I N T E G R AT E D
REPORT

2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

01

CONTENTSCONTENTS

1 About the PERSOL Group

4 Foundation for Value Creation

PERSOL Group’s Vision Structure

03

Active Roles of Diverse Human Resources

40

History of the PERSOL Group04

Strengthening Data Governance44

At a glance05

Respect for Human Rights

45

Responding to Climate Change

46

Corporate Governance

2 PERSOL Group’s Value Creation

Corporate Governance:
Basic Policy and History of Strengthening

48

Message from the CEO

07

Message from the Chairperson of the Board

49

Initiatives to Improve People’s Career Well-being

11

Corporate Governance Structure

50

12Interview with Independent Directors

53

13

Directors and Executive Officers

56

Value Creation Story for 2030
Materiality

3 Strategies for Value Creation

Director and Officer Compensation and Succession Plan

58

Evaluation of Effectiveness of the Board

60

Risk Management

62

Information Security

65

Overview of PERSOL Group Mid-term Management Plan 2026

18

Crisis Management

66

Message from the CSO

19Compliance

67

Message from the CFO

23

Message from the CHRO

25

The Staff Well-being Committee

28

Message from the CIO/CDO

30

Strategy by Business Field

Financial and Non-financial Data/

5 Corporate Profile

Group Structure and Strategic Policies

32

Staffing SBU

33

Financial DataBPO SBU

34

Non-Financial Data

75

Technology SBU

35

Corporate Profile/Stock Information

79

Career SBU

36

Asia Pacific SBU

37

R&D FU

38

69

PERSOL Group Integrated Report 2023

About the PERSOL Group1PERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-financial Data/
Corporate Profile02

About the PERSOL GroupPERSOL Group’s Vision Structure

03

History of the PERSOL Group04

At a glance

05

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

Foundation for Value Creation

03

PERSOL Group’s Vision Structure

PERSOL Group’s Vision Structure

Group
VisionThe society the PERSOLGroup wants to realize

Who we want to be
What the PERSOL Group aims to be
like as a company

Five Core Principles
The values that the PERSOL Group seeks all employees to act and deliver on

Corporate Philosophy
Significance of the PERSOL Group’s existence

Working life is a journey of growth and creation.
We all have big dreams,
and there are many different paths to success.
Thus, we need to make our own choicesfrom a range of diversified work opportunities.
Our vision is to enrich society so that
all work leads to lives of happiness.

A “Career Well-being” Creation Company
Expanding the possibilities of eachindividual and the freedom of working,and increasing the happiness for bothindividuals and society.

Authentic

Customer-Focus

Professional

Teamwork

Providing Opportunity

Innovative

Individual GrowthSocial Contribution

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

Foundation for Value Creation

04

History of the PERSOL Group
2023

PERSOL Group Mid-termManagement Plan 2026 isformulated with Value Creation
Story for 2030

History of the PERSOL GroupNet sales

October 2019

The roots of the PERSOL Group go back to Tempstaff Co., Ltd., which was founded in 1973.

Change the Group Vision to“Work and Smile”

The company was born at a time when the concept of temporary staffing had not arrived in Japan, and wehave led the industry by providing our services as a new work style to a large number of people.

1,223.9billion yen

April 2020

Since then, as a comprehensive human resource services provider,2023/3

Shifted to a five SBU

we have worked with many companies and expanded our businesses in line with the wishes of working
individuals and the needs of the times.

(Strategic Business Unit) structure
August 2020

1986

History/Trends in net sales

April 2013

Tempstaﬀ Co., Ltd. starts a
temporary staﬃ ng business
January 1989

Launch DODA (currently doda), a
career change information magazine

May 1973

Tempstaﬀ Co., Ltd.
(currently PERSOL TEMPSTAFF CO., LTD.) is

1993

established

Tempstaﬀ Co., Ltd. starts global
expansion

Carrying on the aspirations of our founder,
we at the PERSOL Group aim to realize a society in which all people can
When our founder Shinohara graduated from high school andbegan working, there were still few women joining the workforce.
Shinohara founded Tempstaff Co., Ltd. in 1973 with the aim ofcreating a society in which every woman who wanted to work
could play an active role. Since then, we have contributed tosociety by providing many people with opportunities to play anactive role in line with the times.

1980

1990

2000

2006

Expansion in businesses and service domains

Temporarystaﬃ ng

2007

Intelligence Holdings, Ltd.
becomes a consolidated
subsidiary
July 2016

Announce the Group brand,“PERSOL”
Announce the brand tagline,“Work and Smile”

October 2008

continue to work enthusiastically and live happily.

1970

Mid-term Management Plan
2023 is formulated

2008

Tempstaﬀ Co., Ltd. and Tempstaﬀ
People Co., Ltd. merge andestablish Temp Holdings Co., Ltd.
(joint holding company)

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Fiscal year
ended March

Asia Pacifi c (APAC) business
Career change media (job advertising)Engineering
Outsourcing
Permanent placement

1970s to 1980s

1990s to 2000s

2010s

2020s

Infancy of temporary
staﬃ ng services

Period of expansion of workers’ rights andtemporary staﬃ ng services

Era of diversifi cation of work styles

Era of establishment and expansionof new work styles following the
COVID-19 pandemic

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile05

At a glance

At a glance

The PERSOL Group provides diverse services aimed at realizing “Work and Smile,” by sincerely andPERSOL Group’s business and service domains

been created with our people as the starting point.

carefully assisting working individuals and leveraging the customer contacts and trust that have

Service Domains*2
Temporary staffing

Support for career change

Scope of Business
Clerical WorkPERSOLGroup’sBusiness
Segments

Staffing
SBU

We engage in the businesses of
temporary staffing and temporary
job placement ahead of permanent
employment in a wide range ofindustries and business categories, witha focus on the clerical and administrative
staffing domain where we boast an
industry-leading market share.

BPO
SBU*1

We provide business process outsourcing
services in a wide range of businesscategories, including clerical work,
recruitment, call centers, IT and businessconsulting, as well as operational
improvements made using state-of-theart technologies.

Technology
SBU

We engage in engineer dispatching,freelancer permanent placement, anddesign, development, and businessconsulting businesses in IT/engineeringand manufacturing technology domains.

CareerSBU

We operate a wide array of businesses,
including businesses that support therecruitment of a wide range of personnel,
from young to experienced people
centered on the permanent placementbusiness and recruitment media businessand even high-end personnel, businesses
that support side jobs and freelancers,
and the outplacement support business.

Asia Pacific
SBU

We operate a temporary staffing
business, permanent placementbusiness, and HR solution business,
which are among the largest in the AsiaPacific region.

R&D
FU

Specialized Services

Technology/
IT and Others

Temporary Staffing

Permanent
Placement

Recruitment
Media, Direct
Recruiting, andOthersTemporary job Placement Ahead
of Permanent Employment/
Permanent Placement

Clerical work,
research, clinicaldevelopment, sales,
and light work

Others(Including New
Domains)

Outsourcing

Main Brands

Outsourced
Contracting
Clinical development,
sales, light work,and factory occupations

Outsourcing

Clerical work, government
office contract business, Consulting
call centers, helpdesks,
CRO, and manufacturing

Products

Engineering
Design and development,
prototyping,evaluation, and testing

Temporary Staffing(IT and engineering)

IT(Software development, etc.)

Permanent
Placement

Recruitment
Media

OthersDirect Recruiting

Side job, freelancer
support andoutplacement
support

CareerOwnership
SupportOutsourcing
Temporary Staffing

We seek out and create businesses in
new domains, such as the developmentof new digital products and theimplementation of incubation programs.

We engage in businesses including a consulting business centered on
surveys, research, and the development of people, organizations, andmanagement, as well as a training business, a business supporting theemployment of workers with disabilities, and a venture capital business.

Permanent
Placement

Facility management &maintenance, human resource
management consulting,education and training

Facility
Management
OthersDigitalSolutions
Incubation* SBU: Strategic Business Unit, FU: Function Unit
* 1 Some businesses of PERSOL TEMPSTAFF (BPO Business Division)
also belong to the BPO SBU.
*2 Main businesses are indicated in large circles and the others areshown in small ones.

PERSOL Group Integrated Report 2023

About the PERSOL Group2PERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-financial Data/
Corporate Profile

06

PERSOL Group’s Value Creation
Message from the CEO

07

Initiatives to Improve People’s Career Well-being

11

Value Creation Story for 2030

12

Materiality

13

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

07

Message from the CEO

Driving a “Work and Smile”
movement in society
Creating better work opportunities for one million people
by 2030 as a “Career Well-being” creation company

Representative Director,
President and CEO

Takao Wada
The history of the PERSOL Group began in 1973, when

Fifty years after its founding as
Tempstaﬀ Co., Ltd.,the PERSOL Group is stepping
forward into its next 50 years with afirm vision of the value itwill create.

Yoshiko Shinohara, our founder, established Tempstaff
Co., Ltd. (currently PERSOL TEMPSTAFF CO., LTD.)
with a vision of providing women who possessed theambition and ability to work, but lacked employment
opportunities, the avenue to lead an active career insociety. Fifty years on, this founding spirit continues
unchanged. Although our focus at the time of our
founding was on supporting women’s careers, today ouraspiration—and my personal hope—is to provide work
opportunities for all people, irrespective of nationality,
gender, age, or other attributes, in order to help themlead a better life through their work and career.
As I will explain in more detail later, we have recently
developed the PERSOL Group Mid-Term Management
Plan 2026 (spanning the fiscal year ending March 2024

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

08

Message from the CEO

to the fiscal year ending March 2026; hereafter “the Plan
2026 ”). The Plan 2026 will serve as a springboard fromwhich to launch our next 50 years, and we have positioned
this three-year period as a phase in which we will establish
a solid business foundation for the future. The Plan 2026
also outlines our vision for 2030 as a “Career Well-being”
creation company. This entails expanding the possibilities
of working individuals, offering a wide variety of work
opportunities, and bringing them greater happinessthrough a career that they have personally selected.
This is the value that the PERSOL Group aims tofrom many of our customers.

2022 was a year of profoundchanges in attitudes to work.
We will continue adapting to thesechanges and strive to create abetter working
environment

The fact that we began to take preemptive measures
two years ago to strengthen and restructure ourbusiness framework in anticipation of a recovery indemand also enabled us to respond quickly to changes
in the market. This demonstrated that we have learned
from previous hardships, such as the Global Financial
Crisis, and built an even stronger resistance to economic
ﬂuctuations. In addition to the way we navigated thefor both individuals and businesses.

generate, and the future image that we aspire toward.

emergency situation brought about by the COVID-19
pandemic, this performance gives me great confidence
heading into our next phase as a company.

Through these efforts, we ultimately aim to realize ourIn the fiscal year ended March 2023, demand for human

Looking at the external environment, I believe that it

Group vision of “Work and Smile.”

resources services recovered to pre-pandemic levels,

has been a year of major changes in the mindset of both

The society that the PERSOL Group aspires to create

enabling us to achieve record highs for both sales andcompanies and employees. For example, the way work

is one in which all people have work opportunities andprofits. This was made possible by each and every one

is conducted differently at home and in the office, as

choices and are able to make decisions on their own,of our employees recognizing the impact our mission

well as changes in output. This requires a corresponding

as well as a world in which all careers bring smiles—

has on society and completing their respective taskschange in approaches to management, including

both to the faces of people who work and thosewith a strong sense of purpose. I also believe that these

performance appraisal methods and communication

around them.

devoted efforts led to recognition and appreciationstyle. Society as a whole has gradually begun toaccommodate these changes, whether proactively or
reluctantly. This may prove to be a major turning point

What is “Career Well-being?”

in transforming the way people work in Japan, as the“Well-being” is classified into five categories. Among them, the career-related category
is deemed particularly important as “Career Well-being.”

shift in work styles has helped identify and eliminate

Domains of Well-being*

companies are indeed capable of implementing rapid

PhysicalWell-being

Financial
Well-being

Career
Well-being

Act freely in goodmental and physicalhealth.

Receive adequate
compensationthat satisfies yourexpectations.
Manage your assets on
your own.

Achieve happiness inyour career based on
the understanding that
not only work but also
your life constitute partof your career.

unnecessary tasks, as well as removed barriers to
outsourcing work. It was also a great reminder that manychange if they put their mind to it, and that technology

Social
Well-being

Community
Well-being

Build lasting,considerate humanrelationships.

Build a community,
such as in yourneighborhood, withyour relatives or friends,
and at school or yourworkplace.

has now reached a level where we can accommodate
such changes. The concept of work style and lifestyle forworking individuals has also shifted, and there has beena significant increase in people’s awareness of the needto balance work and private life, as well as achieving
well-being through their work and career. I believethat the future role of the PERSOL Group will be torespond to these changes by providing a better working
environment for both individuals and companies, and by*As defined by US-based Gallup, Inc., one of the world's largest polling firms.

maximizing “Career Well-being.”

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Message from the CEO

The fiscal year ended March 2023 was also a year inwhich we formulated our Plan 2026. As this was the firsttime for me to make a full commitment to a mid-term
management plan as Representative Director, President
and CEO, I started by re-evaluating the points that I felt
were particularly important and what I believed shouldbe the foundation of the plan. We then determined how
to respond to future changes and studied how we canspeed up our actions. We also clarified our goals and“Strengthening data governance,” “Respect for humanHelping solve societal challenges
through our business to build arights,” and “Responding to climate change.” In addition,

virtuous cycle thatbrings our “Work andSmile” vision to life.

challenges through these services. As a result, we

the roles that each business should play in achieving

we conducted a thorough review of the value we could
provide as services, and how we could help solve societal
determined four further material topics: “Creating work
opportunities,” “Providing diverse work styles,” “Providing
learning opportunities,” and “Increasing productivity atcompanies,” giving an overall total of eight material topics.
For working individuals, our approach is to create work

them. I intended to create a mid-term management

In addition to setting our aim to become a “Career Well-

opportunities by providing diverse work styles and learning

plan that would help the Group to align its focus, withbeing” creation company by 2030, the Plan 2026 also

opportunities. For companies, we aim to contribute toeach member and organization fulfilling their respective

outlines our value creation goal of “Creating better work

increasing productivity by helping them hire highly engaged

roles, and I believe that in formulating the Plan 2026 weopportunities for one million people by 2030 by expanding

personnel and by providing high value-added services

have succeeded in this objective.

human possibilities.” As our current number of jobs isthrough outsourcing. With Japan’s working population

380,000 (as of March 31, 2023), this represents a rather

declining, companies face an increasing need to improvechallenging goal. In fact, this goal is even more challenging

their productivity. If we can help solve these challenges via

as we are not simply aiming to provide work opportunities

our services, this will lead to the creation of new businesses,

and options, but also to ensure that people are satisfied

new ways of working, and greater “Career Well-being.” Inwith their experience and feel that they have expanded

other words, we are aiming to create a virtuous cycle that

their possibilities as a result. However, I am convinced that

ultimately leads to the realization of “Work and Smile”—

if we can successfully deliver such an experience to one

this is the conclusion that we reached from studying our

million people, this will serve as the catalyst to spark a larger

materiality. Since we have now set KPIs and numeric targets

movement in society. We aim to be the driving force thatfor our materiality, we will closely monitor our progressprovides the initial momentum, such that the waves fromand rotate the PDCA cycle to accomplish our goals.

this movement reach as many people as possible—this isRefer to page 13 to 16.

the key philosophy behind our value creation goal. Although

In addition, as a symbolic initiative to realize our “Work

one million people is by no means an easy target to reach, I

and Smile” vision, the PERSOL Group conducts a “Workbelieve that this goal is attainable as we established it afterand Smile” survey of approximately 120,000 people in 122

carefully studying how to tackle this challenge in light of thecountries around the world in order to measure the extent

respective roles of each of our businesses.

to which “Work and Smile” is realized.

In order to realize this value creation goal, we have also

Refer to page 11

The results of this survey are now being utilized to enhance

identified the materiality (key issues) for the PERSOL

the well-being of society as a whole, for instance throughGroup. We began by identifying the challenges that we

the Japanese Well-being Initiative led by Nikkei Inc. Goingmust address as a corporate citizen and the issues thatforward, we will continue to conduct this survey worldwide,

we should focus on as a personnel services company inincluding countries and regions in which we do not yet haveorder to achieve sustainable growth, and selected foura business presence, to show the world that we are serious

material topics: “Active roles of diverse human resources,”

about achieving our vision of “Work and Smile.”PERSOL Group Integrated Report 2023

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Message from the CEOPERSOL Group employees will
embody“Career Well-being”

and serve as key proponents of our“Work and Smile” vision.

Group, and we have already noticed the benefits

two different generations of the same family. The

that experience gained across divisions can have inway people work evolves as they progress throughcreating positive chemistry in a range of workplaces.

different life stages. We strive to stay attuned to

In addition, technology is also essential in order

the lives of each working individual to whom wefor diverse human resources to realize “Career

provide services, helping meet their needs andWell-being.” As part of our Plan 2026, we aim toaspirations at each step of the way, and fillingincrease the number of technology professionals

them with a sense of reassurance and satisfaction.

in the overall Group to more than 2,000 over the

The same principle applies to our many corporate

three years through to the fiscal year ending Marchclients with whom we have forged a relationship of2026. We will strive to create a better working

trust and confidence over the years.

The most important factor in realizing “Work andenvironment across the Group through digitalization

Smile” is that PERSOL Group employees embody theto increase convenience and productivity, andhas changed significantly over the past few years.

concept of “Career Well-being” themselves. It is no

we will also explore and create new services that

Under such circumstances, society's expectations

good if our employees are working with frowns onleverage new technologies. I view the Plan 2026 asof the PERSOL Group, which is centered on humantheir faces. Accordingly, I repeatedly emphasize toa key three-year period that serves as a stepping

resource services, are growing, and we understandour employees how valuable our work is to society,stone for that.

that we have an increasingly important role to

The environment surrounding human resources

so that each and every member does their job withplay. Although we have grown and expanded

full understanding of the purpose that the PERSOL

our business in line with changes in society, ourGroup’s business serves, and the high expectations

core philosophy with regards to people remainsthat society has of us. Engagement surveys of ourunchanged. I am confident that our focus on

employees have revealed positive changes in thisarea, including increases in engagement scores overthree consecutive years.
However, raising our engagement score is not theultimate aim—our goal is to create a swell of “Workand Smile” momentum by increasing employee
engagement, which will in turn enable us to provide
better services to our customers. To accomplish

We aim to continue toserve society over the next
100 years
and beyond by supporting working
people throughout their lives.

this, we are expanding the range of work options

people as individuals and our ongoing efforts tosincerely consider how we can help them improvetheir careers has not been mistaken, and that weare continuing to move in the right direction as acompany.
Although we cannot alter the fact that theworkforce in Japan is declining due to its lower
birthrate and aging population, rather than being
pessimistic, I believe that if we can continue toavailable to our employees and giving them theSince assuming the role of President and CEO, I

innovate and provide services that adapt to thisopportunity to decide how they wish to work,

have emphasized my desire to build PERSOL intochanging environment and help people grow in theirthrough such programs as the Career Scout System,a corporate group that will continue to thrive forcareers, we can create a society in which all people,

which allows employees to self-direct their career

the next 100 or 200 years. This is because humanincluding ourselves, can experience happiness. We

by being scouted for potential roles, and the Career

resource services is a field with a long time frame,

will continue moving forward steadily, step by step,

Challenge System, which allows employees to apply

closely interlinked with the lives of individuals as

to expand human possibilities, to continue being a

to participate in projects in other divisions. These

they progress through their careers. Some of ourcatalyst for happiness, and to expand “Work andsystems and measures are made possible by the fact

temporary staff have worked with us for 10 or 20

Smile” both in Japan and overseas.

that we have multiple business domains across theyears, and some have even been with us acrossPERSOL Group Integrated Report 2023

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Initiatives to Improve People’s Career Well-being

Initiatives to Improve People’s Career Well-being
At the PERSOL Group, we have defined the happiness and satisfaction felt by people through their own work as Career Well-being, and we aim to achieve a society where
everyone around the world is able to “Work and Smile.” To make this a reality, we are taking initiatives from various angles, including research and social activities.

“Work and Smile” Global Survey
In 2020, we began to conduct the Work and Smile global survey every year via the Gallup

Launching a Postdoctoral Fellowship with the University of
Oxford in the UK

World Poll,* the world’s largest opinion poll, jointly with the Well-being for Planet Earth

The PERSOL Group has partnered with the University of Oxford to launch a postdoctoral fellowshipFoundation. In this survey, we ask questions about three elements which we have definedas Career Well-being indicators — work experience (pleasure and fun), the evaluation ofwork (social contribution and meaningful feeling) and self-determination in work — tomeasure and visualize the degree of achievement of Work and Smile.
This survey and other initiatives have revealed that individuals who make in their work bychoosing from diverse options and relying on subjective feelings related to work-related wealth,such as joy and job satisfaction, are important elements that contribute to the improvement of
their engagement in their work, and further, to the enhancement of their performance as well.
As the importance of human capital grows, the PERSOL Group regards increased CareerWell-being as an important element for maximizing the value of human resources as well. We
push forward with initiatives by studying and using this indicator in collaboration with a range oforganizations and companies to enable Career Well-being to become entrenched in society.
* The world’s largest public opinion poll, carried out annually by the U.S. company Gallup, Inc. since 2005. The report is used forbasic data of the UN’s Sustainable Development Goals and the World Happiness Report.

Results in Japan (Percentage of respondents who answered “yes” and global ranking)you enjoy the work you do in
Q1 Do
your job every day, or not?

77.1%
95th

72.8%
(-4.3pt)

103rd

you think the work you
you, personally, have many
Q2 Do
Q3 Do
do in your job signifi cantly
choices in regard to the typeimproves the lives of otherpeople outside of your own
household, or not?

87.1%
5th

79.1%

(-8.0pt)
46thof work you can do in your life?

in 2022. Through this program, we will conduct research to deepen our understanding of wellbeing at
the workplace using data from three items that were added to the Gallup World Poll. Dr. George Ward,
who also serves as a Junior Research Fellow at the University of Oxford’s Somerville College, has been
selected as the current postdoctoral fellow. The fellowship is supervised by Dr. Jan-Emmanuel De
Neve, Professor of Economics and Behavioral Science who is leading the Oxford University Wellbeing
Research Centre. Dr. De Neve also serves as Editor for the World Happiness Report, annual publicationby the United Nations Sustainable Development Solutions Network. Additionally, Dr. Alden Lai, AssistantProfessor at the New York University School of Global Public Health and Executive Advisor
to the Well-being for Planet Earth Foundation, also serves as an advisor in this program.
Dr. George Ward
His research focuses on various markers of employee wellbeing such as happiness, satisfaction,
stress, and purpose. He studies how these aspects of workplace wellbeing are inﬂuenced, for betteror worse, by different management and organizational practices – as well as how they ultimately
affect outcomes for firms like productivity, turnover, and recruitment. George is particularlyinterested in the future of work and in how we might design jobs that work for people’s wellbeing.

Introduced in the Sixth Recommendations of the Japan Committeewith the Special Mission of Promoting Well-being Plans
The Work and Smile global survey was introduced in the sixth recommendations compiled by the Japan

73.5%
31st

69.2%
(-4.3pt)

56th

committee with the special mission of promoting well-being plans, which was established in the Liberal
Democratic Party. This committee promotes the formulation of policies based on not only the GDP andother economic indicators but also fresh ideas including subjective well-being, to build a nation where
people can remain satisfied with their lives as a whole while feeling happiness and living a meaningful life.

1st survey

2nd survey

1st survey

2nd survey

1st survey

2nd survey* Survey periods: February 2020 to March 2021 (1st survey),
June 2021 to March 2022 (2nd survey)

Survey data is disclosed to the public on a special website.
https://www.persol-group.co.jp/en/sustainability/wellbeing/worlddata/

Career Well-being AWARDS 2023 by PERSOLWe held the Career Well-being AWARDS 2023 by PERSOL. The awards
are given to people who envisioned and selected their career voluntarily,
took action and as a result, embodied Career Well-being mostsuccessfully in the past year. The footage of the award presentation
ceremony was shown nationwide via YouTube and a TV program.
Award presentation ceremony

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12

Value Creation Story for 2030

Value Creation Story for 2030

At the PERSOL Group, we aim to achieve the Group Vision, “Work and Smile,” by fulfi lling the
expectations of society through the creation of new value.

Group Vision

Who we want to be

A “Career Well-being” Creation Company
Solving Social Issues

The Source of Value Creation

Social Value

1

MATERIALITY

INPUT

Human Capital
Diverse, autonomous human resources
Number of Group employees: 66,944*1
Number of dispatched temporary staff : Approx.
124,000 *2
Percentage of female employees / Percentage ofwomen in managerial positions: 46%/24.4%*3“Work and Smile” index (employee engagement
index): 70.4%*4

Creating work opportunities

Intellectual CapitalBusiness development capability and expertise
related to HR services
Number of job postings: Approx. 247,000 *7
Surveys and research by a think tank in the GroupA wide array of HR services
A wealth of human resources and HR information

Providing learning opportunities
Increasing productivity at companies

BUSINESS ACTIVITIESBusiness (SBU)

Capability ofrecruiting people

Staffing

2023/3380,000*

Direction ofmanagement

BPO

Technology-driven
HR service company

Technology
Career500,000

The Types of Value We Create

Asia PacificStrategy by Business Field

P.19

Economic ValueP.32

OUTPUT
Human capital
Message from the CHRO

Technologies
P.25

Financial targets under the PERSOL Group
Mid-term Management Plan 2026

Learning

Message from the CIO/CDO

P.30

Message from the CSO

P.19

Sound, stable fi nancial basis*1 Includes contingent employees (As of March 31, 2023)*2 Number in Japan(As of March 1, 2023)*3 As of April 1, 2023
*4 The Group’s average scores in the engagement index and
the Career Well-being index, which we developed jointly with
Gallup, Inc. (Result for the fiscal year ended March 2023)*5 Result for the fiscal year ended March 2023
*6 As of February 2023
*7 As of February 2023
*8 As of July 7, 2023

2030

One million
peopleBusiness growth engines

Financial Capital
Shareholders’ equity: 180,366 million yen
Equity ratio: 42.0%
Rating*8: A+ (Stable) according to the Japan
Credit Rating Agency (JCR)

2026/3*The latest provisional value that is subject to change

Capability of designingbusinesses
Message from the CSO

Creating better work opportunities
for one million people by 2030
by expanding human possibilities
Creating work opportunities

Competitive advantages

Capability of connecting
people with organizations

OUTCOME

P.15

Impact that PERSOL will give on society in 2030 (KPI)

Providing diverse work styles

Social Relations CapitalSocial trust and customer contacts accumulated
over a long term
Number of client companies: Approx. 46,000 *5
Number of operating bases: 539 in Japan/177 inother countries*6
High-visibility service brands

Solving social issues through our businessMessage from the CFO

MATERIALITY
Active roles ofdiverse personnel

2Foundation for achieving sustainable growth

Strengthening data
governance

Respect forhuman rights

Corporate Governance

Responding
to climate change

Adjusted EBITDA

Net Sales

P.16

1.2

(IFRS)

1.5

Corporate
Philosophy

Authentic

Customer-Focus

Providing Opportunity

Professional
Individual Growth

75.2

100

trillion yen

trillion yen

billion yen

billion yen
or more2023/32026/32023/32026/3

P.50

Dividend payout ratio

ROIC
Five Core
Principles

P.23

Teamwork

Innovative(compared to adjusted EPS)

10% or higher

15% or higher

Approx. 25%

Approx. 50%

2023/32026/32023/32026/3Social Contribution

Reinvestment

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

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Corporate Profile

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13

Materiality

Materiality
In conjunction with the formulation of the PERSOL Group Mid-term Management Plan 2026, we have identified eight materiality issues as our key issues toaddress in order to continue creating value over the mid- to long-term by solving social issues.

Our eight materiality issues are largely divided into
issues related to “Solving social issues through ourbusiness” and issues related to “Foundation for achieving
sustainable growth.”
We identified four issues, “Creating work opportunities,”

Solving social issues through our business“Providing diverse work styles,” “Providing learning

1 Creating work opportunities

opportunities,” and “Increasing productivity at companies”

Individuals

as the former group, and four issues, “Active roles of diverse

2 Providing diverse work styles

personnel,” “Strengthening data governance,” “Respect forhuman rights,” and “Responding to climate change” as the

Corporations

latter group.

3 Providing learning opportunities

4 Increasing productivity at companies

Among these issues, we position “Creating work
opportunities” as the most important, and have set

Foundation for achieving sustainable growth“Creating better work opportunities for one million people

5 Active roles of diverse personnel

by 2030 by expanding human possibilities” as the PERSOL

6 Strengthening data governance

7 Respect for human rights

8 Responding to climate changeGroup’s value creation goal.

Linkage Corporate Value and Materiality issues
At the PERSOL Group, we have linked initiatives to address theeight materiality issues with the enhancement of the Group’s

Increase profits to be generated in the future(financial value) and the contribution value tocorporate value to show how the former contribute to thestakeholders (social value)

3 Providing learning opportunities

latter, based on the DCF method* (continuous growth model).

Created value

According to the DCF method, increasing created value(social value and economic value), reducing cost of capital,
and increasing growth rate are needed to enhance corporate
value. We have linked the eight materiality issues with theseelements as shown in the valuation formula at right.

* Discounted Cash Flow method. It is one of the widely used methods to value companies.

1 Creating work opportunities
2 Providing diverse work styles

4 Increasing productivity at companies

Corporate value
The sum of financial value and nonfinancial value that is expected tobe reﬂected in financial value inthe future

Cost of Capital
Reduce cost of capital, including the risk premium

Growth rate
Increase the mid- to long-term growth rate of business

6 Strengthening data governance

3 Providing learning opportunities

7 Respect for human rights

5 Active roles of diverse personnel

8 Responding to climate change

PERSOL Group Integrated Report 2023

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14

Materiality

Materiality
Materiality Identification Process
Step

1

List of issues to be considered

We listed around 300 items and 60 issues by widelyreferring to global standards, such as GRI*1 standards,
SDGs*2, and SASB*3 standards, as well as the evaluation
items of MSCI*4 and other ESG rating agencies.

international standards and information disclosure frameworks*2 SDGs (Sustainable Development Goals): International goals that wereadopted unanimously at the UN summit held in 2015 and set with theaim of making the world sustainable and better by 2030
*3 SASB (Sustainability Accounting Standards Board): A non-profit organizationthat sets and provides an ESG information disclosure framework to help
investors make decisions from a mid- to long-term perspective*4 MSCI: A financial services firm based in New York, the United States.
The company’s MSCI ESG Ratings are recognized as a world-leading
index for ESG investment.

2

Step

3

Assessment of materiality

We analyzed the items and issues that we listed in Step 1
from our stakeholders’ perspective (major stakeholders’expectations andrequests for the HR
service industry and thePERSOL Group) and fromthe Group’s perspective(risks and opportunities
seen from the viewpointof business sustainability)and narrowed them down
to 26 issues for further
detailed discussion in
The PERSOL Group’s
Step 3.
perspective

Identification of materiality issues

The eight materiality issues were identified throughrepeated discussions by the CEO and other executive
officers and deliberations by the Board of Directors on themateriality of each of the 26 issues selected in Step 2.
1 Creating work opportunities

Stakeholders’perspective*1 GRI (Global Reporting Initiative): An international non-profit
organization which works to formulate sustainability-related

Step

2 Providing diverse work styles
3 Providing learning opportunities
4 Increasing productivity at companies
5 Active roles of diverse personnel
Discussions by the CEO andother executive officers on the
26 issues selected in Step 2

6 Strengthening data governance
7 Respect for human rights
8 Responding to climate change

Sustainability Promotion System
The PERSOL Group promotes sustainability as a Group-wide initiative under our

Formulate policy“Sustainability Policy.”
We have set up the Sustainability Committee (chairperson: Representative Director,

The Board of Directors

President and CEO, secretariat: Group Sustainability Division) under the Headquarters

Reporting/Deliberation

Management Committee (HMC) so that the management team promotes sustainability
and manages risks and opportunities related to sustainability appropriately.

