FY23 Q3 Financial Results: Open Up Group Inc. May 12, 2023

FY23 Q3
Financial Results
Open Up Group Inc.
May 12, 2023
Copyright © Open Up Group Inc. All rights reserved.

Consolidated Full-year Results (IFRS)
 YoY increase in sales and profits.

 Upfront investment in H2 aimed at growth from the next fiscal year onward; Revised the
business forecast.
FY22 FY23
Full-year
Unit：billion yen Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q3 YoY Q3 total Progressrate
Forecast
Revenue 36.6 37.9 36.2 37.9 148.6 39.0 41.3 39.6 +9.2% 119.9 164.0 73.1%
Gross profit 8.3 8.8 8.6 8.7 34.4 9.2 10.2 9.9 +14.8% 29.3 39.0 75.1%
Margin 22.8% 23.2% 23.8% 22.9% 23.2% 23.7% 24.6% 25.0% +24.4% 23.8%
SGA cost 5.7 5.1 5.7 7.8 24.3 5.9 5.9 6.2 +9.3% 18.0 27.4 65.7%
SGA cost ratio 15.6% 14.8% 15.8% 20.7% 16.7% 16.0% 14.2% 15.8% +15.0% 16.7%
Operating profit 2.6 3.7 2.9 0.9 10.1 3.3 4.3 3.6 +25.7% 11.3 11.6 97.3%
Margin 7.1% 9.9% 8.0% 2.3% 6.8% 8.6% 10.4% 9.2% +9.4% 7.1%
Net income 1.5 2.7 2.1 0.7 7.0 2.1 3.1 2.6 +22.5% 7.8 7.9 99.0%
Margin 4.2% 7.0% 5.8% 1.8% 4.7% 5.4% 7.6% 6.5% +6.5% 4.8%
Unit：Person Q1 Q2 Q3 Q4 Q1 Q2 Q3 QoQ Q3 YoY Forecast
Number of engineers 15,761 15,887 16,078 16,926 17,387 17,856 18,153 +297 +2,075 19,100
Number of technicains 2,278 2,319 2,386 2,522 2,561 2,682 2,766 +84 +380 3,100
Total 18,039 18,206 18,464 19,448 19,948 20,538 20,919 +381 +2,455 22,200
Copyright © Open Up Group Inc. All rights reserved. 2
Segment Quarterly Results（IFRS）
 ME&IT and Manufacturing segments: Double-digit revenue and profit growth YoY.
 Subtotal of engineer dispatch businesses: Favorable Q3 performance with double-digit revenue
and profit growth.
FY22 FY23 FY22 FY23
Unit:billion yen Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 YoY Q3 Total Q3 total YoY
Revenue 16.8 17.5 17.6 18.6 19.0 19.9 20.3 +14.7% 52.1 59.3 13.7%
ME&IT
ME&IT
Gross profit 3.9 4.3 4.4 4.4 4.7 5.1 5.2 +18.9% 12.7 15.2 19.0%
Margin 23.3% 25.0% 25.0% 23.9% 24.8% 26.0% 25.9% 24.4% 25.6%
Operating profit 1.6 2.1 1.8 1.4 2.0 2.5 2.3 +25.4% 5.7 6.9 22.1%
Margin 9.7% 12.3% 10.5% 7.8% 10.7% 12.8% 11.5% 10.9% 11.7%
Revenue 9.0 9.4 9.2 9.2 9.5 10.1 10.2 +10.1% 27.7 29.9 8.1%
Construction
Construction
Gross profit 2.6 2.7 2.7 2.7 2.8 3.0 3.1 +12.6% 8.2 9.0 10.0%
Margin 29.6% 29.3% 30.1% 30.0% 30.3% 29.5% 30.7% 29.7% 30.2%
Margin 10.3% 17.9% 15.4% 13.9% 16.7% 17.7% 16.6% 14.6% 17.0%
Revenue 25.8 26.9 26.9 27.9 28.5 30.1 30.5 +13.1% 79.8 89.2 11.8%
Subtotal
Subtotal
Gross profit 6.5 7.1 7.1 7.2 7.6 8.1 8.4 +16.5% 20.9 24.2 15.5%
(Engineer) Margin 25.5% 26.5% 26.7% 25.9% 26.6% 27.2% 27.5% 26.2% 27.1%
(Engineer)
Margin 9.9% 14.3% 12.2% 9.8% 12.7% 14.5% 13.2% 12.2% 13.5%

Segment Quarterly Results（IFRS）
 Manufacturing segment: Steady growth.

