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Supplementary Materials for the First half of Fiscal Year Ending March 31, 2026 Nov 7 2025 WILL GROUP , INC. Tokyo Stock Exchange, Prime Market / Stock code: 6089 https://willgroup.co.jp/en/
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2 1. 1H FY2026 Results P .3 2. 1H FY2026 TOPIX P .28 2. FY2026 Earnings Forecast and Shareholder Return P .31 Appendix P .36 1. About Will Group 2. Medium-term Management Plan (WILL-being 2026) 3. External Environment 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price 5. Sustainability Contents In parts of these materials, “Domestic Working Business” and “Overseas Working Business” are abbreviated as “Domestic W” and “Overseas W ,” respectively.
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3 1H FY2026 Results
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1H FY2026 Financial Highlights (Consolidated) 4 *1 Normalized operating profit: Operating profit excluding temporary gains/losses (impairment losses and government subsidy income in “Overseas Working Business,” and gain on sale of real estate in “Others”) that were included in the corresponding previous period *2 EBITDA: Operating profit + depreciation and amortization + impairment losses Revenue 71.53 (vs 1H FY2025 +1.7%) *+3.7% when excluding the effect of foreign exchange Operating profit 1.63 (Normalized operating profit*1 ¥1.60 billion) (vs 1H FY2025 +62.4%) EBITDA *2 2.61 (vs 1H FY2025 +28.3%) (Billions of yen) Consolidated Revenue increased due to steady growth in the construction management engineer domain in the Domestic Working Business, which offset the negative forex impact (-¥1.40 billion) in the Overseas Working Business. (An increase of +3.7% when excluding the effect of foreign exchange of -¥1.40 billion.) Operating profit increased significantly due to the increase in gross profit in the Domestic Working Business, particularly in the construction management engineer domain, as well as improved SG&A efficiency, and costcontrol in the Overseas Working Business. It significantly exceeds the forecast announced on September 22, 2025 (+49.0%).
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Domestic Working Business Revenue increased 3.6% due to expansion of the construction management engineer domain. Segment profit increased significantly by 60.5%. The strong performance was driven by higher gross profit resulting from a strategic focus on the construction management engineer domain, permanent employee staffing and foreign talent management services, as well as improved SG&A efficiency. 5 Revenue 42.76 (vs 1H FY2025 +3.6%) Segment profit 1.76 (vs 1H FY2025 +60.5%) Revenue 28.71 (vs 1H FY2025 -0.9%) Segment profit 1.15 (vs 1H FY2025 +3.0%) (Normalized segment profit: vs Q2 FY2025 +33.2%) 1H FY2026 Financial Highlights (Segment Performance) (Billions of yen) (Billions of yen) *1 Normalized segment profit: Segment profit excluding temporary gains/losses (impairment losses and government subsidy income) in the same period of the previous fiscal year Overseas Working Business Despite steady growth in temporary staffing revenue in Singapore and signs of a recovery in temporary staffing demand in Australia, revenue declined by 0.9% due to the exchange rate trending toward a stronger yen. Segment profit increased by 3.0%, as the reduction of SG&A expenses resulting from cost controls was higher than the impact of the government subsidy income included in the same period of the previous fiscal year. Normalized segment profit*1 increased by 33.2%.
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FY2026 (Plan) 1H FY2026 Progress rate FY2025 Number of hires/year (construction management engineer domain) 1,500 1,127 75.1% 1,704 Retention rate (construction management engineer domain) 71.5% 72.1% +0.6pt 68.4% Increase in number of workers on assignment for permanent employee staffing (Domestic W [excluding the construction management engineer domain]) 3,500 (Vs. end of previous fiscal year: 3,828 +378 ) 109.4% 3,450 Increase in number of foreign workers under consigned management (Domestic W) 3,500 (Vs. end of previous fiscal year: 3,945 +803 ) 112.7% 3,142 1H FY2026 Results Forecast (Sep.22,2025) 1H FY2026 Vs. Forecast 1H FY 2025 Vs. 1H FY2025 Change % change Change % change Revenue 70.50 71.53 +1.03 +1.5% 70.32 +1.20 +1.7% Gross profit (Gross margin) 14.15 (20.1%) 15.36 (21.5%) +1.21 (+1.4pt) +8.6% 14.78 (21.0%) +0.57 (+1.5pt) +3.9% Operating profit (Operating margin) 1.10 (1.6%) 1.63 (2.3%) +0.53 (+0.7pt) +49.0% 1.00 (1.4%) +0.62 (+0.9pt) +62.4% Profit attributable to owners of parent 0.72 1.14 +0.42 +58.3% 0.50 +0.64 +126.5% 6 (Billions of yen) ■KPI Number of Employees： 8,844 (Vs.as end of previous fiscal year＋915) 1H showed steady progress on earnings forecasts. Operating profit ended up significantly exceeding the forecast as a result of strong performance in Domestic W, particularly in the construction management engineer domain, and Overseas W business exceeding expectations, especially in permanent placement services.Operating margin has also shown steady improvement.
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7 1H FY2026 Revenue (Breakdown of Year-on-Year Changes) (Billions of yen) Domestic W (*1) IT engineer domain Factory outsourcing domain Care support domain Sales outsourcing domain Call center outsourcing domain Others +0.22 billion +0.14 billion +0.13 billion +0.03 billion - 0.80 billion +0.06 billion (*2) Temporary staffing Permanent placement +1.19 billion - 0.06 billion +1.70 71.5370.32 -0.20(*1) -0.04 +1.15(*2) -1.40 Overseas W
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1H FY2026 Operating Profit (Breakdown of Year-on-Year Changes) (*3) Increase in headquarters costs. Domestic W (Billions of yen) 8 1.00 1.63+0.27(*1) +0.03(*2) -0.01+0.38 -0.05(*3) (*2) Increase in SG & A expenses Increase in Subsidy income Decrease in Gross profit Forex impact +0.31 billion + 0.01 billion - 0.24 billion - 0.04 billion (*1) Factory outsourcing domain Care support domain IT engineer domain Call center outsourcing domain Others +0.19 billion +0.07 billion +0.07 billion - 0.08 billion +0.02 billion
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19.83 19.76 20.51 20.61 20.86 20.65 21.42 21.18 20.18 20.51 20.94 20.88 20.46 20.79 21.17 20.65 21.18 21.58 11.41 12.29 12.72 12.31 14.04 15.70 14.20 13.58 14.18 14.25 13.63 13.36 14.53 14.43 13.81 13.66 14.00 14.71 0.28 0.31 0.45 0.54 0.53 0.55 0.63 0.53 0.06 0.06 0.06 0.06 0.04 0.04 0.03 0.03 0.02 0.02 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 34.35 9 Consolidated Revenue Others Overseas W Domestic W Q2 revenue increased ¥1.05 billion compared to Q2 FY2025 (of which, forex impact: -¥0.69 billion). On a quarterly basis, it recovered to the all-time high level. 35.03 (Billions of yen) 31.53 32.37 33.69 36.91 35.44 33.47 36.25 35.31 34.43 34.84 34.64 35.2735.0534.31 36.32 35.20 (YoY +3.0%)
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0.97 1.18 1.25 1.03 1.18 1.09 0.88 1.28 0.57 0.78 0.85 0.77 0.23 0.86 0.98 1.16 0.58 1.18 0.78 1.270.74 0.90 0.79 0.68 0.82 1.01 0.66 0.49 0.44 0.65 0.44 0.27 0.30 0.53 0.37 0.20 0.46 0.65 0.18 0.03 0.04 0.02 0.30 0.01 0.00 0.08 0.01 0.26 0.01 0.18 0.02 (0.47) (0.10) (0.09) (0.11) (0.02) (0.06) (0.08) (0.05) (0.08) (0.06) (0.06) (0.05) (0.03) (0.06) (0.07) (0.05) (0.02) (0.07) (0.08) (0.49) (0.45) (0.46) (0.57) (0.54) (0.55) (0.58) (0.55) (0.61) (0.49) (0.54) (0.57) (0.57) (0.49) (0.53) (0.51) (0.58) (0.53) Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 0.39 0.54 10 Consolidated Operating Profit Subsidy income Gain on sale of shares of subsidiaries Q2 operating profit increased ¥0.41 billion compared to Q2 FY2025 (including -¥0.02 billion from the effect of foreign exchange and +¥0.01 billion from government subsidy income in the Overseas Working Business) Overseas W Domestic W Corporate expenses Others (Billions of yen) 1.45 1.13 0.93 1.50 1.431.301.481.54 1.13 0.88 0.77 1.72 0.17 0.83 Impairment losses 1.24 0.78 (YoY +49.5 %)
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47.4% 42.8% 4.7%10.1% 38.0% 4.6% 40.70 41.26 42.76 1H FY2024 1H FY2025 1H FY2026 1.05 2.14 1.09 1.76 5.3% 2.7% 4.1% 26.6% 1.6% 9.5%56.7% 5.6% Domestic Working Business -Revenue and segment profit (Billions of yen)- The Domestic Working Business achieved increases in both revenue and profit, driven by the steady expansion of the construction management engineer domain. As a result of the strategic initiatives under the Medium-term Management Plan, the gross profit contribution from key strategicareas (permanent employee staffing and outsourcing, and Foreign Talent Management Services) steadily expanded to47.4%. Consequently, the overall gross profit margin also improved by 2.3pt. 11 Segment profit Revenue Segment profit to net sales Segment profit (normalized basis) 28.2% Service Gross Profit Margin ■ Permanent placement High Low ■ Permanent employee staffing and outsourcing ■ Foreign talent management services ■ Temporary staffing and outsourcing ■ Others - Change in share of gross profit by service - FY2023*2 Gross Profit Margin ：18.5% 1H FY2026 Gross Profit Margin ：20.8% (Target scope of key strategies) 1H FY2026 (Plan) 1H FY2026 Vs. 1H FY2026 Plan % change 1H FY2025 Vs. 1H FY2025 % change Revenue 42.81 42.76 - 0.1% 41.26 +3.6% Segment profit*1 1.51 1.76 +16.3% 1.09 +60.5% *1 Operating profit excluding the temporary gain on the sale of subsidiary shares and the effects of deconsolidation. *2 Figures for FY2023 (full year) are calculated excluding the figures for subsidiaries that were excluded from consolidation by the end of the previous fiscal year.
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0.40 0.32 0.42 0.46 0.46 0.44 0.37 0.44 0.28 0.28 0.33 0.40 0.37 0.29 0.35 0.33 0.29 0.37 0.28 0.27 0.30 0.30 0.23 0.25 0.22 0.21 0.15 0.11 0.14 0.09 0.10 0.09 0.14 0.08 0.13 0.12 0.37 0.28 0.34 0.25 0.28 0.25 0.18 0.22 0.22 0.18 0.22 0.13 0.13 0.19 0.28 0.17 0.24 0.27 0.05 0.09 0.10 0.03 0.11 0.10 0.12 0.15 0.07 0.04 0.05 0.04 0.05 0.08 0.08 0.09 0.09 0.11 (0.20)(0.12)(0.12)(0.10) (0.27) (0.14)(0.08) 0.00 (0.27) (0.05)(0.02)(0.04) (0.36) 0.27 0.27 0.19 (0.12) 0.42 0.08 0.10 0.14 0.09 0.21 0.19 0.20 0.24 0.10 0.03 0.05 0.03 (0.04) (0.03) 0.00 0.05 0.00 0.00 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 4.76 4.62 4.85 5.26 5.07 5.01 5.13 5.16 4.86 4.86 4.96 5.13 5.18 5.04 5.10 5.07 5.04 5.21 4.22 4.21 4.33 4.27 4.15 4.12 4.22 4.07 3.88 3.75 3.72 3.48 3.38 3.29 3.27 2.98 2.98 2.89 4.69 4.59 4.64 4.38 4.47 4.40 4.41 4.35 4.44 4.47 4.63 4.43 4.58 4.63 4.77 4.54 4.69 4.67 3.32 3.39 3.53 3.42 3.52 3.40 3.40 3.28 3.31 3.33 3.39 3.33 3.37 3.44 3.44 3.36 3.44 3.51 1.33 1.40 1.47 1.56 1.65 1.86 2.03 2.11 2.34 2.58 2.70 2.82 3.15 3.58 3.72 3.81 4.09 4.35 0.95 0.95 1.13 0.98 1.27 1.10 1.44 1.40 0.59 0.61 0.68 0.68 0.76 0.79 0.84 0.86 0.91 0.92 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 Domestic Working Business (Revenue and operating profit by sector) -Revenue by sector (Billions of yen)- -Operating profit by sector (Billions of yen)- *Intra-segment consolidation adjustments are not included. 21.58 1.31 The construction management engineer domain has seen steady expansion and a significant increase in profit, standing 53.5% higher than Q2 FY2025. The other domains excluding the sales outsourcing domain saw increased profit mainly due to higher gross profit and improved SG&A efficiency. Construction Management engineers Sales outsourcing Call center outsourcing Factory outsourcing Care support/ nursery schools Others Construction management engineers Sales outsourcing Call center outsourcing Factory outsourcing Care support/ nursery schools Others 12 (YoY +3.8%) (YoY +44.6%)
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Medium-Term Management Plan (WILL-being 2026) Progress of KPI Key strategies KPI Plan Results Vs. Plan Evaluation Domestic W Strategy I Realizing further growth and monetization in the construction management engineer domain Number of hires/year 1,500 1,127 75.1 % Good Retention rate 71.5 % 72.1 % +0.6 pt Good Strategy II Renewed growth in Domestic W (excluding the construction management engineer domain) Number of workers on assignment for permanent employee staffing 3,500 3,828 109.4 % Good (Vs. end of previous fiscal year: ＋ 378 ) Number of foreign talent supported through the Foreign Talent Management Services 3,500 3,945 112.7 % Good (Vs. end of previous fiscal year: ＋ 803 ) 13 Steady progress in all KPIs. The steady increase in the number of permanent employees staffed and foreign talent managed contributed to increases in both gross profit and gross profit margin.
