The Group recognizes below as important management issues.

1Increase the number of employees by continuously strengthening recruitment and assignment.

In the Group's domestic business segments of Engineering and Manufacturing field, the active job openings-to-applicants ratio is high, and the hiring environment is challenging due to competition not only among human resources service companies but also among manufacturing companies.

On the other hand, in order to achieve the growth speed we aim for, we recognize that it is important to build an organizational mechanism that will increase the number of recruits year by year.

To address this issue, the Company places top priority on "people." In addition to strengthening channels and contact points with job seekers, the sales and recruitment departments work in a speedy manner to ensure understanding the area and career plans that applicants accurately want, present many jobs that satisfy them, and propose opportunities for applicants to take on challenges.

This has also helped to accurately match the employees who have completed their assigned projects to new assignment suitable to their experience and evaluations, and has also contributed to the smooth start of next assignment. Through these initiatives, we will increase the number of employees in the Group and promote sustainable growth.

2Create a better working environment and realize careers for the employees

The Group recognizes that the support for our employees, such as temporary staff, working at client companies is an important issue. National policy, such as Work style reform, is also important initiative for our Group. In addition to monitoring the status of employees' long working hours, health and safety, and employee education, we actively get involved into client companies when deemed necessary, and strive to create a better environment for our employees.

In the Engineering field, we are converting employees' skills and client's evaluations into big data, and promoting initiatives such as considering career plans and improving quality and control of calculating appropriate hourly charge for client. As a result, we will gain a fair understanding of the value such as employees' salaries and bonuses, and will strive to improve their careers by transferring them to the assignment in accordance with their wishes.

For our employees of foreign nationalities which is increasing in course of our coping with diversity, we provide job support in client companies, daily life support considering their different customs and cultures, and has established support desks. These efforts are contributing to the increase in the number of employees of foreign nationalities.

3Expansion of business domains and regions (countries)

As part of our growth strategy, we are looking to expand our business domains. Rather than pursuing new business opportunities greatly different from existing business, we are aiming to expand our business in line with the current and future technological needs of manufacturing. We also recognize the importance of expanding our business in tandem with existing businesses while expanding the scope of our business. For example, in the IT field, as technologies evolve, the needs of engineers capable of responding to embedded control software and IoT related to automotive component control and linkage are emerging from client companies. Also, many engineers are interested in changing jobs related to the emerging needs, and we believe that the job-matching in such broader range of business domains is the plenty room for the growth of the Group.

In terms of regional expansion, we aimed to establish a business foundation in developed countries with matured staffing markets, similar to Japan, and we are aggressively executing M&A in United Kingdom.

On the other hand, we are striving to enter regions such as China, Viet Nam, and Indonesia, through the establishment of joint ventures. The staffing markets of such regions, despite high potential for future growth, are still in emerging stage due to legislation and labor practices. We recognize the importance of capturing promising investment and entry opportunities in expanding business in these geographical segments, as well as post-investment growth and improving profitability. At the same time, we will focus on strengthening the management of overseas subsidiaries and on group corporate governance.