Integrated Report 2020
PERSOL Grouphttps://www.persol-group.co.jp/

PERSOL HOLDINGS CO., LTD.
2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, Japan
Tel: +81-3-3375-2220“Peace” Shigeo Tanno (employee of PERSOL THANKS/Paralym Art artist)

Group Vision

Group Vision StructureGroup vision structure for realizing“Work, and Smile”

GROUP VISIONFIVE CORE PRINCIPLES

Working life is a journey of growth and creation.

Authentic

and there are many different paths to success.

Introduction

We all have big dreams,

Customer-Focus Professional
Teamwork Innovative

CORPORATE PHILOSOPHY

Providing Opportunity

Thus, we need to make our own choices

Individual GrowthSocial Contribution

from a range of diversified work opportunities.

so that all work leads to lives of happiness.

Management Structure

Value Story

Our vision is to enrich society

We will realize “Work, and Smile” for any individuals in Japan and the Asia-Pacific region.
PERSOL Group
Professional Outsourcing SBU

Permanent placement (mid-career, new grad
recruitment)
Career change media, direct recruiting
Executive and advisory placement
Outplacement support
Career training

Outsourcing (IT, business)
Digital solutions, system development
Business consulting
Engineering (design and experiment)
Temporary staffing (IT, engineering)

Solution SBU

Asia Pacific SBU

Specialized Services

Digital solutions (employment, human resourcesmanagement, education)
Incubation programs

Temporary staffing
Permanent placement
Equipment/facility maintenanceOutsourcing
Human resource management consulting
Education/training“Think tank” services
Human resource/organizational consulting
Education/training
Employment of the disabled
Corporate venture capital
Global human resource placement

Governance

Career SBU

Temporary staffing (clerical work, research,clinical development, sales, light work)
Outsourcing (clerical work, government officecontract business, call centers, helpdesks, CRO,
manufacturing)Temporary job placement ahead of permanent
employment/permanent placement

Value Strategy

Staffing SBU

CONTENTS

Introduction
1
2
3
5

1

Group Vision
Group Vision Structure, Management Structure
History of the PERSOL GroupTop Message

PERSOL Group Integrated Report 2020

Value Story

Value Strategy

Governance9 Value Creation Story
11 Three Group Key Strategies to Deal With Changes in
the Work Environment
13 Sustainability Policy
14 CHRO Interview
15 Examples of Value Creation

21 CFO Interview
23 At a Glance
25 Business Overview by SBU
25 Staffing SBU
26 Career SBU
27 Professional Outsourcing SBU
28 Solution SBU
29 Asia Pacific SBU

30 History of and Basic Policy on Governance at the PERSOL Group
31 Independent Director Interview
33 Governance Structure
35 Director and Officer Compensation and Succession of CEO, etc.
37 Directors and Executive Officers
39 CLO Interview
41 Compliance, Internal Control and Risk Management
43 Financial and Non-Financial Data
45 Corporate Profile/Stock Information

PERSOL Group Integrated Report 20202

Introduction

History of the PERSOL Group
April 2020

Shifted to a five SBU (Strategic Business Unit) structure

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

Staffing SBU

Career SBU

Professional
Outsourcing SBU

Solution SBU

Asia Pacific SBU

Specialized
Servicesborn at a time when the concept of temporary staffing had not arrived in Japan, and we have led the industry by
July 2017providing our services as a new work style to a large number of people. Since then, we have worked together

Renew the Tempstaff Brand logowith many companies, and have expanded our businesses as comprehensive human resource services provider

January 2019
Avanti Staff Corporation becomes a consolidated subsidiary of PERSOL TEMPSTAFF
CO., LTD.

in line with the wishes of working individuals and the needs of the times.

July 2019
FUJI XEROX LEARNING INSTITUTE INC. becomes a wholly owned subsidiary andchanges its name to PERSOL LEARNING INSTITUTE CO., LTD.

October 2018

May 1973

Renew the doda Brand logo

Carrying on the aspirations of Yoshiko Shinohara, we at
the PERSOL Group aim to realize a society in which all people
can continue to work enthusiastically and live happily.

December 2018
Establish PERSOL INNOVATION CO., LTD.

March 1997
Intelligence, Ltd. starts a permanent
placement business

July 2016

Announce the newGroup brand, “PERSOL”
Announce the brand tag line,“Work, and Smile”

1993
Tempstaff Co., Ltd. starts global expansion

1986
Tempstaff Co., Ltd. starts a temporary staffing business

April 2017
JAPAN TECSEED CO., LTD. and DRD CO., LTD. merge to become
PERSOL RESEARCH & DEVELOPMENT CO., LTD.
July 2017
Temp Holdings Co., Ltd. changes to PERSOL HOLDINGS CO., LTD., andseveral of our core Group companies undergo a name change

October 2019

970.5

October 2017
Programmed Maintenance Services Limited becomesa consolidated subsidiary

Change the Group Vision to “Work, and Smile”

May 1996
Tempstaff Co., Ltd. announces its Corporate Philosophy of“Providing Opportunity, Individual Growth and Social Contribution”

Net sales

Value Story

When our founder Shinohara graduated from high school and began working, there were still few women
joining the workforce. Shinohara founded Tempstaff Co., Ltd. in 1973 with the aim of creating 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 an active role in line with the times.
In addition, the growth of our temporary staff is essential for them to have further opportunities towork. Our employees and temporary staff have grown synergistically based on the idea that the growthof our temporary staff must be supported by the growth of our employees. We believe that the purposeof our existence is to expand our business to benefit society through the growth of our employees andtemporary staff.

December 2019
Establish PERSOL Professional Outsourcing Co., Ltd.
Establish PERSOL Asia Pacific Pte. Ltd.

Introduction

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

July 2015
Corporate Philosophy, Group Vision “Create social infrastructure for people andorganizations that catalyzes growth and innovation” and Five Core Principles are announced
Value Strategy

January 1989
Launch DODA (currently doda), a careerchange information magazine

April 2013
Intelligence Holdings, Ltd. becomes a consolidated subsidiary
May 2010
Share of Kelly Services Ltd. is acquired
October 2008
Tempstaff Co., Ltd. and Tempstaff People Co., Ltd.
merge and jointly establish Temp Holdings Co., Ltd.

1980

2000

FY2010FY2011FY2012FY20131970s to 1980s

1990s to 2000s

2010s onward

Infancy of temporary staffing services

Period of expansion of workers’ rights and temporary staffing services

Era of diversification of work styles

1972
Industrial Safety and Health Act enacted

1993
The central government ministries designated Wednesdays as a day forleaving the office at the scheduled time in response to the widespread use of aweekly no-overtime day

1973
First oil crisis
1979
Convention on the Elimination of All Forms of Discrimination against Women adopted by
the United Nations General Assembly
1985
The Worker Dispatching Act enacted, enabling worker dispatching for only 13 specializedbusinesses
1987
Amendments to the Labor Standards Act enacted major reforms to the working hour system,
including the gradual implementation of a 40-hour workweek, and the establishment of flextime

3

1990

PERSOL Group Integrated Report 2020

1996
The Worker Dispatching Act revised to expand target businesses eligible forworker dispatching to 26 specialized businesses
1997
Ordinance for Enforcement of the Employment Security Act revised to
expand the scope of charged employment placement businesses
1998
Labor Standards Act revised to establish a discretionary working system for
managing-related work
1999
The Worker Dispatching Act revised to liberalize the target business inprinciple

2002
Percentage of companies implementing employment adjustments peaked
2004
The Worker Dispatching Act revised to lift the ban on dispatching to the
manufacturing industry
2006
The Equal Employment Opportunity Act for Men and Women revised toprohibit discrimination of both men and women and disadvantageous
treatment on the grounds of pregnancy and childbirth
2007
Labor Contracts Act enacted
Charter for Work-life Balance adopted

FY2014FY2015FY2016FY2017

Governance

1970

Changes in net sales over the past ten years

March 2006
Tempstaff Co., Ltd. is listed on the First Section of the Tokyo Stock Exchange

June 1989
Intelligence, Ltd. (currently PERSOL CAREER CO., LTD.)is founded

FY2018FY20192018
Act on the Arrangement of Related Acts to Promote Work Style Reform enacted, came into effectgradually from April 1, 20192019
Act on Promotion of Women’s Participation and Advancement in the Workplace and the Act onComprehensive Promotion of Labor Policies, Stability of Employment of Workers and Enhancement ofOccupational Life revised to strengthen measures to prevent power harassment and sexual harassment
2020
Act on Improvement of Personnel Management and Conversion of Employment Status for Part-Time
Workers and Fixed-Term Workers (Part-Time and Fixed-Term Employment Act)* and the Act for
Securing the Proper Operation of Worker Dispatching Undertakings and Protection of Dispatched
Workers (The Worker Dispatching Act) revised to prohibit the establishment of unreasonable differencesin treatment between regular and temporary workers in the same company with respect to all aspects oftreatment, including basic wages and bonuses (equal pay for equal work).
*From April 1, 2021 for small and medium enterprises

PERSOL Group Integrated Report 20204

Introduction

Top Message

Make your own job choice and work the way you like.
We aim to realize “Work, and Smile”
for everyone by 2030.
Enforcement of “equal pay for equal work” is a tailwind.
We will continue to support employment as a pillar of social infrastructure.
Introduction

Under Japan’s revised Worker Dispatching Act, “equal pay for equal work” applies to the temporary
staffing market, effective April 2020.* This revision is intended to eliminate unreasonablediscrepancies in treatment, such as those for wages, allowances, benefits and training
opportunities, between full-time employees and employees on fixed-term contracts. Looking aheadto this legal amendment going into force, we have negotiated many times with our clients regarding
fee increases for temporary staffing services. As the result, the majority of our corporate clients

Value Story

understood the situation and accepted our requests. I am certain this is because we have always
put considerable effort into developing business relationships built on trust.
In addition to contributing to the improvement of the working conditions of our temporary
staff, the amendment to the law, “equal pay for equal work,” has begun to generate new demand,such as a growing number of inquiries from government agencies and other outsourced
contracting businesses, which we expect will lead to an improvement in our profit margin.

Masamichi Mizuta

Value Strategy

However, the risk from COVID-19 will remain longer and it will take some time for the
economy as a whole to get back on its feet. If we look at society as a whole, there may be atemporary shift in the tide from the labor shortage that has been occurring.

Representative Director,
President and CEO

Nevertheless, in the expansion of COVID-19, I have reaffirmed the fact that our businesses areindispensable and have high social value because our businesses secure employment and protect
the livelihoods of working people, and we support, through our people, jobs in essential sectors
such as communications, energy, food, and logistics that cannot stop, even in times of emergency.

The fiscal year ended March 2020 was marked by brisk demand forour domestic business and rebuilding for our overseas business.

Governance

We will continue to work together as a group to create a safe and secure work environment andsystems for working individuals and contribute to the protection of both society and the economy.
*Application to small- and medium-sized companies will commence on April 1, 2021.

Trade friction between the United States and China impacted business activities in the fiscal
year ended March 2020, and signs of reduced hiring appeared in some sectors. In addition, thebusiness environment was made more challenging from the fourth quarter due to the spreadof COVID-19. Against this backdrop, demand for permanent placement services weakened

Performance Highlights

Net Sales/Operating Profit (billions of yen)

Net sales

Operating profit

970.5 billion yen

39.0 billion yen

Up 4.8% year on year

Down 11.4% year on year

44.1

but demand for temporary staffing services—our core business—was brisk, driven by Japan’s
chronic labor shortage.
For the fiscal year, the PERSOL Group recorded consolidated net sales of 970.5 billion yen
and operating profit of 39.0 billion yen. In our overseas businesses, which have been struggling,
we will work to strengthen our governance and revenue base, focusing first of all on rebuilding
our existing businesses going forward. Also of note, as the information media for part-time jobs
shifts from paper to the Internet, we have terminated our “an” business, which provided Japan’s
oldest part-time job information service, but we will continue our recruitment and employment
support business by accelerating the growth of “doda.”

33.4
28.0
517.5

Net profit attributable toowners of parent company

Annual dividend per share

7.6 billion yen

30 yen

Down 68.8% year on year

Up 5 yen year on year

FY2015Net sales

5

PERSOL Group Integrated Report 2020

591.9

FY2016

39.0

36.0
925.8

970.5

FY2018FY2019722.1

FY2017

Operating profit

PERSOL Group Integrated Report 2020

6

PeopleTechnology

Education

We propose a new way of work in
the era of 100-year lifespan.
also improve their quality of work. We believe that mastery of technology is the source of ourIntroduction

future and will help us to increase our social value.
Third, we must emphasize more opportunities for learning. Unfortunately, the culture oflifelong learning is not as pervasive in Japan as it is in other developed countries. However, amid
the increasingly fierce transformation of the employment landscape, education and training will
become essential to effectively match people to jobs. Our role will be to support individuals who
continue their learning to enhance personal value.
In addition, we formulated the Mid-term Management Plan 2023—the first three-year step on the

Value Story

journey toward realizing the Group Vision, which we aim to achieve by 2030. The new mid-term plan
will be a blueprint for establishing a platform for growth through enhanced business activities and astronger management structure. Under this plan, we will emphasize five strategies: increase social
value, increase economic value, shift to a strategic business unit (SBU) structure, identify growth

To realize “Work, and Smile,”
we formulated a Value Creation Story for 2030.

areas and strengthen business with technology.

To realize the Group Vision of “Work, and Smile,” we turned the cycle of corporate activity and social

overall policy, we aim to restore profitability and achieve record operating profit (44.1 billion yen)contribution into a Value Creation Story for 2030. We make a promise to society, which is always

in the fiscal year ending March 2023. Over the next three years, we will build a management baseevolving, constantly refine the sources of value creation that we have cultivated to date, and apply thethat will provide the resources for growth investment toward 2030 and sound management after

resulting improvements to grow our businesses. We also contribute to the achievement of the SDGs

investment, and from 2024 onward, we will aim to invest for exponential growth.

In order to realize “Work, and Smile,” the first thing you need is to be able to choose your own

The PERSOL Group promises to realize “Work, and Smile” by proposing new ways of working
and employment in the era of 100-year lifespan and contributing to the improvement of individual
work engagement.

Governancejob and work style. You can feel rewarded and responsible because you decided to do it yourself,

uncertain and thus requires flexibility in how we respond to emerging situations. In line with theValue Strategy(Sustainable Development Goals), adopted by the United Nations.

COVID-19 has changed our world and will likely continue to have an impact. The path ahead is

not because people told you to. In order to live more positively, it is very important to choose yourown work.

Overall Strategies in Mid-term Management Plan 2023

Secondly, you should be able to feel that you are helping the world or someone else. Being
needed by others gives you energy to work, and by being relied upon, you will be able to continue

Increase social value• Create “Work, and Smile” index and implement measures that will contribute toimprovement of component indicators to achieve the Group Visionthat job for a long time.
Lastly, work with colleagues you can trust. Having good colleagues with whom you can talk
openly will allow you to work transparently, and that trust will be the key to your success as

Increase economic value• Introduce ROIC and other indicators of return on capital to improve the corporate value ofthe entire Group

Shift to a strategic business
unit (SBU) structure• Position Professional Outsourcing SBU as third pillar of operations while continuing tostrengthen Staffing SBU and Career SBU, which underpin the PERSOL Group profitability• Consolidate management under Asia Pacific SBU and improve profitability throughenhanced cost synergy

telework becomes the new way of work.
There are three things that the PERSOL Group must do to promote realization of the Group
Vision.
The first is to thoroughly pursue the value of people in our core businesses, such as temporary
staffing services and job change support. While digitalization is accelerating, we believe that it isimportant to maximize the value of people.
Secondly, it is important to combine technology and people. For example, combining AI withexperienced seniors should increase the job options for the seniors that are currently limited and

7

PERSOL Group Integrated Report 2020

Identify growth areas

Strengthen business withtechnology• Actively pursue investment opportunities, including M&A, to cement Professional
Outsourcing SBU as the PERSOL Group’s third pillar of operations• Actively promote creation of new business in Solution SBU• Boost productivity and customer satisfaction through investments in digital transformation(DX)

PERSOL Group Integrated Report 20208

Value Story

Value Creation Story

Imagining the kind of world we hope will exist in 2030, we formulated a Value Creation Story. We are focusing
on five SDGs to help achieve a sustainable society and are actively working with diverse stakeholders to findsolutions to social issues.