 Overseas segment: Revenue and profits down YoY due to economic uncertainty and labor shortages
in the UK.
FY22 FY23 FY22 FY23
Unit:billion yen Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 YoY Q3 Total Q3 Total YoY
Revenue 2.2 2.4 2.3 2.5 2.6 2.7 2.8 +15.9% 7.1 8.2 +15.3%
Manufacturing
Gross profit 0.3 0.4 0.4 0.4 0.4 0.5 0.5 +17.8% 1.3 1.5 +17.0%
Manufacturing Margin 16.9% 19.2% 17.5% 18.1% 17.5% 19.1% 17.8% +0.0% 17.9% 18.2%
Operating profit 0.1 0.1 0.1 0.1 0.1 0.1 0.1 ▲22.5% 0.4 0.4 +1.7%
Margin 4.8% 7.1% 5.6% 5.6% 5.6% 6.2% 3.8% +0.0% 5.9% 5.2%
Revenue 8.1 8.2 6.6 7.1 7.5 8.1 6.1 ▲9.1% 23.0 21.8 ▲5.3%
Overseas
Overseas
Gross profit 1.0 0.9 0.8 0.8 0.9 1.2 0.8 ▲2.1% 2.9 3.0 +4.7%
Margin 13.3% 11.8% 12.3% 12.0% 13.0% 15.0% 13.3% +0.0% 12.5% 13.8%
Operating profit 0.4 0.2 0.0 ▲1.1 0.1 0.3 ▲0.0 ▲120.5% 0.7 0.5 ▲26.7%
Margin 5.2% 2.8% 1.4% ▲16.2% 2.3% 4.8% -0.3% +0.0% 3.2% 2.5%
Others/
Others/
Revenue 0.3 0.2 0.2 0.1 0.2 0.2 0.3 15.8% 0.8 0.8 ▲1.7%
adjustment
▲1.7
adjustment Operating profit ▲0.4 ▲0.5 ▲0.6 ▲0.8 ▲0.6 ▲0.6 ▲0.5 - ▲1.6 +4.9%
Margin ▲158.8% ▲200.3% ▲269.3% ▲473.8% ▲245.2% ▲232.2% ▲177.6% +0.0% ▲204.2% ▲217.7%
Revenue 36.5 37.9 36.2 37.8 38.9 41.3 39.6 +9.2% 110.7 119.9 +8.3%
Total
Total
Gross profit 8.3 8.8 8.6 8.6 9.2 10.1 9.9 +14.8% 25.7 29.3 +13.8%
Margin 22.8% 23.2% 23.8% 22.9% 23.7% 24.6% 25.0% +0.0% 23.3% 24.4%
Operating profit 2.6 3.7 2.8 0.8 3.3 4.3 3.6 +25.7% 9.2 11.3 +22.0%
Margin 7.1% 9.9% 8.0% 2.3% 8.6% 10.4% 9.2% +0.0% 8.4% 9.4%

Consolidated Change Factor in Operating Profit（IFRS）
 Domestic business performed well. Gross profit declined in the overseas business due to a decline in
revenue reflecting deteriorating business environment.
 Other SG&A expenses: Mainly costs for expanding business capacity, including personnel expenses for
sales and training.
（Million yen）
Domestic Overseas/ Other Recruitment Other SGA

gross profit expense expense Other
gross profit
Expense related to
Gross profit
sales growth
FY22 Q3 FY23 Q3
Operating profit Operating profit

Consolidated Change Factor in Operating Profit（IFRS）
 Manufacturing: Steady growth.

 Overseas: Revenue and profits down YoY due to economic uncertainty and labor shortages
in the UK.
（Million yen）
Domestic Overseas/ Other PPA Recruitment Other SGA Other

Stock option
gross profit gross profit amortization expense expense
Gross profit Business Integration- Expense related to

related Expenses sales growth
FY22 Q3 total FY23 Q3 total

Operating profit Operating profit

Consolidated Revision to Full-year Business Forecasts
 Domestic engineer dispatch business continued to perform well, while overseas business stagnated due to
deteriorating business environment.
 To make upfront investments in Q4 aimed at growth from the next fiscal year onward.
Major factors for changes in cost and SG&A ratios in Q4

