Fiscal Year Ended March 2019:
Financial Results Briefing
PERSOL HOLDINGS CO., LTD.
15 May 2019

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Table of Contents

Part 1: Overview of Consolidated Results for the FY Ended March 2019
Part 2: Medium-term Management Plan Progress Status
Part 3: Results Forecasts for the FY Ending March 2020

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1

Part 1:
Overview ofConsolidated Results
FY Ended March 2019

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FY Ended March 2019: Consolidated Results
Highest results achieved for the past 7 consecutive financial years.
Business drivers: Japan domestic temp & placement businesses,
overseas PERSOLKELLY business.
(Unit: JPY 100 million)

1

Temp business: Profitability improves

2

Placement business: High growth9,258(YoY+28%)

3

PERSOLKELLY: Growth accelerates

7,221

441
(YoY+22%)

5,919
5,175
4,010

3,624
2,472

98
FY2013/3期
Mar 2013

185
FY
Mar 2014
2014/3期

234

FY
Mar 2015
2015/3期

334

280

FY
Mar 2016
2016/3期
Sales
売上高

FY
Mar 2017
2017/3期

360

FY Mar 20182018/3期

FY Mar 20192019/3期

Operating profit
営業利益
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3

FY Ended March 2019: Results by Segment
Business drivers:Temp/BPO, Recruiting, PERSOLKELLY.
Temporary Staffing/BPO
+5.9%

Sales

Operatingprofit ratio

Operating
ProfitRecruiting(Unit: JPY 100 m illion)

PROGRAMMED

5,095

2,014
858

+17.8%

4,810
728

221

239

4.6%

4.7%

155

108

14.8%

Included in consolidationfrom 4Q 2018
(4Q results only)

0.4%

545

18.1%

8
-5

FY 2018/3期
Mar 2018

FY2019/3期
Mar 2019

Profitability enhanced: Would have improved to 5.1% if not for
Post Merger Integration (PMI) costs.
Proactiv e handing of changes to Japanese law s: 10,000
headcount convert to open-ended contract arrangements.

FY2018/3期
Mar 2018

Expansion of the j ob-change market.
Placement business enj oys high grow th: +29％

2018/3期
FY Mar 2018+16.1%

761

Engineering
336
+5.6%

289

657

293

277

7.8%
0.7%

5

2019/3期
FY Mar 2019

Staffing business had a large contract ended.
Maintenance business progressing steadily.

ITO

PERSOLKELLY+15.7%FY2019/3期
Mar 2019

5.1%

22

17

2018/3期
FY Mar 20182019/3期
FY Mar 2019

8.5%

9.4%

23

27

2018/3期
FY Mar 20182019/3期
FY Mar 2019-1
2018/3期
FY Mar 20182019/3期
FY Mar 2019

APAC market env ironment strong.
Turning profit for the first time since the JV launched.

Strong IT needs appetite amongst firms.
Inv estments made to improv e treatment of employees.

Automobile/construction sectors healthy.
Bearish tendencies in the electronics sector.
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4

Improved Profitability in the Temporary Staffing/BPO Segment
If not for Post Merger Integration (PMI) costs, the operating profit ratio would have
improved to 5.1%.
Operatingprofit ratio(Unit: JPY 100 million)

PMI costs
JPY 2 billion

259
Operating
Profit

+38

▲20

239
221

221

5.1%

4.7%

4.6%

FY Mar 2018

236

Profitincrease

PMI cost

FY Mar 2019

FY Mar 2019
(After PMI adjustments)

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5

Handling of Temp Business Related Revisions to Japanese Laws:
Even though there was an impact of revisions to Japanese laws temporarily, 10,000 temp
staffs that successfully transitioned to open-ended contract arrangements.

Open-ended contract
temp worker headcount*1(Cumulative total )Client corporations
hire directly

Approx.

10,000 headcount(40％)
Approx.

4,000 headcount

11,000 headcount(44％)

Total of temp workers
subject to law change

Growth of placement fee earnings(16％)
Approx.

New temp clients

Billing rates up by on average by 10%
Operation rate of open-ended
contracts nearly 100％*2

Time-lag arises until assignment tonext client site

Approx.

