フルキャストホールディングス（4848） – [Delayed]Consolidated Business Results for the First Quarter of the Fiscal Year Ending December 2022 (Jan.-Mar. 2022)

FULLCAST HOLDINGS CO., LTD. (4848) Consolidated Business Results for the First Quarter of the Fiscal Year Ending December 2022 (Jan.–Mar. 2022) May 13, 2022 Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation. Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved Agenda 1Q FY12/22 Consolidated Business Highlights (Jan.–Mar. 2022) 1Q FY12/22 Segment Highlights (Jan.–Mar. 2022) 1Q FY12/22 Progress Relative to Business Forecast Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 2 1Q FY12/22 Consolidated Business Highlights(Jan.–Mar. 2022) Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 3 Consolidated: 1Q FY12/22 Year-on-Year Comparison Net sales increased by 41.2% year-on-year due mainly to the acquisition of projects accompanying the recovery in short-term staffing demand that had been greatly impacted by the pandemic, as well as the continued acquisition of public sector projects mainly supporting public vaccinations and growth of the “Short-Term Operational Support Business”, amid the ongoing recovery in client demand despite the COVID-19 pandemic raged on. Operating profit increased by 56.2% year-on-year (operating profit ratio rose by 1.5 PT) driven mainly by the ongoing recovery in client demand and increased sales of the “Short-Term Operational Support Business.” In line with the recovery in client demand, we controlled and booked costs appropriately, which lowered the SG&A expense ratio for the current first quarter year-on-year. (Million yen) Net Sales 15,271 Net Sales +41.2％ Operating Profit Ratio 16.0% Operating Profit 2,448 Operating Profit +56.2％ 10,815 Operating Profit Ratio 14.5％ 1,567 1Q FY12/21 1Q FY12/22 Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 4 Consolidated: 1Q FY12/22 Year-on-Year Comparison Ordinary profit increased by 59.7% year-on-year buoyed by the same factors as operating profit. Profit attributable to owners of parent increased by 64.1% year-on-year following the 69 million yen in gain on sale of investment securities booked as an extraordinary income following the divestment of investment securities held. 1Q FY12/21 1Q FY12/22 Difference Rate of change 10,815 15,271 4,457 41.2% (Million yen) 3,995 2,428 1,567 14.5% 1,556 1,052 5,207 2,759 2,448 16.0% 2,485 1,727 1,212 30.3% 331 881 – 928 674 13.7% 56.2% 1.5PT 59.7% 64.1% Net sales Gross profit SG&A expenses Operating profit Operating profit ratio Ordinary profit Profit attributable to owners of parent Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 5 1Q FY12/22 Segment Highlights (Jan.–Mar. 2022) Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 6 Short-Term: 1Q FY12/22 Year-on-Year Comparison Net sales increased by 49.6% year-on-year due mainly to the acquisition of projects accompanying the recovery in “Placement” service that had been impacted by the pandemic, as well as the continued acquisition of public sector projects mainly supporting public vaccinations, amid the ongoing recovery in client demand despite the COVID-19 pandemic raged on. Operating profit increased by 51.5% year-on-year (operating profit ratio rose by 0.2 PT) driven mainly by the ongoing recovery in client demand and increased sales. (Million yen) Net Sales 14,031 Net Sales +49.6％ Operating Profit Ratio 18.8％ Operating Profit 2,642 Operating Profit +51.5％ 9,379 Operating Profit Ratio 18.6％ 1,744 1Q FY12/21 1Q FY12/22 Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 7 Short-Term: 1Q FY12/22 Year-on-Year Comparison (By Service Category) 1Q FY12/21 1Q FY12/22 Difference (Million yen) Rate of change Net Sales 9,379 14,031 4,653 49.6% Placement 1,055 1,362 BPO 1,707 2,261 308 554 29.1% 32.5% Dispatching 5,930 8,560 2,631 44.4% Outsourcing 687 1,848 1,161 169.0% Gross profit 3,517 4,866 1,349 38.4% Placement 1,029 1,318 BPO 1,261 1,592 Dispatching 946 1,280 Outsourcing 280 677 288 331 334 396 28.0% 26.3% 35.3% 141.3% Amid the ongoing recovery in client demand, sales of mainstay “Placement” and “BPO” services increased and gross profit also rose. Demand has yet to fully return to the restaurant, accommodation, and event sectors and “Placement” services did not recover to the level of the first quarter of the fiscal year ended December 2019 prior to the COVID-19 pandemic, but the rate of decline improved compared to the fourth quarter of the fiscal year ended December 2021. Following the acquisition of public sector projects supporting public vaccinations, which has continued from the previous fiscal year, and the growth in logistics subcontracting projects, sales of “Outsourcing” services increased and gross profit also rose. Sales of “Dispatching” services increased and gross profit also rose mainly because we responded to the long-term staffing needs of client companies, particularly in the logistics and manufacturing industries and captured public sector projects supporting public vaccinations, similar to “Outsourcing” services. Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 8 Sales Support: 1Q FY12/22 Year-on-Year Comparison Net sales declined by 22.0% year-on-year due to the downturn in sales of telecommunications products in the sale of Internet access, which is a mainstay business. Operating profit increased by 1 million yen year-on-year amid SG&A expenses being curtailed compared to the previous year. 865 (Million yen) Net Sales 675 Net Sales (22.0)% Operating Profit Ratio (3.9)％ (34) Operating Profit Ratio (4.8)% Operating Profit (32) 1Q FY12/21 1Q FY12/22 Operating Profit +1 million yen Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 9 Security, Other: 1Q FY12/22 Year-on-Year Comparison Net sales declined 1.0% year-on-year due to a slowdown in the number of new temporary and permanent security projects. Operating profit declined by 15.7% year-on-year (operating profit ratio declined by 2.1 PT) due to the decrease in net sales. 571 Net Sales 565 (Million yen) Operating Profit Ratio 13.8％ 79 Operating Profit Ratio 11.7% Operating Profit 66 1Q FY12/21 1Q FY12/22 Net Sales (1.0)％ Operating Profit (15.7)% Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 10 1Q FY12/22 Progress Relative to Business Forecast Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 11 Consolidated: 1Q FY12/22 Progress Relative to Business Forecast Consolidated performance trended steadily centered on the mainstay “Short-Term Operational Support Business”, and the rate of progress versus the first half business forecast exceeded 50% for both net sales and each profit indicator. (Million yen) 1Q FY12/22 Results Business forecasts for 1H FY12/22 Rate of progress Rate of progress Business forecasts for FY12/22 15,271 26,670 Net Sales 14,031 48,781 28.8% Net Sales Gross Profit Operating Profit Ordinary profit Short-Term Operational Support Business Profit attributable to owners of parent Placement BPO Dispatching Outsourcing Net Sales Net Sales Sales Support Business Security, Other Businesses 5,207 2,448 2,485 1,727 1,362 2,261 8,560 1,848 675 565 9,300 3,990 4,020 2,676 – – – – – – – 57.3% 56.0% 61.4% 61.8% 64.5% – – – – – – – 54,730 18,990 8,000 8,030 5,316 5,387 7,554 30,387 5,454 3,552 2,397 27.9% 27.4% 30.6% 30.9% 32.5% 25.3% 29.9% 28.2% 33.9% 19.0% 23.6% Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 12 (Reference) Basic Stance on Capital Policy ■ Basic Stance on Capital Policy The Fullcast Group maintains a basic policy of maximizing capital efficiency and securing financial soundness to achieve sustained improvement in corporate value. • Maintaining a total return ratio of 50% relative to shareholders as an indicator to support sustained improvement in corporate value and to maximize capital efficiency. • Our goal of enhancing corporate value is to maintain an ROE of 20% or greater. • We will maintain a maximum D/E ratio of 1.0x in order to enhance corporate value and to maintain financial soundness. Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 13 (Reference) Sustainability Policy We endorse all 17 goals of SDGs. In addition, we consider contributing to the following the goals of SDGs by implementing and promoting our corporate philosophy of “Providing the best place for people to bring out their best” as a core value of our Company. 8. Descent Work and Economic Growth The Group will constantly offer employment opportunities to job seekers and a workforce to hiring companies by continually providing matching opportunities for short-term positions to job seekers and hiring companies. Thereby, we will contribute to providing descent work for job seekers and economic growth for hiring companies. 5. Gender Equality We will contribute to gender equality by providing job seekers with employment opportunities not tied to age, gender or attribution. 10. Reduced Inequalities We will contribute to reducing inequalities by providing job seekers with employment opportunities not tied to region or nationality. 9. Industry, Innovation and Infrastructure In response to Japan’s labor environment, which is experiencing a declining workforce, we will contribute to industrial growth and building infrastructures for technological innovation by providing matching services for short-term positions to companies seeking growth or innovation, thus expanding their workforce in the process. Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 14 Disclaimer Notes About this Document ••••••••Fullcast Holdings’ IR materials have been prepared for the purpose of providing information about the company, and are not a solicitation for investment. Readers are advised to use these materials at their own discretion and are solely responsible for all decisions based on such use. Although every effort has been taken to ensure the accuracy of the information provided herein, Fullcast Holdings Co., Ltd. makes no guarantees with regard to the contents. Fullcast Holdings Co., Ltd. assumes no responsibility for any damages resulting from the use of this information, either directly, indirectly or to any extent, which originates from any cause including but not limited to the accuracy, reliability and safety concerning the text, data or other information herein. Fullcast Holdings’ IR materials are copyrighted and use without Fullcast Holdings’ express written consent is strictly prohibited. In this document, the “Short-Term Operational Support Business” is referred to as “Short-Term”, and the “Sales Support Business” is referred to as “Sales” in some parts. In this document, names of services are written in an abbreviated form; “Part-Time Worker Placement” service is referred to as “Placement”; and “Part-Time Worker Payroll Management”, “My Number Management”, “Year-End Tax Adjustment Management”, and the back office BPO services by BOD Group are referred to as “BPO” in the “Short-Term Operational Support Business”, which were launched along with the implementation of the Revised Worker Dispatching Act on October 1, 2012. In addition, “Long-Term Dispatching” services with a contract period of 31 days or longer, which has been conducted after the implementation of the Revised Worker Dispatching Act, is referred to as “Dispatching.” Short-Term Operational Support Business “BPO” services represent the aggregated total of “Part-Time Worker Payroll Management”, “My Number Management”, “Year-End Tax Adjustment Management”, and the back office BPO services by BOD Group. The figures for each service category of the “Short-Term Operational Support Business” segment represent reference figures and have not been audited by our accounting auditor. Sales Support Business The “Sales Support Business” segment is mainly comprised of the “call center”, “online”, “alliance”, and “entertainment” businesses. The “call center”, “online” and “alliance” businesses each involve the sale of Internet access. Business Forecasts for FY12/22 The business forecasts of the first half for segment net sales has not been disclosed. Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 15 Providing the best place for people to bring out their best. Copyright © 2022 by FULLCAST HOLDINGS CO., LTD. All rights reserved 16 [Inquiries] IR: +81-3-4530-4830 URL: https://www.fullcastholdings.co.jp/ir email : IR@fullcast.co.jp