Fiscal Year Ending March 31, 2022

Financial Results
May 13, 2022

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

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

FY3/2022 Financial Results
FY3/2022 Financial Results
1．Highlights
2．Progress of the 4th Medium-Term Business Plan
3．FY3/2023 Earnings Forecasts
4．Revision of Earnings Targets in the 4th Medium-term Business Plan

Appendix
1．Overview of FY3/2022 Financial Results
2．Information on Business Segments
3．FY3/2023 Earnings Forecasts
4．The 4th Medium-Term Business Plan (FY3/2021～FY3/2025)
5．About UT Group

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

1

FY3/2022 Financial Results

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

2

Contents
１. Highlights

Achieved record-high the No. of tech employees and Net Sales
through aggressive share extension
２. Progress of the 4th Medium-Term Business Plan

The 4th Medium-Term Business Plan progresses firmly by the 3 growth strategies
３. FY3/2023 Earnings Forecasts

Aim to achieve ¥15 billion EBITDA at the turning point
４. Revision of Earnings Targets in the 4th Medium-term Business Plan

Updated the Earnings Targets for FY3/2023 - FY3/2025
Copyright © UT Group Co., Ltd. All Rights Reserved.

3

Contents
１. Highlights

Achieved record-high the No. of tech employees and Net Sales
through aggressive share extension
２. Progress of the 4th Medium-Term Business Plan

The 4th Medium-Term Business Plan progresses firmly by the 3 growth strategies
３. FY3/2023 Earnings Forecasts

Aim to achieve ¥15 billion EBITDA at the turning point
４. Revision of Earnings Targets in the 4th Medium-term Business Plan

Updated the Earnings Targets for FY3/2023 - FY3/2025
Copyright © UT Group Co., Ltd. All Rights Reserved.

4

1. Highlights

Achieved record-high No. of tech employees and net sales
 Hired over 1,400 mid-career employees per month on average Expanded the Area Platforms through M&As of mid-sized dispatching companies Received new projects of Solution BusinessNo. of tech employees (Domestic)+33%

Net Sales

23,736
2,587
4,469

16,680+4%

5,852

EBITDA

1,567

31,6362,690+36%［100 Million yen］

1,151

+3%

162

+18%

+31%

79

167
350

297

＋38％

FY21/3Copyright © UT Group Co., Ltd. All Rights Reserved.

23,094692

FY22/3

FY21/3
Manufacturing Business

1,049

＋52％

Engineering Business

-6%
75

25

+0%

25

14

-9%

13

39

-9％

FY21/3

FY22/3
Solution Business［100 Million yen］

36

FY22/35

1. Highlights

Sharply increased sales due to aggressive share expansion
Net Sales［100 million yen］

Sales increase inexisting business

1,151

＋221

Contribution fromnewly-consolidated
companies

-5

1,567

＋199

Dispatched workers in the automotive-related sector* Jan. 2021 is indexed as 100.

170
160
150

Impact from lost work
due to automotive
production cut

140
130

+41.6 BY

The No. of dispatched workers has not been affected

120
110
100

FY21/3

列2

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

列3

列4

FY22/3

Intermittent production stop
Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

2021

2022
6

1. Highlights

Decreased profit due to an expense increase for acceleration of sales growth
EBITDA［100 million yen］

Contribution fromnewly-consolidated
Companies（Gross profit）

+31

79

Increase in company
housing expenses fornewcomers, etc.

-2

Impact from lost work
due to automotive
production cut

-16
-22

Increase in
hiring expenses

Increase inpersonnel expenses

＋41

-37

Impact fromsales growth inexisting business

Other

Increase in goodwill
amortization, etc.

-3

＋4

その他

のれん

75

-0.4 BY
FY21/3既存

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

新規

自動車

原価

人件費

募集費

FY22/37

1. Highlights

Summary of Statement of Income
FY3/2021

FY3/2022

Results % to net sales［100 million yen］

Y-o-Y change

Results % to net sales

Amount % to net sales

1,151

100.0%

1,567

100.0%+416+36.2%

Gross profit

216

18.8%

277

17.7%

+61

+28.6%

SG&A expenses

144

12.5%

215

13.7%

+71

+49.0%

Operating profit

71

6.2%

62

4.0%

-9

-12.6%EBITDA

79

6.9%

75

4.8%

-4

-6.1%

Ordinary profit

71

6.2%

59

3.8%

-12

-17.2%Net profit attributable to
UT Group

42

3.7%

31

2.0%

-11

-27.0%

No. of Tech employees(Domestic)

23,736－ 31,636－+7,900+33.3%

No. of Tech employees(Overseas)

13,276－ 13,750

－

+474

+3.6%

Net sales

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

Extraordinary profit/loss
・An extraordinary loss was recorded due to apartial delay in the posting of acquisition
expenses for newly-consolidated companies(SURI-EMU), which were acquired in two
batches in 2H FY3/2021 and 1H FY3/2022.
・Cost of reorganization related to the integrationof some operating companies was recorded in
April 2022.
Income taxes
・ Income taxes were deducted due to therequirements for tax applications concerning
the active recruitment of new graduates midcareer personnel were met.

8

1. Highlights

1. Highlights［100 million yen］

March 31, 2021
Results

Current assets

439

March 31, 2022

% to net
sales

Results

83.5%

497

% to net
sales

Change from the end of
the previous FY
Amount

%

77.6%

+57

+13.1%Cash and deposits

252

48.0%

258

40.3%

+5

+2.2%

Notes and accounts receivable –
trade

167

31.8%

214

33.5%

+46

+27.9%

86

16.5%

143

22.4%

+56

+65.3%

4

0.9%

14

2.2%

+9

+204.1%Intangible assets

55

10.5%

95

14.9%

+39

+71.6%

Goodwill

40

7.6%

57

9.0%

+17

+43.1%

Investments and other assets

26

5.1%

34

5.4%

+7

+28.2%

Total assets

526

100.0%

641

100.0%+114+21.7%

Current liabilities

225

42.8%

254

39.8%

+29

+12.9%

25

4.8%

38

6.1%

+13

+54.1%

99

18.8%

174

27.2%

+75

+75.8%

91

17.4%

159

25.0%

+68

+74.5%

201

38.4%

212

33.1%

+10

+5.1%

191

36.3%

195

30.6%

+4

+2.5%

Total liabilities and net assets

526

100.0%

641

100.0%+114+21.7%

Gross debt/equity ratio

0.6

ー

1.0

ー

－

－

Non-current assets
Property, plant and equipment

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

Current liabilities
Long-term borrowings

Net assets
Shareholders’ equity

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

Current assets
・cash and deposits, and accounts receivable –trade increased.
Non-current assets
・Goodwill, other intangible fixed assets due tothe acquisitions.
・Software in progress increased through aninvestment to system construction.
・Deferred tax assets, and investment securities
increased.
Current liabilities
・Notes and accounts payable – trade decreased
・Accrued expenses, current portion of long-termborrowings, and accrued consumption taxes
increased.
Non-current liabilities
・Long-term borrowings increased.
Net assets
・Recognition of profit attributable to owners ofparent and an increase in non-controllinginterests.
・Decrease due to dividend payments fromsurplus.
9

