インソース（6200） – Consolidated Cumulative Financial Results for the 2Q of FY ending September 30, 2022

マスター タイトルの書式設定Consolidated Cumulative Financial Results for the 2Q of FY ending September 30, 2022Monday, May 9, 2022Takayuki Funahashi, President and CEOInsource Co., Ltd.(TSE:6200)Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.0Disclaimer Regarding Forward-looking Statements マスター タイトルの書式設定•This document contains estimates and targets pertaining to the future plans and business results of the Insource Group (Insource Co., Ltd. and its affiliated companies). Such statements are based on information available at the time of preparing this document and are based on potential risks and uncertainties. Please be aware that actual results may differ materially from estimates and targets contained herein.••••Unless otherwise noted, financial statements contained herein are presented in accordance with the accounting principles generally accepted in Japan.The Group assumes no obligation to update or revise any forward-looking statements to reflect events or circumstances in the future, except the statement based upon TSE Disclosure Rules. Information in this document regarding companies other than the Group is quoted from public and other sources. We do not guarantee the accuracy of this information.This document does not indicate and does not intend any solicitation of acquisition of securities nor any solicitation of securities trading. And this document shall not be the basis for any contract or commitment whatsoever.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.1Contentsマスター タイトルの書式設定Chap. 011H FY21 Consolidated Financial ResultsChap. 022Q FY21 Details by Business Company Profile & Insource’s Advantages ESG Strategies and Topics Three-year Business Plan “Road to Next 2024”Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.21H FY21 Highlightsマスター タイトルの書式設定■Net salesSales increased by 22.8% YoY to 4,510 million yen (+836 million yen YoY).On-Site training business increased by 15.5% to 2,123 million yen.Open Seminars business increased by 15.8% to 984 million yen.IT services business increased by 25.1% to 687 million yen.Other businesses increased by 64.2% to 715 million yen.The sales of all businesses field increased, achieving the highest half-year sales in the company’s history.Gross profit increased by 23.8% to 3,497 million yen (+ 672 million yen YoY), and gross profitmargin improved by 0.6pt YoY to 77.6%, achieving a record-high half-year gross profit. ■Gross profit■Operating profitOperating profit increased by 33.2% to 1,674 million yen ( +417 million yen YoY), and operatingprofit margin improved by 2.9pt to 37.1% YoY, achieving the highest half-year operating profit.■Consolidated FY21(full-year) financial forecastsSince there are warnings of a rebound in the spread of COVID-19, and the impact on each business, both positive and negative, cannot be determined at this time, the consolidated financial forecast forFY21(full-year) remain unchanged from that announced on January 24, 2022. The figures willbe announced if updated.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.3マスター タイトルの書式設定Chap. 011H FY21 Consolidated Financial ResultsCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.4Consolidated Profit & Loss Statement ① Overviewマスター タイトルの書式設定1H FY19(Actual)1H FY20(Actual)1H FY21(Actual)YoY2,905(+349)3,673(+768)2,073(+292)(71.4％)2,825(+752)(76.9％)4,510(+836)3,497(+672)(77.6％)+22.8％+23.8％(+0.6pt)(76.2％)Unit: million yenProgress rate50.7％51.6％FY21 (Forecast)8,900（+1,398）6,780（+1,058）624(+56)(21.5％)623(+57)(21.5％)420(+48)(14.5％)1,257(+632)1,674(+417)+33.2％2,600（+195）64.4％(34.2％)(37.1％)(+2.9pt)(29.2％)1,273(+650)1,658(+384)+30.2％2,600（+183）63.8％(34.7％)(36.8％)(+2.1pt)(29.2％)823(+402)(22.4％)1,136(+312)+38.0％1,770（+198）64.2％(25.2％)(+2.8pt)(19.9％)Net sales(YoY)Gross profit(YoY)(Gross profit margin)Operating profit(YoY)(Operating profitmargin)Ordinary profit(YoY)(Ordinary profit margin)Net Profit(YoY)(Net profit margin)※ The consolidated financial forecasts for FY21(full-year) remain unchanged from the figures announced on January 24, 2022. The figures will be announced if updated.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.5Consolidated Profit & Loss Statement ② By Businessマスター タイトルの書式設定On-Site TrainingComposition ratio1H FY21: 47.1%(1H FY20: 50.1%)Open SeminarsComposition ratio 1H FY21: 21.8%(1H FY20: 23.1%)IT ServicesComposition ratio 1H FY21: 15.2%(1H FY20: 15.0%)Other BusinessesComposition ratio 1H FY21: 15.9%(1H FY20: 11.9%)Net Sales(YoY)Gross profit(Gross profit margin)Net Sales(YoY)Gross Profit(Gross profit margin)Net Sales(YoY)Gross Profit(Gross profit margin)Net Sales(YoY)Gross Profit(Gross profit margin)1H FY20(Actual)1H FY21(Actual)YoYFY21(Target)1,838(+250)2,123(+284)+15.5％1,4301,689+18.1％(77.8％)(79.6％)(+1.8pt)(75.5％)(76.6％)(+1.1pt)984(+134)+15.8％754+17.5％687(+137)+25.1％Unit: million yenProgress rate48.3％49.5％46.2％47.7％53.7％4,400（+602）3,410（+446）(77.5％)2,130（+302）1,580（+207）(74.2％)1,280（+257）546+25.1％1,02053.6％(79.5％)(79.5％)(+0pt)(79.7％)715(+279)+64.2％1,090（+236）65.6％507+60.3％77065.9％(72.7％)(71.0％)(▲1.7pt)(70.6％)850(+141)642549(+210)436435(+165)316※ Our gross profits by business were not audited by Ernst & Young ShinNihon LLC.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.6Consolidated Profit & Loss Statement ③ Breakdown of SG&A expensesマスター タイトルの書式設定■Personnel expenses increased by 218 million yen (+17.6% YoY) due to the personnel increase and the RS implementation.company’s own building.■Office-related expenses decreased by 6 million yen (-7.3% YoY) due to the lower ground rent after purchasing the■Other expenses increased by 46 million yen (+29.8% YoY) due to the increase in business tax.Unit: million yenBreakdown of SG&APersonnelexpenses※1Of which, RS※2Office-related expenses ※3Office &communicationexpensesOthersTotal SG&A(SG&A ratio)1H FY19(Actual)1HFY20(Actual)1H FY21(Actual)YoY1,100 1,2411,460+218 +17.6%0988108881598176+59-▲6 ▲7.3%▲4 ▲5.3%169157204+46 +29.8%1,449 1,5681,823+254 +16.2%FY21(Forecast)3,330（+715）120（+60）150（▲47）210（+62）490（+135）4,180（+863）(49.9%)(42.7%)(40.4%)(▲2.3pt)-(47.0％)※1 Personnel expenses include wages, recruitment, training, benefit expenses, and outsourcing expenses.※2 Restricted stock.