To Shareholders and InvestorsPERSOL REPORT
Full-year business report for the
fiscal year ended March 2019
April 1, 2018 to March 31, 2019

PERSOL HOLDINGS CO., LTD.
(Securities code: 2181)

Work, and SmileMessage from Management
Overview of FY 2019

Work, and Smile
PROFILE

Masamichi Mizuta
Representative Director,
President and CEO

1

Joined Tempstaff Co., Ltd. (presently, PERSOL TEMPSTAFF CO., LTD.) in 1988.
Became Head of the Sales Headquarters and Director in 1995, Head of the East
Japan Sales Headquarters and Executive Managing Director in 2006, Executive
Vice President in 2010, and Executive Vice President and Representative Director
in 2012. He has been in charge of the sales division throughout his career.
In 2013, he assumed the post of President and Representative Director. He has
also served as Chairman of the Japan Staffing Services Association, and Chairmanof the Japan Association of Human Resources Services Industry.
His motto is “Little Things Make a Big Difference.”

While a sense of uncertainty about the future has
been widespread in Japan in response to theincreasing uncertainty in the world economy, thestaffing services market continued todemonstrate strong demand on the back of thestructural labor shortage. Under this market
environment, the PERSOL Group achieved net
sales of 925.8 billion yen and operating incomeof 44.1 billion yen in the consolidated fiscal year
under review, mostly driven by the corebusinesses of temporary staffing and recruitment
support as well as the PERSOLKELLY businessoutside Japan.
In the consolidated fiscal year under review,
PERSOL TEMPSTAFF CO., LTD. in the Temporary
Staffing/BPO segment acquired shares of AvantiStaff Corporation, converting it into a subsidiary.
Avanti Staff Corporation is a staffing services
company with customer bases centering on the
Mizuho Group and the Marubeni Group andknow-how on clerical work in the financial andtrade industries. We will further improve
corporate value by combining the company’s
expertise in attracting job seekers with the
management base of PERSOL TEMPSTAFF.

technology, we pursue further growth of the existing businesses in terms of the
improvement of precision in matching. Moreover, we will take on the challenge ofcreating new value with a 10- or 20-year outlook.
In April 2019, we established a new company, PERSOL INNOVATION CO., LTD.,
as a driver for creating businesses that will become cornerstones for future
generations and promoting innovation development. We will endeavor to cultivate
new businesses and reform the existing businesses more effectively than everbefore, and develop businesses at a speed exceeding that of startup businesses.
It should be noted, however, that the staffing services business has a significant
component that can only be supported by actual humans. That is, only humanbeings can predict the degree to which workers will be a good fit for a company, or
give advice from the people side. Going forward, we will continue to increase theappeal of human workers, and pursue the value of human intervention.

Seeking a society in which everybody can realize the slogan“Work, and Smile”

In pursuit of the value of humanintervention through the use oftechnologies

Creativity to generate new value as well as adaptability to respond to new
developments are indispensable for a company to continue to grow in these timesof dramatic change. We believe that their source can be found in the diversity of acompany’s workforce. Under the slogan “Diversity, Inclusion & Equality”* (“DI&E”),
the PERSOL Group acknowledges the diversity of the employees of its Group
companies, and has started to work toward promoting diversified work styles andsupporting various career paths. As part of these initiatives, we lifted the ban on
the parallel work system and organized a flexible working system in April 2019.
Underlying these initiatives is our wish that we, as a staffing services business
operator, will become a role model for both companies and working people bytaking the lead in implementing diversified work styles. Going forward, the PERSOLGroup will continue to work to realize a society in which all people can materialize
our slogan, “Work, and Smile,” by respecting the diversity of working people andsupporting each person in his or her work.

