PERSOL HOLDINGS (TSE 2181)
FY2020 Q1

For Immediate Release
August 12, 2020

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the Three Months Ended June 30, 2020
PERSOL HOLDINGS CO., LTD (the Company) today announced its consolidated financial results forthe three months Ended June 30, 2020.
Consolidated Operating Highlights
1) Financial Results(In millions of yen, unless otherwise stated)
Three months ended June 30,
2019
2020
235,218
238,222
10,057
9,115
14,416
13,38910,368
9,173
5,466
4,670
23.42
20.21
34.66
30.70

Net sales
Operating profit
EBITDA1
Ordinary profit
Net profit2
Net profit per share (yen)Adjusted EPS3

％ change
1.3
-9.4
-7.1
-11.5
-14.6
-11.4

Notes:
1. EBITDA=operating profit + depreciation + amortization of goodwill
2. Net profit attributable to owners of parent company
3. Adjusted EPS=adjusted profit a/ (average number of shares during the period - number of treasury stock during the period)a. Adjusted profit=profit attributable to owners of the parent ± adjustment itemsb (excluding non-controlling interests) ±tax reconciliation related to certain adjustment items
b. Adjustment items=amortization of intangible assets except goodwill by acquisitions ± extraordinary income/losses

2) Balance Sheet Data
(In million yen, unless otherwise stated)
As of March 31, 2020
370,993
163,906
39.9%
147,850

Total assets
Net assets
Equity ratio(Reference) Equity capital

As of June 30, 2020
340,931
158,49241.8%
142,6153) Dividend Status

FY ended Mar 2020
FY ending Mar 2021
FY ending Mar 2021
(Forecast)

End 1QJPY-

End 2Q
JPY
15.00-

Annual Dividend
End 3QEnd of FY
JPY
JPY
15.00
-

TOTAL
JPY
30.00

-

Note: Dividend forecast for the fiscal year ending March, 2021 will be disclosed immediately once investment plan and cash
allocation including shareholder returns are confirmed.

1-

PERSOL HOLDINGS (TSE 2181)
FY2020 Q1

4) Consolidated Financial Forecast for the Fiscal Year Ending March 2021 (April 1, 2020 - March 31,
2021)(In millions of yen, unless otherwise stated)
FY2020(1st half)
453,100-468,000
9,000-10,000
9,000-10,000
3,800-4,500% change-5.4% to -2.3%-55.3% to -50.3%-55.9% to -51.1%-

FY2020(full year)
913,400-945,800
18,000-22,000
18,000-22,000
8,300-11,100% change-5.9% to -2.6%-53.9% to -43.7%-54.3% to -44.1%
9.0% to 45.8%-

36.15-48.10--

34,000-38,000-

Net sales
Operating profit
Ordinary profit
Net profit*
Net profit per share
16.79-19.78(yen)(Reference)EBITDA*Net profit attributable to owners of parent company

Disclaimer
The statements concerning the Company's future business performances in this material such as earnings forecasts are based on information currently
available and certain assumptions deemed to be reasonable by the Company, and do not mean that we promise to achieve these figures. Actual results
may differ materially from the statements due to a variety of factors.

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PERSOL HOLDINGS (TSE 2181)
FY2020 Q1

1. Management Discussion and Analysis(1) Result of Operations
The Group provides a wide range of human resources (HR) related services; temporary staffing andplacement service as the core in Japan and Asia-Pacific (APAC) region.
In the first quarter of FY2020 ended June 30, 2020, social and economic activities were stagnating asa result of the effects of COVID-19 that was spreading worldwide, the HR market was also affected
on a global basis. The ratio of job offers to job seekers in June 2020 in Japan rapidly dropped to 1.11
(seasonally adjusted).
Due to the spread of COVID-19, the Group’s placement business was affected because companies
showed a movement to restrain their personnel costs, etc. In APAC area in which the degree ofseriousness and the measures against COVID-19 vary in different regions, the business operations
mainly in China for the first quarter of FY2020 (corresponding to the three months from January to
March 2020 for overseas subsidiaries) were largely affected. Furthermore, Australian dollar became
weaker against Japanese yen, the same as in the previous fiscal year.
In these severe business environment, although Staffing SBU, the Group core business andProfessional Outsourcing SBU achieved a sales increase, sales of other segments were decreased
which resulted in net sales of JPY 238,222 million at around the same level year-on-year (increasedby 1.3％ YoY). Operating profit was JPY 9,115 million (decreased by 9.4％ YoY) because Career SBU
that operates highly profitable placement business recorded a significant decline in profit as a resultof suffering a large impact of COVID-19, despite increased profits recorded by Staffing SBU andProfessional Outsourcing SBU. Ordinary profit was JPY 9,173 million (decreased by 11.5％ YoY) andnet profit attributable to owners of parent company was JPY 4,670 million (decreased by 14.6％ YoY).
Results by SBU (before inter-segment elimination)※Note that the classification of segments for report was changed from this fiscal year and the comparative
analysis shown below was made in comparison of the restated figures in the same period of the previous yearof new segments after re-classification.

