For Immediate Release
February 14, 2022

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results
for the Nine Months Ended December 31, 2021
PERSOL HOLDINGS CO., LTD. (the Company) today announced its consolidated financial results
for the nine months ended December 31, 2021.
Consolidated Operating Highlights
1) Financial Results(In millions of yen, unless otherwise stated)
Nine months ended December 31,% change
2020
2021
Net sales

703,838

780,190

10.8

Operating profit

21,88140,811

86.5

EBITDA2

34,67454,876

58.3

Ordinary profit24,274

42,022

73.1

Net profit3

12,52423,932

91.1

Net profit per share (yen)54.25

103.92-Adjusted EPS4 (yen)80.34

130.1862.0

Notes:
1. Effective in the three months ended December 31, 2021, the accounting policy was changed at an overseas subsidiary where theInternational Financial Reporting Standards (IFRS) are applied, based on the “Configuration or Customization Costs in a Cloud
Computing Arrangement (IAS No. 38)”, an agenda decision by the IFRS Interpretations Committee (IFRIC) that was announced inApril 2021. Accordingly, the values for the nine months ended December 31, 2020 were corrected retroactively by reflecting thesaid change of the accounting policy. The percentages for year-on-year changes were calculated by using the values after theretroactive correction.
2. EBITDA = operating profit + depreciation + amortization of goodwill
3. Net profit attributable to owners of parent company
4. Adjusted EPS = adjusted profita/ (average number of shares during the period - number of treasury stock during the period)a.

Adjusted profit = net profit attributable to owners of parent company ± adjustment itemsb (excluding non-controllinginterests) ± tax reconciliation related to certain adjustment itemsb.

Adjustment items = amortization of intangible assets except goodwill by acquisitions + amortization of goodwill ±extraordinary income/losses

2) Balance Sheet Data
(In million yen, unless otherwise stated)
As of March 31, 2021

As of December 31, 2021

Total assets

381,179

400,011

Net assets

173,600

194,179

40.8

43.5

155,564

173,890

Equity ratio (%)(Reference) Equity capital
Note:
1.

Effective in the three months ended December 31, 2021, the accounting policy was changed at an overseas subsidiary where theInternational Financial Reporting Standards (IFRS) are applied, based on the “Configuration or Customization Costs in a Cloud
Computing Arrangement (IAS No. 38)”, an agenda decision by the IFRS Interpretations Committee (IFRIC) that was announced in
April 2021. Accordingly, the values for the previous fiscal year were corrected retroactively by reflecting the said change of theaccounting policy.

3) Dividend Status(In yen, unless otherwise stated)
FY2021

FY2020Interim dividend

13.00

20.00

Year-end dividend

13.00

20.00 (Forecast)

Total dividend

26.00

40.00 (Forecast)4) Consolidated Financial Forecast for the Fiscal Year Ending March 2022
(In millions of yen, unless otherwise stated)
FY2021 (full year)% change from FY2020
Net sales

1,060,000

11.5

Operating profit

48,00086.6

EBITDA

66,700-Ordinary profit

48,60070.8

Net profit127,700

80.6

Net profit per share (yen)120.36-

Adjusted EPS (yen)155.60-Note:
1.

Net profit attributable to owners of parent company

Disclaimer
The statements concerning the Company's future business performances in this material such as financial forecasts are
based on information currently available and certain assumptions deemed to be reasonable by the Company, and do notmean that the Company promises to achieve these figures. Actual results may differ materially from the statements due
to a variety of factors.

Management Discussion and Analysis(1) Result of Operations
PERSOL GROUP (the Group) provides a wide range of human resources (HR) related services;
temporary staffing and placement service as the core businesses in Japan and Asia-Pacific(APAC) region.
In the business environment in Japan during the nine months ended December 31, 2021,
the concern about economic outlook still remained due to the further spread of COVID-19.
However, the ratio of job offers to job seekers in Japan was 1.16 (seasonally adjusted) in
December 2021, showing that demand for human resources recovered from the same monthof the previous year. In the APAC region, economy continued to recover in general, with theexception of certain regions including Australia, which were affected by the resurgence of
COVID-19.
In this business environment, business performance of Staffing SBU (Strategic Business Unit),
which is the core business, remained strong, and that of Career SBU also recovered steadily.
Sales in other SBUs also increased. As a result, consolidated net sales were 780,190 million
yen (increasing 10.8% YoY).
Consolidated operating profit was 40,811 million yen (increasing 86.5% YoY) because ofgrowth of the BPO sector in Staffing SBU, progress in recovery of sales in the profitable
Career SBU, which is attributed to demand recovering from the effect of COVID-19, as wellas an increase in profits or a reduction of losses in all SBUs. Ordinary profit was 42,022
million yen (increasing 73.1% YoY) and net profit attributable to owners of parent company
was 23,932 million yen (increasing 91.1% YoY).

Results by SBU (before inter-segment elimination)

1.

Staffing SBU
In this segment, the Group operates businesses such as temporary staffing, including mainly
clerical and administrative staff dispatching and wide range of staffing service, BPO (Business
Process Outsourcing), placement service mainly for administrative talents in Japan.
Sales for the nine months ended December 31, 2021 were 426,082 million yen (increasing8.0% YoY) and operating profit was 32,467 million yen (increasing 31.6％ YoY).
Sales in the temporary staffing sector increased due primarily to a year-on-year increase in
the number of temporary active staffs. Sales in BPO sector increased because orders received
remained strong, mainly in public-related projects. Operating profit increased significantly asa result of the effect of a sales increase in the temporary staffing sector and the growth of
the highly profitable BPO sector.

2.

Career SBU
In this segment, the Group mainly operates placement business, supporting corporate clients'
mid-career hiring activities, and job recruitment media business.
Sales for the nine months ended December 31, 2021 were 53,644 million yen (increasing23.9% YoY) and operating profit was 5,153 million yen (operating loss was 328 million yen
for the same period of the previous fiscal year).

Sales in the placement business and job recruitment media business increased due tostronger sales promotion activities in addition to a recovery of demand for hiring among
companies. The SBU moved into operating profit due to the increase in sales, despite the risein selling, general and administrative expenses that resulted from marketing investment
made in response to the rising demand and enhancement of hiring activities.

3.

Professional Outsourcing SBU
In this segment, the Group operates manufacture and development outsourcing business in
IT and engineering areas and temporary staffing business specialized in engineers
dispatching.
Sales for the nine months ended December 31, 2021 were 88,579 million yen (increasing
7.5% YoY) and operating profit was 5,125 million yen (increasing 107.4% YoY).
Sales increased because the engineering area saw a recovery in demand, mainly fordevelopment in the manufacturing industry, which led to a steady recovery in the operatingrate. An additional factor was continued growth in the IT area. Operating profit increased
significantly with a recovery in the operating rate in the engineering area and a sales increasein the IT area.

4.

Solution SBU
In this segment, the Group provides digital solution services mainly for hiring talents andmanaging human resources and creates new businesses through incubation programs.
Sales for the nine months ended December 31, 2021 were 7,921 million yen (increasing
109.3% YoY) and operating loss was 2,273 million yen (operating loss was 3,793 million yen
for the same period of the previous fiscal year).
Sales significantly increased due to the continued growth of the career change application
business and cloud POS business, mainly reflecting the recovery in companies’ demand forhiring and the effect of sales promotion activities. An operating loss was recorded, despite
the effect of the sales increase, as a result of continuous active investments as in the previous
fiscal year to increase staff for sales promotion for future growth.

5.

Asia Pacific SBU
In this segment, the Group operates temporary staffing business and placement business in
Asia and staffing business and maintenance business in Australia (those businesses areoperated mainly under PERSOLKELLY brand in Asia and mainly under Programmed brand inAustralia).
Sales for the nine months ended December 31, 2021 were 212,687 million yen (increasing
13.9% YoY) and operating profit was 304 million yen (operating loss was 1,407 million yen
for the same period of the previous fiscal year).
Sales increased due to progress in the recovery from the impact of COVID-19, continued
strong sales in Singapore as the main market, and growth in sales of the placement businessmainly in China, in addition to the effect of the stronger Australian dollar. The SBU moved
into operating profit because of the sales increase in the profitable placement business andprogress in the establishment of an efficient operation structure.

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The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) is applied effective from the beginning of the 1st Quarter of FY2021. Also, effective inthe three months ended December 31, 2021, at an overseas subsidiary where theInternational Financial Reporting Standards (IFRS) are applied, based on the “Configuration
or Customization Costs in a Cloud Computing Arrangement (IAS No. 38)”, an agenda
decision by IFRIC, applicable values for the same period of the previous fiscal year werecorrected retroactively. Please refer to “Changes in Accounting Policies”.

(2) Financial Positiona.

Consolidated Balance Sheet
Total assets increased 18,832 million yen compared to the end of the previous fiscal year.
Current assets increased 30,864 million yen, and non-current assets decreased 12,032
million yen. The main reasons for the increase in current assets are increases in cash anddeposits of 19,416 million yen and in notes and accounts receivable - trade, and contract
assets (notes and accounts receivable - trade in the previous fiscal year) of 16,340 million
yen. The main reasons for the decrease in non-current assets are decreases in goodwill of
4,895 million yen and in deferred tax assets of 3,321 million yen.
Liabilities decreased 1,746 million yen compared to the end of the previous fiscal year.
Current liabilities increased 7,274 million yen while non-current liabilities decreased 9,020
million yen. The main reasons for the increase in current liabilities are decreases in current
portion of bonds payable of 10,000 million yen and in provision for bonuses of 7,410 million
yen and increases in accounts payable - other of 6,978 million yen, in current portion of longterm borrowings of 5,728 million yen, and in income taxes payable of 5,476 million yen. The
main reason for the decrease in non-current liabilities is a decrease in long-term borrowingsof 8,818 million yen.
Net assets increased 20,578 million yen compared to the end of the previous fiscal year. Thiswas mainly caused by the payment of dividends of surplus of 7,651 million yen and theposting of 23,932 million yen in net profit attributable to owners of parent company, which
resulted in an increase in retained earnings of 16,486 million yen, as well as increases in
non-controlling interests of 2,252 million yen and a foreign currency translation adjustmentof 1,569 million yen.
As of March 31,2021

As of December 31,2021

Return on assets (ROA)

4.5％

6.7%

Return on equity (ROE)

10.1％

14.5%

Ratio of operating profit to sales

2.7％

5.2%

Ratio of ordinary profit to sales

3.0％

5.4%

Current ratio

162.8％

175.2%

Fixed ratio

92.7％

76.0%

Equity ratio

40.8％

43.5%

ROIC

9.2％

12.5%

Debt/equity ratio

0.40

0.28

Net cash/EBITDA ratio

0.48

0.98

Total assets (million yen)

381,179

400,011Equity capital (million yen)

155,564

173,890

Invested capital (million yen)

244,109

254,604

Cash and cash equivalents at end of period(million yen)

82,991

102,396*Effective in the three months ended December 31, 2021, the accounting policy was changed at an
overseas subsidiary where the International Financial Reporting Standards (IFRS) are applied,
based on the “Configuration or Customization Costs in a Cloud Computing Arrangement (IAS No.
38)”, an agenda decision by the IFRS Interpretations Committee (IFRIC) that was announced inApril 2021. Accordingly, the values for the above management indicators, etc. concerning theprevious fiscal year were corrected retroactively by reflecting the said change of the accounting
policy.

