NB: This document is a translation of the Japanese original and is provided for information purposes only.

Summary of Consolidated Financial Results for the 2nd Quarter of the
Fiscal Year Ending March 2019 (Based on Japanese GAAP)
9 November 2018
Listedcompanyname:

PERSOL HOLDINGS CO., LTD.

Stock code:

2181

Representative(Title)Inquiries(Title)Scheduled date to filequarterly report:

URL

Stock Exchange Listing: Tokyo

http://www.persol-group.co.jp

Representative Director,
President and CEO
Director, Executive Officer(Chief Financial Officer)

Masamichi Mizuta

12 November 2018

Kiyoshi Seki

TEL

+81 03-3375-2220

Scheduled date tocommence dividend
payments:

5 December 2018

Preparation of supplementary quarterly results
explanatory material yes/no: Yes
Quarterly results briefing session yes/no: Yes(Analyst/Institutional investor oriented)(Amounts less than JPY 1 million rounded down)

1. Consolidated Results for the 2nd Quarter of the Fiscal Year Ending March 2019 (April 1, 2018 - September 30, 2018)(1) Consolidated Operating Results (cumulative)(% indicates ratio of change from same quarter last year)
Quarterly net profit
Sales
Operating Profit
Ordinary Profit
attributable to ownersof parent
JPY Million%
JPY Million%
JPY Million%
JPY Million%
2nd Quarter of the Fiscal
452,260
39.3
20,45327.7
20,66024.0
11,987 30.0
Year Ending March 2019nd
2 Quarter of the Fiscal
324,780
17.3
16,017△3.9
16,668△1.6
9,223 △6.5
Year Ended March 2018
Note:
Comprehensive
income2nd Quarter of the
Fiscal Year Ending
March 2019

6,029

JPY
Million(△42.8%)

2nd Quarter of the
Fiscal Year Ended
March 2018

10,548

Quarterly net profit per share

Current net profit per share after
adjustment for dilution

JPY

JPY

51.39

51.38

39.47

39.47

2nd Quarter of the Fiscal YearEnding March 2019
2nd Quarter of the Fiscal Year
Ended March 2018

JPY Million(17.5%)(2) Consolidated Financial Position

2nd Quarter of the Fiscal YearEnding March 2019
FY Mar 2018

Total assets
JPY Million

Net assets
JPY Million

365,251

163,22240.7

402,336

159,992

36.2

2nd Quarter of the Fiscal

Equity ratio%

JPY
FY MarJPY
148,572
145,537
Year Ending March 2019
Million2018
MillionNote: "Partial revision of 'Accounting standards pertaining to Tax Effective Accounting'" (Japan Corporate AccountingStandard No. 28 of 16 Feb 2018) etc. have been applied since the beginning of this consolidated accounting 1stquarter period. The indicators of said accounting standard etc. was retroactively applied to main management
indicators etc. relating to the previous consolidated fiscal year.
Reference: Equity capital－1 －2. Dividend Status
Annual Dividend
End Q1End Q2End Q3End of FY

TOTAL

JPY

JPY

JPY

JPY

JPY

-

9.00

-

10.00

19.00

10.00

20.00

FY Mar 2018
FY Mar 2019

10.00

-

FY Mar 2019 (Forecast)

Note: Revision of most recently announced dividend forecast yes/no: No
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 2019 (April 1, 2018 - March 31, 2019)(% indicates ratio of change from same quarter last year)
Sales
JPY Million

Full Year

940,000

Operating Profit

Current period net profit
attributable to parent
company shareholders

Ordinary Profit%

JPY Million%

JPY Million

%

30.2

42,50017.8

41,50018.2

JPY Million

21,800Current period net
profit per share

%

JPY

180.6

93.21

Note: Revision of most recently announced financial results forecast: No* Explanatory Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in thescope of consolidation): No
New: - Ltd. (company name); Excluded: - Ltd. (company name)(2) Application of special accounting treatment when preparing quarterly consolidated financial statements: No(3) Changes in accounting policies/changes in accounting estimates/restatement of prior period financial statements
 Changes in accounting policies due to revisions to accounting standards etc.: Yes
 Changes in accounting policies other than : No Changes in accounting estimates: No
 Restatement of revised statements: No
Note: For details please refer to P.12 in the attached material: "2. Quarterly consolidated financial statements &main explanatory notes (3) Explanatory notes regarding quarterly consolidated financial statements ".
(4) Number of fully issued shares (ordinary shares)(Unit: shares)
 Number of fully issued shares atperiod end (including treasury shares)

2Q FY Mar 2019236,704,861

FY Mar 2018236,677,955

 Treasury shares at period end

2Q FY Mar 2019

3,397,979

FY Mar 2018

3,406,634

 Average number of shares
2Q FY Mar 2019
233,282,286 2Q FY Mar 2018
233,681,111
during the period (cumulative quarter)
Note: Number of treasury shares at the end of period: Includes PHD shares held in the "Director Compensation BIP(Board Incentive Plan) trust account", and the "Employee Share Ownership Plan trust account" ("ESOP Trust")(2Q of the fiscal year ending March 2019: 580,889 shares). Furthermore, PHD shares held in the "Director
Compensation BIP (Board Incentive Plan) trust account", and the "Employee Share Ownership Plan trust
account" ("ESOP Trust") are included in treasury shares which are deducted when calculating the average
number of shares held in the period.
* Summaries of quarterly consolidated financial accounts are not subject to quarterly review by Certified Public
Accountants or audit firms.
* Explanation of appropriate usage of financial results forecasts and other special explanatory notes:
The financial results outlook etc. and forward-looking statements noted in this material are based on certain
assumptions PHD deems rational and information currently at hand, which are not meant to be taken as an
assurance by PHD that outcomes will be realized. Furthermore, actual financial results etc. may vary greatly due tovarious factors.
(Change to method of presenting dates)
From the "Summary of Consolidated Financial Results for the 1 st Quarter of the Fiscal Year Ending March 2019"
onwards, the method of presenting dates will change from use of the Japanese calendar to the Western-stylecalendar.
－2 －○ Contents of Attachments
1. Qualitative information regarding the financial results for this quarter ………………………………………………

4(1) Explanation regarding business performance ………………………………………………………………………

4(2) Explanation regarding the financial position …………………………………………………………………………

6(3) Explanation of future forecast information (consolidated results forecast etc.) …………………………………

7

2. Quarterly consolidated financial statements & main explanatory notes ……………………………………………

8(1) Quarterly consolidated balance sheet ………………………………………………………………………………
(2) Quarterly consolidated profit and loss statement &quarterly consolidated comprehensive income statement …………………………………………………………
Quarterly consolidated profit and loss statement ………………………………………………………………

8
10

Consolidated cumulative 2nd quarter period …………………………………………………………………

10

Quarterly consolidated comprehensive income statement ……………………………………………………

11

Consolidated cumulative 2nd quarter period …………………………………………………………………

11(3) Consolidated quarterly cash-flow statement …………………………………………………………………………

12(4) Explanatory notes regarding quarterly consolidated financial statements ………………………………………

14(Explanatory notes regarding ongoing concern assumptions ……………………………………………………

10

14(Explanatory notes in the event of significant changes in the amount of shareholders’ equity) ……………… 14(Application of special accounting treatment when preparing the14quarterly consolidated financial statements) ………………………………………………………………………
(Changes in accounting policy) ..…………………………………………………………………………………….. 14(Additional information) ..……………………………………………………………………………………………... 14(Segment information etc.) …………………………………………………………………………………………… 15－

3 －1. Qualitative information regarding the financial results for this quarter(1) Explanation regarding business performance
While the outlook for the Japanese economy for the consolidated cumulative second quarter under review
remains unclear due to trade friction between China and the U.S. etc., corporate results were supported byvarious economic policies resulting in progress being made with the underlying theme of increased income andprofit. The Japanese economy grew modestly and was generally steady.
The employment situation is steadily recovering with Japan's September 2018 job-to-applicant ratio
experiencing high levels (multiple of 1.64 times) for the first time in 44 years. On the other hand, trends shifted;
the number of completely unemployed individuals decreased, whereas the number of employed persons
increased. In an employment environment where Japan is approaching full-employment, various humanresources related companies find themselves confronted with labor force shortages coupled with abundant
demand for talent. The human resources related market in Japan tended to be sound overall. PERSOL Groupbusiness results grew due to: the addition of the PROGRAMMED segment, steady growth within the
PERSOLKELLY segment (formerly known as the "Overseas" segment), and progress made towards
strengthening the sales structures in the recruitment business which led to an increase in the number of hire
contracts that were successfully closed etc.
In light of this environment, PERSOL Group amended the trading names of core companies within eachbusiness to reflect the "PERSOL" nomenclature. PERSOL aims to resolve challenges relating tolabor/employment in various sectors by leveraging the integrated strengths within PERSOL Group that extend
beyond sectoral boundaries.
One manifestation of this aim was the merger of 10 subsidiaries within the Temporary staffing/BPO segmentwith effect 1 October 2018. The information held by each of these subsidiaries (staff/candidate registrations,customer information, and market information etc.) will be aggregated, and IT technology utilized to enhance theprecision and speed when matching job opportunities with candidates.
Also, the PERSOL Career entity within the Recruiting segment re-branded its 8-year-old "DODA" job change
support service brand to "doda" in October 2018. PERSOL is evolving its brands to express its respect of thevalue of a diverse range of working people, and the notion of supporting "work" that suits the individual.
Meanwhile, in oversea segment, the PERSOLKELLY segment grew sales by successfully expanding its sales
structures above and beyond that seen in the previous platform. Also, the PROGRAMMED segment (focused
primarily on the Australian market), made progress with its business. The previous structures were used as afoundation which have been strengthened by moves made to augment the business structures with “must-have”
internal controls. It is through these 2 overseas focused segments; the PERSOLKELLY and PROGRAMMED
segments that PERSOL aims to continue to strengthen its competitiveness and expand the business byenhancing its presence in the Asia Pacific (APAC) region over the medium to long-term.
As a result of the above, sales during this consolidated cumulative 2nd quarter under review were JPY 452,260
million (up 39.3% year-on-year (YOY)), operating profit was JPY 20,453 million (up 27.7% YOY), ordinary profit
was JPY 20,660 million (up 1.5% YOY), and quarterly net profit attributable to parent company shareholders was
JPY 11,987 million (up 30.0% YOY).
Business results by segment (before inter-segment/company write-offs) are as follows:
Reporting segment categories changed in both the previous 1st quarter (Q1) accounting period, as well as 3rdquarter (Q3) consolidated accounting period. The following year-on-year (YOY) comparisons are made after
amending previous year figures and substituting with the amended segment category figures.
 Temporary Staffing/BPO Segment
Sales in this segment during this consolidated cumulative 2 nd quarter period amounted to JPY 248,508 million(up 5.5% year-on-year (YOY)), and operating profit was JPY 11,111 million (up 4.1% YOY).
With favorable corporate results and structural shortages of labor as a backdrop to this consolidated
cumulative 2nd quarter period, demand was strong leading to sales of JPY 248,508 million. In addition, there
was an increase in costs related to the merger of subsidiaries, but on the other hand, there was an increase inplacement fee revenues with corporate clients hiring workers directly associated with effects of revisions toJapanese laws.
－

4 － Recruiting Segment
Sales in this segment during this consolidated cumulative 2 nd quarter period amounted to JPY 41,042 million(up 16.1% year-on-year (YOY)), and operating profit was JPY 7,560 million (up 60.7% YOY).
Sales in this segment during this consolidated cumulative 2 nd quarter period amounted to JPY 41,042 million
which were underpinned by a healthy demand for HR resources and was mainly reflected in an increase in thenumber of hire contracts that were successfully closed etc. On the profit side, marketing costs declined, andthe aim was to bolster sales structures by investing in headcount. On the other hand, the HR placementbusiness played a leading role in expanding sales which resulted in earnings growth and operating profit of
JPY 7,560 million.
 PROGRAMMED Segment
Sales in this segment amounted to JPY 102,464 million during this consolidated cumulative 2 nd quarter period,and operating profit was JPY 218 million.
Sales in this Segment during this consolidated cumulative 2 nd quarter period amounted to JPY 102,464 million
characterized by a strengthening of client relationships, and a changing competitive environment where there
was a decline in orders from existing clients in staffing business. On the profit side, operating profit was JPY
218 million as a result of reductions to operating costs.
Furthermore, please note, there are no comparisons with the same quarter in the previous year as thissegment was established anew as a new reporting segment in the previous consolidated cumulative 3rdquarter period.
 PERSOLKELLY Segment
Sales in this segment during this consolidated cumulative 2 nd quarter period were JPY 36,122 million (up13.6% YOY), and operating profit was JPY 357 million (operating loss in the same period last year was JPY
285 million).
Sales in this segment during this consolidated cumulative 2nd quarter period amounted to JPY 36,122 million
which was the result of expansion in proactive sales structures in the buoyant APAC market environment. On
the profit side, operating profit was JPY 357 million as a result of increased labor costs associated withstructural alignments, but on the other hand, there was an expansion of services focusing on temporary
labor/placement services.
Furthermore, there was a change in title of this segment to “PERSOLKELLY” segment due to the
PROGRAMMED segment being newly established in the previous consolidated fiscal year.
 ITO Segment
Sales in this segment during this consolidated cumulative 2 nd quarter period amounted to JPY 15,372 million(up 13.6% year-on-year (YOY)), and operating profit was JPY 456 million (down 5.7% YOY).
Sales in this segment during this consolidated cumulative 2 nd quarter period amounted to JPY 15,372 million
which was the result of progress made in securing engineers in response to healthy demand. On the profit side,
operating profit was JPY 456 million as a result of additional costs etc. due to work environment improvements
and proactive hiring related costs.
 Engineering Segment
Sales in this segment during this consolidated cumulative 2 nd quarter period amounted to JPY 13,651 million(up 4.5% year-on-year (YOY)), and operating profit was JPY 878 million (up 23.8% YOY).
Sales in this segment during this consolidated cumulative 2 nd quarter period amounted to JPY 13,651 million
which was the result of healthy volumes of orders, and the impact of partial changes made to sub-contract
project review sign-off timings. On the profit side, operating profit was JPY 878 million as a result of stronglevels of inquiries for engineers (which had the effect of increasing unit prices), as well as cost control
measures: handling order opportunities in-house etc.

－

5 －(2) Explanation regarding the financial position
 Assets, liabilities, and net asset
Total assets decreased by JPY 37,084 million compared with the end of the previous consolidated accounting
fiscal year. Current assets decreased by JPY 27,652 million, and fixed assets decreased by JPY 9,431 million.
The main reason for the decrease in current assets was a decrease in cash and deposits by JPY 15,488 million
etc. The main reason for the decrease in current assets was a decrease in goodwill by JPY 8,346 million etc.
Liabilities decreased by JPY 40,315 million compared to the end of the previous consolidated fiscal year.
Current liabilities decreased by JPY 79,552 million, and non-current liabilities increased by JPY 39,236 million.
The main reason for the decrease in current liabilities was a decrease in short-term loans payable by JPY 66,341
million etc. The main causes of the increase in non-current liabilities were: an increase in corporate bonds (up by
JPY 20,000 million), and an increase in long-term loans payable (up by JPY 20,000 million) etc.
Net assets increased by JPY 3,230 million compared to the end of the previous consolidated accounting fiscal
year. This was mainly caused by: payment of dividends of surplus of JPY 2,338 million, and posting 11,987
million in quarterly net profit attributable to parent company shareholders etc. which resulted in increased
retained earnings of JPY 9,648 million and on the other hand, Foreign currency translation adjustments
decreased by JPY 6,221 million etc.
FY Mar 2019
Consolidated cumulative 2nd quarter period

FY Mar 2018

Return on Assets (ROA)

3.4%

2.2%

Return on Equity (ROE)

8.2%

5.5%

Ratio of operating income to sales

4.5%

5.0%

Ratio of ordinary profit to sales

4.6%

4.9%

Current ratio

147.5%

106.2%

Fixed assets ratio

109.3%

118.0%

Equity ratio

40.7%

36.2%

Total assets

JPY 365,251 million

JPY 402,336 million

Equity capital

JPY 148,572 million

JPY 145,537 million

Cash and cash equivalents etc. at end of period

JPY 74,072 million

JPY 89,566 million

Note: "Partial revision of "Accounting standards pertaining to Tax Effective Accounting" (Japan Corporate
Accounting Standard No. 28 of 16 Feb 2018) etc. have been applied since the beginning of this consolidated
accounting 1st quarter period. Said accounting standard etc. was retroactively applied to subsequent indicators andthe main management indicators etc. noted above that relate to the previous consolidated fiscal year.
 Cash flow
Cash and cash equivalents (hereinafter "capital") at end of this consolidated cumulative 2 nd quarter period was
JPY 74,072 million; a decrease of JPY 7,181 million compared to the end of the previous consolidated
cumulative 2nd quarter period.
Following is an outline of each cash flow status and causal factors that arose in the consolidated cumulative 2 ndquarter period.
(Cash flows from operating activities)
Capital acquired from operating activities was JPY 20,025 million (JPY 22,524 million was acquired the same
period previous year). This was mainly due to reductions to operating debt of JPY 7,396 million, and payment of
JPY 7,012 million in corporate taxes. On the other hand, Net profit before tax was JPY 20,758 million, corporate
tax refunds were JPY 4,543 million, goodwill amortization was JPY 4,285 million, and depreciation costs were
JPY 3,457 million.

－

6 －(Cash flows from investment activities)
Capital spent on investment activities was JPY 6,203 million (JPY 4,290 million was used during the same
period last year). This was mainly due to spending of JPY 3,132 million on acquisition of intangible fixed assets,
JPY 1,321 million spent on acquisition of tangible fixed assets, and spending of JPY 1,082 million on guaranty
money deposits.

(Cash flows from financial activities)
Capital spent on financial activities was JPY 29,470 million (JPY 6,247 million was spent during the same
period last year). This was mainly related to a net decrease of JPY 64,471 million in short-term loans payable buton the other hand, proceeds from long-term loans was JPY 20,000 million, and proceeds from issuing corporate
bonds was JPY 19,897 million.
 Business related and financial challenges that must be addressed
There were no new business and financial challenges requiring attention during this consolidated cumulative
2nd quarter period.
(3) Explanation of future forecast information (consolidated results forecast etc.)
Current consolidated cumulative 2nd quarter period business results were in general largely as anticipated. For thisreason, the consolidated results forecast has not been changed since being released on 15 May 2017.

－7 －2. Quarterly consolidated financial statements & main explanatory notes(1) Quarterly consolidated balance sheet
Previous
consolidated fiscal year
(March 31, 2018)
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable-trade
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-Current Assets
Fixed assets
Buildings and structures, net
Tools, furniture and fixtures, net
Land
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
Total investments and other assets
Total Fixed assets
Total Assets－

8 －(Unit: JPY million)
This 2nd quarter consolidated
accounting period(September 30, 2018)

89,624120,254
8,049
13,251△627
230,552

74,136112,157
8,311
8,932
△638
202,899

3,237
1,234
802
2,718
7,993

3,192
1,169
799
2,399
7,560

11,152102,113
20,629133,894

10,44393,767
20,596
124,807

12,542
4,636
12,732△16
29,895
171,783
402,336

12,424
4,616
12,957△14
29,983
162,351
365,251

Previous
consolidated fiscal year
(March 31, 2018)
Liabilities
Current Liabilities
Accounts payable – trade
Short-term loans payable
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
Bonds payable
Long-term loans payable
Deferred tax liabilities
Liabilities related to retirement benefits
Provision for share benefits
Provision for Directors' share benefits
Provisions - other
Other
Total Non-current liabilities
Total Liabilities
Net assets
Shareholders' equity
CapitalCapital surplus
Retained earnings
Treasury shares
Total Shareholders' Equity
Accumulated other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
Re-measurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total Liabilities and shareholders' equity－

9 －(Unit: JPY million)
This 2nd quarter
consolidated accounting period(September 30, 2018)

1,597
85,2884,640
67,4098,905
13,7969,931
6736
24,788217,102670
18,9472,320
64,273
9,336
12,141
10,38114717
18,748
137,550－
15,713
5,209
1,174
126
115
268
2,634
25,241
242,343

20,00035,713
4,697
353
193
182
210
3,126
64,478202,028

17,467
20,182
105,993△4,576
139,066

17,47920,195
115,642△4,557
148,759

3,179
3,291
－

2,743
△2,930
△0

6,470

△186

14,455
159,992
402,336

14,650163,222
365,251

(2) Quarterly consolidated profit and loss statement & quarterly consolidated comprehensive income statement(Quarterly consolidated profit and loss statement)(Consolidated cumulative 2nd quarter period)

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
Gains on foreign currency exchange
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Bond issuance expenses
Other
Total non-operating expenses
Ordinary Profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of subsidiaries and affiliates’ shares
Gain on sales of investment securities
Gain on transfer of business
Gain on revision of retirement benefit plan
Extraordinary income total
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on sales of subsidiaries and affiliates’ shares
Loss on valuation of investment securities
Early extra retirement payments
Loss on revision of retirement benefit plan
Total extraordinary losses
Net quarterly profit before taxes etc.
Corporate tax, resident tax, and business tax
Corporate tax etc.-deferred
Total corporate taxes etc.
Quarterly net profit
Quarterly net profit attributable tonon-controlling interests
Quarterly net profit attributable toparent company shareholders(Unit: JPY million)
Previous consolidated
This consolidated
cumulative 2nd quarter period cumulative 2nd quarter period(From April 1, 2017
(From April 1, 2018
to Sep 30, 2017)
to Sep 30, 2018)324,780452,260
247,356
353,088
77,424
99,172
61,40778,71816,017
20,453

－

10 －

13
88
467

19
113
121

74

195

3
85
733

383
43
874

53
－
29
82
16,668

464
102
101
667
20,660

0
2
40
－
－
42

23
－
16
38
56
135

－
7
－
28
17
261
314
16,395
6,494
83
6,578
9,817

18
－
3
14
－
－
37
20,758
7,685
72
7,758
13,000

593

1,012

9,223

11,987(Quarterly consolidated comprehensive income statement)(Consolidated cumulative 2nd quarter period)

Quarterly net profit
Other comprehensive income
Valuation difference on marketable securities
Deferred hedge loss/gain:
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Equity interest in affiliated companies accounted
for by the equity-method
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toparent company shareholders
Quarterly comprehensive income attributable tonon-controlling interests(Unit: JPY million)
Previous consolidated
This consolidated cumulative
cumulative 2nd quarter period
2nd quarter period(From April 1, 2017
(From April 1, 2018
to Sep 30, 2017)
to Sep 30, 2018)
9,817
13,000

－

11 －

470
206
54

△435
－
△6,305

－

△0

－

△229

730
10,548△6,970
6,029

9,935

5,330

612

698

(3) Consolidated quarterly cash-flow statement
Previous consolidated
cumulative 2nd quarter period(From April 1, 2017
to Sep 30, 2017)(Unit: JPY million)
This consolidated cumulative
2nd quarter period(From April 1, 2018
to Sep 30, 2018)16,395
1,859
7
3,171
35

20,758
3,457
－
4,285
△796

63

80

39

74

225

491

△168

7

△120

41

－
△102
53

△83
△132
464

△74

△195

△2

3

△40
28
△0
△467
－
－

△16
14
△4
△121
102
△38

2,334

4,210

3,606

△7,396

1,034△1,559

322

653

△171
△237
27,792
114
△53
40
467
△7,377
1,540
22,524△1,515△112
22,672
146
△444
－
121
△7,012
4,543
20,025

Cash flow from operating activities
Net quarterly profit before taxes etc.
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 forusing equity method
Loss (gain) on sales of shares ofsubsidiaries and associates
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets
Subsidy income
Bond issuance expenses
Loss (gain) on transfer of business (△ is gain)
Decrease (increase) in notes and accounts
receivable - trade (△ is an increase)
Increase (decrease) in operating debt(△ is a decrease)
Increase (decrease) in accrued consumption
taxes (△ is a decrease)
Increase (decrease) in long-term accounts
payable – other
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from subsidy income
Proceeds from subsidy income
Corporate tax etc. paid
Income taxes refund
Cash flow from operating activities

－

12 －

Previous consolidated
cumulative 2nd quarter period(From April 1, 2017
to Sep 30, 2017)(Unit: JPY million)
This consolidated cumulative
2nd quarter period(From April 1, 2018
to Sep 30, 2018)△0
6△1,175△9
2△1,321051△2,42929△253
50△3,132
－
△284
71

－

△200

－

△672

△53
－
－
20
△587
112
△9
△4,290－127△14
1△1,082347△85△6,203△413△64,471－△2,320－－△1,27649△2,104△128△53△6,24720,000△2,32019,897△2△0－△2,338△142△92△29,470△114

154

11,872△15,493

69,382
81,25489,566
74,072

Cash flow 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 andequipment
Purchase of intangible assets
Proceeds from sales of associates
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Expenditures on 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
Other
Cash flow from investing activities
Cash flow from financing activities
Net increase (△ decrease) in short-termloans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuing corporate bonds
Repayments of corporate bonds
Purchase of treasury shares
Proceeds from sales of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other
Cash flow from financing activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

－

13 －

(4) Explanatory notes regarding quarterly consolidated financial statements(Explanatory notes regarding ongoing concern assumptions)No applicable matters.
(Explanatory notes in the event there are significant changes in the amount of shareholders’ equity)
No applicable matters.
(Application of special accounting treatment when preparing the quarterly consolidated financial statements)
No applicable matters.
(Changes in accounting policy)
For some of the subsidiaries that exist overseas, from the 1 st quarter consolidated accounting period onwards, IFRSArticle 9 (financial products) and, IFRS Article 15 (earnings arising from contracts with clients) were applied. The
impact of the application of said accounting standard on the quarterly consolidated financial statements is deemed to
be insignificant.
(Additional information)
Application of partial revisions to the "Accounting standards pertaining to Tax Effective Accounting" etc.
Application of partial revisions to the "Accounting standards pertaining to Tax Effective Accounting" etc. (Corporate
Accounting Standards; Article 28 of 16 Feb 2018) etc. occurred at the beginning of the quarterly consolidated
accounting period. Deferred tax assets were shown in the "Investments & other assets" classification, and Deferred tax
liabilities were shown in the "Non-current liabilities" classification.

－

14 －

(Segment information etc.)
1. Information regarding sales, profits or losses for each reporting segment
Previous consolidated cumulative 2nd quarter period (from April 1, 2017 to September 30, 2017)(Unit: JPY million)
Reporting segment

Engineering

Total
amount234,453

34,909-31,753

9,815

13,060323,991784

324,7764

324,780

1,036

426

-

38

3,716

1

5,219

1,191

6,411

△6,411-

235,489

35,335-31,792

13,532

13,062329,211

1,976

331,187△6,406

324,780

10,676

4,705

-

△285

483

709

16,289△98

16,190△173

16,017

ITO

Recruiting

PERSOLKELLYPROGRAMMED

Temp/BPO

Quarterly
consolidated
Adjustments
profit and loss
Note 2:statement
Note 3:

Other(Note 1)

TOTAL

Sales
Sales toexternal clientsInternal sales
or transfers
betweensegments
Total amount
Segment profits orlosses (△)

This consolidated cumulative 2nd quarter period (from April 1, 2018 to September 30, 2018)(Unit: JPY million)
Reporting segment

Temp/BPO

Recruiting

PROGRAMMEDPERSOLKELLYITOEngineering

Quarterly
consolidated
Adjustments
profit and loss
Note 2:statement
Note 3:Total
amount247,144

40,467

102,464

36,098

11,383

13,647451,206

1,048

452,2555452,260

1,364

574

-

23

3,989

3

5,954

1,570

7,524

△7,524-

248,508

41,042

102,464

36,122

15,372

13,651

457,160

2,618

459,779△7,519452,260

11,111

7,560

218

357

456

878

20,582△122

20,459△5

20,453

Other(Note 1)

Total

Sales
Sales toexternal clientsInternal sales
or transfers
betweensegments
Total amount
Segment profits
or losses (△)

Note:

1. The "Other" category refers to business segments that are not included in reporting segments that include
HR services which fulfill Group-wide functions such as: shared-services, education and training etc.

－

15 －

2. Details of these revisions are as follows.
Previous consolidated
cumulative 2nd quarter period(Unit: JPY million)
This consolidated cumulative
2nd quarter period

△166

△111

Inter-segment write-offs
Company-wide revenues *1

3,991

4,586

Company-wide expenses *2△3,998△4,481

TOTAL

△173

△5

*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 ofGroup companies.
3. Segment profit and loss: Adjusted with operating profit calculated in the quarterly consolidated profit
and loss statement.
2. Matters relating to reporting segment changes etc.
During the previous consolidated cumulative 3rd quarter period, a new acquisition involving Programmed
Maintenance Services Limited shares took place, and its subsidiaries have been included in the scope of
consolidation. Accordingly, companies in the ambit of the Programmed Ltd group of companies formed the
newly created "PROGRAMMED" segment. Also, the segment demarcation formerly known as the "Overseas"
segment underwent a name change and became the "PERSOLKELLY" segment. This transition is manifested
in 6 reporting segments: Temporary Staffing/BPO, Recruiting, PROGRAMMED, PERSOLKELLY, ITO, andEngineering.
Furthermore, segment information pertaining to the previous consolidated cumulative 2 nd quarter that wasdisclosed as comparative information in the current consolidated cumulative 2nd quarter period was preparedafter changes were made to reporting segments. As such, some differences may be seen between reporting
segments in the consolidated cumulative 2nd quarter period disclosed in the previous consolidated fiscal year.
3. Information concerning impairment losses of non-current assets or amortization of goodwill etc. in eachreporting segment
Previous consolidated cumulative 2nd quarter period (from April 1, 2017 to September 30, 2017)
No applicable matters.
This consolidated cumulative 2nd quarter period (from April 1, 2018 to September 30, 2018)
No applicable matters.

NB: This document is a translation of the Japanese original and is provided for information purposes only.
－

16 －