3Q of Fiscal Year Ending March 31, 2023

Financial Results
February 6, 2023

UT Group Co., Ltd.
Securities Code: 2146 (TSE Prime Market)

Copyright © UT Group Co., Ltd. All Rights Reserved.

FY3/2023 3Q Financial Results

Copyright © UT Group Co., Ltd. All Rights Reserved.

1

1

FY3/2023 3Q Financial Results

Highlights

Achieved a record high in quarterly EBITDA
while establishing a business base for sustainable growth
Net sales

128,092

113,995(Million yen)

EBITDAEBITDA%

18,00016,000+12.4%

82,647

EBITDA and EBITDA margin(Million yen)

14,000

9.4%

10.0%

9.0%

7.6%

8.0%

12,0827.0%

12,000＋37.9%

4.7%

10,000

8,000

6.0%

5.0%

6,302

5,372

6,000

4.0%

+124.9%3.0%△14.8%

4,000

2.0%

2,000

1.0%

0

３Q
FY3/2021
Copyright © UT Group Co., Ltd. All Rights Reserved.

３Q
FY3/2022

３Q
FY3/2023

0.0%

３Q
FY3/2021

３Q
FY3/2022(note) EBITDA of FY3/2021 and FY3/2022 have been retroactively revised.
(note) EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets)+ Amortization + Stock-based compensation expenses

３Q
FY3/2023
2

Business environment for 3Q of FY3/2023

Close scrutiny of demand trend to flexibly respond to changes at clients
Concerns over economic slowdown, driven by raw materials/energy price surges, increase in prices in general, depreciation of the yen,and supply constraint caused by global supply chain disruptions

Decline in consumption and production activities, and stagnant demand for additional workers

Manufacturing Business: Demand trend

Area Business: Demand trend

Industrial and Commercial Machinery Sector
Electronics Sector

Transportation Equipment Sector

Worker demand in each area

Expect an increase in mid-term demand due toincreased production capacity. However, some clientssuspended or postponed demand for additional workers

The impact of clients’ production adjustments, caused byshortage of parts, had little impacts but
did not result in strong demand for additional workers

The jobs-to-applicants ratio in each area is on an
upward trend; UT's share of the areas is low,
and there is ample room for growth

Continued to strengthen hiring and allocation to clients with stronger demand
for workers in 3Q, as in 2Q

Strengthen marketing sales
to expand area shares

Made close scrutiny of demand trend by clients and flexibly allocated resourcesto achieve sustainable growth
Copyright © UT Group Co., Ltd. All Rights Reserved.

3

FY3/2023 3Q Financial Results

Summary of Statement of Income［million yen］

Ref.) 3Q of FY3/2023 excl. stockbased compensation expenses

3Q of FY3/2022

3Q of FY3/2023

Results% to net sales

Results% to net sales

Amount%Results% to net sales

Net sales

113,995

100.0%

128,092

100.0%+14,097+12.4%

128,092

100.0%

Gross profit

20,25317.8％

25,14719.6％+4,893+24.2%

25,147

19.6％

15,81013.9％

19,54015.3％+3,729+23.6%

13,971

10.9%

EBITDA

5,372

4.7％

12,082

9.4％+6,709+124.9%12,082

9.4%

Operating profit

4,443

3.9％

5,606

4.4％

+1,163+26.2%

11,175

8.7%

Ordinary profit

4,424

3.9％

5,526

4.3％

+1,102+24.9%

11,095

8.7%

Net profit attributable to UT Group

1,846

1.6%

1,758

1.4％

△87

△4.8%

7,327

5.7%

EPS (yen)

45.75

－

43.58

－

△2.17

△4.7%

181.55－

No. of Tech employees (Domestic)

30,516－32,341－+1,825+6.0%

32,341－

No. of Tech employees (Overseas)

9,562

－

14,208－+4,646+48.6%

14,208－

SG&A expenses

Y-o-Y change(note) EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets) + Amortization + Stock-based compensation expenses
Copyright © UT Group Co., Ltd. All Rights Reserved.

4

FY3/2023 3Q Financial Results

Recorded stock-based compensation expenses in 3Q, given the increased
probability of achieving the performance conditions for the exercise
EBTIDA Targets for the Fourth Medium-Term Management Plan

Progress in estimated EBITDA for FY3/2023*

Result１Q¥3.6bln0%２Q¥3.8bln

25%

75%

•

EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets)+ Amortization + Stock-based compensation expenses
Please see page 51 for details on the stock-based compensation expenses.

Copyright © UT Group Co., Ltd. All Rights Reserved.

300

100%

Recorded stock-based compensation expensesof ¥5.5bln, which was recognized
as expense for accounting purposes
but didn’t involve cash-out•［100 million yen］

Revised Target

Achieving ¥15bn EBITDA in FY3/2023,
one year ahead of the initial plan

3Q
¥4.6bln50%

Initial Target

150
86

79

100

75

190

250

200

150

120

49

FY20/3

FY3/21

FY3/22

FY3/23

FY3/24

The 4th Medium-Term Management Plan

FY3/255

FY3/2023 3Q Financial Results

Consolidated Balance Sheets
March 31, 2022

［million yen］

December 31, 2022

Results% to total
assetsResults% to total
assets49,74877.6%

55,060Cash and deposits

25,82740.3%

Notes and accounts receivable –
trade

21,445

Change from the end of
the previous FY
Amount%78.1%+5,312+10.7%

31,45444.6%+5,627+21.8%

33.5%

21,651

30.7%

+206

+1.0%

14,35922.4%

15,44621.9%+1,087+7.6%

Property, plant and equipment

1,411

2.2%

1,332

1.9%

△79

△5.6％

Intangible assets

9,509

14.8%

10,63915.1%+1,129+11.9%

5,731

8.9%

5,597

7.9%

△134

△2.3％

3,438

5.4%

3,475

4.9%

+37

+1.1%

Total assets

64,107100.0%

70,507100.0%+6,399+10.0%

Current liabilities

25,46739.7%

27,84039.5%+2,373

+9.3%

3,884

6.1%

3,951

5.6%

+67

+1.7%

Non-current liabilities

17,40827.2%

14,67320.8%△2,734△15.7％

Long-term borrowings

15,99024.9%

13,27818.8%△2,711△17.0％

21,232

33.1%

27,992

39.7%+6,760+31.8％

19,592

30.6%

20,382

28.9%

+789

+4.0％

600

0.9%

6,169

8.8%

+5,568927.2%

64,107100.0%

70,507100.0%+6,399+10.0％

1.0

ー

0.8

ー

ー

ー

Current assets

Non-current assets

Goodwill
Investments and other assets

Short-term borrowings and Current
portion of long-term borrowings

Net assets
Shareholders’ equity
Share acquisition rights

Total liabilities and net assets
Gross debt/equity ratio
Copyright © UT Group Co., Ltd. All Rights Reserved.

Current assets
・Increase in cash and deposits
Non-current assets
・Increase in software along with the progress ofan investment to system construction
Current liabilities
・Increase in income taxes payableNon-current liabilities
・Decrease in long-term borrowings
Net assets
・Recording of net profit attributable to owners of
the parent
・Increase in share acquisition rights (+5,568M）
・Decrease in retained earnings due to dividend
payment
・Equity ratio 29.5％(30.8％ as of March 31, 2022)

6

FY3/2023 3Q Financial Results

Quarterly Changes in Sales and Number of Technical Employees(Persons, million yen)

FY3/2019

FY3/2020

FY3/2021

FY3/2022

FY3/2023

Tech employees (Domestic): +2,014
Net Sales: Up 24%

Tech employees (Domestic): -949
Net Sales: Even

Tech employees (Domestic): +4,102
Net Sales: Up 14%

Tech employees (Domestic): +7,900
Net Sales: Up 36%

Tech employees (Domestic): +1,724
Net Sales: Up 6%(from the end of the previous FY)(from the end of the previous FY)(from the end of the previous FY)(from the end of the previous FY)(from 3Q of the previous FY)

40,00035,00030,00025,00020,00015,000

１Ｑ

2Q

3Q

4Q

１Ｑ

2Q

3Q

4Q

１Ｑ

2Q

3Q

4Q

１Q

2Q

3Q

4Q

1Q

2Q

3Q

Net Sales

23,722

24,76027,042

25,57725,731

25,90725,09724,45525,82927,21529,601

32,48435,21537,363

41,41642,774

41,56742,71743,807

EBITDA

1,794

1,617

2,909

2,366

1,795

2,344

2,253

2,211

1,936

1,934

2,431

1,694

1,572

1,317

2,481

2,129

3,614

3,812

4,655

EBITDA％

7.6%

6.5%

10.8%

9.3%

7.0%

9.1%

9.0%

9.0%

7.5%

7.1%

8.2%

5.2％

4.5%

3.5%

6.0％

5.0%

8.7%

8.9%

10.6％

Technical
employees

19,86820,56521,042

20,583

20,64020,302

20,026

19,63421,09020,985

22,46523,73627,17728,72030,516

31,63632,15332,39732,341

Technical
employees

-

-

-

-

-

-

-

-

-

-

-

13,276

12,571

12,456

9,562

13,75013,982

13,091

14,208(Domestic)(Overseas)

Copyright © UT Group Co., Ltd. All Rights Reserved.