※3 Office-related expenses include land rent, fixed asset tax of the company’s buildings, real estate acquisition tax, and depreciation of property, plant and equipment.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.7Number of Employeesマスター タイトルの書式設定■A total of 34 new employees (22 new graduates and 12 mid-career employees) joined the company in this April.We are actively recruiting to increase the number of employees by 70 for FY21.■For the investment to the next generation, we are focusing to improve the skills of the promising employees who joined the company for less than one year after graduation and those who joined mid-way for less than six months.In particular, the new graduates have been trained as the new core personnel with both DX and sales’ skills.FY19(Actual)FY20(Actual)End of 2Q FY21(Actual)(vs end of FY20)Remaining no. of people against FY21 targetEnd of FY21(Target)(YoY)Total number of employees470527Promising employees※6285531（+4）65597（+70）100（+15）Change of number of employees■Full-timers■Promising employees47062408527854425316546666-597100497End of FY19 (Actual)End of FY20 (Actual)※Promising employees refers to personnel who have joined the company within one year after graduation and within six months after mid-career hiring.End of 2Q FY21 (Actual)End of FY21 (Target)Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.8Consolidated Balance Sheetsマスター タイトルの書式設定■Current assets increased due to an increase in cash and deposits. Fixed assets increased due to the acquisition of the company-owned building.■Current liabilities increased due to an increase in short-term borrowings.■Net assets increased due to profit despite dividend payment.Unit: million yenEnd of FY19(Actual)End of FY20(Actual)End of 1H FY21(Actual)HoHCurrent assets3,0253,759Of which, cash and deposits 2,2191,319Fixed assetsTotal assetsCurrent liabilitiesOut of which,Advances received ※Fixed liabilities4,3441,379595812,6243,0076,7662,20259963Net assetsTotal liabilitiesAnd net assets2,8834,5004,3446,7664,3423,0443,2687,6112,555598525,0047,611+583+15.5％+419+16.0％+261+844+352+8.7％+12.5％+16.0％▲0▲0.1％▲11 ▲18.7％+503+11.2％+844+12.5％※Advances received are the unused amount of the “HRD Smart Pack”(our unique point service) that can be used for services such as Open Seminars and e-Learning/VideosCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.9Consolidated Cash Flowマスター タイトルの書式設定■Cash from operating activities decreased due to increases in business taxes paid, despite an increase in profits.■Cash from investing activities decreased due to a decrease in purchase of intangible fixed assets.■Cash from financing activities decreased due to an increase in dividends paid and a decrease in short-term borrowings.■Depreciation expenses increased due to acquisition of company-owned building.1H FY20(Actual)1H FY21(Actual)Unit: million yenHoHCash flowfrom operating activities (A)Cash flowfrom investing activities (B)Free Cash Flow (A+B)Cash flow from financing activitiesDepreciation expenseAmortization of goodwill1,073▲760313313464892▲181▲319573+440+259▲153▲466668+20+3Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.10FY21 KPIs マスター タイトルの書式設定■The number of WEBinsource new clients and new contents has made good growth.FY20(Actual)1Q FY21(Actual)2Q FY21(Actual)1H FY21 cumulative total（progress rate）FY21（Target）2,306（15,798）673（16,471）750（1,7221）321（3,461）437（3,296）248（334）60（231）81（3,542）81（3,623）116（3,412）83（3,495）48（382）8（239）66（448）11（250）2,0104474181,423（progress rate：59.3％）162（progress rate：54.0％）199（progress rate：66.3％）114（progress rate：54.3％）19（progress rate：54.3％）865（progress rate：40.2％）2,400（18,198）300（3,761）300（3,596）210（544）35（266）2,150No. of new contracts of WEBinsource (organizations)(Cumulative no.)No. of new contentsfor On-Site training(Cumulative no.)No. of new contents for Open Seminar(Cumulative no.)No. of new contents for e-Learning/ video ※1(Cumulative no.)No. of core solution plans※2(Cumulative no.)No. of web-sessions(Unit: thou. times)(known as a package plan, formerly )※1 The number of new contents for e-learning and video are those developed by the Company only (excluding partners).※2 Core solution plan: A packaged plan that combines multiple services to solve the various issues (issues by type, by industry, by job title, etc.) of each organization at the same time. Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.11マスター タイトルの書式設定Chap. 022Q FY21 Details by BusinessCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.122Q FY21 Highlightsマスター タイトルの書式設定2Q FY21 Consolidated Financial Results (Jan.-Mar., 2022)• Sales increased in all businesses, with quarterly sales, gross profit, and operating profit reaching record highs. Sales of high unit-price DX training and high-profit e-learning and video sales increased significantly.• Net sales were 2,317 million yen (+24.6% YoY).Gross profit was 1,819 million yen (+26.7% YoY). Gross profit margin was 78.5% (+1.3pt YoY). Operating profit was 899 million yen (+47.3% YoY). Operating profit margin was 38.8% (+6.0pt YoY).2Q FY21 Details by business (Jan.-Mar., 2022)• On-Site Training business (Sales: 874 million yen, +13.2% YoY, progress rate: 48.3%)High unit-price online training and DX training have increased in both the private and public sectors.• Open Seminars Business (Sales: 476 million yen, +18.3% YoY, progress rate: 46.2%)•DX training such as “Python Academy” and other various new training performed well, and the total number of attendees increased significantly.IT Services Business (Sales: 483 million yen, +21.1% YoY, progress rate: 53.7%)Annual recurring revenue (ARR) increased 44.1% YoY to 572 million yen with 1.93 million Leaf users. Sales of customization services also grew due to the introduction of on-the-web appraisal form service and paid optional functions.• Other Businesses (Sales: 482 million yen, +69.4% YoY, progress rate: 65.6%)High-profit e-learning/video sales were strong in both the private and the public sectors due to fiscal-year-end demand and contents updated for legal revisions in this April.