25,000 headcount(100％)*1: Numberof temporary w orkers w ho transitioned to open-ended employment contracts as a consequence of revisions to Japan's Labor Contract Act and Japan's Worker
Dispatching ('Temp') Act (excludes 2,600 open-ended contract temps w ho previously transitioned).
*2: Operation rate excludes the time not w orking due to training/education activities.
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6

Outlook for Individuals Subject to Changes in Japanese Law:
Peaked in December 2018.
From April 2019 onwards, headcount levels of temps working as temps for periods in excess
of 3 years are anticipated to stabilize.
3 years after thelaw was enacted:

Temp workers subject to law change

30 Sep 2018

Dec 2018

Apr 2019① Continuing deployments of temps “ongoing & in excess of 3
years” from prior to changes to Japanese law (30 Sep 2015)(As of the end of March there were certain individuals still subject to priorarrangements. This is because when contracts after Oct 2015 are renewed inexcess of a continuous 3 year period, structures must be set in place to achieve
employment stability.)③ After April 2019:
It is anticipated that headcount subject to law
change will stabilize at set levels.*(*The average deployment of PERSOL temps is approx. 12
months so, headcount subject to law change will stabilize at
set levels.)② The staff who started new operation at the same time as the law revision(30 Sep 2015), and "justapproaching the point in time when they exceed the 3 years".
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7

High Growth Recruiting Segment
Continuous high growth achieved by actively hiring consultants,
and by offering multi-tiered services.

Placement business
sales

Advertisement business
sales(Aimed at permanent employees )YoY＋29％YoY＋31%(doda plus* is expanding)*doda plus: A service where even those job seekers who have not received job counseling receive email & telephone approaches.

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8

Recovery in PERSOLKELLY Business Results
After a partial impairment of goodwill took place at PERSOLKELLY in the FY ended March
2018, singapore placement results recovered to become profitable

Sales(Unit: JPY 100 million)

Oceania/
India
North
Asia
South
East Asia +29

657

Operating Profit(Unit: JPY 100 million)

Forex
Other impact

+8

▲11

761

+25
Goodwill
amortization
reduction

+53

Forex
impact

-0.1

5.4

+5.6

Impact ofincreased
revenuesFY Mar 2018

FY Mar 2019 FY Mar 2018 +1.8

FY Mar 2019

-1.9
*SE Asia: Singapore, Malaysia, Thailand, Indonesia, Vietnam. / North Asia: China, Korea, Hong Kong, Taiwan. / Oceania/India: Australia, New Zealand, India.
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9

FY Mar 2019 Market Environment
Underlying tone of demand remains unchanged.
The number of job vacancies is growing steadily.

Job Vacancies/
No. of Orders

As of March 2018

Dispatch(‘Temp’) businessApprox.

Approx.

25,000 orders

28,000 orders

Approx.

Approx.

(No. of orders obtained)

Placement Business

As of March 201987,000 opportunities (+21％)(No. of valid opportunities)

72,000 opportunities

Advertisement businessApprox.

Approx.

(No. of 'doda’ job listings)

61,000 listings

93,000 listings

Advertisement businessApprox.

Approx.

240,000 listings

330,000 listings(No. of ‘an’ job listings)(+12％)(+52％)(+37％)

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10

Part 2:Medium-termManagement Plan
Progress Status

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Approximation of Results Target Figures
Medium-term Management Plan target figures are anticipatedto be achieved during the final FY March 2020 fiscal period.
(Unit: JPY 100 million)

Sales
9,258

9,800

EBITDA
10,00010,000

660

480

7,221

FY Mar
18/3期
2018
（実績）
Results

599

630

Operating Profit

441

480

480

360

FY Mar
19/3期
2019
（実績）
Results

FY20/3期
Mar 2020
FY
Mar
20/3期
Medium-term
2020（中計目標）（予算）
Targets
Forecast

FY Mar2018
Results

FY Mar FY Mar 2020 FY Mar
2019 Medium-term 2020
Results
Targets Forecast

FY Mar2018
Results

FY Mar FY Mar 2020 FY Mar
2019 Medium-term 2020
Results
Targets Forecast

Assumptions

GDP growth rate

Moderate growth (approx. 0.0 ~ 1.0%)

Ratio of job offers
to job seekers

Continued demand due to economic growth/structuralcauses (approx. 1.0 ~ 1.2 multiple)
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12

Current Medium-term Management Plan Strategy × Priority Policies
The Medium-term Management Plan strategy will be continued,
and the following priority policies used to promote each strategy:

Medium-term Management Plan
(Same as the previous Medium-term Management Plan)

Priority Policies

Strategy 1

Enhancing Awareness of the PERSOL Group

Commence new advertising promotions(details shown later)

