Will : Summary of Consolidated Financial Results for the Third 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.

February 8, 2022

Summary of Consolidated Financial Results

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

(Nine Months Ended December 31, 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:	February 8, 2022
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for quarterly financial results:	Yes

Holding of quarterly financial results meeting:

Yes

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 - December 31, 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
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Million yen		%	Million yen	%
Nine months ended	97,608		10.7	4,165	28.4	4,197	37.8	3,036	40.8	2,628		39.9	2,986	(11.5)
Dec. 31, 2021
Nine months ended	88,139	(4.0)	3,244	(2.6)	3,044	(6.5)	2,156	4.3	1,878		4.4	3,373	86.7
Dec. 31, 2020
	Basic earnings per share		Diluted earnings per share
				Yen								Yen
Nine months ended				117.76							115.90
Dec. 31, 2021
Nine months ended				84.52							83.13
Dec. 31, 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 Dec. 31, 2021				47,317						13,081							11,620						24.6
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: None

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	5,000	24.1	5,000	32.0	3,510		31.0	2,980	26.1	133.52

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 Dec. 31, 2021:	22,651,000 shares	As of Mar. 31, 2021:	22,554,500 shares
2) Number of treasury shares at the end of period
As of Dec. 31, 2021:	284,820 shares	As of Mar. 31, 2021:	290,379 shares
3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2021:	22,318,354 shares	Nine months ended Dec. 31, 2020:	22,222,074 shares
Note: Treasury shares at the end of period include shares owned by Employee Stock Ownership Plan.
(279,441 shares as of Dec. 31, 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 Third 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 Nine-month Period	7
	Condensed Quarterly Consolidated Statement of Comprehensive Income
	For the Nine-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

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

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

In the first nine months 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. The economic outlook, however, remains uncertain with the concern of resurgence of infections due to the emergence of the new variant of COVID-19. Meanwhile, as for the employment environment, a pickup in business activities helped recruiting activity 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. Since the beginning of the fiscal year, the Group has continued to 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 mea sures 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 97,608 million yen (up 10.7% year on year), operating profit of 4,165 million yen (up 28.4%), profit before tax of 4,197 million yen (up 37.8%), profit of 3,036 million yen (up 40.8%) and profit attributable to owners of parent of 2,628 million yen (up 39.9%). EBITDA (operating profit + depreciation and amortization) was 5,647 million yen (up 17.5%).

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 nine months 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 a nd 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 60,113 million yen (up 0.4% year on year) and segment profit of 3,416 million yen (down 5.5%).

2) Overseas WORK Business

In the human resources service, which operates in the ASEAN and Oceania regions, we enjoyed a steady demand for

2

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

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.

For the period under review, earnings for this business segment increased on the back of higher sales in the permanent placement service, which led to an increase of gross profit, while there was 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 36,432 million yen (up 33.6% year on year) and segment profit of 2,473 million yen (up 65.4%).

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 livelihood 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 1,061 million yen (up 9.3% year on year) and segment loss of 316 million yen (compared with segment loss of 290 million yen a year earlier).

(2) Explanation of Financial Position

1. Assets, liabilities and equity Assets

Current assets at the end of the period under review amounted to 24,125 million yen, up 555 million yen from the end of the previous fiscal year. This is primarily due to an increase in trade and other receivables of 993 million yen, which was partially offset by a decrease in other financial assets of 496 million yen.

Non-current assets amounted to 23,191 million yen at the end of the period under review, up 0 million yen from the end of the previous fiscal year. This is primarily due to increases in other financial assets of 155 million yen and deferred tax assets of 72 million yen, which were partially offset by a decrease in other intangible assets of 182 million yen.

As a result, total assets increased 556 million yen from the end of the previous fiscal year to 47,317 million yen.

Liabilities

Current liabilities at the end of the period under review amounted to 24,969 million yen, up 179 million yen from the end of the previous fiscal year. This is primarily due to increases in trade and other payables of 828 million yen, income taxes payable of 411 million yen and other current liabilities of 265 million yen, which were partially offset by a decrease in borrowings of 1,413 million yen.

Non-current liabilities amounted to 9,265 million yen at the end of the period under review, down 2,677 million yen from the end of the previous fiscal year. This is primarily due to decreases in other financial liabilities of 1,292 million yen and borrowings of 1,160 million yen.

As a result, total liabilities decreased 2,497 million yen from the end of the previous fiscal year to 34,235 million yen.

Equity

Total equity at the end of period under review amounted to 13,081 million yen, up 3,053 million yen from the end of the previous fiscal year. This is primarily due to increases in retained earnings of 2,090 million yen and capital surplus of 1,288 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 24.6%. Also, the adjusted ratio of equity attributable to owners of parent to tota l assets was 27.6% (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 1,440 million yen (compared with 3,300 million yen at the end

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