FY22 FY23 FY23 FY23
Vs. initial
Unit: billion yen Full-year Initial Revised YoY
3Q total 4Q forecast forecast ① Expansion of investment due to favorable environment in
toal forecast forecast
engineer dispatch business
Revenue 14.8 16.4 11.9 4.2 16.2 ▲1.2% +9.2% ・Expansion of investment in recruitment for the next fiscal year
・Upward revision of engineer salaries from a medium-term
Gross profit 3.4 3.9 2.9 0.9 3.9 ±0.0% +13.3%
perspective
Margin 23.2% 23.8% 24.4% 23.1% 24.1%
② Hired a large number of new graduates and mid-career
SGA cost 2.4 2.7 1.8 2.6 2.6 ▲3.7% +8.3%
Margin 16.7% 16.9% 15.0% 22.3% 16.2%
engineers in April
・New graduates: Approx. 1,000, Mid-career: Approx. 600
Operating profit 1.0 1.1 1.1 1.2 1.2 +8.6% +22.9%
・Utilization and cost ratio temporarily deteriorated in Q4 (particularly
Margin 6.9% 7.1% 9.4% 3.6% 7.9%
Net income 0.7 0.7 0.7 0.1 0.1 +8.9% +16.0%
in April)
Margin 5.0% 4.8% 6.5% 1.8% 5.3% ③ Final stage of management integration
・Temporary expenses incurred due to integration of IT infrastructures,
system-company, etc.

Medium-term Plan
BY25 Performance Plan (Announced in August 2021)
 The medium-term plan will be revised together with the forecasts for the next financial year when the
annual results are announced.
Revenue Plan Operating profit Plan
(billion yen) (billion yen)

50.0 10.0 （%）
45.0 10.0
Target value (Challenge)
250.0 40.0 7.8 8.0
8.0
Planned value (Commitment) 35.0 6.8
200.0 Target value (Challenge)
30.0
162.0
25.0 6.0
25.0
148.5 Planned value
(Commitment)
20.0
12.6
16.0 4.0
15.0
10.1
10.0 2.0
5.0
0.0 0.0
（FY）
22 23 24 25 22 23 24 25 （FY）
（Revised plan） (Revised plan)
Results Results
Medium-term Management Plan Medium-term Management Plan

Segment Information

Machinery, Electronics and
IT Software Segment

1
0
Machinery, Electronics Number of Engineers and Utilization Rate /
IT
IT
Number of Recruits and Retiree
 Strengthen hiring while maintaining high utilization rates. Approximately 650 new graduates joined the Company in
April (approximately 300 for Machinery, Electronics and 350 for IT).
 Number of employees increased steadily (+1,543 YoY).
Number of engineers and utilization rate Number of recruits and retiree/Turnover rate
Unit: Person Management Management
Integration Integration Recruitment Retire Retirement rate
M&E engineers IT engineers Utilization rate
16,000
97.8% 1,500
100.0% 25.0%
96.1% 96.4% 96.3% 95.4% 21.3% 21.0%
94.7% 94.6% 95.1% 95.2% 95.9% 95.2%
20.0%
14,000 95.0% 17.3% 16.7% 20.0%
16.5%
12,387 15.5% 15.8% 15.7% 16.2% 16.1%
1,000
12,000 90.0%
15.0%
Decrease in 1,185 882 919
10,000 85.0% 855
recruitment by
776
6,145 6,310 738 10.0%
5,772 5,956 500 COVID-19
626
8,000 5,168 5,211 5,323 5,461 80.0%
543
5.0%
6,000 75.0% 45 52 243
2,333 2,231
2,267
0
4,000 70.0% 0.0%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
5,689 5,798 5,965 6,077
2,000 4,567 4,305 4,164 5,300 5,303 5,326 5,383 65.0% -5.0%
FY21 FY22 FY23
(500) -370
0 60.0% -447 -444 -448 -461
-522 -531 -506 -10.0%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
-619 -651
FY21 FY22 FY23 -739
(1,000) -15.0%
*Utilization rate = (number of active engineer + BP)/(number of employees + BP-number of non-active engineers) *Figures before integration are for reference only.
*Not including quarter-end retirement * Including year-end retirement
Machinery,
Electronics Monthly Billing / Engineers by Unit Price
 Steady increase in proportion of middle-class engineers (with a unit dispatch price of 3,000
yen or more).
 Operating days: Decreased QoQ due to seasonal factors
Ratio by unit price (contract work excluded) Ratio by unit price (contract work excluded)
Unit: Thousand/month/person
3,600 Unit: Days, Hour
Number of operating days Overtime
7,000
3,542
3,550
3,522 3,526 0.77
6,000
3,514
80 0.72 0.74 0.72 0.74 0.80
3,487 3,494 3,495 0.69 0.69
3,500
About 5,300 people
70 0.70
5,000
3,450 57.6 56.3 55.5 56.9 55.2
19.8% 19.5% 19.5% 21.3% 60 54.7 55.0 0.60
18.2% 18.2% 18.4%
4,000 ¥4,000～
3,400 50 0.50
～¥4,000
3,000 40 0.40
3,350
67.9% ～¥3,000
65.2% 65.5% 65.9% 65.3% 66.6% 68.0% 30 0.30
2,000 3,300
Hourly unit price
20 0.20
1,000 3,250 10 0.10
16.7% 16.3% 16.5% 14.9% 13.9% 12.6% 10.7%
0 3,200 0 0.00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 1Q 2Q 3Q 4Q 1Q 2Q 3Q
FY22 FY23
FY22 FY23
* Number of working days = Total number of working days / Number of dispatched worker*
*As of the end of the quarter *Overtime hours = (overtime hours + late-night overtime hours x 0.25) / total number of days worked

