Summary of Consolidated Financial Results for the Fiscal Year Ended March 2018
(Based on Japanese GAAP)
15 May 2018
Listedcompanyname:
Stock code:

PERSOL HOLDINGS CO., LTD.
2181

Representative(Title)Inquiries(Title)Stock Exchange Listing: Tokyo

URL https://www.persol-group.co.jp/
President & Representative
Masamichi Mizuta
Director, CEO
Director, Executive Officer
Kiyoshi Seki
(Chief Financial Officer)
Scheduled date to
26 June 2018
commence
dividend payments:

TEL +81 03-3375-2220

Scheduled date of ordinary
general meeting of
27 June 2018
shareholders:
Scheduled date to file
27 June 2018
Securities Report:
Preparation of supplementary explanatory material accompanying the financial results yes/no: yes
Holding a results briefing session yes/no: yes(Analyst/Institutional investor oriented)(Amounts less than JPY 1 million rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 2018 (April 1, 2017 - March 31, 2018)(1) Consolidated Operating Results(% indicates ratio of year-on-year changes)
Current net profit
Sales
Operating Profit
Ordinary Profit
Attributable to Parent
JPY Million%
JPY Million%
JPY Million%
JPY Million%
FY ended Mar 2018
722,183
22.0
36,0688.0
35,108
2.8
7,769
△56.4
591,995
14.4
33,40919.1
34,13621.1
17,8202.7
FY ended Mar 2017
Note:
Comprehensive
incomeFY ended
Mar 2018

11,796（△39.7％）

MillionFY ended
Mar 2017

Quarterly net profit per
Current period net profit
share after adjustment forper share
Equity capital
dilution
Current period net profit
Net profit ratio
Current net income perper share
share
JPY
JPY
%
FY ended Mar 2018
33.28
33.27
5.5
75.94
75.77
13.4
FY ended Mar 2017
Ref: Equity method
investment gain & loss

FY ended
Mar 2018

13

19,550(5.3%)

Total assets
Ordinary profit
ratio

Sales
Operating profit
ratio

%
10.5
13.5

%
5.0
5.6

FY ended
Mar 2017

MillionMillion21

Million(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Net assets per share
JPY Million
JPY Million%
JPY
FY ended Mar 2018
403,465
159,99236.1
623.90268,364
153,81651.8
594.95
FY ended Mar 2017
FY ended
FY endedReference: Equity capital
145,537 Million
139,119 Million
Mar 2018
Mar 2017(3) Consolidated Cash Flow Status
Cash flow from operating Cash flow from investing Cash flow from financing Balance of cash & cash
equivalents at end of period
activities
activities
activities
JPY Million
JPY Million
JPY Million
JPY Million
35,003△66,732
50,18689,566
FY ended Mar 2018
FY ended Mar 201739,617△9,708－ 1 －△11,655

69,382

2. Dividend Status
Ratio of

Annual Dividend

Total amount of
Payout ratio dividends todividend(Consolidated) net assets(Total)End Q1End Q2End Q3End of FY

Total

JPY
－
－

JPY
8.00
9.00

JPY
－
－

JPY
9.00
10.00

JPY
17.00
19.00

－

10.00

－

10.00

20.00

(Consolidated)

FY ended Mar 2017
FY ended Mar 2018
FY ending Mar 2019
(Forecast)

JPY Million
3,985
4,443

%
22.4
57.1

%
2.8
3.1

21.5

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 2019 (April 1, 2018 - March 31, 2019)(% indicates ratio of change from: the previous full FY, same quarter in the previous
FY)
Sales

2nd Q (cumulative)
Full Year

Operating profit

Ordinary profit

Current period net
profit attributable toparent company
shareholders

Current period net
profit per share
Current period net
profit per share

JPY Million%

JPY Million%

JPY Million%

JPY Million%

JPY

456,000

40.4

18,00012.4

17,500

5.0

8,700

△5.7

37.20

940,000

30.2

42,50017.8

41,50018.2

21,800

180.6

93.21

※ Explanatory Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in thescope of consolidation): yes
4 new companies (company names): Programmed Maintenance Services Limited, Programmed Health Professionals Pty
Ltd, Programmed Integrated Workforce Limited, Programmed Skilled Workforce Limited. Excluded － Co.s ) Co. name)(2) Changes in accounting policies/changes in accounting estimates/restatement of prior period financial statements① Changes in accounting policies due to revisions to accounting standards etc.: no② Changes in accounting policies other than ①: no③ Changes in accounting estimates: no④ Restatement of revised statements: no(3) Number of fully issued shares (ordinary shares)① Number of fully issued
shares at period end(including treasury stock)

FY ended Mar 2018236,677,955

SharesFY ended Mar
2017236,673,651Shares② Treasury stock at
period end

FY ended Mar 2018

3,406,634

SharesFY ended
Mar 2017

2,838,299 Shares③ Average No. of shares
during the period

FY ended Mar 2018

233,491,790

SharesFY ended Mar
2017234,673,884Shares

Note: Number of treasury stock at the end of period: Includes PHD shares held in the "Director Compensation BIP (Board
Incentive Plan) trust account", and the "Employee Stock Ownership Plan trust account" ("ESOP Trust") (Fiscal year ended
March 2018: 589,571 shares). Furthermore, PHD shares held in the "Director Compensation BIP (Board Incentive Plan)trust account", and the "Employee Stock Ownership Plan trust account" ("ESOP Trust") are included in treasury stock
which are deducted when calculating the average number of shares held in the period.

－ 2 －Reference: Outline of specific results
Specific Results for the Fiscal Year Ended March 2018 (April 1, 2017 - March 31, 2018)(1) Specific Operating Results(% indicates ratio of year-on-year changes)
Sales
Operating Profit
Ordinary Profit
Net Profit
JPY Million%
JPY Million%
JPY Million%
JPY Million%
30,499135.6
22,214200.0
20,661
203.4
14,278125.9
FY ended Mar 2018
FY ended Mar 201712,946

46.1

Current period net profit
per share
JPY
61.15
FY ended Mar 2018
FY ended Mar 2017
26.93

7,404

FY ended Mar 2018

6,809

21.8

6,320

15.7

Current net profit per share after
adjustment for dilution
JPY
61.14
26.87

(2) Specific Financial Position
Total assets
JPY Million
FY ended Mar 2018239,312151,145
FY ended Mar 2017
Ref: Equity capital

30.6

95,515

Net assets
JPY Million
95,51587,095JPY Million

Equity ratio
%
39.9
57.6
FY ended Mar 2017

Net assets per shareJPY
409.46372.4787,095JPY Million※ Summary financial accounts are not subject to audits by Certified Public Accountants or audit firms.
※ Explanation of appropriate usage of financial results forecasts and other special explanatory notes:
Results forecasts etc. used in this material contain forward-looking statements which are based on a certain number ofassumptions PHD deems rational, and the information at hand which are not meant in any way by PHD to be taken as
assurances that will be realized. Actual results etc. may vary greatly due to various causes.

－ 3 －○ Contents of Attachments
1. Review of business performance …………………………………………………………………………………………
(1) Review of business performance this period ……………………………………………………………………
(2) Review of financial position this period ……………………………………………………………………………
(3) Risks to the business etc. …………………………………………
2. Status of the corporate group ……………………………………………………………………………………………
3. Basic approach towards adoption of accounting standards …………………………………………………………
4. Consolidated financial statements & main explanatory notes ………………………………………………………

P5
P5
P7
P8
P12
P14
P15

(1) Consolidated Balance Sheet ………………………………………………………………………………………

P15(2) Consolidated statements of income and consolidated statements of comprehensive income ………………
(Consolidated statements of income) …………………………………………………………………………
(Consolidated comprehensive income statement) …………………………………………………………
(3) Consolidated statements of changes in equity ……………………………………………………………………
(4) Consolidated statements of cash flows …………………………………………………………………………
(5) Explanatory notes regarding consolidated financial statements

P17
P17
P18
P19
P21
P23
(Explanatory notes regarding assumptions about the ongoing concern) ………………………………………………… P23(Basic substantial matters relating to preparing the consolidated financial statements) ……………………
P23(Changes to method of presentation) ……………………………………………………………………………
P25(Consolidated balance sheet) ……………………………………………………………………………………
P25(Consolidated profit and loss statement) …………………………………………………………………………
P25(Consolidated comprehensive income statement) ……………………………………………………………
P29(Consolidated statements of cash flows) …………………………………………………………………………
P30(Business combination etc. related matters)……………………………………………………………………
P32(Segment information etc.) ……………………………………………………………………………………
P33(Per share related information) ……………………………………………………………………………………
P38

