Will : Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022

(English Translation)

This English translation is an abridged version of the original document in Japanese. In the event of any discrepancy, the Japanese version prevails.

November 9, 2021

Summary of Consolidated Financial Results

for the Second Quarter of the Fiscal Year Ending March 31, 2022

(Six Months Ended September 30, 2021)

		[IFRS]
Company name:	WILL GROUP, INC.	Listing: Tokyo Stock Exchange, First Section
Stock code:	6089	URL: https://willgroup.co.jp/
Representative:	Shigeru Ohara, President and Representative Director
Contact:	Satoshi Takayama, Chief Administrative Officer
	Tel: [phone]

Scheduled date of filing of Quarterly Report:								November 9, 2021
Scheduled date of payment of dividend:							-
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:								Yes (for institutional investors and securities
														analysts)
											(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2021
(April 1, 2021 - September 30, 2021)
(1) Consolidated operating results												(Percentages represent year-on-year changes)
																		Profit attributable		Total
	Revenue		Operating profit	Profit before tax			Profit			to owners of		comprehensive
																		parent			income
Six months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Million yen		%	Million yen	%
63,913		9.9	2,685	20.9	2,716	30.2	1,996	31.2	1,698		30.2	1,691	(31.3)
Sep. 30, 2021
Six months ended	58,177	(4.2)	2,221	2.3	2,085	(2.8)	1,522	9.9	1,304		5.1	2,462	270.9
Sep. 30, 2020
	Basic earnings per share		Diluted earnings per share
Six months ended				Yen								Yen
			76.18							75.00
Sep. 30, 2021
Six months ended				58.70							57.86
Sep. 30, 2020
(2) Consolidated financial position
														Equity attributable to	Ratio of equity attributable
	Total assets					Total equity				to owners of parent to total
								owners of parent
																			assets
			Million yen					Million yen				Million yen						%
As of Sep. 30, 2021				44,650						10,950						9,889						22.1
As of Mar. 31, 2021				46,760						10,027						8,240						17.6
2. Dividends
												Dividend per share
				1Q-end				2Q-end				3Q-end			Year-end			Total
					Yen		Yen					Yen					Yen			Yen
Fiscal year ended Mar. 31, 2021					-			0.00					-			24.00			24.00
Fiscal year ending Mar. 31, 2022					-			0.00
Fiscal year ending Mar. 31, 2022														-			34.00			34.00
(forecasts)
Note: Revisions to the most recently	announced dividend	forecast: Yes

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(Percentages represent year-on-year changes)

											Profit attributable to	Basic
	Revenue		Operating profit	Profit before tax	Profit		earnings per
											owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year	130,000		9.9	4,500	11.7	4,410	16.4	2,970		10.9	2,510	6.2	112.55
Note: Revisions to the most recently announced consolidated forecast: Yes

* Notes

(1) Changes in significant subsidiaries during the period (changes in scope of consolidation): Yes

Newly added: -

Name: -

Excluded: 1

Name: WILLOF FACTORY, Inc.

1. Changes in accounting policies and accounting-based estimates
2. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting-based estimates: None
3. Number of outstanding shares (common stock)
4. 1. Number of shares outstanding at the end of period (including treasury shares)

As of Sep. 30, 2021:	22,637,000 shares	As of Mar. 31, 2021:	22,554,500 shares
2) Number of treasury shares at the end of period
As of Sep. 30, 2021:	284,820 shares	As of Mar. 31, 2021:	290,379 shares
3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2021:	22,300,657 shares	Six months ended Sep. 30, 2020:	22,226,097 shares
Note: Treasury shares at the end of period include shares owned by Employee Stock Ownership Plan.
(279,441 shares as of Sep. 30, 2021	285,000 shares as of Mar. 31, 2021)

• This quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
• Explanation of appropriate use of earnings forecasts and other special items
  Forecasts of future performance in this report are based on assumptions judged to be valid and information available to the Company's management at the time the materials were prepared, but are not promises by the Company regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 4 for forecast assumptions and notes of caution for usage.

	WILL GROUP, INC. (6089) Financial Results for the Second Quarter of FY3/22
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Forecast and Other Forward-looking Statements	4
2. Condensed Quarterly Consolidated Financial Statements and Notes	5
(1)	Condensed Quarterly Consolidated Statement of Financial Position	5
(2)	Condensed Quarterly Consolidated Statements of Profit or Loss and Comprehensive Income	7
	Condensed Quarterly Consolidated Statement of Profit or Loss
	For the Six-month Period	7
	Condensed Quarterly Consolidated Statement of Comprehensive Income
	For the Six-month Period	8
(3)	Condensed Quarterly Consolidated Statement of Changes in Equity	9
(4)	Condensed Quarterly Consolidated Statement of Cash Flows	11
(5)	Notes to Condensed Quarterly Consolidated Financial Statements	12
	Going Concern Assumption	12
	Segment and Other Information	12

1

WILL GROUP, INC. (6089) Financial Results for the Second Quarter of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

In the first half of the fiscal year ending March 31, 2022 (the "period under review"), the Japanese economy has been showing gradual signs of recovery thanks to a pickup in the global economy and a further progress in vaccination despite a prolonged uncertain outlook due to spreading COVID-19. Meanwhile, as for the employment environment, a pickup in business activities helped demand for human resources to remain resilient.

The Company and its subsidiaries (the "Group") have worked on the "WORK SHIFT strategy" to improve operating profit margin through a portfolio shift and a digital shift to achieve the Medium-Term Plan, "WILL-being 2023," concluding in the fiscal year ending March 31, 2023.

