For Immediate Release
November 11, 2022

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the Six Months Ended September 30, 2022
PERSOL HOLDINGS CO., LTD. (the Company) today announced its consolidated financial results
for the six months ended September 30, 2022.
Consolidated Operating Highlights
1) Financial Results

Net sales(In millions of yen, unless otherwise stated)
Six months ended September 30,% change
2021
2022
512,847
586,749
14.4

Operating profit

26,44830,716

16.1

EBITDA1

35,76041,971

17.4

Ordinary profit

27,27331,35815.0

Quarterly net profit2

15,384

18,78922.1

Quarterly net profit per share (yen)

66.84

81.52

-

Adjusted quarterly net profit

19,621

22,766

16.0

Adjusted EPS3 (yen)

85.24

98.77

15.9

Notes:
1. EBITDA = operating profit + depreciation + amortization of goodwill
2. Quarterly net profit attributable to owners of parent
3. Adjusted EPS = adjusted quarterly net profita/ (average number of shares during the period - number of treasury stock during theperiod)a.

Adjusted quarterly net profit = quarterly net profit attributable to owners of parent ± adjustment itemsb (excluding noncontrolling interests) ± tax reconciliation related to certain adjustment itemsb.

Adjustment items = amortization of intangible assets except goodwill by acquisitions + amortization of goodwill ± extraordinary
income/losses

4. Effective in the three months ended December 31, 2021, the accounting policy has been changed at a foreign subsidiary where theInternational Financial Reporting Standards (IFRS) are applied, based on the “Configuration or Customization Costs in a Cloud
Computing Arrangement (IAS No. 38)”, an agenda decision by the IFRS Interpretations Committee (IFRIC) that was announced in
April 2021. Accordingly, the values for the six months ended September 30, 2021 were corrected retroactively by reflecting the saidchange of the accounting policy.
5. Effective in the three months ended June 30, 2022, the Company and its consolidated subsidiaries in Japan changed accounting
method of asset retirement obligations. Accordingly, retroactive adjustments are reflected in the values for the same period of theprevious year.

2) Balance Sheet Data
(In millions of yen, unless otherwise stated)
As of March 31, 2022

As of September 30, 2022

Total assets

425,110433,335

Net assets

204,367

213,133

43.1

45.9

183,048

199,087

Equity ratio (%)
Equity capital
Note:

Effective in the three months ended June 30, 2022, the Company and its consolidated subsidiaries in Japan changed accounting
method of asset retirement obligations. Accordingly, retroactive adjustments are reflected in the values for the previous consolidated
fiscal year.

3) Dividend Status(In yen, unless otherwise stated)
Fiscal year ended/ending March 31,
2023

2022
Interim dividends

20.00

21.00

Year-end dividends

22.00

21.00 (Forecast)

Annual dividends

42.00

42.00 (Forecast)4) Consolidated Financial Forecast for the Fiscal Year Ending March 2023

Net sales(In millions of yen, unless otherwise stated)
Forecast for the fiscal year
% change from theending March 31, 2023
previous fiscal year
1,210,000
14.1

Operating profit

53,000

10.1

EBITDA

75,20012.0

Ordinary profit

53,000

7.1

Net profit1

30,500-4.4

Net profit per share (yen)132.37-

Adjusted profit

39,100-1.1

Adjusted EPS (yen)169.95-1.0

Notes:
1.

Net profit attributable to owners of parent

2.

Please refer to “ (1)Management Discussion and Analysis, ２ Financial Forecasts of the Fiscal Year Ending March 31, 2023” fordetails.

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.

(1) Management Discussion and Analysis
1. Result of Operations
PERSOL GROUP (the Group) provides a wide range of human resources (HR) related services;
temporary staffing and placement service as the core businesses in Japan and Asia-Pacific(APAC) region.
The business environment in Japan in the six months ended September 30, 2022 saw thefurther spread of COVID-19, but economic activities were recovering overall. The ratio of job
offers to job seekers (seasonally adjusted) in Japan was 1.34 in September 2022, showingthat demand for human resources continued to recover steadily. In the APAC region, theeconomic trend was generally one of recovery, with the exception of certain regions where
the impact of COVID-19 persisted. Concerning exchange rates, the US dollar and Australian
dollar both appreciated against the Japanese yen.
In this business environment, sales increased in all SBUs. As a result, consolidated net sales
were 586,749 million yen (increasing 14.4% year-on-year). Operating profit was 30,716
million yen (increasing 16.1% YoY), mainly reflecting an increase in the number of temporary
active staff in the Staffing SBU and an increase in sales in Career SBU, driven by brisk
corporate demand. Ordinary profit was 31,358 million yen (increasing 15.0% YoY) andquarterly net profit attributable to owners of parent company was 18,789 million yen(increasing 22.1% YoY).
Results by SBU (before inter-segment elimination) are as follows.