IT Software Monthly Billing / Engineers by Unit Price
 Despite an increase in the number of employees due to the hiring of inexperienced employees, our personnel
development model was successful and monthly billing continued to increase.
 Steady increase in proportion of middle-class engineers (with a unit dispatch price of 3,000 yen or more) through
training and OJT.
Monthly billing Ration by unit price (contract work excluded)

Management Unit: Thousand yen/month/person Unit: Yen/hour/person
integration 6,000
700 About 5,300 people
Former BNG:590 thousand yen 5,000
Former YHD:557 thousand yen 17.9％ 18.5%
13.7% 18.5％
618 613 615 4,000 16.3% 17.2% ¥4,000～
16.5% ～¥4,000
599 601 598 600
589 39.6％ 41.4%
573
3,000
32.7% 34.7% 38.5% 38.4% ～¥3,000
32.9%
2,000
533
523
1,000 50.7% 51.0% 48.1% 47.8% 43.1％ 42.5％ 40.1%
500
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY21 FY22 FY23
FY22 FY23
• Billing amount = Net sales/Number of active engineers (active engineers excluding BP)
• Average number of active employees is the average over the past 6 months (average of
the previous quarter total and the current quarter total)

Construction Segment

Construction
Number of Engineers / Number of Recruits and Retiree
 Steady growth in the number of employees (+532 YoY). HIred approx. 330 new graduates hired in April.
 The number of retirements is seasonally highest in Q3 (especially in March), but the number of new hires exceeds the
number of retirees in this quarter.
Number of engineers and Utilization rate Number of recruits and retiree/Turnover rate
Unit: Person Unit: Person
Number of enrolled engineers Utirization rate
Number of recruits Number of retiree Turnover ratio
6,300 96.6% 96.5% 95.5% 95.7% 96.5% 95.9% 95.3% 100.0%
93.4% 93.2% 800 27.2%
6,100 91.3% 92.1% 95.0% 24.8% 23.8%
25.5%
22.0% 21.7% 21.6% 21.6%
5,900
5,746 5,766
90.0%
20.4% 20.5% 21.6% 21.4%
600
5,700
5,633 85.0%
5,465 80.0%
515 545
5,426 727 15.5%
5,500
5,327 400 470
5,240 5,239 5,247 5,238 5,234 75.0%
394 426
5,300
70.0% 331 312 341 325
5,100 200 5.5%
65.0%
213
4,900
60.0%
4,700 55.0%
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -4.5%
4,500 50.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -200 FY21 FY22 FY23
-14.5%
FY21 FY22 FY23 -302 -292
-400 -337
-415 -397 -385 -387 -390
-429 -422 -421
*Utilization rate: Number of active engineers / (Number of enrolled engineers - Number of non- -600 -24.5%
*Retirement rate: Number of retiree during 1 year ÷ (Number of enrolled engineers at the end of
active engineers) period + Number of recruits during 1 year)
*Not including year-end retirement * Including year-end retirement

Construction Monthly billing / Ratio by Length of Service
 The monthly billing is steadily increasing.

