ウィルグループ（6089） – [Delayed]Supplementary Materials for the Fiscal Year Ended March 31, 2022

Supplementary Materials for the Fiscal Year Ended March 31, 2022WILL GROUP, INC. (Prime Market / Stock code: 6089)May 11, 2022ContentsⅠ. FY3/22 ResultsⅡ. FY3/23 Earnings and Dividend ForecastsRegarding the accounting method for reportable business segments, we had previously adopted a method of reflecting certain adjustments under Japanese GAAP. After re-examining segment information to be reviewed regularly, the Group decided to align the accounting method with the accounting policies of the Group from the beginning of the first quarter of the fiscal yearended March 31, 2022. Accordingly, reportable segment information for the previous corresponding quarter has been restated.2Ⅰ. FY3/22 Results3FY3/22 ResultsDespite the absence of ¥0.95 billion in government subsidies and other one-time items recorded in the previous fiscal year, the permanent placement of the Overseas WORK Business performed strongly in FY3/22. As a result, we exceeded our Medium-Term Management Plan targets for operating profit (¥5.35 billion) and operating margin (4.0%).(Billions of yen)RevenueGross profit(Gross margin)Operating profit(Operating margin)Profit before taxProfit attributable to owners of parentEBITDA(Operating profit + Depreciation and amortization)FY3/21FY3/22FY3/22(Forecast as of Feb. 8, 2022)Vs. FY3/21Vs. FY3/22 ForecastChange% changeChange% change118.2424.05（20.3%）4.03（3.4%）3.782.366.25130.0028.39（21.8％）5.00（3.8％）131.0828.76（21.9％）5.47（4.2％）＋12.83＋10.9%＋1.08＋0.8％＋4.70（＋1.6pt）＋1.44（＋0.8pt）＋19.6%＋35.8%＋0.37（＋0.1pt）＋0.47（＋0.3pt）＋1.3％＋9.4％5.002.987.025.293.287.55＋1.50＋39.7%＋0.29＋5.9%＋0.92＋39.0%＋0.30＋10.3％＋1.29＋20.7%＋0.53＋7.6％Number of employees: 5,363(+518 from the end of FY3/21)4Consolidated Revenue(Billions of yen)25.26.223.15.718.917.429.327.4 27.36.97.19.031.3 31.0 30.129.529.9 30.128.49.28.98.78.29.49.39.633.633.431.5 32.311.412.212.712.3Overseas20.520.120.222.122.021.220.120.020.520.420.120.020.921.11QFY3/192QFY3/193QFY3/194QFY3/191QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/22*The revenue is based on adjusted figure that excludes overseas subsidy income. 4Q FY3/22 revenue was -¥0.02 billion above 3Q FY3/22(The effects of foreign exchange rate: +¥0.0 billion)DomesticOverseas remained firm. With the domestic business also on a recovery trend, we recorded the highest revenue since COVID-19 began to spread (1Q FY3/21-).5Consolidated Gross Margin and SG&A Expense Ratio(Billions of yen)21.2%20.7%20.9%20.7%Segment breakdown19.9%20.0%19.6%20.2%23.3%20.5%20.8%19.2%22.3%20.2%22.1%20.6%20.1%17.4%20.8%18.0%20.5%19.9%20.7%20.4%6.25.16.46.46.25.45.35.45.75.05.94.95.85.16.05.421.7%22.0%21.5%22.3%（Consolidated）Gross profit margin*223.6%23.8%21.0%21.0%22.7%21.7%6.85.87.17.25.65.7（Overseas WORK Business）Gross profit margin（Domestic WORK Business）Gross profit margin*1Gross profit*224.7%21.8%7.46.3Thanks to Perm SHIFT, the consolidated gross margin hit a record high in 4Q.Upfront investment4Q plan ¥0.25 billion4Q result ¥0.25 billionSG&A expenses*21Q-4Q plan ¥1.01 billion1Q-4Q result ¥1.01 billion1QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/22*1 Intersegment consolidation adjustments are not included. The amounts for FY3/20 are based on the previous accounting policy. *2 Gross profit and SG&A expenses are based on adjusted figure that excludes overseas subsidy income.6FY3/22 Revenue: Breakdown of Year-on-Year Changes(Billions of yen)＋11.82＋0.32131.08118.24＋0.67Higher