Contents
１. Highlights

Achieved record-high the No. of tech employees and Net Sales
through aggressive share extension
２. Progress of the 4th Medium-Term Business Plan

The 4th Medium-Term Business Plan progresses firmly by the 3 growth strategies
３. FY3/2023 Earnings Forecasts

Aim to achieve ¥15 billion EBITDA at the turning point
４. Revision of Earnings Targets in the 4th Medium-term Business Plan

Updated the Earnings Targets for FY3/2023 - FY3/2025
Copyright © UT Group Co., Ltd. All Rights Reserved.

10

2. Progress of the 4th Medium-Term Business PlanThree growth strategies are driving sales growthOne-stop strategy for
major manufacturers［100 million yen］

Net sales in the semiconductor and electronic component-related
sector, and Automobile-related sector of Manufacturing Business

Quarterly net sales

1.4×Area platform strategy

Net sales in Housing-related sector and “Other” sector of Manufacturing
Business

Quarterly net sales

2.2×

FY20/3 4Q

38
FY22/3 4Q

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

Solution strategy

FY20/3 4Q［100 million yen］

Net sales of Solution Business (personnel business only)

Quarterly net sales

2.2×

85

179
128

［100 million yen］

80
36

FY22/3 4Q

FY20/3 4Q

FY22/3 4Q
11

2. Progress of the 4th Medium-Term Business Plan

Strived to increase net sales and market share in the first 2 years
No. of monthly new hires (Domestic)［Person］

Our market share in manufacturing
dispatch industry

No. of hires［100 million yen］

Market share

2.4×Monthly sales (March)

1.6×
5.3%

1,471

Monthly sales of March (personnel business only)

1.8×

8.6%

370

370

K ppl

84

619
FY20/3

FY22/3

FY20/3

FY22/3

From the Labor Force Survey, Ministry of Internal Affairs and Communications
Copyright © UT Group Co., Ltd. All Rights Reserved.

153

K ppl

Mar. 2020

Mar.202212

2. Progress of the 4th Medium-Term Business Plan

Strived to increase net sales and market share in the first 2 years
Net sales targets and results

results

targets ［100 million yen］

2,000
1,800

1,567 1,500

Realized the net sales target for FY3/2023
one year ahead of schedule in FY3/2022

1,300

1,011

FY3/20

1,151
1,038

FY3/21

FY3/22

FY3/23

FY3/24

FY3/25

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

13

2. Progress of the 4th Medium-Term Business Plan

3 measures for further 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* Compared to FY3/2021
Copyright © UT Group Co., Ltd. All Rights Reserved.

14

Contents
１. Highlights

Achieved record-high the No. of tech employees and Net Sales
through aggressive share extension
２. Progress of the 4th Medium-Term Business Plan

The 4th Medium-Term Business Plan progresses firmly by the 3 growth strategies
３. FY3/2023 Earnings Forecasts

Aim to achieve ¥15 billion EBITDA at the turning point
４. Revision of Earnings Targets in the 4th Medium-term Business Plan

Updated the Earnings Targets for FY3/2023 - FY3/2025
Copyright © UT Group Co., Ltd. All Rights Reserved.

15

3. FY3/2023 Earnings Forecasts

Aim to achieve ¥15 billion EBITDA at the turning point
Assuming to meet the conditions for the exercise of the performance-linked acquisition rights,
5.5 billion yen will be recorded as stock-based compensation expenses, which is a one-off expense
item, in the consolidated income statement of FY3/2023.
［100 million yen］

FY3/2022
Results

Net sales
EBITDA※1

Operating profit before stock-based
compensation expense

FY3/2023% to net sales

1,567
75
62

100.0%
4.8%
4.8%

Forecasts% to net sales

1,800
150
132

Increase/decrease

Change100.0％+232+14.8%

8.3%+74+99.9%

7.3%+69+111.0%Operating profit

62

4.8%

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

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

16

3. FY3/2023 Earnings Forecasts

Policy on shareholder returns in connection with the recording of stock-based
compensation expenses
Shareholder return for the fiscal year when the stock-based compensation expenses are recorded
will be equivalent to 30% of net income excluding stock compensation-based expenses.
［100 million yen］

The 3rd-Plan

The 4th Medium-Term Management Plan

FY3/2020

FY3/2021

FY3/2022

Results

Results

Results

FY3/2023
excluding stockcompensation-based
expenses

Forecasts

FY3/2024

FY3/2025

Plans

Plans

Net sales

1,011

1,151

1,567

1,800

-

2,200

2,700

EBITDA

86

79

75

150

-

190

250

Operating profit

80

71

62

77

132

170

225

Ordinary profit

81

71

59

75

130

168

223

Net profit attributable to UT Group

45

42

31

32

87

111

147

Total return to shareholders

0

26

9

26

26

33～

44～

0%

62％

31％

81%

30％

30％～

30％～

※1

Total return ratio※2※1 EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets) + Amortization + Stock-based compensation expenses※2 Dividends for FY3/2021 included the addition dividends for FY3/2020, when the dividends were not paid due to the COVID-19 pandemic.
Copyright © UT Group Co., Ltd. All Rights Reserved.

17

Contents
１. Highlights

Achieved record-high the No. of tech employees and Net Sales
through aggressive share extension
２. Progress of the 4th Medium-Term Business Plan

The 4th Medium-Term Business Plan progresses firmly by the 3 growth strategies
３. FY3/2023 Earnings Forecasts

Aim to achieve ¥15 billion EBITDA at the turning point
４. Revision of Earnings Targets in the 4th Medium-term Business Plan

Updated the Earnings Targets for FY3/2023 - FY3/2025
Copyright © UT Group Co., Ltd. All Rights Reserved.