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.13Consolidated Profit & Loss Statement Overviewマスター タイトルの書式設定Unit: million yen2Q FY20(Actual)3Q(Actual)1Q FY21(Actual)1,859 1,870 1,956 2,192 2,317 +457 +24.6%4Q(Actual) 2Q FY21(Actual)YoY(+45)(+10)(+86)(+235)(+124)1,435 1,414 1,481 1,678 1,819 +383 +26.7%(+44)(▲21)(+67)(+197)(+140)(Gross profit margin)(77.2%)(75.6%)(75.7%)(76.6%)(78.5%)(+1.3pt)610(▲35)474(▲135)672775899 +288 +47.3%(+197)(+103)(+123)(32.8%)(25.4%)(34.4%)(35.4%)(38.8%)(+6.0pt)614(▲45)370(▲81)477(▲136)325(▲44)665765893 +278 +45.4%(+187)(+100)(+127)422(+96)522(+100)613 +242 +65.5%(+90)Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.14Net Sales(QoQ)Gross Profit(QoQ)Operatingprofit(QoQ)(Operating profit margin)Ordinaryprofit(QoQ)Net profit(QoQ)On-Site Training Businessマスター タイトルの書式設定■Gross profit margin increased by 1.2pt YoY because high unit-price online training and DX training have increased in both the private and public sectors performed well.■Based on sales by customer segment, Large Enterprise (companies with 1,000 or more employees) increased.Unit: million yen2Q FY20(Actual)3Q(Actual)4Q(Actual) 1Q FY21(Actual)2Q FY21(Actual)YoYNet Sales(QoQ)772 1,018(▲293)(+245)940 1,248(▲77)(+308)874 +102 +13.2%(▲374)Gross profit(QoQ)(Gross profit margin)608(▲213)(78.7%)798(+190)(78.4%)734(▲63)(78.1%)990(+255)(79.3%)698(▲291)(79.9%)(+1.2pt)+90 +14.9%No. of trainings conducted(times)2,613 3,811 3,525 4,807 2,984 +371 +14.2%(▲1,662)(+1,282)(▲286)no. of online training 1,590 1,757 2,036 2,321 1,798 +208 +13.1%Among above, (▲1,823)(+1,198)(QoQ)(composition ratio)(60.8%)(46.1%)(57.8%)(48.3%)(60.3%)Average unit price(unit:thou.yen)(QoQ)295.6 267.1 266.8 259.8 293.1 ▲2.5 ▲0.9%(+46.4)(▲28.4)(▲0.3)(▲7.1)(+33.3)※ Sales activities tailored to characteristics of each customer segment have been promoted from FY21, (see Three-year business plan “Road to Next 2024” p45)Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.15Open Seminars Businessマスター タイトルの書式設定■DX training such as “Python Academy” and other various new training performed well, and the total number of attendees increasedsignificantly. The composition ratio of online training increased to 90.3%, maintaining a high level.■Gross profit margin increased 1.1pt YoY due to the decrease of office-related expenses by reducing the number of seminar rooms.■Based on sales by customer segment, Medium Business (companies with 500 to 999 employees)increased significantly.2Q FY20(Actual)403(▲43)302(▲37)(75.0%)3Q(Actual)512(+109)385(+83)(75.2%)4Q(Actual) 464(▲48)345(▲40)(74.3%)1Q FY21(Actual)507(+42)391(+46)(77.3%)2Q FY21(Actual)476(▲30)362(▲29)(76.0%)Unit: million yenYoY+73 +18.3%+60 +19.9%(+1.1pt)Net Sales(QoQ)Gross profit(QoQ)(Gross profit margin)No. of attendees18,450 22,041 21,846 24,440 22,205 +3,755 +20.4%(QoQ)(▲3,661)(+3,591)(▲195)(+2,594)(▲2,235)14,951 16,798 18,870 21,121 20,047 +5,096+34.1%(81.0%)(76.2%)(86.4%)(86.4%)(90.3%)14.0(+0.7)21.8(+1.6)13.4(▲0.7)23.2(+1.4)12.2(▲1.1)21.2(▲1.9)12.8(+0.5)20.7(▲0.5)12.5 ▲1.5 ▲11.0%(▲0.2)21.4 ▲0.3 ▲1.6%(+0.7)Among above, no. of online training(composition ratio)No. of attendees per seminar(QoQ)Average unit price per seminar(unit: thou.yen)(QoQ)※ Sales activities tailored to characteristics of each customer segment have been promoted from FY21, (see Three-year business plan “Road to Next 2024”p45)Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.16IT Servicesマスター タイトルの書式設定■The number of paid organizations and users of Leaf grew to 470 organizations and 1.93 million users respectively, with monthly usage (MRR*1) of 47 million yen and annual recurring revenue (ARR*2) of 572 million yen (+44.1% YoY).■Leaf Customization sales increased by 21.8% YoY due to an increase in the introduction of on-the-web appraisal form service and optional functions such as single sign-on.Net Sales(QoQ)＜Breakdown＞Leaf Monthly Subscription(QoQ)Sales per month*3Average unit price/Organization(unit: thou. yen)Leaf CustomizationStress Check Support Service Gross Profit *4(QoQ)(Gross profit margin)4Q3Q2Q FY20(Actual)(Actual)(Actual)399 172 301（+128）（▲226）（+249）1Q FY21(Actual)203（▲97）2Q FY21(Actual)483（+280）102（+9）34111（+8）38128（+17）43137（+9）463431141（+3）47235106399（+251）(82.6%)19310259153118326 106 246（+140）（▲220）（+216）(81.9%)(61.8%)(81.9%)147（▲99）(72.3%)Unit: million yenYoY+84 +21.1%+38+37.8%+14+44.1%+42+21.8%+3+3.2%+72 +22.2%(+0.7pt)104.7102.0104.6107.9104.0▲0.7▲0.7%※1 MRR： Monthly Recurring Revenue ※2 ARR：Annual Recurring Revenue. Calculated by multiplying the MRR of the last month of each term by 12.※3 Monthly usage fees (Recurring Revenue) for the last month of each quarter. ※4 Our gross profit margins by business were not audited by Ernst & Young ShinNihon LLC.※5 Recalculated and changed the breakdown of Leaf ‘s sales per month and customization sales for 1Q FY21.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.17IT Services KPIsマスター タイトルの書式設定Monthly subscriptionModel (Unit: organization)2Q FY20(Actual)3Q(Actual)4Q(Actual)1Q FY21(Actual)2Q FY21(Actual)YoYLeaf paid subscribers （QoQ）Leaf Users(Unit： thou. people）（QoQ）On-the-web appraisal form services（QoQ）375（+42）333（+35）432（+20）1,498 1,614 1,756 1,848（+92）412（+37）（+115）（+141）（+67）108（+10）116（+8）128（+12）134（+6）470（+38）1,932（+84）151（+17）+137 +41.1%+434 +29.0%+43 +39.8%Services based on individual contractLeafNo. of Customization（QoQ）No. of Stress Check Support Service（QoQ）2Q FY20(Actual)3Q(Actual)4Q(Actual)1Q FY21(Actual)2Q FY21(Actual)YoY50(+32)19(▲31)23113(+175)(▲218)58(+39)43(+31)17(▲41)102(+59)75(+58)277(+176)+25 +50.0%+46 +19.9%Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.18Other Businessesマスター タイトルの書式設定■High-profit e-learning/video sales were strong in both the private and the public sectors due to fiscal-year-end demand and contents updated for legal revisions in this April.2Q FY20(Actual)3Q(Actual)4Q(Actual)1Q FY21(Actual)2Q FY21(Actual)284 167 250 233（▲17）（+133）（▲117）（+83）Unit: million yenYoY+198 +69.4%Net Sales（QoQ）E-learning/Video Production（QoQ）Consulting/Onlineseminar supportservice/ Assessmentservice（QoQ）Web marketing（QoQ）Gross Profit※（QoQ）194109115108+117+60.3%（+96）（▲85）（+6）（▲6）76467957▲2 ▲3.0%（+38）（▲30）（+33）（▲21）—-4054（+40）（+13）198 123 154 149（▲5）（+79）（▲74）（+31）–+160 +81.0%482（+249）311（+203）74（+16）49（▲4）358（+209）(74.3%)（Gross profit margin）(69.5%)(73.9%)(61.9%)(64.0%)(+4.7pt)※ Our gross profit margins by business were not audited by Ernst & Young ShinNihon LLC.※ We have revised the operating segments, and some sales are transferred from e-learning and video production to consulting, seminar supporti services and assessment services, etc. The related figures have been restated on the table above.