For Immediate Release
November 11, 2021

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results
for the Six Months Ended September 30, 2021
PERSOL HOLDINGS CO., LTD. (the Company) today announced its consolidated financial results forthe six months ended September 30, 2021 and consolidated financial forecasts for Fiscal Year 2021,
ending March 31, 2022.
Consolidated Operating Highlights
1) Financial Results(In millions of yen, unless otherwise stated)
Six months ended September 30,% change
2020
2021
Net sales

465,755

512,847

10.1

Operating profit

13,875

26,735

92.7

EBITDA1

22,351

36,08561.4

15,33927,56079.7

Net profit

7,644

15,547103.4

Net profit per share (yen)

33.08

67.54

-

3

52.28

85.95

64.4

Ordinary profit
2

Adjusted EPS (yen)Notes:
1. EBITDA = operating profit + depreciation + amortization of goodwill
2. Net profit attributable to owners of parent company

3. Adjusted EPS = adjusted profita/ (average number of shares during the period - number of treasury stock during the period)a.

Adjusted profit = net profit attributable to owners of parent company ± adjustment itemsb (excluding non-controlling interests)± tax reconciliation related to certain adjustment itemsb.

Adjustment items = amortization of intangible assets except goodwill by acquisitions + amortization of goodwill ± extraordinary
income/losses

2) Balance Sheet Data
(In million yen, unless otherwise stated)
As of March 31, 2021

As of September 30, 2021

Total assets

383,416

385,220

Net assets

175,158

193,103

41.0

45.1

157,122

173,701

Equity ratio (%)(Reference) Equity capital3) Dividend Status(In yen, unless otherwise stated)
FY2020

FY2021

Interim dividend

13.00

20.00

Year-end dividend

13.00

20.00 (Forecast)

Total dividend

26.00

40.00 (Forecast)4) Consolidated Financial Forecast for the Fiscal Year Ending March 2022
(In millions of yen, unless otherwise stated)
FY2021 (full year)% change
Net sales

1,060,000

11.5

Operating profit

48,00081.5

EBITDA

66,700-Ordinary profit

48,60066.6

Net profit1

27,70074.9

Net profit per share (yen)120.42-Adjusted EPS (yen)155.68-Notes:
1.

Net profit attributable to owners of parent company

2.

Please refer to “Management Discussion and Analysis, (1) Result of Operations, Financial Forecasts of the Fiscal Year Ending March 31,2022” for details.

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

Management Discussion and Analysis(1) Result of Operations
PERSOL GROUP (the Group) provides a wide range of human resources (HR) related services;
temporary staffing and placement service as the core in Japan and Asia-Pacific (APAC) region.
The business environment in Japan in the six months ended September 30, 2021 remained
uncertain due to the spread of COVID-19. However, the ratio of job offers to job seekers inJapan was 1.16 (seasonally adjusted) in September 2021, showing that demand for humanresources, mainly in the manufacturing industry, was on a trend of gradual recovery.
In the APAC region, economy was on a trend of recovery in general, with the exception of certain
regions. And, in Australia, the Australian dollar became stronger against the Japanese yen yearon-year (YoY) as a result of an economic recovery in that country.
In this business environment, consolidated net sales were 512,847 million yen (increasing
10.1% YoY) as a result of a steady increase in sales of Staffing SBU (Strategic Business Unit),
which is our core business, and increased sales in other SBUs.
Operating profit was 26,735 million yen (increasing 92.7% YoY) because of growth of the
profitable BPO sector in Staffing SBU and a recovery of sales in other SBUs as a result of demand
recovering from the effect of COVID-19, which contributed to an increase in profits or areduction of losses in all SBUs. Ordinary profit was 27,560 million yen (increasing 79.7% YoY)
and net profit attributable to owners of parent company was 15,547 million yen (increasing
103.4% YoY).

Results by SBU (before inter-segment elimination)
1.

