For Immediate Release
May 14, 2021

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

970,572

950,722-2.0

Operating profit

39,08526,439-32.4

EBITDA1

56,35643,911-22.1

Ordinary profit

39,361

29,168-25.9

Net profit2

7,612

15,834108.0

Net profit per share (yen)

32.76

68.64

109.5

3

148.44103.12-30.5

Adjusted EPS (yen)Notes:
1. EBITDA=operating profit + depreciation + amortization of goodwill
2. Net profit attributable to owners of parent company

3. 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-controlling interests) ±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, 2020

As of March 31, 2021

Total assets

370,993

383,416

Net assets

163,906

175,158

39.9

41.0

Equity ratio (%)
Net assets per share (yen)682.80639.91(Reference) Equity capital

147,850

157,1221

3) Consolidated Cash Flow Date
(In million yen, unless otherwise stated)
As of March 31, 2020

As of March 31, 2021

Cash flow from operating activities

28,592

37,574

Cash flow from investing activities-17,576-14,022

Cash flow from financing activities-1,987-17,973

Cash and cash equivalents at end of period

78,03782,991

4) Dividend Status(In yen, unless otherwise stated)
FY ended March 31
2020

FY ending March 312022 (Forecast)

2021

Interim dividend

15.00

13.00

14.00

Year-end dividend

15.00

13.00

15.00

TOTAL dividend

30.00

26.00

29.00

Payout ratio (%)

91.6

37.9

-

Dividend on Equity Ratio (%)

4.6

3.9

-

5) Consolidated Financial Forecast for the Fiscal Year Ending March 2022
(In millions of yen, unless otherwise stated)
FY2021% change% change(full year)

FY2021(first half)
Net sales

481,500

3.4

1,000,000

5.2

Operating profit

15,1008.8

35,00032.4

EBITDA--

53,50021.8

15,200-0.9

35,30021.0

Net profit

7,900

3.3

18,50016.8

Net profit per share (yen)

34.34

-

80.72

-

-

-

113.199.8

Ordinary profit
1

Adjusted EPS (yen)Notes:
1.

Net profit attributable to owners of parent company

2.

The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) is applied to consolidated financial forecast for the fiscal
year ending March 2022. The ratio of increase / decrease from the previous fiscal year is calculated based on the consolidated financial
results for the fiscal year ended March 2021 before pro-forma.

3.

Please refer to “Management Discussion and Analysis,” “(1) Result of Operations,” “Financial Forecasts for Fiscal Year Ending March 31,2022” for details.

Disclaimer
The statements concerning the Company's future business performances in this material such as earnings forecasts are basedon information currently available and certain assumptions deemed to be reasonable by the Company, and do not mean that
the Company promises to achieve these figures. Actual results may differ materially from the statements due to a variety offactors.

2

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 in Japan and Asia-Pacific (APAC) region.
Business environment in Japan in this fiscal year was affected by worldwide spread of the
COVID-19 pandemic. The ratio of job offers to job seekers was 1.10 (seasonally adjusted) in
March 2021. As concerns about the fourth wave of COVID-19 was reported from April 2021,
the outlook is becoming more uncertain. In placement business, current situation of orders
received is on a trend of gradual recovery, but many companies are still careful about hiring due
to the spread of COVID-19 and our business has been greatly affected. In APAC region, economy
is on a recovery trend in general, but Australian dollar became weaker against Japanese yen
continuously from the previous fiscal year.
Under these severe business environment, consolidated net sales were JPY 950,722 million(decreased by 2.0% year-on-year) as a result of significant decreased sales due to COVID-19
and terminated “an” business in Career SBU, although Staffing SBU, our core business, andProfessional Outsourcing SBU increased in sales. In terms of profit, operating profit was JPY
26,439 million (decreased by 32.4% YoY) because profit was significantly decreased due to
COVID-19 mainly in Career SBU that operates highly profitable placement business although
Staffing SBU which is the Group’s core business recorded an increased profit with increased
sales including favorable profitable BPO sector. Ordinary profit was JPY 29,168 million(decreased by 25.9% YoY) and net profit attributable to owners of parent company was JPY
15,834 million (increased by 108.0% YoY).

Results by SBU (before inter-segment elimination)*Note that the classification of segments for report was changed from this fiscal year and thecomparative analysis shown below was made in comparison of the restated figures in theprevious fiscal year of new segments after re-classification.

1.

Staffing SBU
In this segment, the Group operates temporary staffing business, including mainly clerical andadministrative staff dispatching and wide range of staffing service, BPO (Business Process
Outsourcing) and job referral service businesses mainly for administrative talents in Japan.
In this fiscal year, sales amounted to JPY 530,240 million (increased by 3.9% YoY), andoperating profit was JPY 29,123 million (increased by 22.0% YoY).
Sales were increased in temporary staffing business as a result of an increase of operating daysby 3 from that of previous fiscal year and increased unit billing rates in accordance with “equalpay for equal work”. In BPO sector, sales were also increased as a result of obtaining outsourcing
business projects in various areas including those related to COVID-19. Operating profit
increased as a result of the effect of increased sales in temporary staffing business and BPO
sector.

3

2.

Career SBU
In this segment, the Group operates placement business, supporting corporate client mid-career
hiring activities, and job recruitment media business.
In this fiscal year, sales amounted to JPY 59,568 million (decreased by 28.6% YoY), andoperating profit was JPY 331 million (decreased by 97.5% YoY).
Sales were decreased because it will take time until the number of orders received in both
placement business and job recruitment media business recovers to the level before theoutbreak of the COVID-19 though it is on the rise, and “an” business was terminated (inNovember 2019). Operating profit was decreased significantly due to decreased sales despite
the continuous efforts to reduce marketing cost and personal expenses due to reallocation of
employees.

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.
In this fiscal year, sales were JPY 113,095 million (increased by 6.9% YoY), and operating profit
was JPY 4,028 million (decreased by 36.2% YoY).
Sales were increased because business in IT area maintained high growth and as a result of
assignment of new graduates and non-active engineers in the engineering area. Operating profit
decreased as a result of increased labor costs-to-sales ratio because of the occurrence of nonactive engineers in the engineering area which showed a trend of decrease around the end of
the fiscal year, and due to increased number of staffs in the IT area.

4.

Solution SBU
In this segment, the Group provides digital solution services for hiring talents and humanresource management, and creates new businesses through incubation program.
In this fiscal year, sales were JPY 5,702 million (decreased by 18.7% YoY), and operating loss
was JPY 4,809 million (operating loss was JPY 1,619 million for the previous fiscal year).
Sales were decreased as a result of weaker demand by companies to hire due to concerns about
COVID-19 and the effect of the administrative request for restraint in operation made torestaurants even though the business has been expanding. Operating loss was recorded as aresult of decreased sales and making investments to increase staffs for the purpose of sales
promotion.

5.

Asia Pacific SBU
In this segment, the Group operates temporary staffing business and placement business in
Asia and human resource-related business and maintenance business in Australia (thosebusinesses are operated under PERSOLKELLY brand in Asia and under Programmed brand inAustralia).

4

In this fiscal year, sales were JPY 251,447 million (decreased by 8.0% YoY), and operating loss
was JPY 1,520 million (operating loss was JPY 408 million for the previous fiscal year).
Sales were decreased because of delay in recovery of economy in Asia which has been in aslump due to COVID-19 except Singapore that showed a growth of temporary staffing businessas well as China and Australia that showed recovery of placement business and blue-collar
staffing business, respectively. Weaker Australian dollar against Japanese yen was also a causeof sales decreased. Operating loss was recorded as a result of decreased sales despite theintegration of businesses in Australia which resulted the improvement of cost structure.

The Business Impacts Caused by Spreading COVID-19 Infection
In Japan, deterioration of business confidence caused by COVID-19 began to be controlled inlate 2020, but the emergency declaration was issued again at the beginning of 2021 and theconcern about the fourth wave of the infection was reported in April 2021. Under thesecircumstances, economic outlook is increasingly unpredictable. In most regions in APAC,
including Singapore and China, the economy is largely on a recovery trend.
Regarding the Group’s business in Japan, in temporary staffing business, the number of active
temporary staffs was decreased only slightly from the previous fiscal year as a result of adecrease in the number of terminated contracts and the recovery of orders received around theend of the fiscal year in the core clerical and administrative staffing area although the numberof active temporary staffs in marketing area decreased due to the effect of shorter operation
hours of stores and reduction of workforce, etc. In BPO sector, the number of new projects isincreasing driven by a growing demand for outsourcing as new styles of working including
remote work are permeating under the circumstances with the COVID-19. In placementbusiness, the number of orders received is on a trend of recovery.
As for overseas business, the business is on a recovery trend in general, including temporary
staffing business in Singapore which is the main business region of the Group and placementbusiness in China.

5

Business Outlook and Management Policy
COVID-19 pandemic from early 2020 bears tremendous impacts on global business cycle andcorporate activities as well as hiring market. After COVID-19 subsided, however, we believe that
there would be great many opportunities again for the HR service industry and there would bea great role and responsibility to fulfill for us because mid-career hiring activities will be active
again and women, the elderly and people from overseas will have greater opportunities to work
under the structure of declining birthrate and aging population in Japan. In “era of 100-year
lifespan,” people live and “work” longer all over the world. It means that there will be increasing
opportunities for people to engage in various jobs in a lifetime. Additionally, it is expected that
individuals’ working style will change in all industries by the “Advancing technologies and AI.”
Driven by evolution of technology, essential and irreversible changes are occurring in people’s
lifestyle and the way of working, and we believe that those changes such as rapid permeationof remote working will be accelerated due to the effect of COVID-19. In changing circumstancesof work, having the prospect of a society in 2030, we will continue to propose new ways ofworking for people and new ways of employment for corporations and organizations in the eraof 100-year lifespan, aiming to become a company that helps all individuals realize our groupvision “Work, and Smile.”
To realize it, we have established three group key strategies: “Focusing on each individual,”“Innovating through technologies,” and ”Extending our value globally.”

The first is to focus on

the individual and help improve work engagement for everyone. The second is to turntechnology into a strategic tool that facilitates new work styles and constructive employment
formats. The third is to utilize the insights and know-how that we have accumulated in Japanand spread the “Work, and Smile” concept from the Asia-Pacific region.
The new mid-term management plan 2023 - the first three-year step on the journey toward2030 will be a blueprint for establishing a platform for growth through enhanced businessactivities and a stronger management structure. Under this plan, we will emphasize five
strategies: “Increasing social value,” “Increasing economic value,” “Shifting to a strategic
business unit (SBU) structure,” “Identifying growth areas,” and “Strengthening business withtechnology.” Under these strategies, we aim to restore profitability and achieve the highest
ever level of operating profit in Fiscal Year ending in March 2023 which is the last year of the
mid-term management plan, by setting the numerical targets of sales of JPY 1,000 billion,
operating profit of JPY 45 billion and net profit of JPY 26.8 billion. Over these three years, wewill build a management base that will generate the resources for growth investment toward2030 and sound management after investment, and from 2024 onward, we will aim to invest
for exponential growth.
Although it is unforeseen when COVID-19 will be put under control, we think Fiscal Year endingin March 2022 is an important period to accomplish the mid-term management plan 2023 andits target values, and so we will make company-wide efforts to achieve steady recovery of
profitability.

