Consolidated Financial Resultsof 3rd quarter of the Fiscal YearEnding in March 2021
(FY2020 Q3)PERSOL HOLDINGS CO., LTD.

February 12, 2021

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Today’s Agenda

1. Financial Results for Nine Months Ended December
2020
2. Full-Year Financial Forecasts for FY2020

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1

Highlight
Financial Results for Nine Months Ended December 2020
Point 1•

As in the first half of FY2020, sales and operating profit of the entire Groupdeclined because sales decreased in Career SBU under the influence of therestraint of hiring by companies due to COVID-19 although sales ofStaffing SBU and Professional Outsourcing SBU increased.

Full-Year Financial Forecasts for FY2020•

Point 2

Due to unpredictable impact of a state of emergency, full year forecasts
remain unchanged as follows:
net sales are 940 billion yen,operating profit is 25 billion yen andnet profit attributable to owners of parent company is 14.5 billion yen.

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2

Summary of Financial Resultsfor Nine Months Ended
December 2020

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Financial Results for Nine Months Ended December 2020
As in the first half of FY2020, sales and operating profit of the entire Group declined because sales
decreased in Career SBU under the influence of the restraint of hiring by companies due to COVID-19
although sales of Staffing and Professional Outsourcing SBU increased.
(million yen)

Nine Months ended December
2019

2020

(Reference)
Full-Year Forecasts

YoY(%)Net sales

721,160

703,838-2.4％

940,000

Operatingprofit

28,40322,308-21.5％

25,000OP Margin

3.9%

3.2%

-0.7pt2.7%

EBITDA

41,35835,119-15.1％

41,700Net profit*-654

12,817ー

14,500Adjusted EPS

95.80

81.61

-14.8％

98.66

(yen)

* Net profit attributable to owners of parent company
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4

Sales by SBU for Nine Months Ended December 2020
(million yen)Staffing
CareerProfessional
Outsourcing
Solution
Asia Pacific(APAC)
Other
Adjustment

Nine Months ended December
2019379,306
63,92376,984
5,045

Comment (YoY)

2020

394,369• Sales increased due to unit billing rates raised in response to “equal pay
for equal work” although the number of active staffs turned to decrease.
• Sales in the BPO area increased as a result of an increased number oforders.

43,310• Sales decreased significantly because companies were continuously
refraining from hiring due to COVID-19, in addition to termination of“an” business (in Nov. 2019).

82,377• IT area maintained high growth with strong demand.
• Sales in the engineering area declined due to the impact of clientcompanies’ cutting their development budget, but there is a recovery
trend.

3,783

202,837

186,789

7,307

8,449

-14,242-15,240• Sales decreased due to the application of the principle method forrevenue recognition of job search application business (impacted
amount: approx. -1 billion yen), in addition to COVID-19.
• Sales in Asia decreased due to COVID-19.
• Sales in Australia decreased due to the effects of temporary lockdown
and weaker Australian dollar against Japanese yen.
• Sales increased because internal transaction business for employment of
persons with disabilities increased due to insourcing.

－

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5

Operating Profit by SBU for Nine Months Ended December 2020
(million yen)Staffing
CareerProfessional
Outsourcing
Solution

Nine Months ended December
2019

17,964
10,367
3,240
-851

2020

Comment (YoY)

24,670• Profit increased due to the effect of increased sales in temporary staffing
and BPO areas.

-328• Loss was recorded as a result of decreased sales despite the efforts to
reduce SG&A expenses including marketing costs and personnel
expenses due to reassignment of employees.
• Deficit of Q3 has narrowed compared to Q2 and it is on a recovery trend.

2,471• Profit was decreased as a result of increased ratio of labor costs to sales
due to an increase of headcount and inactive engineers occurred inengineering area.

-3,793• Loss was recorded as a result of continued investment including
increasing headcount as well as the application of the principle method
for revenue recognition of job search application business (impacted
amount: approx. -1 billion yen).
• Loss was recorded because sales in highly profitable placement businessdecreased in APAC and temporary lockdown had a negative impact on
business in Australia.

Asia Pacific(APAC)

-859

-980

Other

-151

-597 • Deficit was enlarged mainly in training business due to COVID-19.

Adjustment-1,306866• Turned to profitability as a result of reduction of SG&A expenses
and the delay in investments in relation to the mid-term
management plan due to COVID-19.
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(Reference)
Summary of Financial Resultsfor 3Q of FY2020

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Consolidated Quarterly Results
Sales increased in Staffing SBU and Professional Outsourcing SBU, but sales in Career SBU and APAC
SBU decreased significantly due to the impact of COVID-19, which resulted in decrease in total sales
from the same period of previous fiscal year. Operating profit was better after hitting bottom in Q2.

(million yen)

FY 2018
Q4Sales

FY 2019
Q1

Q2

FY2020
Q3

Q4

Q1

Q2

240,586 235,218 243,738 242,204 249,411 238,222 227,533
YoY (%)

Operating profit
OPM (%)EBITDAEBITDA Margin (%)

Net Profit*

Q3

238,083

5.9%

4.1%

7.7%

4.0%

3.7%

1.3%

-6.6%

-1.7%

12,036

10,057

10,058

8,287

10,681

9,115

4,760

8,432

5.0%

4.3%

4.1%

3.4%

4.3%

3.8%

2.1%

3.5%

16,242

14,416

14,532

12,41014,997

13,3898,962

12,767

6.8%

6.1%

6.0%

5.1%

6.0%

5.6%

3.9%

5.4%

5,622

5,466

-10,643

4,522

8,266

4,670

2,974

5,173

*Net profit attributable to owner of parent company
8
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Staffing

Staffing SBU

BPO area continuously showed a remarkable growth and clerical and administrative area maintainedrobust business, resulting in increases in sales and operating profit of the SBU.
(million yen)

FY 2018
Q4Sales

FY 2019
Q1

Q2

FY2020
Q3

Q4

Q1

Q2

Q3

122,101 122,189 126,130 130,986 130,871 130,678 129,605
YoY (%)

Operating profit
OPM (%)EBITDAEBITDA margin (％)

Working days

134,086

-

5.5%

10.0%

8.6%

7.2%

6.9%

2.8%

2.4%

5,343

5,823

5,333

6,806

5,905

8,921

7,387

8,361

4.4%

4.8%

4.2%

5.2%

4.5%

6.8%

5.7%

6.2%

6,334

6,765

6,298

7,759

6,885

9,914

8,283

9,265

5.2%

5.5%

5.0%

5.9%

5.3%

7.6%

6.4%

6.9%

57

59

59

61

58

61

58

61

Qualitative analysis on Q3• Sales increased by 2.4% YoY. In detail, billing rates raised by 5.0%, operating hours increased by 1.9% and the no. of active staffs decreased by
5.4% (no. of operating days is the same as Q3 of FY2019), and other contributions such as sales increase of BPO area were up by 0.9%.
• Although the no. of confirmed contracts was below the level of Q3 of FY2019 due to decrease of new orders, the no. of active staffs remained
almost the same as that of Q2 of FY2020 because the no. of terminated contracts decreased by 22% YoY.
• The no. of orders received in Q3 showed a gradual recovery to approx. 70% YoY from the significant decrease recorded in Q1 due to COVID-19.
• Gross profit margin was improved by 1.5pt YoY because of an improved earning rate in BPO area while social insurance premiums increased as aresult of increased commuting expenses, etc. for temporary staffs in response to “equal pay for equal work”.
• As BPO area will show a significant full-year growth in both sales and operating profit and its earning rate be also increased. As a result, BPO is
expected to contribute to future growth of this SBU.
*YoY for FY2018 is stated as "-" because there are no restated figures for FY2017 reflecting segment changes effective FY2020. (same applies hereinafter.)
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9

Career

Career SBU

Although both placement business and advertising business were continuously affected by COVID-19,
resulting in decreased sales and recorded operating loss, the deficit has narrowed and it is on arecovery trend.
(million yen)

FY 2018

FY 2019

FY2020

Q4

Q1

Q2

Q3

Q4

Q1

Q2

23,57723,54922,25918,114

19,526

16,827

12,887

13,595

-

13.6%

9.6%

-14.6%-17.2%-28.5%-42.1%-24.9%

4,784

4,703

4,393

1,271

2,900

1,505

-1,367

-466

20.3%

20.0%

19.7%

7.0%

14.9%

8.9%

-10.6％-3.4%

EBITDA

5,521

5,414

5,146

2,047

3,697

2,316

-526

395

EBITDA margin (%)

23.4%

23.0%

23.1%

11.3%

18.9%

13.8%

-4.1％

2.9%

Sales
YoY (%)
Operating profit
OPM (%)

Q3

Qualitative analysis on Q3• Although a decrease in the number of orders received in both placement and advertising businesses bottomed out, it is expected to take acertain period of time to recover to the level before the outbreak of COVID-19.
• Orders received in placement business have recovered from the level in Q1 where the business suffered tremendous effect of COVID-19, andit recovered to approx. 75% YoY in Q3 .
• Orders received in advertising business also recovered to approx. 75% YoY in Q3. Gradual recovery is expected toward the end of FY2020.
• Personnel expenses were reduced remarkably in Q3 as a result of reassignment of employees carried out in H1. Reduction of costs were
implemented continuously including marketing cost.

10
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PRO

Professional Outsourcing SBU

Overall sales remained robust with strong demand in IT area, while operating profit was maintained at
the same level compared to the same period of previous year as a result of recovery of the ratio ofactive engineers in the engineering area.
(million yen)

FY 2018

FY 2019

FY2020

Q4

Q1

Q2

Q3

Q4

Q1

Q2

26,19424,00826,126

26,85028,842

26,41527,281

28,680

-

8.2%

9.7%

7.2%

10.1%

10.0%

4.4%

6.8%

2,440

271

1,449

1,519

3,070

315

674

1,481

9.3%

1.1%

5.5%

5.7%

10.6%

1.2%

2.5%

5.2%

EBITDA

2,901

677

1,866

1,982

3,216

683

1,049

1,861

EBITDA margin (%)

11.1%

2.8%

7.1%

7.4%

11.2%

2.6%

3.8%

6.5%

Sales
YoY (%)
Operating profit
OPM (%)

Q3

Qualitative analysis on Q3• Sales increased YoY because demand for IT engineers was strong as a whole and sales in the former ITO segment maintained a high growthrate with an increase of approx. 20%.
• Operating profit was maintained at the same level compared to the same period of previous year as a result of smooth assignment of newgraduate engineers and the inactive engineers in former engineering segment which struggled in mainly automobile industry.
• The ratio of active engineers in IT area exceeded 95% and remained stable as normal. On the other hand, in engineering area, the ratio ofactive engineers has recovered to a level exceeding 90% due to new orders received by strengthening sales cooperation within the Group.

11
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Solution

Solution SBU

Impacted amount of the principle method for revenue recognition of job search application business applied since
this fiscal year was -0.29 billion yen for sales and -0.28 billion yen for operating profit. Loss was recorded as a resultof increased investments including increasing headcount.
(million yen)

FY 2018
Q4

Sales
YoY (%)
Operating profit
OPM (%)EBITDAEBITDA margin (%)

FY 2019

FY2020

Q1

Q2

Q3

Q4

478

1,351

1,837

1,856

1,967

-

213.8%

392.9%

281.2%

-114

-299

-175

-23.9%-22.1%-112-23.4%

Q1

Q2

Q3

952

1,237

1,593

310.8%-29.5%-32.6%-14.2%-376-768-1,437-1,260-1,095-9.6%-20.3%-39.0%-150.8%-101.8％-68.8%

-248

-111

-302

-340

-1,204-1,018-781-18.4%-6.1%-16.3%-17.3%-126.4%-82.3%-49.0%

Qualitative analysis on Q3• In the job search application business, sales excluding the effect of application of the principle method for revenue recognition increased as aresult of aggressive sales activities despite a continuing trend among companies to cut down recruiting expenses.
• In cloud POS business, sales slightly increased YoY because the cumulative number of stores introduced increased, although it was difficult to
install new stores mainly under the tough business situation of restaurants due to the influence of COVID-19.
• Under severe market conditions, KPI of business scale expansion showed a continued trend of increase.
L In job search application business, the cumulative number of corporate accounts increased significantly approx. 2.4 times YoY.
L In cloud POS business, the cumulative number of stores that introduced POS increased approx. 1.1 times YoY.

