Briefing on Consolidated Financial
Results for the Second Quarter

Ended September 30, 2018
PERSOL HOLDINGS CO., LTD.
9 November 2018

Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

FY Mar 2019: 2Q Summary of Consolidated Results•••

Sales grew +39.3% due to stable growth amongst existing businesses, and the effect of M&As.
Achieved a new record for sales in a 2Q period.
The core temporary staffing and placement businesses led the way; profit grew substantially.
(Unit: JPY million)
FY Mar 2018
2Q
Cumulative

FY Mar 2019

Ratio (%)

2Q
Cumulative

Ratio (%)

FY Mar 2019 Results forecasts

YoY (%)

1st halfachievement
rate (%)

1st Half

Full YearSales

324,780100.0

452,260

100.0

+39.3

99.2

456,000

940,000

Gross profit

77,42423.8

99,172

21.9

+28.1

-

-

-

EBITDA*

21,048

6.5

28,196

6.2

+34.0

115.1

24,50056,500Operating Profit

16,017

4.9

20,453

4.5

+27.7

113.6

18,00042,500Net Profit
Attributable to
Owners of
Parent9,223

2.8

11,987

2.7

+30.0

137.8

8,700

21,800*Figures are rounded down (as with following pages) *EBITDA = Operating Profit + Depreciation + Amortization of Goodwill (as with following pages)
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

1

FY Mar 2019: 2Q Sales Analysis
Sales grew +39.3%:• +8.0% organic growth in existing businesses.
• PROGRAMMED LTD. M&A effect.

(Unit: JPY 100 million)△11+1,024

+57

+43

-

+18

+5

+6

4,522

+130

3,247

FY Mar 2018
2Q cumulative results

M&A*
Effect+1,024

Organic growth*+261

Temp/BPO
Segment

Recruiting
Segment

PROGRAMMED
Segment

PERSOLKELLY
Segment

ITO
Segment

Engineering
Segment

Other

M&A effect

Adjustments

FY Mar 2019
2Q cumulative results*M&A target companies: Programmed Maintenance Services Limited (January 2018)(Figures in brackets indicate date that contribution to consolidated results commenced)*M&A effect: Indicates the net increase of funds due to M&As (Values are prior to eliminations of internal transactions).
*Organic growth (or existing businesses): Indicates amounts of increase that exclude the net increase of funds due to M&As (Figures are prior to elimination of internal transactions)*Business Process Outsourcing (BPO), IT Outsourcing (ITO)(identical with following pages)
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

2

FY Mar 2019: 2Q Sales by Segment
Sales grew in each segment due to continued robust demand from clients.
(Unit: JPY million)
FY Mar 2018

FY Mar 2019

2Q Cumulative

2Q Cumulative

FY Mar 2019 Results forecasts
1st halfachievement
rate (%)

Growth rate (%)

1st Half

Full Year

Temp/BPO

235,489

248,508

+5.5

98.3

252,900

520,000

Recruiting

35,33541,042

+16.1

100.8

40,70084,000PROGRAMMED-

102,464-96.7

106,000

215,000PERSOLKELLY

31,79236,122

+13.6

113.2

31,90068,000ITO

13,532

15,372

+13.6

102.5

15,00033,000Engineering

13,062

13,651+4.5

97.5

14,00030,000

Other

1,976

2,618

+32.5

104.8

2,500

5,000

Adjustments△6,406△7,519--△7,000△15,000

TOTAL

324,780452,260

+39.3

99.2

456,000

940,000*PROGRAMMED Segment: The financial closing date of PROGRAMMED LTD. differs with PERSOL by 3 months. The Deemed Acquisition Date for Business Combinations is set as 30 September
2017 and as such, PROGRAMMED LTD's contribution to the results commences from January 2018.
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.
*Figures are prior to elimination of internal transactions

3

FY Mar 2019: 2Q EBITDA Analysis
EBITDA grew by +34.0% due to:• +17.6% organic growth of amongst existing businesses.
• Additional M&A effect of the PROGRAMMED LTD. acquisition.