18

4. Revision of Earnings Targets in the 4th Medium-term Business Plan

Updated numerical targets for FY3/2023 and beyond
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

ResultInitial Target

Revised Target［100 million yen］

EBITDA target*

ResultRevised Target ［100 million yen］

Initial Target

2,700

300

2,200
1,567
1,011

FY20/31,151

1,800 1,800

2,000

1,500

86

1,300

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

19Appendix

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

20

Appendix

1．Overview of FY3/2022 Financial Results
2．Information on Business Segments
3．FY3/2023 Earnings Forecasts
4．The 4th Medium-Term Business Plan (FY3/2021～FY3/2025)
5．About UT Group

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

21

1. Overview of FY3/2022 Financial Results

Highlights of Consolidated Results
Net sales increased by ¥41.6 billion y-o-y, due to prompt hiring
in response to robust demand and the effect of acquisitions.
The number of tech employees increased by 7,900 y-o-y, on a net basis,
exceeding the previous highest net increase.
Net sales

EBITDA and EBITDA margin(Million yen)

EBITDA

156,769

9,000

8,604

7,991

7,502

-1.5%

7,000

＋36.2%

5,000
4,000

4.8%

2,000

0

FY3/2021

FY3/2022+33.3%+20.9%

4.0%
2.0%

1,000

FY3/2020

19,634

6.0%

6.9%

23,736

12.0%

8.0%

8.5%

3,000

31,636

14.0%

10.0%

-6.1%

6,000

+13.8%(Person)

EBITDA margin

8,000

115,131

101,191

10,000

Number of technical employees(Million yen)

FY3/2020

FY3/2021

FY3/2022

0.0%

Mar. 2020

Mar.2021

mar.2022※ Domestic operations only

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

22

1. Overview of FY3/2022 Financial Results

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

FY3/2018

FY3/2019

No. of technical employees: +3,081 No. of technical employees: +2,014
Net Sales: Up 42%
Net Sales: Up 24%(from the end of the previous FY)(from the end of the previous FY)

FY3/2020

FY3/2021

No. of technical employees: -949
Net Sales: Even(from the end of the previous FY)

No. of technical employees: +4,012 No. of tech employees: +7,900
Net Sales: Up 14%
Net Sales: Up 36%(from the end of the previous FY)(from the end of the previous FY)

FY3/2022

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

4Q

Net Sales

18,282

19,94821,791

21,72923,722

24,76027,042

25,57725,731

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

32,48435,21537,363

41,41642,774

EBITDA

1,047

1,374

1,495

1,797

1,794

1,617

2,909

2,366

1,795

2,344

2,253

2,211

1,935

1,935

2,429

1,691

1,570

1,317

2,479

2,134

EBITDA%

5.7%

6.9%

6.9%

8.3%

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%

Technical
employees

16,51917,51817,99918,56919,86820,56521,042

20,583

20,64020,302

20,026

19,63421,09020,985

22,465 23,736※ 27,177※ 28,720※ 30,516※ 31,636※※ Technical employees : Domestic business only

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

23

1. Overview of FY3/2022 Financial Results

Responded to a surge in post-COVID personnel demandby securing the overwhelming number of new hires
 Monthly average: 1,471 new hires, FY3/2022: 17,662 new hires
 Strategically increased hiring expenses and improved the hiring process.
Number of new hires (domestic business)（Person）

4,410

4,655

4,154

New graduates

3,159

Affected by
COVID-19

4,443

583

2,440
Mid-career

1,201

1Q

3,827

1,044

2Q

3Q

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

4Q

1Q

2Q

3Q

4Q

FY3/202224

1. Overview of FY3/2022 Financial Results

Maximized the number of tech employees at the end of FY3/2022 throughhiring and acquisitions
 Consistently enhanced hiring activities throughout FY3/2022—a recovery period from the COVID.

 Net increase of 7,900 tech employees from a year ago due to continued strong demand,
particularly in the semiconductors and electronic components sector and the automotive-related sector.
Number of technical employees (Domestic business)（Person）

Up 7,900 in a year
due to enhanced hiring

Affected by
COVID-19

27,17721,09020,985

1Q-end2Q-end22,465

3Q-endFY3/2021
Copyright © UT Group Co., Ltd. All Rights Reserved.

30,51628,72031,63623,736

4Q-end1Q-end2Q-end3Q-end4Q-endFY3/202225

1. Overview of FY3/2022 Financial Results

Analysis of Consolidated Net sales
Net sales(100 million yen)Contribution from newlyconsolidated companies
Sales increase inexisting business

1,151

1,567

＋199
-5

＋221

Impact from lost work
due to automotive
production cut

Impact from lost work due to production cut in automobiles
・A shortage in components caused by the lockdown in some ASEAN countries
and the global shortage of semiconductors led to production adjustment in
the automotive industry. However, due to a strong final demand forautomobiles, automakers have dealt the issue with temporary shutdown ortransfer of working days.
・The working hours such as overtime hours slightly decreased but the numberof workers has not been reduced.
・Favorable orders for dispatch workers have continued and the number of
dispatch workers in the automotive sector has increased due to the tightpersonnel demand in production processes.

[Dispatched workers in the automotive-related sector]*Jan. 2021 is indexed as 100.

126

Net sales +41.6 BY

100
FY3/2021

列2

列3

列4

FY3/2022

103

108

110

114

118

144

152

162

The number of dispatch workers continued
to increase even after September, when
the impact from production cut was mostprominent.

Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
2021

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

131

137

139

148

157

2022
26

1. Overview of FY3/2022 Financial Results

Analysis of Consolidated EBITDA
・ Increase in costs through strategic investment (hiring activities and M&A) to increase share at the recovery phase of
the shrunk dispatch market
・ Controlled hiring expenses in line with the change in orders.
EBITDA(100 million yen)

Impact from lost work Increase in company
due to automotive
housing expenses for
production cut
newcomers, etc.

79

Impact fromsales growth inexisting business

+31

＋41

Contribution fromnewly-consolidated
Companies（Gross profit）-2

Increase inpersonnel expenses-16

Strategical increase ofcost to catch up the riseof personnel demand Normalized from the depressed hiring in FY3/2021.
 Strategically enhanced hiring in FY3/2022-22(

of newly-consolidated
Companies -16

Increase in
hiring expenses

)

-37
Other

Increase in goodwill
amortization, etc.