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14 -Quarterly Revenue- -Headcount Hired-(Billions of yen) (No. of people) Revenue increased by 20% compared to Q2 FY2025. Quarterly revenue has continued to reach record highs, driven by an increase in the number of workers on assignment and the unit price of contracts. Headcount hired made steady progress, driven by the hiring of inexperienced and foreign workers and supported by accumulated hiring know-how and partnerships with external agents, reaching 1,127 people in the first six months, vis-à-vis the full year target of 1,500 employees. (Q1 includes a headcount of 418 new graduates (previous fiscal year: 453 headcount)) Strategy I (Domestic W) Realize further growth and monetization in the construction management engineer business (Progress in the Construction Management Engineer Temporary Staffing Business ①) Medium-Term Management Plan (WILL-being 2026) 212 97 146 154 379 239 221 163 563 280 283 298 806 284 292 322 814 313 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 1.33 1.40 1.47 1.56 1.65 1.86 2.03 2.11 2.34 2.58 2.70 2.82 3.15 3.58 3.72 3.81 4.09 4.35 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 (YoY +21.5 %)
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478 483 483 474 449 438 435 438 418 407 400 400 398 392 393 398 376 368 114 117 108 101 309 301 288 268 496 457 423 389 749 711 660 596 884 834 98 129 184 279 322 467 545 597 662 803 911 1,000 1,071 1,191 1,257 1,307 1,322 1,388 0 37 38 39 41 44 46 14 16 22 54 74 118 97.5% 99.6% 99.7% 99.0% 96.9% 98.5% 98.3% 98.1% 96.7% 96.8% 96.8% 95.9% 96.0% 98.8% 98.7% 97.7% 91.8% 93.3% 72.4% 71.2% 72.4% 70.9% 74.6% 74.9% 73.2% 71.3% 72.8% 73.0% 72.1% 71.2% 73.6% 72.9% 71.7% 68.4% 71.4% 72.1% Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 651 650 643 644 650 655 645 649 654 660 664 669 674 684 694 697 700 707 457 457 439 446 455 461 469 475 412 422 433 438 447 453 459 466 479 485 400 400 407 411 420 425 432 432 452 459 464 470 484 489 382 384 393 401 408 413 415 419 431 438 444 444 462 472 476 489 509 513 409 413 416 425 435 437 437 441 453 465 481 484 490 508 514 516 528 539 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2022 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 15 - People on Assignment, Pct. of Workforce on Assignment, and Retention Rate - The average unit price of contracts for new graduates and inexperienced staff increased by approximately 5% compared to Q2 FY2025 due to price negotiations with customers. The problem with standby personnel that occurred in Q1 has been almost entirely resolved, and the number of workers on assignment has steadily increased. We will continue to work on improving the retention rate. Strategy I (Domestic W) Realize further growth and monetization in the construction management engineer business Progress in the Construction Management Engineer Temporary Staffing Business ② Medium-Term Management Plan (WILL-being 2026) Retention rate*2 Pct. of workforce on assignment*1 *1：Percentage of workforce on assignment in Q1 is for the month of June only, after excluding impact of training for new graduates. *2： (Total workforce divided by the sum of the workforce one year earlier and people hired during the past year) / 100 *3： BIM：Building Information Modeling system engineer People on assignment 2,754 (No. of people) ■ Inexperienced mid-career staff ■ New graduates ■ Experienced staff ■ BIM*3 ■ Foreign workers 29 26 27 29 26 25 25 25 21 21 21 21 15 17 17 18 14 14 - Average contract unit price, average overtime (monthly) - 1st year Average overtime 2nd year 3rd year 4th year Contract unit price（Experienced employees） 6th year 5th year Contract unit price（New graduates/people with no experience） (Hours, Thousands of yen) (YoY +17.2 %)
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1,707 1,655 1,699 1,699 1,961 1,942 1,948 2,061 2,160 2,119 2,101 2,085 2,156 2,069 1,952 1,825 1,987 1,990 3,500 309 298 322 325 326 328 337 325 344 325 351 402 401 425 466 463 506 494 113 113 127 128 128 109 126 150 165 195 261 503 518 559 642 737 834 868 190 192 200 163 225 236 254 241 275 302 323 367 377 405 419 417 445 471 13 13 14 13 12 10 10 14 11 13 7 8 7 8 8 8 6 5 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 FY2026 (Plan) 16 The number of workers on assignment for permanent employee staffing remained steady in the factory outsourcing and IT engineer domains. The number of permanent employee staffing hires increased by around 100 compared to Q2 FY2025, due to the buildup in the factory outsourcing and sales outsourcing domains. (318 new graduates hired in Q1 FY2026 (sales: 249, call center: 28, factory: 25, IT: 16) - Number of workers on assignment for permanent employee staffing - ■ Sales outsourcing ■ Call center outsourcing ■ Factory outsourcing ■ IT engineer ■ Care support (No. of people) Strategy II Renewed growth in Domestic W (excluding the construction management engineer domain) Progress of Permanent Employee Staffing Medium-Term Management Plan (WILL-being 2026) 3,828 - Number of permanent employee staffing hires - ■ Sales outsourcing ■ Call center outsourcing ■ Factory outsourcing ■ IT engineer ■ Care support (No. of people) 350 94 168 172 441 170 171 145 441 140 157 154 400 132 121 94 395 202 21 14 36 28 19 20 29 26 42 29 18 34 65 47 29 27 68 34 2 6 19 9 13 11 24 21 47 60 98 131 218 132 162 190 211 169 20 11 16 19 23 18 29 13 36 40 33 44 50 48 26 11 48 48 0 1 1 0 0 0 0 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 3,500 453 (YoY +10.4%) (YoY +26.2%)
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17 The number of foreigners supported through the foreign talent management services reached a record high due to the accumulation of new people supported in each domain. The new domains in particular (food services and accommodation) saw steady expansion. Government policy toward foreigners under the Takaichi Administration could be a tailwind for the Company, which strives to provide high- quality services while strictly adhering to compliance. Going forward, we will continue striving to increase the number of customers and orders by focusing on acquiring new clients in the industrial product manufacturing sector and expanding existing relationships in the food manufacturing sector within the factory outsourcing domain. In addition, we will focus on developing new clients in the care business support domain and other new domains. Strategy II Renewed growth in Domestic W (excluding the construction management engineer domain) Progress of Foreigners Supported Through the Foreign Talent Management Services Medium-Term Management Plan (WILL-being 2026) ■ Factory outsourcing ■ Care support ■ New domains -Number of foreigners supported through the Foreign Talent Management Services- 1,430 1,501 1,438 1,633 1,702 1,776 1,811 1,974 2,006 2,220 2,336 3,500 320 381 448 520 639 704 809 919 1,044 1,176 1,281 15 41 49 92 154 328 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 FY2026 (Plan) 3,5003,945 (No. of people) ■ Factory outsourcing ■ Care support ■ New domains -Number of new foreigners supported through the Foreign Talent Management Services- 293 201 115 330 277 241 187 285 219 314 254 97 89 96 110 157 122 179 156 218 205 2103 27 14 53 139 191 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 655 (No. of people) (YoY +48.3%) (YoY +66.7%)
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1.33 1.40 1.47 1.56 1.65 1.86 2.03 2.11 2.34 2.58 2.70 2.82 3.15 3.58 3.72 3.81 4.09 4.35 0.33 0.35 0.37 0.38 0.39 0.41 0.45 0.48 0.50 0.53 0.57 0.61 0.66 0.69 0.74 0.73 0.77 0.81 3.18 3.15 3.24 3.30 3.49 3.24 3.11 3.05 3.08 2.96 2.92 2.84 2.87 2.82 2.73 2.70 2.74 2.79 0.28 0.29 0.33 0.32 0.37 0.36 0.41 0.41 0.43 0.44 0.53 0.51 0.57 0.55 0.60 0.56 0.62 0.62 0.36 0.36 0.36 0.37 0.42 0.44 0.53 0.58 0.57 0.57 0.56 0.63 0.56 0.58 0.61 0.63 0.63 0.67 0.93 0.80 0.91 1.25 0.78 0.96 1.07 1.11 0.76 0.89 0.94 1.12 1.16 1.08 1.15 1.17 1.04 1.12 2.30 2.20 2.22 2.20 2.26 2.26 2.20 2.15 2.20 2.19 2.20 2.06 2.18 2.24 2.28 2.11 2.19 2.13 2.39 2.39 2.42 2.18 2.21 2.14 2.21 2.20 2.24 2.27 2.42 2.36 2.40 2.39 2.49 2.42 2.50 2.54 3.32 3.39 3.53 3.42 3.52 3.40 3.40 3.28 3.31 3.33 3.39 3.33 3.37 3.44 3.44 3.36 3.44 3.51 0.61 0.60 0.65 0.67 0.65 0.66 0.70 0.70 0.73 0.69 0.71 0.68 0.71 0.69 0.68 0.63 0.68 0.64 0.65 0.63 0.64 0.64 0.61 0.59 0.57 0.57 0.51 0.53 0.50 0.44 0.37 0.35 0.35 0.30 0.31 0.29 2.95 2.97 3.03 2.95 2.87 2.86 2.94 2.80 2.64 2.52 2.50 2.35 2.30 2.23 2.24 2.04 1.98 1.94 0.62 0.60 0.75 0.60 0.88 0.69 0.98 0.92 0.09 0.08 0.10 0.07 0.10 0.09 0.09 0.12 0.14 0.11 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY206 (Reference) Domestic Working Business (Business sector revenue) 18 Looking at revenue by business segment, areas such as construction management engineers and factory showed steady performance, driven by a focus on permanent employee staffing and foreign talent management services. (Billions of yen) ★Telecommunications ★ Sales support Call center Finance ★♦Food factory ★♦Factory except food ♦Care support/ nursery schools ★Construction management engineers Others ★IT engineers Office ★Apparel ★Other sales support Call center outsourcing Sales outsourcing Factory outsourcing ★ Business sectors where we are actively developing permanent employee staffing ♦ Business sectors where we are actively developing foreign talent management services
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In our existing four business areas, while the number of workers on assignment has continued to decrease, revenue per person remained steady as a result of higher labor productivity. (Reference) Domestic Working Business : (Trend in temporary staffing revenue per person in the existing four domains) ＊ Includes Outsourcing contracts. Temporary staffing revenue per person (Ten thousands of yen)* Number of workers on assignment (headcount)* 19 5,112 5,152 5,319 5,341 5,241 5,195 5,008 4,875 4,880 4,973 5,057 5,035 4,792 4,719 4,681 4,584 4,383 4,471 62.1 63.1 64.1 61.5 63.8 62.2 64.6 63.4 63.6 63.6 64.1 62.9 66.2 68.1 69.6 68.4 73.0 73.5 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 Care support 6,738 6,550 6,128 6,394 6,503 6,100 6,166 5,925 5,884 5,868 5,899 5,793 5,875 5,731 5,799 5,678 5,542 5,55268.9 69.2 74.4 67.5 67.0 70.2 69.5 71.2 73.3 74.0 76.0 73.8 75.5 78.2 79.2 76.4 81.0 80.4 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 Factory outsourcing 5,127 5,082 5,208 5,315 5,113 5,089 5,125 4,892 4,414 4,359 4,225 3,976 3,648 3,511 3,388 3,200 2,986 2,922 81.3 82.2 82.4 79.3 80.5 80.3 81.5 82.6 87.0 85.4 87.3 87.1 91.8 93.2 95.8 92.4 98.7 98.3 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 Call center outsourcing 3,481 3,347 3,383 3,400 3,604 3,481 3,489 3,392 3,485 3,475 3,410 3,466 3,445 3,380 3,360 3,142 3,255 3,246 111.2 112.7 116.8 117.8 116.0 115.2 115.8 119.6 117.4 114.3 117.2 114.8 116.4 116.1 115.1 122.5 122.0 125.4 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 Sales outsourcing
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28.44 28.96 28.71 1H FY2024 1H FY2025 1H FY2026 0.83 1.11 1.12 1.11 1.15 4.0% 3.9% 4.0% Overseas Working Business FY2026 Plan Q1 FY2026 Results Q1 FY2025 Results Change for ¥1 difference/y Revenue Profit AUD ¥91 ¥95 ¥101 ¥387 million ¥14 million SGD ¥104 ¥113 ¥114 ¥163 million ¥7 million -Forex sensitivity*2- -Revenue and segment profit (Billions of yen)- 20 Segment profit Revenue Segment profit to net sales Segment profit (normalized basis) *1 Normalized segment profit: Segment profit excluding impairment losses and government subsidy income in the same period of theprevious fiscal year *2 For information on the macro environment, see Appendix (pages 80). 1H FY2026 (Plan) 1H FY2026 Vs. 1H FY2026 Plan % change 1H FY2025 Vs. 1H FY2025 % change Revenue 27.64 28.71 +3.9% 28.96 -0.9% Segment profit 8.6 1.15 +32.4% 1.11 +3.0% Segment profit (normalized basis)*1 8.6 1.11 +28.6% 0.83 33.2% Although revenue declined due to the negative impact of the stronger yen on exchange rates, it increased on a local currency basis due to the steady expansion of temporary staffing revenue in Singapore and signs of recovery for permanent placement demand in Australia. (Effect of foreign exchange: revenue -¥1.40 billion, segment profit -¥0.04 billion) Segment profit increased, as the reduction of SG&A expenses resulting from cost controls was higher than the impact of government subsidy income included in the same period of the previous fiscal year. Normalized segment profit*1 increased by 33.2%.