Value Creation Story for period through 2030
OUTCOMES

Realize a sustainable society

Society that PERSOL envisions

Sources of value creation

BUSINESS ACTIVITIESHuman capitalGroup key strategy

Personnel who have been honestly
helping working individuals

Social trust built by
providing value forsociety over many years

Work environmentchanges PERSOL sees

Deep, wide and abundant connections
with customers formed throughpersonal interactions

1

Social value

2
Innovating through technologies

3
Extending our value globally

Set the vision “Work, and Smile,” make assessments and improvements

Professional Outsourcing SBU

Contribute to realization of prosperous
society based on the power of
personnel and technologies

Five Core Principles

Professional Outsourcing SBU

9PERSOL Group Integrated Report 2020

Corporate Philosophy
Providing Opportunity
Individual GrowthSocial Contribution

Offer the cutting-edge services in society
to expand personnel’s potentials

Solution SBU
Connect personnel with organizations
optimally in the Asia-Pacific region

Asia Pacific SBU

Customers/staff members
Staff members of both customer companies andPERSOL work in a way they can be themselves.

Governance

Use PERSOL’s services and act on their own to“grab work chances.”

Corporate strategies

Individuals’ working styles changewith the advancement oftechnologies in various industries.

Career SBU

Staffing SBU

Healthy financial basis forbusiness growth

Authentic
Customer-Focus
Professional
Teamwork
Innovative

Feel satisfied with and appreciation for
PERSOL’s services, and support PERSOL.

Economic value

Financial capital

Staff

Service users (including job seekers)

Connect personnel withorganizations optimally

Career SBU
People live and work longer
all over the world.

Staffing SBUPERSOL’s staff members

Abundant information on personnel
and human resources collected bystaff and companies

Business targets

Focusing on each individualBusiness domain
Intellectual capitalBusiness activities results

Value Strategy

Social relations capital

OUTPUTSSBU business strategies

We will propose new working andworkforce styles in this era wheremore people live to be 100 years old,and help improve work engagement of
every individual so our vision“Work, and Smile” can be realized.

INPUTS

SDGs

Value StoryPERSOL’s promise to society

Introduction

The PERSOL Group is working to realize our Group Vision“Work, and Smile” by creating new value andthereby meeting expectations in society.

Solution SBU
Service users
It is possible for as many individuals as
possible to build more affluent, enriched careers
in the changing and altering society.

Asia Pacific SBUPERSOL Group Integrated Report 202010

Value Story

Three Group Key Strategies to Deal With Changes in the Work Environment

The work environment is changing, spurred by such factors as technological progress. The PERSOL Group will fully
mobilize accumulated human capital, social relations capital, intellectual capital and financial capital and, in linewith the newly formulated Group key strategies, strive to realize the Group Vision “Work, and Smile.”

Management formulated Group key strategies to support realization of the PERSOL view of future society.
The employment future that PERSOL envisions will embody the idea “Work, and Smile.” Toward this end, management
formulated three key strategies for Groupwide implementation. The first is to focus on the individual and help improve work
engagement for everyone. The second is to turn technology into a strategic tool that facilitates new work styles and constructive
employment formats. The third is to utilize the insights and know-how that we have accumulated in Japan and spread the “Work,

Changes in the work environment perceived by PERSOL
Era of 100-year lifespanand Smile” concept from the Asia-Pacific region.

Advancing technologies and AI
of productivity of individuals,

we constantly review values inorganizations and society by actively

relation to work, such as rewarding

investing in areas where robots or AI

jobs, responses to diverse work styles

can replace the human workforce.

and reeducation. By supporting all

At the same time, to create a society

working individuals throughout their

where individuals live happily

lives, we will create a society where

through work, we identify andeveryone can live a fulfilling life

provide jobs in which value can becreated only through human skills.

Our promise to society

Focusing on each individual

We make priority investments in activities that contribute to increased
work engagement for all working individuals supported by PERSOL.
By asking “What is a better job?”, “What is a better work style?” and“What is a better life?” from the viewpoint of a “working individual,” wecreate and support diverse work that will shape our future.
More specifically, we provide work opportunities and insights best
suited to respective life stages, aptitude and ability of individuals. We
serve as a partner that helps working individuals not only when they are
seeking a job but for their lifelong careers, additionally supporting themin matters besides work.
We also provide individuals with learning opportunities tocontinuously give them enough career options to choose from at allstages of life.

Work-life style(time, place)

Career, work style

Types of jobs,
employment

Provide various “work” options in line with individuals’ personal preferences

Support individuals’ work style at each stage of life
Value Story

through work.

1

Introduction

We contribute to the improvement

As healthy life expectancy increases,

Continuously help individuals recognize their potential and options
Interviews,
personal records

Learning

Community

Coaching

We propose new styles of work and employment in an era when many people live to be 100 and contribute to

Sources of PERSOL’s value creation
to be working individuals, people-oriented client contacts and the trust of society.

Innovating through technologies

By making the best use of technologies and promoting digitaltransformation, we propose new styles of work and employment.
We are building an infrastructure for analyzing and utilizing
the enormous personal and corporate data we accumulated in
the past, and promoting digitalization of platform businesses
including temporary staffing and job placement to further
upgrade those businesses.
In addition, we create new businesses for the future byreconsidering the conventional values we have been providing fromthe perspective of utilizing cutting-edge technologies.

Createnew work styles
and workforce styles
Create new businesses
through digital innovation
Introduce more advanced corebusinesses via digitalization
Utilize
corporate data

Sources of value creation
Social relations capitalIntellectual capital• Personnel who have been honestly
helping working individuals• Deep, wide and abundant connections
with customers formed throughpersonal interactions• Social trust built by providing value
for society over many years• Abundant information on personnel
and human resources collected bystaff and companies

Financial capital• Healthy financial basis forbusiness growthProfessional

Teamwork

Innovative

Corporate Philosophy
Providing Opportunity

11

PERSOL Group Integrated Report 2020

Individual Growth3

Extending our value globally

We will establish a management system to provide the Asia-Pacificregion with values from Japan, which, ahead of other nations,is already facing many work-related challenges.
We will contribute to meeting social challenges around the world
to realize our Group Vision “Work, and Smile.”

Five Core Principles
Customer-Focus

Utilize
personal data

Develop foundation for data use

Human capital

Authentic

GovernanceSources of value creation that PERSOL draws on to expand its business activities include people who are sincerely committed

2

Value Strategy

the improvement of work engagement for all individuals, thereby realizing “Work, and Smile.”

Strengthen business andmanagement base in
the Asia-Pacific region

2023

Improve local businessin the Asia-PacificregionProvide greater value forareas outside the AsiaPacific region

2030

Social Contribution

PERSOL Group Integrated Report 2020

12

Value Story

Sustainability Policy

INTERVIEW

SDGs that PERSOL can contribute to achieve andunderlying sustainability policy

We will contribute to achieving SDGs bycreating a society in which everyone can worksafely and securely.

We will contribute to achieving SDGs through business activities designed to realize the Group Vision “Work, and Smile.”

Sustainability Policy

Hirotaka Mino

Seeking to underpin the development of a sustainable society reinforced by its corporate philosophy that highlights“Providing Opportunity, Individual Growth and Social Contribution,” the PERSOL Group connects withdiverse stakeholders and actively addresses social issues. With 2030 as our destination year, we are promoting

Introduction

Executive Officer CHRO,
Responsible for Corporate Strategy and
Human Resourcesbusiness activities designed to realize the Group Vision “Work, and Smile” and contribute to achieving SDGs.

Five priority issues identified by PERSOL
We emphasize five SDGs as priority issues, and we also contribute to achieving

SDGs 8.2

SDGs 8.3

Sustainableeconomic growthHigher economic
productivity

Create jobs
that motivate

Society overall

SDGs 8.5

SDGs 8.6

SDGs 8.8

Motivating jobs
for everyone

Higher employment
rate of young people

Ensureworkers’ rights

In 2015, the PERSOL Group made a major shift toKeen to realize the Group Vision, the PERSOL Group“integrated group management” going in the same

teamed up with Gallup, Inc.* in the fiscal year ending Marchdirection for the entire Group. Today, the Group is moving

2021 and began measuring the level of “Work, and Smile”

steadily forward to realize “Work, and Smile” by 2030.

worldwide. The Gallup World Poll data is highly trusted,

The entire Group supports a concerted effort to contributeoften quoted by international organizations, including theto developing a society in which all working people canUnited Nations, and used in research pursuits around theenjoy working. For us, as a corporate group, the recently

world. Going forward, we want “Work, and Smile” to takedeveloped “Value Creation Story” functions as a road map

root not only in Japan but also globally, through utilizingthat keeps us on track toward our destination. We believe

data from this survey to study the value brought to societythat with this clear road map, the entire Group will moveby “Work, and Smile” and raising the awareness andforward as one.

perception of such value worldwide.

Contributing to achieving SDGs throughbusiness activities and working towarda sustainable society

indicators for each SBU to promote greater progress on

From the 17 goals decided by the United Nations, we have

only enable us to visualize progress but also reinforce theselected five priority goals that we can contribute to achieveidea that steady improvement toward goals fuels growth

directly through our business activities, and we haveat the SBU level. In the same way, we will start measuring

incorporated them into our “Value Creation Story.”

the level of “Work, and Smile” for PERSOL employees

Value Strategy

SDGs 8.1

In each SBU and in the world, we began
measuring the realization of “Work, and Smile.”
Value Story

all 17 SDGs through supporting the growth of people and creating jobs.

The “Value Creation Story,” a road map for theentire PERSOL GroupIn addition, the PERSOL Group introduced new

SDGs 5.5

Develop resilient
infrastructure

Empower women

Create next-generation work styles and jobs
SDGs 9.5

SDGs 5.bPromote industrial
development

Utilize technology
to enhancecapabilities of
women

Individual customers
Corporate customers
Build a foundation for economic activity
and promote innovation

Encourage greater participation of
women in the workplace
SDGs 10.2
Promote social,economic andpolitical inclusion

PERSOL employees“Work, and Smile” for individuals and corporate clients,
which utilize every type of service. These indicators not

Also, the PERSOL Group supports clients across afrom the fiscal year ending March 2021, in order to build

wide range of industries through its people, so it’s not

a company in which each employee can continue to work

an exaggeration to say that we are indirectly involved

with enthusiasm, and to promote the realization of “Work,in all 17 of the SDGs and 169 specific targets to achieve

and Smile” internally and externally.

them, by providing the companies with the talent theyneed. Using our ties with diverse stakeholders, we will

Governance

SDGs 9.1* Gallup, Inc.: the U.S.-based company that conducts opinion polls and offers strategic
consulting services worldwide through co-creation with a huge pool of experts

leverage business activities geared toward realizing theSDGs 4.4

SDGs 10.7

Improve skills forsecuring jobs
that motivate

Well-managed
policies for humanresources
overseas

Providing Opportunity
Individual GrowthGroup Vision “Work, and Smile” and raise both social
value and economic value, while doing our utmost tocontribute to achieving the SDGs.

Social Contribution
Provide learning opportunities

Provide job opportunities for everyone

The PERSOL Group supports the Sustainable Development Goals (SDGs).

13

PERSOL Group Integrated Report 2020

PERSOL Group Integrated Report 202014

Value Story

Examples of Value Creation

Diversity, Inclusion & Equality
Case study

Turning all kinds of differences into future potential

Expand employment for disabled through alliances with local governments

Building the PERSOL DI&E SPIRAL from perspectives of
attributes, a sense of values and capabilities

Understand diversity correctly

diversity in

Recognize unconscious bias

Through literacy training that

attributes

in oneself
By enabling teams andorganizations to recognize theprovides a basis forunderstanding diversity in
attributes, we will enhance theexistence of latent unconscious

level of basic knowledge of teams

bias, we will turn awareness intoand organizations.

a common approach to eliminate
the bias.

Accept diversity ina sense of values
Create opportunities
We will improve the work
atmosphere, add diverse

Promote individuality
We will support our employees
in their constant growth bycontinuing to refine theirpersonal skills through theirown development.

capabilities, create environmentsthat easily generate synergy andinvigorate the corporate culture.

Utilize diverse

capabilities

Realize vision
Nurture new wisdom

Embody corporate
philosophy

Create new services

Note: DI&E: Diversity, Inclusion & Equality

1 Cookie production at Yokohama

Yume Kobo
2 Tomioka Mayu Kobo, revitalizing thesericulture industry, whose activity has
been reduced by the advancing age ofsilk producers
3 Yokosuka-Miura Misaki Kobo, helping
to mitigate the shortage of workers on
local farms

3

Case study

Measures to ensure correct understanding of diversity and develop diverse capabilities
Within the PERSOL Group, we have put in place various measures that
underpin respect for different attributes and different values, promotemutual understanding and develop strengths. For example, across theGroup, we run training programs to provide information on sexual
minorities and are involved in Ally initiatives to support and encourage
understanding of members of the LGBT community. In addition, someGroup companies have implemented the FLASH system, which allows
employees to choose the number of days and hours worked, the work
location and time off, and introduced flexible personnel programs suchas lifting the ban on side jobs, eliminating the dress code andpromoting various work options.

*Unconscious bias is an underlying prejudice or belief that an individual unknowingly has.

Outline of FLASH system
Number ofdays

FamilyLearning(raising children,
caring for elderly andsick persons)(postsecondary
education,
overseas study)

Hours

Location

Avocation(hobbies,
leisure activities)

Time off

Social(community
involvement,social activities)

Health(treatment,
long-term care)

あたり

FLASH is a system allowing the freedom
to choose the number of days and hours
worked, the location and time off.

Rainbow-colored flag at the reception desk
symbolizing Ally initiatives

1

2

GovernanceFour key points in training• Understand the concept of PERSOL Group’s DI&E
• Understand diverse attributes and diverse values• Understand unconscious bias* and be aware of possible personal
unconscious bias
• Using the above, develop skills—notably, communication and leadership—
to facilitate cooperation with diverse people

Strengthen
existing services

2

Value Strategy

All employees who work within the PERSOL Group needto understand the concept and possess basic knowledge
about DI&E, and we conduct literacy training that hinges on
the four points described below. In the fiscal year ending
March 2021, we used an e-learning program to offer
literacy training involving 25,000 employees at 30 Group
companies in Japan. Employee satisfaction, understanding
and resonance with the Company’s stance on the DI&E
concept exceeded 85% when the e-learning program wascompleted.

Understand1

Value Story

Implementing literacy training to instill idea of DI&E

PERSOL DI&E SPIRAL

Introduction

To create a society in which everyone fully embraces the“Work, and Smile” concept, we ourselves must accept
and acknowledge diversity in our own actions and knowthat employees’ activities brimming with diversity are
indispensable to our future.
To draw on the strengths of employees with all theirdiversity, we looked at diversity from three perspectives—
attributes, a sense of values and capabilities—andlaunched DI&E actions to promote progress in “Work, andSmile.” This basic concept is expressed as “PERSOL DI&E
SPIRAL” and we intend to create a corporate culture thatgenerates a positive cycle.

Keen to develop the market for employment opportunities geared
toward people with disabilities, the PERSOL Group has achieved thehighest number of job placements for the disabled in Japan. Of
particular note, we are unique in the approach to local issues and labor
shortages through employment growth within the PERSOL Group. For
example, in Tomioka, Gunma Prefecture, we opened the Tomioka Mayu
Kobo—a silkworm workshop—to revitalize the sericulture industry,
which had been in decline due to the advancing age of silk producers.
We also support agricultural sectors, specifically, on the Miura
Peninsula, Kanagawa Prefecture, and in Tondabayashi, Osaka
Prefecture, which have suffered from labor shortages, and run the
Yokosuka-Miura Misaki Kobo as well as farms that employ people withdisabilities. In addition, we team up with local governments, mainly inmetropolitan areas, on work transfer support projects that provide
training to the disabled to help them find jobs. The PERSOL Group is
keen to help more disabled people enter the workforce.

