Entering the Startup Investment Business and Establishing a Subsidiary

「We completed the allocation of investments against the investment limit established when the fund was formed.」

「As of the end of the current consolidated fiscal year, there were 8 portfolio companies, as shown below.」

「The venture capital business operates a fund that invests in startups to further strengthen Growth Industry Support for companies receiving human resources support from the Company's Talent Agency service. Its investment targets are domestic startups and venture companies at the mid- to late-stage, as well as startup support projects, that are also human resources support clients. As only administrative expenses continued to be incurred during the current interim consolidated accounting period, the segment loss was ¥3,722 thousand, compared with a loss of ¥3,831 thousand in the same period of the previous year.」

「During the third quarter of the current consolidated fiscal year, the Company additionally invested in 株式会社ナレッジワーク, bringing the number of portfolio companies to 6.」

「As of the end of the second quarter of the current consolidated fiscal year, the 5 portfolio companies of フォースタートアップス１号投資事業有限責任組合 were 株式会社フェズ, ユアマイスター株式会社, READYFOR株式会社, ポケトーク株式会社 and 株式会社カケハシ.」

「As only administrative expenses continued to be incurred during the first quarter of the current fiscal year, the segment loss was ¥2,080 thousand, compared with a loss of ¥1,270 thousand in the same period of the previous year. As of the end of the first quarter of the current consolidated fiscal year, the 5 portfolio companies of フォースタートアップス１号投資事業有限責任組合 were 株式会社フェズ, ユアマイスター株式会社, READYFOR株式会社, ポケトーク株式会社 and 株式会社カケハシ.」

「During the current consolidated fiscal year, the Company invested in 3 companies—READYFOR株式会社, ポケトーク株式会社 and 株式会社カケハシ—bringing the number of portfolio companies to 5.」

「During the third quarter of the current consolidated fiscal year, the Company additionally invested in ポケトーク株式会社 and 株式会社カケハシ, bringing the number of portfolio companies to 5.」

「Main changes from the previous fiscal year (*) Marketable securities for operating investment purposes (¥103,024 thousand), cash and deposits (¥34,367 thousand), and accounts receivable (¥35,192 thousand). The increase in marketable securities for operating investment purposes resulted from the acquisition of shares through the venture capital business.」

「As only administrative expenses continued to be incurred during the first quarter of the current fiscal year, as in the previous consolidated fiscal year, the segment loss was ¥1,270 thousand.」

「From the current consolidated fiscal year, the Group has operated an investment business for startups and made investments in 2 companies during the current consolidated fiscal year.」

「With the mission “(Together) at the centre of evolution” and the vision “for Startups,” the company aims to become growth-industry support infrastructure that provides challengers with the support they need. As a foundation for this goal, it has developed its Talent Agency and Open Innovation services, and since the second quarter it has also invested in startups as a Hybrid Capital business. These services are being developed as its growth-industry support business.」

「During the first quarter of the current fiscal year, the Company established フォースタートアップスキャピタル合同会社. However, because it had not yet commenced operations and was not material, it was treated as an unconsolidated subsidiary.」

「At a meeting of the Board of Directors held on 17 May 2021, the Company resolved to establish a subsidiary for the purpose of investing in startups and other companies, and established it on 21 May 2021. To create synergies with its core Talent Agency service and further strengthen the Growth Industry Support defined by the Company, it decided to launch an investment business as financial support.」