R

Yumeshin Holdings / 2362
COVERAGE INITIATED ON:

2011.03.09

LAST UPDATE:

2021.02.26

Shared Research Inc. has produced this report by request from the company discussed in the report. The aim is toprovide an “owner’s manual” to investors. We at Shared Research Inc. make every effort to provide an accurate,
objective, and neutral analysis. In order to highlight any biases, we clearly attribute our data and findings. We will
always present opinions from company management as such. Our views are ours where stated. We do not try toconvince or influence, only inform. We appreciate your suggestions and feedback. Write to us at
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LAST UPDATE: 2021.02.26

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INDEX
How to read a Shared Research report: This report begins with the trends and outlook section, which discusses the company’s most recent
earnings. First-time readers should start at the business section later in the report.

Executive summary ----------------------------------------------------------------------------------------------------------------------------------- 3
Key financial data ------------------------------------------------------------------------------------------------------------------------------------- 5
Recent updates ---------------------------------------------------------------------------------------------------------------------------------------- 6
Highlights ------------------------------------------------------------------------------------------------------------------------------------------------------------6
Trends and outlook -----------------------------------------------------------------------------------------------------------------------------------------------8
Business ------------------------------------------------------------------------------------------------------------------------------------------------ 22
Business description -------------------------------------------------------------------------------------------------------------------------------------------- 22
Business model --------------------------------------------------------------------------------------------------------------------------------------------------- 27
Group companies ----------------------------------------------------------------------------------------------------------------------------------------------- 30
Strengths and weaknesses------------------------------------------------------------------------------------------------------------------------------------ 31
Market and value chain ---------------------------------------------------------------------------------------------------------------------------------------- 32
Historical financial statements ------------------------------------------------------------------------------------------------------------------ 36
Income statement ----------------------------------------------------------------------------------------------------------------------------------------------- 51
Statement of financial position------------------------------------------------------------------------------------------------------------------------------ 53
Statement of cash flows --------------------------------------------------------------------------------------------------------------------------------------- 55
Other information ---------------------------------------------------------------------------------------------------------------------------------- 56
History -------------------------------------------------------------------------------------------------------------------------------------------------------------- 56
News and topics ------------------------------------------------------------------------------------------------------------------------------------------------- 57
Major shareholders --------------------------------------------------------------------------------------------------------------------------------------------- 60
Top management ----------------------------------------------------------------------------------------------------------------------------------------------- 60
Dividends and shareholder benefits ---------------------------------------------------------------------------------------------------------------------- 60
Company profile ------------------------------------------------------------------------------------------------------------------------------------------------- 61

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Executive summary
Business◤

Yumeshin’s main businesses are Construction Technician Temporary Staffing and Ancillary Services and Engineer Temporary
Staffing and Ancillary Services. In FY09/20, the former business generated 64.6% of revenue and 94.1% of operating profit,
and the latter 33.9% of revenue and 9.3% of operating profit.

◤

The company signs a worker staffing agreement with a client and dispatches its own full-time employees to perform the job
on client sites. The client directly manages the staff and can utilize them for the duration of the assignment. As opposed to aregistration-based staffing system, the company has an indefinite employment contract with its employees and pays themongoing salaries. Under a registration-based staffing arrangement, an employment contract between the temporary
employee and the temporary staffing company arises only once there is a work request from the client company and there
is no salary payment in the absence of work request.

◤

The Construction Technician Temporary Staffing and Ancillary Services business is conducted through Yumeshin Co., Ltd. In
construction, timing of orders is uncertain, site locations change with each project, duration of projects vary and arecomparatively short, and the work is labor intensive. According to the company, this makes outsourcing perfectly suited to
the needs of the industry. While many of its peers respond to outsourcing needs in various fields, Yumeshin has focused on
construction staffing.

◤

Yumeshin mainly provides workers in their 20s. Since the bubble burst in the 1990s, the domestic construction workforce
has aged as firms cut back on new hiring. There is now strong demand for young workers on construction sites, partly
owing to difficult physical conditions—including extreme weather and exposure to the elements—and to the fact that young
workers offer nimble footwork while their billing rates are lower. Yumeshin thus focuses on hiring and dispatching young
workers to capitalize on this demand.

◤

The Engineer Temporary Staffing and Ancillary Services business is conducted through Yume Technology Co., Ltd.
(formerly Fullcast Technology Co., Ltd.), which became a wholly owned subsidiary of Yumeshin Holdings in January 2019.
Yume Technology employees (technicians), who have experience in various fields, including semiconductors, electrical andelectronic apparatuses, machinery, information technology, and chemistry, provide services in response to the research anddevelopment needs of client companies under worker staffing or outsourcing agreements.

◤

The company’s revenue is determined by the number of staff that it dispatches, utilization rates, hours dispatched, andbilling rates. The majority of cost of revenue is labor costs. The gross profit margin remains around 30%. SG&A expenses aremainly personnel and hiring expenses (advertising and others), and the SG&A-to-revenue ratio remains in the 16–21%
range.

◤In January 2021, Yumeshin announced an absorption-type merger with BeNEXT Group, Inc., with a (scheduled) effective
date of April 1, 2021 (the company will be dissolved as a result of the merger). The name of the surviving company willchange to BeNEXT-Yumeshin Group Co. The two companies have almost no overlap in customers in their core businesses,
so the merger will strengthen their business portfolios in a balanced manner. They say the merger will lead to enhanced
hiring and training capacity through an expansion of scale.

Earnings◤

In FY09/20, revenue was JPY58.7bn (+11.7% YoY), operating profit was JPY5.3bn (+36.4% YoY), pre-tax profit was JPY5.1bn(+31.2% YoY), and profit attributable to owners of parent was JPY3.6bn (+20.6% YoY).

◤

For FY09/21, the company forecasts revenue of JPY61.0bn (+4.0% YoY), operating profit of JPY6.0bn (+13.1% YoY), pre-tax◤

In November 2020, Yumeshin announced its medium-term management plan for FY09/21–FY09/25. The new plan targets

profit of JPY5.8bn (+14.3% YoY), and profit attributable to owners of parent of JPY3.8bn (+6.8% YoY).
FY09/25 revenue of JPY114.0bn and operating profit of JPY16.5bn. The company aims for business expansion throughaggressive hiring in the Construction Technician Temporary Staffing and Ancillary Services business and the Engineer
Temporary Staffing and Ancillary Services business.

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Strengths and weaknesses
Shared Research thinks Yumeshin’s strengths include its brand recognition based on its stock market listing, an establishedtraining system that turns people with no experience into workers who can be dispatched to construction sites after a shorttraining period, and its effective use of younger employees. Weaknesses include performance in favorable economic periods
when younger employees may look elsewhere for work and dependence on the construction industry (see the Strengths andweaknesses section for details).

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Key financial data
Income statement(JPYmn)
Revenue
YoY
Gross profit
YoY
Gross profit margin
Operating profit
YoY
Operating profit margin
Pre-tax profit
YoY
Pre-tax profit margin
Profit attributable to owners of the parent
YoYProfit marginPer-share data
Shares issued (year-end; '000)
EPS
Dividend per share
Book value per share
Balance sheet (JPYmn)
Cash and cash equivalents
Total current assets
Tangible fixed assets
Goodwill
Total noncurrent assets
Total assets
Trade and other payables
Short-term debt
Total current liabilities
Long-term debt
Total noncurrent liabilities
Total liabilities
Total equity
Total interest-bearing debt
Cash flow statement (JPYmn)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Financial ratios
ROA (RP-based)
ROE
Ratio of equity attributable to owners of the parent

FY09/11 FY09/12 FY09/13 FY09/14 FY09/15 FY09/16 FY09/17 FY09/18 FY09/19 FY09/20 FY09/21
JGAAP
IFRS IFRS Est.
JGAAP
JGAAP
JGAAP
JGAAP
JGAAP
JGAAP
JGAAP
JGAAP
58,66961,00040,41952,50530,51021,11623,271
16,482
10,982
12,538
6,817
40.2%
61.1%
14.2%
31.5%
28.1%
10.2%
31.1%
32.5%
29.9%
4.0%
16,175
12,33915,272
8,781
5,150
6,563
4,583
3,159
3,450
1,899
27.5%
33.8%
40.5%
23.8%
12.4%
9.2%
32.8%
27.4%
66.3%
27.6%
29.1%
30.5%
28.2%
28.8%
27.8%
24.4%
27.5%
27.9%
28.8%
543
1,195
1,230
1,857
1,727
2,433
2,362
5,186
4,720
5,306
6,000
13.1%
119.6%
-9.0%
40.9%
-2.9%
-7.0%
3.0%
51.0%
4.4%
120.1%
8.0%
10.9%
9.8%
11.3%
8.2%
10.5%
7.7%
12.8%
9.0%
9.0%
9.8%
5,800
5,076
4,558
2,424
4,941
1,960
2,463
2,952
1,296
1,771
451
-33.6%
25.7%-1.6%
103.8%
-7.8%
14.3%
36.7%
66.7%
187.2%-18.3%
9.5%
6.6%
11.8%
14.1%
17.9%
9.3%
10.6%
7.9%
12.2%
8.7%
8.7%
3,557
3,800
102
739
1,389
2,246
1,882
1,623
1,426
3,636
2,504
6.8%
154.9%-31.1%-13.7%-12.1%-16.2%
88.0%
61.8%-73.5%
622.5%
6.2%
6.1%
4.8%
4.7%
9.0%
8.9%
7.0%
13.6%
6.7%
11.1%
1.5%
74,573
1.4
2.0
26.6

74,573
12.6
4.0
35.9

74,573
22.7
20.0
79.3

74,573
34.6
30.0
112.5

74,573
27.8
35.0
181.8

74,573
21.8
35.0
168.6

74,573
19.1
35.0
160.7

74,573
48.8
35.0
172.6

78,842
32.7
35.0
155.8

78,862
46.9
35.0
154.2

2,305
3,917
1,388
718
2,713
6,630
10
2,195
3,400
1,088
1,472
4,872
1,757

2,565
4,684
1,412
628
2,986
7,670
14
1,826
3,402
1,509
1,932
5,334
2,336

4,262
6,457
1,465
516
3,458
9,916
9
840
2,455
1,649
2,082
4,538
5,378

5,755
8,856
811
391
3,950
12,806
12
856
3,593
893
1,307
4,899
7,907

11,46015,210
940
309
4,588
19,798
9
1,106
4,031
1,219
1,649
5,681
14,117

8,724
13,334
1,353
1,175
5,766
19,118
11
891
3,552
1,645
2,055
5,606
13,512

8,556
14,839
1,080
899
5,528
20,401
25
1,733
5,848
1,045
1,532
7,381
13,08011,301
18,887
938
610
4,678
23,571
9
1,309
6,647
2,538
2,952
9,599
13,973

9,608
18,8631,261
3,615
10,001
28,864130
4,459
10,977
5,170
5,966
16,943
11,921

15,426
24,775
2,994
3,429
11,62436,399567
2,675
17,013
6,051
7,825
24,838
11,561

3,284

3,335

2,488

1,749

2,325

2,536

2,779

3,847

9,629

8,726

528
-409
4

1,064
202
-152

793
180
595

1,659
620
-734

713
-178
5,272

726
-1,118-2,173

1,536
417-2,027

3,929
415-1,592

3,113-4,400
-305

9,934
476
-5,088

7.7%
5.8%
23.5%

18.1%
40.4%
27.4%

20.1%
39.1%
50.4%

26.0%
36.3%
57.6%

12.0%
18.0%
68.5%

12.7%
12.4%
65.7%

12.3%
11.6%
58.7%

22.5%
29.3%
54.6%

17.4%
20.2%
41.1%

15.2%
31.1%
32.1%

50.4
-

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
The company voluntarily applied IFRS from FY09/20.

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Yumeshin Holdings / 2362
LAST UPDATE: 2021.02.26

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Recent updates
Highlights
On February 26, 2021, Shared Research updated the report following interviews with Yumeshin Holdings Co., Ltd.

On February 5, 2021, the company announced earnings results for Q1 FY09/21; see the results section for details.

On January 29, 2021, the company announced the execution of an absorption-type merger agreement with BeNEXT Group, Inc.
On the same day, Yumeshin Holdings and BeNEXT Group reached a resolution at each company’s Board of Directors meeting ona merger of the two companies with a (scheduled) effective date of April 1, 2021. Under the absorption-type merger agreement,
Yumeshin Holdings will be the absorbed company and BeNEXT Group will be the surviving company, and after the merger thecompany name of the surviving company will change to BeNEXT-Yumeshin Group Co.
Ahead of the merger’s (scheduled) effective date of April 1, 2021, Yumeshin Holdings common stock will be delisted from theTokyo Stock Exchange on March 30, 2021 (final trading date: March 29, 2021).
The exchange ratio for the merger is 0.63 shares of BeNEXT Group for each share of Yumeshin Holdings.
Overview of the two companies
Surviving company

Absorbed company

Company name

BeNEXT Group

Yumeshin Holdings

Business overview

Temporary staffing

Temporary staffing

Established

August 1997

January 1980

No. of issued shares

42,851,700

78,861,940

No. of employees

18,1259,848

BeNEXT Group: Business results and financial position for the past three years
FY06/18

FY06/19

FY06/20

Net assets

13,71515,802

14,765

Total assets

28,12831,20731,730

Revenue

65,36381,59681,755

Operating profit

4,297

5,719

4,666

Net income

2,569

3,706

1,335

FY09/18

FY09/19

FY09/20(IFRS)Net assets (equity)

13,972

11,92011,561

Total assets

23,571

28,86336,399

Revenue

40,41952,50558,669Operating profit

5,186

4,717

5,306

Net income (profit)

3,635

2,504

3,557

(JPYmn)Yumeshin Holdings: Business results and financial position for the past three years(JPYmn)On the same day, the company announced a revision to its interim dividend payment forecast (no dividend payment) for
FY09/21.

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At the Board of Directors meeting held on January 29, 2021, Yumeshin Holdings resolved that it will revise its interim dividend
payment forecast for FY09/21 (previous forecast: JPY15.0 per share), and will not pay any interim dividend for FY09/21, under thecondition of a successful completion of the merger between Yumeshin Holdings and BeNEXT Group.

For previous releases and developments, refer to the News and topics section.

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Trends and outlook
Construction orders (JPYmn)
2020
Total orders
YoY
2019
Total orders
YoY
2018
Total orders
YoY
2017
Total orders
YoY
2016
Total orders
YoY
2015
Total orders
YoY
2014
Total orders
YoY

2013
Total orders
YoY

2012
Total orders
YoY

2011
Total orders
YoY

Jan.–Mar.
22,063-12.7%
Jan.–Mar.
25,272
14.1%
Jan.–Mar.
22,144-1.7%
Jan.–Mar.
22,536-1.8%
Jan.–Mar.
22,952
13.6%
Jan.–Mar.
20,205
6.2%
Jan.–Mar.
19,024
3.6%
Jan.–Mar.
18,357
10.3%
Jan.–Mar.
16,646
47.5%
Jan.–Mar.
11,285
0.6%

Apr.–Jun.
17,860-4.4%
Apr.–Jun.
18,687-4.0%
Apr.–Jun.
19,4642.4%
Apr.–Jun.
19,002-3.6%
Apr.–Jun.
19,715
4.2%
Apr.–Jun.
18,914
5.2%
Apr.–Jun.
17,9829.0%
Apr.–Jun.
16,49313.9%
Apr.–Jun.
14,48072.3%
Apr.–Jun.
8,404
-5.6%

Jul.–Sep.
20,396-5.5%
Jul.–Sep.
21,592-1.1%
Jul.–Sep.
21,8301.2%
Jul.–Sep.
21,565-5.6%
Jul.–Sep.
22,852
4.3%
Jul.–Sep.
21,911
8.9%
Jul.–Sep.
20,126-8.7%
Jul.–Sep.
22,03421.0%
Jul.–Sep.
18,20963.2%
Jul.–Sep.
11,158-2.4%

Oct.–Dec.
19,339-3.7%
Oct.–Dec.
20,079-1.4%
Oct.–Dec.
20,373-1.3%
Oct.–Dec.
20,631-1.2%
Oct.–Dec.
20,8790.6%
Oct.–Dec.
20,746
7.2%
Oct.–Dec.
19,356
5.6%
Oct.–Dec.
18,338
2.7%
Oct.–Dec.
17,86274.9%
Oct.–Dec.
10,2101.7%

Total
79,658-7.0%
Total
85,6302.2%
Total
83,8100.1%
Total
83,734-3.1%
Total
86,398
5.7%
Total
81,776
6.9%
Total
76,488
1.7%
Total
75,222
6.6%
Total
70,544
71.8%
Total
41,057-1.3%

Source: Shared Research based on Current Survey on Orders Received for Construction, Ministry of Land, Infrastructure, Transport and Tourism

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Quarterly trends and results
Cumulative(JPYmn)
Revenue
YoY
Gross profit
YoY
Gross profit margin
SG&A expenses
YoY
SG&A ratio
Operating profit
YoY
Operating profit margin
Pre-tax profit
YoY
Pre-tax profit margin
Profit attrib. to owners of the parent
YoYProfit margin

FY09/20 FY09/21
Q1
Q1
14,491
15,085
-3.9%
4,036
4,278
-5.7%
28.4%
27.8%
2,720
2,663
-2.1%
18.4%
18.0%
1,869
1,606
16.4%
10.6%
12.9%
1,859
1,648
12.9%
12.8%
10.9%
941
1,309
39.1%
9.0%
6.2%

FY09/21% of Est. FY Est.
61,000
23.8%
4.0%

31.2%
32.1%
34.4%

6,000
13.1%
9.8%
5,800
14.3%
9.5%
3,800
6.8%
6.2%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: The company voluntarily applied IFRS from full-year FY09/20. YoY changes are based on previous year’s results converted into IFRS for reference purposes.

Major SG&A expense items

Cumulative(JPYmn)
SG&A expenses
YoY
Personnel expenses
YoY
Hiring expenses
YoY
Other
YoY

FY09/20 FY09/21
Q1
Q1
2,720
2,663
-2.1%
1,278
1,306
2.2%
561
562
0.2%
881
795
-9.7%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: The company voluntarily applied IFRS from full-year FY09/20. YoY changes are based on previous year’s results converted into IFRS for reference purposes.

Breakdown of earnings by segment
Segment revenue and profit
Cumulative (JPYmn)
Revenue
YoY
Construction Technician Temp. Staffing & Ancillary Services

YoY

Engineer Temporary Staffing & Ancillary Services

YoY
Other
YoY

Operating profit

YoY

Construction Technician Temp. Staffing & Ancillary Services

YoY
Segment profit margin

Engineer Temporary Staffing & Ancillary Services

YoY
Segment profit margin
Other
YoY
Segment profit margin

FY09/20 FY09/21
Q1
Q1
15,085
14,491-3.9%
10,022
9,057
-9.6%
4,849
5,205
7.3%
248
242
-2.4%
1,869
1,606
16.4%
1,830
1,658
-9.4%
18.3%
18.3%
77
500
549.4%
1.6%
9.6%
-96
-31
-

FY09/21% of Est. FY Est.
23.8%
61,0004.0%
23.8%
38,0000.2%
23.7%
22,000
10.7%
31.2%
27.6%
55.6%

6,000
13.1%
6,000
-8.9%
15.8%
900
37.8%
4.1%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: The company voluntarily applied IFRS from full-year FY09/20. YoY changes are based on previous year’s results converted into IFRS for reference purposes.

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Construction Technician Temporary Staffing and Ancillary Services earnings
Cumulative(JPYmn)
Revenue
YoY
Gross profit
YoY
Gross profit margin
SG&A expenses
YoY
SG&A ratio
Operating profit
YoY
Operating profit margin

FY09/20 FY09/21
Q1
Q1
10,022
9,057
-9.6%
3,044
2,558
-16.0%
30.4%
28.2%
1,214
1,267
4.4%
12.1%
14.0%
1,830
1,658
-9.4%
18.3%
18.3%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: The company voluntarily applied IFRS from full-year FY09/20. YoY changes are based on previous year’s results converted into IFRS for reference purposes.