 Increase in new employees due to more hiring.
Monthly billing Ratio by length of service

Unit: Thousand yen/month/person
100%
700 10.8% 11.3% 11.7% 12.8% 12.2% 13.7% 14.3% 14.8%
14.9%
Fixed-term
80% 15.4% 17.1% 18.3% 19.8%
20.2% 19.7%
634 637 20.3% 20.6% 20.9%
6th year～
630
622 623 626 623 625 619 621 7.3%
8.0%
8.8%
606 8.6% 9.4% 8.3% 7.7%
60% 11.6% 8.0% 8.8% 5th year
11.3%
600 10.8%
11.9% 12.9% 13.2% 12.2% 11.2% 9.6%
16.8%
4th year
18.5% 18.2% 7.6% 7.5% 7.1%
40% 14.6% 9.4%
16.6% 3rd year
12.1% 11.1% 11.4%
20.3% 11.4%
14.5% 11.7% 11.3% 2nd year
11.1%
20%
500 26.0% 26.6% 27.5% New
20.5% 24.3%
Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. 17.9% 19.3% 18.8% 19.8%
recruits
FY21 FY22 FY23 0%
Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar.
FY21 FY22 FY23
• Billing amount = Net sales/Number of active engineers
• Average number of active employees is the average over the past 6 months (average of
the previous quarter total and the current quarter total)

Construction Number of Operating Days / Overtime
 Operating days: Requests for closure due to COVID-19 have largely ceased and the number of
operating days has returned to normal level.
 Overtime: No change compared to the previous 2 years.
Number of operating days Overtime
Unit: Day Unit: Hour
59.3 58.9 58.7 58.6 58.4 58.9 59.0 58.1 59.0 58.5 59.6
1.49 1.50
1.40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY21 FY22 FY23 FY21 FY22 FY23
* Number of operating days = Total number of working days / Number of * Overtime = (overtime hours + late-night overtime hours x 0.25) / total number
dispatched workers of days worked

Manufacturing Segment

Manufacturing Sales by Industry for Manufacturing / Overtime
 Diversified portfolio by industry

 Overtime: Decreased due in part to production adjustments.
 KPI figures were solid, but revenue and profits did not reach expectations due to adjustments in operating hours
reflecting production adjustments.
Sales by industry for manufacturing Number of operating days / Overtime
Number of operating days Overtime Unit: Days, Hour
2.2 billion yen Other 0.78

0.76 0.77
0.73 0.80
2.0 billion yen 6.6% Other Manufacturing 70 0.71 0.70
0.65 0.70
8.2% 15.4% Building 60 54.5 53.3 53.3 54.0 52.8
Materials/Housing 52.1 52.0 0.60
16.8% 3.7%
4.5% Foodstuffs 50
4.2% 5.4% 0.50
4.7% 3.8% Pulp & Paper 40
4.3% 0.40
Chemicals 30
30.7% 0.30
30.8%
Machinery
20 0.20
10.4% 11.8% Electrical Equipment
10 0.10
Transportation
19.6% 18.1%
Equipment 0 0.00
Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY22 Q3 FY23 Q3
FY22 FY23
Manufacturing
Number of Employees / Unit Price / Operating Days
 Number of Employees：Increased steadily（+84 QoQ）

 Contract Unit Price：Continued upward trend
 Operating Days：Decreased due to seasonality and the impact of production adjustments.
Number of technician Ratio by unit price

3,000 Unit: Person
Unit: Yen
2,200
2,766
2,682
2,500
2,561
2,150
2,522
2,114
2,386
2,319
2,278
2,278
2,100
2,000
2,109
2,059
2,035
1,972
2,050
2,018
1,500
2,000
1,000 1,950
1,900
500
1,850
0 1,800
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY21 FY22 FY23 FY21 FY22 FY23

Overseas Segment

Overseas External Environment
 Negative growth forecast for the UK business this fiscal year. Sales in our UK business are expected to
decline year on year due to the impact of labor shortages.
Real GDP by Country Factors behind the deterioration in the business climate in the UK
2022 Estimate 2023 Forecast
4.1%
１ Impact of COVID-19
2.0% • Disruptions in the global supply chain
1.8%
1.4% 1.4% • Sharp recovery in demand after the lockdown
• Work style reform, increase in personnel costs due to
labor shortage
Japan US UK -0.6%
Source: Global Economic Outlook, January 2023,
revised (IMF)
2 Impact of the Russian invasion of Ukraine
• Rising crude oil and natural gas prices
Overseas Segment: Revenue Trends • Rising prices for wood, metals, semiconductors and
Unit: million yen foodstuffs
8,103 8,264 7,581 8,162 • Economic sanctions against Russia and the
6,654 7,187
6,052 withdrawal from the Russian market
3 Impact of Brexit
• Disruptions in procuring goods from EU
1Q 2Q 3Q 4Q 1Q 2Q 3Q • Sharp decline in workers from Europe
FY22 FY23
• Drop in exports

