CONSOLIDATED FINANCIAL REPORT (Japanese GAAP) FY2022 (June 1, 2022 to May 31, 2023) Three Months Ended August 31, 2022

Note:This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

October 14, 2022

CONSOLIDATED FINANCIAL REPORT (Japanese GAAP)

FY2022 (June 1, 2022 to May 31, 2023)

Three Months Ended August 31, 2022

For further information contact: Yuko Nakase, Senior Managing Executive Officer and CFO Tel. +81-3-6734-0200

Scheduled filing date of quarterly report: October 14, 2022

Supplemental materials prepared for quarterly financial results: Yes

Holding of quarterly financial results meeting: No

(All amounts are in millions of yen rounded down unless otherwise stated)

1. CONSOLIDATED BUSINESS RESULTS

1. Consolidated Financial Results

Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.

(2) Consolidated Financial Position

(Note) In total assets as of May 31, 2022 and August 31, 2022, temporary "Deposits received" from customers related to contracted projects is recorded in liabilities, and "Cash and deposits" worth it is recorded in assets. For details, please refer to "1. Information Concerning Quarterly Consolidated Business Results (2) Overview of Consolidated Financial Position".

2. DIVIDENDS PER SHARE

(Note) Revision to dividend forecast in the current quarter: None

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1. Qualitative Information Concerning Quarterly Consolidated Business Results

1. Overview of Consolidated Business Results

i) Business Results for the First Quarter ended August 31, 2022

During the first quarter of the current fiscal year, the Japanese economy continued to pick up as restrictions on actions due to the COVID-19 infection were eased, despite downside risks to the economy such as global monetary tightening and rising raw material prices.

Under these circumstances, the demand for human resources remained strong in our group as business activities recovered. In addition, business expanded as the number of tourists increased due to the easing of restrictions on activities by the COVID-19 infection.

As a result, consolidated net sales for the first quarter of the current fiscal year were ¥92,066 million (up 0.2% year-on-year), the same level as the previous year, due to growth in Outsourcing segment and Regional Revitalization Solutions segment, despite the absence of temporary projects that had accumulated significantly in the same period of the previous year. Gross profit was ¥22,273 million (up 2.5% year-on-year) due to improved gross profit margins in Outsourcing segment and Regional Revitalization Solutions segment, despite the impact of lower sales in Expert Services segment. SG&A expenses increased due to business expansion in Outsourcing segment and higher advertising expenses for large-scale promotions and other related costs. As a result, operating income was ¥3,330 million (down 41.6% year-on-year). Ordinary income was ¥3,610 million (down 37.6% year-on-year), and net income attributable to parent company shareholders was ¥1,293 million (down 47.9% year-on-year), but generally in line with plans.

3M FY2022 Consolidated Financial Report

(June 1, 2022 - August 31, 2022)

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(2) Business Segment Information (before elimination of intersegment transactions)

HR Solutions

Expert Services (Temporary staffing), BPO Services (Contracting and outsourcing), etc.

Net sales ¥76,071 million Operating income ¥3,506 million [Expert Services] Net sales: ¥37,837 million

The Expert Services segment provides expert services (temporary staffing) for a wide range of job types, from new graduates to senior citizens, in the areas of office work, clerical work, engineers requiring highly specialized skills, and sales and marketing positions.

Demand for temporary staffing services continued to recover during the period under review, with an increase in the number of orders received from a wide range of industries, including manufacturers and the financial sector. In the same period of the previous fiscal year, there was temporary special demand for the Tokyo 2020 Olympic and Paralympic Games, but despite steady demand for temporary staffing services in the period under review, this was not enough to make up for the rebound in the same period of the previous fiscal year, resulting in net sales of ¥37,837 million (down 6.9% year-on-year).

[BPO Services] Net sales: ¥33,817 million

In this segment, the Group provides BPO services by accepting contracts for general affairs, accounting and finance, reception, sales administration and order placement, and human resources and labor services, while consolidated subsidiary Bewith, Inc. provides contact center and BPO services using its own digital technology.

Although a large-scale project contracted in the same period of the previous year was terminated, sales in the first quarter of the current fiscal year were at the same level as the same period of the previous year as a result of the accumulation of new projects. In the transition to a "with Corona" social environment, the Company acquired new business from the public sector in the areas of promoting diverse work styles, securing human resources, job placement support, and human resource development. In addition, private-sector companies continued to review their workflows in relation to organizational restructuring and DX promotion.

As a result, net sales amounted to ¥33,817 million (down 1.1% year-on-year).

[HR Consulting, Education/Training, Others] Net sales: ￥2,021 million

This segment provides management support by freelance professionals and former executives of listed companies, as well as education and training services commissioned by companies and the public sector, and HR tech implementation support services such as talent management.

The Work Style Innovation business, in which freelance professional human resources are active, and the advisory consulting business with specialized human resources continued to expand. In the education and training business, an increasing number of companies focused on training the next generation of leaders due to growing interest in human capital management.

As a result, net sales amounted to ¥2,021 million ( up 4.9% year-on-year).

[Global Sourcing] Net sales ¥2,395 million Operating income Profit ¥108 million

This segment provides a full line of human resource-related services overseas, including placement and recruiting, temporary staffing and outsourcing, payroll processing, and education and training.

In the North America region, with Corona's economic activity remained strong, and sales in the Placement / Recruiting and BPO business increased year on year. In the Asian region, Taiwan posted year-on-year growth in all business segments, including placement and temporary staffing, while business expanded in India, Thailand, and Malaysia. In addition, during the current fiscal year, the Group is accelerating cross-border transactions that take advantage of the business characteristics offered in each country, and is promoting business collaboration so that IT development work in

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