Strategy 2

Investing in IT Systems and Enhancing
Productivity for Further Business Growth

Improve productivity by means of the coretemp business "GENESIS" HRIS system

Strategy 3

Creating Group Synergies and Promoting
Group Management

Expand cooperative synergies across theentire Group

Strategy 4

Enhancing Our Presence in the Asia-PacificRegionFocus on improving profitability byaccelerating organic growth, and promoting
Post Merger Integration (PMI)

Strategy 5

Strengthening Business Platform andExpanding Service Domains through M&A

Proactively pursue M&A opportunities in thedomestic Japan business, and launch new
businesses (details shown later)
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13

Strategy 1: Priority Policy - Enhancing Awareness of the PERSOL Group
Just over 3 years since PERSOL was born. Challenges remain; even with a strengthening of
positive sentiment towards PERSOL generated by advertising promotions used to date.

Little understanding of
PERSOL’s business lines
When people hear “HR services” mentioned,
what brands actually come to mind?

Establishing linkages between
service brands is proving to
be a challenge

Weaklinkages

～
A
A社

B
B社

C
C社

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14

Strategy 1: Priority Policy - Enhancing Awareness of the PERSOL GroupIn PERSOL’s new advertising promotion campaign (“Japanese HR General Manager”) key
words are leveraged to promote understanding of PERSOL Group businesses, and to create
linkages between the service brands.

Wo r k, a n d S m i l e

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15

Strategy 2: Priority Policy - Improve productivity by means of the core temp
business "GENESIS" HRIS system
Profit contribution effect of 2.2 billion in FY March 2019
Expected to recover the initial investment of 4.6 billion in FY March 2020 as planned
GENESIS investment effect(Unit: JPY 100
million)Result（FY March 2019）60

40

The number of matching increased asplanned in Tokyo's 23 wards and central
Osaka

•

Promote the division/specializationof tasks（conversion to electronic bill,concentration of office work such asorder entry duties）

Initial investment of
4.6 billion

20

0

•

22

1

7
1

8

FY2017/3
2017/3期

FY2018/3
2018/3期

FY2019/3
2019/3期

Profit contribution
利益貢献（累年）(single year)30•

Established a matching center inKurume (Fukuoka) to improve thenumber of matching in the West Japan
area•

Further Promotion of thedivision/specialization oftasks(expand contract work volume of
Osaka area in Osaka center)

FY2020/3
2020/3期

Profit contribution
利益貢献（単年）(cumulative year)*Effects include some BPR effects from before theintroduction of GENESIS

Plan（FY March 2020）

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16

Strategy 5: Priority Policy- M&A Strategies for Each “Market × Sector”
Following the strategy , implement M&A in existing domestic business areasand invest in new business areas

Japan Domestic
MarketExisting business sectors

New business sectors*

Proactively consider & proceed with
opportunities as has been done to date.

Proactively proceed with
Open Innovation/M&A opportunities.

• Avanti Staff Corporation becomes a
PERSOL subsidiary.
• MOL Career Support, Ltd. businessinherited by PERSOL.

Overseas
MarketProfitability improvement isfactored into progress of
Post Merger Integration (PMI) activity.

• New service “Sharefull” is launched• Increased capital of JPY 1.5 billion in
PERSOL INNOVATION FUND (PIF).
(Cumulative total to date: JPY 2.5 billion)• In FY March 2019 PIF invested in
4 companies.
(Cumulative total to date: 15 companies)

Examples of investments made in the past:*: PERSOL Group for its part anticipates that firms eligible for M&As are those that generate new business, and firms that enhance the services of existing Group businesses.
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17

Strategy 5: Priority Policy – Direction of Innovation/New Business Investments
Aim to establish businesses which form the core pillars for the next generation of PERSOL.
JPY 2.5 billion in investments are scheduled for FY March 2020.

2.5

JPY
billion in investments
are scheduled for FY March 2020
(recorded as cost)

New Investments

Sha re ful l, Inc.

MIIDAS

Online candidate-job
matching platform

Directrecruiting

Cloud-based mobile Pointof Sale (POS) system

Transform existing businesses& establish new businesses

Service started at
March 2019

Sales CAGR*+176%

Sales CAGR*+96%

Contribution after
FY March 2020

Driving Structure

PERSOL INNOVATION CO., LTD.*×

Driving open innovation etc.
*April 2019~ spin-off PHD Innovation Promotion Division as a entity*MIIDAS: CAGR from FY Mar 17 ~ FY Mar 19

PERSOL INNOVATION FUND

Market research and investment activity etc.