HMC

In addition to deliberations on sustainability-related management agendas, theSustainability Committee identifies the materiality issues, sets the Group-wide
initiatives and targets, monitors progress toward the achievement of the targets, andSupervision/Advice(Headquarters Management Committee)

Review progress
Sustainability Committee(Chairperson:CEO)

Other
Committees

Set plans andtargets

reports to HMC and the Board for supervision and deliberation.
We promote initiatives for materiality as Group-wide initiatives by designating theexecutive officer in charge of the Group Sustainability Division and other executive
officers as responsible leaders and by appointing staff in charge at each division,
including SBUs.

Group Sustainability Division

Cooperation/
Collaboration

Business divisions (SBUs)
Corporate divisions (PHD)

Initiatives forMateriality* PHD: PERSOL HOLDINGS, SBU: Strategic Business UnitPERSOL Group Integrated Report 2023

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Materiality

Materiality

SDGs related to
all the issues

Solving social issues through our business
Materiality

1
Creating work
opportunities

2
Providingdiverse work
styles

We will create better work
opportunities by expanding
the potential of working
people, using our capability inattracting individuals, matchingpeople with organizations, anddesigning operations.

3

4
Increasing
productivity atcompanies

We will contribute to efficient
corporate activities and toresolving labor shortages by
providing services which improve
productivity.

2023/03 result

2026/03 target

2031/03 target

Creating “better work opportunities” in the areas of
temporary staffi ng, placement, and outsourcing

Number of people forwhom we created(provided/supported)
better work opportunities*1

380,000
people500,000
people1,000,000
peopleNumber of people forwhom diverse work
styles became possible*2

40,000people50,000people100,000
people140,000
people160,000
people240,000
people80,000people120,000
people230,000
people42,000people--JPY 270
billionJPY 300
billion-

Providing work opportunities as side jobs andfreelance work

Related SDGs

Providing work opportunities which enable to makeeffective use of spare time1

Providinglearning
opportunities

KPI

Providing work opportunities with no time andlocation constraints, such as ﬂ exible work schedules
and remote work

We will contribute to therealization of working styles
that meet individual needs,
by proposing and providing
ﬂ exible working styles andemployment styles.

We will expand the options
available to working people andmaximize their career potential byproviding learning opportunities
that lead to employment,
reskilling, and upskilling.

Our actions

Providing learning opportunities for temporary employees(people registered in temporary staffi ng/Offi ce Solution (OS)business, IT human resources)2

Corporate training for upskilling and improving careerself-reliance, placement services provided after upskilling

3

Providing learning opportunities for students andworking adult (school visits, career courses, upskilling)

Providing BPO services
Providing technical outsourcing services
Providing other outsourcing services

Number of people who
received each training
service*3

Net sales of services
related to increasing
the productivity ofcompanies*4* Targets for the fiscal year ending March 2031 are subject to change in accordance with future business conditions and revisions/changes to the management plan. Targets for the fiscal year ending March 2031 have been set to clarify the direction andlevel of achievement of the strategy, but some items are still under consideration due to high uncertainty and are marked with “-”.
*1 In principle, figures for the temporary staffi ng and BPO businesses are the number of workers at the end of the fiscal year (or the average number of workers per month). Figures for temporary job placement ahead of permanent employment are
based on the total cumulative number of temporary staff who became employees during the year. For the placement and recruiting business, the figure is the annual cumulative total of the number of job placements through our services.
Figures for others (freelancers, etc.) are the number of people to whom the Company’s services were provided (annual total, but multiple projects by the same person are counted as 1). Career SBU’s job advertising business is an estimate. Benesse
i-Career is included in the calculation for the purpose of business management targets, although it is not consolidated.
*2 Figures of PERSOL TEMPSTAFF, PERSOL CROSS TECHNOLOGY, and PERSOL CAREER*3 3 -1: Figures of Staffi ng SBU and Technology SBU, 3 -2: Figures of PERSOL RESEARCH AND CONSULTING Co., Ltd. and APAC SBU, and 3 -3: Figures of Career SBU and Technology SBU*4 Figures of all SBUs (excluding Career SBU)PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

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16

Materiality

Materiality

SDGs related to
all the issues

Foundation for achieving sustainable growthMateriality

Our actions
Improving employee engagement

5
Active rolesof diverse
personnel

6Strengthening
data
governance

7
Respect forhuman rights

8
Responding toclimate change

We will foster a corporate culture
and develop an environment thatutilizes diversity to achieve theGroup vision.

Establish policies and rules
common to the Group regarding
the use of personal data, anddevelop and further strengthen
management and protection
systems to create an environment
conducive to the use of personal
data by users and to ensure trust.
We will promote initiatives inaccordance with international norms
as a responsible company, thereby
mitigating adverse human rights
impacts, earning the trust of all
stakeholders (including employees).

We will work to achieve carbon
neutrality and contributeto the realization of adecarbonized society throughenvironment-related GX: Green
Transformation HR services andother initiatives.

Talent management

Developing next-generation business leaders/
implementing measures to turn all managerial employees
into best leaders

Promoting DI&E

Increasing the percentage of women in managerial positions/promoting the employment of people with disabilities/
encouraging male employees to take childcare leave

KPI

2023/03 result

2026/03 target

2031/03 target

70.4%

75.0%

-

Percentage of women in
managerial positions*1

24.4%

30.8%

37.0%

Number of employees withdisabilities*2

2,417

4,000

-

Ratio of childcare leave
taken by male employees(one day or longer) *3

64.8%

100%

100%

0/0

0/0

Work and Smile Index(employee engagement index)

Privacy review process

Number of cases of
Scheduled to beprocessing personal data
disclosed in thein an inappropriate manner
fiscal year ending
and number of people
March 2024
involved in these cases*3 *4

Educational training, such as employee training on
privacy protection and data security

Percentage of all employees
who have received humanrights training*3

Starting in
the fiscal year
ending March
2024

100%

100%

Percentage of all employees
who have received humanrights training*3

Starting in
the fiscal year
endingMarch 2024

100%

100%

Percent reduction of Scope 1+ Scope 2 emissions(Base year: The fiscal year
ended March 2022)

Increased 15.6%*5

17.3%
reduction

83.0%*6
reduction

Percent reduction of
Scope 3 emissions

To be disclosed
in the fiscal year
ending March2024 or later

Under setting

Under setting

Establish the personal data processing policy
Set strict internal standards for handling personal data
(Implementation of privacy impact assessment by specialized
department)

Establishing the PERSOL Group Human Rights Policy
Implementing human rights due diligence
Educational training, such as employee training on
human rights
The decarbonization of the electricity consumed at
office buildings

Conserving energy by improving operations and making
capital investments/Promoting the transition to electricity
from renewable energy sources

Related SDGs

Switching from gasoline vehicles to hybrid vehicles and EVs
Calculating Scope 3 emissions, setting targets, andreducing the emissions
GX-related support

Dispatching engineers specialized in the environmental
fi eld / Experiments related to carbon neutrality*

Targets for the fiscal year ending March 2031 are subject to change in accordance with future business conditions and revisions/changes to the management plan. Targets for the fiscal year ending March 2031 have been set to clarify the direction and level ofachievement of the strategy, but some items are still under consideration due to high uncertainty and are marked with “-”.
*1 Targets are set for employees of domestic group companies, and actual results are tabulated. However, some companies that have not yet completed the introduction of a common human resource management system for domestic group companies are excluded.
Actual results for the fiscal year ended March 2023 are as of April 1, 2023, targets for the fiscal year ending March 2026 are as of April 1, 2026, and targets for the fiscal year ending March 2031 are as of April 1, 2031.
*2 This is the number of persons with disabilities included in the Group’s report on the employment status of persons with disabilities in accordance with the procedures of the special-purpose subsidiary system. The target may be revised in the future, taking into
account changes in the number of companies subject to the number of employees with disabilities (22 companies as of May 2023), changes in the number of employees in the Group as a whole, and the impact of changes in the statutory employment rate.
*3 Figures in Japan only
*4 The number of serious and severe incidents as defined by the Company.
*5 The increase in emissions for the year ended March 2023 compared to the base year is mainly due to business expansion through new contracts and M&A overseas.
*6 Residual emissions are offset using internationally recognized methods to achieve carbon neutrality.

PERSOL Group Integrated Report 2023

About the PERSOL Group3

PERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

17

Strategies for Value Creation
Strategy by Business Field
Overview of PERSOL Group Mid-termManagement Plan 2026

18

Message from the CSO

19

Message from the CFO

23

Message from the CHRO

25

The Staff Well-being Committee
Message from the CIO/CDO

Group Structure and Strategic Policies

32

Staffing SBU

33

BPO SBU

34

Technology SBU

35

Career SBU

36

28

Asia Pacific SBU

37

30

R&D FU38

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About the PERSOL GroupPERSOL Group’s Value Creation

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Overview of PERSOL Group Mid-term Management Plan 2026

Overview of PERSOL Group Mid-term Management Plan 2026
The PERSOL Group has drawn up a Value Creation Story for 2030 to provide even greater value and achieve business growth in anticipation of future changes in the environment.
At the same time, we formulated PERSOL Group Mid-term Management Plan 2026 (fiscal year ending March 2024 to fiscal year ending March 2026) backcasted from this story.
We will continue to expand people’s potential as a “Career Well-being” Creation Company.
We thereby aim to create better work opportunities for one million people by 2030 and realize our Group Vision, “Work and Smile.”

Group Vision

Work and Smile

The society the PERSOL Group wants to realize
Who we want to be
What the PERSOL Group aims to be like as a company

Materiality

A “Career Well-being” Creation Company

Providing diverse work styles

Providing learning
opportunities

Creating work opportunities

Foundation for value creation

Creating better work opportunities for one million people by 2030 by expanding human possibilities

Technology-driven HR Service Company

Direction of Management

Competitive Advantages to EnhanceBusiness Operation

Business Growth Engines

Corporate Philosophy
Significance of the PERSOL Group’s existence

Capability of recruiting people

Staffing

Human Capital

Providing Opportunity

Capability of connecting people withorganizations

BPO

Technology

Technologies

Individual Growth

CareerCapability of designing businesses

APAC

Learning

Social Contribution

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Message from the CSO

achieve mid- to long-term growth while responding
to changes in society, we felt that it was necessary to
implement a well-targeted investment program to refine

Mid-term
Management
Message from the CSO
Plan

our strengths from a Group-wide perspective and make aquantum leap to strengthen our technological prowess.

We will move steadily forward
toward 2030 by envisioning thefuture of the Group and refining thestrategies that will lead us there.

The Plan 2026 sets out a concrete roadmap for doing this.

Transforming into a technology-driven
HR service company to realize who wewant to be in 2030
We envision the year 2030 as an age in which advancesin technology will allow people and technology to co-

Executive Oﬃcer CSOTaro Mineo

create, and in which working individuals will become
more empowered due to increased labor mobility anddiversified values. It will be easier for individuals tochoose the job or role that best suits them, even within
an organization. In such a society, not only can people
select the company they work for and their own work
style from among a wide variety of options, but they can

although our Group Vision “Work and Smile” was clear,also aspire to live a better life while experiencing a sense

we had not established specific targets and businessof happiness and fulfillment through their career. With

strategies that would lead us to the realization of thisthese changes in the social environment in mind, thevision. Secondly, I felt that it was somewhat unclear

PERSOL Group has defined who we want to be in 2030

which of our multiple businesses we were positioning

as a “Career Well-being” creation company and aims to

The PERSOL Group recently formulated the PERSOL

as focus areas, and what kind of portfolio we werecreate better work opportunities for one million people

Group Mid-term Management Plan 2026 (spanning theaiming for. In addition, as we did not precisely identify

by 2030 by expanding human possibilities.

fiscal year ending March 2024 to the fiscal year ending

these factors, we were not able to focus our growth

March 2026; hereafter “the Plan 2026”). The Plan 2026

investments sufficiently, and consequently we allocatedpositioned the Plan 2026 as the first phase. While thisdefines who we want to be in 2030 and our management

our investments evenly across our businesses. This

three-year period is an extremely important stepping

direction, and clearly lays out the growth strategy foris the third challenge that remained. Thus far, thestone to realize who we want to be in 2030, it is also

the PERSOL Group as a whole. In formulating this plan,PERSOL Group has achieved growth by giving eacha period in which we will strengthen our foundation

we first looked back over our Mid-term Management

SBU the responsibility and authority to make their own

for future growth, and the results of these efforts may

Plan 2023, which ended in the fiscal year ended March

management and investment decisions. In many regards

emerge during the next mid-term plan period (the2023. Although we accomplished solid results—including

this helped us to make speedy decisions and be agile,

second phase). This is why it is crucial that we clearly

achieving our financial targets one year ahead ofand I do not view this negatively by any means. Going

define our management direction and ensure that thereschedule, smoothly transitioning to the SBU structure,

forward, some decisions will be left to the discretion

is no doubt as to where we are headed. Our management

and strengthening our corporate governance— severalof the respective SBUs. However, in order to make an

direction is to evolve into a technology-driven HR service

challenges remained. Our first challenge was thatearnest commitment to realize our Group Vision andcompany. Specifically, we are aiming to become an

The PERSOL Group Mid-termManagement Plan 2026—a clear blueprint
for the overall Group’s growth strategy

Backcasting from this vision for 2030, we have

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group's Value Creation

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Foundation for Value Creation

Financial and Non-fi nancial Data/
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20

Message from the CSO

HR service company that can achieve discontinuous

enable us to build a more resilient corporate foundation.

growth through our products and digitalization, while

Furthermore, in line with this management direction,

source of our value creation.

emphasizing the intervention value of people. The

we have defined three capabilities as competitive

Meanwhile, technologies are a critical element in

PERSOL Group’s business currently consists of two

advantages that we should focus on strengthening.

achieving discontinuous growth, as I mentioned earlier.

segments: the Workforce Business, which delivers value

These are the capability of recruiting people throughby providing services such as temporary staffing anddigital media, the capability of connecting people

place particular focus on the keyword “learning.” When theoutsourcing, and the Digital Platform Business, which

and organizations by matching job seekers with job

PERSOL Group handles job postings from corporate clients,

delivers value through web media, products, and otheropenings, and the capability of designing businesses, as

we also obtain a large amount of information on the skills

services. Although the Workforce Business, which is our

exemplified when designing overall business operations,that companies are looking for in their human resources.

stable and solid business foundation, has historicallysuch as in our BPO business. We will invest proactively

Combining this information with the skill profile of theserved as our primary growth driver, going forward

to strengthen these three capabilities and accelerate ourindividuals who use our services allows us to identify thewe will work to increase the weighting of the Digital

evolution into a technology-driven HR service company.

gap between the skills required by companies and the skills

Platform Business in order to adapt to the changes

capital is the PERSOL Group’s greatest asset and theRefer to page 30 to 31

Refer to page 25 to 27

Over the next three years, we will

possessed by individuals, and to identify what capabilities

Driving an evolution in learning to help
build better careers

they need to develop. By providing appropriate learningto economic conditions. However, it has outstanding

In the Plan 2026, human capital, technologies, andbroader pool of talent to hire from. This is one unique value

potential for growth and profitability, and we believe thatlearning are positioned as the engines that will acceleratethat we are able to offer due to our extensive experienceachieving the optimum balance between the two will

our business growth. It goes without saying that humanin the human resource service industry. As one specificoccurring in society, while continuing to steadily expand
the Workforce Business. Compared to the Workforce
Business, the Digital Platform Business is more sensitive

Direction of Management

expand their career options, but also offer companies a

Business Growth Engines: Learning

Direction ofManagement

Technology-driven HR Service Company

Definitions

An HR service company that can achieve discontinuous
growth with products and digitalization while attachingimportance to the intervention value of people

Individuals

Staﬃ ng/BPO/Technology/(a part of) APAC

Incorporate into business to(1) enhance the ability toTechnology(2) improve the value ofDevelopment ofcontent that reﬂ ects

attract customers andConcept

Corporations

BPO

Career/(a part of) APAC/R&D

Workforce Business

Providing Learning
That Reflects
Corporate Needs
StaﬃngDigital Platform BusinessProfitcontent, we can not only help individuals significantly

Careerwhat corporate needs

existing businesses

APAC
Now

2030

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Message from the CSO

initiative toward this, in March 2023 we launched “PERSOLMIRAIZ,” a new service which provides learning programsfor career changers. This is a service which we had beenworking toward commercializing for several years. In the
future, we will not only help individuals to visualize theircareer possibilities and provide learning opportunities
that expand their potential, but also work to evolve ourservices into a platform that supports sustainable career

Positions of Businesses and Management Policy
The Group’s Foundation

Continue to be the foundation of theGroup’s growth.

Pillars of Profit Growth

Proactive business investments, for thesake of significant profit growth in themedium- to long-term.

Staffing

Contribute to the Group’s growth by strengthening relations with customers.

Careerdevelopment by increasing working peoples’ market value
and connecting them to a diverse range of careers. OverBPO

the mid- to long-term, we plan to gradually expand ourservices beyond the career change field to the temporary
staffing and outsourcing fields.

Repositioning our businesses to focus on
Career, BPO, and Technology
In the Plan2026, we have divided the businesses of
the PERSOL Group into four categories, re-clarifi ed
the positioning of each, and clarifi ed our management
direction, including the key areas in which we will
invest. The fi rst category is “Staffi ng,” which we havepositioned as the Group’s foundation, and which will

Aim to achieve growth by increasing market share despite the possibility of ashrinking the clerical and administrative staffing market over the long term.

Technology

Aim to achieve growth exceeding market growth while the careerchange-related market continues to expand.
Continue to make investments that contribute to medium- to longterm business growth and the acquisition of competitive advantages.
Aim to achieve growth exceeding market growth by taking advantage ofthe customer base of temporary staffi ng.
Make large-scale investments, mainly to acquire the ability to achieve abusiness transformation.
Reinforce the foundations for large-scale recruitment and thedevelopment of high value-added human resources and improve sales
capabilities, in an attempt to increase billing rates.
Continue large-scale recruitment to derive medium- to long-termcompetitive advantages.

Reinforce the Foundations fora Breakthrough.
Improve profitability to fund major
growth investments in 2026/3 andbeyond.

Investments Toward the Future
Implement R&D after achieving an
investment quota at a certain level.

APAC

Achieve earnings improvement at a level that will contribute to improving
shareholder value.
Invest in a quantitative expansion after improving earnings.

R&D

Achieve an investment quota at a certain level to explore and createbusinesses related to Career Well-being.

continue to serve as our core business in the future.
Although the administrative temporary staffi ng market

job changes in the world. However, amid a shrinking

productivity improvements. There is a wide range of

may shrink over the mid- to long-term as a result of aworking population, companies are becoming morebusiness processes that can be outsourced, and while

decline in the working population and automation, we

willing to hire mid-career talent to secure excellent

in some cases we may be asked to perform the businesswill strive to maintain growth by further strengthening

human resources, while individuals are becoming

operations of a department of a given company

relationships with customers to increase our market

more selective about their working styles and thein line with conventional methods, an increasing

share, while simultaneously working to expand into

organizations they work for—trends that are likely tonumber of companies are also requesting support inother markets.

lead to increasing numbers of employees changing jobs

transforming and optimizing their operations throughand careers in the future. Accordingly, we will continue

system upgrades, the introduction of new machinery“Technology,” which are key focus areas during the Plan

to invest in order to achieve mid- to long-term businessand equipment, or the more effi cient allocation

2026 and which we have positioned as pillars of profit

growth and secure a competitive advantage while also

and deployment of human resources. As providing

growth for the future. Firstly, in “Career,” the rate that

focusing on investment in, and the development of,solutions to meet the needs of our outsourcing clients

people change jobs is expected to continue increasing,digital media.

requires suffi cient resources, we plan to make large-

The second category is “Career,” “BPO,” andand the market is expected to grow to more than twice“BPO,” for which there is a large domestic market

scale investments to further expand our businessits current size by 2030. Until recently, Japan wasof approximately 5 trillion yen, is expected to continuetransformation capabilities. In “Technology,” there is

regarded as one of the nations with the lowest rate ofgrowing sustainably in the future as companies pursue

currently a considerable shortage of engineers, andPERSOL Group Integrated Report 2023

About the PERSOL Group

Strategies for Value Creation

PERSOL Group's Value Creation

Foundation for Value Creation

Financial and Non-fi nancial Data/
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22

Message from the CSO

it is projected that by 2030 there will be a shortfall of

reinforcing our foundations toward this goal. Finally,of our business strategy that will serve as a roadmap

between 450,000 and 800,000 engineers in Japan

we have positioned the focus of “R&D” as investments

for its achievement, and align our businesses and ouralone. Given such circumstances, we expect the IT &toward the future. We hope to explore and create new

vision together coherently. In addition, as I am also theengineering market to grow over the mid- to long-term,businesses and services that can be incorporated into

executive offi cer responsible for sustainability, I intend

and we will continue to focus on large-scale recruitment

the Group in the future, and we plan to implement a

to communicate the PERSOL Group’s purpose as aand training of high-value-added engineering talent.

certain level of investment toward this objective throughcompany and the value it provides to both its employees

The third category is “APAC,” where we are aiming

to 2030.

and society from a mid- to long-term perspective.
As Japan’s working-age population continues toto reinforce the foundations for a breakthrough. The

Sharing the Group’s direction and working
as one to accomplish the Plan 2026

decline, the competition to acquire and develop human

to continue expanding thereafter. In line with thisAs I mentioned at the beginning, the Plan 2026 sets

our Plan 2026 we have succeeded in creating a coherent

market expansion, we believe there is an opportunity

out the PERSOL Group’s growth strategy. In order topicture that defi nes who we want to be in 2030, theto increase the profit ratio of “APAC” substantially overachieve this, I believe that my role as CSO is to draw

value we will create, and how we will realize this throughthe mid- to long-term, and we will start by steadily

up a future vision for the Group, raise the resolution

our business activities. The key from here on is to ensure

temporary staffi ng and permanent placement market
in APAC (excluding China and India) is expected toovertake the Japanese market in scale by 2030 andresources will become increasingly fi erce. Given such
future circumstances and society, I believe that throughthat our vision for 2030 does not end up as just wishful
thinking. To avoid this, the Group must move forward
as a united front. I served as president of a Group

2030 Targets and Positioning of the Plan 2026

operating company until 2022, and to be honest, at that

Towards 2030

The Plan 2026
(2024/3 - 2026/3)

Next Mid-termManagement Plan
(2027/3 - 2029/3)

380,000*

500,000

700,000 - 800,000

Proactive use oftechnologies in somebusinesses (including
Career) ahead of others

Improving productivity
in the Workforce
Business, mainly throughdigitalization
Increasing the number ofwork opportunities createdin the Digital Platform
Business and improving its
contribution to profit

Discontinuous
productivity improvementin Workforce Businessthrough DX
Dramatically increasing
the number of work
opportunities created in the
Digital Platform Businessand its contribution to profit

An HR service company that can achieve
dis continuous growth with products anddigitalization while attaching importanceto the intervention value of people

Establishing Career as aprofit growth pillar whichis comparable to Staffi ng

Establishing a morestable business portfolio
by cultivating new profit
growth pillars in JapanAn HR company with multiple mainstay
businesses and business models in Japanand APAC

Current Status(2023/3)
Goal for Value
Creation

Technologydriven HR Service
Company

Business
Portfolio

2030
A “Career Well-being”
Creation Company

time my top priority was to grow the business I was
entrusted with, as I believed that doing so would resultin the growth of the Group as a whole. However, I now
believe that if each SBU maintains a deep understandingof the Group’s direction, growth strategy, and the

The degree of
dependence on Staffi ng
is high in terms of
profit, and the businessportfolio needs to bestrengthened further.

One million people (creating better work
opportunities)

role their organization plays within it, and continues
working to meet the needs of customers and society
while engaging in a free and open exchange of ideas,
as in the past, the PERSOL Group’s management willfunction at a higher level and our growth potential
will increase dramatically. To this end, I will serve as apart-time director of the Group’s operating companies

APAC
BPO

together with CFO Junji Tokunaga, and we will work
to connect the Group’s growth strategies with thebusiness strategies of each SBU as we work toward theaccomplishment of the Plan 2026.

Technology
CareerStaffi ng*The latest provisional value that is subject to change

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group's Value Creation

Strategies for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

Foundation for Value Creation

23

Message from the CFO

2026. I regard the improvement of corporate value, that is,
improving our ability to create cash ﬂows from a mid- to longterm perspective, as the greatest goal of the financial strategy.

Financial
Strategy

I believe this means creating a framework for expanding cash
Message from the CFO

ﬂows over the mid- to long-term by improving the ability of
individual businesses to create cash ﬂows and optimizing ourbusiness portfolio while pursuing capital efficiency, instead of

Achieving sustainable growth by
improving our ability to create cash
ﬂows over the mid- to long-term.

simply increasing the current cash ﬂows.
Therefore, in the Plan 2026, we divided the financial strategy
into three components — major indicators for the financial
strategy, cash allocation and shareholder return — and set
targets for each.
First, regarding the major indicators for the financial strategy,

Executive Oﬃcer CFO(Chief Financial Oﬃcer)

we set the target for the annual operating profit before

Junji Tokunagaof growth potential, at higher than 10%. Regarding ROIC and ROE

depreciation and amortization (EBITDA) growth rate, an indicatorwhich are indicators of efficiency, we again set targets that far
exceed WACC. (Refer to the figure below and the figure showing
financial targets on the next page.) We set a target net debt/
equity ratio of up to 1.0 and a target net debt/EBITDA ratio of up
to 2.0 as criteria for the soundness of the stock and flow aspects.

Transformation of HR services resulting
from the impact of the COVID-19 pandemic

2023. I feel that the changes in our social behaviors, which were

The three-year period of the previous mid-term managementhuman resources, having transformed HR services.

plan, which started in the fiscal year ended March 2021, was theperiod spent under the inﬂuence of the COVID-19 pandemic.
In the first fiscal year in particular, the PERSOL Group was
also affected greatly, including in the permanent placementbusiness and the APAC business. Accordingly, the previous

triggered by the COVID-19 pandemic, have greatly changed
the work styles of individuals and corporate clients’ view of

In light of the continuing expansion and diversification of

we aimed to recover to the pre-COVID-19 level as quickly

the HR service market, during the new PERSOL Group Mid-as possible. However, corporate clients’ demand for humanterm Management Plan 2026 (hereafter “the Plan 2026”), we

resources was very strong. In the fiscal year ended March 2022,

are pursuing a growth strategy of developing and expanding

all of the businesses of the PERSOL Group grew significantly,

the Digital Platform Business while achieving the growth of fiveenabling us to achieve the financial targets of the previous

businesses: Staffing, BPO, Technology, Career and APAC.

were also able to achieve growth in the fiscal year ended MarchI think these criteria will function to ensure financial discipline
as we consider and implement M&A activities in the future.
ROIC

Growth and capital eﬃciency targets
clarified in PERSOL Group Mid-termManagement Plan 2026

mid-term management plan was a cautious plan, under which

mid-term management plan a year earlier than planned. We

While the PERSOL Group is virtually debt-free at present,

This growth strategy and our financial strategy together
form the foundation for the implementation of the Plan

14.2

15.3

2022/32023/3

(%)

15%<

9.2

2021/32024/3

ROE* 118.9

2025/32026/318%<(%)

17.2*210.2
11.2
2021/32022/32023/32024/32025/32026/3*1 Effective in the first quarter of the fiscal year ended March 2023, the accounting
method of asset retirement obligations was changed. The new method has
been applied retroactively to values for the fiscal year ended March 2022.
*2 ROE excluding the impact of impairment losses announced on April 11, 2023

PERSOL Group Integrated Report 2023

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Strategies for Value Creation

PERSOL Group's Value Creation

Foundation for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

24

Message from the CFO

Next, regarding cash allocation, we have instituted a major

Financial Targets of the Overall Group

shift in policy from the previous mid-term management plan. In

Previous Medium-term Management Plan
(until the fi scal year ended March 2023)

the Plan 2026, we significantly increased the dividend payout
ratio to approx. 50% of adjusted EPS and decided to appropriate
the remaining approx. 50% mainly to growth investments
and working capital, reﬂecting our policy of attaching greater
importance to capital efficiency and shareholder return. Further,in the Plan 2026, we did not allocate funds for M&A activities in
the internal reserve. This is because, judging from the PERSOLGroup’s current ability to create cash ﬂows and its financial
foundation, we have a sufficient ability to procure funds for
M&A activities whenever we need to. It is also aimed at further
improving shareholders’ equity efficiency.
Regarding shareholder return, as I mentioned above, we doubled
the dividend payout ratio from approx. 25% during the previous
mid-term management plan to approx. 50% from the viewpointof shareholder return and shareholders’ equity efficiency. We havealso set total shareholder return (TSR) as a key indicator.
In addition, high-level business management and fundmanagement are also essential in the implementation of thefinancial strategy. We plan to renew the PERSOL Group’s
platforms for business management and fund management
and constantly improve business processes from theviewpoint of efficiency and speed of management during thethree-year period of the Plan 2026.

Generating a greater cash ﬂow by
improving capital eﬃciency
In my view, the duties of the CFO are largely divided into

Growth1

Efficiency

Finance
Indicators

Soundness

2
Cash Allocation

3
Shareholder Return

Mid-term Management Plan 2026 (until the fi scal year ending March 2026)

Adjusted EBITDA

Operating profit ¥45.0 billion
ROIC: 10% or higher
If net cash exceeds 1.0 time of EBITDA,
measures for strengthening shareholder
returns will be considered.
A total of 130.0 billion yen, including
surplus cash, will be allocated as follows.
M&A: ¥80.0 billion
Capital investment: ¥30.0billion
Dividend: ¥20.0 billion
Dividend payout ratio:
Approx. 25%(of adjusted EPS)

¥75.2 billion (2023/3)¥100.0 billion or more (2026/3)

ROIC

15% or higher, in principle (JGAAP)

ROE

18% or higher, in principle (JGAAP)Net D/E

Up to 1.0 at max.

Net Debt/EBITDA

Up to 2.0 at max.

Accumulated EBITDA
after tax

* We plan to announce target values
under IFRS when announcing the
Q1 results in August 2023.

200.0 billion yen (estimate) will be allocated to IT investment,
including investment in software, shareholder returns (dividends),
investment in growth, and other areas.