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.19Other Businesses KPIs マスター タイトルの書式設定Unit of Net Sales : million yen2Q FY20(Actual)3Q(Actual)4Q(Actual)1Q FY21(Actual)2Q FY21(Actual)YoY＜e-Learning/Videos＞Outright purchaseRentalNet Sales60495853176 +116 +193.6%No. of Videos430419288271869 +439 +102.1%Net Sales223610+8 +432.0%No. of Viewers1,878 1,735 1,507 4,138 3,763 +1,885 +100.4%Monthly Subscription(STUDIO)Video Production SolutionConsulting/Assessment serviceOnline seminarsupport serviceNet SalesNo. of User IDs(Unit : thou. IDs)Net SalesNo. of ContentsNet SalesNo. of OrganizationsNet SalesNo. of Organization384477373883386748511035215524364054122334714548435853631762668▲8+22.1%+16+37.3%29616637366818 ▲58 ▲76.6%+29+78.4%▲1 ▲1.8%71 ▲12 ▲14.5%▲1 ▲4.3%+1+1.5%Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.20Changes in sales by customer segment and new services①マスター タイトルの書式設定■Changes in sales by customer segment (All businesses)2Q FY20(Actual)2Q FY21(Actual)Unit: million yenYoY9752306181,172+197+20.2％309796+78+33.9％+178+28.8％Large Enterprise(1,000 or more employees)Medium Business(500-999)SMB (Small Medium Business) (less than 499)On-Site Training ・Large-scale projects for high-unit DX training increased, especially in the private sector.Certified as the partner of Sapporo Holdings’ “DX Human Resource Development for All Employees (78-day training) in Mar.,2022.・Training courses have been developed continuously based on the latest trends and customer needs. “SDGs”, “ CX”, “Diversity and inclusion”, “Envision the company’s future”, “Turnover prevention”, etc.Open Seminars・Expansion of DX training, especially the “Python Academy”, a programming training service.・Launched the “Energy Session” series for quick learning・Launched the “Value Pack”, which enables introduction of Open Seminars at 48,000 yen/month or more.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.21New services②マスター タイトルの書式設定IT Services・Started new features of Leaf “One Time Password” function and “Communication Board” function.・Launched “Leaf in order”, an unlimited streaming service of more than 300 latest e-learning courses.・Launched “Leaf EVA,” a personnel evaluation system that enables the introductionof evaluation system without any burden.・Strengthened the sales power of Leaf Lightning, which was launched in 2021.Other BusinessesLarge EnterpriseMedium BusinessSMB (Small Medium Business) ・Expanded the range of videos that correspond to legal revisions(e.g., Revision of Child Care and Family Care Leave Law, Power Harassment Prevention Law)・Launched engagement diagnostic service.・Started “Recruitment Accelerator“, the recruiting website production service.Low-cost packaged service compatible with major job search engines・Started the new and the override contract campaign for web advertising agency business in April, 2022.Value-added campaigns to improve web traffic and conversion ratesCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.22マスター タイトルの書式設定 Company Profile & Insource’s AdvantagesCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.23・Tokyo HeadquartersInsource Dokanyama Bldg. 4-19-12 Nishi Nippori, Arakawa-ku, TokyoCompany Profileマスター タイトルの書式設定・Company nameInsource Co., Ltd.・Capital800,623 thousand yen・Company Development・Representative DirectorNov. 2002 FoundedJul. 2016 Listed on TSE MothersJul. 2017 Listed on TSE First SectionApr. 2022 Moved to Prime MarketRepresentative Director, President and CEO Takayuki FunahashiJoined Sanwa Bank (now Mitsubishi UFJ Bank) in 1988. Had been in charge of the systems development department (management accounting, sales, marketing) and the personal finance department (new product development). After working in a distribution industry, established Insource Co., Ltd. and became its representative director.■Business Locations: 24※As of the end of Mar., 2022※Branches with Seminar Rooms.Hokkaido Branch ※Niigata OfficeUtsunomiya Office■Affiliated CompaniesMitemo Co., Ltd・e-Learning, Platform business・Production of Training Materials・Workshops/ Consulting・Regional Revitalization BusinessRashiku Corporation・Recruitment Support BusinessMIRAISOUZOU & COMPANY, Inc.・On-Site Training BusinessInsource Digital Academy Corporation・Training Business of HR with Digital Skills(AI/ Support for Machine Learning Applications, Support for Utilizing RPA, Improving OA/IT Skills and Business Skills)Insource Marketing Design Corporation・Website Promotion, Homepage Creation, System DevelopmentKyoto OfficeOsaka Branch※Kobe OfficeKyushu Branch※Chu-Shikoku Branch※Okayama OfficeNagoya Branch ※Shizuoka OfficeYokohama Branch※Seminar Rooms: 38 Classrooms in 7 CitiesOnline Training Booths: 112 BoothsCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.24Tohoku Branch※Tsuchiura Office・Tokyo Headquarter・Tokyo Headquarter Annex・Surugadai Office・Shibuya Office※・Hamamatsucho Office・Machida Office・IT Media Lab・Nihonbashi Office・Omori StudioBusiness of the Insource Groupマスター タイトルの書式設定■ High quality trainings make it possible to practice what you learned the next day.■ Digitalization of the training management allows us to provide more trainings with better contents.■ High level of customer satisfaction with:On-Site TrainingOffer On-Site Trainings tailored to organizations’ needs(1H Sales ratio: 47.1% ,FY20: 50.6%)Division of roles of trainers and content-creators by ITClientsMeet clients` needs promptly.Developing over 300 contents a yearTrainersSalesreps318164Content creators 175*As of the end of Mar., 2021Contents 95.8%／Trainers93.9%*As of the end of Mar. 2022Open Seminars(1H Sales ratio: 21.8%,FY20: 24.4%)Offer Open Seminars that from one person can attendSeminars are held online frequently and nationwide・Held both onsite (in 8 cities) and online86,777 attendees annually (No. of online attendees in 2Q: 90.2%) ・More than 3,000 types of courses, including those offered by business partners, have been provided and new courses will be introduced timely ・Up to 50% discount with “HRD Smart Pack”(our unique point service)・Used by both startups and large companies nationwideAnnual total number of trainings conducted/attendees15,127times484 thou. attendeesOut of the total number of trainings conducted online:7,912times243 thou. attendeesAnnual total number of trainings conducted/ No. of