IR Presentation Material ：Briefing on Consolidated Financial Results
for the Fiscal Year Ended March 31, 2018
PERSOL HOLDINGS CO., LTD.
May 17, 2018

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Contents

Part1 : Financial Highlights on Financial Results
for the Fiscal Year Ended March 31, 2018
Part2 : Revision of Mid-term Management Strategy

Part3 : Forecast for the Fiscal Year Ending March 31, 2019

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1

Part1 :Financial Highlights on Financial Results
for the Fiscal Year Ended March 31, 2018

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

2018/3 : Summary of Consolidated Business Results(Unit: billion yen)

2017/3

2018/3

2018/3
Achievement
Forecasts
rate

Results

Results

YoY

Sales

591.9

722.1

+22.0%

-1.4%

732.3

Overseas sales ratio

6.3%

16.6%

+10.3%

+0.5%

16.1%

EBITDA

43.4

48.0+10.6%

-1.0%

48.5

Business EBITDA margin
Results
Operating income

7.3%

6.7%

-0.7%

+0.1%

6.6%

33.4

36.0

+8.0%

+0.0%

36.0

Operating income margin

5.6%

5.0%

-0.6%

+0.1%

4.9%

Profit attributable to owners ofparent17.8

7.7-56.4%-41.6%

18.6

ROE（％）

13.4%

5.5％

-7.9%

-

-

EPS : diluted (Yen)

75.77

33.27

-56.1%--

Dividend ratio（％）

22.4%

57.1％

+34.7%--

Capital to asset ratio（％）

51.8%

36.1%

-15.7%--

Indicates

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3

FY Ended March 2018: Consolidated Results Overview
Improvement on record high results of previous years was a reflection of the favorable market environment.
Key themes next fiscal year: acceleration of expansion, overseas Post Merger Integration (PMI), and turnaround of
the 'an' job listing advert business.

Results etc.
All time record
high operating
profitImplementing changes to reflect "PERSOL" company
names, and branding investments.

2017
2017

2015
2015

2013
2013

2011
2011

2009
2009

2007
2007

Operating profit trends (JPY 100 million)
334

360

281

Enhanced presence in the APAC region with theacquisition of PROGRAMMED Ltd.
On the other hand, impairment losses have been bookedwith the PERSOLKELLY business, and the "an" business(Recruiting Segment).

2005
2005

0.5
0.5

2001
2001
2003
2003

Open-ended labor arrangements commenced from thisfinancial year in accordance with revisions to Japan'sLabor Contracts Act and Japan's Worker Dispatch(‘Temp law’) Act.

1997
1997
1999
1999



0.9

Lehman Shock

1993
1993
1995
1995

Favorable

1.5

Japan's"Bubble" period

1989
1989
1991
1991

MarketEnvironment

Effective hiring ratio trend (times)
1.4
1.4

1987
1987

A primary differentiation point between competitors willbe the ability to speedily match labor needs with talent
by leveraging abundant volumes of information and IT
resources.

1985
1985



1983
1983

Transition towards an era of structural labor shortages.

1981
1981



235

186
81

98

FY2012/Mar
FY2018/Mar
2012/3期 FY2013/Mar
2013/3期 FY2014/Mar
2014/3期 FY2015/Mar
2015/3期 FY2016/Mar
2016/3期 FY2017/Mar
2017/3期 2018/3期

Outlook for the
next period
Overseas
Post Merger
Integration (PMI)"an" business

Continued enhancement of corporate value.



Appropriate handling of revisions to Japanese laws
relating to the dispatch (`Temp`) business.

Progress made with overseas Post Merger Integration(PMI) activities; including PROGRAMMED Ltd.



Turnaround of the "an" job listing advert business (intend
to schedule a policy decision in Q2 targets).
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4

2018/3 : Summary of Consolidated Business Results
While Sales grew +22.0% due to solid growth of existing business and M&A contribution,
OP income increased +8.0% due to the cost increase from the investment in each segments,
as well as expansion of group brand awareness and PROGRAMMED amortization cost.
Impairment loss of PERSOLKELLY and ‘an’ business result in Profit attributable toowners of parent decline -56.4%(Unit: billion yen)

+22.0%+10.6%

+8.0%
722.1

591.9

43.4

48.0
33.4

36.0
17.8

Sales

EBITDAOP income-56.4%
7.7

Profit attributable toowners of parent

2017/3 Full Year2018/3 Full Year

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5

2018/3 : Sales Analysis
Sales grew +22.0% due to the +9.1% organic growth fromexisting business and M&A contribution(Unit: billion yen)

