Fullcast : Consolidated Financial Results Announcement for the First Quarter of the Fiscal Year Ending December 31,2021 (Consolidat

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.

May 14, 2021

Consolidated Financial Results Announcement

for the First Quarter 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):	May 14, 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 Quarter of the Fiscal Year Ending December 31, 2021 (January 1 to March 31, 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 FY12/21 (March 31, 2021)		10,815		1.3		1,567	(7.6)		1,556	(10.9)			1,052		(7.0)
	1Q FY12/20 (March 31, 2020)		10,675		5.5		1,696	6.6		1,746	8.9			1,132		6.2
	(Note) Comprehensive income: 1,226 million yen (71.5%) as of March 31, 2021	715 million yen ((41.9)%) as of March 31, 2020
					Basic earnings per share	Diluted earnings per share
										Yen					Yen
	1Q FY12/21 (March 31, 2021)						28.73					28.56
	1Q FY12/20 (March 31, 2020)						30.45					30.29
	(2) Consolidated Financial Conditions
					Total assets		Net assets	Equity-to-asset ratio
					Million yen			Million yen			%
	End 1Q FY12/21 (March 31, 2021)				23,700			17,310			69.0
	FY12/20 End				23,953			17,396			68.9
	(Reference) Equity: 16,357 million yen as of March 31, 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		-
	FY12/21 Forecast								21.00				-		21.00			42.00

(Note) Revision of dividends forecast during the current first quarter: None

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

(% = year-on-year change for each quarter and full-year)

	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
First half	21,280		(0.7)	2,750	(16.2)	2,760	(16.4)	1,826	(19.0)	49.91
Full year	45,400		5.0	6,200	1.1	6,230	0.8	4,117	0.1	112.50

(Note) Revision of consolidated business forecasts in the current first quarter: None

* Notes

(1)	Important changes of subsidiaries during the current first quarter:				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)
	1Q FY12/21	37,486,400		FY12/20		38,486,400
	2)	Number of treasury shares at the term end
	1Q FY12/21	1,064,340		FY12/20		1,777,898
	3)	Average number of shares outstanding during the current term
	1Q FY12/21	36,624,487	1Q FY12/20		37,158,048

• 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 4 "1-(3) Explanation of Consolidated Business Forecasts" of the "Appendix".

Fullcast Holdings Co., Ltd. (4848) Financial Statement and Results for the First Quarter 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…………………………………………………..............	4
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 Quarter 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 persists due to the COVID-19 pandemic, Japan's economy in the first quarter of the current fiscal year experienced some weakness including flagging personal consumption despite the ongoing recovery, as overall corporate earnings recovered with the non-manufacturing sector struggling, capital investment showed signs of a recovery as of late, and there were indications of an upward trend in business sentiment amid the severity. Economic conditions are expected to continue to undergo a recovery given the effects of various government policies and the relaxation of the state of emergency declared in response to COVID-19 to improve the level of socioeconomic activities within Japan are increased in stages. Furthermore, improvements in overseas economies are also expected to be seen. However, the economic horizon remains unclear and requires close monitoring of the impacts that the pandemic will have on the domestic and overseas economies, and on 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 declining numbers of new job offers and rising number of unemployed. Despite this, there are signs of resilience as the job offers-to-applicants ratio has remained stable. With regard to the future outlook, resilience is expected in the number of workers 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 quarter, 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 1.3% year-on-year to 10,815 million yen, compared to the previous first quarter when sales were mostly unaffected by the COVID-19 pandemic, as client demand is showing signs of recovery and Year-End Tax Adjustment Management (one of our BPO services), Dispatching and Outsourcing services in the "Short-Term Operational Support Business" grew despite the negative impacts of the reissuance and extension of Japan's state of emergency to combat the ongoing pandemic.

In terms of profits, consolidated operating profit resulted in a slim drop of 7.6% year-on-year to 1,567 million yen with consolidated ordinary profit declining only 10.9% year-on-year to 1,556 million yen, as supported by client demand showing a trend towards a recovery, despite the impacts of COVID-19.

Profit attributable to owners of parent declined by 7.0% year-on-year to 1,052 million yen, as profit attributable to non-controlling interests declined by 67 million yen due mainly to the partial sale of shares of NIHON DENKI SERVICE Co., Ltd. at the end of the previous fiscal year and exclusion of this company from the scope of

consolidation.

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 1.8% year-on-year to 9,379 million yen, compared to the previous first quarter when sales were mostly unaffected by the COVID-19 pandemic, as client demand is showing signs of recovery and Year-End Tax Adjustment Management (one of our BPO services), Dispatching and Outsourcing services grew despite the negative influence of impacts from the reissuance and

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

extension of Japan's state of emergency amid the ongoing pandemic.

Segment profit (Operating profit) resulted in a slim drop of 2.3% year-on-year to 1,744 million yen as supported by client demand showing a trend towards a recovery , despite the impacts of COVID-19.

2) Sales Support Business

Net sales of the "Sales Support Business" decreased by 4.6% year-on-year to 865 million yen, due mainly to the impact of COVID-19 on the entertainment business and the exclusion of NIHON DENKI SERVICE Co., Ltd. from the scope of consolidation.

Segment profit (Operating profit) decreased by 145.7% year-on-year, resulting in a loss of 34 million yen due mainly to the drop in net sales.

3) Security, Other Businesses

Net sales of the "Security, Other Businesses" increased by 3.6% year-on-year to 571 million yen due mainly to increases in permanent security and temporary security projects, despite the challenging environment faced by temporary security projects under Japan's state of emergency.

Segment profit (Operating profit) increased by 26.3% year-on-year to 79 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 first quarter, total assets decreased by 253 million yen from the end of the previous fiscal year to 23,700 million yen. Equity decreased by 146 to 16,357 million yen (Equity ratio of 69.0%), and net assets decreased by 86 to 17,310 million yen.

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

With regards to assets, current assets declined by 380 million yen from the end of the previous fiscal year to 18,924 million yen. This decline is attributed mainly to falls in cash and deposits of 462 to 12,847 million yen and in notes and accounts receivable-trade of 175 to 5,496 million yen, which offset an increase in other under current assets of 242 to 555 million yen caused mainly by increases in accounts receivable-other of 161 to 213 million yen and suspense payments of 76 to 85 million.

Non-current assets increased by 127 million yen from the end of the previous fiscal year to 4,776 million yen. This increase is attributed mainly to an increase in investment securities of 221 to 2,142 million yen, which offset a decline in goodwill of 50 to 724 million yen.

With regard to liabilities, current liabilities decreased by 150 million yen from the end of the previous fiscal year to 5,560 million yen. This decrease is attributed mainly to declines in accrued consumption taxes of 295 to 909 million yen, income taxes payable of 282 to 232 million yen, and accrued expenses of 258 to 968 million yen, and offset increases in accounts payable-other of 85 to 1,252 million yen, provision for bonuses of 161 to 261 million yen, and in other under current liabilities of 419 to 837 million yen due primarily to a decline in social insurance deposits of 228 to 39 million yen and an increase in withholding income tax deposits of 642 to 740 million yen.

Non-current liabilities decreased by 17 million yen from the end of the previous fiscal year to 830 million yen. This decrease is mainly attributed to a decrease in other under non-current liabilities of 27 to 129 million yen caused mainly by a decline in long-term deposits received of 20 million yen to 0 yen, and despite an increase in retirement benefit liability of 10 to 701 million yen.

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