-3

＋4

75

Affected the SG&A expenses

Affected the Cost of Sales

EBITDA -0.4 BY
FY3/2021

既存

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

新規

自動車

原価

人件費

募集費

その他

のれん

FY3/202227

1. Overview of FY3/2022 Financial Results

Analysis of SG&A expenses(million yen)

FY3/2019

FY3/2020

FY3/2021

FY3/2022

１Q

２Q

３Q

４Q

Full year

１Q

２Q

３Q

４Q

Full year

１Q

２Q

３Q

４Q

Full year

１Q

２Q

３Q

４Q

Full year

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

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%

Hiring

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

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%

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

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%

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

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%

SG&A
expenses

3,075

3,426

3,298

2,856 12,655

3,090

3,029

2,971

2,876 11,966

2,870

3,260

3,845

4,463 14,438

4,828

5,359

5,623

5,703 21,513

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%

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

28

1. Overview of FY3/2022 Financial Results

Organic growth and the acquisitions to enhance the profit base・ Strived for share expansion by increasing the technical employees for existing business and made a steady growth.
・ Expanded the “Area” business bases, based on the "Area Platform Strategy"– the Growth strategy.

Net sales(100 million yen)

Number of technical employees (Person)【Domestic】【Domestic】

31,6361,495＋31.9%【Domestic】

151

Newlyconsolidated

1,133

Newlyconsolidated

191

Newly-consolidated subsidiaries since 1Q FY3/2022＋33.3%【Domestic】

23,736
3,405

Newlyconsolidated

20,331【Overseas】

1,344

3,278

Newlyconsolidated

Manufacturing Business

Solution Business

1Q FY3/2022

Progress Group Co., Ltd.
SURI-EMU Corp.

-

2Q FY3/2022--

3Q FY3/2022-

UT FSAS Creative Inc.
(Consolidated from October 1,2021)

4Q FY3/2022--

28,358【Overseas】

13,75013,276943【Overseas】

71【Overseas】

17

FY3/2021

FY3/2022

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

FY3/2021

FY3/202229

1. Overview of FY3/2022 Financial Results

Newly-consolidated companies’ contribution to sales

Contribution of newly-consolidated companies to FY3/2022 Sales
Business Segment

SectorConsolidated subsidiary

Time ofconsolidation

Other

Seekel Co., Ltd.

Oct. 2020

Other

UT Progress Co., Ltd.

April 2021

Other

UT SURI-EMU Co., Ltd.

April 2021

Overseas

Green Speed Co., Ltd(Vietnam)Jan. 2021

ー

Solution Businessー

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

Sales(billion yen)

Number of technicalemployees (fiscal year-end)

1.5※Since its consolidation was on 3Q of
FY3/2021, Only 1H Sales was the
newly-consolidated contribution.

1,214
10.3

Manufacturing Business

Total

Contribution to FY3/2022 Sales

1,213（Consolidation ofIncome statement）

4.8※Since its consolidation was on 4Q of
FY3/2021, Only 3Q Sales was the
newly-consolidated contribution.

UT MESC Co., Ltd.

July 2020

0.7※Since its consolidation was on 2Q of
FY3/2021, Only 1Q Sales was the
newly-consolidated contribution.

UT FSAS Creative Inc.

Oct. 2021

2.5

Former Mito Engineering Service
Former Fujitsu FSAS Creative Inc.

851

19.9
30

Appendix

1．Overview of FY3/2022 Financial Results
2．Information on Business Segments
3．FY3/2023 Earnings Forecasts
4．The 4th Medium-Term Business Plan (FY3/2021～FY3/2025)
5．About UT Group

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

31

2．Information on Business Segments

Business Segments (FY3/2022)
Manufacturing Business

Staffing service in production processes￥104.9 billion

Semiconductors
andelectronic
components¥35.1B

66.9%

Solution Business

Structural reform support and BPO services￥35.0 billion

Sales by business segment¥156.7 billion

22.3%

Engineering Business
Dispatching of design, development and IT engineers￥16.7 billion

FY3/2022

Overseas
¥7.1B
Other
¥30.7B

Automobilerelated¥29.7B
Housingrelated
¥2.1B

10.7%

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

32

2．Information on Business Segments

Results by Segment: Net Sales and Sales Composition
・ Net Sales increased in all business segments.
・The Manufacturing Business significantly grew sales by 51.7% y-o-y to more than ¥100 billion.

Net sales

Sales composition(Million yen)

156,769
115,131
16,218

16,792+3.5%

Engineering Business+17.9%＋51.7％

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

25.8%

35,020

10.7%
22.3%

Solution Business

29,711

69,201

14.1%

104,957

FY3/2022

Manufacturing Business

60.1%

FY3/2021

66.9%

FY3/202233

2．Information on Business Segments

Manufacturing Business (Domestic and Overseas)
・ Sharply increased sales due to growth in the automotive as well as the semiconductor and electronic parts sectors andcontribution from newly-consolidated companies.
・ Strategically increased hiring-related expenses and focused on maximizing the number of new hires, in order to boost efforts
aimed at share expansion.
Sales

EBITDA and EBITDA margin(Million yen)（％ is comparation of Domestic）（％ is comparation of Domestic）

45.0%【Domestic】

97,7764,500

67,452

3,931(Person)（％ is comparation of Domestic）

10.1%【Domestic】
4,000【Domestic】

Technical employees(Million yen)

38.5%

【Domestic】【Domestic】

3,532

15.0%

3,500
10.0%

3,000

23,094

20.0%

2,500

【Domestic】

16,680【Overseas】

13,276【Overseas】

13,750

5.0%
2,000

5.8%

3.6%

1,500

【Overseas】

1,749
FY3/2021
Copyright © UT Group Co., Ltd. All Rights Reserved.