a. Staffing SBU
In this segment, the Group operates temporary staffing business, including mainly clericaland administrative staff dispatching and wide range of staffing service, BPO and placement
service mainly for administrative talents in Japan.
Sales for the six months ended September 30, 2022 were 302,856 million yen (increasing
8.4% YoY) and operating profit was 21,875 million yen (increasing 0.1％ YoY).
Sales increased because of strong results in terms of the number of temporary active staff
in the temporary staffing sector and demand in the BPO sector. Operating profit increased
as a result of the effect of increased sales, more than offsetting an increase in paid holidays
taken by temporary staff and an increase in personnel expenses and other costs.
b. 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 six months ended September 30, 2022 were 49,070 million yen (increasing
40.4% YoY) and operating profit was 8,492 million yen (increasing 166.0% YoY).
Sales in the placement business and job recruitment media business increased due to strong
corporate demand. Operating profit increased significantly on stronger sales, offsetting therise in costs that resulted from marketing investment and enhancement of hiring activities,
which were aimed at achieving future growth.

c. Professional Outsourcing SBU
In this segment, the Group operates manufacture and development outsourcing business in
IT and engineering areas and temporary staffing business specialized in engineers
dispatching.
Sales for the six months ended September 30, 2022 were 64,090 million yen (increasing
11.0% YoY) and operating profit was 3,674 million yen (increasing 31.0% YoY).
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 profit increased due to the effect of increased sales.
d. Solution SBU
In this segment, the Group provides digital solution services for hiring talents and managing
human resources and creates new businesses through incubation programs.
Sales for the six months ended September 30, 2022 were 7,266 million yen (increasing
46.6% YoY) and the operating loss was 2,077 million yen (the operating loss was 1,565
million yen for the same period of the previous fiscal year).
Sales increased due to the continued growth of the job search application business and cloud
POS business, mainly reflecting the growth in companies’ demand for hiring and the effect ofsales promotion activities. An operating loss was recorded due to an increase in costs, which
resulted from increased investments for future growth.
e. Asia Pacific SBU
In this segment, the Group operates temporary staffing business and placement business in
Asia and staffing business and maintenance business in Australia (those businesses areoperated under PERSOLKELLY brand in Asia and under Programmed brand in Australia.)
Sales for the six months ended September 30, 2022 were 171,143 million yen (increasing
20.9% YoY) and operating profit was 291 million yen (decreasing 1.2% YoY).
Sales increased due to the effect of the stronger US dollar and Australian dollar in addition
to the progress in the recovery from the impact of the spread of COVID-19 infection.
Operating profit decreased due to increased costs including personnel expenses, offsetting
an increased sales.
#

#

#

#

The Company and its Japanese subsidiaries have changed their accounting policy including
the accounting method of asset retirement obligations. Comparison and analysis with thesame period of the previous year and the previous consolidated fiscal year have been madeusing figures that reflect the retroactive application. For details, please refer to " Changes in
Accounting Policies" and “Changes in Accounting Estimates”

2. Financial Forecasts of the Fiscal Year Ending March 31, 2023
In the fiscal year ending March 31, 2023, the market recovery is expected to make steadyprogress in the 2nd half as in the 1st half, with full-year net sales are expected to reach
1,210,000 million yen and full-year operating profit anticipated at 53,000 million yen, bothrecord high figures.
Looking at sales, in the temporary staffing sector in Staffing SBU, the number of temporary
active staff is expected to increase over the period until the end of the fiscal year. In Career
SBU, which operates a placement business, demand from corporate customers is likely toremain strong.
Operating profit for the fiscal year ending March 31, 2023 is expected to increase due to arecovery and an increase of net sales in all segments, although selling, general andadministrative expenses are forecast to increase more in the 2nd half of the fiscal year
because aggressive investments are planned in the overall Group, aiming at further growthin the fiscal year ending March 31, 2023 and beyond.