(Unit: JPY 100 million)
+2

+31
+2

-

△0

+1

△0

+25

281

+7

210

FY Mar 2018
2Q cumulative results

M&A*
Effect+31

Organic growth*+37

Temp/BPO
Segment

Recruiting
Segment

PROGRAMMED
Segment*M&A target companies(Figures in brackets indicate date that contribution to consolidated results commenced)*M&A effect*Organic growth (or existing businesses)

PERSOLKELLY
Segment

ITO
Segment

Engineering
Segment

Other

M&A effect

Adjustments

FY Mar 2019
2Q cumulative results: Programmed Maintenance Services Limited (January 2018): Indicates the net increase of funds due to M&As (Values are prior to eliminations of internal transactions).
: Indicates amounts of increase that exclude the net increase of funds due to M&As (Figures are prior to elimination of internal transactions)
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

4

FY Mar 2019: 2Q EBITDA by Segment
Key drivers: Organic growth in the Temporary Staffing/BPO and Recruiting Segments.
(Unit: JPY million)
FY Mar 2018

FY Mar 2019

2Q Cumulative

2Q Cumulative

FY Mar 2019 Results forecast
1st halfachievement
rate (%)

Growth rate (%)

1st Half

Full Year

Temp/BPO

12,25513,001

+6.1

105.7

12,30027,700Recruiting

6,391

8,939

+39.9

124.2

7,200

16,900PROGRAMMED

-

3,196

-

103.1

3,100

6,500

PERSOLKELLY

446

720

+61.6

240.3

300

1,200

ITO

816

815

△0.2

116.4

700

2,100

Engineering

1,010

1,174

+16.3

102.1

1,150

3,100

Other

△66

△84

△21.7

-

△200

△200

Adjustments

194

434

-

-

△50

△800

21,04828,196

+34.0

115.1

24,50056,500TOTAL*PROGRAMMED Segment: The financial closing date of PROGRAMMED LTD. differs with PERSOL by 3 months. The Deemed Acquisition Date for Business Combinations is set as 30 September
2017 and as such, PROGRAMMED LTD's contribution to the results commences from January 2018.
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.
*Figures are prior to elimination of internal transactions

5

FY Mar 2019: 2Q Operating Profit Analysis
Operating profit grew +27.7% due to:• +25.3% organic growth in existing businesses.
• M&A effect of the PROGRAMMED LTD. acquisition.
△0(Unit: JPY 100 million)
+1

△0

+2

+1

+6

-

+28

204

+4

160

FY Mar 2018
2Q cumulative results

M&A*
Effect+2

Organic growth*+40

Temp/BPO
Segment

Recruiting
Segment

PROGRAMMED
Segment*M&A target companies(Figures in brackets indicate date that contribution to consolidated results commenced)*M&A effect*Organic growth (or existing businesses)

PERSOLKELLY
Segment

ITO
Segment

Engineering
Segment

Other

M&A effect

Adjustments

FY Mar 2019
2Q cumulative results: Programmed Maintenance Services Limited (January 2018): Indicates the net increase of funds due to M&As (Values are prior to eliminations of internal transactions).
: Indicates amounts of increase that exclude the net increase of funds due to M&As (Figures are prior to elimination of internal transactions)
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

6

FY Mar 2019: 2Q Operating Profit by Segment
Key drivers: organic growth in the Temporary Staffing/BPO and Recruiting segments(Unit: JPY million)
FY Mar 2018

FY Mar 2019

2Q Cumulative

2Q Cumulative

FY Mar 2019 Results forecast
1st halfachievement
rate (%)

Growth rate (%)

1st Half

Full Year

Temp/BPO

10,676

11,111

+4.1

103.8

10,70023,900Recruiting

4,705

7,560

+60.7

123.9

6,100

14,300PROGRAMMED

-

218

-

54.6

400

1,100

PERSOLKELLY

△285

357

+225.1

-

0

700

ITO

483

456

△5.7

114.0

400

1,500

Engineering

709

878

+23.8

97.6

900

2,700

Other

△98

△122

△19.5

-

△200

△250

Adjustments

△173

△5

-

-

△300

△1,450TOTAL

16,017

20,453

+27.7

113.6

18,00042,500*PROGRAMMED Segment: The financial closing date of PROGRAMMED LTD. differs with PERSOL by 3 months. The Deemed Acquisition Date for Business Combinations is set as 30 September
2017 and as such, PROGRAMMED LTD's contribution to the results commences from January 2018.
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.
*Figures are prior to elimination of internal transactions

7

FY Mar 2019: 2Q Consolidated Balance Sheet
End of FY Mar 2018

(Unit: JPY million)

Results

FY Mar 2019: 2Q

Ratio (%)

Results

Ratio (%)

Change402,336100.0

365,251100.0△37,084

230,55257.3

202,899

55.6△27,652

89,62422.3

74,136

20.3△15,488

171,78342.7

162,35144.4△9,431

113,26528.2

104,21028.5△9,054242,34360.2

202,02855.3△40,315

Current Liabilities

217,10254.0

137,550

37.7△79,552(Loans payable within one year)

89,92822.4

21,267

5.8△68,661

Non-Current Liabilities

25,241

6.3

64,47817.7

39,236(Long-term loans payable)

