Notice: Revision of Consolidated Financial Forecasts for Full FY21

Disclaimer: This document is a translation of the

Japanese original for reference purposes only.

July 25, 2022

To Whom It May Concern,

Company Name:	Insource Co., Ltd.
Representative:	Takayuki Funahashi
	Representative Director, President and CEO
	(Code number: 6200, Prime Market of the Tokyo
	Stock Exchange)
Contact:	Shigeo Fujimoto
	Director, Executive Officer, CFO
	(Corporate Management Department)
	(TEL. [phone])

NOTICE: REVISION OF CONSOLIDATED FINANCIAL FORECASTS FOR FULL FY21

Insource Co. has reviewed current trends in its performance and revised its consolidated financial forecasts for full fiscal year ending September 30,2022, which was announced on November 4, 2021.

1. Revision of Consolidated Financial Forecasts for full fiscal year ending September 30,2022 (October 1, 2021 - September 30, 2022)

				Net sales		Operating	Ordinary		Profit attributable to			Net profit per share
					profit	profit		owners of parent
	Previous forecast (A)			mill yen	mill yen	mill yen		mill yen		yen sen
		8,900		2,600	2,600	1,770	41.53
	Revised forecast (B)	9,300		3,220	3,190	2,200	52.26
	Change (B-A)	400		620	590	430	-
	Percentage change (%)	4.5		23.8	22.7	24.3	-
	(Reference) FY20	7,501	2,404	2,416	1,571	37.43
	Consolidated Financial Results

(2) Reasons for Revision

The number of high-unit-price trainings conducted for private sector and DX trainings increased in the On-Site Training business, in line with the spread of online training and DX (Digital Transformation). The e-Learning and video sales business is also performing well, which has led to steady sales growth.

In the third quarter, the ratio of online training has declined as expected. On the other hand, more high-unit-price trainings for private sector and DX trainings were conducted, and the ratio of fixed costs of production declined as textbooks were created more efficiently. As a result, the gross profit margin, which was expected to deteriorate due to the decline in the online training ratio, has improved and is expected to remain at the same level as the previous year, and gross profit is expected to increase due to the increase in sales. The operating profit is also expected to increase due to the lower personnel expenses than expected.

Therefore, net sales, operating profit, ordinary profit, and profit attributable to owners of parent are all expected to exceed the previously announced forecasts.

However, the number of COVID-19 infections has been rapidly increasing since July in Japan. Although the impact has been taken into account in the revised forecast, it may change largely due to external factors such as the issuance of a state of emergency declaration. We will promptly announce any events that may affect our group's business performance.

(Note) This document contains projections of performance based on information available at the time of preparation, and actual results may differ from these projections due to various factors.

END