OUTSOURCING : Notice Regarding the Conclusion of Sustainability Linked Loan Agreement

[Translation]
	July 20, 2021
To Whom It May Concern
Company Name:	OUTSOURCING Inc.
Representative:	Haruhiko Doi
	Chairman and CEO
(First Section of TSE, Securities Code: 2427)
Contact:	Kazuhiko Suzuki
	Executive Vice President and
	Executive General Manager
	in charge of Business
	Management Division
Phone:	[phone] (main)

Notice Regarding the Conclusion of Sustainability Linked Loan Agreement

OUTSOURCING Inc. (hereinafter "the Company") hereby announces that the Company has entered into a syndicated sustainability linked loan ("the loan") agreement, as per the details below.

1. Background and reasons for the loan

Sustainability linked loans are loans that conform to the Sustainability Link Loan Principles* established by the Loan Market Association, etc., and are loan products that promote the borrower's sustainability management by setting sustainability performance targets (hereinafter "SPTs") that are linked to the borrower's sustainability management policy and business strategy, aligning loan terms such as interest rates to borrower's performance and motivating to achieve SPTs, aiming to improve corporate value, and realize environmentally and socially sustainable economic activities.

The OUTSOURCING Group (hereinafter "the OS Group") has its management philosophy of "enhancing the quality of life of everyone around the world by eliminating inequalities in working condition and creating truly motivating workplaces," and is committed to corporate activities that will create job opportunities and education opportunities for many people around the world, through which we will seek to tackle the society's challenges, develop our business, and contribute to the benefit of our stakeholders in a sustainable manner. Based on the sustainability policy, the OS Group pledges to contribute to the realization of a sustainable society through the active efforts of SDGs in our business, management that emphasizes ESG, and Corporate Social Responsibility (CSR) activities rooted in the local country or region. In February 2021, the OS Group formulated the "OUTSOURCING Group SDGs Declaration" and identified "providing employment opportunities" and "providing high-quality education", etc. as priority issues (materiality) for the Group, and set targets for 2030 that relate to these issues.

SPTs that focus on solving social issues are set for the loan, and we believe that not only further motivation for promoting materiality but also disclosure of information on the status of SPTs achievement and verification of the results from an independent standpoint will also contribute to proactively disseminating information on our SDGs achievements to our stakeholders.

Going forward, we will continue to pursue a system in which our business activities are widely returned to the society and realize management philosophy.

• Published by Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA), and Loan Syndications and Trading Association (LSTA). The Sustainable Impact Assessment Department, which ensures certain independence within Shinsei Bank, Limited, confirms the conformity of the loan to the Sustainability

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[Translation]

Linked Loan Principles (revised in May 2021), including the validity of SPTs. For details, please refer to the URL (only available in Japanese) below.

URL: https://www.shinseibank.com/institutional/sustainable_finance/pdf/psll210707.pdf

2. Outline of the loan

(1)	Total amount	JPY 15 billion
(2)	Date of agreement	July 20, 2021
(3)	Date of execution	July 26, 2021 (scheduled)
(4)	Contract period	Tranche A: 2 years, Tranche B: 5 years
(5)	Arranger and agent	Shinsei Bank, Limited
		Resona Bank, Limited., San ju San Bank,Ltd., Suruga Bank Ltd., The
		Aomori Bank, Ltd., The Bank of Saga Ltd., The Chiba Bank, Ltd., The
	Participating financial	Dai-ichi Life Insurance Company, Limited, The Higo Bank, Ltd., The
(6)	Hyakujushi Bank, Ltd., The Kagawa Bank, Ltd., THE SAN-IN GODO
institutions
	BANK, LTD., THE SHIGA BANK,LTD., The Shimane Bank, Ltd.,
		Shinsei Bank, Limited, THE TOTTORI BANK, LTD., The Yamagata
		Bank, Ltd., The Yamanashi Chuo Bank, Ltd., (In alphabetical order)
(7)	Use of funds	Business funds
		1. Increase in employment support for foreign residents
		2. Increase the number of employees realizing career change from labor-
		intensive industry worker to specialized talent (IT human resources
(8)	Outline of SPTs	and science and engineering human resources for engineers)
3. Increase the number of users of high-quality educational programs for
		career advancement
		4. Increase in training of specialized talents who can improve the
		productivity of industries
		In Japan, the supply-demand gap of the labor force is growing due to the
		progress of declining birthrate and aging population and the expansion of
		service industry, and the acceptance of foreign residents is being promoted
		with the establishment of a new category of status of residence; the training
		of IT human resources with new skills and high-value-added science and
		engineering human resources is emphasized; "re-learning" is emphasized
		and recurrent education is promoted; and the improvement of productivity
	Social issues that the	through workstyle reforms and investment in human resources are priority
(9)	achievement of SPTs is	issues in accordance with the government's policy. Accordingly, the
expected to contribute	defined indicators are consistent with Japanese government's awareness of
	to improving	social issues and policies, and the achievement of SPTs is expected to
		contribute to these.

3. Future outlook

The impact of the loan on financial results for FY12/21 is negligible.

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