For Immediate Release
August 10, 2022

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the Three Months Ended June 30, 2022
PERSOL HOLDINGS CO., LTD. (the Company) today announced its consolidated financial results
for the three months ended June 30, 2022.
Consolidated Operating Highlights
1) Financial Results

Net sales(In millions of yen, unless otherwise stated)
Three months ended June 30,% change
2021
2022
250,432
284,100
13.4

Operating profit

12,973

16,495

27.1

EBITDA1

17,63821,97824.6

Ordinary profit

13,652

17,24426.3

Quarterly net profit2

8,383

10,301

22.9

Quarterly net profit per share (yen)

36.43

44.68

-Adjusted quarterly net profit

9,954

12,275

23.3

Adjusted EPS3 (yen)

43.26

53.24

23.1

Notes:
1. EBITDA = operating profit + depreciation + amortization of goodwill
2. Quarterly net profit attributable to owners of parent
3. Adjusted EPS = adjusted quarterly net profita/ (average number of shares during the period - number of treasury stock during theperiod)a.

Adjusted quarterly net profit = quarterly net profit attributable to owners of parent ± adjustment itemsb (excluding noncontrolling interests) ± tax reconciliation related to certain adjustment itemsb.

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

4. Effective in the three months ended December 31, 2021, the accounting policy has been changed at a foreign 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 three months ended June 30, 2021 were corrected retroactively by reflecting the saidchange of the accounting policy.
5. Effective in the three months ended June 30, 2022, the Company and its consolidated subsidiaries in Japan changed accounting
method of asset retirement obligations. Accordingly, retroactive adjustments are reflected in the values for the same period of theprevious year.

2) Balance Sheet Data(In millions of yen, unless otherwise stated)
As of March 31, 2022As of June 30, 2022

Total assets

425,110418,362

Net assets

204,367

202,779

43.1

45.2

183,048

189,164

Equity ratio (%)
Equity capital
Note:
1.

Effective in the three months ended June 30, 2022, the Company and its consolidated subsidiaries in Japan changed accounting
method of asset retirement obligations. Accordingly, retroactive adjustments are reflected in the values for the previous consolidated
fiscal year.

3) Dividend Status(In yen, unless otherwise stated)
Fiscal year ended/ending March 31,2023 (forecast)

2022
Interim dividends

20.00

21.00

Year-end dividends

22.00

21.00

Annual dividends

42.00

42.00

4) Consolidated Financial Forecast for the Fiscal Year Ending March 2023
(In millions of yen, unless otherwise stated)
Forecast for the fiscal year
% change from theending March 31, 2023
previous fiscal year
1st half

Full year

1st half

Full year

Net sales

569,000

1,165,000

10.9

9.8

Operating profit

26,40052,000

-0.2

8.0

-

74,200-10.5

Ordinary profit

26,30051,700-3.6

4.5

Net profit115,200

29,500-1.2-7.5

Net profit per share (yen)66.29

128.05--Adjusted profit-37,200--5.9

Adjusted EPS (yen)-161.46--5.9

EBITDANote:
1.

Net profit attributable to owners of parentDisclaimer
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.

(1) 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.
Looking at the business environment in Japan in the three months ended June 30, 2022,
economic activity began to show signs of a recovery with the lifting of COVID-19-related
restrictions on activities in the middle of March 2022. The ratio of job offers to job seekers(seasonally adjusted) in Japan was 1.27 in June 2022, showing that demand for humanresources continued to recover steadily. In the APAC region, the economic trend wasgenerally one of recovery, with the exception of certain regions where the impact of COVID19 persisted. Concerning exchange rates, the US dollar and Australian dollar both appreciatedagainst the Japanese yen.
In this business environment, sales increased in all SBUs. As a result, consolidated net sales
were 284,100 million yen (increasing 13.4% year-on-year). Operating profit was 16,495
million yen (increasing 27.1% YoY), mainly reflecting an increase in sales in Career SBU,drive by brisk corporate demand, in addition to an increase in the number of temporary active
staff in the Staffing SBU and the growth of the highly profitable BPO (Business ProcessOutsourcing) sector. Ordinary profit was 17,244 million yen (increasing 26.3% YoY) andquarterly net profit attributable to owners of parent company was 10,301 million yen(increasing 22.9% YoY).
Results by SBU (before inter-segment elimination) are as follows.
a. Staffing SBU
In this segment, the Group operates temporary staffing business, including mainly clericaland administrative staff dispatching and wide range of staffing service, BPO and placement
service mainly for administrative talents in Japan.
Sales for the three months ended June 30, 2022 were 151,432 million yen (increasing 9.9%YoY) and operating profit was 11,670 million yen (increasing 11.9％ YoY).
Sales increased due to growth in the number of public-related projects in BPO sector, inaddition to a year-on-year increase in the number of temporary active staff. Operating profit
increased as a result of the effect of increased sales in temporary staffing sector and BPOsector.
b. 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 three months ended June 30, 2022 were 24,198 million yen (increasing 37.5%YoY) and operating profit was 4,795 million yen (increasing 132.4% YoY).
Sales in the placement business and job recruitment media business increased due toefficient and stronger sales promotion activities in addition to the growth of demand for hiring
among companies. Operating profit increased significantly on stronger sales, offsetting therise in selling, general and administrative expenses that resulted from marketing investment
made in response to the rising demand and enhancement of hiring activities.

