For Immediate Release
August 10, 2023

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the Three Months Ended June 30, 2023(IFRS)PERSOL HOLDINGS CO., LTD. (the Company) today announced its consolidated financial results
for the three months ended June 30, 2023.
(1) Consolidated Operating Highlights
1. Financial Results(In millions of yen, unless otherwise stated)
Three months ended June 30,% change2022
2023
300,467
328,703
9.4

Revenue
Operating profit

17,436

14,675△15.8

profit before tax

17,51014,617△16.5

Profit11,641

9,734

△16.4

Profit attributable to Owners of parent

11,139

9,369

△15.9

Comprehensive income

13,95815,145

8.5

Basic earnings per share (yen)

48.44

41.38

Diluted earnings per share(yen)

48.26

41.09

EBITDA

24,921

21,782Adjusted EBITDA

22.67819,014

Adjusted Net Profit

12,675

10,513Adjusted EPS(yen)

54.98

46.21

Notes:EBITDA: Operating profit + Depreciation
Adjusted EBITDA: Operating profit + Depreciation(Excluding 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 revenues and expenses ± Nonrecurring profit/loss
Adjusted EPS : Adjusted net profit/(Average number of shares outstanding during the period - Average number of treasury shares during
the period)

2.

Statement of financial position(In millions of yen, unless otherwise stated)
As of March 31, 2023

As of June 30, 2023

Total assets

488,728

495,142

Net assets

183,529

189,759

Total equity attributable to owners of parent

169,670

175,739

Ratio of Equity attributable to owners of theparent

34.7%

-1-

35.5%

(2) Dividend Status(In yen, unless otherwise stated)
Fiscal year ended/ending March 31,
2024 (forecast)

2023
Interim dividends

21.00

43.00

Year-end dividends

40.00

4.30

Annual dividends

61.00

-

Note:
The Company plans a 10-for-1 split of its common stock, effective October 1, 2023. The year-end dividends per share for the fiscal year
ending March 31, 2024 (forecast) are calculated to reflect the stock split. Without the stock split, the year-end dividends per share forthe fiscal year ending March 31, 2024 (forecast) would be 43 yen. For details, please refer to the Notice of a Stock Split, a Revision of
Articles of Incorporation and a Revision to Dividend Forecast published August 10, 2023

3. Consolidated Financial Forecast for the Fiscal Year Ending March 2024
(In millions of yen, unless otherwise stated)
Forecast for the fiscal year
% change from theending March 31, 2024
previous fiscal year
Full year

Full year

1,340,000

7.8

Operating profit

54,50027.5

Adjusted EBITDA

75,5000.3

Adjusted net profit

39,000△1.4

Adjusted EPS (yen)171.41-

Revenue

Note:
As we have changed our accounting standards from Japanese GAAP to International Financial Reporting Standards (IFRS) from thecurrent consolidated accounting period, we disclose our consolidated financial forecasts in IFRS as well.

Disclaimer
The statements concerning the Company's future business performances in this material such as financial forecasts are
based on information currently available and certain assumptions deemed to be reasonable by the Company, and do notmean that the Company promises to achieve these figures. Actual results may differ materially from the statements due
to a variety of factors.

-2-

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

Excluded: - (company name)(2) Changes in accounting policies and accounting estimates①Changes in accounting policies required by IFRS: None
②Changes in accounting policies other than ①above: None
③Changes in accounting estimates: None

(3) Number of shares issued (common stock)①Number of shares issued and outstanding at the end of the period (including treasury stock):Three month ended June 30, 2023: 233,199,861 shares
March 31, 2023: 236,704,861 shares②Number of shares of treasury stock at the end of the period:
Three month ended June 2023: 5,655,083 shares
March 31, 2023: 9,177,309 shares③Average number of shares outstanding during the period (cumulative quarterly period):
Three months ended June 30, 2023: 227,528,565 shares
Three months ended June 30, 2022: 230,566,885 shares(Note) The number of treasury stock at the end of the period includes 1,390,483 shares for the
first quarter of the fiscal year ended March 31, 2024 and 1,420,373 shares for the fiscal year
ended March 31, 2023. The "Directors' Compensation BIP Trust Account" and the "Stock Grant
ESOP Trust Account" are included in the above description.
The quarterly financial results are 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 onplans, contain elements of uncertainty and are subject to change. Accordingly, they are notintended to be a promise by the Company that they will be achieved. Actual results may differ
materially from our current expectations.

(Application of International Financial Reporting Standards (IFRS))
Effective from the first quarter of the fiscal year ending March 31, 2024, the Group has
adopted International Financial Reporting Standards (hereinafter referred to as "IFRS"). The-3-

Group has adopted International Financial Reporting Standards ("IFRS") from the first quarterof the fiscal year ending March 31, 2024. Financial figures for the first quarter of the previous
consolidated fiscal year and the previous consolidated fiscal year are also presented inaccordance with IFRS.

(1) Management Discussion and Analysis
In the three months period ended June 30, 2023, the Company began to disclose its
condensed quarterly consolidated financial statements in accordance with the International
Financial Reporting Standards (IFRS). Figures for the same quarter of the previous fiscal
year and ones for the previous consolidated fiscal year have been recalculated under IFRS
for comparison and analysis.

1. Result of Operations
PERSOL GROUP (the Group) provides a wide range of human resources (HR) related services;
temporary staffing and placement services as the core businesses in Japan and Asia-Pacific(APAC) region.
In the three months ended June 30, 2023, the business environment in Japan saw economic
and social activities boosted by the reclassification of the novel coronavirus (COVID-19) fromClass 2 to Class 5. The ratio of job offers to job seekers (seasonally adjusted) in Japan was
1.30 in June 2023, showing that demand for human resources continued to recover steadily.
In the APAC region, the economic trend was generally one of recovery, with the exception ofcertain regions where the impact of COVID-19 persisted. Concerning exchange rates, the US
dollar and Australian dollar both appreciated against the Japanese yen. (Average exchange
rates during the period: [U.S. dollar] ¥129.7 for FY 2023/3 Q1, ¥137.5 for FY 2024/3 Q1;[Australian dollar] ¥92.7 for FY 2023/3 Q1, ¥91.9 for FY 2024/3 Q1)
In this business environment, the Company has been aggressively investing since thebeginning of the period, mainly in the Careers SBU, BPO SBU, and Technology SBU, whichwere designated as the pillars of profit growth in the Midterm Plan 2026, of which the current
period is the first year.
Against this backdrop, sales increased in all SBUs except the newly established BPO SBU,
where operations related to infection control have settled down as initially expected with theconvergence of COVID-19, resulting in overall group sales of 328,703 million yen (up 9.4%
year-on-year.24.5% progress rate for full year forecasts).
On the profit front, while profits increased at Staffing SBU,Career SBU and APAC due to brisk
corporate demand, BPO SBU and Technology SBU saw a decline in profits because demand
related to COVID-19 has subsided. The overall Group's adjusted EBITDA, which the Company
began to use as a key profit indicator in the current fiscal year, stood at 19,014 million yen(down 16.2% year on year. 25.2% progress rate for full year forecasts) and operating profit
was 14,675 million yen (down 15.8% year on year. 26.9% progress rate for full year
forecasts).
Profit before tax was 14,617 million yen (down 16.5% year on year), and net profit stood at
9,369 million yen (down 15.9% year on year. 28.0% progress rate for full year forecasts).
Results by SBU (before inter-segment elimination) are as follows.
-4-