Construction Technician Temporary Staffing and Ancillary Services: Number of technicians

Cumulative
No. of technicians (quarter-end)
New hires
Departures
Retention rate
Quarterly
New hires
Departures
Retention rate

Q1
6,078
635
656
70.9%
Q1
635
656
70.9%

FY09/20
Q2
Q3
5,936
5,638
1,219
1,514
1,382
1,975
69.9%
69.5%
FY09/20
Q2
Q3
584
295
726
593
69.0%
68.8%

Q4
5,348
1,805
2,556
69.1%

Q1
5,526
585
407
70.5%

Q4
291
581
67.7%

Q1
585
407
70.5%

FY09/21Q2Q3Q4FY09/21Q2
Q3

Q4

Source: Shared Research based on company data
Note: Retention rate: Number of technicians at quarter end / (Number of technicians at end previous year’s quarter + cumulative annual new hires)

Construction Technician Temporary Staffing and Ancillary Services business: Revenue metrics

Cumulative
No. of technicians (average)
YoY
Utilization rate
YoY change
Average hours per day
YoY
Average hourly wage (JPY)
YoY
Quarterly
No. of technicians (average)
YoY
Utilization rate
YoY change
Average hours per day
YoY
Average hourly wage (JPY)
YoY

Q1
6,105
13.8%
93.4%
0.2pp
9.57
-0.4%
3,028
1.8%
Q1
6,105
13.8%
93.4%
0.2pp
9.57
-0.4%
3,028
1.8%

FY09/20
Q2
Q3
6,036
5,945
10.1%
5.6%
93.6%
92.7%
0.6pp
0.0pp
9.60
9.48
-0.5%
-1.3%
3,064
3,105
2.9%
4.0%
FY09/20
Q2
Q3
5,967
5,763
6.6%
-2.8%
93.8%
90.9%
1.0pp
-1.2pp
9.63
9.24
-0.7%
-2.7%
3,100
3,187
4.1%
6.2%

Q4
5,816
1.2%
92.3%
-0.4pp
9.46
-1.3%
3,126
4.8%

Q1
5,475
-10.3%
92.7%-0.7pp
9.41
-1.7%
3,196
5.5%

Q4
5,429
-10.9%
91.1%-1.6pp
9.40
-1.3%
3,189
7.1%

Q1
5,475
-10.3%
92.7%-0.7pp
9.41
-1.7%
3,196
5.5%

FY09/21Q2Q3Q4FY09/21Q2
Q3

Q4

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

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Construction Technician Temporary Staffing and Ancillary Services segment: Average hourly billing rates based on years of employment

Cumulative (average)(JPY/hour)First year
YoY
Second year
YoY
Third year
YoY
Fourth year and beyond
YoY
Quarterly (average)(JPY/hour)First year
YoY
Second year
YoY
Third year
YoY
Fourth year and beyond
YoY

FY09/20
Q2
Q3
2,783
2,812
2.5%
3.4%
3,074
3,066
-0.1%
0.3%
3,279
3,271
1.4%
0.9%
3,637
3,636
1.9%
1.6%
FY09/20
Q2
Q3
2,821
2,870
4.0%
5.2%
3,076
3,090
0.5%
0.9%
3,293
3,255
2.2%
-0.2%
3,634
3,654
2.7%
1.1%

Q1
2,745
1.1%
3,056
-0.6%
3,265
0.6%
3,620
1.1%
Q1
2,745
1.1%
3,056
-0.6%
3,265
0.6%
3,620
1.1%

Q4
2,829
4.2%
3,077
0.0%
3,278
1.0%
3,642
1.7%

Q1
2,877
4.8%
3,062
0.2%
3,278
0.4%
3,642
0.6%

Q4
2,880
6.7%
3,086
-0.9%
3,299
1.2%
3,660
1.8%

Q1
2,877
4.8%
3,062
0.2%
3,278
0.4%
3,642
0.6%

FY09/21Q2Q3Q4FY09/21Q2
Q3

Q4

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: Shared Research calculated quarterly averages from cumulative figures.

Engineer Temporary Staffing and Ancillary Services earnings

Cumulative(JPYmn)

Revenue

FY09/20 FY09/21
Q1
Q1
4,849

YoY

Gross profit

7.3%

1,144

1,341

-

17.2%

23.6%

25.8%

YoY
Gross profit margin

SG&A expenses

5,205

-

1,067

922

-

-13.6%

SG&A ratio

22.0%

17.7%

Operating profit

77

500

-

549.4%

1.6%

9.6%

YoY

YoY
Operating profit margin

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: The company voluntarily applied IFRS from full-year FY09/20. YoY changes are based on previous year’s results converted into IFRS for reference purposes.

Engineer Temporary Staffing and Ancillary Services segment: Number of technicians
Cumulative
No. of technicians (quarter-end)
New hires
Departures
Retention rate
Quarterly
New hires
Departures
Retention rate

Q1
3,703
386
323
79.5%
Q1
386
323
79.5%

FY09/20
Q2
Q3
3,638
3,568
757
861
759
933
79.0%
77.9%
FY09/20
Q2
Q3
371
104
436
174
78.5%
75.7%

Q4
3,579
1,076
1,137
77.4%

Q1
3,604
246
221
77.7%

Q4
215
204
75.9%

Q1
246
221
77.7%

FY09/21Q2Q3Q4FY09/21Q2
Q3

Q4

Source: Shared Research based on company data
Note: Retention rate: Number of technicians at quarter end / (Number of technicians at end previous year’s quarter + cumulative annual new hires)

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Engineer Temporary Staffing and Ancillary Services segment: Revenue metrics
Cumulative

Q1
3,637
36.8%
90.1%
-1.0pp
7.66
-0.3%
2,974
5.6%

No. of engineers (average)
YoY
Utilization rate
YoY change
Average hours per day
YoY
Average hourly wage (JPY)
YoY
Quarterly

Q1
3,637
36.8%
90.1%
-1.1pp
7.66
-0.3%
2,974
5.6%

No. of engineers (average)
YoY
Utilization rate
YoY change
Average hours per day
YoY
Average hourly wage (JPY)YoY

FY09/20
Q2
Q3
3,626
3,602
32.1%
24.0%
89.6%
90.0%
-1.8pp-0.1pp
7.60
7.53
-0.4%
-2.1%
2,995
3,048
4.8%
6.3%
FY09/20
Q2
Q3
3,615
3,554
27.7%
10.3%
89.1%
90.8%
-2.8pp
3.8pp
7.54
7.39
-0.5%
-5.4%
3,016
3,154
4.0%
9.3%

Q4
3,592
16.7%
89.7%
0.2pp
7.64
-1.5%
3,076
7.7%

Q1
3,568
-1.9%
88.4%
-1.7pp
7.88
2.9%
3,149
5.9%

Q4
3,562
-1.1%
88.8%
1.3pp
7.97
0.0%
3,160
11.8%

Q1
3,568
-1.9%
88.4%
-1.9pp
7.88
2.9%
3,149
5.9%

FY09/21Q2Q3Q4FY09/21Q2
Q3

Q4

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Q1 FY09/21 results▷

Revenue:

JPY14.5bn (-3.9% YoY)▷

Operating profit:

JPY1.9bn (+16.4% YoY)

Pre-tax profit:

JPY1.9bn (+12.9% YoY)

Profit*:

JPY1.3bn (+39.1% YoY)▷▷

*Profit attributable to owners of the parent

▷

▷

▷

In Q1, with demand for temporary staffing on a recovery trend, the company resumed hiring that was curtailed in FY09/20 andfocused on increasing the number of technicians on its books to previous levels. It also worked on maintaining and raising its
utilization and billing rates.
Revenue declined YoY. While revenue grew in the Engineer Temporary Staffing and Ancillary Services segment on the back ofhigher billing rates, revenue fell in the Construction Technician Temporary Staffing and Ancillary Services segment as thenumber of technicians on the company’s books declined due in part to hiring restrictions in FY09/20.
Although revenue declined, SG&A expenses decreased and other revenue increased, so profit items from the operating line
down rose YoY. In the Engineer Temporary Staffing and Ancillary Services segment, billing rates increased driven by progress inengineer training.

 SG&A expenses were JPY2.7bn (-2.1% YoY) and the SG&A-to-revenue ratio was 18.4% (+0.4pp YoY). Personnel expenses
came to JPY1.3bn (+2.2% YoY) and hiring expenses to JPY562mn (+0.2% YoY), but rents and outsourcing expenses declined
YoY.
 Other revenue was JPY532mn (+581.7% YoY).

Overviews by segment are as follows.

Construction Technician Temporary Staffing and Ancillary Services▷▷

Revenue:

JPY9.1bn (-9.6% YoY)

Segment profit:

JPY1.7bn (-9.4% YoY)

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Demand for temporary staffing started to recover mainly in regional cities where the COVID-19 impact was limited. While theuncertainty from the pandemic lingers, the structural labor shortage in the construction industry caused by the aging oftechnicians and the absence of young staff remained unchanged.
Restrictions on hiring activities in FY09/20 resulted in a decline in the average number of technicians in Q1, and revenue ended
up lower YoY. Profit also declined YoY on lower revenue and higher SG&A expenses.

Construction Technician Temporary Staffing and Ancillary Services: Revenue and key performance metrics
Revenue declined YoY due to a lower average number of technicians, even though billing rates rose.
As for the key performance metrics, the average number of technicians was down 10.3% YoY, with staff utilization rate down
0.7pp YoY, hours dispatched down 1.7% YoY, and billing rates up 5.5% YoY.

▷

As of end-December 2020, the number of technicians on the company’s books was 5,526. Restrictions on hiring activities in
FY09/20 resulted in a YoY decline of 552 people in Q1, but in Q1 the company turned its attention to hiring activities andimprovement in the retention rate, so the number of technicians actually rose QoQ by 178.
 The number of technicians hired was 585, down 7.9% YoY from 635 in Q1 FY09/20, but up 291 or 101.0% QoQ. The
company conducted hiring activities with the aim of hiring 2,500 technicians during the fiscal year. In Q4 FY09/20 (July–
September 2020), it restricted its hiring activities to maintain the staff utilization rate in the face of uncertainty overdemand trends amid the COVID-19 pandemic, but in Q1 FY09/21 renewed its focus on hiring activities.
 The retention rate was 70.5% (-0.3pp YoY, +2.9pp QoQ). The number of resignations declined due to enhanced
follow-up conducted during FY09/20, and this raised the retention rate QoQ. The company aims to boost the rate to 75%
in the medium term.

Enhanced follow-up of technicians in FY09/20: The company increased the headcount of employees involved in follow-up activities from one person
per 100–200 technicians to one per 50. In addition, it established an Engineer Success Team and systematized the division of labor between follow-up
staff and sales staff. The Engineer Success Team comprises about 10 people who follow a maximum of 50 technicians each, using periodic contact,
visits, and questionnaires to identify those technicians who may have problems that could lead to resignation and work with them to resolve issues.

▷▷▷

The staff utilization rate (number of technicians on assignment divided by total number of technicians) was 92.7% (-0.7pp YoY,
+1.6pp QoQ). In Q1 FY09/20, the COVID-19 outbreak had yet to become apparent, so by comparison the rate was down YoY
in Q1 FY09/21.
Hours dispatched (the average number of hours worked per day) were 9.41 hours (-1.7% YoY, +0.1% QoQ). Starting in Q3
FY09/20 (April–June 2020), hours dispatched declined as overtime hours were reduced due to the pandemic.
The average hourly billing rate was JPY3,196 (+5.5% YoY, +0.2% QoQ). In Q3 FY09/20, Yumeshin reviewed its contracts withcustomers to reflect the revised Worker Dispatching Act (enacted in April 2020), and this drove up the average hourly billingrate. A decline in the ratio of first-year technicians similarly lifted the average hourly billing rate.
 Due to the reduction in hiring in FY09/20, the ratio of first-year technicians whose average hourly rate is relatively low fell
14.0pp to 25.2% from 39.2% in Q1 FY09/20.
 Average billing rates per year of employment were as follows: up 4.8% YoY for first-year technicians, up 0.2% YoY forsecond-year technicians, up 0.4% YoY for third-year technicians, and up 0.6% YoY for four-plus year technicians.

The revised Worker Dispatching Act was enacted in April 2020. It aims to resolve unreasonable differences in treatment between regular andnon-regular (including temporary) employees to realize equal pay for equal work (i.e., the determination of wages based on work content rather thanemployment format).

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Construction Technician Temporary Staffing and Ancillary Services: Gross profit and SG&A expenses
The segment’s gross profit was down 16.0% YoY to JPY2.6bn, weighed down by lower revenue and a decline in GPM to 28.2%(-2.1pp YoY) due to a drop in the ratio of first-year technicians and rise in the ratio of technicians with a comparatively high cost
ratio, which offset growth in billing rates.
SG&A expenses were JPY1.3bn (+4.4% YoY), and the SG&A-to-revenue ratio was 14.0% (+1.9pp YoY), breaking down into
personnel expenses of JPY655mn (+3.1% YoY) and hiring expenses of JPY352mn (+7.3% YoY). Hiring expenses rose as thecompany focused more on hiring activities.

Engineer Temporary Staffing and Ancillary Services▷▷

Revenue:

JPY5.2bn (+7.3% YoY)

Segment profit:

JPY500mn (+549.4% YoY)

Even as the COVID-19 situation stirred a sense of significant uncertainty about the future, at the Engineer Temporary Staffing andAncillary Services business, demand for engineers remained strong, particularly in the manufacturing industry, which has seenhigh levels of capital investment in labor saving and automation, as well as in the IT industry.
Against this backdrop, Yumeshin set a hiring goal of 1,600 engineers for FY09/21 to meet the increasing demand for engineers. In
FY09/20, it also worked to build its career development system by enhancing training programs that help increase the value
added of its engineers. As a result, the system now allows technical support engineers to move up to mid-level engineer positions.
In Q1 FY09/21, the company hired 246 new engineers (386 in Q1 FY09/20), bringing the number of engineers on the company’sbooks at end-December 2020 to 3,604, down 99 YoY.
Revenue rose YoY on improved billing rates and an increase in hours dispatched. Segment profit grew significantly on higher
revenue, improved GPM arising from higher billing rates, and lower SG&A expenses.

Engineer Temporary Staffing and Ancillary Services: Revenue and key performance metrics
Revenue was up YoY due to a rise in average billing rate because some technical support engineers were reclassified as mid-levelengineers and rise in hours dispatched.
As for the key performance metrics, the average number of engineers was down 1.9% YoY, with staff utilization rate down 1.7pp
YoY, hours dispatched up 2.9% YoY, and billing rates up 5.9% YoY.

▷

The average number of engineers was 3,568 (versus 3,637 in Q1 FY09/20), and the number of engineers on the company’sbooks at end-December 2020 was 3,604 (versus 3,703 at end-December 2019).
 In Q1 FY09/21, the company hired a total of 246 engineers (versus 386 in Q1 FY09/20). Despite increased demand for IT
personnel, the number of engineers hired has fallen. However, the company says it plans to enhance its hiring efforts fromQ2 onward and therefore expects to hire more engineers in Q2 than it did in Q1.

▷▷▷

 The retention rate fell to 77.7%, down 1.8pp from 79.5% in Q1 FY09/20.
The staff utilization rate was 88.4%, down 1.7pp YoY from 90.1% in Q1 FY09/20.
Hours dispatched (the average number of hours worked per day) were 7.88 hours (+0.22 hours or +2.9% YoY). Through Q3
FY09/20, hours dispatched continued to trend down, driven by the ongoing impact of the government’s push for work stylereforms and the COVID-19 pandemic, but were flat YoY in Q4 FY09/20 and grew again in Q1 FY09/21.
The average hourly billing rate was JPY3,149 (+JPY175 or +5.9% YoY). As noted above, the average rate went up, becausesome technical support engineers were reclassified as mid-level engineers. In addition, the company reviewed its contracts
with customers to reflect the revised Worker Dispatching Act (explained above), and this lifted the average hourly billing rate.

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 As of end-December 2020, 43.1% (-10.9pp YoY) of the engineers on the company’s books were technical support engineers,
46.3% (+5.6pp YoY) were mid-level engineers, and 10.6 % (+5.2pp YoY) were high-end engineers. The company’s hiring
activities center on technical support engineers, but the number of engineers hired declined in Q1 and some technicalsupport engineers were reclassified as mid-level engineers.
 As part of its engineer training, Yumeshin promotes the acquisition of qualifications. There are now 89 Salesforce.com
certified engineers (versus 68 at end-FY09/20) and 103 AWS certified engineers (versus 54).

Engineer Temporary Staffing and Ancillary Services business: Gross profit and SG&A expenses
The segment’s gross profit was up 17.2% YoY to JPY1.3bn, supported by revenue growth. GPM rose 2.2pp YoY to 25.8% due to ahigher average billing rate.
SG&A expenses were JPY922mn (-13.6% YoY), and the SG&A-to-revenue ratio was 17.7% (-4.3pp YoY), breaking down into
personnel expenses of JPY511mn (+6.7% YoY) and hiring expenses of JPY142mn (-43.7% YoY).

Other
▷
▷

Revenue:

JPY242mn (-2.4% YoY)

Segment loss:

JPY31mn (a segment loss of JPY96mn in Q1 FY09/20)

In Other businesses, Yumeshin operates education and recruitment businesses. In the former, it has promoted online
programming tutorial services. In the latter, it has provided recruitment support services for Japanese companies seeking
overseas human resources and operated Japanese language schools for local hires of Japanese companies in Vietnam, thePhilippines, Taiwan, and South Korea. However, amid the harsh operating environment caused primarily by the global spread of
COVID-19, it has continued to downsize its operations since FY09/20.
Revenue declined YoY, but the segment loss narrowed. In the education business, despite booking advertising expenses, hiringcosts, and other upfront spending, losses were smaller YoY. Downsizing of recruitment support services narrowed the loss forthat business, also contributing to narrowing of segment loss.

Other topics
On January 29, 2021, the company announced the execution of an absorption-type merger agreement with BeNEXT Group, Inc.
On the same day, Yumeshin Holdings and BeNEXT Group reached a resolution at each company’s Board of Directors meeting ona merger of the two companies with a (scheduled) effective date of April 1, 2021. Under the absorption-type merger agreement,
Yumeshin Holdings will be the absorbed company and BeNEXT Group will be the surviving company, and after the merger thecompany name of the surviving company will change to BeNEXT-Yumeshin Group Co.
Ahead of the merger’s (scheduled) effective date of April 1, 2021, Yumeshin Holdings common stock will be delisted from theTokyo Stock Exchange on March 30, 2021 (final trading date: March 29, 2021).
The exchange ratio for the merger is 0.63 shares of BeNEXT Group for each share of Yumeshin Holdings.

Purpose of merger▷

Expanding business area: Yumeshin and BeNEXT Group are both involved in the technician temporary staffing industry, buteach company has its own special characteristics. They have almost no overlap in customers in their core businesses, so themerger will strengthen their business portfolios in a balanced manner.
 Yumeshin has one of the largest shares of the construction technician temporary staffing market in Japan, centered mainly
on dispatching construction supervisors. It is also expanding its temporary staffing and contracting businesses in the

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mechanical, electrical, and electronic engineering fields, particularly in the IT domain, and is enhancing its engineer
training systems.
 The BeNEXT Group is engaged in manufacturing temporary staffing and overseas staffing in the UK and other countries,
centered mainly on engineer temporary staffing for design and development in the mechanical, electrical, and electronicengineering fields. It is also putting energy into hiring and developing IT engineers in response to growing need for▷

personnel in the IT domain.
Enhancing hiring and training capacity: Whereas some companies in the technician temporary staffing industry have strengths
in hiring and dispatching engineers with many years of experience, Yumeshin and BeNEXT Group have both set their eyes onhiring inexperienced workers and providing them with opportunities to develop their careers. For this reason, the twocompanies are highly compatible in terms of expertise in hiring and training. The merger will allow them to combine theirknowledge and experience and share their expertise in improving the skills of their temporary staff through training and skill
enhancement at client companies, leading to enhanced personnel development capabilities. The merger will also allow the▷companies to enhance their hiring capacity through an expansion of corporate scale and other factors.
Strengthening financial base: The merger will allow the companies to strengthen their financial base and establish a structure
for responding to major industry reforms.

Overview of the two companies
Surviving company

Absorbed company

Company name

BeNEXT Group

Yumeshin Holdings

Business overview

Temporary staffing

Temporary staffing

Established

August 1997

January 1980

No. of issued shares

42,851,700

78,861,940

No. of employees

18,1259,848

BeNEXT Group: Business results and financial position for the past three years
FY06/18

FY06/19

FY06/20

Net assets

13,71515,802

14,765

Total assets

28,12831,20731,730

Revenue

65,36381,59681,755

Operating profit

4,297

5,719

4,666

Net income

2,569

3,706

1,335

(JPYmn)Yumeshin Holdings: Business results and financial position for the past three years
FY09/20

FY09/18

FY09/19

Net assets (equity)

13,972

11,92011,561

Total assets

23,571

28,86336,399

Revenue

40,41952,50558,669Operating profit

5,186

4,717

5,306

Net income (profit)

3,635

2,504

3,557

(JPYmn)(IFRS)For details on previous quarterly and annual results, please refer to the Historical financial statements section.

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Full-year company forecast
FY09/21 forecast

Earnings (IFRS)

FY09/20

FY09/21(JPYmn)FY Est.

FY Est.

Revenue

58,669Gross profit

16,175Gross profit margin

4.0%

13.1%

27.6%

SG&A expenses

10,249

SG&A ratio

17.5%

Operating profit

5,306

6,000

9.0%

9.8%

5,076

5,800

8.7%

9.5%

3,557

3,800

6.1%

6.2%

Operating profit margin

Pre-tax profit
Pre-tax profit margin

Profit attributable to owners of the parent
Profit margin

YoY

61,000

14.3%
6.8%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Company forecast for the Construction Technician Temporary Staffing and Ancillary Services segment

Construction Technician Temporary
Staffing and Ancillary Services (JPYmn)
No. of technicians hired
No. of technicians (year-end)

FY09/20
Act.
1,805
5,348

FY09/21
Est.
2,500
5,700

Net increase

-751

352

Retention rate
Revenue

69.1%
37,921

72.6%
38,000Operating profit

6,585

6,000

YoY

YoY
Operating profit margin

5.7%

13.0%
17.4%

0.2%

-8.9%
15.8%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Company forecast for the Engineer Temporary Staffing and Ancillary Services segment

Engineer Temporary Staffing and Ancillary
Services (JPYmn)
No. of engineers hired
No. of engineers (year-end)
Net increase

Revenue
YoY

Operating profit

YoY
Operating profit margin

FY09/20
Act.
1,076
3,579

FY09/21
Est.
1,600
4,200

-61

621

19,87522,00021.5%

653953.2%
3.3%

10.7%

900

37.8%
4.1%

Source: Shared Research based on company data
Notes: Figures may differ from company materials due to differences in rounding methods.