Staffing SBU
In this segment, the Group operates temporary staffing business, including mainly clerical andadministrative staff dispatching and wide range of staffing service, BPO (Business Process
Outsourcing) and job referral service businesses mainly for administrative talents in Japan.
Sales for the six months ended September 30, 2021 were 279,353 million yen (increasing 7.3%
YoY) and operating profit was 21,861 million yen (increasing 34.0% YoY).
Sales in temporary staffing sector increased due to a turnaround in the number of temporary
active staff to a year-on-year rise in addition to increased operating hours and other factors.
Sales in BPO sector increased due to strong orders received mainly in public related projects.
Operating profit increased significantly as a result of the effect of a sales increase in thetemporary staffing sector and the growth of the highly profitable BPO sector.

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 34,942 million yen (increasing 17.6% YoY) and operating profit was 3,193 million
yen (increasing 2209.6% YoY).
Sales in the placement business and job recruitment media business increased due to a recovery
of demand for hiring among companies planning business expansion and more focused, stronger
sales promotion activities. Operating profit increased on stronger sales, offsetting the rise inselling, general and administrative expenses that resulted from marketing investment made in
response to the rising demand.

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 57,748 million yen (increasing 7.5% YoY) and operating profit was 2,804 million yen(increasing 183.3% YoY).
Sales increased because the IT area continued stable growth and the engineering area saw arecovery in demand, mainly for development in the manufacturing industry, which led to asteady operating rate. Operating profit increased due to a sales increase in the IT area andprofitability improvement in the engineering area that resulted from a recovery in the operating
rate.

4.

Solution SBU
In this segment, the Group provides digital solution services for hiring talents and humanresource management and creates new businesses through incubation program.
Sales were 4,955 million yen (increasing 126.2% YoY) and operating loss was 1,565 million yen(operating loss was 2,697 million yen for the same period of the previous fiscal year).
Sales increased due to the steady performance of the job search application business and cloud
POS business, mainly reflecting the recovery in companies’ demand for hiring and the effect ofsales promotion activities.

An operating loss was recorded, despite the effect of the sales

increase, as a result of continuous active investments as in the previous fiscal year to increasestaff for sales promotion for future growth.

5.

Asia Pacific SBU
In this segment, the Group operates temporary staffing business and placement business in
Asia and staffing business and maintenance business in Australia (those businesses are operated
under PERSOLKELLY brand in Asia and under Programmed brand in Australia).
Sales were 141,504 million yen (increasing 13.5% YoY) and operating profit was 582 million
yen (operating loss was 677 million yen for the same period of the previous fiscal year).
Sales increased due to progress in the recovery from the impact of COVID-19 excluding someregions and continued sales growth in Singapore as the main market in addition to the effect of
the stronger Australian dollar. The SBU moved into operating profit because of the sales increase
and the establishment of an efficient operation structure.

Financial Forecasts of the Fiscal Year Ending March 31, 2022
In the fiscal year ending March 31, 2022, the market recovery is expected to make steadyprogress in the 2nd Half as in the 1st Half, with full-year net sales are expected to reach
1,060,000 million yen and full-year operating profit anticipated at 48,000 million yen, bothrecord high figures.
Looking at net sales, in the temporary staffing sector in Staffing SBU, the number of temporary
active staff is expected to increase over the period until the end of the fiscal year. Orders
received mainly in public related projects in the BPO sector are also expected to contribute to
net sales. Sales in Career SBU, which operates a placement business, are forecast to increasesignificantly as the recovery in corporate demand for hiring is expected to accelerate.
Sales in Asia Pacific SBU, which operates overseas business, are expected to increase given that
regional economies are generally recovering, offsetting the impact of COVID-19, which includes
restrictions on operations reflecting the lockdown in Australia and other regions.
Full-year operating profit for the fiscal year ending March 31, 2022 is expected to increasesignificantly due to a recovery and an increase of net sales in all segments, although selling,
general and administrative expenses are forecasted to increase in the 2nd Half of the fiscal year
because large-scale investments are planned in the overall Group, aiming at further growth in
the fiscal year ending March 31, 2023 and beyond.

#

#

#

#

The “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March 31, 2020)
is applied effective from the beginning of the 1st Quarter of FY2021. For more detail, pleaserefer to “Changes in Accounting Policies”.

(2) Financial Positiona.

Consolidated Balance Sheet
Total assets increased 1,803 million yen compared to the end of the previous fiscal year. Current
assets increased 8,480 million yen, and non-current assets decreased 6,676 million yen. The
main reason for the increase in current assets is an increase in notes and accounts receivable trade, and contract assets (notes and accounts receivable - trade in the previous fiscal year) of
15,727 million yen. The main reasons for the decrease in non-current assets are decreases ingoodwill of 2,377 million yen and in deferred tax assets of 1,775 million yen.
Liabilities decreased by 16,140 million yen compared to the end of the previous fiscal year.
Current liabilities decreased by 11,701 million yen, and non-current liabilities decreased by
4,439 million yen. The main reasons for the decrease in current liabilities are decreases in thecurrent portion of bonds payable of 10,000 million yen and in accrued consumption taxes of
3,215 million yen, offsetting an increase in income taxes payable of 5,611 million yen.
Net assets increased by 17,944 million yen compared to the end of the previous fiscal year. Thiswas mainly caused by the payment of dividends of surplus of 3,011 million yen and the postingof 15,547 million yen in quarterly net profit attributable to owner of parent company, which
resulted in an increase in retained earnings of 12,742 million yen and a foreign currencytranslation adjustment increase of 3,322 million yen.

As of March 31,
2021

As of September 30,
2021

Return on assets (ROA)

4.6％

4.4％

Return on equity (ROE)

10.4％

9.4％

Ratio of operating profit to sales

2.8％

5.2％

Ratio of ordinary profit to sales

3.1％

5.4％

Current ratio

162.8％

183.3％

Fixed ratio

93.2％

80.5％

Equity ratio

41.0％

45.1％

ROIC

9.4％

8.6％

Debt/equity ratio

0.40

0.27

Net cash/EBITDA ratio

0.47

0.94

Total assets (million yen)

383,416

385,220

Equity capital (million yen)

157,122

173,701

Invested capital (million yen)

244,109244,253

Cash and cash equivalents etc. at end of period(million yen)

82,991

81,706b.

Business and financial issues to be addressed
There were no significant changes to the issues that the Group needs to address for thesix months ended September 30, 2021.

c.

Consolidated Cash flows
The balance of cash and cash equivalents (hereinafter "Capital") at the end of the six months
ended September 30, 2021 were 81,706 million yen, decreasing 1,284 million yen from the endof the previous fiscal year.
Following is an outline of each cash flow status and related factors that arose in the six months
ended in September 30, 2021.

(Cash Flow from operating activities)
Capital acquired from operating activities was 21,602 million yen (as compared with 17,273
million yen acquired in the same period of the previous year). This was mainly due to: net
quarterly profit before taxes was 27,024 million yen, depreciation costs were 5,946 million yen,increase in notes and accounts receivable - trade of 9,733 million yen, and payment of 3,779
million yen in income taxes.

(Cash Flow from investing activities)
Capital utilized as a result of investing activities was 5,381 million yen (as compared with 6,985
million yen utilized in the same period of the previous year). This was mainly due to spendingof 4,144 million yen on acquisition of intangible fixed assets and 2,288 million yen spent on
acquisition of tangible fixed assets.

(Cash Flow from financing activities)
Capital utilized as a result of financing activities was 18,087 million yen (as compared with
14,912 million yen utilized in the same period of the previous year). This was mainly due tospending of 4,239 million yen to pay back long-term borrowings and 10,000 million yen
payments for redemption of bonds.

Changes in Accounting Policies
Application of Accounting Standard for Revenue Recognition, etc.
the Group has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No.
29, March 31, 2020) and others effective from the beginning of the 1st Quarter of FY2021 andhas decided to recognize the amount expected to be received in exchange for goods or services
as revenue when the control of the promised goods or services has been transferred to thecustomer.
The Accounting Standard for Revenue Recognition, etc. are applied in accordance with thetransitional procedures set forth in the proviso of paragraph 84 of the Accounting Standard for
Revenue Recognition. The cumulative effect of the retrospective application, assuming the new
accounting policy had been applied to periods prior to the beginning of the 1st Quarter of FY2021
was added to or subtracted from the beginning balance of retained earnings of the 1st Quarterof FY 2021, and thus the new accounting policy was applied from the beginning balance.
As a result, sales for the six months ended September 30, 2021 was increased by 2,720 million
yen, and gross profit, operating profit, ordinary profit and profit before income taxes increased
by 1,473 million yen, respectively. The impact on retained earnings at the beginning of theperiod and per share information for six month ended September 30, 2021 is minimal.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “notes andaccounts receivable - trade,” which were presented under “current assets” in the consolidatedbalance sheet for the previous fiscal year, have been included in “notes and accounts receivable- trade, and contract assets,” starting the 1st Quarter of FY 2021.
In accordance with the transitional procedures set forth in paragraph 89-2 of the AccountingStandard for Revenue Recognition, reclassification based on the new presentation method has
not been carried out for the previous fiscal year.

Application of Accounting Standard for Fair Value Measurement, etc.
The Group has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement
No. 30, July 4, 2019) and others effective beginning of the 1st Quarter of FY2021, and has
decided to apply the new accounting policy set forth by the Accounting Standard for Fair Value
Measurement, etc. into the future in accordance with the transitional procedures stipulated inparagraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2 ofthe Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). The
impact of the application of this accounting standard on the quarterly consolidated financial
statements is immaterial.

Consolidated Financial Statements(1) Consolidated Balance Sheet(in millions of yen)
As of March 31,
2021

As of September 30,
2021

AssetsCurrent assets
Cash and deposits

83,161

81,886

Notes and accounts receivable - trade133,047－－

148,774

Work in process

8,300

5,747

Other

13,146

9,674

Notes and accounts receivable - trade, andcontract assets

Allowance for doubtful accounts

△712

△659

236,943

245,423

Buildings and structures, net

3,560

3,647

Tools, furniture and fixtures, net

1,928

1,856

Right of use assets, net

3,482

3,686

Total current assets
Non-current assets
Property, plant and equipment

Land

799

799

Other, net

2,217

2,259

Total property, plant and equipment

11,98812,249Intangible assets
Trademark right

9,688

9,912

Goodwill

66,75164,374

Software

17,38018,994

Other

7,123

6,461

100,943

99,742

Investment securities

11,344

12,610

Deferred tax assets

7,861

6,086

Other

15,765

10,616

Allowance for doubtful accounts△1,430△1,508

Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

33,54027,804146,472

139,796

383,416

385,220

(Consolidated Balance Sheet)(in millions of yen)
As of March 31,
2021

As of September 30,
2021

Liabilities
Current liabilities
Accounts payable - trade

451

601

Short-term borrowings

603－

10,000－Current portion of bonds payable
Current portion of long-term borrowings

31

46

73,592

72,487

Income taxes payable

4,445

10,056

Accrued consumption taxes

17,161

13,946

Provision for bonuses

15,40913,51147

50

Accounts payable - other

Provision for bonuses for directors (and otherofficers)
Other provisions

1,116

1,061

Other

22,717

22,114

Total current liabilities

145,577

133,876

Bonds payable

10,00010,000Long-term borrowings

41,62937,699Lease obligations

2,047

2,168

Deferred tax liabilities

4,938

3,836

Retirement benefit liability

880

898

Provision for share awards

583

695

534

645

Non-current liabilities

Provision for share awards for directors (andother officers)
Other provisions

96

83

Other

1,970

2,212

Total non-current liabilities

62,68058,240208,258

192,117

Share capital

17,47917,479

Capital surplus

19,00819,175Retained earnings

135,635

148,377

Treasury shares△11,100△10,381

Total shareholders' equity

161,022

174,651

2,350

1,977

Foreign currency translation adjustment△6,251△2,928

Total accumulated other comprehensive income△3,900△950

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities

Share acquisition rights

00

Non-controlling interests

18,035

19,401

Total net assets

175,158

193,103

383,416

385,220

Total liabilities and net assets

(2) Consolidated Income Statements and Comprehensive Income Statement(Consolidated Income Statement)(in millions of yen)Six months ended September 30,
2020