Case study

Overseas activities

Diversity, Inclusion & Equality in the PERSOL Group
Dating back to its earliest days, the PERSOL Group, including its founder, has been aportal for empowering women in the workplace. To date, the Company has
spearheaded many opportunities for training related to DI&E as well as opportunities
for dialogue. However, activities must be repeated and executed widely, inside andoutside the Company, with an understanding of DI&E. In addition, I look forward toseeing a higher ratio of women in management positions. As of June 2020, most of
the directors on the Board at PERSOL were composed of Independent Directors, and I
appreciate the Board’s effectiveness in participating in deliberations and decisions
from an independent standpoint based on diverse perspectives and backgrounds, aswell as the management’s openness to different ideas.
I plan to be involved in helping each and every employee gain a deep awareness of
the Group Vision “Work, and Smile” and the Group’s policy on DI&E, and I will help
PERSOL contribute to realizing a sustainable society.

15

PERSOL Group Integrated Report 2020

INTERVIEW

Chisa Enomoto
Independent Director(Member of Supervisory Committee)

We are involved in various activities in the Asia-Pacific.
PERSOLKELLY provides career counseling in Bangalore, India, tohigh-school students from families with limited financial resources.
In Singapore, we hire disabled people to work as customer service
staffs.
Programmed is also involved in various activities, including
providing job opportunities for Aborigines, Torres Strait Islanders
and other indigenous peoples of Australia, and being an official
supporter of FlexAgility, which promotes flexible and agile work
styles for employees.

1 Career counseling at CHRISTEL

3

HOUSE INDIA—Non-Profit organization
educating youths in poverty
2 A disabled person employed working as
a customer service staff
3 Providing job opportunities forindigenous people

PERSOL Group Integrated Report 202016

Technology
Case study

Solving social issues using information technology

Designing for utilization of drone technology to solve social issues
As the accelerating shrinkage of the labor force heightens the needfor utilization of drones by companies and local governments, PERSOLPROCESS & TECHNOLOGY offers services to support the utilization ofdrones, ranging from process design to operational support.

Case study

RPA initiative to solve labor shortages

lity standaard

One-stop support from introduction to stabilization
Inspection/remote monitoring
PERSOL PROCESS & TECHNOLOGY
Client company

Stabilization

Hands-on training
RPA assessment training

Support for governancedevelopment
RPA robot welcome party

Operation

Consulting/training
RPA introduction support

Development

Preparation for
introduction —introduction

RPA development support
Regular on-site support/
remote supportand mitigation, support for residents of rural areas and rural
revitalization, by expanding the expertise obtained through thedemonstration experiments into other regions and prefectures
facing similar issues.

Drone used by local leaders in the demonstration experiment

Case study

Building an environment for the hiring and cultivating of high-level security engineers
The acceleration of digital transformation is increasing the needfor security engineers, against a backdrop of expanded use of IT
in various businesses and concerns over information security
risks that may threaten even the continuity of companies andbusinesses. Under these circumstances, KDDI Digital Security Inc.
has supported a diverse array of companies in the KDDI Group
with security measures ranging from consulting to operations
support, but has had difficulties finding security engineers.
To solve this issue, KDDI Digital Security began building anenvironment for the hiring and cultivating together with PERSOLTECHNOLOGY STAFF, which works in engineer staffing. We begancultivating high-level security engineers. PERSOL TECHNOLOGYSTAFF not only provided hiring support, but also built a nurturing
environment enabling noticeable skill improvements throughcomprehensive support that includes mid-term personnel
planning, post-assignment training, and support for skill
improvement and career advancement based on periodic goal
management after starting operations.
As a result, we have succeeded at producing a large numberof engineers involved in security.

Governance*1 A mechanism to guarantee who agreed to what, and when, through electronic data by
replacing the traditional method of stamping on paper and timestamps (a technology toprove that a particular piece of electronic data existed at a particular time and the data
has not been tampered with since).
*2 Optical Character Reader/Recognition. It is a process for recognizing the text portionsof a digital image and converting them into text data. The technology involves scanning
paper documents and digitizing the words on the documents using character recognition.
Combining OCR with AI technology improves the accuracy of character recognition throughmachine learning and enables items to be extracted without designing a form format.

PERSOL PROCESS & TECHNOLOGY has established a drone
consortium jointly with drone companies and a dedicateddisaster-prevention agency in Jinsekikogen-cho, Hiroshima
Prefecture, with the goal of disaster prevention and mitigation.
The purpose of the consortium is to contribute to the
local community by using drones to solve issues faced byJinsekikogen-cho, such as taking disaster countermeasures anddelivering materials, with prospects for local residents to createa sustainably secure community with their own hands.
The consortium’s demonstration experiments, whichbegan in the fiscal year ended March 2020, are scheduled tocontinue beyond 2020 with activities aimed at bringing drones
into practical use in Jinsekikogen-cho. We will work to solve
social issues throughout Japan, including disaster prevention

PERSOL TECHNOLOGY
STAFFRegistration

Registered engineer

Training

PERSOL Group Integrated Report 2020

Combining these services with RPA is expected to enablefurther automation of operations, accelerating the diversificationof work styles and improvements to productivity.

Deliveryt

Value Strategy* WinActor® is a registered trademark of NTT Advanced Technology Corporation.
UiPath is a registered trademark of UiPath Inc.

er suppor

Value Story

In order to ensure that the quality of support does not fall inthe online setting, we have renewed our service delivery methods
and content with an emphasis on on-site availability andenhanced follow-up to participants.

Technical HR

provider& us

Establishing a consortium to solve community issues

Support17

Drone serv
ice

PERSOL TEMPSTAFFPERSOL TECHNOLOGY STAFF

Using RPA to approach a variety of issues
In order to enable diverse work styles, including teleworking andworking from home, companies face the challenge of building out
a remote-work environment and transforming their operations to
use the cloud.
Even companies that had already been digitalizing theiroperations have an increased need to change to RPA tools thatallow robots to operate in a remote environment, electronicstamping, and cloud tools that can convert paper information into
data without scanning.
PERSOL PROCESS & TECHNOLOGY has launched introduction
12and stabilization support for digital contracts* and AI-OCR* .
They ease the physical limitations of paper and stamping, which
are expected to result in the optimization of operations.

rd

Skill standConducting RPA introduction training online
PERSOL PROCESS & TECHNOLOGY provides WinActor® and
UiPath RPA introduction training as part of its RPA introduction
support. The COVID-19 pandemic has raised interest among
many companies in teleworking and methods of non-face-to-facecommunication. PERSOL PROCESS & TECHNOLOGY responded bylaunching online training so that this training can be taken
anywhere, whether from home or at remote sites.

あたり

Service qua

RPA introduction process

Introduction

Robotic Process Automation (RPA) has been gaining attention
against a backdrop of hiring difficulties caused by labor
shortages, as well as a heightened awareness of improving
productivity. Although a variety of RPA tools are employed inEurope and the United States, there has not been muchprogress in the development and introduction of these systems
suited to Japanese companies despite the strong need for RPA
in Japan, due to a lack of expert engineers. PERSOL PROCESS &TECHNOLOGY responded to this situation by establishing a
dedicated RPA organization in 2017. In 2019, three Group
companies (PERSOL PROCESS & TECHNOLOGY, PERSOLTEMPSTAFF and PERSOL TECHNOLOGY STAFF) launched
PERSOL’s RPA introduction support service as an RPA service
brand.
We have formed business alliances with a wide range ofpartners working on RPA tools to offer one-stop total solutions
from consulting to development, introduction and operations
support.

Hired

KDDI Digital Security
Step up in line withexperience and choices

Security systemengineerContinue working
as an employee of
PERSOL TECHNOLOGYSTAFF

Incident handler

Starting
work

Work at another
Security analyst

company throughPERSOL TECHNOLOGY
STAFF

Employee engineer

Up to three years

Hired byKDDI Digital Security

Engineers without
security experience

Hired by anotherAcquiring certifications
Career design

Periodic follow-up by
career advisors

security-relatedcompanyPERSOL Group Integrated Report 202018

Community Vitalization/Rural Revitalization

Surveys and Research

Creating local employment and solving labor shortages

Seeking to promote work style reform andimprove the happiness of working people

Case study

Case study

Supporting recruitment by SMEs through partnerships with local banks and credit associations

Data reveals the realities, challenges and solutions of telework

The decline in the number of young people in Japan and the flowof the population into the cities are making labor shortages anincreasingly severe problem for small and medium enterprises(SMEs) in rural areas. In addition, many SMEs do not havededicated hiring departments, making it difficult for them toexpress their appeal effectively.
The PERSOL Group is partnering with local banks and credit
associations (Shinkin Banks) that finance rural SMEs to developa scheme to solve the hiring problems of their SME clients.
The PERSOL Group is helping SMEs throughout Japan tosecure human resources in response to hiring issues passedon through financial institutions, by providing a comprehensive
and optimized service tailored to each client’s issue, suchas permanent placement, direct recruiting and utilizationof advisors. We help to resolve the management issues andsupport business growth of SMEs.

Telework has swiftly permeated corporate consciousness since
the spread of COVID-19. PERSOL RESEARCH AND CONSULTING,
which functions as a think tank for the PERSOL Group, hasconducted large-scale surveys on telework three times on thepremise that access to the latest data would support work
benefiting corporate management, society and individuals to ahigher degree. The telework utilization rate (national average)
for regular employees after the state of emergency was
declared in mid-April 2020, reached 27.9%, up 2.1 times frommid-March. However, in late-May, when the state of emergency
was lifted, the utilization rate dropped 2.2 points, to 25.7%,
indicating that people were already distancing themselves fromthat work style.
However, telework has major benefits for companies andindividuals, not only to prevent the spread of COVID-19 infection,
but also to increase labor productivity and ensure diversity
in work style by eliminating unnecessary office attendance.
Through numerous media exposures, including quantitative
data on the actual conditions and challenges of telework, andanalysis and solutions by highly knowledgeable researchers,
we have provided society with information useful for theestablishment of telework.

Rural SMEs

Provide optimized humanresource services

Local banks/
Shinkin Banks

Case study

PERSOL Group Integrated Report 2020

Utilization rate
-2.2ptTeleworkers

27.9%

Teleworkers

25.7%

Utilization rate
2.1 times
Non-teleworkers

86.0%

Non-teleworkers

70.3%

72.3%

Operations notsuited to telework

Operations notsuited to telework

Operations notsuited to telework

0.8%

1.7%

2.0%

Regular employees
n=21,448

Regular employees
n=22,477

Regular employees
n=20,000

Non-teleworkers

あたり

Identify needs of professional
human resources
Support matching

Follow-up

Strategic professional humanresource bases

Connect andcoordinate humanresource needs

Case study

Joint research project on happiness of working individuals
PERSOL RESEARCH AND CONSULTING teamed up with theresearch lab run by Takashi Maeno, a professor at Graduate
School, Keio University, on a project to measure the happinessof working individuals. The study focused on the happinessof working individuals and explored new management
indicators and ways of organizational management. Assumingthat happiness and unhappiness in working situations are
independent concepts, we identified seven factors of “happy
people” and “unhappy people” and developed a diagnostic tool
to measure them.
A tangible feeling of happiness that people gain throughworking can affect not only individual performance, but also
overall performance of an organization and year-on-year
improvement in sales. The researchers obtained statisticalevidence that would support the validity of such efforts bycompanies to improve the subjective happiness of employees.
Going forward, diagnostic tools will be applied extensively tohelp make working individuals feel happier while also boosting
corporate value.

Seven factors that bring about happiness/unhappiness in working individuals

Governance

19

Create company
information sheets

Encourage transition toaggressive management

Match professional human resources*Numbers of consultations and contracts are for the project as a whole (as of August 2020).

13.2%

Rural SMEs

On-site interviews

In 2016, the Secretariat of the Headquarters for Overcoming
Population Decline and Vitalizing Local Economy in Japan, Cabinet
Secretariat, launched the Professional Human Resource Project,with the aim of rural revitalization.
This project set up strategic human resource bases in 45
prefectures, and the managers are former executives of local
financial institutions, people with experience in the commercial
and industrial sectors of prefecture office, and other people witha knowledge of the local industry. There is a significant numberof people around the country who want to contribute to ruralcommunities, people who want to return to rural communities
after living in a city, and people who want to move to a ruralcommunity for caregiving and other reasons, if there is a job thatallows them to use their skills.
Each base proposes growth strategies to companies, suchas starting new businesses and developing new sales channels,
and provides support including defining the requirements for the
professional human resources the companies need.
The PERSOL Group has been working with each base to
introduce talented professionals who want to work in ruralcommunities.
The number of consultations and contracts in this effort isabout 50,000 and 10,000, respectively, and a large number ofprofessionals are active in rural companies.

Teleworkers

Value Strategy

Participation in Professional Human Resource Project by Cabinet Office, Government of Japan

After state of
emergency lifted
May 29–June 2

Value Story

Client introductions

After state of emergency declared
in seven prefectures
April 10–April 12

March 9–March 15

Introduction

Consultations on humanresource issues

Changes in telework utilization rate

Seven factors
Seven factors of happiness inworking individuals

Seven factors of unhappiness inworking individuals

Personal
growthSelf-reproachRoleawareness
Personal
relevance

Personal
discretion“I’m no good”
perspective

New learningHappy

My own pace

Refreshed

Overwork

Taking a break

Burn out

Teamwork
Following same
path together

Feeling ofalienation

Unreasonable
requests
Harassment

Unhappy

Lack ofcooperation

All alone

Disjointed
workplaceengagement

HelpingothersApprovalfrom others

Evaluation
dissatisfaction

Unpleasantspace

Do something forsomeone else

Recognition ofefforts

Efforts not
rewarded

DislikeenvironmentPERSOL Group Integrated Report 202020

Value Strategy

CFO Interview

INTERVIEW

With strict financial discipline basedon a solid financial base, we will work
toward sustainable growth.

Executive Officer CFO

Management Plan 2023. We also plan to apply International

to maintain overall asset efficiency and linkage with an

Financial Reporting Standards (IFRS), effective from theequity ratio of at least 35%.

fiscal year ending March 2024, reflecting the fact that
already and more than 40% of our shareholders are

Rigorous discussion by new Investment Committee,
robust investment for organizational growthoverseas investors. IFRS-based information disclosure is

We have established an SBU structure, effective fromregarded as beneficial for stakeholders and, by applying

the fiscal year ending March 2021. We are centralizing

IFRS groupwide including our overseas subsidiaries, there

departments previously active in different areas and looking

is the merit of coordinated benchmarks and timing forto reveal synergies from the new structure. Investment ingauging financial status on a consolidated basis.

training and carving out a career path are vital to enhance

approximately 30% of sales come from overseas operationsorganizational capabilities under the new management

emphasized a stable dividend, but going forward, has

structure. Deepening existing business areas is also

been shifted to pay a dividend based on payout ratio.

important, and investment in digital transformation (DX) is

Specifically, with a view to future IFRS disclosure, we set

key. The PERSOL Group’s DX investment will be directed

the payout ratio at 25% of adjusted EPS, which is similar toalong two routes. First, the existing human resources

profits, as booked under IFRS. Adjusted EPS excludes theservice model is straightforward, so we can use IT totemporary impact of extraordinary income/losses on net

enhance simplification and speed to boost efficiency. We

profit before amortization of goodwill, so we can raise thewill actively promote capital investment and increase

payout ratio and maintain stable dividends. Our historical

productivity. Second, each SBU will pursue DX investment

and economic trends are unclear, we have decided that it

payout ratio based on adjusted EPS was between 15%

to provide optimum solutions to corporate clients as well asis necessary to take a more flexible view of the timeline

and 20%. We will enhance return to shareholders with anmarkets and thereby raise client satisfaction.

for implementing planned measures in order to respondincrease in payout ratio.