PROGRAMMED：＋54.5
PERSOLKELLY ：＋22.9

-1.1
+77.4

+6.7

+5.7

-

+2.3

＋1.1

-2.4

+40.3

591.9

722.1

Organic growth+53.8

2017/3 Temporary Recruiting PROGR
Full
AMMED
Staffing・
Year
BPO

PERSO
LKELLY

ITO

M&A
+77.4

Engine
ering

Other

M&A

Adjustment 2018/3

Full
Year

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6

2018/3 : EBITDA Analysis
EBITDA grew 4.6 billion yen due to the organic growth from
Temporary Staffing・BPO and Recruiting business and M&A
contribution of PROGRAMMED etc(Unit: billion yen)

PROGRAMMED：＋1.05
PERSOLKELLY ：＋0.06
+1.0

+0.7

-

+0.1

+０.4

-0.4

+1.1

-0.2

+1.7

48.0
43.4
Organic growth+3.6

2017/3 Temporary Recruiting PROGR
Full
AMMED
Staffing・
Year
BPO

PERSO
LKELLY

ITO

M&A
+1.1

Engine
ering

Other

M&A

Adjustment 2018/3

Full
Year

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7

2017/3 : OP income Analysis
While Temporary Staffing・BPO and Recruiting business had organic growth,
M&A contribution was negative due to 0.8 billion yen acquisition costs of
PROGRAMMED. As a result, OP income grew +2.6 billion yen(Unit: billion yen)

PROGRAMMED：-0.5
PERSOLKELLY：-0.2

+1.4

+0.9

-

+0.1

＋0.3

-0.5
-0.7

-0.3

+1.3

36.0
33.4
Organic growth+3.7

2017/3 Temporary Recruiting PROGR
Full
AMMED
Staffing・
Year
BPO

PERSO
LKELLY

ITO

M&A
-0.7

Engine
ering

Other

M&A

Adjustment 2018/3

Full
Year

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8

2018/3 : Consolidated Balance Sheets

As ofMarch 31,2017
Results

As ofMarch 31,2018
Results(Unit: billion yen)

Change

268.3

403.4

Current assets

165.2

235.4

Increase in cash and
135.1 deposit, trade receivable
due to an increase inprofit70.2

Non-current assets

103.1

167.9

64.8

114.5

243.4

Current liabilities

87.9

217.1

128.9 Increase in short-termloans payable and unpaid
129.1 consumption tax etc.

Non-current liabilities

26.6

26.3

Decrease in long-term-0.2 loans payable

153.8

159.9

6.1 Increase due to an increase in

Owner’s capital

139.1

145.5

6.4

Minority interests

14.6

14.4

-0.2

Asset

Liabilities

Net assets

Increase in amortization
due to M&A

profitDecrease due to the purchaseof treasury shares

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9

2018/3 : Consolidated Statements of Cash Flows(Unit: billion yen)

2017/3Full Year
Results

2018/3Full Year
Results

ChangeCash flows fromoperatingactivities

39.6

35.0

-4.6

Cash flows frominvesting activities

-9.7

-66.7

-57.0

Cash flows fromfinancing activities

-11.6

50.1

61.8

Increase(decrease) in cash
and cash
Equivalents

18.2

20.1

1.9

Cash and cash
equivalents
at end of period

69.3

89.5

20.1

＜Payments for corporate income
tax etc. ＞∟ 2017/3： -11.5∟ 2017/3： -18.7＜Purchase of investments in
subsidiaries＞∟ 2017/3： -2.5
∟ 2018/3： -61.8＜Increase (decrease) in shortterm loans payable＞∟ 2017/3： -0.2
∟ 2018/3： 69.3

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10

2018/3 : Dividend
Stable dividend payment will be continued according to the progress ofbusiness results, while enhancing our business structure to be able toexpand business in growth areas swiftly and aggressively.

2017/3

Dividendper Share
Dividend Ratio（Consolidated）

2018/3

InterimYear-end

InterimYear-end

8 yen

9 yen

9 yen

10 yen

22.4%

57.1%

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11

2018/3 : Summary of Consolidated Business Results by Segments

2018/3

Sales(Unit: billion
yen)

Results

Achieve
ment
rate

481.0

-4.3

Recruiting

EBITDA
YoY

Results

Achieve
ment
rate

+9.2%

25.5

72.8

-5.2 +10.1%

PROGRAMMED

54.5

-0.4

PERSOLKELLY

OP income
YoY

Results

Achiev
ement
rate

YoY

-0.6

+7.5%

22.1

-0.5

+6.6%

14.2

+1.1

+8.2%

10.8

+1.3

+15.5%

-

1.0

0

-

-0.5

0

-

65.7

+2.6 +77.3%

1.0

0 +238.3%-0.1

0 +356.7%

ITO

28.9

-0.4

+8.8%

2.9

0

+6.7%

2.2

-0.1

+8.0%

Engineering

27.7

-0.3

+4.2%

2.9

0.1

+17.5%

2.3+0.1+19.5%

4.3

0-35.8%-0.2

0.1-204.5%

-0.3

-0.1

-270.9%Adjustment

-13.1

-2.0

-

0.3

0.7

-

-0.4

-0.5

-

TOTAL

722.1

-10.1 +22.0%

48.0

0.4

+10.6%

36.0

0

+8.0%

Temporary
Staffing/BPO

Other

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12

Q4 Accounts for FY Ended March 2018: Impairment Loss
Associated with the "an" job advertising business
New management will operate under new structures from April 2018
A new business plan is currently being formulated, and the plan is to give an
explanation about this in Q2 of FY ending March 2019.