1. Staffing SBU
In this segment, the Group operates temporary staffing business, including mainstay clerical andadministrative staff dispatching and wide range of staffing service, BPO (Business Process
Outsourcing) business and job referral service business mainly for administrative talents in Japan.
Sales were JPY 130,678 million (increased by 6.9％ YoY) and operating profit was JPY 8,921
million (increased by 53.2％ YOY). Sales was increased in temporary staffing business as a resultof an increase of operating days by 2 from the same period of the previous year, increased
number of active temporary workers in clerical and administrative area and increased unit billingrates in accordance with “equal pay for equal work”. Also, in BPO business, sales were increased
because of an increased number of outsourcing projects. Operating profit increased by sales
expansion and proper cost management.
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PERSOL HOLDINGS (TSE 2181)
FY2020 Q1

2. Career SBU
In this segment, the Group operates placement business, supporting corporate client mid-career
hiring activities, and job recruitment media business.
Sales were JPY 16,827 million (decreased by 28.5％ YoY) and operating profit was JPY1,505
million (decreased by 68.0％ YoY). Sales was decreased mainly as a result of the effe ct onplacement business of companies’ restraint in recruitment activities due to an impact caused by
COVID-19 and the termination of “an” business (in November 2019). Operating profit was
decreased significantly as a result of declined sales despite the e fforts to reduce marketing costand other costs.
3. Professional Outsourcing SBU
In this segment, the Group operates manufacture and development outsourcing business in IT
and engineering areas and temporary staffing business specialized in engineers dispatching.
Sales were JPY 26,415 million (increased by 10.0％ YoY), and operating profit was JPY 315 million(increased by 16.0％ YOY). Sales as a whole were increased because sales in engineering area
was maintained at the same level of previous first quarter despite the effects of COVID -19
suffered such as decreased operation rate due to companies’ movement to restrain theirdevelopment investments and sales in outsourcing business which was robust in IT area wereincreased. Operation profit was increased because sales expansion absorbed the increased
personnel cost associated with the expansion of engineering staff including hiring new graduates.
4. Solution SBU
In this segment, the Group creates new businesses through provision of digital solution services
including hiring talents and human resource management, and incubation program.
Sales were JPY 952 million (decreased by 29.5％ YoY), and operating loss was JPY 1,437 million(operating loss of JPY 299 million for the same period of the previous year). Sales were decreased
due to a movement of companies to reduce personnel cost and hiring cost and a businesssuspension requests to restaurants to prevent COVID-19 from spreading. Operating loss recorded
due to sales decrease.
5. Asia Pacific SBU
In this segment, that the Group operates temporary staffing business and placement business in
Asia Pacific (APAC) area and human resource-related business and maintenance business inAustralia (those businesses are operated under PERSOLKELLY brand in Asia and under
PROGRAMMED brand in Australia).
Sales were JPY 65,980 million (decreased by 1.5％ YoY), and operating loss was JPY 116 million(operating loss of JPY 156 million for the same period of the previous year). Sales were decreased
as a result of weak Australian dollar although sales on a local currency basis were increased
because of the growth of temporary staffing business in Singapore and solid results ofmaintenance business in Australia that is not susceptible to the effect of economic conditions.
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PERSOL HOLDINGS (TSE 2181)
FY2020 Q1