(2) Financial Position
1. Consolidated Balance Sheet
Total assets increased 8,224 million yen compared to the end of the previous fiscal year.
Current assets decreased 236 million yen, and non-current assets increased 8,460 million
yen. Main factors for the decrease in current assets include a decrease in cash and depositsof 15,737 million yen, more than offsetting increases in contract assets of 5,490 million yen
and in accounts receivable - trade of 3,372 million yen. Main factors for the increase in noncurrent assets include increases in software of 2,429 million yen, in goodwill of 2,046 million
yen, and in investment securities of 1,683 million yen.
Liabilities decreased 541 million yen compared to the end of the previous fiscal year. Current
liabilities increased 6,099 million yen while non-current liabilities decreased 6,641 million yen.
Main factors for the increase in current liabilities include an increase in current portion ofbonds payable of 10,000 million yen, which more than offset decreases in the provision forbonuses of 2,838 million yen and in accrued consumption taxes of 1,369 million yen. Main
reasons for the decrease in non-current liabilities include a decrease in bonds payable of
10,000 million yen, which more than offset an increase in long-term borrowings of 1,325
million yen.
Net assets increased 8,766 million yen compared to the end of the previous fiscal year. Thiswas mainly caused by the payment of dividends of surplus of 5,104 million yen and theposting of 18,789 million yen in quarterly net profit attributable to owner of parent company,
which resulted in an increase in retained earnings of 13,685 million yen and a foreign
currency translation adjustment increase of 9,367 million yen. Other reasons weredecreases in non-controlling interests of 7,273 million yen and in capital surplus of 5,635
million yen, mainly due to the acquisition of additional shares in PERSOLKELLY PTE. LTD. by
PERSOL Asia Pacific Pte. Ltd.
As of September 30,
2022
Ratio of operating profit to sales
Ratio of ordinary profit to sales

As of March 31,
2022

5.2%

4.5％

5.3%

4.7％

Current ratio

164.8％

170.9％

Fixed ratio

73.7％

75.5％

Equity ratio

45.9％

43.1％

0.27

0.28

Total assets (million yen)

433,335

425,110Equity capital (million yen)

199,087

183,048

Invested capital (million yen)

283,719

269,376

Cash and cash equivalents at end of period(million yen)

90,946

106,558

Debt/equity ratio*Effective in the three months ended June 30, 2022, the Company and its consolidated subsidiaries
in Japan changed accounting method of asset retirement obligations. Accordingly, retroactive
adjustments are reflected in the values for the previous consolidated fiscal year.

2. Business and Financial Issues to Address
The six months ended September 30, 2022 saw no significant change in business andfinancial issues that the Group should address.

3. Consolidated Cash Flows
Cash and cash equivalents (hereinafter "capital") as of September 30, 2022 was 90,946
million yen, down 15,612 million yen from the end of the previous consolidated fiscal year.
Presented below are an overview of cash flows for the six months ended September 30, 2022
and main factors behind them.

(Cash flows from operating activities)
Capital generated by operating activities was 20,226 million yen (as compared to 21,143
million yen generated in the same period of the previous fiscal year). Major factors include
income taxes paid of 10,690 million yen and a decrease in the provision for bonuses of 3,007
million yen, while profit before income taxes of 31,465 million yen and depreciation of 7,793
million yen.

(Cash flows from investing activities)
Capital used as a result of investing activities was 10,463 million yen (as compared to 4,933
million yen used in the same period of the previous fiscal year). This was mainly due tospending of 4,733 million yen on the purchase of intangible assets, 1,478 million yen spenton acquisition of property, plant and equipment, and 1,453 million yen spent on acquisitionof businesses.

(Cash flows from financing activities)
Capital used as a result of financing activities was 26,401 million yen (as compared to 18,087
million yen used in the same period of the previous fiscal year). This was mainly caused byspending of 13,742 million yen for the purchase of shares of subsidiaries resulting in nochange in scope of consolidation, 5,103 million yen in dividend payments, and 2,054 million
yen for the purchase of treasury shares.

Consolidated Financial Statements(1) Consolidated Balance Sheet(in millions of yen)

As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Contract assets
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Tools, furniture and fixtures, net
Right of use assets, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Trademark right
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of September 30, 2022

107,545100
150,073
18,658333
10,740-554

91,80889
153,446
24,148919
16,873-625

286,897

286,660

5,036
2,147
3,410
515
2,304

4,121
2,150
4,281
515
3,314

13,414

14,383

9,803
61,674
16,787
6,863

10,542
63,721
19,217
7,004

95,129100,486

8,664
10,324
12,208-1,527

10,348
10,105
13,054-1,702

29,67031,804

138,213

146,674

425,110433,335(Consolidated Balance Sheet)(in millions of yen)

As of March 31, 2022
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other provisions
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Provision for share awards
Provision for share awards for directors (andother officers)
Asset retirement obligations
Other provisions
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeAs of September 30, 2022

