Fiscal Year Ended March 31, 2023

Financial Results
May 15, 2023

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

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

Japan’s Labor Market and Goals for UT Group

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

1

1Japan’s Labor Market and Goals for UT GroupUT group’s Mission, Vision and Values
PurposeWe at UT Group aim to realize a society in which all people who arewilling to work are equally given opportunities for skill development
and career formation, and are treated fairly
MissionCreating vigorous workplaces empowering workers
UT VISION 2030

VisionBecoming the company with a future workstyle platform

ValuesWe stand by people and stay face to face with them
Challenging
Fairness
All for one
Expanding possibilities

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

2

Japan’s Labor Market and Goals for UT GroupUT Group’s growth = The sum of vigorous work of its people
UT Group’s human capital

Diversity

×

According to their own values and life stages,

Market value

develop their skills and careers, andEngagement

keep engaged and empowered on platform of UT Group×

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

3

Japan’s Labor Market and Goals for UT Group

Decrease in working-age population due to declining birthrate and aging population■ Changes in Japan’s demographics structure (Figures after 2025 are estimates)[Thousands people]

gae: 0～14

age: 15～64（working-age）

age: 65 and more

"2030 problem"

140,000

120,000• Elderly to represent 1/3 of Japan's population• Decrease in working-age population• Labor shortage of 6.44 million people to theoverall labor demand for 70.73 million* (estimate)

100,000

80,00060,00040,000Worsening labor shortage

20,000

0

1995

2000

2005

2010

Source: National Institute of Population and Social Security Research
Copyright © UT Group Co., Ltd. All Rights Reserved.

2015

2020

2025

2030
Source: "Labour Market Future Estimates 2030“ (Persol Research Institute and Chuo University)

4Japan’s Labor Market and Goals for UT Group

Non-regular workers = 40% of all workers■ Regular and non-regular workers in the workforce (excluding executives)

Non-regular
workers(20.75 million)

Regular workers(35.87 million)

63%

37%

“Inequality problem for
non-regular workers"• Low level in wages, etc.
• No personnel support system and weakevaluation system• Few opportunities for education and training• No foundation for consistent support to theirdevelopment and career

Hindrance to thediversification of workstyles
Source: "2022 Version of the Labor Economy Analysis" (Ministry of Health, Labour and Welfare)Note: Non-regular workers: Part-time workers, temporary workers, dispatched/contract/commissioned employees of worker dispatch companies, etc.
Copyright © UT Group Co., Ltd. All Rights Reserved.

5

Japan’s Labor Market and Goals for UT Group

Outlook for Japan’s worker dispatch market
Service quality improvement

Market expansion

Expansion of the manufacturing
dispatch market

26

29

32

35

36

36

37

33

37

The labor market in favor of job
applicants due to labor shortage

Consolidation into major dispatch
companies
17.5%

41

11.5%

11.4%

13.8%

1

I couldn’t find a company that hires me as a full-time
employee.

2 I can work at a time that suits me.
3

I can make use of my professional qualifications andskills.

4 I want to work in a higher paying job.
5 The commuting time can be shorter.

「Ten thousand］
2013

2014

2015

2016

2017

2018

2019

2020

2021

The number of dispatch workers
in the workplaces of production process

2022

Source: "The Basic Aggregation of the Labor Force Survey in FY2022"(Ministry of Health, Labour and Welfare)• The use of dispatch workers will be expanded byreplacing regular employees and contract employees.
• The use of dispatch workers will also increase in theautomotive industry, due to the transformation of theindustry structure, driven by the shift to electricvehicles.
• More diversified workstyles will enable more people tochoose dispatch work as a workstyle
Copyright © UT Group Co., Ltd. All Rights Reserved.

2018

2019

2020

2021

Market share of the 4 major dispatch companies
Source: Calculated by the Company using the following
Denominator: The Present Status and Outlook of Human Resource Business 2022“(Yano Research Institute)
Numerator: The financial results of four major listed manufacturing dispatch companies.

• Small local dispatch companies face difficulties inhiring, compliance with the Worker Dispatching
Act, and business succession.
• There will be more consolidation to major dispatch
companies that excel in hiring capabilities andcareer development support.

Why choose to work as a dispatch worker
Source: "Summary of the Comprehensive Survey on the Diversification of
Employment Formats in 2019" (Ministry of Health, Labour and Welfare)• Dispatch workers will ask for a higher level ofconvenience to satisfy their diversifying values.
• There is a need for services and careerdevelopment tailored to each dispatch worker as
the use of dispatch workers progresses.

6Japan’s Labor Market and Goals for UT GroupPursuit of service quality from the perspective of workers

UT’s career platform enables its people to

Leave
UT
Group

Raise your expertiseestablish their own workstyle and career

Flexibly join or leave
Join
UT
Group

Find a job you want and can startworking right after you apply
Copyright © UT Group Co., Ltd. All Rights Reserved.

Work

Become proficient in one job

UT’s Career Partner assists you
7

Japan’sLabor
UT Group
aimsMarket
to be and Goals for UT GroupUT Group’s platform that supports diversity of workstyle
UT Vision 2030

Becoming the company
with a future workstyleplatform

Fourth Medium-Term Business Plan Targets(FY3/2021-FY3/2025)

Becoming a career platform that can
respond to more workers

FY3/2025

FY3/2024
FY3/2023
FY3/2022
FY3/2021
Centered on client
relationships and minimized
the Covid impact.
“Secured employment andworkplaces"
Copyright © UT Group Co., Ltd. All Rights Reserved.