BS

Finance BS
 Contributing to growth by leveraging a strong financial base

Vs. Vs.
previous previous
Unit: million yen FY22.6 FY23.3 FY22.6 FY23.3
fiscal year- fiscal year-
end end
⚫ Net cash: 8,675 million yen
⚫ DE ratio (After deducting goodwill): 0.17x

Current assets 36,609 38,465 +5.1% Liabilities 33,176 32,883 ▲0.9%
*DE ratio＝ Borrowings ÷ (Total equity - Goodwill)
Cash & cash Interest-bearing ⚫ Net income (forecast):

equivalent 12,404 11,756 ▲5.2%
liabilities 1,848 3,081 +66.7%
8,600 million yen
Trade receivables
Trade and other
and other current 22,965 26,709 +16.3%
current liabilities 22,045 29,801 +35.2% ⚫ ROE: 13.5%
assets *ROE = Net income announced at the beginning of the period ÷
Equity (FY2023 Q2)
Non-current
assets 59,912 57,904 ▲3.4% Equity 63,345 63,486 +0.2%
⚫ Simplified invested capital:
66,567 million yen
Goodwill 45,362 45,440 +0.2% Treasury shares ▲4,306 ▲8,261 -
⚫ Simplified ROIC: 12.9%
*Invested capital = Borrowings + Total equity
Liabilities and
Total assets 96,521 96,370 ▲0.2%
equities 96,521 96,370 ▲0.2% *Simplified ROIC = Net income forecasted ÷ Invested capital (FY23 Q2)
* "Trade receivables and other current assets" is calculated by subtracting cash and deposits from current assets.
* "Trade and other current liabilities" is calculated by subtracting borrowings and lease liabilities included in current liabilities from current liabilities.
* "Other liabilities" is calculated by subtracting borrowings and lease liabilities included in non-current liabilities from non-current liabilities.
Shareholder Return Shareholder Return Policy
 Dividend: Plan to increase this fiscal year. Aiming for continuous dividend increases in line with profit
growth.
 Acquisition of treasury stock: Conducted for 2 consecutive years to optimize BS. Considering further
acquisitions for the next financial year, given M&A status.
Dividend Acquisition of treasury stock

FY22 FY23
Forecast Change FY22 Actual FY23 Results
45 47
50.0 Result Forecast
Interim ¥17 ¥17 ±¥0 44 August 10, 2021- November 1, 2022-

45.0 Acquisition period
40 January 13, 2022 February 2, 2023
Year-end ¥28 ¥30 +¥2
40.0
35 Number of shares
2,650,000 shares 2,150,000 shares
Annual ¥45 ¥47 +¥2 acquired
35.0
27.5
Acquisition cost About 4.0 billion yen About 4.0 billion yen
30.0
25.0 22.5
20
20.0
15 2nd round
15.0 12.5 1 st round
¥4 TBD
10.0 7 7 7.5 ¥4 billion
5.0 (completed) billion
5.0 (completed
0.0
10 11 12 13 14 15 16 17 18 19 20 21 22 23 (FY) FY22 FY23 FY24 FY25

Finance Basic Financial Policy
∎ To increase corporate value over the long term, we established optimal capital and financial
policies supporting sustainable growth.
• ROE target revised from the original

target at 10%
Recover ROE to 15% Setting hurdle rates for
• Revaluation of goodwill • Target: WACC 8％
or higher (implemented) M&A investment criteria
• Purchase of treasury stock
• While prioritizing liabilities, respond

Maintain solid financial Finance for M&A
• Maintain DER within 1.0 times flexibly in view of project size and
base investments liquidity of shares.