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14.7% 15.1% 14.0% 16.1% 15.1% 14.9% 13.3% 13.5% 13.7% 14.3% 13.5% 11.6% 13.7% 13.5% 12.4% 11.7% 12.7% 13.2% 21 Overseas Working Business (Revenue by contract type and operating profit) We will continue to monitor market conditions while maintaining talent investment in competitive fields and cost control measures. 0.67 0.90 0.78 0.68 0.82 1.01 0.62 0.45 0.44 0.65 0.44 0.27 0.30 0.53 0.37 0.20 0.46 0.65 0.07 0.03 0.04 0.01 0.18 0.03 0.04 0.02 0.30 0.01 0.08 0.01 0.26 0.01 0.01 0.18 0.02 (0.47) Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 9.73 10.43 10.93 10.32 11.91 13.35 12.26 11.74 12.22 12.21 11.78 11.79 12.51 12.47 12.07 12.05 12.18 12.75 1.68 1.86 1.78 1.98 2.12 2.34 1.87 1.83 1.93 2.03 1.83 1.55 1.99 1.94 1.70 1.59 1.77 1.93 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 14.68 ■ Permanent placement ■ Temporary staffing Permanent placement Revenue composition 0.67 -Operating profit (Billions of yen)--Revenue by contract type (Billions of yen)- ■ Business earnings ■ Subsidy income ■ Subsidies impact (COVID-19-related) ■ Impairment losses (YoY +1.9%) (YoY +25.0%)
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1.18 0.93 0.50 0.81 1.03 1.28 1.51 2.06 2.82 3.39 3.81 4.53 5.12 0.00 0.01 0.00 0.00 0.09 0.11 0.12 0.08 0.04 0.04 0.01 0.00 0.06 0.31 0.44 0.62 0.71 0.71 0.84 0.93 1.25 1.06 1.12 1.13 1.29 1.24 0.15 0.17 0.18 0.15 0.08 0.14 0.10 0.15 0.16 0.16 0.13 0.09 0.25 1.57 1.61 1.08 1.09 1.41 1.61 1.89 1.94 1.95 2.04 1.80 1.65 1.77 0.18 0.34 0.62 0.64 0.51 0.76 0.63 0.29 0.14 0.13 0.18 0.20 0.24 0.09 0.08 0.01 0.05 0.09 0.20 0.19 0.10 0.12 0.26 0.40 0.43 0.19 1H FY2020 2H FY2020 1H FY2021 2H FY2021 1H FY2022 2H FY2022 1H FY2023 2H FY2023 1H FY2024 2H FY2024 1H FY2025 2H FY2025 1H FY2026 Temporary staffing services expanded steadily for Singapore’s government and administration, and there were signs of recoveryin demand from Australian state governments and financial institutions. In permanent placement services, although recruitment process outsourcing services for the Australian federal government remained strong, market conditions continued to be challenging in both Singapore and Australia. 0.00 0.01 0.01 0.00 0.02 0.03 0.06 0.03 0.04 0.05 0.01 0.01 0.02 0.26 0.29 0.22 0.37 0.61 0.54 0.65 0.35 0.41 0.42 0.46 0.38 0.50 0.31 0.32 0.21 0.32 0.49 0.57 0.42 0.26 0.12 0.13 0.16 0.14 0.17 0.53 0.48 0.23 0.33 0.47 0.46 0.48 0.37 0.43 0.26 0.28 0.20 0.22 0.42 0.45 0.33 0.44 0.63 0.59 0.60 0.53 0.64 0.51 0.43 0.32 0.28 0.20 0.20 0.19 0.24 0.22 0.28 0.30 0.26 0.24 0.15 0.20 0.17 0.18 0.16 0.15 0.08 0.14 0.20 0.27 0.29 0.26 0.21 0.17 0.31 0.27 0.26 1H FY2020 2H FY2020 1H FY2021 2H FY2021 1H FY2022 2H FY2022 1H FY2023 2H FY2023 1H FY2024 2H FY2024 1H FY2025 2H FY2025 1H FY2026 Overseas Working Business (Breakdown of revenue by sector) 22 1.63 8.87 Converted to yen at the rates of ¥113/SGD and ¥95/AUD. - Singapore - ・Temporary staffing ・Permanent placement (Billions of yen) Public Sector Banking & Finance Industrial Healthcare & Life Science Consumer Goods/ Services & Lifestyles Others Technology & Telco Public Sector Banking & Finance Industrial Healthcare & Life Science Consumer Goods/ Services & Lifestyles Others Technology & Telco 8.71 8.20 9.05 8.79 9.69 9.45 9.71 9.59 10.02 8.55 8.61 7.58 7.49 2.44 2.49 2.76 3.05 4.19 4.02 3.38 3.25 2.84 1.73 1.92 2.43 3.12 1.20 0.96 2.32 1.18 1.16 1.25 1.80 0.55 0.36 0.33 0.52 0.26 0.15 0.92 0.79 0.61 0.42 0.57 0.56 0.68 0.54 0.29 0.31 0.46 0.62 0.69 3.00 2.86 3.09 2.90 2.82 3.02 3.57 3.77 3.71 3.94 3.97 3.79 4.02 0.41 0.44 0.36 0.48 0.61 0.69 0.70 0.66 0.80 0.68 0.36 0.18 0.21 0.80 0.88 0.29 0.36 0.76 0.79 0.98 0.98 0.84 0.72 0.48 0.54 0.49 1H FY2020 2H FY2020 1H FY2021 2H FY2021 1H FY2022 2H FY2022 1H FY2023 2H FY2023 1H FY2024 2H FY2024 1H FY2025 2H FY2025 1H FY2026 ・Temporary staffing - Australia - 0.20 0.20 0.19 0.15 0.28 0.28 0.39 0.31 0.52 0.44 0.53 0.50 0.82 0.24 0.23 0.21 0.24 0.36 0.30 0.32 0.27 0.29 0.26 0.25 0.19 0.23 0.06 0.06 0.02 0.03 0.11 0.06 0.06 0.06 0.06 0.03 0.04 0.06 0.03 0.13 0.11 0.05 0.10 0.22 0.22 0.23 0.21 0.30 0.20 0.22 0.22 0.24 0.15 0.19 0.18 0.20 0.34 0.54 0.48 0.48 0.42 0.35 0.29 0.22 0.25 0.09 0.07 0.07 0.08 0.14 0.13 0.12 0.10 0.14 0.10 0.07 0.06 0.08 0.25 0.19 0.11 0.18 0.37 0.36 0.44 0.40 0.31 0.26 0.47 0.42 0.40 1H FY2020 2H FY2020 1H FY2021 2H FY2021 1H FY2022 2H FY2022 1H FY2023 2H FY2023 1H FY2024 2H FY2024 1H FY2025 2H FY2025 1H FY2026 16.17 2.05 Public Sector Banking & Finance Industrial Healthcare & Life Science Consumer Goods/ Services & Lifestyles Others Technology & Telco Public Sector Banking & Finance Industrial Healthcare & Life Science Consumer Goods/ Services & Lifestyles Others Technology & Telco ・Permanent placement
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99.2 110.5110.7 98.7 104 116.6 105.299.7102.797.1 88.1 84.1 85.8 87 81.7 81.6 85.7 85.5 9.1 10.3 10.1 10 10.8 11.2 10.5 9.4 11.4 10.5 9.4 8.2 10.2 9.8 9.1 8.8 10.9 11 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 13.7 14.4 16.9 18.7 19.5 19.1 20.4 23.3 23.2 24.3 25.8 28.3 28.2 29.1 30.2 33.1 34.0 35.2 10.0 11.7 10.5 12.1 11.1 11.5 7.7 8.1 7.5 8.2 7.4 5.4 7.3 7.3 5.7 6.2 5.6 6.3 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 Q1 FY2025 Q2 FY2025 Q3 FY2025 Q4 FY2025 Q1 FY2026 Q2 FY2026 23 (Reference) Overseas Working Business (Breakdown of revenue by region on a local currency basis) - Singapore - - Australia - Revenue in Singapore increased by 6.1 million Singapore dollars in temporary staffing services and decreased by 1.0 million Singapore dollars in permanent placement services compared to Q2 FY2025. Revenue in Australia decreased by 1.4 million Australian dollars in temporary staffing services and increased by 1.1 million Australian dollars in permanent placement services compared to Q2 FY2025. 4.16 Q2 FY2026 actual rate: 1 SGD: ¥113 1 AUD: ¥95 9.66 (Unit: 1 million Singapore dollars) (Unit: 1 million Australian dollars) ■ Permanent placement ■ Temporary staffing ■ Permanent placement ■ Temporary staffing (YoY +13.7%) (YoY -0.2%)
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0.13 0.09 0.04 Q1 FY2024 Q1 FY2025 Q1 FY2026 24 Others -Revenue and segment profit (Billions of yen)- Segment profit Revenue The foreign worker employment management support service business was transferred to another company in March 2024, and the mobile internet connection and voice communication services for foreigners were transferred in September 2024, as part of divestments executed through an absorption-type company split. We continue to pursue the development of new platforms. (0.13) (0.13) (0.15) 1H FY2026 (Plan) 1H FY2026 Vs. 1H FY2026 Plan % change 1H FY2025 Vs. 1H FY2025 % change Revenue 0.03 0.04 +18.2% 0.09 -46.1% Segment profit (0.15) (0.15) ― (0.13) ―
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The ratio of equity attributable to owners of parent to total assets remained stable at 34.6%. Other financial indicators also showed no signs of financial risk. 0.1 0.1 0.1 0.0 0.0 (0.0) (0.0) (0.1) 0.0 0.1 (0.0) (0.0) 0.0 (0.1) 0.6 0.5 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.8 0.8 0.9 0.8 0.7 0.6 0.7 0.7 0.7 0.7 0.7 0.6 0.7 0.6 25 Net debt to equity ratio*3 Ratio of equity attributable to owners of parent to total assets Interest-bearing debt to EBITDA ratio*1 Ratio of goodwill to equity attributable to owners of parent*2 Financial Indicators *1：Interest-bearing debt (excluding short-term borrowings) / EBITDA *2：Goodwill outstanding / Equity attributable to owners of parent *3：(Interest-bearing debt - Cash and deposits) / Equity attributable to owners of parent (Times) 23.5% 26.2% 25.6% 26.6% 28.7% 30.3% 30.7% 34.0% 33.8% 33.7% 34.8% 34.8% 34.6% 35.8% Jun 30,2022 Sep 30,2022 Dec 31,2022 Mar 31,2023 Jun 30,2023 Sep 30,2023 Dec 31,2023 Mar 31,2024 Jun 30,2024 Sep 30,2024 Dec 31,2024 Mar 31,2025 Jun 30,2025 Sep 30,2025
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(Billions of yen) March 31, 2025 Sep 30, 2025 Change Current assets 26.55 27.42 +0.87 Of which cash and cash equivalents 6.93 7.31 +0.37 Of which Trade and other receivables 18.13 18.31 +0.17 Non-current assets 23.37 22.99 -0.37 Of which Goodwill 8.16 8.39 +0.22 Of which Other intangible assets 5.60 5.61 0.01 Total assets 49.92 50.42 +0.49 26 Consolidated Balance Sheet (Billions of yen) March 31, 2025 Sep 30, 2025 Change Current liabilities 25.20 25.36 +0.15 Of which Trade and other payables 16.95 18.17 +1.22 Of which Borrowings 4.00 3.16 -0.83 Of which Other financial liabilities 1.42 1.29 -0.13 Non-current liabilities 7.35 7.04 -0.31 Of which Borrowings 2.60 2.90 +0.30 Of which Other financial liabilities 3.63 3.16 -0.46 Total liabilities 32.56 32.40 -0.15 Total equity 17.35 18.01 +0.65 Of which total of equity attributable to owners of parent 17.39 18.05 +0.66 Total liabilities and equity 49.92 50.42 0.49 Total assets increased by ¥0.49 billion (mainly +¥0.37 billion in cash and cash equivalents and +¥0.17 billion in trade and other receivables). Total liabilities decreased by ¥0.15 billion (mainly -¥0.81 billion in net change in short-term borrowings and +¥0.28 billion in long-term borrowings). Total equity increase by ¥0.65 billion (mainly +¥1.14 billion in profit, and -¥1.01 billion in retained earnings due to dividends paid). Ratio of equity attributable to owners of parent to total assets 34.8% 35.8% -1.0pt Net debt to equity ratio -0.0 times -0.1 times － Ratio of goodwill to equity attributable to owners of parent 0.5 times 0.5 times － Interest-bearing debt to EBITDA ratio 0.8 times 0.6 times －
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27 Consolidated Statement of Cash Flows (Billions of yen) 1H FY2025 1H FY2026 Profit before tax 0.86 1.55 Depreciation and amortization 1.02 0.97 Income taxes paid (0.94) (0.11) Other (0.80) (0.05) Net cash provided by (used in) operating activities (0.14) 2.36 Purchase of property, plant and equipment, and intangible assets (0.21) (0.20) Acquisitions and sales of investment securities (0.28) 0.20 Other (0.35) (0.02) Net cash provided by (used in) investing activities (0.85) (0.03) Free cash flows (Operating activities + Investing activities) (0.71) 2.32 (Billions of yen) 1H FY2025 1H FY2026 Net increase (decrease) in interest-bearing debt 0.48 (1.15) Dividends paid (1.01) (1.01) Government subsidy income 0.29 0.06 Other 0.00 0.00 Net cash provided by (used in) financing activities (0.29) (2.09) Effect of exchange rate changes (0.00) 0.14 Net increase (decrease) in cash and cash equivalents (1.00) 0.37 Cash and cash equivalents at beginning of period 7.10 6.93 Cash and cash equivalents at end of period 6.09 7.31 Net cash provided by operating activities was ¥2.36 billion mainly due to an increase in profit before tax and income taxes paid. Net cash used in investing activities was ¥0.03 billion mainly due to purchases of property, plant, and equipment and intangible assets, as well as acquisitions and sales of investment securities. Net cash used by financing activities was ¥2.09 billion, mainly due to the payment of dividends andnet increase (decrease) in interest-bearing debt.
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1H FY2026 TOPIX 28
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29 Acquisition of Shares of HR CAREER, Inc. (Making It a Consolidated Subsidiary) HR CAREER Company Profile Trade name: HR CAREER, Inc. Location: Yebisu Garden Place 29F, Ebisu 4-20-3, Shibuya-ku, Tokyo Establishment: June 2020 Representative: Representative Director Sosuke Mori Business Activities: Placement services specializing in the healthcare and welfare sectors URL: https://hr-career.jp/ On October 1, 2025, the Company acquired shares of HR CAREER, Inc., a company that specializes in permanent placement services in the healthcare and welfare industries, making it a consolidated subsidiary. In addition to enhancing the competitiveness of our placement business, we will accelerate the maximization and optimization of career paths—expanding from temporary staffing to permanent placement, and from production and administrative roles to specialized professions—as we aim to increase the corporate value of the entire Group. The Company operates under the mission of being a “Group that acts as an agent of change, facilitating positive transformations for individuals and organizations” by providing temporary staffing services, business process outsourcing services, and permanent placement services both domestically and internationally.In addition, with the intent of “striving to maximize and optimize career paths that transform workers into experts” as outlined in our current Medium-term Management Plan, we have positioned the expansion of our human resource services as a key pillar of our growth strategy. Specializing in permanent placement services for the healthcare and welfare sectors, HR CAREER has a client base of approximately 900 companies and is primarily focused on placing nurses, care workers, dietitians, and childcare workers. Furthermore, it has established an efficient sales structure tailored to each industry by deploying highly specialized consultants for each area and profession, taking regional characteristics into account. At present, the majority of the Company's domestic sales are derived from temporary staffing services, while the permanent placement services business remains limited in scale. In particular, we believe that the essential services (areas indispensable for sustaining daily life), including healthcare and nursing care, will continue to see growing demand for manpower while also being directly involved with solving societal challenges. Amidst this environment, welcoming HR CAREER, a company that specializes in permanent placement services for the healthcare and welfare sectors, into our Group constitutes a major step forward in accelerating the “maximizing” and “optimizing” of career paths for our 20,000 registered staff members. Furthermore, by incorporating HR CAREER's operational capabilities and proven track record of high conversion rates, we will enhance the competitiveness of our placement services. We will also establish a framework to provide diverse career development opportunities, expanding from temporary staffing to permanent placement services and broadening from production and administrative roles to specialized professions. Through this share acquisition, we will enable the provision of sustainable human resource services that contribute to solving societal challenges and aim to enhance the corporate value of the entire Group. - Background to share acquisition -
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30 Our Collaboration with the “Nezu Engagement Fund” Following a proposal of collaboration through the acquisition of Company shares by the “Nezu Engagement Fund,” we transferred 232,000 shares (approximately 1% of the total number of shares issued) held by Company Chairman Ikeda. We aim to enhance corporate value over the medium to long term through collaborative engagement, such as the revision of the equity story, strategic review, corporate actions including the reevaluation of shareholder benefits and the introduction of a share- based compensation system, and improvements in IR activities. - Transaction Overview - Seller Chairman and Director Ryosuke Ikeda Buyer Nezu Engagement Fund Number of shares sold 232,000 shares Sale method Off-floor trading in the market Contract date and transfer date Contract date: September 29, 2025; Transfer date: October 1, 2025 Remarks There were no changes to major shareholders or largest shareholder in conjunction with the sale of shares. Establish a target share price and explore corporate actions that will lead to achieving that target Expected engagement • Revision of equity story and strategic review • Reevaluation of shareholder benefits • Introduction of share-based incentives (stock options) • Improvement of IR activities • Share buybacks as downside protection • Enhancement of shareholder returns - Initiatives following the execution of the transaction - *Engagement fund: An investment fund with the goal of enhancing corporate value over the medium to long term through constructive dialogue (engagement) with the management of investee companies. Enhancement of corporate value through collaborative engagement
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FY2026 Earnings Forecast and Shareholder Return 31
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Profit attributable to owners of parent Operating profit Revenue FY2026 Consolidated Earnings Forecasts 32 - Progress toward FY2026 earnings forecasts - ¥71.53 billion ¥1.63 billion ¥143.50 billion FY2026 Forecast (Revision planned) ¥3.10 billion ¥2.00 billion Progress rate：50％ Progress rate： 53％ Progress rate： 57％¥1.14 billion The full-year earnings forecast has been revised upward to reflect the better-than-expected performance for 1H. Regarding revenue, in addition to the impact of a newly consolidated subsidiary in the Domestic Working Business, in the Overseas Working Business, permanent placement in Australia is performing well, and temporary staffing services in Singapore are expected to expand steadily. Regarding profit, while an increase in headquarters costs is expected due to the strengthening of IR measures, the construction management engineer domain and sales outsourcing domain in the Domestic Working Business are projected to perform steadily.