(note) Quarterly EBITDA since 1Q of FY3/2021 have been retroactively revised as some of depreciation in cost of sales was not included in calculation process for EBITDA

7

FY3/2023 3Q Financial Results

Efficiently secure the number of hires
Average number of monthly recruits and unit price for hires
1,600
1,400

40

Ave. of montly recruits（LH）
Unit price* (10k yen)(RH)

35*calculated by dividing “total annual hiring expenses” by “total annual number of hires”

1,200

30

1,000

25

800

20

600

15

400

10

200

5

0

FY3/2018

FY3/2019

Copyright © UT Group Co., Ltd. All Rights Reserved.

FY3/2020

FY3/2021

FY3/2022

FY3/2023※Ave. of 9 months period

Keeping unit priceunder 300k yen＋
Monthly target
1,200～1,300 hires

08FY3/2023 3Q Financial Results

Raising the efficiency of SG&A expenses
Analysis of SG&A expenses ratio to sales（excluding stock-based compensation expenses recognized in this 3Q）

13.9%
その他
Other

3.7%

△0.6pt10.9%

Personnel
人件費
expenses

3.9%△1.8pt6.3%

3Q
FY3/2022
Copyright © UT Group Co., Ltd. All Rights Reserved.

△0.7pt

13.9％→10.9％

Personnel expenses -0.7pt
3.1%

募集費
Hiringexpenses

Curbing the SG&A ratio to sales
by raising the SG&A efficiency

2.1%

5.6%

3Q
FY3/2023

・Optimizing staffing through reorganization within the Group (Apr. 2022)
・Improving labor productivity by standardizing and communizing
administration and other tasks

Hiring expenses -1.8 pt

・Consolidating the Group's database of job opportunities (Apr. 2022)
・Promoting optimal hiring operations
・Made close scrutiny of demand trend by clients andtook a cautious stance in spending hiring expenses.

Other expenses -0.6pt

・Decreases of commission expenses and amortization of goodwill
9Results by segment

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1010Results by segment

Results by Segment: Net Sales and Sales Composition
Net sales

Sales composition(Million yen)

128,092
113,995
4,811
5,896
14,88332,753+42.8%+14.9%△6.4%+16.8%

6,871
6,772
13,93638,240Overseas
Engineering
Solution

4.2%
5.2%

5.4%
5.3%

13.1%

10.9%

28.7%

29.9%

48.8%

48.6%

３Q
FY3/2022

３Q
FY3/2023

Area

55,650＋11.9％

３Q

FY3/2022

62,271

３Q

FY3/2023

Manufacturing(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified segment basis for the first quarter of FY3/2022
Copyright © UT Group Co., Ltd. All Rights Reserved.

11

Results by segment

Net Sales by Segment
Manufacturing Business
55,650(Million yen)

Area Business

11.9% 62,271(Million yen)

16.8%
32,753

Solution Business

35.4%

38,240
10,294３Q
FY3/2022

３Q
FY3/2023

３Q
FY3/2022

３Q
FY3/2023(Million yen)

３Q
FY3/2022

13,936３Q
FY3/2023(note) The year-over-year comparison has been made excluding Net Sales fromUT System Products which was sold at the end of March 2022.

Engineering Business

Overseas Business

14.9%

42.8%

5,896

6,772

4,811

３Q
FY3/2022

３Q
FY3/2023

３Q
FY3/2022

Copyright © UT Group Co., Ltd. All Rights Reserved.

6,871
３Q
FY3/2023(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for the first quarter of FY3/2022

12

Results by segment

EBITDA by Segment

Manufacturing Business

89.3%

9,000
8,000
7,000
6,000
5,000

(Million yen)

2,000

8,697

(Million yen)

14.0%

14.0%

1,989

989

8.3%

4.0%
-11

３Q
FY3/2022

３Q
FY3/2023-1.0%(Million yen)

1,967.0%

11.0%
9.0%
3,000

20.0%
18.0%

7.0%

2,500

16.0%

5.0%

14.0%

2,000

5.4%

9.0%

Solution Business

13.0%

2,059

2,989

4,593

17.0%
15.0%

2,071 million yen

3,989
19.0%

1,000
0

Area Business

4,989

4,000
3,000

5,989

12.0%

3.0%

1,500

10.0%

1.0%

8.0%

1,000

-0.0％

-1.0%

-11

500

３Q
FY3/2022

３Q
FY3/2023

00.1％ 11３Q
FY3/2022

6.0%

231

4.0%

1.7%

2.0%
0.0%

３Q
FY3/2023(note) The year-over-year comparison has been made excluding EBITDA fromUT System Products which was sold at the end of March 2022.
5,000

Engineering Business
4,500(Million yen)

39.5%

4,000
3,500

1,000

Overseas Business(Million yen)

198.3%

16.0%

20.0%
18.0%

2,500
12.0%

12.4%

2,500

1,500

18.0%

3,000
14.0%

3,000

2,000

20.0%

10.2％

603

842

0

0
0.0%

Copyright © UT Group Co., Ltd. All Rights Reserved.

12.0%
10.0%

6.0%
1,000
4.0%
500
2.0%

３Q
FY3/2023

14.0%

8.0%
1,500

500

３Q
FY3/2022

16.0%

10.0%
2,000

1.9%

89

３Q
FY3/2022

266

3.9%

３Q
FY3/2023

8.0%
6.0%
4.0%
2.0%
0.0%

(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for the first quarter of FY3/2022

13

Results by segment

Technical employees by Segment
Manufacturing Business
14,555(Person)

0.3% 14,597

３Q
FY3/2022(Person)

13.3%
11,557３Q
FY3/2022

３Q
FY3/2023

Engineering Business

Area Business(Person)(Person)

2.1%

13,095３Q
FY3/2023

Overseas Business

13.5%

Solution Business

3,053

3,116

３Q
FY3/2022

３Q
FY3/2023(Person)48.6% 14,208
9,562

1,351

1,533

３Q
FY3/2022

３Q
FY3/2023

Copyright © UT Group Co., Ltd. All Rights Reserved.

３Q
FY3/2022

３Q
FY3/2023(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for the first quarter of FY3/2022

14

Manufacturing Business

Segment Results
Net Sales
FY3/2023

17.8%

13.4%

5.4%

20,50920,833
18,371

20,92819,864

1Q

2Q

20,324

3Q

4Q

3,000

12.6%

2,500
2,000
1,500
1,000

7.9%

2,577

1,383

500
0

1Q

2,853
6.4%

11.3%

4.6%

0.3%

14,91913,402

14,786
14,133

14,555
14,5491Q

2Q

FY3/2022

FY3/2023

15.6%

13.7%

16.0%
14.0%

10.2%

3,266

2,034

9.3%

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10.0%

14,963

3Q

4Q(Ten thousand yen)
FY3/2023

2.9%

6.3%

3.8%

44.2 45.5

43.9 46.7

45.9 47.6

1Q

2Q

3Q

45.6

6.0%
4.0%

1,176
2Q

12.0%

8.0%

1,885

FY3/2023

Monthly sales per capita(Million yen)

FY3/2022(Person)

FY3/2022

EBITDA・EBITDA%
3,500

Technical employees(Million yen)
FY3/2022

17,415※Please refer P.47 for Business Summary after the segment reclassification.

2.0%

3Q

4Q

0.0%

4Q

Sales and technical employees
・Focused on clients who had strong demand as
demand for workers varied by client.
・Shifted the focus in hiring activities on hiring
efficiency.
・Made close scrutiny of demand by client andtook a cautious stance in hiring.
EBITDA・Improved gross margin due to reduction in
hiring-related expenses (cost), such as cash gift
for joining the company, and shift to projects
with strong demand.
・Raised the efficiency of SG&A expenses bypromoting optimal hiring operations
Monthly sales per person
・Benefited from the enhanced sales activities
aimed at increasing high-unit-price projects andraising contract unit prices in FY3/2022.
・Improved the q-o-q operating rate due to thefurther-alleviated impact from the absence ofwork such as partial suspension of production
by automakers.
(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for FY3/2022.

15

Manufacturing Business

Net Sales by Subsegment
Industrial and Commercial Machinery
FY3/2022

20.3%

18.0%

FY3/2023

5,785
4,810

5,979
5,302

1Q

2Q

3Q

Transportation Equipment
FY3/2022

1.5%

6,821

6,891
5,926

7,0216,913

1Q

5,343

4Q

7,623
6,974

1Q

Copyright © UT Group Co., Ltd. All Rights Reserved.

3Q

FY3/2023

6.8%

5.8%

7,672
7,182

7,2697,688

2Q

7,088

3Q

4Q

Industrial and Commercial Machinery
Electronics
・The trend to suspend or postpone to satisfy
demand for additional workers has expanded
since the fall, mainly due to semiconductor
inventory adjustments.
Transportation Equipment
・The impact from the absence of work such as
partial suspension of production by automakers
was alleviated q-o-q.

(Million yen)
FY3/2022

FY3/2023

7,616

41.4%

28.3%

238 280

251 354271 347

1Q

2Q

3Q

17.6%
2Q

FY3/2022

Other

FY3/2023

16.3%

5,393

9.3%

(Million yen)

26.5%

(Million yen)

(Million yen)

12.8%

5,913
5,013

Electronics

4Q

277
4Q

(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for FY3/2022.

16

Manufacturing Business

Significant improvement in gross margin
Gross margin of the Manufacturing Business
23.1%
21.0%

20.4%
18.6%

1Q

21.9%

19.3%

18.0%

2Q

3Q

4Q

1Q

2Q

FY3/2022

3Q
FY3/2023

Impact of the absence of work caused by
the automobile production cut, etc. (Loss of Gross Profit)(100 Million yen)

※as of Feb. 1, 2023

0.6

Significant improvementin gross margin
by concentrating on client companies
which have strong demand for workers

20.4％→23.1％

0.4
impact of Typhoon #14

0.2

0.0

Apr.

