Acquisition ofProgrammed Maintenance Services Limited
PERSOL HOLDINGS CO., LTD.
14 July, 2017

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Table of Contents

1. Significance of this acquisition & PERSOL’s overseas strategy
2. APAC region HR services market scale

3. Programmed’s position in the Australian market
4. Outline of Programmed
5. Programmed’s financial results trend
6. Programmed’s business and synergy with PERSOL
7. Acquisition cost & impact to our financial results〔Appendix〕
PERSOL HOLDINGS CO., LTD. = PERSOLProgrammed Maintenance Services Limited＝ Programmed
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11. Significance of this acquisition & PERSOL’s overseas strategy
We can establish the top position in APAC region by utilizing Programmed’s strong businessplatform and leading market position in Australia and New Zealand
Key Point

Overseas
Strategy

To achieve PERSOL group vision: "Creating a social infrastructure for people andorganizations that catalyzes growth and innovation“,
the overseas business is one of core PHD businesses which requires
cultivation/strengthening

Significance ofthisacquisition

Australia is the largest temporary staffing market in the APAC region
Programmed proudly holds the #1 share in the Australian market
We can expect overseas sales in excess of JPY 300 billion and establish
the top position in APAC region

Synergy

Integrate the know-how of Programmed which has strength inequipment/facilities maintenance sub-contracting
We can expand business in the APAC region where PERSOL Group has
already made inroads
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22. Scale of the APAC Region HR Services Market
Australia is the largest of the markets we are targeting in the APAC region
Global Temporary Staffing Market（Unit：Billion USD）
APAC 39

Europe 179

Japan 57

Temporarystaffing market
428

Australia
14.6 Billion USD

New Zealand
China
Hong Kong
India
Indonesia
Singapore
South Korea
Other

1.2
10.1
1.4
4.5
0.6
0.9
2.5
2.8

North America 154

Source：STAFFING INDUSTRY ANALYSTS
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3３．Programmed’s position in the Australian market
Programmed is #1 in the temporary staffing market in Australia
This acquisition enables us to establish a solid business platform in Australia and eventually across APAC

Australian Temp. staffing market（Unit：Billion USD）

Australian Temp. staffing market share（2016）

20151050Actual

Forecast
Source：IBIS World Industry Repo
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44. Outline of Programmed
Established as a painting services company in 1951 then expanded the business into facility/equipment
maintenance
Acquired SKILLED Group; a leading Australian HR services company in 2015, became the largest HRservices companyCompany Name

Programmed Maintenance Services Limited

Market ListingAustralian Stock Exchange （Ticker: PRG）, Elected to ASX300 index

Headquarters

Burswood, Western Australia
1951: Established as a painting services company(subsequently expands the business into facilities/equipment maintenance)

Corporate History

2007: Merged with Integrated Group; a major Australian HR services company
2015: Acquired SKILLED Group; a leading Australian HR services company

No. of Employees
Corporate Philosophy

25,003
headcount(2017 June)

Permanent employees
Fixed term employees
Temporary staff

1,991 headcount2,964 headcount
20,048 headcountTo be the leading provider of staffing, maintenance and facility management services,
without injury

Number of locations/sites Over 100 locations; mainly in Australia
Amount of capital

AUD 570 million（as at 2017.3.31）

Net Assets

AUD 607 million（as at 2017.3.31）

Total assets

AUD 1,293 million（as at 2017.3.31）

Consolidated sales

AUD 2,691 million（as at 2017.3.31）

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55. Programmed’s Financial Results Trends
Stable growth: both organic and M&A（AUD Million）
3,000
2,500

Sales
2,691

The Oct 2015
Acquisition of Skilled
Ltd. results in a large
growth in sales

EBITDA

120

120

96

100

100

2,000

80

80

1,500

60

60

1,000

40

40

500

20

200
13.3

14.3

15.3

16.3

17.3

EBITA078

0
13.3

14.3

15.3

16.3

17.3

13.3

14.3

15.3

16.3

17.3

FY Mar 2017
Breakdown
49％

64％

Staffing

Maintenance

38%

36%

51%

Staffing

62％

MaintenanceStaffing

Maintenance

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66. Programmed’s business and synergy with PERSOLProgrammed’s business
Staffing

Maintenance

Provide temporary staffing andrecruitment/placement services to various
industries in Australia and New Zealand

Provide large scale maintenance, facility
management businesses
Especially have strong presence in infrastructure,manufacture, and mining industries withpartnership between public and private sectors

Synergy with PERSOL‘Soft’ talent know-how strengths ofPERSOL relating to white-collar roles

Operational know-how relating toequipment/facilities maintenanceExpertise in Asia

Experience with large-scale projects

Integrate both company’s strength

Create synergy by expanding maintenance business to APAC region where PHD already made inroads
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77. Acquisition cost & impact to our financial results

Acquisition
CostCorporate
Combination
Date

Impact to ourFinancial results

JPY 69.1 billion※Conversion of AUD1: JPY 87.32

After October 2017 (Planned)※ At the earliest, consolidation will commence:• end December for the balance sheet and,• end January for the P&L statement

Impact to our Financial results of this FY are
currently being scrutinized
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Appendix:

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Mid-term Management Strategy (Mar 2017～Mar 2020)

Strategy 1

Enhancing Awareness of the PERSOL Group

Strategy 2

Investing in IT Systems and Enhancing Productivity for
Further Business Growth

Strategy 3

Creating Group Synergies and Promoting GroupManagement

Strategy 4

Enhancing Our Presence in the Asia-Pacific Region

Strategy 5

Strengthening Business Platform and Expanding
Service Domains through M&A
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Attention: Note regarding handling of this material

Results forecasts etc. used in this material contain forward-looking statements
which are based on a certain number of assumptions PERSOL deems rational,
and the information at hand as of 14 July 2017 which are not meant in any way
by PHD to be assurances that will be realized. Actual results etc. may vary
greatly due to various factors.
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
subject to audit and review by external auditors.

August 2014 : Selected as one of the stocks forming the JPX-Nikkei 400 Index composition
What is theJPX-Nikkei 400?

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

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