12
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APAC

Asia Pacific (APAC) SBU

Sales decreased partly due to the effect of lockdown in some regions despite a trend of recovery.
(APAC is consolidated with a delay of 3 months, so the results correspond to a period from July to September 2020.)(million yen)

FY 2018

FY 2019

FY2020

Q4

Q1

Q2

Q3

Q4

Q1

Q2

70,75667,012

69,584

66,24070,40365,98058,684

62,124

-

-2.5%

-0.4%

-2.9%

-0.5%

-1.5%

-15.7%

-6.2%

505

-156

-126

-575

451

-116

-561

-303

0.7%

-0.2%

-0.2%

-0.9%

0.6%

-0.2%

-1.0%

-0.5%

2,210

1,874

1,868

960

2,060

1,390

947

1,217

EBITDA margin (%)

3.1%

2.8%

2.7%

1.4%

2.9%

2.1%

1.6%

2.0%

AU GDP growth (%)

2.2%

1.7%

1.4%

1.7%

2.2%

1.4%

-7.0%

-3.8%

JPY /USD

110.4

110.2

110.1

109.1

109.0

108.9

108.2

107.5

JPY /AUD

82.6

78.5

77.7

76.3

75.8

71.6

71.1

72.8

Sales
YoY (%)
Operating profit
OPM (%)EBITDA

Q3

Qualitative analysis on Q3• Results in Q2 and Q3 (from Apr. to Sep., 2020) are the bottom and expected to recover after Q4 (from Oct. to Dec., 2020).
• In PERSOLKELLY, despite robust staffing business in Singapore and recovery of placement business in China, sales decreased because sales inother regions declined. On the other hand, operating profit increased due to transfer of the business in Australia to PROGRAMMED and the effectof reduction of costs including personnel expenses.
• PROGRAMMED’s sales decreased due to factors including slow recovery of blue-collar staffing business and weaker Australian dollars against
Japanese yen by almost 5%. Profit was decreased because highly profitable painting service in Maintenance business was affected by the
lockdown in the state of Victoria in August and September 2020, although the business based in Australia that was transferred fromPERSOLKELLY returned to profitability.
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13

Others
Operating profit was recorded as a result of robust sales in disabled persons hiring business which ismostly internal transaction and a trend of recovery shown in training business that was affected by
COVID-19.
(million yen)

FY 2018

Sales
YoY (%)
Operating profit
OPM (%)EBITDAEBITDA margin (%)

FY 2019

FY2020

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

1,531

1,731

2,585

2,989

2,803

2,364

2,656

3,428

-

22.0%

115.5%

86.8%

83.1%

36.5%

2.7%

14.7%

-273

-3

-202

54

-275

-455

-405

263

-17.8%

-0.2%

-7.8%

1.8%

-9.8%

-19.3%-15.3%

7.7%

-251

0

-131

148

-197

-380

-329

350

-16.5%

0.0%

-5.1%

5.0%

-7.0%

-16.1%-12.4%

10.2%

Qualitative analysis on Q3• Sales increased because internal transaction within the Group increased due to insourcing, which led to robustness of disabled persons hiring
business.
• Operating profit increased YoY due to the effect of increased sales in disabled persons hiring business and a trend of recovery shown intraining business that was affected by COVID-19.

14
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Adjustments(Corporate and reconciliation Adjustments)
Operating profit was recorded as a result of reduction of SG&A expenses and the delay in investments
in relation to the mid-term management plan.

(million yen)

FY 2018

Sales
YoY (%)
Operating profit
OPM (%)EBITDAEBITDA margin (%)

FY 2019

FY2020

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

-4,054-4,624-4,785-4,833-5,003-4,995-4,819-5,425

-

-

-

-

-

-

-

-

-649

-281

-612

-413

-602

382

292

191

-

-

-

-

-

-

-

-

-361

-66

-404

-184

-325

669

556

457

-

-

-

-

-

-

-

-

Qualitative analysis on Q3• Profit was recorded YoY as a result of delayed investments in relation to the mid-term management plan because of the impact of COVID-19.

15
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Full-Year Financial Forecasts for
FY2020

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Financial Forecast for FY2020◆ Due to unpredictable impact of a state of emergency, full year forecasts remainunchanged.

(million yen)

(Reference)
FY2019FY2020forecast

YoY (%)

Consolidated sales

970,572

940,000-3.1％

Operating profit

39,08525,000-36.0%EBITDA

56,356

41,700-26.0％Net profit*

7,612

14,50090.5%

Adjusted EPS (yen)148.4498.66-33.5%*Net profit attributable to owner of parent company
17
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Sales Forecast by SBU for FY2020(million yen)

FY2020Q1 to Q3
(Actual)FY2020Q4(Forecast)

FY2020
Full year(Forecast)(Reference)
FY2019
Q1 to Q3

(Reference)
FY20194Q(Reference)
FY2019Full year

Consolidated
sales

703,838

236,161

940,000

721,160

249,411

970,572

Staffing

394,369

127,930

522,300

379,306

130,871510,177

Career

43,31015,98959,30063,923

19,526

83,449Professional
Outsourcing

82,37730,222

112,600

76,984

28,842

105,826

Solution

3,783

2,216

6,000

5,045

1,967

7,012

186,789

60,610247,400

202,837

70,403

273,241

8,449

3,250

11,700

7,307

2,803

10,111-15,240-4,059-19,300-14,242-5,003-19,246

Asia Pacific(APAC)
OthersAdjustment

18
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Operating Profit Forecast by SBU for FY2020(million yen)

FY2020Q1 to Q3
(Actual)FY2020Q4(Forecast)

FY2020
Full year(Forecast)(Reference)
FY2019
Q1 to Q3

(Reference)
FY20194Q(Reference)
FY2019Full year

Consolidated
operatingprofit22,3082,691

25,00028,403

10,681

39,085

Staffing

24,6704,429

29,10017,964

5,905

23,869Career

-328

328

0

10,3672,900

13,268

Professional
Outsourcing

2,471

1,368

3,840

3,240

3,070

6,310

Solution-3,793-1,086-4,880-851-768-1,619Asia Pacific(APAC)

-980

90

-890

-859

451

-408

Others-597-512-1,110

-151

-275

-427

Adjustment

866-1,926-1,060-1,306-602-1,90919

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EBITDA Forecast by SBU for FY2020(million yen)

FY2020Q1 to Q3
(Actual)FY2020Q4(Forecast)

FY2020
Full year(Forecast)(Reference)
FY2019
Q1 to Q3

(Reference)
FY20194Q(Reference)
FY2019Full year

Consolidated
EBITDA

35,1196,580

41,70041,35814,99756,356

Staffing

27,463

5,416

32,88020,823

6,885

27,709Career

2,185

1,114

3,300

12,607

3,697

16,305

Professional
Outsourcing

3,595

1,734

5,330

4,527

3,216

7,744

Solution-3,004-925-3,930-663-340-1,003

Asia Pacific(APAC)

3,555

1,574

5,130

4,702

2,060

6,763

Others-359-680-1,040

16

-197

-181

Adjustment

1,683-1,653

30

-655

-325

-981
20

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Disclaimer

The statements concerning PERSOL HOLDINGS’s future businessperformances in this material such as earnings forecasts are based on
information available as of February 12, 2021 and certain
assumptions deemed to be reasonable by PERSOL HOLDINGS, and do
not mean that PERSOL HOLDINGS promises to achieve these figures.
Actual results may differ materially from the statements due to avariety of factors.

The figures and indicators included in this material have beenreleased to facilitate an appropriate understanding for businessresults and financial status of PERSOL Group. Kindly note that not all
the figures and indicators have been subjected to audit and review byexternal auditors.

21
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