Recruit : Annual Report (translated from Yukashouken Houkokusho)*

This document has been translated from the original document in Japanese ("Yukashouken Houkokusho"), which is legally required for Recruit Holdings as a listed company in Japan to support investment decisions by providing certain information about the Company for the fiscal year ended March 31, 2024 ("FY2023"), under Article 24, Paragraph 1 of the Financial Instruments and Exchange Act of Japan.

The Japanese original document was filed to the Director-General of the Kanto Local Finance Bureau in Japan on June 21, 2024. Please refer to "Note Regarding Reference Translation" below as a general warning for this translation document.

Document Name	Annual Report translated from Yukashouken Houkokusho
Filing Date	June 21, 2024
Fiscal Year	FY2023 (From April 1, 2023 to March 31, 2024)
Company Name in English	Recruit Holdings Co., Ltd.
Title and Name of Representative	Hisayuki Idekoba
Representative Director, President and CEO
Address of Head Office	1-9-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
Telephone Number	[phone]
Contact Person	Junichi Arai
Senior Vice President
Contact Location	1-9-2 Marunouchi, Chiyoda-ku, Tokyo, Japan

Definition of Abbreviations

Abbreviation	Definition
Recruit Holdings, the Holding Company	Recruit Holdings Co., Ltd. on a standalone basis
the Company, Recruit Group, We, Our	Recruit Holdings Co., Ltd. and its consolidated subsidiaries
SBU	Strategic Business Unit
BIP Trust	Board Incentive Plan Trust
Q1	Three-month period from April 1 to June 30
Q2	Three-month period from July 1 to September 30
Q3	Three-month period from October 1 to December 31
Q4	Three-month period from January 1 to March 31
FY2022	Fiscal year from April 1, 2022 to March 31, 2023
FY2023	Fiscal year from April 1, 2023 to March 31, 2024
FY2024	Fiscal year from April 1, 2024 to March 31, 2025

Definition of Financial Measures

Financial Measures

Adjusted EBITDA

Adjusted EPS

Adjusted profit

Non-recurring income/losses

Definition

Operating income + depreciation and amortization (excluding depreciation of right-of-use assets) + share-based payment expenses ± other operating income/expenses

Adjusted profit / ((number of issued shares at the beginning of the period + number of issued shares at the end of the period)/2 - (number of treasury stock at the beginning of the period +number of treasury stock at the end of the period)/2)

Profit attributable to owners of the parent ± non-recurring income/losses (excluding non-controlling interests) ± tax reconciliation related to certain non-recurring income/losses

Gains or losses from disposals of shares of associates, expenses relating to company restructuring, gains or losses from the sale or impairment of property and equipment, and income and expense items that the Company believes are unusual or non-recurring in nature which do not reflect the Company's underlying results of operations

Changes of Company Name

The names of the companies in this document are as of March 31, 2024, unless otherwise indicated. The names of the companies that changed during FY2023 are indicated below.

Company Name	Company Name	Date of Change
(prior to the change)	(as of March 31, 2024)
Glassdoor, Inc.	Glassdoor LLC	September 2023
HR Tech Funding Service Limited	RGF TREASURY SERVICES LIMITED	November 2023

Also, the names of the companies within Recruit Group that changed between April 1, 2024 and June 21, 2024 are indicated below.

Company Name	Company Name	Date of Change
(as of March 31, 2024)	(as of June 21, 2024)

RGF STAFFING APEJ PTY LTD

RGF STAFFING ANZ PTY LTD

April 2024

Supplementary Information

All comparisons in this report are year over year unless otherwise stated.

Average Exchange Rate During The Period

(In yen)	FY2022		FY2023
US dollar		135.50	144.59
Euro		140.99	156.75
Australian dollar		92.66	95.06

Forward-Looking Statements

This document contains forward-looking statements, which reflect the Company's assumptions, estimates and outlook for the future based on the Company's plans and expectations as of March 31, 2023 unless the context otherwise indicates. There can be no assurance that the relevant forward-looking statements will be achieved. Please note that significant differences between such forward-looking statements and actual results may arise due to various factors, many of which are outside the Company's control, including changes in economic conditions, changes in individual users' preferences and enterprise clients' needs, competition, changes in the legal and regulatory environment including changes in laws and regulations or guidance, interpretation, enforcement or practice relating to laws and regulations, fluctuations in foreign exchange rates, climate change or other changes in the natural environment, the occurrence of large-scale natural disasters, and other factors. Accordingly, readers are cautioned against placing undue reliance on any such forward-looking statements. The Company has no obligation to update or revise any information contained in this document based on any subsequent developments except as required by applicable law or stock exchange rules and regulations.

