H U : Notice of Change of Segment

July 16, 2021

For Immediate Release

Company name: H.U. Group Holdings, Inc.

Representative: Shigekazu Takeuchi, Director,

President and Group CEO

Securities code: 4544 First Section, Tokyo

Stock Exchange

Contact: Atsuko Murakami, Executive

Officer and CFO

Telephone No.: [phone]

Notice of Change of Segment

H.U. Group Holdings, Inc. (hereinafter, "the Company") hereby announces that the Company will change its segmentation as follows from the fiscal year ending March 31, 2022, and will announce its financial results using the new segmentation from the first quarter of the fiscal year ending March 31, 2022, which is scheduled for August 10, 2021.

1. Reason for change

The Company established "Emerging New Business & Others" in the fiscal year ended March 31, 2020 and has been working to develop businesses that will become the seeds for future growth. We have decided to review our business segments, taking into consideration the growth potential of each business and its relevance to existing businesses, as well as to make clear the Executive Officers in charge of each business in order to accelerate growth.

Regarding Lab Testing and its related Services, we have decided to merge "Self-Medication, Corporate Health Insurance Association Services" and "Food, Environment, and Cosmetics Testing," centering around the testing business. With respect to "CRO business", as a result of selection and consolidation, we have decided to include it as one function in Lab Testing and its related Services.

In addition, as for Healthcare-related Services, we have decided to create a new segment integrating "Sterilization & Related Services" and "Home Visiting, Welfare," to establish it as the third pillar business after "Lab Testing and its related Services" and "In Vitro Diagnostics."

The In Vitro Diagnostics segment remains unchanged.

2. Outline of the new segmentation

[Responsible Executive Officer in each segment]

Segment name	Name of Executive Officer in charge
Lab Testing and its related Services	Shunichi Higashi
In Vitro Diagnostics	Goki Ishikawa
Healthcare-related Services	Naoki Kitamura

3. Net sales and operating profit (loss) by segment for the fiscal year ended March 31, 2021 in accordance with the new segmentation

											(millions of yen)
		Lab Testing		In Vitro		Healthcare-		Total		Elimination or		Consolidated
		and its related			related
			Diagnostics				corporate
		Services			Services
Net sales
(1)Net sales to external	140,898	50,030	32,087	223,016	-	223,016
customers
(2)Inter-segment net	220	6,247	20	6,488	(6,488)	-
sales or transfers
Total (Net sales)		141,119		56,278		32,107		229,504		(6,488)		223,016
Segment profit (loss)	12,610	12,782	2,332	27,726	(2,333)	25,392

(Reference) Net sales and operating profit (loss) by segment for the fiscal year ended March 31, 2021 in accordance with the old segmentation

(millions of yen)

Clinical

Sterilization

Emerging

In Vitro

New

Elimination

Laboratory

and Related

Total

Consolidated

Testing

Diagnostics

services

Business and

or corporate

others

Net sales

(1)Net sales to external customers (2)Inter-segment net sales or transfers

Total (Net sales)

Segment profit (loss)

136,091	50,030	26,735	10,158	223,016	-	223,016
100	6,247	20	285	6,653	(6,653)	-
136,192		56,278		26,755		10,444		229,670		(6,653)		223,016
14,006	12,782	1,953	(1,023)	27,718	(2,325)	25,392

4. Numerical management targets by segment specified in the Medium-term Plan "H.U. 2025 - Hiyaku (significant growth) & United"

Numerical management targets for the fiscal year ending March 31, 2025 in accordance with the new segmentation are as follows. There is no change in the consolidated numerical management targets for the fiscal year ending March 31, 2025.

[Numerical management targets by segment for the fiscal year ending March 31, 2025]

	Lab Testing and its	In Vitro Diagnostics	Healthcare-related
	related Services		Services
Net sales CAGR*	6% or more	4.5% or more	9% or more
EBITDA margin	17% or more	25% or more	12% or more
Operating margin	9% or more	20% or more	9% or more

* 5 years CAGR during FY ended March 31, 2020 - FY ending March 31, 2025)

End