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President and CEO Toshimitsu Nakano

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 margin 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.

At our company, doing registration-type dispatch services as main business, we are now able to maintain a stable operating profit margin of 10% or more, and we started several initiatives to work on qualitative transformation of the company in the last fiscal year. 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. By doing so, we saw a drop in the company's profit for a short time, but we were able to increase the contract continuation rate of temporary staff, and we were able to feel the improved effects in new recruitment as well. We feel having set out for a new stage of growth. 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 keep the index representing sound management, that is, maintaining an operating profit margin of 10%, a dividend payout ratio of 30% or more, and a state in which dividends are not reduced to shareholders, work to raise the remuneration to dispatched staff and to employees. We aim to become the one and only company in the human resources industry. Since we are convinced that the increased compensation for the dispatched staff becoming one of the growth-drive factors, we are planning to bring up our dividend payout ratio to 40%.

As an organizational structure, in the group, 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 with us.

May 2023

Toshimitsu Nakano

President and CEO