POS+: CAGR from FY Mar 16 ~ FY Mar 19

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18

Part 3:Results Forecasts
FY Ending March 2020

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FY Ending March 2020: Consolidated Results Forecasts
Being the final financial year of the current Medium-term Management Plan,
the aim is for continued growth in results.
FY Mar 2020
Full Year Forecast*1

Growth Rate(*JPY 100 million)(%)

10,000+8.0

EBITDA*2

660

+10.1

Operating Profit

480

+8.8

Net Profit Attributable to
Owners of Parent

275

+12.9

[Reference] Net Profit Prior to
Amortization of Goodwill*3

361

+9.5

Sales

Dividends

30 Yen-*1 ：Assumed forex rate for FY2020/3 USD1=JPY 110.0, AUD1=JPY 80.0
*2 ：We expect the impact of applying IFRS16 in the PROGRAMMED segment (Impact is +1.9 billion yen assuming 1AUD=80 JPY)
*3 ：Net Profit Prior to Amortization of Goodwill：Profit attributable to owners of parent company ＋amortization of goodwill
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20

FY Ending March 2020 Forecasts: Temporary Staffing/BPO Segment
Sales growth will accelerate underpinned by strong demand and with a settling-down of the impact of revisions toJapan‘s Worker Dispatching (“Temp”) Act.

Sales

5,490
YoY +7.7%

Operating
Profit265
YoY +10.5%

Operating
ProfitRatio

4.8%
YoY +0.1points(Unit: JPY 100 million)

Productivity enhancements (create time for staff management & sales activity)

Point 1

• Accelerate the number of matches by expanding the deployment scope of the core “GENESIS” HRIS system,and establishing a new job/candidate matching center.
• Promote the division/specialization of tasks (expand contract work volume in Osaka center)

Stronger staff management ( move towards a standardized temp business structure model)

Point 2

• Settle on a “standardized temp business structure model” that focuses on the increase in workers on openended contract arrangements (maintain worker deployment ratios at high levels).
• Aim to support the personal growth of individual workers by implementing worker evaluations while lifting
wage levels.

Revisions to Japanese laws are being handled proactively

Point 3(handling the increase in workers on open-ended contracts and “same work same pay” transition)• Proactively support workers transitioning to open-ended contracts (open-ended contract worker headcount+5,000 headcount, aim for an increase in unit billing prices to the same level as the previous year)• Start communicating with client firms about handling the transition to the “same work same pay” principle.
(Scheduled to commence from 2Q during this FY)*Impact on temp businesses resulting from the number of w orking days in a given period. (YoY -1.3%, -3 days) 1Q:-3 days, 2Q:±0 days, 3Q:-1 day, Q:＋1 day

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21

FY Ending March 2020 Forecasts: Temporary Staffing/BPO Segment(Calculating the Impact of No. of Working Days)
Operating profit ratio of 5.3% after adjusting for impact of number of working days
and Post Merger Integration (PMI) costs. (Exclude M&A effect)
FY March 2020
Forecasts(Unit: JPY 100 million)

Impact of
No. of working days
(YoY -3 days)

PMI Cost(If none)

After
Adjustment

Sales

5,312

63

-

5,374

Operating
Profit

265

11

10

285

Operating
Profit
Ratio

4.9%

-

-

5.3%

*Sales are organic excluding M&A effect

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22

FY Ending March 2020 Forecasts: Recruiting Segment
Job-change market expansion boosts continuing high growth.
Ongoing diversification of “work” aims for multi-layering of services &advancement of business processe.

Sales

990
YoY +15.3%

Operating
Profit182
YoY +17.0%

Operating
ProfitRatio

18.4%
YoY +0.3points(Unit: JPY 100 million)

Point 1

Point 2

Point 3

Placement business enjoys continued high growth: +20％
• Provide overall support (not just piecemeal support) to individuals seeking to build careers.
• High growth of "doda plus" and improved productivity of consultants is giving rise to continued high growth.

Ongoing investment aimed towards multi-layering of services• Commence providing a new set of premium services (“iX”).
• Continue to invest in the media business (headcount, marketing, product investments).

Advancement of business processes• Investments aimed at utilizing technology in relation to selection processes and matching candidates/jobs.
• Advance and expand our services by utilizing BPR/RPA/AI.