For FY09/21, the company forecasts revenue of JPY61.0bn (+4.0% YoY), operating profit of JPY6.0bn (+13.1% YoY), pre-tax profitof JPY5.8bn (+14.3% YoY), and profit attributable to owners of parent of JPY3.8bn (+6.8% YoY).
The company plans to build up its engineer headcount in FY09/21 after a fall in FY09/20 by improving the retention rate inConstruction Technician Temporary Staffing and Ancillary Services and increasing hiring in Engineer Temporary Staffing andAncillary Services. This will cause expenses to rise, but Yumeshin still targets rises in revenue and profit on earnings growth
especially in Engineer Temporary Staffing and Ancillary Services. In addition, in conjunction with the shift to IFRS in FY09/20, thecompany booked JPY134mn related to allowance for doubtful accounts and other items at overseas partners, JPY339mn inimpairment loss on a Vietnam affiliate, and JPY434mn in impairment loss on a subsidiary in the Philippines. However, it does not
anticipate any similar expenses in FY09/21.

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Construction Technician Temporary Staffing and Ancillary Services
Yumeshin projects revenue of JPY38.0bn (+0.2% YoY) and segment profit of JPY6.0bn (-8.9% YoY). It expects higher revenue due
to an increased number of technicians, but lower profit caused by growth in expenses accompanying increased hiring andenhanced follow-up activities for technicians on the company’s books.
The company is targeting 5,700 technicians (+6.6% YoY) on the books by end-FY09/21. It expects the staff utilization rate andbilling rates to be essentially flat YoY.
In FY09/20, the retention rate temporarily fell to 69.1% (versus 72.7% in FY09/19). The company plans to hire 2,500 technicians
during the year, identify those at lower risk of quitting, and raise the retention rate to 75% in the medium term. It plans to step
up its efforts to follow up technicians on its books, boosting the headcount of those involved in follow-up activities from one per
100–200 technicians to one per 50. In addition, it will establish an Engineer Success Team and systematize the division of labor
between follow-up staff and sales staff. The Engineer Success Team will comprise about 10 people who will follow a maximum of
50 technicians each, using periodic contact, visits, and questionnaires to identify those technicians who may have problems thatwould lead to resignation and work with them to resolve issues.

Engineer Temporary Staffing and Ancillary Services
Yumeshin projects revenue of JPY22.0bn (+10.7% YoY) and segment profit of JPY900mn (+37.8% YoY). It expects higher revenue
and profit due to an increased number of engineers.
The company is targeting 4,200 engineers (+17.4% YoY) on the books by end-FY09/21. In addition, it expects higher billing rates
to boost revenue, but increased hiring to result in only moderate improvement in the staff utilization rate.
The company plans to hire 1,600 technicians during the year and boost billing rates. Its plans include shifting from low-rate
clerical jobs to engineers, and enhancing the skills of engineers on its books by retraining. It plans to have 4,200 engineers at
end-FY09/21.

Other
The company plans to downsize its recruitment business, which it has been mainly operating overseas, and integrate it with theeducation business it has been running in Japan. It thus hopes to narrow segment losses.

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Long-term outlook
In November 2020, the company announced its medium-term management plan for FY09/21–FY09/25.
As Japan’s workforce shrinks, the construction industry workforce in particular is aging amid a lack of young workers, and the IT
industry faces an increasingly acute shortage of engineers. Yumeshin has focused on hiring and training employees in response.
In FY09/20, as it temporarily curtailed hiring due to the COVID-19 pandemic, the company’s engineer headcount stagnated. As of
November 2020, with the economy recovering, the company was gradually resuming recruitment activities. Its new
medium-term plan through FY09/25 aims at growth across the group driven by hiring and training personnel.
The Construction Technician Temporary Staffing and Ancillary Services segment’s revenue in FY09/20 (IFRS) was about 2.7x what
it was in FY09/15 (Japanese standards), while segment profit reached about 3.8x. This segment was the company’s growth driver.
During this time, in the Engineer Temporary Staffing and Ancillary Services, the company hired more than 1,000 people each year,
and has gained experience in hiring and training even inexperienced people to become engineers. Even as it targets stableearnings growth in the Construction Technician Temporary Staffing and Ancillary Services between FY09/20 and FY09/25, it aims
to boost Engineer Temporary Staffing and Ancillary Services segment revenue to about 2.8x and 13.8x the FY09/20 levels byleveraging its accumulated experience. If it can achieve this, FY09/25 revenue and profit for each of the two segments will be
about even, and Shared Research understands that this diversification of Yumeshin’s business portfolio will lead to improved
management stability.
Earnings targets

Business plans(JPYmn)FY09/20Act.

FY09/21Est.

FY09/22
TargetFY09/23
TargetFY09/24
TargetFY09/25
Target58,66961,00071,50084,00098,000114,000

37,921
5.7%

38,0000.2%

42,50011.8%

46,0008.2%

51,00010.9%

56,50010.8%

19,87521.5%

22,00010.7%

27,50025.0%

36,00030.9%

45,00025.0%55,50023.3%

YoY
Operating profit margin

36.4%
9.0%

13.1%
9.8%

16.7%
9.8%

35.7%
11.3%

36.8%
13.3%

26.9%
14.5%

Construction Technician Temporary Staffing and Ancillary Services

6,585
13.0%
17.4%

6,000
-8.9%
15.8%

6,400
6.7%
15.1%

7,200
12.5%
15.7%

8,000
11.1%
15.7%

9,100
13.8%
16.1%

653
953.2%
3.3%

900
37.8%
4.1%

1,500
66.7%
5.5%

3,400
126.7%
9.4%

6,400
88.2%
14.2%

9,000
40.6%
16.2%

Revenue
YoY

Construction Technician Temporary Staffing and Ancillary Services

YoY
Engineer Temporary Staffing and Ancillary Services
YoY

Operating profit

YoY
OPM
Engineer Temporary Staffing and Ancillary Services
YoY
OPM

11.7%

5,306

4.0%

6,000

17.2%

7,000

17.5%

9,500

16.7%

13,00016.3%

16,500Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Construction Technician Temporary Staffing and Ancillary Services
In this segment, Yumeshin targets FY09/25 revenue of JPY56.5bn (CAGR of 8.3% versus FY09/20) and profit of JPY9.1bn (CAGR of
6.7%).
The company plans to increase the number of employees on its books by focusing on recruitment and working to improve
retention rates. In FY09/20, the retention rate temporarily fell to 69.1% (versus 72.7% in FY09/19). During hiring activities, thecompany aims to identify and hire candidates with a low risk of resigning, while also enhancing efforts to follow up technicians on
its books, with the objective of raising the retention rate to 75% in the medium term. It plans to boost the headcount of those
involved in follow-up activities from one per 100–200 technicians to one per 50. In addition, it will establish an Engineer Success
Team and systematize the division of labor between follow-up staff and sales staff. The Engineer Success Team will compriseabout 10 people who will follow a maximum of 50 technicians each, using periodic contact, visits, and questionnaires to identify
those technicians who may have problems that would lead to resignation and work with them to resolve issues.

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By focusing attention on recruitment, the company expects margins to decline in the first half of the plan but billing rates to climb
as its engineers gain experience. It foresees segment margins recovering in the second half of the plan.
Construction Technician Temporary Staffing and Ancillary Services earnings forecast
Construction Technician Temporary
Staffing and Ancillary Services (JPYmn)
No. of technicians hired
No. of technicians (year-end)

FY09/20Act.

FY09/21
Est.

1,805
5,348

FY09/22
Target

2,500
5,700

FY09/23
Target

2,700
6,300

2,950
6,900

FY09/24
Target3,200
7,500

FY09/25
Target3,450
8,200

Net increase

-751

352

600

600

600

700

Retention rate
Revenue

69.1%
37,921

72.6%
38,00075.0%42,50074.6%
46,00074.3%
51,00074.9%
56,500Operating profit

6,585

6,000

6,400

7,200

8,000

YoY

YoY
Operating profit margin

5.7%

0.2%

13.0%
17.4%

-8.9%
15.8%

11.8%

8.2%

6.7%
15.1%

12.5%
15.7%

10.9%

11.1%
15.7%

10.8%

9,100

13.8%
16.1%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Engineer Temporary Staffing and Ancillary Services
In this segment, Yumeshin targets FY09/25 revenue of JPY55.5bn (CAGR of 22.8% versus FY09/20) and profit of JPY9.0bn (CAGR
of 69.0%).
The company plans to focus on hiring newcomers to the industry. Such employees attract relatively low billing rates, but in
FY09/20, the company started a retraining program that aims to boost the skill levels of engineers with one or two years’
experience, which should enable ongoing increases in billing rates. Yumeshin says it costs JPY550,000 per person to hiresomeone with no experience in the industry, and JPY200,000 per month to train them for a one- to two-month period, but thatsuch an employee can contribute to segment profit within one year of hire.
Yumeshin intends to grow revenue by focusing on recruitment and increasing the number of engineers on the company’s books.
It also aims to improve margins by expanding the retraining program and increasing billing rates by about 2% annually. In the
final year of the medium-term plan, the company forecasts this segment to have higher headcount and margins than theConstruction Technician Temporary Staffing and Ancillary Services segment.
Engineer Temporary Staffing and Ancillary Services earnings forecast
Engineer Temporary Staffing and Ancillary
Services (JPYmn)
No. of engineers hired
No. of engineers (year-end)
Net increase

Revenue
YoY

Operating profit

YoY
Operating profit margin

FY09/20
Act.
1,076
3,579

FY09/21Est.

FY09/22
Target

1,600
4,200

2,300
5,400

FY09/23
Target3,000
6,900

FY09/24
Target3,100
8,300

FY09/25
Target3,800
10,000

-61

621

1,200

1,500

1,400

1,700

19,87522,00027,50036,00045,00055,500

653

900

1,500

3,400

6,400

21.5%

953.2%
3.3%

10.7%

37.8%
4.1%

25.0%

66.7%
5.5%

30.9%

126.7%
9.4%

25.0%

88.2%
14.2%

23.3%

9,000

40.6%
16.2%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

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Estimated scale of IT personnel shortage (1,000 people)

Human resources supplied

1,800

Shortage

1,600
1,400
1,200
1,000

220

261

304

314

326

338

351

364

381

398

415

432

449

800
600
400

994

1,005

1,018

1,032

1,046

1,060

1,071

1,081

1,091

1,101

1,110

1,114

1,118

1,122

1,127

1,133

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

200
0

Source: Shared Research based on Survey on Supply and Demand of IT Personnel from Mizuho Information & Research Institute, Inc.

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Business
Business description
Yumeshin’s main segment is Construction Technician Temporary Staffing and Ancillary Services, and it also has Engineer
Temporary Staffing and Ancillary Services and other businesses.
In FY09/20, the Construction Technician Temporary Staffing and Ancillary Services segment accounted for 64.6% of revenue and94.1% of operating profit. The segment comprises subsegments of construction and technical support services and drawing andblueprint production. The construction and technical support services business provides construction companies withconstruction supervisors and computer aided design (CAD) operators, providing support for technical personnel at construction
sites. The clients for drawing services are general contractors. Working drawings are also known as “production design drawings”
and cover not only basic construction plans but also such areas as measurements and materials based on requirements related tofunctions, durability, weather resistance, appearance, project scheduling, and costs.
In FY09/20, the Engineer Temporary Staffing and Ancillary Services segment accounted for 33.9% of revenue and 9.3% of
operating profit. In this segment, the company provides staffing services to clients in information and telecommunications andmanufacturing in response to their R&D needs either through a worker staffing or outsourcing agreement. It primarily dispatches
mid-level engineers involved mainly in design, evaluation, and maintenance or technical support engineers mainly involved inadministrative work, equipment installation, and troubleshooting.
Earnings by segment(JPYmn)Sales
YoY

FY09/11
Cons.
6,817
40.2%

FY09/12Cons.
10,98261.1%

FY09/13Cons.
12,538

FY09/14Cons.
16,482

FY09/15
Cons.
21,116

FY09/16
Cons.
23,271

FY09/17Cons.
30,510

FY09/18
Cons.
40,419FY09/19Cons.
52,505(JPYmn)
Revenue

14.2%

31.5%

28.1%

10.2%

31.1%

32.5%

29.9%

YoY

5,268

6,472

8,163

11,731

13,855

17,401

22,60829,60935,890C onstruction Technician Temp. S taffing and A ncillary S erv ices

YoY

15.7%

22.9%

26.1%

43.7%

18.1%

25.6%

29.9%

31.0%

21.2%

% of sales

77.3%

58.9%

65.1%

71.2%

65.6%

74.8%

74.1%

73.3%

68.4%

1,210

4,109

3,911

4,189

4,773

5,803

7,368

10,37915,386

Construction Technician Temp. Staffing

Engineer Temporary Staffing
YoY% of sales

Total segment profit-

239.6%

-4.8%

7.1%

13.9%

21.6%

27.0%

40.9%

48.2%

17.7%

37.4%

31.2%

25.4%

22.6%

24.9%

24.1%

25.7%

29.3%

732

1,440

1,610

2,135

1,824

2,558

2,493

5,733

5,798

YoY
% of total
Engineer Temporary Staffing and Ancillary Services

YoY% of total

Total segment profit

YoY

1.5%

6.7%

11.1%

13.6%

-

40.2%

-2.5%

130.0%

1.1%

YoY

Construction Technician Temp. Staffing

773

1,172

1,231

1,703

1,733

2,213

2,877

5,388

5,904

C onstruction Technician Temp. S taffing and A ncillary S erv ices

YoY

11.5%

51.7%

5.1%

38.3%

-

27.6%

30.0%

87.3%

9.6%

FY09/20
IFRS
58,669-11.7%

35,86037,921

-

5.7%

68.3%

64.6%

16,354

19,875

-

21.5%

31.1%

33.9%

5,889

7,239

-

22.9%

5,826

6,585

-

13.0%

Profit margin

14.7%

18.1%

15.1%

14.5%

12.5%

12.7%

12.7%

18.2%

16.5%

Segment profit margin

16.2%

17.4%

% of total segment profit

105.5%

81.4%

76.5%

79.2%

85.6%

85.5%

116.3%

93.9%

101.9%% of total segment profit

106.5%

94.1%

Engineer Temporary Staffing

-1

243

302

374

479

436

178

465

133

YoY

-

-

24.5%

23.8%

-

-9.1%

-59.2%

161.8%-71.3%

Profit margin

-

5.9%

7.7%

8.9%

10.0%

7.5%

2.4%

4.5%

0.9%

% of total segment profit

0

16.9%

18.8%

17.4%

23.7%

16.8%

7.2%

8.1%

2.3%

-30
-251
543

-83
-61
1,195

-83
245
1,230

-76
877
1,857

-103
6
1,727

-132
7
2,433

-196
65
2,362

-184
-363
5,186

-323
-755
4,720

YoY

4.4%

120.1%

3.0%

51.0%

-7.0%

40.9%

-2.9%

119.6%

-9.0%

OPM

8.0%

10.9%

9.8%

11.3%

8.2%

10.5%

7.7%

12.8%

9.0%

451

1,296

1,771

2,952

1,960

2,463

2,424

4,941

4,558

YoY

-18.3%

187.2%

36.7%

66.7%

-33.6%

25.7%

-1.6%

103.8%

-7.8%

RPM

6.6%

11.8%

14.1%

17.9%

9.3%

10.6%

7.9%

12.2%

8.7%

Amortization of goodwill
Company-wide expenses

Operating profit

Recurring profit

YoY

FY09/19
IFRS
52,505Engineer Temporary Staffing and Ancillary Services

YoY
Segment profit margin% of total segment profit
Amortization of goodwill
Company-wide expenses

Operating profit
YoY
OPM

Recurring profit

62

653

-

953.2%

0.4%

3.3%

1.1%

9.3%

-1,581
3,891-1,692
5,306

-

36.4%

7.4%

9.0%

3,870

5,076

YoY

-

31.2%

RPM

7.4%

8.7%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note:”% of total segment profit” measures the share of an individual segment’s profit against the total value of profit for all segments combined.
Note: Following change in reporting segments in FY09/18, the company is now reporting using the following three segments: Construction Technician Temporary
Staffing, Engineer Temporary Staffing, and Other Businesses.
Note: The company altered its segmentation in FY09/20. Its reporting segments are now Construction Technician Temporary Staffing and Ancillary Services, Engineer
Temporary Staffing and Ancillary Services, and Other Businesses.
Note: The company voluntarily applied IFRS from FY09/20. FY09/19 earnings results have been converted from the Japanese standards to IFRS for reference.
Note: Until FY09/14 segment profit was adjusted with recurring profit. After FY09/15, these figures are adjusted with operating profit.

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Construction Technician Temporary Staffing and Ancillary Services
Subsidiary Yumeshin Co., Ltd., runs this core business, which accounted for 64.6% of revenue and 94.1% of operating profit in
FY09/20. Construction Technician Temporary Staffing and Ancillary Services can be further subdivided into Construction
Technician Temporary Staffing and drawing and blueprint production.

Dispatches full-time employees mainly to construction companies
The company signs a worker staffing agreement with a client and dispatches its own full-time employees to perform the job onclient sites. It has an indefinite employment contract with its workers regardless of whether there is an end client, and pays themongoing salaries. The client directly manages the staff and can utilize them for the duration of an assignment. This form of
employment relationship is legally different from a registration-based staffing system under which an employment contract
between the dispatched worker and the staffing company arises only once there is a work request from the client company andthere is no salary payment in the absence of work request.
In construction, timing of orders is uncertain, site locations change with each project, duration of projects vary and arecomparatively short, and the work is labor intensive. According to the company, this makes outsourcing perfectly suited for theneeds of the industry. While many of its peers provide outsourcing services in different fields, Yumeshin has focused on
construction staffing.

Construction Technician Temporary Staffing
This is the company’s core business; it has been offering this service since March 1991. The company provides construction
companies with construction supervisors and computer aided design (CAD) operators, providing support for technical personnel
at construction sites. Yumeshin’s full-time employees are about 80% of staff; the remaining 20% are contract employees.
The company’s construction supervisors provide support for construction site safety control, quality control, process control, costmanagement, and environmental management. Specific duties include taking site photos, assisting with surveying, managing site
safety, running morning assemblies, communicating instructions, taking off (calculation of quantities of materials needed), andpreparing various documents.

Yumeshin also has a training program for individuals seeking to obtain a license as a second-class construction supervisor under Japan’s national
qualification system. Candidates for the program must have at least one year of related practical experience, depending on academic background.

Providing staffing to a multilayered subcontracting structure
Before looking at the company’s Temporary Staffing segment in further detail, some features of the Japanese constructionindustry warrant an explanation. Japan’s construction industry has a unique multilayered subcontracting structure. Generalcontractors mostly handle project supervision, parceling out work to subcontractors. Employees of the general contractor do nottake part in actual construction, instead subcontractor employees handle the construction work. General contractors are moreakin to construction project managers for the end customer. Typical examples of general contractors include Taisei Corp. (TSE1:
1801), Obayashi Corp. (TSE1: 1802), Shimizu Corp. (TSE1: 1803), Kajima Corp. (TSE1: 1812), Takenaka Corp. (unlisted),
Nishimatsu Construction Co. (TSE1: 1820), Maeda Corp. (TSE1: 1824), and Tokyu Construction Co. (TSE1: 1720). Subcontractors
receive part of the construction work from general contractors, who originally received the orders from the customers.
Large subcontracting firms would typically include major facility construction companies like Kandenko Co. (TSE1: 1942), Kinden
Corp. (TSE1: 1944), or Takasago Thermal Engineering Co. (TSE1: 1969). Occasionally, these major facility construction
companies might themselves serve as primary contractors. In addition to these firms, there are companies engaged in various
specialized areas such as carpentry, structural steel, interiors, etc. These are also referred to as “subcontractors.” While there aresome subcontractors that hire their own workers, most will further “sub-subcontract” the work out to smaller operations. Thissecondary and tertiary subcontracting gives the industry its multilayered subcontracting structure.

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Construction supervision services provided by the company staff include such general supervision tasks as coordinating work ofvarious specialist workers on the construction site, preparing and making corrections in construction drawings, etc. The company
provides safety control, quality control, process control, cost management, and environmental management for the constructionindustry. In the multilayer subcontracting structure of a typical Japanese construction site, Yumeshin provides construction site
supervisors who assist in communication between the prime contractor employees (managers and supervisors) andsubcontractors (workers who actually do construction).
General contractors
Management
Yumeshin's area of business:

Aiding supervisors throughproviding support services

Construction site
supervisors

Management
Operations

Subcontractors
Source: Company materials

Dispersed client base and low per-client dependency
The company had 693 client firms in FY09/13 and about 2,000 in FY09/19, demonstrating a steady increase in the number ofclients. As clients increased, the share of revenue from the top five clients has decreased from 17.5% in FY09/15 to 14.8% in
FY09/19.
Share of revenue by customer (%)
Rank
1

FY09/15
Daiwa House
Industry

FY09/16
6.2

Daiwa House
Industry

FY09/17
6.1

Daiwa House
Industry

FY09/19

FY09/18
5.4

Daiwa House
Industry

4.7

Daiwa House

4.6

Industry

2

Taisei

3.7 Taisei

4.1 Taisei

3.8 Taisei

3.8 Taisei

3.8

3

Shimizu

2.8 Shimizu

3.4 Shimizu

2.6 Shimizu

2.5 Shimizu

2.9

2.7 Takenaka

3.0 Takenaka

2.0 Shinryo

1.7 Shinryo

2.2 Shinryo

1.7 Fuji Electric

1.6 NIPPO

1.3 Kinden

1.4

Top 5

14.8

4
5

Tokyu
Construction
Takenaka
Top 5companies
Top 10companies

17.5
24.8

Top 5
companies
Top 10companies

18.3
24.6

Top 5
companies
Top 10companies

15.3
22.1

Top 5
companies
Top 10companies

14.1

2.1

companies

19.8

Source: Shared Research based on company data

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Share of revenue by areas of staff specialization (%)

100%

11.7

12.1

6.0

4.8
11.0

4.5

4.0

4.3

10.2

11.3

12.0

11.7

17.8

19.6

20.7

25.2

27.2

13.9

14.2

14.4

Other

50%

Interior
Civil engineering
Facilities

0%

54.3

52.5

49.6

FY09/14

FY09/15

FY09/16

Construction

44.6

42.4

FY09/17

FY09/18

Source: Shared Research based on company data

Business characteristics
Yumeshin differentiates itself from competition through hiring many young employees, and focusing the majority of its businesson the greater Tokyo area.

Employees primarily in their twenties
The Japanese construction industry is aging—in fiscal 2019, 43.8% of all employees were in their fifties, those in their forties
constituted some 25.9%, and staff in their twenties and thirties made up a minority. This is because the construction industry
held back on new hiring when the asset price bubble burst in Japan in the early 1990s. By contrast, a majority of Yumeshin’s staff
were in their twenties as of September 2020. Construction sites typically expose workers to the elements. Billing rates tend to be
low, and employees must be physically fit. Therefore, it is more suitable to young workers. As a result, the company responds bymainly employing young people for its Temporary Staffing services.
Remarkably, of the company’s employees, around 60% have been with the firm for at least three years. Employees typically go
through two weeks of initial training in-house, and are then sent to gain hands on experience at client sites. The company
emphasizes this sort of sink-or-swim, on-the-job training (OJT) and expects that while new employees may lack knowledge andexperience at first, communication skills are more valuable to clients.
Employment rate by age group
(%)

36
32
28

28.1
25.6

29.4
26.5

30.2
27.0

31.3
27.9

32.2

32.5

33.0

28.2

28.4

28.5

32.8

33.4

28.6

28.7

34.2

34.2

33.9

33.9

34.4

28.7

28.9

29.2

29.3

29.9

16

20.2

19.7

16.1

15.5

19.4
15.0

18.8
13.8

18.3

13.0

17.8
12.8

12
8

2004

2005

2006

2007

2008

2009

35.2

30.2

30.6

55 or older (construction)
55 or older (all industries)
29 or younger (all industries)
29 or younger (construction)

24
20

35.1

17.5

17.3

16.7

11.6

11.8

11.2

2010

2011

2012

16.6

16.4

16.3

16.4

16.2

16.5

16.7

10.2

10.7

10.8

11.4

11.0

11.2

11.6

2013

2014

2015

2016

2017

2018

2019

Source: Shared Research based on Ministry of Internal Affairs and Communications data

As of end-September 2020, the company had 5,348 staff, compared to 6,099 as of end-September 2019 (supervisors it provides
to clients). The number of staff it sends to a particular site depends on the project; typically, 1–2 people for a small project, but

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up to 10 for a large project. Contracts are monthly, with eight-hour workdays and two days off per week. Any other work istreated as overtime.
There were about 140 sales personnel. Emphasis is on individual performance rather than teamwork. While salespeople work toacquire new clients, most sales involve projects from existing clients.

Drawing and blueprint production
The company started out as an architectural design firm but changed its business model to emphasize construction blueprint
services once it realized that working drawings were as important as master plans in ensuring high quality construction. Working
drawings are also known as “production design drawings” and cover not only basic construction plans but also such areas asmeasurements and materials based on requirements related to durability, appearance, project scheduling, costs, etc. The clientsfor drawing services are general contractors and other construction related firms. In order to respond to the demand forlower-cost construction drawings, the company began outsourcing drawing production to affiliates in China (Shanghai, Dalian)and Vietnam. The Vietnamese affiliate was originally a subsidiary, Yumeshin Vietnam Co., Ltd., established in 1996, but thecompany excluded this from consolidation in 2009.
According to the company, drawing and blueprint production services have a gross profit margin of about 70% and operating
profit margin of up to 40%.
Yumeshin uses the same sales personnel for both Construction Technician Temporary Staffing and drawing services. The
workflow for a construction project: commissions for working drawings are paid prior to the start of construction work. After
construction begins, a CAD operator (dispatched through Construction Technician Temporary Staffing) may make changes to theworking drawings.

Engineer Temporary Staffing and Ancillary Services
Operations in this segment are carried out mainly by Yume Technology Co., Ltd. (became a wholly owned subsidiary in January
2019; formerly, Fullcast Technology Co., Ltd.), which was acquired during FY09/11.
In this segment, the company provides services under a worker staffing or outsourcing agreement in response to the R&D needsof client companies (some 800 companies in FY09/20) in the fields of information and telecommunications (50% of revenue),
information and telecommunications device manufacturing (7%), transportation equipment (11%), electrical equipment (11%),and industrial equipment (10%), with others comprising 9%. Engineers the company dispatches to information
telecommunications companies mainly work in applications development, help desks, and infrastructure engineering services.
Customers in the manufacturing sector mainly require engineers to engage in quality control, CAD operation, evaluation andtesting, and machinery design.
The company had 3,579 engineers on its books at end-FY09/20 (versus 3,640 at end-FY09/19), broadly divided into high-end,
mid-level, and technical support engineers. High-end engineers are mainly involved in design and development and mid-levelengineers in design, evaluation, and maintenance. Technical support engineers mainly provide administrative work, IT productinstallation, and troubleshooting.
In the Engineer Temporary Staffing and Ancillary Services, Yumeshin mainly hires newcomers to the industry, so they require one
to two months before they can be dispatched to client companies. Hiring expenses per engineer are JPY550,000, and training
expenses are JPY200,000 or more, but engineers can contribute to segment profit within one year of hire. In addition, thecompany retrains some current engineers for one to two months, and in FY09/20 such retraining led to the reclassification of
about 200 technical support engineers as mid-level engineers. By focusing on reclassifying its engineers, the company aims toraise billing rates and improve profit margins.

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Business model
Construction Technician Temporary Staffing and Ancillary Services
The company’s revenue is driven by the number of staff (for construction sites or CAD operators) that it dispatches, utilization
rates, hours dispatched, and the billing rate. Billing rates depend upon technicians’ skills and years of employment. According to
the company, clients typically seek discounts, but because no other companies can supply the numbers of young (relatively
lower cost) staff that Yumeshin can, Yumeshin billing rates remain mostly stable.
Construction Technician Temporary Staffing and Ancillary Services revenue metrics
FY09/16

FY09/17

FY09/18

FY09/19

FY09/20

Number of technicians

3,334

4,402

5,066

6,099

5,348

Number of new hires

2,018

2,666

2,764

3,289

1,805

Net increase

574

1,068

664

1,033

-751

Retention rate

69.8%

73.4%

70.7%

73.0%

67.7%

a) Average number of technicians

3,027

3,889

4,835

5,746

5,816

b) Utilization rate

92.7%

92.2%

93.8%

92.7%

92.3%

9.7

9.6

9.6

9.6

9.5

c) Average hours per dayd) Average hourly wage (JPY)

2,706

2,797

2,890

2,983

3,126

Sales (JPYmn)

17,401

22,60829,60935,89037,921

25.6%

29.9%

31.0%

-

5.7%

17,30922,64929,47735,77137,306

YoY

Ref.: a x b x c x d x operating days (JPYmn)

Source: Shared Research based on company data
Note: Retention rate = Number of technicians at year end / (number of technicians at previous year end + new hires in the current year)
Note: Calculated based on 235 days of operation
Note: The company voluntarily applied IFRS from FY09/20. FY09/19 revenue figures have been converted from the Japanese standards to IFRS for reference.

Cost of revenue
The majority of cost of revenue is labor. An important factor here is the company’s need to pay ongoing salaries to the workers
even when they are not assigned to the clients’ sites. Further, seeing that it is hard to adjust wages rapidly and since billing rates
are basically stable, we expect the spread between billing rates and wages paid to also be stable. This means changes in the staff
utilization rate (number of staff sent out to a construction site divided by the number of total dispatch staff) is the primary factor
affecting the company’s gross profit margins.
That said, Shared Research considers the labor costs incurred by the company to be a semi-fixed cost. Because of the difficult
working conditions of the construction sites and other reasons causing staff to quit, the average retention rate of Yumeshintechnicians is low at 67.7% in FY09/20 (73.0% in FY09/19). As such, the company can adjust labor costs by restricting new hire
and reducing the size of its staff through natural attrition.

SG&A expenses
The majority of SG&A expenses are personnel costs. Judging from past performance, these costs can also be consideredlong-term variable as the company had been adjusting them with fluctuations in revenue levels.

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Construction Technician Temporary Staffing and Ancillary Services performance(JPYmn)FY09/16

FY09/17

FY09/18

FY09/19

FY09/20
37,921

17,401

22,60829,60935,977

YoY

25.6%

29.9%

31.0%

-

5.4%

Cost of sales

12,371

15,791

20,00424,806

26,573

68.9%

70.1%

11,348

Sales

Cost ratio

71.1%

69.8%

67.6%

Labor costs

12,071

15,384

19,467

Outsourcing costs

93

104

108

Other costs

207

303

430

Gross profit

5,030

6,816

9,605

11,171

YoY

24.5%

35.5%

40.9%

-

1.6%

GPM

28.9%

30.2%

32.4%

31.1%

29.9%

SG&A expenses

2,817

3,939

4,624

5,345

4,762

SG&A ratio

16.2%

17.4%

15.6%

14.9%

12.6%

Salaries and allowances

1,050

1,368

1,677

2,340

2,534

669

1,118

1,249

1,629

1,028

2,213

2,877

4,981

5,826

6,585

YoY

27.7%

30.0%

73.1%

-

13.0%

OPM

12.7%

12.7%

16.8%

16.2%

17.4%

Hiring expenses
Operating profit

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Note: Through FY09/19, Yumeshin Holdings (parent) was in charge of Construction Technician Temporary Staffing (now Construction Technician Temporary Staffing andAncillary Services), but in FY09/20 the company was converted to a pure holding company structure. For this reason, results through FY09/19 are results for the parent,
but results starting with FY09/20 are for the Construction Technician Temporary Staffing and Ancillary Services segment.
Note: The company voluntarily applied IFRS from FY09/20. FY09/19 earnings results have been converted from the Japanese standards to IFRS for reference.
Note: Personnel expenses through FY09/18 were salaries and allowances.

Engineer Temporary Staffing and Ancillary Services
As in Construction Technician Temporary Staffing and Ancillary Services, revenue is determined by the number of engineers,utilization rate, and billing rates for workers. In FY09/20, the company had 3,579 engineers (versus 3,640 in FY09/19), an 89.7%
utilization rate (versus 89.5% in FY09/19), and an average hourly billing rate of JPY3,076 (versus JPY2,857 in FY09/19).
Engineer Temporary Staffing and Ancillary Services revenue metrics
Construction Technician Temp. Staffing
Number of technicians
Number of new hires
Net increase
Retention ratea) Average number of techniciansb) Utilization ratec) Average hourly wage (JPY)FY09/16

FY09/17

FY09/18

FY09/19

FY09/20

1,131
460

1,716
941

2,414
1,118

3,640
1,748

3,579
1,076

278
86.1%

1,005
93.3%
3,091

585
82.8%

698
85.2%

1,226
87.5%

-61
75.9%

1,414
90.2%
2,952

2,046
91.5%
2,853

3,078
89.5%
2,857

3,592
89.7%
3,076
19,875

Sales (JPYmn)

5,805

7,385

10,381

15,391

YoY

21.6%

27.2%

40.6%

48.3%

29.1%

5,789

7,521

10,66915,721

19,797

Ref.: a x b x c x operating days (JPYmn)

Source: Shared Research based on company data
Note: Retention rate = Number of technicians at year end / (number of technicians at previous year end + new hires in the current year)
Note: Calculated based on 235 days of operation
Note: The company voluntarily applied IFRS from FY09/20. FY09/19 revenue figures have been converted from the Japanese standards to IFRS for reference.

In FY09/20, the gross profit margin was 22.4%. The vast majority of cost of revenue was labor. The FY09/20 SG&A-to-revenue
ratio was 19.1%. Personnel expenses and hiring expenses account for the majority of SG&A expenses.

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Engineer Temporary Staffing and Ancillary Services performance
Engineer Temporary Staffing(JPYmn)Sales

FY09/16

FY09/17

FY09/18

FY09/19

FY09/20
19,875

5,805

7,385

10,37815,391

YoY

21.6%

27.2%

40.5%

48.3%

29.1%

Cost of sales

4,326

5,622

7,852

11,94815,427

Cost ratio

74.5%

76.1%

75.7%

77.6%

77.6%

Labor costs

4,204

5,477

Outsourcing costs
Other costs

0

0

122

146

Gross profit

1,479

1,763

2,529

3,443

4,448

YoY

21.4%

19.2%

43.5%

36.2%

29.2%

GPM

22.4%

25.5%

23.9%

24.4%

22.4%

SG&A expenses

1,046

1,588

2,061

3,309

3,795

SG&A ratio

18.0%

21.5%

19.9%

21.5%

19.1%

382

531

934

1,649

1,968

Salaries and allowances
Hiring expenses
Operating profit
YoY
OPM

262

546

662

1,051

621

433

175

465

133

653

-9.1%
7.5%

-59.6%
2.4%

165.8%
4.5%-71.4%
0.9%

391.0%
3.3%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.
Figures through FY09/17 are for Yume Technology Co., Ltd., the core subsidiary in Engineer Temporary Staffing and Ancillary Services.
Note: The company voluntarily applied IFRS from FY09/20. FY09/19 earnings results have been converted from the Japanese standards to IFRS for reference.
Note: Personnel expenses through FY09/18 were salaries and allowances.

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Group companies
The group consists of Yumeshin and consolidated subsidiaries. Respective segments are as shown in the table below:
Segment and name of consolidated subsidiary
Segment

Business

Consolidated subsidiary

Construction Technician
Temporary Staffing andAncillary Services

Staff construction supervisors and technicians; draft and sell blueprints

Yumeshin Co., Ltd.

Engineer Temporary Staffing
and Ancillary Services

Dispatch engineers to the manufacturing and IT industries

Yume Technology Co., Ltd.
Yume Proeng Co., Ltd.

Network engineer dispatch

Neplus K.K.

IT engineer dispatch in the Philippines

Centurion Capital Pacific Limited
P3OPLE4U, Inc.

IT engineer dispatch

InformationPort Co., Ltd.
Garenet Co., Ltd.

Other Businesses

Offshore development in Vietnam

Yumeshin Vietnam Co., Ltd.
Yumeshin Co., Ltd.

Japanese language classes for local Filipino staff

YumeGlobal Corp.

Support for local Vietnamese recruitment

Yume Global Co., Ltd.

Planning and operation of online programming tutorial services

Samurai, Inc.

Consultancy services

Centurion Capital Pacific Limited
P3OPLE4U, Inc.

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Strengths and weaknesses
Strengths◤

Reputation based on experience and stock market listing: In the construction industry, credibility and trust areimportant factors in securing future work. Yumeshin has been building its reputation over many years, and has the added
prestige of being a listed company—a combination not shared by many competitors. Yumeshin’s clients are mainly top-tierfirms, so when the company delivers reliably for these clients, it seems reasonable to conclude other potential clients would
take notice. As its relationships with blue-chip clients grow, so does Yumeshin’s reputation, creating a virtuous cycle leading
to more business opportunities. Shared Research thinks that this cycle is likely to continue and strengthen with time.
Because the company is publicly traded, it has a certain degree of reliability and recognition that its unlisted competitors
lack. A side effect of being publicly traded is enhanced disclosure about business performance, financial condition, etc. Thisavailable information means the company is more transparent, which could make clients more confident in doing businesswith Yumeshin.

◤

Established education system that quickly trains people with no experience to level where they can bedispatched to construction sites: In Construction Technician Temporary Staffing and Ancillary Services, the company
hires people with no work experience in the construction industry and even those with humanities degrees and puts themthrough a training program lasting about two weeks, which makes them ready for dispatch to construction sites. The
training program covers a diverse range of subjects from safety training needed at construction sites to architecture
fundamentals, practical surveying work, business etiquette, social skills, and PC training. Using this training program, thecompany has hired over 2,000 people per year since FY09/16, making it possible to maintain a capacity utilization rate above
90%.

◤

Effective use of younger employees: While the average employee in the construction industry has aged, the company has
been actively hiring younger employees to work on client sites. Industry competitors have placed more emphasis on
experience and skill in hiring decisions, resulting in a mainly older workforce. Yumeshin has favored energetic andwell-rounded younger employees, and given them a lot of practical on-site experience shortly after joining the firm. As aresult, the company’s employees bring both youth (and energy) to job sites and hands-on experience. The company’s
financial performance suggests its sink-or-swim approach is effective.

Weaknesses◤

Performance in favorable economic periods: Shared Research wonders if the company will be able to maintain its
strength, using younger employees, during good economic times. This is tough to measure, but if the economy improves,
some of the company’s younger employees may look for greener pastures elsewhere (either with competitors or
higher-paying and less-demanding jobs). Job opportunities for older employees tend to be fewer, so competitors with older
employees are less exposed to this potential risk. Additionally, as the aging population trend in Japan continues, hiring new
graduates during boom times will likely be even more difficult than in the past. Naturally, a shortage of staff would mean lost
opportunities for the company.

◤

Dependence on construction industry: In FY09/20, Construction Technician Temporary Staffing and Ancillary Services
accounted for 64.6% of revenue and 94.1% of profit. As of December 2020, Construction Technician Temporary Staffing isseeing strong demand due to the recovery in construction spending and active utilization of dispatched technicians byconstruction contractors (see the Market and value chain section). However, if construction spending were to decreaseagain, causing diminishing demand for construction technicians, Shared Research believes this would likely have a verysignificant impact on the company’s earnings.

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Market and value chain
Market overview
This section focuses on the market for Yumeshin’s mainstay Construction Technician Temporary Staffing and Ancillary Services.
Construction worker population('000)

600

6.53

Technical workers
6.32

6.18

6.04

500
420
400

390

370

360

5.84

340

5.68

320

300

5.60

310

5.54

310

(mn)

Construction industry workers (right axis)

5.41

300

5.22

320

7.00
6.00

5.04

310

5.02

300

5.03

4.99

320
270

5.05

280

5.00

320

4.92

310

4.98

310

5.03
350

4.99
370

5.00
4.00
3.00

200

2.00

100
0

1.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0.00

Source: Shared Research based on statistics from the Japan Federation of Construction Contractors’ Construction Handbook 2019

New graduates joining construction industry (‘000 people)('000)

50

47

45

42

40

40
35

35

38
33

33

33

33

31

30

29

31

31

2010

2011

41

41

2014

2015

39

41

41

40

2017

2018

2019

34

25
20
15
10
5
0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2012

2013

2016

Source: Shared Research based on statistics from the Japan Federation of Construction Contractors’ Construction Handbook 2019

The construction industry expanded during Japan’s high economic growth period (from mid-1950s to 1960s) as it pushed mass
hiring. The industry, however, has recently done without much hiring of new personnel against the backdrop of a nosedive inconstruction demand attributable to fewer public projects and lower capex after the economic bubble burst. The number ofpeople employed in construction decreased by 1.54mn between 2000 and 2019. The number of new graduates entering theindustry peaked in 1995 at 78,000. However, it bottomed out in 2009 at 29,000 and has been averaging around 40,000 a year
since 2013, finishing fiscal 2019 at 40,000.
As of 2019, baby boomers were reaching their retirement ages, and the construction industry as a whole was aging accordingly,
with one out of three workers (34.7%) being 55 years or older (see also Employment Rate by Age Group in the Construction
Technician Temporary Staffing and Ancillary Services section). Also, with less young people joining the industry, chronic worker
shortages have been an industry-wide issue.
Construction spending has been declining since it peaked in 1992 at JPY84tn. Following the 2007 revision to the BuildingStandards Law and the global financial crisis of 2008, construction spending continued to decline, and by 2010, it fell to JPY42tn,
just half of the 1992 figure. Thereafter, spending has been increasing due to recovery efforts following the Great East Japan

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Earthquake. Particularly in Tokyo and the neighboring prefectures, strong construction demand may continue due to population
inflows, as well as rising demand for rebuilding houses aged 40 years or older, enhancing buildings’ earthquake resistance, andmaking buildings barrier-free. Shared Research believes that the 2020 Tokyo Olympics, the 2025 Osaka World Expo, and theLinear Chuo Shinkansen (high-speed maglev train line), which is scheduled to open for business in 2027, will have positive
impacts on construction spending.
Construction spending(JPYtn)PublicPrivate

70.0
60.0
30.0

50.0

19.0

40.0

20.2

17.8

16.9

16.7
18.0

30.0
20.0

36.2

32.6

33.5

30.8

31.5

10.0
0.0

25.0

18.0

16.3

16.0

23.9

25.8

26.4

18.4

18.6

29.9

28.9

36.4

21.0

37.7

21.8

23.1

24.9

39.5

40.3

40.5

25.6

37.6

FY2000 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Source: Shared Research based on Ministry of Land, Infrastructure, Transport and Tourism Construction Industry Investment Outlook for 2019
Note: Figures for 2020 are estimates.

To copy with construction demand, construction companies are cutting back on new hires in favor of hiring many more
temporary workers from temporary staffing companies. Based on the figures presented in the Ministry of Land, Infrastructure,
Transport and Tourism’s Construction Industry Activity Survey, Shared Research has calculated that the hiring of temporary
workers from temporary staffing companies by major construction companies increased at an average annual rate of 30.0%
between 2005 and 2018.
Individuals involved in major construction('000)

Other

250

Administrative

ArtisanTechnical

Temporary (right axis)

29

30

26
200

60

54

24
52
46

150

44

42

100
138
50

140

127

117

111

7
110

41

42

41

11

11

18

39

38

38

12

12

12

37
17

38
17

37

20
37

25

21
39

39

40

39

15

9
109

20

10
111

110

111

110

108

107

105

104

113

113

115

115

118

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Shared Research based on Construction Industry Activity Survey (of 53 companies), Ministry of Land, Infrastructure, Transport and Tourism

50

The rate of population growth is the main long-term demand driver for Tokyo area construction spending. Japan’s total
population started to decline after peaking in 2004. By contrast, the population of the Greater Tokyo Area has been growing as
more economic activity concentrated in the area, leading to increasing job opportunities and higher standards of living, which inturn are attracting more residents, a self-perpetuating loop. Between 1995 and 2000, the population grew by 849,000 people;
between 2000 and 2005, by 973,000 people. On average, the population increased by over 150,000 people per year. Since
2006, the pace slowed, but continued to be on the rise. This migration has been causing regional housing demand to shrink,
while sustaining high levels of housing demand in and around Tokyo, a trend partially responsible for making the Greater Tokyo
Area the largest megalopolis in the world.

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Greater Tokyo Area population
Population (Greater Tokyo area)('000)
1995
Tokyo
11,543
YoY

Kanagawa

2005
12,325

2010
12,8342014
13,0442015
13,131

2016
13,2072017
13,2732018
13,3402019
13,405

-

-

-

1.9%

0.5%

0.7%

0.6%

0.5%

0.5%

0.5%

8,152

8,391

8,676

8,921

8,967

8,979

8,986

8,989

8,993

8,997

YoY

Saitama

2000
11,850

-

-

-

1.2%

0.1%

0.1%

0.1%

0.0%

0.0%

0.0%

6,696

6,875

6,974

7,105

7,143

7,160

7,169

7,174

7,175

7,174

YoY

-

-

-

0.9%

0.1%

0.2%

0.1%

0.1%

0.0%

0.0%

Chiba

5,744

5,869

5,983

6,135

6,114

6,131

6,137

6,141

6,143

6,141

YoY

Greater Tokyo area

-

-

-

1.2%

0.0%

0.3%

0.1%

0.1%

0.0%

0.0%

32,13632,98533,95834,99535,26835,40235,49935,57735,65135,717

YoY

-

-

-

1.4%

0.2%

0.4%

0.3%

0.2%

0.2%

0.2%

YoY change

-

849

973

1,037

85

134

97

78

74

66

Source: Ministry of Internal Affairs and Communications data

Long-term expected population in Greater Tokyo Area('000)
Tokyo

2015
13,5152020
13,7332025
13,8462030
13,8832035
13,8522040
13,7592045
13,607
-0.2%

CAGR

0.5%

0.3%

0.2%

0.1%

0.0%

-0.1%

Kanagawa

9,126

9,141

9,070

8,933

8,751

8,541

8,313

CAGR

0.2%

0.0%

-0.2%

-0.3%

-0.4%

-0.5%

-0.5%

Saitama

7,267

7,273

7,203

7,076

6,909

6,721

6,525

CAGR

0.2%

0.0%

-0.2%

-0.4%

-0.5%

-0.5%

-0.6%

Chiba
CAGR

Greater Tokyo Area
CAGR

6,223

6,205

6,118

5,986

5,823

5,646

5,463

0.0%

-0.1%

-0.3%

-0.4%

-0.6%

-0.6%

-0.7%

36,13136,352

36,23735,87835,33534,66733,907

0.6%

0.1%

-0.1%

-0.2%

-0.3%

-0.4%

-0.4%

Source: National Institute of Population and Social Security Research data

However, when viewed over a longer time span, say 2020 or 2025, the Tokyo area population is likely to decline. So, over the
longer term, it is hard to be overly optimistic about housing demand in the market. Still, what is important to consider here is thebalance between the supply (workers) and demand (spending) in the construction industry. In other words, it is necessary tomonitor which (the supply or demand) will shrink more rapidly in the long run.

Barriers to entry
Temporary staffing services
As the great number of staffing companies serving the construction industry suggests, the barriers to entry are low. However, it isa business where the track record and reputation matter and growing into a large business is challenging. The constructionindustry is order driven. This creates uncertainty for the client who cannot know whether construction is going to be completedwith high quality and according to specification until the work is done. This means that past performance and the existing
relationship of trust with clients are very important.

Competitors
Peers in Construction Technician Temporary Staffing and Ancillary Services
There are many of competing firms providing temporary staff to the construction industry, about 100 firms according to thecompany. However, the industry has seen increasing concentration, with the top five firms responsible for approximately 50% of
the market and the top 10 making up about 75%. In descending order, the major players by revenues are: TechnoPro
Construction, Inc. (unlisted), Tekken Kosan Co., Ltd. (a subsidiary of Tekken Corporation; TSE1: 1815), and Ikeshita Design Co.,
Ltd. (unlisted).
The company is independent, a relatively unique trait in the industry populated with general contractor subsidiaries, such as Act
Technical Support Co., Ltd. (a subsidiary of Kajima Corporation; TSE1: 1812) and Taisei Staff Services Co., Ltd. (a subsidiary of
Taisei Construction; TSE1: 1801). Such firms tend to provide staffing services primarily to their parent company and would not(or cannot) service their parent’s competitors. This gives an independent firm like Yumeshin, neutral in its dealings with various
general contractors, an important role. Also, as mentioned in Business Description, one important aspect of the company is that it

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hires young people and proactively sends them out to work at construction sites. According to the company, the competition
tends to use veteran employees who used to work at general contractors (older and more expensive staff). Therefore, Shared
Research notes that in the construction industry, where younger workers continue to decrease and the entire workforce keeps
aging, Yumeshin is in a relatively advantageous position.

Peers in Engineer Temporary Staffing and Ancillary Services
Competing firms providing engineer temporary staffing and ancillary services include TechnoPro Holdings Inc. (TSE1: 6028),
Meitec Corporation (TSE1: 9744), and Altech Corporation (TSE1: 4641).
Compared with the other companies, the company focuses more on younger, relatively inexperienced engineers and mid-level(including R&D assistance and evaluation and maintenance support) and support departments, and its billing rate is lower thanits peers’ rates.
Overview of peers

Yumeshin

Revenue

Gross

OperatingNumberBilling

Number of(JPYmn)profitprofitofrateclient(JPYmn)(JPYmn)engineers(JPY)

companies

4,448

653

3,579

3,076

More than

Dispatches engineers to machinery, electrical800

and electronic apparatus, IT, and chemical

19,875(22.4%)

Detailmanufacturing industries. Primary businessareas include mid-level (including R&D
assistance and evaluation and maintenancesupport) and support departments. More than
90% of its engineers are in their 20s and 30s.
TechnoPro

158,40740,226

15,772

21,264

3,785

2,212

(25.4%)

Holdings

Handles the largest number of engineers andresearchers in Japan. Dispatches engineers totechnical fields, including machinery,Inc.

electrical and electronic apparatuses, built-in
control systems, IT infrastructure, softwaredevelopment and maintenance, chemistry,
biotechnology, and construction
management.
Meitec75,297

Corporation

20,15910,382

7,150

5,286

(26.8%)

About

Dispatches engineers chiefly to advanced

1,200

automotive and electrical apparatus
manufacturing industries to cover design anddevelopment support. 53.6% of engineers arein their 30s and 40s.

AltechCorporation

36,371

9,197(25.3%)

4,015

3,783

4,048

About 700

Dispatches engineers to machinery, electricaland electronics apparatus, software, andchemical manufacturing industries to covervarious processes from basic research throughplanning, design, trial manufacturing,evaluation, and analysis.

Note: The company's results (IFRS) are from FY09/20 for Engineer Temporary Staffing and Ancillary Services, TechnoPro Holdings’ are from FY06/20 (IFRS) with billingrate calculated based on monthly average revenue per engineer, Meitec’s are from FY03/20 (parent), and Altech’s are from FY12/19.

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Historical financial statements
Full-year FY09/20 results▷

Revenue:

JPY58.7bn (+11.7% YoY)▷

Operating profit:

JPY5.3bn (+36.4% YoY)

Pre-tax profit:

JPY5.1bn (+31.2% YoY)

Profit*:

JPY3.6bn (+20.6% YoY)▷▷

*Profit attributable to owners of the parent▷

In FY09/20, the company temporarily curtailed its hiring activities from late March 2020 amid the COVID-19 pandemic, and▷

The YoY revenue growth in the Construction Technician Temporary Staffing and Ancillary Services segment and the Engineer▷

instead focused on ensuring that the utilization of its construction technicians and engineers remained steady.

Temporary Staffing and Ancillary Services segment was underpinned by an increase in billing rates. New subsidiaries acquired
in FY09/19 also contributed to revenue growth.
The YoY gains from the operating level down reflected increases in the company’s billing rates and a reduction in hiring andother expenses. SG&A expenses were JPY10.2bn (-1.8% YoY) and the SG&A-to-revenue ratio was 17.5% (-2.4pp YoY). With anincrease in the number of consolidated subsidiaries, personnel expenses rose to JPY5.0bn (+11.7% YoY), but hiring expenses
dropped to JPY1.6bn (-39.5% YoY), expenses related to M&A conducted in FY09/19 declined, and outsourcing expenses fell to
JPY599mn (-25.8% YoY).

The company’s FY09/20 full-year forecast was given as ranges rather than specific targets. FY09/20 revenue came within the
projected range. Operating profit reached 91.5% of the bottom end of its targeted range, while profit attributable to owners ofparent reached 96.1%. The shortfalls on the various profit lines were due to actions taken in conjunction with the shift to IFRS,
including booking of JPY134mn related to allowance for doubtful accounts and other items at overseas partners, JPY339mn inimpairment loss on a Vietnam affiliate, and JPY434mn in impairment loss on a subsidiary in the Philippines.

Overviews by segment are as follows. Note: Starting in Q1 FY09/20, the company changed its business segmentation scheme.
FY09/19 figures have been adjusted for purposes of comparison and are provided for reference purposes only.

Construction Technician Temporary Staffing and Ancillary Services▷▷

Revenue:

JPY37.9bn (+5.7% YoY)

Segment profit:

JPY6.6bn (+13.0% YoY)

The COVID-19 situation stirred a sense of significant uncertainty about the future, temporarily slowing down the customers’
decisions to place new orders. However, the structural labor shortage in the construction industry caused by the aging oftechnicians and the absence of young staff remains unchanged. As such, revenue rose YoY as demand for temporary staffing
services remained robust, especially in regional cities where the effects of the pandemic have been limited. Despite economic
volatility, the company secured double-digit segment profit growth by curtailing the hiring of technicians and adjusting theretention rate to reduce costs.

Construction Technician Temporary Staffing and Ancillary Services: Revenue and key performance metrics
Revenue growth was driven by an increase in the number of technicians utilized following increased hiring of technicians andimproved billing rates.

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As for the key performance metrics, the average number of technicians was up 1.2% YoY, with staff utilization rate down 0.4pp
YoY, hours dispatched down 1.3% YoY, and billing rates up 4.8% YoY.

▷

As of end-FY09/20, the number of technicians on the company’s books was 5,348 (-751 YoY).
 The number of technicians hired was 1,805, down 45.1% YoY from 3,289 in FY09/19. In an effort to balance hiring
activities in light of its operating environment, the company revised its annual hiring goal to 1,650–2,300 technicians, andpushed ahead with hiring activities accordingly. On a quarterly basis, it hired 635 technicians in Q1 (-18.0% YoY), 584 in
Q2 (-29.6% YoY), 295 in Q3 (-72.8% YoY), and 291 in Q4 (-51.6% YoY). The company has curtailed hiring since Q1 andaimed to improve the staff utilization rate in Q1 and Q2. In Q3 and Q4, it sharply scaled back hiring YoY to maintain thestaff utilization rate in the face of uncertainty over demand trends amid the COVID-19 pandemic. However, it has
resumed its hiring activities after the staff utilization rate rose both YoY and QoQ in Q4.
 The retention rate fell 3.8pp to 69.1% from 72.8% in FY09/19. According to the company, the drop in the retention rate
reflected rate adjustment and a large number of technicians hired in FY09/19 leaving in Q2 and Q3 FY09/20, after their▷first assignments.
The staff utilization rate (number of technicians on assignment divided by total number of technicians) fell 0.4pp YoY from
92.7% in FY09/19 to 92.3% in FY09/20. On a quarterly basis, however, the utilization rate was 93.4% in Q1 (-0.2pp YoY),
93.8% in Q2 (-1.0pp YoY), 90.9% in Q3 (-2.7pp YoY), and 91.1% in Q4 (-1.6pp YoY). The rate for Q3 fell YoY and QoQ on
falling demand for technicians due to the COVID-19 pandemic. The rate for Q4 was down YoY, but rose QoQ as demand▷bottomed out.
Hours dispatched (the average number of hours worked per day) were 9.46 hours (-0.12 hours or -1.3% YoY). On a quarterly
basis, hours dispatched were 9.57 hours in Q1 (-0.4% YoY), 9.63 hours in Q2 (-0.7% YoY), 9.24 hours in Q3 (-2.7% YoY), and9.40 hours in Q4 (-1.3% YoY). In Q3, hours dispatched declined as overtime hours were reduced due to the pandemic, but▷rose QoQ in Q4.
The average hourly billing rate was JPY3,126 (+JPY143 or +4.8% YoY). By quarter, the average hourly billing rate was JPY3,028
in Q1 (+1.8% YoY), JPY3,100 in Q2 (+4.1% YoY), JPY3,187 in Q3 (+6.2% YoY), and JPY3,189 in Q4 (+7.1% YoY). In Q3,
Yumeshin reviewed its contracts with customers to reflect the revised Worker Dispatching Act (enacted in April 2020), and thisdrove up the average hourly billing rate. A decline in the ratio of first-year technicians similarly lifted the average hourly billingrate.
 Due to the reduction in hiring and lower retention rate, the ratio of first-year technicians whose average hourly rate isrelatively low fell 14.1pp to 23.7% from 37.8% at end-FY09/19.
 Average billing rates per year of employment were as follows: up 4.2% YoY for first-year technicians, flat YoY forsecond-year technicians, up 1.0% YoY for third-year technicians, and up 1.7% YoY for four-plus year technicians.

The revised Worker Dispatching Act was enacted in April 2020. It aims to resolve unreasonable differences in treatment between regular andnon-regular (including temporary) employees to realize equal pay for equal work (i.e., the determination of wages based on work content rather thanemployment format).

Construction Technician Temporary Staffing and Ancillary Services: Gross profit and SG&A expenses
The segment’s gross profit was up 1.6% YoY to JPY11.3bn, buoyed by revenue growth. However, GPM was down 1.2pp YoY to29.9% as a decline in the staff utilization rate offset growth in billing rates. Yumeshin says that in Q4 the staff utilization rate
improved QoQ, so GPM also improved QoQ.

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SG&A expenses were JPY4.8bn (-10.9% YoY), and the SG&A-to-revenue ratio was 12.6% (-2.3pp YoY), breaking down into
personnel expenses of JPY2.5bn (+8.3% YoY) and hiring expenses of JPY1.0bn (-36.9% YoY).

▷▷

Personnel expenses grew YoY due to increased headcount in sales and human resources management departments.
Hiring expenses decreased YoY due to a fall in the number of new hires.

Engineer Temporary Staffing and Ancillary Services▷▷

Revenue:

JPY19.9bn (+21.5% YoY)

Segment profit:

JPY653mn (+953.2% YoY)

The COVID-19 situation stirred a sense of significant uncertainty about the future, temporarily slowing down the customers’
decisions to place new orders. Still, at the Engineer Temporary Staffing and Ancillary Services business, demand for engineers
remained strong, particularly in the manufacturing industry, which has seen high levels of capital investment in labor saving andautomation, as well as in the IT industry.
Against this backdrop, the company revised its initial hiring goal for the year to 990–1,290 engineers and continued its hiring
efforts to meet the increasing demand for engineers, although it temporarily suppressed hiring activity during the period. In
addition, during FY09/20, it conducted retraining for current engineers and established a system to allow technical support
engineers to be reclassified as mid-level engineers. Shared Research understands that this initiative will make it possible forYumeshin to increase revenue and the profit margin due to higher billing rates in the medium term.

Engineer Temporary Staffing and Ancillary Services: Revenue and key performance metrics
Revenue was up YoY due to an increase in the number of engineers and rise in average billing rate, because some technicalsupport engineers were reclassified as mid-level engineers.
As for the key performance metrics, the average number of engineers was up 16.7% YoY, with staff utilization rate down 0.2pp
YoY, hours dispatched down 1.5% YoY, and billing rates up 7.7% YoY.

▷

The average number of engineers was 3,592 (versus 3,078 in FY09/19), and the number of engineers on the company’s books
at end-FY09/20 was 3,579 (versus 3,640 at end-FY09/19). Yumeshin temporarily curtailed hiring in Q3 and the retention ratefell, resulting in a drop in the number of engineers on the company’s books.
 In FY09/20, the company hired a total of 1,076 engineers (versus 1,748 in FY09/19). Broken down by quarter, it hired 386
in Q1 (+6.6% YoY), 371 in Q2 (+7.8% YoY), 104 in Q3 (-82.2% YoY), and 215 in Q4 (-53.1% YoY). It temporarily curtailed
hiring in Q3, but resumed hiring efforts in Q4.
 The composition of Yumeshin’s engineers as of end-FY09/20 was 41.9% technical support engineers (-17.6pp YoY),
47.6% mid-level engineers (+11.5pp YoY), and 10.5% high-end engineers (+6.1pp YoY). The ratio of technical support
engineers declined and the ratio of mid-level engineers grew because, although hiring activities focus on technicalsupport engineers, the number of engineers hired fell YoY and roughly 200 technical support engineers were reclassified
as mid-level engineers.
 The retention rate fell to 76.6%, down 3.9pp from 80.9% in FY09/19.

▷

The staff utilization rate was 89.7%, up 0.2pp YoY from 89.5% in FY09/19. The rate held at the 90.0% level due to efforts to▷Hours dispatched (the average number of hours worked per day) were 7.64 hours (-0.12 hours or -1.5% YoY). Through Q2,

scale back hiring.

hours dispatched continued to trend down, driven by the ongoing impact of the government’s push for work style reforms. In
Q3, hours dispatched were 7.39 hours (-5.4% YoY) due to impact from the COVID-19 pandemic, but recovered to 7.97 hours
in Q4 (flat YoY).

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The average hourly billing rate was JPY3,076 (+JPY219 or +7.7% YoY). As noted above, the average rate went up, becausesome technical support engineers were reclassified as mid-level engineers. In addition, the company reviewed its contracts
with customers to reflect the revised Worker Dispatching Act (explained above), and this lifted the average hourly billing rate.

Engineer Temporary Staffing and Ancillary Services business: Gross profit and SG&A expenses
The segment’s gross profit was up 20.1% YoY to JPY4.4bn, supported by revenue growth. However, GPM down was down 0.3pp
YoY to 22.4% due to the lower staff utilization rate.
SG&A expenses were JPY3.8bn (+4.2% YoY), and the SG&A-to-revenue ratio was 19.1% (-3.2pp YoY), breaking down into
personnel expenses of JPY2.0bn (+19.3% YoY) and hiring expenses of JPY621mn (-40.9% YoY).

▷

Personnel expenses rose YoY due to an increase in the number of subsidiaries and higher headcounts in sales and human▷

Hiring expenses declined YoY as the company scaled back hiring activities.

resources management departments.

Other
▷
▷

Revenue:

JPY981mn (+171.0% YoY)

Segment loss:

JPY241mn (segment loss of JPY417mn in FY09/19)

Other businesses include recruitment support services for Japanese companies seeking overseas human resources, and Japanese
language schools for local hires of Japanese companies in Vietnam, the Philippines, Taiwan, and South Korea. The global spread of
COVID-19 contributed to a tough operating environment in FY09/20.
Revenue expanded YoY but the segment loss widened.

Recruitment business
Revenue in the recruitment business was JPY77mn (-58.2% YoY), and the segment loss was JPY212mn (versus a loss of JPY145mn
in FY09/19).
With lockdowns being put into place in urban areas around the world in an effort to prevent the further spread of COVID-19, theoperating environment for the recruitment business was particularly harsh. Accordingly, the company intends to narrow down
the business.

Education business
Revenue in the education business was JPY847mn (7x the figure for FY09/19), and segment profit was JPY15mn (versus a loss of
JPY246mn in FY09/19).
Following an acquisition in FY09/19, the company started online programming tutorial services. As a result of advertising andpromotion activities in FY09/19, revenue and profit increased.

Cumulative Q3 FY09/20 results▷

Sales:JPY44.1bn (+17.0% YoY)▷

Operating profit:

JPY4.7bn (+23.5% YoY)

Recurring profit:

JPY4.8bn (+27.2% YoY)

Net income*:

JPY2.6bn (+1.9% YoY)▷▷*Net income attributable to owners of the parent

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The company temporarily curtailed its hiring activities from late March 2020 amid the COVID-19 pandemic, and instead
focused on ensuring that the utilization of its construction technicians and engineers remained steady.
Sales growth in the Construction Technician Temporary Staffing and Ancillary Services and Engineer Temporary Staffing andAncillary Services segments was underpinned by an increase in billing rates and continued high staff utilization rates. New
subsidiaries acquired in FY09/19 also contributed to sales growth.
GPM was down 1.0pp YoY to 28.6%, but gross profit increased on sales growth. In Q3 FY09/20 (April–June 2020), GPM wasweighed down by a drop in the staff utilization rate in the Construction Technician Temporary Staffing and Ancillary Services
segment as demand for technicians dwindled due to the COVID-19 pandemic. According to Yumeshin, personnel demand at
customers has gradually recovered since June 2020—after the state of emergency was lifted. In Q4 (July–September 2020), the▷company plans to keep the staff utilization rate at the Q3 level, and conduct hiring activities accordingly.
The YoY gains at the operating and recurring profit levels reflected a reduction in hiring and other expenses. SG&A expenses
were JPY8.0bn (+7.7% YoY) and the SG&A-to-sales ratio was 18.0% (-1.6pp YoY). Factors driving up SG&A expenses werepersonnel expenses of JPY3.8bn (+21.7% YoY), rent expenses of JPY719mn (+57.7% YoY), and goodwill amortization of
JPY314mn (+83.6% YoY), reflecting growth in the number of consolidated subsidiaries. Factors weighing down SG&A
expenses were hiring expenses of JPY1.3bn (-36.1% YoY) and outsourcing expenses of JPY471mn (-21.1% YoY). The company
plans to adopt IFRS from the FY09/20 results. In FY09/20, it plans to amortize goodwill of roughly JPY400mn over the full year▷

under J-GAAP, but profit decreases caused by goodwill amortization will disappear under IFRS.
Net income attributable to owners of the parent increased YoY despite an impairment loss of JPY423mn and an increase inincome tax.

The company revised its full-year FY09/20 earnings forecast when announcing 1H results. The company lowered its sales andprofit forecast for FY09/20 (IFRS basis), citing adjustments in hiring in line with expected demand amid projections for temporary
project suspensions or delays at client companies, as well as personnel adjustments at outsourcing destinations. The company’s
revised forecast calls for sales of JPY58.0–60.0bn, operating profit of JPY5.8–6.6bn, and net income attributable to owners of theparent of JPY3.7–4.2bn. Compared to the previous forecast, the revised targets are JPY5.0–3.0bn lower for sales, JPY2.2–1.4bn
lower for operating profit, and JPY1.7–1.2bn lower for net income attributable to owners of the parent. The ranged format factors
in two scenarios, with the upper limits assuming hiring activity returning to normal from June 2020 and the lower limits assuming
hiring activity remains subdued through the end of FY09/20.
Results for cumulative Q3 FY09/20 have been within the company’s full-year forecast range. As noted above, the company says
demand has gradually recovered. In Q4 FY09/20, the company expects to hire about 200 to 300 staff in the Construction
Technician Temporary Staffing and Ancillary Services and Engineer Temporary Staffing and Ancillary Services segments. Having able
to prevent a sharp decline in the staff utilization rate in Q3, the company thinks it can maintain a similar level going forward.
Overviews by segment are as follows. Note: Starting in Q1 FY09/20, the company changed its business segmentation scheme.
FY09/19 figures have been adjusted for purposes of comparison and are provided for reference purposes only.

Construction Technician Temporary Staffing and Ancillary Services▷▷

Sales:

JPY29.1bn (+10.2% YoY)

Segment profit:

JPY5.1bn (+18.0% YoY)

The COVID-19 situation stirred a sense of significant uncertainty about the future, temporarily slowing down the customers’
decisions to place new orders. However, the structural labor shortage in the construction industry caused by the aging oftechnicians and the absence of young staff remains unchanged. As such, demand for temporary staffing services remained robust,especially in regional cities where the effects of the pandemic have been limited.

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Construction Technician Temporary Staffing and Ancillary Services: Sales and key metrics of sales performance
Sales growth was driven by an increase in the number of technicians utilized following increased hiring of technicians andimproved billing rates.
As for the key metrics of sales performance, the average number of technicians was up 5.6% YoY, with staff utilization rateunchanged YoY, hours dispatched down 1.3% YoY, and billing rates up 4.0% YoY.

▷

As of end-June 2020, the number of technicians on the company’s books was 5,638 (-447 YoY).
 The number of technicians hired was 1,514, down 43.7% YoY from 2,688 in cumulative Q3 FY09/19. In an effort tobalance hiring activities in light of its operating environment, the company revised its annual hiring goal to 1,650–2,300
technicians, and pushed ahead with hiring activities accordingly. On a quarterly basis, it hired 635 technicians in Q1(-18.0% YoY), 584 in Q2 (-29.6% YoY), and 295 in Q3 (-72.8% YoY). The company has curtailed hiring since Q1, and it
aimed to improve the staff utilization rate in Q1 and Q2. In Q3, it sharply scaled back hiring YoY due to uncertainty overdemand trends amid the COVID-19 pandemic.
 The retention rate fell 3.2pp to 69.5% from 72.9% in cumulative Q3 FY09/19. According to the company, the drop in theretention rate reflected a large number of technicians hired in FY09/19 leaving in Q2 and Q3 FY09/20, after their first

▷

▷

▷

assignments.
The staff utilization rate (number of technicians on assignment divided by total number of technicians) was unchanged YoY at
92.7%. On a quarterly basis, however, the utilization rate was 93.4% in Q1 (-0.2pp YoY), 93.8% in Q2 (-1.0pp YoY), and90.9% in Q3 (-2.7pp YoY). The rate for Q3 was affected by falling demand for technicians due to the COVID-19 pandemic.
Hours dispatched (the average number of hours worked per day) were 9.48 hours (-0.12 hours or -1.3% YoY). On a quarterly
basis, hours dispatched were 9.57 hours in Q1 (-0.4% YoY), 9.63 hours in Q2 (-0.7% YoY), and 9.24 hours in Q3 (-2.7% YoY).
In Q3, hours dispatched declined as overtime hours were reduced due to the COVID-19 pandemic.
The average hourly billing rate was JPY3,105 (+JPY120 or +4.0% YoY). By quarter, the average hourly billing rate was JPY3,028
in Q1 (+1.8% YoY), JPY3,100 in Q2 (+4.1% YoY), and JPY3,187 in Q3 (+6.2% YoY). In Q3, Yumeshin reviewed its contracts withcustomers to reflect the revised Worker Dispatching Act (enacted in April 2020), and this drove up the average hourly billingrate. A decline in the ratio of first-year technicians similarly lifted the average hourly billing rate.
 Due to the reduction in hiring and lower retention rate, the ratio of first-year technicians whose average hourly rate isrelatively low fell 16.3pp to 27.1% from 43.4% at end-Q3 FY09/19.
 Average billing rates per year of employment were as follows: up 3.4% YoY for first-year technicians, up 0.2% YoY forsecond-year technicians, up 0.9% YoY for third-year technicians, and up 1.6% YoY for four-plus years technicians.

The revised Worker Dispatching Act was enacted in April 2020. It aims to resolve unreasonable differences in treatment between regular andnon-regular (including temporary) employees to realize equal pay for equal work (i.e., the determination of wages based on work content rather thanemployment format).

Construction Technician Temporary Staffing and Ancillary Services: Gross profit and SG&A expenses
The segment’s gross profit was up 5.3% YoY to JPY8.8bn, buoyed by sales growth. However, GPM was down 1.4pp YoY to 30.1%
as a decline in the staff utilization rate offset growth in billing rates.
SG&A expenses were JPY3.7bn (-8.7% YoY), and the SG&A-to-sales ratio was 12.7% (-2.6pp YoY), breaking down into personnel
expenses of JPY1.9bn (+12.4% YoY) and hiring expenses of JPY834mn (-35.7% YoY).

▷

Personnel expenses grew YoY due to increased headcount in sales and human resources management departments.

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Hiring expenses decreased YoY due to a fall in the number of new hires.

Q3 FY09/20 results
In Q3 FY09/20, sales totaled JPY8.9bn (-2.2% YoY, -12.5% QoQ), with segment profit at JPY1.3bn (-2.2% YoY, -31.6% QoQ).
Sales and profit declined YoY and QoQ due to a lower staff utilization rate amid the COVID-19 pandemic, a drop in the average
number of technicians, and a decline in hours dispatched. Barring a resurgence of the COVID-19 pandemic, the company thinks
it can achieve a recovery in earnings in Q4 by maintaining the retention rate at the Q3 level and increasing the number oftechnicians.

Engineer Temporary Staffing and Ancillary Services▷▷

Sales:

JPY14.4bn (+28.2% YoY)

Segment profit:

JPY636mn (+110.6% YoY)

At the Engineer Temporary Staffing and Ancillary Services business, demand for engineers remained strong, particularly in the
manufacturing industry that has seen high levels of capital investment in labor saving and automation, as well as in the IT industry.
Demand for engineers was particularly strong among semiconductor-related companies. After the lifting of the state of
emergency, signs of a recovery were evident at an earlier stage than in the Construction Technician Temporary Staffing andAncillary Services segment.
Against this backdrop, the company revised its initial hiring goal for the year to 990–1,290 engineers and continued its hiring
efforts to meet the increasing demand for engineers, although it temporarily suppressed hiring activity during the period. In
addition to ongoing efforts to increase the value-added by its engineers, the company took steps on the sales front to increasecooperation among group companies and expand sales coverage.

Engineer Temporary Staffing and Ancillary Services: Sales and key metrics of sales performance
Sales were up YoY due to an increase in the number of engineers and rise in average billing rate, because some technical support
engineers were reclassified as mid-level engineers.
As for the key metrics of sales performance, the average number of engineers was up 24.0% YoY, with staff utilization rate down
0.1pp YoY, hours dispatched down 2.1% YoY, and billing rates up 6.3% YoY.

▷

The average number of engineers was 3,602 (versus 2,904 in cumulative Q3 FY09/19), and the number of engineers on thecompany’s books at end-June 2020 was 3,568 (versus 3,394 at end-June 2019). The increase in engineers reflects firm
recruitment activities. However, the number of engineers on the company’s books were down by 70 from 3,638 at end-March
2020 as the company temporarily curtailed hiring.
 In cumulative Q3 FY09/20, the company hired a total of 861 engineers (versus 1,290 in cumulative Q3 FY09/19).
 The composition of Yumeshin’s engineers as of end-June 2020 was 42.6% technical support engineers (-16.9pp YoY),
47.3% mid-level engineers (+11.2pp YoY), and 10.2% high-end engineers (+5.8pp YoY). While new hires were mostly
technical support engineers, the share of technical support engineers declined and mid-level engineers increased as
roughly 200 technical support engineers were reclassified as mid-level engineers. The share of high-end engineers grewas the newly consolidated subsidiary (in FY09/19) had high-end engineers on its books.

▷

 The retention rate fell to 76.9%, down 3.4pp from 80.3% in cumulative Q3 FY09/19.
The staff utilization rate was 90.0%, down 0.1pp YoY from 90.1% in cumulative Q3 FY09/19. The rate held at the 90.0% level
due to efforts to scale back hiring.

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Hours dispatched (the average number of hours worked per day) were 7.53 hours (-0.16 hours or -2.1% YoY). Hours
dispatched continued to trend down, driven by the ongoing impact of the government’s push for work style reforms. In Q3,
hours dispatched were 7.39 hours (-5.4% YoY) due to impact from the COVID-19 pandemic.
The average hourly billing rate was JPY3,048 (+JPY181 or +6.3% YoY). As noted above, the average rate went up, becausesome technical support engineers were reclassified as mid-level engineers. In addition, the company reviewed its contracts
with customers to reflect the revised Worker Dispatching Act (explained above), and this lifted the average hourly billing rate.

Engineer Temporary Staffing business: Gross profit and SG&A expenses
The segment’s gross profit was up 25.1% YoY to JPY3.4bn, supported by sales growth. However, GPM down was down 0.6pp
YoY to 23.9% despite higher billing rates and a steady staff utilization rate.
SG&A expenses were JPY2.8bn (+14.5% YoY), and the SG&A-to-sales ratio was 19.5% (-2.3pp YoY), breaking down into
personnel expenses of JPY1.5bn (+30.0% YoY) and hiring expenses of JPY515mn (-33.6% YoY).

▷

Personnel expenses rose YoY due to an increase in the number of subsidiaries and higher headcounts in sales and human▷

Hiring expenses declined YoY as the company scaled back hiring activities.

resources management departments.

Q3 FY09/20 results
In Q3 FY09/20, sales totaled JPY4.7bn (+16.4% YoY, -1.4% QoQ), with segment profit at JPY356mn (+456.3% YoY, +85.4%
QoQ).
Sales and profit increased YoY. Sales declined only 1.4% QoQ as higher billing rates softened the impact from a worsening staff
utilization rate attributable to the COVID-19 pandemic, and declines in the average number of engineers and hours dispatched.
Profit expanded QoQ due to an increase in GPM driven by higher billing rates and to lower hiring expenses. Assuming noresurgence of the COVID-19 pandemic, the company says it will target earnings growth in Q4 by keeping the staff utilization rate
at above 90% and increasing the number of engineers.

Other
▷
▷

Sales:

JPY746mn (+303.2% YoY)

Segment loss:

JPY193mn (versus a loss of JPY114mn in cumulative Q3 FY09/19)

Other businesses include recruitment support services for Japanese companies seeking overseas human resources, and Japanese
language schools for local hires of Japanese companies in Vietnam, the Philippines, Taiwan, and South Korea. The global spread of
COVID-19 contributed to a tough operating environment in cumulative Q3. Following an acquisition in FY09/19, the company
also started online programming tutorial services.
Sales expanded but the segment loss widened.

Recruitment business
Sales in the recruitment business were JPY70mn (-49.7% YoY), and the segment loss was JPY164mn (versus a loss of JPY164mn incumulative Q3 FY09/19).
With lockdowns being put into place in urban areas around the world in an effort to prevent the further spread of COVID-19, theoperating environment for the recruitment business was particularly harsh. Accordingly, the company intends to narrow down
the business.

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Education business
Sales in the education business were JPY627mn (78x the figure for cumulative Q3 FY09/19), and segment profit was JPY8mn(versus a loss of JPY10mn in cumulative Q3 FY09/19).
Sales and profit were firm, thanks to the effects from advertising campaigns the company rolled out in FY09/19.

1H FY09/20 results▷

Sales:

JPY30.3bn (+23.5% YoY)▷

Operating profit:

JPY3.4bn (+27.8% YoY)

Recurring profit:

JPY3.4bn (+30.3% YoY)

Net income*:

JPY1.6bn (-5.6% YoY)▷▷*Net income attributable to owners of the parent▷

The top-line gains were driven by growth at the company’s Construction Technician Temporary Staffing and Ancillary Services
business as well as the Engineer Temporary Staffing and Ancillary Services business, both of which benefited from increases in
the number of technicians working and higher billing rates, as well as contributions from companies acquired in the previous▷▷

fiscal year.
Gross profit was up on higher sales, but the GPM was down 1.1pp YoY to 29.2% due to improving technicians’ pay in theConstruction Technician Temporary Staffing and Ancillary Services business.
The YoY gains at the operating and recurring profit levels reflected increases in the company’s billing rates and curtailment of
hiring and other expenses. SG&A expenses were JPY5.5bn (+26.6% YoY) and the SG&A-to-sales ratio was 18.1% (-1.5pp YoY).
Factors contributing to the increase in SG&A expenses were personnel expenses totaling JPY2.5bn (+26.6% YoY) on new hiringof sales and HR staff and rent expenses of JPY491mn (+69.3% YoY) from an increase in the number of subsidiaries by M&A in▷

FY09/19. Factors contributing to lower SG&A expenses included lower hiring expenses of JPY1.0bn (-22.7% YoY).
The decline in earnings at the net income level was due to a jump in the company’s tax burden and the booking of JPY419mn
on goodwill impairment charges.

The company revised its full-year FY09/20 earnings forecast when announcing 1H results. It noted almost no impact on 1H
earnings from the COVID-19 pandemic, with progress toward its full-year targets, prior to their revision, generally in line with theinitial expectations. However, the company lowered its sales and profit forecast for FY09/20, citing adjustments in hiring in linewith expected demand amid projections for temporary project suspensions or delays at client companies, as well as personnel
adjustments at outsourcing destinations. The company’s revised forecast calls for sales of JPY58.0–60.0bn, operating profit of
JPY5.8–6.6bn, and net income attributable to owners of the parent of JPY3.7–4.2bn. Compared to the previous forecast, therevised targets are JPY5.0–3.0bn lower for sales, JPY2.2–1.4bn lower for operating profit, and JPY1.7–1.2bn lower for net income
attributable to owners of the parent. The ranged format factors in two scenarios, with the upper limits assuming hiring activity
returning to normal from June 2020 and the lower limits assuming hiring activity remains subdued through the end of FY09/20.
Overviews by segment are as follows. Note: Starting in Q1 FY09/20, the company changed its business segmentation scheme.
FY09/19 figures have been adjusted for purposes of comparison and are provided for reference purposes only.

Construction Technician Temporary Staffing and Ancillary Services▷▷

Sales:

JPY20.2bn (+16.7% YoY)

Segment profit:

JPY3.8bn (+27.2% YoY)

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Demand for temporary construction technicians remained firm as general contractors continued to struggle with the labor
shortages fostered by an aging workforce and a chronic lack of younger workers. Construction projects in the Tokyo area that are
related to 2020 Tokyo Olympic and Paralympic Games have been completed, but new redevelopment projects were launched.
Major construction projections in regional cities (including the Linear Chuo Shinkansen) have gotten underway in earnest. On theother hand, the increased number of COVID-19 infections has impacted progress at construction project progress, including
delays in the delivery of materials.

Construction Technician Temporary Staffing and Ancillary Services business: sales and key metrics of sales performance
Sales growth was driven by an increase in the number of technicians utilized following increased hiring of technicians andimproved billing rates.
As for the key metrics of sales performance such as the number of technicians that it dispatches, utilization rates, hours
dispatched and billing rates, the average number of technicians was up 10.1% YoY with staff utilization rate up 0.6pp YoY, theaverage number of hours dispatched down 0.5%, and billing rates increased by 2.9% YoY.

▷

As of end-March 2020, the number of technicians in this segment was 5,936 (+232 YoY).
 The number of hires was 1,219, down from 1,603 in 1H FY09/19. With the aim of maintaining its strong utilization rate,
the company lowered the number of new hires YoY, but still made progress in its systematic recruitment program,created before the COVID-19 pandemic, targeting 2,900 new hires (down from 3,289 in FY09/19). The company has
reduced hiring from March 2020 given uncertainties in demand as a result of the COVID-19 pandemic.
 The retention rate fell 2.8pp to 69.9% from 72.7% in 1H FY09/19. According to the company, the temporary drop in
retention rate reflected a large number of technicians hired in FY09/19 leaving after their first assignments.

▷

The utilization rate (number of technicians on assignment divided by total number of technicians) rose 0.6pp YoY to 93.6%▷

Hours dispatched (the average number of hours worked per day) were 9.60 hours, down 0.5% YoY (-0.05 hours YoY). There▷from 93.0% in 1H FY09/19. As noted above, the company curtailed the hiring of technicians to focus on raising utilization rates.

had been a period of decline in the hours dispatched, driven by the continued impact of the government’s push for work stylereform, but they were more or less steady YoY from Q2 FY09/19 onward.
The average hourly billing rate was JPY3,064 (+JPY87 or +2.9% YoY). The average billing rate has increased for all years of
employment except workers in their second year. The percentage of workers with relatively low hourly rates decreased.
 With the reduction in hiring, the ratio of first-year technicians whose average hourly rate is relatively low fell 6.3pp from
41.2% a year prior to 34.9%.
 Average billing rates per year of employment were as follows: up 2.5% YoY for first-year technicians, down 0.1% YoY forsecond-year technicians, up 1.4% YoY for third-year technicians, and up 1.9% YoY for four-plus years technicians.

Construction Technician Temporary Staffing and Ancillary Services: Gross profit and SG&A expenses
The segment’s gross profit was up 13.7% YoY to JPY6.3bn, buoyed by growth in sales. GPM of 31.4% was down 0.8pp YoY due
to pay increases for technicians, despite higher billing rates and higher utilization rates.
SG&A expenses were JPY2.6bn (-1.6% YoY), and the SG&A-to-sales ratio was 12.7% (-2.4pp YoY), breaking down into personnel
expenses of JPY1.3bn (+17.7% YoY) and hiring expenses of JPY648mn (-24.9% YoY).

▷▷

Personnel expenses went up YoY due to increased headcount in sales and human resources management departments.
Hiring expenses decreased YoY due to a fall in the number of new hires.

COVID-19 impact
The COVID-19 pandemic had almost no impact on earnings in 1H FY09/20. While there were suspensions or delays at someconstruction projects in the greater Tokyo metropolitan area as of May 2020, the reduction in workers has been rather limited.

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Expecting a reduction in demand for construction technicians, the company reduced hiring in April–May to about half the initial
target. Keeping a close eye on trends at construction companies, Yumeshin intends to hire construction technicians from June inline with actual demand.