2021

Net sales

465,755

512,847

Cost of sales

367,093

397,154

Gross profit

98,662

115,693

Selling, general and administrative expenses

84,786

88,957

Operating profit

13,875

26,735Non-operating income
Interest income

25

19

Dividend income

128

169

Subsidy income

1,595

507

71

90

123

292

1,944

1,079

Interest expenses

198

139

Foreign exchange losses

119

4Commission expenses

123

23

Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses

Other

39

86

Total non-operating expenses

480

254

15,33927,560

74

16

－

486

Gain on sale of investment securities

72

43

Other

8

－

154

546

－

3

Impairment losses

93

469

Loss on business restructuring

143－

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries andassociates

Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets

Loss on sale of investment securities－

1

Loss on valuation of investment securities

32

23

－

514

Restructuring expenses
Non-recurring loss

531

70

Total extraordinary losses

800

1,083

Profit before income taxes

14,69327,024

Income taxes - current

4,989

9,385

Income taxes - deferred

1,431

845

Total income taxes

6,420

10,230

Profit8,272

16,793

Profit attributable to non-controlling interests
Profit attributable to owners of parent

627

1,245

7,644

15,547

(Consolidated Comprehensive Income Statement)(in millions of yen)Six months ended September 30,
2020
Profit2021
8,272

16,793

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

1,391

△373

△2,517

3,608

△14

29

△1,140

3,264

7,131

20,0586,713

18,497418

1,560

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

(1) Consolidated Cash Flow Statements(in millions of yen)Six months ended September 30,
2020

2021

Cash flows from operating activities
Profit before income taxes

14,69327,024

Depreciation

5,174

5,946

Impairment losses
Amortization of goodwill

93

469

3,348

3,403

Increase (decrease) in retirement benefit liability△94Increase (decrease) in provision for bonuses

64△1,888

△35

2

190

111

74

110

△115

△81

Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for shareawardsIncrease (decrease) in provision for shareawards for directors (and other officers)
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in other provisions

△57

53

Interest and dividend income

△153

△188

198

139

△71

△90

△1,595

△507

△74

△12

－

△486

△72

△42

Loss (gain) on valuation of investment securities

32

23

Loss on business restructuring

143－

Other extra-ordinary gain

△8－

Restructuring expenses－

514

Interest expenses
Share of loss (profit) of entities accounted forusing equity method
Subsidy income
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sale of investment securities

Non-recurring loss

531

70

Decrease (increase) in trade receivables

8,286△9,733

Increase (decrease) in trade payables△3,278△715△4,493△3,324△114△91△1,603

5,016

Increase (decrease) in other liabilities△820△3,164

Subtotal

20,32322,562

151

187

Interest paid

△198

△145

Subsidies received

1,603

507

－

△310

△5,331△3,779725

2,581

17,273

21,602

Increase (decrease) in accrued consumption
taxes
Increase (decrease) in long-term accounts
payable - other
Decrease (increase) in other assets

Interest and dividends received

Payments of restructuring expenses
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating
activities

(in millions of yen)Six months ended September 30,
2020
2021
Cash flows from investing activities
Payments into time deposits

△21

△2

Proceeds from withdrawal of time deposits

44

3

Purchase of property, plant and equipment△2,195△2,288288

20△4,199△4,144

△546

△51

88

68

－

673

△120

△0

Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries
resulting in change in scope of consolidation
Loan advances
Proceeds from collection of loans receivable

1

0

△355

△199

151

741

△121

△203

△6,985△5,381△1,254△626△10,000△4,239

Redemption of bonds－△10,000

Purchase of treasury shares－△0△3,471△3,010

Dividends paid to non-controlling interests

△160

△198

Other, net

△25

△12

△14,912△18,087△791

581

Net increase (decrease) in cash and cash equivalents△5,416△1,284

Cash and cash equivalents at beginning of period

78,03782,991

Cash and cash equivalents at end of period

72,621

81,706

Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Repayments of long-term borrowings

Dividends paid

Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents