business I
mentioned earlier, especially with PERSOL CAREER's "doda," and firmly develop the"doda" model in Asia. In the next mid-term management plan, we will expand DX
for permanent placement and further solidify our position as market leader. Goingforward, we would like to make the APAC businesses have revenue in the trillionsof yen all by themselves. This will be the strategy for the APAC SBU over the midto long-term.
The above is an overview of the SBU's businesses in Asia Pacific.
Thank you for your time and attention.