Insource : KPI(Key Performance Indicators) Progress Report for February,2022

To Whom It May Concern,

Disclaimer: This document is a translation of the Japanese original for reference purposes only.

March 1, 2022

Insource Co., Ltd.

Takayuki Funahashi

Representative Director, President and CEO (Code number: 6200, The First Section of the

Tokyo Stock Exchange)

KPI (Key Performance Indicators) Progress Report for February, 2022

-The number significantly increased in On-Site Training (110% YoY), Open Seminars (115% YoY),

outright purchases (198% YoY) and rental viewers (232% YoY) of e-Learning/video Business

Insource today announced KPI (Key Performance Indicators) Progress Report for February, 2022.

1.Training Business

In February 2022, due to the 6th wave of COVID-19, both On-Site Training and Open Seminars were shifted to online training. The training demand of companies remains high, and the number of On-Site Training conducted increased to 110.6% YoY to 1,082 times, of which online training were 760 times (composition ratio was 70.2%). The number of attendees at Open Seminars increased to 115.7% YoY to 7,498, of which online attendees were 6,896 (composition ratio was 92.0%). There were 205 cases of postponement or cancellation of On-Site trainings, mainly at public sectors.

(1) Monthly number of On-Site Training conducted			(Unit: time)
			FY2020			FY2021
			September	October	November	December	January	February
Number of trainings conducted		1,175	1,671	1,795	1,341	1,034	1,082
	(YoY)		(101.9%)	(110.2%)	(116.9%)	(109.7%)	(139.4%)	(110.6%)
	Number of trainings conducted		798	834	858	629	565	760
	(YoY)		(67.9%)	(49.9%)	(47.8%)	(46.9%)	(54.6%)	(70.2%)
	Number of trainings conducted		70	62	48	42	44	48
*Consolidated subsidiaries are included	*DX-related trainings: IT and computer skills trainings
(2) Monthly number of attendees at Open Seminars			(Unit: attendee)
			FY2020			FY2021
			September	October	November	December	January	February
Number of attendees		7,551	7,713	8,555	8,172	6,537	7,498
	(YoY)		(137.2%)	(107.0%)	(114.0%)	(110.4%)	(124.5%)	(115.7%)
	Conducted online		6,537	6,647	7,378	7,096	5,709	6,896
	(Composition ratio)		(86.6%)	(86.2%)	(86.2%)	(86.8%)	(87.3%)	(92.0%)
	DX-related trainings		816	806	837	1,007	889	914
*Consolidated subsidiaries are included.

2. IT Services Business

The number of paid subscribers for Leaf (HR support system) reached 450 (+8 MoM) organizations and the number of its users increased to 1,914,250 (+40,545 MoM). The cumulative number of orders delivered for Stress Check Support Service increased to 212 since the beginning of the fiscal year (+58 YoY).

(3) "Leaf (HR support system)": Total number of paid subscribers (organizations)

(Unit: organization)

				FY2020			FY2021
				September	October	November	December	January	February
	HR support system, "Leaf"		412	420	426	432	442	450
		(MoM)		(+2)	(+8)	(+6)	(+6)	(+10)	(+8)
		(changes from end of previous FY)		(+164)	(+8)	(+14)	(+20)	(+30)	(+38)
	No. of users		1,756,583	1,800,591	1,826,620	1,848,770	1,873,705	1,914,250
	No. of customization		144	2	5	15	24	41
	* total no. since the beginning of FY
	Web conversion service for		128	129	130	134	135	136
	appraisal forms
		(MoM)		(+5)	(+1)	(+1)	(+4)	(+1)	(+1)

*The number of customizations shows the number of organizations which add their own functions when implementing Leaf. *Figures above are calculated at the end of each month.

(4) Stress Check Support Service: Number of orders delivered and orders to be delivered

(Unit: organization)

			FY2020			FY2021
			September	October	November	December	January	February
	No. of orders delivered (by month)		36	9	26	67	53	57
	Cumulative no. of orders		343	9	35	102	155	212
	delivered *since the beginning of FY
	(YoY)		(+61)	(+1)	(+21)	(+46)	(+55)	(+58)
	No. of orders to be delivered		195	235	280	235	207	164
	(by month)

*Note that after clients' inspection, the actual sales will be counted.

*This service has the highest number of deliveries in March every year.

*The number of new orders received is difficult to correlate with sales, so it will be changed to only the number of orders delivered and the number of orders remaining from October 2021.