As a core of our new Mid-term Management Plan, we

appropriately and quickly to changes. We came up withTo increase corporate value, it is important to makeformulated the Value Creation Story for 2030, built upon thea scenario where necessary investment continues overeffective use of groupwide resources and manage the

newly set up the Investment Committee to act in an advisoryidea of a deeper sense of work engagement for individuals

the three years while building a management platformbusiness portfolio continuously and optimally. The allocationbody to the HMC (Headquarters Management Committee;

through proposing new work styles and employment toto support stable and constant growth aiming to achieveof management resources hinges on a trade-off—finding

equivalent to the management committee), effective fromrealize the Group Vision “Work, and Smile.” To date, we

exponential growth from the fiscal year ending March 2024

the right balance between mature markets, like Japan’s

the fiscal year ending March 2021. This committee includes

have been focused on single-year profits and profit-and-onward. In addition, to prepare for possible uncertainty

labor market, and ASEAN markets with outstanding growthoutside experts, discusses M&As of a certain scale and put

loss status. However, to achieve the Group Vision, we mustin economic and business conditions, we took out 20.0

potential, or, deciding if businesses that deliver short-them on the agenda to the HMC. Already, M&A deals in theemphasize social and economic value over the mid- tobillion yen in bank loans in March 2020 and maintainterm profits should be prioritized over businesses thatpast were reviewed and evaluated for performance, andlong-term, and shift to management practices that makecash and deposits of approximately 72.0 billion yen as ofcreate long-term value. We must always keep balance

new M&A deals are discussed. The Investment Committee

this possible. Currently, COVID-19 is having a huge impact

September 30, 2020. We are drafting a backup strategy as

in mind while pursuing investment in growth areas. With

will look beyond financials, organizing know-how on

on our business activities not only in Japan but also inwell that includes fund procurement and we believe thatregard to the balance sheet management, we must seek

investments and capital efficiency to each business unit.

the Asia-Pacific region. Consequently, we must ensure

our financial base remains healthy with an equity ratio ofa streamlined and efficient balance sheet on a groupwide

Over the three years, we will appropriately apply capital

approximately 40%.

basis. In our business pursuits, we will take a robust

efficiency and other measures not as concepts but asapproach to prior investment for growth while investing injudgment tools to consider our actions in each businessexisting businesses. We will, however, strive to keep thedomain. Going forward, we will continue to monitor

assets light, mainly by taking assets off the balance sheet.

management to ensure proper governance and promote

on hand to implement measures that would support

Switch to financial policy emphasizing returnon capital and establish stronger, highly agile
financial baseAlso, we recognize that a solid, highly agile financial basegrowth prospects under strict financial management.

business continuity even during the COVID-19 pandemic.

Mid-term Management Plan 2023 highlights a shift tois one of the PERSOL Group’s strong points, so even fromfinancial policy emphasizing return on capital to raise

the perspective of responding to changes in the operating

stable services to many corporate clients. Our effortsemphasize stabilizing our financial base and raising liquidity

Core points from discussions on Mid-term Management
Plan 2023, a three-year plan running to the fiscal year

corporate value. We made ROIC* a key indicator and set

ending March 2023, with a view to 2030, targeted

the minimum level of 10% as of the end of the fiscal year

PERSOL Group Integrated Report 2020

In investment activities, in a sense, strict financial
discipline will be essential for sound decision-making. We

Governancepersonnel and staffs while laying a foundation for providing

Value Strategy

responses to the changing business environment. As social

Value Story

In regard to return to shareholders, our policy had

Considered responses to changing environmentand sustainability of business in formulating
financial strategies for new Mid-termManagement Planthe employment and safety of employees such as Group21

environment and ensuring health and stability, we will aim

Introduction

Kiyoshi Seki

ending March 2023, which is the final year of Mid-term* Anticipating introduction of IFRS in the future, the PERSOL Group calculates ROIC as “net operating profit after tax before amortization of goodwill / invested capital (= interest-bearing liabilities+ equity capital)”PERSOL Group Integrated Report 202022

Value Strategy

At a Glance

SBU Core Company/Representative Companies/
Examples of Handled Brands

Features/Business Models

The PERSOL Group is engaged in a wide range of services
aimed at realizing “Work, and Smile” in various businessdomains, by sincerely and closely assisting working

The PERSOL Group shifted its business segment structure

Temporary staff

Job applications
Employment contracts/salary payments

Introduction

Labor supply contracts/
staffing fee payments

Employment contracts

Shifted a business segment structure toan SBU structure

Temporary staffing (clerical work, research, clinicaldevelopment, sales, light work)
Outsourcing (clerical work, government office contract business,call centers, helpdesks, CRO, manufacturing)Temporary job placement ahead of permanent employment/
permanent placement

The Staffing SBU optimally connects people
and organizations mainly through temporary
staffing and outsourcing services. With PERSOLTEMPSTAFF at its core, the Staffing SBU provides
comprehensive temporary staffing services thatencompass a wide range of fields from clerical
work to specialized fields, as well as outsourcing,sales support services and temporary job
placement ahead of permanent employment/
permanent placement businesses.

Provision of labor

have been created with our people as the starting point.

PERSOL TEMPSTAFFPERSOL Panasonic HR PARTNERSPERSOL Panasonic FACTORY PARTNERSPERSOL MARKETINGPERSOL WORKS DESIGNWork instructionsindividuals and with the customer contacts and trust that

Staffing SBU

Hiring applications/recruitment fees (when a contract is entered)
Outsourcing contracts

Client companies

Temporary staffing
Outsourcing
Permanent placement

Introduction

to an SBU (Strategic Business Unit) structure in April 2020.
Under the new SBU structure, we have delegated decisionmaking authority over business execution to each SBU to

are also integrating our management structure in overseas

Job applications

Introduction

Hiring applications/recruitment fees
(when a contract is entered)
Advertisement listing applications/advertisement listing services
Career transition (outplacement) support outsourcing contracts

Hiring companies

Permanent placement
Career change media
Career transition (outplacement) support

Specialized Services

Outsourcing (IT, business)
Digital solutions, system development
Business consulting
Engineering (design and experiment)
Temporary staffing (IT, engineering)

PERSOL Professional Outsourcing
PERSOL PROCESS & TECHNOLOGYPERSOL RESEARCH & DEVELOPMENTPERSOL TECHNOLOGY STAFF

We offer highly specialized services that are unique tothe PERSOL Group, including PERSOL RESEARCH AND

The Professional Outsourcing SBU contributes
to the creation of a prosperous society throughthe power of people and technology. WithPERSOL Professional Outsourcing at its core,
the Professional Outsourcing SBU is engaged
in businesses that includes not only temporary
staffing in IT and engineering, but also the highly
specialized areas of design, development andexperiment of hardware and software, as well as
business consulting.

Labor supply contracts/staffing fee payments

Temporary engineers
Provision of labor

Value Strategy

Providing high-level human resource andorganizational consulting as well as educationand training

Professional Outsourcing SBU

Value Storybusinesses to create Group synergies.

Job seekers

Provision of information over the Internet

Employment
relationships

Outsourcing SBU to strengthen our specialized areas. We

Permanent placement (mid-career, new grad recruitment)
Career change media, direct recruiting
Executive and advisory placement
Outplacement support
Career training

Provision of career transition (outplacement)
support services

Applying for jobs

our businesses and newly established the Professional

The Career SBU optimally connects people andorganizations through permanent placement andcareer change media. The Career SBU provides
a wide range of recruiting services centered on
PERSOL CAREER, including permanent placement
services, recruiting media operations, careerchange and employment support, government
office employment support, and recruitment andmanagement support.

Employment contracts

speed up the execution. Furthermore, we have integrated

Career SBU

PERSOL CAREERWork instructions

Employment
contracts/salary
payments

Client companies
Corporate clients

Outsourcing contracts

Temporary staffing of engineers, etc.

Outsourcing

CONSULTING, which conducts surveys and research
related to organizations and human resources; PERSOL
training services centered on the development ofpeople, organizations and management; and PERSOLCHALLENGE and PERSOL THANKS, which provide
employment services for the disabled.

Solution SBUPERSOL INNOVATION

Digital solutions(employment, human resources management, education)
Incubation programs

ServicesPERSOL RESEARCH AND CONSULTING,PERSOL LEARNING INSTITUTE, PERSOL CHALLENGE,PERSOL THANKS, PERSOL FACILITY MANAGEMENT,PERSOL INNOVATION FUND, PERSOL Global Workforce

23

PERSOL Group Integrated Report 2020

Temporary staffing
Permanent placement
Equipment/facility maintenanceOutsourcing
Human resource management consulting
Education/training

PERSOL Asia Pacific
PERSOLKELLY
Programmed Maintenance Services

The Asia Pacific SBU optimally connects people
and organizations in the Asia-Pacific region
by fully leveraging the business resources of
PERSOLKELLY and Programmed. In addition totemporary staffing and permanent placement,
the Asia Pacific SBU offers a wide range ofequipment/facility maintenance services,
outsourcing services and HR management
consulting services.

A wide range of services that go
beyond existing domains

Corporate Clients

Service usage fees
(Subscription, pay-as-you-go, pay-for-performance, etc.)

Job seekers in eachcountry and region

Job applications
Employment contracts/salary payments

Introduction

Equipment/facility maintenance services

Employment contracts
Provision of labor

Core Company/Representative Companies

Asia Pacific SBU

Service users
Digital solutions in the HR field

Work instructions“Think tank” services
Human resource/organizational consulting
Education/training
Employment of the disabled
Corporate venture capital
Global human resource placement

The Solution SBU expands the potential of peopleby transforming cutting-edge technologies into
services with solutions premised on the utilizationof digital technology, including a career change
app and a Cloud POS system. The core company,
PERSOL INNOVATION, promotes the creation of
new businesses and open innovation from a wide
perspective that is not bound by existing businessdomains.

Governance

LEARNING INSTITUTE, which provides consulting andService usage fees
Outsourcing contracts
Labor supply contracts/staffing fee payments
Hiring applications/recruitment fees (when a contract is entered)Temporary staffing/permanent placement
Equipment/facility maintenance services

Outsourcing

Corporateclients/clientcompanies

PERSOL Group Integrated Report 202024

Value Strategy

Business Overview by SBU

Staffing SBU

Career SBU

Takao Wada

Taro Mineo

Director, Deputy President and Executive Officer,
Staffing SBU Lead

Executive Officer,
Career SBU Lead

Utilize solid business foundation to promoteenhanced work engagement for individuals

Risks

Creating diverse employment
opportunities, expanding
corresponding job types andstrengthening permanent
placement business
Strengthening solution-style
approaches, such as outsourcing
business

Due to COVID-19, a reduction inorders and a lower operating rate,a dramatic and rapid increasein contract terminations, andthe appearance of absencecompensation

60%

510.1

473.2

23.8

21.4

17%

FY2019Net sales
Operatingprofit10%FY2018
ClericalPPG

FY2019Marketing
R&D

BPO

Initiatives in Fiscal Years Ending March 2021 and 2022

Implement growth initiatives that maximize technology
Responding to equal-pay-for-equal-work legislation, we willpropose new schemes for utilizing human resources, while
also maximizing strengths, namely, a reputation for highquality, high-value-added services based on accumulated
outsourcing know-how and the ability to achieve quick deliveryof staff to execute large projects. Taking advantage of thesestrengths, we will reinforce our management structure
through the use of technologies. By selecting and maximizing
the use of evolving technologies, we will increase the value of
people and improve the productivity of our operations.

The core company of the Career SBU (formerly, the Recruiting
Segment) is PERSOL CAREER, and the business emphasis
is on optimized connection of people and organizations. The
Career SBU handles permanent placement, career change
media, direct recruiting, executive and advisory placement andoutplacement support businesses. Drawing on the PERSOLGroup’s solid corporate client base as well as the brand powerof “doda,” which marks its 32nd year of services this year,
the Career SBU has maintained high profitability. However,our business performance for the fiscal year ending March
2021 is temporarily impacted by COVID-19. We will takeour labor-intensive approach to increasing customer value
and improving business processes to a level of competitive
advantage through a “human resources × data” hybrid
approach that thoroughly utilizes data.

Opportunities and risks
Opportunities

Risks

Structural labor shortage in Japan
Emerging new needs to address
online hiring and online matching ofjobs and job seekers
Growing need for work styles,
including freelance and side jobs,
independent of formal employment

Possibility that hiring demand will
stall temporarily due to COVID-19
Rapid change in existing
business models due to digitaltransformation and technology
trends

8%
63%

10%
19%

83.4

Net sales

Permanent placement

Advertising

Part-time job advertising

Others13.2

Operatingprofit

FY2019Note: The part-time job advertising business wrapped up on November 25, 2019.

Initiatives in Fiscal Years Ending March 2021 and 2022

Reduce costs at the moment and accelerate digitizationof business for when the COVID-19 pandemic ends
Given the impact of COVID-19 on operations, we will optimize
and improve the efficiency of marketing costs for the time
being. In the first half of the fiscal year ending March 2021, we
held marketing costs to 80% of the first half of the previous
year’s level, but by implementing effective measures, wewere able to maintain job-seeker attraction above 90% of theprevious year’s level.
At the same time, we will invest in technology to facilitate
non-face-to-face meetings, such as online counselling andonline career fair services in the permanent placementbusiness, and to increase matching opportunities throughadvancement of our original matching technology that connect
job seekers with jobs. We will evolve existing services andcreate new services that are suitable for the new normal.

Launched service for Temp App, official smartphone app for temporary staff

Constantly launch new non-face-to-face services connecting people
and organizations

PERSOL Group Integrated Report 2020

85.8

FY2018TOPICS

The app makes users more convenient
working at TEMPSTAFF.

(Billions of yen)

15.5

FY2019TOPICSPERSOL TEMPSTAFF launched Temp App, an official smartphone app available to people with a
PERSOL TEMPSTAFF staff number, on July 1, 2020. This work support app was created to make users
more convenient working at TEMPSTAFF. It provides access to frequently accessed menu items, suchas salary details or requests for paid time off, as well as a feature called SKD—a name derived from theJapanese phrase saikin do desuka?, which means “how have things been going lately?”—which enables
users to convey their work situations and thoughts.

25

Emphasis on career change services for regular
employees and efforts to raise profitability

Net sales and operating profit

Governance

Opportunities(Billions of yen)

Recent compositionof salesValue Strategy

Opportunities and risks

5%Competitive Advantage and Strategic Direction

Value Story

The Staffing SBU (formerly, the Temporary Staffing/BPO
Segment), with PERSOL TEMPSTAFF as its core company,
aims to be the No. 1 group chosen by temporary staff byforming a close relationship with working individuals tocontinuously provide opportunities, awareness and diverse
options.
We will establish a management model that supports thegrowth and development of our temporary staff, including
skills development and career support, and strengthen ourability and structure to solve corporate issues through anunderstanding of business and operations of our customers.
Also, for our part in fulfilling the PERSOL Group’s promise
to society, we will strive for sustainable growth as an SBU
that optimally connects people and organizations and further
reinforce our business foundation.

8%

Net sales and operating profit

Introduction

Recent compositionof salesCompetitive Advantage and Strategic Direction

The Career SBU began a new service, attuned to today’s new normal, that does not adhere to theconventional face-to-face services for placement and career change. The new service debutedin May 2020 as “doda Campus Live,” an online corporate information meeting run by Benesse
i-Career Co., Ltd., to help connect students and companies. Also, in July 2020, “doda,” the careerchange service, ran its first online career fair. Another July activity was the career change support
event “doda Career Change Online Prep Class” that enabled participants to attend the online classwithout leaving home.
PERSOL Group Integrated Report 202026

Professional Outsourcing SBU

Solution SBU

Shinji Masaki

Hirotoshi Takahashi

Executive Officer,
Professional Outsourcing SBU Lead

Director, Deputy President and Executive Officer,
Solution SBU Lead

Seek to be the third pillar of the business domain in
the Group, built on new value creation, including IoT
area, and growth in existing businesses

Risks

Increasing demand for outsourcing
services paralleling heightened
corporate awareness of need toreinforce risk structure
Rising demand for outsourcing
services through collaboration
between people and IT/machines

Lower design and development
costs paralleling downturn
among core clients (automakers,
machinery and power industries)
Fewer orders and lower operating
rate due to COVID-19
Growth power diminished due toshortage of IT engineers

26%
FY2019

97.2

105.8
6.9

6.3

Net sales
Operatingprofit

41%

33%
ITO

FY2018FY2019Engineering

PERSOL TECHNOLOGY STAFF

Initiatives in Fiscal Years Ending March 2021 and 2022

Discover synergy built on strengths unique tothe PERSOL Group, from manufacturing to IT
Through various measures that cut across PERSOL Group
companies and SBUs, we will plan and propose newservices in the IoT and other areas, cultivate the existingclient base and attract new clients. We are developing ourbusiness from manufacturing to system development,
operation and management as well as consultations, andwe will maximize strengths unique to the PERSOL Group to
generate synergies.