【Overseas】

7,180

1,000
500

【Overseas】

84

0.0%

【Overseas】

124

0

FY3/2022-5.0%-10.0%

FY3/2021

FY3/2022

Mar. 2021

Mar. 2022
34

2．Information on Business Segments

Manufacturing Business (excl. overseas business)
Sales
FY3/2021

30,00025,00043.3%

20,00022,161

15,00010,000Technical employees(Million yen)

15,46349.3%

FY3/2022

38.6%

26,42425,84623,343

FY3/2021

42.4%

45.2%

19,86818,553

15,635

17,7992Q

3Q(Person)
FY3/2022

52.0%

42.7%

38.5%

21,23422,07623,094

14,333

13,973

1Q

2Q

16,68015,475

5,000
0

1Q

4Q

EBITDA and EBITDA margin
FY3/2021
1,800

6.2%

1,600
1,400

3.4%

1,200
1,000
800
600
400

951

5.2%

1.6%

1,211

FY3/2021

4.0%

4.1%

1,341

1,084

363
1Q

2Q

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

10.0%
5.0%
0.0%
-5.0%

740

742

200
0

6.8%

1,027

Monthly sales per capita(Million yen)
FY3/2022

6.6%

3Q-10.0%

5.0%

2.7%

36.3 38.1

36.8 37.8

1Q

2Q

4Q

(Ten thousand yen)
FY3/2022

1.2%

1.6%

40.2 39.7

38.4 39.0

3Q

4Q-15.0%-20.0%-25.0%

3Q

4Q-30.0%

Sales and technical employees
・Net y-o-y increase of 6,414 employees due toenhanced hiring activities and the acquisitions.
・Organic growth and the acquisitions led to asignificant growth in sales.
EBITDA・EBITDA increased due to an increase in grossprofit despite a temporary increase in hiring
expenses caused by enhanced hiring activities.
・The Manufacturing Business segment roughly
accounted for ¥5.1 billion of ¥6.1 billion in total
hiring expenses (consolidated).
Monthly sales per capita
・Affected by the lack of increase in working days
and hours, due to the effects of the suspensionof some automobile lines, despite thecontribution from an increase in high unit pricecontracts and in contract unit prices in theautomotive-related sector as well as thesemiconductor and electronic parts sector.

35

2．Information on Business Segments

Manufacturing Business: Sales by Sector (excl. overseas business)
・ Net Sales increased in all sectors.

・ Orders received were favorable in the semiconductors and electronic components sector thanks to growth indemand for semiconductors.
・ Automobile-related sector considerably increased Net sales despite impact from lost work
due to automotive production cut
Net sales

Sales composition(Million yen)

97,776
Other

67,452
16,276
2,055
19,39029,73030,760+89.0%+4.1%+53.4%+18.2%

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

2,139

3.1%

Housing-related

31.5%
2.2%

28.7%

29,743

Automobile-related

35,133

Semiconductors andelectronic components

FY3/2022

24.1%

30.4%

44.1%

FY3/2021

35.9%

FY3/202236

2．Information on Business Segments

Manufacturing Business: Sales by Sector (excl. overseas business)
Semiconductors andelectronic components(Million yen)

FY3/2021

14.5%
8,315
7,265

20.6%
8,666
7,185

Automobile-related

FY3/2022

22.5%
9,106
7,431

FY3/2021

15.8%
9,044
7,812

55.0%

2Q

3Q

Housing-related

4Q(Million yen)

FY3/2021

1Q

4,279

2Q

54.1%
8,047

11.2%

499 499513 511541 572499 555

1Q

2Q

3Q

4Q

103.0%

7,250

7,425

1Q

8,858

3Q

4Q

(Million yen)

92.6%

3,765

48.8%
5,953

5,223

FY3/2021

5.7%

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

6,740

FY3/2022

Other

FY3/2022

0.4%

0.0%

57.5%

6,096
3,933

1Q

(Million yen)

3,657
2Q

FY3/2022

76.4%

85.8%

8,118

7,965

4,603

3Q

Semiconductors and electronic components
・Sales increased mainly for semiconductor
manufacturing equipment andsemiconductors.
Automobile-related
・Quarterly sales increased by 10.1％ q-o-q torecord the sector’s highest quarterly sales again.
・The automobile-related sector increased sales,
thanks to a significant increase in workers
despite decreases in the number of operatingdays and overtime hours due to the impact
from continual production adjustment.
Other
・This sector increased sales due to positive
contribution by newly-consolidated ProgressGroup, and SURI-EMU based on the Area
Platform Strategy.

4,288

4Q

37

2．Information on Business Segments

Expansion of the area platform by consolidating 6 companies of 2 groups
・ Newly consolidated local worker dispatch operators who operate mainly in Aichi Prefecture in May 2021

Progress Group Co., Ltd.
Progress Co., Ltd.

・Acquisition of shares in May 2021
・Renamed to UT Progress Co., Ltd.

・Worker dispatch and outsourced business operation
・Business bases: mainly in Aichi Prefecture but alsoin Gifu, Mie, Nagano, and Ibaraki Prefectures

SURI-EMU Corporation
SURI-EMU Chubu Co., Ltd.
SURI-EMU Tokai Co., Ltd.
SURI-EMU Staff Co., Ltd.

・Acquisition of shares in May 2021)
・Renamed to UT SURI-EMU Co., Ltd.

・Major clients: Manufacturers of automobiles and parts,
electronic devices, rubber products, etc.

* Acquisition of all shares in two batches
18.8％ (Feb. 28, 2021) →100.0％ (May 31, 2021)

・1,177 employees (as of June 30, 2021)

・Worker dispatch and outsourced business operation(Japanese and foreigners of Japanese descent)・Business bases: mainly in Aichi Prefecture but also in
Miyagi and Kanagawa Prefectures
・Major clients: Major manufacturers of automotiverelated, electronic devices, etc.
・1,055 employees, mainly Japanese-Brazilians（June 30, 2021)

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

38

2．Information on Business Segments

Further advance for the Area Platform Strategy
・ Strengthen collaboration in hiring, sales and administration by operating companies with different strengths.
・ Expand the business base within the area.

UTHP（established in Dec. 2026)

UT MESC
Workplaceand labor
management※ Former Mito Engineering Service（Consolidated in July 2020)

Seekel Holdings（Consolidated in July 2020)

Hiringactivities

Educationanddevelopment

UT AimUT Progress

Workplaceand labor
management

Hiringactivities

Educationanddevelopment（Consolidated in May 2021)

UT SURI-EMU（Consolidated in May 2021)

Appeal UT Group to local client companies as a partner
to be fully in charge of hiring, employment and education
Copyright © UT Group Co., Ltd. All Rights Reserved.