3. e-Learning/video Business

In terms of the number of outright purchases, sales to the private sectors were strong, especially for anti- harassment, mental health-related contents. As for the number of rental viewers, there was an increase in use by public sectors, mainly for management or women's advancement-related contents.

(5) e-learning/Videos: Total numbers of subscription IDs per month and the number of contents sold

(Unit: ID) (Unit: Content)

			FY2020			FY2021
			September	October	November	December	January	February
	No. of video contents sold		146	72	94	105	105	212
	(Outright purchase) *by month
	Cumulative no. since the beginning of FY		-	(38.1%)	(276.5%)	(169.4%)	(131.3%)	(198.1%)
	No. of rental viewers *by month		656	1,238	1,560	1,340	1,136	1,450
	Cumulative no. of rental viewers since the		(669.4%)	(529.1%)	(292.1%)	(416.1%)	(422.3%)	(232.4%)
	beginning of FY
	STUDIO (e-Learning)		54,674	57,112	57,557	58,085	58,584	60,791
	(MoM)		(+292)	(+2,438)	(+445)	(+528)	(+499)	(+2,207)

*Calculation takes place at the end of every month.

*The number of outright purchases is calculated from October,2021.

4. Client base

The total number of registered WEBinsource clients increased to 16,945 (+255 organizations compared to the previous month). We are steadily gaining subscribers toward our target of 2,400 for this fiscal year.

(6) WEBinsource: Total number of subscribers (organizations)

(Unit: organization)

	FY2020			FY2021
	September	October	November	December	January	February
No. of new subscribers	220	213	204	256	219	255
No. of accumulated subscribers	15,798	16,011	16,215	16,471	16,690	16,945
(Progression rate：%)	(92.2%)	(8.9%)	(17.4%)	(28.0%)	(37.2%)	(47.8%)

*Figures above are calculated at the end of each month.

5. Contents development

The number of new contents developed was 22 for training (On-Site training) and 30 for e-learning. We have set a target of 300 for training and 210 for e-learning for FY2021, and we are taking steady steps toward the target.

(7) No. of new contents developed				(Unit：training, video)
			FY2020			FY2021
			September	October	November	December	January		February
	No. of new contents for On-Site		16	27	27	27	28		22
	training
	since the beginning of FY		321	27	54	81	109		131
	(Progression rate：%)		(100.3%)	(9.0%)	(18.0%)	(27.0%)	(36.3%)		(43.7%)
	No. of new contents for e-learning		33	14	20	14	19		30
	since the beginning of FY		248	14	34	48	67		97
	(Progression rate：%)		(124.0%)	(6.7%)	(16.2%)	(22.9%)	(31.9%)		(46.2%)

■ New training contents released in February (22 trainings)

How to work					For Managerial positions
Unlearning to prevent rigid	thinking and	realize	2		2
sustainable growth					Change the way of thinking and management
Sales					Career
Improvement of CX (Customer Experience)-		2		2
create a customer journey map					Career design for people in 50s.
Data analysis					Management strategy
Information Utilization - Gathering, Organizing, and	1		1
Analyzing Information					HR strategy focusing on S(society) of ESG
Marketing			1		Business improvement	1
Behavioral economics (Nudge theory)			Change the way of thinking profitability for leaders
Thinking skills			1		Communication	1
Strengthen thinking skills through patent cases		Followership training
Risk management			1		Guidance for subordinates and OJT	1
On-site risk management				How to guide subordinates or juniors
Compliance					Problem solving
What companies need to	know about	APPI	1			1
amendments (the Act on the Protection of Personal
		Dispatch accessor on-site to find issues
Information)
Motivation improvement			1		Evaluation	1
Create the future vision of the company			Secondary evaluator training
Mental health			1		For HR and recruiting staff	1
How to deal with a mental health problems			Improve skills of staff

■ New videos released in February (30 videos)

Risk management and compliance	18		Customer service	1
Copyrights and Trademarks		Improvement of CS (Customer service)
Business Etiquette	5		Sales	1
Self-management		Improve listening skills
Thinking skills	2		Develop subordinates	1
Behavioral economics		Boost their motivation
DX skills	1		Career	1
Information utilization		Career design for people in 20s.

We will keep expanding our businesses in order to adapt to changes in the social environment by offering a wide variety of services such as online training, IT and e-Learning and videos.

The preliminary figures above may differ from the upcoming financial statements. This information is created with utmost caution, but we do not fully guarantee the accuracy.

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