15,713

3.9

35,7139.8

20,000(Bonds)--

20,0005.5

20,000159,992

39.8

163,222

44.7

3,230

145,53736.2

148,572

40.7

3,035

(Capital stock)

17,467

4.3

17,4794.8

12(Capital surplus)

20,182

5.0

20,195

5.5

12(Retained earnings)

105,99326.3

115,642

31.7

9,648

14,455

3.6

14,6504.0

194

AssetsCurrent Assets(Cash and deposits)
Non-current Assets(Trademark rights/goodwill)
Liabilities

Net assets
Equity capital

Non-controlling interests*Partial revision of “Accounting standards pertaining to Tax Effective Accounting” have been applied since 1Q in FY Mar 2019.
Results were re-released after the results at the end of the previous FY were recalculated.

Trademark rights/goodwill
Decreased due toDepreciation/Foreign exchange

Current assets/Current liabilities/
Non-current liabilities
Repayment of short-term loans
partially by cash, and refinancing thebalance using long-term loans andcorporate bonds.
(long-term conversion)

Retained earnings
Increases due to increased profit

Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

8

FY Mar 2019: 2Q Consolidated Cash-flow Statement

FY Mar 2018

Major change

FY Mar 2019

(Unit: JPY million)
2Q Cumulative

Cash flow fromoperating activities

22,524

2Q Cumulative

20,025

Change△2,498Net profit before income taxes
Depreciation / Amortization of
goodwill
Change in notes / accounts
receivable – trade andoperating debt
Change in other liabilities

Cash flow from
Investment activities

Cash flow fromfinance activities

Increase (decrease) in cash &cash equivalents

Balance of cash & cash
equivalents etc. at end of period△4,290△6,247

11,872

81,254△6,203△29,470△15,493

74,072+4,362+2,711△4,528△4,474△1,912
Purchase of intangible assets△703

Payments for guarantee deposits△494△23,223△27,365

Increase (decrease) inshort-term loans payable△64,057

Proceeds from long-termloans payable

20,000

Proceeds from issuing
corporate bonds

19,897△7,181

Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

9

FY Mar 2019: 2Q Business Results Trends by Segment:① Temporary Staffing/BPO Segment
FY Mar 2019: 2Q Highlights+5.5％(Unit: JPY 100 million)• Demand for temporary staffing services in Japan remains strong
due to labor shortages and “workstyle-reform”.

+6.1％
+4.1％
2,354

• Earnings grew due to strong demand but were impacted by:
preparations for PERSOL Group subsidiary company mergers
and amendments to Japanese laws.

2,485
130
122

Sales

106

EBITDA111• Profit grew due to earnings growth which exceeded increases instructural costs (social insurance premiums etc.), and costs
associated with the new roll-out of the core “GENESIS” HRIS
system.

Operating Profit(Unit: JPY million)

FY Mar 2018
2Q Cumulative

FY Mar 2019
2Q Cumulative

FY Mar 2019 Results forecasts
Progress rate –1st Half (%)

YoY (%)

1st Half

Full YearSales

235,489

248,508

+5.5

98.3

252,900

520,000

EBITDA

12,25513,001

+6.1

105.7

12,30027,700

5.2

5.2

-

-

4.9

5.3

10,676

11,111

+4.1

103.8

10,70023,900

4.5

4.5

-

-

4.2

4.6

EBITDA Margin (％)
Operating Profit
Operating profit ratio (％)*Figures are prior to elimination of internal transactions*Please refer to the "Factbook: 2nd Quarter FY March 2019" released on the PERSOL website on the same date as the quarterly results. Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

10

FY Mar 2019: 2Q Business Results Trends by Segment:② Recruiting Segment
FY Mar 2019: 2Q Highlights+16.1％(Unit: JPY 100 million)• Demand from client companies continued to be healthy, with theplacement business driving the results.
• Deployments of personnel had to be reinforced, and promotional
investments etc. made in response to robust client demand.
Promotional investments were actively made which resulted in a
substantial increase in profit.

+39.9％+60.7％

410
89

353
63

• A decline in goodwill amortization also contributed to an
improvement of profitability due to the booking of the amortization
impairment related to the "an" business in 4Q of FY2018.

