Will : Supplementary Materials for the First Quarter of the Fiscal Year Ending March 31, 2021

Supplementary Materials

for the First Quarter of the Fiscal Year Ending March 31, 2021

August 7, 2020

WILL GROUP, INC. (Tokyo Stock Exchange, First Section / Stock code: 6089)

Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved

Contents

1. 1Q FY3/21 Highlights

II. FY3/21 Earnings and Dividend Forecasts III. Reference

• In this material, the term "net sales" refers to either "net sales" under Japanese GAAP or "revenue" under IFRS, and "equity ratio" refers to either "equity ratio" under Japanese GAAP or "ratio of equity attributable to owners of parent to total assets" under IFRS.

Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved	22

I. 1Q FY3/21 Highlights

Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved	33

1Q FY3/21 Highlights

COVID-19 negatively affected performance, but the call center outsourcing and care support/nursery school sectors performed well

	(Billions of yen)			Vs. 1Q FY3/20
	1Q FY3/21
	1Q FY3/20
	Change	% change
	Revenue	29.37	28.63	-0.73	-2.5%
	Gross profit	6.23	5.86	-0.37	-5.9%
	(Gross margin)	(21.2%)	(20.5%)	(-0.7pt)
	Operating profit	1.06	0.98	-0.07	-7.0%
	(Operating margin)	(3.6%)	(3.5%)	(-0.2pt)
	Profit before tax	1.03	0.97	-0.05	-5.6%
	Profit attributable to owners of	0.62	0.63	+0.00	+0.6%
	parent
	EBITDA		1.51
	(Operating profit + Depreciation and	1.50	+0.00	+0.6%
	amortization
				Number of employees: 4,870
				(+382 from the end of FY3/20)
	Copyright (C) 2020	WILL GROUP, INC. All Rights Reserved		44

1Q FY3/21 Revenue: Breakdown of Year-on-Year Changes

1,033

-0.20

	-0.64
Lower revenues in	Lower permanent
Sales Outsourcing	placement
and Factory	revenue
Outsourcing
sectors

29.3

(Billions of yen)

+0.59

-0.48

Higher revenues from sales of real estate for sale

28.6

1Q FY3/20	Domestic WORK	Overseas WORK	Others	IFRS	1Q FY3/21
	Business	Business		adjustments

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1Q FY3/21 Operating Profit: Breakdown of Year-on-Year Changes

(Billions of yen)

					+0.15
	-0.11	-0.05	-0.01	-0.04	Decrease in
1.06	Lower profit in	Lower permanent	More upfront	the provision
Higher	0.98
Sales Outsourcing	placement revenue,	investments in	personnel	for paid leave
	and Factory	received	the HRTech	expenses
	Outsourcing	employment	field	and IT
	sectors	support subsidy		investment
1Q FY3/20	Domestic WORK Overseas WORK	Others	Corporate	IFRS	1Q FY3/21
	Business	Business		expenses	adjustments

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FY3/21 Forecasts Impact of COVID-19