Engineer Temporary Staffing and Ancillary Services▷▷

Sales:

JPY9.6bn (+34.9% YoY)

Segment profit:

JPY281mn (+17.6% YoY)

At the Engineer Temporary Staffing and Ancillary Services business, demand for engineers remained strong, particularly in the
manufacturing and IT industries, with high levels of capital investment in labor saving and automation.
In keeping with the favorable operating environment, the company set its annual hiring goal at 1,350 and also took steps tostrengthen its internal organization to accommodate this level of hiring and training. In addition to ongoing efforts to increase
the value-added by its engineers, the company took steps on the sales front to increase cooperation among group companies
and expand sales coverage.

Engineer Temporary Staffing and Ancillary Services business: sales and key metrics of sales performance
Sales were up YoY due to an increase in the number of engineers and rise in average billing rate, because some technical support
engineers were reclassified as mid-level engineers.
As for the key metrics of sales performance, the average number of engineers was up 32.1% YoY, the staff utilization rate fell
1.7pp YoY, and the average billing rate went up 5.6% YoY.

▷

The average number of engineers was 3,626 (versus 2,745 in 1H FY09/19), and the number of engineers on the company’sbooks at end-March 2020 was 3,638 (versus 2,838 at end-March 2019). The increase in engineers reflects firm recruitment
activities over the past year.
 In 1H FY09/20, the company hired a total of 757 people in (versus 706 in 1H FY09/19).
 The composition of Yumeshin’s engineers as of end-March 2020 is 55.5% technical support engineers (-4.0pp YoY),
39.7% mid-level engineers (+3.6pp YoY), and 4.8% high-end engineers (+0.4pp YoY). While new hires were mostly
technical support engineers, the share of technical support engineers declined and mid-level engineers increased as sometechnical support engineers were reclassified as mid-level engineers and the newly consolidated subsidiary (in FY09/19)
had high-end engineers.
 The staff retention rate fell to 78.1%, down 2.0pp from 80.1% a year earlier.

▷

The staff utilization rate was 89.6%, down 1.8pp YoY from 91.4% a year earlier. The decline in the utilization rate reflected the▷Hours dispatched (the average number of hours worked per day) totaled 7.60 (-0.03 hours or -0.4% YoY). Hours continued to▷increase in the number of engineers.

trend down, driven by the continued impact of the government’s push for work style reforms.
The average hourly billing rate was JPY2,995 (+4.8% YoY or +JPY137 YoY). As noted above, the average rate went up, becausesome technical support engineers were reclassified as mid-level engineers.

Engineer Temporary Staffing business: Gross profit and SG&A expenses
Gross profit of the Engineer Temporary Staffing business was JPY2.2bn (+23.3% YoY) buoyed by growth in sales. However, GPM
of 23.3% was down 2.1pp YoY despite higher billing rates, due to lower utilization rates.
SG&A expenses were JPY2.0bn (+24.8% YoY) and the SG&A-to-sales ratio was 20.4% (-1.7pp YoY). Personnel expenses were
JPY956mn (+33.5% YoY) and hiring expenses came to JPY422mn (+13.2% YoY).

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Personnel expenses went up due to increasing the head count in sales and human resources management departments.
Hiring expenses rose YoY owing to the increased number of new hires during the period.

COVID 19 impact
As with Construction Technician Temporary Staffing and Ancillary Services, the impact from the COVID-19 pandemic on Engineer
Temporary Staffing and Ancillary Services earnings was almost non-existent. Demand at present also appears firm. The company’s
policy from June 2020 is to match recruitment activity to actual engineer demand.

Other
▷
▷

Sales:

JPY496mn (+342.9% YoY)

Segment loss:

JPY119mn (versus a loss of JPY52mn in 1H FY09/19)

Other businesses include recruitment support services for Japanese companies seeking overseas human resources, and Japanese
language schools for local hires of Japanese companies in Vietnam, the Philippines, Taiwan, and South Korea. Following an
acquisition in FY09/19, the company also started online programming tutorial services.
Reflecting these efforts, sales at the segment were up sharply but operating losses increased.

Recruitment business
Sales in the recruitment business reached JPY57mn (-28.4% YoY), with segment loss at JPY95mn (versus a loss of JPY66mn in 1H
FY09/19).
With lockdowns being put into place in urban areas around the world in an effort to prevent the further spread of COVID-19, theoperating environment for the recruitment business was particularly harsh. Accordingly, the company is following a policy
focused on narrowing down the business.

Education business
Sales in the education business reached JPY404mn, up from JPY8mn in 1H FY09/19, with segment profit at JPY12mn (versus a lossof JPY7mn in 1H FY09/19).
Sales and profit were both firm, thanks in part to the effects from advertising last year.

Q1 FY09/20 results▷

Sales:

JPY15.1bn (+27.6% YoY)▷

Operating profit:

JPY1.5bn (+23.0% YoY)

Recurring profit:

JPY1.5bn (+22.4% YoY)

Net income*:

JPY729mn (-14.5% YoY)▷▷*Net income attributable to owners of the parent▷

The top-line gains were driven by growth at the company’s Construction Technician Temporary Staffing and Ancillary Services
business as well as the Engineer Temporary Staffing and Ancillary Services business, both of which benefited from increases in
the number of technicians working and higher billing rates, as well as contributions from companies acquired in the previous▷

fiscal year.
Gross profit was up on higher sales, but the GPM was down 1.0pp YoY to 28.8% due to improving technicians’ pay in theConstruction Technician Temporary Staffing and Ancillary Services business.

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The gains at the operating and recurring profit levels reflected increases in the company’s billing rates and curtailment of hiringand other expenses. SG&A expenses were JPY2.8bn (+23.4% YoY) and the SG&A-to-sales ratio was 18.6% (-0.6pp YoY).
Factors contributing to the increase in SG&A expenses were personnel expenses totaling JPY1.3bn (+37.7% YoY) on new hiringof sales and HR staff and rent expenses of JPY255mn (+88.9% YoY) from an increase in the number of subsidiaries by M&A in
FY09/19, offset lower hiring expenses of JPY561mn (-12.6% YoY) and outsourcing expenses of 109mn (-45.2% YoY) due to the▷absence of M&A-related expenses.
The decline in earnings at the net income level was due to a jump in the company’s tax burden.

Progress versus the FY09/20 company forecast was on track. The company has indicated it will voluntarily apply IFRS from full-year
FY09/20, applying J-GAAP through cumulative Q3, and has only announced full-year forecast on an IFRS basis.
Overviews by segment are as follows. Note: Starting in Q1 FY09/20, the company changed the names of reportable segmentsfrom Construction Technician Temporary Staffing and Engineer Temporary Staffing segments to Construction Technician
Temporary Staffing and Ancillary Services and Engineer Temporary Staffing and Ancillary Services. The company also reorganized
its business segments, such as transferring the IT business (network equipment sales and leasing and contracted IT systems

development) from the Other segment to the Engineer Temporary Staffing and Ancillary Services segment. FY09/19 figures havebeen adjusted for purposes of comparison and are provided for reference purposes only.

Construction Technician Temporary Staffing and Ancillary Services▷▷

Sales:

JPY10.0bn (+19.1% YoY)

Segment profit:

JPY1.8bn (+34.0% YoY)

Demand for temporary construction technicians remained strong as general contractors continue to struggle with the labor
shortages fostered by an aging workforce and a chronic lack of younger workers. Construction projects in the Tokyo area that are
related to 2020 Tokyo Olympic and Paralympic Games have been completed, but new redevelopment projects were launched.
Major construction projections in regional cities (including the Linear Chuo Shinkansen) have gotten underway in earnest.

Construction Technician Temporary Staffing and Ancillary Services business: sales and key metrics of sales performance
Sales growth was driven by an increase in the number of technicians utilized following increased hiring of technicians andimproved billing rates.
As for the key metrics of sales performance such as the number of technicians that it dispatches, utilization rates, hours
dispatched and billing rates, the average number of technicians was up 13.8% YoY with staff utilization rate up 0.2pp YoY, theaverage number of hours dispatched down 0.4%, and billing rates increased by 1.8% YoY.

▷
▷

▷
▷

As of end-December 2019, the number of technicians in this segment was 6,078 (up 650 YoY).
The company’s systematic recruitment program targeting 2,900 new hires in FY09/20 (versus 3,289 in FY09/19) resulted in
635 workers joining in Q1 (versus 774 in Q1 FY09/19). In Q1 FY09/20, it curtailed the hiring of technicians to focus on raisingutilization rates.
The retention rate fell 1.8pp to 70.9% from 72.6% in Q1 FY09/19. According to the company, the temporary drop in retention
rate reflected a large number of technicians hired in FY09/19 leaving after their first assignments.
The utilization rate (number of technicians on assignment divided by total number of technicians) rose 0.2pp YoY to 93.4%
from 93.2% in Q1 FY09/19. As noted above, the company curtailed the hiring of technicians to focus on raising utilization rates
in Q1.

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Hours dispatched (the average number of hours worked per day) were 9.57 hours, down 0.4% YoY (-0.04 hours YoY). There
had been a period of decline in the hours dispatched, driven by the continued impact of the government’s push for work stylereform, but they were more or less steady YoY from Q2 FY09/19 onward.
The average hourly billing rate was JPY3,028 (+JPY93 or +1.8% YoY). The average billing rate has increased for all years of
employment except workers in their second year. The percentage of workers with relatively low hourly rates decreased.
The ratio of first-year technicians whose average hourly rate is relatively low fell 1.7pp from 40.9% a year prior to 39.2%.
Average billing rates per year of employment were as follows: up 1.1% YoY for first-year technicians, down 0.6% YoY forsecond-year technicians, up 0.6% YoY for third-year technicians, and up 1.1% YoY for four-plus years technicians. The
company said robust demand for construction technician temporary staffing continued to push average billing rates generally
higher.

Construction Technician Temporary Staffing and Ancillary Services: Gross profit and SG&A expenses
The segment’s gross profit was up 16.8% YoY to JPY3.1bn, buoyed by growth in sales. GPM of 30.5% was down 0.6pp YoY due
to pay increases for technicians, despite higher billing rates and higher utilization rates.
SG&A expenses were JPY1.2bn (-2.3% YoY), and the SG&A-to-sales ratio was 12.1% (-2.6pp YoY), breaking down into personnel
expenses of JPY635mn (+20.7 YoY) and hiring expenses of JPY328mn (-21.5% YoY).

▷▷

Personnel expenses went up YoY due to increased headcount in sales and human resources management departments.
Hiring expenses decreased YoY due to a fall in the number of new hires. As well, the company established a new recruiting
webpage in Q1 FY09/19 targeting veteran technicians (over age 50) and conducted recruitment campaigns but in Q3
discontinued those that fell short of expected results, which also contributed to a reduction in hiring expenses.

Engineer Temporary Staffing and Ancillary Services▷▷

Sales:

JPY4.8bn (+44.3% YoY)

Segment profit:

JPY88mn (-48.2% YoY)

At the Engineer Temporary Staffing and Ancillary Services business, demand for engineers remained strong, particularly in the
manufacturing and IT industries, with high levels of capital investment in labor saving and automation.
In keeping with the favorable operating environment, the company set its annual hiring goal at 1,350 (versus 1,748 a year earlier)and also took steps to strengthen its internal organization to accommodate this level of hiring and training. In addition to
ongoing efforts to increase the value-added by its engineers, the company took steps on the sales front to increase cooperation
among group companies and expand sales coverage.

Engineer Temporary Staffing and Ancillary Services business: sales and key metrics of sales performance
Sales were up YoY due to an increase in the number of engineers and rise in average billing rate, because some technical support
engineers were reclassified as mid-level engineers.
As for the key metrics of sales performance, the average number of engineers was up 36.8% YoY, the staff utilization rate fell
1.7pp YoY, and the average billing rate went up 5.6% YoY.

▷▷

The average number of engineers was 3,637 (versus 2,659 in Q1 FY09/19), and the number of engineers on the company’sbooks at end-December 2019 was 3,703 (versus 2,719 at end-December 2019). The increase in engineers reflected a focus on
recruitment activities in FY09/19.
In Q1 FY09/20, the company hired a total of 386 people in Q1 FY09/19 (versus 362 in Q1 FY09/19).

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The composition of Yumeshin’s engineers as of end December 2019 is 54.0% technical support engineers (-5.5pp YoY), 40.7%
mid-level engineers (+4.6pp YoY), and 5.4% high-end engineers (+1.0pp YoY). While new hires were mostly technical support
engineers, the share of technical support engineers declined and mid-level engineers increased as some technical support▷

engineers were reclassified as mid-level engineers and the newly consolidated subsidiary (in FY09/19) had high-end engineers.
Broken down into IT and electrical and electronic apparatuses/machinery businesses, the number of engineers at end
December 2019 was 2,550 for IT and 1,153 for electric and electronic apparatuses/machinery. The company is focusing on
hiring more IT engineers in the medium term. In Q1 FY09/20, the 386 new hires broke down into 320 in the IT business and 66

▷
▷
▷
▷

in the electric and electronic apparatuses/machinery business.
The staff retention rate fell to 79.5%, down 1.7pp from 81.2% a year earlier.
The staff utilization rate was 90.1%, down 1.0pp YoY from 91.1% in Q1 FY09/19. The decline in the utilization rate reflected
the increase in the number of engineers.
Hours dispatched (the average number of hours worked per day) totaled 7.66 (-0.02 hours or -0.3% YoY). Hours continued totrend down, driven by the continued impact of the government’s push for work style reforms.
The average hourly billing rate was JPY2,974 (+5.6% YoY or +JPY158 YoY). As noted above, the average rate went up, becausesome technical support engineers were reclassified as mid-level engineers.

IT engineers: Mainly engage in app and website development or installation and troubleshooting of IT products, depending on their position
Electrical, electronic, and mechanical engineers: Mainly engage in design and development as well as administrative work in the fields ofsemiconductors, electrical and electronic apparatuses, machinery, information technology, and chemistry.

Engineer Temporary Staffing business: Gross profit and SG&A expenses
Gross profit of the Engineer Temporary Staffing business was JPY1.1bn (+31.2% YoY) buoyed by growth in sales. However, GPM
of 23.7% was down 2.4pp YoY despite higher billing rates, due to lower utilization rates.
SG&A expenses were JPY1.1bn (+50.6% YoY) and the SG&A-to-sales ratio was 21.8% (+0.9pp YoY). Personnel expenses were
JPY479mn (+53.0% YoY) and hiring expenses came to JPY252mn (+6.3% YoY).

▷▷

Personnel expenses went up due to increasing the head count in sales and human resources management departments.
Hiring expenses rose YoY owing to the increased number of new hires during the period.

Other
▷
▷

Sales:

JPY248mn (+281.5% YoY)

Segment loss:

JPY92mn (versus loss of JPY47mn in Q1 FY09/19)

Other businesses include recruitment services for construction companies, recruitment support services for Japanese companies
seeking local human resources in Vietnam, and Japanese language schools for local hires of Japanese companies in Vietnam, thePhilippines, Taiwan, and South Korea. Following an acquisition in FY09/19, the company also started online programming tutorialservices.
Reflecting these efforts, sales at the segment were up sharply but operating losses increased.

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Income statement
Income statement

FY09/11 FY09/12 FY09/13 FY09/14 FY09/15 FY09/16 FY09/17 FY09/18

Income statement

FY09/19

FY09/20(JPYmn)

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

(JPYmn)

IFRS

IFRS

Sales

6,817

10,982

12,53816,482

21,11623,271

30,51040,419

Revenue

52,50558,669

YoY

40.2%

61.1%

14.2%

31.5%

28.1%

10.2%

31.1%

32.5%

-

11.7%

Cost of sales

4,918

7,824

9,088

11,90015,966

16,707

21,73028,081

Cost of revenue

37,64442,494Gross profit

14,861

16,175Gross profit

YoY

1,899

3,159

3,450

4,583

5,150

6,563

8,781

12,339

27.9%

28.8%

27.5%

27.8%

24.4%

28.2%

28.8%

30.5%

SG&A expenses

1,357

1,964

2,220

2,726

3,423

4,130

6,419

7,152

SG&A ratio

19.9%

17.9%

17.7%

16.5%

16.2%

17.7%

21.0%

17.7%

Operating profit

543

1,195

1,230

1,857

1,727

2,433

2,362

5,186

YoY

4.4%

120.1%

3.0%

51.0%

-7.0%

40.9%

-2.9%

119.6%

Operating profit margin

8.0%

10.9%

9.8%

11.3%

8.2%

10.5%

7.7%

12.8%

Non-operating income

232

269

648

1,379

356

246

219

187

Finance income

Non-operating expense

324

168

107

284

123

216

157

432

Finance expenses

82

524

451

1,296

1,771

2,952

1,960

2,463

2,424

4,941

Pre-tax profit

3,870

5,076

-

31.2%

Gross profit margin

Recurring profit

Gross profit margin

28.3%

27.6%

SG&A expenses

10,435

10,249

SG&A ratio

19.9%

17.5%

Operating profit
YoY

Operating profit margin

3,891

5,306

-

36.4%

7.4%

9.0%

60

294

YoY

-18.3%

187.2%

36.7%

66.7%

-33.6%

25.7%

-1.6%

103.8%

YoY

RPM

6.6%

11.8%

14.1%

17.9%

9.3%

10.6%

7.9%

12.2%

Pre-tax profit margin

7.4%

8.7%

Tax charges

219

469

536

1,093

1,189

708

910

1,342

Income tax expenses

995

1,514

69.7%

37.5%

26.8%

31.8%

38.0%

28.8%

40.6%

26.4%

Implied tax rate

25.7%

29.8%

40
739

71
1,389

95
2,246

61
1,882

130
1,623

-97
1,426

108
3,636

Net income attrib. to non-controlling interests

Net income-7102Profit

-75
2,949

6
3,557

YoY

-73.5%

622.5%

88.0%

61.8%

-16.2%-13.7%-12.1%

154.9%

YoY

#REF!

20.6%

1.5%

6.7%

11.1%

13.6%

8.9%

7.0%

4.7%

9.0%

Profit margin

5.6%

6.1%

Implied tax rate
Net income attrib. to non-controlling interests

Net margin

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

From FY09/09 until FY09/10, sales were sluggish as construction of new houses fell due in part to stricter compliance inspections
connected to revisions to the Building Standards Law. From FY09/11 until FY09/12, sales rose thanks primarily to the acquisitionof Yume Technology as a consolidated subsidiary. Since FY09/13, the company has achieved earnings growth by expanding its
staff of technicians and raising billing rates as the construction industry recovers.

FY09/09–FY09/10
Company sales trended downward from FY09/09 until FY09/10. This drop was primarily due to the 2008 global financial crisis
and a slump in construction of new houses that occurred as a result of stricter compliance inspections in connection with 2007
revisions to the Building Standards Law.
Operating profit increased by more than 50% while sales fell 22.6% in FY09/09. This rise occurred because SG&A expenses
decreased by 35.2% YoY due primarily to reduced payment of overtime wages achieved through the adoption of a flex timesystem. In FY09/10, operating profit dropped on lower sales.

FY09/11–FY09/12
In January 2011, the company converted Yume Technology (formerly Fullcast Technology Co., Ltd.) into a subsidiary andadvanced into the construction technician temporary staffing business. This conversion boosted FY09/11 sales and also brought
up FY09/12 sales through Yume Technology’s full-year contributions to consolidated earnings.
Growth in operating profit was limited to 4.4% in FY09/11 but expanded by 120.1% in FY09/12. This growth was due toincreased profit, which was primarily thanks to a rising utilization rate in the Construction Technician Temporary Staffing
business.

Since FY09/13
Yumeshin hired 1,233 new construction technicians in FY09/13, about three times as many as in FY09/12. The company has sincecontinued to conduct large-scale annual recruitment of more than 1,000 people in Construction Technician Temporary Staffing(2,764 new hires in FY09/18). Since it began, large-scale recruitment has boosted both sales and profit in the Construction
Technician Temporary Staffing segment and has driven overall company earnings as well.
Excluding FY09/15, FY09/17, and FY09/19, operating profit has been on an upward trend since FY09/13.

▷

In FY09/15, profit increased in the Construction Technician Temporary Staffing segment, the company’s primary business, but
expanded losses in childcare support, nursing, and overall construction led to a decrease in overall profit.

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Profit in the Construction Technician Temporary Staffing segment also increased in FY09/17, but the company invested in theestablishment of systems enabling annual recruitment on the scale of 1,000 new hires (compared to 460 new hires in FY09/16)
in the Engineer Temporary Staffing segment, and this expenditure resulted in a reduction in profit.
In FY09/19, profit fell as margins in the Construction Technician Temporary Staffing and the Engineer Temporary Staffing
segments declined due to lower utilization rates accompanying a rise in new hires, and the company incurred expenses on anumber of M&A transactions executed during the year.

Historical results vs. estimates
Results vs. Initial Est.
(JPYmn)

Revenue/Sales (Initial Est.)
Revenue/Sales (Results)

FY09/11 FY09/12 FY09/13 FY09/14 FY09/15 FY09/16 FY09/17 FY09/18 FY09/19 FY09/20
JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

IFRS

5,120

5,200

13,50018,00000～25,500

23,00023,00039,00050,00063,000

4,862

6,817

12,53816,482

21,11623,271

30,51040,41952,50558,669

-5.0%

31.1%

-7.1%

-8.4%

-

1.2%

32.7%

3.6%

5.0%

-6.9%

Operating profit (Initial Est.)

710

620

2,100

-

-

-

3,600

5,400

6,000

8,000

Operating profit (Results)

520

543

1,230

-

-

-

2,362

5,186

4,720

5,306

-26.8%-12.5%-41.4%----34.4%-4.0%-21.3%-33.7%
5,400

Results vs. Initial Est.

Results vs. Initial Est.
Profit/Net income (Initial Est.)