75
47

Sales

EBITDA

Operating Profit(Unit: JPY million)

FY Mar 2018
2Q Cumulative

FY Mar 2019
2Q Cumulative

FY Mar 2019 Results forecast
1st halfachievement
rate (%)

YoY (%)

1st Half

Full YearSales

35,33541,042

+16.1

100.8

40,70084,000EBITDA

6,391

8,939

+39.9

124.2

7,200

16,900EBITDA Margin (％)

18.1

21.8

-

-

17.7

20.1

Operating Profit

4,705

7,560

+60.7

123.9

6,100

14,300Operating profit ratio (％)

13.3

18.4

-

-

15.0

17.0

*Figures are prior to elimination of internal transactions*Please refer to the "Factbook: 2nd Quarter FY March 2019" released on the PERSOL website on the same date as the quarterly results. Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

11

FY Mar 2019: 2Q Business Results Trends by Segment:③ PROGRAMMED Segment
FY Mar 2019: 2Q Highlights(Unit: JPY 100 million)

Staffing Business• While sales declined due to aggressive pricing by somecompetitors, profit slightly declined due to reduction in sales andgeneral admin (SGA) expenses.
Maintenance Business• For facility maintenance of public institutions, despite the sales
declined due to the decrease of orders from major customers,
profits are steady due to new orders of airports and university
related facilities projects• Meanwhile, maintenance of mining facilities has declined inoperating rate as orders from existing customers declined, bothsales and profits declined

1,024
31
2
Sales

EBITDA

Operating Profit(Unit: JPY million)
FY Mar 2018

FY Mar 2019

2Q Cumulative

2Q Cumulative

FY Mar 2019 Results forecast
1st halfachievement
rate (%)

YoY (%)

1st Half

Full Year

Sales

-

102,464-96.7

106,000

215,000

EBITDA

-

3,196

-

103.1

3,100

6,500

EBITDA Margin (％)

-

3.1

-

-

2.9

3.0

Operating Profit

-

218

-

54.6

400

1,100

Operating profit ratio (％)

-

0.2

-

-

0.4

0.5

*Figures are prior to elimination of internal transactions*Please refer to the "Factbook: 2nd Quarter FY March 2019" released on the PERSOL website on the same date as the quarterly results. Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

12

FY Mar 2019: 2Q Business Results Trends by Segment:④ PERSOLKELLY Segment
FY Mar 2019: 2Q Highlights+13.6％(Unit: JPY 100 million)• Sales were healthy due to a backdrop of continued favorable
market conditions in APAC countries. Operating profit
successfully returned to the black with the placement businessdriving results.
• Proactive investments were made that targeted productivity
improvements: proactive strengthening of deployments ofpersonnel needed to handle the healthy demand, as well as
implementation of a common systems in branches etc.
• Capita Ltd. experienced steady recovery due to new structures
put in place after booking an impairment loss in FY2018 3Q.

+61.6％
361+225.1％

317

7

4

3

△2
Sales

EBITDA

Operating Profit(Unit: JPY million)

FY Mar 2018
2Q Cumulative

FY Mar 2019
2Q Cumulative

FY Mar 2019 Results forecast
1st halfachievement
rate (%)

YoY (%)

1st Half

Full YearSales

31,79236,122

+13.6

113.2

31,90068,000EBITDA

446

720

+61.6

240.3

300

1,200

EBITDA Margin (％)

1.4

2.0

-

-

0.9

1.8

Operating Profit

△285

357

+225.1-0700Operating profit ratio (％)

△0.9

1.0

-

-

0.0

1.0

*Figures are prior to elimination of internal transactions*Please refer to the "Factbook: 2nd Quarter FY March 2019" released on the PERSOL website on the same date as the quarterly results. Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

13

FY Mar 2019: 2Q Business Results Trends by Segment:⑤ ITO Segment
FY Mar 2019: 2Q Highlights+13.6％(Unit: JPY 100 million)• Intention to invest (IT system related services etc.) remainedsolid among existing corporate clients.
• High value-added opportunities continuously lead the whole
results (e.g. SI-related services, and outsourcing servicesetc.).

△0.2%
153

△5.7%

135
8

4

4
Sales

• Although there was an increase in costs due to improvements
to labor conditions, operating profit was higher than theforecast. In addition, the turnover rate tends to decline due toimprovements to labor conditions.

8

EBITDA

Operating Profit(Unit: JPY million)

FY Mar 2018
2Q Cumulative

FY Mar 2019
2Q Cumulative

FY Mar 2019 Results forecasts
1st halfachievement
rate (%)

YoY (%)

1st Half

Full YearSales

13,532

15,372

+13.6

102.5

15,00033,000EBITDA

816

815

△0.2

116.4

700

2,100

EBITDA Margin (％)

6.0

5.3

-

-

4.7

6.4

Operating Profit

483

456

△5.7

114.0

400

1,500

Operating profit ratio (％)

3.6

3.0

-

-

2.7

4.5

*Figures are prior to elimination of internal transactions*Please refer to the "Factbook: 2nd Quarter FY March 2019" released on the PERSOL website on the same date as the quarterly results. Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

14

FY Mar 2019: 2Q Business Results Trends by Segment:⑥ Engineering Segment
FY Mar 2019: 2Q Highlights+4.5％(Unit: JPY 100 million)• Trend of increased demand related to development ofconstruction/medical equipment in addition to steadydemand emanating from the automobile/electronics
markets.