(3) Explanation regarding Future Forecast Information
There is no change in the full-year consolidated financial forecast in the “Consolidated
Financial Results for the Six Months Ended September 30, 2021” announced on November
11, 2021.

Changes in Accounting Policies
Application of Accounting Standard for Revenue Recognition, etc.
The Group has applied the Accounting Standard for Revenue Recognition (ASBJ StatementNo. 29, March 31, 2020) and others effective from the beginning of the 1st Quarter of FY2021
and has decided to recognize the amount expected to be received in exchange for goods orservices as revenue when the control of the promised goods or services has been transferredto the customer.
The Accounting Standard for Revenue Recognition, etc. are applied in accordance with thetransitional procedures set forth in the proviso of paragraph 84 of the Accounting Standard
for Revenue Recognition. The cumulative effect of the retrospective application, assuming
the new accounting policy had been applied to periods prior to the beginning of the 1stQuarter of FY2021 was added to or subtracted from the beginning balance of retained
earnings of the 1st Quarter of FY 2021, and thus the new accounting policy was applied fromthe beginning balance.
As a result, sales for the nine months ended December 31, 2021 was increased by 1,052
million yen, and gross profit, operating profit, ordinary profit and profit before income taxes
were increased by 1,490 million yen, respectively. The impact on retained earnings at thebeginning of the period and per share information for the nine months ended December 31,
2021 is minimal.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “notes andaccounts receivable - trade,” which were presented under “current assets” in the consolidatedbalance sheet for the previous fiscal year, have been included in “notes and accounts
receivable- trade, and contract assets,” starting the 1st Quarter of FY 2021.

In accordance with the transitional procedures set forth in paragraph 89-2 of the AccountingStandard for Revenue Recognition, reclassification based on the new presentation method
has not been carried out for the previous fiscal year.

Application of Accounting Standard for Fair Value Measurement, etc.
The Group has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement
No. 30, July 4, 2019) and others effective beginning of the 1st Quarter of FY2021, and has
decided to apply the new accounting policy set forth by the Accounting Standard for Fair
Value Measurement, etc. into the future in accordance with the transitional procedures
stipulated in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No.
10, July 4, 2019). The impact of the application of this accounting standard on the quarterly
consolidated financial statements is immaterial.

Configuration or Customization Costs in a Cloud Computing Arrangement (IAS No. 38), an
agenda decision by IFRIC
At an overseas subsidiary where the International Financial Reporting Standards (IFRS) areapplied, configuration or customization costs in a cloud computing arrangement werepreviously recognized as intangible assets by applying the IAS No. 38 Intangible Assets.
Effective in the three months ended December 31, 2021, however, the method was changed
to one with which the above costs are recognized as costs generated when the configuration

or customization service is received, based on the “Configuration or Customization Costs ina Cloud Computing Arrangement (IAS No. 38)”, an agenda decision by the IFRSInterpretations Committee (IFRIC) that was announced in April 2021.
This change in accounting policy is applied retroactively, and the change is reflected in thequarterly consolidated financial statements and consolidated financial statements for theprevious fiscal year.
As a result, compared to values before the retroactive application, operating profit, ordinaryprofit, and profit before income taxes for the nine months ended December 31, 2020
decreased 426 million yen, while in the consolidated balance sheet for the previous fiscal
year, intangible assets decreased 2,236 million yen and deferred tax liabilities decreased 679
million yen. The beginning balance of retained earnings decreased 990 million yen and foreign
currency translation adjustment decreased 9 million yen for the previous fiscal year due tothe application of the cumulative effect to net assets as of the beginning of the previous fiscalyear.
From these results, net profit per share for the nine months ended December 31, 2020
decreased 1.27 yen.