560

350

1,300100～2,6002,250～3,200

2,000

2,100

3,700

4,100

Profit/Net income (Results)

386

102

1,389

2,246

1,882

1,623

1,426

3,636

2,504

3,557

-31.1%-70.8%

6.8%---18.9%-32.1%-1.7%-38.9%-34.1%

Results vs. Initial Est.

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

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Statement of financial position
Balance sheet(JPYmn)FY09/11 FY09/12 FY09/13 FY09/14 FY09/15 FY09/16 FY09/17 FY09/18
JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

JGAAP

ASSETS

Statement of financial position(JPYmn)FY09/19

FY09/20

IFRS

IFRS

ASSETSCash and deposits

2,304

2,558

4,246

5,755

11,460

8,724

8,556

11,301

Cash and cash equivalents

10,10915,426

Accounts receivable

1,425

1,626

1,860

2,524

2,748

3,642

4,854

5,973

Trade and other receivables

7,613

7,528

1

1

1

1

1

1

1

1

-74

-85

-22

-32

-22

-22

-30

-18

Inventories
Allowance for doubtful accounts

Inventories

57

63

Other finance assets

188

147

Other current assets

260

583

373

607

1,023

988

1,450

1,620

Other current assets

858

1,611

Total current assets

3,917

4,684

6,457

8,856

15,21013,334

14,83918,887

Total current assets

18,825

24,775

Total tangible fixed assets

1,388

1,412

1,465

811

940

1,353

1,080

938

Tangible fixed assets

2,305

2,994

-

-

-

1,135

1,118

1,106

-

-

Goodwill

3,676

3,429

293

689

1,166

1,072

1,772

1,566

2,602

2,053

Intangible assets

1,044

1,123

566

908

1,440

2,723

3,299

3,193

3,388

2,995

Investment real estate

230

225

718

628

516

391

309

1,175

899

610

Other financial assets

3,029

1,790

Deferred tax assets

1,203

2,028

Investment real estate (net)
Investment securities
Investments and other assets
Goodwill
Intangible fixed assets
Total fixed assets
Total deferred assets
Total assets

759

666

553

416

348

1,221

1,060

744

2,713

2,986

3,458

3,950

4,588

5,766

5,528

4,678

Other noncurrent assets

34

36

-

-

-

-

-

18

34

7

Total noncurrent assets

11,522

11,624

6,630

7,670

9,916

12,806

19,798

19,11820,401

23,571

Total assets

30,34736,399

4,459

2,675

LIABILITIESLIABILITIESShort-term debt

2,195

1,826

840

856

1,106

891

1,733

1,309

Accounts payable

10

14

9

12

9

11

25

9

Accrued expenses

521

551

643

799

1,069

1,058

1,408

2,026

Other

Bonds and borrowings
Trade and other payables

688

567

Other financial liabilities

647

1,653

674

1,011

964

1,925

1,848

1,591

2,681

3,303

6,838

12,118

Total current liabilities

3,400

3,402

2,455

3,593

4,031

3,552

5,848

6,647

Total current liabilities

12,632

17,013Long-term debt

1,088

1,509

1,649

893

1,219

1,645

1,045

2,538

Bonds and borrowings

5,220

6,051

384

423

433

414

430

410

487

414

Other

1,441

1,774

Total fixed liabilities

1,472

1,932

2,082

1,307

1,649

2,055

1,532

2,952

Total noncurrent liabilities

6,661

7,825

Total liabilities

4,872

5,334

4,538

4,899

5,681

5,606

7,381

9,599

Total liabilities

19,292

24,838Other

NET ASSETS

Other

EquityCapital stock

805

805

805

805

805

805

805

805

Capital stock

823

829

Capital surplus

868

868

2,205

3,803

9,346

9,555

9,701

9,718

Capital surplus

10,77810,804Retained earnings

1,670

2,262

3,323

3,842

3,488

2,315

1,317

2,267

Treasury stock-1,770-1,790-1,290-1,013

-0

-0

-0

-0

Non-controlling interests

Retained earnings

1,562

2,459

Treasury stock-2,001-2,438

193

227

376

518

542

847

1,026

1,028

-133

-129

Total net assets

1,757

2,336

5,378

7,907

14,117

13,512

13,08013,973

Total equity

11,055

11,561

Working capital

1,417

1,614

1,852

2,513

2,740

3,632

4,829

5,965

Working capital

6,982

7,024

Total interest-bearing debt

3,284

3,335

2,488

1,749

2,325

2,536

2,779

3,847

Total interest-bearing debt

9,679

8,726

978

771

-1,774-4,006-9,136-6,187-5,777-7,454

Net debt-431-6,700Net debt

Non-controlling interests

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Assets
The company’s assets have varied considerably due to the addition and removal of subsidiaries from the scope of consolidation.
At end-FY09/04, total assets were 5.3 billion yen, but total assets grew to 47.9 billion yen in FY09/06. Starting in FY09/07, thecompany reversed the acquisition trend and began focusing on its main operations. The company sold non-core businesses
during FY09/07. Total assets fell to 4.9 billion yen for FY09/09.
The company’s assets increased due to growth at its core businesses, and in FY09/20, total assets stood at JPY36.4bn. Current
assets, a major asset item on the balance sheet, accounted for 68.1% of total assets. The company’s core business is staffing, withthe majority of its current assets in cash and cash equivalents (42.4% of total assets in FY09/20) and in trade receivables and otherreceivables (20.7%).
Tangible fixed assets are mainly the company’s head office and its various hiring centers. Together they constituted 8.2% of total
assets in FY09/20.
Goodwill accounted for 8.2% of total assets in FY09/20. Goodwill accounted for the bulk of the value of companies purchased in
FY09/19: Neplus K.K., Sanritsu Design Co., Ltd., InformationPort Co., Ltd., Samurai, Inc., and Garenet Co., Ltd.

Liabilities
The company had JPY2.6bn of interest-bearing debt at end-FY09/04, which grew to JPY23.7bn at end-FY09/06 because ofbusiness expansion that relied on M&A and the creation of new subsidiaries. The company subsequently refocused on its main
operations and as of end-FY09/18 interest-bearing debt was down to JPY3.8bn, but it increased to JPY8.7bn in FY09/20 due to

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borrowings used in acquisitions. Net debt (interest-bearing debt minus cash and cash equivalents [including short-term
investment securities]) has remained negative since FY09/13 (with cash and cash equivalents exceeding debt).

EquityEquity (net assets) varies in response to acquisitions of treasury stock or changes in retained earnings as net income or loss are
realized each term. The increase in net assets after end-FY09/13 was largely due to retained earnings and disposal of treasury
stock. Capital stock in FY09/13, FY09/14 and FY09/15 increased JPY1.8bn, JPY1.9bn and JPY6.6bn respectively following thedisposal of treasury stock.
The equity ratio fell to 3.3% in FY09/06 and, following financial and other restructuring, stood at 54.6% as of end-FY09/18. In
FY09/20, the equity ratio attributable to owners of parent declined to 32.1%. This was due to a decrease in total equity
attributable to owners of parent resulting from the company’s purchase of treasure shares and increases in loans and otherliabilities.

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Statement of cash flows
Statement of cash flows(JPYmn)FY09/11 FY09/12 FY09/13 FY09/14 FY09/15 FY09/16 FY09/17 FY09/18 FY09/19 FY09/20
JGAAP

Cons.

Cons.

Cons.

Cons.

Cons.

Cons.

Cons.

IFRS

IFRS

Cash flows from operating activities (1)

558

528

793

1,659

713

726

1,536

3,929

3,113

9,934

Cash flows from investing activities (2)

-498

-409

180

620

-178

-1,118417

415-4,400

476

60

119

973

2,279

535

-392

1,953

4,345

-1,286

10,410-5,088

Free cash flow (1+2)
Cash flows from financing activities

-178

4

595

-734

5,272

-2,173-2,027-1,592-305

Depreciation and amortization (A)

35

84

79

165

212

223

424

421

620

928

Capital expenditures (B)

135

-80

-40

-887

-393

-474

-144

-116

-465

-543

Working capital changes (C)Simple FCF (NI + A + B - C)

-21

703

238

662

227

892

1,197

1,136

-

42

576

-596

1,189

862

1,474

480

508

2,805

-

3,901

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

Cash flows from operating activities
Trends for cash flows from operating activities are typical, varying with net income or loss and changes in working capital. In
FY09/06 and FY09/07 cash flows from operating activities were negative. The principal causes were a sudden increase in working
capital FY09/06, and net losses in FY09/07.

Cash flows from investing activities
Cash flows from investing activities vary mainly with acquisition or sale of investment securities.
In FY09/16, cash flows from investing activities were the result of outflows of JPY1.1bn (minus). This came from capital andbusiness alliances and the conversion of certain companies to subsidiaries to facilitate human resource education and thedispatch of temporary staff for IT technology in the future. A breakdown shows outflows of JPY204mn to acquire affiliate shares,
JPY455mn to acquire subsidiary stocks and JPY103mn to transfer a business.
In FY09/19, cash flows from investing activities were negative, comprising outflows of JPY4.4bn. This was due to outflows of
JPY3.1bn to acquire shares in subsidiaries accompanying changes in the scope of consolidation due to the purchase of Neplus
K.K., Sanritsu Design Co., Ltd., InformationPort Co., Ltd., Samurai, Inc., and Garenet Co., Ltd.

Cash flows from financing activities
Through FY09/06, the cash flows from financing activities tended to be positive due to the issue of corporate bonds orborrowings accompanying the expansion of operations. Since FY09/07 the trends reversed as the company repaid bank debt andredeemed corporate bonds. The disposition of treasury shares in FY09/15 generated an income of JPY6.6bn, resulting in apositive cash flow from financing activities.

Simple free cash flow
The main sources of change have come from changes in the net income and working capital.

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Other information
History
The company was founded in 1970 as a construction design office by Shingo Sato, current Chairman and CEO. Subsequently, it
became Sato Construction Design Ltd., and in October 1990, in order to expand the size of the business, the company wasincorporated (and changed its name to Yumeshin Co., Ltd.). The company started a staffing business in 1991.
The company launched an M&A-based expansion program in 2005, with the goal of becoming a general construction company,
but with the harsh business environment and worsening business efficiency, all of the acquired firms were sold off. Since thattime, the company has focused on developing its core staffing business in the construction industry. In 2011 the company
entered the Engineer Temporary Staffing and Ancillary Services business with the purchase of Yume Technology Co., Ltd., whichbecame the second growth driver as of 2020 following the Construction Technician Temporary Staffing and Ancillary Services
business.
January 1980

Established Sato Construction Design Ltd. aiming to provide construction drawings

April 1985

Started building overseas network for construction drawings

April 1987

Started ordering construction drawing to design offices overseas

October 1990

Incorporated and changed its name to Yumeshin Co., Ltd.

March 1991

Started operation of Construction Technician Temporary Staffing business

December 1996

Established Yumeshin Vietnam Co., Ltd. to enhance overseas production capacity

September 2003

Listed on the Osaka Stock Exchange (Hercules: 2362)

April 2005

Transitioned to a pure holding company and changed name to Yumeshin Holdings Co., Ltd.
New company Yumeshin Co., Ltd. established for succession of business operations

October 2007

Yumeshin Holdings Co., Ltd. took over Yumeshin Co., Ltd. in absorption-type merger

October 2010

Listed on Osaka Securities Exchange JASDAQ following market consolidation

January 2011

Made Unitech Soft Co., Ltd. a subsidiary

May 2011

Made Yume Technology Co., Ltd. (former Fullcast Technology Co., Ltd.) a subsidiary through tender offer

January 2012

Opened Yume Tansaku Café, a satellite office for recruiting, in Shibuya-ku, Tokyo, ahead of other sites inJapan

July 2013

Listed on Tokyo Stock Exchange JASDAQ following market consolidation

October 2014

Merged Yume Technology Co., Ltd. with Unitech Soft Co., Ltd. in absorption-type merger

February 2015

Established Yume Agent Co., Ltd.

August 2015

Yume Agent Co., Ltd. made Buzz Box Co., Ltd. a subsidiaryGroup technicians exceeded 2000.

Number of group-wide technicians at work exceeded 3,000
December 2015

Yume Agent Co., Ltd. established Yumeagent Philippines Corp.

May 2016

Established subsidiary Yume Education Co., Ltd.

August 2016

Made Yume Solutions Co., Ltd. (former Social Fintech Co.) a subsidiary

November 2016

Group-wide technicians at work exceeded 4,000

March 2017

Certified as excellent staffing operator in MHLW-commissioned Excellent Worker-Dispatch Operator
Certification System

June 2017

Yume Education Co., Ltd. established Construction Qualifications Promotion Center Co., Ltd.
Yume Agent Co., Ltd. made Yumeagent Vietnam Co., Ltd. a subsidiary

July 2017

Group-wide technicians at work exceeded 5,000

December 2017

Group-wide technicians at work exceeded 6,000

September 2018

Group-wide technicians at work exceeded 7,000
Established Yume Global

October 2018

Made Neplus K.K. a wholly owned subsidiary
Made P3OPLE4U, Inc. a subsidiary

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January 2019

Made Yume Technology Co., Ltd. a wholly owned subsidiary

April 2019

Made InformationPort Co., Ltd., a subsidiary
Made Samurai, Inc. a subsidiary

May 2019

Group-wide technicians at work exceeded 8,000

July 2019

Made Garenet Co., Ltd. a subsidiary

October 2019

Shifted to pure holding company structureNews and topics
November 2020
On November 13, 2020, the company announced its medium-term management plan for FY09/21–FY09/25.
As Japan’s workforce shrinks, the construction industry workforce in particular is aging amid a lack of young workers, and the IT
industry faces an increasingly acute shortage of engineers. Yumeshin has focused on hiring and training employees in response.
In FY09/20, as it temporarily curtailed hiring due to the COVID-19 pandemic, the company’s engineer headcount stagnated. As of
November 2020, with the economy recovering, the company was gradually resuming recruitment activities. Its new
medium-term plan through FY09/25 aims at growth across the group driven by hiring and training personnel.
Earnings targets
Earnings(JPYmn)FY09/20Act.

FY09/21Est.

FY09/22
TargetFY09/23
TargetFY09/24
TargetFY09/25
TargetRevenue

58,66961,00071,50084,00098,000

YoY

11.7%

4.0%

17.2%

17.5%

16.7%

16.3%

5,306

6,000

7,000

9,500

13,00016,500

YoY

36.4%

13.1%

16.7%

35.7%

36.8%

26.9%

Operating profit margin

9.0%

9.8%

9.8%

11.3%

13.3%

14.5%

Operating profit

114,000

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

In the Construction Technician Temporary Staffing and Ancillary Services segment, the company plans to increase the number of
employees on its books by focusing on recruitment and working to improve retention rates. In the medium-term plan, improving
retention rates has the highest priority. Yumeshin plans to accomplish this by improving recruitment quality and forming small
teams to support its engineers.
By focusing attention on recruitment, the company expects margins to decline in the first half of the plan but billing rates to climb
as its engineers gain experience. It foresees segment margins recovering in the second half of the plan.
Construction Technician Temporary Staffing and Ancillary Services earnings forecast
Construction Technician Temporary
Staffing and Ancillary Services (JPYmn)
No. of technicians hired
No. of technicians (year-end)

FY09/20
Act.
1,805
5,348

FY09/21Est.

FY09/22
Target

2,500
5,700

2,700
6,300

FY09/23
Target2,950
6,900

FY09/24
Target3,200
7,500

FY09/25
Target3,450
8,200

Net increase

-751

352

600

600

600

700

Retention rate
Revenue

69.1%
37,921

72.6%
38,00075.0%42,50074.6%
46,00074.3%
51,00074.9%
56,500Operating profit

6,585

6,000

6,400

7,200

8,000

YoY

YoY
Operating profit margin

5.7%

13.0%
17.4%

0.2%

-8.9%
15.8%

11.8%

6.7%
15.1%

8.2%

12.5%
15.7%

10.9%

11.1%
15.7%

10.8%

9,100

13.8%
16.1%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

In the Engineer Temporary Staffing and Ancillary Services segment, the company plans to focus on hiring newcomers to theindustry. Such employees attract relatively low billing rates, but in FY09/20, the company started a retraining program that aims
to boost the skill levels of engineers with one or two years’ experience, which should enable ongoing increases in billing rates.

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Yumeshin intends to grow revenue by focusing on recruitment and increasing the number of engineers on the company’s books.
It also aims to improve margins by expanding the retraining program and increasing billing rates. In the final year of themedium-term plan, the company forecasts this segment to have higher headcount and margins than the Construction Technician
Temporary Staffing and Ancillary Services segment.
Engineer Temporary Staffing and Ancillary Services earnings forecast
Engineer Temporary Staffing and Ancillary
Services (JPYmn)
No. of engineers hired
No. of engineers (year-end)
Net increase

Revenue
YoY

Operating profit

YoY
Operating profit margin

FY09/20
Act.
1,076
3,579

FY09/21Est.

FY09/22
Target

1,600
4,200

FY09/23
Target

2,300
5,400

3,000
6,900

FY09/24
Target3,100
8,300

FY09/25
Target3,800
10,000

-61

621

1,200

1,500

1,400

1,700

19,87522,00027,50036,00045,00055,500

653

900

1,500

3,400

6,400

21.5%

953.2%
3.3%

10.7%

37.8%
4.1%

25.0%

66.7%
5.5%

30.9%

126.7%
9.4%

25.0%

88.2%
14.2%

23.3%

9,000

40.6%
16.2%

Source: Shared Research based on company data
Note: Figures may differ from company materials due to differences in rounding methods.

May 2020
On May 11, 2020, the company announced the booking of impairment losses and revised full-year earnings forecast.

Impairment losses
Yumeshin Holdings announced the booking of JPY419mn in impairment losses (as extraordinary losses) on goodwill impairment
charges at P3OPLE4U, Inc., a consolidated subsidiary in the Philippines that operates an engineer outsourcing business. Given theloss of customers due to the lockdown in the Philippines in response to the COVID-19 outbreak, the company has revised its
earnings outlook and re-examined the prospects for a recovery moving forward.

Revised FY09/20 earnings forecast▷

Sales:

JPY58.0–60.0b (previous forecast was JPY63.0bn)▷

Operating profit:

JPY5.8–6.6bn (JPY8.0bn)

Net income:

JPY3.7–4.2bn (JPY5.4bn)

EPS:

JPY48.65–55.22 (JPY70.59)▷▷

Reasons for the revision
While the increased number of COVID-19 infections has contributed to a slump in corporate activity and a severe slowdown in
the economy as a whole, the company’s core temporary staffing services business as of May 2020 has seen only a minor impact
on outsourcing demand in the key construction and IT industries. However, the situation moving forward remains uncertain andthe company expects temporary project suspensions or delays as well as personnel adjustments at outsourcing destinations toresult in a decline in new technician utilization and a slowdown in the pace at which staffing-related decisions are made.
The company gives priority to maintaining employment for its current engineers, and in a bid to balance supply with demand has
temporarily suspended recruitment efforts, a key growth driver for the firm. As such, the company now expects the number oftechnicians on the company’s books as of the end of FY09/20 to fall below its previous forecast. In light of adjustments inrecruitment to match demand, the company’s revised forecast is in a ranged format, with the higher figure assuming recruitment
activity returns to normal from June 2020 and the lower figure assuming recruitment remains subdued through the end of
September 2020.

March 2020
On March 10, 2020, the company announced its decision on a share repurchase.

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Details of share acquisition▷

Type of shares to be acquired: Common shares of the company▷

Share acquisition cost: JPY1.0bn▷▷

Total number of shares acquirable: 1,600,000 shares (2.1% of total outstanding shares [excludes treasury shares])

Acquisition period: March 17, 2020–June 16, 2020

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Major shareholders
Top shareholders
Sato Sogokikaku Limited
Yoshiko Sato
Custody Bank of Japan, Ltd. (Trust account)
Eiko Yamada

Shares held Shareholding('000)
ratio
10,75114.18%
9,220
12.16%
3,860
5.09%
3,070
4.05%

Mio Sato

3,070

4.05%

The Master Trust Bank of Japan, Ltd. (Trust account)

3,017

3.98%

Daio Sato
Tsurumaki Shoji Co., Ltd.

2,007
1,550

2.65%
2.04%

Hideki Fukai

1,010

1.33%

Masahiro Nomura

SUM

412

0.54%

37,96950.07%

Source: Shared Research based on company data (as of end-September 2020)

Top management
President, Daio Sato
President, Daio Sato, joined Nomura Real Estate Development Co., Ltd. He joined Yumeshin in 2010, became Director in 2015
and President (present post) in 2015.

Dividends and shareholder benefits
The company dividend policy links dividends to the level of profitability. In its medium-term management plan, which wasannounced in FY09/18, the company indicated its intention to pay a minimum dividend of JPY35 per share every year throughFY09/20, and would increase the dividend or undertake share buybacks depending on actual results.

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Company profile
Company Name

Head Office

YUMESHIN HOLDINGS Co., Ltd.

1-4-1 Marunouchi, Chiyoda-ku

Marunouchi Eiraku Bldg., 22F
Tokyo, Japan 100-0005
Phone

Listed On+81-3-3210-1200

JASDAQ Standard

EstablishedExchange Listing

January 28, 1980

September 18, 2003

WebsiteFiscal Year-End

https://www.yumeshin.co.jp/

September

IR Contact

IR Web-https://www.yumeshin-hd.co.jp/ir/

IR Mail

IR Phone-+81-3-3210-1212

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