a. Staffing SBU
In this segment, the Group operates temporary staffing business, including mainly clericaland administrative staff dispatching and wide range of staffing service.
Sales for the three months ended June 30, 2023 were 144,793 million yen (up 8.4% year onyear), adjusted EBITDA was 9,385 million yen (up 0.7% year on year), and operating profit
was 8,386 million yen (up 6.9% year on year)
Sales increased as a result of an year-on-year increase in the number of active temporary
staff by 7.0%.
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.
Sales for the three months ended June 30, 2023 were 26,520 million yen (down 5.7% year
on year), adjusted EBITDA was 1,657 million yen (down 60.7% year on year), and operating
profit was 1,093 million yen (down 70.2% year on year)
Both sales and profits decreased because businesses related to infection control hit a lull as
forecast initially (with the negative impact associated with COVID-19 on profits being 1.5
billion yen)(Gross profit of COVID-19 related business:23/3-Q1 2.5B,24/3-Q1 1.0Byen).

c. Technology SBU
This segment had been Professional Outsourcing SBU until the previous fiscal year. It was
renamed Technology SBU. Some businesses were transferred to BPO SBU. In this segment,
the Group operates manufacturing and development outsourcing business in IT andengineering areas and temporary staffing business specialized in engineers dispatching.
Sales for the three months ended June 30, 2023 were 23,861 million yen (up 13.6% year onyear), adjusted EBITDA was 759 million yen (down 43.5% year on year), and operating profit
was 348 million yen (down 69.9% year on year)

Sales increased because the engineering area saw growth in demand, mainly fordevelopment in the manufacturing industry. An additional factor was steady growth in the IT
area. Operating Profits decreased due to an increase in personnel expenses that resulted
from enhanced hiring activities. With new graduate engineers hiring(up 104.7% year on year)

d. Career SBU
In this segment, the Group mainly operates placement business, supporting corporate clients'
mid-career hiring activities, and job recruitment media business.
Sales for the three months ended June 30, 2023 were 31,902 million yen (up 31.8% year onyear), adjusted EBITDA was 6,645 million yen (up 13.2% year on year), and operating profit
was 5,590 million yen (up 7.9% year on year).
Sales in the placement business and job recruitment media business increased due toefficient, stronger sales promotion activities in addition to the growth of demand for hiring
among customers. Profits increased on stronger sales, absorbing the rise in selling, generaland administrative expenses that resulted from marketing investment made in response to-5-the rising demand,investment to high-salary career zone businesses, and enhancement of
hiring activities.
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 business in Australia (thosebusinesses are operated under PERSOLKELLY brand in Asia and under Programmed brand inAustralia.)
Sales for the three months ended June 30, 2023 were 102,269 million yen (up 8.9% year onyear), adjusted EBITDA was 2,595 million yen (up 20.6% year on year), and operating profit
was 1,840 million yen (up 97.9% year on year).
Sales increased due to progress in the recovery from the impact of the spread of COVID-19
infection. Profits increased due mainly to a rise in highly profitable placement business
together with cost optimization.
#

#

#

#

(2) Financial Position
1. Consolidated

Statement of financial position

Total assets increased 6,413 million yen compared to the end of the previous fiscal year.
Current assets increased 1,267 million yen, and non-current assets rose 5,146 million yen.
The increase in current assets chiefly reflected an increase of 10,115 million yen in trade andother receivables. The increase was partially offset by a decrease of 12,378 million yen in
cash and cash equivalents and other factors. Non-current assets climbed mainly due toincreases in goodwill of 1,623 million yen and in intangible assets of 1,563 million yen.
Liabilities increased 183 million yen compared to the end of the previous fiscal year. Current
liabilities increased 9,222 million yen while non-current liabilities decreased 9,038 million yen.
The rise in current liabilities, income taxes payable decreased by 5,206 million yen. Bonds
and loans payable increased 18,810 million yen in current liabilities and decreased 10,116
million yen in non-current liabilities.
Equity increased 6,230 million yen from the end of the previous fiscal year. This was mainly
due to an increase of 268 million yen in retained earnings resulting from the payment of
9,101 million yen in dividends from surplus and the recording of 9,369 million yen in quarterly
income attributable to owners of the parent, and an increase of 5,383 million yen in othercomponents of equity due to the effect of exchange rate fluctuations.
As of March 31,2023

As of June 30,
2023

Ratio of operating profit to sales

3.4％

4.5％

Ratio of Adjusted EBITDA to sales

6.1％

5.8％

Current ratio

120.8％

117.0％

Fixed ratio

110.4％

109.5％

Equity attributable to owners of the parent
Ratio

34.7％

35.5％

0.30

0.34

Total assets (million yen)

488,728

495,142

Equity attributable to owners of the parent(million yen)

169,670

175,739

Debt(excluding lease)/equity ratio-6-Cash and cash equivalents at end of period(million yen)

101,233

88,854

EBITDA (million yen)

73,06921,782Adjusted EBITDA (million yen)

75,277

19,014

2．Business and financial issues to address
The three months ended June 30, 2023 saw no significant change in business and financial
issues that the Group should address.

3．Consolidated Cash Flows
Cash and cash equivalents (hereinafter "capital") as of June 30, 2023 was 88,854 million
yen, down 12,378 million yen from the end of the previous consolidated fiscal year.
Presented below are an overview of cash flows for the three months ended June 30, 2023
and main factors behind them.