The evolution of technology contains unrevealedpossibilities for the dramatic transformation of
the staffing services business. By positively using* Diversity: Equal opportunity of employment, diversified work styles, etc.
Inclusion: Comprehensiveness and respect for individuals
Equality: Equal treatment in terms of rights and benefits

Financial Highlights(Highlights of the consolidated
fiscal year ended March 2019)

Record-high performance in both
net sales and operating income
Net sales

Operating income

925.8 billion yen 44.1 billion yen
UP 28.2 % Y-O-Y
UP 22.3% Y-O-Y
Profit attributable toowners of parent

24.3 billion yen
UP 213.5 % Y-O-YInterim dividend
per share

15 yenOperating income (Billion yen)
44.1
33.4

36.0

28.0
925.8
Net sales (Billion yen)
517.5

FY ended
March
2016

48.0

1,000.0

722.1

591.9

FY ended
March
2017

FY ended
March
2018

FY ended
March
2019

FY ending
March
2020
(Forecast)2

Topics

New advertisement for “PERSOL: General Manager of Japan’s
Human Resources Dept.” campaign launched in April.

As accepted work style practices and hiring needs change,
the PERSOL Group has accelerated its initiative to create new businesses.
Aiming to realize further growth, new services have been launched.

Press conference for public presentationof the new commercial

A giant business card was presented
by Deputy President Takahashi tocelebrate Mr. Uchimura becoming
our celebrity spokesman.

Informally appointed employees of PERSOLGroup companies are keenly asking Mr. Uchimura
several questions, such as “What type of people
do you want to work with?”“MIIDAS” is a new type of mid-career recruitment
service platform developed by the PERSOLGroup with the aim of responding to the needs ofcorporate customers wishing to efficiently securecompetent human resources. Customers candirectly approach job seekers efficiently and for a
low cost. This platform offers enhanced support to reduce man-hours for bothcompanies and job seekers. As of March 2019, the number of registered job
seekers exceeded 250,000, and more than 40,000 companies ranging from large
corporations to small and medium-sized companies and venture capital firms
have used this platform. In May 2019, a new matching function was released
based on the MIIDAS aptitude tests, which diagnose competency andpersonality. MIIDAS will perform matching from new perspectives in addition to
the use of work experience and information on skills.

Direct approach system

Matching job seekers“PERSOL: General Manager of Japan’s Human Resources Dept.” will totallytransform work in Japan.

The TV commercial shows the names of our service brands and impressive poses of the “General
Manager of Japan’s Human Resources Dept.” that you won’t be able to resist mimicking.

Since the birth of the PERSOL brand in July 2016, we have widely shared with society our wish to stand by all working
people by demonstrating our slogan, “Work, and Smile.”
In our new promotion, Mr. Uchimura,* who is widely viewed across Japan as the ideal boss, appears as our celebrity
spokesman. This promotion expresses our strong desire as one of the largest comprehensive staffing services companies in
the country to be the “general manager of the HR Dept. of Japan” that supports all aspects of working.
For the purpose of improving brand awareness as well as ensuring a better understanding of our services, we will share
our intention to assist our customers through a wide array of services offered in Japan and abroad by temporary staffing
services company Tempstaff, job information website “an” for temporary and part-time workers, and the job-changing
support service “doda,” as well as IT outsourcing, design and development, etc. At the same time, we will work harder thanever to realize our slogan, “Work, and Smile.”

3

Just register
the search conditions
for your target personnel.

NEW!

Matching job seekers

The system makes
an automatic approach
to all of them.
The system also makes
an immediate automatic
approach to newly
registered job seekers.

40,000 companies* Voted no. 1 for three consecutive years in
the “My ideal boss” questionnaire survey(by Meiji Yasuda Life Insurance Company).

Company’s needs• Secure personnel
in preparation for
massive order receipt.
• Reduce the work volume of
employees.
• Fill-in for part-time worker
absent for one day, etc.

What
Sharefull
can offer

Company side

STEP 1.

Member registration

STEP 1.

Member registration

STEP 2.

Registration ofschedule

STEP 2.

Registration ofrecruitment

STEP 3.

Automatic matching

STEP 3.

Automatic matching

STEP 4.

Employed

STEP 4.

A worker is secured.

have used MIIDAS.

50,000Please scan the above
QR code to viewthe commercial.

Individual’s needs• I want to earna little more money
in my free time.
• My hours were reduced.
• I want to work in my free time
while taking care of my children.