c. 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 three months ended June 30, 2022 were 31,177 million yen (increasing 10.5%YoY) and operating profit was 1,461 million yen (increasing 20.4% YoY).
Sales increased because the engineering area saw growth in demand, mainly fordevelopment in the manufacturing industry. An additional factor was steady growth in the ITarea. Operating profit increased due to the effect of increased sales.
d. Solution SBU
In this segment, the Group provides digital solution services for hiring talents and managing
human resources and creates new businesses through incubation programs.
Sales for the three months ended June 30, 2022 were 3,502 million yen (increasing 60.5%YoY) and the operating loss was 860 million yen (the operating loss was 883 million yen forthe same period of the previous fiscal year).
Sales increased due to the continued growth of the job search application business and cloud
POS business, mainly reflecting the growth in companies’ demand for hiring and the effect ofsales promotion activities. An operating loss was recorded, despite the effect of the sales
increase, as a result of continuous active investments to increase staff for sales promotion
for future growth.
e. 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 under PERSOLKELLY brand in Asia and under Programmed brand in Australia.)
Sales for the three months ended June 30, 2022 were 77,521 million yen (increasing 15.2%
YoY) and operating profit was 40 million yen (operating loss was 164 million yen for the same
period of the previous fiscal year).
Sales increased due to progress in the recovery from the impact of the spread of COVID-19
infection and continued strong sales in Singapore as the main market, in addition to the effectof the stronger US dollar and Australian dollar. The SBU posted an operating profit due to anincrease in the ratio of the highly profitable placement business.
####The Company and its Japanese subsidiaries have changed their accounting policy including
the accounting method of asset retirement obligations. Comparison and analysis with thesame period of the previous year and the previous consolidated fiscal year have been madeusing figures that reflect the retroactive application. For details, please refer to " Changes inAccounting Policies" and “Change in Accounting Estimates”

(2) Financial Position
1. Consolidated Balance Sheet
Total assets decreased 6,748 million yen compared to the end of the previous fiscal year.
Current assets decreased 7,125 million yen, and non-current assets increased 376 million
yen. Main factors for the decrease in current assets include a decrease in cash and depositsof 15,273 million yen, despite an increase in contract assets of 7,542 million yen. Main factors
for the increase in non-current assets include increases in goodwill of 1,893 million yen andin software of 1,279 million yen, more than offsetting a decrease in deferred tax assets of2,263 million yen.
Liabilities decreased 5,161 million yen compared to the end of the previous fiscal year.
Current liabilities increased 3,314 million yen while non-current liabilities decreased 8,475
million yen. Main factors for the increase in current liabilities include increases in the current
portion of bonds payable of 10,000 million yen and in accounts payable - other of 3,025
million yen, more than offsetting a decrease in provision for bonuses of 9,731 million yen.
Main factors for the decrease in non-current liabilities include a decrease in bonds payable of
10,000 million yen.
Net assets decreased 1,587 million yen compared to the end of the previous fiscal year. Thiswas mainly caused by the payment of dividends of surplus of 5,104 million yen and theposting of 10,301 million yen in quarterly net profit attributable to owners of parent company,
which resulted in increases in retained earnings of 5,197 million yen and foreign currencytranslation adjustment of 6,933 million yen. Other reasons were a decrease in non-controllinginterests of 7,703 million yen and a decrease in capital surplus of 6,043 million yen mainly
due to the acquisition of additional shares in PERSOLKELLY PTE. LTD. by PERSOL Asia PacificPte. Ltd.
As of June 30,
2022
Ratio of operating profit to sales
Ratio of ordinary profit to sales

