Relia : Notification Related to Mid-term Management Plan 2023

May 14, 2021

To All Concerned Parties

Relia, Inc.

2-6-5, Yoyogi, Shibuya-ku, Tokyo

(Code number: 4708, First Section of the Tokyo Stock Exchange)

President: Takashi Amino

Contact: Kenichiro Iwamoto

General Manager, Corporate Communications Div. Tel: [phone] (main)

Notification Related to Mid-term Management Plan 2023

Details

At the meeting of the Board of Directors held on May 14, 2021, the Company gives notification that it has established Mid-term Management Plan 2023 for the period up to the fiscal year ending March 2024.

1. Background to the formulation of the Plan

With regard to its mid-term management plan Business Strategy 2020 for the period up to the fiscal year ended March 2021, the Company largely achieved its quantitative goals by promoting the reform of its profit structure and reviewing its portfolio. On the other hand, some issues inherent to the Company became evident, so we recognized the necessity of establishing without delay a solid business foundation that is focused on growth going forward. In order to deal with the tumultuous changes in the business environment, such as social changes brought about by the spread of infection from COVID-19, the new Mid-term Management Plan for the period up to the fiscal year ending March 2024 was formulated, based on the results and issues obtained with Business Strategy 2020.

2. Outline of the Plan

(1) Period of the Plan

From FY ending March 2022 to FY ending March 2024

(2) Outline

With the vision of becoming "Reborn as the 'No. 1 Reliable Company' for each and every stakeholder," the Company will undertake efforts in the three key themes of "Create CX (customer experience)," "Create EX (employee experience)," and "Strengthen the business foundation." The Company will promote these three key themes, and endeavor to further increase the profitability of the Relia Group as a whole and realize the diversification of its services and business portfolio through qualitative growth of its domestic contact center business, and quantitative growth of its overseas business and back-office business, and establish the strong partnerships with client companies.

(3) Quantitative Goals (FY ending March 2024)

Net sales: 135.0 billion yen; Operating profit: 12.0 billion yen; Operating profit margin: 8.9%; ROE: 15.0%

* Please refer to attachment for details.

(NB) The data and future forecasts disclosed in these materials are based on decisions made and information available at the time of their respective announcements, and changes may occur due to various factors, and, as such, the achievement of these goals and forecasts, and future results are not guaranteed.

Mid-term Management Plan (FY2021 - FY2023)

May 14, 2021

© 2021 Relia, Inc. All rights reserved.

Table of Contents

Review of Business Strategy 2020

Mid-term Management Plan 2023

• Qualitative Review of Business Strategy 2020
• Quantitative Review of Business Strategy 2020
• Basic Policy for Initiatives to Restore Trust (outline) Status of progress

What the Company is Aiming to Be - Sustainability Policy

• The Company's Social Mission
• Story of Value Creation
• The Society We Hope to Realize
• Group Vision (Reliable Ring)
• Materiality (important issues related to our business activities)

z

z

z

z

z

z

z

z

z

Environmental awareness

Mid-term Management Plan 2023 - Vision Direction of growth aimed at realizing the Vision Mid-term Management Plan 2023 - Key themes Key themes

Specific measures Quantitative goals Shareholder returns policy Efforts related to sustainability

© 2021 Relia, Inc. All rights reserved.

Review of Business Strategy 2020

• © 2021 Relia, Inc. All rights reserved.

Qualitative Review of Busines Strategy 2020

"Reform of profit structure through implementation of 4 innovations" is making steady progress

Digital

Innovation

Service

Innovation

Market

Innovation

Management

Innovation

• Framework for planning and development of digital services was established, increasing the digital menu, and expanding the implementation of omni-channels and hybrid services
• It is necessary to expand digital services and further strengthen the framework for promoting such services
• Assessment services menu was expanded, and promotion framework aimed at providing high value-added services through in-house collaboration was established
• It is necessary to continue efforts aimed at further building up results and improving the ability to make proposals
• Management framework of overseas sites was strengthened, and the business operations of each company were stabilized
• Costs increased due to costs to deal with COVID-19, but the scale of the business was maintained and large-scalework-at-home operations were realized
• Maintained jobs by reforming the personnel system that supports the meaningfulness of doing work and measures to prevent infection. Increased direct employment rate by enhancing recruiting.
• It is necessary to continue efforts to revitalize collaborations between organizations and dissemination of information

© 2021 Relia, Inc. All rights reserved.

Quantitative Review of Business Strategy 2020

Quantitative goals were, for the most part, achieved by promoting various measures, including restructuring customer portfolio, with earning power steadily expanding

Strict profit

management, including restructuring customer portfolio

• Each division formulated and steadfastly promoted policies for selecting and focusing on investment targets. Significant improvement was made in profitability
• While steadily capturing spot business contributed to achieving quantitative goals, it is necessary to continue making further improvements to basic operations

Improve productivity

by enhancing recruiting

and training, and suppressing the turnover rate

• Through promotion of such initiatives as enhancement of recruiting, expansion of training, and various measures related to care for employees, significant improvements were achieved in the

direct hiring rate and turnover rate

• In conjunction with various measures for recruiting and training, the establishment of a working environment and the fostering of a corporate culture to enable employees to work with vitality will be promoted

• © 2021 Relia, Inc. All rights reserved.

Quantitative Review of Business Strategy 2020 (Consolidated)

The fiscal year ended March 2020 achieved record-high profits, and also achieved the goal

for the amount of profit for the fiscal year ended March 2021

Earning power was steadfastly expanded and growth was realized through Business Strategy 2020

	Net sales			1,287	1,276	Unit: 100 million yen
1,400				140
	goodwill		1,098	1,158		1,160
1,200	Operating profit before			120
1,000	(Operating profit margin)	962	120	101		100
		815		9.3%
800	742			7.9%	93	80
			70	72		8.0%
600			6.4%	6.2%			60
400	37	46	48				40
	5.7%	5.0%
200	5.0%						20
0							0

FY ended	FY ended	FY ended	FY ended	FY ended	FY ended	FY ended
March 2015	March 2016	March 2017	March 2018	March 2019	March 2020	March 2021
					Business Strategy 2020 Results
	© 2021 Relia, Inc. All rights reserved.

(Reference)

Business Strategy

2020

Goals