39

2．Information on Business Segments

Solution Business・ An In-house Solution® (outsourced work and transfer of employees) project of a large corporate group began in July 2021.
・ UT FSAS Creative (formerly Fujitsu FSAS Creative) was newly consolidated from October 2021.
・ Hiring activities were enhanced as personnel demand was strong despite some impact from the shortage in semiconductors
and component procurement.

Sales

EBITDA and EBITDA margin(Million yen)

29,711

Technical employees

8.8%

17.9%
35,020(Million yen)

1,432
1,400

(Person)

30.9%
1,307

1,200

5,852
10.0%

9.0%

8.0%

4,469

7.0%

1,000

6.0%

800

600

5.0%

4.8%

4.0%

3.7%

400

3.0%

2.0%

200

1.0%

0

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

FY3/2022

0.0%

FY3/2021

FY3/2022

Mar. 2021

Mar. 2022
40

2．Information on Business Segments

Solution Business
Sales
FY3/2021

8,000

18.2%

6,000
4,000

6,272

7,415

7.0%
7,5348,065

26.1%

19.8%

9,767

9,771

7,743

(Person)

FY3/2021

FY3/2022

12,00010,000Technical employees(Million yen)

8,159

15.2%
3,951

4,553

8.8%
4,403

4,791

FY3/2022

29.1%

30.9%

5,742

5,852

4,448

4,469

2,000
0

1Q

2Q

3Q

EBITDA and EBITDA margin
FY3/2021
800

6.1%
3.7%

700
600

(Million yen)

10.0%

6.5%

3.3%

4.3%

3.5%

500

503

400
300
200
100
0

381
249
1Q

1Q

FY3/2022

3.6%

3.4%

4Q

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

0.0%
-5.0%

424

277 2862Q

5.0%-10.0%

270
3Q

346

4Q

-15.0%-20.0%

2Q

3Q

4Q

Sales and technical employees
・The new In-house Solution® project began in
July 2021 and a newly-consolidated company
contributed from October 2021.
・The existing business by operating companies
increased sales and the number of techemployees on a net basis.
EBITDA・Hiring activities were enhanced as personnel
demand was strong
・The EBITDA margin temporarily declined y-o-ydue to an addition of an operating company.
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 andoutsourced work from the Toshiba on April 1,
2020.

-25.0%

41

2．Information on Business Segments

Progress in Solution Strategy. A new company was consolidated in Oct. 2021
・ Newly consolidated a personnel dispatch company of the Fujitsu FSAS Group in October 2021.
・ Further strengthen the relationship with with the Fujitsu Group, together with the existing Fujitsu UT Co., Ltd.

Newly Consolidated Company

UT FSAS Creative Inc.
（Consolidated in Oct,. 2021）※former Fujitsu FSAS Creative Inc.

Ownership: UT Group 51％, Fujitsu FSAS 49％•

Worker dispatch and outsourced operations and help desks andsupport desks of system management•

Main customers: Fujitsu Group and Fujitsu FSAS Group•

Approximately 900 employees (December 31, 2021)

Existing Business Company
Fujitsu UT Co., Ltd.

（Consolidated in Apr,. 2018）※former Fujitsu Aprico Limited.

•

General worker dispatch and outsourced work business•Approximately 700 employees (December 31, 2021)

Ownership: UT Group 51％, Fujitsu FSAS 49％

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

42

2．Information on Business Segments

Progress in the support for the mobilization of human resources (Solution Business)
Basic scheme of the Solution BusinessSubsidiaries of Solution Business
UT Pabec Co., Ltd（2013、Panasonic Group）

UTHP Co., Ltd.
（2018、Fujitsu Group）

General personnel dispatch and outsourcing

UT Toshiba Co., Ltd.

（2020、Toshiba Group）

General personnel dispatch and outsourcing

Company A

Co. A
20%

UT
100％
Carve-out (business split)

UT System Products Co., Ltd.

（2020、Toshiba Group）

Sales of information system equipment

Sold on Mar. 2022
（2020、Hitachi Group）

Elevator/escalator manufacturing outsourced work and dispatch of design engineers

UT FSAS Creative Inc.

Company A
outsourcing

Fujitsu UT Co., Ltd.

UT MESC Co., Ltd.

Formation of a joint venture

become subsidiaries)

Battery manufacturing outsourcing

Manufacturing personnel dispatch andM&A (acquired companies to（2021、Fujitsu Group）

Contracts for office and IT worker dispatch, operation and deployment work, etc.

Company AXbusiness of
A

UT
80％

In-house Solution®

(full-time employee transfer)

Admin. Div. ofCompany A

Mfg. Div.
of A

Outsourced contract for
the entire Mfg. Div. to UTSpecific business
transfer to UTXbusiness ofA

Admin. Div. ofCompany A

Mfg. Div.
of UT

Build a track record of solutions mainly for electronics manufacturers
and deploy the solutions to other industries
Copyright © UT Group Co., Ltd. All Rights Reserved.

43

2．Information on Business Segments

Engineering Business・ The EBITDA margin stayed at a high level thanks to the improvement in operations encompassing hiring to assignment.
・ Sales increased due to an increase in engineers in design and manufacturing, and construction.

Sales

EBITDA and EBITDA margin(Million yen)

16,218

3.5% 16,792

Technical employees(Million yen)

0.2%
2,559

4.0%
2,563
20.0%

2,500
18.0%

2,000

(Person)

2,587

2,690

16.0%

15.8%

15.3%

14.0%

12.0%

1,500

10.0%

8.0%

1,000

6.0%

500

4.0%

2.0%

0

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

FY3/2022

0.0%

FY3/2021

FY3/2022

Mar. 2021

Mar. 2022
44

2．Information on Business Segments

Engineering Business
Sales
FY3/2021
5,000

4,500

FY3/2022

4.5%

4.8%

4.6%

4,0924,102

4,227
4,045

4,254
4,057

4,208
4,022

3,000

(Person)

FY3/2021

0.2%

4,000

3,500

Technical employees(Million yen)

FY3/2022

1.8%

3.3%

6.1%

4.0%

2,806
2,756

2,6092,695

2,5422,698

2,5872,690

Sales and technical employees
・A net y-o-y increase in the number of techemployees for the three consecutive quarters.
・Sales increased due to an increase inengineers in design and manufacturing, andconstruction.