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23

Review of PROGRAMMED (FY2019/3)
Australia's economy is growing albeit slower than long term average and the population
continues to expand.
Staffing experienced some weakness in demand, due in part to globalisation, online sales andautomation, reducing blue collar labour volumes in some industry sectors, but demand formaintenance is strong as more infrastructure gets built to service a growing population
Staffing market environment

Maintenance market environment•

Manufacturing, industrial, logistics and retailsectors are weaker due to a combination offactors including globalisation, online sales
and automation.

•

Large increases in public infrastructure
investment are forecast due to stable
population growth which leads to increased
maintenance opportunities over time•

Mining sector remains solid as production
expands.

••

Infrastructure, health, construction,
education and other sectors continue togrow.

Aging existing infrastructure requires
greater maintenance expenditures tomaintain thus expanding maintenanceservices demand overtime($ billion) Total Infrastructure Funding in Australia*
50

25

0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Forecast*Prepared by PHD from Infrastructure Partnerships Australia
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24

Review of PROGRAMMED (FY2019/3)
Staffing•••

In the Staffing business, demand in
manufacturing, industrial, logistics and retailsectors (42% of revenue) was weaker.
Mining sector was solid (22% of revenue)
and infrastructure, health, construction,
education and other sectors continue toexpand (36% of revenue).

A large contract ended in FY18.

343
329

4Q

1Q

FY18/3

332

332

332

2Q

3Q

4Q

FY19/3

Staffing Revenue (A$m per quarter)*

Maintenance••In the Maintenance business, some reduction in government related expenditurescompared to prior year however work in hand (total value of contracted revenue) has
increased steadily in past year.
Recent contract wins (eg airport and public housing) started contributing from 4Q.
295

284

4Q

1Q

FY18/3

297

295
276

2Q

3Q

4Q

FY19/3

Maintenance Revenue (A$m per quarter)**Management accounting based actual figures

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25

FY Ending March 2020 Forecasts: PROGRAMMED Segment
Focus on expand in growth sectors of the economy e.g. infrastructure, construction, mining,education and health; improved sales and marketing of the full value of our services; andbecome more efficient and easier to do business with through enhanced business systems
and increased use of technology

2,040

Sales

YoY +1.3%

Operating
Profit10
YoY +18.9%

Operating
ProfitRatio

0.5%
YoY +0.1points(Unit: JPY 100 million)

Point 1

Expand in growth sectors of the economy•

Focus on growth sectors of Infrastructure, Construction, Mining, Education, Health

Increased focus on selling the full value of our services

Point 2

Point 3•••

Improved sales to customers in staffing across branch network
Improve marketing and tendering as maintenance sales pipeline expands
Sell the value of safety, regulatory compliance, online tools and reporting and a large skilledworkforce

Improve business systems and use of technology••

Improve work efficiency, contract management and reporting
Launch online direct placement recruitment platform※Assumed forex rate for FY2020/3 AUD1=JPY 80.0
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26

FY Ending March 2020 Forecasts: PERSOLKELLY Segment
Continued high growth boosted by external factors.
Aiming for continuous growth by solidifying the business base.

Sales

840
YoY +10.4%

Operating
Profit10
YoY +82.2%

Operating
ProfitRatio

1.2%
YoY +0.5points(Unit: JPY 100 million)

Point 1

Point 2

Point 3Focus on priority areas and locations experiencing high GDP growth• Hold onto top market share in Singapore/Malaysia.
• Aim to increase market share in Indonesia, Vietnam, and Thailand.

Enhance productivity by deploying the ATS core system• Aim for improving profitability by improving productivity in countries where ATS is introduced.
• Deploy ATS in countries where not yet deployed.

Consolidation of business foundation for further growth• Formulate & implement common HR policies.
• Continually enhance governance & compliance structures.

※Assumed forex rate for FY2020/3 USD1=JPY 110.0
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27

FY Ending March 2020 Forecasts: ITO Segment
Commit to enhancing individual & organizational productivity via business process innovation.
Continue to improve treatment of employees while aiming to improve profitability.

Sales

420
YoY +24.8%

Operating
Profit24
YoY +41.0%

Operating
ProfitRatio

5.7%
YoY +0.7points(Unit: JPY 100 million)

Leverage product shifts to switchover to a high-revenue model

Point 1• Aim to become top RPA deployment vendor in the industry by using deployment experience strengths gained to date.
• Strengthen the alliance with the Temp/BPO Segment, and implement the diffusion of ‘digital labor’(RPA associates).

