Operating Result Forecast

Operating results forecast for FY2022(from March 1, 2021 to February 28, 2022)

(i) Business risks related to COVID-19
 In FY2021, client companies’ reduction in hiring activities and hiring budgets following the COVID-19 pandemic had aspillover effect on their job advertisements. The Company has been making efforts to increase the number of subscriber companiesby holding online business meetings and utilizing sales tools developed internally, which enables us to capture clients’ hiring needson a timely basis. It is also striving to establish a broad customer base to avoid being significantly affected by the operatingperformances of certain industries and clients. We will continue our efforts to further strengthen our direct marketing salescapabilities, as well as expanding our user and customer bases through new services and promotions.
 In the AI/RPA business, the need for business automation has been increasing rapidly amid changes in work styles due to thepandemic, such as the spread of working from home. We will continue to strive to expand our customer base in the small andmedium-sized company sectors, as well as increase the lineup of subscription-based products packaged for each workflow of thecustomer which can be introduced easily and continue to be used for an extended period. We will also make efforts to extendcustomers’ subscription periods and boost upselling by strengthening our “customer success” system to offer continuous supportafter the introduction of products.
 There is also a risk of employees contracting COVID-19 and causing hindrance to the Company’s business and operations.However, since the end of January 2020 the Company has been managing its offices with a focus on preventing employees frombeing infected based on its “Guidelines for Preventing the Spread of COVID-19,” as well as striving to ensure the safety ofemployees by recommending working from home, staggered commuting and work rotation. In addition, to prevent the spread ofinfection within and outside the company, we are striving to reduce the risks of infection such as by making it a rule to conductbusiness meetings with clients online. We will continue our efforts to prevent the spread of the virus and strive to achieve a quickrecovery of earnings.

(ii) Outlook of FY2022
 With regard to the macro environment in FY2022, we expect economic activities to normalize over late FY2022 and FY2023due to the progress in vaccination combined with the easing of financial and monetary policies in Japan and other major economiczones, although the number of COVID-19 infections in Japan is expected to see modest rises and falls for the time being.
 Amid such circumstances, we expect operating margins of the personnel recruiting services business to return to FY2020 levelsin the second half of FY2022 as we continue our efforts to increase the number of subscriber companies through various salesmeasures.
 In the DX business, we expect sales to significantly increase due to continued efforts to increase business activities by salesrepresentatives of the personnel recruiting services business, as well as through the expansion of the product lineup.
 The full-year consolidated operating results forecast for FY2022 based on the above is as follows.

Please also refer to the charts indicating the results and forecasts of monthly sales and operating margin, which are the basis of the above forecasts.