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We would like to appreciate your considerations on our business.
I have some key indicators to do business. Sales, profits and their ratios. Increase in sales means that our services are well accepted by our customers. Right level of profit tells us that our business operations are staying mostly on the right track. With this in mind, sales and profits as guiding indicators, aiming to become a company that can make an operating profit over 10%, I have been developing our business operations.

If asked why or what is the purpose of running the company, I would like to answer that I want to make the company valuable and keep contributing to the society throughout the whole following processes: we present our customers with high-valued services and products, and we provide our dispatched staff with the working places where they can work actively, which eventually lead to the increase in sales and profits, and paying taxes and dividends in the end. With such a thought, I have been conducting our business activities so far.

We have such a high market share that one in three (Estimated according to the data of the Ministry of Health, Labour and Welfare, our research, and etc.) is dispatched from our group in the human resource service market of science researcher career. We launched a new platform of staffing service which we had developed to bring more convenience for our customers and dispatched staff as well. Since then, we have been working in pursuit of further convenience for customers and dispatched staff and further efficiency of internal operations.

We increased the compensation of all temporary staff at WDB in July 2022. Also, we increased the monthly compensation of temporary staff working from Eureka and WDB Engineering at once from April 2023. Furthermore, starting in April 2024, WDB's temporary emplotees will receive an approximately 5.6% increase in payment. Considering the current trends in the world, we thought that temporary employee should be treated fairly too, not left behind in the move to increase their compensation. We were able to increase the contract continuation rate of temporary staff, but still we were not successful in improving our response rate to customer orders. Through drastic improvements, we aimed to increase the opportunities for many temporary staff to be considered through our company and increase the response rate to customer orders. Even though sacrificing the short-term profit, I decided that this improving the temporary staff's treatment would significantly highten the customer response rate in the longer-term. Not limited to this, we will work on a further improvement on the staff's treatment, bettering the in-house developed platforms, reorganization, all of which lead to the improved services for the customer.
We weighed the need to adhere to the indicators of sound management, that is, continue to generate an operating profit margin of 10%, and the effect of temporarily lowering the profit margin and investing in improving the treatment of temporary emplotees, and we decided to invest in long-term growth, even though lowering profits and profit margins. We aim to become the one and only company in the human resources industry by increasing compensation for temporary workers and employees while maintaining a state of not reducing dividends to shareholders. We are confident that increasing compensation for temporary emplotees, which we have implemented under this policy, will become one of our growth drives. However, this fiscal year, as we plan to reduce profits, we have set the dividend payout ratio at 40%, which reduces the dividend. We will steadily work toward medium-to-long term plans by disclosing the necessary information.

In order to align the interests of our customers, temporary employees, and our company, we will consider and implement even more measures than ever before. We aim to create a situation in which the interests of all three parties continue to align, aim to be a company with a different approach from other human resources services companies, and continue to qualitatively transform the company while fulfilling our responsibilities to our stakeholders.
In a business environment that is said to be in the midst of the Fourth Industrial Revolution, we cannot do businesses without the use of AI. Considering the changes in the industrial structure, it is thought that the time has come to reconsider the nature of the human resources dispatch business itself, which is an "intermediary service." When thinking about what our service is, I would like to define it as envisioning a mechanism to solve a problem, building a platform to realize it, and providing it as a highly convenient service.
As an organizational structure, NEZOT Co., Ltd. develops the platform within the group, and using that platform, the human resource service companies, CRO business companies and other companies manage the business. We would like to clarify the role within the group and conduct the business. For the time being, we may keep the expression "Human resource service" and "CRO business", but even if we change our formation in the future, we will continue to provide services which is highly appreciated by customers for their convenience and usability.

For this fiscal year too, knowing that we must well balance investment vs returns and well balance new challenges vs steady management in operations, we are determined to conduct our business boldly and solidly as ever. I would like to ask for your further support and continued guidance for us.