permanent placement revenue (+¥4.0 billion), higher temporary staffing (+¥3.0 billion), the effects of foreign exchange rate (+¥4.8 billion)FY3/21Domestic WORK BusinessOverseas WORK BusinessOthersFY3/227FY3/22 Operating Profit: Breakdown of Year-on-Year ChangesOne-time items＋2.07*0.08＋0.07＋0.28One-time items5.470.08Decrease mainly due to fixed cost review(Billions of yen)4.030.953.08One-time items-0.03*While achieving ¥0.9 billion in profit increases from sales support, call center, factory, and HR support for startups sectors, upfront investments (¥1 billion) for strategic growth businesses.Higher permanent placement revenue. ¥0.08 billion in subsidy income was recorded.FY3/21Domestic WORK BusinessOverseas WORK BusinessOthersCorporate expensesFY3/22*Year-on-year change excludes ¥0.95 billion for one-time items in FY3/21 results (Domestic WORK Business: ¥0.28 billion, Overseas WORK Business: ¥0.67 billion).If one-time items were included in FY3/21 results for the comparison with FY3/22 results, the year-on-year change would be Domestic WORK Business: ¥-0.31 billion, Overseas WORK Business: ¥+1.4 billion.5.398Domestic WORK Business-Revenue and segment profit (Billions of yen)-80.080.7Revenue6.0%4.75.5%4.4Segment profit to net salesSegment profit(Billions of yen)ForecastFY3/22Vs. Forecast% changeFY3/21Vs. FY3/21% changeRevenue81.0280.72-0.4％80.05 ＋0.8％Segment profit4.504.44-1.3％4.76-6.6％-Topics-➣ Implemented ¥1.01 billion in upfront investment in permanent placement for care support, construction management engineers, and HR support for startups sectors.➣ In 4Q, the number of workers on assignments rose in all sectors vs. 3Q FY3/22.FY3/21FY3/22-Number of workers on assignments (persons)-445 4,491 476 4,815 508 4,880 10,172 10,105 10,144 5,472 5,861 5,787 4,655 4,730 4,778 547 5,429 9,342 5,834 4,389 550 5,226 546 5,188 576 5,169 613 5,226 729 5,152 775 5,319 5,341 Care supportConstruction management engineers+79Vs. 3Q FY3/22854 8,015 8,170 7,955 7,495 6,550 6,128 6,394 Factory outsourcing5,259 3,673 5,219 5,197 3,531 3,575 5,235 3,697 5,082 3,347 5,208 5,315 Call center outsourcing 3,383 3,400 Sales outsourcing+22Vs. 3Q FY3/22+266Vs. 3Q FY3/22+107Vs. 3Q FY3/22+17Vs. 3Q FY3/22690 5,112 6,738 5,127 3,481 1QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/229Domestic WORK Business (Business sector sales)Telecommunications, call center, care support/nursery schools and HR support for startups sectors performed well.0.61.10.20.32.82.83.00.40.92.61.60.73.2FactoryCall center lSaes support0.41.20.20.33.03.03.10.40.82.92.70.73.00.71.20.20.33.13.03.10.50.92.92.10.72.90.61.30.20.43.22.82.90.50.82.92.00.72.70.51.30.30.33.32.52.90.60.82.91.30.22.90.61.30.30.33.32.52.70.60.72.91.40.33.00.91.30.30.33.32.62.60.60.72.91.50.33.00.71.40.30.43.32.52.40.60.72.91.70.33.10.61.30.30.53.32.42.30.60.73.01.30.33.20.61.40.40.63.42.42.20.60.63.01.20.33.20.81.50.40.53.52.42.20.70.63.01.30.33.2(Billions of yen)OthersConstruction management engineersIT engineersHR support for startups Care support/ nursery schoolsFactory except foodFood factoryFinanceOfficeCall center, etc.Other sales supportApparelTelecommunications0.61.60.40.73.42.22.20.70.63.01.60.33.31QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/2210Domestic WORK Business (Sales and operating profit by sector)In the field of human resources concerning construction management engineers, FY3/22 will be a period of upfront investment (increase in personnel and recruiting costs).