+16.3％

136
130• Contract project, which was 1Q in-process, also
progressed, both sales and profits grew

+23.8％
10

11

Sales

EBITDA• Continued to ensure the scale of the business via
proactive hiring and utilization of partners.

8

7Operating Profit(Unit: JPY million)

FY Mar 2018
2Q Cumulative

FY Mar 2019
2Q Cumulative

FY Mar 2019 Results forecasts
1st halfachievement
rate (%)

YoY (%)

1st Half

Full YearSales

13,062

13,651+4.5

97.5

14,00030,000EBITDA

1,010

1,174

+16.3

102.1

1,150

3,100

EBITDA Margin (％)

7.7

8.6

-

-

8.2

10.3

Operating Profit

709

878

+23.8

97.6

900

2,700

Operating profit ratio (％)

5.4

6.4

-

-

6.4

9.0

*Figures are prior to elimination of internal transactions*Please refer to the "Factbook for the 2nd Quarter Ended March 2019" released on PERSOL's website on the same date as the quarterly results
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

15

FY Mar 2019: 2Q Business Results Trends by Segment:⑦ Other/Adjustments(Unit: JPY million)
FY Mar 2018

FY Mar 2019

FY Mar 2019 Results forecast
1st halfachievement
rate (%)

Other
2Q Cumulative

2Q Cumulative

YoY (%)

1st Half

Full Year

Sales

1,976

2,618

+32.5

104.8

2,500

5,000

EBITDA

△66

△84

△21.7

-

△200

△200

EBITDA Margin (％)

△3.4

△3.2

-

-

△8.0

△4.0

Operating Profit

△98

△122

△19.5

-

△200

△250

Operating profit ratio (％)

△5.0

△4.7

-

-

△8.0

△5.0
(Unit: JPY million)

FY Mar 2018

FY Mar 2019

FY Mar 2019 Results forecast
1st halfachievement
rate (%)

Adjustments
2Q Cumulative
Sales
EBITDAEBITDA Margin (％)
Operating Profit
Operating profit ratio (％)

2Q Cumulative

YoY (%)

1st Half

Full Year△6,406△7,519--△7,000△15,000

194

434

-

-

△50

△800

-

-

-

-

-

-

△173

△5

-

-

△300

△1,450

-

-

-

-

-

-

*Figures are prior to elimination of internal transactions*Please refer to the "Factbook: 2nd Quarter FY March 2019" released on the PERSOL website on the same date as the quarterly results.
*Others include our group functional services, education and training business, employment support business for people with disabilities, and childcare business
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.
*Adjustments stand for elimination of transactions between segments, and revenue and expenses of PERSOL HOLDINGS CO., LTD.

16

Appendix: Recent M&As

Company name

Programmed Maintenance Services Limited

Established

January 1992

Net sales (*1)

AUD 2,691 million (*1)

Operating profit (*1)

AUD 21 million (*1)

Acquisition date

October 2017

Contribution commenced beingreflected in results

4Q of FY Mar 2018

Ownership ratio

100%

Acquisition priceJPY 66,000 million (*2)

Goodwill
Amortization period
Affiliated Segment

Staffing business

Maintenance business

JPY 21,030 million

JPY 31,540 million

10 years

20 years
PROGRAMMED*1. Figures refer to the results of PROGRAMMED Ltd. and its subsidiaries for the FY Mar 2017. Operating profit has been calculated after amortization of goodwill
calculated at the time of acquisition (tentative figures), and after amortization of intangible fixed assets (total AUD 56 million/year).
*2. Conversion rate used: AUD 1: JPY 88.15
Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

17

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 PERSOL
deems rational, and the information at hand as of 9 November 2018 which are
not meant in any way by PERSOL to be taken as assurances that will be
realized. Actual results etc. may vary 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 share forming the JPX-Nikkei Index composition
What is the
JPX-Nikkei 400?

The JPX-Nikkei 400 index is a new share price index composed of corporations that aim to satisfy the various
requirements of global investment standards for the purpose of highlighting etc. in Japan and overseas theappeal of Japanese firms from a management viewpoint of efficient application of capital and investor
awareness etc.

Copyright: PERSOL HOLDINGS CO., LTD. All Rights Reserved.

18