[Delayed]Consolidated Financial Results Announcement for the First Three Quarters of the Fiscal Year Ending December 31, 2021 [Japanese Standards] (Co

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. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

November 5, 2021

Consolidated Financial Results Announcement

for the First Three Quarters of the Fiscal Year Ending December 31, 2021

[Japanese Standards] (Consolidated)

Company name:	Fullcast Holdings Co., Ltd.
Stock exchange listing:	First Section of the Tokyo Stock Exchange
Stock code:	4848
URL:	https://www.fullcastholdings.co.jp
Representative:	Kazuki Sakamaki, President, Representative Director and CEO
Contact:	Yasuomi Tomotake, General Manager of the Finance and IR Department
Telephone:	[phone]

Date of submission of quarterly report (Planned):	November 12, 2021
Date of commencements of dividend payments (Planned):	-

Preparation of supplementary references regarding financial results: Yes (shown on our website)

Briefing for quarterly results:

None

(Figures are rounded to the nearest million yen)

1. Consolidated Financial Results for the First Three Quarters of the Fiscal Year Ending December 31, 2021 (January 1 to September 30, 2021)

(1) Consolidated Business Results								(% = year-on-year change)
		Net sales	Operating profit	Ordinary profit	Profit attributable to
		owners of parent
		Million yen	%	Million yen	%		Million yen	%		Million yen	%
1Q-3Q FY12/21 (September 30, 2021)		38,076	19.3	5,804		24.2		5,827	24.0		3,840	21.2
1Q-3Q FY12/20 (September 30, 2020)		31,914	(2.5)	4,672		(13.0)		4,699	(14.2)		3,167	(12.5)
(Note) Comprehensive income: 4,124 million yen (42.0%) as of September 30, 2021	2,904 million yen ((29.3)%) as of September 30, 2020
		Basic earnings per share		Diluted earnings per share
				Yen					Yen
1Q-3Q FY12/21 (September 30, 2021)				105.20					104.68
1Q-3Q FY12/20 (September 30, 2020)				85.92					85.44
(2) Consolidated Financial Conditions
		Total assets	Net assets		Equity-to-asset ratio
		Million yen	Million yen			%
3Q FY12/21 End (September 30, 2021)			26,631			19,468			69.2
FY12/20 End			23,953			17,396			68.9

(Reference) Equity: 18,429 million yen as of September 30, 2021 16,504 million yen as of December 31, 2020

2. Dividend Status

			Dividend per share (Yen)
	1Q End		1H End	3Q End		FY End	Annual
FY12/20		-	19.00	-		22.00	41.00
FY12/21		-	21.00	-
FY12/21 Forecast						23.00	44.00

(Note) Revision of dividends forecast during the current third quarter: Yes

3. Consolidated Business Forecasts for the Fiscal Year Ending December 31, 2021 (January 1 to December 31, 2021)

(% = year-on-year change)

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Basic earnings
			owners of parent	per share
	Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year	51,100		18.2	7,550	23.1	7,570		22.5	5,024	22.2	137.68

(Note) Revision of consolidated business forecasts in the current third quarter: Yes

* Notes

(1)	Important changes of subsidiaries during the current first three quarters:				None
(Changes in specific subsidiaries involving changes in the scope of consolidation)
(2) Application of special accounting treatment in the production of quarterly consolidated financial statements:	None
(3)	Changes in accounting principles, accounting estimates, and re-presentation of changes
	1)	Changes in accounting policies associated with revisions of accounting principles and others:		None
	2)	Changes in accounting policies other than those mentioned in 1) above:				None
	3)	Changes in accounting estimates:				None
	4)	Re-presentation of changes:				None
(4)	Number of issued shares (Ordinary shares)
	1)	Number of issued shares at the term end (Including treasury shares)
	3Q FY12/21	37,486,400		FY12/20		38,486,400
	2)	Number of treasury shares at the term end
	3Q FY12/21	1,027,740		FY12/20		1,777,898
	3)	Average number of shares outstanding during the current term
	3Q FY12/21	36,499,238	3Q FY12/20		36,859,475

• Quarterly financial results are not subject to quarterly review by a certified public accountant or auditing corporation.
• Explanations of the proper use of financial business forecasts and other important notes

Of all plans, business forecasts, strategies and other information provided within this document, those which are not historical facts are future outlooks based upon certain conditions and our management's judgments based upon currently available data. Therefore, we warn against relying solely upon these outlooks in assessing our business results, corporate value and other factors. Please also be informed that actual financial results may vary widely from our business forecasts due to various factors. Important factors that may have an impact upon our actual financial results include: (1) economic and financial conditions surrounding our Company and changes in the employment situation, (2) damages to infrastructure arising from disasters including earthquakes, and (3) changes in relevant laws, including the Labor Standards Act and the Worker Dispatching Act, and in interpretations of these Acts. However, factors that affect our financial results are not limited to only these. Furthermore, please note that we may choose not to reexamine our business forecasts in response to new data, future events or other factors. For assumptions underlying our business forecasts and related issues, please refer to page 3 "1-(3) Explanation of Consolidated Business Forecasts" of the "Appendix".