-Sales by sector (Billions of yen)–Operating profit by sector (Billions of yen)-21.70.71.20.33.021.60.81.20.33.121.00.71.30.43.26.16.15.74.14.34.219.90.81.10.32.85.83.919.70.81.30.319.80.81.30.33.33.320.31.21.30.33.320.119.81.01.40.43.31.01.30.53.319.71.01.40.63.420.520.61.11.50.53.51.01.60.73.4OthersConstruction management engineersHR support for startups Care support/ nursery5.45.25.24.84.74.64.64.4Factory outsourcing4.24.24.24.24.24.24.34.3Call center outsourcing 6.45.45.85.64.54.74.85.14.84.64.95.3Sales outsourcing1.40.10.10.10.10.41.30.00.10.10.10.30.30.21.40.10.00.10.10.30.30.51.20.10.00.10.10.30.20.41.10.00.10.00.20.30.30.31.30.20.00.10.10.30.31.10.10.10.10.40.31.00.20.10.21.00.10.10.00.20.30.30.50.50.50.40.40.40.40.5-0.0-0.0-0.0-0.1-0.1-0.1-0.21.30.10.10.10.30.31.20.10.20.00.30.31.10.10.20.10.30.30.3OthersHR support for startups Care support/ nurseryFactory outsourcingCall center outsourcing Sales outsourcingConstruction management engineers1QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/221QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/22*Intra-segment consolidation adjustments are not included.11Overseas WORK Business-Revenue and segment profit (Billions of yen)-(Billions of yen)ForecastFY3/22Vs. Forecast% changeFY3/21Vs. FY3/21% change48.7 6.9%3.3Revenue47.3948.74＋2.8%36.92 ＋32.0%Segment profit2.853.34 ＋17.3%1.94 ＋72.4%36.9 5.3%1.9RevenueSegment profit to net salesSegment profit-Topics-➣Both Australia and Singapore enforced tighter restrictions to curb the spread of COVID-19. However, the demand for human resources remained solid, which contributed to a significant increase in permanent placement sales.FY3/21FY3/22-Major components of changes in segment profit (Billions of yen)-FY3/211.941.49Foreign exchange impact＋0.31 Increased sales ofpermanent placementIncrease in temporarystaffing gross profitIncrease in SG & AexpensesSubsidy income decrease-1.91-0.58FY3/2233.42.47＋3.02＋0.57□Forex sensitivityInitially assumed4Q FY3/22Results4Q FY3/21ResultsChange for ¥1 difference/yRevenueProfitAUDSGD¥83¥82¥83¥83¥76¥78¥460 mln¥110 mln¥30 mln¥10 mln12Overseas WORK Business (Sales by contract type, sector operating profit)Permanent placement revenue continued to grow rapidly. Even compared to pre-COVID-19 conditions in FY3/20, there has been a solid increase in the base.-Sales by contract type (Billions of yen)–Operating profit by sector (Billions of yen)-12.21.912.712.31.82.011.49.61.79.11.29.21.19.01.28.78.41.20.7Permanent placement9.40.99.31.01.17.98.27.77.67.88.68.48.5Temporary staffing10.410.910.39.70.90.80.80.00.90.90.80.70.10.70.4Subsidy income0.4Businessearnings0.30.30.40.30.50.40.40.30.20.50.20.40.10.40.10.40.30.41Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22FY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/2213Business Portfolio Changes in Japan and OverseasBoth the Domestic WORK Business and the Overseas WORK Business posted record high gross margin due to the promotion of Perm SHIFT.