Operating loss recorded because there were factors that placement business in China forJapanese companies was greatly affected by COVID-19 and that the restructuring cost wasbooked in Australia.
The business impacts caused by spreading new coronavirus (COVID-19) infection
In Japan, even after the emergency declaration was lifted in late May, the number of infected people
has been increasing again since July mainly in Tokyo metropolitan area and outlook is becoming
increasingly unclear. In overseas situation, COVID-19 is spreading and government policy to restrictouting continues in some regions in APAC area where our company operates business.
Temporary staffing business in the PERSOL Group’s domestic operations was affected, resulting indecreased operating ratio and operating hours in marketing area due to shorter operating hours ofstores and reduction of staff, etc. On the other hand, most of the staff in the core clerical andadministrative area returned to normal working style after the emergency declaration was lifted.
Additionally, in BPO business, demand for new contracts is increasing. In placement business, mostcounseling sessions and interviews that used to be performed face to face are now switched to online.
The business has been significantly affected by the trend of companies to reconsider HR plans andcut labor costs, including longer time taken for hiring decision and pullout of hiring.
In overseas operations, business conditions vary from country to country. In Asia, temporary staffing
business in countries such as Singapore, Malaysia and Hong Kong is stable as a whole because
temporary workers are working from home. In placement business, on the other hand, there is atemporary trend of declining demand for HR due to spreading COVID-19 and the business is affectedby companies’ pullout of hiring, etc. Also, in Australia and New Zealand where economy became
stagnant due to COVID-19, staffing business suffers from effects including decreasing number ofactive temporary workers and maintenance business does from decreasing number of projects.

5

PERSOL HOLDINGS (TSE 2181)
FY2020 Q1(2) Financial Position(a) Consolidated Balance Sheet
Total assets decreased by JPY 30,062 million compared with the end of the previous fiscal year.
Current assets decreased by JPY 20,807 million, and fixed assets decreased by JPY 9,255 million. The
main reason for the decrease in current assets was a decrease in cash and deposits by JPY 14,808
million, etc. The main reasons for the decrease in fixed assets were: a decrease in goodwill by JPY
5,521 million, and a decrease in deferred tax assets by JPY 2,575 million, etc.
Liabilities decreased by 24,648 million compared to the end of the previous fiscal year. Current
liabilities decreased by JPY 13,748 million, and non-current liabilities decreased by JPY 10,899 million.
The main reasons for the decrease in current liabilities were corporate bonds to be redeemed within
one year increased by JPY 10,000 million, however on the other hand, long-term loans payable within
one year decreased by JPY 10,000 million, provision for bonuses decreased by JPY 6,029 million andincome taxes payable, etc. decreased by JPY 5,545 million. The main reason for the decrease in non current liabilities was a decrease in corporate bonds by JPY 10,000 million, etc.
Net assets were decreased by JPY 5,413 million compared to the end of the previous fiscal year. Thiswas mainly caused by: payment of dividends of surplus of JPY 3,474 million, and posting JPY 4,670
million in quarterly net profit attributable to parent company shareholders, etc. whi ch resulted inincreased retained earnings of JPY 1,196 million and on the other hand, foreign currency translation
adjustments decreased by JPY 7,804 million, etc.

Return on assets (ROA) for the period
Return on equity (ROE) for the period
Ratio of operating profit to sales
Ratio of ordinary profit to sales
Current ratio
Fixed assets ratio
Equity ratio
Total assets (JPY million)
Equity capital (JPY million)
Cash and cash equivalents etc. at end of period (JPY million)

As of March 31,
2020
2.3％
5.0％
4.0％
4.1％
159.6％
99.7％
39.9％
370,993
147,850
78,037

As of June 30,
2020
1.4％
3.2％
3.8％
3.9％
160.5％
96.9％
41.8％
340,931
142,615
63,278(b) Issues to be addressed in our business and financial operations
There were no new business and financial challenges requiring addressing during three months
ended June 2020.

(3) Explanation regarding future forecast information
In May 2020, only net sales and operating profit forecast for the first quarter of FY2020 ended June30, 2020 were disclosed on a range basis. Full-year financial forecast of FY2020 was undecided
because reasonable predictions were not possible with respect to the degree and scape of the effects
of COVID-19 pandemic, an impact on real economy and the timing of economic recovery, etc.
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PERSOL HOLDINGS (TSE 2181)
FY2020 Q1

Although business outlook is still somewhat unforeseen as of August 12, 2020, financial forecasts of
FY2020 are disclosed on a range basis on the assumption that corporate needs for hiring talents inJapan will gradually pick up toward the end of this fiscal year because it is on a track of recovery after
the lift of the emergency declaration, and that also in APAC region except for some areas, like inJapan, the same needs will be recovering gradually in general toward the end of this fiscal year.
Revision of the forecasts will be disclosed promptly if necessary, considering the market conditions
and business trends in future, including an impact of the COVID-19 pandemic.

7

PERSOL HOLDINGS (TSE 2181)
FY2020 Q1

2. Consolidated Financial Statements(1) Consolidated Balance Sheet(in millions of yen)
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Tangible assets
Buildings and structures, net
Tools, furniture and fixtures, net
Right-of-use-assets
Land
Other, net
Total tangible assets
Intangible assets
Trademark rights
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total Assets

8

As of June 30, 2020

78,247
128,571
7,618
9,820
-707
223,549

63,439120,080
8,228
11,568-575
202,742

3,675
2,013
3,904
997
2,011
12,603

3,676
2,011
3,222
799
1,866
11,576

9,671
72,562
22,348104,582

8,752
67,041
21,65397,446

8,146
9,063
14,444-1,39730,257
147,444
370,993

10,085
6,487
13,804-1,211
29,165
138,189
340,931PERSOL HOLDINGS (TSE 2181)
FY2020 Q1(Consolidated Balance Sheet)(in millions of yen)
As of March 31, 2020
Liabilities and equity
Liabilities
Current liabilities
Accounts payable – trade
Short-term loans payable
Current portion of corporate bonds
Current portion of long-term loans payable
Accounts payable
Accrued income taxes
Accrued consumption taxes
Provision for bonuses
Reserve for bonuses for Directors
Provisions - other
Other
Total current liabilities
Non-current liabilities
Corporate bonds
Long-term loans payable
Lease debts
Deferred tax liabilities
Liabilities related to retirement benefits
Allowance for share benefits
Allowance for Directors' share benefits
Provisions - other
Other
Total non-current liabilities
Total liabilities
EquityShareholders’ equity
CapitalCapital 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 equity

9

As of June 30, 2020

782
5,300
－
10,00069,266
6,755
17,764
12,68756
772
16,665140,052741
5,890
10,000066,9701,209
16,741
6,658
18
775
17,296
126,303

20,00035,728
2,456
4,860
989
383
449
72
2,094
67,035207,087

10,00035,728
2,015
4,521
938
475
470
94
1,891
56,135
182,439

17,47920,396126,285-9,369154,792

17,47920,396
127,482-9,342
156,015471-7,414-6,942
16,056
163,906
370,993

1,819-15,218-13,399
15,876
158,492
340,931PERSOL HOLDINGS (TSE 2181)
FY2020 Q1(2) Consolidated income Statements(in millions of yen)
Year ended June 30,
2019
2020
Net sales
Cost of sales
Gross profit
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 method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Losses on foreign exchange
Commission paid
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities
Gain on transfer of business
Employment adjustment subsidies
Total extraordinary income
Extraordinary losses
Business reorganization losses
Loss on valuation of investment securities
Casual loss
Total extraordinary losses
Net profit before taxes etc.
Corporate tax, resident tax, and business tax
Corporate tax etc.-deferred
Total corporate taxes etc.
Net profit for the period
Net profit attributable to non-controlling interests
Net profit attributable to owners of parent

10

235,218
181,391
53,826
43,76910,057238,222
186,341
51,88042,764
9,115

16
110
195
124
11
458

13
126
187
－
25
353

116
22
－
－
8
147
10,368

98
79
94
22
0
296
9,173

29
7
33
－
69

67
11
－
8
87

495
－
－
495
9,942
2,846
1,370
4,217
5,725
259
5,466

148
32
407
588
8,671
1,441
2,278
3,719
4,952
282
4,670

PERSOL HOLDINGS (TSE 2181)
FY2020 Q1(Consolidated profit and loss statement)(in millions of yen)Three months ended June 30,
2019
2020
Net Profit for the period
Other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted for using
equity method
Total other comprehensive income
Comprehensive income(Break down)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

11

5,725

4,952

523
655

1,347
-8,038

11

-63

1,190
6,915

-6,754-1,801

6,591
324-1,786-15