Job seeker side

Actual number of companies
that introduced MIIDAS As of March 2019, almost(Number of companies)

As life plans change and diversify, the ways in which people work has also beenchanging significantly. It is no longer the norm for people to spend their entire
career working for one company, and the realization of work styles that can becustomized to the individual as well as a sharing of the labor force acrossJapan are required. In view of this situation, the PERSOL Group has begun tooperate “Sharefull,” an on-demand matching platform specializing in shorthours and short-term contracts to connect individuals seeking flexible working
hours with companies wishing to utilize human resources only as needed andfor specific tasks. Under the slogan “Convert your spare time into money,”
Sharefull is aiming at realizing a society in which different work styles can beselected irrespective of employment status and social practices.

40,00030,000The Sharefull matching platform connects
a job seeker to a company.

20,00010,000
0

2016
Jan.

July

2017
Jan.

June

Oct.

2018
Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

2019
Jan.

Feb.

Mar.

4

Feature Column

Diversity, Inclusion & Equality“Differences” give rise
to future possibilities.
Why PERSOL takes aggressive
steps to promote diversity.
The PERSOL Group has promoted its “Diversity,
Inclusion & Equality” (“DI&E”) initiative since April 2019
for the purposes of promoting various work styles
and supporting various career paths.

Background to the birthof PERSOL’s DI&E
The PERSOL Group has been active in increasing
staff on the back of business expansion andexchanging human resources among its Group
companies through the “Career Challenge” internal
recruitment system. We believe that a corporate
culture of understanding and embracing thesensibilities, ways of thinking and position of all of
our staff members with their different values isessential for each person to better demonstrate theircapabilities. Upholding the brand slogan of “Work,and Smile,” the PERSOL Group has decided to takeon the challenge of creating organizations in which
diversity is accepted and various types of people canmake active contributions.

What is the PERSOL DI&E SPIRAL?
The PERSOL Group looks at diversity from the three perspectives of“Attributes,” “Values” and “Capabilities.” The starting point is understanding
the differences we have in terms of Attributes, such as gender, age andnationality. Based on that, we will build an environment in which individuals canlive their best lives by understanding the different Values we hold, such as ourviews on life, family and career, and by accepting these differences. Under thesecircumstances, if we further develop and use our Capabilities, such as ourknowledge, skills, discernment and experience, we will come up with new ideas
and acquire new wisdom that will change the way existing services are provided
and help us create new services. We seek to establish our corporate culture bymaterializing our Group vision, thereby enhancing and accelerating synergies ofour diverse capabilities to create positive cycles.

New wisdom
is acquired.
Acceptthe diversityof values.

Enhanceexisting services
and create
new services.

Make the mostof the diversityof capabilities.
Realizethe vision.
Materialize
the management
philosophy.

Introduction of the “Parallelwork” system
Implemented with the aim offacilitating personal growth andreturning experience, a sense ofvalue and skills to society.

Promotion of flexible working
Introduction of flexible working
systems such as flextime

What PERSOL can dofor society

PERSOL DI&E SPIRAL

Understandthe diversityof attributes.

Case studies of the initiatives basedon the concept of DI&E

The human resources policy of the PERSOL Group advocatesthe “ADVANCED HR SHOWCASE,” meaning the creation of
forward-thinking models in the HR domain. In order to realize
a society in which various types of people can participate, thePERSOL Group will take the lead, and will share stories of our
successes—as well as the difficulties we experienced—with
our customers and others. By doing so, we will disseminate
our experiences.

For further details of our initiatives based on the concept of “Diversity, Inclusion & Equality,” please scan the QR code on the right.

56

Overview of the Consolidated Business Results and Sales by Business Segment

Net Sales
Amid the mild recovery trend in theJapanese economy, the human resource
services market as a whole showed arobust growth trend, with significant
demand due to the labor shortage.
The PERSOL Group witnessed strong
performance in each human resource
service business, notably growth in thenumber of employment contracts forrecruitment support business.
Furthermore, reflecting the brisk market
environment in APAC countries, thePERSOLKELLY segment grew steadily.
Due to the addition of the PROGRAMMED
segment, net sales for the consolidated
fiscal year under review grew 28.2% year
on year to 925.8 billion yen.

UP 28.2%(Billion yen)

925.8

1,000.0

800.0

Full-year

722.1

600.0

400.0

200.0

0

FY ended
March
2018

FY ended
March
2019

(Billion yen)

PERSOLKELLYITOEngineering

segment

segment

segment

segment

segment

segment

Demand continued to be at a highlevel, reflecting robust corporate
performance and a structural labor
shortage. This contributed to thegrowth in net sales to 509.5 billion
yen. Operating income reached23.9 billion yen, mostly due to theincrease in referral fees following
the revision of related laws
requiring our corporate customers
to employ workers directly, as wellas our efforts for cost control
including selling, general andadministrative expenses despite
the increase in costs arising fromthe integration of subsidiaries.

Net sales rose significantly to
85.8 billion yen as a result of anincreased number of concluded
employment contracts, mainly inthe recruitment support
business, driven by strong needs
for human resources. The
increase in net sales exceeded
the cost for reinforcement ofsales systems, such as marketing
expenses arising from therebranding of “doda” andpersonnel investments, resulting
in a significant rise in operating
income to 15.5 billion yen.

Net sales were 201.4 billion yen,reflecting the contribution oforders received from airports
and university-related facilities
despite the decrease in orders
received from existingcustomers amid the changing
competitive environment of thestaffing services business.
Meanwhile, operating income
was 800 million yen as a result of
reducing operation costs.

Net sales increased to 76.1 billion
yen as a result of the aggressive
expansion of sales systems forthe brisk market environment in
the APAC region. Operating
income increased to 500 million
yen due to growth in services
centering on recruitment support,
overcoming an increase in laborcosts that was attributable to theimprovement of systems, etc.

Net sales increased to 33.6 billion
yen as a result of the hiring ofengineers in response to robust
demand, including growing
corporate system investments.
Operating income was 1.7 billion
yen, reflecting the increases incosts for improvements oftreatments and expenses
required for aggressive businessexpansion.

Net sales grew to 29.3 billion yen
as a result of robust orders
received from corporate customers
on the back of favorable demands
for development centering on
automobiles and construction
machinery-related industries.
Operating income also increased
to 2.7 billion yen, supported bysteady growth in orders
received.

UP 5.9%(Billion yen)

UP 17.8%

Net Sales(Billion yen)

481.0

509.5

72.8

Full-year

44.1

Net Sales

Net Sales(Billion yen)(Billion yen)

85.8

UP 22.3%

201.4

FY ended
March
2018

FY ended
March
2019

FY ended
March
2018

FY ended
March
2019

UP 16.1%(Billion yen)

65.7

Full-year

Net Sales

Net Sales

UP 5.6%(Billion yen)

76.1

28.9

Full-year

33.6

27.7

29.3

FY ended
March
2018

FY ended
March
2019

Full-year

54.5

Full-year

Full-year

UP 15.7%

FY ended
March
2018

FY ended
March
2019

FY ended
March
2018

FY ended
March
2019

FY ended
March
2018

FY ended
March
2019

36.0
Operating
Income30.0

UP 8.5%(Billion yen)

20.0
Full-year

Operating
Income22.1

23.9

FY ended
March
2019

FY ended
March
2018

FY ended
March
2019

Operating
IncomeOperating
Income(Billion yen)(Billion yen)

10.8

FY ended
March
2018

0.5

Full-year-0.5

Operating
IncomeDOWN 24.8%(Billion yen)

Full-year

FY ended
March
2019

Full-year-0.1

FY ended
March
2019

Operating
IncomeUP 16.8%(Billion yen)

2.2
1.7

FY ended
March
2018

FY ended
March
2018

FY ended
March
2019

UP 388.6%

0.8

15.5
Full-year

FY ended
March
2018

UP 43.9%(Billion yen)

10.0

0

7

PROGRAMMED

Full-year

50.0

40.0

Recruiting

Net Sales

Operating Income
Despite the increase in costs for the
integration in the Group, including theconsolidation of subsidiaries in the
Temporary staffing/BPO segment, we
strived to improve productivity and raised
invoice unit prices in the temporary
staffing/BPO. Highly profitable
recruitment support business grewsignificantly in both the Recruiting and
the PERSOLKELLY segments. As a result,operating income grew 22.3% year on
year to reach 44.1 billion yen.