Continue investing in improving treatment of employees (JPY 700 million for the full year)

Point 2

• Focus on sustained growth by investing JPY 700 million this FY to lift employee retention.
• Whilst aiming to improve retention, aim to improve profitability by enhancing productivity.

Additional utilization of technology (“standard-bearer of digitalization”)

Point 3• Being a professional enhancer of productivity, digitalize the value-add provided to stakeholders fromoutsourcing/consulting outcomes amassed to date, and lift profitability.

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28

FY Ending March 2020 Forecasts: Engineering Segment
Leverage technical expertise as a means to expand the business sector, andaim to become the technical group of choice amongst technicians.

Sales

310
YoY +5.6%

Operating
Profit30
YoY +8.6%

Operating
ProfitRatio

9.7%
YoY +0.3points(Unit: JPY 100 million)

Point 1

Expand transactions with new & key client corporations• Use technical expertise as a means to increase diffusion of technology to other clients.
• Build a stable business base to expand the client portfolio so there is no reliance on a defined set of clients.

Expand development capabilities that drive business growth

Point 2

• Continue to actively recruit human resources by strengthening hiring capabilities and train engineers byproviding growth opportunities.
• Expand total development capacity by expanding transactions with partner companies

Acquire advanced technologies and promote technology accumulation

Point 3

• Accelerate acquisition and accumulation of various advanced technologies for motorization / unmanned
operation that is a cross-industry trend• Start responding to the automotive industry “CASE *” and strategically acquire AI, IoT, robotics technology, etc.

*CASE：A term for four technological elements to create new added value for automobiles, such as automated driving and mobility services.
”Connected, Autonomous, Shared, Electric”
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29

Appendix

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FY March 2019: Consolidated Results Summary

FY Mar 2018

FY Mar 2019

Unit: JPY 100 million
Full Year

Ratio (%)

Full Year

Ratio (%)

Growth (%)

Net Sales

7,221

100.0

9,258

100.0

+28.2

EBITDA*

480

6.7

599

6.5

+24.9

Operating Profit

360

5.0

441

4.8

+22.3

Net Profit Attributable to
Owners of Parent

77

1.1

243

2.6

+213.5*Figures are rounded dow n (as w ith follow ing pages)*EBITDA = Operating Profit + Depreciation + Amortization of Goodw ill (as w ith follow ing pages)
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31

FY March 2019: Summary by Segment
FY Mar 2019
Unit: JPY 100
million

EBITDANet Sales

Operating Profit

Full Year

Growth (%)

Full Year

Growth (%)

Full Year

Growth (%)

Temporary
Staffing/BPO

5,095

+5.9

279

+9.1

239

+8.5

Recruiting

858

+17.8

183

+28.8

155

+43.9

PROGRAMMED*

2,014

-

67

-

8

-

PERSOLKELLY

761

+15.7

13

+23.2

5

+388.6

ITO

336

+16.1

24

-15.0

17

-24.8

Engineering

293

+5.6

33

+12.9

27

+16.8

Other

57

+32.5

-4

-46.7

-5

-42.3

Adjustments

-158

-

2

-

-7

-

TOTAL

9,258

+28.2

599

+24.9

441

+22.3

*Figures are prior to elimination of internal transactions
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32

FY March 2019: Consolidated Balance Sheet
Unit: JPY 100 million

End of FY Mar
2018
Results
AssetsEnd of FY Mar 2019
Increase/
Decrease

Results

4,023

3,708

-314

Current Assets

2,305

2,098

-207

Non-current Assets

1,717

1,609

-107

2,423

1,999

-424

2,171

1,449

-721

252

549

297

1,599

1,709

109

1,455

1,555

100

144

153

8

Liabilities
Current Liabilities

Non-Current Liabilities
Net assets
Equity capital
Non-controlling interests

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33

FY March 2019: Consolidated Cash-flow Statement

Unit: JPY 100 million

End of FY Mar
2018

Results

End of FY Mar 2019
Increase/
Decrease

Results

Cash flow fromoperating activities

350

423

73

Cash flow from
Investment activities

-667

-151

515

Cash flow fromfinance activities

501

-481

-983

Increase (decrease) in cash &cash equivalents

201

-205

-407

Balance of cash & cash
equivalents etc. at end of period

895

689

-205

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34

FY March 2019 : Dividend

FY Mar 2018

FY Mar 2019

Unit: JPY

Dividendper Share

Dividend Ratio（Consolidated）

InterimYear-end

InterimYear-end

9 yen

10 yen

10 yen15 yen

57.1%

24.0%

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35

FY March 2020 Consolidated forecasts
Unit: JPY 100 million

FY Mar 2020 Forecast
1st half

Ratio
（％）

Growth（％）

Full Year

Ratio
（％）

Growth（％）

Net sales

4,835

100.0

+6.9

10,000

100.0

+8.0

EBITDA

302

6.2

+7.1

660

6.6

+10.1

Operating Profit

213

4.4

+4.1

480

4.8

+8.8

Net Profit
Attributable to
Owners of Parent

120

2.5

+0.1

275

2.8

+12.9

[Reference] Net
Profit Prior to
Amortization of
Goodwill

163

3.4

361

3.6

+9.5

-

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36

FY March 2020 Consolidated forecasts ：Net Sales by Segment
Unit: JPY 100 million

FY Mar 2020 Forecast

Growth（％）

1st half
Temporary Staffing/BPO

Growth（％）

Full Year

2,656

+6.9

5,490

+7.7

470

+14.5

990

+15.3

PROGRAMMED

1,005

-1.9

2,040

+1.3

PERSOLKELLY

410

+13.5

840

+10.4

ITO

194

+26.2

420

+24.8

Engineering

145

+6.2

310

+5.6

Other

50

+90.9

110

+91.3

Adjustments

-95

-

-200

-

4,835

+6.9

10,000+8.0

Recruiting

TOTAL*Figures are prior to elimination of internal transactions

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

37

FY March 2020 Consolidated forecasts ：EBITDA by Segment
Unit: JPY 100 million

FY Mar 2020 Forecast

Growth（％）

1st half

Growth（％）

Full Year

Temporary Staffing/BPO

136

+4.6

304

+8.9

Recruiting

106

+18.6

222

+20.8

PROGRAMMED

41

+28.3

84

+25.0

PERSOLKELLY

7

-2.9

15

+11.2

ITO

10

+22.7

31

+24.5

Engineering

14

+19.2

35

+3.9

Other

-6

-85.9

-11

-56.6

Adjustments

-6

-

-20

-

302

+6.7

660

+10.1

TOTAL
*Figures are prior to elimination of internal transactions

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

38

FY March 2020 Consolidated forecasts ：Operating Profit by Segment
Unit: JPY 100 million

FY Mar 2020 Forecast
Growth（％）

1st half

Growth（％）

Full Year

Temporary Staffing/BPO

117

+5.3

265

+10.5

Recruiting

87

+15.1

182

+17.0

PROGRAMMED

3

+37.3

10

+18.9

PERSOLKELLY

4

+11.9

10

+82.2

ITO

7

+53.5

24

+41.0

Engineering

11

+25.2

30

+8.6

Other

-6

-79.5

-13

-57.0

Adjustments

-10

-

-28

-

TOTAL

213

+4.1

480

+8.8

*Figures are prior to elimination of internal transactions
Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

39

40

Strategy 3: Priority Policy - Expand Group Synergies
Deepen linkages within the Group, and aim to grow results generated by cooperation within the Group

Results from cooperation
within the Group

Number of companies using
multiple services

TEMPSTAFF × DODA

Linkages within the Groupare deepening.
Sales CAGR increased by 22%
during FY2017/3~ FY2019/3.

Temp labor, placement services, BPO etc.
The number of client firms using multiple
services is steadily increasing.

Number of TEMPSTAFF branches
Japan-wide that utilized job change
support has increased.

Sales trends due to opportunities
introduced from within the Group

Trend of number ofcompanies using multiple services

Job-change support sales trends
due to intra-Group cooperative effort

Over 10,000
companies

Will continue toexpandSales CAGR
+22%
(JPY million)(Companies)(JPY million)

12,00010,0997,000

300

temporarily decreasing because
In September 2018, due to theincrease in tasks related to therevision of labor law,PERSOLTEMPSTAFF was not able toallocate enough time for business

6,000
8,000

5,000

200

6,679

4,000
3,000

100

4,000

2,000
1,000

0

0

2016年4月
Apr 2016

0
FY2017/3
2017/3期

FY2018/3
2018/3期

FY2019/3
2019/3期

Sep 2017
2017年9月

Sep 2018
2018年9月

2017年4月
Apr 2017

2018年4月
Apr 2018

Mar 2019
2019年3月※ Along with the change in the data aggregation
method, we changed the number described in theearnings briefing materials dated Nov 12, 2018

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Legal Revisions are Anticipated during FY Mar 2020
Less impact compared to changes in FY March 20192019/3 Results
Open-ended
contract temp
worker headcount(Cumulative total*1)

Client corporations
hire directly

New temp clients

Total of temp workers
subject to law change

2020/3 Forecasts

Approx.