In Japan, intermittent states of emergency declared mainly for the Greater Tokyo Area and the spread of COVID-19 impacted the sales outsourcing sector except for the telecommunications subsector and the factory outsourcing sector, but the other sectors remained solid. The Group has made upfront investments such as increasing the number of sales personnel and consultants in the areas we are focusing on, including introduction of nursing caregivers, human resources services concerning construction engineers, and human resource support for startup firms to realize Perm (permanent placement in various fields, and temporary staffing for highly specialized fields) SHIFT.

Outside Japan, Singapore and Australia, where we have our main presence, enforced lockdown and other measures to curb the spread of COVID-19. However, the demand for human resources remained solid, which contributed to the stable performance of both temporary staffing and permanent placement businesses.

As a result, for the period under review, the Company reported consolidated revenue of 63,913 million yen (up 9.9% year on year), operating profit of 2,685 million yen (up 20.9%), profit before tax of 2,716 million yen (up 30.2%), profit of 1,996 million yen (up 31.2%) and profit attributable to owners of parent of 1,698 million yen (up 30.2%). EBITDA (operating profit + depreciation and amortization) was 3,650 million yen (up 11.7%).

Results by operating segment were as follows.

Regarding the accounting method for reportable business segments, we had previously adopted a method of reflecting certain adjustments under Japanese GAAP. After re-examining segment information to be reviewed regularly, the Group decided to align the accounting method with the accounting policies of the Group from the beginning of the first quarter of the fiscal year ending March 31, 2022. Accordingly, reportable segment information for the first half of the previous fiscal year has been restated.

1) Domestic WORK Business

The Domestic WORK Business offers temporary staffing, permanent placement and consignment services in Japan specifically for sectors such as sales outsourcing, call center outsourcing, factory outsourcing and care support/nursery schools. Sectors other than telecommunications in the sales outsourcing sector and the factory outsourcing sector saw decreased demand due to the continued impact of COVID-19. However, the sectors such as telecommunications in the sales outsourcing sector, call center outsourcing and care support/nursery schools and human resource support for startups enjoyed solid demand and grew strongly. Each sector focused on developing new clients for new services including a service to perform proxy marketing and a contact center service by the staff all working from home, anticipating a phase with and post COVID-19.

Earnings declined as the Group made upfront investments such as increasing the number of sales personnel and consultants in the areas of introduction of nursing caregivers and human resource services concerning construction engineers.

As a result, the segment recorded external revenue of 39,594 million yen (down 0.0% year on year) and segment profit of 2,160 million yen (down 10.6%).

2) Overseas WORK Business

In the human resources service, which operates in the ASEAN and Oceania regions, we enjoyed a steady demand for human resources despite the lockdown and other measures to reduce the spread of COVID-19, which contributed to the stable performance of both temporary staffing and permanent placement businesses.

2

WILL GROUP, INC. (6089) Financial Results for the Second Quarter of FY3/22

For the period under review, earnings for this business segment increased on the back of higher sales despite an increase in personnel and other expenses that had been curbed and a decrease in employment support subsidy income as a countermeasure against COVID-19 in Singapore, which was recorded in the previous fiscal year.

As a result, the segment recorded external revenue of 23,709 million yen (up 32.4% year on year) and segment profit of 1,676 million yen (up 65.5%).

3) Others

In the other businesses, we made efforts to strengthen the development of new platforms, such as "Hourmane," a working time management system for foreign workers, and "ENPORT," a foreign worker support service, all with a view to expanding beyond labor intensive businesses.

For the period under review, earnings declined due to the continued investment in new platform development.

As a result, the segment recorded external revenue of 609 million yen (down 10.2% year on year) and segment loss of 205 million yen (compared with segment loss of 196 million yen a year earlier).

1. Explanation of Financial Position 1) Assets, liabilities and equity Assets

Current assets at the end of the period under review amounted to 22,127 million yen, down 1,442 million yen from the end of the previous fiscal year. This is primarily due to decreases in cash and cash equivalents of 1,460 million yen and other financial assets of 427 million yen, which were partially offset by an increase in other current assets of 317 million yen.

Non-current assets amounted to 22,523 million yen at the end of the period under review, down 667 million yen from the end of the previous fiscal year. This is primarily due to decreases in right-of-use assets of 344 million yen and other intangible assets of 292 million yen.

As a result, total assets decreased 2,110 million yen from the end of the previous fiscal year to 44,650 million yen.

Liabilities

Current liabilities at the end of the period under review amounted to 24,711 million yen, down 79 million yen from the end of the previous fiscal year. This is primarily due to decreases in other financial liabilities of 624 million yen and other current liabilities of 395 million yen, which were partially offset by increases in borrowings of 786 million yen and income taxes payable of 227 million yen.

Non-current liabilities amounted to 8,988 million yen at the end of the period under review, down 2,954 million yen from the end of the previous fiscal year. This is primarily due to decreases in other financial liabilities of 1,448 million yen and borrowings of 1,292 million yen.

As a result, total liabilities decreased 3,033 million yen from the end of the previous fiscal year to 33,699 million yen.

Equity

Total equity at the end of period under review amounted to 10,950 million yen, up 923 million yen from the end of the previous fiscal year. This is primarily due to increases in retained earnings of 1,160 million yen and capital surplus of 761 million yen, which were partially offset by decreases in non-controlling interests of 725 million yen and other components of equity of 300 million yen.

As a result, the ratio of equity attributable to owners of parent to total assets increased from 17.6% at the end of the previous fiscal year to 22.1%. Also, the adjusted ratio of equity attributable to owners of parent to total assets was 25.2% (compared with 24.7 % at the end of the previous fiscal year). The ratio is adjusted by netting out the one-time effect of unrealized written put options of 1,379 million yen (compared with 3,300 million yen at the end of the previous fiscal year).

3