【Applicable
Businesses】"an“

business

Sequenceof events
relating totheimpairment loss【Impairment
loss amount】

8,619

From nowon•

Delays in offering services centered on the WEB, promotional
investments were not increased which led to decrease incompetitiveness.

•

The transition from hard-copy to WEB based services wascompleted in August 2017.

•

Time was needed to formulate new business plans, so the fullamount was booked as an impairment loss.

•

New management will operate under new structures from
April.

•

New business plans are currently being formulated.

•

The intention is to give an explanation of the business plan
timed with the Q2 accounts presentation for the FY ending
March 2019.

•

Income and expenditures of this period are anticipated to be
similar to the previous period.

Million yen

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13

Q3 Accounts for FY Ended March 2018:
Impairment Loss Associated with the Overseas Business
The impairment loss was booked due to: temporary disorder associated with integrations, active up-front
investment, inability to absorb the cost burden associated with HQ expansion.
Target company

Impairment
loss amount(JPY million)

Sequence of events relating
to the impairment loss:

Capita(Singapore)

3,793

First Alliances(Vietnam)

412

KELLY SG(Singapore)812

KELLY INDIA(India)

634

Total

5,653

Temporary disorder was associated withthe rapid integration and separation ofcapable consultants.

Stagnation in the Singapore market.

Consultant headcount will be increased,
the office will be proactively expanded,and up-front investments will take place.

Present status

Recovery trend in the Singapore market.

Time is needed for the business to recoverand catch-up with the initial business plan.

Progress is being made with bolstering theconsultant team strength.

Growth is anticipated to exceed the initialbusiness plans in the FY ending March
2019.



Up-front investments could not be
absorbed due to delays in bolstering
consultant resources.



HQ functions will be expanded tostrengthen the governance.

Both firms are continuing to operate in theblack despite growth in head office costs.

The business is doing well, but costburden could not be absorbed, and initial
targets were not achieved.



Up front investments will be recovered infuture.

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14

Part2 :Revision of Mid-term Management
Strategy

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Review of the Medium-term Management Plan (Quantitative)
Compared to previous Medium-term Management Plans, targets values in the Medium-term Management Plan
were revised again to take into account the following influences: ① PROGRAMMED Ltd. is a new consolidation,② Amortization costs of goodwill declined due to impairment losses, ③ Investments in systems declined in relation
to initial assumptions leading to a decline in depreciation cost.

(Units: billion yen)Previously(FY ending Mar
2020)

PROGRAMMEDThis time(FY ending Mar
2020)

Other

Sales

750.0

+230.0-980.0

EBITDA

60.0

+7.0

-4.0

63.0

EBITDA Margin

8.0％

-

-

6.4%

Operating Profit

45.0

+1.5

+1.5

48.0

Operating Profit ratio

6.0%

-

-

4.9%

※ Assumed forex rate: USD1=JPY 105.0, AUD1=JPY 82.5
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16

Current Medium-term Management Plan Strategy × Strategic Policy
The Medium-term Management Plan strategy will be continued, and the following strategic policies will be pursued
with each strategy:Group Medium-term Management Plan
(Same as the previous Medium-term Management Plan)

Strategic Policy

Strategy 1

Enhancing Awareness of the PERSOL Group

Continually strengthen the service brand, andinvest in entrenching the PERSOL brand.

Strategy 2

Investing in IT Systems and Enhancing
Productivity for Further Business Growth

Improve productivity by means of the core temp
business "GENESIS" HRIS system.

Strategy 3

Creating Group Synergies and Promoting
Group Management

Strategy 4

Enhancing Our Presence in the Asia-PacificRegionAccelerate organic growth ,progress Post Merger
Integration (PMI), and improve profitability.

Strategy 5

Strengthening Business Platform andExpanding Service Domains through M&A

M&A strategy based on each separate "Market ×
Region", and advance into new business sectors.

Expand cooperative synergies across the Group.
Move forward with mergers of subsidiaries within
the Temp/BPO Segment.

