Notice Concerning Revision of Earnings Forecast for the Fiscal Year Ending December 31, 2021

	November 10, 2021
To whom it may concern:
Company name	Sun* Inc.
	Code: 4385 TSE Mothers
Representative	Taihei Kobayashi, CEO
Contact	Yusuke Hattori, Director
Mail	[e-mail]

Notice Concerning Revision of Earnings Forecast for the Fiscal Year Ending December 31, 2021

Sun* Inc.(the "Company") hereby announce that our Board of Directors has resolved at a meeting held today to revise the earnings forecast for the fiscal year ending December 31, 2021 (January 1, 2021 through December 31, 2021), which was announced on February 10, 2021, as follows.

1. Revision of full-year earnings forecast for the fiscal year ending December 31, 2021

	Sales	Operating	Ordinary	Net income	Net income
	income	income	per share
Previous forecast (A)	million yen	million yen	million yen	million yen	yen
6,608	1,100	1,153	983	26.70
Revised forecast (B)	8,081	1,239	1,346	1,168	30.95
Amount of change (B-	1,473	139	193	185	4.25
A)
Percentage change (%)	22.3	12.6	16.7	18.8	15.9
(Reference) Results	5,367	886	926	804	22.93
for the previous year

2. Reason for revision

In order to promote the digitalization of all industries, Sun* group has named its services for co- creating new businesses and products the "Digital Creative Studio Business", and has divided this single-segment business into two service lines, "Creative & Engineering" and "Talent Platform". In the first nine months of the current fiscal year, sales in the mainstay Creative & Engineering business increased 51.5% year on year to 4,826 million yen due to strong growth in unit prices per client, and sales in the Talent Platform business increased 14.7% year on year to 897 million yen due to a recovery in corporate recruitment needs. As a result, overall sales continued to grow at a

high rate, reaching 5,723 million yen (up 44.2% year-on-year).

While aggressively hiring new personnel to meet the increase in orders and investing in new revenue model businesses, the SG&A ratio declined due to improved productivity, resulting in an operating income of 1,129 million yen (up 62.8% year on year). As a result, operating income was 1,129 million yen (up 62.8% from the same period of the previous year), and the progress rate against the forecast as of February 10, 2021 is over 100%.

In light of the above, we have determined that an upward revision to the full-year earnings forecast for the fiscal year ending December 31, 2021 is necessary, taking into account the earnings forecast for the fourth quarter and the costs of hiring personnel and investing in R&D for further growth in the next fiscal year and beyond. For the fiscal year ending December 31, 2021, we forecast net sales of 8,081 million yen (up 50.6% year on year), operating income of 1,239 million yen (up 39.8% year on year), ordinary income of 1,346 million yen (up 45.3% year on year), and net income of 1,168 million yen (up 45.2% year on year).

【Notes on Financial Forecasts】

The forward-looking statements, including earnings forecasts, contained in this document are based on information currently available to the Company and certain assumptions that the Company considers reasonable.Therefore actual results may differ.