attendees6,987times 90 thou. peopleAmong them, the total number of trainings conducted online:*Apr, 2021-Mar., 20224,901times76 thou. people*Apr, 2021-Mar., 2022IT Services(1H Sales ratio: 15.2%,FY20 13.6%)Other Businesses(1H Sales ratio: 15.9%,FY20: 9.2%)■ Leaf (HR support system, LMS) ■ Stress Check Support Service※LMS(Learning Management System): The system required for managing e-Learning■e-Learning/Video production ■Supporting web promotion ■Consulting, Assessment Services Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.25Stakeholders of Insourceマスター タイトルの書式設定■Numerical comparison between 2016(listed on TSE Mothers) and todayNo. of Trainers 318200×1.6318End of Sep., 2016End of Mar., 2022In cooperationNo. of Clients 37,968 organizations*No. of clients who used our service from Jun., 2003to Mar., 2022No. of Employees 531Diverse in-house specialists279x1.9531End of Sep., 2016End of Mar., 2022Products/ServicesEnd of Sep. 2016End of Mar. 2022Sales RepresentativesContent CreatorsIT EngineersDesignersDigital MarketersAI/RPA Engineers83883419－－164175117203423FundsReturnsNo. of Shareholders3,6782,354×1.53,678End of Sep., 2016End of Mar., 202217,157x２37,968End of Sep., 2016End of Mar., 2022Sales composition of all business by size* On-Site Training, Open Seminars, IT Services, Other BusinessesLarge Enterprise(1,000 or more employees)Medium Business(500-999)SMB (Small Medium Business) (less than 499)FY15FY202Q FY2123.5%23.0%51.5%14.0%13.6%13.6%62.5%63.4%35.0%No. of Shares HeldEnd of Sep., 2016End of Mar., 2022Overseas InvestorsDomestic InvestorsDomestic CorporationsIndividual/Others4.7%9.4%45.3%40.6%23.9%23.2%33.9%19.0%Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.26Composition ratioマスター タイトルの書式設定■ Customers composition ratio by industryThe total number of customers who used our services from Apr., 2021 to Mar., 202213,110organizationsThe total number of customers who used our services from Jun., 2003 to Mar., 202237,968organizations■ Sales composition ratio by quarter■1Q ■2Q■3Q■4Q■Finance 3.9%■Electricity, water and gas 2.0%■Others 4.5%■Manufacturing■Transportation/Warehouse 3.4%■Educational Services/Academic institutions■Health/ Medical■Logistics/ Trading■Construction/Real estate4.9%5.5%5.5%8.6%■Information & Communication/IT Services22.3%16.1%■Services13.6%9.7%■Government/Public administrationsUnit: million yen% represents composition ratio & progress rateFY21 Progress rateFY20 Composition ratioFY19 Composition ratio24.6%2,19224.2%1,81431.7%1,62526.0%2,31724.8%1,85925.0%1,28024.9%1,87016.5%84326.1%1,95626.8%1,3708,900（Forecast）7,5015,119Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.27Advantages of Insourceマスター タイトルの書式設定Insource always keep evolving based on three strengths.Three strengthsBusiness prospectsValue providedMarket’s needsCustomer’s problems1. Career development trainingFull solutionBest measures and lowest costQuality improvementStandardized know-how2. IT serviceCapability ofcontents development Self-develop contents (training, web service)Three StrengthsIT Abilityto enables us to develop original systemSales force to acquire new 2,000 organizations ※annually3. Web marketing4. Global expansionTo make a society that all people can enjoy working and feel fulfilled.※ No. of new contracts of WEBinsourceCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.28① High Ability to develop various contents マスター タイトルの書式設定■Division of work by IT application■ A great selection of training contents■ Division of work in training business-Makes it possible to reduce cost and improve quality.MeetingCreating textbooks■ Classified by genre175 Content creators Standardization of work by IT117 IT engineers 164 Sales reps.318 TrainersHearingConducting trainingClientEnd of Mar., 2022An in-house agile team of 175 creators and 117 IT engineers develop various up-to-date contents in responsive to social changes and needs.■ No. of training classified by business typesOn-Site trainings3,623Open Seminars3,495Videos / e-Learning448End of Mar., 2022For managers318For students and prospective employees72For medium employees81For young employees99For new employees177DX・AI・RPA・IT training173New normal remote working training48Trainings by theme, industry or sector2,572End of Sep., 2021■ Example of web service-HR evaluation sheet (from excel format to online)-Assessment service (On-line assessment test)- Web promotion, homepage creatingCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.29② Strong sales force to expand business マスター タイトルの書式設定■Business flow of Insource -Expanding sales by using IT to utilize all data generated in the sales processSend e-newsletter/fax to organizations nationwideDigital marketers: 34Send 10 million emails a yearReceive inquiries viaour websiteVisit customers ( including Zoom meetings)Home pages: 21,009Offices: 24 Sales rep.: 164Our serviceAcquire members of WEBinsourceRapidly upload the webStandardize work by ITOpen seminarWeb designers: 20IT engineers: 117Develop new contents(trainings, videos etc.)Contents creators: 175Generate new needsOn-site trainingIT serviceOtherBusinessesEnd of Mar., 2022⇒Approximately 20,000 web pages created by 164 sales reps. and 34 digital marketers are cooperated for efficient sales activities.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.30③ IT Capability -Self-developed Systemマスター タイトルの書式設定■We have developed our system of efficient work since foundation and some service is sold to other companies.■We sell our services on EC sites.System/Web service is also available.■In-house system developmentCreate a database of all kinds of information to standardize operations.■Sold via EC sites including WEBinsource(membership site) and Video department Customer Info.(negotiation records)Training Info.(Date・fee)Attendee Info.(Concerns andattributes)Trainer Info.(Profiles)Content Info.(Textbook etc.)Questionnaire Info.(Trainingassessment)The system to manage customer info., training operations, and contents etc. was developed■Leaf , HR supporting system-New version, new featureEmployee training management andpersonnel evaluationVideo contentsUnlimited streamingPersonnel evaluationStress checkMultilingual subtitles for videosLeaf EnglishNEWCommunication board functionLeaf Lightning for Small and Medium Enterprises・Ideal for first-time users of organization.