(Cash flow from operating activities)
Capital generated by operating activities was 4,564 million yen (as compared to 9,975
million yen generated in the same period of the previous fiscal year). Major factors were a
profit before tax of 14,617 million yen and depreciation and amortization of 7,107 million
yen, among other cash inflows, and income taxes paid of 15,323 million yen and adecrease in unpaid bonuses of 9,877 million yen, among other cash outflows.

(Cash flow from investing activities)
Capital used as a result of investing activities was 3,977 million yen (as compared to 5,867
million yen used in the same period of the previous fiscal year). This was mainly due tospending of 2,851 million yen on the purchase of intangible assets.

(Cash flow from financing activities)
Capital used as a result of financing activities was 5,040 million yen (as compared to
12,280 million yen used in the same period of the previous fiscal year). This was mainly
caused by repayments of short-term borrowings of 78,359 million yen, spending of 10,000
million yen for the redemption of bonds payable and 8,985 million yen in dividend
payments, partially offset by proceeds from short-term borrowings of 96,741 million yen.

-7-

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

As of March 31,2023

As of June 30,
2023

Cash and cash equivalents

95,933

101,233

88,854

Trade and other receivables

158,857

162,853

172,968

Contract assets

19,07723,533

22,633

Other financial assets

94

78

232

Other current assets

8,032

13,74818,024

Total current assets

281,995

301,445

302,713

320

309

330

4,230

3,937

4,397

9,989

9,229

8,976

Right-of-use assets

28,39928,16828,032

Goodwill

63,941

58,46560,088Intangible assets

35,76235,25036,814

Investments accounted for using equity

2,771

4,729

5,024

Other financial assets

22,17523,464

24,766

Deferred tax assets

18,46023,41023,678

204

317

320

Total non-current assets

186,255

187,283

192,429

Total assets

468,251

488,728

495,142

AssetsCurrent assets

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

methodOther non-current assets-8-

(Condensed Consolidated Balance Sheet)(in millions of yen)
Date of Transition(April 1, 2022)

As of March 31,2023

As of June 30,2023

Trade and other payables

87,103

93,68897,552

Bonds and borrowings

14,96821,17439,985

Lease liabilities

13,63014,005

13,637

Liabilities and equity
Liabilities
Current liabilities

Other financial liabilities
Income taxes payable
Provisions

836

989

571

10,745

10,535

5,329

787

1,588

1,449

4,951

6,596

7,530

Other current liabilities

92,854

100,972

92,717

Total current liabilities

225,877

249,552

258,774

Bonds and borrowings

40,00030,11720,001

Lease liabilities

12,622

12,81313,065

737

809

883

Provisions

4,492

4,660

4,723

Deferred tax liabilities

3,919

4,394

4,938

Contract liabilities

Non-current liabilities

Other financial liabilities

Other non-current liabilities

3,126

2,850

2,997

Total non-current liabilities

64,89955,64746,608

290,777

305,199

305,383

Share capital

17,47917,47917,479

Capital surplus

12,11012,272

5,100

Retained earnings

141,880

154,926

155,194

Treasury shares△10,351△19,459△11,871

Total liabilities
EquityOther components of equity
Total equity attributable to owners of parent

4,290

4,452

9,835

165,409

169,670

175,739

Non-controlling interests

12,064

13,85914,020Total equity

177,474

183,529

189,759

468,251

488,728

495,142

Total liabilities and equity-9-(2) Condensed Consolidated Income Statements and Condensed Comprehensive Income
Statement(Condensed Consolidated Income Statement)(in millions of yen)Three months ended June 30,
2022
2023
Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income

300,467

328,703△230,927△253,599

69,53975,103△52,113△60,888

63

517

Other expenses

△53

△56

Operating profit

17,436

14,675

Finance income

321

399

Finance costs

△290

△486

43

30

Profit before tax

17,51014,617

Income tax expense△5,869△4,883

Profit11,641

9,734

11,139

9,369

Share of profit of investments accounted forusing equity method

Profit attributable to
Owners of parent
Non-controlling interests

501

365

11,641

9,734

Basic earnings per share

48.44

41.38

Diluted earnings per share

48.26

41.09

ProfitEarnings per share- 10 -

(Condensed Consolidated Comprehensive Income Statement)(in millions of yen)Three months ended June 30,
2022
Profit2023
11,641

9,734

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value△297

through other comprehensive income
Remeasurements of defined benefit plans

549

0

△76

△297

473

Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that will not be reclassified to
profit or loss
Items that may be reclassified to profit or loss
Cash flow hedges△1

Exchange differences on translation of foreign

2,476

operations
Share of other comprehensive income of

－
4,672
264

investments accounted for using equity

139

methodTotal of items that may be reclassified to profit

2,614

or loss
Other comprehensive income, net of tax
Comprehensive income

4,937

2,317

5,410

13,95815,145

13,431

14,753Comprehensive income attributable to
Owners of parent
Non-controlling interests

527

392

Comprehensive income

13,95815,145- 11 -

（３）Condensed Consolidated Statement of Changes in Equity
Three months ended June 30, 2022
(Millions of yen)
Equity attributable to owners of parent

Share capital

Balance at beginning of period

CapitalsurplusRetainedearnings

TreasurysharesOther components ofequityExchangedifferencesonCash flowtranslation
hedgesof foreign
operations-

17,47912,110141,880△10,351

Profit--11,139---Other comprehensive income

-

-

-

-

2,590

△1

Comprehensive income

△3

-

-

11,139

-

2,590

△1

Disposal of treasury shares

-

3

-

29

-

-

Dividends--△5,072

-

-

-

-

277

-

-

-

-

-

△68

-

-

-

-

-

-

124

-

-

-

-

212

△4,94829--

17,47912,322148,071△10,3222,590△4

Share-based paymenttransactions
Changes in ownership interestin subsidiaries
Transfer from othercomponents of equity toretained earnings
Total transactions with owners
Balance at end of period

Equity attributable to owners of parent
Other components of equity
Financialassetsmeasured
at fairvaluethroughothercomprehensiveincomeRemeasurements ofdefinedbenefit
plans