The Solution SBU’s strength comes from employees who havedirectly supported working individuals. The aspirations of each
person will be harnessed to create new businesses under the
incubation program named “Drit.” “MIIDAS,” the career change
app, captures market feedback, and the number of companies,
mainly small and mid-sized companies, that have registered
as of September 2020 grew 272% year on year to more than
170,000. In addition, while we continue to invest, we aim toturn a profit within the next three years, and going forward,
we will continue to promote a culture that generates businessthrough investment in aspirations that create a societycentered future and build value that only the PERSOL Groupcan provide. Furthermore, we will boldly pursue activities in
new areas in cooperation with diverse stakeholders throughM&As and business alliances to enable as many people aspossible to experience the “Work, and Smile” concept.

Opportunities and risks
Opportunities

Risks

Diversifying work styles and needs
across wide range of sectors
Organizations becoming more
complex and more high-techAppearance of new technology
players

22%1%

FY2019Operatingprofit1.7

Net sales(0.03)FY2018MIIDAS
Sharefull(1.6)

FY2019POS+
Incubation businessNote: Accounting method for MIIDAS will change,
effective from the fiscal year ending March 2021.

Initiatives in Fiscal Years Ending March 2021 and 2022

Create contact points for as many working individuals
as possible and extend value provided
Most of our services are used by small and mid-sizedcompanies and stores, so we will expand the corporateclient base across the PERSOL Group and extend ourreach to working individuals. In addition, in response to
the rapid emergence of “working” issues due to the impact
of COVID-19, we will seek to realize our vision from every
angle, updating our own working methods and focusing on
providing value for a life career that is not limited to laborand employment, as a showcase.

Began joint development of VR driving simulator

Propose new workforce that integrates people and technology(Digital Workforce)PERSOL Group Integrated Report 2020

7.0

39%

TOPICS

Prototype of VR truck driving simulator(Billions of yen)

38%

TOPICSWe are working with IROC Co., Ltd. to develop a new virtual reality driving simulator for truck
driving training that enables people to gain real driving experience without getting into an
actual truck. By combining IROC’s technology with PERSOL RESEARCH & DEVELOPMENT’s
expertise in commercial vehicle development, we can recreate various scenes of truck driving.
We are committed to improving the quality of safe driving education for the truck drivers who
support Japan’s logistics and contribute to improving their driving skills.

27

Actively invest in aspirations that create the future tobuild new value provided for work

Net sales and operating profit

Governance

Opportunities(Billions of yen)

Recent compositionof salesValue Strategy

Opportunities and risks

Competitive Advantage and Strategic Direction

Value Story

The Professional Outsourcing SBU was formed throughthe integration of the old ITO and engineering segments.
This SBU develops business activities in a wide range ofsectors, going beyond IT and engineering to hardware/
software and consulting services. Drawing on a reservoir ofdiverse expertise and technical capabilities, the Professional
Outsourcing SBU will expand services, particularly in the
IoT area, and take a vigorous approach to possible M&As toacquire more extensive capabilities and thereby underpin thefoundation for new value creation into the future.
In addition, we will accelerate growth of existing businesses
by working with Group companies and other SBUs to strengthenmarketing and recruitment. We seek to be the third pillar of thebusiness domain in the Group, helping to build a prosperous
society through the power of people and technology.

Net sales and operating profit

Introduction

Recent compositionof salesCompetitive Advantage and Strategic Direction

Digital Workforce supports digital transformation to streamline businesses and reduce thephysical burden on working individuals so that they can apply their efforts to creative pursuits.
This business provides solutions, hinging on “POS+,” a cloud-based mobile POS cash register, toretailers, restaurants, barbers and hair salons, and other sectors. Recently, as a first step toward
full-scale development across business domains, we acquired Dot Homes Inc., which provides
data-driven digital solutions for small-scale accommodation facilities, and will offer new value tothe accommodation industry.
PERSOL Group Integrated Report 202028

Governance

History of and Basic Policy on Governance at the PERSOL Group

Asia Pacific SBU
Principles

Takayuki Yamazaki
Executive Officer,
Asia Pacific SBU Lead

The PERSOL Group establishes the basic managementbusinesses by executing the corporate strategies in unitedpolicy and the corporate strategies of the entire Group withefforts of the Group companies.

the aim of realizing its corporate philosophy of “Providing

The PERSOL Group recognizes that strong corporate

Opportunity, Individual Growth and Social Contribution.”governance is the foundation for all efforts to realize theEach of the Group companies shall promote sustainable

above-mentioned corporate philosophy and will exert

corporate growth and the increase of corporate value overcontinued efforts for the improvement of its corporate

the mid-to long-term and solve social issues through its

governance.

History of strengthening corporate governanceAim to be the largest workforce solution provider inthe Asia-Pacific, offering PERM/TEMP Staffing, HR
consulting and outsourcing(Billions of yen)

13 markets

277.5

273.2

Australia, China, Hong Kong, India,
Indonesia, Malaysia, New Zealand,
Philippines, Singapore, South Korea,

1.3

OperatingprofitNet sales

Thailand, Taiwan, Vietnam(0.4)

FY2019FY2018

Note: Business expansion in the Philippines
facilitated through business alliance with
JOHN CLEMENTS CONSULTANTS, INC.

84.3

billion yen

93%

PERSOLKELLY is the largest
comprehensive humanresource service company in
the Asia-Pacific region, witha presence in 11 markets
and providing services,
including PERM/TEMP
Staffing, HR consulting andoutsourcing.

Permanent placement
Temporary staffing• Strengthened the oversight function and improved the transparency of
the Board• Provided incentives for the mid- to long-term increase of corporatevalue

2018 • Improved the diversity of Independent Directors
2019• Established the Independence Criteria for External Directors• Established the Corporate Governance Guideline

Risks

Capturing share in promisingmarkets all over the world where
population growth remains
particularly noticeable
Developing synergies in countries
and territories in the AsiaPacific region using integrated
management and business scale
Providing new services anddramatic improvement of efficiency
and profitability using technology

Reduced demand for humanresources due to economic
downturn associated with COVID-19
Appearance of new players in fieldand debut of alternative services
due to technological advances
Effect of fluctuating exchange rates

2%

188.9

billion yen

Note: HMC＝Headquarters Management Committee

The Corporate Governance Guideline lays out the48%

Business introduction
Programmed provides
services hinging on
three businesses—
human resource
service, equipment/
facility maintenance andhealthcare—in Australia and
New Zealand.

Temporary staffing
Maintenance• Made the ratio of Independent Directors at least half in principle• Delegated the decision-making on business to the CEO• Established the HMC to assist the CEO in decision-making. The CEO
decides on the execution of important operations delegated by the
Board, subject to an affirmative resolution by the HMC.
• Established the Investment Committee under the HMC to deliberatefrom a specialist viewpoint on significant business investments in order
to assist the HMC’s decision-making

responsible for the management of the PERSOL Group)

principles and desirable state of corporate governancetowards the realization thereof. We will take actions in lineof the PERSOL Group and serves as the Guideline for thewith the Guideline and revise it as necessary in response todirectors and the Group Senior Executives (collectively

changes in the times and circumstances and consistently

referring to the Representative Director, President andstrive for better corporate governance.

CEO, executive directors and executive officers, who are

Composition of sales
in FY201950%• Strengthened the monitoring function of the Board
2020 • Accelerated management decision-making• Newly established the HMC and internal committees• Shifted to a monitoring-focused Board• Substantially delegated the decision-making authority on businessexecution to management

Governance7%

Business introduction• Established the Nomination and Compensation Committee
2017 • Introduced a share-based compensation scheme for senior executives• Implemented a Board effectiveness evaluation

Value Strategy

Opportunities

Programmed

Composition of sales
in FY2019• Strengthened the auditing and oversight functions of the Board

Opportunities and risks

Strategies by Business

PERSOLKELLY

2016 • Shifted to a Company with the Supervisory Committee

Development areas

Value StoryPERSOL Asia Pacific Pte. Ltd. was established as the corecompany of a new SBU and this company acts as a holding
company. We aim to create a structure that facilitates
implementation of strategies cutting across the overseas
business of the PERSOL Group and unify management. This
will not only develop synergies in the markets of the AsiaPacific, but also focus on building a stronger revenue base forcore businesses, PERSOLKELLY and Programmed. In addition,
we will emphasize suitable growth investments to reinforce
technology. Leveraging our strong client base, we will cement
PERSOL Asia-Pacific’s position as a leading workforce solution
company that provides services from PERM/TEMP Staffing tooutsourcing throughout the 13 markets of the Asia-Pacific.

Net sales and operating profit• Strengthened the decision-making and oversight functions of the Board

Introduction

Competitive Advantage and Strategic Direction2015 • Introduced an executive officer system

Other

Competitive advantages

Competitive advantages• Boasts largest scale and provides comprehensive services in
the Asia-Pacific region• Top-level share of human resource services in region, including
markets of Singapore and Malaysia• Provides high-quality services based on safety concept• Top-level share in temporary staffing for blue-collar jobs
• Provides stable services through offices in major cities andregions of Australia and New Zealand

Strategic directions

Strategic directions• Implement strategies that match level of market maturation• Mature markets: Utilize technology to improve productivity andprofitability• Growth markets: Pursue robust growth investment to expand
market share• Further strengthen office-based job domain• Improve profitability in temporary staffing for blue-collar jobs
• Expand client base in maintenance business, particularly forfacility management services

Basic policy on corporate governance1. Securing the Rights and Equality of
Shareholders

The PERSOL Group shall pay careful attention to equal treatment of shareholders 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 stance to conduct its business, as well as
the Code of Conduct as the criteria for judgment and behaviors of all directors and employees, and endeavors
to appropriately cooperate with each stakeholder in conducting its business.

3. Securing Appropriate Disclosure ofInformation and Transparency

The PERSOL Group appropriately discloses its financial information such as financial standing and operating
results, corporate strategies, and risk management, and ensures transparency of information disclosure.
The PERSOL 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 theGroup Senior Executives, and secures the construction 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 take appropriate 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.

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

29

PERSOL Group Integrated Report 2020

PERSOL Group Integrated Report 202030

GovernanceIndependent Director Interview

INTERVIEW

Toward higher corporate value of

Themes discussed by the Board

the PERSOL Group

Mid- to long-term strategies
ThemesMid-term Management Plan

Ideal Group governance structure• Changes in business environment• PERSOL Group’s thoughts• PERSOL Group strengths• PERSOL Group vision• Business domains• Value provided• Means of realization/businessmodel• Areas and regions for expansion• Reflections on the previous
Mid-term Management Plan
• Group key strategies/strategies by
SBU• Management goal
• Financial policy• Investment plan
• Sustainability/SDGs• Monitoring policy/items• COVID-19 impact• Change governance structure
to achieve mid- to long-term
strategies• Enhance governance system• Accelerate management decisionmaking• Streamline matters for resolution
by the Board• Formulate Corporate Governance
Guideline

Ryosuke Tamakoshi
Independent Director
Chairperson of Nomination and Compensation CommitteeKey
discussion
pointsMy goal is to provide balance to help the PERSOLGroup achieve sustainable growth from a longterm perspective

term perspective defined by the Value Creation Story that

Since I assumed the position of an Independent Audit &were scrutinized, and because specialized information,

Supervisory Board Member in 2010, I have audited andsuch as industry conditions, was well explained in-house,that the level of objectivity and transparency in procedures

supervised the activities of the Board at the PERSOL

we, Independent Directors, had the resources to be able toapplicable to compensation for the senior executives andGovernance framework must evolve in line withchanges in societyGroup for ten years. I have seen the Group build a muchvoice various opinions from a mid- to long-term view.

directors is acceptable and credible from both internal andEfforts to promote diversity are vital in the pursuit ofexternal perspectives.

higher corporate value. Looking at empowerment of

new Mid-term Management Plan, risks and opportunities

The PERSOL Group began evaluating the effectivenessof its Board in 2017, and issues identified through thisThe share-based compensation scheme for officers

women at the PERSOL Group, my impression is that theshift to a Company with Supervisory Committee and theprocess are being properly dealt with at the Board. Not

introduced in 2017 was revised in June 2020, with theappointment of women to management positions is stillachievement of an Independent Director ratio exceeding

all issues are easily addressed, and responses take time

major change being the addition of non-financial measuressmall. That said, I am struck by the number of female

50%. What’s more, the Board has become more efficientand unfold gradually. To improve the effectiveness of theas criteria for evaluation. Return to shareholders is, of

employees who present various messages and areyear after year, I believe, mainly because of its emphasis

Board still further, as an example, I would suggest a new

course, important for corporate management these days,

recognized at the general meeting of employees, whichon free and open discussion and a concerted effort toapproach where Independent Directors delve into problem

but an awareness of ESG issues as well as proactiveis held nationwide. Since many women are active in thesuitably reflect the insights of Independent Directors in the

points on their own and then present a summary ofefforts to achieve SDGs are also important. Therefore, itfield, I believe that promoting women to the executive

basic management policy.

opinions to top management.

is essential to include non-financial measures to improvelevel will be a major challenge in the future.

I believe the role of Independent Directors is to provide

awareness has changed over the past few years, andCommittee is to identify appropriate human resources,

we have been learning and improving internally as wecompany where young people thrive and where business

My duty as committee chairperson is to ensure
objectivity and transparency in nominations andcompensation

based on an objective and transparent selection process,have learned to change with it. However, I do not see

content is rapidly expanding and business results are

The role of the Nomination and Compensation Committee,

who should be appointed to key executive positions in the

any goals in corporate governance. In order to further

growing at a fast pace, and I feel tremendous energy. I

especially in the U.S., is expected to curb the too highfuture and others who would become next-generation

improve corporate value, we need to continue to change

recognize our job is to ensure that the Board and other in-compensation of management, but our management

leaders. The leader in demand in the PERSOL Group is one

ourselves in response to social changes and demands,

house meetings take a balanced approach in considering

compensation has historically been appropriate for athat is common in companies of a certain size and above,

and we believe it is important to constantly evolve ourissues so that management and the Group as a whole

Japanese company. However, thinking about futuresuch as persistence in achieving goals, leadership, andgovernance framework and to move forward while

do not lean too far in either an aggressive or defensive

growth and business expansion, the PERSOL Grouphigh ethical standards, but most importantly, how she or healso repeatedly evaluating its effectiveness. I will also

direction. Recently, the PERSOL Group developed a newneeds excellent human resources, and discussion on a

influences the employees who work with her or him every

support the evolution of the PERSOL Group’s corporate

Mid-term Management Plan, which was unveiled in August

suitable level of compensation to attract and keep suchday. Therefore, we believe that the selection of a successor

governance as an Independent Director, making various

2020, and the Group has spent a considerable amountpeople is important. It should be easier for Independentshould provide an opportunity for the members of thesuggestions and recommendations on a daily basis.

of time and discussion on the business plan. The new

Directors than for Internal Directors to consider both

Nomination and Compensation Committee to evaluate theMid-term Management Plan charts a course over threemaintaining corporate competitiveness and determining

candidate directly, as well as collect the opinions of those

years, but the strategies laid out in the plan have actually

fair compensation. I feel it is my duty as the chairperson

around the candidate, and we are currently working on abeen formulated through backcasting from a longer-of the Nomination and Compensation Committee to ensure

360-degree evaluation with outside help.

balance. Today’s PERSOL Group traces its history back 40some years to the establishment of Tempstaff, but it is a31

Another vital role of the Nomination and Compensation

In terms of corporate governance, I feel that public

PERSOL Group Integrated Report 2020

Governancecorporate value as criteria for evaluation.

Value Strategy

the introduction of the executive officer system, theValue Story

better corporate governance structure, highlighted byenvisions the PERSOL Group in 2030. In developing theIntroduction

Value Creation Story(Mid- to long-term strategic policy)

PERSOL Group Integrated Report 202032

Governance

Governance Structure

Overview of governance structurecomplementing the function of the Board, the Group has
established a voluntary Nomination and Compensation
Committee to enhance transparency and objectivity
concerning decisions on the nomination and compensationof the directors and the Group Senior Executives.