May

June

July

Copyright © UT Group Co., Ltd. All Rights Reserved.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.(F)

Feb.(F)17

Area Business

Segment Results
Net Sales

12,246
10,3871Q

18.8%

FY3/2023

13.9%

12,646
10,643

13,347
11,722

2Q

3Q

11,857

4Q

649
0.1%

13

1Q

569
-1.3%

19.2%

16.8%

12.9%

12,546
10,522

12,947
11,086

13,045
11,557

1Q

2Q

3Q

FY3/2022

FY3/2023

4.5%

FY3/2023

Monthly sales per capita(Million yen)

FY3/2022(Person)

FY3/2022

EBITDA・EBITDA%

5.3%

Technical employees(Million yen)
FY3/2022

17.9%※Please refer P.48 for Business Summary after the segment reclassification.

6.3%

7.0%

841

5.0%

6.0%

4.0%

12,225

4Q(Ten thousand yen)

Sales and technical employees
・Reorganized each area and enhanced sales
activities, which resulted in an increase in job
openings, the number of technical employees,
and sales increase.
EBITDA・Some operating companies were affected byautomakers’ production cut but the enhanced
sales activities resulted in an increase in sales
and profit.
・Integration of operating companies in April 2022
has led to improve the efficiency in use of
SG&A expenses including personnel expenses.

FY3/2023

1.8%

1.0%

0.6%

33.4 32.8

32.7 33.0

34.3 34.0

3.0%
2.0%

1.0%

112

2Q

-137

Copyright © UT Group Co., Ltd. All Rights Reserved.

3Q

1.0%

-1.1%
4Q

-127

32.9

0.0%
-1.0%
-2.0%

1Q

2Q

3Q

4Q

(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for FY3/2022.

18

Area Business

Area Business and Manufacturing Business complement each other■ Different intention for work by job seeker■ Different demand by client

Number of dispatched workers per client

I can relocate. I won’t
mind physical work. I
want to securely earn.

Manufacturing BusinessI don’t want to move.
I want a job at a local
factory.

Demand of major manufacturers for a large numberof workers with high unit prices

I want to gainskills and work
for a long time.

Long tailI want to work
daytime as I havesmall children.

Area BusinessCommunity-based demand all over Japan

Number of clients

Ensure diversity in work types andexpand in areas as a platform
Copyright © UT Group Co., Ltd. All Rights Reserved.

I want to be engaged in
the popular
semiconductor industry.

I am retired and want
a flexible work near
my home.

Improve the accuracy in matchingfrom the UT Group’s base of over 10,000
applicants per month19

Solution Business

Segment Results※Please refer P.49 for Business Summary after the segment reclassification.

Net Sales
FY3/2022

3,951

4.0%

4,661 4,671

6,270

6,185

4,5034,681

4,497

3,184

2,606
1Q

3Q

4Q

EBITDA・EBITDA%

75
55
35

45

15
-5

3,0533,116

23

81

65

1.0%

26

0.6%

3,060

2,166

2Q

3Q

Monthly sales per capita

2.0%

20

0.4%

-27

4Q

(Ten thousand yen)
FY3/2023

3.1%

1.2%

1.9%

47.7 49.2

49.5 50.1

49.4 50.3

49.2

0.0%

Sales and technical employees
・Sales decreased due to the sale of UT System
Products on March 31, 2022.
・The impact of consolidating UT FSAS Crea in
October 2021 ended.
EBITDA・EBITDA increased due to an increase intechnical employees at the existing subsidiaries
and increased operations at some dispatchedworksites.
・Reduction in SG&A expenses improved theefficiency in use of SG&A expenses.
TOPIC
・Sold UT System Products on March 31, 2022.
* UT Group acquired shares of UT System Products(engaged in sales of information system equipment)
as well as UT Toshiba (engaged in general personnel
dispatch and outsourced work) from the Toshiba on
April 1, 2020. ¥6.27 billion in sales and no technicalemployee in FY3/2021.

-1.0%

-25
-45

70
70

0.7%

3,103

3.0%

115

1.5%
71

3,114

FY3/2022

2.5%
1.0%

2.1%

FY3/2023

115
95

43.3%

1Q

(Million yen)

FY3/2022

FY3/2023

66.4%

1,871

2Q

(Person)

FY3/2022

FY3/2023

46.7%

75.9%
4,583

Technical employees(Million yen)

-39

1Q

-1.5%
2Q

Copyright © UT Group Co., Ltd. All Rights Reserved.

3Q

4Q

-2.0%

1Q

2Q

3Q

4Q

(note) Net Sales and EBITDA excludes impacts of UT System Products which was sold at
the end of March 2022. (figures in gray in the graph include the impact).
“Monthly sales per capita” is calculated excluding the impacts.
(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for FY3/2022.

21

Engineering Business

Segment Results
Net Sales

15.5%

12.8%

2,240
1,925

2,262
1,959

2,268
2,011

1Q

2Q

3Q

2,038

4Q

EBITDA・EBITDA%
FY3/2022

350
300
250
200

244

150
100

178

12.0%

12.0%

14.0%

12.0%

10.0%

8.0%

241

244

183

1,574
1,382

1,561
1,335

1,533
1,351

1Q

2Q

3Q

1,388

4Q

(Ten thousand yen)
FY3/2023

3.0%

0.7%

2.0%

46.1 47.5

48.7 48.3

50.0 49.0

49.3

6.0%

2.0%

0.0%

1Q

2Q

Copyright © UT Group Co., Ltd. All Rights Reserved.

EBITDA
・The order receiving trend was robust in theconstruction and IT sectors. Hiring activities
were strengthened but the competition to hire
was intensified.
・The EBITDA margin increased due to rising
operating rates mainly in the construction
sector.

4.0%

50
0

13.5%

FY3/2022

321

9.4%

276

16.9%

Sales and technical employees
・Sales increased due to favorable order intake
for both the construction and IT sectors and a
resultant increase in technical employees.

16.0%

14.2%

9.3%

13.9%

FY3/2023

10.8%

FY3/2023

Monthly sales per capita(Million yen)

450

(Person)

FY3/2022

FY3/2023

16.4%

12.3%

Technical employees(Million yen)
FY3/2022

400※Please refer P.50 for Business Summary after the segment reclassification.

3Q

4Q

1Q

2Q

3Q

4Q

(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for FY3/2022.

22

Engineering Business

Net Sales by Subsegment
Construction engineers(Million yen)

2022年3月期

IT engineers
2022年3月期

2023年3月期

12.6%

8.9%

5.6%

1,333
1,184

1,323
1,215

1,2601,330

1,261

2Q

3Q

4Q

2023年3月期

22.4%

26.3%

24.9%

906

939

936

740

1Q

(Million yen)

1Q

743

2Q

749

3Q

776

4Q

Construction engineers
・Demand for engineers was strong mainly for thework of equipment and plant.
・A sense of shortage of engineers was strong
and the competition to hire was intensified.
IT engineers
・A portion of (former) design & manufacturing
engineers was reclassified as (new) IT
engineers.
・Demand for dispatch of engineers with noexperience was also strong and the competition
was intensified.

(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for FY3/2022.

Copyright © UT Group Co., Ltd. All Rights Reserved.

23

Overseas Business

Segment Results
Net Sales

29.4%
1,535

1Q

33.3%

66.7%
2,580

2,303
1,727

FY3/2023

3.4%

40
20
0

4.0%

113

3.1%

75

60

46
1Q

13,091
12,456

77

19

2.4%

1.5%

1.2%

22

Copyright © UT Group Co., Ltd. All Rights Reserved.

3Q

3.0%

2.0%

56

2Q

48.6%
14,20813,750

2Q

3Q

4Q

Sales and technical employees
・Demand for personnel increased along with an
economic recovery in Vietnam.
・Sales coverage was expanded from the basearea in the south region to the north region.
Made efforts to acquire contracts fromJapanese companies in the north region.
・In the previous 3Q, due to the lockdown in
Vietnam and the impact of labor regulations,etc., the number of technical employees
decreased significantly.
・Impact of the change in exchange rate on sales+200-million-yen impact for 1Q period+350-million-yen impact for 2Q period+480-million-yen impact for 3Q period

5.0%

4.4%

100

13,982
12,571

1Q

4Q(Million yen)

FY3/2022

3.8%

5.1%

FY3/2023

9,562

3Q

140

80

2,369

11.2%

1,547

2Q

(Person)

FY3/2022

FY3/2023

EBITDA・EBITDA%

120

Technical employees(Million yen)
FY3/2022

1,986※Please refer P.50 for Business Summary after the segment reclassification.

4Q

1.0%

0.0%

EBITDA
・The EBITDA margin improved, due to sales
increase driven by higher personnel demand
and the improved efficiency in use of SG&A
expenses.
(note) As the segment classification has been changed since Apr. 2022,
the year-over-year comparison has been made using the reclassified
segment basis for FY3/2022.

24

FY3/2023 Earnings Forecasts andTarget of Medium-Term Business Plan

Copyright © UT Group Co., Ltd. All Rights Reserved.