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(Reference) FY2025 Consolidated Earnings Forecasts (Revision planned for November 7, 2025) 33 Full year (Billions of yen) FY2026 Forecasts (Sep.22,2025) FY2025 Vs. FY2024 Change %change Revenue 143.50 139.70 +3.79 +2.7% Domestic Working Business 87.87 83.11 +4.75 +5.7% Overseas Working Business 55.55 56.45 -0.90 -1.6% Others 0.07 0.13 -0.05 -41.0% Gross profit 31.65 29.38 +2.26 +7.7% (Gross margin) ( 22.1 %) ( 21.0 %) +1.1pt Operating profit 3.10 2.33 +0.76 +32.6% (Operating margin) ( 2.2 %) ( 1.7 %) +0.5pt Domestic Working Business 4.14 3.25 +0.88 +27.3% Overseas Working Business 1.73 1.43 +0.29 +20.8% Others (0.30) (0.22) -0.08 － Adjustments (2.46) (2.12) -0.34 － Profit attributable to owners of parent 2.00 1.15 +0.84 +73.1% EBITDA 5.15 4.89 +0.25 +5.2% Change for ¥1 difference/y Exchange rate Revenue Profit AUD ¥91 ¥86 ¥390 million ¥10 million SGD ¥104 ¥94 ¥140 million ¥10 million
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34 Shareholder Return (FY2026Dividend Forecast) Shareholder return policy in the Medium-term Management Plan (FY2024– FY2026) ・Progressive dividends In principle, increase or maintain and do not reduce dividends ・Total payout ratio of 30% or higher Evaluate flexible treasury share acquisitions as needed based on performance progress during the period ¥24 ¥34 ¥44 ¥44 ¥44 ¥44 22.9% 23.6% 31.2% 36.4% 87.9% 50.8% FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 (forecast) ■ Dividend per share and total payout ratio Dividend per share Total payout ratio The FY2026 dividend forecast is based on our shareholder return policy and set at the same as the previous fiscal year (¥44 per share). As a result, the forecasted total payout ratio is 50.8%.
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35 Continuous holding Period*1 100 to less than 200 shares 200 shares or more Preferential yield*2 Dividend yield*2 Less than one year ¥500 QUO card ¥1,000 QUO card 0.5% 4.3% Less than two years ¥1,000 QUO card ¥2,000 QUO card 1.0% Less than three years ¥1,500 QUO card ¥3,000 QUO card 1.5% Three years or more ¥2,000 QUO card ¥4,000 QUO card 1.9% Shareholder Return (Shareholder Benefits) Implementing a shareholder benefit system aimed to promote medium-to long-term holdings. *1 The continuous holding period is calculated starting on March 31 of each year, the record date in Japan. This applies to shar eholders who have been consecutively indicated or recorded in the Company’s shareholder registry as of March 31 by using the same shareholder number two times in the case of less than two years, three times in the case of less than three years, or at least four times in the case of three or more ye ars. *2 Preferential yield value is estimated based on the closing price on Nov 6, 2025: ¥1,028
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Appendix 1. About Will Group 2. Medium-term Management Plan (WILL-being 2026) 3. External Environment 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price 5. Sustainability 36
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37 Concerning Acquisition of the Company’s Shares by the Company’s Representative Director Yuichi Sumi Timely Disclosure Materials (September 25, 2024) “Notice Concerning Acquisition of the Company’s Shares by the Company’s Representative Director Yuichi Sumi ” Comments from Representative Director Yuichi Sumi “Although I assumed the position of Representative Director in June 2023, I decided to make these purchases as I would once again like to share with our stakeholders my strong desire to grow the Company’s business. Through these purchases, I will demonstrate my commitment to management while striving to achieve growth of the Company’s business and enhance medium- to long-term corporate value.” Status of the Acquisition of the Company’s Shares by the Company’s Representative Director Yuichi Sumi As announced on September 25, 2024, Representative Director Yuichi Sumi (hereinafter referred to as “Sumi”) acquired the Company’s issued shares up to a maximum amount of approximately ¥300 million through market purchases. These purchases began on September 27, 2024, and were concluded at the end of January 2025. (While providing open and fair terms and taking appropriate measures to safeguard the assets, the Company provided personal financing to Sumi for the funds for these purchases.) As of March 31, 2025, the number of the Company’s shares owned by Sumi reached 347,800 shares (ranking 10th among the major shareholders with a shareholding ratio of 1.51% of issued shares).
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President and Representative Director: Yuichi Sumi 2003 2023 20252016 2018 2021 2022 April 2003 (Age 22) Joined SAINT MEDIA, INC. (currently WILLOF WORK, Inc.) as a new graduate April 2016 (Age 35) Appointed as Director of FAJ, INC.(currently WILLOF Work, Inc.) specializing in the manufacturing industry July 2018 (Age 37) Executive Officer, General Manager of Human Resources Division of the Company April 2021 (Age 40) Appointed as Representative Director of WILLOF WORK CONSTRUCTION, Inc., which operates a construction management engineer staffing service June 2022 (Age 41) Appointed as Director of the Company June 2023 (Age 42) Appointed as third Representative Director of the Company (current position) January 2025 (Age 44) Completed acquisition of approximately 300 million yen worth of company shares. Appointed as Director of WILL GROUP Asia Pacific Pte. Ltd., an overseas intermediate holding company (current position) “I am fully committed to the Company's success!!” After serving as the Chief Human Resources Officer and as the representative director of a subsidiary, I succeeded the 'first generation' of management, including the actual founding owner, and assumed the role of President and CEO in June 2023. Our Group has historically focused on growth through fixed-term staffing services. However, anticipating the increasing social challenges posed by 'job mismatch' and labor shortages, we are transforming our business model to establish permanent employee staffing for construction engineers and professionals, as well as employment support for foreign workers in Japan, as key pillars of our business. 38 1. About Will Group – Representative Profile –
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39 1. About Will Group – Key Features of Will Group – We serve as specialized human resource services enterprise with a focus on specific occupational categories. Our Group offers specialized staffing services, recruitment services, outsourcing services, and employment support for foreign workers in Japan, focusing on various categories of occupations such as customer service, sales, call center operators, administrative positions, factory workers, caregivers, construction engineers, and IT engineers. Additionally, we provide human resource services primarily targeting white-collar professionals not only in Japan but also in Australia and Singapore. We serve as a corporate group which maintains a portfolio that allows for consistent and sustainable growth. Our Group maintains a balanced portfolio that allows for stable and sustainable growth across various business areas, including sales outsourcing, call center outsourcing, factory outsourcing, support for the caregiving business, construction engineering, andoverseas talent services, without being overly concentrated in any specific sector. We are committed to addressing significant social challenges involving employment mismatch. In Japan, it is anticipated that, from the late 2020s, there will be an oversupply of production and administrative positions, while a shortage of professionals who can lead technological innovation and apply it to business will exacerbate the labor supply-demand gap, known as 'job mismatch. ' Our Group is committed to addressing this 'job mismatch' through the provision of human resource services, striving to maximize and optimize career paths that transform workers into experts.
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40 1. About Will Group – Mission・Vision・Value － Becoming a Change Agent Group that Brings Positive Change to Individuals and Organizations. There are many positive aspects to human society. For example, people encourage and improve each otherand move each other’s hearts. On the other hand, there are also negative aspects. People feel jealous of andharm each other, for instance. Of course, a fully positive society would be desirable, but in reality, humansociety has both positive and negative aspects. It is difficult to eliminate the negative aspects altogether. However, if the proportion of positive aspects exceeds the proportion of negative aspects, even by a slightedge of 51% to 49%, we are confident that both individuals and organizations will gradually grow, resulting in abetter society. To that end, we hope to continue growing ourselves and help to inject energy into and bring positive change toindividuals and organizations. Creating a Strong Brand with High Expected Value and Becoming No. 1 in the Business Fields of Working, Interesting, Learning and Living. This Is Our Vision. Working Support ”Working“ In the business field of Working, we support individuals’ career by providing servicesthat enhance positive career advancement Interesting Support “Interesting” In the business field of Interesting, we support individuals’ enjoyment by providingservices that create exciting moments. Learning Support “Learning” In the business field of Learning, we support individuals’ learning by providing services thatlead individuals to enjoy lifelong individual development. Living Support “Living” In the business filed of Living, we support individuals’ lives by providing services that promotephysically and mentally healthy lives. Believe in Your Possibility We have always been challenging ourselves.No matter how tough the situation was, we have alwayslooked forward, believed in our own possibilities and believed in our team members’ possibilities, whichled us to come so far. Regardless of how many new members joining our company that started from just three members, ourphilosophy of Believe in Your Possibility will never fade away. In fact, we believe that by having more individuals, the possibilities will become our group’s core and willturn into our power to move forward. In every moment, this VALUE will always be in our heart. - Vision- - Mission- - Value-
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FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 1997 Founded Started consignment service of Short-term work in Osaka 139.7 2.3 Since we began providing human resource services for the manufacturing industry in 2000, we have cultivated our sustainable growth potential by consistently entering new business sectors. 41 FY2013-FY2025 Revenue : CAGR 16.5% Operating Profit : CAGR 11.8% ■ Revenue ■ Operating Profit 2018 Construction management engineers recruitment services 2014 Caregivers recruitment services 2012 Overseas Human Resource services 2002 Sales and Call Center recruitment services 2000 Started human resource services for the manufacturing industry (Billions of Yen) 1. About Will Group – History and Growth Trajectory –
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42 To differentiate from competitors, we select target markets. By specializing in specific categories (occupations), we have successfully gained top-level market share in each area, even as alate entrant. ※1 Industry ranking is according to our research An area targeted by the Company High retention rate Low retention rate Low supply and demand gap High supply and demand gap < Target markets > ・ Untapped by major players ・ Constantly experiencing labor shortages ・ Have certain level of market size 2nd place※1 Gaining market share through specializing in specific categories Salesperson Temporary staffing Industry Operator Temporary staffing Industry Care Support Temporary staffing Industry Food / light work Temporary Staffing Industry Construction engineer temporary staffing Sectors dominated by major players 1. About Will Group – Specialization in Specific Categories (Occupations) and Selection of Target Markets – 1st place※1 3rd place※1 7th place※18th place※1
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81% 170% 176% 185% 196% 199% 219% 248% 287% 292% 300% 304% 328% 329% 332% 406% 421% 445% 533% 882% nms Holdings Corporation Career Design Center Co., Ltd Altech Corporation Careerlink Co., Ltd TechnoPro Holdings Inc. Recruit Holdings Co., Ltd Quick Co., Ltd GiG Works Inc. HIRAYAMA HOLDINGS CO.,LTD. Like Co., Ltd Dip Corporation EN JAPAN INC. Persol Holdings Co., Ltd S-Pool Inc. Will Group Inc. World Holdings Co., Ltd UT Group Co., Ltd SMS Co., Ltd JAC Recruitment Co., Ltd Open Up Group Inc. 43 1. About Will Group – Our Position in the Human Resources Business Industry – The market we target remains steady. Our revenue growth rate is top class in the industry. （Billions of Yen）Our position in the industry* ※Created by us based on SPEEDA 40.3 51.1 56.3 58.5 60.4 60.9 65.6 68.5 75.7 100.3 101.5 133.0 139.7 173.2 194.7 219.2 242.2 356.7 1,451.2 3,557.4 Careerlink Co., Ltd WDB Holdings Co., Ltd Dip Corporation HITO-Communications… Like Co., Ltd SMS Co., Ltd EN JAPAN INC. Fullcast Holdings Co., Ltd nms Holdings Corporation Human Holdings Co., Ltd Nisso Holdings Co., Ltd Meitec Group Holdings Inc. Will Group Inc. Open Up Group Inc. UT Group Co., Ltd TechnoPro Holdings Inc. World Holdings Co., Ltd Pasona Group Inc. Persol Holdings Co., Ltd Recruit Holdings Co., Ltd FY2013-FY2025 revenue growth rateFY2025 revenue
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59.5% 40.4% 0.1% 14.6% 9.3% 13.3% 9.8% 10.3% 2.3%1.6% 12.0% 26.7% 44 1. About Will Group – Business Overview and Revenue Composition – Domestic Working Business : 59.5%Overseas Working Business : 40.4% The consolidated revenue composition is 60% from Japan and 40% from overseas. One of the Group’s strengths lies in its diversified portfolio, which enables consistent and sustainable growth even in the face of rapidly changing economic conditions and markets, without an excessive focus on specific business sectors. Revenue 139.7 (FY2025) ■ Sales Outsourcing Business Human resources services for telecommunications and apparel ■ Call Center Outsourcing Business Human resources services for call centers and offices ■ Factory Outsourcing Business Human resources services for Food manufacturing ■ Care Support Business Human resources services for nursing home facilities ■ AUSTRALIA ■ SINGAPORE ■ Other Overseas WORK Human resources services in ASEAN and Oceania regions ■ Construction management engineers Human resource services, specialized in providing construction engineers such as construction management engineers ■ Other Domestic WORK (Billions of Yen)
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90.0% 1.0% 9.0% 41.0% 24.0% 25.0% 1.0% 9.0% 37.2% 62.8% 0.1% 14.6% 9.3% 13.3% 9.8% 10.3% 2.3%1.6% 12.0% 26.7% Over approximately 10 years since going public, the revenue composition across business sectors has significantly changed. The share of the three primary sectors at the time of listing—sales outsourcing, call center outsourcing, and factory outsourcing—has decreased from 90% to 37%. This shift in composition is the result of our ongoing efforts to explore various opportunities by considering 'where the opportunities lie,' 'which sectors can be expanded,' and 'which areas allow us to leverage our strengths. 45 1. About Will Group – Changes in Revenue Composition – Revenue 22.1 (FY2013) Revenue 139.7 (FY2025) Three existing domains 90.0% ■Sales Outsourcing Business ■Call Center Outsourcing Business ■Factory Outsourcing Business New business 62.8% Domestic W ■Care Support Business ■Construction management engineers ■Other Domestic W Overseas W ■AUSTRALIA ■SINGAPORE ■Other Overseas W Three existing domains 37.2% ■Sales Outsourcing Business ■Call Center Outsourcing Business ■Factory Outsourcing Business (Billions of Yen)