As of March 31,
2022

5.8％

4.5％

6.1％

4.7％

Current ratio

163.4％

170.9％

Fixed ratio

73.3％

75.5％

Equity ratio

45.2％

43.1％

0.29

0.28

Total assets (million yen)

418,362

425,110Equity capital (million yen)

189,164

183,048

Invested capital (million yen)

273,015

269,376

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

92,184

106,558

Debt/equity ratio*1 Effective in the three months ended June 30, 2022, the Company and its consolidated subsidiaries
in Japan changed accounting method of asset retirement obligations. Accordingly, retroactive
adjustments are reflected in the values for the previous consolidated fiscal year.

2. Business and financial issues to address
The three months ended June 30, 2022 saw no significant change in business and financial
issues that the Group should address.Consolidated Financial Statements(1) Consolidated Balance Sheet(in millions of yen)
As of March 31,2022

As of June 30,
2022

AssetsCurrent assets
Cash and deposits

107,545

92,272

100

121

Accounts receivable - trade

150,073

148,222

Contract assets

18,65826,201Work in process

333

836

10,74012,652

Notes receivable - trade

Other
Allowance for doubtful accounts

-554

-534

286,897279,771

Buildings and structures, net

5,036

4,540

Tools, furniture and fixtures, net

2,147

2,110

Right of use assets, net

3,410

3,432

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

Land515

515

Other, net

2,304

2,449

Total property, plant and equipment

13,414

13,047

Trademark right

9,803

10,449Goodwill

61,67463,567

Software

16,78718,066

Other

6,863

6,299

Total intangible assets

95,12998,384

Investment securities

8,664

8,633

Deferred tax assets

10,324

8,060

Other

12,20812,148

Allowance for doubtful accounts-1,527-1,684

Intangible assets

Investments and other assets

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

29,67027,158138,213

138,590425,110418,362(Consolidated Balance Sheet)(in millions of yen)
As of March 31,2022

As of June 30,2022

Liabilities
Current liabilities
Accounts payable - trade630

Short-term borrowings

162

986

－

10,000Current portion of long-term borrowings

11,30414,001

Accounts payable - other

81,81384,838

Income taxes payable

11,211

5,586

Accrued consumption taxes

17,432

19,642

Provision for bonuses

17,847

8,116

71

19

Current portion of bonds payable

Provision for bonuses for directors (and otherofficers)
Other provisions

547714787

Other26,706

26,680Total current liabilities

167,893

171,208

Non-current liabilities
Bonds payable

10,000－Long-term borrowings

30,00030,004

Lease liabilities

1,997

1,978

Deferred tax liabilities

3,039

4,185

Retirement benefit liability

414

454

Provision for share awards

810

887

835

903

4,430

4,522

Provision for share awards for directors (andother officers)
Asset retirement obligation
Other provisions
Other
Total non-current liabilities

8156

1,239

1,381

52,85044,374

220,743

215,582

Share capital

17,47917,479Capital surplus

19,16813,124Retained earnings

158,282

163,479

Total liabilities
Net assets
Shareholders' equity

Treasury shares-10,351-10,321

Total shareholders' equity

184,579

183,762

959

958

Foreign currency translation adjustment-2,4894,443

Total accumulated other comprehensive income-1,530

5,402

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

Share acquisition rights

00

Non-controlling interests

21,317

13,614

Total net assets

204,367

202,779

425,110418,362

Total liabilities and net assets

(2) Consolidated Income Statements and Comprehensive Income Statement(Consolidated Income Statement)(in millions of yen)Three months ended June 30,
2021
2022
Net sales

250,432

284,100

Cost of sales

193,758

215,398

Gross profit

56,67468,702

Selling, general and administrative expenses

43,70052,207

Operating profit

12,973

16,495Non-operating income
Interest income

913

Dividend income

159

191

Subsidy income

350

549

74

22

Foreign exchange gains

2115

Other229

56

Total non-operating income

845

850

Interest expenses

7366

Commission expenses

231

Other68

33

Total non-operating expenses

165

100

13,652

17,244411376－

Gain on sale of investment securities

10124

Total extraordinary income

391

136

Share of profit of entities accounted for using
equity method

Non-operating expenses

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

Extraordinary losses
Loss on disposal of non-current assets

05

Loss on sale of investment securities

1－

Loss on valuation of investment securities

4136

Non-recurring loss

40－

Total extraordinary losses

45142

Profit before income taxes

13,99817,238

Income taxes - current

2,329

3,341

Income taxes - deferred

2,616

2,921

Total income taxes

4,946

6,262

Profit9,051

10,975

668

674

8,383

10,301

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

(Consolidated Comprehensive Income Statement)(in millions of yen)Three months ended June 30,2021
2022
Profit9,051

