Announcement of the end of“an” business
PERSOL HOLDINGS CO., LTD.
1 Aug 2019

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Table of Contents

1. Reasons for ending the “an” business
2. Impact on results

3. Schedule from here on
4. Acquisition of treasury shares

Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

1

Background to ending the “an” business
Decision made to end the “an” business which operated within the Recruiting Segment.
Shift of management resources (including employees) of the “an” business over to the more productive“doda” business.

From 2011
onwards

By theprevious FY

Competitiveness declined due to an inability to cobble together a coherent strategy
focused on the web/smartphone era.

(FY Mar 2019)

Even though there were plans to bolster the “an” business through promotions &product investments, the part-time market environment in Japan is difficult, andimproving productivity would require time.

After thiscurrent FY:

A decision had been made to end the “an” business and focus management
resources on the more productive “doda*” business.
Relocate personnel to “doda” and accelerate “doda” growth➢The biggest bottleneck in the growth of "doda" is the increase of personnel so relocation will allow forcontinued growth in the future*The “doda” business offers permanent full-time employee’s placement services & job advertisement services.

Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

2

[Republished] FY Mar 2019
1st half results briefing material(12 Nov 2018)

Review of the “an” business up to now

Competitiveness declined due to an inability to cobble together a coherent strategy focused on theweb/smartphone era.
2011 - 2015

Strategy

2015 -Currently① Major metro areas① Shift to Web/Smartphone platform
Web+Suburban paper/hard copy media ② Commenced “LINE” SNS part time
② Continue with paper/hard-copy media
job service③ Cross-selling of PERSOL Group products(permanent employee sector media)① Full transition to the Web(withdrawal from paper/hard-copy media)② “an” brand promotion recommenced③ Improved productivity

Delay in creating structures focused on the Internet/Smartphone era.
Dispersed management resources & decline in the “an” brand competitiveness

Review➢ Inability to implement a bold investment strategy focused on theInternet/Smartphone era. Continuation of paper/hard-copy media services
while competitors shifted to Web-based services.
➢ “LINE” SNS part time job services commenced, and Group product crossselling strengthening (permanent employee sector media) results in dispersionof management resources and decline in the “an” brand competitiveness.

Back-to-basics(Rebuild the “an” brand)➢ Further enhancement of linkages withthe “LINE” SNS part time job service,
restrengthen the “an” brand throughpromotional/product investments.

Sales growth rate entered negative territory due todelays in addressing the Web and Smartphone era.

"an" business
Sales growth ratio(YoY)

Return to basics
Rebuilding the “an” business

12.9%
FYMar 20132013/3期

FY Mar 20142014/3期

FYMar 2015
2015/3期*: “an” sales figures reflect a management accounting basis

FYMar 20162016/3期

FY2017/3期
Mar 2017

FY Mar 20182018/3期

FYMar 20192019/3期-13.5%
Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

3Reasons for ending the “an” business
The market size of part-time market slowed down from FY2016/3.
A decision was made to consolidate management resources in the “doda” business.
High productivity in the “doda” business*2

Harsh market environment*1

アルバイト・パート市場規模

Part-time advertising market size in Japananシェア“an” share

Productivity of eachsales person

Market sharedeclines by -4.5%+2.0 times multiple
258,000

10.0%
208,000

5.0%
158,000

108,000

0.0%

58,000

-5.0%
8,000

-42,000

FY11/3期
Mar 2011 FY
Mar 2012FY13/3期
Mar 2013 FY
Mar 2014 FY
Mar 2015 FY
Mar 2016 FY
Mar 2017 FY
Mar 2018 FY
Mar 2019
12/3期
14/3期
15/3期
16/3期
17/3期
18/3期
19/3期

andoda-10.0%*1: Market size & “an” market share based on PHD research*2: Comparison of management accounting results in FY2019/3
Lan productivity: sales per sales person
Ldoda productivity: Average productivity of career consultants for placement and sales person for advertisingbusiness
Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

4Impact on results due to the end of the “an” business (FY Mar 2020)
We anticipate an operating loss of JPY-5 billion and an extraordinary loss of JPY-3.5 billion due to atemporary decline in sales due to the end of the “an” business and the relocation of personnel, as well as
the payment of transition operation support funds in extraordinary losses and other losses（JPYBillion)

Monetary Impact (Compared to original forecasts)

an

doda

ITO

Adjustme
nt

DetailsTOTAL

an: Decline in sales due to the end of business⁃ Decreased sales due to the end of business on September 27, 2019
⁃ End of "an" business as of November 25, 2019“

doda: Decline in sales due to relocation of personnel

Sales-8-2-0.5

+0.5

-10

⁃ Relocation of personnel including existing personnel of "doda“ inconsideration of medium- to long-term growth⁃ Decreased productivity due to customer relocation, and education ofpersonnel

ITO: Decrease in internal orders related to an⁃ Decreased internal orders from the an business

an: Impact of revenue decline due to the end of business⁃ Headcount will be deployed internally to the "doda" business.

doda: Increased personnel & training etc. related costs

OperatingProfit-1-3.8-0.2--5⁃ Increased personnel costs due to taking on of headcount from the"an" business, and costs associated with training related toenhancing capabilities etc.
ITO: Increased personnel costs⁃ Increased personnel costs due to taking on of headcount from the"an" business

Operation support fund to shift to "doda“ for agencies

Extraordi
naryLosses⁃ operation support fund to shift the sales system to "doda" after the-3.5----3.5"an" business is over.

Other losses⁃ Impairment loss on software assets acquired this year
⁃ Losses that occur with the end of business other than above
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5Effect of improving business results in the future
Sales growth and contribution to profit is anticipated to arise from enhanced capabilities linked topersonnel that are transferred from the “an” business.

Sales effectProfit effectEnhancing the capabilities of personnel is anticipatedto lead to growth in the sales of each business.

It is expected that in 3 years time, losses related
to end of “an” business (including extraordinarylosses) will be recovered on the operating profit
base.

Related to the rapid growth in the Recruiting Segment seen very recently(expansion in the scale of the business) while the future rate of sales growthis predicted to gradually slow down, at the same time the monetary base isanticipated to experience high growth.

今期YearCurrentPlacement

Job advertising

1st1年目Year

2年目
2ndYear(FY Mar 2021)(FY Mar 2022)(FY Mar 2023)(2020/3期) （2021/3期）（2022/3期）（2023/3期）(FY Mar 2020)

8.5(Aimed at full-time employees )(Unit: JPY billion)

Revenue growth effectRevenue growth effect(Cumulative)(Cumulative)

Approx. ＋JPY 15 billion

Approx. ＋JPY 9 billion

Cumulative amounts over a 3 year
period (FY Mar 2021 ~ FY Mar2023)

Cumulative amounts over a 3 year
period (FY Mar 2021 ~ FY Mar2023)

3年目
3rdYear

4.4
1.2

-8.5

Operating
Profit(Cumulative)
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6

Revised (Full Year) Consolidated Financial Results Forecasts
It reflects only the impact of the end of the "an" business and has not reviewed
the performance of existing businesses.
(Unit: JPY billion)

Forecast released Amount of Forecast revisions
Ratio % of*1
last year
increase orat this timeincrease(Ａ)
decrease (B)(Ａ-Ｂ)(decrease) (%)

Sales

1,000-10990-1.0%

EBITDA

66-561-7.6%

Operating Profit

48-543-10.4%

Ordinary Profit

48-5

43-10.4%

Current period net profit attributable toparent company shareholders

27.5-5.8

21.7-21.1%

Current period net profit per share (JPY)117.80-24.8592.95-21.1%[Reference]
Net profit prior to amortization of goodwill *2

36.1-5.8

30.3-16.1%

158.51-14.80

143.71-9.3%[Reference]
Adjusted EPS (JPY) *3*1:

Announced on 15 May 2019
Net profit prior to amortization of goodw ill: Profit attributable to ow ners of parent company ＋amortization of goodw ill*3: Adjusted EPS: adjusted net income / (number of shares issued at the end of the period – number of treasury stock at the end of the period)
Adjusted net income: net income attributable to ow ners of the parent ± adjustment items (excluding non-controlling interests) ± tax reconciliation related to adjustment items
Adjustment items: amortization of goodw ill and other intangible assets arising due to business combinations ± extraordinary income/losses*2:

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7

Future schedule
On 25 Nov 2019 the “an” advertising business is scheduled to end.

1

External releases about the end of
the “an” business

2

Explanation given to clients

PeriodDetails etc.

On this day (1 August)-On this day (1 August) ~27 September

Briefings commence today

On this day (1 August) ~~ 25 Nov

Notification at “an” www site

3Briefings given to agencies4Briefing given to www site users

5Sales activity of “an” halts

27 September-6The “an” business ends

25 November“an” www site closed
the same dayCopyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

8

Details of treasury share purchases
Acquisition of treasury shares to the total value of JPY 5 billion will take place.
1. Reasons for acquisition of treasury shares
Acquisition of treasury shares to enable the execution of an agile capital strategy that aims to enhance capitalefficiency while addressing changes to the future management environment.
2. Details of matters related to the acquisition(1)

Type of shares forming the target for acquisition:PERSOL HOLDINGS ordinary shares(2)

Number of shares able to be acquired:3,500,000 shares (upper limit)(Proportion of total number of fully issued shares (excludingtreasury shares): 1.5%)(3)

Total cost of acquiring the shares:

JPY 5 billion (upper limit)(4)

Acquisition period:

2 Aug 2019 ~ 30 Dec 2019

Reference: Treasury shares held as at 31 Mar 2019
Number of fully issued shares (excluding treasury shares)

233,448,545 shares

No. of treasury shares

3,256,316 shares
Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

9Appendix

Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

Revised (Half Year) Consolidated Financial Results Forecasts
It reflects only the impact of the end of the "an" business and has not reviewed
the performance of existing businesses.
(Unit: JPY billion)

Forecast released lastyear*1(Ａ)Amount of increaseor decrease (B)Forecast revisions at
this time(Ａ-Ｂ)

1st half

Full year

1st half

Full year

1st half

Full year

Ratio % of increase(decrease) (%)
上期

通期

Sales

483.5

1,000-1-10

482.5

990

-0.2%

-1.0%

EBITDA

30.2

66

-0.5

-5

29.7

61-1.7%-7.6%

Operating Profit

21.3

48-0.5-5

20.8

43-2.3%-10.4%

Ordinary Profit

21.3

48-0.5-5

20.8

43-2.3%-10.4%

Current period net profit
attributable to parent company
shareholders

12.0

27.5

-2.4

-5.8

9.6

21.7

-20.0%-21.1%

Current period net profit pershare (JPY)

51.40

117.80-10.28-24.8541.12

92.95-20.0%-21.1%[Reference]
Net profit prior to amortization ofgoodwill *2

16.3

36.1

-2.4

-5.8

13.9

30.3

-14.7%-16.1%*1:*2:

Announced on 15 May 2019
Net profit prior to amortization of goodw ill: Profit attributable to ow ners of parent company ＋amortization of goodw ill
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11

Attention: Note Regarding Handling of this Material

Results forecasts etc. used in this material contain forward-looking statements
which are based on a certain number of assumptions PHD deems rational,and the information at hand as of 1 Aug 2019 which are not meant in any way
by PHD to be assurances that plans will be realized. Actual results etc. mayvary greatly due to various causes.
The figures, indicators, PERSOL Group results, and details of financial status
included in this material have been released to facilitate an appropriate
understanding. Kindly note that not all the figures and indicators have been
subjected to audit and review by external auditors.

August 2014: Selected as one stock forming the JPX-Nikkei 400 Index composition
What is the JPXNikkei 400?

The index is a new share price index composed of corporations that aim to satisfy the various requirementsof global investment standards for the purpose of highlighting etc. in Japan and overseas the appeal ofJapanese firms from a management view point of efficient application of capital and investor aw areness etc.

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