-Domestic WORK Business Gross profit by Temp / Perm*(Billions of yen)–Overseas WORK Business Gross profit by Temp / Perm (Billions of yen)-20.1%20.8% 20.5% 20.7% 21.0% 21.0%21.7% 21.8% 21.5%（Plan）Gross margin19.9%20.4%17.4%18.0%2 2 2 2 2 2 2 2 2 Perm（Plan）24.7%23.5% 23.8%22.7%22.5%Gross margin2 2 2 2 2 2 2 2 2 Temp1Q2Q3Q4Q1Q2Q3Q4Q4QFY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22FY3/22*Intra-segment consolidation adjustments are not included.Gross profit and gross margin are based on adjusted figure that excludes overseas subsidy income.1 1 1 1 1 1 1 1 2 1 2 2 2 1 1 1 1 1 PermTemp1Q2Q3Q4Q1Q2Q3Q4Q4QFY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22FY3/2214Others-Revenue and segment profit (Billions of yen)-1.31.6FY3/21-0.4FY3/22-0.3-Other business activities-M&AInvestment funds (HRTech)OrganicVisamaneHourmane（Billions of yen）ForecastFY3/22Vs. Forecast% changeFY3/21Vs. FY3/21% changeRevenueRevenue1.571.60＋1.9%1.27+25.7%Segment profitSegment profit-0.34-0.34–0.41–Topics-➣Continued upfront investment in the exploratory domain (inbound services)15Financial Indicators2.20.80.71.91.10.91.81.00.81.70.80.7The ratio of equity attributable to owners of parent to total assets at the end of 4Q was 21.8%, which exceeded the Medium-Term Management Plan target of 20%. Other financial indicators have also been on the improvement trend.1.60.70.41.40.60.31.30.60.31.20.61.10.50.10.11.10.50.21.00.50.21.00.50.90.4-0.1-0.117.0%17.6%15.6%19.1%24.6%22.1%21.8%Adjusted net debt to equity ratio(Interest-bearing debt – Cash and deposits) /Adjusted equity attributable to owners of parent*（times）EBITDAAdjusted interest-bearing debt to EBITDA ratioInterest-bearing debt (excluding short-term borrowings) / Forecast EBITDARatio of goodwill to adjusted equity attributable to owners of parentGoodwill outstanding /Adjusted equity attributable to owners of parentRatio of equity attributable to owners of parent169.7%9.5%6.5%8.0%11.7%12.9%4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY3/19FY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22Consolidated Balance Sheet（Billions of yen）March 31, 2021 March 31, 2022ChangeMajor components of changes (Billions of yen)Current assetsNon-current assets Total assetsCurrent liabilitiesNon-current liabilitiesTotal liabilitiesTotal equityTotal liabilities and equity23.5723.1946.7624.7911.9436.7310.0246.7627.2825.0652.3529.369.8639.2213.1252.35+3.71+1.87+5.58+4.57-2.07+2.49+3.09+5.58Ratio of equity attributable to owners of parent to total assets17.6%21.8%＋4.2pt● Total assets ・ Cash and cash equivalents・ Trade and other receivables ・ Other financial assets (current) ・ Property, plant and equipment・ Right-of-use assets・ Goodwill・ Deferred tax assets● Total liabilities・ Trade and other payables・ Borrowings (current) ・ Deferred tax assets (current) ・ Borrowings (non-current) ・ Deferred tax assets (non-current) ● Total equity・ Capital surplus ・ Other components of equity・ Retained earnings+1.5+2.7-0.5+0.1+1+0.3+0.1+1.5+0.9+1.6-1.7-0.2-0.4+0.8+2.717FY3/21FY3/22Free Cash Flows （Billions of yen）Consolidated Statement of Cash Flows（Billions of yen）Profit before taxDepreciation and amortizationIncome taxes paidOtherNet cash provided by (used in) operating activitiesPurchase and sales of property, plant and equipment, etc.Purchase and sales of shares of subsidiariesOtherNet cash provided by (used in) investing activitiesNet increase (decrease) in interest-bearing debtPurchase and sales of shares of subsidiaries not resulting in change in scope of consolidationDividends paidGovernment subsidy incomeOtherNet cash provided by (used in) financing activitiesEffect of exchange rate changesNet increase (decrease) in cash and cash equivalentsCash and cash equivalents at end of periodFree cash flows (Operating activities + Investing activities)3.72.2-1.90.24.3-0.50.00.1-0.4-2.2-0.7-0.51.2-0.3-2.60.21.57.43.85.22.0-1.1-1.94.3-0.70.00.4-0.3-2.1-0.6-0.50.30.0-2.90.41.58.94.03.84.0FY3/21FY3/2218Ⅱ. FY3/23 Earnings and Dividend Forecasts19FY3/23 Consolidated Earnings ForecastsWe aim to exceed the Medium-Term Management Plan targets and set new records for both revenue and operating profit.（Billions of yen）■ At time of Medium-Term ■ FY3/23 earnings forecastsManagement Plan announcement（FY3/20-FY3/23）（FY3/20-FY3/23）RevenueCAGR6%RevenueCAGR9%Gross profitCAGR12%Gross profitCAGR15%Operating profit CAGR 15%Operating profit CAGR 18%J-GAAP133.5140.0131.0Revenue5.45.35.6Operating profit FY3/22Medium-Term Management PlanForecastFY3/23IFRS20FY3/23 Forecast（Billions of yen）RevenueDomestic WORK BusinessOverseas WORK BusinessOthersGross profit(Gross margin)Operating profit(Operating margin)Domestic WORK BusinessOverseas WORK BusinessOthersAdjustmentsEBITDAExchange rateAUDSGDProfit attributable to owners of parentRevenue, gross profit, and operating profit are all expected to surpass Medium-Term Management Plan targets.Vs. FY3/22Vs. FY3/22（Medium-Term Management Plan）FY3/22FY3/23(Medium-Term Management Plan)FY3/23(Forecast)Change% changeChange% change131.0880.7248.741.6028.76(21.9%)5.47(4.2%)4.443.34-0.34-1.983.287.55133.5094.9836.112.4030.16(22.6%)5.35(4.0%)6.081.64-0.00-2.372.907.18140.0088.9849.031.9831.58(22.6%)5.60(4.0%)5.692.58-0.19-2.483.337.67＋8.92＋8.26＋0.28＋0.37＋2.81(＋0.6pt)＋0.12(-0.2pt)＋1.24-0.76＋0.14-0.50＋0.04＋0.11＋6.8%＋10.2%＋0.6%＋23.2%＋9.8%-＋2.3%-＋28.1%-22.8%–＋1.3%＋1.5%＋6.50-5.99＋12.91-0.42＋1.42(0.0pt)＋0.25(0.0pt)-0.38＋0.94-0.19-0.12＋0.43＋0.49Change for ¥1 difference/yRevenueProfit＋4.9%-6.3%＋35.8%-17.6%＋4.7%-＋4.7%(-0.2%)-6.3%＋57.9%–＋14.8%＋6.8%¥30 mln¥10 mln¥83¥83¥68¥72¥78¥79¥460 mln¥110 mln21FY3/23 Consolidated 1H ForecastIn the first half, we project an increase in upfront investment in the Domestic WORK Business, and a slowing of demand in the permanent placement segment of the Overseas WORK Business.FY3/22FY3/23(Forecast)Vs. FY3/22Change% change（Billions of yen）RevenueDomestic WORK BusinessOverseas WORK BusinessOthersGross profit(Gross margin)Operating profit(Operating margin)Domestic WORK BusinessOverseas WORK BusinessOthersAdjustmentsEBITDAExchange rateAUDSGDProfit attributable to owners of parent63.9139.5923.700.6014.03(22.0%)2.68(4.2%)2.161.67-0.20-0.941.693.65¥83¥8267.0042.6623.420.9114.93(22.3%)2.25(3.4%)2.391.18-0.10-1.221.253.27＋3.08＋3.07-0.28＋0.30＋0.89(＋0.3pt)-0.43(-0.8pt)＋0.23-0.49＋0.10-0.27-0.44-0.37＋4.8%＋7.8%-1.2%＋49.5%＋6.4%–16.2%-＋10.6%-29.5%—26.4%-10.3%¥30 mln¥10 mlnChange for ¥1 difference/yRevenueProfit¥78¥79¥460 mln¥110 mln22Comparison between Medium-Term Management Plan Targets and FY3/23 Forecasts¥1.3 billion in upfront investment has been scheduled for FY3/23, in line with the Medium-Term Management Plan.With the exception (at this point in time) of ROIC, the Medium-Term Management Plan financial targets look likely to be achieved. We will aim to achieve ROIC by reviewing, etc. our invested capital.（Billions of yen）KPIFY3/20FY3/21FY3/22FY3/23(Medium-term Management Plan)(Results)(Medium-term Management Plan)(Forecast)131.0(＋11%)133.5(＋10%)Revenue(change)Gross marginSG&A expenses(up-front investments included)Operating profit (Operating margin)ROIC121.9(＋18%)20.8%21.44.14(3.4%)14%118.2(-3%)20.3%20.44.03(3.4%)14%Ratio of equity attributable to owners of parent to total assets11.7%17.7%Profitability indicatorsFinancial indicators121.0(＋2%)21.2%22.2(1.3)3.40(2.8%)12%19%Total payout ratio25.1%22.9%30.6%21.9%23.5(1.0)5.47(4.2%)17.9%21.8%23.6%22.6%24.8(1.3)5.35(4.0%)20%22%30.0%140.0(＋7%)22.6%25.9(1.3)5.60(4.0%)18.6%24.8%30.2%23Business Portfolio in the Medium-Term Management PlanThere have been some delays in the care support domain, but on the whole progress has been steady.Exploratory domainSearch for areas for next strategic investmentsMarket growth rateHRTechIT紹介Foreign workersSIITpersonnelHR support for startups RevenueFY3/22：2.3 Billions of yenFY3/23：2.8 Billions of yen（＋19％）Care supportRevenueFY3/22：13.6 Billions of yenFY3/23：14.7 Billions of yen（＋8％）Strategic investment domainPriority is top line growthAssessment and decision domainDecision to stop or continue businessesPermanent placement of athletesReal estateServices using videosTermination domainConsider termination or collaboration with another company by using a business carve-outConstruction management engineersRevenueFY3/22：5.7 Billions of yenFY3/23：8.3 Billions of yen （＋43％）Domestic WORK Business(Concentrated business)Degree of achieving target operating marginOverseas WORKOperating marginFY3/22：6.9%FY3/23：5.3％Temporary staffing of ALTCapital alliance with RareJob, Inc. in Sep. 2021FactoryCall centerSalesOperating marginFY3/22：6.9%FY3/23：7.6％Operating marginFY3/22：6.9%FY3/23：7.1％Operating margin FY3/22：8.3%FY3/23：9.1％Domestic WORK Business(Stable earnings businesses)Profit maximization domainImprove productivity and the operating margin24FY3/23 Forecasts (Segments and Sectors)SegmentsSectorsSales supportDomestic WORK BusinessCall center FactoryCare supportHR support for startups Construction management engineersOverseas WORK BusinessNet salesOperating profitNet salesOperating profitNet salesOperating profitNet salesOperating profitNet salesOperating profitNet salesOperating profitNet salesOperating profitFY3/22FY/23（Forecast）VS. 3/22ChangeAssumptions Used for the FY3/22 Forecast（Billions of yen）19.511.6117.041.1718.311.2513.670.292.340.605.78-0.5548.743.3420.661.8718.421.3019.111.4514.760.712.800.578.30-0.4349.032.58＋1.14 Expansion in apparel and sales support sectors.＋0.26Increase in the number of full-time employees on-site to reduce outsourcing expenses and improve gross margin.＋1.38Increase in outsourcing services income resulting from increase in outsourcing demand.＋0.13Improvement in gross margin resulting from the increase in outsourcing services ratio.＋0.80Increase in temporary staffing, permanent placement of foreigners after reopening of borders, and the number of foreign workers under consigned management.＋0.19 Increase in permanent placement revenue and consigned management income.＋1.09Increase in our focus area of placing people in temporary positions who intend to subsequently switch to permanent positions, and in temporary staffing.＋0.41 Increase in permanent placement revenue.＋0.45 Number of recruitment projects remains at a high level and is growing steadily.-0.03Taking into account the number of recruitment projects, upfront expenses for hiring consultants, etc. rise.＋2.51 Increase in new graduates and those without experience to lead to a rise in the number of people on assignments.＋0.12Despite increases in recruitment fees and in upfront expenses for sales staff, etc., gross profit rises.＋0.28 Compared to the previous year, demand for permanent placement likely to slow.-0.76 Decrease in permanent placement revenue, and increase in recruitment/personnel expenses.25(Domestic/Overseas) Portfolio Shift PlanIn the Overseas WORK Business, demand for permanent placement is likely to slow compared to the previous year. In the Domestic WORK Business, all sectors are forecast to improve. Accordingly, consolidated gross margin is forecast to be unchanged year on year.