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17

Strategy 1: Strategic Policy ─ Continuous Investment in
PERSOL Brand Entrenchment
The era of seeking the ability to provide services beyond a particular business sector is at hand; there is a desire toentrench the PERSOL brand. Also, advertising effectiveness will be enhanced so the PERSOL brand and service
brands will be continually strengthened.
Current Group Medium-term Management Plan Targets

Work-style
diversification

Previously

Labor force
shortages▲5.83 million
headcount

Changes to advertising methods

Transition to an era where services
extending over business sectors
are sought

As a corporate Group focused on “Creating asocial infrastructure for people and organizations
that catalyzes growth and innovation”, PERSOL
is aware of its situation.



As a Group with a reach that extends beyond
particular business sectors, PERSOL is placed
to offer optimal services/pricing solutions.

Brand advertising took place along with changes in company
names to reflect "PERSOL".



On the other hand, advertising commenced with stand-alone
development of the “PERSOL” brand, so the linkage with service
brands was tenuous.

WeaklinkagesFrom now on...

Brand advertising is at the further stage: Development ofadvertisements that convey visually recognizable relationshipbetween "PERSOL" and service brands
Service brands※ Image commented on above※Image commented on above

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18

Strategy 2: Improving Productivity by Means of the Core Temp
Business "GENESIS" HRIS System
Since FY March 2016 a priority has been placed on investments in IT systems, and growth investments have been
accelerated. The core temp business "GENESIS" HRIS system is a large-scale investment of JPY 4.7 billion, andrepresents a further commitment by PERSOL to productivity enhancement.
(JPY million)

Trends inintangible
asset
investments

8,000

Major investments:
Temporary Staffing/BPO
Recruiting
Holdings

Proactive
IT investments taking place
JPY 4.1 billion *2
JPY 3.4 billion *2
JPY 1.3 billion *2

5,640

6,000

4,350

4,000

2,791

*1

1,793

2,000

1,354

128
0
FY 2013/3

Investmen
t Amount

Approx.
JPY 4.6
billion*2

Payback
time

FY 2016/3

FY 2017/3

FY 2018/3

FY 2021/3①Improve Productivity

EffectTransition
PeriodFY 2015/3

Effect of Investments

Outline of Investments
Investme
nt in thecore temp
business"GENESIS" HRIS
system

FY 2014/3

Sep
2017

Job matchingvolume x1.7

・Productivity of coordinators (recruiters) enhanced
due to improvement in searching function.

②Cost reduction
・Business efficiency by digitization of invoice
・Centralization of office work of the order input etc*1：Reference: Consolidated statements of cash flows –”Purchase of intangible assets”*2：Figures are not equal due to the investment from other segments to “GENESIS”

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19

Strategic Policy ─ Enhancing Profitability of the Temp/BPO BusinessMergers of 10 companies are planned for this FY. Productivity will be enhanced with the fully operational roll-out of
the core temp business "GENESIS" HRIS system, and efficiencies will be reaped in relation to performance of
support tasks. Aiming for an operating profit ratio of 5.3% during the FY ending March 2020.
Operating profit ratio target

4.7%

4.3%

FY2016/Mar
2016/3期

FY2017/Mar
2017/3期

Group
Subsidiary
Company
Mergers
GENESIS
Fully operationalroll-out

Law amendment

5.3% *

4.6%

4.6%

FY2018/Mar
2018/3期

FY2019/Mar
2019/3期

FY2020/Mar
2020/3期

Enhance resource/needmatching accuracy & speed: Client support No.1
: Candidate preference No.1
: User share No.1

Centralize information relating to "registered temp
candidates" and "client firms" that has been managed
independently by each subsidiaries up until now.

In Temporary staffing business, 7 companies will bemerged to PERSOL TEMPSTAFF.
In BPO business 3 companies will be merged to 1.

Unification of databases

Unify middle/back-office
functionsMarket No.1




Increase speed by enhancing candidate searching
function.



In accordance with amendment of Labor Contract Act
and Worker Dispatch Act, the Group will actively workon converting temp staffs to indefinite-term employees,
and improving labor conditions by passing prices
through to clients.

Actively work on indefiniteterm employment*： Temporary staffing/BPO business’s pure profitability excluding PMI costs etc

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20

Strategy 3: Strategic Policy ─ Expanding Group Synergies
Deepening linkages in the Group, trend towards expanding results from cooperation within the Group

Results from cooperation
within the Group

Number of companies using
multiple services

TEMPSTAFF × DODA

Linkages within the Group are deepening.
On average annual sales are up by 130%.