25

25

FY3/2023 Earnings Forecasts and Target of Medium-Term Business Plan

FY3/2023 Earnings Forecasts○ Expect the supply and demand balance for personnel to remain tight due to the labor shortage in the manufacturing industry○ Improve operational efficiency and cost efficiency through group-wide integrated hiring activities and large-scale restructuringof operating companies○ Focus on expanding market share toward FY3/2025 and establish a strong, streamlined business base to achieve mediumto long-term growth.
(100 million yen)
FY3/2022

FY3/2023

changeamountchange%Results% to net
sales

Forecasts% to net
sales

1,567

100.0%

1,800

100.0％

+232

75

4.8%

150

8.3%

+74

+99.9%

Excl. Stock-based compensation expenses

Operating profit

62

4.0%

132

7.3%

+70

+112.9%Operating profit

62

4.0%

77

4.2%

+14

+23.1％

Ordinary profit

59

3.8%

75

4.1%

+15

+26.0％Net profit attributable to
UT Group

31

2.0%

32

1.8%

+0.5

+1.9％

77.81

ー

79.28

ー

+1.47

ー

Net sales
EBITDA※EPS (yen)+14.8%Net Sales
・Plan to increase net sales based on No. techemployees at the end of March 2022, in spite of¥6 billion reduction due to a subsidiary sold.
EBITDA
・Will improve profit margin through efficiency
promotion measures such as subsidiaryreorganization and optimizing productivity.
Operating profit
・Assuming to meet the conditions for the
exercise of the performance-linked acquisitionrights, 5.5 billion yen will be recorded as stockbased compensation expenses※EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets) + Amortization + Stock-based compensation expenses
Copyright © UT Group Co., Ltd. All Rights Reserved.

26

FY3/2023 Earnings Forecasts and Target of Medium-Term Business Plan

Shareholder Return for FY3/2023［100 million yen］

FY3/2023
Excl. stock-based
compensation expense

Forecasts

we plan to return to shareholders
the amount equivalent to 30%

Net sales

1,800

-

EBITDA※150-of the estimated net profit

Operating profit

77

132

Excluding the impact from the stock-based

Ordinary profit

75

130

Net profit attributable to UT Group32

87

compensation expenses,

79.28

215.54

26

26

81%

30％

EPS (yen)

Total return to shareholders
Total return ratio

and to make a total shareholder return ratioof around

81%.

※EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets) + Amortization + Stock-based compensation expenses

Copyright © UT Group Co., Ltd. All Rights Reserved.

27

FY3/2023 Earnings Forecasts and Target of Medium-Term Business Plan

The Target of the 4th Medium-term Business Plan
Sales target
Result［100 million yen］

EBITDA target※1
ResultTarget

CAGR

23.8%

TargetCAGR

FY3/22

FY3/24

The 4th Medium-Term Business Plan

Copyright © UT Group Co., Ltd. All Rights Reserved.

304

30.0%
229

150

1,800

FY3/23

EPS excl. stock-based compensation expense

190

1,151

FY3/21

Target

［yen］

CAGR

250

33.4%

2,700

EPS target※2
Result

2,200
1,567

［100 million yen］

FY3/2579

75

FY3/21

FY3/22

216

107

FY3/23

FY3/24

The 4th Medium-Term Business Plan

FY3/25※1 EBITDA = Operating profit+ Depreciation (Property, plant and equipment, and Intangible assets)+ Amortization + Stock-based compensation expenses

FY3/21

78

79

FY3/22

FY3/23

FY3/24

The 4th Medium-Term Business Plan

※2 EPS of FY3/2024 and FY3/2025 are diluted

FY3/2528

UT Group’s Growth Potential

Copyright © UT Group Co., Ltd. All Rights Reserved.

29

29

UT Group’s Growth Potential

Since the establishment (FY3/1996),
we’ve consistently been achieving high sales growth.
180 BY,800,600

40％ CAGR

,400

,200

,000

since establishment

800
600
400
200

Sales

0

FY3/1996
Copyright © UT Group Co., Ltd. All Rights Reserved.

FY3/2009

FY3/2023(F)

30

UT Group’s Growth Potential

UT’s Growth is less susceptible to economic fluctuations
IT recession

Global financial crisis

COVID-19

1.2

,800
1.15

,600

1.1

Industrial Production Indicator
By Ministry of Economy, Trade and Industries

,400
1.05

,200 1 100
0.95

,000

0.9

800
0.85

600
0.8

400
200

Sales

0

FY3/1996

FY3/2001

Copyright © UT Group Co., Ltd. All Rights Reserved.

FY3/2009

FY３/2021
Source: Ministry of Economy, Trade and Industries “Industrial Production Indicator”

31

UT Group’s Growth Potential

A strategy to capitalize on economic fluctuations and increase market
share in client factories
Increase share by leveraging
strength in hiring

Close contact with clients tominimize the impact of
reduction

Increase share by leveraging
strength in hiring

Economy and UT’s share

Increase the factory share by quickly

Having the top share strategy that

Further increase the factory share byhiring to meet rapidly recovering

reduces the risk of cancellations whenquickly hiring to fill open spots fordemand for workers. The ability to hire

worker demand declines due to reduced

dispatched workers when the demand

1,500 workers per month is a

production means that the rate of decline

declines.

competitive advantage.

in dispatched workers is smaller than at
peers.

Economic recovery andboom period

Economic downturn andrecession period

Economic recovery andboom period

UT’s share

Economic cycle
Time
Copyright © UT Group Co., Ltd. All Rights Reserved.

32

UT Group’s Growth Potential

A strategy to capitalize on economic fluctuations and increase market
share in client factories

About the top strategy
UT’s Manufacturing Business is
promoting the strategy, based on the

Mechanism to expand factory share by the top share strategy
Normal production phase

Production reduction phase

Production recovery phaseanalysis at the time of the global financial
crisis that showed that dispatchedcompanies with a higher share in thefactory received less cancellation or
reduction in dispatched workers.

UT

Features of the top-share factories
Reduction in workers

Less cancellation or reduction

Multiple dispatched companies

A strong relationship with clients results inreceiving a lower impact of cancellations andreductions relative to that of peers.

High profit marginMore technical employees in a single factorymeans higher management efficiency.

Copyright © UT Group Co., Ltd. All Rights Reserved.

It is difficult to increase UT’s
dispatched workers because a client
factory that normally operates with 10
workers has no further demand forworkers.

If the production volume decreases,

For normal production, the client

the client starts reducing workers fromneeds five workers which had been

dispatched companies having a lower

reduced and the share of UT, whichshare. Workers of UT (the top share)

has strength in hiring, will increase.

are not reduced.

33

UT Group’s Growth Potential

A strategy to capitalize on economic fluctuations and increase market
share in client factories

The share of UT’s technical employees in dispatched workers
of production processes in Japan
9.0%

Significantly increased
market share

8.0%
7.0%
6.0%
5.0%

Covid-19 impact

4.0%
3.0%

by strengthening hiring
during a period of recovery in demand

2.0%
1.0%
0.0%

2013

2014

2015

2016

2017

2018

2019

2020

2021

※Calculated by dividing the number of technical employees by the number of dispatched workers of production processes*(*Source: Basic Data of Labor Force Survey, Ministry of Internal Affairs and Communications (2021) )Copyright © UT Group Co., Ltd. All Rights Reserved.

34

UT Group’s Growth Potential

Expansion of business areas for sustainable growth
Area BusinessStarted worker dispatch in local areas to respond to desire of workers who want to work locally.
Aggressively acquire companies to expand business scale.

Solution BusinessStarted business to support mobilization of personnel by receiving workers from clientcompanies after structural reform.
Supported personnel mobilization of the Panasonic, Fujitsu, Toshiba and Hitachi Groups.

Manufacturing Business
Promoted a niche strategy to focus on the semiconductor sector in the 2000s.
After the global financial crisis (around 2008), expansion to other areas including theTransportation Equipment sector, capturing the recovery period.

Developing the business in the Electronics sector
2000

2010

2020
※ Outline of accumulated sales since foundation

Copyright © UT Group Co., Ltd. All Rights Reserved.

35

UT Group’s Growth Potential

Competitive advantage and growth strategies
Industry-leading quality services
A large numberof employees+

Hiringcapability+

Human resources
development

Business strategy
focused on local areas

Business strategy focused on large companies
Demand for large numbers ofhighly skilled personnel+

High retention
rate

Demand in structural reform

Personnel demandin local areas

Changes in the environment to encourage use of dispatchedworkers, rather than regular or contract employees

Regulation changes
Copyright © UT Group Co., Ltd. All Rights Reserved.

+

Difficulty in hiring
36

UT Group’s Growth Potential

Demands in structural reform and for switching to dispatched workers are increasing
Non-regular workers

2.43mnProduction process
workers

7.66mnDemand in structural reformof large companies

Regular employees

Employees/workers(excl. executivesof companies)

5.23mnDispatched workers

0.37mnNeeds to switch “contract workers”
to “dispatched workers”
Contract workers

0.38mn56.71mn

Office workers, etc.

49.05mn

Copyright © UT Group Co., Ltd. All Rights Reserved.

Market subjected toWorker Dispatching Act

Revised Labor Contract Law (2013)
Requirement for companies to givean open-ended contract totheir fixed-term contract workers
with contract periods of over five years

Office workers, etc.

1.68mnFrom the Labor Force Survey, Statistical Bureau, Ministry of Internal affairs and Communications basic data for 2021)

37

UT Group’s Growth Potential

UT will lead the market with further increase in market share

FY2022/3
Manufacturing
dispatch market

31k

370k
increase to

From the Labor Force Survey, Ministry of Internal Affairs and Communications basic data for 2021)/8.5％

by FY2025/3

workers（2021）

Copyright © UT Group Co., Ltd. All Rights Reserved.

workers

50-60kworkers38

UT Group’s Growth Potential

The Target of the 4th Medium-term Business Plan（Repost）
Sales target
Result［100 million yen］

EBITDA target※1
ResultTarget

CAGR

23.8%

TargetCAGR

FY3/22

FY3/24

The 4th Medium-Term Business Plan

Copyright © UT Group Co., Ltd. All Rights Reserved.