Approx.

10,000 headcount

5,000 headcount

(40％)

(42％)

Approx.

Approx.

4,000 headcount

2,000 headcount

(16％)

(17％)

Approx.

Approx.

11,000 headcount

5,000 headcount

(44％)

(42％)

Approx.

Approx.

25,000 headcount

12,000 headcount(100％)

Aim for an increase in unit
billing prices to the samelevel as the previous year
Stable supply of temps toclient corporations
Growth of placement fee
earnings

Provide employment
support for a smoothtransition to subsequent
temp assignments(100％)*1: Numberof temporary w orkers w ho transitioned to open-ended employment contracts as a consequence of revisions to Japan's Labor Contract Act and Japan's Worker
Dispatching ('Temp') Act (excludes 2,600 open-ended contract temps w ho previously transitioned).

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41

Outline of “same work same pay”
To eliminate the unfair treatment difference between regular and non-regular employees
Implemented in April 2020 for large companies and April 2021 for SMEs 1*①Basic salary +bonus

Part-time workers
Fixed-term workers

Temporary workers(Excluding temporary
workers)

Even and balanced at“Dispatchedcompany”（Dispatched company equal& balanced method）

Align to regular
employees(Consider ability,
experience,
performance, years ofwork, degree ofcontribution, etc.)②Various
allowances*3③Welfare, education& training *4

Align to regular
employees

Align to regular
employees

Align to regular
employees of
temporary staffing
agencyAlign to regular
employees of
temporary staffing
agencyChoose one

Even and balanced at“temporary staffing
agency”（Labor-managementagreement method)"Average wage ofgeneral workers
engaged in similar
work"*2 or more

*1：For part-time workers and fixed-term workers, total amount of capital or total investment is less than 300 million yen (less than 50 million yen for retail business orservice industry, less than 100 million yen for wholesale business), or 300 workers or less always used (retail Less than 50 in the case of industry, less than 100 in thecase of wholesale or service industry)*2：Determined based on wages by type of work, ability, experience, and wage differences by region (※ The Ministry of Health, Labour and Welfare plans to notify thewages of each type of work from June to July every year)*3：Positional allowance, full-time allowance, overtime allowance rate, late-night / holiday allowance increase rate, commuting allo wance, business trip expenses, meal
allowance, single-person leave allowance, community allowance, etc.
*4：Corporate housing for transferees, Keio leave, sick leave, non-legal paid leave or other leave, education and training, etc. (※ Give equal opportunity to use lunch
Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.
facilities, break rooms, changing rooms at the dispatch destination)42

Acquisition of Avanti Staff Corporation shares (conversion into a subsidiary)
We aim to further enhance corporate value by utilizing a client base such as Fuyo Group and the know-how
of financial affairs and trade affairs cultivated by Avanti staff and the know-how relating to soliciting job
seekers by PERSOL group
Outline of share acquisition

Corporate Profile

Avanti Staff Corporation

Established in September 1984
Expand Temporary staffing business,placement/recruitment business,outsourcing business, training businesswithin domestic Japan.

Aims

Expand theclient base…

Enhancespecialization…

Expand the so-called'Fuyo Group' client base ofMizuho Banking Ltd. andMarubeni Corporation.

Strengthen handling knowhow in specialized roles suchas trade support and financeadministration .

Transaction Outline

Sales JPY 18,366 million, Operating profit
JPY 271 million (FY Mar 2018 results)
Share transfer data : 31 Jan 2019

Acquisition: 92.52% of fully issued shares
Begin to be reflected in results:
from 4Q of FY Mar 2019.
(Temporary Staffing/BPO Segment)

Leverageknow-how insoliciting job
seekers…
Focus on leveraging PERSOLGroup’s business platform &know-how in soliciting jobseekers.

*For further details, please refer to the timely release "Announcement regarding acquisition of Avanti Staff Corporation shar es (conversion into a subsidiary)" made on 21 Dec 2018.
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43

Attention: Note Regarding Handling of this Material

Results forecasts etc. used in this material contain forward-looking statements
which are based on a certain number of assumptions PHD deems rational,
and the information at hand as of 15 May 2019 which are not meant in any
way by PHD to be assurances that plans 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 stock forming the JPX-Nikkei 400 Index composition
What is the JPXNikkei 400?

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

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44