Be it temp labor, placement services,or 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 of companies using
multiple services:Job-change support sales trends due
to intra-Group cooperative effort:(Companies)(JPY million)
8,000

8,000

Annual average
growth rate130%

＋1,000 clientcompanies in
1 year(JPY million)
300
7,284

Monthly sales
grew by JPY

200 million

6,000

194

6,000
6,500

4,000

3,500

4,000

2,000
2016/3期 FY2017/Mar
2017/3期 2018/3期
FY2016/Mar
FY2018/Mar

150

6,163

109

0

5,000

As of Apr
1 2017

As of Mar2 20182016年4月
Apr 2016

2017年4月
Apr 2017

Mar 2018

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21

Strategy 4: Enhancing PERSOL's Presence in the Asia-Pacific Region
Top 3 position has already been secured in various key markets (other than China and India).
In future, we will expand our share and aim at Top 2 position in the market(Unit: trillion yen)

Global Temporary
Staffing Markets &Market Scope
EuropeJPY 20.1

Temporary Staffing
MarketJPY 48.2
North
America
JPY 17.3

Japan
JPY 6.4

APAC
JPY4.3

Country

Market Scale
1.64

Australia

No.1

No.2

No.3

PERSOL

GlobalGlobalCorporation Corporation

State runenterprise

China

1.13

State runenterpriseState runenterprise

India

0.50

GlobalGlobalGlobalCorporation Corporation Corporation

New Zealand

0.13

Local
Corporation

GlobalCorporation

PERSOL

Singapore

0.10

Local
Corporation

PERSOL

GlobalCorporation

Indonesia

0.06

PERSOL

GlobalLocal
Corporation Corporation

PERSOL

GlobalGlobalCorporation Corporation

Malaysia
Thailand
VietnamNo dataavailable

GlobalLocal
Corporation Corporation

PERSOL

Local
Corporation

GlobalCorporation

PERSOL【Investment Sources】 Created by PHD from various sources: JPY values noted are calculated using forex rates as at end Mar 2018
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22

Strategy 4: Enhancing PERSOL's Presence in the Asia-Pacific Region Middle Ranking
Active quantitative expansion completed by means of M&As.
For the moment, the intention is to solidify the revenue base through an acceleration of organic growth andprogressing Post Merger Integration (PMI) activity.
Strategy for the overall overseas business will be formulated by the time of the next Medium-term Management Plan.

Overseas sales trends(JPY billion)
310.0
283.0

3,000

July 2016
Kelly JVJan 2016
First Alliances

1,000

Review

October 2017
PROGRAMMED

2,000

JPY 81 billion of investments in
M&As.
For the time-being, active
quantitative expansion has been
completed.

Accelerate organic growth &focus on progressing PMI in
the next Medium-termManagement Plan.

120.2

October 2015
Capita37.1

0FY2014
2014年

FY2015
2015年

FY2016
2016年

FY2017
2017年

FY2018
2018年

FY20192019年

FY2020
2020年

3月期
Mar

3月期
Mar

3月期
Mar

3月期
Mar

3月期
Mar

3月期
Mar

3月期
Mar

FY March 2020 numericaltargets:
Sales: JPY 310 billion
EBITDA Margin: 3.0%
※ Assumed forex rate for FY2020/3:
USD1=JPY 105.0, AUD1=JPY82.5
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23

Strategy 5:Strategic Plan ─
M&A Strategy for Each Separate "Market×Region"
Profitability improvement will be seen in overseas businesses as Post Merger Integration (PMI) progresses.
Business sectors that already exist in domestic Japan will be actively reviewed (as has been the case to date).
Proactive investments will proceed into new business sectors.

Existing Business Sectors

DomesticJapan
Overseas•

Proactive consideration & reviews will
be made as has been done to date.

•

For the time-being, active
quantitative expansion completed bymeans of M&As.

•

The PERSOLKELLY Segment, and
PROGRAMMED Segment are currently
both undergoing Post Merger
Integration (PMI).

New Business Sectors*•

Up until now the PERSOL
Innovation Fund has handled boththe investigation/investing
activity. A "Group Innovation
Promotion Division" will be set-up
to accelerate open innovation fromthe point of view of the overall
Group

•

Alliances will be formed with firms
outside the Group, and M&A
opportunities will be actively
pursued.

*: PERSOL Group for its part anticipates that firms eligible for M&As are those opportunities that generate new business, and firmsthat upgrade the services of existing Group businesses.
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24

M&A Performance
Operating cash flow (CF) proactively used for M&A investments.
Since 2013, operating cash flow (CF) of JPY 135 billion (cumulative) has been used, and JPY 160 billion of M&A’s carriedout.
• CareerRise• TEMPSTAFF KAMEI• PANASONIC EXCEL STAFF

79
Domestic
Japan
M&A

• P&P
• Medicross• Intelligence• AVC 2 companies

Progress withbusiness plans:Comparative
net profit(Cumulative)
＋55%※

• DRD

135
OperatingCash Flow• Capita• First Alliances81• Kelly Services• Programmed

PMI
progress

Overseas
M&A

25
Accumulated
operatingcash flow (CF)FY13/3 ~ FY18/3

Domestic Japan M&A

Overseas M&A

Balance of CF※At the time various acquisitions were madeduring this FY ～ Sep 2017 cumulative results
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25

Part3 :Forecast for the Fiscal Year Ending
March 31, 2019

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

Forecast for the Fiscal Year Ending March 31, 2019

(Unit: billion yen)

2019/3

2018/3

Forecasts

Results

YoY

Sales

722.1

940.0

+30.2%

Overseas sales ratio

16.6%

30.1%

+13.5%EBITDA

48.0

56.5+17.6%EBITDA margin

6.7%

6.0%

-0.7%

Operating income

36.0

42.5

+17.8%

Operating income margin

5.0%

4.5%

-0.5%

Profit attributable to owners ofparent7.7

21.8+180.6%※ Assumed forex rate for FY2019/3:
USD1=JPY 105, AUD1=JPY 80.0
Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

27

Forecast for the Fiscal Year Ending March 31, 2019

Sales
(Unit: billion yen)

2018/3

2018/3

2019/3Results Forecasts
Temporary
Staffing/BPO

EBITDA
2018/3

2019/3Results Forecasts

YoY

OP income
2019/3Results Forecasts

YoY

YoY

481.0

520.0

+8.1%

25.5

27.7

+8.2%

22.1

23.9

+8.0%

Recruiting

72.8

84.0

+15.3%

14.2

16.9+18.4%

10.8

14.3+32.3%PROGRAMMED

54.5

215.0 +294.4%

1.0

6.5 +516.7%-0.5

1.1 +216.6%

PERSOLKELLY

65.7

68.0

+3.4%

1.0

1.2

+9.6%

-0.1

0.7 +368.1%

ITO

28.9

33.0

+13.8%

2.9

2.1-28.3%

2.2

1.5-33.7%Engineering

27.7

30.0

+7.9%

2.9

3.1

+3.9%

2.3

2.7

+14.1%

4.3

5.0+15.2%-0.2-0.2+27.2%-0.3-0.2+29.0%

Adjustment

-13.1

-15.0

-

0.3

-0.8

-

-0.4

-1.4

-

TOTAL

722.1

940.0

+30.2%

48.0

56.5+17.6%

36.0

42.5+17.8%

Other

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

28

Temporary Staffing/BPO Segment
Performance has improved due to favorable conditions in the domestic Japan market,
and expansion of market share is being pursued.
Forecast Results
FY 18/3(Unit: billion yen)

Results

481.0

Sales

External Environment
FY 19/3
Forecast
520.0

MarketTrendsYoY• Oligopolization of the Japan temp labor market.

+8.1%

EBITDA

25.5

27.7

+8.2%

EBITDA Margin

5.3%

5.3%

0.0%

Operating Profit

22.1

23.9

+8.0%

Operating Profit ratio

4.6%

4.6%

No.

• Continued tight supply & demand conditions
due to labor force shortages.

Competitive
TrendsLegal
0.0% Reforms etc.

Policy Measure• Increase in advertising costs of each firm tosecure superior talent.

• Decline of mid/small sized temp vendor firms.
• Revisions to Japan's Labor Contracts Act, andDispatch (`Temp`) Act are being addressed inearnest.

Overview

1

Improvement of productivity

Supply efficiencies achieved by maximizing use of GENESIS to
improve tasks when matching talent/needs.

2Open ended hirearrangements/direct hires/skilldevelopment temp arrangements

Provide new services, appropriately handle the various labor laws.

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

29Temp/BPO Segment (Impact of Revised Laws)
For the coming year, open-ended labor arrangements will come into effect in Japan when all contracts are
renewed; an expected 20,000 headcount (approx.).
From April onwards, open-ended labor arrangements are being sequentially put in place. From October onwards,
conversion to open-ended labor arrangements will occur in line with revisions to Worker Dispatch Act.
Current situation (as at 20 Apr 2018)

FY ending Mar 2019

Laws

Japan's Labor
Contract Law

Details

Applications to convert to open-ended
arrangements
 When fixed-term labor contracts run intotal for over 5 years, depending on an
application by the worker, it is possible toconvert to a labor contract of no
stipulated time period.

Carrying out employment stability
measures*1
 Temp labor vendor firms are required toJapan's Worker
implement employment stability
Dispatch ('Temp')
measures for temporary workerActheadcount expected to be deployedcontinuously in the same organizational
unit for a 3 year period"Same-workSame-pay"

Reduce differences in treatment between
permanent/non-regular employees Irrespective of the employment format, incases where it is deemed that the same
work is being performed, the "same pay"
obligation arises.

First
Half

SecondHalf

Number ofheadcount notifiedof their right toapply forconversion to
open-ended
arrangements

Temporary staff
expected to be
subject to legal
reforms: *2

Actualnumber ofheadcountconverting to
open-ended
arrangements

Ratio (%)

Applications from workers to convert to openended arrangements will be handled sequentially.
Approx.
435 headcount*
4.3%
10,000 headcountCommence
April*PERSOL TEMPSTAFF only
Total group number is in the aggregate
Approx. 20,000
headcount─Commence
Oct─(From October onwards)

Scheduled to be revised after 2021
(Impact etc. will be validated during the legislation process. )*1：Requests from temp client firms to make direct hires, placements at new temp clients, temp vendor open-ended labor arrangements etc.

*2：From April 2018 onwards, number of temp workers where it is anticipated open-ended arrangements will arise in the following 1 year period.

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30

Recruiting Segment
Strengthen investments in labor resources/marketing given the favorable environment and steady market.

Forecast Results(Unit: billion yen)

External Environment

FY 18/3
Results

FY 19/3
Forecast

YoY

Sales

72.8

84.0 +15.3%

EBITDA

14.2

16.9 +18.4%

EBITDA Margin

19.6%

Operating Profit

10.8

Operating Profit ratioNo.

Strategic
Policy

14.8%

20.1%

Policy Measure• Psychological reluctance to changing jobs isdiminishing in Japan, and mobility of talent is
improving.

+0.5%

14.3 +32.3%
17.0%

Markettrends• Unemployment rates in Japan are maintaining
their low historical levels due to structural labor
shortages, while the effective hiring ratio(times) is at high levels.

+2.2%

Competitive
Trends• Performance of each company is growing
based on the steady market environment.

Overview

1

Become No.1
in the youth placement
sectorMust become No.1 job support provider in the high-volume youth
cohort market sector. Aim for highest growth-rate in the industry,
strengthen investment into labor resources/marketing.

2

Strengthen PERSOL’spresence in the media

Make investments into marketing together with creating appealing
www sites; aim to solidify the job-change media business.
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31

PROGRAMMED Segment
Based on the favorable market environment together with existing client contracts, proceed to open-up
developing markets.

External Environment

Forecast Results
FY 18/3(Unit: billion yen)

Results• Growth is anticipated in key industrial
sectors.

FY 19/3
Forecast

YoY

Sales

54.5

215.0 +294.4%

EBITDA

1.0

6.5 +516.7%

1.9%

EBITDA Margin-0.5

Operating Profit
Operating Profit ratio
No.

-0.9%

3.0%

• Strengthening of infrastructure facilities
in line with population growth.
• Decline in margin/contract roll-overratios due to an excess of competition.

+1.1%

1.1 +216.6%

0.5%

MarkettrendsAustralianGDP• 2018 annual Australian GDP growth rate
is a solid 2.4%

+1.4%

Policy Measure

Overview

1

Rising staff matching ratio

Matching ratios are anticipated to rise due to process & systems improvements.

2

Improvement in professional sector
matching

Sales/margin growth is anticipated for highly skilled talent in the professional sector.

Staffing

Strategic
Policy1
Maintenance2
Health-care

1Securing new clients
Collaboration/Cross-selling

Strategy for the direct-care market
where growth is anticipated.

New centers/clients are being proactively approached with growth in investments inconstruction etc. infrastructure as a backdrop.
Business collaboration is becoming more active across services.
The market for temp nurses (BtoB) is plateauing out, so investments are being actively
made in growth areas such as the direct-care market (BtoC).
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32

PERSOLKELLY Segment
Merger various organizations/systems, and endeavor to establish corporate governance structures;
all while aiming to secure market share in the region.

Forecast Results(Unit: billion yen)

FY 18/3
Results

External Environment
FY 19/3
Forecast

YoY

Sales

65.7

68.0

+3.4%

EBITDA

1.0

1.2

+9.6%

EBITDA Margin

1.7%

1.8%

+0.1%

Operating Profit-0.1

Operating Profit ratio-0.3%

0.7+368.1%
1.0%

+1.3%

MarkettrendsClienttrends• Rapid growth in real GDP is predicted for theentire APAC region• Together with continued growth in temps andplacement sectors, there is an abundant
supply and demand of a rich variety of talent.
• Continues to be a global center for
production/consumption and multinationalfirms remain very interested.
• Together with increased sophistication of local
economies, demand for talent fromsmall/medium sized firms is on the increase.

No.

Policy Measure

Overview

1

SG,MY: Cling to top-level market share
IN,VN: Aim for top-level market share

Placement business is stronger due to optimal deployment of
talent & improved productivity. Also, the temp business is
becoming stronger due to relationships built with major clients.

2

Core systems

Endeavors to improve productivity throughimplementation/operation of core systems in multiple countries.

Establish corporate governance systems

Strengthen governance & compliance structures, incorporate
handling of JSOX requirements, effectively operate the Regional
HQ (RHQ) which takes the lead in PERSOLKELLY growth.

Strategic
Policy3*: SG Singapore,MY Malaysia,IN India, VN Vietnam

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33

ITO Segment
Secure talented engineers by investing in talent.
The key to growth is a shift to a high revenue model.

Forecast Results(Unit: billion yen)

FY 18/3
Results

External Environment
FY 19/3
Forecast

YoY

Sales

28.9

33.0 +13.8%

EBITDA

2.9

2.1 -28.3%

10.1%

EBITDA Margin

2.2

Operating Profit

Operating Profit ratio

Strategic
Policy

7.8%

6.4%

-3.7%

1.5 -33.7%
4.5%

Markettrends-3.3%

Competitive
Trends• The desire by corporations to makeinvestments into IT remains strong.
• The struggle by all companies tosecure talented engineers is
intensifying.
• Preferences for external outsourcing& in-house production is becoming
clearer.

No.

Policy measure

Overview

1

Sales promotion of services/products
produced in-house.

Strengthen the development of POS+*1 and in-houseproduced products handled by agents.

2

RPA*2 business Full scale roll-out

Fully establish RPA business structures.

3

Raise employee remuneration levels.

One important theme amongst management challenges isperforming a drastic review of employee remuneration levels.

*1 Cloud mobile POS system which supports management of stores for wide range of industries*2 Robotic Process Automation

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

34

Engineering Segment
Sustained growth is anticipated given a backdrop of the domestic Japanese manufacturing industry
increasing investments into developing new technologies.

Forecast Results(Unit: billion yen)

FY 18/3
Results

External Environment
FY 19/3
Forecast

YoY

Sales

27.7

30.0

+7.9%

EBITDA

2.9

3.1

+3.9%

EBITDA Margin

10.7%

10.3%

-0.4%

Operating Profit

2.3

Operating Profit ratioNo.

Strategic
Policy8.5%

2.7 +14.1%
9.0%

+0.5%

MarkettrendsCompetitive
Trends• Automobile/electronics industries are both
continuing to invest into developing newtechnologies such as the IoT/robotics etc.
• The market in domestic Japan for outsourced
engineering services remains strong.

• Growth due to a backdrop of strengthening of
M&A activity and hiring resulting in increased
headcount numbers.

Policy Measure

Overview

1

Enhanced technical capabilities

Advances being made to obtain next-generation new technologies,
and to accumulate/utilize technologies based on technicalstrategies.

2

Strengthen the ability to develop& expand the talent-base

Actively continue to hire and reinforce deployments, and aim to
expand structures that develop the nurturing of talent.
Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

35

Expected impact of exchange rate
USD

AUD
110

130

Trend ofexchangerate

106.24

81.11

90

110

105
80
70

90
April 2015

Sales
impact(per JPY)

OP income
impact(per JPY)

Assumedrate for
FY2019/3

April 2016

April 2017

April 2018年

April 2015

April 2016

April 2017

April 2018年

approx. ±JPY 0.6 billion

approx. ±JPY 2.7 billion

approx. ±JPY 10 million

approx. ±JPY 60 million

1USD＝JPY105

1AUD＝JPY80
Copyright © since 2017 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

36

Incorporate structures that support diverse working styles.
Provide diverse working styles, and aim to be a growth partner that supports "work" across anindividual's lifetime.

Employment creation relating to theemployment of physically challenged
individuals.
"Cloud based name-card management system“.

"Job Share Centers" in workplace offices nearto home where people can work for periods
other than a full-time 5 day job.

Apply the experience & skills of senior/mature
candidates to management support forsmall/medium sized companies via"i-common".

Provide a support service ("Mama Volunteer")
to working mothers taking childcare leave tohelp overcome any doubts and develop selfconfidence to re-enter the workforce.

Career training support activity
tailored towards youth.
"CAMP"

Plans to operate a business to promote thespread of telecommuting etc.

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

37

Disclaimer

The statements concerning the Company’s future businessperformances in this material such as earnings forecasts are
based on information available as of May 17, 2018 and certain
assumptions deemed to be reasonable by the Company, and do
not mean that we promise to achieve these figures. Actual
earnings may differ materially from the statements due to avariety of factors.
This briefing is only for better understanding. Please note that
numbers and indexes in this book are not audited.

August 2014 : PERSOL HOLDINGS was added to the JPX Nikkei Index 400
What is the JPX
Nikkei 400？

It is a new stock price index that consists of companies that meet various requirements for global
investment, such as the efficient use of capital and a management perspective that is conscious ofinvestors, for the purpose of boosting the appeal of Japanese companies domestically andinternationally.

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

38