・Can be installed in as little as 3 days.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.31Workforce Diversity -Encourage the growthマスター タイトルの書式設定■Ratio of female employees in managerial positions: 36.0% Employment rate of people with disabilities: 2.96%■Acquired 2 stars in “Eruboshi” certification (Certification of Women’s Empowerment).Selected under the “2022 Certified Health & Productivity Management Outstanding Organizations Recognition Program”. No. of employees*2No. of managerial positionsForeign nationals※4Content CreatorsDigital MarketersTotal５３1１５８Female employees２９９56.3%５７36.0%３Seniors(aged over 60)２５ＬＧＢＴs４People with disabilitiesRatio of female employees in managerial positions:13.3% *1(Source: The Gender Equality Bureau of the Cabinet Office (2021))10Disability employment rate:2.96%*3・Legal employment rate: 2.3%・Actual employment rate: 2.20%(Source: “2021 Disability Persons’ Employment Status” released by the Ministry of Health, Labour and Welfare)Workforce by job function: Diverse specialists work at Insource１７５SalesRepresentatives １６４IT Engineers１１７３４AI /RPA Engineers２３Designers２０(As of the end of Mar, 2022)*1 Administrative and managerial workers include board members, managers or above, administrative civil servants.*2 Directors, auditors and corporate officers are excluded. *3 Non-consolidated (Insource only)*4 “Foreign nationals” refers to employees with foreign nationalities. This includes foreign nationals who have acquired Japanese citizenship. Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.32Human capital investment to enhance competitivenessマスター タイトルの書式設定■In-House HR Development Policy – Multi-skilled Resilient to Change・Build a structure that allows employees to maximize their own abilities through the thorough combination of system and people・Develop multi-skilled personnel that can adapt to changes through flexible organizational changes and transfers.・Develop new products and services and improve efficiency from different perspectives based on various experiences■Educational Policy -strengthen IT skills and cost consciousness・Conduct IT training for all employees, including new employees.・Implement education about “cost consciousness” and “productivity improvement” as common themes of trainings for different position. Company Basic EducationPosition-based TrainingCareer DevelopmentPractical Skills EducationIT HR Development TrainingEach employeeFY18FY19FY20Sales(thou. yen) ※120,32016,41021,371OfficerManagerDeputy ManagerSenior ChiefNew managerLeaderChief of StaffNew EmployeeStaffE-learning education-Harassment -Prevention-Information Security-Insider Trading Prevention-Copyright Law-Asset BuildingShareholding Plan-RS for Employees-Company Defined Contribution Pension PlanCommon skills training for different position-Cost consciousness-Time managementFundamental training for all employees based on the IT HR development system +Level-specific(I-IV) training based on their assigned tasksManagement in the Post-Corona EraBasic ManagementTeam ManagementBusiness skills (technical/conceptual/human)Business LiteracyUnderstanding the CompanyCommunicationCareer Design (20s-50s)+Second CareerOn-the-job training +Attend Open SeminarsWork skills PCIT SkillsSales Profit ※1（thou. yen）Training cost(yen)※2・3Trainingtime(hour)※4・54,7232,5146,85017,49817,19640,56316.51816※1 Calculated based on the average number of employees during the period※2 Employees can attend our Open Seminars for free. The total cost of training includes price of the On-site training when conducted with an external trainer , and Open Seminar’s price. ※3 Employees took fewer open seminars and more internal trainings due to Covid-19 pandemic, which resulted in more training time but lower training cost in FY19.※4 Total hours of training and e-learning courses (excluded workshops)※5 Employees took more DX related training of open seminars, which resulted in higher training cost but less training time in FY20.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.33マスター タイトルの書式設定 ESG Strategies and TopicsCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.34ESG + P (performance) –Solving social issues through our businessマスター タイトルの書式設定■Our mission is to help working people solve social issues.■Insource’s Group policy-We will continue to improve its performance (P) while being conscious of ESGMake everyone feel meaningful and fulfilled at work.Reduce environmental impactProvide training and resources for a diverse workforce (affordable and high quality)Improve the environment and build a sustainable structure for diverse people to be more activeBoost human capitalProvide training to build a revitalized societyEstablish healthy and transparent corporate governance■Received the second highest rating of AA in MSCI Rating・As of June, 2021 (the time Insource received), only 14 Japanese companies have received the highest AAA of MSCI ESG Ratings, and Insource has received the second highest rating of AA. ・The recognition represents that our training business, strong security measures and internal education to improve productivity were especially highly evaluated.*THE USE BY INSOURCE CO., LTD. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT,RECOMMENDATION, OR PROMOTION OF INSOURCE BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.35ESG Topics -In-house environmental activities マスター タイトルの書式設定■Endorsed by TCFD in February, 2021.■Established CO2 reduction committee, set targets and take effective measures(electricity saving, paper reduction).EnvironmentCO2 reduction committeeRepresentative Director,President and CEODirector, Managing Executive OfficerCEO OfficeCO2 reduction committeeGroup HR/General AffairsCO2 reduction plan1. CO2 reduction methods2.3. Create new contentsIn-house thorough implementation Sales OfficesContents DevelopmentDepartmentProvide information and training to customers, and create a comfortable working environmentCreate content related to CO2 reduction or efficiency improvementSales Promotion DepartmentPlan web contents,Spread information about the in-house activities and trainingsLong-term TargetCO2 emissions from electricity use 50%reduceReference year: FY19CO2 emissions From paper use50%reduceReference year: FY19If no action is takenIf no action is takenActual No.Actual No.■Launched “e-Textbook Service” for trainings in April 2022.~Target to reduce CO2 emissions by up to 5 tons per year* Abbreviation for The Task Force on Climate-related Financial Disclosures, established in 2015 by the Financial Stability Board (FSB) at the request of the G20. It assesses the financial impact of risks and opportunities from climate change on management and recommends disclosure of “Governance,” “Strategy,” “Risk Management,” and “Indicators and Targets.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.36ESG Topics -Support for local communities (welfare organizations)マスター タイトルの書式設定Social■Opened a new site, “mon champ”, to sell products from welfare organizations (October,2021)・Supporting the employment of people with disabilities through our web sales capabilities■Concluded an agreement with Arakawa Ward (Nov., 2021)~Support for single-parent families to become self-reliant and for women to advance in society・Employment support for single-parent familiesFor people who are considering a career change to clerical work.Content: PC skills, business etiquette, etc.Date: Held 4 times from Dec. 2021, and to be held occasionally.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.37ESG ～Support for period povertyマスター タイトルの書式設定■Start of a project to address period poverty (from February 2022)・Inability to purchase sanitary products due to economic reasons and lack of ・Lifetime costs are approximately ¥500,000 to ¥800,000 per person (Our estimation)■Period povertysocial understanding■Project Summary- Consolidate the power of companies to provide sustainable support.・Solicit for donation of sanitary products from 30,000 business partners ・Provide sanitary products to more than 1,000 municipalities and social welfare councils ・Goal: Provide donations to 50 regions in total in the first year (2022)・Donation amount: 300,000 yen per unit (1 year’s sanitary products for 200 people)Sponsor companies② Introduce local municipalities to companies that want to address social issues① Find municipalities and social welfare councils in need of sanitary products.Insource③ Payment of supporting expenses④Delivery of sanitary productsMunicipalities and social welfare councilsCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.38ESG Topics –Strengthening corporate governance systemマスター タイトルの書式設定Governance■Actively disclose non-financial information on a monthly basis■Newly developed training programs■No. of On-Site training conducted■No. of Open Seminars attendees■No. of WEBinsource subscribers■No. of Leaf monthly paying subscribers (organizations)■No. of organizations implementing Stress Check Support Service■Increased one outside director and one outside corporate auditor, with the approval at the general meeting of shareholdersEstablished voluntary Nomination and Compensation Committee (December 17, 2021)Nomination and Compensation Committee4 Directors（including 3 Outside Directors）DeliberateReportBoard of Directors8 Directors（including 3 Outside Directors）AuditBoard of Corporate Auditors4 Auditors（including 3 Outside Auditors）■ Adopted a restricted stock compensation plan for officers etc.■ April, 2022 Moved to the Prime MarketAll principles of the Corporate Governance Code have been implemented at a higher levelCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.39マスター タイトルの書式設定 Three-year Business Plan “Road to Next 2024”Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.40Three-year Business Plan “Road to Next 2024” –Financial Targetsマスター タイトルの書式設定■Consolidated Financial TargetsUnit: million yenFY21(Forecast)FY22(Target)FY23(Target)CAGRNet sales8,90010,80012,800+19.5%Operating profit2,6003,1303,710+15.6%Ordinary profit2,6003,1303,710+15.6%Net profit1,7702,1402,530+17.2%■How to achieve targets1. Our share of the career training market is about 2% now. We will expand our market share by increasing our sales force and continuously developing new attractive training contents.2. We will divide our customers into three segments (Large enterprise, Mid, and SMB) and build a sales structure that specializes in each customer segment. In addition, we will provide education services and IT services optimized for each segment to increase sales per customer and increase customers at the same time.3. The need for digitalization of HR routine work and web marketing is expected to continuously grow. We will develop services focused on customer convenience and expand non-educational services.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.41Three-year Business Plan “Road to Next 2024” -Changes in financial resultsマスター タイトルの書式設定32.1%Unit(million yen)29.2%29.0%29.0%12,800 10,800 15.3%7,501 8,900 16,00014,00010,0008,0006,0004,0002,0000Operating profit margin12,00023.2%Net sales5,608 5,119 Operating Profit1,303 784 2,404 2,600 3,130 3,710 FY18FY19FY20FY21(Forecast)FY22(Target)FY23(Target)Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.32.0%28.0%24.0%20.0%16.0%12.0%8.0%4.0%0.0%42Shareholder Return Policyマスター タイトルの書式設定■DPR(dividend payout ratio) target of about 40% according to business performance.■Dividend for FY21 is expected to be 7.7 times that of FY15 first listed.Unit(yen)41.5337.43EPS(Earnings per share)15.3610.187DPR7.782.2FY153.6FY164.8FY1719.8610.618.0 9.2 15.5 17.0 FY18FY19FY20FY21(Forecast)(Note) The Company conducted stock splits on May 1, 2018, September 1, 2019, and January 1, 2021. The amount of the fiscal year-end dividend reflected stock split.Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.43423732272217122-3Three-year Business Plan “Road to Next 2024” –Market sizeマスター タイトルの書式設定■Career training market –Still great potential for growth・Market size is 240 billion yen in 2021 and 340 billion yen in 2024※1,2,3・The market share of Insource is about 2%, and there is a lot of room for growth in the future.※1 Calculated based on the MHLW’s Basic Survey on HR Development (2020) and MIC’ Labor Force Survey.※2 Calculated based on the MHLW’s Basic Survey on HR Development(2009-2020), and the ratio of ※3 Re-calculated from the MIC’ Labor Force Survey based on employers with 30 or more employees, resulting outsourcing companies in 2020 was 49.7%.in changes to the market size from 2020 to 2024.6005004003002001000‐Expansion is expected■HR digitalization market・Market size is 200 billion yen in 2019 and 400 billion yen in 2024. ※4Leaf’s net sales for FY20 is 1 billion yen and there is a lot of roomfor growth.