Note Regarding Reference Translation

This document has been translated from the Japanese language original for reference purposes only and may not be used or disclosed for any other purpose without the Company's prior written consent. In the event of any conflict or discrepancy between this translated document and the Japanese language original, the Japanese language original shall prevail in all respects. The Company makes no representations regarding the accuracy or completeness of this translation and assumes no responsibility for any losses or damages arising from the use of this translation.

Third-Party Information

This document includes information derived from or based on third-party sources, including information about the markets in which we operate. These statements are based on statistics and other information from third-party sources as cited herein, and the Company has not independently verified and cannot assure the accuracy or completeness of any information derived from or based on third-party sources.

U.S. Disclaimer - Unsponsored American Depositary Receipt ("ADR")

The Company does not support or encourage, and has not consented to, the creation of any unsponsored ADR facilities in respect of its securities and in any event disclaims any liability in connection with an unsponsored ADR. The Company does not represent to any depositary institution, bank or anyone nor should any such entity rely on a belief that the Web site of the Company includes all published information in English, currently, and on an ongoing basis, required to claim an exemption under U.S. Exchange Act Rule 12g3-2(b).

Table of contents

Company Overview	1
Key Performance Indicators	1
History	3
Business	8
Major Subsidiaries and Associates	13
Employees	16

Business Overview	20
Management Philosophy and Strategies	20
Sustainability Policy and Actions	30
Risk Factors	43
Management's Discussion and Analysis of Financial Position, Results of Operations,	69
and Cash Flows
Material Contracts	75
Research and Development	75

Facilities	76
Overview of Capital Expenditures	76
Status of Major Facilities	76
Facility Establishment and Disposal Plans	77

Status of Shares, Acquisition of Treasury Stock and Dividend Policy	78
Status of Shares	78
Status of Acquisition of Treasury Stock	97
Basic Policy on Profit Distribution and Dividends	99

Corporate Governance	100
Corporate Governance Overview	100
Leadership	125
Status of Audits	151
Compensation	157
Stocks Held by the Company	165

Financial Information	171
Consolidated Financial Statements and Notes	172
Non-consolidated Financial Statements and Notes	235
Other Information	250
Outline of Share-related Administration of the Company	250
Information on the Parent Company of the Holding Company	251
Other Reference Information	251
Information on the Guarantor of the Holding Company	255

Independent Auditor's Reports

256

Company Overview

Key Performance Indicators

The Company - Consolidated Basis

				(In millions of yen, unless otherwise stated)
				IFRS
	Fiscal year	FY2019	FY2020	FY2021	FY2022	FY2023
	Fiscal year end	March 2020	March 2021	March 2022	March 2023	March 2024

Revenue

Profit before tax

Profit for the year

Profit attributable to owners of the parent

Comprehensive income attributable to owners of the parent

Equity attributable to owners of the parent

Total assets

2,399,465	2,269,346	2,871,705	3,429,519	3,416,492
226,149	168,502	382,749	367,767	426,241
181,249	131,690	297,722	271,671	354,596
179,880	131,393	296,833	269,799	353,654
151,649	208,633	395,869	377,977	553,909
988,449	1,091,571	1,363,776	1,627,010	2,000,922
1,998,917	2,196,613	2,423,542	2,793,281	3,144,646

Equity attributable to owners of the parent per share (Yen)

Basic earnings per share (Yen) Diluted earnings per share (Yen)

Ratio of equity attributable to owners of the parent (%)

Return on equity attributable to owners of the parent (%)

Price earnings ratio (Times)

Cash flows from operating activities

Cash flows from investing activities Cash flows from financing activities

Cash and cash equivalents at the end of the year

Number of employees

Average number of contract employees

599.65	667.96	847.45	1,030.33	1,295.40
108.27	79.83	181.68	168.59	225.99
108.07	79.70	180.83	167.44	222.90
49.4	49.7	56.3	58.2	63.6
18.4	12.6	24.2	18.0	19.5
25.8	67.7	29.8	21.6	29.7
303,325	286,597	439,610	438,193	535,362
(88,993)	(40,373)	(70,738)	(32,676)	(68,789)
(192,721)	(172,713)	(254,371)	(252,060)	(334,648)
421,253	501,043	669,551	877,370	1,136,858
49,370	46,800	51,757	58,493	51,373
2,530	1,720	1,896	1,915	1,952

• The consolidated financial statements have been prepared based on IFRS as issued by the International Accounting Standards Board.

Recruit Holdings' Annual Report translated from Yukashouken Houkokusho FY2023

Company Overview | 1

The Holding Company - Standalone Basis

(In millions of yen, unless otherwise stated)

	Fiscal year	FY2019	FY2020	FY2021	FY2022	FY2023
	Fiscal year end	March 2020	March 2021	March 2022	March 2023	March 2024

Operating revenue

Ordinary income

Net income

Common stock

Total number of shares issued (Shares)

Equity

Total assets

Equity per share (Yen) Dividend per share (Yen)

Interim dividend per share (Yen)

Earnings per share (Yen)

Diluted earnings per share (Yen)

102,061	27,324	42,029	417,404	153,932
94,065	19,574	33,978	406,315	139,488
85,854	14,063	23,996	410,423	126,116
40,000	40,000	40,000	40,000	40,000
1,695,960,030	1,695,960,030	1,695,960,030	1,695,960,030	1,649,841,949
872,799	805,322	672,979	926,772	879,782
1,409,458	1,372,520	1,423,107	1,666,307	1,768,645
528.44	491.99	417.09	585.40	567.58
30	20	21	22	23
15.0	9.5	10.5	11.0	11.5
51.68	8.54	14.69	256.47	80.59
51.58	8.53	14.62	254.72	79.49

Capital adequacy ratio (%) Return on equity (%)

Price earnings ratio (Times) Payout ratio (%)

Number of employees1

Average number of contract employees

61.8	58.6	47.2	55.5	49.6
9.5	1.7	3.3	51.4	14.0
54.1	632.1	368.6	14.2	83.2
58.1	234.1	143.0	8.6	28.5
158	138	136	128	119
9	4	5	5	5

Total shareholder return (%)

Comparative indicator: TOPIX total return index (%)

Highest share price (Yen)2

Lowest share price (Yen)2

89.4	172.5	173.5	118.4	215.9
90.5	128.6	131.2	138.8	196.2
4,615	5,568	8,180	5,676	6,767
2,442.5	2,240.5	4,435	3,284	3,583

• The number of employees excludes contract employees.

• The highest and lowest share prices are those quoted on the First Section of the Tokyo Stock Exchange before April 3, 2022, and on the Prime Market of the Tokyo Stock Exchange after April 4, 2022.

Recruit Holdings' Annual Report translated from Yukashouken Houkokusho FY2023

Company Overview | 2

History

Organizational Transitions

The Company was founded in March 1960 in Minato-ku, Tokyo, Japan as the University Newspaper Advertising Company, publishing job advertisements in university newspapers. Following that, we began handling advertising for multiple university newspapers, and in October 1960, we established the University Advertising Co., Ltd. as a corporate organization. In 1962, we launched our publication Invitation to Companies, and in April 1963 changed the company name to the Japan Recruitment Center, Inc. In August 1963, the company name was further updated to Japan Recruit Center, Inc, a predecessor to today's Recruit Holdings, Co., Ltd. Please refer to the timeline below for further information regarding organizational transitions.

Business Fields Expansion

Recruit Group was established in 1960 as a job search magazine for university students. In 1962, we developed the "Ribbon Model," our guiding business model in which we create platforms that connect business clients with individual users. With this model, we have since widened our range of HR businesses to meet mid-career recruiting, placement, and staffing needs. We have also expanded into the life events and lifestyle fields to serve the housing, automobile, bridal, travel, dining, and beauty industries. Recently, we have introduced software as a service ("SaaS") business tools to support operations within small and medium-sized enterprises ("SMEs"), such as retailers and restaurants.

Digital Transformation

The Company began using computers at a time when their use was still limited, putting digitization into practice for increased efficiency. Following the introduction of a supercomputer in the 1980s, we transitioned from paper magazines to online media in the 1990s, and then to mobile platforms. Not only did this allow for faster and more convenient delivery of information, but it also transformed how individual users and business clients interact, through the development of groundbreaking tools such as online reservation systems. Today we continue the evolution of digital solutions through the development of SaaS solutions.

In the 2000s, the Company entered the global market with a bridal business in China. Although this ended with a withdrawal, this experience helped us

to shape our mergers and acquisitions ("M&A") strategy, and we later

Globalizationsucceeded in expanding our staffing businesses to the US, Europe, Australia and beyond. Further, the acquisitions of Indeed, Inc.1 in 2012 and Glassdoor LLC1 in 2018 have led to the successful establishment of our HR Technology SBU, spearheading the growth of the Company as a whole and bringing the number of countries we serve to over 60.