Based on the corporate governance principles, the PERSOLGroup has adopted the form of organizational structureof “Company with Supervisory Committee” under theJapanese Companies Act. Furthermore, for the purpose of

As of June 24, 2020
Usage Guide:

Ratio of Non-executive
Directors:

CEO

6/9

Internal Director

5/9

Independent Director

above

Appointment andDismissal

1/2 or

Appointment andDismissal

above

Advisory

Directors who are not Supervisory
Committee Members

Audit

Supervisory Committee

Directors who are Supervisory
Committee Members

ReportChairperson

Chairperson

Approval/
Coordination

ReportAccounting Audit
ReportCEO
Headquarters Management
Committee

Staffing SBU

CFOInvestment Committee

Career SBU

CLO

Risk Management Committee

Professional Outsourcing
SBU

CHRO

Human Resources Committee

Solution SBU(Function Management)

CIO*Position created in July 2020

Internal Audit Division

Headquarters Management Committee (HMC)
The PERSOL Group adopts the executive officer system withthe purpose of separating the oversight and management
and clarifying where management responsibility lies. In
addition, HMC is established to assist the CEO in making
decisions on the Group’s basic management policy andimportant operations. The decisions on the execution ofimportant operations delegated to the CEO by the Board shallbe decided by the CEO on the condition that the HMC has

Value Strategy

Vice President

Vice President(Business Management)

Matters concerning decision on compensation:• Setting the compensation standards for directors and theGroup Senior Executives• Decision on a recommendation of the amount ofcompensation for the directors (excluding directors who
are the Supervisory Committee Members)

Value Story

Appointment and Dismissal
Delegation of the Decisions on the Execution of Important Operations Audit
Audit

ReportExternal Auditor

The Board
The Nomination andCompensation Committee

Appointment andDismissal

Matters concerning decision on candidates:• Decision on a recommendation of the appointment anddismissal of the directors for discussion at the general
meeting of shareholders• Decision on a recommendation of the appointment anddismissal of the CEO (authority of representation and theposition)• Approval of a CEO succession plan

made an affirmative resolution. Based on the concept that themembers of the HMC (hereinunder, “the HMC members”) shallbe the persons who assume the significant decisions on theexecution of important operations delegated by the Board andcomprehensive roles as members of the senior managementof the PERSOL Group, a proposal for the nomination of a
HMC member shall be prepared by the CEO from among theexecutive officers, and shall be approved at the Board upondeliberation at the Nomination and Compensation Committee.
The Company has also established four committees(Investment Committee, Risk Management Committee,
Human Resources Committee, and Technology Committee)
under HMC to improve the effectiveness of the Group’s
internal control system.
The Investment Committee deliberates on importantmatters related to the Group’s overall investment and aims
to raise the Group’s organizational knowledge of a seriesof knowledge related to investment promotion. The Risk
Management Committee deliberates on the overall risk
management of the PERSOL Group. The Human Resources
Committee deliberates on the PERSOL Group’s humanresources strategy and succession planning for key talent.
The Technology Committee deliberates on key issues
concerning the PERSOL Group’s technology strategy andrelated management resources.
Each of the four committees is accountable to HMC and ispositioned to supplement and strengthen its functions.

Introduction

Ratio of Independent
Directors:

General Meeting of Shareholders

1/2 orreport and recommendations to the Board:

Technology Committee

Asia Pacific SBU

The BoardSupervisory Committee
The roles of the Supervisory Committee include securing thesoundness of companies toward the increase of sustainablecorporate value, acting for the common interests of thePERSOL Group and shareholders while performing thefollowing duties:• Oversight of the execution of duties of the directors andthe preparation of audit reports• Decision on the details of the agenda concerning
appointment, dismissal and refusal of reappointment of an
external auditor

33

PERSOL Group Integrated Report 2020

The Supervisory Committee may give specific instructions
to the internal audit division, as necessary, for the purposeof effective audit. The Supervisory Committee shallappropriately share information with the internal audit
division for the purpose of ensuring mutual cooperative
systems. Important personnel affairs of the internal audit
division shall be decided with the consent of the Supervisory
Committee to ensure the effectiveness of audit by theSupervisory Committee.

The Nomination and Compensation Committee
The purposes of the Nomination and Compensation
Committee include increasing the transparency andobjectivity of the decisions on candidates for directors
and the Group Senior Executives as well as decisions
on compensation while enhancing the managerial andsupervisory functions of the Board. Upon receiving requests
from the Board, the Nomination and Compensation
Committee shall perform the following duties, and submit a

To further improve the functioning of the Board, the PERSOL Group annually
evaluates the effectiveness of the Board as a whole, and discloses a summary of
its methods and results.
In the fiscal year ended March 2020, the Group conducted a questionnaire
survey of all directors and discussed twice at the Board the issues identified
based on the results of the survey and each director’s self-assessment, referringto the opinions of an external third-party advisor.

Hours of meetings of the Board byagenda category
Matters fordiscussions

39%

Matters forresolution
From June 2018
to May 2019

The Board will continue to improve its effectiveness based on the results ofthe evaluation.

29%

Matters forreportingResults summary of the analysis and evaluation of effectiveness(1) The Board fulfills its roles and responsibilities, including discussing corporate strategy
and other major directions, creating an environment that supports appropriate risktaking by the Group Senior Executives, providing effective oversight of management anddirectors from an independent and objective perspective, and establishing appropriate
internal control and risk management system.
(2) In fulfilling its roles and responsibilities under (1) above, the Board materials are
distributed well in advance of the meeting dates. In addition, the issues and objections
discussed at the HMC are shared at the Board. These ensure for clear, free, vigorous andconstructive discussions to take place.
(3) On the other hand, the Board recognizes that it is necessary to monitor progress basedon specific management goals (including management indicators) and scenarios/
implementation plans for achieving management goals, as a precondition for oversight,
in order to enhance the effectiveness of the Board’s oversight of management. The Board
also recognizes that it is necessary to secure sufficient time for discussion of important
agenda items to enhance the deliberations of the Board by providing pre-briefings ofagenda items and building an information base that enables the Board to obtain sufficient
background information prior to the discussion.

Governance

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 secure the establishment 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 be delegated, in principle,
to the CEO. Provided, however, that the decisions on theexecution of important operations set forth in the Regulations
for the Board shall be made by the Board.

• Decision on the opinion of the Supervisory Committee
concerning appointment, dismissal, resignation orcompensation of the directors (excluding directors who
are the Supervisory Committee Members)

Results of the Board effectiveness evaluation andresponses to the issues

32%

Matters fordiscussions

49%

Matters forresolution
From June 2019
to May 2020

30%

Matters forreporting21%
The number of hours spent on matters for discussions increasedin the period from June 2019 to May 2020 compared to the same
period of the previous year. More time was spent discussing
corporate strategies toward the Company’s sustainable growthfrom a wide variety of perspectives over the mid- to long-term,and Independent Directors were more effectively involved.

PERSOL Group Integrated Report 202034

GovernanceDirector and Officer Compensation and Succession of CEO, etc.

Level of compensation

The Compensation for Director and officer (hereinafter,“Executive Compensation”) of the PERSOL Group is
positioned as an incentive to achieve sustainable growthover the mid- to long-term. Following discussions by the
Nomination and Compensation Committee, the Board
resolved on a compensation policy for the fiscal year
ending March 2021 and beyond at a meeting held on
May 19, 2020, including a new policy on the forfeiture of
Executive Compensation (clawback and malus clause). ThePERSOL Group’s basic policy for Executive Compensation isembodied in the following three perspectives.

Executive Compensation is determined at a level
deemed reasonable and fair based on the basic policy
for Director and officer Compensation stated at the left.
More specifically, we determine the level of Executive
Compensation by studying and analyzing the compensationlevels of a group of benchmark companies (20–30
companies) selected utilizing an external database, etc.,
and based on the business circumstances for the Group.
In determining Executive Compensation for the fiscal year
ending March 2021, we selected 22 companies, as a groupof benchmark companies, out of peer companies (in the
personnel service industry) and other major companies ofcomparable size.

1. Linked to the short-term, and mid- and long-term
financial performance and the corporate value of thePERSOL Group- A scheme that is linked not only to short-term financial
performance but also to mid- to long-term financial performanceand corporate value- Aligns profit awareness with that of shareholders and raises
awareness of shareholder-oriented management

Basic compensation

Share-based
compensation

64%

17%

Fixed compensation

Short-term incentive
compensation

Performance-linked mid- to long- Fixed mid- to long-term incentive
term incentive compensationcompensation

Eligible
director• Directors who are not
Supervisory Committee
Members (excluding
Independent Directors)• Independent Directors who are
not Supervisory Committee
Members• Directors who are Supervisory
Committee Members

Evaluation
measures19%
Non-executive directors
Basic compensation

Share-based
compensation

83%

17%

Payment of fixed monthly
compensation set by position• Directors who are not
Supervisory Committee
Members (excluding
Independent Directors)

Financial measures
Evaluated in accordance withthe levels of achievement of (1)net sales and (2) operating profit
by the entire Company and each
SBU, as well as the comparisonof growth rates with competitors
Non-financial measures
Evaluated in accordance withthe levels of achievement of (1)the employee engagement indexand (2) the percentage of womenin managerial positions for theentire Company and each SBU
Theme-based evaluation
Evaluated based on how they
have worked on the themes
set with the aim of improving
operating performance andcorporate value, and throughinterviews with evaluators(evaluation of directors who
are not Supervisory Committee
Members (excluding Independent
Directors) lies with theNomination and Compensation
Committee)

Financial measures• Consolidated net sales• Consolidated operating profit• TSR• ROIC
Non-financial measures• Employee engagement index• Percentage of women in
managerial positions• Ratio of investment intechnology• ESG rating

A short-term incentive paid
depending on the level of
performance milestoneachieved towards the Mid-termManagement Plan
Varies between 0% and 200%

Note: The value of share-based compensation for non-executive directors is fixed at 2 million
yen per director; as the amount of basic compensation varies among non-executive directors
depending on their roles, the actual compensation composition may not be identical with thatshown above.

Executive Compensation for the fiscal year ended March 2020

(Million yen)

Total amount ofcompensation, etc.

Basic compensation

Bonus(Short-term incentive)

4
Directors(Excluding Supervisory Committee Members)(Excluding Independent Directors)

195

57

52

305

Representative Director and President

1

66

19

15

102

Directors(Supervisory Committee Members)(Excluding Independent Directors)

2
47

–

–

47

Independent Directors

4

39

–

–

39

Share-based compensation(Mid- to long-term incentive)

Notes: 1. The above includes one director who retired from the position of a director who is not a Supervisory Committee Member and was appointed as a director who is a Supervisory Committee
Member during the fiscal year under review.
2. One Independent Director is not included in the number of officers noted above as he receives no compensation.

Forfeit of compensation, etc. (Clawback/Malus)
In the event significant restatements of financial statements
due to material accounting errors or accounting fraud has
been resolved by the Board, or the Board has deemed that
there was a significant breach of executive service and/or
other agreements by officers during their term of office, theNomination and Compensation Committee shall deliberate,
at the request of the Board, whether or not to confiscate thewhole or part of their rights to receive bonus and/or sharebased compensation or confiscate the whole of part of thebonus and/or share-based compensation they had received,and provide the Board opinions and suggestions based on
the results of the deliberation.

Succession plan
While the Human Resources Division had previously led

Designed to vary dependingon the level of achievement offinancial targets in the Mid-termManagement Plan towards the
fiscal year ending March 2023, as
well as non-financial measures

A fixed number of shares isdelivered as share-based
compensation to further increaselinkage with shareholder value

Governance

Provision
method• Directors who are not
Supervisory Committee
Members (excluding
Independent Directors)• Directors who are not
Supervisory Committee
Members (excluding
Independent Directors)• Independent Directors who are
not Supervisory Committee
Members• Directors who are Supervisory
Committee Members

Value Strategy

Bonus- Provides a stronger incentive to directors and officers withregard to improving financial performance and corporate value

PERSOL Group Integrated Report 2020

Positioning

achieved)- Makes compensation levels competitive with domestic
companies of the same size and in the same industry, and is
instrumental in securing high-quality human resources

35

Share-based compensation

Directors who are not Supervisory Committee
Members (excluding Independent Directors) and executive
officers (assuming that each of the measures is largely fully

3. Sets competitive level of compensation

The amount of Executive Compensation, etc., of the PERSOLGroup, their determination process, and the policy for
determining details of compensation for each director andofficer shall be decided by the Board, following thoroughdeliberations 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 shall be decided throughconsultations among the Supervisory Committee Members.
Executive Compensation, etc., shall be paid within the
maximum amount of compensation, etc., resolved at an
Ordinary General Meeting of Shareholders.

Bonus

Standard compensation composition model- Ensures transparency and objectivity of the compensation
determination process

Determination process for compensation

Basic compensation

Value Story

2. Linked with shareholder value

Overview of the Executive Compensation system

Introduction

Basic policy for Director and officer Compensation

Varies between 0% and 200%

the PERSOL Group in examining and implementing thedevelopment of the Group’s senior executive candidates andreported to the Board and the Nomination and Compensation
Committee, the Nomination and Compensation Committee
started full-scale discussions on the succession plan in
January 2019.
Specifically, the Committee is discussing and verbalizing
the image of leadership required in the PERSOL Group,
while at the same time increasing the frequency of contacts
with key executives and creating an environment andopportunities for multifaceted evaluation. Meanwhile, in
formulating the Mid-term Management Plan, the Grouphas established financial and non-financial indicators aswell as measures to achieve them, and the Board monitors
their progress to evaluate key executives while maintaining
objectivity and transparency.

PERSOL Group Integrated Report 202036

GovernanceDirectors and Executive Officers (as of November 10, 2020)

Director: Chairperson

Directors who are not Supervisory Committee Members

Directors who are Supervisory Committee Members

Masamichi Mizuta

Takao Wada

Representative Director, President and CEO

Director, Deputy President and Executive Officer
Business Control Officer, Staffing SBU Lead

Important concurrent posts

Tenure in the Group

President and Representative Director of PERSOL TEMPSTAFF CO., LTD.
Director (part-time) of PERSOL CAREER CO., LTD.
Non-executive Director of PERSOL Asia Pacific Pte. Ltd.

32 yearsTenure in the Group

Chisa Enomoto

Important concurrent posts(Member of Supervisory Committee)

Director (Member of Supervisory Committee)

Important concurrent posts

Director (part-time) of PERSOL TEMPSTAFF CO., LTD.
Director (part-time) of PERSOL CAREER CO., LTD.
Director (part-time) of PERSOL Professional Outsourcing Co., Ltd.