・HR digitalization is less advanced compared to accounting fields. It is expected that there will be growing demand for the improvement of work efficiency from mid-sized and small companies.※4 Calculated based on METI’s [2020 Basic Survey on Information and Communication Industry], May 28, 2021.4002000■Web marketing market・Market size is 2.4 trillion yen in 2019※5 and is to expand to -Potential for new entrants3 trillion yen in 2024・It is expected that there will be increasing needs for website or web marketing especially for mid-sized and small companies.・We will enter the market with our know-how based on the successful experience of web-marketing in our businesses.※5 Calculated based on METI’s [2020 Basic Survey on Information and Communication Industry], May 28, 2021.Unit(billion yen)Training market size forecast480340340240155DX market size 10 bill.yen2018201920202021(Forecast)2024（Forecast）HR digitalization market forecast400180200201820192024(Forecast)Web marketing market forecastUnit(trillion yen)32.41.93210Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.201820192024(Forecast)44Three-year Business Plan “Road to Next 2024” -Strategyマスター タイトルの書式設定■Provide best service for different customer with optimal sales approachCustomer SegmentationSales strategyTrainingIT serviceLarge (5,000 or more people) HR Dept.Sales destination+Other Dept.Second-tier large(1,000-4,999 people)Medium (500-999 people)Large Enterprise52.6% ※Mid-Business13.6% ※Expand overall Sales including but not limited to HR Dept.-New trainings(DX、SDGs etc.)-Support for solving departmental issues-Compliance trainingLeaf(Multi-function, customization)Manager/Staff of HR DeptExpand each sales volume by strengthening proposals.-Comprehensive solution for company-Support for evaluation systemLeafLightning(LMS functional specialization)On-line evaluation sheet (Optional)SMB (Small Medium Business)Second-tier medium (100-499 people)33.7% ※Small (-99 people)CEO/Manageme-nt teamExpand sales by not only training service but also business solution.-Solution for business issues, management, communication, compliance trainingLeaf Management(HR routine work of SMBs)※Sales composition ratio for FY20■Sales strategy・Build up professional sales team specialized for each customer segment and promote sales activities tailored to each segment’s characteristics.・Increase each sales volume by strengthening proposals to meet demands of each customer segment. ■Service development strategy・Strengthen services tailored to each customer segment to meet diversified training needs.・Provide large or second-tier large companies with solutions for departmental issues in addition to DX,SDGs training.managerial issues.・Promote sales to CEO/ management teams of SMBs to lessen the burden of routine HR work and solve Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.45OtherbusinessSupport for video trainingSupport for marketing, recruitme-nt, DX etc.Three-year Business Plan “Road to Next 2024” -Business expansion policyマスター タイトルの書式設定■Enter Web marketing market ‐Solving customers’ problems by utilizing our own knowledgeWe have grown through our education businessNet salesUnit(million yen)7,501Our strengths1.Web marketing skills-Have our own know-how2,915FY15FY20On-Site trainingOpen SeminarsIT serviceOther businesses2.Strong sales system-Have realized sustainable growth through people and IT3.Strong customer base-Have relationships with 37,000 organizationsNeeds of customer (Especially small/medium sized companies)i Performance/Sales Improvementii Turnover prevention/RecruitmentOur next businessiii HR work reduction/efficiency improvementExpanding with Leafⅳ Solving issues of organizationsOur main businessby trainingEntering Web marketing market-Growing fields compatible with customers’ needsWeb marketing businessWe own know-how on web marketing.Market is growing.Price of service is stable.Proactive investmentSecuring employeesService developmentM&AOther BusinessesIT ServiceTraining business・On-Site training・Open SeminarsExpandingcontinuouslyCopyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.46Expanding Web marketing business マスター タイトルの書式設定■Total support for building a company-wide sales system, mainly using WebWe will provide our know-how, as we have grown by 20% per year using web marketing, and help our customers expand their business performance by providing organizational reform and building a sales system.■Service – Web Marketing PDCA Support■Sales training and consulting – Building company-wide sales system・Sales training The key to success in web marketing is to build a company-wide sales system that includes people other than sales representatives and we will provide sales education to people such as inside-sales. ・Consulting servicesSupport for reform of company-wide sales organizational structure, sales meetings, daily management, etc.Enhance product and service pages Purchasing through web and acquire inquiriesRaising recognition with✉・fax・advertisement■Web Marketing PDCA cycle Run the PDCA cycleCreate web pages and implement SEO measures■Providing sales ASP (Remote Plants) – Automating sales activities・Automating Sales activitiesOffer Remote Plants which can automate e-mail, fax, and direct mail to customers in addition to managing customer activities such as phone calls and visits.・Database ReconstructionThe key to Web marketing is the maintenance of a customer database. We will support for integrate scattered customer data.Information that users want(1) Product/service overview, (2) Price/price list,(3) Results/case studies■Sales automation system(follow-up and purchase model)②Follow-up after recognition③Customer needs■Web Improvement Support – Sales Optimization + SEO + Internet AdvertisingRecognition rate from customer①Automatic approach・Web ImprovementSupport for improving the web from a company brochure to a web optimized for sales.・Support for attracting customers through the web (SEO/Internet advertising)Support for attracting customers by implementing low-cost SEO and optimal online advertising.※Continued follow-up leads to sales.Time47Copyright © Insource Co., Ltd. All rights reserved. 「insource」「Leaf」「WEBinsource」「Douga-Hyakkaten」are registered trademarks of Insource Inc.