6Financial Forecasts for Fiscal Year Ending March 31, 2022
Even with unclear prospect of when COVID-19 will be put under control, the HR market
conditions encompassing the business of the Group in the Fiscal Year ending in March 2022 are
expected to show continuous trend of recovery. Sales forecast is JPY 1,000 billion and operating
profit forecast is JPY 35.0 billion for the Fiscal Year ending in March 2022 as sales for the fiscal
year are expected to increase in all segments.
Staffing SBU, which is our core business, is forecast to be stable, as in temporary staffing
business, the number of active staffs is expected to increase to the end of the fiscal year
although the effect of increase in unit billing rates in connection with the revised law of “equalpay for equal work” has come to an end within the Fiscal Year ended in March 2021 and theirfurther increase is not expected.
Placement business operated by Career SBU shows a trend of gradual recovery after hitting
bottom in Q2 of Fiscal Year ended in March 2021 and significant increases of sales and profit
are expected because demand from companies for human resources is estimated to come backacceleratingly toward second half of the Fiscal Year ending in March 2022.
As for overseas business, economic conditions are generally on a trend of recovery except someregions including India where the COVID-19 pandemic is continuously expanding, and overseas
business sales are expected to increase. On the profit side, it is expected to turn into surplus
due to recovery of sales and as a result of continued implementation of the cost structure reform.

7(2) Financial Position
1. Consolidated Balance Sheet
Total assets increased by JPY 12,422 million compared to the end of the previous fiscal year to
JPY 383,416 million. Current assets increased by JPY 13,393 million to JPY 236,943 million. The
main reason for the increase in current assets were cash and deposits increased by JPY 4,913
million and notes and accounts receivable increased by JPY 4,476 million.
Non-current assets decreased by JPY 971 million to JPY 146,472 million. This was mainly due
to a decrease in goodwill by JPY 5,811 million despite an increase in investment securities by
JPY 3,197 million.
Liabilities increased by JPY 1,170 million compared to the end of the previous fiscal year to JPY
208,258 million. Current liabilities increased by JPY 5,525 million to JPY 145,577 million. The
main reasons for the increase in current liabilities were a JPY 10,000 million increase in Current
portion of bonds payable to be redeemed within one year, a JPY 4,325 million increase inaccounts payable and a JPY 2,721 million increase in provision for bonuses while we had a JPY
9,968 million decrease in Current portion of long-term borrowings and a JPY 4,696 million
decrease in short-term borrowings.
Non-current liabilities decreased by JPY 4,355 million to JPY 62,680 million. This was mainly
due to a decrease in bonds payable of JPY 10,000 million etc., while we had an increase in longterm borrowings of JPY 5,901 million.
Total net assets increased by JPY 11,251 million compared to the end of the previous fiscal year
to JPY 175,158 million. This was mainly caused by: payment of dividends of surplus of JPY 6,485
million and posting 15,834 million in net profit attributable to owner of parent company etc.
which resulted in increased retained earnings of JPY 9,349 million and increased valuationdifference on valuation difference on available-for-sale securities of JPY 1,879 million etc.
As financial indicators based on the financial position described above, current ratio increased
from 159.6% to 162.8%, and equity ratio increased from 39.9% to 41.0%, compared to theend of the previous consolidated fiscal year.
As of March 31,
2020

As of March 31,
2021

Return on assets (ROA)

2.3%

4.6％

Return on equity (ROE)

5.0%

10.4％

Ratio of operating profit to sales

4.0%

2.8％

Ratio of ordinary profit to sales

4.1%

3.1％

Current ratio

159.6%

162.8％

Fixed ratio

99.7%

93.2％

Equity ratio

39.9%

41.0％

ROIC

13.8％

9.4％

Debt/equity ratio

0.48

0.40

Net cash/EBITDA ratio

0.12

0.47

Total assets (million yen)

370,993

383,416

Equity capital (million yen)

147,850

157,122

Invested capital (million yen)

234,935

244,109

Cash and cash equivalents etc. at end of period (JPY million)

78,03782,9918

2. Consolidated Cash Flow
The balance of cash and cash equivalents (hereinafter "capital") at the end of this fiscal year
were JPY 82,991 million, increased by JPY 4,953 million from the end of the previous fiscal year.
Presented below is an overview of cash flows for the consolidated fiscal year under review andmain factors behind them.

(Cash flow from operating activities)
Capital acquired from operating activities was JPY 37,574 million, increased by JPY 8,981 million
from the previous consolidated fiscal year. This was mainly due to payment of JPY 12,473 million
in Income taxes, on the other hand, Profit before income taxes was JPY 28,579 million,
depreciation costs were JPY 10,785 million, and Amortization of goodwill was JPY 6,686 million.

(Cash flow from investing activities)
Capital utilized as a result of investing activities was JPY 14,022 million, decreased by JPY 3,554
million from the previous consolidated fiscal year. This was mainly due to spending of JPY 8,569
million on acquisition of intangible assets and JPY 3,666 million spent on acquisition of property,
plant and equipment.

(Cash flow from financing activities)
Capital utilized as a result of financing activities was JPY 17,973 million, increased by JPY 15,985
million from the previous consolidated fiscal year. This was mainly due to spending of JPY 10,032
million to repay long-term borrowings payable and JPY 6,485 million in dividend payments.

9Basic Policy of Accounting Standards
The Group's policy for the time being is to create consolidated financial statements in accordancewith Japanese standards considering the potential to compare consolidated financial statements
between periods and between companies.
In the future, application of International Financial Reporting Standards (IFRS) is currently
scheduled for the Fiscal Year ending in March 2024, taking into consideration of a change in theratio of foreign shareholders and the trend of Japanese competitors to apply IFRS.

10Consolidated Financial Statements(1) Consolidated Balance Sheet(in millions of yen)
FY ended March 31,
2020

2021

AssetsCurrent assets
Cash and deposits

78,247

83,161

Notes and accounts receivable - trade128,571

133,047

Work in process

7,618

8,300

Other

9,820

13,146

Allowance for doubtful accounts

-707

-712

223,549

236,943

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

7,999

7,413

Accumulated depreciation-4,314-3,847

Accumulated impairment-9-6

Buildings and structures, net

3,675

3,560

Tools, furniture and fixtures

6,770

6,578

Accumulated depreciation-4,679-4,573

Accumulated impairment
Tools, furniture and fixtures, net

-77

-76

2,013

1,928

Right of use assets

5,698

7,216

Accumulated depreciation-1,794-3,733Right of use assets, net

3,904

3,482

Land

997

799

Other

3,058

3,324

Accumulated depreciation-1,046-1,106

Other, net
Total property, plant and equipment

2,011

2,217

12,603

11,988Intangible assets
Trademark right

9,671

9,688

Goodwill

72,562

66,751

Other

22,34824,503

Total intangible assets

104,582

100,943

8,146

11,344

Investments and other assets
Investment securities
Deferred tax assets

9,063

7,861

Other

14,444

15,765

Allowance for doubtful accounts-1,397-1,430Total investments and other assets

30,25733,540Total non-current assets

147,444

146,472

Total assets

370,993

383,41611

(Consolidated Balance Sheet)(in millions of yen)
FY ended March 31,
2020

2021

Liabilities
Current liabilities
Accounts payable - trade782

Short-term borrowings

5,300

603

－

10,000Current portion of bonds payable

451

Current portion of long-term borrowings

10,00031

Accounts payable - other

69,26673,592

Income taxes payable

6,755

4,445

Accrued consumption taxes

17,764

17,161

Provision for bonuses

12,687

15,409

56

47

772

1,116

Provision for bonuses for directors (and otherofficers)
Other provisions
Other

16,66522,717

Total current liabilities

140,052

145,577

Bonds payable

20,00010,000Long-term borrowings

35,72841,629Lease obligations

2,456

2,047

Deferred tax liabilities

Non-current liabilities

4,860

4,938

Retirement benefit liability

989

880

Provision for share awards

383

583

449

534

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

72

96

Other

2,094

1,970

Total non-current liabilities

67,03562,680207,087

208,258

Share capital

17,47917,479

Capital surplus

20,39619,008Retained earnings

126,285

135,635

Total liabilities
Net assets
Shareholders' equity

Treasury shares-9,369-11,100

154,792

161,022

471

2,350

Foreign currency translation adjustment-7,414-6,251

Total accumulated other comprehensive income-6,942-3,900Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities

Share acquisition rights－0

Non-controlling interests

16,05618,035

Total net assets

163,906

175,158

370,993

383,416

Total liabilities and net assets

12(2) Consolidated Income Statements and Comprehensive Income Statement(Consolidated Income Statement)(in millions of yen)
FY ended March 31,
2020

2021

Net sales

970,572

950,722

Cost of sales

756,580

749,309

Gross profit

213,991

201,413

Selling, general and administrative expenses

174,905

174,973

Operating profit

39,08526,439Non-operating income
Interest income

57

41

Dividend income

188

173

Subsidy income

641

3,037

35

62

271

302

1,195

3,618

Interest expenses

577

346

Foreign exchange losses

150

39

Commission expenses

61

163

Other

129

339

Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses

Total non-operating expenses

919

888

39,361

29,168Gain on sale of non-current assets

57

160

Gain on sale of investment securities

255

321

Gain on sale of businesses

33

－

Other

－

8

345

489

Ordinary profit
Extraordinary income

Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets

868

Impairment losses

13,378

167

Provision of allowance for doubtful accounts

1,357

－

Loss on business restructuring

3,186

160

－

6

1,355

－

52

32

Loss on sale of investment securities
Loss on valuation of shares of subsidiaries andassociates
Loss on valuation of investment securities
Non-recurring loss

38

643

Total extraordinary losses

19,375

1,078

Profit before income taxes

20,331

28,579

Income taxes - current

14,333

10,745

Income taxes - deferred-2,523382

Total income taxes

11,81011,127

Profit8,521

17,451

909

1,617

7,612

15,834

Profit attributable to non-controlling interests
Profit attributable to owners of parent

13

(Consolidated Comprehensive Income Statement)(in millions of yen)
FY ended March 31,
2020
Profit2021
8,521

17,451

Valuation difference on available-for-sale securities-1,875

1,879

Foreign currency translation adjustment-1,493

970

-53

18

Other comprehensive income

Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income-3,422

2,868

Comprehensive income

5,099

20,3204,242

18,876857

1,443

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests14(3) Consolidated Statement of Changes in Equity
For the Fiscal Year Ended March 31, 2020
(in millions of yen)
Shareholders' equity
Total
Share Capital

Capital surplus

Retained earnings

Treasury shares

Shareholders'EquityBalance at beginning of

17,47920,396125,677-4,387

159,165

periodChanges during period
Dividends of surplus-7,003-7,003

Profit attributable to owners

7,612

7,612

of parent
Purchase of treasury shares-5,007-5,007

Disposal of treasury shares

26

26

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items otherthan shareholders' equity
-

-

608

-4,981-4,372

17,47920,396126,285-9,369154,792

Total changes during period
Balance at end of period(in millions of yen)
Accumulated other comprehensive income

Balance at beginning of period

Valuation

Foreigndifference on

currency

marketabletranslation

securities

adjustment

2,346-5,919

Total
accumulated

Non-controlling

otherinterests

Total net assets

comprehensive
income-3,572

15,331

170,925

Changes during period
Dividends of surplus-7,003

Profit attributable to owners of parent

7,612

Purchase of treasury shares-5,007

Disposal of treasury shares

26

Change in ownership interest of parent due
to transactions with non-controlling-interests
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period-1,875-1,494-3,370724-2,645-1,875-1,494-3,370724-7,018471-7,414-6,942

16,056

163,90615

For the Fiscal Year Ended March 31, 2021
(In millions of yen)
Shareholders' equity
Total
Share Capital

Capital surplus

Retained earnings

Treasury shares

Shareholders'EquityBalance at beginning of
period17,47920,396126,285-9,369154,792

Changes during period
Dividends of surplus
Profit attributable to ownersof parent-6,485-6,485

15,834

15,834Purchase of treasury shares-1,909-1,909

Disposal of treasury shares

172

172

Change in ownershipinterest of parent due to-1,388transactions with non-

-1,388controlling interests
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period--1,3889,349-1,731

6,229

17,47919,008135,635-11,100

161,022(in millions of yen)
Accumulated other comprehensive income
Valuation

Balance at beginning of period

Foreigndifference on

currency

marketabletranslation

securities

adjustment

471-7,414

Total
accumulated
othercomprehensiv

Share

Non-

acquisition

controllingrightsinterests

Total net
assetse income-6,942-

16,056

163,906

Changes during period
Dividends of surplus-6,485

Profit attributable to owners of

15,834parentPurchase of treasury shares-1,909

Disposal of treasury shares

172

Change in ownership interest ofparent due to transactions with

-1,388non-controlling interests
Net changes in items other than

1,879

1,162

3,042

0

1,979

5,021

Total changes during period

1,879

1,162

3,042

0

1,979

11,251

Balance at end of period

2,350-6,251-3,9000

18,035

175,158

shareholders' equity

16

(4) Consolidated Cash Flow Statements(in millions of yen)
FY ended March 31,
2020

2021

Cash flows from operating activities
Profit before income taxes

20,331

28,579Depreciation

9,466

10,785

Impairment losses

13,378167

Amortization of goodwill

7,804

6,686

Increase (decrease) in retirement benefit liability

80

-99

Increase (decrease) in provision for bonuses

803

2,687

36

-8

148

378

157

85

1,384

4

Increase (decrease) in other provisions

317

-132

Interest and dividend income

-246

-215

Interest expenses

577

346

-35

-62

Subsidy income-641-3,037

Loss (gain) on sale of investment securities

-255

-315

1,355

－

Loss (gain) on valuation of investment securities

52

32

Loss (gain) on disposal of non-current assets

-48

-91

Loss (gain) on sale of businesses-33－

Loss on business restructuring

3,186

160

－

-8

Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for shareawardsIncrease (decrease) in provision for shareawards for directors (and other officers)
Increase (decrease) in allowance for doubtful
accounts

Share of loss (profit) of entities accounted forusing equity method

Loss on valuation of shares of subsidiaries andassociates

Other extraordinary loss (income)Non-recurring loss

38

643

Decrease (increase) in trade receivables-6,283-3,617

Increase (decrease) in trade payables-6,317

5,433

3,598

-592

-234

-257

-1,619-3,092

Increase (decrease) in accrued consumption
taxes
Increase (decrease) in long-term accounts
payable - other
Decrease (increase) in other assets
Increase (decrease) in other liabilities-2,261

2,277

Subtotal

44,74046,737

Interest and dividends received

333

213

Interest paid

-583

-353

Subsidies received

641

2,724

Income taxes paid

-19,373-12,473

Income taxes refund

2,833

725

28,592

37,574

Net cash provided by (used in) operating
activities

17(in millions of yen)
FY ended March 31,
2020

2021

Cash flows from investing activities
Payments into time deposits

-163

-11

Proceeds from withdrawal of time deposits

1145

Purchase of property, plant and equipment-4,919-3,666169

318-8,496-8,569240－

Purchase of investment securities

-827

-589

Proceeds from sale of investment securities

338

669

-2,420

-224

54

－

Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Proceeds from sale of shares of subsidiaries andassociates

Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from sale of businesses

38－

Loan advances

－

-120

Proceeds from collection of loans receivable
Payments of guarantee deposits

4

144-1,816-644

Proceeds from refund of guarantee deposits

666

519

Other, net-455-1,893-17,576-14,022361-4,710Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings

20,000

5,747

Repayments of long-term borrowings-10,021-10,032

Purchase of treasury shares-5,007-1,903

Dividends paid

-7,001-6,485

Dividends paid to non-controlling interests

-179

-160

Other, net

-138

-427

-1,987-17,973

38-625

Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

9,067

4,953

Cash and cash equivalents at beginning of period

68,96978,037

Cash and cash equivalents at end of period

78,03782,99118