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46 2. Talent development ability 3. Retention rate improvement1. Pursuit of results ・High management ability by specializing in categories. ・Respond to client needs and work as a partner of our clients to pursue results ・Our “Hybrid temporary staffing" model (system in which our full-time employees are stationed on site to provide support) and on- the-job training program enable us to transform new starters to excel at an early stage ・For industries with high turnover rate, our hybrid temporary staffing model enables us to improve our retention rate by enhancing the communication on-site with a robust follow-up system. × × The Group’s three strengths By implementing the PDCA (Plan-Do-Check-Act) cycle to achieve results, we contributed to both our contract staff and client companies Hybrid temporary staffing with managers stationed on site 1. About Will Group The “Strengths” That Allow Us to Gain Market Share Even as a Late Entrant –
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Hybrid temporary staffing Full-time employees called FS (Field Supporter) work on-site to support client and contract staffs. Above system is compatible with the hiring foreign workers. (Foreign FS who graduate Japanese university work onsite where Foreign contract staffs work.) 47 Low Loyalty to business execution High Low Teamwork High complexity Command Smooth Diffcult Information sharing Easy Case of “Hybrid temporary staffing”Case of temporary staffing Customer representative Customer representative Company A coordinator Company A coordinator Company B coordinator Company B coordinator Our coordinator Our coordinator On-site follow and management On-site follow and management Worksite Worksite Our employees Field Supporter (FS) 1. About Will Group – Hybrid temporary staffing –
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1. About Will Group – Human Resources Business Revenue Model and Structure – Temporary staffing Permanent placement Temp-to-hire assignments Media Overview Dispatch human resources who are enrolled in or employed by a dispatching company to a company Mediate between job seekers and companies to make matching successful. Work as a dispatched employee for a certain period of time (assuming that he / she will be directly employed by the dispatched company), and then convert to permanent employee under mutual agreement. We facilitate the connection between job seekers and companies through the posting of job advertisements. Gross Profit Model Customer billing unit price-Payment unit price to temporary staff Permanent placement fee （Annual income x 25-40%） Temporary period is the same as Temporary staffing fee + Permanent placement fee Advertising revenue (Number of job openings x unit price) Revenue Composition※1 90% ※2 6% 0% － Structure Customer (Employer) Job advertisement company Job seekers Revenue (Ad placement fees) (Provision of information) (Employment) Customer (Employer) The Company (Staffing agency) Temporary staff Revenue (Salaries for temporary staff + margin) Cost of sales (Salaries for temporary staff) (Employment) Customer (Employer) The Company (Recruitment agency) Job seekers Revenue (Permanent placement fees: annual salary x margin rate) (Job introduction)(Employment) (3-6 months) Temporary staffing Agreement (1 month before the expiry of the dispatch contract Both Confirmation of intention (In the case of mutual agreement) Permanent placement * 1 revenue composition is the composition ratio excluding other revenue. * 2 Includes Outsourcing contracts. 48
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49 1. About Will Group – Operation Flow of the Temporary Staffing Business– Operation flow of the temporary staffing business Training Follow-up after employment Sales and order taking Hiring Decision on employment Employment Payment of salaries for temporary staff Billing to customer
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50 1. About Will Group – Major Group Companies – Business sector Industry WILLOF WORK, Inc. WILLOF CONSTRUCTION, Inc. DFP Recruitment Holdings Pty Ltd (Australia) Ethos BeathChapman Australia Pty Ltd (Australia) BeathChapman Pte. Ltd. (Singapore) The Chapman Consulting Pte. Ltd. (Singapore) u&u Holdings Pty Ltd (Australia) Sales Outsourcing Business Call Center Outsourcing Business Care Support Business Other Telecommunications, apparel, call center, nursing care facilities and nursery school, Food manufacturing and other manufacturing sector and logistics, etc. Construction management engineers Financial industry, etc. Permanent placement HR related personnel, etc. Overseas WORK Business Temporary staffing Overseas WORK Business Overseas WORK Business Overseas WORK Business Overseas WORK Business Government agencies and major firms, etc. Permanent placement Temporary staffing Temporary staffing Construction industry (construction management) Government agencies and telecommunications sectors, etc. Government agencies and Banking & Finance, etc. Temporary staffing Temporary staffing Permanent placement Other Factory Outsourcing Business
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51 1. About Will Group – Main Business Partners for Each Business Sector/Business Operating Company – Business sector Number of workers on assignment Number of business partners Main business partners Sales outsourcing 3,142 Approx. 320 companies KDDI Group, Rakuten Group and SoftBank Group Call center outsourcing 3,200 Approx. 590 companies Japan Concentrix KK, JCOM Co., Ltd. and NTT DOCOMO Group Factory outsourcing 5,678 Approx. 720 companies Prime Delica Co, Ltd., PIONEER CORPORATION and Shiseido Company, Limited Care support / nursery schools 4,584 Approx. 2,900 companies － Construction management engineers 2,396 Approx. 600 companies TAISEI CORPORATION, OBAYASHI CORPORATION and SHIMIZU CORPORATION Domestic W Business operating company Number of workers on assignment Main business partners DFP Recruitment Holdings （Australia） 974 National Disability Insurance Agency, Department of Defence, Department of Veterans‘ Affairs Ethos Beathchapman Australia （Australia） 353 Westpac Bank, Transport for NSW , Rabobank Australia Limited The Chapman Consulting （Singapore） － Hilti, Sanofi, Standard Chartered Bank u&u Holdings （Australia） 620 Queensland Government, Energy Queensland Limited, CS Energy Limited Overseas W (As of March 31, 2024)
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52 J-GAAP J-GAAP IFRS IFRS IFRS IFRS IFRS IFRS IFRS FY2018 FY2019 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Consolidated Balance Sheet Total assets 28.09 34.21 43.39 44.60 46.76 52.35 54.93 51.54 49.92 Current assets 22.34 23.16 22.53 22.04 23.57 27.28 28.66 26.12 26.55 Non-current assets 5.74 11.05 20.86 22.55 23.19 25.06 26.27 25.41 23.37 Goodwill 1.74 4.73 5.32 5.65 6.15 6.51 8.12 8.73 8.16 Liabilities 18.23 26.24 38.17 37.47 36.73 39.22 39.06 34.02 32.56 Current liabilities 15.54 18.02 21.08 21.56 24.79 29.36 28.41 24.53 25.20 Non-current liabilities 2.69 8.22 17.09 15.90 11.94 9.86 10.64 9.49 7.35 Equity 9.86 7.96 5.22 7.12 10.02 13.12 15.87 17.51 17.35 Total equity attributable to owners of parent 8.40 7.12 4.19 5.23 8.24 11.39 14.62 17.50 17.39 Valuation/exchange differences 0.01 (0.03) - - - - - - - Non-controlling interests 1.43 0.88 1.02 1.89 1.78 1.72 1.28 0.01 (0.03) Equity ratio 29.4% 20.1% 9.7% 11.7% 17.6% 21.8% 26.6％ 34.0％ 34.8% Net debt equity (DE) ratio -0.3 times 0.6 times 1.1 times 0.7 times 0.2 times 0.1 times 0.0 times -0.1 times -0.0 times 1. About Will Group – Consolidated Balance Sheet – (Billions of yen)
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53 J-GAAP J-GAAP IFRS IFRS IFRS IFRS IFRS IFRS IFRS FY2018 FY2019 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Consolidated P/L Net revenue 79.19 103.60 103.30 121.91 118.24 131.08 143.93 138.22 139.70 YoY revenue growth 30.7% 30.8% 30.3% 18.0% -3.0% 10.9% 9.8% -4.0％ 1.1％ Gross profit 16.05 20.33 20.30 25.40 24.05 28.76 31.73 30.44 29.38 Gross margin 20.3% 19.6% 19.7% 20.8% 20.3% 21.9% 22.1% 22.0% 21.0% EBITDA 3.04 3.66 4.57 6.13 6.25 7.55 7.45 6.81 4.89 EBITDA margin 3.8% 3.5% 4.4% 5.0% 5.3% 5.8% 5.2％ 4.9％ 3.5％ Operating profit 2.42 2.54 2.95 4.14 4.03 5.47 5.31 4.52 2.33 Operating margin 3.1% 2.5% 2.9% 3.4% 3.4% 4.2% 3.7％ 3.3％ 1.7％ Profit attributable to owners of parent 1.22 1.23 1.53 2.38 2.36 3.28 3.23 2.77 1.15 Earnings per share 58.04 55.58 69.46 107.0 106.35 147.03 143.20 122.37 50.64 ROIC (WACC recognized by the Company) 13.0% 8.2% (Around 8%) 8.2% 13.9% 13.8% (Around 11%) 17.9% 16.6% (Around 9%) 13.4% 5.7% (Around 8%) ROE 19.9% 16.3% 27.4% 50.5% 35.1% 33.5% 24.9% 17.3% 6.6% Consolidated C/F Operating cash flow 3.50 2.07 2.80 4.99 4.31 4.35 4.81 3.82 1.80 Investing cash flow (2.09) (5.71) (5.63) (3.03) (0.43) (0.03) (0.17) (0.57) (0.69) Financing cash flow 3.97 1.37 0.56 (2.72) (2.64) (2.95) (2.78) (6.23) (1.23) Free cash flows 1.40 (3.63) (2.83) 1.96 3.88 4.04 3.05 3.25 (1.11) (Billions of yen, Yen) 1. About Will Group – Consolidated Statement of Profit or Loss and Consolidated Statement of Cash Flows –
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StrategyⅠ Realizing further growth and monetization in the construction management engineer domain Permanent employee staffing StrategyⅡ Renewed growth in Domestic W (excluding the construction management engineer domain) Permanent employee staffing Foreign Talent Management Services StrategyⅢ Stable growth in Overseas W Renewed growth in Domestic W Basic Policies Key strategies Domestic W Overseas W Traditional model of Will Group Strategic direction of Will Group Limited growth potential due to dependence on fixed-term staffing (3.4% in FY2020 to 3.7% in FY2023) 54 Renewed growth driven by permanent employee staffing and foreign talent management services. 2. Medium-term Management Plan (WILL-being 2026) －Basic Policies and Key strategies－
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2. Medium-term Management Plan (WILL-being 2026) －Formulation background－ 55 WILL-being 2023 Review Challenge: Low growth in Domestic Working Business WILL-being 2026 (Announced on May 11, 2023) Basic Policies： Renewed growth in Domestic W WILL-being 2026 (Revised plan announced on May 12, 2024) Basic Policies： Renewed growth in Domestic W (No changes) Revised targets based on business environment Consolidated：Poor (FY2023) • Revenue ： CAGR 6% Forex-excluded CAGR: 3% • Operating Profit： CAGR 9% Forex-excluded CAGR: 4% Domestic W：Unsatisfactory • Revenue ： CAGR 0% • Operating Profit： CAGR - 6% Overseas W：Excellent • Revenue ： CAGR 17% Forex-excluded CAGR: 8% • Operating Profit： CAGR 30% Forex-excluded CAGR: 18% Consolidated target (Fiscal year ending March 31, 2026) Revenue 170.0 billion Operating Profit 6.5 billion Operating margin 3.8 % Domestic W Realizing further growth and monetization in the construction management engineer domain (FY2026) • Number of hires/year : 2,000 • Retention rate : 73.0 ％ Regrowth of areas other than the above (FY2026) • Number of workers on assignment for permanent employee staffing : 4,700 • Number of foreign talent supported through the Foreign Talent Management Services: 6,800 Overseas W Stable growth Permanent placement revenue composition : 17.0% Consolidated target No management targets set Aim for profit growth from the fiscal year ending March 31, 2027 onwards Domestic W Realizing further growth and monetization in the construction management engineer domain (FY2026) • Number of hires/year : 1,500 • Retention rate : 71.5 ％ Regrowth of areas other than the above (FY2026) • Number of workers on assignment for permanent employee staffing : 3,500 • Number of foreign talent supported through the Foreign Talent Management Services : 3,500 Overseas W Stable growth Permanent placement revenue composition : No target set StrategyⅠ・Ⅱ StrategyⅠ・Ⅱ Strategy Ⅲ Strategy Ⅲ
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56 2. Medium-term Management Plan (WILL-being 2026) – Service-Specific Revenue Model – Company employees (Person responsible on site) Company employees and temporary staff Gross margin: 14 to 17% (Fixed term staffing) 21 to 28% (Permanent employee staffing (non-fixed term)) Customer (Employer) The Company (Staffing agency) Temporary staff Revenue (Salaries for temporary staff + margin) Cost of sales (Salaries for temporary staff) (Employment) Outsourcing Customer (outsource certain process/project to external vendor) The Company (provides outsourcing services) Revenue (Outsourcing fees) Cost of sales (Salaries for Company employees, temporary staff, etc.) Permanent placement Customer (Employer) The Company (Recruitment agency) Job seekers Revenue (Permanent placement fees: annual salary x margin rate) (Job introduction) (Employment) Temporary Staffing Gross margin: 14 to 22% Gross margin: 90% or higher
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57 2. Medium-term Management Plan (WILL-being 2026) – Service-Specific Revenue Model – Foreign Talent Management Services Customer (Employer of foreign talent) The Company (provides outsourcing services) Foreign workers Revenue (Outsourcing fee: ¥20,000 to ¥30,000 per person per month) * (Daily life support)(Employment) Hiring within and outside of Japan Advance guidance Transportation when entering or leaving Japan Securing housing Support in arranging any contracts needed for daily life Daily life orientation Accompanying staff to assist with administrative procedures Consultation and responding to complaints Providing opportunities to learn Japanese Promoting interaction with the local Japanese community Job changing support Regular interviews Notifying government agencies * Main daily life support service Gross margin: 90% or higher
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58 2. Medium-term Management Plan (WILL-being 2026) – Service-Specific Revenue Model – Strategy I・II Strategy II Strategy III Service Fixed term staffing Outsourcing Permanent employee staffing Foreign Talent Management Services Permanent placement Segment Call Center Outsourcing Factory Outsourcing Sales Outsourcing Overseas W Business Factory Outsourcing Sales Outsourcing Construction management engineers Sales Outsourcing Factory Outsourcing IT engineering Factory Outsourcing Care Support Overseas W Business Gross margin 14~17% 14~22% 21~28% 90% or higher 90% or higher Retention rate Middle Middle High High - Market growth potential Low Low High High High Compatibility with existing assetsOperation - - Good Good Fair Employee skills - - Excellent Good Fair Customers - - Excellent Excellent Good The expansion of permanent employee staffing and foreign talent management services is driven by factors such as profitability, retention rates, market growth potential, and high compatibility with existing assets. We aim to leverage our existing assets, honed through fixed-term staffing, to transition towards a more profitable portfolio.
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59 2. Medium-term Management Plan (WILL-being 2026) – Reallocation of Business Portfolio – By expanding the highly profitable permanent employee staffing and foreign talent management services, we aim to increase the profit margin. Operating Margin High (more than 20% ) Middle (20% or less) Low (10% or less) Low Middle High Invested capital FY2023 (Final year of previous Medium-Term Management Plan) FY2026 (Final year of current Medium-Term Management Plan) Permanent placement Media ¥14 billion (10%) Strategy III Foreign Talent Management Services ¥0 billion (0%) Permanent Employee staffing ¥14 billion (10%) The construction management engineer domain ¥7.6 billion Strategy I・II Permanent Employee Staffing & Fixed term staffing ¥115.0 billion(80%) Operating Margin High (more than 20% ) Middle (20% or less) Low (10% or less) Low Middle High Invested capital Permanent placement Media Strategy III Foreign Talent Management Services Permanent Employee staffing Strategy I・II Permanent Employee Staffing & Fixed term staffing () = % to Overall revenue (Billions of yen)
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3.28 3.49 3.49 4.19 4.81 5.27 5.79 7.67 10.47 14.29 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 (Plan) 0.33 0.32 0.31 0.36 0.28 0.05 (0.60) (0.61) (0.59) 0.17 Full-scale entry into new graduate and entry- level market 60 2. Medium-term Management Plan (WILL-being 2026) – Strategy I (Domestic W) : Business performance trend of the construction management engineer domain – We achieved profitability in FY2025. In FY2026, we expect further growth and aim to position this domain as one of our core pillars. Business performance trend of WILLOF CONSTRUCTION, Inc. Acquired the company formerly known as C4 Inc. in June 2018 Fourfold increase in revenue compared to the period prior to acquisition (vs FY2018) (CAGR: +22%) ※Based on non-consolidated financial statements under Japanese GAAP ■ Revenue ■ Operating Profit
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61 Entrance ceremony (new graduates) Business partnership with Hanoi University of Civil Engineering in Vietnam (Scene at the signing ceremony) Vietnamese BIM/CIM engineers planned to be assigned We actively recruit individuals without experience in the industry, including new graduates. We focus on foreign worker employment by implementing training programs aimed at undergraduates and graduates of architecture and civil engineering universities in Vietnam, to develop talent capable of thriving as BIM/CIM engineers in Japan. 2. Medium-term Management Plan (WILL-being 2026) – Strategy I (Domestic W) : Initiatives in the construction management engineer domain –
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62 Classroom training Architectural Surveying PracticeFull-body harness fall arrest system special training We support skill development through onboarding programs and regular training sessions, covering areas such as construction industry fundamentals and business etiquette. 2. Medium-term Management Plan (WILL-being 2026) – Strategy I (Domestic W) : Initiatives in the construction management engineer domain –
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70.1% 63 Since 2024, we have adopted the AI learning app “Monoxer*1”. Through promotional measures such as full reimbursement of examination fees for successful candidates, the numbers of examinees and successful candidates have increased. The pass rate for the group using the app for the Second-Class Construction Management Technician Examination*2 is 70.1% (+25.0 points compared to the non-user group). FY2025 full year Successful candidatesExaminees Pass rate FY2025 first half FY2025 second half Results of the group not using the learning app Results of the group using the learning app*3 FY2025 full year FY2025 first half FY2025 second half 182 82 45.1％ 45 17 37.8% 137 65 47.4% 231 162 56 46 82.1% 175 116 66.3% *1 A learning app that promotes memory retention while solving problems. It features functions such as visualization of the learner’s memory status and adaptive learning. *2 First-stage examination *3 The group of learners who were determined by the app to have memorized more than 50% of the problem content provided to them. Successful candidatesExaminees Pass rate +25.0pt 2. Medium-term Management Plan (WILL-being 2026) – Strategy I (Domestic W) : Initiatives in the construction management engineer domain –
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64 Scene at an in-house networking event Scene at the annual award ceremony for engineering employees We strive to improve retention rates by conducting in-house networking events and award systems. 2. Medium-term Management Plan (WILL-being 2026) – Strategy I (Domestic W) : Initiatives in the construction management engineer domain –
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65 2. Medium-term Management Plan (WILL-being 2026) – Strategy II (Domestic W) : Flow of support for foreign worker employment– With a wide range of recruitment channels, we conduct hiring activities in Japan and overseas. The scope of support includes attracting candidates, interviews, training, and follow-up services continue after joining the company, such as support for obtaining qualifications. * In some cases, the retirement from previous job and moving of belongings to new dormitory occurs after permission is issued. - Flow of support for foreign worker employment -
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66 Scene of a Japanese language class Scene of specified skill training (nursing care) 2. Medium-term Management Plan (WILL-being 2026) – Strategy II (Domestic W) : Initiatives in the Foreign Talent Management Services – We actively support foreign workers seeking better employment conditions and skill acquisition. By collaborating with supervisory organizations, we provide support to both host companies and foreign workers.
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67 Follow-up services after starting job (internal award system, qualification support, etc.) (Scene of receiving nursing care worker license)(Scene at an internal award event event) 2. Medium-term Management Plan (WILL-being 2026) – Strategy II (Domestic W) : Initiatives in the Foreign Talent Management Services –
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68 Scenes from our visit to overseas sending organization 2. Medium-term Management Plan (WILL-being 2026) – Strategy II (Domestic W) : Initiatives in the Foreign Talent Management Services –
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Increased hiring through our own mediaIncreased brand recognition Increased search queries for WILLOF To improve awareness of the WILLOF brand, we continued to run terrestrial TV commercials featuring celebrities in 18 prefectures. We also implemented internet advertising on platforms such as YouTube. Compared with FY2023 before the promotion, all of recognition rate, the number of branded search and rate of intention to use have vastly increased. Expected effects of the promotions Promotion results (comparison between FY2023 and post-promotion outcomes as of June 2025 (percentage change)) 69 Commercial introduction website: https://willof.jp/shigoto_update/ Recognition rate of WILLOF*1 Number of branded searches for “WILLOF” (monthly) Rate of intention to use WILLOF*2 Up approx. 320% Up approx. 180% Up approx. 325% *1 Aided recall rate of men and women aged 20 to 59 in the broadcasting regions *2 Men and women aged 20 to 59 in the broadcasting regions who have an intention to change their job etc. 2. Medium-term Management Plan (WILL-being 2026) – Strategy II ・ II (Domestic W) : Brand Promotions –
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(0.02) 0.01 (0.01) 0.02 (0.02) 0.10 0.36 0.43 0.97 1.94 3.35 3.41 1.95 1.42 1.47 0.07 0.09 0.12 0.56 0.98 4.11 13.17 26.28 36.07 36.92 48.75 57.54 55.43 56.45 50.48 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 (Plan) 70 Currently, despite the impact of the deteriorating market conditions due to the post-COVID surge in demand for manpower moderating and due to inflationary pressure, revenue CAGR is 58.7% based on the level in FY2015 when the Company started full scale M&A activities. Raid growth through M&A Pandemic of COVID-19 Post-COVID-19 rebound bubble Concerns over a prolonged slump in market conditions after the surge in permanent placement demand ran its course Operating profit Revenue 2. Medium-term Management Plan (WILL-being 2026) – Strategy Ⅲ (Overseas W) : Overseas Working Business (Performance Trends) – Performance Trends of Overseas Working Business FY2015 – FY2025 Revenue CAGR 58.7%
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71 Contact center Office work Tech-related areas Our main clients include government entities and their affiliated organizations, as well as organizations in the financial and telecommunications industries. We specialize in staffing and permanent recruitment of high-performing white-collar professionals, focusing on the mid- to high- salary talent segment. 2. Medium-term Management Plan (WILL-being 2026) − Strategy III Specific Operations of Overseas Working Business −
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25.9% 30.2% 16.9% 27.0% 56.1% 43.9% The gross profit composition ratios of the Overseas Working Business are 60% from Australia and 40% from Singapore. 72 Singapore and others：43.9% Australia：56.1% ■Temporary staffing gross profit : ■Permanent placement gross profit = 43% : 57% etc. etc. Gross profit 126.5 (FY2025) 2. Medium-term Management Plan (WILL-being 2026) − Strategy III Gross Profit Composition Ratios of Overseas Working Business − (Billions of Yen)
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Primary location Business activities Start of consolidation since (WILL GROUP ownership) Investment *1 *2 1H FY2022 1H FY2023 1H FY2024 1H FY2025 1H FY2026 Sidney In Australia, services include high-end permanent placement and temporary staffing, and temporary staffing for government agencies 2018/8 (100%) 0.82 Revenue 7.91 7.55 6.38 4.30 4.73 Profit 2.9 0.25 0.07 0.05 0.08 Singapore 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. 2019/1 (100%) 3.02 Revenue 1.15 1.14 0.86 0.73 0.58 Profit 0.43 0.35 0.11 0.02 0.04 Brisbane Providing temporary staffing and permanent placement services to government agencies and major corporations in Australia. 2019/4 (100%) 4.18 Revenue 5.67 6.01 6.75 7.17 7.68 Profit 0.72 0.56 0.46 0.34 0.41 Melboure 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. 2018/1 (100%) 1.52 Revenue 8.10 9.40 7.84 6.76 5.86 Profit 0.15 0.35 0.28 0.12 0.14 ■ Trends in revenue and operating profit of major overseas subsidiaries 73 Although subsidiaries continued to struggle due to a deterioration in the macro environment, impairment testing indicated no need for impairment. Investment balance (above 4 companies): ¥9.55 billion Investment balance (consolidated): ¥12.59 billion *1 The investment in each company includes goodwill and identifiable intangible assets. *2 Sales and profit are for the April-September consolidated fiscal period regardless of the timing of consolidated disclosures. Converted to yen at the rates of ¥113/SGD and ¥95/AUD in order to eliminate the effects of foreign exchange rate movements. (Billions of Yen) 2. Medium-term Management Plan (WILL-being 2026) – Strategy III (Overseas W) : Performance trends of major overseas subsidiaries and goodwill balance–
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74 3. External Environment – Japanese Labor Market Outlook – Labor Market Outlook “Gap between labor supply and demand” began in the second half of 2020. The Group aims to minimize the gap between labor supply and demand by maximizing and optimizing career paths of workers that lead them to become experts. Labor supply-and-demand gap by occupation (compared to 2015) *career paths : The sequence and pathway of necessary steps to take toward attaining a desired position or career -300 -200 -100 0 100 200 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Clerical Administration Specialized technology Sales service Manufacturing, transportation and construction (10,000 people) Supply and demand Source: Mitsubishi Research Institute, Inc. “2018–2030 Medium- to Long-Term Outlook for the Japanese and Overseas Economy” ExcessesShortages Growing mismatches 900,000 excess people in manufacturing jobs Delayed emergence of “automation through AI, IoE, and robots” 1,200,000 excess people in clerical jobs “Automation through specialized AI” that has been noticeable since the early 2020’s Shortage of 1,700,000 people for specialized jobs Shortage of people who can lead technological innovation and who are suited to business
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2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 75 建設技術者の需給ギャップ 3. External Environment – Strategy I (Domestic W) : Management Engineer Domain – Gap between construction management engineer supply and demand The construction sector faces an extremely serious labor shortage problem with a projected shortage of up to 47,000 construction management engineers by 2040. Source: Human Resocia Co., Ltd. “2040 Projections for Construction Management Engineers and Technical Jobs (2024 edition)” ■ Number of construction management engineers (projection) ■ Number of construction management engineers in demand (projection) Shortage of 56,000 engineers in 2020 Shortage of 41,000 engineers in 2030 Shortage of 47,000 engineers in 2040 Required number of engineers: 641,000 Employed engineers: 594,000 Required number of engineers: 595,000 (No. of people) Employed engineers: 554,000 Employed engineers: 504,000 Required number of engineers: 562,000 “II. Growth realization case / A. Labor productivity status quo scenario” Estimation of the supply and demand gap for construction management engineers
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0 20 40 60 80 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 2024 76 3. External Environment – Strategy I (Domestic W) : Construction Management Engineer Domain – Construction Sector investment and the market size of human resources services for the construction industry The amount of construction-related investment fell from approximately ¥84 trillion in 1992 to ¥42 trillion in 2011, but as of 2023, it had increased to ¥73 trillion. 73 -Trend of construction-related (nominal values) investment (Trillions of yen)- -Size of human resources services market for construction industry (Billions of yen)- *Source: Prepared by the Company using Ministry of Land, Infrastructure, Transport and Tourism “Estimate of Construction Investment” Government civil engineering Private-sector civil engineering Government construction Private-sector civil construction Forecast CAGR+4% *Source: Yano Research Institute Ltd. “Human Resources Business 2023” 540.0 530.0 560.0 580.0 610.0 630.0 650.0 670.0 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028
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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 77 3. External Environment – Strategy I (Domestic W) : Construction Management Engineer Domain – Workforce of the construction industry The working population in the construction industry is aging: 36.7% are 55 years or older, while 11.7% are 29 years or younger. Although the total number of workers in the construction industry has been declining from its peak in 1997, the demand for construction management engineers is increasing. -Trend of number of construction industry workers (10 thousands of people)- *Source: Prepared by the Company using Statistics Bureau, Ministry of Internal Affairs and Communications “Labour Force Survey” 477 Approximately 30％ decrease 685 23.7% 32.4% 21.5% 16.9% 24.8% 36.7% 19.1% 11.7% 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 -Construction industry: Trend of number of workers by age- All industries: 29 years and younger Construction industry: 29 years and younger All industries: 55 years and older Construction industry: 55 years and older
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8,699 7,371 88% 67% 6500 7000 7500 8000 8500 9000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Working-age population in Japan* Due to the progression of declining birthrates and an aging population, the working-age population in Japan is decreasing year by year. Amid growing concerns over deepening labor shortage, there are increasing expectations for foreign workers to play a vital role. 78 * Population aged 15-64 - Trends in working-age population (10 thousands of people) - ■ Working-age population － Working-age population ratio Approximately 13 million decrease 3. External Environment – Strategy II (Domestic W) : Foreign Talent Management Services – *Source: Prepared by the Company using Statistics Bureau, Ministry of Internal Affairs and Communications “Labour Force Survey”
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79 3. External Environment – Strategy II (Domestic W) : Foreign Talent Management Services – Foreign workers in Japan The number of foreign workers is at a record high. Demand is expected to continue to increase. In the past five years, the number of workers in the manufacturing and service industry have increased. CAGR shows two-digit growth for medical, welfare and the construction industry. -Trend of number of foreign workers (10 thousands of people)- Source: Prepared by the Company using Ministry of Health, Labour and Welfare “State of Foreign Employment” (as of the end of October 2023) Industry Increase in number of people CAGR (5 year) ■ Manufacturing industry 11.5 4.4% ■ Services industry (services not classified elsewhere) 8.8 5.9% ■ Wholesale industry and retail industry 8.6 7.0% ■ Construction industry 8.5 13.8% ■ Medical and welfare 8.2 27.7% ■ Accommodation industry and food services industry 6.7 5.8% ■ Information and communication industry 2.3 6.0% ■ Education and learning support industry 1.2 3.2% ■ Others 8.6 6.7% Total 64.4 6.8% -Increase in number of foreign workers by industry (10 thousands of people) and growth rate- 27 30 34 39 43 48 48 47 49 55 60 10 12 15 19 23 27 28 28 30 32 35 9 11 14 17 19 21 23 23 24 26 30 2 3 4 6 7 9 11 11 12 14 18 1 1 2 2 3 3 4 6 7 9 12 9 11 13 16 19 21 20 20 21 23 27 3 4 4 5 6 7 7 7 8 9 9 5 6 6 7 7 7 7 7 8 8 8 11 13 16 18 20 22 23 23 25 28 31 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 230 CAGR +6.8% 79 2019-2024
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Overseas (Australia, Singapore) Macro Environment We are encountering decreasing numbers of job openings in both Australia and Singapore, in sectors that include IT and finance, following a peak in the first half of 2022. 80 3. External Environment – Strategy III : Overseas W – ■GDP Trends Australia 339.4 As at February 2020 As at May 2020 As at August 2020 As at November 2020 As at February 2021 As at May 2021 As at August 2021 As at November 2021 As at February 2022 As at May 2022 As at August 2022 As at November 2022 As at February 2023 As at May 2023 As at August 2023 As at November 2023 As at February 2024 As at May 2024 As at August 2024 As at November 2024 As at February 2025 As at May 2025 4.3 0 5 10 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25 Mar-25 May-25 ■ Job openings Unit: Thousands ■ Unemployment rate *Source: Australian Bureau of Statistics*Source: Australian Bureau of StatisticsUnit: A $ 1 billion Unit: S $ 1 billion Singapore ■GDP Trends 81.1 As at March 2020 As at June 2020 As at September 2020 As at December 2020 As at March 2021 As at June 2021 As at September 2021 As at December 2021 As at March 2022 As at June 2022 As at September 2022 As at December 2022 As at March 2023 As at June 2023 As at September 2023 As at December 2023 As at March 2024 As at June 2024 As at September 2024 As at December 2024 As at March 2025 2.1 0 5 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 *Source: Labour Market Survey, Ministry of Manpower, Singapore ■ Unemployment rate *Source: Singapore Department of Statistics Unit: Thousands■ Job openings 0 100 200 300 400 500 600 700 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 1000 1500 2000 2500 3000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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60.59 79.19 103.30 121.91 118.24 131.08 143.93 138.22 139.70 134.60 1.96 2.42 2.95 4.14 4.03 5.47 5.31 4.52 2.33 2.50 020.00 FY17.3 (J-GAAP) FY18.3 (J-GAAP) FY19.3 (IFRS) FY20.3 (IFRS) FY21.3 (IFRS) FY22.3 (IFRS) FY23.3 (IFRS) FY24.3 (IFRS) FY25.3 (IFRS) FY26.3(Plan) (IFRS) Sales / Revenue Operating profit 81 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price – Strengthening and Promoting Business Portfolio Management – Will Vision 2020 (FY17.3～FY20.3) Announced on May 10, 2016 Key strategies I Grow the current three core businesses to be No. 1 in the industry II Newly establish three businesses as pillars III Create businesses of a certain scale in business fields other than human resources services Shareholder return policy Aim for a total payout ratio of 30% WILL-being 2023 (FY21.3～FY23.3) Announced on May 12, 2020 and May 12, 2021 Key strategies I Improving profitability through the portfolio shift II Improving productivity through the digital shift III Searching for the next strategic investment domains IV Financial strategy Equity-to-asset ratio: 20% or higher ROIC: 20% or higher Shareholder return policy Total payout ratio based on the earnings forecasts at the beginning of the fiscal year: 30% WILL-being 2026 (FY24.3～FY26.3) Announced on May 11, 2023, and revised on May 13, 2024 Key strategies I Realizing further growth and monetization in the construction management engineer domain II Renewed growth in Domestic Working Business (excluding the construction management engineer domain) III Stable growth in Overseas Working Business Shareholder return policy Progressive dividends and total payout ratio of 30% or higher (Billions of yen) Rapid growth by promoting aggressive M&A, mainly overseas Post-COVID-19 rebound bubble is driving growth in Overseas W while growth in the Domestic W has slowed As part of the business portfolio management (particularly from the perspective of being a best owner), the Company promotes the sale of shares in non-core business subsidiaries and concentrates management resources in strategic investment domains. Back on the path of renewed growth in Domestic W Deterioration of financial position due to fundraising for active M&As and impact of business combination accounting Promoting strengthening of financial position Promoting improvement in profitability *For information on the reallocation of business portfolio, see pages 69-70.
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82 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price – Improving the Financial Condition – 17.30 28.09 43.39 44.60 46.76 52.35 54.93 51.54 49.92 4.14 8.41 4.19 5.23 8.24 11.39 14.63 17.50 17.39 23.3% 29.4% 9.7% 11.7% 17.6% 21.8% 26.6% 34.0% 34.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% － 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 FY17.3 (J-GAAP) FY18.3 (J-GAAP) FY19.3 (IFRS) FY20.3 (IFRS) FY21.3 (IFRS) FY22.3 (IFRS) FY23.3 (IFRS) FY24.3 (IFRS) FY25.3 (IFRS) Total assets Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets Due to the impact of business combination accounting accompanying aggressive M&A, the ratio of equity attributable to owners of parent to total assets temporarily dropped to the 9% level. The Company has been working on improving the financial condition by strengthening balance-sheet management, and the ratio has recovered to 34.8%. In addition, as shown in the following graphs, “goodwill to equity attributable to owners of parent” and “net debt to equity ratio” has also significantly improved. 5.32 5.65 6.16 6.51 8.12 8.74 8.17 4.19 5.23 8.24 11.39 14.63 17.50 17.39 1.3 1.1 0.7 0.6 0.6 0.5 0.5 － 0.2 0.4 0.6 0.8 1.0 1.2 1.4 － 5.00 10.00 15.00 20.00 Mar 31, 2019 Mar 31, 2020 Mar 31, 2021 Mar 31, 2022 Mar 31, 2023 Mar 31, 2024 Mar 31, 2025 Ratio of goodwill to equity attributable to owners of parent (Times) Goodwill outstanding Equity attributable to owners of parent Ratio of goodwill to equity attributable to owners of parent (Billions of yen) 4.59 3.77 1.33 (0.98) 0.56 (1.18) (0.33) 4.19 5.23 8.24 11.39 14.63 17.50 17.39 1.1 0.7 0.2 (0.1) 0.0 (0.1) (0.0) (0.2) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 (5.0) 0.0 5.0 10.0 15.0 20.0 Mar 31, 2019 Mar 31, 2020 Mar 31, 2021 Mar 31, 2022 Mar 31, 2023 Mar 31, 2024 Mar 31, 2025 Net debt to equity ratio (Times) Net debt Equity attributable to owners of parent Net debt to equity ratio
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83 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price – Stock Market Evaluation– Since reaching ¥2,122 in February 2018, the stock price has weakened accompanied by the decrease in trading volume. In addition to the weak stock price, PBR remains at a low level. However, PBR has not fallen below 1, supported by an increase in equity attributable to owners of parent driven by the improved financial condition. 4.14 8.41 4.19 5.23 8.24 11.39 14.63 17.50 17.39 17.35 33.02 26.92 12.57 25.42 28.84 24.49 24.58 22.01 4.2 3.9 6.4 2.4 3.1 2.5 1.7 1.4 1.3 － 1.0 2.0 3.0 4.0 5.0 6.0 7.0 － 5.00 10.00 15.00 20.00 25.00 30.00 35.00 Mar 31, 2017 Mar 31, 2018 Mar 31, 2019 Mar 31, 2020 Mar 31, 2021 Mar 31, 2022 Mar 31, 2023 Mar 31, 2024 Mar 31, 2025 PBR (Times) Equity attributable to owners of parent Market capitalization PBR Stock Price (yen) Trading volume (shares) Breakdown of PBR into components FY17.3 FY18.3 FY19.3 FY20.3 FY21.3 FY22.3 FY23.3 FY24.3 FY25.3 PBR (Times) 4.2 3.9 6.4 2.4 3.1 2.5 1.7 1.4 1.3 PER (Times) 17.2 27.3 17.3 5.3 10.8 8.8 7.6 8.9 19.1 ROE (%) 26.5 19.7 27.6 50.5 35.1 33.5 24.9 17.3 6.6 (Billions of yen) 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 0 500 1,000 1,500 2,000 2,500 2017/3/1 2018/3/1 2019/3/1 2020/3/1 2021/3/1 2022/3/1 2023/3/1 2024/3/1 2025/3/1 Stock price and trading volume Trading volume Stock price *1 The stock price used for calculating PBR and PER is based on the closing price at the end of each fiscal year.B *2 The PER for FY2025 calculated based on forecasts before the revision is 13.4 times.
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1.01 1.21 1.55 2.38 2.36 3.29 3.24 2.78 －3.82 6.15 5.63 4.72 6.74 9.82 13.02 16.07 17.51 26.5% 19.7% 27.6% 50.5% 35.1% 33.5% 24.9% 17.3% 0.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% FY17.3 (J-GAAP) FY18.3 (J-GAAP) FY19.3 (IFRS) FY20.3 (IFRS) FY21.3 (IFRS) FY22.3 (IFRS) FY23.3 (IFRS) FY24.3 (IFRS) FY25.3 (IFRS) ROE Profit attributable to owners of parent Equity attributable to owners of parent ROE 84 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price – Cost of Shareholders’ Equity and ROE – ROE has been declining year by year since peaking in the fiscal year ended March 31 2020 due to the slowdown in profit growthand the increase in equity attributable to owners of parent from the improvement of the financial position.It fell below the cost of shareholders‘ equity (approximately 12%) recognized by the Company in the fiscal year ended March 31, 2025. Assumptions for the Company’s cost of shareholders’ equity Risk-free rate 1.5% + β 1.8 x Risk premium 5.9% (10-year JGB yield) Historical Beta (60 months) = Cost of shareholders’ equity Approx. 12% (CAPM is used as an objective reference value) Inverse of PER FY17.3 FY18.3 FY19.3 FY20.3 FY21.3 FY22.3 FY23.3 FY24.3 FY25.3 1÷PER (%) 5.8 3.7 5.8 18.9 9.3 11.4 13.2 11.3 5.2 PER (Times) 17.2 27.3 17.3 5.3 10.8 8.8 7.6 8.9 19.1 (Reference) Cost of shareholders’ equity based on earnings yield (Billions of yen)
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85 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price – Weighted Average Cost of Capital (WACC) and ROIC – ROIC has been declining year by year since peaking in the fiscal year ended March 31 2022 due to the slowdown in profit growth and the increase in capital resulting from the improvement of the financial position. It fell below the WACC (approximately 8%) recognized by the Company in the fiscal year ended March 31, 2025. 1.08 1.73 1.57 2.44 2.55 3.42 3.35 2.85 1.24 5.96 9.30 13.62 17.57 18.28 19.12 20.14 21.33 21.89 18.2% 18.6% 11.5% 13.9% 13.9% 17.9% 16.6% 13.4% 5.7% － 5.00 10.00 15.00 20.00 25.00 FY17.3 (J-GAAP) FY18.3 (J-GAAP) FY19.3 (IFRS) FY20.3 (IFRS) FY21.3 (IFRS) FY22.3 (IFRS) FY23.3 (IFRS) FY24.3 (IFRS) FY25.3 (IFRS) ROIC NOPAT Invested capital ROIC Assumptions for the Company’s WACC Weight of shareholders’ equity 60% ↓ WACC Approx. 8% (CAPM is used as an objective reference value) (Billions of yen) (Post-tax cost of debt is approximately 1.8%)
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86 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price – Measures to Increase Shareholder Value – Increase in shareholder value (Increase in PBR) PBR 1.3 times (FY25) Market capitalization Equity attributable to owners of parent Increase in ROE 6.6% (FY25) Profit attributable to owners of parent Equity attributable to owners of parent Increase in PER 13.4 times (FY25)* Market capitalization Profit attributable to owners of parent Increase in ROA 2.3% (FY25) Profit attributable to owners of parent Total assets Financial leverage 2.9 times (FY25) Total assets Equity attributable to owners of parent Strengthen earnings power Steadily promote the key strategies, and strengthen earnings power • Realizing further growth and monetization in the construction management engineer domain • Renewed growth in Domestic W (excluding the construction management engineer domain) (Expansion of highly profitable permanent employee staffing and foreign talent management services) The Overseas Working Business is maintaining profitability through cost control in preparation for market recovery. Strengthen balance-sheet management Although human resources services use a business model that does not require a large amount of assets, strengthen management that is conscious of asset efficiency • Reduction of interest-bearing debt • Group finance Ensure appropriateness of financial leverage While prioritizing improvement of the financial condition, consider the appropriateness of financial leverage in preparation for new M&A and other investments • Securing sources of funding for growth investments • Shareholder return policy of “progressive dividends and total payout ratio of 30% or higher” • Flexible share buybacks based on stock price levels Strengthen IR activities Enhance explanations on growth strategies to capital markets • Proactive participation in briefings for individual investors • Enhancement of approach to institutional investors • Provision of feedback on the content of dialogue with investors to the Board of Directors and holding of discussions based on the feedback Share-based incentives for management Introduce share-based incentives according to performance targets • Performance-linked share delivery trust • Compensatory share options with performance achievement conditions In addition to the above, conduct purchases of the Company’s shares by the Representative Director. * PER is calculated based on forecasts before the revision.
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Order of priority High Low 87 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price – Cash Allocation Policy – Prioritize investment in organic growth and M&A activities. We evaluate treasury share acquisitions as needed based on stock price levels and progress in financial results. Cash generation Operating cash flows are generated through renewed growth in the Domestic Working Business. Cash Allocation Policy Growth investment Organic growth investment A ¥3.5 billion SG&A expense increase has been established in the three-year period of the Medium-term Management Plan* M&A, etc. An investment framework of ¥10.0 billion has been established in the three-year period of the Medium-term Management Plan Shareholder returnsDividends Progressive dividends and total payout ratio of 30% or higher Share buyback Carried out flexibly based on stock price levels and progress in financial results Reduction of interest-bearing debt Cash and deposit holdings * Job advertisement expenses, hiring expenses, etc. linked to revenue WACC (around 9%)
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88 *PMI：Post-M&A integration process 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price – M&A Policy – We have established targets and financing rules, and resumed M&A activities that had been halted in the previous mid-term management plan. Targets While focusing on compatibility with our policy of “Maximizing and Optimizing Career Paths to Transform Workers into Experts,” we will identify target companies in domains that can accelerate the growth of the WILL GROUP and contribute to our future operating margin targets. IT, construction and manufacturing and engineer human resources business Placement business for which occupations are expected to expand into experts Education and training business Process • Person responsible for the domain or for the PMI is involved from the initial stages. • We ensure transparency by implementing the Company’s past M&A process. Financing rules • M&A funding comes in order from free cashflow to borrowings. • We achieve at minimum an ROIC that exceeds the Company’s capital costs (WACC: 9%). (setting appropriate prices at the time of acquisition) Governance • We will try to strengthen management to create synergy and make judgments on withdrawal or sale of businesses in a timely manner through monitoring the purchasing plan at the time of investment, carrying out appropriate governance.