Finance Cash allocation
Profit return (the figures shown are images) Use of cash flows
Profit before income
100 taxes before incentives
Employees
• Bonus/ incentives Investment in organic growth
Management
• Investment in training • Investment in recruitment
• Investment in training (reskilling)
Profit before income
75 taxes
Government
Local authority • Tax payment
Shareholder return
• Increase dividend every quarter (more than 4 billion yen
50 Profit after taxes in the present period)
• Acquisition of own shares (4 billion yen in the present
period)
• Dividend
Shareholders
• Acquisition of own shares
• Growth investment
Company
M&A investment
• M&A
• Domestic Engineering business
0 Internal reserve

Non-Financial Indicators and OPI Indexes
Business Model Ideal Business Model
Open up individual potential through rewarding work

Achieve our purpose
❷
Contributing to society Job
Our values
opportunities Employee-centric
Expansion of job
❸ ❶
opportunities culture
Career Investment in
advancement engineers
Achieve ❼ Increase
“Purpose Attract business
Index” talented performance
targets*
Promotion of people
Purpose Increase corporate
value
❹ ❻
Increase unit
Helping
Improve
Solving price satisfaction employees
society’s problems ❺ realize their dreams
Reskilling Increase Career advancement

wages
Moving to client company
*OPI：Open Up Purpose Index（Purpose Index）

Business Model
Our Purpose and Medium-term Management Plan Targets
Purpose Open up individual potential through rewarding work
Achievement of
OPI Improvement of KPIs Mid-term plan
Support from Number

employees Number of employees: 30,000 of Utilization
qualificati rate
ons
Commitment
Number
Encounters of Revenue : 200 billion yen
with work Number of new contracts: 50,000 engineers
Operating profit : 16 billion yen
Operating profit margin : 8％
Career Unit cost Turnover
advancement Mid-engineer training: 6,000 rate
Challenge
Revenue : 250 billion yen
Number
Retention rate Retention rate : 85％ of recruits Operating profit : 25 billion yen
Operating profit margin : 10％
Number Labor
Engagement Satisfaction score: 1.2x of clients productivi
ty

Purpose OPI: key performance indicators to achieve the purpose
 Progress on the OPI, which represents the achievement of the Purpose by FY6/25.
Number of employees Encounters with work Career advancement
20,632 employees 25,048 jobs 3,303 employees
30,000 50,000 6,000

（QoQ +214）（QoQ +4,581）（QoQ +576）
Ref.
Retention rate Item Name
Engagement
82.6 %
1.2 times
Actual value
As of end-FY6/22 FY25 target
85%
• OPI: Open Up Purpose Index • Retention rate: Annual retention rate, including resignations due to
• Number of employees: A measure of the degree of penetration of our philosophy. Target by the end of FY6/25. transfer to customer companies in recognition of work performance.
Average for FY6/25.
• Encounters with work: Number of contracts started in our group. Cumulative from April 2022 to June 2025.
• Engagement: Percentage increase in the engagement survey score of
• Career advancement: Number of employees reaching the mid-level skill. Cumulative from April 2022 to June
2025. FY6/22 compared to FY6/25.

Purpose Expansion of employment opportunities
 Intra-group collaboration expands employees’ opportunities

 Expanding possibilities through transfer to customer companies
Intra-group assignments Intra-group transfers Transfer to customer companies
591 employees 119 employees 575 employees
QoQ + 113 employees QoQ + 4 employees QoQ +65 employees
* Cumulative total for 24 months after integration (April 2021 to March 2023)
* Intra-group assignments: A separate company within the Group supports the assignment of engineers.
Intra-group transfers: Transfer engineers to another company within the Group to expand the scope of their job opportunities.
Transfer to customer companies: Transfer to the customer company to which they are assigned.
Actual case: transfer to customer company

Mr. T.S. (transferred from our ME company to Hitachi, Ltd.)
• When discussing his future career with a colleague who is a Hitachi employee, he was offered a job as a direct hire.
• Working in the Defense Systems Division of Hitachi, Ltd. on the design of mass production of defense products.
• The long-standing business relationship between us and Hitachi has enabled him to gain experience in several group companies and to
understand complex systems.