Recruit Holdings' Annual Report translated from Yukashouken Houkokusho FY2023

Company Overview | 3

March 1960	Foundation. Started as an advertising agency specializing in job ads in
	university newspapers.
1962	Published Invitation to Companies which consolidated recruitment
	information for university students and established the two-sided
	marketplace business model.
August 1963	Japan Recruit Center, Inc. was established, a predecessor to today's Recruit
	Holdings Co., Ltd.
1968	Introduced the IBM 1130 Computing System, becoming the first company in
	Japan to use this groundbreaking computer.
1971	Established Recruit Computer Print, a company specializing in digitized
	pre-production processes focused on adopting leading-edge publishing
	technologies.
1976	Launched operations in the housing information industry in response to the
	oil crisis induced recession, and achieved rapid growth.
1980	Launched Travail, Japan's first career change magazine for women,
	published 5 years prior to Japan's legislative enactment of The Equal
	Employment Opportunity Law.
April 1984	Changed the company name to Recruit Co., Ltd.
1984	Launched the magazine Car Sensor. It was born from a training program for
	new employees and focused on the used car market.
1985	Against the backdrop of the privatization of Japan's telecommunications
	industry, launched Information Network Service operations and Remote
	Computing Service operations.
1985	Established Recruit U.S.A. Inc. to support Japanese companies with local
	hiring in the US.
1987	Established the Supercomputer Research Institute, aimed at developing
	insights into how to meet the challenges and opportunities of the
	approaching era of a data-driven society.
1990	Launched Jalan, a magazine about travel and leisure optimized for easier
	booking.
1993	Launched Zexy, a bridal information magazine born from our new internal
	business proposal system, "Ring."
1995	Launched Mix Juice (Currently2 ISIZE) marking the start of our online media
	business.
1996	Digitized our job information magazines and launched RB on the NET
	(Currently2 Rikunabi) and Digital B-ing (Currently2 Rikunabi Next).
2000	While the Company expanded its businesses in the field of life events such
	as housing and bridal, it also launched lifestyle information magazine
	HotPepper (Currently2 Hot Pepper Gourmet) which contains dining guides
	and coupons.
2000	Launched ISIZE Travel (Currently2 Jalan net), a platform for making
	accommodation reservations online.

Recruit Holdings' Annual Report translated from Yukashouken Houkokusho FY2023

Company Overview | 4

2004	Launched the bridal information magazine Zexy in China. This experience
	helped the Company shape M&A strategy for global expansion.
2007	Launched Hot Pepper Beauty, an online beauty salon appointment
	reservation service.
January 2008	Moved the headquarters to Gran Tokyo SOUTH TOWER (Marunouchi 1-9-2,
	Chiyoda-ku, Tokyo, Japan)
July 2010	Acquired US-based staffing company, The CSI Companies, Inc.1 and
	implemented our Unit Management System. With this acquisition, we began
	M&A-driven global expansion.
2011	Launched Juken Sapuri (Currently2 Study Sapuri), an online learning service
	for college entrance exams, then expanded into languages and other
	subjects, successfully growing into an affordable high-quality online learning
	platform.
2011	Acquired Staffmark Group, LLC1 in October, Advantage Resourcing Europe
	B.V. (Currently2 RGF Staffing UK Limited)1 in December and expanded our
	staffing business in the US and Europe.
2012	Developed SALON BOARD, a cloud-based online reservation management
	system that improves operational efficiency at beauty salons through
	digitization, replacing paper-based reservation books.
October 2012	Through an incorporation-type split the Company became a holding
	company, Recruit Holdings Co., Ltd., and established the following
	companies:
	- Recruit Sumai Company Ltd.
	- Recruit Marketing Partners Co., Ltd.
	- Recruit Lifestyle Co., Ltd.
	- Recruit Technologies Co., Ltd.
	Through a joint incorporation-type split by Recruit Office Support Co., Ltd.1
	newly established:
	- Recruit Administration Co., Ltd. (Currently2 Recruit Co., Ltd.)1
	Through an absorption-type split, transferred businesses to the following
	100% subsidiaries of the Company:
	- Recruit Career Co., Ltd.(Former Recruit Agent Co., Ltd.)
	- Recruit Jobs Co., Ltd.(Former Recruit HR Marketing)
	- Recruit Communications Co., Ltd.(Former Recruit Media
	Communications Co., Ltd. )
October 2012	Acquired Indeed, Inc.1 (founded in 2004), a job search engine based in the
	US. This marked our full entry into the HR technology business, which has
	since revolutionized the HR industry through disruptive digital innovation.
2013	Released AirREGI, a point of sale (POS) system for SMEs of various
	industries such as retailers and restaurants, using smartphones and tablets
	to enhance operational efficiency of their businesses.
October 2014	Listed publicly on the First Section of the Tokyo Stock Exchange.
2015	Expanded AirREGI's functions and also launched AirPAY, a payment system
	service that accepts various payment methods including credit cards,
	electronic money, and QR Codes3.
2015	Established Recruit Institute of Technology (Currently2 Megagon Labs) to
	work with external organizations on research and development of AI,
	machine learning, and other new technologies.

Recruit Holdings' Annual Report translated from Yukashouken Houkokusho FY2023

Company Overview | 5