4,309

△16

4,290

165,409

12,064

177,474---

11,139501

11,641

△297

0

2,291

2,291

26

2,317

△297

0

2,291

13,431

527

13,958

Disposal of treasury shares

-

-

-

33

-

33

Dividends---△5,072△248△5,321

-

-

-

277

-

277

-

-

-

△68

-

△68

△124

-

△124

-

-

-

Total transactions with owners

△124

-

△124

△4,830△248△5,079Balance at end of period

3,887

△15

6,457

174,00912,343

186,353

Balance at beginning of period
ProfitOther comprehensive income
Comprehensive income

Share-based paymenttransactions
Changes in ownership interestin subsidiaries

Noncontrollinginterests

Total

Total

Total

Transfer from othercomponents of equity toretained earnings- 12 -

Three months ended June 30, 2023
(Millions of yen)
Equity attributable to owners of parent

Share capital

Balance at beginning of period

CapitalsurplusRetainedearnings

Other components ofequityExchangedifferencesonCash flowtranslation
hedgesof foreign
operations

Treasuryshares17,47912,272

154,926△19,459

150-

Profit

-

-

9,369

-

-

-

Other comprehensive income

-

-

-

-

4,910

-

-

-

9,369

-

4,910

-

-

14

-

59

-

-

Cancellation of treasury shares-△7,528

-

7,528

-

-

Dividends--△9,101

-

-

-

-

451

-

-

-

-

-

△108

-

-

-

-

-

-

0

-

-

-

-

△7,171△9,101

7,588

-

-

17,4795,100

155,194△11,871

5,060-

Comprehensive income
Disposal of treasury shares

Share-based paymenttransactions
Changes in ownership interestin subsidiaries
Transfer from othercomponents of equity toretained earnings
Total transactions with owners
Balance at end of period

Equity attributable to owners of parent
Other components of equity

Balance at beginning of period
ProfitOther comprehensive income
Comprehensive income

Financialassetsmeasured
at fairvaluethroughothercomprehensiveincomeRemeasurements ofdefinedbenefit
plans

4,287

14

Noncontrollinginterests

Total

Total

Total

4,452

169,670

13,859183,529

-

-

-

9,369

365

9,734

549

△76

5,383

5,383

27

5,410

549

△76

5,383

14,753392

15,145

Disposal of treasury shares

-

-

-

73

-

73

Cancellation of treasury shares

-

-

-

-

-

-

Dividends---△9,101△242△9,343

-

-

-

451

-

451

-

-

-

△108

11

△97

△0

-

△0

-

-

-

Share-based paymenttransactions
Changes in ownership interestin subsidiaries
Transfer from othercomponents of equity toretained earnings- 13 -

Total transactions with owners
Balance at end of period

△0

-

△0

△8,684△231△8,915

4,836

△61

9,835

145,739

14,020189,759（4）Condensed Quarterly Consolidated Statements of Cash Flows(Millions of yen)Three months ended
June 30, 2022

Three months ended
June 30, 2023

Cash flows from operating activities
Profit before tax

17,51014,617

Depreciation and amortization

7,485

7,107

Decrease (increase) in trade and other receivables

8,018△6,348

Increase (decrease) in trade and other payables△1,511

1,695

Decrease (increase) in contract assets△1,802

1,839

Decrease (increase) in prepaid expenses△924△2,288

Increase (decrease) in accrued consumption taxes
Increase (Decrease) in accrued bonus
Increase (Decrease) in accrued paid vacation

2,651

2,312

△9,367△9,877

1,361

1,387

Other
Subtotal

997

261

24,41910,708Interest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities

205

331

△155

△280

△14,494△15,323

9,975△4,564

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investments
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

△968

△900

△2,320△2,851

△30

△297

△633

－

△1,453

－

△461

72

△5,867△3,977(Millions of yen)Three months ended
June 30, 2022

Three months ended
June 30, 2023

Cash flows from financing activities
Proceeds from short-term borrowings－

96,741

Repayments of short-term borrowings△847△78,359

Repayments of long-term borrowings△2,330△178

Repayments of lease liabilities△3,760△4,094－△10,000△5,042△8,985

Redemption of bonds
Dividends paid
Other

△298

△165

Net cash provided by (used in) financing activities△12,280△5,040Net increase (decrease) in cash and cash equivalents△6,984△12,378

Cash and cash equivalents at beginning of period

95,933

101,233

1,188

1,204

88,94988,854

Effect of exchange rate changes on cash and cash
equivalents
Cash and cash equivalents- 14 -

（５）Changes in Accounting Policies
Notes on Going Concern Assumption
Not applicable.

- 15 -

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 reportablesegment to evaluate performance and determine the distribution of management resources.
The Group aims to enhance its ability to formulate and pursue strategies, clarify
responsibilities, make agile management decisions in response to rapidly changing businessenvironments, and achieve further growth. To this end, the Group has five reportable segments:
Staffing, BPO, Technology, Career and Asia Pacific.
(Changes in reportable segments)
The Group changed its management structure on April 1, 2023. Reflecting the change, the fivereportable segments in the segment information have changed from Staffing, Career,
Professional Outsourcing, Solution, and Asia Pacific to Staffing, BPO, Technology, Career, andAsia Pacific.
The segment information for the first three months of the previous fiscal year has been
restated based on the new reportable segments.
(2) Information of reportable segments
Profit in reportable segments is adjusted EBITDA (operating profit + depreciation (excluding
the 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.

For Three months ended June 30 2022
(Millions of yen)
Reportable Segment

Other

CareerAsia
Pacific

Total

Total

Adjustme Consolida
nts*2
ted

4,875 300,469△1 300,467*1

Staffing

BPO

Technolog
y132,051

26,695

19,37023,586

93,889295,594

1,479

1,436

1,636

612

1

5,165

133,530

28,13221,00624,19893,891

300,759

7,373 308,132

9,319

4,216

1,343

5,872

2,152

22,905△206

Revenue
Revenue fromexternalcustomers
Intersegment
revenue
Total
Segment profit(loss)
Depreciation(excluding
depreciation ofright-of-use
assets)Increase/decreasein accrued paidleave
Share-based
payment
expenses