-Domestic WORK Business Gross profit by Temp / Perm*(Billions of yen)–Overseas WORK Business Gross profit by Temp / Perm (Billions of yen)-20.8% 20.5% 20.7% 21.0% 21.0%20.1%21.7% 21.8% 21.8%22.4% 22.2%Gross margin23.2%23.5% 23.8%24.7%22.7%22.9% 22.7% 23.0% 23.3%Gross margin19.9%20.4%18.0%17.4%2 2 2 2 2 2 2 2 2 3 3 3 Perm2 2 2 2 2 2 2 2 2 2 2 2 Temp1 1 1 1 1 1 1 1 2 1 2 2 2 2 2 2 2 Perm1 1 1 1 1 1 1 Temp1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22FY3/23FY3/23FY3/23FY3/23FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22FY3/23FY3/23FY3/23FY3/23PlanPlan*Intra-segment consolidation adjustments are not included.Gross profit and gross margin are based on adjusted figure that excludes overseas subsidy income.26Progress in the Digital ShiftUse online and automated processes to improve efficiencyUse centralized data management to improve efficiencyUse telework and online interviews to improve efficiencyMerge consolidated subsidiaries to improve efficiencyProgressImproved the functionality of the official “WILLOF app” for temporary staff. Approx. 40,000 cumulative downloads, with a usage rate of 96% amongst those employed (as of March 31, 2022).Automation of attendance sheet entry and administrative procedures for issuing certificates to promote automated operations.Working on initiatives to standardize systems across domestic subsidiaries, centralize data, and reduce IT costs.Launch of “ZaITact” service for call center work at home. In the call center domain, we are also seeing an increase in projects for work at home.In July 2021, we integrated the core subsidiary of WILLOF FACTORY, Inc. with WILLOF WORK, Inc. We centralized back-office operations for improved efficiency.27FY3/23 Dividend ForecastTotal payout ratio based on dividend forecast for FY3/23 relative to the earnings forecasts at the start of the fiscal year: 30%.Year-end dividendTotal payout ratioFY3/22¥34 per share23.6％FY3/23Revised forecast¥44 per share30.2％■Dividend per share and total payout ratio25.7%25.1%22.9%23.6%30.2%Total payout ratioDividend per share¥18 FY3/19¥23 ¥24 ¥34 ¥44 FY3/20FY3/21FY3/22FY3/23（forecast）28Appendix29Overseas (Australia, Singapore) Macro EnvironmentEconomic indicators■Real GDP growth rate (YoY change)*Source: Australian Bureau of Statistics■Unemployment rate*Source: Australian Bureau of StatisticsMarket conditions for WILL GROUPIn 4Q, the decline in COVID-19 infections in Australia and Singapore led to an easing of restrictions on entering the countries, and the start of a full-fledged resumption in economic activity. There are concerns about the softening of demand abroad caused by the Russia/Ukraine situation, and the surge in energy prices, but demand for human resources to remain firm, supported by domestic demand.Despite a slowing in the rebound in permanent placement from the pre-COVID-19 era, it remains higher than pre-COVID-19 levels. Demand for temporary staffing related to government, IT, finance, and legal, is stable and not susceptible to fluctuations in the economy, so should be firm.420-2-4-6-820100-10-20-30-40-5010505432101Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q2018201820182018201920192019201920202020202020202021202120212021Dec-19Feb-20Apr-20Jun-20Aug-20Oct-20Dec-20Feb-21Apr-21Jun-21Aug-21Oct-21Dec-21Feb-22■Real GDP growth rate (YoY change)*Source: Singapore Department of Statistics■Unemployment rate*Source: Singapore Department of Statistics1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q20182018201820182019201920192019202020202020202020212021202120211Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q201820182018201820192019201920192020202020202020202120212021202130No Risk of Impairment LossesThere is currently no expectation of impairment risk.For WILLOF CONSTRUCTION, FY3/22 and FY3/23 are periods of upfront investment in preparation for future profit growth.