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

Financial Results for the Fiscal YearEnded March 31, 2022WILL GROUP, INC. (Prime Market / Stock code: 6089)May 25, 2022ContentsⅠ. FY3/22 ResultsⅡ. FY3/23 Earnings and Dividend ForecastsⅢ. Medium-Term Management Plan(WILL-being 2023) ProgressRegarding 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 year ended March 31, 2022. Accordingly, reportable segment information for the previous corresponding quarter has been restated.2Ⅰ. FY3/22 Results3FY3/22 Highlights123Cleared Medium-term Management Plan targets for operating profit and operating margin a year ahead of schedule.Thanks to Perm SHIFT, on a quarterly basis, 4Q gross profit margin was the highest among those in the three most recent fiscal years. On a full-year basis, gross profit margin was the highest since the Company’s listing.In terms of financial targets, the ratio of equity attributable to owners of parent progressed at a level exceeding the Medium-Term Management Plan objective of 20%.4FY3/22 Financial HighlightsDouble-digit revenue growth backed by the Overseas WORK Business as the demand for people to perform a variety of jobs remained strong.Operating profit posted a record high as a result of growth in permanent placement sales and increase in gross profit, despite the absence of ¥0.95 billion in one-time profit items recorded in the previous fiscal year, and despite upfront investments of approx. ¥1.0 billion in strategic investment domains (construction, nursing care, HR support for startups) to promote Perm SHIFT.(Billions of yen)RevenueGross marginOperating profitFY3/22131.08Vs. FY3/21＋10.9％（＋12.83）21.9% ＋1.6pt5.47＋35.8％（＋1.44）5Consolidated 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 the effects of 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-).6Consolidated 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%7.46.31QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/22*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 the effects of overseas subsidy income.Thanks to Perm SHIFT, 4Q consolidated gross profit margin was the highest among those in the three most recent fiscal yearsUpfront investment4Q plan ¥0.25 billion4Q result ¥0.25 billionSG&A expenses*21Q-4Q plan ¥1.01 billion1Q-4Q result ¥1.01 billion7Consolidated Segment ResultsDomestic WORK BusinessOverseas WORK BusinessOthers(Billions of yen)80.080.76.0%4.75.5%4.4RevenueSegment profit to revenueSegment profit36.96.9%3.348.75.3%1.9FY3/21FY3/22FY3/21FY3/22FY3/21-0.4FY3/22-0.3➣ 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.➣ 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.1.31.6➣ Continued upfront investment in the exploratory domain (inbound services)8Domestic 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 supportApparelTelecommunications0.61.60.40.73.42.22.20.70.63.01.60.33.31QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/229Domestic 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)-21.70.71.20.33.021.60.81.20.33.121.00.71.30.43.26.16.15.74.14.34.219.90.81.10.32.85.83.920.320.119.819.720.520.619.70.81.30.33.319.80.81.30.33.31.21.30.33.31.01.40.43.31.01.30.53.31.01.40.63.41.11.50.53.51.01.60.7OthersConstruction management engineersHR support for startups 3.4Care support/nursery5.45.25.24.84.74.64.64.4Factory outsourcing4.24.24.24.24.24.24.34.3Call center outsourcing 1.40.10.10.10.10.41.30.00.10.10.10.30.30.21.40.10.00.10.10.30.30.51.20.10.00.10.10.30.20.41.10.00.10.00.20.30.30.31.30.20.00.10.10.30.31.10.10.10.10.40.31.00.20.10.21.00.10.10.00.20.30.31.30.10.10.10.30.31.10.10.20.10.30.30.30.50.50.50.40.40.4Sales outsourcing0.40.51.20.10.20.00.3OthersHR support for startups Care support/ nurseryFactory outsourcing0.3Call center outsourcing 6.45.45.85.64.54.74.85.14.84.64.95.3Sales outsourcing-0.0-0.0-0.0-0.1-0.1-0.2-0.1Construction 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.10Overseas WORK Business (Sales by contract type and operating profit by sector)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 income0.4Businessearnings0.30.30.40.30.50.40.40.30.20.50.20.40.10.40.10.40.30.41Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22FY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/2211[Reference] Overseas WORK Business (Breakdown of sales by sector)Temporary staffing was stable in both Australia and Singapore, mainly for government/public sector contracts. Permanent placement grew significantly year on year in all sectors.