2,497

7,662

22,698△7,662－△7,664 300,467△19

22,678

3,454

1,520

277

Other income

63

Other expenses

53

Operating profit

17,436- 16 -

Share of profit(loss) ofinvestments
accounted forusing equity
method43

Finance income

321

Finance costs

290

Profit before tax

17,510For Three months ended June 30 2023
(Millions of yen)
Reportable Segment

Other

*1

Total

Staffing

BPO

TechnologyCareerAsia
Pacific

Total

143,319

24,85821,86331,333102,269

323,644

1,474

1,661

1,997

569

－

5,702

144,793

26,52023,861

31,902102,269

329,347

8,036 337,383

9,385

1,657

759

6,645

2,595

21,042△502

Adjustme Consolida
nts*2
ted

Revenue
Revenue fromexternalcustomers
Intersegment
revenue
Total
Segment profit(loss)
Depreciation(excluding
depreciation ofright-of-use
assets)Increase/decreasein accrued paidleave
Share-based
payment
expenses

5,057 328,702

2,978

8,681

20,5401 328,703△8,681－△8,679 328,703△1,52519,014

2,962

1,387

449

Other income

517

Other expenses

56

Operating profit

14,675

Share of profit(loss) ofinvestments
accounted forusing equity
method30

Finance income

399

Finance costs

486

Profit before tax

14,617(Notes)1. Other is a business segment that includes operations that are not included in reportable segments, including
operations related to the 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 humanresources, and the creation of new businesses through incubation programs.

- 17 -

2. Adjustments are as follows:(Segment profit (loss))(Millions of yen)Three months ended June 30
2022

Three months ended June 30
2023

△354

△421

Corporate revenue*1

3,209

2,394

Corporate expenses*2△2,875△3,498Total△19△1,525

Elimination of inter-segment
transactions*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- 18 -

(Net Profit per Share)

The net profit per share and diluted earnings per share are as follows:(First three-month period)First three-month period ofprevious fiscal year (April 1,
2022 - June 30, 2022)
Profit attributable to owners of parent (million yen)First three-month period ofcurrent fiscal year (April 1,
2023 - June 30, 2023)

11,139

9,369

－

－

Profit used to calculate diluted earnings per share(million yen)

11,1399,369

Weighted average number of common shares(thousand shares)

229,968

226,419

872

1,590

230,841

228,009

Basic earnings per share (yen)

48.44

41.38

Diluted earnings per share (yen)

48.26

41.09

Adjustment to profit for the period (million yen)

Increase in number of common shares
Share-based compensation (thousand shares)
Weighted average number of diluted ordinary
shares (thousand shares)- 19 -

(Subsequent Events)(Stock split and a revision to the Articles of Incorporation related to the stock split)
The Company resolved at the meeting of the Board of Directors held on August 10,
2023, to split its stock and partially revise its Articles of Incorporation.
(1) Purpose of the stock split
The purpose of the stock split is to reduce the amount per investment unit,
thereby improving the liquidity of the Company's shares and having a broader
range of shareholders.

(2) Overview of the stock split(i) Method of the stock split
The Company will split the shares of common stock owned by theshareholders listed or recorded on the final register of shareholders as of
Saturday, September 30, 2023 (virtually Friday, September 29, 2023), therecord date, in the proportion of ten shares for one share.

(ii) Number of shares to be increased by the split(i) Number of issued shares before
the stock split(ii) Increase in the number of issued
shares after the stock split(iii) Total number of shares issued
after the stock split(iv) Number of shares issuable after
the stock split

233,199,861 shares
2,098,798,749 shares
2,331,998,610 shares
7,200,000,000 shares(iii) Schedule of the split(i) Date of public notice of record date(ii) Record date(iii) Effective date

September 13, 2023 (Wed)
September 30, 2023 (Sat)
October 1, 2023 (Sun)(3) Impact on per-share information
Below is per-share information for the previous consolidated fiscal year and thecurrent consolidated fiscal year based on the assumption that the stock split had
been executed at the beginning of the previous consolidated fiscal year.
15th term
For the three months ended
June 30, 2022

16th term
For the three months ended
June 30, 2023

4.84

4.14

4.83

4.11

Basic earnings per share(yen)
Diluted earnings per share(yen)(4) Partial amendment of the Articles of Incorporation(i) Reasons for the amendment- 20 -

In response to the above share split, the Company intends to revise the total
number of authorized shares described in Article 6 of its Articles ofIncorporation effective Sunday, October 1, 2023, in accordance with theprovisions of paragraph (2), Article 184 of the Companies Act.

(ii) Details of amendments
The amendments are as follows.
(The underlined parts are the amendments)
Current Articles of Incorporation
Article 6 (Total Number of Shares
Authorized to be Issued)
The total number of authorized shares of
the Company shall be 720,000,000.

After revision
Article 6 (Total Number of Shares
Authorized to be Issued)
The total number of authorized shares of
the Company shall be 7,200,000,000.

(iii) Schedule for the amendment
Effective date of the amendment of the Articles of Incorporation: October 1,
2023 (Sun)(5) Other
The above share split will not result in a change to the amount of common stock.

- 21 -

(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 existing at the date oftransition to IFRSs contains a lease. Applying this exemption, the Group has assessed
whether the contract contains a lease on the basis of facts and circumstances existing atthat 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

22

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 exemptions under IFRS 1IFRS 1 prohibits retrospective application of IFRS in relation to estimates,
derecognition of financial assets and financial liabilities, hedge accounting, noncontrolling interests, classification and measurement of financial products, etc. The
Group has been applying these items from the date of transition onwards.

23

(3) Adjustments table
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)
Line items underJapanese GAAP