Toshihiro Ozawa

External Director of Sun* Inc.
(Member of Audit and Supervisory Committee)

Important concurrent posts

Executive Communication Strategist of Hitachi, Ltd.
A member of Communication Strategy Committee of Meiji University

Tenure in the Group

12 yearsTenure in the Group

2 years

Career record

Career record

Joined Recruit Co., Ltd.
Joined Tempstaff Co., Ltd. (currently PERSOL TEMPSTAFF CO., LTD.)
Director of Tempstaff Co., Ltd.
Executive Managing Director of the Company
Vice President & Director of the Company
President & Representative Director of the Company
Representative Director, President and CEO of the Company (current position)

Joined Sparrow Japan
Joined Tempstaff Co., Ltd. (currently PERSOL TEMPSTAFF CO., LTD.)
Director of Tempstaff Co., Ltd.
Director of the Company
Director, Executive Officer of the Company
Director, Senior Executive Officer of the Company/President & Representative Director ofTempstaff Co., Ltd. (currently PERSOL TEMPSTAFF CO., LTD.) (current position)
Apr. 2020 Director, Deputy President and Executive Officer of the Company (current position)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)
The Board

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Nomination andCompensation Committee

100%(13/13)

100%(10/10)

Fiscal year ending
March 2021

The Board

Fiscal year ended
March 2020

Supervisory Committee

Nomination andCompensation Committee

100%(13/13)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)
The BoardSupervisory Committee

100%(13/13)

100%(10/10)

Independent

Kazuhiko Tomoda

Independent Director(Member of Supervisory Committee)

Important concurrent posts

Important concurrent posts

President of Tomoda Certified Public Accountant OfficeOutside Auditor of Hakuhodo DY Holdings Inc.
Outside Auditor of Daiko Advertising Inc.
Outside Auditor of INES Corporation

Tenure in the Group

Fiscal year ended
March 2020

Supervisory Committee

100%(13/13)

Joined The Sanwa Bank, Limited (currently MUFG Bank, Ltd.)
Director of The Sanwa Bank, Limited
Deputy President, Representative Director, and Executive Officer of UFJ Bank Limited (currently MUFG Bank, Ltd.)
President and Representative Director of UFJ Holdings, Inc. (currently Mitsubishi UFJ Financial Group, Inc.)
Chairman and Representative Director of Mitsubishi UFJ Financial Group, Inc.
External Audit & Supervisory Board Member of the Company
Director of Morgan Stanley
External Director of the Company (current position)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

100%(10/10)

Fiscal year ending
March 2021

The Board

Fiscal year ended
March 2020

Supervisory Committee

100%(13/13)

Nomination andCompensation Committee

Independent Director

Important concurrent posts

Important concurrent posts

CEO of Japan Innovation Network
Senior Advisor on Innovation of United Nations Development Programme (UNDP)
Specially-appointed professor, Sophia University
President of Japan Bosai Platform

Chairperson of the Board of Yamato Holdings Co., Ltd.

Career record

Joined The Long-Term Credit Bank of Japan, Limited
Joined The World Bank Group
Joined Mercer Japan Ltd. Representative Managing Director of Mercer Japan Ltd.
Joined Innovation Network Corporation of Japan Executive officer of Innovation Network Corporation of Japan
Established Japan Innovation Network Executive Managing Director of Japan Innovation Network
External Director of the Company (current position)
Senior Advisor on Innovation of United Nations Development Programme (UNDP) (current position)
CEO of Japan Innovation Network (current position)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

92%(12/13)

The BoardSupervisory Committee

Newly appointed

Newly appointed

Supervisory Committee

92%(12/13)

Apr. 1984
Apr. 2005
Mar. 2007
Jun. 2011

Joined Yamato Transport Co., Ltd.
Executive Officer of Yamato Transport Co., Ltd.
Executive Officer of Yamato Holdings Co., Ltd.
Director and Executive Officer of Yamato Holdings Co., Ltd., and Representative Director,
President and Chief Executive Officer of Yamato Transport Co., Ltd.
Apr. 2015 Representative Director, Executive Officer and President of Yamato Holdings Co., Ltd.
Apr. 2019 Chairperson of the Board of Yamato Holdings Co., Ltd. (current position)
Jun. 2020 External Director of the Company (current position)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Nomination andCompensation Committee

100%(10/10)

Nomination andCompensation Committee

Executive Officer
Masamichi Mizuta

Daisuke Hayashi

Takao Wada

Hirotaka Mino

Representative Director, President and CEO

Career record

Fiscal year ended
March 2020

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Tenure in the Group

Newly appointed

4 years

The Board

Joined Price Waterhouse Accounting Office
Representative Partner of Aoyama Audit Corporation (former Price Waterhouse Accounting Office)Representative Partner of Arata Audit Corporation (currently PricewaterhouseCoopers Aarata LLC)
Executive Officer of Arata Audit Corporation
President of Tomoda Certified Public Accountant Office (current position)
External Director of the Company (current position)
Outside Auditor of Hakuhodo DY Holdings Inc. (current position)/Outside Auditor of Daiko
Advertising Inc. (current position)/Outside Auditor of INES Corporation (current position)

Independent
Newly appointed

Tenure in the Group

Apr. 1986
Mar. 1998
Nov. 2001
Nov. 2009
Jan. 2014
Jun. 2016
Jan. 2018
Oct. 2019

Career record
Mar. 1979
Jul. 1997
Sep. 2006
Jul. 2012
Jul. 2019
Jun. 2020

Fiscal year ending
March 2021

Masaki Yamauchi

Independent

Independent Director

100%(10/10)

Newly appointed

100%(10/10)

Fiscal year ending
March 2021

Naohiro Nishiguchi

92%(12/13)

Tenure in the Group

Career record

Nomination andCompensation Committee

92%(12/13)

Governance

The Board

Nomination andCompensation Committee

Value Strategy

Tenure in the Group

10 yearsComposition of and attendance at each committee (number of meetings attended/number of meetings held)

Supervisory Committee

Independent

President and Representative Director of
PERSOL INNOVATION CO., LTD.

May 1970
Jun. 1997
Jun. 2002
Jun. 2004
Oct. 2005
Jun. 2010
Jul. 2011
Jun. 2016

The Board

Newly appointed

Senior Advisor of MUFG Bank, Ltd.

Joined Intelligence, Ltd. (currently PERSOL CAREER CO., LTD.)
Director of Intelligence, Ltd.
Representative Director & Chief Executive Officer of Intelligence, Ltd. (Apr. 2012 Intelligence Holdings, Ltd.)
Vice President & Director of the Company
Vice President and Executive Officer of the Company
Vice President, COO & Director of the Company
President and Representative Director of PERSOL INNOVATION CO., LTD. (current position)
Director, Deputy President and Executive Officer of the Company (current position)

Composition of and attendance at each committee (number of meetings attended/number of meetings held)

Fiscal year ended
March 2020

Important concurrent posts

25 years

Apr. 1995
Apr. 1999
Dec. 2008
Jun. 2013
Apr. 2015
Jun. 2016
Dec. 2018
Apr. 2020

Apr. 2018
Jun. 2018
Sep. 2018
Apr. 2019

Joined Recruit Co., Ltd.
Joined Philips Electronics Japan, Ltd. (currently Philips Japan, Ltd.) (General Manager, Public Relations Department)
Joined Janssen Pharmaceutical K.K. (General Manager, Communication and Public Affairs Department)
Joined Tokyo Electric Power Company Executive Officer of Tokyo Electric Power Company(currently Tokyo Electric Power Company Holdings, Inc.)
Joined Hitachi, Ltd. Executive Communication Strategist of Hitachi, Ltd. (current position)
External Director of the Company (current position)
External Director of JOYFUL HONDA CO., LTD.
A member of Communication Strategy Committee of Meiji University (current position)

Fiscal year ending
March 2021

Independent Director

Career record

Apr. 1984
Nov. 2005
Jul. 2012
Jan. 2014

Nomination andCompensation Committee

Fiscal year ending
March 2021

Ryosuke Tamakoshi

Director, Deputy President and Executive Officer
Function Control Officer, Solution SBU Lead

Career record

Joined NTT Data Communications Systems Corporation (currently NTT Data Corporation)
Director of Nippon Outsourcing Corporation
Joined Sony Global Solutions Inc. (Division Manager, Technical Solution Division)
Joined Sanyo Electric Co., Ltd. (General Manager, IT Systems Business Division)
Joined Intelligence, Ltd. (currently PERSOL CAREER CO., LTD.)
Director and Senior Managing Executive Officer of Intelligence, Ltd.
Executive Officer of the Company
Director, Executive Officer of the Company
Director, Member of Supervisory Committee of the Company (current position)

Fiscal year ended
March 2020

Fiscal year ending
March 2021

Hirotoshi Takahashi

Apr. 1990
Jun. 2000
Apr. 2005
Oct. 2005
Jan. 2008
Apr. 2012
Apr. 2015
Jun. 2016
Jun. 2019

Value Story

Fiscal year ended
March 2020

Supervisory Committee

Career record

Feb. 1988
Sep. 1991
Jun. 2006
Oct. 2008
Apr. 2015
Jun. 2016

Introduction

29 years

Apr. 1984
Jul. 1988
Jun. 1995
Oct. 2008
Jun. 2010
Jun. 2013
Jun. 2016

Independent

Independent Director

The Board

Fiscal year ending
March 2021

Newly appointed

Supervisory Committee

Nomination andCompensation Committee

Director, Deputy President and Executive Officer
Business Control Officer, Staffing SBU Lead

Hirotoshi Takahashi

Director, Deputy President and Executive Officer
Function Control Officer, Solution SBU Lead

Kiyoshi Seki

Executive Officer CLO

Executive Officer CHRO

Masayuki Furukawa

Shinji Masaki
Executive Officer

Professional Outsourcing SBU Lead

Takayuki Yamazaki
Executive Officer

Asia Pacific SBU Lead

Executive Officer CIO

Taro Mineo
Executive Officer
Career SBU Lead

Executive Officer CFO

Newly appointed

Fiscal year ending
March 2021

37

PERSOL Group Integrated Report 2020

PERSOL Group Integrated Report 202038

Governance

CLO Interview

INTERVIEW

We will implement risk management to facilitate
flexible responses to changes in the businessenvironment and strive to improve corporate value.
Daisuke Hayashi
Executive Officer CLO

The PERSOL Group implements enterprise risk

extremely important since Group companies handle large

management on a groupwide basis to fulfill its

volumes of personal information from many sources,

responsibility to stakeholders, including customers,

including temporary staff, job seekers, corporate clientsbusiness partners, employees and shareholders, and toand employees. Information security department set up

maintain and improve corporate value.

within PERSOL HOLDINGS work with operating companies

Of these, risks related to personal information areon various fronts, including efforts to put information

defense. The first line of defense—operating companies—

security measures into practice to prevent personalpromotes risk management in business activities andinformation leaks, ensure compliance with laws anddaily activities. The second line of defense—functions that

regulations on the protection of personal information

oversee risk—supports and monitors operating companies.

and prevent invasion of privacy, and thereby underpin

The third line of defense—the internal audit division—

appropriate handling of personal information.

audits the effectiveness of risk management on the firstand second lines of defense.

We also recognize a heightened need to address
disaster risk, given the spread of COVID-19 as well as
increased damage from natural disasters in Japan inrecent years. We had already formulated and operated

The PERSOL Group identifies material risks from aa BCP (Business Continuity Plan) with natural disasters

groupwide perspective, and the Board and seniorin mind, but we assume a situation like the COVID-19

changes in work styles, including a rapid spread ofworking from home and other forms of telework. Suchand response of material risks that take into accountbusiness and geographical factors unique to each SBU.
Going forward, each SBU will pursue business activities

conditions heightened the importance of addressing

and risk management as if they are two sides of the same

issues, such as adherence to labor laws and approaches tocoin to promote risk management that contributes to thetrain and retain human resources.

maintenance and improvement of corporate value.

Issues related to risk management
The Board and the Management Committee at PERSOLStrengthening enterprise risk management in
the entire GroupHOLDINGS have monitored efforts to address risk on a

PERSOL HOLDINGS monitors risk management initiatives,groupwide basis. Through initiatives by the second line

including material risks in each SBU, across the Group, andof defense—PERSOL HOLDINGS’ functions that oversee

promotes risk management activities from a groupwide

risk—we have steadily addressed risks common to allperspective to address risks in cooperation with its Group

Group companies, such as information security risk andcompanies.

labor risk. On the other hand, risk management along

To facilitate this process, we established the Risk

the first line of defense that addresses risk specific to an

Management Committee in the fiscal year ending March

operating company is handled by that operating company

2021 under the HMC (Headquarters Management

only. Therefore, perceptions and monitoring of risk on a

Committee).

groupwide basis were not thoroughly implemented. WithIn the Risk Management Committee, members of PERSOL

the transition to the SBU structure in April 2020 and the

HOLDINGS’ senior executives, including top management,

significant delegation of decision-making authority forand the head of risk management in each SBU, discuss thebusiness execution to the SBUs, we see it as an importantmaterial risks identified by PERSOL HOLDINGS and eachtask to promote risk management by the SBUs and

SBU, and promote enterprise risk management acrossincrease the effectiveness of risk management in the

the Group. Also, the activities of the Risk Management

entire Group.

Committee are regularly reported to the Board at PERSOLHOLDINGS.

Promoting risk management by SBU

Given the ever-changing social and business

From the fiscal year ending March 2021, we are reinforcing

environment, we must not overlook material risks and mustthe risk management structure of SBU to ensure risk

strive to reinforce our risk management structure to ensure

management by the first line of defense. Specifically, eachtimely and suitable responses.

GovernanceMaterial risks for the PERSOL Groupmanagement organization and promoted the identification

In addition, the spread of COVID-19 triggered swift

Value Strategy

The risk management structure is built on three lines oflong-lasting impact, and we are thus reviewing our BCP.

Value Story

executives monitor them.

person responsible for risk management, established a risk

Introduction

Risk management that contributes to improved
corporate value

pandemic, which will occur on a global scale and have a

SBU set up a risk management committee, assigned a

Overview of the PERSOL Group risk management structure
The Board/Supervisory Committee

Promoting data governance for digital transformation
Secretariat (PHD Risk Management Division)

HMC/Risk Management Committee

First Line of Defense

Second Line of Defense

Third Line of Defense

Control risks
as the point where risks occur

Supervise and provide advice
on risk management

Give reasonable assurances fromindependent perspective

INTERVIEW

Financial (CFO)IT and security (CIO)
Operating divisions of Group companies

Human resources (CHRO)

Internal Audit Division(at PHD)GRC (CLO)
SBU functional divisions

Masayuki Furukawa
Executive Officer CIO

Efforts to maximize technology will be essential to future expansion of businessactivities. Of note, analysis and use of vast amounts of data collected on individuals
and companies over the years is the fuel for creating value, so we are getting fully
engaged in the configuration and operation of a data governance system that willlead to safe and secure use of data. We have established the Technology Committee
and will promote the use of data governance across the Group.
As a first step, we will focus on individual and corporate data, define
guidelines and ensure widespread awareness of them. We will also review
existing services and new services, using a checklist for each. Throughmonitoring, we should be able to boost the effectiveness of data governance in acomprehensive and multifaceted way. Once we have set up privacy and dataprotection systems, we will expand the scope to data usage governance and work
toward a sharper competitive edge.

Note: PHD = PERSOL HOLDINGS, HMC = Headquarters Management Committee, CFO = Chief Financial Officer, CIO = Chief Information Officer, CHRO = Chief Human Resources Officer, CLO = Chief Legal
Officer, GRC = Governance, risk and compliance

39

PERSOL Group Integrated Report 2020

PERSOL Group Integrated Report 202040

GovernanceCompliance, Internal Control and Risk Management

Basic approach to compliance

PERSOL Group Code of Conduct
https://www.persol-group.co.jp/en/corporate/governance/code_of_
conduct.html

Compliance promotion structure

PERSOL Group compliance training

ReportPersons responsible forpromoting internal control

Report/communication

Representative Director
and President

Whistleblowing/
consultation

Complianceeducation

Cooperation/
support

Number of people who
Entire Group completed training during theperiod: 25,811

Legal newsletter

Dissemination of legal
knowledge related to thebusiness through theintranet

Entire Group Number of times distributed: 3

New graduate
training

Training for new graduates
when they join the Group

Number of participants in
Entire Group the joint company joining
ceremony: 978Mid-career hire
training

Training for mid-career hires
when they join the Group

Entire Group

Conducted at each Group
company as necessary

Newly appointed
manager training

Training for managers(section manager level) upon
promotion

Entire Group

Number of participants: 227
Number of times conducted: 2

Whistleblowing/
consultation
Complianceeducation
Whistleblowing/
consultation

Employees

Group companies
Persons in charge ofcompliance

Whistleblowing/
consultation

Complianceeducation

Employees

Efforts to raise employee awareness toward
compliance
Publication of the Compliance Handbook
We have prepared a Compliance Handbook for employees
in Japan as a guide to clarify how they should behave fromthe perspective of corporate ethics and compliance, andwe utilize the Handbook to educate our employees aboutcompliance.

PERSOL Group Integrated Report 2020

employees and staffs so that we can confirm their safety promptly
in the event of a crisis and provide them necessary support.