	Segments	Sectors	COVID-19 assumptions for initial forecasts		First quarter COVID-19 impact and responses
	Domestic	Sales	Sales down due to restrictions on store operations and		The state of emergency ended in late May. Telecommunications sector demand was
	WORK	support	sales promotion decline due to fewer special events.		firm but market conditions remained challenging in the apparel and sales promotion
	Business		Lower gross profit due to increase in paid time off and		categories. Increased sales activities in the stable telecommunications sector.
			payments to employees placed on leave.		The negative effect of furlough payments and other expenses on the gross profit was
					smaller than expected in the first quarter, partly because customers covered part of
					these expenses. Anticipate no effect during the remainder of the fiscal year.
		Call center	Decline in call center operations but some people		The number of people assigned to call centers declined due to social distancing but
			continue to work from home. New orders are down.		this sector performed well because of higher staffing rates. More paid leave
			Lower gross profit due to increase in paid time off.		expenses were expected to reduce gross profit, but these expenses were negligible.
		Factory	Only a small impact of COVID-19 in the food sector		The food sector generally performed well but orders decreased due to lower output
			but a downturn in orders because of lower production		of food products for restaurants as people stayed home.
			in other sectors. Lower gross profit due to increase in		In other sectors, orders were down because of declining production and the volume
			paid time off and payments to employees placed on		of new orders was low. Increased sales activities targeting current customers in food
			leave.		and other sectors that are performing well. Expect higher paid leave expenses to
					continue affecting gross profit until the end of the first half.
		Care	For new orders and recruiting, forecast higher sales		No difficulties with recruiting people as applicants are shifting to this sector from
		support/	and earnings because of inflows from other industries		other business categories. However, temporary staffing orders are declining due to
		nursery			more direct employment in these business sectors. More sales activities to add new
		schools			customers.
		HR support	The number of job openings is declining but there is		Permanent placement orders in May were down 40% from one year earlier mainly
		for	still very strong demand for placement services for		because clients revised recruiting plans, but job openings and orders started
		startups	senior executives and engineers		recovering in June.
		Others	Temporary school closings are affecting assistant		Schools reopened after the end of the state of emergency in late May, so COVID-19
			language teacher staffing; for construction		had no effect on assistant language teacher staffing. For construction management
			management engineer staffing, new orders are down		engineer staffing, increasing sales activities to add new customers because demand
			but no significant impact of COVID-19		for these engineers remains strong and the recruiting environment is improving.
	Overseas	Singapore,	Expect a decline in permanent placements because of		Permanent placement orders were down as economic downturns, lockdowns and
	WORK	etc.	fewer orders from companies. For temporary staffing,		other effects of COVID-19 stagnated economic activity, but orders are expected to
	Business	Australia	only a small impact in major categories like the public		start recovering in July. Temporary staffing services are performing well and
			sector, IT, financial services and legal services, but		emphasis has shifted to measures for more growth of this business.
			anticipate fewer orders in other market sectors.
			Copyright (C) 2020 WILL	GROUP, INC. All Rights Reserved		77

Domestic WORK Business

Revenue and segment profit (Billions of yen)	(Billions of yen)	1Q FY3/21	1Q FY3/20	Change
		Results	Results

19.9	19.7	Revenue	Revenue	19.78	19.98	-1.0%

	15.2
12.8	5.6%
	3.5%
	0.8
	0.4

17.1

4.2%

0.7

5.5%

4.9%

1.0 0.9

Segment profit to net sales

Segment profit

Segment profit

0.97

1.09

-10.7%

Topics

 COVID-19 reduced revenue in the sales outsourcing and factory

outsourcing sectors, but revenue was strong in the call center

outsourcing and care support/nursery school sectors.

1Q	1Q	1Q	1Q	1Q
FY3/17	FY3/18	FY3/19	FY3/20	FY3/21

 Controlled recruiting expenses based on the level of new orders

(down ¥120 million from 1Q FY3/20)

Number of workers on assignments (person)

		4,246	4,393	4,491	4,815	4,880	5,429
	3,999
3,624							5,226
7,771	8,595	9,693	9,676	10,172	10,105	10,144	9,342
						8,015
5,221	5,262	5,507	5,590	5,472	5,861	5,787	5,834	5,259
4,671	4,499	4,708	5,258	4,655	4,730	4,778	4,389	3,673

Care support

Factory

Call center Sales support

-203

Vs.4Q FY3/20

-1,327

Vs.4Q FY3/20

-575

Vs.4Q FY3/20

-716

Vs.4Q FY3/20

1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
FY3/19	FY3/19	FY3/19	FY3/19	FY3/20	FY3/20	FY3/20	FY3/20	FY3/21

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Domestic WORK Business（Sales and Operating profit by sector ）

The call center outsourcing and care support/nursery school sectors performed well

(Billions of yen)

Sales by Sector

Operating profit by sector

19.98	19.78
1.9	2.1	Others
0.3	HR support for startups
0.3
2.8

3.3	Care support/ nursery

5.8

5.4 Factory

3.9

4.2	Call center

5.4	4.5	Sales support

1.09	0.97
0.1
0.0
0.1	0.0	Others
	0.0	HR support for startups
0.3	0.2	Care support/ nursery
	0.2	Factory
0.2
	0.3	Call center
0.4
	0.2	Sales support

1Q	1Q	1Q	1Q
FY3/20	FY3/21	FY3/20	FY3/21

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(Billions of yen)

Domestic WORK Business (Business sector sales)

COVID-19 negatively affected the apparel, other sales support and factory (except food) sectors

Care support Sales center Call Factory support/ nursery

					0.5	0.7	0.7
		0.6			1.2	1.2
		0.6	0.6	0.3	1.3	0.5	Others
		0.3
	0.5	1.1	1.1	0.2	0.4	Construction management engineers
	0.2	1.1	3.0	0.2	1.3
	1.0	0.2	0.3	0.3	3.1	0.2	0.3	IT engineers
0.6	0.3	2.6	0.2	0.2			3.2	0.3	HR support for startups
0	0.2		2.6	2.8
2					3.3	Care support/ nursery schools
0.1	2.4				3.0
2.2		2.9			3.0	2.8
		2.7	2.8
2.4	2.5			2.5	Factory except food
			3.1
		2.8			3.1	2.9
2.3	2.5	2.7	3.0	0.4		Food factory
	2.9
0.3		0.5
0.2	0.2	0.2	0.4	0.8	0.5
1.1		0.9	0.6	Finance
0.9	1.0		1.0	0.9	2.9		0.8
2.7	2.7	2.7	2.7	2.6	2.9	2.9	0.8	Office
	2.9	Call center, etc
		2.2			2.7
1.8	1.8	1.8	1.6	2.1	2.0
	1.3	Other sales support
0.4	0.5	0.5	0.6	0.7	0.7	0.7
0.7	0.2	Apparel
3.2	3.2	3.1	3.1	3.2	3.0	2.9	2.7	2.9	Telecommunications

1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
FY3/19	FY3/19	FY3/19	FY3/19	FY3/20	FY3/20	FY3/20	FY3/20	FY3/21

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Overseas WORK Business

Revenue and segment profit (Billions of yen)

1Q FY3/21	1Q FY3/20	Change
Results	Results

9.0 8.4 Revenue

Revenue

8.45

9.09

-7.0%

			4.6%
			5.7	3.1%		Segment
	3.0%			2.7%	profit to net
		2.31.0%	0.2	0.2	0.2	sales
		Segment
0.5						profit
0.0	0.0

Segment profit

0.23

0.28

-18.2%

1Q	1Q	1Q	1Q	1Q
FY3/17	FY3/18	FY3/19	FY3/20	FY3/21

Major components of changes in segment profit

(Billions of yen)

1Q FY3/20
0.28
Foreign exchange impact	-0.03
Reduction in SG&A					+0.08
expenses

Topics

• Permanent placement was lower but temporary staffing remained solid in Australia and Singapore
• Received an employment support subsidy (approx.
  ¥250 million) as a countermeasure against COVID-19 in Singapore

Increase in temporary						+0.14		Initially	1Q FY3/21	1Q FY3/20	Change for ¥1 difference/y
staffing gross profit						Forex sensitivity
							assumed	Results	Results
Decrease in sales from						-0.49	Revenue	Profit
permanent placement
					AUD	¥70	¥70	¥76	¥380 mln	¥10 mln
Subsidy income			+0.25
				SGD	¥75	¥76	¥80	¥90 mln	¥0 mln
1Q FY3/21
0.23

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Business Portfolio Changes in Japan and Overseas

Domestic WORK Business Portfolio (Gross profit basis)

■FY3/20

Perm:40%

Final year of New Medium-term Management Plan

■1Q FY3/21

Perm:39%

→:Temp:40% Perm:60%

Difficulties in the permanent placement sector

Temp:60%Temp:61%

Overseas WORK Business Portfolio (Gross profit basis)

Final year of New Medium-term	→:Temp:60% Perm:40%
Management Plan

■FY3/20	■1Q FY3/21	Permanent
placements down
Perm:55%		about 30% from 1Q
	FY3/20 but the stable
Perm:41%		temporary staffing
	sector continues to
		perform well despite
Temp:45%		the COVID-19
Temp:59% pandemic
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Others

Revenue and segment profit (Billions of yen)

							0.8
				0.5	0.2			Revenue
0.0		0.1
									Segment
-0.0	-0.0		-0.0
		-0.0	profit
					-0.0
1Q	1Q	1Q		1Q	1Q

FY3/17 FY3/18 FY3/19 FY3/20 FY3/21

Other business activities

	Organic		M&A
HRTech			Investment funds
				(HRTech)
			（Daywak）
			（Visamane）
			(Hourmane)

	1Q FY3/21	1Q FY3/20	Change
	Results	Results
Revenue	0.88	0.29	+205.3%
Segment profit	(0.09)	(0.08)	-

Topics

• Higher revenue due to the sale of real estate for sale
• Upfront investments (¥130 million) in the HRTech field
• Number of stores using the Visamane

foreign worker management system	2,920	3,016	2,953 2,956
2,720

2,200 2,432

1,800

945

1,058 1,064 1,150 1,300

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Financial Indicators

All financial indicators are improving on an adjusted equity basis*

	End of June 2019	End of September 2019	End of December 2019	End of March 2020	End of June 2020
Adjusted ratio of equity	14.6%	16.4%	18.1%	19.3%	20.9%
attributable to owners of parent
to total assets
	1.1 times	1.0 times	0.8 times	0.4 times	0.3 times
Adjusted net debt to equity ratio

(Interest-bearing debt - Cash and deposits) / Adjusted equity attributable to owners of parent

Ratio of goodwill to adjusted equity attributable to owners of parent

Goodwill outstanding /

Adjusted equity attributable to owners of parent

0.9 times

0.8 times

0.7 times

0.7 times

0.6 times

EBITDA	-	-	-	1.6 times	2.0 times
Adjusted interest-bearing debt

to EBITDA ratio

Interest-bearing debt (excluding short- term borrowings) / Forecast EBITDA

*Adjusted equity represents total equity, net of written put option.

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Consolidated Balance Sheet

(Billions of yen)	March 31,	June 30,	Change
2020	2020
Current assets	22.0	22.1	+0.0
Non-current assets	22.5	22.8	+0.2
Total assets	44.6	44.9	+0.3
Current liabilities	21.5	22.7	+1.2
Non-current liabilities	15.9	14.4	-1.4
Total liabilities	37.4	37.2	-0.2
Total equity	7.1	7.7	+0.6
Total liabilities and	44.6	44.9	+0.3
equity
Ratio of equity attributable to	11.7%	12.9%	+1.2pt
owners of parent to total
assets

(Billions of yen)

Major components of changes

● Total assets
・ Cash and cash equivalents	+0.8
・ Trade and other receivables	-0.8
・ Right-of-use assets	-0.1
・ Goodwill	+0.2
・ Other intangible assets	+0.3
・ Other non-current assets	+0.1
● Total liabilities
・ Other financial liabilities (current)	+2.0
・ Income taxes payable	-0.6
・ Borrowings (non-current)	-0.5
・ Other financial liabilities (non-current)	-0.9

●Total equity
・Capital surplus	-0.2
・Exchange differences on translation
of foreign operations	+0.5
・Retained earnings	+0.1

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Consolidated Statement of Cash Flows

(Billions of yen)	1Q	1Q
	FY3/20	FY3/21
Profit before tax	1.0	0.9
Depreciation and amortization	0.4	0.5
Income taxes paid	(0.8)	(0.8)
Other	0.1	0.6
Net cash provided by (used in) operating activities	0.8	1.2
Purchase and sales of property, plant and	(0.2)	(0.1)
equipment, etc.
Purchase and sales of shares of subsidiaries	(1.5)	0.0
Other	0.0	0.5
Net cash provided by (used in) investing activities	(1.7)	0.3
Net increase (decrease) in interest-bearing debt	1.7	(0.7)
Purchase and sales of shares of subsidiary not	(0.8)	0.0
resulting in changes in the scope of consolidation
Dividends paid	(0.3)	(0.4)
Other	0.0	0.4

(Major

Components)

Decrease in trade receivables

Decrease in M&A investments

Free Cash Flows

(Billions of yen)

1.6

-0.9

1Q	1Q
FY3/20	FY3/21

	Net cash provided by (used in) financing activities	0.4	(0.8)		Decrease in
					acquisition of
	Effect of exchange rate changes	0.0	0.1
		additional
	Net increase (decrease) in cash and cash	(0.4)	0.8		shares of
	equivalents				consolidated
	Cash and cash equivalents at end of period	6.3	6.8		subsidiaries
	Free cash flows	(0.9)	1.6
	(Operating activities + Investing activities)

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II. FY3/21 Earnings and Dividend Forecasts

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FY3/21 Forecast

The forecast uses conservative assumptions because of the uncertain outlook, including the risk of a second wave of COVID-19 during the remainder of the fiscal year

(Billions of yen)	FY3/20	FY3/21	FY3/21	Difference
	(Initial forecast)	(Revised forecast)
Revenue	121.91	120.00	120.00	0.0
Domestic WORK Business	84.43	83.62	82.69	-0.93
Overseas WORK Business	36.07	34.87	35.97	+1.09
Others	1.54	1.50	1.82	+0.32
IFRS adjustments	(0.14)	-	(0.48)	-0.48
Operating profit(Operating margin)	4.14	2.00	2.50	+0.50
(3.4%)	(1.7%)	(2.1%)
Domestic WORK Business	5.06	3.50	3.83	+0.33
Overseas WORK Business*	0.97	0.79	0.88	+0.09
Others	(0.35)	(0.41)	(0.42)	-0.00
Adjustments	(1.86)	(2.46)	(2.38)	+0.07
IFRS adjustments*	0.33	0.58	0.59	+0.00
Profit attributable to owners of parent	2.38	1.00	1.25	+0.25
EBITDA	6.13	4.00	4.50	+0.50

• In the initial forecast, the overseas employment support subsidy income as a countermeasure against COVID-19 used an IFRS adjustment. But the subsidy has been changed to the Overseas WORK Business and the initial forecast has been revised accordingly.

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Revised FY3/21 Forecast (Segments and Sectors)

							(Billions of yen)
	Segments	Sectors	FY3/20	FY3/21	FY3/21	Change
					(Initial forecast)	(Revised forecast)	(%)
				Upper: Net sales	Upper: Net sales	Upper: Net sales	Upper: Net sales
			Lower: Operating profit	Lower: Operating profit	Lower: Operating profit	Lower: Operating profit
	Domestic	Sales support		23.14	19.70	19.70	0.0%
	WORK Business
			1.79	1.23	1.28	+3.5%
		Call center		16.45	16.40	16.69	+1.8%
				0.99	0.89	1.10	+22.9%
		Factory		23.74	23.48	22.33	-4.9%
				1.34	0.96	0.75	-21.2%
		Care support/ nursery		12.05	13.25	13.66	+3.1%
				0.36	0.42	0.58	+37.4%
		HR support for startups		1.26	-	0.30 (Only 1Q	-
				result)
				0.30	-	0.04 (Only 1Q	-
				result)
		Others		7.72	10.00	10.00	0.0%
				0.25	(0.01)	0.07	-
	Overseas WORK	Singapore, etc.		36.07	34.87	35.97	+3.2%
	Business	Australia
		0.97	0.79	0.88	+11.4%
		Copyright (C) 2020	WILL GROUP, INC. All Rights Reserved		199

Dividend Forecast

Due to the higher earnings forecast, the dividend forecast has been raised by ¥3 per share for consistency with the total return ratio target of 30%

	FY3/20	FY3/21	FY3/21
		(Initial forecast)	(Revised forecast)
Year-end dividend	¥23 per share	¥14 per share	¥17 per share
Total return ratio*	25.1%	31.1%	30.2％

Total return ratio: The sum of dividends and the cost of share repurchases divided by profit attributable to owners of parent

■ Dividend per share and total return ratio

Dividend per share

Total return ratio

													30.2%
27.6%				27.4%
25.8%			25.1%
			25.7%

				¥18	¥18	¥23	¥17
		¥14
¥10
	FY3/16	FY3/17	FY3/18	FY3/19		FY3/20	FY3/21
								(Forecast)
		J-GAAP			IFRS
The dividend per share has been adjusted to reflect a 2-for-1 stock split on December 1, 2016.
		Copyright (C) 2020	WILL GROUP, INC. All Rights Reserved		200

III. Reference

Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved	211

Responses to COVID-19

Current Actions

Employees

• Encouraging people to work at home, limiting face-to-face meetings, frequent use of online and conference call meetings

Business

• Retain employees to be prepared for the return to normal business after the end of this crisis. Shift workers to operations less affected by the spread of COVID-19
• Partial reviewing new investment plans in order to remain profitable and maintain financial soundness

• Responding with speed and flexibility to this crisis while closely monitoring changes in the current "with-corona" business conditions and looking ahead to the post-corona world

Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved	222

Segment Results

Domestic WORK Business

• Revenue

	1Q	2Q	3Q	4Q
FY3/19	17,149	18,734	20,242	19,702
FY3/20	19,984	21,752	21,628	21,098
FY3/21	19,782

Overseas WORK Business

■ Revenue

	1Q	2Q	3Q	4Q
FY3/19	5,798	6,286	6,959	7,197
FY3/20	9,098	8,944	9,308	8,723
FY3/21	8,457

Others

■ Revenue

1Q		2Q	3Q	4Q
FY3/19	578	264	286	422
FY3/20	297	375	434	483
FY3/21	885

(Millions of yen)

■ Segment profit

	1Q		2Q	3Q	4Q
FY3/19		715	913	1,226	1,210
FY3/20	1,091	1,360	1,341	1,279
FY3/21		974
■ Segment profit
	1Q		2Q	3Q	4Q
FY3/19		268	208	101	-149
FY3/20		250	-7	496	232
FY3/21		232
■ Segment profit
	1Q		2Q	3Q	4Q
FY3/19		-37	-55	-13	42
FY3/20		-84	-134	-72	-80
FY3/21		-98

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Geographic (Overseas) Segment Results

Geographic (Overseas) Segments

• Revenue (Asia)

	1Q	2Q	3Q	4Q
FY3/19	1,338	1,412	1,442	1,700
FY3/20	1,923	1,967	1,999	2,070
FY3/21	1,276

(Millions of yen)

• Revenue (Australia)

	1Q	2Q	3Q	4Q
FY3/19	4,468	4,881	5,523	5,508
FY3/20	7,184	7,299	7,014	6,672
FY3/21	7,181

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Overseas (Australia, Singapore) Macro Environment

			Market conditions for WILL									Economic indicators
			GROUP
			Permanent placement orders	■ Real GDP growth rate (YoY change)					■ Unemployment rate
			are declining because of		*Source: Australian Bureau of Statistics					*Source: Australian Bureau of Statistics
			slowing economic growth and	1.5
			COVID-19 but a recovery is												8
			expected to start in July.	1												7
			Temporary staffing orders are	0.5
			firm due to steady demand in												6
			the public sector, IT, financial	0												5
			services and legal services
			sectors.	-0.5												4
			1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
				2018	2018	2018	2018	2019	2019	2019	2019	2020
			Permanent placement services	■ Real GDP growth rate (YoY change)					■ Unemployment rate
			are down from FY3/20 because	*Source: Singapore Department of Statistics					*Source: Singapore Department of Statistics
			of slowing economic growth
			and COVID-19 is making this	6												3
			decline even larger. Operations	4
			are shifting to temporary	2												2.5
			staffing services because there	0
			is still certain demand for
			-2												2
			hiring people even during this
			economic downturn.	-4
				-6												1.5
					1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
						1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
				2018	2018	2018	2018	2019	2019	2019	2019	2020		2018	2018	2018	2018	2019	2019	2019	2019	2020
			Copyright (C) 2020	WILL GROUP, INC. All Rights Reserved								255

Performance of Major Overseas Subsidiaries

(Billions of yen)

	Primary location	Business activities	Consolidated	Investment
			since	*1
			(WILL GROUP
			ownership)
	Singapore	Providing permanent placement and
		consulting services focused on HR	Jan. 2019
		primarily in Singapore, through wholly-	1.48
		owned subsidiaries in Hong Kong, Japan,	(51%)
		U.S., China, Australia and UK.
	Brisbane	Providing temporary staffing and
		permanent placement services to	Apr. 2019
		government agencies and major	1.46
		corporations in Australia	(60%)
	Melbourne	Providing temporary staffing and
		permanent placement services for
		office work and call center operations	Jan. 2018	0.83
		to agencies and companies in various
		(80%)
		sectors such as the government,
		telecommunications, resources and
		appliance manufacturing in Australia.

*2	1Q	1Q	YoY
	FY3/20	FY3/21	change

Sales	0.33	0.24	-26.2%
Profit	0.10	0.04	-58.6%
*3
Sales	1.55	1.51	-2.6%
Profit	0.09	0.14	+58.4％
Sales	2.88	3.07	+6.7%
Profit	0.10	0.07	-29.7%

*1 The investment in each company includes goodwill and identifiable intangible assets.

*2 Sales and profit are for the April-June consolidated fiscal year regardless of the timing of consolidated disclosures.

Converted to yen at the rates of ¥75/SGD and ¥70/AUD in order to eliminate the effects of foreign exchange rate movements.

*3 Profit is profit before tax after the amortization of identifiable intangible assets, internal transactions and one-time expenses.

Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved	266

Breakdown of Revenue by Region/Contract Type

Human resources services in Japan

Overseas human resources services

(Billions of yen)

25.0

20.0

15.0

10.0

	20.1
20.2	(-1%)		Other
1.5	1.3
	Permanent placement
0.6	0.7
3.6	3.3		Consignment service
4.7	4.2	Hybrid staffing service

9.0	8.4
(-7%)
1.2		Permanent
0.7	placement

5.0

0.0

9.910.7

Temporary staffing

7.9	7.8	Temporary
		staffing

1Q FY3/20

1Q FY3/21

1Q FY3/20

1Q FY3/21

Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved	277

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.

• IR Contact:

WILL GROUP, INC. Financial Department

Tel: [phone]