－ 4 －

1. Review of business performance etc.
(1) Review of business performance this period① Analysis of business performance
The direction of Japan's economy continued to be unclear during this consolidated period due to changes in politicalconditions overseas, trends in financial policy, and rising geopolitical risk etc. With the government’s economic policies andfinancial policies etc. as a backdrop, on the whole there was a shift to a trend of corporate earnings growth.
The employment situation: a condition close to full employment continued. The 2017 effective ratio of job offers to job
seekers (seasonally adjusted) averaged at a multiple of 1.54 times; the highest recorded level the 44 years since Japan's
period of high economic growth. Furthermore, Japan's annual overall unemployment rate during this period stood at 2.7%;
the first time in 23 years that Japan has experienced full-employment. The basis underlying this type of market environmentis a shortage of workers being pursued by much demand. The HR services related market overall transitioned towards anexpansionary trend. PERSOL Group itself also experienced robust demand for talent from client companies. Businessresults grew steadily; an outcome of the core temporary staffing business experiencing high levels of temp worker
deployments as well as the placement business enjoying substantial growth in the number of successfully placed
candidates.
Based on this type of economic environment, the company changed its trading name to "PERSOL HOLDINGS" in July
2017. In addition, the trading names of major core subsidiaries were sequentially altered by using "PERSOL" as a prefix foreach company name. The "PERSOL" branding is one endeavor to further spread and lift awareness of this Group.
PERSOL Group being an integrated HR services group that encompasses a diverse range of HR solutions: the core
temporary staffing business, placement/recruitment, part-time/casual work hiring support, outsourcing/design anddevelopment in the IT/engineering space, and BPO etc. PERSOL Group as a whole strives to offer solutions that resolve
labor/hiring challenges.
Moreover, with a view to future growth in the HR services market in the Asia Pacific region, PERSOL acquired 100% of
the fully issued shares of Programmed Maintenance Services Limited ("Programmed Ltd") and Programmed Ltd became afully-owned PERSOL subsidiary in October 2017. The largest market in the APAC region (excluding Japan) is Australia,
and with the acquisition of Programmed Ltd shares and its solid business platform, PERSOL becomes the largest HR
services company (by scale) in the APAC region. Together with this development, PERSOL aims to leverage this know-how
in future to further bolster its ability to compete.
On the other hand, efforts are being made to develop some PERSOL subsidiaries in the APAC region under the"PERSOLKELLY" brand. Also, progress is being made in endeavors to utilize the "an" brand to develop the job advertisingbusiness that targets the casual/part time work sector. Progress has not been made as was initially anticipated so andimpairment loss (goodwill) will be booked during this consolidated fiscal year. In future, business strategy will be
re-formulated to align with the business environments in each market. Also, the aim is for moves to be made to optimize theoperational structures of each business so there is a switchover to businesses with a disposition to delivering steadyprofits.
As a result of the above, sales during the consolidated fiscal year under review were JPY 722,183 million (up 22.0%
year-on-year (YOY)), operating profit was JPY 36,068 million (up 8.0% YOY), ordinary profit was JPY 35,108 million (up2.8% YOY), and current net profit attributable to the parent company was JPY 7,769 million (down 56.4% YOY).
② Status of each businessBusiness results by segment (before inter-segment/company write-offs) are as follows:
Reporting segment categories changed from the 1st and the 3rd quarter (Q3) accounting period onwards. The following
year-on-year (YoY) comparisons are made after altering previous year figures in line with the new segment categories.
a. Temporary Staffing/BPO Segment
In the consolidated fiscal year under review, sales in this segment amounted to JPY 481,071 million (up 9.2% year-on-year(YOY)), and operating profit increased to JPY 22,122 million (up 6.6% YOY).
Employment related indicators during this period continued to hover at high levels; a continuation from the previous
consolidated fiscal year, and structural labor shortages were accompanied by high levels of demand. Various types ofsupply-side measures were successfully implementing to address pressing demand challenges. Sales grew to JPY
481,071 million. On the profit side, there was an increase in labor costs together with an expansion in operations. IT
systems investments (core HRIS systems) were made aimed at future growth. PERSOL Group's share of the burden ofsocial insurance costs etc. for temps and employees increased further. However, sales increased greatly, resulting in－ 5 －operating profit of JPY 22,122 million.
b. Recruiting Segment
In the consolidated fiscal year under review, sales in this segment amounted to JPY 72,841 million (up 10.1% year-on-year(YOY)), and operating profit was JPY 10,810 million (up 15.5% YOY).
In the consolidated fiscal year under review, sales expanded substantially as a result of plans made to bolster theheadcount of representatives dedicated to handle bullish demand primarily in the talent placement business. On the profit
side, accompanying the increase in scale and activities of the business was an increase in costs (e.g. labor/promotional)
together with expenditures made to implement structural reforms in the for-hire advertising business. However, this was
exceeded by the growth in sales, and operating profit was JPY 10,810 million.
c. PROGRAMMED Segment
In the consolidated fiscal year under review, sales in this segment amounted to JPY 54,512 million, and operating losses
were JPY 507 million.
This segment followed the acquisition in October 2017 of the integrated HR services, and maintenance businesses
operated in Australia by Programmed Maintenance Services Limited which was newly set-up in the consolidated 3rdquarter accounting period, and the results have been included in the consolidated 4th quarter accounting period. In thiscurrent consolidated accounting period sales centered on the maintenance business where the market has bottomed-out.
Costs that were associated with the acquisition etc. of Programmed Maintenance Services Limited shares led to an
operating loss of JPY 507 million.
d. PERSOLKELLY Segment
Results for this segment in the consolidated fiscal year under review were: sales of JPY 65,774 million (up 77.3% YOY),
and operating losses of JPY 190 million (operating loss in the same period last year was JPY 868 million).
The name of this segment was newly established as the "Overseas Segment" and changed its name to "PERSOLKELLY"
during the consolidated 1st quarter accounting period due to the set-up of the new "PROGRAMMED Segment" during theconsolidated 3rd quarter accounting period.
In the consolidated fiscal year under review, sales grew underpinned by an enlarged scope of the joint venture businessresulting from an expansion of operations coupled with steady demand emanating from its APAC region area of operations.
On the profit side, the focus was to ensure medium-term operational growth, set in place planned regional control functions
and strengthen sales structures which resulted in an operating loss of JPY 190 million.
e. ITO Segment
In the consolidated fiscal year under review, sales in this segment amounted to JPY 28,988 million (up 8.8% YOY), andoperating profit was JPY 2,263 million (up 8.0% YOY).
In the consolidated fiscal year under review, sales grew steadily due to high levels of system development investment
related to client firms and SI related service inquiries as well as THD Group in-house systems development etc. On the
profit side, the increase in costs associated with retention and new hires aimed at improving the deployment of engineers
as well as substantial cost increases associated with expansion in HQ office space/work environment improvements etc.
resulted in operating profit of JPY 2,263 million.
f. Engineering Segment
In the consolidated fiscal year under review, sales in this segment amounted to JPY 27,795 million (up 4.2% YOY), andoperating profit was JPY 2,365 million (up 19.5% YOY).
Sales grew steadily during the consolidated fiscal year under review due to continued strong demand for talent primarily
centered on electronics and automotive industries etc. On the profit side, deployment rates of existing technical talent wereat high levels etc. which resulted in operating profit of JPY 2,365 million.
③ Future Outlook
Currently the Japanese economy has been undergoing an underlying long-term recovery and the bellwether 'job-offers tojob-seekers' ratio indicator continues to remain at an all-time record high. On the other hand, the decline in Japan's
workforce continues to accelerate as the population ages, workforce participation rates of women and senior citizens isincreasing and labor shortages are becoming the norm in Japan's labor market.

－ 6 －The human resources services market

in which the PERSOL Group operates does not just revolve around the demand for talent. Clients are approaching
PERSOL demanding consulting support in utilizing IT as a labor saving measure, and ways to establish new schemes toutilize labor that focus on the medium-term. The Japanese government is promoting "work-style reform" and employment
mobility are boosting market expansion yet on the other hand, the underlying labor shortages and changes to lifestyles etc.
is leading to client companies/end-user needs becoming more diverse/sophisticated as time goes by. HR service
companies are extending and going outside their usual business boundaries, and are being sought after to provide integral
as well as services that generate value-add.
It is within this sort of market environment that PERSOL Group puts its Group Vision ('Creating a social infrastructure forpeople and organizations that catalyzes growth and innovation') into practice. PERSOL HOLDINGS and its core Groupsubsidiaries have updated company names to incorporate the "PERSOL" Group brand as a company name prefix as wellas various types of promotions as a means to enhance awareness of the Group. Also, PERSOL is incorporating the
APAC region into a major future focus by: enhancing its presence in the APAC region, factoring in the active reinforcementof business platforms, expanding business offerings to ensure stable earnings, and by working at enhancing profitability.
Irrespective of whether the business is located in domestic Japan or overseas; PERSOL Group acts in unison to sincerely
tackle the needs of client companies, job-seekers, and end-users. On the other hand, endeavors are being made tostrengthen the Group management team centered on the segment level as a means to continue the optimization ofbusiness operational structures. Furthermore, continual growth is progressing via plans that are afoot to invest in
growth-oriented business structures and activity to enhance branding.
Given the activity outlined above, it is anticipated that results for the consolidated fiscal year ending March 2019 will be:
sales JPY 940,000 million, operating profit JPPY 42,500 million, and ordinary profit JPY 41,500 million, and current net
profit attributable to the parent company of JPY 21,800 million.
(2) Review of financial position this period① Status of assets, liabilities, and net asset
Total assets as at the end of this consolidated fiscal year under review were JPY 403,465 million; an increase of JPY
135,101 million in comparison with the end of the previous consolidated fiscal year. Current assets increased by JPY
70,252 million to JPY 235,492 million. This was mainly due to an increase in cash and deposits of JPY 20,185 million, andan increase in notes and accounts receivable of JPY 36,994 million.
Non-current assets increased by JPY 64,849 million to JPY 167,972 million. This was mainly due to increases in goodwillof JPY 33,552 million, and increases in trademark rights of JPY 6,156 million.
Total liabilities as at the end of this consolidated fiscal year under review were JPY 243,472 million; an increase of JPY
128,925 million in comparison with the end of the previous consolidated fiscal year. Current liabilities increased by JPY
129,193 million, to JPY 217,106 million. This was mainly due to increases in: accounts payable of JPY 19,782 million, andincreases in income taxes payable of JPY 4,176 million.
Non-current liabilities decreased by JPY 268 million to JPY 26,366 million. This was mainly due to decreases inlong-term loans payable of JPY 4,713 million, and increases in deferred tax liabilities of JPY 3,540 million.
Total net assets as at the end of this consolidated fiscal year under review were JPY 159,992 million; an increase of JPY
6,175 million in comparison with the end of the previous consolidated fiscal year. This was mainly due to JPY 4,209 million
in dividends of surplus of taking place, JPY 1,247 million increase of treasury shares, and profit attributable to owners ofparent of JPY 7,769 million was booked.
As a result of the above, the financial indicators showed that compared to the end of the previous consolidated
accounting period the liquidity ration dropped from 188.0% to 108.5%, and that the equity ratio dropped from 51.8% to36.1%.

－ 7 －(FY End Mar 2017)
Return on Assets (ROA)

7.6％(FY End Mar 2018)
2.2％

Return on equity (ROE)

13.4％

5.5％

Ratio of operating income to sales

5.6％

5.0％

Ratio of ordinary profit to sales

5.8％

4.9％

Current ratio

188.0％

108.5％

Fixed assets ratio

74.1％

115.4％

Equity ratio

51.8％

36.1％

Total assets

JPY 268,364 million

JPY 403,465 million

Equity capital

JPY 139,119 million

JPY 145,537 million

Cash & cash equivalents etc. at end of period

JPY 69,382 million

JPY 89,566 million② Cash flow
Cash and cash equivalents (hereinafter "capital") at end of the consolidated fiscal year under review. Liabilities increasedby JPY 20,184 million compared to the end of the previous consolidated accounting period to JPY 89,566 million.
Following is an outline of cash flow status and causal factors arising in the consolidated fiscal year under review.
(Net cash provided by (used in) operating activities)
Capital utilized as a result of financing activities decreased by JPY 4,614 million to JPY 35,003 million compared to theend of the previous consolidated accounting period. This was mainly due to payment of JPY 18,789 million in corporate
taxes, and an increase in notes and accounts receivable (trade) of JPY 10,851 million. On the other hand, net profit before
taxes was JPY 20,578 million, impairment loss was JPY 14,280 million, and goodwill amortization was JPY 7,050 million.
(Cash flows from investing activities)
Capital utilized as a result of investment activities increased by JPY 57,024 million to JPY 66,732 million compared to theend of the previous consolidated accounting period. This was mainly due to spending of JPY 61,818 million on acquisitionof subsidiary company shares and the change of the scope of the consolidation, and spending of JPY 4,350 million on
intangible fixed asset.
(Cash flows from financing activities)
Capital utilized as a result of financing activities increased by JPY 61,842 million to JPY 50,186 million compared to theend of the previous consolidated accounting period. This was mainly due to net change in short-term debt of JPY 69,323
million. On the other hand, dividend payments was JPY 4,209 million, spending of JPY 13,533 million to repay long-term
debts, and outgoings of JPY 1,276 million to acquire own shares.
(3) Risks to the business etc.
The main items that may potentially be sources of risk relating to the operations of PERSOL Group business are noted
below. Also, even those matters that may not necessarily correspond to business risks but is information that is thought tobe significant in relation to investment decisions, or pertaining to understanding of PERSOL Group's business activities will
be published and released from an investor or shareholder viewpoint. Plans are in place to avoid such occurrences, and tohandle incidents when PERSOL Group becomes aware of the potential of such risks arising however, it is believed thatinvestment decisions pertaining to PERSOL HOLDINGS shares require careful consideration of the matters noted below.
Furthermore, future oriented matters appearing within these documents were deemed by PERSOL Group to be current asof the day the Summary of Consolidated Financial Results were released (15 May 2018), and the matters noted below do
not entirely encompass all risks relating to investment in PERSOL HOLDINGS shares.
① Movements within the human resources industry
The human resources business industry which PERSOL Group is affiliated with is influenced by changes to industrial
structures, social conditions, and business fluctuations which in turn affect changes in the employment situation etc.
Demand is currently proving to be strong however, in future, it is possible that various factors may impact the employment－ 8 －situation which in turn leads to a deterioration in the market environment which then may influence the financial condition
and business results of PERSOL Group. The business operations of PERSOL Group may be substantially influenced if due
to a recession there is a decline for new orders, and existing corporate customers scale-back operations/cut costs etc.
leading to a substantial decline in demand for talent. In such circumstances, the number of temp deployment related
temporary 'dispatch' worker ('temps') contracts may suddenly decline, for-hire demand in the placement market may
substantially fall leading to a contraction in the related placement businesses, and for-hire media management businessetc. Potentially having a major impact on the business operations of PERSOL Group. Furthermore, in cases where thespeed of decline in demand exceeds expectations, the ITO and Engineering businesses that utilize regular employees may
experience a sudden increase in costs and sales/general administrative expenses due to reduced number and scale ofoutsourcing contracts.
② Legal regulations & corporate reputation risks
For PERSOL Group it is a matter of course that PERSOL must comply with the laws of those countries and regions
where it engages in business. A Compliance Control Department has been set up to accompany the enlargement of thePERSOL Group business. Compliance related regulations have been established, and ongoing education/training is taking
place. Compliance systems have been created within the Group such as; setting in place an internal whistle-blower system
etc. However, the damage to society's trust in, and brand image of PERSOL Group could be injured, and sales decline etc.
potentially leading to a negative impact on corporate results.
a. Temporary staffing businessTemporary staffing is PERSOL Groups main line of business, where to engage in this business, a worker dispatch permit
is obtained in accordance with Japan's "Act for Securing the Proper Operation of Worker Dispatching Undertakings andImproved Working Conditions for Dispatched Workers" (hereinafter "Japan's temp worker Act").
PERSOL Group's understanding is that based on Japan's temp worker Act, there are no material facts that would giverise to revoking PERSOL's worker dispatch permits at this current point in time. However, if in future due to some sort ofreason or other one of the PERSOL Group companies, or a PERSOL officer/employee contravene Japan's temp worker
Act, it is assumed that PERSOL Group's principal business activity may potentially be disrupted in general which in turn
could potentially have a major impact on the financial situation and business results of PERSOL Group.
Furthermore, in response to changes in Japan's working environment to date, apt amendments are taking place inrespect to Japan's temp worker Act and various related laws such as: revisions and changes etc. to regulations relating totasks that temps are permitted to perform, and length of temp worker deployment periods etc. PERSOL Group for its part,is adopting a range of measures to address such amendments to various laws whenever they occur. In future, in cases
where further amendments take place that lead to major operational changes arising, the future business strategy of
PERSOL Group along with business results may potentially be affected to no small extent.
b. Job placement business
PERSOL Group job-placement businesses have received permits to engage in the for-fee employment placementbusiness in accordance with Japan's Employment Security Act.
Japan's Employment Security Act stipulates that when individuals engaged in placement activity (which includes
officers/employees in the case of entities) are by virtue of being placement business operators are subject todisqualification or have permits revoked, the permit to engage in the business itself is canceled, and in addition, for a
stipulated period of time the business can in effect be ordered to halt operations in full or in part.
if in future due tosome sort of reason or other one of the PERSOL Group companies, or a PERSOL officer/employee contravene Japan's
Employment Security Act, it is assumed that PERSOL Group's principal business activity may potentially be disrupted ingeneral which in turn could potentially have a major impact on the financial situation and business results of PERSOLGroup.
③ Impact on business results related to alterations to the social insurance system
Social insurance rates/calculation methods are subject to change due to various conditions and external factors.

Socialinsurance system changes relating to rates/calculation method will take place in future for those PERSOL Group
employees as well as temp workers who are enrolled in the system. Substantial change in the social insurance provider
ratio of burden, and the social insurance provider monetary amount of burden could potentially have a major impact on thefinancial situation and business results of PERSOL Group.

－ 9 －④ Risks associated with expansion of the overseas business
PERSOL Group is endeavoring to enlarge its business in overseas markets by primarily focusing on markets the Asia
Pacific (APAC) region. To this end, in October 2017 shares of Capita. Pte. Ltd., and First Alliances Co., Ltd., then a joint
venture was established with Kelly Services Inc. in 2017, and then in October 2017 the shares of Programmed
Maintenance Services Limited were acquired. PERSOL Group has rapidly expanded its business in the APAC region.
Expansion of the business overseas has been accompanied by moves to strengthen support structures and management
control functions. However, due to sudden changes in political/social situations in each country, amendments to laws,
unanticipated foreign currency fluctuations etc., and significant swings in business environments etc., in some cases it has
not been possible to solidly entrench competitive advantage in the APAC region. As such, there have been instances thathave had a negative impact on PERSOL Group business results.
⑤ Foreign currency fluctuation risks
Overseas transactions of PERSOL Group are in the first instance mainly in Australian dollar (AUD) based forex rates. In
the PERSOL Group consolidated financial statements, and quarterly consolidated financial statements, the assets andliabilities of overseas subsidiaries are in local currency units and foreign currency rates on the day of the tabulation areused in calculations. Accordingly, income and expenses use Japanese yen (JPY) rates that are calculated by using an
average exchange rate during each consolidated accounting period. For these reasons, PERSOL Group is exposed to
exchange rate fluctuation risk which potentially may have a negative impact on PERSOL Group business results.
⑥