Enhanced hiring efforts
to respond to a rapid recovery
in post-Covid demand,“Expanded working
opportunities”

FY3/2030

Consolidated subsidiaries to expand
the Area Platforms and improved
efficiency in hiring operations.
"Built a foundation for sustainablegrowth"Form a foundation to improve theconvenience of manufacturing dispatch
workers and consistently support theirabilities and careers8

FY3/2023 Financial Highlights and Outlook

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

99FY3/2023 Financial Highlights and Outlook¥15 billion EBITDA, a year ahead of the Med-term Business Planand more than doubling profits in FY3/2022
Consolidated EBITDA / EBITDA %20

EBITDA[Billions of yen]

9.2%

EBITDA%

8.6%

8.5%

9.0%

18

7.0%

16

14

6.1%

6.3%

5.8%

15.71

6.9%

8.0%

7.0%

6.3%

6.0%

4.8%

12

5.0%

10

8.68

8.64

8

7.52

4.0%

5.71

6

4

2

7.99

1.88

2.28

2.57

3.0%

3.65

2.0%

1.0%

0

0.0%

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

Note: EBITDA figures for the fiscal years ended March 31, 2021 and 2022 have been retroactively revised and revised.

FY3/19FY3/20FY3/21
FY3/22
FY3/23The period of the fourth medium-term management plan

Note: EBITDA: Operating profit + depreciation (tangible + intangible assets) + amortization of goodwill + stock compensation expenses
Copyright © UT Group Co., Ltd. All Rights Reserved.

10

FY3/2023 Financial Highlights and Outlook

Built a foundation for medium- to long-term sustainable growthSales¥170.6 billion+¥13.8bln, up 8.8% y-o-yGross profit margin

19.4%+1.7pt from 17.7% in FY3/2022
SG&A expenses to sales(ex. stock-based compensation expenses)

10.9%

2.8pt less than 13.7% in FY3/2022

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

New record-high sales and14th consecutive years of sales growth since the global financial crisis••

Manufacturing Business: Up 8.0% y-o-y due to a focus on clients with strong demand,
despite some softening semiconductor-related demand (in 2H)
Area Business: Up 14.8% y-o-y due to the development of new locally-based projects

Significant margin increase in the Manufacturing Business•••

Deepened business with clients with strong demand in the Manufacturing Business andflexibly allocated resources
Increased billing unit prices and promoted career changes of operators to SME engineers
Reduced hiring-related costs

Organizational restructuring and cost control in line with demand to curb
the SG&A expense ratio••

Optimized personnel allocation through subsidiary consolidation and organizational restructuring
and improved productivity through standardization and commonization of operations
Improved the efficiency in hiring and the demand assessment for cost control11

FY3/2023 Financial Highlights and Outlook

Net sales increased in each segment except for Solution segment
Net sales

Sales composition(Million yen)

156,7697,180
7,934
21,06844,610170,631+34.6%+13.9%△11.6%+14.8%

9,663
9,040
18,634

51,207

Overseas

4.6%
5.1%

5.7%
5.3%

Engineering

13.4%

10.9%

28.5%

30.0%

48.5%

48.1%

FY3/2022

FY3/2023

SolutionArea

75,975＋8.0％

FY3/2022

82,086

Manufacturing

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 FY3/2022.
Net sales of Solution segment includes the impact of UT System Products which was sold at the end of March 2022.
Copyright © UT Group Co., Ltd. All Rights Reserved.

12

FY3/2023 Financial Highlights and Outlook

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

40

Ave. of monthly 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

0

FY3/2018

FY3/2019

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

FY3/2020

FY3/2021

FY3/2022

FY3/2023

Keeping unit priceunder 300k yen＋

Ave. of monthly recruits

1,160

13

FY3/2023 Financial Highlights and Outlook

Progress in the first three years of the 4th Med-term Business Plan
(FY3/2021 - FY3/2025)
Sales[0.1 Billion yen]

1,011

FY3/20+12,0001,706

31,636

10% level

31,936
11.8%

23,736

1,151

FY3/21

SG&A expense to net sales ratio
Excluding the impact of stock compensation
expenses for FY3/2023

1.7x
1,567

Technical employees (Japan)

12.5%

FY3/23

4th med-term management plan

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

FY3/20[10k Yen]< ¥300k
35

13.7%

31
10.9%

26

22

19,634

FY3/22Average hiring cost

FY3/21

FY3/22

FY3/23

4th med-term management plan

FY3/20FY3/21

FY3/22

FY3/23

4th med-term management plan

FY3/20FY3/21

FY3/22

FY3/23

4th med-term management plan14

FY3/2023 Financial Highlights and Outlook

Key measures for the last two years of the 4th Med-term Business Plan
(FY3/2021 - FY3/2025)(1) Increase in the number of tech employees
Improve cost efficiency in hiring

Increase new hires

Shorten and automate the process from application up to joining the company(2) Retention & growth of tech employees

Improve the retention rateand skills of employees

Diversify hiring channels
Develop services to improve the convenience of job seekers and tech employees
Enhance the function of owned media to improve the matching accuracy with the workplace
Provide educational services and enhance support functions for members

Strengthen production of SME engineers

Increase and diversify the projects bystrengthening sales

SG&A expenses to sales

10% level

Monthly hiring by UT Group2,000 new hires

Average salary of tech employees

20% increase*

The target for FY3/2025 compared to FY3/2021

Targets: ¥25bln EBITDA and 50,000-60,000 tech employees
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15

FY3/2023 Financial Highlights and Outlook

FY3/2024 Earnings Forecasts
Invest for the future while keeping an eye on demand trends○ Started the year with the less-than-planned number of tech employees of 31,936○ Manufacturing Business: Control hiring expenses to match demand trends in 1H; and strengthen hiring activities in 2H○ Area Business: The Business is less susceptible to economic impacts. Will continue to strengthen the development of new projects and expand the staffing○ Invest in improving the convenience of job seekers and forming a foundation to support their skills and careers on an ongoing basis to achieve the ¥25
billion EBITDA target of the Medium-term Business Plan
[0.1 Billion yen]

Reference) FY3/2023

FY3/2023

FY3/2024

Excl. stock-based
compensation expenses

Forecasts % of net sales

ChangeamountChange %Results % of net sales

Results % of net sales

Net sales

1,706

100.0%

1,706

100.0％

2,000

100.0％+294+17.2%EBITDA*

157

9.2%

157

9.2%

164

8.2%

+7

+4.4%

Operating profit

89

5.2%

144

8.5％

144

7.2％

+55

+61.5%

Ordinary profit

88

5.2%

143

8.4％

141

7.1％

+53

+59.6%Net profit attributable to
UT Group

38

2.2%

93

5.5%

90

4.5%

+52

+134.9%EPS (yen)

94.92

－

232.72－222.98－+128.06+134.9%Ref) Diluted EPS (yen)

90.18

－

－

－

185.98－－－

Outlook for the business environment
Demand for semiconductors
Expect a med-term growth in demand but
the softening personnel demand up to 1H
Automotive-related demand
On the way to recovery
but still some uncertainties
Local personnel demand
Upward trend in the job openings-toapplicants ratio in each area
Ample room for growth* 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

FY3/2023 Financial Highlights and Outlook

Roadmap for the final two years of the Fourth Medium-term Business Plan
Numerical targets for the final two years of the Business Plan

Market outlook and UT’s basic strategy

Sales

EBITDA[0.1 Billion yen]

300

3,000

250

2,500

200

2,000

150

1,500

100

1,000

50

500

0

0

Existing business

M&A

Gradual recovery in worker demand by major manufacturers
from 2H FY3/2024

EBITDA

Regional worker demand remains firm
Expansion of the manufacturing dispatch market, andprogress in consolidation into major dispatch companies

The labor market will be in favor of job seekers
due to serious labor shortage
FY3/2023

FY3/2024

FY3/2025

Workforce, year-end(Domestic)

31,93644,00056,000New hires/year

13,93021,00024,000

0

3,500

7,500

3.2%

2.9%

2.8%

Increase of the workforce
due to M&As

Monthly Turnoverrate

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

Convenient services
to lock in job seekers

M&As to accelerateindustry consolidation17

FY3/2023 Financial Highlights and Outlook

Targets for the final year of 4th Med-term Business Plan remain unchanged
Sales target
Proven[0.1 Billions of yen]

Goals

EBITDA targets*1
Proven

CAGR

Goals

33.4%

1,567

FY3/222,000

FY3/24

4th med-term management plan

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

304

30.0%
229

164
150 157

1,706

FY3/23

EPS excl. stock compensation expenses

190

1,151

FY3/21

Goals

Circle

CAGR

250

2,200
1,800

EPS targets*2
Proven

CAGR

2,700

23.8%

[0.1 Billions of yen]

FY3/2579

75

FY3/21

FY3/22

216

107

FY3/23

FY3/24

4th med-term management plan

FY3/25*1 EBITDA: Operating profit + depreciation (property, plant and equipment + intangible assets)+ amortization of goodwill + stock compensation expenses

FY3/2178

FY3/22

79

232

186

94

FY3/23

FY3/24

4th med-term management plan

2 EPS for FY3/2024 and FY3/2025 are fully diluted

FY3/2518

FY3/2023 Financial Results

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

19

19

FY3/2023 Financial Results

Close scrutiny of demand trend to flexibly respond to changes
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 med-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 from 2Q onwards

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.

20

FY3/2023 Financial Results

Summary of Statement of Income
FY3/2022［million yen］

FY3/2023

Ref.) FY3/2023 excl. stock-based
compensation expenses

Y-o-Y change

Results% to net sales

Results% to net sales

Amount%Results% to net sales

Net sales

156,769

100.0%

170,631100.0%+13,862+8.8%

170,631100.0%

Gross profit

27,77017.7%

33,101

19.4%+5,331+19.2%

33,101

19.4%

21,51313.7%

24,18614.2%+2,673+12.4%

18,624

10.9%

EBITDA

7,502

4.8%

15,7149.2%+8,211+109.5%

15,714

9.2%

Operating profit

6,257

4.0%

8,914

5.2%

+2,657+42.5%

14,476

8.5%

Ordinary profit

5,954

3.8%

8,834

5.2%

+2,879+48.4%

14,396

8.4%

Net profit attributable to UT Group

3,140

2.0%

3,831

2.2%

+690

+22.0%

9,393

5.5%

EPS (yen)

77.81

－

94.92

－

+17.11+22.0%

232.72－

No. of Tech employees (Domestic)

31,636－

31,936

－

+300

+0.9%

31,936－

No. of Tech employees (Overseas)

13,750－13,594

－

-156

-1.1%

13,594－

SG&A expenses(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.

21

FY3/2023 Financial Results

Consolidated Balance Sheets
March 31, 2022

［million yen］

March 31, 2023

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

55,784

Cash and deposits

25,82740.3%

Notes and accounts receivable –
trade

21,445

Change from the end of
the previous FY
Amount%77.9%+6,036+12.1%

31,96944.6%+6,142+23.8%

33.5%

21,851

30.5%

+405

+1.9%

14,35922.4%

15,84622.1%+1,486+10.4%

Property, plant and equipment

1,411

2.2%

1,309

1.8%

-102

-7.2%

Intangible assets

9,509

14.8%

10,80415.1%+1,295+13.6%

5,731

8.9%

5,414

7.6%

-317

-5.5%

3,438

5.4%

3,731

5.2%

+293

+8.5%

Total assets

64,107100.0%

71,630100.0%+7,523+11.7%

Current liabilities

25,46739.7%

27,90339.0%+2,436

+9.6%

3,884

6.1%

3,993

5.6%

+109

+2.8%

Non-current liabilities

17,40827.2%

13,79819.3%-3,609-20.7%

Long-term borrowings

15,99024.9%

12,40017.3%-3,589-22.4%

21,232

33.1%

29,92841.8%+8,696+41.0%

19,59230.6%

22,45431.3%+2,862+14.6%

600

0.9%

6,161

8.6%

+5,561+926.0%64,107100.0%

71,630100.0%+7,523+11.7%

1.0

ー

0.7

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• Decrease in deposits• Increase in income taxes payableNon-current liabilities• Decrease in long-term borrowings
Net assets• Dividends paid from retained earnings• Recognition of net profit attributable to ownersof the parent• Increase in share acquisition rights (¥5,561M)• Equity ratio 31.8%(30.8% as of March 31, 2022)

22

FY3/2023 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): +300
Net Sales: Up 9%(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 the end 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

4Q

Net Sales

23,722

24,76027,042

25,57725,731

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

32,48435,21537,363

41,41642,774

41,56742,71743,80742,539

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

3,632

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％

8.5％

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

31,936

Technical
employees

-

-

-

-

-

-

-

-

-

-

-

13,276

12,571

12,456

9,562

13,75013,982

13,091

14,20813,594(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

23

FY3/2023 Financial Results

Raising the efficiency of SG&A expenses
Analysis of SG&A expenses ratio to sales（excluding stock-based compensation expenses）

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

13.7%
その他
Other

3.7%

△0.6pt
募集費
Hiringexpenses

Personnel
人件費
expenses

3.9%

6.1%

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

△1.8pt△0.4pt

10.9%
3.1%

2.1%

5.7%

FY3/2023

13.7％→10.9％

Personnel expenses-0.4pt・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
24Results by segment

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

25

25

Results by segment

Results by Segment: Net Sales and Sales Composition (Repost)
Net sales

Sales composition(Million yen)

156,7697,180
7,934
21,06844,610170,631+34.6%+13.9%△11.6%+14.8%

9,663
9,040
18,634

51,207

Overseas

4.6%
5.1%

5.7%
5.3%

Engineering

13.4%

10.9%

28.5%

30.0%

48.5%

48.1%

FY3/2022

FY3/2023

SolutionArea

75,975＋8.0％

FY3/2022

82,086

Manufacturing

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 FY3/2022.
Net sales of Solution segment includes the impact of UT System Products which was sold at the end of March 2022.
Copyright © UT Group Co., Ltd. All Rights Reserved.

26

Results by segment

Net Sales by Segment
Manufacturing Business
75,975(Million yen)

Area Business

8.0% 82,086(Million yen)

Solution Business

14.8%

26.0%
51,20744,61014,791
FY3/2022

FY3/2023(Million yen)

FY3/2022

FY3/2023

FY3/2022

18,634
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

13.9%

34.6%

7,934

9,040

7,180

9,663

FY3/2022

FY3/2023

FY3/2022

FY3/2023

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

(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

27

Results by segment

EBITDA by Segment

Manufacturing Business(Million yen)

73.3

% 11,225

12,00010,000
8,000

5,860

Area Business(Million yen)

15.0%

2,719百万円

4,860

19.0%
3,860
2,860

14.0%

6,479

4.0%
-140

2,000
0

-1.0%

FY3/2022

FY3/2023

9.0%
3,000

20.0%

7.0%

18.0%

2,500

16.0%
14.0%

2,000

5.0%

9.0%

8.5%

690.8%

11.0%

2,580

(Million yen)

5.0%

860

4,000

Solution Business

13.0%

1,860

13.7%

6,000

17.0%

12.0%

3.0%

1,500

10.0%

1.0%

8.0%

1,000

-0.3％

-1.0%

-138

500

FY3/2022

FY3/2023

0

0.2％

31

FY3/2022

6.0%

248

4.0%

1.3%

2.0%
0.0%

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.
6,000

Engineering Business

5,000

41.5%

4,000

1,000

10.7％

848

20.0%
18.0%

1,201

18.0%
16.0%
14.0%

10.0%
2,000

12.0%

8.0%
1,500

10.0%

6.0%
1,000
4.0%

0
0.0%

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

20.0%

2,500
12.0%

500
2.0%

FY3/2023(Million yen)

226.9%

16.0%

0

FY3/2022

Overseas Business

3,000
14.0%

13.3%

3,000

2,000

(Million yen)

2.0%

146

FY3/2022

477

4.9%

8.0%
6.0%
4.0%
2.0%
0.0%

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

28

Results by segment

Technical employees by Segment
Manufacturing Business
14,963

6.4%

FY3/2022(Person)

12,225

FY3/2022

FY3/2023(Person)

5.8%

1,388

1,469

FY3/2022

FY3/2023

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

(Person)

9.1%

14,001Engineering Business

Area Business

Solution Business

2.4%

13,332

FY3/2023

Overseas Business(Person)

3,060

3,134

FY3/2022

FY3/2023(Person)13,7501.1% 13,594

FY3/2022

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

29

Manufacturing Business

Segment Results
Net Sales
FY3/2022

FY3/2023

17.8%

13.4%

5.4%

20,50917,415

20,833
18,371

20,92819,864

1Q

2Q

2.5%
20,324 19,815

3Q

4Q

3,000

12.6%

2,500
2,000
1,500
1,000
500
0

7.9%

2,577

1,383

2,853
6.4%

11.3%

4.6%

0.3%

14,91913,402

14,786
14,133

14,55514,597

1Q

2Q

3Q

FY3/2022

FY3/2023

15.6%

13.7%
10.2%

3,266

2,034

12.8%

16.0%
14.0%
12.0%

9.3%

2,527

1,885

FY3/2023

Monthly sales per capita(Million yen)

FY3/2022(Person)

FY3/2022

EBITDA・EBITDA%
3,500

Technical employees(Million yen)

10.0%
8.0%

6.4%
14,96314,001

4Q(Ten thousand yen)
FY3/2023

2.9%

6.3%

3.8%

1.8%

44.2 45.5

43.9 46.7

45.9 47.6

45.6 46.4

1Q

2Q

3Q

4Q

6.0%
4.0%

1,176

Sales and technical employees
・Focused on clients who had strong demand as
demand for workers varied by client.
・Made close scrutiny of demand by client andtook a cautious stance in hiring.
・Strong demand up to 4Q FY3/2022 in the“Transportation equipment” came to a halt.
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.
・Since 2Q, the impact of non-operation, such as
the suspension of some automobile lines, hasbeen gradually alleviated.

2.0%
0.0%

1Q

2Q

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

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.

30

Manufacturing Business

Net Sales by Subsegment
Industrial and Commercial Machinery
FY3/2022

FY3/2023(Million yen)

18.0%

12.8%

5,785
4,810

5,913
5,013

5,979
5,302

5,3435,468

1Q

2Q

3Q

4Q

20.3%

Transportation Equipment
FY3/2022

2.3%(Million yen)

1.5%

11.4%

6,821

6,891
5,926

7,0216,913

7,616
6,750

2Q

6.8%

5.8%

7,623
6,974

7,672
7,182

7,2697,688

1Q

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

2Q

4Q

2.4%
7,0887,260

3Q

Other

4Q

(Million yen)
FY3/2023

41.4%

28.3%

238 280

251 354271 347277 338

1Q

2Q

3Q

4Q

17.6%
3Q

FY3/2023

9.3%

FY3/2022

16.3%

1Q

(Million yen)

FY3/2022

FY3/2023

26.5%
5,393

Electronics

22.0%

Industrial and Commercial Machinery
Electronics
・The trend to suspend or postpone to satisfy
demand for additional workers expanded morein 4Q than in 3Q, mainly due to semiconductor
inventory adjustments which began in the fall.
Transportation Equipment
・In 4Q FY3/2022, sales increased regardless of
seasonality, thanks to strong demand for
additional workers despite a decrease inoperating hours. In FY3/2023, demand for
additional workers was not strong throughout
the year, and the sales remained at a certain
level.

(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.

31

Manufacturing Business

Significant improvement in gross margin
Gross margin of the Manufacturing Business

20.4%
18.6%

1Q

18.0%

2Q

3Q

21.0%

21.9%

23.1%
20.5%

19.3%

4Q

1Q

2Q

3Q

4Q

FY3/2023

FY32022

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

0.6

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

19.0％→21.6％(full year)

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.

Feb.

Mar.
32

Area Business

Segment Results
Net Sales
FY3/2022

17.9%
12,246
10,3871Q

18.8%
12,646
10,643

FY3/2023

9.4%

19.2%

16.8%

13.3%

9.1%

13,347
11,722

12,996
11,857

12,546
10,522

12,947
11,086

13,095
11,557

13,332
12,2253Q

FY3/2023

13

1Q

-1.3%

841

2Q

3Q

Monthly sales per capita
FY3/2022

7.0%

6.3%

4.5%

0.1%

1Q

4Q

(Million yen)

FY3/2022

569

FY3/2023

13.9%

2Q

649

(Person)

FY3/2022

EBITDA・EBITDA%

5.3%

Technical employees(Million yen)

4Q

(Ten thousand yen)
FY3/2023

6.0%

4.0%

5.0%
4.0%

1.8%

1.0%

0.6%

0.3%

33.4 32.8

32.7 33.0

34.3 34.0

32.9 32.9

Sales and technical employees
・The organizational restructuring andstrengthening of the sales structure effective
April 2022 led to an increase in the number ofprojects for dispatch workers. This resulted in
an increase in the number of tech employees
and sales.
EBITDA・Some operating companies were affected byautomakers’ production cut but the enhanced
sales activities resulted in an increase in sales
and profit.
・The standardization of the business foundation
associated with the organizational restructuring
led to improve the efficiency in use of SG&A
expenses, mainly personnel expenses.

3.0%

520

1.0%

112

2Q

-137

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

3Q

-1.1%
4Q

-127

2.0%
1.0%
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 FY3/2022.