630
162
－
11,304
81,813
11,211
17,432
17,847639
442
10,00011,81382,762
11,796
16,062
15,00871

19714
26,706804
24,643

167,893

173,993

10,00030,000
1,997
3,039
414
810

31,325
2,503
4,006
500
939

835

959

4,430
81
1,239

4,565
46
1,362

－

52,85046,209220,743

220,202

17,47919,168158,282-10,351

17,47913,533
171,968-11,530

184,579

191,450959

759-2,4896,877-1,530

7,637

Share acquisition rights

00

Non-controlling interests

21,317

14,044

Total net assets

204,367

213,133

425,110433,335

Total liabilities and net assets

(2) Consolidated Income Statements and Comprehensive Income Statement(Consolidated Income Statement)(in millions of yen)Six months ended September 30,
2021

2022

Net sales
Cost of sales

512,847
397,154586,749449,733

Gross profit

115,693137,016

Selling, general and administrative expenses

89,245106,299

Operating profit

26,44830,716

19
169
507

28
193
537

90

－

－
292

39
113

1,079

912

139
4
23

150
－

－

8

86

110

Non-operating income
Interest income
Dividend income
Subsidy income
Share of profit of entities accounted for using
equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission expenses
Share of loss of entities accounted for using
equity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries andassociates
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on sale of investment securities
Loss on valuation of investment securities
Restructuring expenses
Non-recurring loss
Total extraordinary losses

1

254

270

27,27331,358

16

24

486

－

43

227

546

251

3
469
1
23
514
70

5
－
－
139
－
－

1,083

145

Profit before income taxes

26,736

31,465

Income taxes - current
Income taxes - deferred

9,287
818

11,208322

Total income taxes

10,106

11,530

Profit16,63019,934

Profit attributable to non-controlling interests

1,245

1,145

Profit attributable to owners of parent

15,384

18,789(Consolidated Comprehensive Income Statement)(in millions of yen)Six months ended September 30,
2021
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

2022
16,63019,934

-373

-199

3,523

9,728

29

141

3,179

9,670

19,81029,605

18,24927,985

1,560

1,620

(3) Consolidated Cash Flow Statements(in millions of yen)Six months ended September 30,
2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for shareawardsIncrease (decrease) in provision for shareawards for directors (and other officers)
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in other provisions
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted forusing equity method
Subsidy income
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Restructuring expenses
Non-recurring loss
Decrease (increase) in trade receivables
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption
taxes
Increase (decrease) in long-term accounts
payable - other
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Subsidies received
Payments of restructuring expenses
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating
activities

2022
26,736
5,908
469
3,403
4
-1,88831,465
7,793
－

2

-54

111

129

110

123

-81

-89

53
-188

48
-222

139

150

-90

8

-507
-12

-537
-18

-486

－

-42

-227

23
514
70
-9,733
-715

139
－
－
-340
-2,334-3,324-1,698

-91

25

5,016
-3,298-1,447-3,125

22,10230,287

187
-145

225
-162

507
-310
-3,779537－-10,6902,581

29

21,143

20,2263,461
46-3,007(in millions of yen)Six months ended September 30,
2021
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from sale of shares of subsidiaries
resulting in change in scope of consolidation
Purchase of shares of subsidiaries and associates
Payments for acquisition of businesses
Loan advances
Proceeds from collection of loans receivable
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Other, net

2022
-2

-706

3
-2,288955-1,47820

27-3,696-51-4,733
-692

68

262

－

-1,257

673

－

－
－
-0

-1,301-1,453
-0

0
-199

2
-424

741
-203

357
-21

-4,933-10,463-626-1-4,239-10,000-0-3,010-198-194－-2,054-5,103-248－-13,742-12-5,055-18,087-26,401

593

1,025

Net increase (decrease) in cash and cash
equivalents-1,284-15,612

Cash and cash equivalents at beginning of period

82,991

106,558

Cash and cash equivalents at end of period

81,70690,946

Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Repayments of long-term borrowings
Redemption of bonds
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting
in change in scope of consolidation
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents

Changes in Accounting Policies
Notes for significant change in the amount of shareholders' equity
Capital surplus decreased 5,635 million yen due in part to the acquisition of additional sharesin PERSOLKELLY PTE. LTD. by PERSOL Asia Pacific Pte. Ltd. in the three months ended June30, 2022. As a result, capital surplus was 13,533 million yen as of September 30, 2022.
Treasury shares increased 1,179 million yen mainly because the Company acquired 727,800
treasury shares based on the resolution passed by the Board of Directors on August 10, 2022.
As a result, treasury shares were 11,530 million yen as of September 30, 2022.

Application of the Guidance on Accounting Standard for Fair Value Measurement
The Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31,
June 17, 2021) began to be applied at the beginning of the three months ended June 30,
2022. It was decided that the new accounting policies prescribed in the Guidance on
Accounting Standard for Fair Value Measurement will be applied into the future in accordancewith the transitional treatment provided for in Paragraph 27-2 of the Guidance on AccountingStandard for Fair Value Measurement.
The application has no effect on quarterly consolidated financial statements.

Configuration or Customization Costs in a Cloud Computing Arrangement (IAS No. 38), an
agenda decision by IFRIC
At a foreign subsidiary where the International Financial Reporting Standards (IFRS) areapplied, configuration or customization costs in a cloud computing arrangement werepreviously recognized as intangible assets by applying the IAS No. 38 Intangible Assets.
Effective in the three months ended December 31, 2021, however, the method was changed
to one with which the above costs are recognized as costs generated when the configurationor customization service is received, based on the “Configuration or Customization Costs ina Cloud Computing Arrangement (IAS No. 38)”, an agenda decision by the IFRSInterpretations Committee (IFRIC) that was announced in April 2021.
This change in accounting policy is applied retroactively, and the change is reflected in thequarterly consolidated financial statements for the six months ended September 30, 2021
and consolidated financial statements for the previous fiscal year.
As a result, compared to values before the retroactive application, operating profit, ordinary
profit, and profit before income taxes for the six months ended September 30, 2021
decreased 287 million yen. The beginning balance of retained earnings decreased 1,483
million yen and foreign currency translation adjustment decreased 74 million yen for theprevious fiscal year due to the application of the cumulative effect to net assets as of the
beginning of the previous fiscal year.
From these results, quarterly net profit per share for the six months ended September 30,
2021 decreased 0.82 yen.

Change in Accounting for Asset Retirement Obligations
Previously, asset retirement obligations related to obligation to restore to original condition
set forth in real-estate lease agreements signed by the Company and its consolidated
subsidiaries in Japan were posted in the following way. The amount of leasehold deposits
related to the said real-estate lease agreements which was not expected to be collected
finally was reasonably estimated, and then, the portion of the above amount to be allocatedto each quarter was posted. However, the non-current asset management system wasreviewed, and more appropriate accounting has become possible. Therefore, starting fromthe three months ended June 30, 2022, expenses for restoration to original condition isposted as asset retirement obligations, and removal cost corresponding to the asset
retirement obligations is included in property, plant and equipment and depreciated.
This change in accounting policy is applied retroactively, and the change is reflected in thequarterly consolidated financial statements for the six months ended September 30, 2021
and consolidated financial statements for the previous fiscal year.
As a result, in the consolidated balance sheet for the previous consolidated fiscal year,
buildings and structures, net increased 1,348 million yen, deferred tax assets increased 91
million yen, investments and other assets (other) increased 1,892 million yen, asset
retirement obligations increased 3,791 million yen, and deferred tax liabilities increased 48
million yen, while non-current liabilities (other) decreased 559 million yen, compared tobefore the retroactive application.
Asset retirement obligations of 638 million yen, which were included in other under noncurrent liabilities in the previous consolidated fiscal year, are presented as a separate itemfrom the previous consolidated fiscal year, as the combined effect of the retrospective
application of this change in accounting policy exceeded 1/100th of total liabilities and net
assets.
The beginning balance of retained earnings for the previous consolidated fiscal year
decreased by 329 million yen due to the application of the cumulative effect to net assets asof the beginning of the previous consolidated fiscal year.
The change has a minor effect on profit and quarterly net profit per share for the six months
ended September 30, 2021.

Changes in Accounting Estimates
Changes in Estimates of Facilities attached to Buildings
In the three months ended June 30, 2022, the Company changed its office strategy to permit
diverse workstyles, such as remote work. The Company took this change as an opportunity
to review the number of years during which facilities attached to buildings installed atleasehold estates of the Company and its consolidated subsidiaries in Japan are expected to
be used. As a result, the expected lifetime of those facilities was changed from the previous
3 to 15 years to 2 to 10 years.
As described in Changes in Accounting Policies, effective from the beginning of the threemonths ended June 30, 2022, removal cost corresponding to asset retirement obligations is
added to the book value of facilities attached to buildings as relevant property, plant andequipment. The removal cost has been distributed based on the number of years during
which the facilities attached to buildings are expected to be used.
As a result of this change, operating profit, ordinary profit, and profit before income taxes
for the six months ended September 30, 2022 decreased 1,119 million yen.