Japanese
GAAP

Impact ofchange inaccounting
periodReclassification

Differences inrecognition
andmeasurement

IFRS

AssetsMillion of
Yen

Million of
Yen

Million of Yen

Million of Yen

Millionof Yen

Notes

AssetsCurrent assets
Cash anddeposits

Line items underJapanese IFRSs

Current assets
107,545△11,524△88－

95,933

1

Cash and cash
equivalents

Notes andaccounts
receivable trade150,173

7,390

1,294

－

158,857

3,4

Trade andotherreceivables

Contarct assets

18,658

4,649△4,230－19,077Work in process

333

－

△333

－

－

2

－

－

94

－

94

1,3

Other financial
assetsOther

10,74020△1,519△1,208

8,032

2

Other current
assetsAllowance for
doubtfulaccounts

△554

1

552

－

－

4

Total current
assets286,897537△4,230△1,208281,995

Contract
assetsTotal current
assetsNon-current
assetsNon-current assets

Property, plantand equipment

Intangible assets

Trade and otherreceivables

－

－

308

12

320

－

－

4,230

－

4,230

13,414254△ 4,820

1,140

9,989

－

－

4,820

23,57928,39917

Right-of-use
assets95,1293,112△ 34,300－

63,941

15

Goodwill－－

34,3001,462

35,762

14

Intangible
assets24

4,6Contract
assetsProperty,plant andequipment

Investments
accounted forusing equity
method

－

－

2,771

－

2,771

5

Investment
securities

8,664

126

7,432

5,951

22,175

5,6,16

Other financial
assetsDeferred tax
assets10,324

10

－

8,125

18,460

12

Deferred tax
assetsOther

12,208199△12,193

△9

204

6

Allowance for
doubtfulaccounts△1,527

△153

1,681

－

－

4

Total noncurrent
assets138,213

3,549

4,230

40,261

186,255

425,110

4,087－

39,052

468,251

Total assets

Other noncurrent assets

Total noncurrent
assetsTotal assets
Liabilities andequityLiabilities

Liabilities

Current liabilities

Current liabilities

Short-termborrowings

Bonds andborrowings

162

824

13,998△16

14,9687

11,304

2,694△13,998

－

－

7

－

－

1,608

12,021

13,6309,17Lease liabilities

Accounts
payable - trade

630

△45

86,587△68

87,1038,9Trade andother
payablesAccounts
payable - other

81,813

6,649△88,462

－

－

8

－

－

815

21

836

8

11,211△465－－

10,745

714

73

－

－

787

－

－

4,951

－

4,951

Accruedconsumption
taxes

17,432

0△17,431－－

9

Provision forbonuses

17,847△497△17,350

－

－

9

71

△45

△25

－

－

9

Other

26,706928

29,30735,911

92,854

Total current
liabilities

167,893

10,115－47,868225,877

Current portionof long-termborrowings

Income taxes
payableOther provisions

Provision forbonuses for
directors (andother officers)

25

Other
financialliabilities
Income taxes
payableProvisions
Contract
liabilities

8,9,18Other current
liabilities
Total current
liabilities

Non-current
liabilities

Non-current
liabilities
Bonds andborrowings

10,000－30,000－40,00030,000－△30,000

－

－

1,997

△16

－

10,642

12,622

17

Lease liabilities

－

－

9

727

737

8,11

Other
financialliabilities

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 forshare awards

810

1

△811

－

－

11

Provision forshare awards
for directors(and otherofficers)

835

0

△836

－

－

11

Other provisions

81

0

△81

－

－

11

1,239

43

2,157

△313

3,126

52,8501,225－

10,82464,899220,743

11,340－58,693

290,777

Bonds payable
Long-term
borrowings
Lease liabilities

Other
Total noncurrent
liabilities
Total liabilities

11,18

Other noncurrent
liabilities
Total noncurrent
liabilities
Total liabilities

Net assets

EquityShare capital

17,479－－－17,479

Share capital

Capital surplus

19,168△5,9740△1,083

12,110Capital surplus

158,282△918－△15,483

141,880

Treasury shares△10,351－－－△
10,351

Total
accumulated
othercomprehensive
income△1,5307,609－△1,7884,290

Retainedearnings

Shareacquisitionrights183,048716

0△18,356

165,409

0

－

0

－

－

26

16,19

Retainedearnings
Treasuryshares

13,16

Other
componentsof equity
Total equity
attributable toowners ofparent21,317△7,969－△1,283

12,064

Noncontrollinginterests

Total net assets

204,367△7,252－△19,640

177,474

Total equity

Total liabilities andnet assets

425,110

4,087－

39,052

468,251

Total liabilities
and equity

Non-controllinginterests

27

Reconciliations of equity as of transition date (June 30, 2022)
Line items underJapanese GAAP

Japanese
GAAP

Impact ofchange inaccounting
periodReclassification

Differences inrecognition
andmeasurement

IFRS

Notes

Line items underJapanese IFRSs

AssetsAssetsCurrent assets

Current assets

Cash and deposits

92,272△2,461△862－

88,9491

Cash and cash
equivalents

Notes and accounts
receivable - trade148,343

2,387

1,592

－

152,3233,4Trade and otherreceivables

Contarct assets

26,201△794△4,521－

20,885Work in process

836

－

△836

－

－

2

－

－

868

375

1,243

1,3

Other financial assets

Other

12,652△297△1,378△1,2029,772

2

Other current assets

Allowance for
doubtful accounts

△534

△81

616

－

－

4

279,771△1,247△4,521△827

273,174

Total current assets

Contract assets

Total current assets

Non-current assets

Non-current assets
Trade and otherreceivables

－

－

316

13

329

－

－

4,521

－

4,521

Contract assets

13,047

1,901△5,438981

10,492

Property, plant andequipment

－

－

5,438

22,57428,01217

Right-of-use assets

98,384547△34,978

1,765

65,71915

Goodwill－－

34,9781,510

36,488

14

Intangible assets

－

－

2,917

36

2,953

5

Investments
accounted for using
equity method

Investment securities

8,633

167

7,055

5,548

21,405

5,6,16

Other financial assets

Deferred tax assets

8,060

61

－

10,54018,662

12

Deferred tax assets

Other

12,14871△12,007

△46

165

6

Other non-current
assetsAllowance for
doubtful accounts△1,684

△34

1,718

－

－

4

138,590

2,715

4,521

42,924

188,752

418,362

1,468－

42,096

461,926

Property, plant andequipment

Intangible assets

Total non-current
assetsTotal assets

4,6

Total non-current
assetsTotal assets
Liabilities and equity

Liabilities

Liabilities

Current liabilities

Current liabilities
986

△794

21,828381

22,401

7

Current portion ofbonds payable

10,000－△10,000－－

7

Current portion of
long-term borrowings

14,001△2,172△11,828－－

7

Short-term borrowings

28

Bonds andborrowings

－

－

1,925

11,661

13,5879,17

Lease liabilities

Accounts payable trade547

085,885△173

86,2598,9Trade and otherpayablesAccounts payable other

84,838

1,910△86,749

－

－

8

－

－

564

－

564

8

5,586

△1,265

－

2,022

6,343

787

16

－

－

804

－

－

5,782

－

5,782

Accrued consumption
taxes

19,642504△20,147－－

9

Provision for bonuses

8,116

△93

△8,023－－

9

Provision for bonuses
for directors (andother officers)