-1.0%
-2.0%

1Q

2Q

3Q

4Q
33

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 month34

Area Business

Area Business creates diverse jobs nationwide; has high growth potential

UT’s technical employees
in the Area Business

13,000 Dispatched workers in Japan

1.4million

UT Group’s
strengths

Local dispatch
companies

Use of the Group’s
hiring capability

Difficulty inhiringCoping withlegal revisions
by the Group

Legal
revisions

Achievement inacquisitions of local
dispatch companies

Business
succession

Using UT’s strength, UT has ample room for share growth
Copyright © UT Group Co., Ltd. All Rights Reserved.

35

Solution Business

Segment Results
Net Sales
FY3/2022

3,951

FY3/2023

4.0%

46.7%

75.9%
4,583

4,661 4,671

4.5%

6,270

6,185

4,5034,681

4,4974,697

1Q

3Q

4Q

EBITDA・EBITDA%
2022年3月期
115
95

55
35

45

15
-5
-25
-45

71

70
70

0.7%

2.1%

2.4%

3,114

3,103

3,0533,116

3,0603,134

3Q

4Q

23

2.0%

81

26

(Ten thousand yen)
FY3/2023

3.0%

115

0.6%

2Q

FY3/2022

2.5%

65

2,166

Monthly sales per capita(Million yen)

1.5%

1.0%

43.3%

1Q

2023年3月期

FY3/2023

66.4%

1,871

2Q

(Person)

FY3/2022

3,184

2,606

75

Technical employees(Million yen)

1.0%

0.4%

20

0.3%
16

3.1%

1.2%

1.9%

1.8%

47.7 49.2

49.5 50.1

49.4 50.3

49.2 50.1

0.0%

-39

1Q

-1.5%

-2.0%

2Q

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

3Q

4Q

EBITDA・EBITDA increased due to an increase intechnical employees at the existing subsidiaries
and increased operations at some dispatchedworksites.
TOPIC
・Sold UT System Products on March 31, 2022.
(note) UT Group acquired shares of UT System
Products (engaged in sales of information systemequipment) as well as UT Toshiba (engaged in generalpersonnel dispatch and outsourced work) from the
Toshiba on April 1, 2020. ¥6.27 billion in sales and notechnical employee in FY3/2021.

(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.

-1.0%

-27

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.

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.

36

Engineering Business

Segment Results
Net Sales
FY3/2022

16.4%

15.5%

12.8%

11.3%

2,240
1,925

2,262
1,959

2,268
2,011

2,267
2,038

1Q

2Q

3Q

4Q

FY3/2022

FY3/2023

350
300
250

12.3%
9.3%

200
150
100

14.2%

183

244

358

241

16.9%

13.5%

1,574
1,382

1,561
1,335

1,533
1,351

1,3881,469

1Q

2Q

3Q

4Q

FY3/2022

12.0%

10.0%

8.0%

244

13.9%

5.8%

(Ten thousand yen)
FY3/2023

3.0%

0.7%

2.0%

3.5%

46.1 47.5

48.7 48.3

50.0 49.0

49.3 51.1

6.0%(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 FY3/2022.

2.0%

0

0.0%

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

1Q

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%

14.0%

12.0%

321

9.4%

276

178

12.0%

10.8%

15.8%

FY3/2023

Monthly sales per capita(Million yen)

450

(Person)

FY3/2022

FY3/2023

EBITDA・EBITDA%

400

Technical employees(Million yen)

3Q

4Q

1Q

2Q

3Q

4Q
37

Engineering Business

Net Sales by Subsegment
Construction engineers
FY3/2022(Million yen)

IT engineers
FY3/2022

FY3/2023

12.6%

8.9%

5.6%

1.2%

1,333
1,184

1,323
1,215

1,2601,330

1,2611,275

2Q

3Q

4Q

FY3/2023

22.4%

26.3%

24.9%

27.7%

906

939

936

990

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.

38

Overseas Business

Segment Results
Net Sales
FY3/2022

29.4%
1,986

1,535

33.3%

66.7%
2,580

1,727

3Q

EBITDA・EBITDA%

150

4.4%

3.4%

113

3.1%

46

75

1Q

1.2%

19

13,982
12,571

13,091
12,456

1Q

4Q

7.6%
210

50

5.1%

2Q

48.6%

1.1%

14,20813,750 13,594

9,562

3Q

4Q

FY3/2023

200

0

2,792
2,369

11.2%

FY3/2023(Million yen)

FY3/2022

100

17.9%

1,547

2Q

(Person)

FY3/2022

FY3/2023

2,303

1Q

3.8%

Technical employees(Million yen)

77
2Q

1.5%

22

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

3Q

7.0%
6.0%
5.0%

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.
・The number of tech employees increased
significantly in Vietnam in 4Q FY3/2022, a
recovery period from the lockdown. However, in
4Q FY3/2023, the number of employees at
year-end decreased slightly due to the impact
of sluggish exports by some client companies(manufacturing industries).
・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+400-million-yen impact for 4Q period

4.0%

2.4%

3.0%
2.0%

56

1.0%
0.0%

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.

EBITDA
・The EBITDA margin improved, due to sales
increase driven by higher personnel demand
and the improved efficiency in use of SG&A
expenses.

39

UT Group’s Growth Potential

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

40

40

UT Group’s Growth Potential

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

,600

,400

33％ CAGR

,200

,000
800

since establishment

600
400
200
0

Sales
FY3/1996

FY3/2001

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

FY3/2009

FY3/2023
41

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

,400

,200

Industrial Production Indicator
By1.1Ministry of Economy, Trade and Industries
1.05

1001

,000

0.95

800

0.9

600

0.85

400
200
0

0.8

Sales
FY3/1996

FY3/2001

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

FY3/2009

FY3/2023
Source: Ministry of Economy, Trade and Industries “Industrial Production Indicator”

42

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.