Purpose Reskilling (Promotion of Qualification Acquisition)
 Promote reskilling to help employees improve their skills

 Develop inexperienced employees into engineers
IT-related qualifications Construction-related qualifications
Construction Construction
Construction Construction
managing engineer managing engineer
salesforce Azure AWS managing engineer
First-class assistant
managing engineer
Second-class
First-class Second-class
engineer assistant engineer
355 423 1,419 29 104
（QoQ +50）（QoQ +58）（QoQ +206）
55 303
（QoQ +10）（QoQ ±0）（QoQ +52）（QoQ +122）
Others 2,875 Others 2,859

（QoQ +832）（QoQ +375）
Total 5,072 Total 3,350

(QoQ +1,146）（QoQ +559）
*Apr.2021 to Mar. 2023 total

Purpose Promoting Diversity
 Diversity ratio (as of March 31, 2023)

 The number of non-Japanese employees declined temporarily under the COVID-19 crisis.
Ratio of non-
Ratio of female Ratio of employees
Japanese
employees with disabilities
employees
26.4 ％
2.9 ％
2.3 ％
（QoQ +0.5pt.）
（QoQ ▲0.2pt.）
*At end-June 2022.

Disclaimer
This material is intended to provide explanations of our business and is not intended to solicit
investment in securities issued by us.
The forecasts described in this document are our judgments at the time of preparation of this
document, and the accuracy of information is not guaranteed.
It is also subject to change without notice in the future.
In the unlikely event that we or our providers of information were to suffer any damages
based on this information, we and our providers assume no liability.
Inquiries: Investor Relations, Open Up Group Inc. ir@openupgroup.co.jp

FY23 Q3 Financial Results: Open Up Group Inc. May 12, 2023

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FY23 Q3 Financial Results: Open Up Group Inc. May 12, 2023

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FY23 Q3

Copyright © Open Up Group Inc. All rights reserved.

 YoY increase in sales and profits.

Unit：Person Q1 Q2 Q3 Q4 Q1 Q2 Q3 QoQ Q3 YoY Forecast

Copyright © Open Up Group Inc. All rights reserved. 3

 Manufacturing segment: Steady growth.

Copyright © Open Up Group Inc. All rights reserved. 4

Domestic Overseas/ Other Recruitment Other SGA

Copyright © Open Up Group Inc. All rights reserved. 5

 Manufacturing: Steady growth.

Domestic Overseas/ Other PPA Recruitment Other SGA Other

Gross profit Business Integration- Expense related to

FY22 Q3 total FY23 Q3 total

Copyright © Open Up Group Inc. All rights reserved. 6

Major factors for changes in cost and SG&A ratios in Q4

Copyright © Open Up Group Inc. All rights reserved. 7

Revenue Plan Operating profit Plan

(billion yen) (billion yen)

（Revised plan） (Revised plan)

Medium-term Management Plan Medium-term Management Plan

Copyright © Open Up Group Inc. All rights reserved. 8

Copyright © Open Up Group Inc. All rights reserved. 9

Copyright © Open Up Group Inc. All rights reserved.

Copyright © Open Up Group Inc. All rights reserved. 12

Monthly billing Ration by unit price (contract work excluded)

Copyright © Open Up Group Inc. All rights reserved. 13

Copyright © Open Up Group Inc. All rights reserved. 14

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -200 FY21 FY22 FY23

Copyright © Open Up Group Inc. All rights reserved. 15

 The monthly billing is steadily increasing.

Monthly billing Ratio by length of service

Copyright © Open Up Group Inc. All rights reserved. 16

Number of operating days Overtime

Unit: Day Unit: Hour

Copyright © Open Up Group Inc. All rights reserved. 17

Copyright © Open Up Group Inc. All rights reserved. 18

 Diversified portfolio by industry

Sales by industry for manufacturing Number of operating days / Overtime

Number of operating days Overtime Unit: Days, Hour

2.2 billion yen Other 0.78

 Number of Employees：Increased steadily（+84 QoQ）

Number of technician Ratio by unit price

Copyright © Open Up Group Inc. All rights reserved. 20

Copyright © Open Up Group Inc. All rights reserved. 21

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Copyright © Open Up Group Inc. All rights reserved. 23

 Contributing to growth by leveraging a strong financial base

⚫ DE ratio (After deducting goodwill): 0.17x

Cash & cash Interest-bearing ⚫ Net income (forecast):

Dividend Acquisition of treasury stock

Interim ¥17 ¥17 ±¥0 44 August 10, 2021- November 1, 2022-

Copyright © Open Up Group Inc. All rights reserved. 25

• ROE target revised from the original

• While prioritizing liabilities, respond

Copyright © Open Up Group Inc. All rights reserved. 26

Copyright © Open Up Group Inc. All rights reserved. 27

Open up individual potential through rewarding work

Reskilling Increase Career advancement