Fullcast Holdings Co., Ltd. (4848) Financial Statement and Results for the First Three Quarters of the Term Ending December 2021

Table of Contents of Appendix>
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1. Qualitative Information Concerning Performance for the Current Quarter ………………………….……......	2
(1)	Explanation of Consolidated Operating Results ...…………………………………………………............	2
(2)	Explanation of Consolidated Financial Position …...…………………………....…………………............	3
(3)	Explanation of Consolidated Business Forecasts…………………………………………………..............	3
2. Quarterly Consolidated Financial Statements and Primary Notes…………………………………………......	5
(1)	Quarterly Consolidated Balance Sheet…………………..............................................................................	5
(2)	Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .....	7
(3)	Notes on Quarterly Consolidated Financial Statements …………………………………………………...	9
	(Notes on Going Concern Assumption) …………………………………………………...........................	9
	(Notes on Significant Change of Shareholders' Equity) ...……………………………………………........	9
	(Segment Information and Others) ...…………………………………………………………….………...	9
	(Additional Information) ..............................................................................................................................	10

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Fullcast Holdings Co., Ltd. (4848) Financial Statement and Results for the First Three Quarters of the Term Ending December 2021

1. Qualitative Information Concerning Performance for the Current Quarter

(1) Explanation of Consolidated Operating Results

Amid the severe economic conditions that persist due to the COVID-19 pandemic, Japan's economy in the first three quarters of the current fiscal year continued to experience a challenging situation. While a recovery trend continues despite low production in part, struggling corporate revenue in part of the non-manufacturing sector, and lingering severity in some companies' business sentiment, the pace of recovery is slowing. Economic conditions are expected to continue to undergo a recovery given the effects of various government policies and improvements seen in overseas economies on the back of measures to prevent the spread of COVID-19 and the vaccination roll out. However, the economic horizon remains unclear and requires close monitoring of the rising downside risks caused by impacts throughout the supply chain and developments of the pandemic inside and outside Japan, along with the impacts from the volatility of financial and capital markets.

The current operating environment surrounding the staffing service industry remains weak due to the impacts of COVID-19, including a declining new job offers-to-applicants ratio. Despite this, there are signs of resilience as the rising number of effective job offers. With regard to the future outlook, the staffing service business climate is expected to remain steady but there are also concerns of growing weakness caused by adjustments to employment conditions. Therefore, close attention needs to be paid to the influences of COVID-19.

Against this backdrop, in the first three quarters, the Fullcast Group implemented group management activities to achieve our goal of "quickly restoring performance using customer-first approaches by addressing the external environment in a flexible manner." The Group also carried out marketing activities towards quick restoration of business were implemented with an emphasis on boosting overall profitability of the Fullcast Group, particularly in the mainstay "Placement" (Note 1) and "BPO" (Note 2) services. In addition, our Company made preparations to further expand its business while fortifying our capabilities as a robust organization to maximizes profits by continuing to increase productivity and promote operational efficiencies across our entire Group.

Consolidated net sales increased by 19.3% year-on-year to 38,076 million yen driven by the sales growth in the

"Short-Term Operational Support Business", due mainly to the continued recovery in client demand throughout the third quarter and acquisition of public sector projects mainly related to the vaccination roll out, despite the negative impacts associated with the persistent spread of COVID-19 and Japan's re-issuance of states of emergency.

In terms of profits, consolidated operating profit increased by 24.2% year-on-year to 5,804 million yen, with consolidated ordinary profit rising by 24.0% year-on-year to 5,827 million yen, as client demand continued the recovery trend, despite the impacts of COVID-19.

Profit attributable to owners of parent increased by 21.2% year-on-year to 3,840 million yen due to the increase in consolidated ordinary profit, although 250 million yen of gain on the sale of investment securities was booked as an extraordinary income following the partial sale of investment securities in the same period of the previous fiscal year.

Furthermore, the Group acquired shares of Progress, Inc. on April 1, 2021, making it a consolidated subsidiary. In addition, BOD Alpha Co., Ltd. and HR Management Co., Ltd. executed an absorption-type merger where BOD Alpha Co., Ltd. was the surviving company and HR Management Co., Ltd. was the extinct company, with the trade

name of the company was changed to HR Management Co., Ltd on July 1, 2021.

Notes: 1. The mainstay "Part-Time Worker Placement" service is referred to as "Placement".

2. The mainstay "Part-Time Work Payroll Management" services, as well as other personnel and labor-related business process outsourcing (BPO) services such as the "My Number Management" service, and the back office BPO services of BOD Co., Ltd. are referred to as "BPO".

The results for each of our business segments are as follows.

1) Short-Term Operational Support Business

Net sales of the "Short-Term Operational Support Business" increased by 24.9% year-on-year to 33,528 million yen, due mainly to the ongoing recovery in client demand throughout the third quarter and acquisition of public sector projects mainly related to the vaccination roll out, despite the negative impacts associated with the persistent spread of COVID-19 and Japan's re-issuance of states of emergency.

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Fullcast Holdings Co., Ltd. (4848) Financial Statement and Results for the First Three Quarters of the Term Ending December 2021

Segment profit (Operating profit) increased by 30.3% year-on-year to 6,085 million yen as client demand continued the recovery trend, despite the impacts of COVID-19.

2) Sales Support Business

Net sales of the "Sales Support Business" decreased by 19.7% year-on-year to 2,790 million yen, due mainly to the impact of COVID-19 on the entertainment business and the exclusion of NIHON DENKI SERVICE Co., Ltd. (currently, ENECLOUD, Inc.) from the scope of consolidation, compared to the same period of the previous fiscal year when temporary telework demand under Japan's state of emergency as special demand in the sale of Internet access, which is a mainstay business.

Segment profit (Operating profit) decreased by 75.3% year-on-year to 106 million yen due mainly to the drop in net sales.

3) Security, Other Businesses

Net sales of the "Security, Other Businesses" increased by 10.5% year-on-year to 1,758 million yen due to an increase in permanent security projects and an increase in temporary security projects, including demand for the Olympic and Paralympic Games, despite the challenging environment under Japan's state of emergency.

Segment profit (Operating profit) increased by 30.5% year-on-year to 260 million yen due to the increase in net sales.

1. Explanation of Consolidated Financial Position
   Assets, Liabilities and Net Assets
   At the end of the third quarter, total assets increased by 2,677 million yen from the end of the previous fiscal year to 26,631 million yen. Equity increased by 1,925 to 18,429 million yen (Equity ratio of 69.2%), and net assets grew by 2,072 to 19,468 million yen.

Details of major changes in assets and liabilities are described as follows.

With regards to assets, current assets increased by 2,538 million yen from the end of the previous fiscal year to 21,842 million yen. This increase is attributed mainly to increases in notes and accounts receivable-trade of 1,588 to 7,259 million yen and in cash and deposits of 937 to 14,246 million yen.

Non-current assets increased by 140 million yen from the end of the previous fiscal year to 4,789 million yen. This increase is attributed mainly to an increase in investment securities of 255 to 2,177 million yen, which offset a decrease in goodwill of 115 to 659 million yen.

With regard to liabilities, current liabilities increased by 528 million yen from the end of the previous fiscal year to 6,238 million yen. This increase is attributed mainly to increases in income taxes payable of 295 to 809 million yen, accounts payable-other of 234 to 1,402 million yen, and provision for bonuses of 227 to 327 million yen, which offset decreases in accrued expenses of 92 to 1,134 million yen, other under current liabilities of 79 to 338 million yen (due primarily to a decline in social insurance deposits of 210 to 56 million yen compared to an increase in withholding income tax deposits of 124 to 222 million yen), and accrued consumption taxes of 45 to 1,159 million yen.

Non-current liabilities rose by 78 million yen from the end of the previous fiscal year to 925 million yen. This rise is attributed mainly to increases in other under non-current liabilities of 41 to 197 million yen due mainly to an rise in deferred tax liabilities of 40 to 62 million yen, and retirement benefit liability of 37 to 728 million yen.

(3) Explanation of Consolidated Business Forecasts

As stated in the "Announcement on Revisions to the Full-Year Consolidated Business Forecast and Year-End Dividend Forecast" released on November 5, 2021, consolidated business results for the first three quarters of the fiscal year ending December 2021 were strong versus the revised full-year business forecast announced on August 6, 2021 with the progress exceeding 75% of the performance indicators. This strong performance was due primarily to

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