43

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.

44

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.

45

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.

46

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
47

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

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)

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

48

UT Group’s Growth Potential

UT will lead the market with further increase in market share

FY2023/3
Manufacturing
dispatch market

32k

370k
workers（2021）

From the Labor Force Survey, Ministry of Internal Affairs and Communications basic data for 2021)/8.6％

by FY2025/3

50-60kincrease to

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

workers

workers49

UT Group’s Growth Potential

The Target of the 4th Medium-term Business Plan（Repost）
Sales target
Proven[0.1 Billions of yen]

Goals

EBITDA targets*1
Proven

CAGR

Goals

33.4%

1,567

FY3/222,000

FY3/24

4th med-term management plan

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

304

30.0%
229

164
150 157

1,706

FY3/23

EPS excl. stock compensation expenses

190

1,151

FY3/21

Goals

Circle

CAGR

250

2,200
1,800

EPS targets*2
Proven

CAGR

2,700

23.8%

[0.1 Billions of yen]

FY3/2579

75

FY3/21

FY3/22

216

107

FY3/23

FY3/24

4th med-term management plan

FY3/25*1 EBITDA: Operating profit + depreciation (property, plant and equipment + intangible assets)+ amortization of goodwill + stock compensation expenses

FY3/2178

FY3/22

79

232

186

94

FY3/23

FY3/24

4th med-term management plan

2 EPS for FY3/2024 and FY3/2025 are fully diluted

FY3/2550

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*※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.

10％ level

2,000 new hires
51

Appendix

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

52

Appendix

Newly-consolidated company’s contribution

Contribution of newly-consolidated company to 4Q of FY3/2023

Business Segment

SubSegment

Solution Business

ー

Total

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

Consolidated subsidiaryUT FSAS Creative Inc

Former Fujitsu FSAS Creative Inc.

Time ofconsolidation

Oct. 2021*consolidation impact
has already ended.

Contribution to FY3/2023
Net Sales(billion yen)

2.4

Number of technicalemployees (2Q-end)

872

2.4

53

Appendix

Analysis of SG&A expenses(100 million yen)

FY3/2019
１Q

２Q

３Q

FY3/2020
４Q

Full
year

１Q

２Q

３Q

FY3/2021
４Q

Full
year

１Q

２Q

３Q

FY3/2022
４Q

Full
year

１Q

２Q

３Q

FY3/2023
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 2,403 2,414 2,393 ２，５10 9,720

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%

Hiringexpenses

833

993

724

289 2,839

490

527

496

341 1,854

151

267

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%

depreciation andamortization of
goodwill

140

145

155

161

601

137

139

142

145

563

ratio to sales

0.6%

0.6%

0.6%

0.6%

0.6%

0.5%

0.5%

0.6%

0.6%

Other

801

879

933

729 3,342

889

841

ratio to sales

3.4%

3.5%

3.5%

2.9%

3.3%

3.5%

SG&A
Expenses

3,075

3,426

3,298

2,856 12,655

3,090

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% 10.9% 10.9%

5.7%

6.4%

6.4%

6.3%

6.1%

5.6%

6.1%

5.7%

5.5%

5.9%

770 1,218 2,406 1,215 1,608 1,575 1,719 6,117

877 1,041

817

812 3,549

1.0%

2.6%

3.7%

2.1%

3.5%

4.3%

3.8%

4.0%

3.9%

2.1%

2.4%

1.9%

1.9%

171

181

218

256

826

309

303

305

30７ 1,22５

267

308

320

327 1,223

0.6%

0.7%

0.7%

0.7%

0.8%

0.7%

0.9%

0.8%

0.7%

0.7%

0.6%

0.7%

0.7%

0.8%

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 1,002 4,130

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%

2.4%

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

4,631

4,817

4,521

4,653 18,624

0.8%

5.8%

5.7%

2.1%

0.7%

2.4%

Results for 3Q, 4Q and Full-year of FY3/2023 exclude the stock-based compensation expenses
Copyright © UT Group Co., Ltd. All Rights Reserved.

54

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 Business55

Appendix

Segment composition of FY3/2023
Overseas Business

Manufacturing Business

Personnel services in Vietnam

9.6 BY（5.7 ）Industrial and Commercial
Machinery%

14%

Engineering Business

Net Sales

Engineer dispatch service
in construction and IT field

9.0 BY（5.3 ）52%%

82.0 BY（48.1 ）%（FY3/2023）

Solution BusinessSupporting structural reform and personnel services

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

170 BY

Electronics
18%

Personnel services for major manufacturers

Other
1%

Transportationequipment
16%

Area Business

Area-based personnel services

51.2 BY（30.0 ）%56

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
Engineers57

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

58

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.

59

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 Limited60

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.

61

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

Compensation for work
Stock-based
compensation
expense100

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.)
After being exercised, the stock-acquisition rights are journalized as capital.

50

Fair value with noconsideration to
performance
conditions

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

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

62

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

63

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

Expensed when the conditions are met

Balance

Allotment¥76,412 × 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¥15.0B64

Appendix

Medium-term business objective

Create a “diversity & inclusion” workstyle platform

On the basis of its established business base,
UT

Group

will

realizeavigorous

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.

65

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.

66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.

67

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

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

250

2,700
157
150

Total return ratio

75

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

49

FY23

FY24

FY25

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

Total return ratio: 30% or more

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.