Technological innovation related risks
Operation of many businesses in PERSOL Group involve providing online services that use internet media to solicit

candidates/introduce job opportunities to registered candidates of the temp business and placement business, and forlisting of for-hire job opportunities with the media operations businesses. Technical innovation in the internet market isremarkable. Changes to specifications associated with development of new services and new technologies constantly arise,and so-called "industry standard" services evolve from day to day. PERSOL Group's challenge in relation to corporateclients as well as job-seekers is to achieve a balance between serving a purpose safely/securely for each business while
also delivering superior "usability" while endeavoring to provide technical solutions that are both timely, and replete withnew functionalities. That said, implementation of upgrades and new technologies can involve incurring substantial amountsof expense. Also, in some cases for some reason or other it can prove difficult to secure the quality of service that was
initially conceived and there have been cases where expected benefits of a roll-out have not been obtained etc. As such,there may be instances that potentially have a negative impact on the PERSOL Group financial situation and businessresults.
⑦ New business development risks
Based on the Medium-term Management Plan, there is a desire for PERSOL Group strategy to being linked, so thatthought is given to corporate acquisitions and the establishment of new companies etc. Based on these and related policies,PERSOL Group operates 177 consolidated subsidiaries and 10 affiliated companies (besides PERSOL HOLDINGS Co.
Ltd.) as at 31 March 2018.
a. Progress with new businesses etc.
Establishment of new companies related to the development of new businesses, and enlarging the boundaries of service
offerings can require incurring substantial amounts of expense. Besides this, due to changes to and the competitive natureof the market environment and labor markets, it is not always the case that revenues can be guaranteed to trend asconceived in initial plans, it is possible that the assumed scale of earnings may not be secured. Depending on movementsin the market environment, growth rates for each company and each business sector, the situation of trends in businessresults etc. there may be cases that deviate substantially from initially assumed revenue projections. As such, this may
affect PERSOL Group business development and business results.
b. Corporate acquisitions, business alliances
Detailed due diligence is performed on contractual arrangements and financial details etc. of those corporations that are
targeted for corporate acquisition, and business alliances. Endeavors are made to mitigate risk however, depending on
limitations surrounding the nature and timing etc. of the opportunity, there may be cases where sufficient due diligencecannot be performed, and incidental liabilities arise, or unknown obligations come to light after the acquisition takes place.

－ 10 －

c. Fund raising
The aim to implement new business developments, corporate acquisitions, and business alliances in a timely manner.
PERSOL Group is moving towards efficiency of fund management by implementing cash management systems at
consolidated subsidiaries. Besides this, provision of funds for individual borrowings is taking place to meet the scale ofdemand for funds. In future, there may be situations where fund raising may not be possible as required to expand thescale of the business due to changes in financial circumstances (financial system instability, loss of credit, and liquidity
constrictions etc.) potentially impact the financial situation of PERSOL Group.
⑧ "Goodwill" in relation to share acquisitions
PERSOL Group booked a substantial amount of "Goodwill" in relation to acquiring the shares of: Intelligence Holdings,
Ltd. (Present: PERSOL CAREER CO., LTD. ), Excel Staff Ltd. (Present: PERSOL Panasonic HR Partners), andProgrammed Maintenance Services Limited. It was decided that each exhibited brand power and a computability with theGroup which would potentially create extremely beneficial synergies. However, subsequently the business environmentand situations of these businesses changed significantly. Furthermore, for some reason or other there were cases wherebusiness results did not proceed as anticipated. Impairment loss accounting was applied to these assets and losses werethe upshot which may potentially impact the business results of PERSOL Group.
⑨ Risks related to the handling of personal information and confidential information
Each company in PERSOL Group holds large volumes of personal information and confidential information ofjob-seekers, corporate clients, employees etc. and other related individuals that is used in business operations.
PERSOL Group has stipulated regulations relating to the handling of personal information and confidential information. A
department has been set up to ensure the thorough control of information, and training etc. about information control takes
place regularly. PERSOL Group is endeavoring to establish/maintain structures that appropriately control information. In
spite of this, if personal information and confidential information leaks and misuse occur in PERSOL Group, social trust is
lost in the Group and claims for damages etc. can arise which may have a substantial impact on the Group's business
operations as well as potentially having an impact on the Group's financial situation and business results.
⑩ Impact of major disasters & system outages etc.
PERSOL Group recognizes that natural disasters (earthquakes, typhoons, floods etc.) may potentially occur, and as far
as possible endeavors to prepare for and mitigate the effects of disasters. Furthermore, when disasters do occur, swift andappropriate handling is intended however, cases of disasters occurring of a magnitude that exceeds expectations may
have an impact on the Group's business operations, financial situation and business results. Furthermore, as part of thequalitative nature of the provision of human resources services, it is conceivable that there may be a substantial burden oftasks for clients to perform when disasters occur such as confirming the safety at client corporations and safety of
employees, as well as reorganizing contract arrangements etc. which may potentially have an impact on the Group'sbusiness operations as well as financial situation and business results.
Numerous computer systems and networks exist amongst PERSOL Group businesses. For that reason, various
measures have been put in place as a contingency: systems have been set up in case of disasters (systems security
strengthened, hardware augmented etc.). However, in spite of such measures, if human error or major natural disasters etc.
lead to issues arising with computer systems and network facilities etc. such situations may cause direct damage tobusiness operations in regions affected by such events. In addition, it is possible that damage may occur to PERSOLGroup business operations in other regions. In addition, if this continues for long periods, the provision of labor to client
corporations may in fact become impossible leading to a decline in trust of the services provided by PERSOL Group etc.,
and may potentially have a substantial impact on the Group.

－ 11 －

2. Status of the corporate group
PERSOL Group's (this company and associates) main business is comprehensive human resource services which
involves providing various HR-related business services. Setting a Group Vision to "create a social infrastructure for people
and organizations that catalyzes growth and innovation," PERSOL aspires to provide working people with settings for
growth, and wide-ranging services that contribute to the growth of organizations. PERSOL also aims to achieveGroup-wide business growth by building a management that adapts to the times and meets changing user needs throughsegment changes, functional enhancements, and coordinating Group-wide control functions.
Based on these and related policies, PERSOL Group operated 177 consolidated subsidiaries and 10 affiliatedcompanies (besides PERSOL HOLDINGS Co. Ltd.) as at 31 March 2018. Together with the acquisition of shares in
Programmed Maintenance Services Limited on 27 October 2017, the "PROGRAMMED" segment was established anew inthe 3rd quarter consolidated accounting period, and the name of the former "Overseas" segment was changed to the"PERSOLKELLY" segment.
The following is an organizational chart based on the main segments.

－ 12 －

As of 31 March 2018
(Business Structure Diagram)

Provision of job information
Users

Registrations, hiring etc.

Temporary
Staffing/BPO
Segment

Recruiting
Segment/ Management by Functionality

PERSOL HOLDINGSManagement Policy Formulation

PROGRAMMED
Segment Temporary staffing services:(Expand "Tempstaff") Operation of BPO projects: admin
processing centers, call centers,
childcare-related facilities etc.

PERSOL TEMPSTAFF CO., LTD.
PANASONIC EXCEL STAFF CO., LTD. etc.

 Placement/for-hire advert services:develop outplacement services("DODA"), casual/part-time job offer
information services("an" and "LINE Baito").
 Outplacement support business

PERSOL CAREER CO., LTD.
TEMPSTAFF CAREER CONSULTING CO., LTD.
etc.

 Integrated HR services focusing onAustralia
 Management of facilities:
commercial/educational facilities,
painting/site maintenance, mining
facilities maintenance services

Programmed Maintenance Services Limited etc.

*1*2Provide:PERSOLKELLY
Segment

 Integrated HR services in the
Asia-Pacific Region(Expand “PERSOLKELLY”)

for-hire adverts
Kelly Service (Singapore) Pte,Ltd etc.

through to:
candidate sourcing,hiring,(Expand "PERSOLKELLY")

HR back-office support

ITO Segment

Engineering
Segment

SI services from consulting through todevelopment/maintenance etc., andoutsourcing services

PERSOL PROCESS & TECHNOLOGY CO., LTD.
PERSOL PROCESS & TECHNOLOGYVIETNAM CO.,LTD.

Talent related services for: vehicle
design development/testing sectors,
digital AV devices/softwaredevelopment sectors

PERSOL R&D CO., LTD
AVC Technology Co., Ltd. etc.

Talent related services for different organizations
within the entire Group, education/training,
hiring/job hunting support etc. for physicallychallenged candidates*3

PERSOL RESEARCH & CONSULTING CO., LTD.
PERSOL CHALLENGE CO., LTD. etc.

Signing outsourcing contracts
Temp/Placement talent resources
Placing advertisements
Signing temp labor contracts etc.

ClientCompanies※1. Company name was changed to PERSOL Panasonic HR Partners Ltd. with effect 1 April 2018.
※2. Company name was changed to PERSOL CAREER Ltd. with effect 1 April 2018.
※3. Company name was changed to PERSOL AVC Technologies Ltd. with effect 1 April 2018.

－ 13 －

3. Basic approach towards adoption of accounting standards
This Group's policy for the time being is to create consolidated financial statements in accordance with Japanesestandards being mindful of the ability to compare periods and compare companies.
In the future, our policy is to consider the application of international accounting standards according to shifts in the ratioof foreign shareholders and trends by domestic competitors to apply international accounting standards.

－ 14 －

4. Consolidated financial statements & main explanatory notes(1) Consolidated Balance Sheet(Unit: JPY millions)
Previous consolidated fiscal year (March (Consolidated fiscal year under review)
31, 2017)(March 31, 2018)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Deferred tax assets
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Accumulated impairment loss
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Accumulated impairment loss
Tools, furniture and fixtures, net
Land
Other
Accumulated depreciation
Accumulated impairment loss
Other, net
Tangible fixed assets total
Intangible assets
Trademark rights
Goodwill
Other
Intangible assets total
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Investments and other assets total
Non-current assets total
Total Assets－ 15 －

69,43983,260
4,597
677
7,885
△619
165,240

89,624120,254
4,940
8,049
13,251△627
235,492※１ 6,206※１ 7,332△3,880△94△4,006
△89

2,231
5,112
△3,835
△13
1,263
803
1,376
△802
△33

3,237
5,411
△4,152
△24
1,234
802
3,794
△1,061
△14

541
4,840

2,718
7,993

4,995
68,561
9,310
82,867

11,152102,113
20,629133,894※２ 7,782※２ 12,542

1,371
6,313
△51
15,415
103,123
268,364825
12,732△16
26,084
167,972
403,465

(Unit: JPY millions)
Previous consolidated fiscal year (March (Consolidated fiscal year under review)
31, 2017)(March 31, 2018)

Liabilities
Current liabilities
Accounts payable – trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for directors' bonuses
Provisions – other
Other
Total current liabilities
Non-current liabilities
Convertible bonds with subscription rights to shares
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Provision for share benefits
Provision for Directors' share benefits
Provisions – other
Other
Non-current liabilities total
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－ 16 －

1,490
413
4,640
47,627
8,315
9,619
9,063
173
－
6,569
87,913

1,597
85,2884,640
67,4098,905
13,7969,931
6736
24,793
217,10631
20,426
2,793
1,093
－
－
－
2,289
26,634
114,547－
15,713
6,333
1,174
126
115
268
2,634
26,366
243,472

17,465
20,156
102,432△3,328
136,725

17,467
20,182
105,993△4,576
139,066

2,203
190
2,394
14,696
153,816
268,364

3,179
3,291
6,470
14,455
159,992
403,465

(2) Consolidated statements of income and consolidated statements of comprehensive income(Consolidated statements of income)(Unit: JPY millions)
Previous fiscal year
(From April 1, 2016
to Mar 31, 2017)

Sales
Cost of sales
Gross profit on sales
Selling, general and administrative expenses (SGA)
Operating profit
Non-operating income
Interest income
Dividends income
Subsidy income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission fee
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of subsidiaries and affiliates’ stocks
Gain on sales of investment securities
Gain on revision of retirement benefit plan
Reversal of long-term accounts payable for directors'
retirement benefits
Compensation income
Extraordinary income total
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on sales of subsidiaries and affiliates’ stocks
Loss on valuation of investment securities
Loss on sale of investment securities
Early extra retirement payments
Loss on revision of retirement benefit plan
Total extraordinary losses
Profit before income taxes
Corporate tax, resident tax, and business tax
Corporate tax etc.-deferred
Total corporate taxes etc.
Net profit
Profit attributable to non-controlling interests
Profit attributable to owners of parent－ 17 －(Consolidated fiscal year under review)(From April 1, 2017
to Mar 31, 2018)591,995
449,188
142,806※１ 109,397
33,409722,183
554,745
167,438※１ 131,369
36,068

31
101
361

58
134
701

21

13

22
416
955

－
120
1,028

154
－
17
56
229
34,136

356
1,523
4
104
1,988
35,108

※２ 0

※２ 35

2
－
187

2
65
－

553

－

318
1,062

－
103

※３ 0

※３ 1

※４ 4,760※４ 14,280－－
1※５ 236－
4,998
30,20012,548△1,42911,11919,0801,260
17,820

23
49
－
※５ 17
261
14,633
20,578
14,104△951
13,152
7,425
△343
7,769

(Consolidated comprehensive income statement)(Unit: JPY millions)
Previous fiscal year
(From April 1, 2016
to Mar 31, 2017)

Net profit
Other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
Retirement benefit adjustment funds
Equity interest in affiliated companies accounted forby the equity-method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests－ 18 －(Consolidated fiscal year under review)(From April 1, 2017
to Mar 31, 2018)19,080

7,425

257
17
194

975
3,402
－

－

△7

※ 469
19,550※ 4,370

17,898

11,845

1,651△49

11,796

(3) Consolidated statements of changes in equity
Previous consolidated accounting period (from April 1, 2016 to March 31, 2017)(Unit: JPY millions)Shareholders' equity
Capital stock

Balance at beginning of current
periodCapital surplus

17,055

20,520410

410

Retained earnings

Total shareholders'equityTreasury shares

88,134△327

125,382

Changes of items during period
Issuance of new shares

820

Dividends of surplus△3,522△3,522

Profit attributable to owners ofparent17,82017,820Acquisition of treasury shares△3,001△3,001

Disposal of treasury stock
Change in ownership interest ofparent due to transactions with
non-controlling interests

△774

△774

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of period

410

△364

14,298△3,001

11,342

17,465

20,156

102,432△3,328

136,725

Accumulated other comprehensive income
Valuationdifference onmarketablesecurities

Balance at beginning of current
periodForeign currencytranslation
adjustment

1,945

Total of other
Reassessment ofaccumulated
defined benefit
comprehensive
plansincome

72

△194

1,823

Non-controllinginterests

Total net assets

6,295

133,501

Changes of items during period
Issuance of new shares

820

Dividends of surplus△3,522

Profit attributable to owners ofparent17,820Acquisition of treasury shares△3,001

Disposal of treasury stock
Change in ownership interest ofparent due to transactions with
non-controlling interests△774

Net changes of items other thanshareholders' equity

258

118

194

571

8,401

8,972

Total changes of items during
period

258

118

194

571

8,401

20,315

2,203

190

－

2,394

14,696

153,816

Balance at end of period－ 19 －

Current Consolidated fiscal year ended (from April 1, 2017 to March 31, 2018)(Unit: JPY millions)Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

17,465

20,1562

2

Total shareholders'equityTreasury shares

102,432△3,328

136,725

Changes of items during period
New share issues

4

Dividends of surplus
Profit attributable to owners ofparent△4,209△4,209

7,769

7,769

Acquisition of treasury shares
Disposal of treasury stock

24

Change in ownership interest ofparent due to transactions with
non-controlling interests△0△1,276△1,27629

54△0

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of period

2

26

3,560

△1,2472,341

17,467

20,182

105,993△4,576

139,066

Accumulated other comprehensive income
Valuationdifference onmarketablesecurities

Balance at beginning of current
periodForeign currencytranslation
adjustment

2,203

Total of other
Reassessment ofaccumulated
defined benefit
comprehensive
plansincome

190

－

2,394

Non-controllinginterests

Total net assets

14,696

153,816

Changes of items during period
New shares issues

4

Dividends of surplus△4,209Profit attributable to owners ofparent7,769

Acquisition of treasury shares△1,276

Disposal of treasury stock

54

Change in ownership interest ofparent due to transactions with
non-controlling interests△0

Net changes of items other thanshareholders' equity

975

3,100

4,076

△241

3,834

Total changes of items during
period

975

3,100

4,076

△241

6,175

3,179

3,291

6,470

14,455

159,992

Balance at end of period－ 20 －－

(4) Consolidated statements of cash flows(Unit: JPY millions)
Previous fiscal year
(From April 1, 2016
to Mar 31, 2017)

Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other liabilities
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodForeign exchange losses
Loss (gain) on sales of shares of subsidiaries and associates
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets
Compensation income
Subsidy income
Decrease (increase) in notes and accounts receivable – trade
Increase (decrease) in operating debt
Increase (decrease) in accrued consumption taxes
Increase (decrease) in long-term accounts payable – other
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Subtotal
Proceeds from compensation
Interest and dividend income received
Interest expenses paid
Proceeds from subsidy income
Proceeds from subsidy income
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities－ 21 －(Consolidated fiscal year under review)(From April 1, 2017
to Mar 31, 2018)30,200
3,988
4,760
6,035
△1,576
－
－
569
34
82
－
△132
154

20,578
4,907
14,280
7,050
98
126
115
782
△166
△47
△110
△192
356

△21

△13

－
△0
△1
－
0
△64
△361
△7,017
13,371
1,375△820△1,269135
49,441
64
141
△155
－
361
△11,576
1,340
39,617△1,158
21
△65
49
△33
－
△701
△10,851
10,755
3,404
△747
3,758
△535
51,660
－
205
△456
40
701
△18,789
1,641
35,003

(Unit: JPY millions)
Previous fiscal year
(From April 1, 2016
to Mar 31, 2017)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Proceeds from sales of associates
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from sales of shares of subsidiaries resulting
in change in scope of consolidation
Payments for transfer of business
Proceeds from transfer of business
Payments of loans receivableCollection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Foreign currency contract settlement net income andexpenditure
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from sales of of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents etc. at end of period－ 22 －(Consolidated fiscal year under review)(From April 1, 2017
to Mar 31, 2018)△131△1,2853△5,640
6
－
△201
1

△0
6
△1,949148△4,3506
29△1,28880※２ △2,518※２ △61,818

15

131

△43
－
△19
46
△574
379

△78
909
△3
779
△939
348

－

1,158

93
△9,708

96△66,732△297△4,640△3,001－△3,522△118

69,323△13,533△1,27649△4,209
△128

△53

△0

△22
△11,655

50,186△10

1,727

18,243
51,138※１ 69,382

20,184
69,382※１ 89,566△38

(5) Explanatory notes regarding consolidated financial statements(Explanatory notes regarding assumptions about the ongoing concern:)
No applicable matters.
(Basic substantial matters relating to preparing the consolidated financial statements)
Matters relating to scope of consolidation
a. Change in scope of consolidation:
Together with share acquisition, Programmed Maintenance Services Limited and its 89 subsidiaries have been included
within the scope of consolidation.
b. No. of consolidated subsidiaries after changes:
177 companies(Additional information)
1. Share-based remuneration scheme (BIP Trust ①) for PHD Directors and Executive Officers.
Based on a resolution passed at the Annual General Meeting of Shareholders convened in June 2017, PHD has
introduced from August 2017 a performance-linked share remuneration scheme (hereinafter, "this scheme") by utilizing atrust for PHD Directors (except Directors who are Audit etc. Committee members, and External Directors) and for PHD
Executive Officers (hereinafter, "Directors etc.") for the purpose of providing an incentive to raise PERSOL Group's midand long-term corporate results and corporate value.
(1) Outline of this scheme
This Director etc. remuneration scheme will employ a scheme called a Board Incentive Plan (BIP) Trust ("BIP Trust").
The scheme allocates and provides (“Allocates etc.”) Directors etc. depending on executive rank, and degree to which
corporate plan budgets are achieved with PERSOL HOLDINGS shares and PERSOL HOLDINGS shares convertible into
cash at separation. This BIP Trust system is identical to US/European schemes of corporate performance linked sharecompensation (Performance Shares) and compensation by shares with restrictions on transfer (Restricted Shares). As
mentioned later, PERSOL HOLDINGS has introduced a BIP trust arrangement to allocate shares to Directors of Groupsubsidiaries. However, trusts will be managed separately: PERSOL HOLDINGS Directors will be eligible for BIP Trust
system ① whereas BIP Trust ② will be used for Directors of Group subsidiary companies.
(2) Treasury shares held in trust
PHD shares held in trust will be recorded as treasury shares in the net asset section according to the trust book value(except the cost for ancillary expenses). The book value of the treasury shares and number of shares held in BIP Trust ①
at the end of the current consolidated accounting period was JPY 647 million consisting of 300,072 shares.
2. Share allocation scheme (BIP Trust ② and ESOP Trust) for Directors of PHD Group subsidiaries and executives of PHD
and PHD Group subsidiaries
From August 2017, PHD implemented a scheme of allocating PHD shares through a trust (hereinafter, "this scheme") to
Directors of PHD Group subsidiaries and executives of PHD and PHD Group subsidiaries (hereinafter, "GroupManagement etc.") aimed to provide incentives to raise this Group's mid- and long-term business results and corporate
value.
(1) Outline of this scheme
For individuals who are part of the Group Management etc. cohort, this scheme applies to Directors of PHD Groupsubsidiaries and utilizes a scheme called a BIP Trust, similar to that mentioned in point 1. This arrangement (which applies
to executives of PHD, and PERSOL Group subsidiaries) adopts a scheme called the Employee Stock Ownership Plan
(hereinafter, "ESOP Trust"). In both these schemes, PHD shares and PHD shares converted into cash (hereinafter, “PHDshares etc.") shall in principle be allocated to Group Management etc. after separation/retirement.

－ 23 －

(2) Treasury shares held in trust
PHD shares held in trust will be recorded as treasury stock in the net asset section according to the trust book value(except the cost for ancillary expenses). At the end of the current consolidated accounting period, the book value of thetreasury shares and number of shares held in BIP Trust ② was JPY 150 million consisting of 69,838 shares, and the ESOP
Trust was JPY 473 million consisting of 219,661 shares.

－ 24 －

(Changes to method of presentation)
Consolidated Balance Sheet"Work in Process" which had until the previous consolidated accounting period been included in the "Other" section
under "Current Assets" will from the current consolidated accounting period be shown as an independent item. We arerevising the consolidated financial statement of the previous consolidated accounting period to reflect these changes inpresentation method.
Consequently, the JPY 8,562 million included in the "Other" section under "Current Assets" in the consolidated balance
sheet of the previous consolidated accounting period will be revised as JPY 677 million in "Work in Process" and JPY 7,885
million in "Other.""Guarantee Deposits" which had until the previous consolidated accounting period been independently shown under"Investments and Other Assets" from the current consolidated accounting period will be recorded in the "Other" section
under "Investments and Other Assets" as it has decreased in financial importance. We are revising the consolidated
financial statement of the previous consolidated accounting period to reflect these changes in presentation method.
Consequently, the "Guarantee Deposits" JPY 5,765 million independently shown in "Investments and Other Assets" inthe consolidated balance sheet of the previous consolidated accounting period will included in "Other" in the "Investments
and Other Assets" section.
"Long-term Accounts Payable" which had until the previous consolidated accounting period been independently shown
under "Non-Current Liabilities" from the current consolidated accounting period will be recorded under "Other" in the"Long-term Accounts Payable" section as it has decreased in financial importance. The consolidated financial statement of
the previous consolidated accounting period are being revised to reflect these changes in presentation method.
Consequently, the "Long-term Accounts Payable" JPY 2,197 million independently presented under "Non-Current
Liabilities" in the consolidated balance sheet of the previous consolidated accounting period is reorganized as "Other" inthe "Investments and Non-Current Liabilities" section.
(Consolidated Balance Sheet)※１ Advanced depreciation amounts
Direct reductions to acquisition prices of tangible fixed assets due to receipt of federal government subsidies are as
follows:

Buildings and structures

Previous consolidated fiscal year (March
31, 2017)

Consolidated fiscal year under review(31 March 2018)

JPY 131 million

JPY 172 million※ Related company matters occurring amongst investment securities are as follows:

Investment securities
3.

Previous consolidated fiscal year (March
31, 2017)

Consolidated fiscal year under review(31 March 2018)

JPY 661 million

JPY 2,811 million

Guarantee liabilities

Loan guarantees & security pledges relating to borrowings from financial institutions pertaining to companies other thanconsolidated companies.
Loan guarantees
Previous consolidated fiscal year (March
31, 2017)

Consolidated fiscal year under review(31 March 2018)

JPY 5 million－

Tempstaff Life Advisory Co., Ltd.

(Consolidated profit and loss statement)※１ Main cost items & amounts amongst Selling, general and administrative expenses (SGA) are as follows:

Employee salaries, allowances, andbonuses.

Previous consolidated fiscal year (FromConsolidated fiscal year under review

April 1, 2016 to Mar 31, 2017)(From April 1, 2017 to Mar 31, 2018)

JPY 46,356 million

JPY 56,162 million

4,740

5,291

Provision of reserve for bonuses－ 25 －

Provision of reserve for directors' bonuses
Provision of reserve for share allocations
Provision of reserve for directors' shareallocations
Retirement benefit expenses
Rents

174
－

6
128

－

117

816

874

8,155

9,371

※ 2: Breakdown of Gain on sales of non-current assets is as follows:
Previous consolidated fiscal year (FromConsolidated fiscal year under review

April 1, 2016 to Mar 31, 2017)(From April 1, 2017 to Mar 31, 2018)

Tools, furniture and fixtures
Other
Total amount－ 26 －

JPY 0 million－

JPY 0 million
35

0

35

※ 3: Breakdown of Loss on disposal of non-current assets is as follows:
Previous consolidated fiscal year (FromConsolidated fiscal year under review

April 1, 2016 to Mar 31, 2017)(From April 1, 2017 to Mar 31, 2018)

Buildings and structures

JPY - million

JPY 1 million

Tools, furniture and fixtures

0

0

Other

0

-

0

1

Total amount※４ Impairment loss

Previous consolidated accounting period (from April 1, 2016 to March 31, 2017)
The following asset groups of PERSOL GROUP booked Impairment losses in the current consolidated accounting
period:PurposePlace:

Impairment loss

Type

(JPY million)

Engineering related temporary staffing of―Trademark rights―

Trademark rights―

Trademark rights――

Goodwill

Other (3 items)――

consolidated subsidiary Intelligence Ltd.
(Now: PERSOLCAREER LTD.) .

280

Operational assets of consolidated subsidiaryIntelligence Ltd.
(Now: PERSOLCAREER LTD.)

3,427

Operational assets of consolidated subsidiaryIntelligence Business Solutions Ltd.
(Now: PERSOL Process & Technology Co., Ltd.)

854

141
56

PERSOL Group's method of grouping assets involves grouping operational assets into management accounting
categories, and idle assets are grouped according to individual assets.
At a PERSOL Management Committee meeting held on 2 September 2016, a resolution was passed for anabsorption-type company split of the engineer temporary staffing business of consolidated subsidiary Intelligence, Co., Ltd.
into consolidated subsidiary Tempstaff Technology Co., Ltd. (currently PERSOL TECHNOLOGY STAFF CO., LTD.) on
January 1, 2017. To maximize future business synergies, trademarks applied to the engineer temporary staffing sector will
be reduced in value because the "Intelligence" trademark will no longer be used in PERSOL's engineer temporary staffing
sector, and these value reductions will be booked as impairment losses. The recoverable value from these asset groups
are measured according to use value, and as future use is not expected, recoverable value is deemed to be zero.
A resolution was passed at the PHD Board of Directors Meeting (BOD) convened on 13 February 2017 to change thetrading names of consolidated subsidiaries Intelligence Co., Ltd., and Intelligence Business Solutions Co., Ltd. into
PERSOL Career Co., Ltd. and PERSOL Process & Technology Co., Ltd. in a move toward achieving unified Groupmanagement as a new Group brand "PERSOL" and to secure greater recognition of the "PERSOL" brand. As the"Intelligence" trademark will no longer be used, from 1 July 2017, the book value will be reduced to the recoverable value,
and this reduction will be recorded as an impairment loss. The recoverable value from these asset groups are measured
according to use value, and as future use is not expected, recoverable value is deemed to be zero.
Furthermore, the goodwill of consolidated subsidiary Medicross Co., Ltd. was booked at the time the shares wereacquired however, due to a decline in profitability, the book value has been reduced to a recoverable amount. The
recoverable value from these asset groups are measured according to use value, and cash flow will be negative in the
future, recoverable value is deemed zero.

－ 27 －

Current Consolidated fiscal year ended (from April 1, 2017 to March 31, 2018)
The following asset groups of PERSOL GROUP booked Impairment losses in the current fiscal year period:
PurposePlace:

Type

Impairment loss
(JPY million)―

Singapore etc.

Goodwill (Note 1)

5,653

―

―

Goodwill (Note 2)

6,852

Investment for Consolidated
Subsidiary PERSOL CAREER―

Trademark rights (Note 2)754

CO., LTD. business purposes.
Investment for Consolidated
Subsidiary PERSOL CAREER
CO., LTD. business purposes.
Other

Minato Tokyo―

Software in progress (Note 2)

1,012

―

7

PERSOL Group's method of grouping assets involves grouping operational assets into management accounting
categories, and idle assets are grouped according to individual assets.
(Note 1) PERSOL HOLDINGS booked goodwill at time of acquiring shares of consolidated subsidiaries: Capita Pte. Ltd.,First Alliances Co., Ltd., Kelly Services (Singapore) Pte. Ltd., and Kelly Services (India) Pvt. Ltd. However, anticipatedprofits can no longer be expected, so the book value has been reduced to the recoverable value, and this reduction has
been booked as an impairment loss. The recoverable value from these asset groups are measured according to use value,and future cash flow has been discounted by 8.69～14.07%.
(Note 2) Non-current assets for consolidated subsidiary PERSOL Career Co., Ltd.'s part-time business: anticipated profits
can no longer be expected, so the book value has been reduced to the recoverable value, and this reduction has been
booked as an impairment loss. The recoverable value from these asset groups are measured according to use value.
Future cash flow can no longer be expected, so recoverable value is deemed to be zero.
※5: Early extra retirement payments
This is a premium severance pay component associated with early retirements at some companies in the Recruiting
Segment.

－ 28 －

(Consolidated comprehensive income statement)※ Other comprehensive income related conversion adjustment amounts and tax effect amounts:※ Previous consolidated fiscal year Consolidated fiscal year under review(From April 1, 2016 to Mar 31, 2017)(From April 1, 2017 to Mar 31, 2018)

Valuation difference on marketable securities
Amounts arising in current period
Adjustment amountJPY 339 million－

JPY 1,383 million－

Prior to tax adjustment
Tax adjustment effect

339
△81

1,383
△407

Valuation difference on marketable securities

257

975

Deferred hedge loss/gain:
Amounts arising in current period－

Adjustment amount
Adjustment to cost of acquired assets

－
－

300
－
△300

Prior to tax adjustment
Tax adjustment effect

－
－

－
－

Deferred hedge loss/gain:－－

Adjustment amount

25
△8

3,412
△10

Prior to tax adjustment
Tax adjustment effect

17
－

3,402
－

Foreign currency translation adjustment

17

3,402

Reassessment of defined benefit plans, net of tax
Amounts arising in current period－－

Adjustment amount－－Prior to tax adjustment
Tax adjustment effect

280
△85

－
－

Reassessment of defined benefit plans, net of tax

194－

Foreign currency translation adjustment
Amounts arising in current period－

Equity interest in affiliated companies accounted forby the equity-method
Amounts arising in current period－

Adjustment amount－－

Equity interest in affiliated companies accounted forby the equity-method－△7

Total of other comprehensive income

469

4,370

－ 29 －△7

(Consolidated statements of cash flows)※ Relationship between Cash & cash equivalents at end of period, and amounts of items posted on the consolidatedbalance sheet.
Previous consolidated accounting period

Consolidated fiscal year under review(From April 1, 2016 to Mar 31, 2017)(From April 1, 2017 to Mar 31, 2018)

Cash and deposits
Term deposits with deposit periods in excess

69,439 JPY Millionof 3 months.
Cash and cash equivalents－ 30 －

89,624 JPY Million

△57

△58

69,382

89,566

※ 2:

Breakdown of main assets & liabilities of new consolidated subsidiaries arising due to acquisition of shares.

Breakdown of assets & liabilities at the time the consolidation commenced following a new consolidated subsidiaryarising due to acquisition of shares. Also, price of the shares that were acquired, and revenue & outgoings related to theshare acquisition are as follows:
Previous consolidated accounting period (from April 1, 2016 to March 31, 2017)
Kelly Services (Singapore) Pte. Ltd. and subsidiaries (16 companies)(JPY million)

Current assets

10,673

Non-current assets

365

Goodwill

4,621△4,536

Current liabilities△312

Non-current liabilities
Non-controlling interests△3,033

Share Acquisition Method

7,777

Cash and cash equivalents△888

Revaluation of consolidated subsidiary shares where△4,370contribution in kind has taken place.
Payments for acquisition

2,518

Current Consolidated fiscal year ended (from April 1, 2017 to March 31, 2018)
Programmed Maintenance Services Limited and 89 subsidiaries(JPY million)

Current assets

43,848Non-current assets

30,956

Goodwill

52,583Current liabilities△46,540

Non-current liabilities△14,472△301

Foreign currency translation adjustment
Share Acquisition Method

66,075

Cash and cash equivalents△4,576

Payments for acquisition

61,499－ 31 －

3. Details of important non-capital transactions
Explanatory notes have been omitted as the values are insignificant.
(Business combination etc. related matters)
Current Consolidated fiscal year ended (from April 1, 2017 to March 31, 2018)(Corporate mergers by acquisition)
Programmed Maintenance Services Limited Share Acquisition
1. Overview of the corporate merger & acquisition(1) Name & business outline of the corporation subject to acquisition
Name of the corporation subject to acquisition: Programmed Maintenance Services Limited (hereinafter "Programmed
Ltd.") and 89 subsidiaries
Business outline: Placement/recruitment, temporary staffing, equipment/facilities maintenance(2) Main reasons for the corporate merger & acquisition
PHD's overseas business interests: In 2010 a strategic business alliance agreement was signed with Kelly Services Inc. (amajor US-based HR services company), and in 2012, both firms launched a joint venture in North Asia. In addition, in 2016,
the joint venture was expanded to cover the entire Asia Pacific region and currently focuses on temporary staffing,placement, and HR management consulting. The JV is currently developing business in 12 countries and regions: PRC,
Hong Kong, South Korea, Taiwan, Singapore, Vietnam, Indonesia, Malaysia, Thailand, India, New Zealand, and Australia.
On the other hand, Programmed Ltd. was established as a painting services company in 1951, and after mergers with amajor Australian HR services company etc., is presently a leading HR services and maintenance company. Programmed
Ltd. HR services focus on temporary staffing and placement, and whereas Programmed Ltd. maintenance services focus
on facilities management of commercial facilities/schools, painting, land development, and mine facility maintenance.
PERSOL decided to pursue this share acquisition seeking to further expand its business in future by combining the strong
business foundations of both companies - the know-how and customer base cultivated in the Asia Pacific region by
PERSOL together with the scale/results of Programmed Ltd. in Australia etc.
(3) Corporate merger & acquisition date
October 27, 2017(4) Legal form of the corporate merger & acquisition, and corporate name post-acquisition
Legal form of the corporate merger & acquisition: Shares acquired for cash consideration.
Corporate name post-acquisition: There will be no change to the corporate name after the corporate merger & acquisition
takes place.
(5)
Ratio of voting rights acquired
100%(6) Main basis for deciding to acquire the corporation
The acquisition of shares was effected by PERSOL HOLDINGS paying cash consideration via an Australian subsidiarycompany.
2. Performance period of the acquired company included in the consolidated financial statement
The accounting date of the acquired company differs with PHD Group by 3 months. As the deemed acquisition date
pertaining to the corporate merger is 30 September 2017, the current consolidated accounting period includes the resultsfrom 1 October 2017 to 31 December 2017.
3. Itemized cost price of the corporation subject to acquisition, and kind of consideration
Cost price of the acquisition
Cash
JPY 66,075 million
Acquisition cost priceJPY 66,075 million(Note) Amount converted at the reserved exchange rate.
4. Description and amount of main acquisition-related cost

－ 32 －

Advisory costs etc.

JPY 838 million

5. Moneys occurring in relation to goodwill, causes for the occurrence, amortization method, and amortization period.
(1) Monetary amounts of goodwill that occurred:
JPY 52,583 million
In addition, allocation of the acquisition cost was not completed at the end of the current consolidated accounting period, so
the goodwill amount is provisional.
(2) Causes of this occurrence:
The main causes were that it was judged that there was potential for mutual utilization of infrastructure, brand-power,
owned by PERSOL Group and the corporation subject to acquisition, and potential for generation of beneficial businesssynergies and the anticipation of excess earnings.
(3) Amortization method & amortization period:
Straight-line method over 10 and 20 years
6. Assets accepted on corporate merger and acquisition date, amount of liabilities undertaken, and breakdown of main
assets and liabilities
Current assets
JPY 43,848 million
Non-current assets
30,956
Total Assets
74,804Current liabilities
46,540Non-current liabilities
14,472
Total liabilities
61,012
7. Calculation method and estimated amount of impact on the consolidated income statement for the current consolidated
accounting period assuming that the corporate merger and acquisition was concluded on the start date of the consolidated
accounting period
Sales
JPY 176,705 million
Profit before income taxes△4,876
Profit attributable to owners of parent △3,832(Estimated amount calculation method)
The estimated amount of impact is the difference between the sales and profit/loss information calculated assuming thecorporate merger and acquisition was concluded on the start date of the consolidated accounting period and the sales andprofit/loss information in the acquired company's consolidated income statement. The amount of goodwill amortization is
calculated assuming that the goodwill and intangible non-current assets recognized at time of corporate merger andacquisition occurred on the start date of the current consolidated accounting period.
These explanatory notes have not been certified through audit.
(Segment information etc.)
1. Outline of reporting Segment
In our reporting segments, the financial statement could be obtained by each group units, which is a subject ofinvestigation in board of directors and regularly consider for management resources and business results.
From the fiscal year ended March 2016, PERSOL Group began operating with the four reporting segments of Temporary
Staffing/BPO, ITO, Engineering, and Recruiting. The aim was to achieve further growth through agile management
decision-making in response to a rapidly changing market by strengthening strategy design and promotion capabilities andclarifying responsibilities.
Acknowledging the rising importance of the overseas business, from the fiscal year ended March 2018 the overseas
business previously included in the Recruiting segment has been established as the “Overseas” segment. For the further
enhancement of management lines hereafter, transition was made to five reporting segments of Temporary Staffing/BPO,
Recruiting, Overseas, ITO, and Engineering.
During the consolidated cumulative 3rd quarter period, a new acquisition of Programmed Maintenance Services Limited
shares took place, and its subsidiaries have been included in the scope of consolidation. Accordingly, companies in the－ 33 －

ambit of the Programmed Ltd group of companies will form the newly created "PROGRAMMED" Segment. Also, thesegment demarcation formerly known as the "Overseas" Segment will undergo a name change and become the"PERSOLKELLY" Segment. This transition will be manifested into 6 reporting segments:
Temporary Staffing/BPO, Recruiting, PROGRAMMED, PERSOLKELLY, ITO, and Engineering.
Moreover, segment information relating to the previous consolidated accounting period that was compiled in accordancewith reporting segment categories applied during this consolidated accounting period has been released.
2. Calculation method of sales, profit or loss, assets, liabilities, and other amounts for each reporting segment
The accounting method for reported business segments is roughly the same as "important items as the basis forcreating consolidated financial statements."
The profit or loss for reporting segments are numbers based on operating profit (after amortization of goodwill).
The internal revenues and transfer amounts between segments are based on the prevailing market rate.

－ 34 －

3. Information relating to: sales, profit & loss, assets & liabilities items for each reporting segment
Previous consolidated cumulative 3rd quarter period (from April 1, 2016 to March 31, 2017)(Unit: JPY millions)
Consolidated

Reporting segment

Temp/BPO

Recruiting

PROGRAMMEDPERSOLKELLY

ITOEngineering

Total
amountOther(Note 1)

Adjustment

Total

amount(Note 2).

Financial
Statements
Amountbooked(Note 3)

Sales
Sales to externalclients

439,02265,540－37,105

19,462

Internal sales ortransfers between
segments

1,656

594

－

2

7,184

26,655 587,785
12

9,450

4,127 591,913

82

591,995

12,079 △12,079－

6,756 603,992 △11,997

591,995

2,628

Total amount

440,678

66,134－

37,10826,646

26,668 597,236

Segment profits orlosses (△)

20,747

9,363

－

△868

2,095

1,979

33,317

188

33,505△96

33,409Segment Assets

133,972

67,036－27,101

19,755

16,568 264,435

3,475

267,911452

268,364

Depreciation (Note
4)

799

1,855

－

233

159

213

3,261

54

3,316

672

3,988

Amount of assets inequity method
companies

305

355

－

－

－

－

661

－

661

－

661

Increases in tangible
fixed assets &intangible fixed
assets: (Note 4)

2,879

1,998

－

254

346

418

5,898

308

6,206

1,274

7,481

Impairment loss

426

3,476

－

3

854

－

4,760

－

4,760

－

4,760

Amortization of
goodwill

2,261

1,976

－

958

492

346

6,035

－

6,035

－

6,035

Balance of goodwill
yet to be amortized

16,821

31,618－

10,669

7,882

1,569

68,561－

68,561－

68,561Other items－ 35 －

Current Consolidated fiscal year (from April 1, 2017 to March 31, 2018)(Unit: JPY Millions)
Consolidated

Reporting segment
Other
Temp/BPO

Recruiting PROGRAMMEDPERSOLKELLY

ITOEngineering Total amount(Note 1)

Financial

Adjustment
Total

Statements

amountAmount(Note 2)

booked(Note 3)

Sales
Sales to externalclients

478,894

71,95754,51265,726

21,540Internal sales ortransfers between
segments

2,177

883

－

48

7,447

27,783 720,415
12

10,5691,765 722,180
2,573

2

722,183

13,143 △13,143－

Total amount

481,071

72,84154,512

65,77428,98827,795 730,984

4,339 735,324 △13,140

722,183

Segment profits orlosses (△)

22,122

10,810

△507

△190

2,263

2,365

△322

36,541△472

36,068Segment Assets

142,969

67,808125,117

22,651

22,474

16,723 397,745

2,867 400,612

2,852

403,465

Depreciation (Note
4)

1,215

1,487

650

204

174

280

4,012

68

4,080

826

4,907

Amount of assets inequity method
companies

284

288

2,238

－

－

－

2,811

－

2,811

－

2,811

Increases in tangible
fixed assets &intangible fixed
assets: (Note 4)

1,254

2,355

271

360

831

141

5,215

372

5,588

1,254

6,842

Impairment loss

7

8,619

－

5,653

－

－

14,280－14,280－14,280

Amortization of
goodwill

2,252

1,976

911

1,079

492

336

7,050

－

7,050

－

7,050

Balance of goodwill
yet to be amortized

14,64722,78951,824

4,229

7,389

1,232

102,113－102,113－102,11336,864

Other items

Notes: 1. The "Other" category refers to business segments that are not included in reporting segments that include HRservices which fulfill Group-wide functions such as: shared-services, education and training etc.
2. Details of adjustments are as follows.
(Segment profits)(Unit: JPY millions)
Previous consolidated fiscal year

Consolidated fiscal year under review

Inter-segment write-offs△7,715△22,757

Company-wide revenues ※1

12,94830,502Company-wide expenses ※2△5,329△8,218

△96

△472

Total

※1. Company-wide revenues: mainly business management fees from Group companies, and dividends
received.
※2. Company-wide expenses: mainly expenses arising in PHD related to management of Group companies.

－ 36 －

(Segment assets)(Unit: JPY millions)
Previous consolidated fiscal year

Segment write-offs
All company assets

※3

Total

Consolidated fiscal year under review△46,697△107,064

47,149109,917

452

2,852

※3. All company assets consists mainly of: Cash and deposits, Investment securities, loans and management
related assets.
3. Segment profit and loss: Adjusted with operating profit in the consolidated financial statements.
4. Increase in "Depreciation and amortization expenses" and "tangible fixed asset & intangible fixed asset" long-term
prepaid expenses and similar expenses are included in depreciation and amortization amounts.

－ 37 －

(Per share related information)

Net assets per share

Previous consolidated fiscal year (FromConsolidated fiscal year under review

April 1, 2016 to Mar 31, 2017)(From April 1, 2017 to Mar 31, 2018)

JPY 594.95

JPY 623.90

income per share

JPY 75.94

JPY 33.28

Net profit per share after making potential
share adjustments

JPY 75.77

JPY 33.27

Current net

Note: The calculation basis this accounting period of net profit per share, and net profit per share after making potential
share adjustments is as follows:

Previous consolidated fiscal year (FromConsolidated fiscal year under review

April 1, 2016 to Mar 31, 2017)(From April 1, 2017 to Mar 31, 2018)

Current net income per share
Profit attributable to owners of parent(JPY million)

17,820

7,769

－

－

17,8207,769

234,673

233,491－－

Amounts not attributed to ordinary
shareholders (JPY millions)
Net profits attributed to ordinary shares
related to the parent company (JPY millions)Average number of shares during the period(‘000 shares)

Net profit per share after making potential
share adjustments
Adjusted net profit attributable to owners ofparent (JPY million)
Increase in ordinary shares (‘000 shares)505（(including: Convertible bonds with
subscription rights to shares)

505）

30
（

30）

Outline of adjustments made (including
calculation of net profit per share after
adjustments) to ensure that no dilution effect－－takes place.
Note: The "Director Compensation BIP (Board Incentive Plan) trust account" and "Employee Stock Ownership Plan trust
account" ("ESOP Trust") were implemented from the consolidated cumulative 2nd quarter period onwards. Average
number of ordinary shares during the period: Treasury shares are deducted from the calculations which include shares inthe "Director Compensation BIP (Board Incentive Plan) trust account" and "Employee Stock Ownership Plan trust account"("ESOP Trust") ( 589,571 shares as at the end of the current consolidated accounting period).
Furthermore, the average number of PERSOL HOLDINGS shares that were held in the trust account mentioned above
during the cumulative consolidated period was 328,128 shares.

－ 38 －