10,975

75

-0

4,317

7,276

36

93

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

4,430

7,369

13,482

18,345

12,493

17,228988

1,117

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

Changes in Accounting Policies
Application of the Guidance on Accounting Standard for Fair Value Measurement
The Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31,June 17, 2021) began to be applied at the beginning of the three months ended June 30,
2022. It was decided that the new accounting policies prescribed in the Guidance onAccounting Standard for Fair Value Measurement will be applied into the future in accordancewith the transitional treatment provided for in Paragraph 27-2 of the Guidance on AccountingStandard for Fair Value Measurement.
The application has no effect on quarterly consolidated financial statements.

Configuration or Customization Costs in a Cloud Computing Arrangement (IAS No. 38), anagenda decision by IFRIC
At a foreign 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 configurationor 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 for the three months ended June 30, 2021 andconsolidated financial statements for the previous fiscal year.
As a result, compared to values before the retroactive application, operating profit, ordinary
profit, and profit before income taxes for the three months ended June 30, 2021 decreased
164 million yen. The beginning balance of retained earnings decreased 1,483 million yen andforeign currency translation adjustment decreased 74 million yen for the previous fiscal year
due to the application of the cumulative effect to net assets as of the beginning of theprevious fiscal year.
From these results, quarterly net profit per share for the three months ended June 30, 2021
decreased 0.47 yen.

Change in Accounting for Asset Retirement Obligations
Previously, asset retirement obligations related to obligation to restore to original condition
set forth in real-estate lease agreements signed by the Company and its consolidated
subsidiaries in Japan were posted in the following way. The amount of leasehold deposits
related to the said real-estate lease agreements which was not expected to be collected
finally was reasonably estimated, and then, the portion of the above amount to be allocatedto each quarter was posted. However, the non-current asset management system wasreviewed, and more appropriate accounting has become possible. Therefore, starting fromthe three months ended June 30, 2022, expenses for restoration to original condition isposted as asset retirement obligations, and removal cost corresponding to the asset
retirement obligations is included in property, plant and equipment and depreciated.

This change in accounting policy is applied retroactively, and the change is reflected in thequarterly consolidated financial statements for the three months ended June 30, 2021 andconsolidated financial statements for the previous fiscal year.
As a result, in the consolidated balance sheet for the previous consolidated fiscal year,
buildings and structures, net increased 1,348 million yen, deferred tax assets increased 91
million yen, investments and other assets (other) increased 1,892 million yen, asset
retirement obligations increased 3,791 million yen, and deferred tax liabilities increased 48
million yen, while non-current liabilities (other) decreased 559 million yen, compared tobefore the retroactive application.
Asset retirement obligations of 638 million yen, which were included in other under noncurrent liabilities in the previous consolidated fiscal year, are presented as a separate itemfrom the previous consolidated fiscal year, as the combined effect of the retrospective
application of this change in accounting policy exceeded 1/100th of total liabilities and netassets.
The beginning balance of retained earnings for the previous consolidated fiscal year
decreased by 329 million yen due to the application of the cumulative effect to net assets asof the beginning of the previous consolidated fiscal year.
The change has a minor effect on profit and quarterly net profit per share for the threemonths ended June 30, 2021.

Changes in Accounting Estimates
Changes in Estimates of Facilities attached to Buildings
In the three months ended June 30, 2022, the Company changed its office strategy to permit
diverse workstyles, such as remote work. The Company took this change as an opportunity
to review the number of years during which facilities attached to buildings installed atleasehold estates of the Company and its consolidated subsidiaries in Japan are expected tobe used. As a result, the expected lifetime of those facilities was changed from the previous
3 to 15 years to 2 to 10 years.
As described in Changes in Accounting Policies, effective from the beginning of the threemonths ended June 30, 2022, removal cost corresponding to asset retirement obligations isadded to the book value of facilities attached to buildings as relevant property, plant andequipment. The removal cost has been distributed based on the number of years during
which the facilities attached to buildings are expected to be used.
As a result of this change, operating profit, ordinary profit, and profit before income taxes
for the three months ended June 30, 2022 decreased 577 million yen.