Dividend payout ratio

Approx. 50% (of adjusted EPS)

ROIC as an indicator of capital efficiency and otherGroup, we have introduced a system in which the person

indicators, to determine how to optimally allocate theresponsible for each business makes business-relatedresources of the Group as a whole to the businesses.

decisions speedily under the SBU structure while PERSOL

The third duty is to develop systems and processes

HOLDINGS monitors and supports their decision making.

which enable the appropriate understanding of financial

I am involved with all five Group operating companies as adata and other matters that are the basis for decision-

Board Member, and we have built the optimal governancemaking, so that the management team can makesystem for creating corporate value, including discipline

decisions correctly and promptly. Speedy, Speedy,

in decision making and business management. Further,accurate and detailed financial data is necessary

because we are entrusted with the personal information

for creating budgets, implementing PDCA based onof many customers as a provider of HR services, we must

performance management and making the best decisions

ensure thorough risk management and compliance.

in M&A activities and other events. This requires
platforms for managerial and financial accounting andfund management. As the CFO, I will constantly improvethese foundations for financial management.
The fourth duty is the optimization of communication

Achieving our value creation goal throughcommunication with stakeholders
The HR service business that the PERSOL Group operates

five categories. One is improving competitiveness andwith all stakeholders, including shareholders andis expected to grow significantly and plays an importantthe ability to create cash ﬂows by refining and improving

investors. I will increase my commitment to dialogue withrole in the provision of work opportunities as an essential

each business model. Currently, HR services are facing ashareholders, investors and other stakeholders to enablefoundation for society. We will continue to ensure appropriate

transformation caused by technology. The CFO’s duty is tothem to understand the PERSOL Group’s Value Creation

information disclosure while enhancing our corporate valuetransform business models by working together with theStory and growth strategy for value creation.

from the viewpoints of growth strategy and capital efficiency

person responsible for each business and the IT division.

Finally, the fifth duty is risk management. In April 2023,

The second duty is to optimize the business portfolio

I became concurrently in charge of the GRC (Governance,stakeholders about our Group Vision and Value Creation

by looking at the Group as a whole. I aim to optimize

Risk, and Compliance) Division. I will work to achieve

Story (growth strategy), as part of our efforts to achieve thethe business portfolio, which currently consists of fivebetter corporate governance and risk management

PERSOL Group’s value creation goal set in the Plan 2026.

businesses (SBUs), using a growth potential indicator,

while also fulfilling my duties as the CFO. At the PERSOL

and deepening our communication with investors and otherPERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group's Value Creation

Strategies for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

Foundation for Value Creation

25

Message from the CHRO

The PERSOL Group’s Engagement Drivers

Human Resource
Strategy

Career ownershipsupportMessage from the CHRO

Organizational
development

Self-eﬃcacy

Contributing and growing
through work

Promoting human capitalmanagement by focusing on
improving the “Career Wellbeing” of our employees andtemporary staﬀ.

Autonomy

SharedGroup
VisionSelf-directed
career andwork style

Work style reform

Relationships
Respecting andacknowledging
each other as
individuals

HealthDI&E

Physical and mental
well-being

Corporate healthmanagement

Executive Officer CHRO

Hirotaka Mino
Engagement Index

Average values for motivation contributing to “work” andHigher employee engagement forthree consecutive years

index, which measures the extent that employees resonate

The PERSOL Group is committed to improving the “Career

success of the ongoing efforts by each SBU and company toWell-being” of both our employees and temporary staff.

enhance engagement, in addition to our Group-wide efforts.

with the Group Vision, rose from 77% to 79%, marking the

motivation contributing to “organization”
63

68

71

2021

2022

(%)

third consecutive year of growth. I believe this is due to the

We regard our engagement index as the most important

We have identified five engagement drivers as

HR metric for our employees, and conduct our own annual

important elements for enhancing engagement—

engagement survey to identify the state of employee

autonomy, self-efficacy, relationships, health, and shared

Vision Empathy Index

engagement. The findings of this survey are then used

Group Vision—and have designed and developed a range

Can you empathize with the PERSOL Group Vision

to develop strategies for improvement. Meanwhile, withof measures to achieve these.

“Work and Smile”?

regard to temporary staff*, we established the Staff

With regard to employee health, which is a key

Well-being Committee in 2022 to visualize and study

foundation for engagement, we have made steady

initiatives to improve the well-being of temporary staff.

advances over the past three years, focusing on visualizing

Refer to page 28 to 29

employee health status through measures that include

In 2022, the engagement index rose to 71%, up fromunifying our stress check system and initiating Group-

the previous year’s 68%. In addition, the vision empathy

wide monitoring of presenteeism—a measure of reduced*The collective name for staff registered with our Staffing SBU, Technology SBU, and BPO SBU services.

2020

76

77

79

2020

2021

2022

(%)

*Figures for the above indices are based on the percentage of respondents who selected
the two most positive answers out of the five options available. The engagement index
has been recalculated from 2021 to include figures from APAC SBU.

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Financial and Non-fi nancial Data/
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Message from the CHRO

performance due to poor health. Going forward, we will

promote positive behavioral change among our managers.

continue working to integrate the Group’s health checkup

In the PERSOL Group’s Mid-term Management Plan

From 2023, the Group’s average score on our internal
engagement index and the score on the “Career Well-being”

data and begin analyzing the relationship between

2026 (hereafter “the Plan 2026”), we have positioned

index developed jointly with Gallup, Inc. will be set as newmental health (stress checks), physical health (regularhuman capital as one of our business growth engines,

KPIs for the Group, and we have also decided to increase

health checkups), and the connection to one’s work andand will accelerate our efforts in the following three

the weighting of these KPIs as evaluation items used toorganization (engagement), while also conducting joint

areas: (1) achieving “Career Well-being,” (2) enhancing

determine the compensation of our management team. With

research with external organizations and introducing

technology-oriented human resources and (3) building

the establishment of these metrics, our management team isexperimental health initiatives that leverage technology.

the foundations for diverse human resources to leadcommitted more strongly than ever to increasing engagement

active roles.

and achieving our FY2025 engagement target of 75%.

With regard to autonomy, since 2016 we have gradually

At the PERSOL Group, we have been working to

DI&E (Diversity, Inclusion, and Equality) also remains ancareer ownership, including soliciting open applications

incorporate engagement index into the criteria used toimportant priority in order to continue increasing employee

for internal positions and conducting career training,

evaluate the performance of our management team, as weengagement. By pushing forward with these initiatives, wewith 1,118 employees participating in 2022, and 3,368

believe that improving employee engagement contributes towill provide opportunities for diverse human resources to play

employees participating cumulatively since the program’s

the growth of the Group as well as to customer satisfaction.

active roles, which is one of the material topics we have set.

developed measures that aim to support employees’

establishment. With the number of participants increasing
year by year, I feel that our employees are taking greater

Business Growth Engines: Human Capitalownership of their personal careers. Our analysis has also
found that the key to increasing career ownership among
employees is support for action. Accordingly, over the

Human
Capital
Policynext three years, we plan to introduce a new scouting-type

Overview of Human Capitaltransfer system to encourage employees to take action.
I also feel that we are making progress in developing
leaders with the ability to drive engagement. As one

We will drive value creation by becoming a Group where diverse human resources
including temporary staﬀ achieve Career Well-being.

VisionKey Initiatives

Becoming an organization driving value creation where
diverse human resources achieve Career Well-being

1

measure to this end, we have developed an action-learning
training program designed to help managers improve teamdynamics, with a total of 35 teams participating in thisprogram over the past three years. Teams that participatedin the training have shown a high level of practical

Components

1

2

Achieving CareerWell-being

Enhancing Technologyoriented Human Resources

Employees andTemporary Staﬀ

Recruitment
and Development

2

program, which has provided a strong basis for enhancing

Building the Foundations for Diverse
Human Resources to Lead Active Roles

teamwork and relationships. Going forward, we will train

DI&E and Talent management

3

Meanwhile, we continue workg to develop an action index
which focuses on the day-to-day behavior of managers
in highly engaged organizations. Through Group-wide
interviews, we have identified seven management behaviors
that contribute to employee engagement. In the future, wewill use this action index in a variety of measures designed to

Building a comfortable work environment for specialized
human resources (personnel systems, etc.) and enhancing
hiring capabilities through improved recruitment branding
Promoting reskilling and upskilling through a wide rangeof specialist programs

Advance DI&E by increasing the percentage ofmanagerial positions filled by women and encouraging
eligible male employees to take childcare leave
Cultivating top leaders through diverse talentmanagement measuresorganizational development facilitators in-house, with thegoal of providing this training to all managers by 2030.

Improving the well-being of temporary staff by
supporting working styles that suit each individual

Aiming to employ more than 2,000 technology-oriented
human resources (by 2026/3)

3

application and retention of the skills learned during the

Improving employee engagement through career
autonomy and measures to advance healthManagerial behaviors that drive engagement
Shared Vision

Informing their team members of what is importantin their work on a daily basis.

Communication of
Growth Expectations

Verbally communicating expectations for teammembers’ growth.

Communicating
work purpose

Thoroughly explaining the purpose and significanceof the work undertaken by team members.

Setting aside time
for consultation

Devoting adequate time for consultation with teammembers.

Resolving issues
through dialogue

Engaging in dialogue with team members to help
resolve any problems they face.

Feedback on
Strengths

Providing feedback that focuses on teammembers’ strengths.

Self-disclosure bymanager

Sharing their concerns and thoughts.

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Message from the CHRO

Taking steps toward reducing manager
workloadIn the Plan 2026, we plan to enhance talent managementof managerial personnel and tackle the issue of increasing
managerial workloads in order to build a foundation fordiverse human resources to take on leading roles.
Managers have an important role in enhancing both
engagement within their organizations and customer

making proactive use of technology. Through these
initiatives, we aim to help all managers in the PERSOLGroup to grow into top leaders.

Refer to page 40 to 41

Working to visualize our humanresource portfolio.
Planning to hire 12,000 additional
employees over the next three years.

Planning approximately 200 billion yen
in human capital investment
The PERSOL Group regards each and every one of its
employees and temporary staff as a source of corporate
value. As such, we are working to promote human capitalmanagement by investing proactively in training as well as
rewarding employee contributions so that all employees cangrow autonomously and continue to ﬂourish, even in today's
highly uncertain business environment.

satisfaction. Many of our current management team are

In formulating the Plan 2026, we developed a job typeaged 45 years or older, which makes talent management

master for the entire Group, visualized our humanof our managerial personnel particularly important fromresource portfolio for the next three years by job typean average of 5% in order to improve our recruitment

the perspective of developing the next generation ofand business, and discussed the matter among ourcompetitiveness as well as to increase employee retention.

senior management.

senior management team.

Over the next three years, we plan to visualize productivity

At the same time, we recognize that the role

As a result, we reached a common understanding

In April 2023, we raised wages across the Group by

improvements at each Group company and distributedemanded of managers has expanded over the pastthat, in addition to increasing the number ofapproximately 50 billion yen in total to our employees via

few years, including changes in work styles due to thetechnology-oriented human resources, we will

regular pay raises and wage increases.

impact of COVID-19 pandemic, making managerial

also need to bolster our sales staff, who deal

workloads an increasingly serious problem. I also sensewith customers on a daily basis, and our planning

based compensation scheme for managers, aiming for aa general societal trend among young people to be

specialists, who will promote digital transformation

more competitive compensation package. We plan to allocate

reluctant to take on managerial roles due to day-to-day(DX) throughout the Group. Based on this recognition,

approximately 3.5 billion yen in stock grants over the next threepressures, which makes it diffi cult to maintain a mid- to

we decided to increase our employees across theyears to increase the engagement of our managerial staff andlong-term vision. Given these trends, we have addedGroup by some 12,000 personnel. As hiring can be

foster their sense of participation in the company’s management.

talent management and managerial workload among

ﬂ exibly adjusted and controlled in line with economic

our mid-term focus points, and will strengthen our

trends, we do not believe there is a signifi cant risk inmonetary terms, we will also step up investment in training,efforts in these areas.

planning to increase our headcount at this time.

such as reskilling programs, as well as in work style reforms.

In order to further develop the capabilities ofStrengthening employee retention is another key factor

We have also decided to increase the value of the share-

In addition to returning profits to our employees in

We plan to invest approximately 3.5 billion yen in education

our managers, we will develop and introduce newin achieving our recruitment plans. The turnover rate forand training over the next three years, an amount that does

experimental training courses in addition to ourthe Group as a whole is currently hovering at around 10%,

not include the labor costs of employees participating inexisting programs. We will also expand the transfer

and going forward we will work to visualize and analyze

training. We anticipate a positive return on this investment, asof personnel across the Group, including not only

turnover rate by job type, age, gender, and other factors to

many of the PERSOL Group’s training programs are produced

our current senior management but also the next

determine how to improve retention on a Group-wide basis.

in-house, and we will consider making additional investments

generation of management, who are currently in their

Although we are currently working to visualize thesein future as our business performance improves. In addition,

30s. We will also release a self-assessment tool for thehuman resource portfolios primarily in Japan, where wewe have allocated approximately 140 billion yen over the next

PERSOL Leadership Competency that we established inhave a well-developed employee database, we are also

three years to other expenses associated with the increase in

2022, seeking to raise awareness of the competencies

in the process of developing similar databases in thethe total number of employees across the PERSOL Group.

required of the Group’s leaders.

APAC region.

In addition, we will launch efforts to reduce managerial
workloads by redefining the roles of managers andOver the coming three years, we intend to visualize
the human resource portfolio of the entire Group.

We will continue to maintain a Group-wide focus on humancapital management as an engine to drive business growthunder the Plan 2026.

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28

The Staﬀ Well-being Committee

The Staff Well-being Committee
The Staff Well-being Committee implements a range of initiatives to help improve staff’s well-being, sothat all temporary staff can work with their values respected and live their lives in their own ways.

Our Thoughts on Businesses Related toTemporary Staﬀ
Our Thoughts on Temporary Staﬀ
We aim to enable each one of our temporary staff members tochoose their work style and live in their own way. We respect
the values and future visions of our individual temporary staff
members, such as their work-life balance and their career path.
We believe the availability of a range of work options enabling people
to work in their own ways leads to the improvement of well-being.

Our Thoughts on Temporary Work as a Work Style
We aim to have temporary work recognized as a ﬂexible,

Structure and Matters to Deliberate/Resolve
The Staff Well-being Committee was established under

CROSS TECHNOLOGY, and the general manager of thethe Headquarters Management Committee (HMC), an

Human Resources Planning Division of PERSOL HOLDINGS.

organization which assists the CEO and discusses the PERSOLThe committee visualizes the current realities ofGroup’s basic management policy and important operations.

the PERSOL Group’s human capital management for

The Staff Well-being Committee is in charge of strengthening

temporary staff and deliberates important matters related

and supplementing businesses related to temporary staff. It

to human capital disclosures (the disclosure of stories

reports on and proposes important matters to the HMC.

consistent with the Group’s HR strategy, policies regarding

The Staff Well-being Committee is composed of 13

the provision of information to and dialogue with eachmembers, including the CHRO of PERSOL HOLDINGS,

stakeholder, and important measures and action planspresidents and representative directors, officers, andrelated to the Group’s policies and issues), thus ensuring

general managers from PERSOL TEMPSTAFF and PERSOL

that each initiative is appropriate.

sustainable work style in that it permits staff to choose ways
of working and work content that suits them. We would like topromote the appeal of temporary work as a work style in society,

Members of the Staff Well-being Committee

including that it enables people to balance work and their family
and to try working in a new field, and let people know that
temporary work is an option for them in the achievement of theircareer visions.

Our Thoughts on the Labor Market
We will contribute to society by creating employment for
temporary staff members and enabling these staff members
to help solve the issues faced by the companies to which they
are dispatched. We also aim to remain the industry-leading
company in human capital management, which is attracting
attention these days, by maximizing the value of humanresources and by valuing individual human resources.

Shinji Masaki
PERSOL HOLDINGS
Executive Offi cer
Technology SBU Lead

Kazunari Kimura
PERSOL HOLDINGS
Executive Offi cer
Staffi ng SBU Lead

Asuka Yamakawa
PERSOL CROSS TECHNOLOGYExecutive Offi cer
General Manager of Service
Strategy Division

Hirotaka MinoPERSOL HOLDINGS
Executive Offi cer CHRO

Kazuko Uehara
PERSOL TEMPSTAFF
General Manager of Business
Process Design Division

Tatsuya AndoPERSOL TEMPSTAFF
General Manager of Career
Promotion Division I

Shigeko Goto
PERSOL TEMPSTAFF
General Manager of Staffi ng
Planning Division

Kazuyuki Ichimura
PERSOL HOLDINGS
Executive Offi cer
BPO SBU Lead

Chiaki Nakatsubo
PERSOL TEMPSTAFF
General Manager ofOnline Marketing Division

Kiyoshi Maeda
PERSOL TEMPSTAFF
Executive Offi cer
General Manager of BPO Business
Planning & Management Division

Ryoko Yamasaki
PERSOL HOLDINGS
General Manager of HR Planning
Department, Group HR Division

PERSOL Group Integrated Report 2023

About the PERSOL Group

Strategies for Value Creation

PERSOL Group's Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

Foundation for Value Creation

29

The Staﬀ Well-being Committee

The Staff Well-being Committee
Two Priority Themes Based on the PERSOL Group’s HR Strategy

Value We Aim to Create

Creating Work Opportunities

Creating Fans

To cater to the diverse needs of temporary staff, we attach importance tothree points, the creation of diverse jobs, the introduction of an idea called
fitting, which combines job placement and continuous support for work,and HR development. Through these initiatives, we enable temporary staff
to continue working with good relationships with customers.

We will enable temporary staff to increase their trust in and attachment to
PERSOL through support that improves their psychological safety at work,
aiming to make more temporary staff want to continue working because
they are from PERSOL. It is this relationship of trust between the company
and staff that helps in creating work opportunities.

A larger number of contracts and higher value provided to clients,
achieved through fitting, will contribute to the growth of net sales and
EBITDA and lead to the medium- to long-term growth of the business andthen to an increase in TSR.
Further, we will improve temporary staff’s capabilities and solve a rangeof HR issues, thereby building relationships of trust with our clients. At thesame time, we will create new employment by leveraging our expertise inconnecting companies with people and support the labor market.

Visualizing the path, on which human capital initiatives corresponding to the priority themes lead to value creation, as an impact path
Human capital initiatives

Maximizing the value of human capital

Key to value creation

Improving employability

Providing value to clients

Creating work opportunities
Creating diverse jobs to meet
diverse work-related needs

Achieving value creation

Fitting with employers

Re-employment rate

Acquiring skills which expand possibilities

Billing rate *2

Building a desired career

Period of continuous employment*3

Improving psychological safety

Level of attachment to/trust in PERSOLFinancial value

Financial value(short-term)(mid-to long-term)*1

Net sales
TSR
EBITDA*4

Supporting the creation of financial value
Creating fans
Support enabling staﬀ to work steadily with apeace of mind

KPI

Staffing SBU
38.4%
2,268 yen31.0 months
57.9%

Re-employment rate*1
Billing rate*2
Period of continuous employment*3
Fan index

Non-financial value

Diversifying work styles

Share in the temporary staﬃ ng market

Increasing job satisfaction

Fan index

Number of clients of our temporary staﬃng services

Reducing work-related risks

2023/3 result
Professional Outsourcing SBU *6
45.9%
3,655 yen
28.3 months-*1

The percentage of temporary staff who were reemployed (who worked for three months or longer under temporary
staff placement contracts or outsourcing contracts signed within 31 days from the date of completion of temporary
employment) among those who have completed long-term (three-month or longer) temporary employment*2 Average billing amount among long-term, short-term (below-three-month), and one-off (one-day) temporary staffi ng
contracts in each month*3 Average length of period for which temporary staff from PERSOL have continued to work under long-term temporary
staffi ng contracts as of the end of each month“Career Well-being”

KPI
EB ITDA*4
Number of clients of our temporary
staffing services
Career Well-being*5
Q1/Q2/Q3

Staffing SBU
43.0 billion yen

2023/3 result
Professional Outsourcing SBU *6
9.3 billion yen

22,801 companies

2,268 companies

75.1%/80.6%/62.1%-*4 Changed to adjusted EBITDA in the fiscal year ending March 2024
*5 The content of Q1 to Q3 are as follows:
Q1: Do you enjoy the work you do in your job every day?
Q2: Do you think the work you do in your job significantly improves the lives of other people outside of your own household?
Q3: Do you, personally, have many choices regarding the type of work you can do in your life?
*6 Because the values are results for the fiscal year ended March 2023, the SBU structure that was current in the fiscal year
is indicated.

Specific Initiatives Corresponding to the Two Priority Themes
Support for Job Hunting

Support for Personal Development and Career Building

Support Enabling Staff to Work Steadily with a Peace of Mind

We provide opportunities to choose work styles that are appropriate
for the environment and the values of individuals. We also provide a
broad range of job postings information to enable individuals to findtheir desired jobs any time on their own.

We will proactively invest in human resource development to support
knowledge enhancement and skill development, which are necessary
for individuals to achieve their desired career, and work to implement
educational measures and visualize skills.

We will create a better work environment for temporary staff by providing
diverse options regarding work hours and places of work, hosting a rangeof events to enable the time outside their working hours to be fulfilling,
handling risks and compliance matters, and taking other measures.

Details are available here

Details are available here

Details are available here

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About the PERSOL GroupPERSOL Group's Value Creation

Strategies for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

Foundation for Value Creation

30

Message from the CIO/CDO

Establishing an organization of
specialized human resources within
the Group to expand our technologyoriented human resources

Technology
Strategy Message from the CIO/CDO

We will contribute to creating
employment opportunities by
maximizing the value that can only
be created by people using thepower of technology.
Executive Oﬃcer CIO/CDO(Chief Information Oﬃcer/Chief Digital Oﬃcer)

In order to promote technology in the Plan 2026, we haveidentified four areas in which we will implement a variety
of measures.

Business Growth Engines: Technology

Technology
PolicyYuta Tsuge

Areas of Technology Promotion

CustomerExperience

Drawing up a highly eﬀective plan toward
our Mid-term Management Plan 2026

One of these is the evolution and advancement of

It has already been a year since I assumed the positionfi scal year ended March 2023, we were able to realizeof CIO/CDO, and the fi scal year ended March 2023

data utilization of our human resources system.

was a period of preparation for the PERSOL Group

However, it will take several years for a company

Mid-term Management Plan 2026 (hereafter “the Planas large as the PERSOL Group to complete these2026”). We spent a year considering a plan on how

system improvements, so we will continue to moveto promote technologies over the next three years to

forward in a planned, phased manner. During the past

become a “technology-driven human resource service

year, we also focused on strengthening security andcompany,” which is the management direction set forthdata governance. Each SBU has diff erent businessin the Plan 2026. In formulating the plan, we exchanged

characteristics and handles diff erent information, so

opinions not only with the technology department but

we established rules tailored to each situation, andalso with key personnel in each SBU, and we believe

then expanded the scope of individual customizationthat the plan was highly eff ective in light of the Group’sand deepened the level of our eff orts. We were able tocurrent situation.

obtain an evaluation that met the standard when we

We have also taken several preliminary steps toensure that the Plan 2026 gets off to a smooth start.

our corporate systems, including human resources,
accounting, and sales support systems, and in the

had it analyzed by a research company, but we will aim
to evolve without resting on our laurels.

Using a technology-based Center of
Excellence (CoE) organization as a hub, wewill enhance Groupwide technology-oriented
human resources and organizations whilestrengthening implementation and utilizationin businesses and services.

Employee
Experience

3

4

Increasing the value ofcore businesses*1

Creation of new value*2

2

1

Promoting thedigitalization ofenvironments

Evolution of technologyoriented human resourcesand organizations

DigitalizationDX

Key Initiatives

1

Developing environments that enable the success of specialist
human resources through Group recruitment, the establishmentof CoE organizations and the building of comfortable working
environments for specialist human resources (personnel
systems, etc.).

2

Further improvements to the working environment throughdevices, infrastructure and the digitalization of corporate systems.

3

Increasing the service value of core businesses by improving
matching sophistication, UI/UX improvement, personalization,
data utilization, in-house development, etc.

4

Exploration, creation and expansion of new products andplatforms for technology-based “Career Well-being.”*1. Workforce Business + Digital Platform Business*2. Digital Products / Digital Platforms

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Message from the CIO/CDO

First, in terms of increasing the number of technicalfor digitalization and move toward the digitalization

with ever-changing work styles. We aim to achieve thepersonnel and organizations, we plan to increase theof the entire Group. By doing so, we aim to improvevalue creation goal of the PERSOL Group for the year

number of technical personnel to at least 2,000 byservice value and explore and create new products

2030, which is to create better work opportunities

the fiscal year ending March 2026, the final year ofand platforms.

for 1 million people. We will continue to expand ourthe Plan 2026. To achieve this goal, we will establish acollaboration and utilization among SBUs will also

commitment to change the world for the better in

new CoE organization that aims to connect people andprogress, which will increase the possibility ofJapan and APAC in order to realize our group vision oforganizations through technology, and will specialize

accomplishing things that could not be done by each“Work and Smile.”

in recruitment activities, human resource development,

SBU alone, and will enable the Group to leverage its

and placement. The shortage of technical personnel

unique strengths.

is becoming more serious in Japan. According toRefer to page 38

In addition, data

We will also promote digitalization to build a more

Moreover, I feel that the technology department
will play the leading role in a very large part of thisprocess. There will be many new challenges in thethe Ministry of Economy, Trade and Industry, thepositive working environment for employees. Workpromotion of technology during the Plan 2026, andshortage had already grown to 300,000 in 2020 andstyles, places of work, and work hours will become

everything will not necessarily go well. However, since

is expected to reach between 450,000 and 800,000

increasingly diverse. Therefore, we need to prepare anthese initiatives are indispensable for the PERSOL

by 2030. Because the PERSOL Group is a recruitment

environment that considers all possible work patterns.

Group in the future, we will take an aggressive

professional, we would like to advance initiatives to

To begin, we want to increase the sophistication ofstay abreast of the situation. What is more importantthe corporate systems mentioned above, so that they

make this the first step in a three-year period in whichis retention, or in other words, the ability to create an

can be used without stress in any environment.

we can be recognized as having made significant

environment in which employees can stay with their

We will also design a next-generation work

progress in the use of technology. We can all lookapproach on these challenges, and I would like tocompany for a long time after joining and continue toenvironment which assumes the use of multiple devices,

forward to the PERSOL Group accelerating its growth

improve their skills. To achieve this, it is important toincluding not just PCs but also smartphones and tablets.

with the power of technology.

continue to create attractive services and products,
in addition to an environment and system that is
comfortable to work in. We must grow as a company
so that our highly specialized employees can maximize
their abilities, and we must build a culture that

Accelerating growth using the powerof technology, with people continuing
to play the central roleembraces technology personnel, centered on the CoE

We believe that human resource services is an industry

organization, to drive further digitization and DX.

where people play the leading role, as people expand
their potential through the power of others. Naturally,

Promoting the Group-wide
digitalization of core businesses
In the Plan 2026, I believe that the most important

the PERSOL Group has the experience and prideof having evolved in this industry, and these coreelements will never change.
Although the use of technology has become more

focus should be on the digitalization of our core

important with the evolution of technology andbusinesses. The PERSOL Group has several SBUs,changes in society, what is important is “how people

but the progress of digitalization differs from one

demonstrate their value,” and technology is one of theto another, and there in unevenness throughout themeans to expand human potential. We will contributeGroup as a whole.

to the creation of work opportunities by maximizing

Therefore, under the Plan 2026, we intend to givepriority to those SBUs that have significant scope

the use of technology and creating services andbusinesses that support working people in accordance

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About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Financial and Non-fi nancial Data/
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32

Group Structure and Strategic Policies

Group Structure and Strategic Policies
SBU” in order to strengthen the use of technology in the IT and engineering fields.

On April 1, 2023, the PERSOL Group changed its management structure. A BPO SBU

Going forward, we aim to further enhance corporate value in the five business units ofspecializing in the BPO domain, which is expected to grow further, has been newly
established to create synergies by integrating knowledge and capabilities within the

Staffing SBU, BPO SBU, Technology SBU, Career SBU, and Asia Pacific SBU. In the R&D

Group. In addition, the Professional Outsourcing SBU has been renamed the “Technology

FU, we will promote the search for and creation of mid- to long-term business models.
*SBU: Strategic Business Unit, FU: Function Unit

Sectors to Develop

Sector to Explore

SBU
Organization
Name

Core
Companies

Strategic Policyin Mid-termManagement
Plan 2026

R&D
FU

Staffing

BPO

Technology

CareerAsia Pacific

P.33

P.34

P.35

P.36

P.37

P.38

PERSOL TEMPSTAFFPERSOL BPO*1

PERSOL CROSSTECHNOLOGYPERSOL CAREERPERSOL
Asia Pacific

PERSOL DIGITALVENTURES

Aiming to become
the No. 1 HR service
company in terms ofscale and profitability
in the APAC region,
where further growthis expected, under thefoundations of highproductivity and an
efficient operation base.

Selecting businesses
in line with theGroup’s strategies tocreate a new revenue
model for 2026 andbeyond.

We aim to be acompany that iscontinually chosen
by workers by raising
their awareness andproviding them withmore opportunities
to discover new
possibilities anda wider variety ofchoices.

Complementing
and reinforcing
our client base andthe ability to solve
client issues throughorganizational
restructuring andintegration within
the Group.
Fundamentallystrengthening theability to promotebusiness design anddigitalization using
technology throughhuman capital
investment and M&A.

Aiming to achievebusiness growth by
expanding businessareas centered on
IT businesses, whilestrengthening themechanical andelectrical field as afoundation.

A unique businessmodel with amultiple structure of
earnings,enhanced
initiatives in thehigh-career domain
and direct recruiting
service domains.
Evolution of thepower of “Candidate
databese expansion”
to the next
generation.

* PERSOL BPO CO., LTD was established as the core company of the BPO SBU. A part of PERSOL TEMPSTAFF’s business (the BPO Business Division) also belongs to this SBU.

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33

Staﬃng SBU

Staﬃng SBU

Competitive advantages

Providing growth opportunities andwork options to continue to be
selected by individuals and build longterm relationship of trust with clients
Executive Oﬃcer, Staﬃng SBU Lead

Kazunari Kimura

The strengths of the Staffing SBU are its size, boasting the top share of the clerical andadministrative staffing market, as well as the foundation of its business and the trust it has earned.
As of March 2023, more than 125,000 people are dispatched as temporary staff. We
are accelerating our DX to improve the value of people and productivity, by combining
technologies with the data and expertise that we have accumulated over many years ofoperating a temporary staffing business.
Further, to provide diverse employment opportunities, we have created services that fillin the gaps between clients and workers, such as temporary staffing for the development ofPerceived Business
Environment

Business Opportunities
and Risks

young human resources and temporary staffing using technologies.

In the clerical and administrative staffing

Opportunities

The Staffing SBU will sustainably provide possibilities, new insights, and options formarket, the primary market for theStaffing SBU, demand is expected todecrease in the medium to long term due
to a decline in the working population andthe use of technologies as alternatives.
However, while the use of technologies
as alternatives increases, changes are also

Employment opportunities created by thediversification of work styles
Short-term increase in labor demand reﬂecting
labor shortages

Risks
Decline in demand resulting from the medium- tolong-term decrease in the working population, theuse of technologies as alternatives and other factors

taking place in the structure of jobs at

Direction of Value Creation (Growth Strategies)
individuals to work in their own ways and offer solutions by identifying changes in clients’businesses and circumstances. Thus, our goal is to be an employment platform that isneeded by individuals, companies and society.
We will help individuals gain new insights and achieve personal development by providing themwith reskilling and learning opportunities related to their desired career paths and other elements
and by offering diverse work choices, thus allowing them to feel that they are working in their own
ways. Through these activities, we aim to be an entity that continues to be chosen by workers.
For companies, we will build long-term relationships of trust with customers, not only

companies, such as the emergence of new

through the supply of human resources as a means of providing value but also by providing

businesses. Therefore, we understand thatdiverse solutions based on our understanding of their issues and needs.

while there are threats, we can also expect

Pushing forward with these initiatives by making the maximum use of technologies, wethere will be a need to replace humanwill continue to provide value to both individuals and clients to continue to enhance ourresources accordingly.

presence in the temporary staffing market even while the working population is decreasing.

Results for Fiscal Year Ended March 2023

Net Sales(Billions of yen)

Operating Profit(Billions of yen)

Corporate demand for temporary staffing has remained brisk, and the number of people
dispatched as temporary staff increased year on year. As a result, net sales increased 7.4% year
on year, to 618,481 million yen, with the business performance driven by an increase in sales in theclerical and administrative staffing sector.

530.2

575.7

39.3

618.4

36.1

29.1

Operating profit decreased 8.1% year on year, to 36,180 million yen due in part to a temporary
decrease in demand for public related projects, in addition to an increase in paid leave taken by
temporary staff and in social security premiums, more than offsetting the higher sales.
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About the PERSOL GroupPERSOL Group’s Value Creation

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BPO SBUBPO SBU

Competitive Advantage

Working to enhance our presencein the BPO market and expand ourservice coverage, aiming to improve
the Career Well-being of individuals
Executive Oﬃcer, BPO SBU Lead

Kazuyuki Ichimura

The BPO SBU has two strengths. One is customer relations, which enables us to deeply
understand client needs leveraging the Group’s sales capabilities, which are among the largest
in Japan (there are approx. 9,000 corporate sales team members), creating opportunities toreceive orders for outsourcing services. The other is our talent supply, which is among thelargest in Japan and enables us to respond promptly to fulfill a wide range of customer needs.
In addition, we are focusing on harnessing and developing our people, while enhancing ourability to optimally design and digitalize business processes through the use of technology.

Perceived Business
Environment

Business Opportunities
and Risks

Direction of Value Creation (Growth Strategies)

The Japanese BPO market is currently

Opportunities

improve the productivity of society, facilitate labor mobility, and enhance the Career Well-around five trillion yen, with continued
growth expected as companies move tosecure sustainability amid the growing
uncertainty associated with rapidchanges in society, in addition to thelabor shortage and the growing needMid- to long-term increase in demand reﬂecting
the labor shortage and the need to improve
productivity
Increase in demand for services as meansof holding down fixed costs for ﬂexible
management amid uncertainty

Risks

to improve productivity. A broad array

Emergence of alternative services resulting from theevolution of technology

of corporate needs exist in this market

Fiercer competition

Within the BPO SBU, we will expand the scale and quality of our business, seeking to help
being of individuals, which form the value we offer society. We will enhance our presence in
the BPO market and expand our customer relations by utilizing and coordinating resources
including the Group’s customer base.
At the same time, we will enhance education and training programs that help improve theskills of our talent, which enables us to provide a higher level and wider range of outsourcing
services. We will combine a wide range of occupations with our educated talent to achieve
optimal placement and to improve the quality of our services.
We will also enhance our consulting services and aggressively consider M&A options toenvironment, and the ability to provide

dramatically improve our ability to design business processes and promote digitalization

extensive customer value is required.

with the goal of improving productivity.
With these initiatives, we will provide prompt, high-quality services to help our corporateclients maximize their productivity and improve the Career Well-being of our employees.

*The BPO SBU was newly established on April 1, 2023 as a result of the change of the management structure. Accordingly, the business results of the BPO SBU for the fiscal year ended March 2023 are not reported here. Net sales and operating profit of
the reportable segments after the structural change will begin to be disclosed in the fiscal year ending March 2024.

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35

Technology SBU

Technology SBU

Competitive Advantage

Expanding domains with a focus
on the IT business by securing anddeveloping high value-added humanresources with a high level of expertiseand technological capabilities
Executive Oﬃcer, Technology SBU Lead

Shinji Masaki

Perceived Business
Environment

Business Opportunities
and Risks

There has been a chronic shortage ofOpportunities

IT and engineering human resources
due to the increased sophistication oftechnologies and the diversification of
corporate demand. The IT and engineering
staffing and contract market, which is themain business field of the Technology SBU,
is expected to continue growing steadily.

Mid- to long-term expansion of the IT andengineering market
Growing demand for business processtransformation and automation for improving
the efficiency of business and reducing labor
Acceleration of the increase in people wanting tochange jobs associated with growing reskilling needs

Risks
Intensifying recruitment of engineers resulting from ashortage of such human resources
Technology obsolescence resulting from changes insocial needs

Results for Fiscal Year Ended March 2023

The strengths of the Technology SBU are its ability to provide end-to-end services including
upstream and downstream processes for not only IT, machinery, electricity and electronics,
but also consulting, maintenance and operations, as well as diverse contracts tailored to thecustomer’s needs, including outsourcing, temporary staffing and freelance contracts. The
number of engineers has been increasing steadily. It is currently approx. 10,000. We havealso accumulated knowledge and expertise related to the recruitment of engineers andother human resources with a high level of expertise and technological capabilities.

Direction of Value Creation (Growth Strategies)
In the Technology SBU, we aim to achieve the growth of business by expanding domains witha focus on the IT business while reinforcing the engineering domain as the foundation forgrowth. To achieve this, we will enhance our engagement and retention rate through activities
such as revising the personnel system and enhancing training programs, while also recruitinga wider range of human resources including inexperienced people, people from a backgroundin the arts, and non-Japanese human resources. At the same time, we will strive to improve
our sales capabilities and enhance training programs to shift to fields with higher added value.
Further, we will strive to recruit and develop high value-added human resources andexpand our customer base, in an attempt to increase billing rates. As measures for thispurpose, we will expand our career support and training programs for engineers, aiming
to improve their added value. We also plan to recruit more than 1,000 (engineers annuallycontinuously) to gain and maintain a competitive advantage for the medium to long term.

Net Sales(Billions of yen)

Demand grew in the engineering area, mainly for development in the manufacturing industry.
Further, there was also steady growth in the IT area. As a result, net sales increased 10.7% year on

Operating Profit

134.0
113.0

6.9

121.1

(Billions of yen)
7.5

year, to 134,085 million yen.
Operating profit increased 8.4% year on year, to 7,518 million yen due to the effect of increased

4.0

sales, more than offsetting an increase in cost that reﬂected a stepping up of recruitment activities
amid the intensifying competition for engineers.
*As a result of the change of the management structure, the Professional Outsourcing SBU was renamed the Technology
SBU on April 1, 2023.

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Career SBU

Career SBU

Competitive Advantages

Focusing eﬀorts on promoting DX in
anticipation of market growthand launching business models
targeting long-term business growth
Executive Officer, Career SBU Lead

Yu Senoo

Perceived Business
Environment(DR) service, with which companies directly

The jobs to applicants ratio decreased to 1.13

is expected to more than double its current

in 2021 due to the impact of the COVID-19
pandemic. It has been recovering, comingback to 1.28 in 2022.
It is expected that, reﬂecting the subsidingof the pandemic, the jobs to applicants ratio

approach job seekers, shall grow significantly.
As a result of these changes, the market
size by 2030. In addition, the side job andfreelancer domain, which is a market adjacentto the career-change market, is also expected
to grow significantly.

In this environment, the job market of regularBusiness Opportunities
and Risks

employees is expected to grow overall.

Opportunities

will recover to the before the COVID-19 level.

Above all, the high-career domain with

Mid- to long-term growth of the career-change
business market resulting mainly from careerownership of individuals and labor mobility
Expansion of the side job and freelancer market,
which is adjacent to the career-change market

annual income of 6.0 million yen or more is
expected to grow remarkably.
We expect that the existing placementbusiness and job advertising business are not

Risks

sufficient to meet the brisk corporate demandfor hiring, and therefore, the direct recruiting

Increased market competition fromemergence of competitors
Less interest in hiring at companies due toweakening business sentiment

Results for Fiscal Year Ended March 2023

The strengths of the Career SBU include a database of job seekers and projects thatis one of the largest in the Japanese job market, multitiered recruitment solutions(including a placement business, a job board, and DR) that meet the demands ofjob seekers and companies, and highly accurate matching based on data and AI
technologies. We will strengthen these competitive advantages further, with a focus on
the doda brand.

Direction of Value Creation (Growth Strategies)
While career-change-related markets are expanding, the Career SBU aims to increase themarket share at a rate above the market growth rate, aiming to create a society filled withcareer ownership. In the placement business and other existing businesses, we will drive
productivity improvement with DX investment and enhance product development. We willdevelop matching models that appropriately address the situation and circumstances ofindividuals and projects and introduce an AI matching system, thus providing appropriate
services and information at the right time. We will also enhance human capital investment
to enhance hiring capabilities and enable active participation and employee retention.
In addition, we will strengthen the high-career domain and the side job and freelancer
domain in anticipation of long-term business growth. In the high-career domain, having
started with the release of dodaX in October 2022, we will continue to make marketinginvestment to expand the database of job seekers and launch diverse business models. In
the side job and freelancer domain, we will expand the targets in the engineering area andlaunch new business models.
Further, we will aim to build and reinforce medium- to long-term relationships with job
seekers, for instance by suggesting learning linked with each job seeker’s market value or
project, mainly in the IT and high-class fields.

Net Sales(Billions of yen)overall market has also remained strong. In this environment, corporate demand remained
steady in the placement business and the job recruitment media business, resulting in net

Operating Profit

104.4

In the career-change market, restaurant- and service-related demand has recovered. The(Billions of yen)
15.5

75.2
59.5

7.2

sales of 104,467 million yen (up 38.8% year on year).
Operating profit increased significantly to 15,532 million yen (up 113.8%), despite increases
in advertising and recruiting expenses.

0.3
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Asia Pacific SBU

Asia Pacific SBU

Competitive Advantages

Targeting further gains in
profitability by optimizing thebusiness portfolio and maximizing
productivity

The Asia Pacifi c SBU has won top market share in Singapore, Malaysia, and Australia.
Taking advantage of its collective strength to comprehensively cover key areas in the
APAC region and provide a wide range of HR services, senior executives with diverse
backgrounds are driving the utilization of technologies in collaboration with businesses
in Japan while responding promptly to changes in the markets.

Executive Officer, Asia Pacific SBU Lead

Takayuki Yamazaki

Perceived Business
Environment

Business Opportunities
and Risks

The APAC region accounts for about 50%

Opportunitiesof the world’s labor force (as of 2021) andfeatures higher wage growth and greater
human resource mobility than other regions.
Moreover, as the working population
continues to grow and the region
experiences further economic development,
the APAC market is set to maintainsignificant growth. Consequently, we
forecast that the temporary staffing andplacement market (on a gross margin
basis) in APAC (excluding China and India)

Mid- to long-term growth in the workforce,
particularly in Southeast Asia
The expansion of the temporary staffing andplacement market to accommodate diverse work
stylesRisks
The entry of new players and the emergenceof alternative services linked to advances intechnology
Fluctuations in foreign exchange rates
Weaker corporate hiring demand because ofrising interest rates and an investor focus on
profi tability

Direction of Value Creation (Growth Strategies)
The Asia Pacific SBU announced its Mid-term Business Plan in August 2022, ahead of thePERSOL Group’s Mid-term Management Plan. In the three-year period from FY2023 to
FY2025, the SBU is working to improve profitability with three main strategies as its pillars.
The first pillar is the revision and optimization of the business portfolio. In the overall HR
service business, we will focus on technology-based placement and recruiting businesses,
as well as the white-collar temporary staffing business in Australia and New Zealand, whilein other businesses, we will strengthen the facility management business, which is not
only capital efficient but also highly profitable. The second pillar is structural reform andcost optimization. We are proceeding with cost cutting through initiatives that include theconsolidation of the head office functions, while seeking to improve efficiency by moving
functions and operations offshore. The third pillar is to improve productivity through DX
investments, including the development of AI matching, or the utilization of automation andprocess improvement tools that will enable higher productivity.
Through these initiatives we aim to become the No.1 HR service company in both scale andprofitability in the APAC region.

is expected to overtake the domestic
Japanese market by 2030.

Results for Fiscal Year Ended March 2023

Net Sales(Billions of yen)

Although sales in China were affected by the country’s COVID-19 policies, the SBU
enjoyed steady demand in other regions where it operates.
Given the recovery from the impact of the COVID-19 pandemic and the effect ofOperating Profit

367.7(Billions of yen)
2.5

290.1
1.0

251.4

foreign exchange rates, net sales were 367,779 million yen (up 26.8% year on year).

-2.2

Operating profit also increased to 2,517 million yen (up 141.5%), reﬂecting the stronger sales.

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R&D FUR&D FU
Examples R&D Function Unit initiatives

While attempting to achieve
breakthroughs that overturnconventional wisdom and thenorm, we will create better work
opportunities with new methods in
new fields.

Drit, a New Business Development ProgramThis program is aimed at enabling every employee across the Group to develop
their thoughts and passions into businesses. Ideas are discovered and refined andbusinesses are examined with the participation of experts in new businesses and the

Executive Officer, R&D Function Unit Lead

Toshihito Nagai
The R&D Function Unit aims to explore and create businesses related to “Career Well-

managers of these businesses. To date, more than 700 proposals have been made, 14
have been developed into businesses, and eight have entered the investment phase.
Sales from the services created through Drit have exceeded 5.0 billion yen, and morethan 500 people have been employed in relation to the services (as of March 2023).

being” by applying new methods that differ from the PERSOL Group's existing services
under the PERSOL Group Mid-term Management Plan 2026.
In anticipation of changes in employment structure and greater employment mobility,
which will result from changes in work styles and work consciousness, we are working
to develop and provide new services that will enable people to overcome differences,such as differences in the type of employment and work patterns, and disparities
between cities and regional areas. For example, MIIDAS, a new form of career change andrecruitment support service, has been introduced to 430,000 companies, the majority

Open Innovationof which are regional companies and small- and medium-sized enterprises, while the

We are exploring possibilities of innovation with various partner companies to create

Sharefull app for finding part-time jobs for working during in-between times has been

new social value. We have formed business tie-ups with and invested in companies

downloaded by 2.6 million people (as of March 2023).

which share interests and aspirations with us and have accepted these companies as

In addition to the external labor market, such as job change and recruitment, we are

new Group companies. In the fiscal year ended March 2023, we invested in Meetscare,also involved in the internal labor market, i.e., services that support “living your own life”

which connects caregivers with nursing care businesses, VOICE-ORE, a VTuber voice

by expanding the options and possibilities for each individual working for a company or

actor agency business, CYDAS, which provides a talent management system, andorganization. For example, our SaaS solution for non-desk workers, “POS+,” supports

other businesses.

workers in industries such as food and beverage, retail, and beauty and hairdressing
through store DX so that they can focus on hospitality. In addition, we are developing
services that accompany individual workers in their learning and corporate humancapital investment so that they can adapt to the changing times. In the search for andcreation of new services, we place importance on utilizing the group's assets. We hopeto accelerate the growth of the entire group by creating new businesses through intragroup collaboration, including the grasp of cutting-edge technologies and global trends
through CVC, information specific to the human resources industry and proprietary
primary information from think tanks, and diverse customer contacts and on-site primary
information from the 135 group companies.

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Foundation for Value Creation
Corporate Governance
Active Roles of Diverse Human Resources

40

Strengthening Data Governance

44

Respect for Human Rights

45

Responding to Climate Change

46

Corporate Governance:
Basic Policy and History of Strengthening

48

Message from the Chairperson of the Board

49

Corporate Governance Structure

50

Interview with Independent Directors

53

Directors and Executive Officers

56

Director and Officer Compensationand Succession Plan

58

Evaluation of Effectiveness of the Board

60

Risk Management

62

Information Security

65

Crisis Management

66

Compliance67

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Active Roles of Diverse Human Resources

Active Roles of Diverse Human Resources
Leader Development to Increase Engagement
The PERSOL Group implements a diverse array of leader development programs.

Mirai Shijuku and Mirai Gijuku

Team Performance Program

To produce business leaders over the mid to long term, we provide training for selected

We provide action learning training aimed at reinforcing relationships in a team and thus

managerial employees. Mirai Shijuku provides learning support under a wide range of themes,

bringing out the autonomy that is intrinsic to the team. Employees participate in this training

with a focus on liberal arts, targeting candidates for the next-generation Group Seniorin teams and start by determining an action plan for creating the future of each team. This

Executives. It provides training on thinking beyond one’s viewpoint, view, or perspective tois followed by a three-month period for practical training, when an internal organizational

develop trainees into human resources who can manage the Group. Mirai Gijuku operates

development facilitator supports managers’ practices. Specifically, support is given intraining programs for managerial employees, from section managers to department heads.

participants’ self-reﬂection and development of their questioning ability through four

They include a program for learning key points in management for improving organizational

manager sessions and assessments. Participants gave such comments as “(The training)

engagement and one for learning leadership for solving social issues.

led to the reinforcement of relationships in the team” and “I have acquired the ability
to approach management based on the members’ characteristics.” We aim to have all
managers to complete this training by 2030, thus supporting them in creating organizations
in which learning can be done in teams.

Group-Wide Leader Development ProgramCxO
SBU Lead
Executive Coaching

Executive
Officer
GeneralManager

Mirai Shijuku

Department
manager

Mirai Gijuku
Second Level(department
manager)

Newly Appointed Manager Training
We operate a one-year joint training program for newly appointed managers at eachcompany, crossing the boundaries between companies. Immediately after the appointment,

DI&E
management
training

we provide new managers with startup training, in which they acquire the knowledge, skills,
Mirai Gijuku
First Level(section manager)

and ways of thinking needed for daily management operations. Six months later, we provide
follow-up training to review the current status and verbalize what sort of managers they aim
to be. And one year after the appointment, we provide training needed for subordinates’
career design and step-up training for reviewing one’ behaviors through a 360-degree

Section manager

Team Performance Program

Newly appointed
manager training

survey, thus helping them to play active roles as the Group’s managers.

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Active Roles of Diverse Human Resources

Active Roles of Diverse Human Resources
Initiatives to Increase Employees’ Career Ownership
We attach great importance to employees’ career ownership,
as set forth in the Group Vision that states “we need to make our own choices from a range of diversified work opportunities.”
We take diverse measures to encourage employees to build careers on their own and help them take actions voluntarily and proactively.

Smyle, a Career Design Training Program@ (atto) Training

Smyle is a training program aimed at having employees think about their own career design.

The @Training stands for Adventure Training (AT) program and also means training that

Employees look back on their life (career) in the workshop and verbalize what they will do,brings about personal change going forward and astonishes (atto iwaseru in Japanese)

what they can do, and what they must do. Support is provided to them so that they can work

the world. With two courses to choose from -- a workshop course and the cross-boundary

actively with future prospects. A cumulative total of around 1,200 employees have participatedlearning course -- @Training offers unique advanced programs, including a half-day

in this program which was launched in 2018. It has become one of the leading measures within

workshop, in which trainees review what/how they want to be through extraordinary

the PERSOL Group. For employees in managerial positions, we have included content createdexperiences, as well as activities to solve local issues, collaborations with social ventures,

based on this program in the training for newly appointed managers, thus providing themand industry-academia coordination. Based on the experience of solving social issues, wewith opportunities to learn what stance to take and what methods to apply in facing theirdevelop employees’ career ownership by inviting them to reﬂect on themselves and engaging

subordinates’ career design, so as to give support related to their career ownership.

in dialogue with them, through experience and perspectives that are unlike anything theyexperience in everyday life. In 2022, 143 employees participated in the training program.

Concept of Career Design Support
Career design support means recognizing what your subordinates will do,what they can do and what they must do.
They will be more satisfied as there is more intersection (i.e., more connection to missions)
between what they will do, what they can do, and what they must do in work and life.

Career Challenge Program/Job Trial Program
The Career Challenge program of open recruitment for job transfers within the Group is usedwidely as an opportunity for employees to try jobs in which they are interested. A cumulative
total of about 1,100 employees have applied to this program, which was launched in 2017.
In 2022, 97 employees were transferred within the Group. The Job Trial program permits

Expectations What you are required to do

MUSTInterests What you are interested in

WILL

ValuesWhat you value

Desires

What you want to do

CAN

employees to spend part of their working hours experiencing different jobs at different divisions

DutiesWhat you have to dowithin the Group, with an upper limit of eight hours per month for a period of up to three

Role

What you think you should domonths. In 2022, 291 employees joined the program.

Resources

What you can doand your abilities

Systems and Programs
that Encourage Employees to Work Autonomously
At the PERSOL Group, we are building an environment that will permit each employee to selecttheir place of work and work style on their own. Under the side-job system, which leads toemployee self-actualization and social contribution, we approved 1,010 requests for side jobs

Connection to missions

A state where the things that you have to do are aligned with thethings that you want to do and the things that you can do.

during 2022. In addition, approx. 90% of Group companies have introduced ﬂextime. We haveintroduced various other work style options, such as telework and effectively no dress code, in
our efforts to improve employee engagement.

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Active Roles of Diverse Human Resources

Active Roles of Diverse Human Resources
Diversity, Inclusion & Equality
To ensure circumstances where diverse human resources are able to pursue successful careers,
the PERSOL Group promotes diversity, inclusion & equality (DI&E).

Initiatives to Increase the Percentage of People in Managerial Positions that are Women
We are carrying out initiatives to achieve our target of 37% in 2030,* believing that including

initiatives. During 2022, 15 discussion meetings were held with a total of 30 participants. The

women’s perspectives in management and important decision-making and achieving a higher

subcommittee will continue its efforts to involve all members of management in at least one

percentage of women in managerial positions will help reduce the gender wage gap andtalk. The subcommittee focused on the theme of providing employees with opportunities plans

encourage men’s participation in domestic work and community activities. In 2021, the Genderand provides training to supervisors responsible for employee training and young employees

Diversity Committee was established to develop a management structure. A system was thenwho are future candidates for managerial positions. In 2021, the subcommittee provided

constructed for a clear understanding of the issues involving in increasing the percentage

training to about 2,300 employees, accounting for 90% of all people in managerial positionsof people in managerial positions that are women, including to the start of monitoring thein the Group and including directors. The training is designed to support employee’s abilities

percentage of people appointed to managerial positions and the number of candidates for theseand career development and share views on the purpose of promoting DI&E within the Grouppositions that are women. As a result of these initiatives, the percentage of people in management

together with a vision for the future. The training continues

positions that are women has grown favorably over the last several years, as shown below.

to be provided to all managers every year starting 2022.

The Gender Diversity Committee formed four subcommittees for the implementation of

The training program for young employees provides themmeasures across the PERSOL Group. The subcommittee focused on the theme of reformingwith an opportunity to think about their careers as early as

the awareness of management and started a discussion meeting for management andin their 20s. It informs them that managerial positions are

women in managerial positions to enable management to be more aware of the promotion ofamong their career choices.
* The percentage of people in career positions in theGroup companies that are women is taken into accountwhen targets are decided.

Trend of percentage of women in managerial positions
at oﬃces of the PERSOL Group across Japan(%)

ResultTargetInitiatives for Increasing the Percentage
of Eligible Men Taking Childcare Leave

40

30

22.1

20.6

20

18.4

18.6

19.4

A discussion meeting involving directors, generalmanagers, and women in managerial positions

20.4

21.9

22.6

24.4

26.7

28.7

30.8

addition to the target percentage of people in managerial positions that are women. This isbecause we believe that women’s participation in the working world is promoted through

23.8

21.5

We set a target for the percentage of eligible men taking childcare leave in 2023 in

the inclusion of diverse perspectives obtained through social and community activities
as well as from the workplace in management and important decision-making and men’s

10

involvement in domestic work, eventually leading to a higher percentage of people inmanagerial positions being women. First aiming to get all eligible male employees to takeat least one day off as childcare leave, we will try to understand the situation and create an0
1st half of2020/3End of2020/3

1st half of
2021/3End of
2021/3

1st half of2022/3End of
2022/3

1st half of2023/32023/3
result2024/3target2025/3target2026/3targetenvironment that encourages more men to take at least one month of leave in the future.

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Active Roles of Diverse Human Resources

Active Roles of Diverse Human Resources
Diversity, Inclusion & Equality

Bottom-up initiatives accelerating the promotion of DI&E

Promotion of the Employment of Workers with Disabilities

In addition to the proactive promotion of DI&E by management, we think a bottom-

As well as complying with the legally mandated employment rate, we at the PERSOL

up approach is also needed, in which employees work to address issues and engage

Group have continued striving to provide work and a workplace that enable people within initiatives to promote diversity. Many initiatives are underway across the PERSOL

disabilities to play active roles and realize “Work and Smile.” On April 2023, PERSOLGroup, such as the empowerment of employees that are women, the achievement

CHALLENGE CO., LTD. and PERSOL THANKS CO., LTD., the Group’s affiliated businessesof an optimal balance between work and childcare or medical treatment, thesupporting the employment of people with disabilities, were merged into a new company

promotion of side jobs, and LGBTQ allyship. To enable an optimal balance between

to establish PERSOL DIVERSE CO., LTD. At PERSOL DIVERSE, over 1,600 employees withwork and medical treatment, we regularly hold online events to obtain a deeper

disabilities make the full use of their characteristics to contribute to the improvement of theunderstanding of the mental preparation of the people around a person who

performance of the Group by engaging in job creation in coordination with communities andrequires medical treatment and of how to treat these people in the workplace,diverse businesses within the PERSOL Group. The company offers doda challenge, namely

based on the actual experiences of cancer survivors and people who underwent

career change and employment support services for people with disabilities, featuring thefertility treatment. Many allies volunteer for Tokyo Rainbow Pride (TRP), the largest

largest enrollment in Japan, as well consulting to support the employment of disabled people.

LGBTQ event in Asia, helping with the planning and operation of booth exhibitions.

It also operates the office for employment transition support and promotes neurodiversity.

The PERSOL Group has sponsored TRP for four consecutive years since 2020. This

Through these activities, it supports people with disabilities and employers. PERSOL DIVERSE

kind of support in the field for self-directed action and the seeking out of diverse

will continue to contribute to the development of a sustainable society where all members

points of view has led to Group companies adopting policies for cancer survivors asof society are able to choose a style of work that is suitable for them, expanding thewell as de facto marriages and same-sex civil partnerships.

possibilities of work for people with disabilities and creating a new standard for work.
Offering welfare services classified as Type A Continuous Employment Support, PERSOLNEXTAGE CO., LTD. celebrates its third anniversary since its establishment. The company has
grown to include seven bases for Type A Continuous Employment Support and around 140
employees with disabilities. Thanks to the established employment support structure, some
employees have joined companies outside the PERSOL Group. Employees may work fromhome and they may come to the office. The office has adopted a hot desking system and it
has a 97.1% attendance rate, with an 89.3% rate of working from home. PERSOL NEXTAGE
will continue to move ahead toward a Borderless World for Workers.

Initiatives in the Asia-Pacific Region
The PERSOL Group is promoting DI&E activities in the APAC region as well. As part ofthese activities, Programmed operates a scholarship system that supports women studying
TRP Pride Festival
The PERSOL Group booth

TRP Pride Parade

electrical engineering or mechanical engineering in close, long-term cooperation with
the University of Tasmania (UTAS). Programmed recognizes that there is a gender gap inscience, technology, engineering and mathematics (STEM) and aims to close that gap.

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Strengthening Data Governance

Strengthening Data Governance
As a group of comprehensive human resource services companies, the PERSOL Group is working to strengthen data governance,with a focus on privacy governance, so that its stakeholders can feel secure entrusting their Personal Data* to the Group.
* “Personal Data” is not limited to “Personal Information” as defined by the Personal Information Protection Law in Japan, but also includes
attribute information and all related information regarding individuals, such as movement, behavior and purchase history.

Basic Policy on the Use of Personal Data

Privacy Governance System

At the PERSOL Group, we are committed to creating new value through the appropriate

The PERSOL Group has established the Group Privacy Governance Council to ensure theand effective use of Personal Data entrusted to us by our stakeholders, for the benefit of ourappropriate Group-wide management of the Privacy Risk involved in the use of Personalcustomers, business partners, employees, shareholders, and other stakeholders, as well as for theData. This Council meets once a month, in principle, and the Chief Strategy Officer (CSO)

sound development of society through activities such as the creation of better job opportunities.

who is in charge of the Group’s strategies on the use of Personal Data, the Group’s Chief

On the other hand, as information technology has advanced rapidly in recent years, the use

Privacy Officer (CPO), the Group’s Chief Information Officer and Chief Digital Officer

of Personal Data has become more sophisticated and complex. As a result, the risk of personal(CIO/CDO), and the Privacy Officer of each SBU and FU participate in the meetings.

privacy issues (including human rights violations such as discrimination) occurring individually or

The Council formulates policies and rules regarding the protection of privacy within the

publicly (hereinafter “Privacy Risk”) has grown greater than ever.

PERSOL Group, makes decisions on policies on the handling of important Privacy Risk

To handle this Privacy Risk, the PERSOL Group has built a privacy governance system anda privacy review process. We also implement a range of other initiatives to ensure that our
stakeholders feel secure when we obtain or use their personal data. In March 2023, we announced
the personal data processing policy, our basic policy on privacy, and on the corporate site of thePERSOL Group we opened the Privacy Center, where we share the initiatives of the Group. In
addition, Group companies clearly explain the purposes of use of Personal Data in an easy-tounderstand manner on the privacy policy page or other pages of their websites.

Our Privacy Center and personal data processing policy areavailable on our website (only available in Japanese).
https://www.persol-group.co.jp/privacy/

matters, and implements other initiatives to strengthen the Group’s privacy governance.
Group (PERSOL HOLDINGS)

SBU/FUGroup Privacy Governance Council
CSO*1
The Group’s Chief
Information Officer
and Chief Digital
Officer (CIO/CDO)

Chief Privacy
Officer (CPO)

Advisor(External Legal Counsel)

Group companies

SBU/FU Lead

President of each company

Appoint
Participate

Privacy Officer of
each SBU/FU

Core companies

Appoint

ReportReportPersonal information
protection manager

Privacy Officer of each
SBU/FU

Build/supporta systemPrivacy review:
Specialized departments Assess*2
Legal affairs Information
security

Business/department
handling personal dataat each company* 1 Offi cer in charge of strategies regarding the Group’s use of Personal Data
*2 The assessment status is shared with the Group Privacy Governance Council via the Privacy Offi cer of the SBU/FU.

Establishment and Operation of the Privacy Review Process
The PERSOL Group has established a system under which the impact of new services
or new measures involving the use of Personal Data on privacy is assessed in advance(privacy review process). During this process, departments specialized in legal affairs,
information security and other areas conduct analyses from various perspectives
to determine whether the use of Personal Data will negatively impact stakeholders,
whether the predictability of the use of the Personal Data is secured, and other matters.
They examine the feasibility of the services or measures and consider privacy protection
measures to meet and exceed the trust and expectations from society at large.

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Respect for Human Rights

Respect for Human Rights
We understand that respect for human rights is of unwavering importance as the foundation for realizing the PERSOL Group Vision,“Work and Smile.” We are advancing initiatives regarding respect for human rights in order to create a world in which all people,
without suffering discrimination, can make choices based on their free will from a range of diversified work opportunities
and work in a comfortable environment while realizing a richer and happier life.

Our Commitment to Human Rights

Future Initiatives -FY2023 Initiatives-

In December 2022, we established the PERSOL Group Human Rights Policy (“the Human

In FY2023, we have conducted human rights due diligence mainly on employees andRights Policy”) with the approval of the Board of Directors and announced our commitment totemporary staff in selected business domains on the four human rights risks listed in “Policies

fulfilling our responsibilities to respect human rights, both internally and externally. In addition,

for addressing recognized risks” in the figure below.

under the PERSOL Group Code of Conduct, all officers and employees of the Group have been

We will enhance the effectiveness of our human rights initiatives efficiently and smoothly

requested to respect the rights of individuals based on the fundamental idea of respecting humanby leveraging the existing mechanisms, which can serve as the foundation for identifying

rights. To ensure that the human rights of all people concerned with the PERSOL Group’s businessand assessing human rights risks. We have begun to conduct human rights due diligence on

activities are respected, we are working to develop and operate an internal framework for

employees by using information about consultations related to harassment sought by thepromoting related initiatives and enable our business partners to understand the PERSOL Group’s

employees and various surveys and questionnaires of employees, and on temporary staff by

policy, encouraging them to implement initiatives together with us.

using information about consultations related to harassment sought by them, which is collectedfrom multiple sources.

Initiatives Implemented in FY2022

We have started to implement initiatives regarding the violation of privacy as a part of the

In FY2022, while establishing the Human Rights Policy, we recognized risks related to human rights
in line with international norms. In addition to risks that are already known, we recognized various
human rights risks, including potential risks, and we selected the seven human rights risks listed in
the “Recognized risks” column in the figure below as the human rights risks that we should address

measures for “Strengthening data governance” and initiatives regarding gender inequality as apart of the measures for “Active roles of diverse personnel”.
We also plan to implement human rights-related training to Group employees in addition to
the above initiatives.

from among the Human Rights Issues of the PERSOL Group set out in the Human Rights Policy.
Based on the nature of the PERSOL Group’s business, we regard not only the employees of theGroup but also the individual customers who use our services as our greatest stakeholders, and we

Our human rights-related initiatives are also available on our website.
https://www.persol-group.co.jp/en/sustainability/social/humanrights/

have given priority to addressing human rights risks to these people first.

Risk Category

Known Risks
Human rights risks which were recognizedin past business activities

Potential Risks
Potential human rights risks which are
deemed to exist in business activities due tothe nature of the business, the situation in the
country or region, etc.

Recognition of human rights risks
Recognition Method
Human rights risks were recognized throughinterviews and check sheets with the SBUs.
Potential human rights risks were recognized byanalyzing qualitative information from research
reports and other documents by U.N. agencies,
NGO and NPOs, about the status of human rights
in countries and regions and human rights issues
specific to business domains.

Policies for addressing recognized risks

Recognized Risks
Harassment (various types of harassment or discrimination)
Violation of privacy
Occupational health and safety
Forced labor(Migrant workers: technical interntrainees in Japan and others)

Gender inequality

Infringement on the rights ofpeople with disabilities

Infringement on therights of LGBTQ+ people

Risks about which we have begun to conduct human rights due diligence in
FY2023 by incorporating additional measures into existing initiatives
1

Harassment / 2 Occupational health and safety / 3 Forced labor /4 Infringement on the rights of people with disabilities

Risks for which we will consider policies for future action after
understanding the current situation
5

Infringement on the rights of LGBTQ+ people
Risks that we position and address as other issues of materiality

6 Violation of privacy / 7 Gender inequality

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Foundation for Value Creation

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Corporate Profile

46

Responding to Climate Change

Responding to Climate Change
Environmental Initiatives
The PERSOL Group contributes to the realization of a sustainable society in which all

Group, we reduce greenhouse gas emissions and drive initiatives to reduce and control

people truly feel “Work and Smile.” To achieve this, we recognize addressing climate

energy consumption and ensure efficient, sustainable use of energy. Further, we willchange and conserving the environment is one of our management issues, and we are

strive to provide services that will help mitigate and adapt to climate change, aiming topursuing a range of initiatives in these areas.

contribute to achieving international targets including the SDGs and those under the

Climate change is an unavoidable issue in present-day society, affecting the lives

Paris Agreement (including the 2-degree target).

of people across the world and the businesses of the PERSOL Group. At the PERSOL

Disclosure in Line with TCFD Recommendations
In May 2022, the PERSOL Group began disclosing information about its climaterelated risks and opportunities based on the four themes of governance, strategy, risk
management, and metrics and targets, following the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD). Please see our website for the resultsof scenario analysis, details of the PERSOL Group’s business activities, and details of theintegration of climate change-related risks into the comprehensive risk management of
the overall Group.

Governance

Strategy

To build a sustainable society in which all people truly feel “Work and Smile,” we have

To gain a concrete understanding of the business impacts of climate change and climate

reinforced our structure for promoting sustainability, including the mitigation of climatechange-related risks and opportunities, we have conducted an analysis by using thechange, with the establishment of the Sustainability Committee and supervision by the

4°C scenario (a world with more frequent and severe natural disasters due to climate

Board of Directors.

change) and the 1.5-2°C scenario (a world with rapid rates of decarbonization) publishedby external organizations such as the International Energy Agency (IEA) and the

Risk Management
Information about climate change-related risks in businesses identified by the
Sustainability Committee is shared with the Risk Management Committee. Further,
the Risk Management Committee considers measures to address related risks, andthe Sustainability Committee deliberates on them, thus identifying and addressing theimpacts of climate change-related risks on our businesses.

Intergovernmental Panel on Climate Change (IPCC) as benchmarks.
In addition, at the PERSOL Group, we will regard climate change-related risks andopportunities identified through the analysis as business opportunities and operate
multiple business activities such as the development of human resources with expertise,contributing to decarbonization and climate change measures, the provision oftalent mobility support services including placement and temporary staffing, and theestablishment of a Job Creation Fund.

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47

Responding to Climate Change

Responding to Climate ChangeGroup Companies’ Actions on Climate Change

Emissions Results
At the PERSOL Group, we calculate our greenhouse gas emissions. In addition, to ensure
the accuracy and reliability of values for emissions we have calculated, we received
third-party verification from SOCOTEC Certification Japan for the values for ourgreenhouse gas emissions in the fiscal year ended March 2023.

Introduction of Renewable Energy
At the PERSOL Group, we have begun introducing renewable energy to reduce CO2
emissions from power generation as a measure to achieve carbon neutrality by 2030.
Aiming to increase the ratio of renewable energy electricity to virtually 100% of all theGreenhouse gas emissions
Item
Scope 1
Of above, “Programmed”
Market-based emissions
Scope 2
Location-based emissions
Category 1: Purchased Goods and Services
Category 3: Fuel- and Energy-related Activities not Included in Scope 1 or Scope 2
Category 4: Upstream Transportation and Distribution
Category 5: Waste Generated in Operations
Scope 3 Category 6: Business Travel
Category 7: Employee Commuting
Category 9: Downstream Transportation and Distribution
Category 11: Use of Sold Products
Category 12: End-of-life Treatment of Sold Products(Unit: tons CO 2)

power we consume, we are switching to renewable energy plans offered by electric power

2023/3 total
16 , 6 1 7
13,94313,093
13,782
288,657
4,758
3,292
3,038
1,575
8,408
35
17,43030

companies, one by one, to have our office buildings powered by renewable energy. As of* The figures for Scope 1, Scope 2 and Scope 3 Category 3 emissions were calculated based on data from the main bases of PERSOLHOLDINGS and its consolidated subsidiaries in Japan, as well as the main bases of major overseas consolidated subsidiaries.
The figures for Scope 3 (excluding Category 3) emissions were calculated based on data from the main bases of the company andits consolidated subsidiaries in Japan.

Reduction Targets

the fiscal year ended March 2023, renewable energy has been introduced at 12 bases with
consumption of 2,730MWh as compared to the overall power consumption of 28,776MWh.
Further, we are concurrently advancing virtual conversion to electricity from renewableenergy sources by purchasing non-fossil certificates as a supplementary means.

Other Examples
PERSOL Group companies are taking action on climate change by taking advantage of thecharacteristics of each. They include the temporary staffing of “GX Engineers*” and engine
testing with carbon-neutral fuel.
For details, please see our website.
* GX Engineers are defined by PERSOL CROSS TECHNOLOGY as engineers possessing skills that enable them to support thepromotion of GX by companies.

achieving net zero greenhouse gas emissions* associated with business activities, by theEnvironmental Initiatives
Other than Those Related to Climate Change

fiscal year ending March 2031.

At the PERSOL Group, we will drive environmental initiatives other than actions on

At the PERSOL Group, we have set the target of becoming carbon neutral, in other words,

In the process of achieving the Group Vision, we will make concerted efforts by

climate change, aiming to build a sustainable society. For details, please see our website.

positioning climate change initiatives as one of the eight issues of materiality to address
under the Mid-term Management Plan 2026 towards 2030.
* Greenhouse gas emissions associated with business activities is the combined total of Scope 1 emissions and Scope 2 emissions.

Emissions in the baseyear (2022/3)

2026/3 targets

2031/3 targets

Percent reduction ofscope 1 + scope 2 emissions

25,698 t-CO 2-17.3%-83.0%*

Percent reduction ofscope 3 emissions(9,645 t-CO 2)

Details of our environmental initiatives are available on our website.
https://www.persol-group.co.jp/en/sustainability/environment/(Under consideration)* To achieve a reduction rate of 100%, we will offset residual emissions with internationally recognized methods.

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Corporate Profile48

Corporate Governance: Basic Policy and History of Strengthening

Corporate Governance: Basic Policy and History of Strengthening
Basic Policy on Corporate GovernancePrinciples
At the PERSOL Group, we base the corporate strategies of the entire Group on thebasic management policy, which aims at achieving our corporate philosophy: Providing
Opportunity, Individual Growth and Social Contribution. Group companies work as one indriving the strategies to achieve a mid- to long-term increase of corporate value throughsustainable corporate growth and to address social issues through business activities.
Moreover, at the PERSOL Group, we make ongoing efforts to enhance our corporate
governance based on our understanding that good corporate governance is thefoundation for all efforts to realize the above-mentioned corporate philosophy.
The Corporate Governance Guideline lays out the principles and desirable state of

1 Securing the Rights andEquality of Shareholders

The PERSOL Group shall pay careful attention to equal treatment ofshareholders by appropriately implementing matters so that shareholders
can exercise their rights effectively.

2 Appropriate Cooperation
with Stakeholders Other
Than Shareholders

The PERSOL Group establishes “Group Vision” to set its fundamental stanceto conduct its business, as well as the Code of Conduct as the criteria forjudgment and behaviors of all directors and employees, and endeavors toappropriately cooperate with each stakeholder in conducting its business.

3 Securing Appropriate
Disclosure of Information
and Transparency

The PERSOL Group appropriately discloses its financial information suchas financial standing and operating results, corporate strategies, and risk
management, and ensures transparency of information disclosure. ThePERSOL Group strictly manages undisclosed critical information which may
have impacts on investment decisions.

4 Obligations of the Board

The Board is responsible for the oversight of management, sets the basic
management policy, oversees the Group Senior Executives, and secures theconstruction and operation of appropriate internal control systems.

5 Dialogues with Shareholders

The PERSOL Group shall, through dialogues with shareholders, obtain
their understanding of its corporate strategies, and endeavor to takeappropriate measures based on the understanding of the standpoint ofshareholders. The Board shall establish and disclose policies concerning
the measures and organizational structures aimed at promoting
constructive dialogues with shareholders.

corporate governance of the PERSOL Group and serves as the Guideline for the directors
and the Group Senior Executives (collectively referring to the Representative Director,
President and CEO, executive directors and executive officers, who are responsible for the
management of the PERSOL Group) towards the realization thereof. We will take actions
in line with the Guideline and revise it as necessary in response to changes in the times
and circumstances and consistently strive for better corporate governance.

Details of the Corporate Governance Guideline are available on our website.
https://www.persol-group.co.jp/en/corporate/governance/corporate_governance/

History of Strengthening Corporate Governance
2015

2016

Advisory committee
Strengtheningof the oversightfunction2017

Independent Directors)

2019

2020

Established the Corporate Governance Guideline

Established the Nomination and Compensation Committee
Appointed a female
director

Nomination of
directors
Directors (of which,2018

Shifted to a Company with the Supervisory
Committee

Oversight function

6 (1)

10 (4)

Appointed a nonJapanese director

10 (4)

11 (5)

11 (5)

9 (5)

9 (5)

9 (5)

9 (6)

Began effectiveness evaluation of the Board
Formulated the Policy for Constructive Dialogue with Shareholders and Investors
Introduced a share-based compensation
scheme for senior executives

Compensation system

Revised the director
and executive
compensation system

Revised the director
and executive
compensation system

Revised the director
and executive
compensation system

Introduced an
executive officer
system

Acceleration ofmanagement
decision-making

Ratio of female directors

2023

Established the Corporate Governance Committee

Established the Independence Criteria forExternal Directors

Dialogues withshareholders

Execution system

2022

Appointed a Board whose majority is Independent Directors

Eﬀectiveness evaluation

Separation of
execution andoversight

2021

Separated between Chairperson of the Board and CEO
Established the Lead Independent Director

Delegated decision-making about business to the CEO
Established the HMC*1 and internal committees
Shifted to the SBU structure*2

17%

0%

0%

9%

9%

11%

11%

Established the Sustainability Committee

11%

22%

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Message from the Chairperson of the Board

Message from the Chairperson of the Board
By further advancing our corporate governance,
we aim to address the issues identified through ourmateriality analysis, enhance our corporate value,
Director and Chairperson
and pursue our goal of achieving a sustainable
Masamichi
Mizutasociety where we can all “Work and Smile.”
At the PERSOL Group, we are guided by our corporate

questioning ideas from multiple perspectives and sincerely

the Board.” This evaluation aimed to review our activities

philosophy of “Providing Opportunity, Individual Growth,

confronting inconvenient facts further strengthens theand promote continuous improvement for the future. The

and Social Contribution.” As a “‘Career Well-being’

oversight function of the Board.

evaluation yielded a favorable outcome, acknowledging

The second is to promote a healthy cycle of renewal. As

that “the Board’s effectiveness has consistently improved.

possibilities and create one million better working

times change, companies are not only required to transform

This is attributed to the framework for monitoring business

opportunities by 2030, thereby achieving our Group

their business portfolios but also the skills that individuals

operations and the diligent efforts made by both the

Vision of “Work and Smile.” We recognize the creation ofin the workforce need. In order to effectively respond tooversight and execution functions.”

working opportunities as the most critical material issue

these changes, the Board should create an environmentthat demands our attention.To address this issue and fulfill

that allows the management team to fully commit todemands ongoing dedication and we should never be

our vision, corporate governance plays a crucial role asbusiness reform and encourages decisive decision-making.

content with the status quo. Especially in recent years,

the management foundation for sustaining the long-term

To achieve this, the Board must continually maintain diverse

the pace of change surrounding the concept of “work”

enhancement of our corporate value.

perspectives that are responsive to change.

has accelerated even further due to the global spread of

Creation Company,” our objective is to expand human

There are two points of corporate governance on which I

The Board continued to have active discussions

Enhancing the effectiveness of the Board, however,

COVID-19. This includes shifts in “ways of working,” suchthroughout the fiscal year ended March 2023. Drawing

as job transitions, the job-description model, and the

The first is to always maintain a mindset of questioning

from the proposals presented by the management team,

expanding gig community. It is essential that the Board

whether internal norms may be considered unconventional

we deliberated on the social issues that must be addressedtakes a proactive approach to discuss and address thein society. Decision-making that is solely driven by internal

in order to realize our Group Vision. Considering both the

implications of rapid advancements in generative AI on the

logic can sometimes diverge from social norms and be

viewpoints of “solving social issues through our business”

nature of our “work.” The Board holds a vital responsibility

rejected by our customers and other stakeholders. To

and the “foundation for achieving sustainable growth,”

to remain vigilant towards these changes and approachaccurately understand global trends and changes and

we identified the PERSOL Group’s material issues. Afterthem with a forward-thinking mindset.

incorporate them into our corporate activities, it is essential

extensive discussions, we formulated our “Mid-term

to foster open and constructive discussions within theManagement Plan 2026” as a plan for the coming three

to address the issues identified through our materiality

Board. Our Board, comprised of a majority of independentyears in the Value Creation Story for 2030.

analysis, enhance our corporate value, and pursue our goalplace particular emphasis.

directors with diverse backgrounds, ensures that we donot become an inward-looking organization. Consistently

In fiscal year 2023, we enlisted the services of an external
evaluation organization to assess the “Effectiveness of

By further advancing our corporate governance, we aimof achieving a sustainable society where we can all “Workand Smile.”PERSOL Group Integrated Report 2023

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Strategies for Value Creation50

Corporate Governance Structure

Corporate Governance Structure
Corporate Governance Structure and Features
Based on the corporate governance principles, the PERSOL Group has adopted the

The chairperson of the Board is a non-executive director.

form of organizational structure of “Company with Supervisory Committee” under the

The Board is composed of a majority of Independent Directors.

Japanese Companies Act. Furthermore, for the purpose of complementing the function

In addition to the statutory Supervisory Committee, the Nomination and Compensationof the Board, the Group has established the Nomination and Compensation Committee

Committee and the Corporate Governance Committee have been established as voluntary

and the Corporate Governance Committee as voluntary committees, both chaired bycommittees. Both of those committees are composed of a majority of Independent

Independent Directors, to increase transparency and objectivity concerning decisions on
the nomination and compensation of the directors and the Group Senior Executives. In

Directors, and Independent Directors serve as chairpersons.

addition, Independent Directors constitute the majority of members at each.

The position of Lead Independent Director has been established.

Corporate Governance Structure in the Fiscal Year Ending March 2024
3 Nomination and Compensation Committee

Ratio ofNon-executive Directors 8/9
Ratio of
6/9
Independent Directors

1/2 or above
1/2 or above
1

Directors who are not Supervisory
Committee Members

Advisory

4 Corporate Governance Committee

Appointment andDismissal
The Board

Appointment andDismissal

Appointment andDismissal

2 Supervisory Committee
Audit

ReportDirectors who are Supervisory
Committee Members

ReportReportChairperson

General Meeting of Shareholders

Chairperson

Appointment and Dismissal
Delegation of the Decisions on the Executionof Important Operations

Audit

Audit

Approval/
Coordination

ReportExternal Auditor

Chairperson

PresidentInternalCEO
Director
Independent
Director

Accounting
Audit

CEO

SBUs leadCorporate Functions lead

Staffing SBUCSOBPO SBU

CFO

Technology SBU
Career SBU
Asia Pacific SBU

5Headquarters Management Committee

Internal Audit Division

Sustainability Committee
Investment Committee
Risk Management Committee

CHRO
CIO/CDO

Technology Committee
Human Resources Committee
Gender Diversity Committee

R&D FU

Staff Well-being Committee
As of June 20, 2023

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Corporate Governance Structure

Corporate Governance Structure
1

2

The Board

The Board is responsible for the oversight of management and its main roles and responsibilities
are to set the basic management policy, oversee the Group Senior Executives, and ensure theconstruction and operation of appropriate internal control systems.
For the purpose of enabling management to make timely, ﬂexible and decisive decisions,management decisions other than those reserved for the Board by the Companies Act shall bedelegated, in principle, to the CEO. Provided, however, that the decisions on the execution ofimportant operations set forth in the Regulations for the Board shall be made by the Board.
Overview (Fiscal year ended March 2023)
Chairperson

Members
Number ofmeetings held

Masamichi Mizuta(Non-executive director,
Chairperson of the Board)
9 (including 5 Independent Directors)

13

Major agenda items discussed in the fiscal
year ended March 2023
Monitoring of the progress of the Mid-termManagement Plan 2023
Formulation of the Mid-term Management Plan 2026
Direction of the business portfolio
Direction of capital policies, including shareholder
returns
Initiatives and KPIs related to issues of materiality(including the handling of business-related
human rights risks)

Status of operation
The fiscal year ended March 2023 was the final fiscal year of the Mid-term Management Plan 2023. Accordingly,
the Board checked progress toward the accomplishment of the plan on a quarterly basis. Further, informulating the Mid-term Management Plan 2026 as the management plan for the coming three years, theBoard discussed the direction of the mid- to long-term strategies and the company-wide strategies multiple
times, involving executive officers. During the discussions, independent directors expressed their opinions
about matters to focus on under the Mid-term Management Plan 2026, among other matters. It was throughthese discussions that the Mid-term Management Plan 2026 was finally formulated.
In the fiscal year ended March 2023, meetings were held in an efficient manner to secure sufficient time fordeliberating on important agenda items that the Board should discuss preferentially, such as by simplifying
explanations about individual business strategies and descriptions of agenda items aimed at sharing facts, which were
given at the meeting venue, while enhancing explanations given to individual independent directors. As a result, while
the total amount of time spent on Board meetings in the fiscal year ended March 2023 was almost the same as in theprevious fiscal year, at approx. 2,400 minutes, the amount of time spent discussing mid- to long-term strategies andthe company-wide strategies increased significantly, from approx. 300 minutes in the fiscal year ended March 2022
to approx. 1,100 minutes in the following fiscal year, including approx. 670 minutes appropriated for discussion. With
these and other changes, the meetings were held with a focus on discussion about mid- to long-term issues.

Amount of time spent on explanations and discussion at the Board meetings
Explanation (minutes)
Total for all agendas
2,413

2,393

Mid- to longterm strategies
and companywide strategies

1,088

2023/32022/3

Individual businessstrategies
396

210

300
2022/3

Monitoring of progress of
the Mid-term Management
Plan and important tasks

Discussion (minutes)

2023/32022/31102023/3562022/32023/3

Supervisory Committee

The roles of the Supervisory Committee include securing the soundness of companies toward theincrease of sustainable corporate value, and acting for the common interests of the PERSOL Groupand shareholders. The Supervisory Committee shall perform oversight of the execution of duties
of directors and the preparation of audit reports, decision on details of the agenda concerning
the appointment, dismissal and refusal of reappointment of an external auditor, and decision on
the opinion of the Supervisory Committee concerning the appointment, dismissal, resignation orcompensation of directors (excluding directors who are the Supervisory Committee Members).
Overview (Fiscal year ended March 2023)
Chairperson

Kazuhiko Tomoda(Independent Director)

Members

3 (including 2 Independent
Directors)

Number ofmeetings held

15

Major activities in the fiscal year ended March 2023
Monitoring of administrative punishments, lawsuits, other disputes, non-compliance, information leaks, and others
Confirmation of the status of development and operation of the whistleblowing system associated with theenforcement of the amended Whistleblower Protection Act, response to the amendment of the Employment
Security Act, and the status of development and operation of a framework for controlling insider trading
Attending meetings of the Risk Management Committee, Human Resources Committee, Investment Committee,
and Sustainability Committee as observers and monitoring the meetings
Exchanging opinions about the effectiveness of Group governance with the CEO and the responsible officer
Confirmation of the status of development and operation of cybersecurity system
Identification of cybersecurity risks of the Company and the four major subsidiaries made using an external security
risk scoring service
Confirmation of the status of development of the structure for promoting sustainability, activities of the
Sustainability Committee, and sustainability-related disclosure framework3

Nomination and Compensation Committee

The purposes of the Nomination and Compensation Committee include increasing the transparency
and objectivity of the decisions on candidates for directors and the Group Senior Executives as well as
decisions on compensation while enhancing the managerial and supervisory functions of the Board.
Upon receiving requests from the Board, the Nomination and Compensation Committee submits reports
and recommendations to the Board on the determination of candidates and compensation.
Overview (Fiscal year ended March 2023)
Chairperson

Ryosuke Tamakoshi(Lead Independent Director)

Members

4 (including 3 Independent
Directors)

Number ofmeetings held

10

Major activities in the fiscal year ended March 2023
Determination of the proposed amount of compensation for Board Members (excluding directors who are
Supervisory Committee Members) and submission of a report about the above to the Board
Determination of proposed appointment of Board Members to be submitted for deliberation at the General Meetingof Shareholders and submission of a report on the above to the Board
Discussion on compensation system, evaluation system, and others for building a new executive appointment
system linked with the Mid-term Management Plan 2026 and submission of a report on the above to the Board
Discussion of a CEO succession planPERSOL Group Integrated Report 2023

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Corporate Governance Structure

Corporate Governance Structure
4

Corporate Governance Committee

Overview (Fiscal year ended March 2023)

The purpose of the Corporate Governance Committee is to enhance the supervisory functions of theBoard by discussing matters regarding the Company’s corporate governance. Upon receiving requests
from the Board, the committee submits reports and recommendations to the Board on the basic policy
regarding corporate governance and measures to improve the effectiveness of the Board.

Masaki Yamauchi(Independent Director)

Members

Takao Wada
(Representative Director,
President and CEO)

Members

11 executive offi cers

Number ofmeetings held

21

Sustainability Committee

Overview (Fiscal year ended March 2023)
Chairperson

Chairperson

5 (including 3 Independent
Directors)

Number ofmeetings held

7

The Sustainability Committee deliberates on sustainability by the PERSOL Group andrelated management agenda and promotes sustainability management.

Major activities in the fiscal year ended March 2023

Investment Committee

Determination of the results of an effectiveness evaluation of the Board and the proposed content of thecorporate governance report, for the fiscal year ended March 2022, as well as a proposal on information
to be disclosed in the Notice of Convocation of the 14th Ordinary General Meeting of Shareholders andsubmission of a report on the above to the Board
Discussion about the composition of the Board for June 2023 onward and submission of a proposal on thecomposition to the Board
Discussion about the future framework for selection of independent director candidates
Determination of the proposed outline of the effectiveness evaluation of the Board for the fiscal year ended
March 2023 and submission of a report on the above to the Board

The Investment Committee deliberates on important matters related to the PERSOL Group’s
overall investment and aims to raise the Group’s organizational knowledge in the realm ofinvestment promotion.

5

Headquarters Management Committee(HMC)

The Company adopts the Executive Offi cer system with the purpose of separating oversightand management and clarifying where management responsibility lies. In addition, HMC isestablished to assist the CEO in making decisions on the PERSOL Group’s basic management
policy and important operations. The decisions on the execution of important operations
delegated to the CEO by the Board shall be decided by the CEO on the condition that the
HMC has made an affi rmative resolution. Based on the concept that the members of the HMC(hereinunder, “the HMC members”) shall be the persons who make the signifi cant decisions
on the execution of important operations delegated by the Board and comprehensive roles
as members of the senior management of the Group, a proposal for the nomination of the
HMC members shall be prepared by the CEO from among the executive offi cers, and shall beapproved at the Board upon deliberation at the Nomination and Compensation Committee.
The Company has also established seven committees (Sustainability Committee, Investment
Committee, Risk Management Committee, Technology Committee, Human Resources
Committee, Gender Diversity Committee, and Staff Well-being Committee) under HMC to
improve the eff ectiveness of the Group’s internal control system. Each of the seven committees
is accountable to HMC and is positioned to supplement and strengthen its functions.

Risk Management Committee
The Risk Management Committee deliberates on the overall risk management of the PERSOL Group.

Technology Committee
The Technology Committee deliberates on key issues concerning the PERSOL Group’s
technology strategy and related management resources.

Human Resources Committee
The Human Resources Committee deliberates on the PERSOL Group’s human resources
strategy and succession planning for key talent.

Gender Diversity Committee
The Gender Diversity Committee deliberates on the PERSOL Group’s strategies to promote
the advancement of woamen and related key strategies.

Staﬀ Well-being Committee
The Staff Well-being Committee deliberates on human capital management of the PERSOLGroup’s temporary staff.

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Roundtable Discussion with Independent Directors

Leveraging corporate governance todrive the growth of the PERSOL Group
The PERSOL Group is pursuing various measures to enhance the Board’s effectiveness.
To explore the current state and challenges of corporate governance within the PERSOL Group, as well as our
expectations for the future, we had a roundtable discussion with three of our Independent Directors.

Masaki Yamauchi

Chisa Enomoto

Kazuhiro Yoshizawa

Independent Director

Independent Director

Independent Director

Chairperson of the Corporate GovernanceCommittee
Member of the Nomination andCompensation Committee

Member of the Supervisory Committee

Chairperson of the Nomination andCompensation Committee
Member of the Corporate GovernanceCommittee

Mr. Yamauchi joined Yamato Transport
Co., Ltd. and assumed the role ofRepresentative Director and President.
He also held positions as the Chairpersonof the Board and Representative Director
and President at Yamato Holdings Co.,
Ltd. Currently, Mr. Yamauchi serves as an
executive advisor to Yamato Holdings Co.,
Ltd. and holds the position of an external
director at Resona Holdings, Inc., among
other roles. In June 2020, he accepted theposition of Independent Director within the
PERSOL Group.

After joining Recruit Co., Ltd., Ms. Enomoto
held the position of PR Director at various
Japanese companies, such as Philips
Electronics Japan Ltd., Tokyo ElectricPower Company, Inc., and Hitachi, Ltd.,as well as at foreign-affiliated companies.
Currently, she holds the position of external
director at AEON MALL Co., Ltd. andJAPAN POST Co., Ltd. In June 2018, she
accepted the role of Independent Director
within the PERSOL Group.

Mr. Yoshizawa initially joined Nippon
Telegraph and Telephone Public
Corporation, and assumed the role ofPresident and CEO at NTT DOCOMO, INC.,
where he currently holds the position of
corporate advisor. He also serves as anexternal director at Sony Financial Group
Inc. and Daiwa House Industry Co., Ltd. In
June 2022, he accepted the position of
Independent Director within the PERSOLGroup.

Independent Directors, what factors
Q As
do you prioritize?
Enomoto I firmly believe that Independent Directors
have a responsibility to lead Board discussions byleveraging our external perspective, gained through ourown experiences and knowledge, ultimately enhancing
the corporate value. Before attending Board meetings,
I thoroughly examine briefing materials, making mypositions clear to facilitate meaningful discussions.
Additionally, I actively track developments in the HR
service industry at both national and international levels,
ensuring I am sensitive to public perceptions of thePERSOL Group.
Yoshizawa I recognize that Independent Directors playa pivotal role in boldly presenting diverse perspectives that
may contrast with the viewpoints established internally.
I believe this principle holds true across all industries.
First and foremost, our Board exhibits remarkableenergy and actively encourages robust dialogue with theexecutive officers during our meetings. Through these
lively exchanges, I am consistently reminded of the vitalsignificance of articulating diverse perspectives.
Yamauchi I share Mr. Yoshizawa’s viewpoint, as I
too understand the role of an Independent Director inpresenting alternative viewpoints to those establishedinternally. In order to broaden my perspective in thiscapacity, I maintain a daily focus on news and global
developments related to HR, continuously gathering
insightful information. Additionally, during Board
meetings, I take advantage of lunchtime to engage inopen conversations with fellow participants, exchanging
opinions on economic trends across various industries anddiscussing future prospects.

is your evaluation of the Board’s
Q Whateffectiveness?
Yoshizawa Our Board has proven to be highly effective,
as evidenced by the evaluation report from an external
evaluation organization and interviews conducted by
the Chairperson of the Board. To address any identified
issues from the previous fiscal year’s evaluation, we
adopt a proactive approach by narrowing down key

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Foundation for Value Creation

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Corporate Profile

54

Roundtable Discussion with Independent Directors

discussion topics and establishing a comprehensive plan at the beginning of each fiscal
year. This plan encompasses several aspects, such as agenda setting and time allocation for
deliberations. Compared to my previous experiences, I find this PDCA cycle at PERSOL tobe outstanding.
Yamauchi Since my appointment as a Board member three years ago, I haveundoubtedly witnessed a significant improvement in the effectiveness of the Board. The
effectiveness evaluation takes into account both quantitative and qualitative aspects.
Additionally, we engage an external evaluation organization to ensure objectivity every
three years. In the quantitative evaluation process, we administer an annual self-evaluationquestionnaire survey using a five-point scale. This survey includes a specific question togauge any enhancements in the effectiveness of the Board in relation to the previous
fiscal year. In this aspect, the Board was rated highly, with an average score of 4.3 out of 5among all Board members. It is especially noteworthy that the evaluation scores remained
consistent between Independent Directors and internal directors, demonstrating a clear
consensus.
Yoshizawa As part of the qualitative evaluation, the Chairperson of the Board conducts
one-on-one interviews with each director. I firmly believe that this approach is truly
commendable as it creates a platform for open and honest discussions, allowing us todelve into even the smallest details with the Chairperson.
Yamauchi In the fiscal year that ended in March 2023, we underwent an external
evaluation organization, which offered an objective assessment of the PERSOL Group.
The results of said evaluation further validated the effectiveness of our previous endeavors
within the Board. Starting from 2021, we introduced the role of Lead Independent Director,
who actively reviews agendas and collaborates with the Chairperson of the Board to
optimize time allocation before each meeting. This step plays a crucial role in enhancing theeffectiveness of the Board.
Enomoto In my opinion, the “Executive Session,” held immediately after the Board
meeting and exclusively attended by Independent Directors, is also proving to be effective.
The session allows us to promptly review the proceedings and convey comprehensive
improvement requests to the Chairperson of the Board via the Lead Independent Director.
If there is room for improvement, it lies in the sufficiency of reports pertaining to theactions taken by management in response to the issues and advice raised by Independent
Directors during the Board meetings. We anticipate further developments in this respect.
Yamauchi I concur with Ms. Enomoto’s perspective. Mr. Wada, the CEO, takes theinitiative to concisely summarize the deliberation outcomes at the conclusion of the Board
meeting, which provides a useful recap. Nonetheless, there is currently no mechanism forverifying the outcomes. It is crucial to establish a comprehensive system to monitor not
only the progress of business operations but also the management’s subsequent actions
taken in response to issues raised during the Board meetings. This system should aid the
management team in making decisions.
Enomoto Another concern pertains to the briefing materials used in the Board meetings.
Yoshizawa When there is an overwhelming amount of materials, our focus often
gets drawn towards trivial details that lack substantive importance. I acknowledge thatcompiling the materials is a challenging task for the Board secretariat. Nevertheless,streamlining the materials will allow us to prioritize key points and facilitate more in-depth
discussions.
Yamauchi Given the current volume of materials, a considerable amount of time isnecessary solely for their pre-review. By separating reference materials from the main
document and making appropriate structural adjustments, we can dedicate our attention
to more strategic discussions during the meetings. This approach will significantly
contribute to improving the Board’s operation and elevate the quality of our discussions.

Q What are your thoughts on the subject of Board diversity?
Yoshizawa I believe that the Board composition reﬂects a conscious effort to promote
diversity, encompassing gender and a diverse mix of skills.
Yamauchi Mr. Yoshizawa joined the Board last year and with his technological expertise,has consistently shared proactive insights derived from his own management experience.
I am of the opinion that his involvement has notably broadened the diversity in skills andperspectives. Moreover, recently, the Executive Officers have started to join us in theboardroom to observe the Board meetings. I strongly believe that the ongoing opportunity
for Board members and Executive Officers to convene in the same space and exchange
their respective viewpoints on problem recognition concerning social trends and changes
in the business environment will increasingly become valuable in the future.
Enomoto I’d also like to add that Ms. Debra A. Hazelton, with a wealth of management
experience in international companies, including Australia and Japan, joined the Board inJune 2023. Ms. Hazelton’s presence brings a renewed sense of optimism, as I anticipate an
expanded diversity of perspectives, spanning both gender and international backgrounds.
Yamauchi In 2022, the Corporate Governance Committee deliberated on the ideal
composition of the Board, taking into consideration the Company’s future strategy and theskill matrix of the Board members. After thorough deliberation, the Committee formulated
and presented recommendations to the Board. Following the Board’s recommendations,
the Nomination and Compensation Committee carried out the selection process, ultimately
resulting in the successful addition of Ms. Hazelton. I believe that the nomination process for
director candidates, with the objective of promoting Board diversity, is generating positive
outcomes and functioning appropriately.

are your thoughts on the Supervisory Committee,
Q WhatNomination and Compensation Committee, and Corporate
Governance Committee, respectively?
Enomoto Consisting of one internal director and two Independent Directors, theSupervisory Committee maintains a strong partnership with the internal audit department
and external auditors. As part of the annual routine, individual meetings with the Executive
Officers, who also serve as directors of subsidiary companies, provide an opportunity
for receiving reports on their job performance. These meetings take place within small

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Strategies for Value Creation

Foundation for Value Creation

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Corporate Profile

55

Roundtable Discussion with Independent Directors

committee settings, facilitating in-depth discussions and meaningful exchanges of ideas.
Depending on the significance of the content, we share it with other Independent Directors
to enhance the effectiveness of the Board and the Supervisory Committee.
Yoshizawa The Nomination and Compensation Committee comprises one internal
director and three Independent Directors. The discussions revolve around various issues,
such as the selection of candidates for directorship and executive positions, determinationof compensation, and the development of a comprehensive succession plan. I find thediscussions to be highly rational and transparent, ensuring a high level of integrity andopenness. Specifically addressing compensation, it is operated in a highly logical manner,with a clear correlation to the attainment of business plan objectives.
Yamauchi In 2021, we formed the Corporate Governance Committee. Previously,
discussions on strengthening corporate governance took place within the Board.
However, in order to enable more targeted and insightful discussions, we established asmaller committee with expertise in the field. The Corporate Governance Committee is
now designated for discussions on the framework of corporate governance, while theNomination and Compensation Committee is responsible for the practical implementation
based on that framework. The presence of Chairpersons from both the Nomination andCompensation Committee and the Corporate Governance Committee as members ofeach other’s committees facilitates smooth information sharing and accelerated decisionmaking processes.
Yoshizawa The Corporate Governance Committee is actively discussing the desired
qualities of the Board, taking into account social expectations related to vital aspects,
including sustainability and material issues. Building upon these discussions, theNomination and Compensation Committee is able to delve into more focused andspecialized discussions, ultimately enhancing effectiveness.
Yamauchi Mr. Tomoda, who is also an Independent Director and serves as the Chairpersonof the Supervisory Committee, is also a member of the Corporate Governance Committee.
I perceive that each committee operates independently while maintaining collaboration,
leading to enhanced effectiveness of both the Board and the respective committees.

Q

Please share with us your thoughts on future management
challenges and your expectations for the PERSOL Group.

Enomoto Over 40% of PERSOL’s shareholders are overseas investors. Moreover, we
now have a workforce of 8,000 employees based overseas. Strengthening our English
communication and information dissemination is vital, and this can be achieved byleveraging collaboration from overseas group companies.
Yamauchi As Ms. Enomoto rightly pointed out, we need to strive to heighten our global
awareness.
Enomoto I have high hopes for the PERSOL Group to lead the industry in tackling social
issues in Japan and Asia. As an Independent Director, I aspire to contribute by leading
the charge in driving reform and finding solutions for social issues, starting with resolving
employment mismatches.

Yoshizawa It is my belief that the PERSOL Group should strive to become the leading
company in Japan in the areas of talent and employment. Last year, the Board devoted
a significant amount of time to discussions regarding the formulation of the PERSOLGroup’s Mid-term Management Plan 2026. I consider the eight initiatives identified in thisplan aimed at resolving issues material to the PERSOL Group to be the initial step towards
becoming a leading company. Our goal as the Board is to strengthen our monitoring
capabilities and work in tandem with the management team to become a “Career Wellbeing” Company.
Yamauchi I am convinced that the current times demand the PERSOL Group. As theworking population in Japan diminishes, there is a heightened focus on the significanceof “people.” In order for Japan to enhance its competitiveness in the international
community, it is imperative to foster opportunities for individuals to thrive and excel,
encompassing reskilling endeavors. As the PERSOL Group’s vision for 2030, we haveembraced the concept of becoming a “‘Career Well-being’ Creation Company.” We
are positioned at a stage where we can showcase our relevance in response to social
demands. To this end, it is essential for the Board to prioritize discussions regarding thefuture trajectory of our long-term business strategy. Furthermore, we would like themanagement team to sharpen their ability to perceive social changes and act swiftly.
The Board, in turn, must maintain a position whereby we can guide the management
team’s agility. I have high expectations for the PERSOL Group as it continues to cultivate
a corporate culture that is challenging and adaptable through corporate governance andcreate a society where we can all “Work and Smile.”

Message from our newly appointed
Independent Director

Debra A. Hazelton
I am truly honored to join the Board of PERSOL Group in 2023, as it celebrates
its 50th year since Ms. Yoshiko Shinohara founded PERSOL Group’s corebusiness, Tempstaff.
I have worked in financial services and human resources development forsome of Australia’s and Japan’s leading companies.
I am confident that my experience will bring additional “diversity ofperspective” to PERSOL Group’s Board. I fully understand what the
stakeholders have entrusted me with, and will strive to engage in constructive
discussions with management as a member of the Board and contribute to theenhancement of PERSOL Group’s corporate value and its endeavors to realize asociety that allows us all to “Work and Smile.”PERSOL Group Integrated Report 2023

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Foundation for Value Creation

Financial and Non-fi nancial Data/
Corporate Profile

56

Directors and Executive Oﬃcers

Directors and Executive Officers (As of July 1, 2023)

Director

Director

Directors who are not Supervisory Committee Members

Director and Chairperson

Masamichi Mizuta

Representative Director,
President and CEO

Takao Wada

Directors who are Supervisory
Committee Members
Director (Member ofSupervisory Committee)

Daisuke Hayashi

Important concurrent posts

Important concurrent posts

Important concurrent posts

External Director of Linkers Co.,Ltd.

Non-executive Director of PERSOLAsia Pacific Pte. Ltd.

Auditor of PERSOL CAREER
CO., LTD.
Non-executive Director of PERSOLAsia Pacific Pte. Ltd.

Number of years in offi ce
14 years and 8 months

Number of years in offi ce
14 years and 8 months

Number of years in offi ce

ExecutiveOﬃcer
Representative
Director, President
and CEO

Takao
Wada

Executive Oﬃ cer
CSO

Taro
Mineo

Executive Oﬃ cer
CHRO

Hirotaka
Mino

Executive Oﬃ cer
CIO/CDO

Yuta
Tsuge

Executive Oﬃ cer
CFO

Junji
Tokunaga

Executive Oﬃ cer
Staﬃ ng SBU Lead

Kazunari
KimuraExecutive Oﬃ cer
BPO SBU Lead

Kazuyuki
Ichimura

Executive Oﬃ cerTechnology SBU Lead

Shinji
Masaki

Executive Oﬃ cerCareer SBU Lead

Yu
Senoo

Executive Oﬃ cerAsia Pacific SBU Lead

Takayuki
YamazakiExecutive Oﬃ cer
R&D Function Unit Lead

Toshihito
Nagai

2 years

Independent Director

Ryosuke
Tamakoshi

Independent

Important concurrent posts
Honorary Advisor of MUFG Bank,
Ltd.
Number of years in offi ce
7 years

Independent Director

Masaki
Yamauchi

Independent

Important concurrent posts
Executive Advisor of Yamato
Holdings Co., Ltd.
External Director of Resona
Holdings, Inc.
Number of years in offi ce
3 years

Independent Director (Memberof Supervisory Committee)

Chisa
EnomotoIndependent

Important concurrent posts
A member of Communication
Strategy Committee of Meiji
University
External Director of AEON MALL
Co., Ltd.
External Director of JAPAN POST
Co., Ltd.
Number of years in offi ce
5 years

Independent Director

Kazuhiro
Yoshizawa

Independent

Important concurrent posts
Corporate Advisor of NTT
DOCOMO, INC.
Outside Director of SonyFinancial Group Inc.
Outside Director of DAIWA
HOUSE INDUSTRY Co., LTD.
Number of years in offi ce

Independent Director

Debra A.
Hazelton

Independent

Important concurrent posts
Non-executive Director of Treasury
Corporation of Victoria
Chair of AMP Ltd.
Chair of AMP Bank
Number of years in offi ce
Newly appointed

Independent Director (Memberof Supervisory Committee)

Kazuhiko
TomodaIndependent

Important concurrent posts
Outside Auditor of Hakuhodo DY
Holdings Inc.
Outside Director of INES
Corporation
Number of years in offi ce
3 years

1 yearPERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

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Foundation for Value Creation

Strategies for Value Creation57

Directors and Executive Oﬃcers

Directors and Executive Officers (As of July 1, 2023)
1 Executive
Director

Composition of the Board
3 Internal
Directors

Ratio ofIndependent
Directors:

66%

7 MaleDirectors

Ratio ofNon-executive
Directors

88%

6 Independent
Directors

Board Skill Matrix

2 Female
Directors

22%

8 Non-executive
Directors* 1 Non-Japanese Director
Ratio of Non-Japanese Directors 11

Composition of Each Committee and Attendance
Skills that the Board of directors should have (knowledge, experience and capability) (Note)

Name/Position

Ratio of
Diversity

GenderCorporate
Management
and Strategy

Innovation/
Technology

Human
Risk
Resource andManagement/
Organizational Internationality Legal Aﬀ airs
Development

Finance/
Accounting

Sustainability/
ESG

Composition of Each Committee and Attendance (Attendances/Meetings)
The BoardName

2023/3Masamichi
MizutaDirector andChairperson

Man

Masamichi
Mizuta

13/13

Takao
Wada

Representative
Director, President
and CEO

Man

Takao
Wada

13/13

Ryosuke
Tamakoshi

Independent
DirectorMan

Ryosuke
Tamakoshi

Masaki
Yamauchi

Independent
DirectorMan

Kazuhiro
Yoshizawa

Independent
DirectorMan

Debra A.
Hazelton

Independent
Director

Daisuke
Hayashi

Director (Memberof Supervisory
Committee)

Chisa
EnomotoIndependent
Director (Member
Woman
of Supervisory
Committee)

Kazuhiko
TomodaIndependent
Director (Memberof Supervisory
Committee)

2024/3

Supervisory Committee

Nomination andCompensation Committee

2023/32023/32024/3

Corporate Governance Committee

2024/32023/3

10/10

7/7

13/13

10/10

7/7

Masaki
Yamauchi

13/13

10/10

7/7

Woman

Kazuhiro
Yoshizawa

10/10

7/8

Man

Debra A.
Hazelton-Daisuke
Hayashi

13/13

15/15

Chisa
Enomoto

13/13

15/15

Kazuhiko
Tomoda

13/13

15/15

Man

2024/3

7/7

7/7(Note) Defi nition of skills that the Board of directors should have (knowledge, experience and capability)
Corporate
Experience and ability of engaging in important decision
Management and making and successor selection of own company gained
as a corporate executive
StrategyInnovation/
Technology

Knowledge and experience regarding technology
utilization and innovation in corporate management
gained as a CTO of a company, etc.

Human Resource
Knowledge and experience regarding human resource
and Organizational strategy and health management, etc., gained as a CHRO
of a company, etc.
Development
Knowledge and experience regarding education business
Internationality

Experience and ability of organizational operation, business
management and business operation involving multiple
countries at an international organization or company

Risk
Management/
Legal Affairs

Knowledge and experience regarding risk management
gained as a CRO of a company, etc.
Knowledge and experience regarding business law andgovernance gained as a CLO of a company, etc.

Finance/
Accounting

Knowledge and experience regarding business plan,budget and capital policies gained as a CFO of acompany, etc.
Sufficient knowledge and experience as a specialist offinancial accounting

Sustainability/
ESG

Experience and ability of working on promotion ofsustainability and solving social issues in business
management

Details of the career records of the directors
are available on our website.
https://www.persol-group.co.jp/en/
corporate/director/

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Director and Oﬃcer Compensation and Succession Plan

Director and Officer Compensation and Succession Plan
Basic Policy for Director and Officer Compensation

Level of Compensation

The Compensation for Director and officer (hereinafter, “Executive Compensation”) of the

Executive Compensation is determined at a level deemed reasonable and fair based on the

PERSOL Group is positioned as an incentive to achieve sustainable growth over the mid- tobasic policy for Director and officer Compensation stated at left. Specifically, we determine

long-term. Following deliberations by the Nomination and Compensation Committee, atthe level of Executive Compensation by studying and analyzing the compensation levels

a meeting held in April 2023, the Board resolved on a compensation policy for the fiscal

of a group of benchmark companies (20 to 30 companies) selected utilizing a databaseyear ending March 2024 and beyond, which is designed to clearly reﬂect a contribution tofrom an external specialized agency and based on the business circumstances for thethe short- to mid-term improvement of the Company’s financial performance for achievingGroup. In determining Executive Compensation for the period of the Mid-term Management

the PERSOL Group’s Value Creation Story. The PERSOL Group’s basic policy for Executive

Plan through the fiscal year ending March 2026, we selected 21 companies as a group ofCompensation is embodied in the following three perspectives.

benchmark companies among peer companies (in the personnel service industry) and other1

major companies of comparable size on the bases of market capitalization and the target

Linked to the short-term, and mid- and long-term financial performance and thecorporate value of the PERSOL GroupA scheme that is linked not only to short-term fi nancial performance but also to midto long-term fi nancial performance and corporate value

2

Linked with shareholder value
Aligns profit awareness with that of shareholders and raises awareness ofshareholder-oriented management

values of the Mid-term Management Plan.

Standard Compensation Composition Model
1 Executive directors, etc.

2 Non-executive directors

Ensures transparency and objectivity of the compensation determination process3

Sets a competitive level of compensation
Makes compensation levels competitive with domestic companies of the same size andin the same industry, and is instrumental in securing high-quality human resources
Provides a stronger incentive to directors and officers with regard to improving
financial performance and corporate value

Executive Directors(In the case of thestandard payment rate)

50% Basiccompensation
20% Bonus
30% Share-based
compensation

Non-executive
directors

79% Basiccompensation
21% Share-based
compensation

Determination Process for Compensation
The amount of Executive Compensation, etc., of the PERSOL Group, their determination
process, and the policy for determining details of compensation for each director andofficer shall be decided by the Board, following thorough deliberations at the Nomination
and Compensation Committee, which is an independent advisory body to the Board. The
amount of compensation, etc., for directors who are Supervisory Committee Members shallbe decided through consultations among the Supervisory Committee Members.
Executive Compensation, etc., shall be paid within the maximum amount ofcompensation, etc., resolved at an Ordinary General Meeting of Shareholders.

Executive Oﬃcers(In the case of thestandard payment rate)

55 % Basiccompensation
20% Bonus
25% Share-based
compensation

Note: The value of share-based compensation for
non-executive directors excluding the Director
and Chairperson is fixed at 3 million yen per
non-executive director; as the amount of basic
compensation varies among non-executive
directors depending on their roles, the actual
compensation composition might not be identicalto that shown above.

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Director and Oﬃcer Compensation and Succession Plan

Director and Officer Compensation and Succession Plan
Executive Compensation for the Fiscal Year Ended March 2023

Overview of the Executive Compensation System
Positioning

Total amount of compensation, etc., by compensation type (Million yen)
Total amount ofcompensation,
etc.
(Million yen)

Directors who are not
Supervisory Committee Members(The amount of Independent Directors)

Directors who are Supervisory
Committee Members(The amount of Independent Directors)

Total

336

(43)

63

(25)

400

(The amount of Independent Directors)(68)

Share-based compensation
Basic
compensation

217

(36)

57

Bonus
Short-term
incentivecompensation

Performancelinked mid- tolong-term
incentivecompensation

53

37

(-)

-

(-)

274

53

37

(-)

6

3

(2)

35

Bonus

Total amount of compensation, etc., by compensation type (Million yen)

Name

Position

Basiccompensation

Bonus
Short-term
incentivecompensation

Basic compensation
paid in accordance withresponsibilities

Executive
directors, etc.

Financial measures
Evaluated in accordance with the levels of achievementof (1) net sales and (2) adjusted EBITDA of the entire
Company and each SBU, as well as the comparison of
growth rates with competitors
Non-financial measures/Theme-based evaluation
Individual non-financial measures related to materiality,
including the percentage of women in managerial
positions, are set for the overall Company and each
SBU, and themes are set individually for long-term andshort-term initiatives and initiatives to contribute to theGroup. (Evaluations of executive directors are made by
the Nomination and Compensation Committee.)

A short-term incentive
paid depending on thelevel of achievement oftargets for the single
fiscal year, which are
set as performancemilestones towards
achieving the Mid-termManagement Plan
Generally varies between
0% and 200%

Performancelinked mid- tolong-term
incentivecompensation

Executive
directors, etc.

Financial measures
Evaluated in accordance with the levels ofachievement of (1) TSR, (2) adjusted EBITDA, and(3) ROIC
Non-financial measures(1) Value creation goal and (2) the employee
engagement index

Designed to varydepending on the level ofachievement of financial
targets in the Mid-termManagement Plan towards
the fiscal year ending
March 2026, as well as
non-financial measures
Varies between 0% and200%

Fixed mid- tolong-term
incentivecompensation

Executive
directors, etc. /Non-executive
directors

Short-term
incentivecompensation(6)

Total Amount, etc., of Consolidated Compensation, etc., of Internal
Directors who are not Supervisory Committee Members
Total amount ofcompensation, etc.
(Million yen)Non-executive
directors

10

(10)

Share-based compensation
Performance-linked
mid- to longtewrm incentive
compensation

Fixed mid- tolong-term incentive
compensation

Masamichi
MizutaDirector andChairperson

73

55

3

2

12

Takao Wada

Representative
Director,
President and
CEO

115

65

26

18

5

Hirotoshi
Takahashi

Representative
Directorand Deputy
President

104

60

23

16

4

Share-based
compensation

Provision method

Executive
directors, etc.

(4)

(4)

(-)

Basic
Fixed
compensation compensation

Evaluation measures

Basic compensation paidin accordance with roles,
responsibilities, andmanagement capability

7

(6)

-

(-)

Numberof eligible
executives

28

(-)

(21)

(58)

Fixed mid- tolong-term
incentivecompensation

Eligible director

A fixed number of sharesare delivered as sharebased compensation tofurther increase linkage
with shareholder value

Succession Plan
The CEO succession plan is reviewed by the Nomination and Compensation Committee,
which focuses on defining the necessary leadership attributes as detailed in the “PERSOLLeadership Competency” for both the CEO and other Group Senior Executives. The
Company then assesses those competencies to further understand the talent pool and

Forfeit of Compensation, etc. (Clawback/Malus)

effectively prepare succession plans, transfer personnel, and develop talent. In addition,

In the event significant restatements of financial statements due to material accounting

non-financial indicators as well as measures for achieving them, and the Board monitors

errors or accounting fraud has been resolved by the Board, or the Board has deemed that

their progress in evaluating Group Senior Executives while maintaining objectivity andthere was a significant breach of executive service and/or other agreements by officers

transparency. The Group also ensures there is sufficient interaction between Board

during their term of office, the Nomination and Compensation Committee shall deliberate,

members and Group Senior Executives, thus creating circumstances and opportunities forat the request of the Board, whether or not to confiscate all or part of their rights tocomprehensive evaluation from various perspectives.

receive bonus and/or share-based compensation or demand the return of all or part ofin formulating the Mid-term Management Plan, the Group has established financial and

The Board oversees the Representative Director, President and CEO and Group Senior

the bonus and/or share-based compensation they had received, and to provide the Board

Executives and provides them with appropriate support and advice, aiming to achieve thewith opinions and suggestions based on the results of the deliberation.

mid- to long-term increase of the Group’s corporate value through sustainable growth.

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Evaluation of Eﬀectiveness of the Board

Evaluation of Effectiveness of the Board
Implementation Method

Major items of the questionnaire for directors

In a bid to further enhance the oversight function of the Board, the Company annually evaluates
1

Evaluation of overall board performance (alignment in understanding of roles andfunctions; KPIs, granularity, and details of monitoring)2

Composition of the Board (number of board members; roles of independent directors;
diversity; procedure for nomination of independent directors)

3

Operation of board meetings (frequency of meetings; deliberation time; allocation oftime; scope and volume of agenda items)

4

Systems supporting the Board (provision of information; inquiries; training)

5

Culture and communication within the Board (culture open to discussion and opinions;communication among directors and between directors and senior executives)deliberated about the direction of solving them, and compiled the final evaluation results.

6

Board’s discussion and oversight function (strategic debate; support for risk-taking;appropriateness of the nomination and compensation of executive officers)

Evaluation Method and Process

7

Operation of committees (roles and composition of the three board committees, i.e., theSupervisory, Nomination and Compensation, and Corporate Governance Committees)

8

Relationship with investors and shareholders (provision of information on the status of
dialogue; supervision of the system for promoting dialogue)

9

Other (optional comments)

10

Adequacy gap between the degree of importance of agenda items and the volume of
discussion dedicated to themoverall board effectiveness, and discloses the method and process of evaluation and a summaryof the evaluation results.
For the evaluation of the Board’s effectiveness in fiscal year 2022 (FY2022), we appointed
a third-party evaluator (Board Advisors Japan, Inc.: BAJ) to conduct an external review, withthe aim of enhancing the transparency and objectivity of evaluation. Specifically, BAJ carriedout a questionnaire survey and individual interviews with all the Board directors and executive
officers, attended a board meeting as an observer, reviewed documents submitted to theBoard and the minutes of board meetings from the past two years, and produced a third-party
evaluation report (hereinafter the “Evaluation Report”) summarizing the results. In addition,
the chairperson of the Board conducted individual interviews with all the Board directors.
Then, based on the Evaluation Report and the findings from the interviews conductedby the chairperson of the Board, the Board identified issues that need to be addressed,

Reﬂ ect issues recognizedin the operating policy andplans for the Board in the
coming fi scal year

Disclose results

Evaluation and issues
recognized in the fiscal
year under review and the
direction of responses

A

P

Operating policy and plans of the Boardfor the fiscal year under review
e.g., agenda, priority measures

Process of evaluation of theeﬀectiveness of the Board

D

Steadyimplementationof the planC

(Evaluation of eﬀ ectiveness)

Major items of the questionnaire for executive oﬃ cers

Held every year
1 Self-evaluation questionnaire survey
2 Individual interviews

Conducted every three years

multiple times

1

Board’s oversight function (strategic debate; KPIs, granularity, and details of monitoring;support for risk-taking)4 Discussion by the Board

3 Third-party evaluation

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Evaluation of Eﬀectiveness of the Board

Evaluation of Effectiveness of the Board
Evaluation Results
After discussing the Board effectiveness based on the Evaluation Report and theand the proper exercise of the monitoring function; a board culture that allows frank andfindings from the interviews conducted by the chairperson of the Board, the Board

open discussion; and the appropriate operation of committees.

confirmed that the effectiveness of the Board is ensured in terms of its composition,

In addition, in light of matters pointed out by the third-party evaluator, we identified

operation, culture and communication, discussion and oversight function, support

tasks we need to address going forward, that is, Setting key agenda items in line withsystems, operation of committees, and relationship with investors and shareholders.

the direction of medium to long-term management strategies, monitoring business

We received the following comment from the third-party evaluator: “The board’s

execution in a way conducive to corporate value, securing sufficient communication

effectiveness has steadily improved as a result of the establishment of a system foropportunities between the Board and executive officers, and further enhancing themonitoring the current state of business operations and the diligent efforts made on

management of board meetings to stimulate discussion.

both sides, i.e., oversight and execution.” As characteristics underlying the effectivenessBased on these evaluation results, the Company’s board will continue to promote theof the Board, it pointed to: the Board composition that ensures the independence and

PDCA cycle to improve its effectiveness and drive governance reform, so as to enableobjectivity of the Board; the appropriate delegation of authority to executive officers

the PERSOL Group to realize sustainable growth and enhance corporate value.

Progress in initiatives to address the issues identified
in FY2021 board eﬀectiveness evaluation

Setting key agenda
items that should
be given priority indiscussion at board
meetings

In developing a new Mid-term Management Plan 2026 covering the upcoming
three-year period, the Board discussed purposes that serve as the basis of
the plan as well as medium to long-term strategic policy, etc., and companywide strategies (resource allocation across the business portfolio, capital
policy, etc.). This led to a significant increase in the amount of time dedicatedto discussing medium to long-term management strategies and companywide strategies, from about 300 minutes in FY2021 to about 1,100 minutes.
It is recognized that these efforts have produced some tangible results
such as the development of the Mid-term Management Plan 2026 and theidentification of eight areas of materiality, i.e., priority areas to focus efforts
on in the years through 2026 toward realizing our group vision, “Work andSmile.” At the same time, it is also recognized that there are some issues
requiring further efforts. For instance, there is a need to further clarify thegoals to be achieved under the Mid-term Management Plan 2026 and improvethe method of monitoring the progress of the plan.

Composition of theBoard

The board and its committees considered the composition of the Board
that would have greater diversity in terms of gender and internationality inorder to ensure diversity of perspectives aligned with the changing external
environment while keeping the size of the Board unchanged. As a result, theBoard decided on, and proposed to the 15th annual meeting of shareholders,
their appointment as board members.

Allocation of time to
key agenda items andthe management ofmeetings to foster
meaningful discussions

To secure sufficient time to deliberate on priority agenda items, we strived
to ensure the efficient management of board meetings, for instance, bysimplifying explanations of agenda items for the purpose of information
sharing at a meeting while enhancing briefings to individual directors. Althoughthese efforts have produced some positive results, it is recognized that it isnecessary to implement continuous improvement activities—such as changing
the timetable for convening board meetings and further improving the qualityof meeting materials—to foster meaningful discussions.

Issues to be addressed in the future
Setting key agenda
items in line with thedirection of medium tolong-term management
strategies

There is a need for the Board to regularly discuss the direction of long-term
management strategies from the perspective of both risks and opportunities.
In setting this kind of agenda items, i.e., those that require a medium tolong-term perspective, it is crucial to ensure beforehand that the Board andexecutive officers have a shared understanding of issues with an eye on futurechanges in the social and business environments.

Monitoring businessexecution in a
way conducive tocorporate value

It is crucial to create a fully aligned understanding across the Board as well as between
the Board and executive officers about the way in which the Board should carry out
monitoring, in working toward realizing “A ‘Career Well-being’ Creation Company,” avision of what we want to be in the future, as set forth in the Mid-term Management
Plan 2026. Also, there is a need to discuss the necessity of changing the selection ofmonitoring targets and/or KPIs, as appropriate, in accordance with changes in theenvironment assumed in developing the Mid-term Management Plan 2026.

Securing suﬃcient
communication
opportunities between
the Board and executiveoﬃcersIn solving the issues described above, there is a need to secure morecommunication opportunities between the Board and executive officers as abasis for achieving a common understanding among them. To that end, it isnecessary to: enhance opportunities for independent directors to gain a better
understanding of the Company’s management, business operations, and key
persons; and increase opportunities for the Board and executive officers to
exchange frank opinions both formally and informally.

Further enhancing themanagement of board
meetings to stimulate
discussion

To secure sufficient time to deliberate on priority agenda items, it is necessary
to achieve more efficient meeting management, for instance, by extending thelength of board meetings, setting up an opportunity for intensive discussion
on a different day, and making effective use of written reports. To this end,
it is important that in convening a board meeting, the chairperson of theBoard, the lead independent director, and the secretariat to the Board closely
communicate beforehand on the management of the meeting. Also, it isnecessary to change the format of meeting materials to promote substantive
discussions by clarifying the points at issue.

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Risk Management

Risk Management
The Basic Approach to Risk Management
At the PERSOL Group, we position risk management activities as essential for keeping

Naho Kan
General Manager,
Group GRC Division

losses and damages to a minimum when risks materialize as well as for maintaining andimproving the Group’s corporate value.
Based on this policy, we have established the Group Risk Management Regulations
to identify risks that interfere with the implementation of business strategies and tocontrol risks by taking suitable measures. We have also established the Group Crisis
Management Regulations to respond promptly and appropriately when risks materialize.
Meanwhile, because there is not always a right answer regarding risk management

Risk Management of the PERSOL GroupTo achieve the Group Vision, “Work and Smile,” the PERSOL Group needs to continue
to provide value to the world while earning the trust of customers. I believe that risk
management activities are essential for achieving this.
Above all, changes in our external environment have been accelerating, and our own

methods, we believe it is essential to constantly optimize our method for risk
management in accordance with our corporate culture, management strategy,
governance structure, and other factors. We will continue to review our risk management
method to ensure that it is optimal for the PERSOL Group and that our customers,
business partners, employees, shareholders, and all other stakeholders see it as reliable.

management system has also continued to evolve accordingly. I think it is vital that we
identify these internal and external changes in a timely manner, remain sensitive to newrisks, and select Group Significant Risks and review the risk scenarios as appropriate.
At the same time, regarding the Group Significant Risks that we continually set, we
will continue activities to improve our risk handling in addition to monitoring theeffectiveness of countermeasures.
Going forward, to contribute to realizing a society in which all work inevitably resultsin smiles, we will continue to make concerted efforts through these risk management
activities to enable the PERSOL Group to earn the trust of all stakeholders, including
customers, and allow them to use our services with peace of mind, while gaining
commitments from the Representative Director, President and CEO and other Group
Senior Executives.

Concept of the Three-Line Model of the PERSOL GroupAt the PERSOL Group, we have adopted the three-line model

Refer to page 63

forrisk management. In addition, we have segregated risk management duties between
PERSOL HOLDINGS, the Strategic Business Units (SBUs), and Function Unit (FU) in
accordance with the characteristics of risks.
On the second line, we have set up risk management departments after establishing
the Policy for Risk Management suited to the content and nature of risks. The risk
management status of the second line is reported to the Group risk management
division within PERSOL HOLDINGS and the Risk Management Committee, which will be
described later.

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Risk Management

Evaluation of Effectiveness of the Board
Concept of the Three-Line Model of the PERSOL Group
Responsible department

Classification of Risk and Policy for Risk Management

Role

Classification of risk

First line:
Group companies

At the point where risks occur, promotes risk managementin business activities and daily activities

Second line:
Functional divisions

Monitors and supports the risk management activities ofeach Group company

Third line:
Internal Audit Division

Provides reasonable assurances regarding the effectivenessof risk management from a standpoint independent fromthe First and Second lines

Group-wide risk

SBU/FU-specific risks

Policy for Risk Management
Each functional division of PERSOL HOLDINGS manages
risks where uniform risk measures across the PERSOLGroup would be effective.
For risks with SBU and FU-specifi c business and regional
characteristics, a risk management representative (= Internal
Control Implementation Manager) is assigned in each SBU
and FU to autonomously manage risks within each SBU or FU.

Overview of the PERSOL Group Risk Management Structure
The Board/Supervisory Committee

Secretariat (Group risk management division)

HMC/Risk Management Committee

First

SecondThirdLine of Defense

Line of Defense

Line of Defense

Control risks as the point
where risks occur

Supervise and provide advice onrisk management

Give reasonable assurances fromindependent perspective

Financial (CFO)IT and security (CIO/CDO)
Operating divisions ofGroup companies

Human resources (CHRO)

Internal Audit Division(at PHD)GRC (Oﬃcer in charge of GRC)SBU/FU functional divisions* PHD=PERSOL HOLDINGS, HMC=Headquarters Management Committee, CFO=Chief Financial Offi cer,
CIO/CDO=Chief Information Offi cer/Chief Digital Offi cer, CHRO=Chief Human Resources Offi cer, GRC = Governance, risk and compliance

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Risk Management

Risk Management
Risk Management Committee
The Risk Management Committee was established in April 2020 as a cross-group

Promotion Managers. This committee discusses the Group Significant Risks, which will beorganization that complements and strengthens the functions of the Headquarters

described later, as its agenda. Its activities also include the monitoring of the status of risk

Management Committee (HMC) of PERSOL HOLDINGS.

management at the functional divisions of PERSOL HOLDINGS, the FU, and the SBUs.

The committee is convened every quarter with members including the Representative
Director, President and CEO, Group Senior Executives, and SBU Internal Control

In addition, the status of the activities of this committee is reported to the Boardof Directors.

The Management Process for the Group Significant Risks
Among the Group’s risks, those which are deemed particularly significant in light of
the Group’s management situation and corporate strategies are selected as the Group
Significant Risks. We select the Group Significant Risks to preferentially allocate
management resources to initiatives to address these risks, positioning them as

Consider reviewing and improving
the Group Significant Risks and theactivity policy for the next fiscal year,
based on the achievements of the year
and changes to risk evaluation

Identify and evaluate risks at each
SBU and Function Unit of PERSOLHOLDINGS,using the risk evaluation
criteria common to the Group(degree of inﬂ uence, likelihood of
occurrence, vulnerability)

management tasks.
For the selected Group Significant Risks, officers of PERSOL HOLDINGS are

ACTdesignated as risk owners (those who assume final accountability for the risks) toaddress these risks more effectively.

Improving andreviewing

In addition, we implement a PDCA cycle in which the Risk Management Committee
puts the discussion of these risks on its agenda, confirms the progress on and effects ofmeasures to address the risks, and considers improvements and revisions annually. This
framework allows for continuous improvement.
We have selected the Group Significant Risks for the fiscal year ending March 2024,
which are listed in the table on the next page. We are enhancing measures to address

Monitoringeach one of these risks under the leadership of the risk owner.

PDCA cycle ofthe Managementof GroupSignificant Risks

Among the selected Group Significant Risks, privacy invasion risk, risks associatedwith climate change, and risks associated with human rights violations are considered

CHECK

not only as risks for the PERSOL Group but also issues of materiality of the Group. We
will work to contribute to resolving these social issues through our business.

Stocktaking
and evaluatingrisk for eachorganization

Responding to risk

Selecting
the Group
Significant
Risks

PLAN

Select particularly
significant risks as theGroup Significant Risks
from the identified risks,
in light of the Group’s
management situationand corporate strategies
Designate an officer asrisk owner to establish
measures for each Group
Significant Risk

Confirm the progress andeffectiveness of measuresby having the risk owner
regularly report on the statusof risk response

DO
Implement measures at each division in
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Risk Management / Information Security

Risk Management
Overview of Group Significant Risks for the Fiscal Year Ending March 2024
Significant risks Details of risks

Reasons for selection

Status of measures against risks

Risk owners

The PERSOL Group possesses and handles a large
amount of personal information regarding registered staff,
temporary staff, job seekers, client companies, employees
and other related parties, and the social impact of a leakwould be massive.

Implement security measures for the Group’s networks and systems.
Strengthen the capabilities for responding to security incidents within the Group by
establishing a CSIRT (PERSOL-SIRT) for the PERSOL Group.
Implement security education and targeted e-mail attack response training for employees
Establish groupwide security rules and monitor compliance with them.
Confirm the security levels of external services and contractors (at the conclusion of thecontract and periodically review them).

CIO/CDO

System failures
Delays and suspension of services provided by the PERSOL Groupand its major functions caused by natural disasters, cyberattacks,
failures in equipment or external services, errors in operation, andother events.

The Group’s businesses greatly depend on computer
systems and their networks, and the impact on business of asystem failure would be massive.

Establish a structure and a reporting ﬂow for a system failure.
Consider, renovate, or build IT environments to improve failure tolerance.

CIO/CDO

Risks associatedwith investment forcompany acquisition

Reappraisal of affiliated companies’ shares or impairment of
goodwill, etc.
Failure to obtain the expected return on invested capital.

The PERSOL Group has achieved growth through company
acquisition and business collaboration, and intends toincrease its corporate value through similar methods in the
future.

Establish the Investment Committee to deliberate important matters relating to theGroup’s overall investments.
Monitor the progress of past investments as well as return on investment and report to the HMC.

CFO

Privacy invasion risk

Administrative punishment, litigation and troubles or criticism onsocial media from mishandled personal information.
Increase in service user defection and deterioration of thecorporate image due to disadvantages to or mistrust of the data
provider.

While increased utilization of personal data is expected fromthe standpoint of enhancing the convenience of services
and the PERSOL Group’s growth strategies, the risk of
disadvantages to data providers due to factors such as thedevelopment of AI is increasing in society.

Establish the Group Privacy Governance Council to deliberate the privacy policies andmeasures of the Group as a whole.
Develop and apply a prescreening process from a privacy perspective when planning newservices and measures.
Established the Personal Data Guidelines that are common to the Group (March 2023).
Opened the Privacy Center, which explains the handling of personal data (March 2023).

CSO

Business continuity
risk in emergencies
such as natural
disasters

In the event of a natural disaster such as an earthquake or apandemic, the Company might suspend its business to ensure thesafety of its employees, because of restrictions on their activities
or because of damage to the Company’s assets.

Natural disasters such as major earthquakes or torrential
rains occur frequently, and it has been found that
infectious diseases spread rapidly around the world after
their outbreak, seriously impacting society. Further, thesimultaneous occurrence of these disasters is also likely.

Strengthen the functions of theEmergency Response Headquarter.
Automate grasp of the disaster situation.

Risks associated withclimate change

Rising temperatures due to greenhouse gases, which adversely
affect the PERSOL Group’s businesses and financially impact theGroup due to increased costs.

To realize a sustainable society where everyone can worksafely and securely.

Declare intention to become carbon neutral by 2030.
Deliberate next measures to reduce emis-sions toward becoming carbon neutral.
Promote activities to conserve energy and resources at offices.
Switch to EV/HV.
Switch to renewable energy, etc.

Risks associatedwith human rights
violations

Cases of human rights violation occurs in the PERSOLGroup, which provides human resource services, leading toadministrative penalties in each country and damage to the social
credibility and brand image of the PERSOL Group.

Addressing this risk is essential for realizing the Group Vision“Work and Smile,” and the social impact of a human rights
violation would be massive due to the Group’s businesscharacteristics.

Established and announced the PERSOL Group Human Rights Policy (December 2022).
Sequentially begin conducting human rights due diligence based on the above Human Rights
Policy in the fiscal year ending March 2024.
Initiatives are under way to develop a system, including the establishment of grievancemechanisms.

Officer in chargeof GRC

Risks associated withmacro-economicchanges caused bybusiness fluctuations

Demand for human resources slows down significantly due tofactors resulting from economic recession, such as a decline indemand for new human resources and the business downsizing at
existing customers or their reduction of costs.

HR services provided by the PERSOL Group are susceptible
to the ﬂuctuation of business. If a serious economic crisis
like the world financial crisis in 2008 happens, the Group’s
financial conditions and business results may potentially beaffected significantly.

Focusing on the impact on the ratio of job offers to job seekers, we have conducteda simulation and confirmed that we can secure operating profit even in an economic
downturn equivalent to the financial crisis that followed the collapse of Lehman Brothers.
Examine multiple economic recession scenarios and countermeasures (reducing strategic
investments, securing cash).

CFO

Personal information leaks
IT-related risks(personal
information leaks,
system failures, etc.)

Information leaks due to external attacks (cyberattacks).
Information leaks due to internal fraud/negligence.

Formulate BCP and continuously
implement review and improvement.
Verify effectiveness of BCM by periodicallyconducting training.

Officer in chargeof GRC

CHRO

Information Security
The PERSOL Group recognizes that it has a corporate social responsibility to protect both its

incidents (CSIRT), and comply with the Act on the Protection of Personal Information andown and customer information assets from all threats, to make efforts to ensure the necessary

various other laws and regulations.

information security for this purpose, and to provide continuous and stable services.
To fulfill these responsibilities, it has adopted the “PERSOL Group Information Security
Basic Policy.”
Based on this policy, we have adopted regulations regarding information security, andfollowing the regulations, we are working to establish an information security system centeredon the group’s Information Security General Department, train employees regularly, protect
information assets (measures against unauthorized access), respond to information security

In addition, we implement security audits to regularly review and improve measures against
IT-related risks that could lead to information leaks, because we consider that risk as one ofgroup significant risks and give priority to enhancing our risk countermeasures.
Details of our information security and handling of personal data are available
on our website.
https://www.persol-group.co.jp/en/corporate/governance/security/
https://www.persol-group.co.jp/privacy/protection/security/ (only available in Japanese)

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Crisis Management

Crisis Management
Initiatives for Crisis Management
The PERSOL Group has established the Group Crisis Management Regulations and has been

members and the Group risk management division of PERSOL HOLDINGS, and they makestrengthening crisis management, aiming to minimize the significant negative impact that a crisis

a timely and appropriate response, according to the type of incident and its impact. If thewould have on the Group’s management and business activities, and to quickly resolve any crisis.

Representative Director, President and CEO of PERSOL HOLDINGS determines that theSpecifically, if an incident such as a large-scale natural disaster, compliance violation or

incident is a particularly major crisis, the Emergency Response Headquarter is establishedcyberattack occurs and is deemed a crisis (and in cases where such incidents deemed so mightat PERSOL HOLDINGS to pursue a groupwide response, while appropriately disclosing

occur), the department in charge of the incident promptly shares the information with the HMC

information to customers, relevant agencies, ministries and others involved.

Crisis Management Structure of PERSOL HOLDINGS(Example: At the time of a large-scale natural disaster)

Information Sharing and Response ﬂow in the Event of a Crisis(at the time the Emergency Response Headquarter is established)PERSOL HOLDINGSEmergency Response Headquarter
Head of Emergency Response Headquarter

Secretariat (Risk Management Division)

The Board

HMC members

Crisis management
secretariat
Each functional division

Company and
SBU/FU where theincident occurs

ReportReportOccurrence ofincident

Emergency Response Headquarter members (Executive officers and Head of Functional Divisions)

Specialized response team
Human resources

Information systems

Public relations

Facilities/equipment

Accounting/finance

Legal

Receipt ofreportFact check, investigation of cause,
consideration of response policy and implementation
Information disclosure and communication with stakeholders

Company-wide policies/support

Report/request

Prevention of reoccurrence

SBU/FU Emergency Response Headquarter

Initiatives Related to Business Continuity, etc.
At the PERSOL Group, we position ensuring the safety of our employees and temporary

Regarding the tasks related to the payment of salaries, we have established a business

staff, as well as the payment of their salaries, as our most important tasks. We are working

continuity plan in anticipation of the simultaneous occurrence of a large-scale natural disasterto develop systems that utilize IT to collect information when we are affected by a disaster.

and a pandemic. We also conduct regular drills to help employees and temporary staff maintain

For example, we have introduced a safety confirmation system to be used in the event of atheir livelihoods even in a crisis. Further, we conduct other regular drills, including one for having

massive earthquake such as a Tokyo inland earthquake or a large Nankai Trough earthquake.

our base in Osaka back up the emergency response headquarters, in our efforts to build andWe have also introduced a system that automatically identifies offices very likely to be affectedmaintain a business continuity framework.

in a large-scale natural disaster. We also conduct an annual drill using the safety confirmation

In addition, in response to the rising international tensions, the PERSOL Group is striving to reinforce

system. In this drill, all PERSOL Group employees check how to respond regarding whether

safety measures for its employees in Japan and the Asia-Pacific region. While we have always had

they are affected by the disaster while the emergency response headquarters check the steps

safety measures in place, including safety confirmation rules, we will anticipate the possibility of war

to be followed to confirm the damage caused by the disaster and communicate information. In

and terrorism in addition to natural disasters in our continued enhancement of safety measures,

addition, when an earthquake has occurred, we immediately begin monitoring the situation of

implementation of training, formulation of evacuation rules, and other measures to protect the safety

our base near the epicenter using the system, to ensure an appropriate initial response.

and the health of local employees, expatriates, and people on overseas business trip.

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Compliance

Compliance

Conducting a Compliance Awareness Survey
Publication of
the ComplianceHandbook

We have prepared a Compliance Handbook in Japan and overseas as a guide to clarify how employees
should act from the per-spective of corporate ethics and compli-ance, and made all our employees awareof its content. The Handbook includes the entire text of the PERSOL Group Code of Conduct and is used
for raising compliance awareness.

Compliancetraining

In addition to providing regular compliance training to all Group employees in Japan and overseas, we
conduct education and training programs at each Group company that are tailored to each businessand each region, in our efforts to raise awareness of compliance. In the compliance training for all
employees in Japan in the fiscal year ended March 2023, we raised employees’ awareness of complianceand information security within the Group. During the three-month training period, 99.0% of the 34,906
eligible individuals completed compliance training. We also gave compliance training to all employees
at overseas Group companies, focusing on topics such as compliance, the prevention of bribery, andinformation security.

The Basic Approach to Compliance
The PERSOL Group views compliance as meeting the demands and expectations ofsociety and conducting business activities with integrity. To translate this idea into action,
we have formulated the PERSOL Group Code of Conduct to be observed by all officers
and employees of the PERSOL Group in Japan and abroad. This Code of Conduct sets out
basic behaviors based on compliance. To remain trusted by customers and society, we will
act with integrity and high ethical standards based on this Code of Conduct.

PERSOL Group Compliance Training (in Japan)
Name

The PERSOL Group Code of Conduct is available on our website.

https://www.persol-group.co.jp/en/corporate/governance/code_of_conduct.html

Compliance Promotion Structure
The PERSOL Group has established the Compliance Control Department within PERSOL

Details

Scope

Results for fiscal year ended March 2023

Compliance training
for all employees

Training for all employees of the PERSOLGroup (once a year)

Entire Group

Number of people who completed
training during the period: 34,342

Legal newsletter

Dissemination of legal knowledge related tothe business through the intranet

Entire Group

Number of times distributed: 5

New graduate
training

Training for new graduates when they join
the Group

Entire Group

Number of participants in the jointcompany joining ceremony: 1,052

Mid-career hire
training

Training for mid-career hires when they join
the Group

Entire Group

Conducted at each Group company asnecessary

Newly appointed
manager training

Training for managers (section manager
level), upon appointment and six months later Entire Group

Number of participants: 605
Number of sessions held: Four training
session each, upon appointment, sixmonths later, and a year later

HOLDINGS to promote compliance for the entire Group.
In addition, the SBU Internal Control Promotion Managers, who are designated at

Conducting
a complianceawareness survey

core companies of each SBU and FU, support the promotion of compliance and theimplementation of compliance measures at Group companies.

The Board

Cooperation/
supportReportWhistleblowing System

Internal Control Promotion Managers

In Japan, we have changed the framework of our whistleblowing system to strengthen

Report/communication

Instructions

Internal Control Promotion Officers

Representative Director and President
Report/communication

Core Companies of the SBUs and FU

Whistleblowing/
consultation

Instructions

Complianceeducation

Employees

Officer in charge of compliance
Report/communication

Complianceeducation

Employees

its function as a route for discovering misconduct, in addition to observing the revised
Whistleblower Protection Act that came into force in June 2022. Specifically, we defined thescope of the subjects for whistleblowing as violations of laws and regulations, including theWhistleblower Protection Act, and corporate scandals. We then informed employees of an
outline of the system in an easy-to-understand manner and strengthened the training of thestaff in charge of handling whistleblowing. In the fiscal year ended March 2023, a total of 64

Instructions

Group companies

Group GRC Division
Whistleblowing/
consultation

Cooperation/
supportPERSOL HOLDINGS

We conduct an annual compliance awareness survey of all Group employees in Japan in order tocontinuously monitor the instilling and establishment of compliance activities. The results of thesurvey are analyzed and evaluated by the GRC Division of PERSOL HOLDINGS and then reported to
management and the compliance divisions of core companies of SBUs and FU as compliance indicators,
with a view to reviewing and improving the compliance system and promotion activities.

Whistleblowing/
consultation

Persons in charge of compliance
Whistleblowing/
consultation

Complianceeducation

Employees

whistleblowing reports were received, and many of them were about labor issues and thehandling of information. In response to these reports received through our whistleblowing
system, we conducted investigations and dealt with the problems appropriately.
We have established whistleblowing contact points at each overseas Group company,
and created an environment that is conducive to whistleblowing in accordance with thecircumstances in each country.

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Financial and Non-financial Data/
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Financial Data69

Non-Financial Data

75

Corporate Profile/Stock Information

79

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Financial Data

Financial Highlights (JGAAP)(Million yen)

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/32023/3

Income Statement (in fiscal year ended)*3 *4
362,489

401,056

517,597

591,995

722,183

925,818

970,572

950,7221,060,893

1,223,967

Gross profit

85,341

96,524

122,647

142,806

167,438

206,517

213,991

201,413240,837

282,643

Selling, general and administrative expenses

66,74373,054

94,594

109,397

131,369

162,406

174,905

175,688

192,694

229,581

Operating profit

18,59723,47028,05233,40936,06844,111

39,08525,724

48,14353,061

Ordinary profit

18,47023,76928,19034,13635,10843,98239,361

28,45349,48453,693

EBITDA*1

24,951

29,471

36,40843,43348,02659,97256,35643,17067,15076,417

Profit attributable to owners of parent

9,857

13,424

17,356

17,8207,769

24,361

7,612

15,341

31,906

20,578Net sales

Cash flows (in fiscal year ended)*3 *4Net cash provided by (used in) operating activities

10,86328,894

13,27939,61735,00342,35328,59236,80550,692

52,796

Net cash provided by (used in) investing activities-51,306-13,529-15,065-9,708- 66,732-15,141-17,576-13,188-7,057-22,504

Net cash provided by (used in) financing activities

32,294

8,937-7,213-11,655

50,186- 48,165-1,987-17,973-21,145-38,268

Financial Position(as of the end of fiscal year ended)*3 *4
Total assets

177,433

228,663236,238

268,364

402,336

370,839

370,993381,179

425,110442,159

Cash and cash equivalents

35,95760,205

51,13869,382

89,566

68,96978,03782,991

106,558

99,658Borrowings

23,34333,65930,42025,480105,641

40,79451,02842,264

41,466

41,539

Shareholders’ equity

85,38096,938125,382

136,725

139,066

159,165

154,792

159,539

184,579

180,366

142.07183.63

75.76

75.94

33.28

104.39

32.76

66.50

138.51

89.61

24

32

-*2

17

19

25

30

26

42

61

16.9%

17.4%

17.2%

22.4%

57.1%

24.0%

91.6%

39.1%

30.3%

68.1%

23.1%

Per-share information*2 *3 *4
Earnings per share (EPS) (yen)Cash dividends (yen)Payout ratio
Other financial data*4
23.5%

24.1%

23.7%

24.1%

23.2%

22.3%

22.0%

21.2%

22.7%

Operating profit margin

5.1%

5.9%

5.4%

5.6%

5.0%

4.8%

4.0%

2.7%

4.5%

4.3%

Ordinary profit marigin

5.1%

5.9%

5.4%

5.8%

4.9%

4.8%

4.1%

3.0%

4.7%

4.4%

EBITDA margin

6.9%

7.3%

7.0%

7.3%

6.7%

6.5%

5.8%

4.5%

6.3%

6.2%

Return on invested capital (ROIC)

11.1%

11.8%

13.7%

15.3%

11.3%

15.9%

13.8%

9.2%

14.2%

15.3%

Gross profit margin

Return on equity (ROE)

13.2%

14.5%

15.4%

13.4%

5.5%

16.2%

5.0%

10.1%

18.9%

11.2%

Shareholders’ equity ratio

48.1%

42.4%

53.1%

50.9%

34.6%

42.9%

41.7%

41.9%

43.4%

40.8%

Total return ratio

3,174

2,193

4,631

7,481

6,842

9,534

13,383

11,744

11,703

14,293

Depreciation

2,550

2,749

3,061

3,988

4,907

7,249

9,466

10,76012,15016,059*1 EBITDA = Operating profit + amortization of goodwill + depreciation*2 The Company conducted a three-for-one stock split for shares of common stock of the Company with October 29,
2015 as the effective date. Per-share indicators, excluding dividend per share, are calculated on the assumption thatthe stock split took place at the beginning of the fiscal year ended March 2016. Dividend per share for the fiscal year
ended March 2016 consisted of 18 yen worth of interim dividends (before the split) and 7 yen worth of year-end
dividends (after the split).

*3 From the third quarter of the fiscal year ended March 2022 onwards, a new accounting process applies to Software
as a Service (SaaS) in the Australian business in the Asia Pacifi c SBU. Accordingly, it applies retrospectively to thefi nancial results for the fiscal years ended March 2021 and March 2022. (The same applies hereinafter.)*4 From the fi rst quarter of the fiscal year ended March 2023 onwards, a new accounting process applies to asset
retirement obligations. Accordingly, it applies retrospectively to the fi nancial results for the fiscal year ended March
2022. (The same applies hereinafter.)PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Financial and Non-financial Data/
Corporate Profile

Foundation for Value Creation

70

Financial Data

Financial Highlights (JGAAP)(Million yen)

Net sales(Million yen)

EBITDA*1 *5

Operating profit

1,223,967
925,818

970,572

950,722

Operating profit margin

76,4171,060,893
59,972

67,15044,111

56,356(Million yen)

Operating profit*1/Ordinary profit*1

48,14339,08543,1704.8%

53,061

25,724
4.0%

4.5%

4.3%

2022/32023/3

2.7%

2019/32020/32021/32022/3

Profit attributable to owners of parent *1 *2 *4

2023/3(Million yen)

2019/32020/32021/32022/32023/3(yen)

Earnings per share*1 *4

2019/342104.3920,57889.61

15,34132.76

2022/32023/3

2019/3(%)

ROIC*1 *4 *6/ROE*1 *2 *4
ROIC

18.9

ROE

2020/32021/32022/3425,11014.2

2023/3(Million yen)

370,9932020/32021/368.1%
30.3%
2022/32023/3(Million yen)Free cash flow *1 *4

442,159

15.3
11.2

39.1%

43,634

381,179

30,291

27,212

10.1
5.0

2019/326

Shareholders’ equity

370,839
13.8

30
91.6%

24.0%

Total assets*1 *3 *4/Shareholders’ equity*1 *4
Total assets

16.2
15.9

25

66.50

7,612

2021/3(yen)

61

Payout ratio

138.51

31,90624,361

2020/32021/3

Dividend per share/Payout ratio*1 *4
Dividend per share

2019/32020/3

159,165

154,792

159,539

2019/32020/32021/3

184,579

23,616

180,366
1 1 ,015

9.2
2019/32020/32021/32022/32023/3*1 From the third quarter of the fiscal year ended March 2022 onwards, a new accounting process applies to Software asa Service (SaaS) in the Australian business in the Asia Pacifi c SBU. Accordingly, the figures for the fi nancial results forthe fiscal years ended March 2021 and March 2022 refl ect its impacts.
*2 For the fiscal year ended March 2020, extraordinary losses of 19.3 billion yen were recorded, including businessreorganization losses of 3.1 billion yen related to the discontinuation of the business of “an” part-time job recruitment
media and a loss on impairment of goodwill of 12.6 billion yen related to the staffi ng business of Programmed. In
addition, in the fiscal year ended March 2023, extraordinary losses of 12.3 billion yen were recorded, including an 8.3
billion yen impairment loss related to the Property Services business of Programmed and a 2.0 billion yen impairment
loss related to MIIDAS CO., LTD.