Temporary Staffing/BPO

FY ended
March
2018

FY ended
March
2019

Full-year

2.3

FY ended
March
2018

2.7

FY ended
March
2019

8

Net Profit, Dividends and Balance Sheet

Profit Attributable to
Owners of Parent
Profit attributable to owners of the parent company for the fiscal
year ended March 2019 was 24.3 billion yen, a year-on-yearincrease of 213.5%, due to the increase in operating income.
(Billion yen)UP

213.5%
24.3

25.0

Full-year

20.0

Information

Balance Sheet(Billion yen)

POINT 1
Short-term loans payable
were partly repaid in cash,
and the remaining balance
was refinanced bylong-term loans payable
by issuing corporate bonds(converting into long-termloans payable).

15.0

POINT 27.7

10.0

Decreases due toamortization and foreign
currency translation

5.0
0

FY ended
March
2018

FY ended
March 2018

First
six-month
period

9.00

Year-end

10.00

FY ended
March 2019

10.00

POINT 3Company Name:PERSOL HOLDINGS CO., LTD.

● Authorized number of shares ............. 720,000,000

Established:

October 1, 2008

● Total number of shares issued ........... 236,704,861

Head Office:1-15-5 Minami-Aoyama,
Minato-ku, Tokyo, Japan● Number of shareholders ............................. 10,480

Assets

402.3

370.8

(31.4)

Registered Head
Office:2-1-1 Yoyogi, Shibuya-ku,
Tokyo, Japan

1 Current assets

230.5

209.8

(20.7)

Type of Business:

Cash and deposits

89.6

69.0

(20.5)

Non-current assets

171.7

160.9

(10.7)

Management planning,
administration and operations
related to subsidiary andgroup companies that handle
temporary staffing andplacement services

Trademark andgoodwill

113.2

101.8

(11.4)

Capital:Liabilities

242.3

199.9

(42.4)

Members of the Board (As of March 31, 2019)

1 Current liabilities

217.1

144.9

(72.1)

2

89.9

15.0

(74.8)

1 Non-current liabilities

25.2

54.9

29.7

Long-term loans
payable

15.7

25.7

10.0

3

159.9

170.9

10.9

Shareholders’ equity

145.5

155.5

10.0

Capital stock

17.4

17.4

0

Capital surplus

20.1

20.3

0.2

Retained earnings
Non-controllinginterests

105.9

125.6

19.6

14.4

15.3

0.8

15.00

Please visit our website for more detailed IR information.
The website of PERSOL HOLDINGS: https://www.persol-group.co.jp/

9(As of March 31, 2019)

ChangeNet assets

Increases due togrowth of profits

Stock Information

March 31,2019

Current portionof long-termloans payable

Based on our dividend policy, we had planned to pay a
year-end dividend of 10 yen per share for the fiscal year
ended March 2019. However, in consideration of the businessperformance and financial conditions, etc. as a whole, we havedecided to increase the dividend by 5 yen per share to 15 yen
per share.

(As of March 31, 2019)

March 31,2018

FY ended
March
2019

Dividend per Share(Yen)

Company Profile

17,479 million yen● Major shareholders

Name of shareholder

Yoshiko Shinohara
The Yoshiko Shinohara
Memorial Foundation

Distribution of Shareholders(As of March 31, 2019)(Shares)

Financial institutions

Treasury stock

53,060,435 (22.42%)

2,679,081 (1.13%)

Financial
instrumentbusiness
operators

Individuals,
others49,831,667(21.05%)

Shareholding
Numberratio (%)
of shares held

26,331,600

11.25

2,206,096(0.93%)

Foreigncompanies,
etc.

Other
companies,etc.

97,589,923(41.23%)15,800,000

31,337,659(13.24%)

6.75* The shareholding ratio (%) is rounded off to the second decimal place.

Chairman Emeritus

Yoshiko Shinohara

Representative Director,
President and CEO

Masamichi Mizuta

Director, Deputy President,
and COO

Hirotoshi Takahashi

Director, Senior
Executive Officer

Takao Wada

Director, Executive Officer

Toshihiro Ozawa

Director, Executive Officer

Kiyoshi Seki

External Director

Ryosuke Tamakoshi

External Director

Peter W. Quigley

Director

Hiroshi Shimazaki

External Director

Naoshige Shindo

External Director

Naohiro Nishiguchi

External Director

Chisa Enomoto

Executive Officer

Daisuke Hayashi

Executive Officer

Hirotaka Mino

Executive Officer

Taro Mineo

Executive Officer

Takayuki Yamazaki

Executive Officer

Koichi Yokomichi

Executive Officer

Mikio Miyamura

Executive Officer

Kazunari Kimura

Executive Officer

Toshiyuki Takakura

Executive Officer

Shinji Masaki

Executive Officer

Yu SenooJapan Trustee Services
Bank, Ltd. (Trust Account)

12,073,700

5.15

The Master Trust Bank ofJapan, Ltd. (Trust Account)

11,786,300

5.03

Kelly Services Japan, Inc.