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89 5. Sustainability – Value Creation Processes – Value Creation Processes of the WILL GROUP The WILL GROUP combines an HR strategy focused on “increasing career paths,” “supporting long-term service and growth,” and “autonomous career development,” with a business strategy focused on a “permanent employee staffing service,” “foreign talent management service,” “fixed-term staffing service,” “outsourcing (commissioned work),” and “permanent placement service.” By “maximizing and optimizing the positive choices for workers,” the WILL GROUP “resolves job mismatches,” which is a key issue in business.Consequently, we aim to provide value to all stakeholders, improve well-being, and to sustainably improve our corporate value by expanding our management resources, attaining the goals of our Medium-Term Management Plan, and addressing material issue
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90 HR Strategy in Business The WILL GROUP's primary business is the HR services business, which is a service focused on people. HR strategy is often focused on office work staff, but our temporary staffing and “permanent employee staffing” service also focuses on people working on thefront lines. Their growth is our growth. We continuously discover and cultivate potential that people did not even realize they hadand create opportunities for them to demonstrate that potential as we develop unique HR strategy and policies pertaining to “increasing career paths,” “autonomous career development,” and “supporting long-term service and growth.” We believe in everyone's potential and aim to produce as many positive outcomes as possible for society. 5. Sustainability – Human Resources Strategy –
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2. Supporting long-term service and growth 1. Examples of initiatives focused on increasing career paths 91 Bolstering recruitment of those without experience Rather than being confined to previous experience and skills, we are bolstering our hiring of people without experience with a focus instead on individual potential and desire for growth. Drawing on our strengths in category-specific specializations, we hire and train people without experience in a wide variety of sectors including construction management engineers, IT engineers, nursing care, and sales. In the construction management engineers sector that is a strategic focus of the current medium-term plan, roughly 450 new university graduates, one of the largest incoming groups in the construction industry in Japan (source: internal research), participated in our April 2024 new employee welcoming ceremony. We aim to have an environment in place such that people without experience can start their careers with peace of mind, building systems that support their growth and aiming to achieve sustained growth for both people and companies. Staff Career Support Project Drawing fully on the WILL GROUP's assets and resources, we provide unique support for career paths as only our Group can. WILL GROUP career consultants are nationally certified and offer one-on-one service to provide staff opportunities to deepen self-understanding. By offering a wide variety of career choices ranging from telephone operator to IT engineer, and sales to construction management engineer, we aim to maximize and optimize the positive choices for workers. Supporting the acquisition of qualifications We support personnel in acquiring a wide range of specialized professional certifications including construction management engineers in the construction industry, certified care workers in the nursing industry, and CCNA Cisco Certified Network Associate) in the IT industry. With our experienced instructors and up-to-date educational content reflecting the latest industry trends, we provide individuals with opportunities for growth suited to their career plans. Our flexible class schedules and online Q&A are easy to balance with work at client sites. We have the environment in place so people can study while they work, for continuous support of working people's growth. Implementing hybrid staff placements In order to upgrade from standard temporary staffing to outsourcing (commissioned work) that has higher profit margins, WILL GROUP full-time employees Field Supporters) and temporary staff come together as a team to work together at client sites. We are strategically implementing this unique hybrid service in order to meet client needs quickly and precisely. By placing Field Supporters at work sites, we improve job satisfaction among temporary staff while also facilitating smoother communication between clients and staff, reducing time-consuming work such as workplace environment improvements 5. Sustainability – Human Resources Strategy –
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3. Autonomous career development initiatives 92 Support for acquiring career consultant certifications We provide support for employees pursuing the career consultant national certification with the aim of boosting career counseling skills among Group employees. Specifically, we help cover the costs involved in attaining the certification, perform roleplay sessions run by certification holders, and set up special courses for study, in addition to providing certification allowance for certification holders. Career consultants are career formation support professionals who provide advice and various other forms of support to enable working people to thrive and succeed in their own way. They will listen to you, discover goals together with you, and then follow alongside until you achieve your target. Career advancement support through reskillin WILLOF WORKʼs vision of a “Chance-Making Company” encompasses a belief in the potential of all people and the aspiration to be a company that provides opportunities to as many working people as possible. The WILL GROUP provides streamlined, integrated services including career counseling, reskilling courses, and job change support in order to provide more than just ordinary support — so that we can provide people with the opportunity to succeed in a new career through reskilling. 5. Sustainability – Human Resources Strategy –
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Rather than limiting career development within a single business division, we aim to provide career paths and growth opportunities unique to the Will Group by leveraging the full breadth of group-wide assets and resources. The LTV (Lifetime Value) of our permanent employee staff is approximately 3.5 times higher than that of our fixed-term staffing staff.*1 93 Example: From operator to IT engineerExample: From sales to construction management engineer Measures FY2023 FY2024 FY2025 Specific efforts Transition from fixed-term staffing staff to permanent employee*2 271 individuals 331 individuals 399 individuals Strengthening of career support structures Enhancement of information provision and learning opportunities Utilization of technology Global career support Among others Improvement of growth support score*3 34.9% 53.4% 51.0% – Results of career advancement and growth support – *1 When calculating gross profit based on the expected number of days of employment *2 Includes transition to permanent employee of other companies *3 The percentage of respondents who answered “yes” to the question, “Do you feel that WILLOF is helping you grow?” 5. Sustainability – Realization of Staff Career Paths and Growth Support –
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94 5. Sustainability – Material Issues – Ideal State • Ensure the well-being of everyone who works for the WILL GROUP Indicators • Well-being score Ideal State • Be able to provide tailored growth programs for each employee and support their acquisition of specialized skills • Maximize and optimize employees’ career paths to achieve the highest possible lifetime value (LTV) Indicators • Number of permanent employees on assignment for non-fixed term staffing service • Number of career advancements from fixed- term to permanent • positions Growth support score etc. Ideal State • Establish an operational system for developing and continually reviewing ways to minimize damage from climate change, while enabling fast business recovery Indicators • Formulation of BCP • GHG emissions • Workplace safety preparedness score Ideal State • Provide an environment where diverse talents are respected regardless of gender, nationality, disability, or age and offer equal opportunities, enabling every person to reach their full potential • Embody our core values by passing down and transforming corporate culture (DNA) • Ensure that every employee has a strong sense of ownership of the company, their team, and their work, leading to high levels of employee engagement. Indicators • Job satisfaction score • Growth satisfaction score • Percentage of female managers • Percentage of mid-career managers • Percentage of non-Japanese managers • Employment rate of people with disabilities • Percentage of women seeking promotions (Manager and above) • Wage gap between male and female employees etc Ideal State • Ensure effective oversight and supervision for swift decision-making and business execution, promoting transparency and integrity in management Indicators • Enhancing the effectiveness of the Board of Directors • Percentage of outside directors • Percentage of female directors • Separation of management and oversight etc. Material Issues We will address job mismatches, bridging the gap in skills between our customers’ requirements and our staff’s abilities, all aligned with the policy outlined in our Medium-Term Management Plan: Maximizing and Optimizing Career Paths to Transform Workers into Experts. For these reasons, we will prioritize improving human capital, a commitment we have held since our founding. We will also respond to the social demand for combatting climate change as we establish a robust governance system. We anticipate that these initiatives will improve the well-being of our Group’s employees, ultimately contributing to the growth of our corporate value.
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95 5. Sustainability – Material Issues – Process for identifying and reviewing material issues The Group identified material issues by interviewing stakeholders, mapping the value chain, and examining social values and the ideal state of the Company, according to international guidelines such as the Global Reporting Initiative (GRI) Standards, the United Nations Global Compact and SDGs. Then, we reviewed the material issues based on deliberations at the Sustainability Committee and advice from external experts. We will continue our discussions to meet the challenges and expectations of society as the external environment changes.
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96 5. Sustainability – Environment – Environmental policies To sustainably and safely protect the global environment, through reductions in energy use, the Group will proactively take the initiative for addressing climate change, the reuse of resources, and conserving biodiversity. Targets The Group has established a target to reduce total CO2 emissions by 20% by the fiscal year ending March 31, 2031, compared with the fiscal year ended March 31, 2020. This applies to not only the CO2 emitted from offices, but also the CO2 from employee’s business activities and throughout the service’sentire lifecycle. Our wide-ranging initiatives will help prevent global warming, while we are working with clients, business partners, andemployees. Trends in CO2 emissions Based on the Green Value Chain Platform from the Ministry of the Environment and the Ministry of Economy, Trade and Industry,we calculate CO2 emissions at WILL GROUP , INC. and wholly owned subsidiaries in Japan.Starting with the disclosure for the fiscal year ended March 31, 2023, we have reviewed the companies corresponding to Scopes 1 and 2 and items to be included in the calculation, and we added Scope 3. The emission sources applicable to each scope are as follows. Scope 1 CO2 emissions from direct use of gas and gasoline Scope 2 CO2 emissions through the use of electricity Scope 3 CO2 emissions of Category 6 Business Travel) and Category 7 Employee Commuting) Initiatives in response to the Task Force on Climate-related Financial Disclosures TCFD recommendations The Will Group has expressed the support for the TCFD recommendations and joined the TCFD Consortium in January 2023. For details on the four core disclosure items recommended by the TCFD- governance, strategy, risk management, andmetrics and targets-please refer to the Initiatives for the Environment section of our website.
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97 5. Sustainability － Social (Domestic HR Strategy) － Good performance from individual success and strong teams The WILL GROUP‘s biggest strengths are both our “successful individuals” and “strong teams.” Through analysis of surveys conducted across multiple years, we firmly believe that fully drawing out individual potential and enhancing the quality of team relationships will lead to better performance and well-being throughout the entire organization. In order to encourage individuals to succeed, we look at employeesʼ unique talents and latent potential while focusing on building an environment that will cause that potential to bloom. Specifically, we provide support for individualsʼ career development, provide various opportunities for skill improvement, and create opportunities to participate in challenging, ambitious projects. Through this, we have laid the foundation for every employee to seek out self-actualization while contributing to the organization. At the same time, we focus on building strong teams that aggregate these individualsʼ combined strength to create bigger results. We workto cultivate a culture that respects diversity and draws effectively on our respective differences as strengths, promotes open and constructive communication, and builds relationships of trust between members. This synergy between individual success and strong teams is the source of the WILL GROUP's competitive edge. While each member of the team acts on their individual strengths, their combined strength as a team is maximized as well, enabling them to flexibly adapt to changes in the market and create new value.
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98 Project promoting women's success at the workplace In order to create positive change in the world, it is essential that a variety of individuals thrive without being held backby stereotypes created by society. In this area, we are especially focused on women and are implementing DE&I initiatives towards achieving a target of30% female managers in Japan by 2030. At present, around 60% of male employees are interested in upper management positions, but this is true of just 25% of femaleemployees. Therefore, we are pursuing initiatives to select specific female personnel for special leadership training to develop their ambition andconfidence so that they seek out their own style of leadership. We also have various other measures in place, and these combined initiatives have succeeded in increasing the percentage of female managers in Japan from 7.4% to 16.1% over the last four years. Moving forward, wewill continue to bolster DE&I initiatives to achieve success among a variety of different individuals. Dantotsu WILL Project This is a Group-wide project focused on creating internal frameworks and opportunities to “boost job satisfaction to the very peak by enhancing employeesʼ work, play, learning, and lives to the very peak.” In the past, the same sort of initiative was conducted for top management at business divisions, but in the pure interest of wanting managers and executives and employees all involved in improving job satisfaction at the WILL GROUP , the Dantotsu WILL Project was created in FY2025. As is characteristic of the WILL GROUP , participants are all volunteers and form a cross-company team that includes everything from new university graduates to company directors. On their own initiative and through their own action, project members strive to build an organization where job satisfaction is high. Through ambitious new initiatives crossing the boundaries of job and business division, we will continue engaging in these projects to enhance job satisfaction at the company. 5. Sustainability － Social (Domestic HR Strategy) －
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99 Creating Opportunities for Learning and Growth, Supporting Career Development In order to maintain competitiveness and achieve continuous growth within the global HR market, it is essential that we hire and develop exceptional employees. At the core of Learning & Development L&D) initiatives led by WILL GROUP Asia Pacific WAP) is the operation of WILL Academy, our dedicated platform for personnel development. In response to feedback gathered from our employees during the Voice of Workforce survey conducted across WAP , we identified a strong demand for enhanced learning opportunities. Taking these insights to heart, we launched WILL Academy—a dedicated platform for learning and growth. This initiative aims to improve engagement and performance while fostering the sharing of best practices across our brands. Mentoring Program This is one of the initiatives within WILL Academy. In a nine-month program focused on promoting employee growth and fostering unity throughout WAP , employees from different brands work together as pairs. Through conversations conducted with each pair once a month, mentors improve their active listening ability and coaching skills, while their mentees promote their own career development. The effects of these sessions are further amplified during the quarterly skill improvement sessions. This program has received much praise from participants, leading to increased satisfaction toward the career development opportunities provided. On top of enhancing individual growth, it has also strengthened our organization, such as by building relationships and mutual understanding between brands. Employee Award Program We have set up two award programs. The Circle of Excellence is the highest honor given to individuals or teams who have achieved outstanding results over the course of a year. Staff are evaluated based on various factors including performance, innovation and leadership. Recipients are then recognized organization-wide as one of WAP's key contributors. The WOW award, on the other hand, is given once a month. We look at smaller daily successes and then choose its recipients. Our leadership team selects noteworthy conduct that makes one think, "Wow!", and presents the recipients with digital award certificates and gift cards. In this way, the Circle of Excellence honors long-term endeavor, while the WOW award keeps a spotlight on daily contributions. Together, they give form to WAP's culture that is based on gratitude and growth, and bring out each employee's utmost potential. 5. Sustainability － Social (Overseas HR Strategy) － － Examples of Initiatives －
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100 5. Sustainability – Corporate Governance – Changes in corporate governance The Company is working to further improve corporate governance to ensure transparent, sound management. In 2016, we adopted asystem of two representative directors with a board of directors where one-third or more of the directors are outside directors. A femaleoutside director was elected in 2020 and the Sustainability Committee was established in 2022, establishing a system that can respondquickly and flexibly to changes in the business environment. The WILL GROUP’s governance structure • The Company is a company with an Audit & Supervisory Board and has established advisory committees on nomination and remuneration. • The Company has five directors, of whom three are independent outside directors (one of whom is a female). • The Company has three Audit & Supervisory Board members, all of whom are independent outside Audit & Supervisory Board members (two of whom are females). • The Nomination Committee has eight members, of whom six are independent independent outside directors and independent outside Audit & Supervisory Board members . • The Remuneration Committee has three members, all of whom are independent outside directors. Composition of the Board of Directors and Audit & Supervisory Board ■Independent/Outside ■Inside Directors ■Female ■Male Composition of the Nomination Committee Composition of the Remuneration Committee ■Independent/Outside ■Inside Directors ■Independent/Outside ■Inside Directors 6 (75%) 2 (22%) 5 (63%) 3 (37%) 6 (75%) 2 (25%) 3 (100%)
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Officer structure Chairman: Ryosuke Ikeda President Yuichi Sumi Outside Director (Independent) Kunihiro Koshizuka Outside Director (Independent) Masato Takahashi Outside Director (Independent) Yuko Ichikawa Full-time Outside Audit &Supervisory Board Member (Independent) Shizuka Sawada Full-time Outside Audit &Supervisory Board Member (Independent) Sachie Ikeda Audit & Supervisory Board Member (Independent) Katsumi Nakamura 101 5. Sustainability – Corporate Governance –
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Executive Officer, Domestic (Japan) Strategy Hideo Murakami Executive Officer, Administration Satoshi Takayama Executive Officer, Business Design Hironobu Takeda Executive Officer, Overseas Strategy Satoshi Kitagawa Executive Officer, IT Strategy Daisuke Yoshimatsu 102 Executive Officer, Human Resources Kumi Kogahara Executive Officer, Corporate Planning Hiroshi Kitamura 5. Sustainability – Corporate Governance – Officer structure
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Corporate Governance Structure 103 5. Sustainability – Corporate Governance –
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Overseas (Australia, Singapore) Macro Environment ■ IR Contact: WILL GROUP , INC. IR Group Tel: + 81-3-6859-8880 Mail: ir@willgroup.co.jp Forecasts 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.