304

30.0%
229

150

1,800

FY3/23

EPS excl. stock-based compensation expense

190

1,151

FY3/21

Target

［yen］

CAGR

250

33.4%

2,700

EPS target※2
Result

2,200
1,567

［100 million yen］

FY3/2579

75

FY3/21

FY3/22

216

107

FY3/23

FY3/24

The 4th Medium-Term Business Plan

FY3/25※1 EBITDA = Operating profit+ Depreciation (Property, plant and equipment, and Intangible assets)+ Amortization + Stock-based compensation expenses

FY3/21

78

79

FY3/22

FY3/23

FY3/24

The 4th Medium-Term Business Plan

※2 EPS of FY3/2024 and FY3/2025 are diluted

FY3/2539

UT Group’s Growth Potential

Three measures to accelerate corporate growth
Enhanced development ofhighly-skilled personnel

Productivity improvement

Enhanced hiring systemat the technology skill development
centers for SME engineers

by reorganization and standardizationof business infrastructure

by integrating group-wide hiring
activities

Average salary of tech employees

SG&A expenses to sales

Monthly hiring by UT Group

20％ increase*

10％ level

2,000 new hires※2021年3月期と比較した2025年３月期の目標
Copyright © UT Group Co., Ltd. All Rights Reserved.

40

UT Group’s Growth Potential

Continuously strengthen the hiring system to achieve both growth in thenumber of hires and cost efficiency
 Build a hiring system that takes advantage of UT Group’s merits of scale Provide the content that job seekers need with revamped owned media
 Use DX to automate the process from application to hiring
FY3/2022

FY3/2023

FY3/2024

FY3/2025

・Maximized hires in the demand
expansion period・Integrate hiring functions of the Group・Revamp the owned media

・Strengthen the owned media’s functions
・Automate the matching・Strengthen measures to retain
job seekers

Monthly hires

Unit cost of hiring

1,471¥340,000

Copyright © UT Group Co., Ltd. All Rights Reserved.

Monthly targetof hires (target)

Unit cost of hiring(target)1,300¥300,000

Monthly targetof hiresapprox. 1,600

Unit cost of hiring
approx. ¥290,000

Monthly targetof hiresapprox. 2,000

Unit cost of hiring
approx. ¥280,000

41Appendix

Copyright © UT Group Co., Ltd. All Rights Reserved.

42

Appendix

Newly-consolidated company’s contribution

Contribution of newly-consolidated company to 3Q of FY3/2023

Business Segment

SubSegment

Consolidated subsidiary

Solution Businessー

UT FSAS Creative Inc

Total

Copyright © UT Group Co., Ltd. All Rights Reserved.

Former Fujitsu FSAS Creative Inc.

Time ofconsolidation

Oct. 2021*consolidation impact
has already ended.

Contribution to FY3/2022
Net Sales(billion yen)

2.4

Number of technicalemployees (2Q-end)

872

2.4

43

Appendix

Analysis of SG&A expenses(100 million yen)

FY3/2019

FY3/2020

FY3/2021

FY3/2022

FY3/2023

１Q

２Q

３Q

４Q

Full year

１Q

２Q

３Q

４Q

Full year

１Q

２Q

３Q

４Q

Full year

１Q

２Q

３Q

４Q

Full year

１Q

２Q

３Q

personnel
expenses

1,301

1,409

1,486

1,677

5,873

1,574

1,522

1,530

1,467

6,093

1,665

1,981

1,828

1,837

7,311

2,246

2,362

2,547

2,391

9,546

2,403

2,414

2,393

ratio to sales

5.5%

5.7%

5.5%

6.6%

5.8%

6.1%

5.9%

6.1%

6.0%

6.0%

6.4%

7.3%

6.2%

5.7%

6.4%

6.4%

6.3%

6.1%

5.6%

6.1%

5.8%

5.7%

5.5%

Hiringexpenses

833

993

724

289

2,839

490

527

496

341

1,854

151

267

770

1,218

2,406

1,215

1,608

1,575

1,719

6,117

877

1,041

817

ratio to sales

3.5%

4.0%

2.7%

1.1%

2.8%

1.9%

2.0%

2.0%

1.4%

1.8%

0.6%

1.0%

2.6%

3.7%

2.1%

3.5%

4.3%

3.8%

4.0%

3.9%

2.1%

2.4%

1.9%

depreciation andamortization of
goodwill

140

145

155

161

601

137

139

142

145

563

171

181

218

256

826

309

303

305

30７

1,22５

267

308

320

ratio to sales

0.6%

0.6%

0.6%

0.6%

0.6%

0.5%

0.5%

0.6%

0.6%

0.6%

0.7%

0.7%

0.7%

0.8%

0.7%

0.9%

0.8%

0.7%

0.7%

0.8%

0.6%

0.7%

0.7%

Other

801

879

933

729

3,342

889

841

803

923

3,456

883

831

1,029

1,152

3,895

1,058

1,086

1,196

1,285

4,625

1,083

1,053

990

ratio to sales

3.4%

3.5%

3.5%

2.9%

3.3%

3.5%

3.2%

3.2%

3.8%

3.4%

3.4%

3.1%

3.5%

3.5%

3.4%

3.0%

2.9%

2.9%

3.0%

3.0%

2.6%

2.5%

2.3%

SG&A
Expenses

3,075

3,426

3,298

2,856

12,65
5

3,090

3,029

2,971

2,876

11,96
6

2,870

3,260

3,845

4,463

14,43
8

4,828

5,359

5,623

5,703

21,51
3

4,631

4,817

4,521

ratio to sales

13.0% 13.8% 12.2% 11.2% 12.5% 12.0% 11.7% 11.8% 11.8% 11.8% 11.1% 12.0% 13.0% 13.7% 12.5% 13.7% 14.3% 13.6% 13.3% 13.7% 11.1% 11.3% 10.3%
Results for 3Q FY3/2023 exclude the one-off impact from the stock-based compensation expenses

Copyright © UT Group Co., Ltd. All Rights Reserved.

44

Appendix

Overview of Segment Reclassification○ From “Manufacturing Business” centered on the business for major manufacturers, “Area Business” and “Overseas Business”
with different business characteristics were separated. And the classification changed to 5 segments.
After (from April 2022)

Before (up to March 2022)
Manufacturing Business

Semiconductors and electronic
components
Automotive-related(New)
Manufacturing BusinessHousing-related
Other

Area BusinessIndustrial and Commercial
Machinery
Electronics
Transportation Equipment
Other(Overseas)(New) Solution Business

Solution BusinessEngineering Business

Design and Manufacturing
Engineers(New) Engineering Business

Construction Engineers
IT Engineers

Construction Engineers
IT Engineers

Copyright © UT Group Co., Ltd. All Rights Reserved.

Overseas Business
45

Appendix

Segment composition（Nine-month period of FY3/2023）
Overseas Business

Manufacturing Business

Personnel services in Vietnam

6.8 BY（5.4 ）Industrial and Commercial
Machinery
14%%

Engineering Business51%%

62.2 BY（48.6 ）%Net Sales

Engineer dispatch service
in construction and IT field

6.7 BY（5.3 ）Personnel services for major manufacturers

128 BY

Electronics
18%（2022年3月期）

Transportationequipment
Other
16%
1%

Solution BusinessSupporting structural reform and personnel services

13.9 BY（10.9 ）%Copyright © UT Group Co., Ltd. All Rights Reserved.

Area Business

Area-based personnel services

38.2 BY（29.9 ）%46

Appendix

Manufacturing Business
Development and provision of manufacturing workers

Deepen the One-stop Strategy to provide personnel to large manufacturers〇 Enhance competitiveness of the core business of manufacturing dispatch to large manufacturers and use the existingclient base to expand into dispatching of manufacturing engineers.
〇 The semiconductor manufacturing equipment (SME) engineers (previously in the former Engineering Business segment)
has been reclassified to the (new) Manufacturing Business segment in order to provide one-stop services to clients of
the Manufacturing Business segment.

Before (up to March 2022)
・UT Aim
Manufacturing Business
Manufacturing Business Department

Solution BusinessEngineering Business

Copyright © UT Group Co., Ltd. All Rights Reserved.

・UT Pabec: Battery manufacturing

After (from April 2022)
UT Pabec was merged to the Manufacturing Business Department of UT Aim.

(New) Manufacturing Business ・UT Aim

・UT Aim
A part of Design and Manufacturing
Engineers47

Appendix

Area Business
Expand the Area Platforms

Expand the Area Platform Strategy〇 Accelerate alliances with and M&As of local dispatch companies to enhance the workplace quality in areas, integrate career platforms,
and improve profitability.
〇 Local dispatch companies which joined the UT Group were merged to UT Connect (renamed from UT Community) in April 2022. Aim to
improve productivity by standardizing the business base.

Before (up to March 2022)

After (from April 2022)

・UT Aim’s Area Strategy Department
Manufacturing Business ・UT Community・Support System
・Seekel Holdings
・Seekel・UT Progress
・UT SURI-EMU

All the companies on the left, excluding UT SURI-EMU, were absorbed to
UT Community, which then changed its name to UT Connect.