Shareholder Information

9,106,800

3.89

JP MORGAN CHASEBANK 385632

6,978,193

THE CHASE MANHATTANBANK 385036

4,232,500

1.80

Yoshimi Shinohara

4,228,400

1.80Japan Trustee Services
Bank, Ltd.
(Trust Account No. 5)

3,748,900

1.60

MUFG Bank, Ltd.

3,696,000

1.57

2.98

* The shareholding ratio is calculated based on the number of shares(234,025,780) obtained by deducting the number of shares in thetreasury stock from the total number of shares outstanding.
* The shareholding ratio (%) is rounded down to the second decimal place.

Business year

From April 1 to March 31 of the following year

Annual general meetingof shareholders

Late June

Record dates

Annual general meeting of shareholders: March 31
Year-end dividend: March 31
Interim dividend: September 30

Administrator ofshareholders’ register
Special accountmanagement institution

Mitsubishi UFJ Trust and Banking Corporation

Contact

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
1-1 Nikko-cho, Fuchu City, Tokyo 183-0044, JAPAN
Telephone; 0120-232-711(Toll free available only in Japan)
URL https://www.tr.mufg.jp/daikou/

Stock listing

Tokyo Stock Exchange, First Section

Public notices

Electronic public notice
The website of the public notice:https://www.persol-group.co.jp/(If electric public notices are not possible due toaccidents or other unavoidable circumstances,announcements will appear in the Nihon Keizai
Shimbun newspaper.)10

Procedures for Shares
Shares registered in the accounts of securities companies
Contact

Procedures, inquiries, etc.
Inquiries about the sending and returning of mails
Inquiries about dividends after the expiration of the payment period
General inquiries about administrative work relating to shares

Administratorof shareholders’registerProcedures and inquiries other than those stated above, such aschanges in address, name, etc.

Please contact your securities company.

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
1-1 Nikko-cho, Fuchu City, Tokyo 183-0044, Japan
Telephone: 0120-232-711 (Toll free available only in Japan)

Securities registered in the special accountProcedures, inquiries, etc.

Contact

Requests for transfer from a special account to a general account
Changes in address, name, etc.
Inquiries about account balance
Designation of method for receiving dividends(*)

Special accountmanagement
institution

Inquiries about the sending and returning of mails
Inquiries about dividends after the expiration of the payment period
General inquiries about administrative work relating to shares

Administratorof shareholders’register

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
1-1 Nikko-cho, Fuchu City, Tokyo 183-0044, Japan
Telephone: 0120-232-711 (Toll free available only in Japan)
Method for requesting procedural documents
Download documents online: https://www.tr.mufg.jp/daikou/(*) Shareholders holding shares registered in the special account may not choose the method of receiving dividends in proportion to the number of shares held.

PERSOL HOLDINGS was selected as a component of the JPX-Nikkei Index 400 in August 2014.
What is the JPX-Nikkei
Index 400?

It is a new stock price index composed of stock of companies that meet the requirements of global investment standards,
including the effective use of capital, an investor-conscious management viewpoint, etc., which was established with theaim of promoting the attractiveness of Japanese companies to both investors at home and abroad.

PERSOL HOLDINGS CO., LTD.
PERSOL Minami-Aoyama Bldg., 1-15-5 Minami-Aoyama, Minato-ku, Tokyo, Japan Telephone: +81-3-3375-2220* Matters stated in this report include statements concerning the Company’s plans and forecasts for the future. Actual earnings may differ materially from the statements due
to a variety of factors, and the statements do not mean that we promise to achieve these figures.

All people pictured on the front cover are employees of the PERSOL Group (as of March 2019).

This printed product uses FSC®-certified paper andvegetable-oil-based ink.