■ Singapore・Temporary staffing(Billions of yen)■ Australia・Temporary staffing15.40.7 0.4 2.6 0.8 1.1 2.2 14.60.8 0.4 2.5 0.7 0.9 2.2 16.20.3 0.3 2.7 0.5 2.0 2.4 15.10.3 0.4 2.6 0.4 1.0 2.7 7.7 7.2 8.0 7.7 8.5 8.3 Public Sector1HFY3/202HFY3/201HFY3/212HFY3/211HFY3/222HFY3/221HFY3/202HFY3/201HFY3/212HFY3/211HFY3/222HFY3/22・Permanent placement・Permanent placement17.40.7 0.5 2.5 0.5 1.0 3.7 1.60.3 0.1 0.3 0.2 0.1 0.3 0.2 17.30.7 0.6 2.7 0.5 1.1 3.5 Healthcare & Life ScienceOthers Industrial Consumer Goods/Services & LifestylesTechnology & TelcoBanking & Finance1.60.3 0.1 0.5 0.2 0.1 0.3 0.2 Others Healthcare & Life ScienceIndustrial Consumer Goods/Services & LifestylesTechnology & TelcoBanking & FinancePublic Sector2.50.1 0.1 1.2 0.1 0.2 0.0 0.9 1.40.1 0.2 0.3 0.4 0.2 0.2 0.0 1HFY3/202.60.1 0.3 1.2 0.1 0.3 0.0 0.7 1.40.1 0.2 0.3 0.4 0.2 0.2 0.0 2HFY3/202.20.0 0.5 0.8 0.1 0.5 0.0 0.4 0.90.1 0.1 0.2 0.2 0.2 0.2 0.0 1HFY3/212.50.0 0.5 0.8 0.1 0.5 0.0 0.6 1.30.1 0.2 0.3 0.2 0.2 0.3 0.0 2HFY3/212.90.1 0.4 1.0 0.1 0.5 0.1 0.8 1.90.1 0.2 0.5 0.4 0.4 0.4 3.60.2 0.6 1.2 0.1 0.6 0.1 0.9 2.00.2 0.2 0.3 0.4 0.4 0.0 Others Healthcare & Life ScienceIndustrial Consumer Goods/Services & LifestylesTechnology & TelcoBanking & FinancePublic SectorOthers Healthcare & Life Science0.4 Industrial Consumer Goods/Services & LifestylesTechnology & TelcoBanking & FinancePublic Sector0.0 1HFY3/222HFY3/22Converted to yen at the rates of ¥83/SGD and ¥83/AUD. 121.00.2 0.1 0.1 0.1 0.1 0.2 0.2 0.90.2 0.1 0.2 0.1 0.1 0.2 0.2 0.70.1 0.1 0.2 0.0 0.0 0.2 0.2 0.80.2 0.1 0.2 0.1 0.0 0.2 0.1 1HFY3/202HFY3/201HFY3/212HFY3/211HFY3/222HFY3/22FY3/22 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)118.2424.05（20.3％）4.03（3.4%）130.0028.39（21.8％）5.00（3.8％）131.0828.76（21.9％）5.47（4.2％）3.782.366.255.002.987.025.293.287.55Vs. FY3/21Vs. FY3/22 ForecastChange% changeChange% change＋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％＋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)13Financial IndicatorsThe 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.2.20.80.71.91.10.91.81.00.81.70.80.71.60.70.41.40.60.31.30.60.31.20.61.10.50.10.11.10.50.21.00.50.21.00.50.90.4-0.1-0.117.0%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*9.7%9.5%6.5%8.0%11.7%12.9%（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 parent144Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY3/19FY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22Ⅱ. FY3/23 Earnings and Dividend Forecasts15FY3/23 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 PlanForecastFY3/23IFRS16FY3/23 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 mln17FY3/23 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 mln18FY3/23 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.19(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, the consolidated gross margin is expected to increase further.-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%23.2%Gross margin23.5% 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 Temp1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22FY3/23FY3/23FY3/23FY3/23FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22FY3/23FY3/23FY3/23FY3/23*Intra-segment consolidation adjustments are not included.Gross profit and gross margin are based on adjusted figure that excludes the effects of overseas subsidy income.PlanPlan20FY3/23 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%¥18 FY3/19¥23 FY3/20¥24 FY3/21¥34 FY3/2230.2%Total payout ratioDividend per share¥44 FY3/23（forecast）21Ⅲ. Medium-Term Management Plan(WILL-being 2023) Progress22Summary of