Solution Business

Copyright © UT Group Co., Ltd. All Rights Reserved.

Area Business・UT Connect
・UT SURI-EMU

・UT HP

48

Appendix

Solution Business
Promoting the support for personnel mobilization

Expand the Solution Strategy〇 Promote the support for personnel mobilization and ensure to capture a growing demand for large companies’ structural reforms, driven by
the changing business environment.
〇 The segment is mainly consisted of operating companies with minority shareholders to enhance the relationship with large corporate groups.

Before (up to March 2022)
Solution Business・FUJITSU UT・UT Toshiba
・UT FSAS Creative・UT MESC・UT Pabec
・UT HP

After (from April 2022)
UT Pabec was reclassified to the Manufacturing Business Segment, and UT HP to
the Area Business Segment. UT System Products was sold at the end of March 2022.

Solution Business・FUJITSU UT・UT Toshiba
・UT FSAS Creative・UT MESC・UT System Products

Copyright © UT Group Co., Ltd. All Rights Reserved.

49

Appendix

Engineering Business

Overseas Business

Development of high-skill engineers

Establishment of the empowered environment for non-Japanese workers

M&As to expand business base

M&As to expand business base

〇 Establish a business base by enhancing functions throughalliances with major companies and acquisition of engineer
dispatch companies.
〇 SME engineers were reclassified to the (new) Manufacturing
Business Segment so as to focus on construction engineers andIT engineers for establishing a business base.

〇 Establish the overseas personnel service business throughoverseas alliances and M&As, while solidifying a base for the
personnel management agency business in Japan.

Before (up to March 2022)

After (from April 2022)

Before (up to March 2022)

After (from April 2022)

Engineering Business(New) Engineering Business

Manufacturing Business

Overseas Business・UT Construction
・UT Technology

・Green Speed Joint Stock
Company・Green Speed Co., Ltd.
・Hoang Nhan Company Limited

・UT Aim
Some of Design and
Manufacturing Engineers
・UT Construction
・UT Technology
Copyright © UT Group Co., Ltd. All Rights Reserved.

・Green Speed Joint Stock
Company・Green Speed Co., Ltd.
・Hoang Nhan Company Limited
50Appendix

Performance-linked stock acquisition rights, Stock-based compensation expenses
Overview of the performance-linked
stock acquisition rights

Resolved by the Board of Directors(2020/5/20)

When to recognize stock-based compensation expenses

Objective
to strengthen our commitment to pursuit of expanding corporate value of
the Company in the medium- to long-term.

As the condition A is supposed to be met in FY3/2023, 5.5 billion yen ofstock-based compensation expenses is included in FY3/2023 Earnings
Forecasts.

Total number of stock acquisition rights:
80,592 units (equivalent to 20% of issued shares) * At the issuance

When it is found that the performance conditions are met, the stockbased compensation expenses will be recognized.

Conditions for exercise of stock acquisition rights
If any of (A), (B), and (C) below is fulfilled (one time only)

Due to the adoption of the accounting treatment of the paid stock
option since April 2018, the stock-based compensation expenses are
considered as compensation for labor when its performance conditions
are achieved and the expenses are to be recorded as expenses(SG&A expenses).

A： EBITDA of ¥15 billion or more in any of FY3/2021-FY3/2024
B： EBITDA of ¥20 billion or more in any of FY3/2021-FY3/2025
C： EBITDA of ¥30 billion or more in any of FY3/2021-FY3/2027
Exercise period
May 1, 2021 to April 30, 2028
The exercise condition is a profit growth of 1.7-2.9 times EBITDA
in FY3/2020, even though dilution of up to 20% will occur.

The stock-based compensation expenses of ¥5.5 billion has beenrecognized as expense for accounting purposes, do not involve cashout, and do not affect cash and deposits.
When all the rights are exercised, cash will increase and be transferred
to stated capital and additional paid-in capital.

※EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets) + Amortization + Stock-based compensation expenses
Copyright © UT Group Co., Ltd. All Rights Reserved.

51

Appendix(Ref.) Accounting treatment of stock acquisition rights without contribution with no
performance conditions
Value of stock-acquisition rights

Case of stock-acquisition rights without contribution (Exercise price X and Issued shares Y)

Compensation for work

Stock-acquisition rights are considered as compensation for work and the fair value of 100
is prorated by period from the grant date to the vesting date as stock-based compensation
expense (stock-acquisition rights being the offset account.)

Stock-based
compensation
expenseAfter being exercised, the stock-acquisition rights are journalized as capital.

50

Fair value with noconsideration to
performance
conditions

100

Compensation for work

Prorated fair value of 100 by period

Stock-based
compensation
expense50

Requisite
service period

ExerciseperiodYear 1

Year 2Grant date

Vesting date

Debit

CreditDebit

CreditDebit

Stock-based
compensation
expenseStockacquisitionrightsStock-based
compensation
expenseStockacquisitionrightsStockacquisitionrights

50

50

50

50

100

CreditCapital100+XYCash
Copyright © UT Group Co., Ltd. All Rights Reserved.

XY

52

Appendix(Ref.) Accounting treatment of performance-linked stock acquisition rights with contribution
Compensation for workwhen the conditions are met

Fair pricewithout
considering theconditions

×

Allotted
units

90

90

100

Fair value which
considers theconditions

Value of stockacquisition rights

Year 1

Copyright © UT Group Co., Ltd. All Rights Reserved.

Performance condition
evaluation period

Exercise period
Year N

Vesting date

Debit

Credit

Debit

Cash

Stockacquisitionrights

Cash

10

10

After being exercised (at the exercise
price X), the stock-acquisition rights arejournalized as capital.

Fair price which considers the conditions
X Alloted units

10

Grant date

When the probability of achieving
performance conditions becomes high,the remaining 90 is recorded as stockbased compensation expense (stockacquisition rights being the offset
account.)

Stock-based
compensation
expenseExpensed when the conditions are met

Balance
Fair value without
considering theconditions

Performance-linked stock acquisitionrights are recorded as “performancelinked fair value of 10” on the grant date.

10

Stock-based
compensation
expense90

CreditStockacquisitionrights100

Debit
Stockacquisitionrights100

CreditCapital100+XY

Cash

XY

53

Appendix【UT Group】 Accounting treatment of performance-linked stock acquisition rights with contribution
Compensation for workwhen the conditions are met

Fair price without
considering theconditions¥76,412 ×

Expensed when the conditions are met

Balance

Allotment

80,726 units

Fair value without
considering theconditions¥5.5B

When the probability of achieving
performance conditions becomes high, theremaining ¥5.5 billion will be recorded as
stock-based compensation expense (stockacquisition rights being the offset account.)

¥5.5B

¥6.1B

Fair value which
considers theconditions

Value of stockacquisition rights

Year 1

Grant dateat the time of resolution by the Board of Directors (2020/5/20)

Performance condition
evaluation period

Exercise period
Year X

Vesting date

Debit

Credit

Debit

Cash

Stockacquisitionrights

¥0.6B

¥0.6B

¥0.6B

In the case of full exercise of all the stockacquisition rights, ¥21.1 billion (the exercise
price of ¥1,859 X 8.07 million shares) will bejournalized as capital.

Exercise price ¥7,480×Allotment 80,726 units¥0.6B

Copyright © UT Group Co., Ltd. All Rights Reserved.

Stock-based
compensation
expense¥0.6 billion was already recorded as
performance-linked fair value of the stockacquisition rights which considers theconditions on the grant date.

CreditCash

Stock-based
compensation
expense¥5.5B

Stockacquisitionrights

¥6.1B

Debit
Stockacquisitionrights¥6.1B

CreditCapital¥21.1BCash¥15.0B

54

Appendix

Medium-term business objective

Create a “diversity & inclusion” workstyle platform

On the basis of its established business base,
UTGroup willrealize a vigorous work

environment for everyone who is willing towork as well as an environment that enables
workers to grow even in changing businessconditions of client companies. This is how UTGroup aims to realizes a sustainable society.

Copyright © UT Group Co., Ltd. All Rights Reserved.

55

Appendix

Growth strategies
Prolonged implementation of the COVID-19 prevention measures and economic slowdown
Decline in consumption and production activities; depressed demand for personnel

Maintain employment to the extent possible andminimize a decline in technical employees

Smaller dispatched companies
fall into financial distress

A new hiring/development base for manufacturers

M&As to accelerate industry consolidation

One-stop strategy for
major manufacturers

Increase in structural reformby large manufacturers

Accept workers from large companies

Area platform strategy

Solution strategy

Create a “diversity & inclusion” workstyle platform
Measures for economic recovery are expected to produce
a V-shaped recovery and enable UT Group to achieve its plans
Copyright © UT Group Co., Ltd. All Rights Reserved.

56

Appendix

Change in business segments corresponding to growth strategies
Segments to promote
the growth strategies of
the Fourth Medium-term
Business Plan

Segments to establish abusiness base from alonger-term perspective

Manufacturing Business

Area Business

Solution BusinessOne-stop Strategy to Large Manufacturers

Area Platform Strategy

Solution Strategy

Development of manufacturing workers
into effective workforce

Creation of jobs nationwide

Support to personnel mobilization aimed
at enhancing corporate competitiveness

Provide personnel services from hiring of personnel

Establish an employment base in various areas of Japan

Support personnel mobilization by creating workplaces

needed by large manufacturers to their retention andto respond to demand for local jobs. Raise workplacefor excess workers of large corporate groups, whichdevelopment into effective workforce. Aim to expand its

satisfaction and market shares in various parts of Japan byhave personnel issues and demand for structuralshare in the client workplace by one-stop provision ofpromoting alliances with large companies and acquisition

reform.

personnel, from workers in production process toof engineer dispatch companies, and integrate theengineers.

business base to improve profitability.