(Billions of yen)Primary locationBusiness activitiesFY3/21FY3/22YoY changeMetropolitan areas and TohokuSingaporeBrisbaneMelbourneConstruction management engineer temporary staffing and permanent placements mainly in the Tohoku region of Japan.A large number of highly skilled people are registered for assignments. Strong position in the market for temporary staffing of engineers for large building and civil engineering projects.Providing permanent placement and consulting services focused on HR primarily in Singapore, through wholly-owned subsidiaries in Hong Kong, Japan, U.S., China, Australia and UK.Providing temporary staffing and permanent placement services to government agencies and major corporations in Australia.Providing temporary staffing and permanent placement services for office work and call center operations to agencies and companies in various sectors such as government, telecommunications, resources and appliance manufacturing in Australia.Start of consolidationsince (WILL GROUP ownership)Investment*12018/6(100%)2019/1(76%)2019/4(90%)2018/1(100%)2.582.522.591.65*2SalesProfit*3SalesProfit*3SalesProfit*3SalesProfit*35.270.031.260.377.160.705.78-0.552.090.8310.121.3814.1514.140.370.35＋9.7%-＋65.9%＋121.1%＋41.3%＋97.7%-0.1%-6.7%WILLOF CONSTRUCTION*1 The investment in each company includes goodwill and identifiable intangible assets.*2 Sales and profit are for the April-March consolidated fiscal year regardless of the timing of consolidated disclosures. Converted to yen at the rates of ¥83/SGD and ¥83/AUD in order to eliminate the effects of foreign exchange rate movements.*3 Profit is profit before tax after the amortization of identifiable intangible assets, internal transactions and one-time expenses.Investment balance (above 4 companies): ¥9.3 billion¥11.2 billionInvestment balance (consolidated):31JapanOverseasBreakdown of Revenue by Region/Contract Type(Billions of yen)22.020.020.21.50.63.64.72.40.73.84.821.41.90.53.61.30.73.34.64.22.00.53.74.720.120.020.5 20.420.120.020.921.11.60.63.71.30.83.71.30.83.71.30.53.63.01.50.53.74.01.40.83.93.94.14.03.8Hybrid staffing service3.7OtherPermanent placement2.00.94.0Consignment service 9.910.411.110.710.711.710.910.410.410.611.010.5Temporarystaffing9.11.29.21.19.01.28.71.28.40.79.40.99.31.09.61.112.2 12.71.81.912.32.011.41.7Permanent placement7.98.27.77.67.88.68.48.510.410.910.39.7Temporarystaffing321Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22FY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22Forecasts of future performance in this report are based on assumptions judged to be valid and information available to the Will Group’s management at the time the materials were prepared, but are not promises by the Will Group regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons.This report is an English translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between the original Japanese version and this translated version, the Japanese version shall prevail.■IR Contact:WILL GROUP, INC. Financial DepartmentTel: +81-3-6859-8880