2,500

2,000

1,500

1,000

1Q

2Q

3Q

EBITDA and EBITDA margin
FY3/2021

14.8%

800
700
600

400

606

579

16.3%

14.8%

14.1%

500

17.8%

15.6%

632

625

3Q

FY3/2021

4Q(Ten thousand yen)
FY3/2022

19.0%

15.8%
14.9%

17.0%

15.0%

13.0%

720 692

666
599

1.8%

3.6%

0.0%

0.4%

50.2 51.1

49.8 51.6

52.5 52.5

52.2 52.0

1Q

2Q

3Q

4Q

11.0%

9.0%

7.0%

300

5.0%

200

3.0%

100
0

2Q

Monthly sales per capita(Million yen)

FY3/2022

1,000
900

1Q

4Q

EBITDA
・The EBITDA margin stayed at a high level, as ahigh operating rate was maintained.

1.0%

1Q

2Q

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

3Q

4Q

45

2．Information on Business Segments

Engineering Business: Sales by Sector
・ In the design and manufacturing engineer sector, personnel demand was robust for semiconductor manufacturing
equipment engineers which complement the Manufacturing Business.
・ Demand for construction engineers increased mainly in the equipment and plant sector.
Net sales

Sales composition(Million yen)

16,792

16,2181,062△13.6%

918

IT engineer

4,585

+7.4%

4,923

Construction engineer

10,571+3.6%

10,950Design and manufacturing
engineer

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

FY3/2022

6.6%

5.5%

28.3%

29.3%

65.2%

65.2%

FY3/2021

FY3/202246

2．Information on Business Segments

Engineering Business: Sales by Sector
Design and manufacturing engineer
FY3/2021(Million yen)

Construction engineer

FY3/2022

FY3/2021(Million yen)
FY3/2022

1.4%

5.8%

4.4%

2.7%

3.5%

5.7%

9.7%

10.7%

2,6502,686

2,6252,778

2,6472,764

2,6482,720

1,1441,184

1,1501,216

1,261
1,150

1,261
1,139

1Q

2Q

3Q

第4四半期

1Q

2Q

3Q

4Q

IT engineer(Million yen)

FY3/2021

22.2%
297

231

1Q

13.8%
269

232

FY3/2022

12.3%

234 225

3Q

4Q

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

Construction engineer sector
・Personnel demand increased mainly in theequipment and plant sector.
・The operating rate was improved due to earlier
fixing of assignment from hiring for new hires
IT engineer sector
・The impact of a sale of business wascompleted and the sector promoted to beprepared for achieving profitability growth going
forward.

3.8%

260 228

2Q

Design and manufacturing engineer sector
・Personnel demand, mainly of semiconductor
manufacturing equipment engineers, wasrobust.

47

Appendix

1．Overview of FY3/2022 Financial Results
2．Information on Business Segments
3．FY3/2023 Earnings Forecasts
4．The 4th Medium-Term Business Plan (FY3/2021～FY3/2025)
5．About UT Group

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

48

3. FY3/2023 Earnings Forecasts

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
medium- to long-term growth.
［100 million yen］
FY3/2022

FY3/2023

Results % to net sales

Forecasts % to net sales

changeamountchange%Net sales

1,567

100.0%

1,800

100.0％+232+14.8%EBITDA

75

4.8%

150

8.3%

+74

+99.9%

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

EPS (yen)

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.

49

3. FY3/2023 Earnings Forecasts

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)

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

If the exercise conditions are not met, no expenses will be recorded.

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 1.7-3.5 times EBITDA
in FY3/2020, even though dilution of up to 20% will occur.
※EBITDA = Operating profit + Depreciation (Property, plant and equipment, and Intangible assets) + Amortization + Stock-based compensation expenses
Copyright © UT Group Co., Ltd. All Rights Reserved.

50

3. FY3/2023 Earnings Forecasts

Efforts to improve cost efficiency:

Reduction in hiring expenses through group-wide integrated hiring activities
・ Strategically increasing hiring expenses in FY3/2022, but plan to return the ratio of hiring expenses to sales to a normal level
in FY3/2023.
・ Will consolidate the Group's database to improve the matching accuracy and the hiring yield in FY3/2023.
Ratio of hiring expenses to sales

4.3%

4.0%

3.7%

3.5%

３％

2.7%
1.9%

2.0%

3Q

4Q

FY3/2019
Copyright © UT Group Co., Ltd. All Rights Reserved.

Affected by
COVID-19
0.6%

1.1%

2Q

1Q

2Q

3Q

FY3/2020

3.5%

4.0%

2.6%

2.0%
1.4%

1Q

3.8%

4Q

1Q

1.0%

2Q

3Q

FY3/2021

4Q

1Q

2Q

3Q

FY3/2022

4Q

1Q

2Q

3Q

4Q

FY/32023（F）
51

3. FY3/2023 Earnings Forecasts

Efforts to improve cost efficiency:

Building a platform to strengthen recruitment activities and career formation support
・ Launched the job site "JOBPAL" for the overall UT Group in April 2022.
・ Plan to offer UT’s unique career support programs outside the Group in stages.
Improvement in efficiency of hiringrelated expenses
 Establish a sustainable job-seeking population throughthe introduction of the registration system.
 Increase the ratio of internal visitors through our channel.

Construction of a system thatexceeds the existing hiring output
 Construct a system to formalize the dependency on
individual kills in interview work.
 Standardize the Group’s hiring work and raise overall
efficiency through process integration.

Expansion of service offering(future plan) Expand services for job seekers, including offering of
One UT and Next UT to outside companies.

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

52

3. FY3/2023 Earnings Forecasts

Efforts to improve cost efficiency:

Integration of some operating companies to improve efficiency in SG&A expenses

・ Plan to reorganize the subsidiaries in April 2022 in order to promote growth strategies for achieving the Fourth Medium-term
Business Plan.
・ Accelerate the Area Platform Strategy along with the One-stop Strategy for Large Manufacturers.
・ Aim to standardize the business infrastructure and improve productivity through integration.
Area Platform Strategy (Area Strategy Business Unit)
From April 2022