19

－

△19

－

－

9

Other

26,680536

20,78237,00985,008

Total current liabilities

171,208△1,357－50,901

220,751

Income taxes payable
Other provisions

Other financial
liabilities
Income taxes
payableProvisions
Contract liabilities

8,9,18Other current liabilities
Total current
liabilities

Non-current liabilities

Non-current liabilities
Bonds andborrowings－－

30,004－30,004Long-term borrowings

30,004－△30,004－－

Lease liabilities

1,978

530

－

10,102

12,611

17

Lease liabilities

－

－

12

807

820

8,11

Other financial
liabilities

Asset retirement
obligation

4,522

△22

0

－

4,500

10

Provisions

Deferred tax liabilities

4,185

△176

－

△350

3,658

12

Deferred tax
liabilities

Retirement benefit
liability

454

28

△482

－

－

11

Provision for shareawards

887

1

△888

－

－

11

Provision for shareawards for directors(and other officers)

903

0

△904

－

－

11

Other provisions

56

－

△56

－

－

11

1,381

21

2,319

△496

3,227

44,374383－

10,06354,821

215,582△973－

60,964

275,573

Bonds payable

Other
Total non-current
liabilities
Total liabilities

11,18

Other non-current
liabilities
Total non-current
liabilities
Total liabilities

Net assets

Equity－－17,479

Share capital

－

0

△802

12,322

Capital surplus

163,479△872－△14,535

148,071△10,321－－0△10,322

Share capital

17,479

Capital surplus

13,124Retained earnings
Treasury shares

－

29

16,19

Retained earnings
Treasury sharesTotal accumulated
other comprehensive
incomeOther componentsof equity

5,402

3,259

－

△2,204

6,457

189,1642,386

0△17,542

174,009

0

－

0

－

－

13,61454－△1,325

12,343

Non-controllinginterests

Total net assets

202,779

2,441－△18,868

186,353

Total equity

Total liabilities and net
assets418,362

1,468－

42,096

461,926

Total liabilities andequityShare acquisitionrightsNon-controllinginterests

30

13,16

Total equity
attributable toowners of parent

Reconciliations of equity as of transition date (March 31, 2023)
Line items underJapanese GAAP

Japanese
GAAP

Impact ofchange inaccounting
periodReclassification

Differences inrecognition
andmeasurement

IFRS

Notes

Line items underJapanese IFRSs

AssetsAssetsCurrent assets

Current assets

Cash and deposits

99,757

1,553

△77

－

101,233

1

Cash and cash
equivalents

Notes and accounts
receivable - trade

160,980

△9

1,881

－

162,8533,4Trade and otherreceivables

Contarct assets

25,951

1,519△3,937－23,533Work in process

384

－

△384

－

－

2

－

－

78

－

78

1,3

Other financial assets

Other

17,780△351△2,124△1,556

13,748

2

Other current assets

Allowance for
doubtful accounts

△572

△53

626

－

－

4

304,281

2,658△3,937△1,556

301,445

Total current assets

Contract assets

Total current
assetsNon-current assets

Non-current assets
Trade and otherreceivables

－

－

309

－

309

－

－

3,937

－

3,937

Contract assets

14,849△319△5,803503

9,229

Property, plant andequipment

－

－

5,803

22,364

28,16817

Right-of-use assets

86,320△845△33,632

6,623

58,465

15

Goodwill－－

33,632

1,617

35,25014Intangible assets

－

－

4,542

187

4,729

5

Investments
accounted for using
equity method

Investment securities

12,058

△121

5,681

5,846

23,464

5,6,16

Other financial assets

Deferred tax assets

13,741

33

－

9,634

23,410

12

Deferred tax assets

Other

12,535△10△12,162

△44

317

6

Other non-current
assetsAllowance for
doubtful accounts△1,627

△2

1,629

－

－

4

137,877△1,266

3,937

46,734

187,283

442,159

1,392－

45,177

488,728

Property, plant andequipment

Intangible assets

Total non-current
assetsTotal assets

4,6

Total non-current
assetsTotal assets
Liabilities and equity

Liabilities

Liabilities

Current liabilities

Current liabilities

Short-term borrowings

11,361△247

10,060－21,174

7

Current portion ofbonds payable

10,000－△10,000

－

－

7

60

0

△60

－

－

7

Current portion of
long-term borrowings

31

Bonds andborrowings

－

－

1,937

12,06814,005

9,17

Accounts payable trade

602

△15

93,101093,6889Accounts payable other

91,934

3,233△95,167

－

－

8

－

－

989

－

989

8,9

Income taxes payable

11,418△883－－

10,535

Income taxes
payableOther provisions

1,535

52

－

－

1,588

Provisions

－

－

6,596

－

6,596

Contract liabilities

Accrued consumption
taxes

18,967△40△18,927－－

9

Provision for bonuses

19,868△866△19,001－－

9

Provision for bonuses
for directors (andother officers)

129

91

△221

－

－

9

Other

29,541

1,123

30,69339,614

100,972

Total current liabilities

195,4212,448－

51,682249,552

8,9,18

Lease liabilities
Trade and otherpayablesOther financial
liabilities

Other current liabilities
Total current
liabilities

Non-current liabilities

Non-current liabilities
Bonds andborrowings－－

30,117－30,117Long-term borrowings

30,1160△30,117－－

Lease liabilities

3,421

△175

－

9,567

12,813

17

Lease liabilities

－

－

15

793

809

8,11

Other financial
liabilities

Asset retirement
obligation

4,659

1

－

－

4,660

10

Provisions

Deferred tax liabilities

4,018

348

－

27

4,394

12

Deferred tax
liabilities

Retirement benefit
liability

311

22

△333

－

－

11

Provision for shareawards1,085

0△1,086－－

11

Provision for shareawards for directors(and other officers)

1,104

0

△1,104

－

－

11

45

－

△45

－

－

11

1,242

24

2,553

△969

2,850

46,005

223

－

9,418

55,647

241,426

2,671－

61,100305,199

Bonds payable

Other provisions
Other
Total non-current
liabilities
Total liabilities

11,18

Other non-current
liabilities
Total non-current
liabilities
Total liabilities

Net assets

EquityShare capital

17,479－－－17,479

Share capital

Capital surplus

13,455△17

0△1,167

12,272

Capital surplus

Retained earnings

168,890△2,481－△11,481

154,926

Treasury shares△19,459－－

0△19,45932

19

Retained earnings
Treasury sharesTotal accumulated
other comprehensive
incomeOther componentsof equity