progress in the Medium-Term Management Plan (WILL-being 2023)For areas where progress is behind schedule, we will work to catch up this fiscal year, with the aim of achieving all components of our key strategies.Strategy IKey strategiesImprove profitability through portfolio shift(Domestic WORK Business and Overseas WORK Business)Profit maximization domain, Strategic investment domainDetails・Expansion of Perm SHIFT domain (“Perm” refers to permanent placement, and temporary staffing for highly specialized fields). In particular, we will focus on the areas of nursing care, construction management engineers, and HR support for startups.[Indicators]・Strategic investment domain sales: Revenue growth rate・Profit maximization domain: Operating marginProgress in FY3/22[Strategic investment domain]・Construction: △ (recruitment of mid-career people with no construction experience has been slower than initially expected) ・Nursing care: △ (placement of people in temporary positions who intend to subsequently switch to permanent positions has been slower than initially expected）・Human resources support for startups: 〇 (strong performance)[Profit maximization domain]・Domestic WORK: 〇 (improvement in gross margin and operating margin resulting from the assessment of economic conditions, etc.)・Overseas WORK: 〇 (rebound in demand, but also a steady rise in the base level)・Improve productivity per capita through digital shift.・Continue to improve the functionality of the WILLOF smartphone app (shift to online applications, etc.).・On July 1, 2021, we implemented a merger between two major subsidiaries, consolidating sales office networks and administrative operations.・Expand services for foreigners in Japan.・Expand services for IT personnel.・In HR Tech, we are exploring opportunities in sectors adjacent to our main businesses.・Services for foreigners in Japan were below initial expectations due to continued restrictions on entry to the country.・In services for IT personnel, both temporary staffing and permanent placement grew steadily.・Product under development for services, etc. to be provided to construction management Strategy IVFinancial strategyfor the Group as a whole・Ratio of equity attributable to owners of parent: 20% or higher・ROIC: 20% or higher (cost of capital at around 10%)・Total payout ratio: 30% or higher・Ratio of equity attributable to owners of parent was 21.8% at the end of FY3/22.・ROIC rose due to the improvement in operating margin.・Total payout ratio for FY3/22: 23.6% (42.2% based on earnings forecasts at the start of the engineers.fiscal year)Strategy IIIncrease productivity through digital shift(Domestic WORK Business and overseas WORK Business)Profit maximization domainStrategy IIISearch for areas for next strategic investmentsExploratory domain△〇△△〇23Comparison 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）KPIFY3/20FY3/21FY3/22FY3/23Revenue(change)Gross marginSG&A expenses(Upfront investments included)Operating profit (Operating margin)ROIC121.9(＋18%)20.8%21.44.14(3.4%)14%118.2(-3%)20.3%20.44.30(3.4%)14%Profitability indicatorsFinancial indicatorsRatio of equity attributable to owners of parent to total assets11.7%17.7%Total payout ratio25.1%22.9%30.6%(Medium-Term Management Plan)(Results)(Medium-Term Management Plan)(Forecast)131.0(＋11%)133.5(＋10%)121.0(＋2%)21.2%22.2(1.3)3.40(2.8%)12%19%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%24Business 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 RevenueFY3/21：1.2 Billions of yenFY3/22：2.3 Billions of yenFY3/23：2.8 Billions of yen（＋19％）Care supportRevenueFY3/21：13.2 Billions of yenFY3/22：13.6 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 engineersRevenueFY3/21：5.2 Billions of yenFY3/22：5.7 Billions of yenFY3/23：8.3 Billions of yen （＋43％）Domestic WORK Business(Concentrated business)Degree of achieving target operating marginOverseas WORKOperating marginFY3/21：5.3%FY3/22：6.9%FY3/23：5.3％Temporary staffing of ALTCapital alliance with RareJob, Inc. in Sep. 2021FactoryCall centerSalesOperating marginFY3/21：5.1%FY3/22：6.9%FY3/23：7.6％Operating marginFY3/21：6.7%FY3/22：6.9%FY3/23：7.1％Operating marginFY3/21：7.7%FY3/22：8.3%FY3/23：9.1％Domestic WORK Business(Stable earnings businesses)Profit maximization domainImprove productivity and the operating margin25Progress in the Construction Management Engineer Temporary Staffing BusinessIncrease in mid-career people with no experience, and of the number of people on assignments. 236 new graduates joined the Company in April 2022.Quarterly RevenueNumber of People HiredThe number of people on assignments increased because of new graduates hired in 1Q and mid-career people with no applicable experience.1.3 1.4 1.3 1.3 1.3 1.3 (Billions of yen)1.5 1.4 1.6 1.1 1.2 1.2 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22People on Assignments, Pct. of Workforce, and Retention RatePct. of workforce remains high.We will increase the retention rate through training and follow-up systems.(No. of people)99.0% 99.3% 99.5% 99.4% 99.4% 98.2% 98.7% 99.7% 97.5% 99.6% 99.7% 99.0%76.0% 75.8% 76.4% 76.6% 72.9% 72.3% 71.7% 72.4% 71.2% 72.4% 70.9%Pct. of Workforce*Retention RateRetention rate = Total workforce divided by the sum of the workforce one year earlier and people hired during the past yearInexperienced mid-career staffNew graduatesExperienced staff People on assignments69098114729129117775184108854279 101 445476508547550546576613478483483474 1QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/22*The pct. of workforce in 1Q FY3/22 is the percentage for June 2021, excluding the impact of the new graduate training period.The pct. of workforce in 1Q FY3/22 would be 90.4% when the impact of the new graduate training period is factored in.(No. of people)Number of mid-career people with no experience also rising steadily.2041461545762777661629295971QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/22Temporary Placement Staff Working Time and Rates(Hours; thousands of yen)Decreases in overtime and increases in new graduates / mid-career people with no experience led to a reduction in unit rates.816 800 798 791 772 771 760 730 667 643 634 622 Average working rate192.2 185.2 192.2 183.8 183.3 184.6 190.1 180.2 173.7 169.7 176.6 166.8Average working time1QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/2226Progress in the Care Support BusinessOur focus area of placing people in temporary positions who intend to subsequently switch to permanent positions fell below initial expectations.This fiscal year, we will strengthen sales to nursing care facilities, and build a solid foundation by narrowing our target group for job seekers.Quarterly RevenueTemporary staffing services performed well.(Billions of yen)0.1 0.2 0.2 0.1 0.1 0.1 0.2 0.2 0.2 0.2 Temp-to-hire assignments＋Permanent placement0.2 0.2 2.62.83.03.03.13.23.23.13.13.23.33.2Temporary staffingTemp-to-Hire Assignments and Permanent PlacementOrders and people hired are below the plan because of low awareness of the temp-to-hire scheme. We will build a solid foundation this fiscal year.(No. of people)89 149149112Temp-to-hire assignments14212190188189192 173 191166211 185179166Permanent placement1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY3/20FY3/20FY3/20FY3/20FY3/21FY3/21FY3/21FY3/21FY3/22FY3/22FY3/22FY3/22Number of People on AssignmentsNew orders are on a recovery trend, and the number of people on assignments is rising.(No. of people)4,815 4,8804,4915,429 5,226 5,188 5,169 5,226 5,112 5,152 5,319 5,3411QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/22Employees in the Temp-to-Hire and Permanent Placement BusinessAfter building a system for placing people in temporary positions who intend to subsequently switch to permanent positions, we will once again strengthen recruitment.4953(No. of people)423542373836404643371QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/221QFY3/202QFY3/203QFY3/204QFY3/201QFY3/212QFY3/213QFY3/214QFY3/211QFY3/222QFY3/223QFY3/224QFY3/2227Forecasts 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