Area Platform Strategy (Area Strategy Business Unit)
At present

Integrate the common indirect functions
UT AimArea Strategy Business

UT Community

UT HP

Support System

SeekelUT Progress

UT Connect
Account
ing

Accounting

Accounting

Accounting

Accounting

Accounting

Payroll

Payroll

Payroll

Payroll

Payroll

Payroll

Payroll

Payroll

Payroll

Payroll

Payroll

Payroll

Dispatchmngm

Dispatchmngm

Dispatchmngm

Dispatchmngm

Dispatchmngm

Dispatchmngm

Dispatchmngm

Dispatchmngm

Dispatchmngm

Dispatchmngm

Dispatchmngm

Dispatch
mngm

Labor
mngm

Labor
mngm

Labor
mngm

Labor
mngm

Labor
mngm

Labor
mngm

Labor
mngm

Labor
mngm

Labor
mngm

Labor
mngm

Labor
mngm

Labor
mngm

・・・

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

・・・

Accounting

・・・

Accounting

・・・

Accounting

・・・

Accounting

・・・

Accounting

・・・

Accounting

53

Appendix

1．Overview of FY3/2022 Financial Results
2．Information on Business Segments
3．FY3/2023 Earnings Forecasts
4．The 4th Medium-Term Business Plan (FY3/2021～FY3/2025)
5．About UT Group

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

54

4. The 4th Medium-Term Business Plan

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

4. The 4th Medium-Term Business Plan

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

4. The 4th Medium-Term Business Plan

Basic policy by segment
Manufacturing BusinessEngineering Business

Develop and provide manufacturingworkers

Solution BusinessAccelerate support for the mobilizationof human resources

Solution strategy

One-stop strategy for major manufacturers

Large company structural reform needs will
increase; to cope with this we will improve mobilizationof human resources – and capture business.

Weplan to expand the fields for our manufacturing engineers by using our existing client base andraising competitiveness in our core business of outsourcing of manufacturing by large client companies.

Expand area platforms

Exploit work areas for highly-skilled
engineers

Build a business base in new job areas

Area platform strategy

Use of M&A to build a business baseBase-building at existingcompanies

Raise market share in regions via alliances with and M&A of local

Establish a business base by strengthening capability via alliances with

Solidify the base in new business areas, such as office worker

dispatch operators; and integrate the Group’s career platform to raise

major companies and M&As of engineer dispatch operators

dispatch, specializing in helping for large companies, on the

profitability.

basis of an acquired company from a major corporate group

Create vigorous work environment
empowering foreign workers
Use of M&A to build a business baseSolidify a base of a labor management agency business in Japan.

Growth strategy to focus over the next five years

Build an overseas business alliances and M&As.

Measures for building business bases over the longer term
Copyright © UT Group Co., Ltd. All Rights Reserved.

57

4. The 4th Medium-Term Business Plan

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Appendix

1．Overview of FY3/2022 Financial Results
2．Information on Business Segments
3．FY3/2023 Earnings Forecasts
4．The 4th Medium-Term Business Plan (FY3/2021～FY3/2025)
5．About UT Group

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

59

5. About UT Group

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.
60

5. About UT Group

Corporate Outline
Corporate Outline

As of Mar. 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 Apr. 1, 2022

UT Technology

IT engineer outsourcing

UT Construction
UT Community

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:

4,344

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.

61

5. About UT GroupUT 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)● 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

5. About UT Group

Twin-Customer Strategy and Career Platform
Stable supply of highlyskilled personnel

Individuals
Job seekers, employees

Companies

UT Group

Major manufacturing
companies

Provision of high-quality
workplaces

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

63

5. About UT Group

Twin-Customer Strategy and Career Platform
Stable supply of high-skill personnel

Change labor costs tovariable costs

Boost income
Careeradvancement

Dispatch quality workers

Career formation
support function
Raise skills

Work training

Improve a sense of
self effectiveness
Career consulting

UT Group

Labor issue
solutions
Enhancecompetence

Support structuralreformComply with labor laws

Support building
schemes

Provision of quality workplaces

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

64

5. About UT Group

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(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

65

5. About UT Group

Completed the formulation of an SME engineer development system
・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)
・Seek to enhance the manufacturing engineer field and develop 3,000 semiconductor manufacturing equipment (SME) engineers
in three years
・Plan to develop 890 engineers in FY3/2022
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 room66

5. About UT Group

Strong competitive advantage to support growth
Industry-leading quality services
Industry-leading quality services
A large numberof employees+

Hiringcapability+

High retention
rate

Business strategy focused on large companies
Semiconductor industry+

Automotive industry

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
67

5. About UT Group

Tight supply and demand situation in the manufacturing industry due to thelabor shortage

・ The jobs-to-applicants ratio for manufacturing jobs surged to the level in 2018 and the supply/demand balance in personnel
continues to be tight in manufacturing.
Jobs-to-applicants ratio(times)

1.97

2.0

1.92

1.8
1.6

Manufacturing jobs

Affected by
COVID-19

1.4
1.13

Overall

1.2
1.0
0.8

2016

2017

2018

2019

2020

2021

2022

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

68

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

Japan's Labor Force Distribution "Occupational Classification"

2021

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

5. About UT Group

Trends of Business Results
Net sales(100 million yen)

EBITDA(LH) and EBITDA margin (RH)
100

1,500

500

0

EBITDA margin

2014/03

2015/03

2016/032017/032018/03

2019/032020/032021/03

60

6.0

40

4.0

20

2.0
0.0

2022/03

EPS and EPS growth rate

120

8.0

0
2013/03

140

10.0

EBITDA profit

80
1,000

(100 million yen, %)(Yen, %)100

EPS (after stock split adjustment)

80

EPS growth rate

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
500

2022/03(100 million yen, %)60.0

Total assets
Shareholders’ equity

50.0

ROA

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.

70

5. About UT Group

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

2021

2020

2019

2022

Changes in stock price(compared with the level on March 31, 2010)
2,100

0

［％］

UT Group

1,000

800

Nikkei average

1,900

1,200

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

2011

2012

2013

2014

2015年

2016年

2017年

2018年

2019年

2020年

2021年

2022年

71

5. About UT Group

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

5. About UT GroupINTEGRATED REPORT 2021 was released
In 2020, the COVID-19 pandemic sharpy increased social uncertainty, and workers
became more concerned about employment stability. In this situation, UT Group has put
together its management philosophy of supporting the employment stability and growthof dispatched workers since its foundation in a sustainability context, and articulated
this as the Basic Policy on Sustainability in April 2021.
Based on this, this Integrated Report incorporates sustainability aspects in theconventional annual report. It also integrates financial and non-financial information,and seeks to make it easier for shareholders, investors, and other stakeholders tounderstand our efforts to improve corporate value in the medium to long term.
Please download the Integrated Report from here:
https://ssl4.eir-parts.net/doc/2146/ir_material14/173646/00.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