5,150

1,141

－

△1,8404,452

185,517△1,3570△14,489

169,670

0

－

0

－

－

15,21477－△1,433

13,859Total net assets

200,732△1,279－△15,923

183,529

Total equity

Total liabilities and net
assets442,159

1,392－

45,177

488,728

Total liabilities andequityShare acquisitionrightsNon-controllinginterests

33

13,16

Total equity
attributable toowners of parent

Non-controllinginterests

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

34

"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

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
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."(19) Reconciliation of retained earnings(million yen)
Date of Transition(April 1, 2022)
Deferred tax assets and deferred
tax liabilities

9,828

36

As of June 30,
2022
9,903

As of March 31,
2023
11,133

(million yen)
Date of Transition(April 1, 2022)

As of June 30,2022

As of March 31,
2023

Transfer of cumulative translationdifferences related to foreignsubsidiaries

5,090

5,090

5,090

Intangible assets with anindefinite useful life

2,354

2,400

2,536

－

1,758

6,675

1,402

1,566

1,465

47

-44

-206

-35,894-36,983-39,614

1,686

1,771

1,435

-15,483-14,535-11,481Goodwill
Financial assets measured at fairvalue through othercomprehensive income
Leasing
Accrued paid leave
Other
Total

37

Reconciliations of profits/losses and comprehensive income for the three months ended
June 30, 2022
(million yen)Account underJapanese GAAP

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Net sales

284,100

16,367－－300,467

Cost of sales

215,398

14,735-16

810

230,927

Gross profit

68,702

1,631

16

-810

69,539Selling, general andadministrative
expenses

Revenue(4)(2)(3)

1,413

-170

-1,337

52,113

－

－

63

－

63

－

－

53

－

53

16,495

217

196

526

17,436

Non-operating
income

850

-384

-465

－

－

(1)

Non-operating
expenses

100

38

-139

－

－

(1)

Ordinary profit

17,244-205 -17,039－－

Extraordinary
income

136

-5

-130

－

－

(1)

Extraordinary loss

142

－

-142

－

－

(1)

－

－

329

-8

321

－

－

219

71

290

(4)()

Selling,
general andadministrative
expenses(1)

Other income

(1)

Other
expenses
Operatingprofit(1)

Finance
income(1)(4)

Finance costs(1)

Share of profit
of investments
accounted forusing equity
method

－

－

8

34

43

Profit before income
taxes

17,238

-210

－

482

17,510

Income taxes current

3,341

864

1,955

-292

5,869

(5)

Income taxes deferred

2,921

-965

-1,955－－(5)Net profit

10,975

-109

－

775

11,641

38

Cost of sales
Gross profit

52,207

Operating profit

Presentation
under IFRSProfit before
tax
Income tax
expenseProfit(million yen)Account underJapanese GAAP

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Other
comprehensive
incomePresentation
under IFRS

Other
comprehensiv
e income
Items that will
not bereclassified to
profit or loss

Valuationdifference on
available-for-salesecurities

Retirement benefit
adjustments

-0

－

－

－

－

-297

－

0

-297

0

(4)

Financialassetsmeasured atfair value
throughothercomprehensi
ve income(6)

Remeasurements ofdefinedbenefit plans
Items that
may bereclassified to
profit or loss

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Share of othercomprehensive
income of entities
accounted forusing equity
method

－

7,276

93

－

-4,811

46

－

-1

－

11

－

－

-1

Cash flow
hedges2,476

Exchangedifferencesontranslationof foreign
operations

(7)

139

Share ofothercomprehensi
ve income ofinvestments
accounted
for usingequitymethodTotal othercomprehensive
income7,369-4,765

－

-286

2,317

Other
comprehensiv
e income, netof taxComprehensive
income18,345-4,875－488

13,958Comprehensiv
e income

39

Reconciliations of profits/losses and comprehensive income for the fiscal year ended
March 31, 2023

(million yen)Account underJapanese GAAP

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Presentation
under IFRSNet sales

1,223,967

18,643－－

1,242,611

Cost of sales

941,323

17,371

-897

2,953

960,751

Gross profit

282,643

1,272

897

-2,953281,859

Selling,(2)(3) general and
225,479(4)(6) administrative
expenses

Selling, general andadministrative
expenses229,581

2,668

-655

-6,115

－

－

262

－

262

－

－

13,388499

13,888-1,396 -11,573

2,661

42,754

Revenue(4)

Gross profit(1)

Other income

(1)

Other
expenses
OperatingprofitOperating profit

53,061Non-operating
income

2,261

-108

-2,152－－(1)

Non-operating
expenses

1,630

205

-1,835－－(1)

Ordinary profit

53,693-1,710 -51,982－－

Extraordinary
income

290

-263

－

－

(1)

212 -13,479

－

－

(1)

570

(1)

Extraordinary loss

13,267

-26

－

－

598

-28

－

－

1,235

334

Cost of sales

Finance income

1,569 (1)(4) Finance costs
(1)

－

－

-689

183

-505

Share of profit
of investments
accounted forusing equity
methodProfit before income
taxes

40,716-1,950－2,482

41,249Profit before
tax

Income taxes current

20,121278-2,719-1,20816,471(5)

Income taxes deferred-2,241

-478

2,719

－

－

(5)

Net profit

22,835-1,750－3,691

24,77740

Income tax
expenseProfit(million yen)Account underJapanese GAAP

Impact of
Recognition
theJapanese
Reclassifi
andchange ofGAAP
cation measurementfiscal year
differences
end

IFRS

Notes

Other
comprehensive
incomePresentation
under IFRS

Other
comprehensive
incomeItems that will
not bereclassified to
profit or loss

Valuationdifference on
available-for-salesecurities

Retirement benefit
adjustments

12

－

－

－

－

－

158

31

170

31

(4)

Financialassetsmeasured atfair value
throughothercomprehensi
ve income(6)

Remeasurements ofdefinedbenefit plans
Items that may
be reclassified
to profit or loss

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Share of othercomprehensive
income of entities
accounted forusing equity
method

－

6,857

281

Total othercomprehensive
income7,151

Comprehensive
income29,987－-6,947-79-7,027-8,776

－

－

－

3

67

－

Cash flow
hedges

3

-22

(7)

Exchangedifferencesontranslation offoreign
operations

201

Share ofothercomprehensi
ve income ofinvestments
accounted
for usingequitymethod

－

260

384

Other
comprehensive
income, net of
tax

－

3,951

25,161

Comprehensive
income41

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.

42

(7) Exchange differences on translation of foreign operations
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.

43