Engineering Business

Overseas Business

Development of high-skill engineers

Establishment of the environment for
non-Japanese workers to work
vigorously

Secure workers with hiring and the use of the intra-

Plan to establish an overseas personnel service

group transfer system One UT and develop those withbusiness through overseas alliances and acquisition in

no experience in the construction and IT sectors. Aimorder to create workplaces where foreign interns in

to enhance functions and establish a business base

Japan can work empowered back at their homethrough alliances with large companies and acquisition

country.

of engineer dispatch companies.
Copyright © UT Group Co., Ltd. All Rights Reserved.

57

Appendix

Numeric Targets and Commitments
As sales target for FY3/2023 was realized one year ahead of schedule in FY3/2022, werevised earning targets of FY3/2023 - FY3/2025 (announced May 13, 2022).

Sales target［100 million yen］

Targets

Results

EBITDA※ target
Results［100 million yen］

Targets

250

2,700
190
150

We intend to achieve both a high growth and a stable financial position by balancing debts withshareholders’ equity, which stems from efficient business operation and capital policy.

Total return ratio

The total return ratio represents the proportion of shareholder return to net profit.
Total return ratio = (Dividends + Shares bought back) / Net profit after tax

75

FY23

FY24

FY25

The 4th Medium-Term Management Plan
Copyright © UT Group Co., Ltd. All Rights Reserved.

FY20

FY21

Total return ratio: 30% or more

Gross D/E ratio: 1.0 or less (at the end of FY3/2025)

49

FY22

The UT Group emphasizes earnings growth as much as sales growth by business expansion. The
Fourth Medium-term Business Plan includes strategic M&A activities aimed at formation of a longterm business base. We therefore use EBITDA to show our commitment in earnings growth andset 30% or more CAGR in EBITDA for the period starting from FY3/2021.
The UT Group recognizes return to shareholders as an important management priority. We intend
to achieve a corporate growth through strategic investment as well as return to shareholders. We
are committed to a total return ratio of 30% or more by dividend payment and share buyback.

100
79

86

1,300

FY21

Commitments

EBITDA growth rate: 30% or more (CAGR starting from FY3/2021)

2,200
1,800

1,567
1,151

1,038

1,011
FY20

We are determined to achieve M&A-driven growth andfinancial stability, and to ensure return to shareholders.

Gross D/E ratio
FY22

FY23

FY24

FY25

The 4th Medium-Term Management Plan

The gross debt/equity ratio indicates the ratio of interest-bearing debt to shareholders’ equity of
the fundsources of a company. A ratio of 1.0 or less is generally regarded as indicating a healthyfinancial position.

※EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets)+ Amortization + Stock-based compensation expenses

58

FY3/2023 Earnings Forecasts and Target of Medium-Term Business Plan

Sales have been increasing ahead of the initial plan
Based on sales which have been increasing ahead of the plan, we plan tofurther increase sales and improve productivity so as to raise profitability
Sales target
Result(100 million yen)

Initial Target

2,700

Revised Target

EBITDA target*
Result(100 million yen)

Revised Target

Initial Target

300

2,200
1,567
1,011

FY20/3

1,151 1,300

1,800 1,800

2,000

1,500

86

1,038

FY3/21

150
79

100

75

190

250

200

150

120

49

FY3/22

FY3/23

FY3/24

The 4th Medium-Term Management Plan
Copyright © UT Group Co., Ltd. All Rights Reserved.

FY3/25

FY20/3

FY3/21

FY3/22

FY3/23

FY3/24

FY3/25

The 4th Medium-Term Management Plan

※EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets) + Amortization + Stock-based compensation expenses

59Appendix

Corporate Outline
Corporate Outline

As of Dec. 31, 2022

Corporate name:

UT Group Co., Ltd.

Founded:April 2, 2007

Capital:

680 million yen

Listing:

TSE Prime Market (Securities code: 2146)

Representative:

President, Representative Director & CEO
Yoichi Wakayama

Location:

1-11-15 Higashi-Gotanda, Shinagawa-ku, Tokyo

Group Companies

UT AimManufacturing personnel services

As of Dec. 31, 2022

UT Technology

IT engineer outsourcing

UT Construction
UT Connect

Construction engineer outsourcing

UT SURI-EMU

Green Speed Joint Stock Company

General personnel dispatch and outsourcing

General personnel dispatch and outsourcing

General personnel dispatch and outsourcing in
VietnamNumber of issued andoutstanding shares :40,363,067 shares

Number of shareholders:

4,855

FUJITSU UTGeneral personnel dispatch and outsourcing

UT Life Support

UT Toshiba

UT Heartful

General personnel dispatch and outsourcing

Internal benefit program management
Special subsidiary company

UT FSAS Creative

Office work and IT personnel dispatch andoutsourcing of operations system management
and help desks

UT MESC

Elevator/escalator manufacturing outsourced
work and dispatch of design engineers

Copyright © UT Group Co., Ltd. All Rights Reserved.

60

Appendix

The Leading Company in Manufacturing Dispatch Industry
FY3/2022

Creating vigorous workplaces empowering workers.

Domestic Technical employees

31,636Adopting the twin customer strategy that identifies both workers and companies as clients,
UT Group transformed the process of manufacturing worker dispatch into a sustainable business model thatfacilitates growth by both workers and companies.
Create a “diversity & inclusion” workstyle platform.

Consolidated sales¥156.7bn

600
30
400
200

Spread of COVID-19 infection

Number of technical employees

25

Sales from dispatch and outsourcedwork000

Dispatching employees to manufacturers and dispatchingengineers (Design and development, design and software,outsourced work, contracts for work at plants)

800

Sales from other businesses

600

Businesses related to semiconductor manufacturing equipment andother manufacturing equipment

20
15

Global financial crisis

10
400

0

5

IT bubble burst

200

FY3/1996

FY3/2000
Starts contractsfor
entire processes

Founded as a business dispatching
employees to manufacturers
Copyright © UT Group Co., Ltd. All Rights Reserved.

FY3/2005

FY3/2010

Starts the semiconductor
manufacturing equipment
business
Becomes the first listed company
in the manufacturing worker
dispatch industry
Specializes in semiconductor manufacturing

FY3/2015

Sells the semiconductor manufacturing
equipment business Focuses on worker
dispatch and contracts for work0

FY3/2020
Changed to the First
Section of the Tokyo Stock
Exchange.
Received the Porter Prize.
61

Appendix

UT Group’s Mission and Vision
MissionCreate vigorous workplaces empowering workers.
UT Group givesopportunities to its entire workforce totake on challenges.

We believe that bravely taking on a challenge to achieve ahigh goal helps a person growand brings joy to that person.

We further believe that such a vigorous work
attitude results in a better response to client expectations
and in contributing to a better future forJapan.

Strategy to make workers vigorous and empowered
Job security and stability

Team dispatch and support for careerdevelopment

Developing motivation● Regular employment (open-ended employment)● Start-to-finish outsourced production service● Entry system for positions● Company housing all over the country● Cultivation of inexperienced employees by teams● Fulfilling welfare benefits● Career consulting● Job change within the group (One UT/STEP UT)● Engineer development program

Share profit from enhanced corporate
value with employees● Measures to encourage employees to become
shareholders● Management training
Executive officers

Managers(Head of workplace)
Employees in workplace

Copyright © UT Group Co., Ltd. All Rights Reserved.

62

Appendix

Twin-Customer Strategy and Career Platform

Stable supply ofhighly-skilled personnel

Companies

Individuals
Job seekers, employees

UT Group

Major manufacturing
companies

Provision of high-quality
workplaces

Copyright © UT Group Co., Ltd. All Rights Reserved.

63

Appendix

Twin-Customer Strategy and Career Platform

Stable supply of high-skill personnel
Boost income

Change labor costs tovariable costs

Careeradvancement

Dispatch quality workers

Career formation
support function

Labor issue
solutions

Raise skills

Work training

UT Group

Improve a sense of
self effectiveness
Career consulting

Enhancecompetence

Support structuralreformComply with labor laws

Support building
schemes

Provision of quality workplaces

Copyright © UT Group Co., Ltd. All Rights Reserved.

64

Appendix

Restrain new hires from quitting by consistent support for their growth The Area Business introduces in stages the On-Boarding Package, which removes factors to quit and creates factors to stayIntroduction of the On-Boarding Packages changes
the monthly quit rate of new hires

Before adopting the On-Boarding Package

11.6%

After adopting the On-Boarding Package(the outcome verified by the Area Business)

2.8%

Day 1 at UT Group

Week 2Month 1

New hires tend to want to quit, due to anxiety about
work and workplace

1.0%

Month 3Month 2

Sharp drop in wishes toquit

Begin to want to stay at work

Use of the On-Boarding Package

Greetpolitely on Day 1
Welcome orientation

Understand andrespondto employees’ conditions
Work report

Supportfor work

Understand andrespondTraining to acquire the work
ability

Interviews, AI analysis

Guide

to the next stage

to employees’ conditions

Follow-up training

About 700 Career Partners nationwide help new hires to get rid of anxiety and stay at work

Appendix

Enhancement of the systems that enable technical employees to advance theircareers
Good Job

A system that allows manufacturing operators andengineers to freely choose a workplace(Own workplaces can be selected)

One UT
STEP UT(Intra-group transfers)

Next UT

A system that supports career changes frommanufacturing operators to engineering jobs at
Group companies. Provides opportunities to build
various careers within the Group.

A system that supports the transfer to a clientcompany (mainly major manufacturers). Expand
career path options to motivate employees.

Clientcompanies

Good
Job

One UT

Manufacturing
operators

Good
Job

Engineers(Transfer from UT’s dispatched worker status
to being a client company’s full-time employee)
A voluntary nomination system to a manager or an
executive. The industry's first system that provides all
UT Entry
employees with a fair career opportunity regardless of
their years of service, experience, or age.
(Voluntary nomination to the positionof a manager or an executive)
Copyright © UT Group Co., Ltd. All Rights Reserved.

UT Group
General and managerial
positionsExecutive officers

66Appendix

Strongly promote SME engineer development
・Established four technology skill development centers for manufacturing engineers in the semiconductor field(Dec. 2020: Kitagami City in Iwate; March 2021: Yokkaichi City in Mie and Kumamoto City in Kumamoto; May 2021 Osaka
City in Osaka)・Targeting to produce 5,000 engineers in FY3/2022 – FY3/2025.

Technology Skill Development
Centers
Manufacturing operatorsfor semiconductor work

Kitakami

Yokkaichi

Kumamoto

Osaka

New graduates

Copyright © UT Group Co., Ltd. All Rights Reserved.

Semiconductor
manufacturing device
engineers

Mid-career workers

Practical training in a clean room67

Appendix

Tight supply and demand situation in the manufacturing industry due to thelabor shortage○ The jobs-to-applicants ratio for manufacturing jobs is more than doubled, reaching a record high since the monthly statistics
in 2012.
Jobs-to-applicants ratio(times)2022/12

2.07

1.97

2.0
1.8

Manufacturing jobs

1.6
Affected by
COVID-19

1.4

2022/121.31

1.2

Overall

1.0
0.8

2016年

2017年

2018年

2019年

2020年

2021年

2022年

Source: Ministry of Health, Labour and Welfare, The status of general job placements (seasonally adjusted)
Copyright © UT Group Co., Ltd. All Rights Reserved.

68Appendix

UT Group’s market share growth potential in the worker dispatch market
Japan's Labor Force Distribution "Regional Classification"
2021

Japan's Labor Force Distribution "Occupational Classification" (10k person)(10k person)

Average for FY 2021

Employees/workers (excl. executives of companies)

Employees/workers (excl. executives of companies)

RegularNon-regular
employees workers
Dispatched Contract
workers
workers

Domestic

Regularemployees

5,629

3,565

2,064

140

275

Hokkaido

218

133

85

4

13

Tohoku region

368

242

126

7

20

South Kanto region

1,759

1,124

635

51

North Kanto andKoshin regions

419

263

156

Hokuriku region

230

155

Tokai region

690

Kinki region

Overall

Non-regular
workers

Dispatchedworkers

Contract
workers

5,671

3,594

2,077

142

280

1,094

854

240

13

44

Clerical workers

94

1,310

899

411

50

79

Sales workers

11

18

727

432

295

5

23

Service workers

75

4

10

685

258

427

8

29

Security workers

434

255

20

27

128

96

32

-

10

891

543

348

23

42

Agriculture, forestry and fishery
workers

54

27

28

1

2

Chugoku region

314

204

110

6

12

766

523

243

37

38

Shikoku region

148

96

51

2

7

202

154

48

3

14

Kyushu region

532

333

199

10

26

181

159

23

0

7

61

37

23

1

5

443

143

300

21

31

56

26

30

4

3

Okinawa

Professional and engineering
workers

Manufacturing process workers
Transport and machine operation
workers
Construction and mining workers
carrying, cleaning, packaging, andrelated workers
Other

Source: Basic Data of Labor Force Survey, Ministry of Internal Affairs and Communications (2021)

Based on its infrastructure for manufacturing dispatch, UT Group has sufficient room for expansion of its area
bases and non-manufacturing occupations by replacing contract workers with dispatch workers.
Copyright © UT Group Co., Ltd. All Rights Reserved.

69

Appendix

Trends of Stock Price
Stock price (LH) and trading volume (RH)

(Yen / 10,000 shares)

400

5,000

Market capitalization(100 million yen)

2,000

350

4,000

300

1,800

250

3,000

200
2,000

1,600

150
100

1,000

1,400

50

0

2017

2018

2019

2021

2020

2022

(％)

(compared with the level on March 31, 2010)

800

UT Group

1,900

1,200

1,000

Changes in stock price
2,100

0

Nikkei Ave.

1,700

600

1,500
1,300
1,100

400

900
700
500

200

300
100
-100

0
2010年

2011年

2012年

2013年

2014年

Copyright © UT Group Co., Ltd. All Rights Reserved.

2015年

2016年

2017年

2018年

2019年

2020年

2021年

2022年

2010年

2011年

2012年

2013年

2014年

2015年

2016年

2017年

2018年

2019年

2020年

2021年

2022年

70

Appendix

Trends of Business Results

Net sales(100 million yen)

EBITDA(LH) and EBITDA% (RH)
100

1,500

500

0

10.0

EBITDAEBITDA%80
1,000(100 million yen, %)

8.0

60

6.0

40

4.0

20

2.0

0
2013/03

2014/03

2015/03

2016/032017/032018/03

2019/032020/032021/03

EPS and EPS growth rate
140

(Yen, %)100

EPS (after stock split adjustment)
EPS growth rate

120

0.0

2022/0380

2013/03

2014/03

2015/03

2016/032017/032018/03

2019/032020/032021/03

Total assets and Shareholders' equity (LH) ROA and ROE (RH)
600

Total assets

500

ROA

2022/03(100 million yen, %)60.0

Shareholders’ equity

50.0

100

60

80

40

60

20

40

0

200

20.0

20

-20

100

10.0

-40

0

0
2013/03

2014/03

2015/03

2016/032017/032018/03

2019/032020/032021/032022/03

ROE

40.0

400

30.0

300

0.0
2013/03

2014/03

2015/03

2016/032017/032018/03

2019/032020/032021/032022/03

ROA = [Net profit attributable to owners of the parent] / [Total assets] (fiscal year average)
ROE = [Net profit attributable to owners of the parent] / [Shareholders' equity] (fiscal year average)
Copyright © UT Group Co., Ltd. All Rights Reserved.

71

Appendix

Basic Policy on Shareholders’ Return
Basic policy on shareholders’ return

Total return ratio(Thousand yen)

UT Group’s management aims at establishing a stable
FY3/2018
FY3/2019
FY3/2020
FY3/2021
FY3/2022
financial position and promoting aggressive businessdevelopment to achieve high growth and ultimately Net profit
3,534,596
4,968,446
4,562,294
4,299,825
3,140,593
raise sustainable corporate value. UT Group regards
2,499,281
2,663,952
968,709
returning profits to shareholders as an important Dividends paid
management issue and intends to make an appropriate Amount of share
1,060,818
return to shareholders based on a total return ratio of buyback
30% or more by dividends and share buyback, which Total return
30.0%
50.3%
0.0%
62.0％
30.8%
helps improve capital efficiency, and in consideration of ratio
stock price level, business environment, and other *In light of changes in the business environment and other factors, shareholder return in FY3/2019 is all in the form of dividend
payment, including special dividend.
factors* Shareholder return for March 2020 has been postponed in consideration of the impact of the spread of the new coronavirus.
UT Group forwent return to shareholders in FY3/2020, *In FY3/2021, returns to shareholders were entirely in cash dividends. In addition to the ordinary dividend of 30% of net income,a special dividend (equivalent to 30% of net income for FY3/2020, payment of which had been forgone) was paid.
given consideration to the impact of the COVID-19
pandemic.
Total return ratio(Dividends share buyback)/Net profit≧30%

Copyright © UT Group Co., Ltd. All Rights Reserved.

72

Appendix

INTEGRATED REPORT 2022 was released
In FY3/2022, when demand for human resources rapidly recovered from the COVID-19 pandemic period, UTGroup focused on expanding its market share, creating better workplaces and strengthening hiring
activities. These efforts resulted in welcoming many new associates and creating workplaces for more than
30,000 technical employees in Japan.
Amid changes in the macroeconomic environment that cause great anxiety for working men and women, UTGroup has stuck to the basic management philosophy it has had since its founding: supporting thestable employment and growth of dispatch workers. We have thereby successfully “created vigorous
workplaces empowering people.“In the Integrated Report 2022, we devised ways to convey in a more easily understood manner how wesupport the stable employment of workers and their growth, by clarifying it within our unique value chain.
This is the second year that we produce an integrated report. We hope that the integrated report will be one of
the meaningful tools for constructive dialogue with stakeholders and ultimately for increasing
our corporate value.
Further information is also available on the Sustainability Part of our website.
Please download the Integrated Report from here:
https://ssl4.eir-parts.net/doc/2146/ir_material4/192255/00.pdf
Copyright © UT Group Co., Ltd. All Rights Reserved.

73

Create vigorous workplaces
empowering workers.
®

ＵT Group Co., Ltd.

Disclaimer[Inquiries]

This document has been prepared solely for the purpose of providing information regarding the Company’s business forecasts. The

UT Group Co., Ltd.

forward-looking comments and forecasts expressed in this document are the plans based on the Company’s judgment based on

IR Section

information available at the time of its preparation and are subject to change without notice. Actual results may differ from the above
forecasts, due to various factors.

e-mail: ir@ut-g.co.jp