100
79

86

1,300
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.

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

164

2,000

1,706

1,800

1,567
1,151

FY21

Commitments

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.

1,038

1,011
FY20

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

FY20

FY21

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

68Appendix

Corporate Outline
Corporate Outline

As of Mar. 31, 2023

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 Mar. 31, 2023

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:

5,854

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.

69

Appendix

The Leading Company in Manufacturing Dispatch Industry
FY3/2023

Creating vigorous workplaces empowering workers.

Domestic Technical employees

31,936Adopting 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¥170.6bn

600
400
200
000
800
600

30

Spread of COVID-19 infection

Number of technical employees

25

Sales from dispatch and outsourcedwork

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

20

Sales from other businesses
Businesses related to semiconductor manufacturing equipment andother manufacturing equipment

15
Global financial crisis

10

400

0

5

IT bubble burst

200

FY3/1996

FY3/2000
Starts contracts for
entire processes

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

FY2010Starts 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 forwork

0

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

70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 for Japan.

Strategy to make workers vigorous and empowered
Job security and stability

Team dispatch and support for careerdevelopment● Regular employment (open-ended employment)● Start-to-finish outsourced production service● Fulfilling welfare benefits● Career consulting● Company housing all over the country● Cultivation of inexperienced employees by teams

Developing motivation● Entry system for positions● 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.

71

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.

72

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.

73

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

74

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

75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 room76

Appendix

Tight supply and demand situation in the manufacturing industry due to thelabor shortage○ The jobs-to-applicants ratio for manufacturing jobs is staying at around the 2.0 level.

Jobs-to-applicants ratio(times)

2.07

1.97

2.0
1.8

1.86

Manufacturing jobs

1.6
Affected by
COVID-19

1.4

1.22

1.2

Overall

1.0
0.8

2016

2017

2018

2019

2020

2021

2022

2023

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

77

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

3,000

250

2,000

150

200
100

1,000

1,800

1,600

1,400

50

0

2017年

2018年

2019年

0

2022年

2021年

2020年

1,000

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

800

UT Group

1,900

1,200

Nikkei Ave.

1,700

600

1,500
1,300
1,100

400

900
700
500

200

300
100

-100

0
2010

2011

2012

2013

2014

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

2015

2016

2017

2018

2019

2020

2021

2022

2023

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

78

Appendix

Trends of Business Results

Net sales(100 million yen)

1,600
1,400

EBITDA(LH) and EBITDA% (RH)
160

EBITDA140

EBITDA%

600

60

400

40

200

20
2014/03

2015/03

2016/032017/032018/03

2019/032020/032021/032022/03

EPS and EPS growth rate

2023/03(Yen, %)

4.0
2.0

0

2014/03

EPS

80

EPS growth rate

60

80

40

60

20

40

0

20

-20
2014/03

2015/03

2016/032017/032018/03

2019/032020/032021/032022/032023/03-40

2015/03

2016/032017/032018/03

2019/032020/032021/032022/03

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

100

140

0

6.0

80

800

100

8.0

100

1,000

120

10.0

120

1,200

0

(100 million yen, %)2023/03(100 million yen, %)60.0

Total assets

600

Shareholders’ equity

50.0

ROA
ROE

40.0

400

30.0
20.0

200

0

0.0

10.0

2014/03

2015/03

2016/032017/032018/03

2019/032020/032021/032022/032023/03

0.0

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.

79

Appendix

Basic Policy on Shareholders’ Return
Basic policy on shareholders’ return
UT Group’s management aims at establishing a stable financial position and promoting aggressive businessdevelopment to achieve high growth and ultimately raise sustainable corporate value. UT Group regards returning
profits to shareholders as an important management issue and intends to make an appropriate return toshareholders based on a total return ratio of 30% or more by dividends and share buyback, which helps improve
capital efficiency, and in consideration of stock price level, business environment, and other factors.

Total return ratio(Dividends + share buyback) / Net profit≧30%

Total return ratio

Net profit
Dividends paid
Amount of share buyback
Total returnratio(million yen)

FY3/2018

FY3/2019

FY3/2020

FY3/2021

FY3/2022

FY3/2023

3,534

4,968

4,562

4,299

3,140

3,831

-

2,499

-

2,663

968

-

1,060

-

-

-

-

30.0%

50.3%

0.0%

62.0％

30.8%

2,817

(expected)

73.6%(expected)*In light of changes in the business environment and other factors, shareholder return in FY3/2019 was all in the form of dividend payment, including special dividend.
* Shareholder return for March 2020 was postponed in consideration of the impact of the spread of the new coronavirus.
*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.
*In FY3/2023, UT Group plans to acquire its own shares in an amount equivalent to 30% of net income attributable to owners of the parent, excluding the stock-based compensation expenses.
Copyright © UT Group Co., Ltd. All Rights Reserved.

80

Appendix

INTEGRATED REPORT 2022 was released（Sep. 2022）
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_material14/197319/00.pdf
Copyright © UT Group Co., Ltd. All Rights Reserved.

81

Appendix

Sustainability Data Book 2023 was released（Mar. 2023）
The "UT Group Sustainability Data Book 2023" explains our thoughts,
initiatives, indicators, etc. regarding sustainability that are not includedin the Integrated Reports. The contents are categorized according to
the Company's four key themes, and a wide range of information anddata are included so that stakeholders can better understand theCompany's activities.
Please download the Sustainability Data Book from here:
https://ssl4.eir-parts.net/doc/2146/ir_material14/203418/00.pdf

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

82

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 Unitinformation 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