3. Emergency response structure
An Emergency Response Headquarter, headed by the
Representative Director and President of PERSOL HOLDINGS, isestablished in the event of a serious crisis.
Based on the aforementioned four basic policies, theEmergency Response Headquarter is responsible for the prompt
collection and dissemination of information across the Group,
as well as the prompt determination and implementation of
response policies for the Group.
The Emergency Response Headquarter also provides
support necessary for crisis response by the SBUs and Group
companies in cooperation with the Emergency Response
Headquarter of the SBUs.
Crisis management structure of PERSOL HOLDINGSEmergency Response Headquarter

Crisis management

Conducting a compliance awareness survey
We conduct an annual compliance awareness survey on all
Group employees in Japan in order to continuously monitor
the instilling and establishment of compliance activities.
The results of the survey are analyzed and evaluatedby the Risk Management and Compliance Department of
PERSOL HOLDINGS, and then reported to management
and the Human Resources Planning Division, where
they are used as a reference for promoting compliancemanagement by considering the introduction of newcompliance promotion measures for items that need to
be improved, and aiming to further improve items thatare outstanding. In the survey conducted in the fiscal year
ended March 2020, improvements were seen in almost allof the items including compliance conditions and resultsof compliance activities. On the other hand, the scores
regarding occurrences of harassment were same as theprevious year, we are working on to raise awarenesstoward harassment and improve our systems based on
the abuse of power prevention guideline.

In addition, we have a safety confirmation system in place for all

The PERSOL Group has established the Group Crisis
Management Regulations and have been strengthening ourcrisis management system in order to respond properly
to crises, such as natural disasters, pandemics and other,which could have significant negative impacts on ourGroup’s management and business activities.
In the event of a crisis, the Group responds promptly andappropriately in accordance with the following four basic
policies in order to minimize the impact.

Head of Emergency Response
Headquarter

Emergency Response Headquarter members(executive officers and Head of Functional Divisions)

Specialized response team
Human resources

Information systems

Facilities/equipment

Company-wide policies/support

1. Basic policies
1. Ensuring safety

2. Protection of customer assets

3. Protection of corporate assets

4. Business continuity

Secretariat(Risk Management Department)

Public relations

Accounting/finance

Report/request

SBU Emergency Response Headquarter

GovernanceInstructions

Group GRC Division

41

Training for all employees of
the PERSOL Group (once a
year)

Instructions

Employees

Whistleblowing/
consultation

Compliancetraining for all
employees

Persons in charge ofpromoting internal control

Instructions

Officer in charge of compliance
Report/communication

Scope

SBU core companies
Cooperation/
supportThe Board

Report/communication

Details

The PERSOL Group has
Corporate Ethics Hotline
established a Corporateawareness rate
85%
Ethics Hotline contact
80%
79%
70%
point at a specializedorganization outside
the PERSOL Group toreceive whistleblowing
FY2016 FY2017 FY2018 FY2019
and consultations from
employees regarding activities that may constitute a violationof laws and regulations. Recognition rate of the Corporate
Ethics Hotline has improved and it is being used by Group
employees in Japan. The number of consultations was 130 in
the fiscal year ended March 2020.
In June 2019, the Corporate Ethics Hotline was registeredin the Whistleblowing Compliance Management System (selfadaptation declaration registration
system) under the jurisdiction of
the Consumer Affairs Agency.

Value Strategy

PERSOL HOLDINGS

Results for fiscal year ended
March 2020

Name

trainings to identify issues in the manuals and make improvements.

Value Story

The PERSOL Group has established the Group GRC Division
within PERSOL HOLDINGS to formulate basic compliancepolicies for the Group as a whole and to promote complianceat Group companies.
In addition, the SBU Internal Control Promotion Officers,
who are designated at core companies of each SBU, support
the promotion of compliance and the implementation ofcompliance measures at Group companies.

Whistleblowing system

Introduction

The PERSOL Group views compliance as meeting thedemands and expectations of society and conducting
business activities with integrity.
Based on this view, the PERSOL Group established thePERSOL Group Code of Conduct in November 2019.
This Code of Conduct sets out the basic behaviors basedon compliance required of all officers and employees of thePERSOL Group, both in Japan and abroad.
We will act with high ethical standards and integrity
based on the PERSOL Group Code of Conduct in order tocontinue to be trusted by our customers and society.

Compliance training
In addition to providing annual compliance training to all
Group employees in Japan, we also conduct education andtraining programs at each Group company tailored to eachbusiness and region to raise awareness of complianceacross the Group.
Compliance training for all employees in the fiscal
year ended March 2020 focused on topics such as abuseof power, raising awareness of information security andresponding to cyberattacks. The completion rate within
the three-month training period was 97.1%. In addition,
the training for newly appointed managers included a
discussion on compliance management, and the legal
newsletter provided explanations on copyright, brandmanagement and trademarks, and insider trading.

4. Response to COVID-19
In response to the COVID-19 pandemic, we established an

2. Initiatives during normal times

Emergency Response Headquarter at PERSOL HOLDINGS in

The PERSOL Group has formulated initial response manuals andFebruary 2020 and continued our business activities undera business continuity plan in preparation for crises, and we havethe basic policy of giving top priority to the safety and healthbeen improving their effectiveness such as by regularly conductingof all our stakeholders. We have taken preventive measures
such as encouraging teleworking and staggered work hours,

Initial response
Manuals• Disaster responsemanual• Survival card

encouraging holding internal and external events and meetings
with large numbers of participants online, and thoroughly

Crisis management tools• Safety confirmation
system1 Trainings, etc.
2 Identification ofBusiness continuity
Manuals• Business continuity plan (BCP)

issues3 Improvement on
issuesimplementing infection prevention measures in order to createa safe and secure work environment.
In the event that an employee of the PERSOL Group is
confirmed to have been infected, we work with the local healthdepartment to quickly implement the necessary measures toprevent the spread of the infection in order to prioritize thesafety of our employees and others involved and minimize theimpact on our business.

PERSOL Group Integrated Report 202042

Financial and Non-Financial Data

Financial data
Net sales

Operating profit/Operating profit margin(Millions of yen)

(Millions of yen)
925,818

970,572(Millions of yen)

5.6%

5.4%

5.0%

4.0%

591,995

44,111
33,40928,052

2017/3

2018/3

2019/32020/3

2016/32017/3

Shareholders’ equity(Millions of yen)

(Millions of yen)

24,361

59,972

36,06817,356

17,82043,43339,085

2018/3

2019/32020/3

2016/32017/3

2018/3402,336

56,35648,026

370,839

370,993
125,382

36,408

7,769

Operating profit

Total assets*4(Millions of yen)

234,972

136,725

139,066

2017/3

2018/3

2019/32020/3

2016/32017/3

2018/3

2019/32020/3

2016/32017/3

2018/3

2019/32020/3

2016/32020/3Operating profit margin

ROE*1

Dividend per share*2/Payout ratio

ROIC*5

Capital expenditure

Free cash flow

(%)

(Yen)

(%)

(Millions of yen)

(Millions of yen)

57.1%

13.4

15.9

15.3

17.2%
30

25
32.76

5.5

7,481

6,842

-1,786

4,631

13

5.0

11,016

9,534

11.3

19

17

27,212

13.9

24.0%

22.4%

75.94

29,90913,383

13.7

Value Story

91.6%

16.2

15.4

33.28

2019/3

7,612

(Yen)

75.76

154,792

267,339

Net profit per share*1*2

104.39159,165

Introduction

2016/3

EBITDA*3

4.8%

722,183
517,597

Net profit attributable to owners ofparent company*1

2017/3

2018/3

2019/32020/3

2016/32017/3

2018/3

2019/32020/3

2016/32017/3

Dividend per share2018/3

2019/32020/3

2016/32017/3

2018/3

2019/32020/3

2016/32017/3

2018/3

2019/32020/3

2016/32017/3

2018/3

2019/3

Value Strategy-31,729

2016/32020/3

Payout ratio*1 During the fiscal year ended March 2018, an impairment loss on goodwill, etc., of 14.2 billion yen was recorded, because progress had not been made as initially anticipated at some subsidiaries
engaged in developing business in the Asia-Pacific region under the PERSOLKELLY brand, as well as at the part-time job media business, “an.” In addition, during the fiscal year ended March 2020,
extraordinary losses of 19.3 billion yen were recorded, including a restructuring loss of 3.1 billion yen related to termination of the part-time job media business, “an,” and an impairment loss on
goodwill of 12.6 billion yen related to the staffing business of the Programmed segment.
*2 The Company conducted a stock split at a ratio of 1:3 of common shares on October 29, 2015. Net profit per share and dividend per share have been calculated on the basis that the stock split was
effective at the beginning of the fiscal year ended March 2016.

*3 EBITDA = operating profit + depreciation + amortization of goodwill*4 “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018), etc., have been applied since the beginning of the fiscal year ended March 2019.
Total assets prior to the fiscal year ended March 2019 represent figures to which the said accounting standards have been retroactively applied.
*5 ROIC = net operating profit after tax before amortization of goodwill / invested capital (= interest-bearing liabilities + equity capital)

Number of employees*6

Number of employees (by segment)*7*8(Persons)(Persons)

Percentage of women in
managerial positions*8(%)

50,77427.2

45,43437,812
11,364
22,143

38,95445,17915,6696,480

2018/3

2019/3

5,595

2020/3The number of employees has increased due tostrengthening of new grad and mid-career recruitment. In
addition, due to the progression of conversions to unlimited
term employment as a result of revisions to the law, thenumber of contingent employees is on a declining trend.

Number of full-time employees (regular employees)
Number of contingent employees(temporary and part-time employees)

23.4

22.8
21.8
19.9
18.5

19.8
20.4

4,531
4,577

4,890

10,422

4,507

2,745

3,159
2,870
1,014

2018/330,642

25,6692,603 2,290
3,527 3,025
1,368

2019/3

4,738
4,293
4,151
1,637

2020/3

During the fiscal year ended March 2020, there was asignificant increase in the number of employees, mainly in
the Temporary Staffing/BPO Segment, due to theprogression of conversions to unlimited term employment,
as a result of revisions to the law.

Temporary Staffing/BPO

Recruiting

Programmed
PERSOLKELLYITOEngineering
Holdings/directly managed companies

19.6
18.1
11.3

17.9
17.0
7.4
1.4

2018/3

2019/32020/3

Recruiting

ITO

Holdings/directly managed companies*6 The number of employees includes employees of overseas operations. The number of employees represents the total of the number of full-time employees (includes employees working at PERSOLGroup companies; employees assigned to work at non-PERSOL Group companies not included) and the annual average number of contingent employees (including temporary and part-time employees).

43

PERSOL Group Integrated Report 2020

(Hours)

(%)

26.4

26.0

24.5

24.0

20.9
19.3
18.9

20.1

(Persons)
1,410

23.3
22.7

18.7

18.0
16.6
16.2

17.7

13.3

Number of employees withdisabilities

14.8
1,191
12.4

12.3
11.3
11.1
10.4
10.8

11.9

11.1

10.6

10.2

10.4
10.4
9.6
8.9

10.5
6.5

10.4

2018/3

2019/32020/3

Initiatives to ensure proper working hours have beenpromoted since 2016. As a result of these initiatives, theaverage hours of overtime are on a decreasing trend,
across the Group.

Temporary Staffing/BPO
EngineeringGroupwide

Recruiting

ITO

Holdings/directly managed companies

2018/3

2019/32020/3

The turnover rate is now decreasing across the Group,
due to a focus on revising the personnel system at eachcompany and onboarding measures.

Temporary Staffing/BPO
EngineeringGroupwide

601

5.9

5.5

1.7

The numbers have been stable since 2018, due tointegration of personnel management systems.
Groupwide initiatives to promote the advancement of
women have commenced since 2019, and numbers are on
an increasing trend.

EngineeringGroupwide

Turnover rate *8

13.1

1.9

Temporary Staffing/BPO

Average hours of overtime *8

GovernanceNon-financial data

Recruiting

2017/62018/6

2019/6

The number of employees with disabilities has been
increasing, in line with the Group’s growth throughvarious models, including special subsidiary companies.

ITO

Holdings/directly managed companies*7 The number of employees includes employees of overseas operations.
*8 Although the PERSOL Group shifted its business to an SBU structure in April 2020, in the preparation of these graphs, figures for the segments prior to that shift have been used.

PERSOL Group Integrated Report 202044

Corporate Profile/Stock Information

Editorial Policy

Corporate Profile

This integrated report is a tool for communicating comprehensive information, integrating financial and non-PERSOL HOLDINGS CO., LTD.

Established

October 1, 2008

Head Office

1-15-5 Minami-Aoyama, Minato-ku, Tokyo 107-0062, Japan

Registered Office2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, Japan

URL

https://www.persol-group.co.jp

financial information about the PERSOL Group, including its business activities, IR activities and sustainability/
SDGs initiatives. 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 our shareholders
and investors.
This report extracts the basic information, financial data, corporate strategies, sustainability informationand other information particularly needed by the readers, based on major guidelines.
In addition to this report, more detailed information for some topics may be found on the PERSOL Groupwebsite (https://www.persol-group.co.jp/en/). Please refer to the website in conjunction with this report.

Reporting Period

Introduction

Company Name

This report covers the fiscal year ended March 2020 (April 1, 2019 to March 31, 2020). However, it alsomentions periods before and after this period when necessary.

50,774 (As of March 31, 2020)
Consolidated Employees* Full-time employees–45,179 (includes employees working at group companies. Employees assigned to work at non-group companies
not included.) Contingent employees (including temporary and part-time employees)–5,595 annual average.

Referenced Guidelines
In editing this report, we referred to the Sustainability Reporting Standard of the Global Reporting Initiative (GRI),
the International Integrated Reporting Framework of the International Integrated Reporting Council (IIRC) andNumber of Group
Companies

136 (41 domestic, 95 overseas) (As of November 1, 2020)

the Guidance for Collaborative Value Creation, among others.

About Guidance for Collaborative Value Creation

Number of Group Bases

680 (492 domestic, 188 overseas) (As of April 1, 2020)

Value Story

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 information that they should communicate
to investors (corporate philosophy, business model, strategy, governance, etc.). Companies are not expected totake this guidance as a rigid set of formal rules; rather, each company is expected to choose the parts that are

Capital17,479 million yen (As of March 31, 2020)

important for its own business model and strategy, and position them within its own value creation story.

Notes on Forward-Looking Statements
The information published in this report includes current plans, strategies and forward-looking statements
Value Strategyof 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 anduncertain factors, including economic trends, fierce competition in the industry, market demand, foreignexchange rates, taxes and regulations.

Stock Information

Although performance results announced in the future may vary greatly from these statements due to2181

Stock ExchangeTokyo Stock Exchange, First Section

Fiscal Year-End

March 31

Base Dates

Shareholders’ Meeting date: March 31
Year-end dividend record date: March 31
Interim dividend record date: September 30

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.
Governance

Stock Codethese various factors, the PERSOL Group is not liable for any losses incurred through the use of the information

Artwork Used on the Cover

Trading Unit

100

The PERSOL Group is a sponsor of Paralym Art World Cup 2020, an art
world cup for people with disabilities from around the world, aimed atcreating opportunities for disabled artists all over the world to be active inGeneral Meeting of
Shareholders

Junesociety regardless of race, disability, gender or age.
The cover art, which is based on the 2020 theme of Peace, was createdby Shigeo Tanno, who is active as a Paralym Art artist while working at
PERSOL THANKS, a special subsidiary company of the PERSOL Group.

Shareholder Register
Administrator
Special AccountManagement Institution

Mitsubishi UFJ Trust and Banking Corporation

Public Notice Method

Electronic public notice
Notification URL: https://www.persol-group.co.jp(In case electronic notification is unavailable due to technical difficulties or other problems, thecompany will notify via The Nihon Keizai Shimbun.)

What is Paralym Art?
Paralym Art is a program by SHOUGAISHA JIRITSU SUISHIN KIKOU ASSOCIATION. It provides works of art
by persons with disabilities to companies and individuals, and compensates the artists. Its main objective

45

PERSOL Group Integrated Report 2020is to support the autonomy of persons with disabilities who cannot participate in society and are struggling
economically. Through art, the program promotes participation in society and economic independence bypeople with disabilities, without relying on social security benefits. Artist registration is free, and as of August
2020, approximately 570 artists have registered with the program.

PERSOL Group Integrated Report 202046