2022/32023/3

2019/32020/32021/32022/32023/3*3 Partial Amendments to Accounting Standard for Tax Eff ect Accounting (ASBJ Statement No. 28, February 16,2018) and related guidance have been applied since the beginning of the fi scal year ended March 2019. Total
assets prior to the fi scal year ended March 2019 represent fi gures to which the said accounting standards havebeen retroactively applied.
*4 The consolidated tax return fi ling system has been applied since the fi scal year ended March 2021.
*5 EBITDA = operating profi t + depreciation + amortization of goodwill*6 ROIC = net operating profi t after tax before amortization of goodwill / invested capital (= business assets business liabilities)PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-financial Data/
Corporate Profile

71

Financial Data

Consolidated Balance Sheet (JGAAP)(Million yen)

Fiscal year
ended March 2022

Fiscal year
ended March 2023

(As of March 31, 2022)(As of March 31, 2023)

Assets(Million yen)

Fiscal year
ended March 2022

Fiscal year
ended March 2023

(As of March 31, 2022)(As of March 31, 2023)

Liabilities
Current liabilities

Current assets
107,545

99,757

100

100

Accounts receivable - trade

150,073

160,879

Contract assets

18,65825,951Work in process

333

384

10,740-554

17,780-572

286,897

340,281

Cash and deposits
Notes receivable - trade

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Accumulated depreciation

11,686- 6,639

13,016-9,403

Accumulated impairment

-10

-54

Right of use assets, net

5,036

3,558

Tools, furniture and fixtures

7,062- 4,835

Buildings and structures

Accounts payable - trade

630

602

Short-term borrowings

162

11,361-

10,000Current portion of bonds payable
Current portion of long-term borrowings

11,30460

Accounts payable - other

81,81391,934

Income taxes payable

11,211

11,418

Accrued consumption taxes

17,432

18,967

Provision for bonuses

17,847

19,868Provision for bonuses for directors (and other officers)

71

129

Other provisions

714

1,535

Other

26,70629,541

Total current liabilities

167,893

195,421

Non-current liabilities
Bonds payable

10,000-Long-term borrowings

30,00030,116-79

7,859-5,312-110

Retirement benefit liability

414

311

2,147

2,437

Provision for share awards

810

1,085

9,169
-5,75812,676

Provision for share awards for directors (and other officers)

Accumulated depreciation

7,420

Asset retirement obligations

Right of use assets, net

Other provisions

Accumulated depreciation
Accumulated impairment
Tools, furniture and fixtures, net
Right of use assets

3,410

5,256

Land

515

515

Other

3,906
-1,601

5,410-2,303-24

Accumulated depreciation
Accumulated impairment-

Lease liabilities

1,997

3,421

Deferred tax liabilities

3,039

4,018

Other
Total non-current liabilities
Total liabilities

835

1,104

4,430

4,659

81

45

1,239

1,242

52,85046,005

220,743

241,426

2,304

3,082

13,414

14,849Trademark right

9,803

10,052

Share capital

17,47917,479Goodwill

61,67452,344

Capital surplus

19,16813,455

Software

16,78718,081Retained earnings

158,282

168,890

Other

6,863

5,842

Treasury shares-10,351-19,459

Total intangible assets

95,12986,320Total shareholders’ equity

184,579

180,366

Investment securities

8,664

12,058Valuation difference on available-for-sale securities

959

971

Deferred tax assets

10,324

13,741

Foreign currency translation adjustment-2,489

4,179

Other

12,208-1,527

12,535-1,627

Total accumulated other comprehensive income-1,5305,150

Allowance for doubtful accounts

Share acquisition rights

Total investments and other assets

29,67036,707

Non-controlling interests

Other, net
Total property, plant and equipment

Accumulated other comprehensive income

Investments and other assets

Total non-current assets
Total assets

Net assets
Shareholders’ equity

Intangible assets

138,213

137,877

425,110442,159

Total net assets
Total liabilities and net assets

0021,317

15,214204,367

200,732

425,110442,159PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-financial Data/
Corporate Profile

72

Financial Data

Consolidated Income Statement and Comprehensive Income Statement (JGAAP)(Million yen)

Consolidated Income Statement(Million yen)

Fiscal year
ended March 2022

Fiscal year
ended March 2023

Fiscal year
ended March 2022

Fiscal year
ended March 2023

(April 1, 2021
to March 31, 2022)(April 1, 2022
to March 31, 2023)(April 1, 2021
to March 31, 2022)(April 1, 2022
to March 31, 2023)

1,060,893

1,223,967

Cost of sales

820,056

941,323

Gross profit

240,837

282,643

Selling, general and administrative expenses

192,694

229,581Non-recurring loss

127

649

Operating profit

48,14353,061

Total extraordinary losses

3,139

13,267

Profit before income taxes

50,04340,716

Interest income

49

90

Income taxes - current

18,88020,121Dividend income

232

242

Subsidy income

1,342

1,696

25

-

Other

540

233

Total non-operating income

2,189

2,261

270

432

Foreign exchange losses-

353

Commission expenses

24

1

Share of loss of entities accounted for using equity method

174

529

Other

377

313

Total non-operating expenses

847

1,630

49,48453,693

Net sales

Non-operating income

Foreign exchange gains

1-

Loss on valuation of investment securities

801

369

Restructuring expenses

530-

Loss on sale of investment securities

Income taxes - deferred-3,653-2,241

Total income taxes

15,227

17,880

Profit34,81522,835

Profit attributable to non-controlling interests

2,909

2,257

Profit attributable to owners of parent

31,906

20,578

Fiscal year
ended March 2022

Fiscal year
ended March 2023

(April 1, 2021
to March 31, 2022)(April 1, 2022
to March 31, 2023)

34,81522,835

Valuation difference on available-for-sale securities-1,39112Foreign currency translation adjustment

4,358

6,857

40

281

3,007

7,151

37,822

29,98734,35027,260

3,472

2,727

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

1,500

57

Gain on sale of shares of subsidiaries and associates

486-

Gain on sale of investment securities

1,712

233

Total extraordinary income

3,698

290

3

8

Gain on sale of non-current assets

Extraordinary losses
Loss on disposal of non-current assets
Impairment losses

1,675

12,239(Million yen)

Consolidated Comprehensive Income Statement

ProfitOther comprehensive income

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable tonon-controlling interests

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Financial and Non-financial Data/
Corporate Profile

Foundation for Value Creation

73

Financial Data

Consolidated Statement of Changes in Equity (JGAAP)(Million yen)

Fiscal year ended March 2022

Shareholders’ equity(April 1, 2021 to March 31, 2022)
Share capital

Balance at beginning of period

17,479

Capital surplus

Retainedearnings

19,008-11,100

134,151

Cumulative effects of changes
in accounting policies
Restated balance

Treasury shares-124
17,47919,008-11,100

134,027

Total
shareholders’equity159,539

184,579

20,57820,578

-0

-0

749

917
-7

Purchase of treasury shares
335

Disposal of treasury shares
Change in ownership interestof parent due to transactions
with non-controlling interests-9,999-9,999892

1,227- 6,048- 6,048

Net changes in items otherthan shareholders’ equity

Net changes in items other thanshareholders’ equity-

Total changes during period

17,479160

24,254

19,168748-10,351

158,282

25,163
184,579

Total changes during period
Balance at end of period

Accumulated other comprehensive income

2,350- 6,325-3,9740

Noncontrollinginterests

Total net
assets18,035

173,600

Cumulative effects of changes inaccounting policies

-124
2,350

- 6,325-3,974

17,479-5,712

10,607-9,107- 4,212

13,455

168,890-19,459

180,366

Noncontrollinginterests

Total net
assets21,317204,367

Accumulated other comprehensive income

Valuation
Total
Foreigndifference
accumulatedSharecurrency
on available- translationotheracquisition
for-salecomprehensive
rightssecurities adjustment
incomeRestated balance-10,351

158,282

Total
shareholders’equityNet profit attributable toowners of parent

31,906

Balance at beginning of period

19,168Treasury shares-9,971

31,906

Balance at end of period

17,479Retainedearnings-9,971

Net profit attributableto owners of parent-7

Balance at beginning of period

Capital surplus

Dividends of surplus-7,651

167

Share capital

159,415-7,651

Change in ownership interest ofparent due to transactions with
non-controlling interests(April 1, 2022 to March 31, 2023)

Changes during period

Dividends of surplus

Disposal of treasury shares

Shareholders’ equity-124

Changes during period

Purchase of treasury shares(Million yen)

Fiscal year ended March 2023

0

18,035

173,476

Changes during period

Valuation
Total
Foreigndifference
accumulatedSharecurrency
on available- translationotheracquisition
for-salecomprehensive
rightssecurities adjustment
incomeBalance at beginning of period

959-2,489-1,5300Changes during period
Dividends of surplus-9,971

Net profit attributable toowners of parent

20,578Dividends of surplus-7,651

Net profit attributable to ownersof parent

31,906

Purchase of treasury shares-9,999Purchase of treasury shares-0

Disposal of treasury shares

1,227

Disposal of treasury shares

917

Change in ownership interest ofparent due to transactions with
non-controlling interests-7

Change in ownership interestof parent due to transactions
with non-controlling interests

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period-1,391

3,836

Net changes in items otherthan shareholders’ equity

2,444

-

3,282

5,726

-

3,282

30,890Total changes during period

204,367

Balance at end of period-1,391

3,836

2,444

959

-2,489-1,530021,317- 6,048

11

6,669

6,681

11

6,669

6,681

971

4,179

5,150

- 6,1030578- 6,103-3,634

15,214

200,732PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-financial Data/
Corporate Profile

74

Financial Data

Consolidated Cash Flow Statement (JGAAP)(Million yen)

(Million yen)

Fiscal year
ended March 2022

Fiscal year
ended March 2023

Fiscal year
ended March 2022

Fiscal year
ended March 2023

(April 1, 2021
to March 31, 2022)(April 1, 2022
to March 31, 2023)(April 1, 2021
to March 31, 2022)(April 1, 2022
to March 31, 2023)

Profit before income taxes

50,04340,716

Payments into time deposits

-820

174

Depreciation

12,15016,059Proceeds from withdrawal of time deposits

51

1,178

Impairment losses

1,675

12,239Purchase of property, plant and equipment-2,604-3,331

Amortization of goodwill

6,856

7,296

Proceeds from sales of property, plant and equipment

Increase (decrease) in retirement benefit liability

-482

-134

Purchase of intangible assets

Increase (decrease) in provision for bonuses

2,378

1,832

Purchase of shares of subsidiaries and associates

21

52

226

275

Increase (decrease) in provision for share awards
for directors (and other officers)

301

268

Increase (decrease) in allowance for doubtful accounts

-193

6

Cash flows from operating activities

Increase (decrease) in provision for bonuses for directors(and other officers)
Increase (decrease) in provision for share awards

Cash flows from investing activities

1,877

86

-8,383-10,108--1,301

Purchase of investment securities-1,195-2,867

Proceeds from sales of investment securities

4,276

309

Purchase of shares of subsidiaries resulting in change inscope of consolidation-250-3,321

Proceeds from sales of share of subsidiaries resulting inchange in scope of consolidation

673--1,126-2,486

33

859

Payments for acquisition of businesses

Interest and dividend income

-281

-332

Proceeds from sale of businesses-

20Interest expenses

270

432

Proceeds from absorption-type mergers--16

Share of loss (profit) of entities accounted
for using equity method

174

529

Loan advances-3-0

Proceeds from collection of loans receivable

43

Subsidy income-1,342-1,694

Payments of guarantee deposits

-452

-728

Loss (gain) on sale of shares of subsidiaries and associates

-486

-

Proceeds from refund of guarantee deposits

1,072

779

Loss (gain) on sale of investment securities-1,711

-233

Other

-178

-545

801

369

Net cash provided by (used in) investing activities-7,057-22,504-1,496-48

Increase (decrease) in other provisions

Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets
Restructuring expenses

530-

Non-recurring loss

127-

Net increase (decrease) in short-term borrowings-470

11,020Decrease (increase) in trade receivables-28,855-12,611

Repayments of long-term borrowings-691-13,040

Increase (decrease) in trade payables

7,367

7,735

Redemption of bonds

99

1,283

Purchase of treasury shares

Increase (decrease) in accrued consumption taxes
Increase (decrease) in long-term accounts payable - other

-225

-81

Decrease (increase) in other assets

9,920

-415

Increase (decrease) in other liabilities

1,922

1,444

Subtotal

59,82775,848Cash flows from financing activities

Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation-10,000-

0-9,999-7,651-9,969

-198

-248

-7

-13,764

Interest and dividends received

280

334

Other

-2,125-2,265Interest paid

-265

-471

Net cash provided by (used in) financing activities-21,145-38,268

Subsidies recieved

1,342

1,694

Payments of restructuring expenses

-530

-

1,078

1,077

Income taxes paid

-12,542-24,640

Income taxes refund

2,581

29

50,692

52,796

Net cash provided by (used in) operating activities

Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

23,567-6,899Cash and cash equivalents at beginning of period

82,991

106,558

106,558

99,658Cash and cash equivalents at end of period

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Financial and Non-financial Data/
Corporate Profile

Foundation for Value Creation75

Non-Financial Data

Non-Financial Data

Environment

Climate Change

Boundary

Unit

Scope 1
Scope 2
(location-based)
Scope 2
(market-based)
Subtotal Emissions(Scope 1+2)

t-CO2

t-CO2 /
sales
1 billion yen

Emission Unit
(Scope 1+2)

2021/32022/32023/3

12,395

12,721

16,617-

12,881

13,782

13,028

12,977

13,09325,42325,69829,710

26.7

24.2

24.3

-

-

288,657

-

-

4,758

-

-

3,292

1,445

1,154

3,038

515

601

1,575

9,369

7,889

8,408

-

-

35

-

-

17,430--30

11,3299,645

327,223

47.5

48.3

66.9

26.3

26.5

28.8

(-)

(-)

(2.7)

73.8

74.8

95.7

Pollution Prevention and Resource Circulation
Boundary

Unit

2021/32022/32023/3

Waste recycled (recyclable
waste, paper, bottle, can, PET)

*1

t

24.6

28.2

38.6

Non-recycled waste(non-industrial)

*1

t

77.0

93.6

133.2

Non-recycled waste(industrial)

*2

t

454.3

511.3

550.1

Waste requiring special
management (waste oil)

*2

t

-

-

1.4

Total Waste *5

-

t

555.9

633.1

723.3

Water use

Water usage(city water) *6

*3

m3

4,427

10,194

10,337

Raw material
used

Copy paper usage*7

*4

t

240

222

209

Green productpurchasing

Green product purchasing

*4

%

37.2

36.7

33.7

Scope 3

Greenhousegasemissions

Energyconsumption

Category 1:
Purchased goods andservices
Category 3:
Fuel- and energy-related
activities (not included inscope 1 or scope 2)
Category 4: Upstream
transportation anddistribution
Category 5:
Waste Generated in
Operations
Category 6:
Business travel
Category 7:
Employee Commuting
Category 9:
Downstream
transportation anddistribution
Category 11:
Use of sold products
Category 12:
End-of-life treatment ofsold products
Subtotal Emissions(Scope 3)

Group

t-CO2

Fuel consumptionGroupmillion
kWh

Electricity Consumption(renewable energy andgreen electricity)GroupmillionkWh

Energy consumptionGroupmillionkWh*1 The figures for greenhouse gas emissions marked with a check ( ) symbol have undergone third-party verification provided
by SOCOTEC Certification Japan. Starting in the fiscal year ended March 2022, this applies for the purpose of ensuring theaccuracy and reliability of emissions calculated with third-party verification on environmental datavalues for emissions.
*2 The figures for Scope 1, Scope 2 and Scope 3 Category 3 emissions were calculated based on data from the main bases of
PERSOL HOLDINGS and its consolidated subsidiaries in Japan, as well as the main bases of major overseas consolidated
subsidiaries.
*3 The subtotal (Scope 3) for the fiscal year ended March 2022 is the sum of values for the respective categories that
include values in decimal places. Accordingly, it is not consistent with the sum of the indicated values for the categories.
*4 The figures for Scope 3 (excluding Category 3) emissions were calculated based on data from the main bases of thecompany and its consolidated subsidiaries in Japan.
The amount of Scope 3 emissions increased because values for a wider range of categories are included. Regarding
the other categories of Scope 3 emissions, we will consider future additional disclosure after checking details.

Waste*1 Data covers our major offi ce buildings; Minami Aoyama Building, Grand Front Osaka, and TS Ikebukuro.
Minami Aoyama Building Grand Front Osaka: April 2020 to March 2021 / TS Ikebukuro: Results from January 2021
*2 Data covers Fukushima, Miyazaki and Yonago FC of Persol Factory Partners Co., Ltd.
*3 Data covers Minami Aoyama Building of the head offi ce and TS Ikebukuro.
*4 Data covers the non-consolidated company and the domestic group.
*5 The increase in total waste resulted from the expansion of business scale.
*6 The defi nition of calculation was revised in the fiscal year ended March 2022. Accordingly, the values were corrected
retroactively.
*7 A correction has been made since the unit of the coeffi cient used in the calculation was incorrect. (July 2023)

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-financial Data/
Corporate Profile76

Non-Financial Data

Non-Financial Data

SocialNumber of consolidated employees* 1

By employment* 2

By SBU

By age group* 3

Number of directors* 3

Unit

2020/32021/32022/3

Total

Persons

52,00553,22759,26866,944

Number of employees

Persons

46,15547,90153,04960,183

Number of contingent employees(temporary and part-time employees)

Persons

5,850

5,326

6,219

6,761

Staffing SBU

Persons

26,21828,621

31,90235,277

Career SBU

Persons

4,759

4,291

4,554

5,553

Professional Outsourcing SBU

Persons

11,929

11,138

11,788

12,574

Solution SBU

Persons

460

611

844

1,043

Asia Pacific SBU

Persons

6,851

6,358

7,536

9,277

Holdings/directly managed
companies

Persons

1,788

2,208

2,644

3,220
29

20s or younger

%

31

30

29

30s

%

32

32

33

33

40s

%

25

25

25

24

50s

%

9

11

11

11

60s or older

%

2

2

2

2

Total

Persons

10

9

9

9

Male/Female

Persons

9/1

8/1

8/1

8/1

Percentage of women

Number of persons in managerial
positions* 3

Number of employees* 3 *4

Status of employee engagement

2023/3

10

11

11

11

Total

Persons

%

2,210

2,509

2,404

2,824

Male/Female

Persons

1,769/441

1,998/511

1,886/518

2,134/690

Percentage of women

Persons

19

20

22

24

Total

Persons

26,56828,98330,081

33,206

Male/Female

Persons

14,789/11,779

15,741/13,242

16,405/13,676

17,984/15,222

Percentage of women

%

46

47

45

46

Engagement index

%

–

63

67

71

Vision empathy index *3*6

%

–

76

77

79

Management index *3*7

%

–

58

62

65

%

–

–

49

51

*5

Career ownership index*3*8*1 The figures include employees at the Asia Pacific SBU. In light of the shift to the SBU structure in 2020, the numbers of
employees for earlier years have been recalculated.
*2 The number of full-time employees does not include PERSOL Group employees assigned to work at non-PERSOL Group
companies but includes employees from non-PERSOL Group companies working at PERSOL Group companies. The
number of contingent employees represents the annual average number of temporary and part-time employees.
*3 Data covers Group companies in Japan (excluding indefinite-term temporary staff ). However, some companies, where theintroduction of the human resources information system common to Group companies in Japan has yet to be completed,are excluded.
*4 The figure excludes employees at Asia Pacific SBU and associates employed for indefinite terms at PERSOL Group companies.

*5 The figure shows an average ratio of respondents answering either of the two highest choices on a five-point scale
regarding questions about employees’ motivation towards their work and contribution to the organization.
*6 The figure shows an average ratio of respondents answering either of the two highest choices on a five-point scale
regarding a question on empathy with the PERSOL Group’s vision of Work and Smile.
*7 The figure shows an average ratio of respondents answering either of the two highest choices on a five-point scale onquestions asking about development support and trust from superiors.
*8 The figure shows an average ratio of respondents answering either of the two highest choices on a five-point scale
regarding a question over employees’ career ownership (intention and action).

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-financial Data/
Corporate Profile

77

Non-Financial Data

Non-Financial Data

SocialTraining hours
per person
Total hours of
training(compulsory*9)

Unit

2020/32021/32022/3

Persons in managerial positions

Hours

–

14

17

2023/318

Employees* 10

Hours

19

19

15

18

Persons in managerial positions

Hours

–

28,84035,060.5

38,993

Employees

Hours

–

44,1892

36,0138

45,6219

Persons in managerial positions

Hours

–

645

4,262

4,138

Employees

Hours

–

22,36437,30843,405

Persons in managerial positions

Persons

–

3,448

5,406

5,471

Employees

Persons

45,45245,07153,37063,728Total

Persons

1,103

1,231

871

1,012

Male/Female

Persons

629/474699/532452/419557/455

Total

Persons

5,439

3,883

5,120

6,161

Male/Female

Persons

2,443/2,996

1,500/2,383

2,321/2,799

2,832/3,329

%

53

57

54

53

Total

Years old

36

37

37

37

Male/Female

Years old

37/35

37/36

37/37

38/37

Total

Years

6.4

6.8

7.2

7.0

Percentage of womenYears

6.8/5.9

7.1/6.3

7.5/6.7

7.3/6.6

Differential between
men and women

Years

0.9

0.8

0.8

0.7

Hours

18

16

17

17

Total

Persons

2,070

1,966

2,410

2,625

Male/Female

Persons

1,248/822

1,169/797

1,421/989

1,598/1,027

Status of training received
Total hours of
training(optional*9)
Total number ofparticipants intraining

New graduates

Number of employees recruited

Mid-career
persons

Percentage of women

Average age

Average number of years of continuous service*11

Average hours of overtime

Turnover*11

Percentage of women

%

40

41

41

39

Total

%

10

8

10

10

Male/Female

%

9/10

8/9

10/10

10/9

Rate of turnover*11*

Data on this page cover Group companies in Japan (excluding unlimited-term temporary staff ). However, some companies,
where introduction of the human resources information system common to Group companies in Japan has yet to becompleted, are excluded.
*9 Compulsory training refers to rank-specific training, selective training and job-specific training, while optional training
means training with invitation, cafeteria training and support for personal development and for the acquisition ofqualifications.

*10 For the fiscal year ended March 2022, the number of new graduates recruited was reduced due to the pandemic and thetraining program for new employees was partly revised. As a result, the number of hours of training per employee wassmaller for the fiscal year.
* 1 1 Calculated for unlimited term employees only.

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-financial Data/
Corporate Profile78

Non-Financial Data

Non-Financial Data

SocialPercentage of taking child-care leave*12
Percentage of returning from child-care leave*13
Number of persons taking nursing-care leave*14
Number of persons with reduced working hours

Unit

2020/32021/32022/3

Total

%

49

50

55

74

Male/Female

%

11/95

10/95

19/93

65/84

Total

%

92

94

95

97

Male/Female%

100/91

100/93

98/94

99/96

Total

Persons

20

20

21

20

Male/Female

Persons

8/12

10/10

9/12

6/14

Total

Persons

666

913

1,032

972

Male/Female

Persons

9/657

11/902

14/1,018

8/964
1,010

Number of approved applications for side jobs*15

Cases

185

508

712

Number of non-Japanese employees

Persons

477

459

459

507

Persons

1,410

1,670

1,981

2,417
2.56

Number of employees

Employment status of persons with disabilities*16

Employment rate

%

2.21

2.24

2.39

Total

%

–

–

78

75

Career position

%

–

–

90

85

Limited position*19

%

–

–

93

95

%

–

–

83

79

%

–

–

61

57

Percentage of employees who received diversity
literacy training

%

86

95

92

91

Percentage of employees who had a stress check

%

79

82

82

84

Wage differentials between men and women*17*18

Unlimited-term employment
Fixed-term employment

Percentage of remote work*20

%

12.7

12.1

12.1

12.3

Injuries and diseases

%

–

0.37

0.22

0.33

Poor mental health

%

1.25

1.34

1.64

1.80

%

–

–

–

21.8

Percentage of employees with high stress*21
Absenteeism(leave of absence for one month or longer)*22
Presenteeism(decline in performance due to poor health)*23
Number of fatal accidents
Participation rate in the shareholding association
Number of persons eligible for the share-based compensation scheme*24*

2023/3

Data on this page cover Group companies in Japan (excluding unlimited-term temporary staff ). However, somecompanies, where introduction of the human resources information system common to Group companies in Japanhas yet to be completed, are excluded.
*12 From the fiscal year ended March 2023 onwards, the percentage of employees taking childcare leave or using the
program of leave for childcare purposes during the fiscal year concerned among employees giving birth (or male
employees with spouses giving birth) or adopting children in the fiscal year is calculated. (Until the fiscal year ended
March 2022, the percentage of those who start taking childcare leave in the same fiscal year as the year of childbirthor in a later fiscal year was calculated.)*13 The figures show the percentage of employees who returned to work, from among all employees who completedchild-care leave during each fiscal year.
*14 The figures show the number of employees who started taking nursing-care leave during each fiscal year.
*15 The figure indicates the number of applications for side jobs approved during the fiscal year concerned.
*16 The figures represent the number of employees with disabilities, as of June of each fiscal year.
*17 The ratio of average annual income of female employees to that of male employees, both of which exclude associates
employed by PERSOL Group companies, is calculated. From the fiscal year ended March 2023 onwards, a new
calculation method reﬂ ecting partial revision pursuant to the Act on the Promotion of Women’s Active Engagementin Professional Life applies.
*18 The PERSOL Group ensures fair treatment in recruitment, evaluation, promotion and other aspects regardless of genderand other attributes. Reasons for the wage gap among employees under indefinite term employment include the facts thatfemale employees account for a high percentage of those accessing the shortened working hours program and that men

Cases

0

0

0

0

%

10

11

12

12

Persons

102

193

2,238

2,457

account for a higher percentage of managers. The entire PERSOL Group will encourage male employees to use
childcare leave and other programs and will endeavor to properly increase the ratio of female managers to further
improve the fairness of treatment. Reasons for the wage gap among employees under fixed term employment
include the facts that men make up a higher percentage of re-employed workers in specialist, IT and engineering
positions and that women hold a higher percentage of clerical positions*19 Limited position employees are those in an employment category that specifi es one or more of the following: region,
job or working hours.
*20 The figures show the percentage of employees who replied that they engage in remote work at least once a week.
(as of September in each fiscal year)*21 The figures show the percentage of those with high stress among employees who had a stress check.
*22 The figure for injuries and diseases represents the percentage of employees who have taken continuous leave for one
month or longer due to issues with their physical health, whereas the figure for mental health issues is the percentage of
employees who have taken continuous leave for one month or longer due to issues with their mental health.
*23 The figure is calculated by subtracting from 100% an average percentage of performance estimated by survey
subjects in the past four weeks in a survey using the Single-Item Presenteeism Question (SPQ) with a single question
developed by the University of Tokyo on the assumption that 100% means the level of performance without diseases
or injuries. (as of September 2022)*24 The figures represent the number of employees eligible for the trust-type share-based compensation scheme (BIP/
ESOP) and the restricted stock compensation scheme. (Through the fiscal year ended March 2021, the figures
represented only the number of employees eligible for the trust-type share-based compensation scheme.)PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Foundation for Value Creation

Financial and Non-financial Data/
Corporate Profile

79

Corporate Profile/Stock Information

Corporate Profile/Stock Information
Corporate Profile

Stock Information

Company NamePERSOL HOLDINGS CO., LTD.

Stock Code2181

Established

October 1, 2008

Stock ExchangeTokyo Stock Exchange, Prime Market

Head Oﬃce

1-15-5 Minami-Aoyama, Minato-ku, Tokyo 107-0062, Japan

FiscalYear-End March 31

Base Dates

Shareholders’ Meeting date: March 31
Year-end dividend record date: March 31
Interim dividend record date: September 30

Trading Unit

100

General Meeting of Shareholders

June

Registered Oﬃce 2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, Japan
URL
Consolidated
Employees

https://www.persol-group.co.jp/
66,944 (As of March 31, 2023)* Full-time employees–60,183 (includes employees working at group companies. Employees
assigned to work at non-group companies not included.) Contingent employees (including
temporary and part-time employees)– 6,761 annual average.

Number of Group 135 (37 domestic, 98 overseas)(As of July 1, 2023)
Companies
Number of Group 716 (539 domestic, 177 overseas)(As of February 2023)
Bases
CapitalShareholder Register Administrator
Special Account Management
Mitsubishi UFJ Trust and Banking Corporation
Institution

Electronic public notice
Public Notice Method

17,479 million yen (As of March 31, 2023)

Notification URL: https://www.persol-group.co.jp/(In case electronic notification is unavailable due to technicaldifficulties or other problems,the company will notify via The
Nihon Keizai Shimbun.)

Editorial Policy

Referenced Guidelines

This Integrated Report is a comprehensive information communication tool that integrates thefinancial and non-financial information of the PERSOL Group.
The purpose of this report is to deepen the understanding of our Value Creation Story towardachieving the Group Vision of “Work and Smile” by a wide range of stakeholders, including ourshareholders and investors.
This report carries an in-depth coverage of the PERSOL Group Mid-term Management Plan
2026 and the materiality, which were drawn up on the basis of the value creation story, andfeatures enriched content about ESG, financial and non-financial information.
In addition to this report, more detailed information for some topics may be found on the
PERSOL Group website (https://www.persol-group.co.jp/en/). Please refer to the website inconjunction with this report.

The process of editing this report used as reference the Integrated Reporting Framework
proposed by the International Financial Reporting Standards (IFRS) Foundation and Guidance forCollaborative Value Creation published by the Ministry of Economy, Trade and Industry.

Reporting Period
This report covers the fiscal year ended March 2023 (April 1, 2022 to March 31, 2023). However,it also mentions periods before and after this period when necessary.

About Guidance for Collaborative Value Creation
Guidance for Collaborative Value Creation is a lingua franca between
companies and investors. It serves as a guide to improving the quality of
information disclosure and dialogue with investors by providing companies(company executives) with a systematic and integrated view of the informationthat they should communicate to investors (corporate philosophy, businessmodel, strategy, governance, etc.). Companies are not expected to take thisguidance as a rigid set of formal rules; rather, each company is expected tochoose the parts that are important for its own business model and strategy,
and position them within its own value creation story.

PERSOL Group Integrated Report 2023

About the PERSOL GroupPERSOL Group’s Value Creation

Strategies for Value Creation

Financial and Non-financial Data/
Corporate Profile

Foundation for Value Creation

80

Corporate Profile/Stock Information

External Evaluation

iSTOXX MUTB Japan Platinum Career 150 Index

Highest-level company certification of “Eruboshi”

PERSOL HOLDINGSPERSOL HOLDINGS was selected as a constituent of the iSTOXX MUTB Japan
Platinum Career 150 Index, which consists of stocks of 150 companies in Japan
contributing actively to employee career development.

PERSOL CAREERPERSOL CAREER was granted the highest-level company certification underthe “Eruboshi” certification system, based on the Act on Promotion of Women’sParticipation and Advancement in the Workplace.

“Kurumin” certification

PERSOL WORKS DESIGN

Morningstar Japan ex-REIT Gender Diversity Tilt IndexPERSOL HOLDINGSPERSOL HOLDINGS was selected as a constituent brand of the Morningstar Japan
ex-REIT Gender Diversity Tilt, an ESG indicator newly adopted by the Government
Pension Investment Fund (GPIF), in recognition of its commitment to gender diversity.

PERSOL WORKS DESIGN achieved targets set in its General Employer Action Plan,
which was formulated based on the Act on Advancement of Measures to Support
Raising Next-Generation Children, and was certified as a company supportingchildcare by the Minister of Health, Labour and Welfare.

Sports Yell Company 2023
MSCI Japan Empowering Women Index (WIN)PERSOL HOLDINGS has been selected as one of the leading Japanese companies in
the industry for implementing gender diversity initiatives while maintaining superior
financial quality.

The PERSOL Group was certified by the Japan Sports Agency as a “Sports Yell
Company” for proactively encouraging sports activities to promote employees’ health.

Great Place to Work (GPTW)
Excellent Temporary Work Agencies
PERSOL TEMPSTAFFPERSOL TEMPSTAFF
2101008(03)Avanti Staff Corporation
2011002(03)Tempstaff Forum Co., Ltd.
2114008(03)Avanti Staff Corporation

Tempstaff Forum Co., Ltd.

The companies were certified as “Excellent Temporary Work Agencies” under“The Excellent Temporary Work Agencies Certification System,” commissioned by
the Ministry of Health, Labour and Welfare, to certify excellent temporary staffing
agencies, primarily for supporting the career development of dispatched workers.
*Tempstaff Forum Co., Ltd. is a non-consolidated company.

2023 Certified Health & Productivity Management
Outstanding Organizations (Large Enterprise Category)PERSOL TEMPSTAFFPERSOL FIELD STAFFPERSOL WORKS DESIGN

The companies were selected as 2023 Certified Health & Productivity Management
Outstanding Organizations (Large Enterprise Category) as examples of particularly
exceptional companies in implementing initiatives to promote health andproductivity management.

2022 PRIDE IndexPERSOL CHALLENGE (currently, PERSON DIVERSE)PERSOL GroupPERSOL HOLDINGSPERSOL CAREER

The companies won the highest Gold rating in the PRIDE Index 2022 for theirhigh-level efforts to build an LGBTQ-friendly working environment.

PERSOL CAREERPERSOL CAREER was ranked 6th in the large enterprises (1,000 or more
employees) category of the Best Workplaces in Japan 2023 selected by the Good
Place To Work (GPTW) Institute, which conducts workplace satisfaction surveys inaround 100 countries worldwide.

HDI Certified Support Center

PERSOL WORKS DESIGNPERSOL WORKS DESIGN was recertified with the HDI Support Center
Certification of HDI, the world’s largest support service industry membershipassociation, and obtained certification as a seven-star company.

Notes on Forward-Looking Statements
The information published in this report includes current plans, strategies and forwardlooking statements of the PERSOL Group. These statements are based on currently available
information, and are deemed by the PERSOL Group to be rational at the present time. However,these statements include inherent risks and uncertain factors, including economic trends, fierce
competition in the industry, market demand, foreign exchange rates, taxes and regulations.
Although performance results announced in the future may vary greatly from these statements
due to these various factors, the PERSOL Group is not liable for any losses incurred through theuse of the information in this report.
In addition, the purpose of this report is to deepen the understanding of the PERSOL Group’s
management policies, plans, financial status and other information by our shareholders, investors
and other stakeholders. This report is not intended for solicitation for investment in securities
issued by the PERSOL Group.

PERSOL Group Integrated Report 2023

PERSOL HOLDINGS CO., LTD
2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, Japan

Contact for Inquiries

Tel: +81-3-3375-2220

Group Sustainability Divisionhttps://www.persol-group.co.jp/

sustainability@persol.co.jp

2024.03.EN_03