Consolidated Financial Statements(1) Consolidated Balance Sheet(in millions of yen)
As of March 31,
2021

As of December 31,
2021

AssetsCurrent assets
Cash and deposits

83,161

102,578

Notes and accounts receivable - trade133,047－－

149,387

Work in process

8,300

6,694

Other

13,146

9,838

Notes and accounts receivable - trade, andcontract assets

Allowance for doubtful accounts-712-690

236,943

267,808

Buildings and structures, net

3,560

3,574

Tools, furniture and fixtures, net

1,928

1,961

Right of use assets, net

3,482

3,568

Total current assets
Non-current assets
Property, plant and equipment

Land799

799

Other, net

2,217

2,338

Total property, plant and equipment

11,98812,240Intangible assets
Trademark right

9,688

9,625

Goodwill

66,751

61,856

Software15,143

16,943

Other

7,123

6,413

Total intangible assets

98,706

94,838Investment securities

11,344

11,455

Deferred tax assets

7,861

4,540

Other

15,765

10,608

Allowance for doubtful accounts-1,430-1,480Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

33,54025,123

144,235

132,203381,179

400,011(Consolidated Balance Sheet)(in millions of yen)
As of March 31,
2021

As of December 31,
2021

Liabilities
Current liabilities
Accounts payable - trade

451

578

Short-term borrowings

603－

10,000－Current portion of bonds payable
Current portion of long-term borrowings
Accounts payable - other31

5,759

73,59280,571

Income taxes payable

4,445

9,921

Accrued consumption taxes

17,161

19,711

Provision for bonuses

15,409

7,998

Provision for bonuses for directors

4760

Other provisions

1,116

766

Other

22,71727,484

Total current liabilities

145,577

152,851

Bonds payable

10,00010,000Long-term borrowings

41,62932,810

Lease obligations

2,047

2,134

Deferred tax liabilities

4,259

3,129

Retirement benefit liability

880

909

Provision for share awards

583

760

534

697

96

83

Non-current liabilities

Provision for share awards for directors (andother officers)
Other provisions
Other

1,970

2,454

Total non-current liabilities62,001

52,980207,578

205,832

17,47917,479Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

19,008

19,168Retained earnings

134,151

150,638

Treasury shares-11,100-10,366

Total shareholders' equity

159,539

176,919

2,350

1,727

Foreign currency translation adjustment-6,325-4,756

Total accumulated other comprehensive income-3,974-3,029

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities

Share acquisition rights

00

Non-controlling interests

18,03520,288

Total net assets

173,600

194,179

381,179

400,011

Total liabilities and net assets

(2) Consolidated Income Statements and Comprehensive Income Statement(Consolidated Income Statement)(in millions of yen)
Nine months ended December 31,2020
2021
Net sales

703,838

780,190

Cost of sales

555,226

603,413Gross profit

148,612

176,776

Selling, general and administrative expenses

126,730

135,965

Operating profit

21,88140,811Non-operating income
Interest income

33

31

Dividend income

141

193

Subsidy income

2,544

974

164

84

Share of profit of entities accounted for using
equity method
Other173

3293,057

1,613Interest expenses

274

204

Foreign exchange losses

127

5Commission expenses

146

24

Other

115

166

Total non-operating expenses

664

401

24,27442,022

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

88

23

Gain on sale of shares of subsidiaries and－

486

250

774

8－

347

1,284

associates
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets－3Impairment losses

95

469

Loss on business restructuring

152－

Loss on sale of investment securities－

1

Loss on valuation of investment securities

32459

Restructuring expenses－514

Non-recurring loss

597

78

Total extraordinary losses

878

1,527

Profit before income taxes

23,744

41,780

Income taxes - current

6,256

12,931

Income taxes - deferred

3,780

2,801

Total income taxes

10,036

15,732

Profit13,70726,047

Profit attributable to non-controlling interests

1,182

2,115

Profit attributable to owners of parent

12,52423,932

(Consolidated Comprehensive Income Statement)(in millions of yen)
Nine months ended December 31,2020
2021
Profit13,70726,047

1,308

-623

-1,487

1,818

-3

8

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

-183

1,203

13,52427,25012,55524,803968

2,447

Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests