Mid-term Management Plan
2026
PERSOL HOLDINGS CO., LTD.
May 15, 2023
(Note) August 10, 2023（At the time of announcement of FY2023 Q1 financial results）【Updated ROIC and ROE targets from JGAAP basis to IFRS basis】
Please refer to P32-36

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Towards 2030

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Thoughts towards 2030
At PERSOL, we aim to create Career Well-being bymaterializing the idea of making your work
decisions on your own under the Group Vision:
Work and Smile.
We have set an evolution into a technology-driven

HR service company as the direction of ourmanagement, so as to continue catering to theneeds of workers, which are diverse andcontinuously expanding.
We aim to create better work opportunities forone million people by 2030 by expanding
human possibilities as a “Career Well-being”
creation company.
We will continue our efforts to create value for the
future by harnessing our diverse businesses andhuman resources, which expand humanpossibilities, under the Group Vision: Work andSmile.
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3

Group Vision

Working life is a journey ofgrowth and creation.
We all have big dreams, andthere are many different paths
to success.
Thus, we need to make ourown choices from a range ofdiversified work opportunities.
Our vision is to enrich society
so that all work leads to livesof happiness.

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4

Changes in the market environment andits overall picture
An era when workers seek well-being / An era when management evolves through collaborative creation
by people and technologies
Perspective

Relevant trends

Employment mobility

PeopleTechnologies

Directionof changes

Meaning
for PERSOLDiversification ofworkstyles
reflecting thepower shift ofindividuals

An era whenWell-being will
be sought

Expansion in the
span of influence
resulting fromtechnologicalevolution

The advent of an
era when an
evolution ofmanagement isachieved throughcollaborative
creation bypeople andtechnologies

Learning(reskilling / recurrent)

Diversification ofvalues regardingwork

Diversification oftime and place

Diversification of
employment patterns

Diversification of
employment periods(side job / freelancer)(active participation ofsenior workers/FIRE)

Data-based analysis
and optimization

Forecast/simulation

Shift to remote work

Quicker processing
and response

Automated operations
and labor saving

Capacity expansion(remote work, four-day
work week, etc.)

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5

Who we want to be(what we aim to be like as a company)

A “Career Well-being”
Creation Company
Expanding the possibilities of eachindividual and the freedom of working,and increasing the happiness for bothindividuals and society.

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6

Reference: What is “Career Well-being?""Well-being" is classified into five categories. Among them, the career-related category is deemed
important as “Career Well-being."
Regarding the criteria for Career Well-being, the question about self-determination in work among thethree questions in the Gallup survey is considered important as a direct factor.
Domains of Well-being

PhysicalWell-being

Financial
Well-being

Career
Well-being

Social
Well-being

Community
Well-being

Can you take actions freely
with good mental andphysical health?

Do you receive
compensation?
Are you satisfied with yourcompensation?
Can you manage assets on
your own?

Have you achieved happinessin the aspect of career basedon the understanding that
not only work but also yourlife constitute part of yourcareer?

Have you built lasting,considerate humanrelationships?

Have you built a community,
such as in yourneighborhood, with yourrelatives or friends, and at
school or workplace?

‘Gallup Survey’

Q3

Self-determination
on work

Q1

Do you have many options to choose from withrespect to your work and workstyle?

Q2

Work experience

Do you derive pleasure or fun
from your daily work?

Work assessment

Do you think that your work
leads to better lives for people?

(pleasure or fun)(Making your work decisions on your own)

(Social contribution, significance)

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Direction of Management
The direction the PERSOL Group should take is set as follows.

Direction ofManagement

Technology-driven HR service company

Definitions

An HR service company that can achieve discontinuous growth with products anddigitalization while attaching importance to the intervention value of people

ProfitDigital Platform Business
Career/(a part of) APAC/R&D

Workforce Business

Staffing/BPO/Technology/(a part of) APAC

Concept

Now

2030
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8

Towards 2030
Aim for value creation of 500,000 people by the final fiscal year of the current Mid-term Management Plan
(FY2025) and one million people by 2030.
Towards 2030
Current(FY22)
Gaol for value
creation⚫ 380,000（※1）⚫ Proactive use of technologies

Technologydriven HR
servicecompany

in some businesses (including
Career) ahead of others

Current Mid-termManagement Plan
(FY23-FY25)

Staffing is high in terms of
profit, and the businessportfolio needs to bestrengthened further.

2030
A “Career Well-being”
Creation Company⚫ 500,000⚫ 700,000 - 800,000⚫ One million people (creating better work

⚫ Improving productivity in the⚫ Discontinuous productivity⚫ An HR service company that can achieve⚫ Increasing the number of work

⚫ Dramatically increasing the⚫ Establishing Career as a profit⚫ Establishing a more stable

Workforce Business, mainly
through digitalization

opportunities created in the
Digital Platform Business andimproving its contribution to
profit⚫ The degree of dependence on

Next Mid-termManagement Plan
(FY26-FY28)

growth pillar which iscomparable to Staffing

opportunities)

improvement in Workforce
Business through DX

discontinuous growth with products anddigitalization while attaching importanceto the intervention value of people

number of work opportunities
created in the Digital Platform
Business and its contribution
to profit

business portfolio by
cultivating new profit growth
pillars in Japan⚫ An HR company with multiple mainstay

businesses and business models in Japanand APAC

APAC

Business
portfolio

BPO
Technology
CareerStaffing※1 temporally number and subject to change

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9

Review of the Previous Midterm Management Plan

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Financial Targets of the Previous Mid-termManagement Plan and Results
The numerical targets of the previous Mid-term Management Plan were successfully achieved.
Net sales
Achievementrate(billion yen)122%

1,000.0

Achievementrate

1,223.9

Initial Plan for
FY2023 *Result for
FY2023(billion yen)

EBITDA (EBITDA margin)
Achievement
rate

125%

53.0

45.0

(4.5%)(4.3%)

Initial Plan for
FY2023 *Result for
FY2023Adjusted EPS
Achievement
rate

76.4

118%

(yen)

121%

61.0

(6.2%)

147.76

Initial Plan for
FY2023 *Result for
FY2023

Initial Plan for
FY2023 *(6.1%)* Announced in August 2020

(billion yen)

Operating profit (OP margin)

178.51Result for
FY2023Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

11

Policies of the Previous Mid-term Management
Plan and Results
Policies and results for the five key items of the previous Mid-term Management Plan, and progress
towards the current Mid-term Management Plan, are as follows.
Towards Current
Policies

Results

Evaluation

Mid-term
Management Plan

Increasingsocial value• Set related indicators and implement measures toachieve the vision• Disclose an integrated report and promote ESG• Set vision-related indicators in each SBU and
implemented the PDCA cycle• Enhanced ESG-related information disclosures andstrengthened the implementation structure with the
new establishment of a committee and othermeasuresGood

Set shared indicatorsand targets related to
the Group Vision

Increasing
economicvalue• Shift from single-year P/L-oriented management tomanagement focused on sustainable improvementof corporate value• Introduce indicators for the profitability of capital(ROIC, etc.) and drive the enhancement ofcorporate value Groupwide• Achieved the set mid-term targets a year ahead ofschedule under the conditions of the COVID-19
pandemic• Made management decisions based on indicators ofcapital profitability(APAC mid-term management plan, etc.)

Good

Promote the sustainableimprovement of
economic value

Shifting to a
strategic
business unit
(SBU)
structure• Further strengthen the Staffing and Career SBUs
while positioning the PRO SBU as a third pillar• Improve profitability of the APAC SBU through costsynergies• Achieved earnings growth in the Staffing and Career
SBUs even after the shift to a SBU structure• Employed swift decision-making under the SBU
structure while newly establishing a Corporate
Governance Committee to ensure management
oversight functions

Good

Maintain the SBU
structure while
enhancing governanceappropriately

Identifying
growthareas• Create synergies within SBUs and implement M&As
and other investment to establish the PRO SBU as athird pillar• Proactively pursue the creation of new businesses in
the Solution SBU• Achieve a measure of growth in the PRO SBU but notrising to the level of a third pillar• Proactively pursued the creation of new businesses in
the Solution SBU(MIIDAS, etc.)

Fair

Implement a healthyvariety of investments
linked to management
strategy• Boost productivity and enhance customer
satisfaction through investments in digitaltransformation (DX)• DX investments enabled progress in businessstreamlining and improved customer experience, but
this did not reach the level of higher productivity or
improved customer satisfaction

Fair

Further enhance
technology as acompanywide
management policy

Strengthening
businesswithtechnology

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12Mid-term Management Plan
2026
~Themes and Policies~

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Overview of the PERSOL Group
Mid-term Management Plan 2026
Work and Smile

Vision | The society we want to build

Who we want to be | What we aim to be
like as a company

Materiality | Foundation for value creation

A “Career Well-being” Creation Company

Business operation*1*2

Business growth engines
Corporate philosophy | Significance of
the Group's existence

Providing learning
opportunities

Creating better work opportunities for one million people
by 2030 by expanding human possibilities

Technology-driven HR service company

Direction of management

Competitive advantages to enhance

Creating work
opportunities

Providing diverse
work styles

Capability of recruiting people

Staffing

Capability of connecting people
with organizations

BPO

Human Capital
Providing Opportunity*1 Former Professional Outsourcing SBU: Renamed to Technology SBU*2 Former Solution SBU: Not listed because it will not be positioned as an SBU but as an R&D FU (Function Unit)

Technology

Capability ofdesigning businesses

CareerTechnologies
Individual Growth

APAC

Learning
Social Contribution

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Materiality | Foundation for value creation
To make "Work and Smile" a reality, we have designated eight material items as a “Career Well-being”
creation company and will pursue initiatives to achieve them.

SOLVING SOCIAL ISSUES THROUGH OUR BUSINESSINDIVIDUALSCreating work opportunities

Providing diverse
work styles

CORPORATIONSProviding learning
opportunities
Increasing productivity
at companies

FOUNDATION FOR ACHIEVING SUSTAINABLE GROWTH
Active roles for diverse
human resources

Strengthening data
governance

Respect for human rights

Responding to climatechangeCopyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

15

Reference: Overview of the Eight Material Items
We will pursue the following initiatives concerning materiality.

Solving social
issues throughour business

Creating work
opportunities

We will expand the potential of working people by 2030 by creating better employment
opportunities, using our strengths in matching people with organizations, attracting customers
and designing operations.

Providing diverse
work styles

We will propose and provide flexible work styles and employment options, helping people realize
work styles that cater to their individual needs.

Providing learning
opportunities

We will provide learning opportunities that lead to employment and upskilling, expanding theoptions available to working people and maximizing the career potential of individuals.

Increasing productivity
at companies

We will contribute to the streamlining of corporate activities and to solutions to the labor
shortage by providing services which help improve productivity.

Active roles for diverse
human resources

We will foster a corporate culture and develop an environment that utilizes diversity toachieve the Group vision.

Strengthening data
Foundation forgovernanceachievingsustainablegrowthRespect for human rights
Responding toclimate change

We will develop user environments and secure the trust of users by further strengthening
privacy governance.
We will promote initiatives that conform to international norms as a responsible company,
thereby reducing human rights risks and earning the trust of all stakeholders including employees.
We will work to achieve carbon neutrality and help realize a decarbonized society throughenvironment-related (GX) HR services and other initiatives.

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16

Goal of value creation
We have set the creation of work opportunities as the goal of our value creation.

Goal of value creation

Creating better work opportunities for one million people
by 2030 by expanding human possibilities

Providingdiverse work
stylesIncreasing opportunities
by offering many options

Creating work
opportunities

Increasing opportunities
by expanding capabilities

Providinglearning
opportunities

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17

Competitive advantages andbusiness growth engines
We have set business growth engines, which will accelerate business growth, at the same time as thecompetitive advantage that should be enhanced by the Group.

⚫

Competitive
advantages
to enhance

We have defined our strengths that we will continue to intensively enhance as“competitive advantages to enhance.”
Capability of recruiting
people⚫ Improve the ability to develop

digital media and products.

⚫ At the same time, increase the⚫

Capability of connecting
people with organizations

Capability of designingbusinesses

Enhance the value of matchingbusiness by introducing andstrengthening technologies.

⚫ Enhance our ability to design

brand awareness to enhance theconsistent ability to attract
customers.

⚫

Business
growthenginesbusinesses and provide digitalsolutions by integrating BPO
businesses and making
investments.

We have defined the Group's common initiatives, which accelerate businessgrowth, as “business growth engines.”
Human Capital

Technologies

Learning

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18

Business growth engines: Human capital
Human
Capital
PolicyWe will drive value creation by becoming a Group where
diverse human resources including temporary staff achieve“Career Well-being.”

Overview of Human Capital

VisionComponents

Key initiatives

Becoming an organization driving value
creation where diverse human resources
achieve “Career Well-being”

1

2

Achieving“Career Well-being”

Enhancing Technologyproficient Human
Resources

Employees andTemporary Staff

Recruitment
and Development

1

2

3
Building the Foundations for Diverse Human Resources
to Lead Active Roles
DI＆E and Talent management⚫

Improving employee engagement through career
autonomy and measures to advance health⚫

Improving the well-being of temporary staff by supporting
working styles that suit each individual⚫

Building a comfortable work environment for specialized
human resources (personnel systems, etc.) and enhancing
hiring capabilities through improved recruitment branding⚫

Promoting reskilling and upskilling through a wide range of
specialist programs⚫

Technology-proficient Human Resources: Aim to reach atleast 2,000 people by FY2025⚫

Advance DI & E by increasing the percentage ofmanagerial positions filled by women and encouraging
eligible male employees to take childcare leave⚫

Cultivating top leaders through diverse talentmanagement measures

3

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19

Business growth engines: Technologies

Technology
PolicyUsing a technology-based Center of Excellence (CoE) organization
as a hub, we will enhance Groupwide technology-oriented humanresources and organizations while strengthening implementation
and utilization in businesses and services

Areas of Technology Promotion

Customerexperience

3

4

Improving thevalue of corebusinesses*1

Creation of
new value*2

Key initiatives⚫

Developing environments that enable the successof specialist human resources through Group
recruitment, the establishment of CoE
organizations and the building of comfortable work
environments for specialist human resources(personnel systems, etc.)⚫

Further improvements to the work environment
through devices, infrastructure and the digitalizationof corporate systems⚫

Improved value of core business services throughincreasingly sophisticated matching, UI and UX
improvements, personalization, data utilization andthe shift to in-house development⚫

Exploration, creation and expansion of new products
and platforms for Career Well-being based ontechnology

1

2
Employeeexperience2

1

Promoting thedigitalization ofenvironments

Evolution oftechnology-oriented
human resourcesand organizations

Digitalization

DX*1. Workforce Business + Digital Platform Business*2. Digital Products / Digital Platforms

3

4

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Business growth engines: Learning

Learning
PolicyWe will implement learning linked closely with working toaccelerate the growth of each business
Overview of Learning

Key initiatives[Expanding Revenue through Improved Market Value]

Individuals

Providing learningthat reflects
corporate needs

Corporations

1

BPO
Technology

Development ofcontent that reflects
what companies need2⚫

CareerAPAC

Providing learning suited to individual careers to
expand the market value of individuals → increase
invoiced unit prices → increase business revenue(Staffing SBU, BPO SBU, etc.)[Expanding Revenue by Creating Human Resources inAreas of Shortage]

Staffing
Through learning,(1) enhance theability to attract
customers and(2) improve the valueof existing businesses⚫

3

Expand business revenue by cultivating humanresources with a focus on IT proficiency, for which
there is a market-wide shortage(Technology SBU, etc.)[Expanding Revenue by Improving the Ability to Attract
Customers]⚫

Enhance the ability to attract a variety of individual
customers, including potential career changers, byoffering a variety of learning programs.
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21

Positions of businesses and management policy
The position of each business and management policy are as follows. In particular, under this Mid-term Management
Plan, we position Career, BPO, and Technology as the domains of focus and invest proactively in them.
The Group‘s foundation
Continue to be the foundation of theGroup's growth.

Pillars of profit growth
Proactive business investments, for thesake of significant profit growth in themedium to long term

Staffing– Contribute to the Group's growth by strengthening relations with customers.

CareerBPO

Technology

Reinforce the foundations
for a breakthrough.

APAC

Improve earnings to enable large-scale investment
for growth in FY2025 and beyond.

Investments toward thefutureImplement R&D after achieving an
investment quota at a certain level.

– Aim to achieve growth by increasing market share despite the possibility of a shrinking the clerical andadministrative staffing market over the long term.

R&D– Aim to achieve growth exceeding market growth while the career-change-related market continues toexpand.

– Continue to make investments that contribute to medium- to long-term businessgrowth and the acquisition of competitive advantages.
– Aim to achieve growth exceeding market growth by taking advantage of the customer base of temporary
staffing.

– Make large-scale investments, mainly to acquire the ability to achieve a business
transformation.
– Reinforce the foundations for large-scale recruitment and the development of high value-added humanresources and improve sales capabilities, in an attempt to increase billing rates.

– Continue large-scale recruitment to derive medium- to long-term competitive
advantages.

– Achieve earnings improvement at a level that will contribute to improving shareholder value.
– Invest in a quantitative expansion after improving earnings.

– Achieve an investment quota at a certain level to explore and create businesses related to Career Wellbeing.
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22

SBU composition (sales/adjusted EBITDA)*IFRS, financial accounting

The ratio of profit from Career is expected to exceed 40% in FY2025.

Sales（¥billion）

Staffing

BPO

Technology

CareerAPAC

Adj. & others

1,700

CAGR

8%

1,242.6
1,100

386.4
104.4
93.5
114.6

500

Adjusted EBITDA

544.7

(31%)
(8%)
(8%)
(9%)

(44%)

1,550.0
400.0

(26%)

210.0

(14%)

115.0

(7%)

130.0

(8%)

(45%)

0

110
90
70

30

0

-1.2

FY22

Technology

CareerAPAC

Adj. & others

130

10
-100

BPO

（¥billion）

50

700.0

Staffing

-10

FY25

* Figures in parentheses ( ) indicate component ratios.
**Exchange rates are converted to national currency rates based on 130 yen to the US dollar.

CAGR

10%

75.2
7.6

(10%)

20.1

(27%)

6.7

(9%)

17.4

(23%)

26.5

(35%)

100.0
12.5

(13%)

43.0

(43%)

10.0

(10%)

12.5

(13%)

37.0

(37%)

-3.3

-15.0

FY22

FY25

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23

Career SBU Strategic Summary⚫

Outlook on
the market
environment

Competitive
advantages

⚫

⚫

⚫

⚫
⚫

Strategies
and policies

Financial
targets(FY25)⚫
⚫

⚫
⚫

The percentage of people who change their careers will increase given shortages of humanresources and employment mobility, and the career-change market continues to grow.
Above all, the high-class domain (annual income of 6.0 million yen or more) anddirect recruiting (DR) will grow significantly.
In addition, the side job and freelancer domain, which is a market adjacent to thecareer-change market, is also expected to grow significantly.

(1) One of the largest databases of job seekers and companies seeking workers in Japan(2) Multitiered recruitment solutions that cater to the needs of job seekers andcompanies seeking workers(3) Optimal matching based on data and technologies
A unique business model based on multitiered recruitment solutions (especiallystrengthening high-career and DR domains)
Evolution into a next-generation model that improves the capability to recruit
individuals

Sales: ¥210.0 billion (CAGR:26%)
Adjusted EBITDA: ¥ 43.0 billion (CAGR:29%)

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24

Strategies
and policies

A unique business model based on
multitiered recruitment solutions

Provide both job seekers and companies seeking workers with the optimal choices from multitiered recruitment
solutions, in accordance with respective situations and needs, thus creating as many work opportunities as
possible.
Job seekers

PERSOL

Companies seeking workers

Maximizing employment
opportunities by
providing career-change
methods appropriate for
each

Applying directly to job
recruitment media
Registering in a HR
database/Applying for
positions at companies

Cumulative
number ofmembers: morethan
7.00 million

Maximizing
recruitment
opportunities
by using multiple
recruitment methods

Giving job offers directly to job
seekers

Job offers made directly bycompanies/headhunters

Job offers made directly by othercompanies' headhunters to job
seekers

Recruiting
company

Recommended via PERSOL's job
placement services

Optimal matchingbased on data and technologies

25

Strategies
and policies

Evolution into a next-generation model that
improves the capability to recruit individuals

Launch a lineup that expands career possibilities (MIRAIZ) in addition to a comprehensive lineup of solutions
to career-change issues, thus evolving into a sustainable career development platform.

A sustainable career development platform

Community

A lineup that expands
career possibilities(MIRAIZ)MIRAIZ community

MIRAIZ expert

Training/Coaching

Direct contract(side job/multiple job)

Direct recruiting
Support for optimal career change

A comprehensive
lineup of solutions tocareer-change issues(Enhancing initiatives on highcareer and DR domains)

Direct recruiting
Direct recruiting
Agent

Agent

(Placement business)

Voluntary job search

Career change sites(career change media)

Build a talent platform that can support career development in a sustainable manner,
not just temporarily (not just during job search).
26

BPO SBU Strategic Summary

Outlook for themarketenvironment

Competitive
advantages

Strategies
and policies

Financial
targets(FY25)

⚫
⚫

⚫

⚫
⚫

⚫
⚫

The average annual growth rate of the BPO market in Japan is 2-6%. The market is expected tocontinue growing at a certain rate.
A broad array of corporate needs exist. The capability to provide customer value over a wide
range is required.
(Digitalization, deep expertise, performance commitment models, HR issue resolution, etc.)
Improve the following competitive advantages, aiming to achieve growth exceeding market growth.
(1) Customer acquisition capability (2) Capability of supplying human resources(3) Business design and digitalization capability(4) Capability of utilizing and developing human resources
Reinforce the customer base and enhance the ability to solve customer issues throughorganizational restructuring and integration within the Group.
Enhance the ability to fundamentally design digitalization through human capital investment and
M&A.

Sales
: ¥130.0 billion
Adjusted EBITDA : ¥12.5 billion

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27

Strategies
and policies

Enhancing Growth Potential Through Business
Design and Digitalization Capabilities

We will integrate BPO services that have achieved market-beating growth through their ability to gain customers
and supply human resources, with the aim of realizing further growth.
Having done that, we will establish a competitive advantage through business design, digitalization
capabilities and by further enhancing human resource utilization and development capabilities

Business design anddigitalization capabilities
Strengths to be
Further Refinedin the Future

Strengths as
Existing
Competitive
Advantage

Capability of utilizing /developing humanresources

We will split consulting functions into aseparate company and work to strengthenfunctions through improved externalsales.
We will also strengthen partnerships withoutside entities.

We will increase mobility of humanresources by strengthening humanresource development and broadening thescope of employee activities. We will solve
customer HR issues by establishing asystem of optimal placement.

Customer acquisition
capability

Capability of supplying
human resources

We will maximize contracting
opportunities by understanding BPO
needs, leveraging a grasp of corporate
organizations that is among the best inJapan.

We will quickly satisfy a broad range ofcustomer needs with one of Japan's
largest human resources supply capacities(tempstaff, doda) to maximize contracting
capabilities.

Source of value

Growth potential
to be strengthened
Existing growthpotential

FY22

FY25

28

Technology SBU Strategic Summary

Outlook for themarketenvironment⚫

⚫

Competitive
advantages⚫

⚫

Strategies
and policies

Financial
targets(FY25)⚫
⚫

The engineering staffing and contract market in the IT and engineering domain is expected tocontinue to grow steadily due to the expansion of DX demand and the shortage of engineers andother professional human resources.
Make maximum use of the Group's synergy as a competitive advantage.
(1) Quantity of attractive projects (advanced projects and high-tech projects), with ahigh ratio of outsourced projects(2) The ability to recruit and develop human resources by leveraging the knowledge
we possess as a comprehensive HR service group
Aim to achieve business growth by expanding domains, with a focus on the IT business, while
reinforcing the engineering domain as the foundation.
(1) Enhance human capital through large-scale recruitment and enhancement of training.
(2) Increase billing rates by enhancing sales capability and strengthening domains with highadded value.

Sales: ¥115.0 billion (CAGR: 7%)
Adjusted EBITDA : ¥10.0 billion (CAGR: 14%)

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29

Strategies
and policies

Boosting Growth Potential ThroughGroup Synergies

By maximizing the use of Group synergy, continually enhancing the ability to recruit and develop human resourcesin response to market changes and demonstrating a wide range of technical problem solving abilities, we willcontinue to improve our ability to acquire projects that require advanced technical skills and will link the cycle ofboth to growth.
Continual innovationin securing engineers

Strengthen the ability to recruit
engineers and their creativity

Upskilling throughtechnical challenges

Our Strengths
Utilize our ability to recruit andcultivate human resources as acomprehensive HR services
group to accelerate the speed ofproject acquisition

Our Strengths

ValuableEngineers

In-house utilization oftechnical insight gained
from the market

Attractive
Projects

Strengthen the businesswith knowledge of engineers

A high percentage of contracted
projects and the large number ofadvanced / cutting-edge technology
projects accelerate the growth ofengineers

Enhancement of thecustomer base andproblem solving ability

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30

Mid-term Management Plan
2026
~Financial Strategy~

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Disclosed on May 15, 2023: JGAAP based ROIC and ROE targets (before update)Financial Strategy

We have set the following financial strategy to achieve greater growth,
improve capital efficiency and shareholders return.
Previous Mid-termManagement Plan

Current Mid-term Management Plan
(until the fiscal year ending March 2026)(until the fiscal year ended
March 2023)

Growth1 Finance Efficiency

Operating profit ¥45.0 billion

ROIC: 10% or higher

indicators

If net cash exceeds 1.0 time of
EBITDA, measures forSoundness
strengthening shareholder
returns will be considered.

2 Cash allocation

3

Shareholder return

Adjusted EBITDA（IFRS）

ROIC
ROE¥75.2 billion（FY22)* We plan to announce

15% or higher, in principle (JGAAP) target values under IFRS

announcing the Q1
18% or higher, in principle (JGAAP) whenresults in August 2023.

Net D/E

Up to 1.0 at max.

Net Debt/EBITDA

Up to 2.0 at max.

A total of 130.0 billion yen,including surplus cash, will beallocated as follows.
• M&A: ¥80.0 billion• Capital investment: ¥30.0
billion• Dividend: ¥20.0 billion

Accumulated
EBITDA after tax

Dividend payout ratio:
Approx. 25% (of adjusted EPS)

Dividend payout
ratio¥100.0 billion or more
（FY25）

200.0 billion yen (estimate) will be allocated to IT
investment, including investment in software,
shareholder returns (dividends), investment ingrowth, and other areas.
P.37

Approx. 50% (of adjusted EPS)
Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

32

Disclosed on August 10, 2023: IFRS based ROIC and ROE targets (after update)Financial Strategy

We have set the following financial strategy to achieve greater growth,
improve capital efficiency and shareholders return.
Previous Mid-termManagement Plan

Current Mid-term Management Plan
(until the fiscal year ending March 2026)(until the fiscal year ended
March 2023)

Growth1 Finance Efficiency

Operating profit ¥45.0 billion

ROIC: 10% or higher (JGAAP)

indicators

If net cash exceeds 1.0 time of
EBITDA, measures forSoundness
strengthening shareholder
returns will be considered.

2 Cash allocation

3

Shareholder return

Adjusted EBITDA（IFRS）¥75.2 billion（FY22)¥100.0 billion or more
（FY25）ROIC

15% or higher, in principle (IFRS)

ROE

20% or higher, in principle (IFRS)Net D/E

Up to 1.0 at max.

Net Debt/EBITDA

Up to 2.0 at max.

A total of 130.0 billion yen,including surplus cash, will beallocated as follows.
• M&A: ¥80.0 billion• Capital investment: ¥30.0
billion• Dividend: ¥20.0 billion

Accumulated
EBITDA after tax

Dividend payout ratio:
Approx. 25% (of adjusted EPS)

Dividend payout
ratio

200.0 billion yen (estimate) will be allocated to IT
investment, including investment in software,
shareholder returns (dividends), investment ingrowth, and other areas.
P.37

Approx. 50% (of adjusted EPS)
Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

33

Targeted growth of adjusted EBITDA*1 (IFRS)Plan to achieve ¥100.0 billion of adjusted EBITDA in FY25.
Adjusted EBITDA

75.2

75.5

FY22 *2

FY23（¥billion）

100.0

84.0

FY24

FY25

*1 Adjusted EBITDA = Operating profit + depreciation (excluding depreciation of leased assets) ± changes in allowance for paid leave + expenses for stock compensation± other revenue and expenses ± other non-recurring profit/loss. For more details, please refer to the IR presentation materials for FY2022 financial results.
*2 The FY22 value is an estimate (yet to be audited).

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

34

Disclosed on May 15, 2023: JGAAP basis (before update)

Capital Efficiency Criteria (ROIC and ROE)In FY22, ROIC was 15.3% and ROE was 11.2%.
Under the Mid-term Management Plan 2026, we aim to increase ROIC to aminimum of 15% and ROE to a minimum of 18% (JGAAP*1).
ROIC

（%）

ROE
（%）

30

30

20

14.2

15％<

15.3

20

9.2
10

10

0

0
FY20

FY21

FY22

FY23

FY24

18.9

FY25

17.2

11.2

10.2

FY20

18％<
*2

FY21

FY22

FY23

FY24

FY25

*1 IFRS based target figures for ROIC and ROE will be available when Q1 results will be announced in August 2023.
*2 ROE excluding the impact of impairment losses announced on April 11, 2023
Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

35

Disclosed on August 10, 2023: IFRS basis (after update)

Capital Efficiency Criteria (ROIC and ROE)
Continue to place emphasis on capital efficiency in management, with an IFRS-based target ROIC of 15% orhigher and an ROE of 20% or higher set under the Mid-term Management Plan 2026.
*ROIC at 15% and ROE at 18% or higher under Japanese GAAP (disclosed in May 2023).

ROIC

(%)

20% orhigher

15% orhigher

20

14.2
10

ROE

(%)

20

15.3

17.2*
18.9

9.2
10

JGAAP

IFRS

0

11.2

10.2

JGAAP

IFRS

0
FY20

FY21

FY22

FY23

FY24

FY25

FY20

FY21

FY22

FY23

FY24

FY25

*ROE excluding the impact of impairment losses announced on April 11, 2023

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36

Cash Allocation

Revise the ratio between growth investment andshareholder return to 50% : 50%.
（¥ billion)

Cash allocation (Estimate)（FY23~25）

60.0
50.0

260.0
200.0

Dividends

50%

Growth investment,
repayment ofborrowings, etc.

50%

Total for the 3 years
EBITDA(Before tax)

Tax

Total for the 3 years
EBITDA(After tax)

Investment in IT
including software

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37

Increasing shareholder return(increasing the dividend payout ratio)
Increase the dividend payout ratio* (dividend payout ratio policy under the previous Midterm Management Plan: Approx. 25%) to approx.
Management Plan 2026.
Annual
年間配当(円)dividend(¥)

50% under the Mid-term

Payout ratio(%)
配当性向(%)

Approx.50％

120

50%
40%

34.2％
80

25.7%

30%

24.5%

20%

86

40
61

(E)

10%

42
26
0

0%

FY20

FY21

FY22

FY23

FY25

* Dividend payout ratio based on adjusted EPS

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38

Mid-term Management Plan
2026
~Governance~

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

Outline of the Corporate Governance System andInternal Control System
We will strengthen our existing structure and control systems with the new addition of sustainability-related
items
General Meeting of Shareholders
ReportBoard ofdirectors

Corporate GovernanceCommittee

AdviceDirectors who are not
Supervisory Committee
members

Audit

Supervisory Committee
Directors who are Supervisory
Committee members

Appointment and Dismissal / Delegation of theexecution of important operations / Oversight

Audit

ReportingDirectly to
the CEO

Report Accounting

AuditorReportAccounting audit

Cooperation

CEO

Business management

Appointment/
dismissal

Appointment/dismissal

Appointment/dismissal

Nomination and Compensation
Consultation
Committee

Head of Corporate Functions

Internal Audit
Division

HMC

Staffing SBUCSOBPO SBU

CFO

Sustainability Committee

Human Resources Committee

Technology SBU

CHROInvestment Committee

Gender Diversity Committee

Career SBU

CIO/CDO

Risk Management Committee

Staff Well-being Committee

Asia Pacific SBU

R&D FUTechnology Committee

HMC＝ Headquarters
Management Committee

SBU＝Strategic Business Unit
FU＝Function Unit

CEO＝Chief Executive Officer
CSO＝ Chief Strategy Officer

CFO＝Chief Financial Officer
CHRO＝Chief Human Resources Officer

CIO = Chief Information Officer
CDO= Chief Digital Officer

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40

Towards 2030
Aim for value creation of 500,000 people by the final fiscal year of the current Mid-term Management Plan
(FY2025) and one million people by 2030.
Towards 2030
Current(FY22)
Gaol for Value
Creation⚫ 380,000（※1）⚫ Proactive use of technologies

Technologydriven HR
servicecompany

in some businesses (including
Career) ahead of others

Current Mid-termManagement Plan
(FY23-FY25)

Staffing is high in terms of
profit, and the businessportfolio is not clear.

2030
A “Career Well-being”
Creation Company⚫ 500,000⚫ 700,000 - 800,000⚫ One million people (creating better work

⚫ Improving productivity in the⚫ Discontinuous productivity⚫ An HR service company that can achieve⚫ Increasing the number of work

⚫ Dramatically increasing the⚫ Establishing Career as a profit⚫ Establishing a stable business

Workforce Business, mainly
through digitalization

opportunities created in the
Digital Platform Business andimproving its contribution to
profit⚫ The degree of dependence on

Next Mid-termManagement Plan
(FY26-FY28)

growth pole which iscomparable to Staffing

opportunities)

improvement in Workforce
Business through DX

discontinuous growth with products anddigitalization while attaching importanceto the intervention value of people

number of work opportunities
created in the Digital Platform
Business and its contribution
to profit

portfolio with multiple
businesses existing as profit
growth poles in Japan⚫ An HR company with multiple mainstay

businesses and business models in Japanand APAC

APAC

Business
Portfolio

BPO
Technology
CareerStaffing※1 temporally number and subject to change

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41

CEO Message

1
2
3
4
5

Aim to achieve the Group Vision, "Work and Smile"
as a “Career Well-being” Creation Company .
Aim to create better work opportunities for one million people by 2030.
Enhance investment in technology
to evolve into a technology-driven HR service company.
Aim to achieve adjusted EBITDA at 100.0 billion yen in the final fiscal
year under this Mid-term Management Plan (FY25).
Increase shareholder return with a dividend payout ratio of approx. 50%.
Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

42

Appendix

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

Reposted: Positions of businesses andmanagement policy
The position of each business and management policy are as follows. In particular, under this Mid-term Management
Plan, we position Career, BPO, and Technology as the domains of focus and invest proactively in them.
The Group‘s foundation
Continue to be the foundation of theGroup's growth.

Pillars of profit growth
Proactive business investments, for thesake of significant profit growth in themedium to long term

Staffing– Contribute to the Group's growth by strengthening relations with customers.

CareerBPO

Technology

Reinforce the foundations
for a breakthrough.

APAC

Improve earnings to enable large-scale investment
for growth in FY2025 and beyond.

Investments toward thefutureImplement R&D after achieving an
investment quota at a certain level.

– Aim to achieve growth by increasing market share despite the possibility of a shrinking the clerical andadministrative staffing market over the long term.

R&D– Aim to achieve growth exceeding market growth while the career-change-related market continues toexpand.

– Continue to make investments that contribute to medium- to long-term businessgrowth and the acquisition of competitive advantages.
– Aim to achieve growth exceeding market growth by taking advantage of the customer base of temporary
staffing.

– Make large-scale investments, mainly to acquire the ability to achieve a business
transformation.
– Reinforce the foundations for large-scale recruitment and the development of high value-added humanresources and improve sales capabilities, in an attempt to increase billing rates.

– Continue large-scale recruitment to derive medium- to long-term competitive
advantages.

– Achieve earnings improvement at a level that will contribute to improving shareholder value.
– Invest in a quantitative expansion after improving earnings.

– Achieve an investment quota at a certain level to explore and create businesses related to Career Wellbeing.
Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

44

Staffing SBU Strategic Summary

Outlook for themarketenvironment

Competitive
advantages

⚫

⚫

⚫

Strategies
and policies

Financial
targets(FY25)⚫
⚫

The clerical and administrative staffing market will contract over the long term gradually, mainlyreflecting a decline in the working population and replacement with technology. However, themarket will grow slightly in the short term, partly due to labor shortages.
Aim to increase market share further by improving competitive advantages.
(1) No. 1 share of the clerical and administrative staffing market(2) Outstanding customer base and creditworthiness(3) Size and high level of satisfaction of registered staff
Aim to be a company that creates fun to work and continues to be chosen by workers,
by increasing awareness about workers and offering the chance to fulfill possibilities and be noticed
with more diverse options.
(1) Helping staff to work in their own ways
(2) Reinforcement of proposal capabilities for human resource utilization capturing
clients’ businesses and environment changes(3) Improving engagement by encouraging the active participation of employees(4) Initiatives to improve efficiency, such as the use of digital technologies (reinforcing
the operation base)Sales: ¥700.0 billion (CAGR: 9%)
Adjusted EBITDA : ¥37.0 billion (CAGR: 12%)
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45

Reposted: BPO SBU Strategic Summary

Outlook for themarketenvironment

Competitive
advantages

Strategies
and policies

Financial
targets(FY25)

⚫
⚫

⚫

⚫
⚫

⚫
⚫

The average annual growth rate of the BPO market in Japan is 2-6%. The market is expected tocontinue growing at a certain rate.
A broad array of corporate needs exist. The capability to provide customer value over a wide
range is required.
(Digitalization, deep expertise, performance commitment models, HR issue resolution, etc.)
Improve the following competitive advantages, aiming to achieve growth exceeding market growth.
(1) Customer acquisition capability (2) Capability of supplying human resources(3) Business design and digitalization capability(4) Capability of utilizing and developing human resources
Reinforce the customer base and enhance the ability to solve customer issues throughorganizational restructuring and integration within the Group.
Enhance the ability to fundamentally design digitalization through human capital investment and
M&A.

Sales
: ¥130.0 billion
Adjusted EBITDA : ¥12.5 billion

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46

Reposted: Technology SBU Strategic Summary

Outlook for themarketenvironment⚫

⚫

Competitive
advantages⚫

⚫

Strategies
and policies

Financial
targets(FY25)⚫
⚫

The engineering staffing and contract market in the IT and engineering domain is expected tocontinue to grow steadily due to the expansion of DX demand and the shortage of engineers andother professional human resources.
Make maximum use of the Group's synergy as a competitive advantage.
(1) Quantity of attractive projects (advanced projects and high-tech projects), with ahigh ratio of outsourced projects(2) The ability to recruit and develop human resources by leveraging the knowledge
we possess as a comprehensive HR service group
Aim to achieve business growth by expanding domains, with a focus on the IT business, while
reinforcing the engineering domain as the foundation.
(1) Enhance human capital through large-scale recruitment and enhancement of training.
(2) Increase billing rates by enhancing sales capability and strengthening domains with highadded value.

Sales: ¥115.0 billion (CAGR: 7%)
Adjusted EBITDA : ¥10.0 billion (CAGR: 14%)

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47

Reposted: Career SBU Strategic Summary⚫

Outlook on
the market
environment

Competitive
advantages

⚫

⚫

⚫

⚫
⚫

Strategies
and policies

Financial
targets(FY25)⚫
⚫

⚫
⚫

The percentage of people who change their careers will increase given shortages of humanresources and employment mobility, and the career-change market continues to grow.
Above all, the high-class domain (annual income of 6.0 million yen or more) anddirect recruiting (DR) will grow significantly.
In addition, the side job and freelancer domain, which is a market adjacent to thecareer-change market, is also expected to grow significantly.

(1) One of the largest databases of job seekers and companies seeking workers in Japan(2) Multitiered recruitment solutions that cater to the needs of job seekers andcompanies seeking workers(3) Optimal matching based on data and technologies
A unique business model based on multitiered recruitment solutions (especiallystrengthening high-career and DR domains)
Evolution into a next-generation model that improves the capability to recruit
individuals

Sales: ¥210.0 billion (CAGR:26%)
Adjusted EBITDA: ¥ 43.0 billion (CAGR:29%)

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48

APAC SBU Strategic Summary

Outlook for themarketenvironment⚫
⚫

⚫

Competitive
advantages⚫

Strategies
and policies

Financial
targets(FY25)⚫
⚫

The APAC market is expected to grow significantly given a rising working population and economic
development in the future.
The temporary staffing and job placement markets (in terms of gross profit) in APAC (excluding
China and India) are expected to exceed the market in Japan by 2030.
Aim to achieve growth exceeding market growth by improving the following as competitive
advantages.
(1) A high share in each market (e.g., No.1 in Singapore and Malaysia)(2) Collective strength of HR business (providing a wide range of HR services bycomprehensively covering key areas in the APAC region)(3) Technologies (using technologies in cooperation with businesses in Japan)
Aim to become the No. 1 HR service company in terms of size and profitability in the APAC region,
which is expected to grow further, under foundations of high productivity and an efficient operation
base.
(1) Revise the business portfolio(2) Implement structural reforms and cost optimization(3) Boost productivity through DX investment

Sales: ¥400.0 billion (CAGR: 1%)
Adjusted EBITDA : ¥12.5 billion (CAGR: 18%)*1

Note: Exchange rates are converted to national currency rates based on 130 yen to the US dollar.
Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.
*1: EBITDA target announced in Aug. 2022 was ¥15.0 billion, which is ¥12.5 billion on adjusted EBITDA basis.

49

Reference:
Market potential related to the goal of value creation
We have ample room for growth in Japan. APAC market has even greater potential.

APAC Market

Domestic Market

30

Overallbusinessdomains

Domains where we may operate on a certain scale in
the future• Temporary staffing (overall)• BPO (overall)• Career change (overall)• Side job (overall)• Technology (overall)• Part-time jobs (overall)million people

100

million people
or more10

million peopleMain/adjacent
domains

Domains where we will operate on a certain scale in the
future, including adjacent areas• Temporary staffing(clerical and administrative/
manufacturing)• Career change (overall)

2.6

million people

Mainstay
Business
Area• Technology (overall)• BPO (overall)• Side job (skill)

Domains where we operate in a certain scale at present• Temporary staffing(clerical and administrative)• Career change (white-collar)• Technology (IT staffing)• BPO (Non-IT)

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50

Initiatives for Technology-Oriented
Human Resources
In addition to recruitment, we will focus on cultivating employees in terms of both reskilling and upskillingto enhance technology-oriented human resources.
Core Technology
Human Resources

Technology-Utilizing
Human Resources

Human resources who utilize
specialized knowledge of data anddigital technologies for productand business transformation
Type of occupation
Planning /MarketingTechnologies

Sales

Technologyoriented humanresources

Human resources who understandthe latest technologies and work
closely with core technology
human resources to accelerate
digitalization
Upskilling
ReskillingTechnology-Utilizing
Human Resources
Core
Technology
Human Resources

Example of Reskilling

Examples of Upskilling

Inexperienced
technology-oriented
human resource
development program
A program to develop
practical workers by
utilizing the Learning with
Coach service operated by
PERSOL INNOVATION in
addition to OJT and Off-JT

DX assessment & learning
A program approximately
500 people have taken partin, mainly core technology
human resources in Japan

Ex. Security engineer
business architect
Reskilling

Minna-no-Juku
A program for employees tolearn from each other led by
a volunteer manager. Over
120 courses are currently
offered. A total of 30,000
people across 36 Group
companies have taken thecourses.

Technology-Utilizing
Human Resources

Upskilling

Reskilling training session

Low-code development lecture session

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51

Targets related to Materiality
We set targets for 2025 and 2030 for each materiality*1.
KPIs for materiality initiatives
Creating work
opportunities

Solving social
issues throughour business

Foundation
for achieving
sustainablegrowthProviding diverse work
stylesProviding learning
opportunities

2025

2030

Number of people for whom we created (provided/supported) better
employment opportunities

500,000 people

One million people

Number of people for whom diverse work styles became possible

50,000 people

100,000 people

Number of people who received each training service *3(1) 160,000 people(2) 120,000 people(3) - 0,000 people

Increasing productivity
at companies

Net sales of services related to increasing the productivity of companies

Active roles for diverse
human resources*2(1) 240,000 people(2) 230,000 people(3) - 0,000 people¥300 billion－

Engagement score
Percentage of female managers
Employment of persons with disabilities
Ratio of childcare leave taken by male employees

75％
30.8%
4,000
100%

37.0%
100%

Strengthening data
governance*2

Number of instances of the inappropriate handling of data and numberof people involved in these instances*4
Percentage of all employees who have received data management training

0/0
100%

0/0
100%

Respect for humanrights*2

Percentage of all employees who have received training

100%

100%

Responding to climatechangePercent reduction of scope 1 + scope 2 emissions
Percent reduction of scope 3 emissions

17.3%

83.0%*5

In the process of setting up

In the process of setting up*1 Although the targets for 2025 and 2030 are basically set to clarify the direction and achievement level of the strategy, some items are still under consideration due to high uncertainty at this time, and are marked as “-”.
*2 Domestic only, not including APAC
*3 (1) Providing learning opportunities for temporary employees (2) Corporate training for upskilling and career self-reliance, placement services provided after upskilling (3) Providing learning opportunities for students
and working members of society*4 Number of serious and severe incidents defined by PERSOL
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52*5 100% carbon neutrality including carbon offsets

【Reposted】

Asia Pacific SBU
Mid-term Business Plan 2026
（announced in Aug. 2022）

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Our Vision to APAC

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54

Positioning of PERSOL's APAC businessInstill Group Vision

Realizing “Work and Smile” in APAC region.

Solve Social Issue

Solving Japan's labor issues by supporting human resourcesfrom the APAC region.

Create Synergy by Technology

Creating group synergy through technology investment
in APAC region/market.
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55

Human Resources Markets in the APAC Region:
Comparison of Labor Forces◼ The APAC region accounts for roughly 50% of the global labor force◼ The region has the highest wage growth and human resource mobility in the world
Labor force (2021)
New Zealand

2,896Singapore

3,441

Hong Kong

3,866(thousand people)

Taiwan11,919Australia

13,777

Malaysia

16,277

South Korea
Thailand
VietnamJapan
Indonesia
India
China

Average population growth rate (2022-2025)Japan-0.48%South Korea-0.11%

China-0.10%

Taiwan-0.01%
0.05%

Singapore
Thailand

28,606

Hong Kong

39,052

Vietnam

56,15168,014
139,164◼ The APAC region accounts for roughly 50% of the global laborforce◼ The labor force of major countries of the ASEAN region is 250
million people, around 4 times the labor force of Japan

0.83%
0.89%

Indonesia

0.90%

Australia
793,777

0.47%

India
Malaysia

471,295

0.10%

New Zealand

1.19%
1.24%
1.31%

◼ While the populations of a majority of ASEAN nations and the
ANZ region* are seeing positive growth, Japan has thelargest rate of decline◼ According to research by Willis Towers Watson, in 2022 wages
are expected to increase the most in the APAC region
compared with other regions.

* ANZ region: Australia and New Zealand

Source: World Bank “World Development Indicators” database (as of February 2022)
National Statistics, Republic of China (Taiwan) (as of May 2022)

Source: International Monetary Fund “World Economic Outlook” database (as of April 2022)

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56

History of the APAC SBU◼ There were issues with profitability, including impairment losses posted by Programmed

in 2019◼ With the shift to the SBU structure in 2020, overseas businesses were consolidated underthe APAC SBU◼ By acquiring additional shares in PERSOLKELLY in 2022, we unified the entities under
APAC SBU with the aim of making further improvement in profitability

Acquisition of
Programmed
Establishment of North Asian
JV as the predecessor of
PERSOLKELLY

2012

Establishment of thecurrent PERSOLKELLY by
expanding the scope of JV
to the entire APAC region

2016

Impairment losses
posted by
Programmed

Impairment
losses posted by
PERSOLKELLY

2017

2018

Additional acquisition ofshares in PERSOLKELLY

Shifting to a SBU
structure, consolidating
overseas businesses
under the APAC SBU

2019

2020

2022

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57

Future Initiatives in the APAC SBU[Phase 3] (FY2031-)
Establishing APAC businesses as one of the pillars of
PERSOL’s growth and earnings[Phase 2] (-FY2030)
Reforming to a technology-driven business model incollaboration with businesses in Japan, and responding totalent mobility in the APAC region including Japan[Phase 1] (-FY2025)
Creating an integrated management foundation in APAC
SBU, improving profitability and hitting the must-havetarget of 10% ROIC in FY2025
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58

Overview of the APAC SBU Mid-term Management Plan
Phase 1: Improving profitability
1 PERSOL in the APAC market and APAC region-FY2025✓ Comprehensive coverage in major markets in the APAC region and top market share in Singapore, Malaysia andAustralia✓ Management team comprising experienced professionals with diverse backgrounds✓ Integrated organization and management structure through the additional acquisition of shares in PERSOLKELLY

2 Mid-term Management Plan
✓ Commitment to achieve operating profit of 10 billion yen* and ROIC of 10% in FY2025, focusing on overall cost
optimization and more efficient employment of capital* Calculated on an IFRS basis

3 Business Strategy (three strategic pillars)✓ Revise the business portfolio, implement structural reforms and cost optimization, and boost productivity
through DX investment-FY2030

Phase 2:Further growth towards
2030

FY2031Phase 3:
Establishing APAC businesses
as one of the pillars of
PERSOL’s growth and earnings
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59

PERSOL in the APAC Market and APAC Region
Mid-term business environment and growth potential of the Asia Pacific SBU

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60

PERSOL's Market Share in the APAC Region
PERSOL has establishes a firm position as a leading human resources solution company
in the APAC region
Leading market share in Singapore, Malaysia and Australia

Australia

23%

Malaysia

SingaporePERSOL's
market share

PERSOL's
market share

27%

PERSOL's
market share

13%

Human resource services
Market size

Human resource services
Market size

Blue-collar temporary staffing
Market size

◼ No.1 market share of 23%◼ No. 1 market share specializing in
temporary staffing and businessoutsourcing◼ A preferred supplier that is one of major
players

168 billion yen◼ As the driving force of economic growth,
the government has created many
opportunities for the human resource
services industry, and our initiatives
focused on the public sector have beensuccessful.

65 billion yen◼ As with Singapore, the public sector is
promoting economic growth◼ There is potential for further growth due tonurse training plans for the developmentof nursing cities particularly in the ASEAN
regionSource: Singapore/Malaysia - company financial statements from ACRA/SSM, SIA Reports, internal company analysis
ANZ region - IBIS World Reports, press releases, McKinsey Expert Interview
Note - Exchange rates are converted to national currency rates based on 130 yen to the US dollar.

592 billion yen◼ Demand for bule-collar temporary
staffing is expected to grow steadily as theworkforce increases 4% by 2025, despite
the impact from automation and the shift toa service industry

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APAC SBU Results for the FY2021 (January to December 2021)
OthersMalaysia

Gross profit
by majorcountries

China

3%
6%
11%

Singapore(unit: billion yen)

Net sales
Gross profit
Gross profit margin
Operating profit
Operating profit margin
EBITDAEBITDA margin
*1
*3

14%

Others

Total

34.5%

Total

Gross profit
by segments

38.8
billion yen
66%

38.8
billion yen

ANZ region

65.5%

Staffing
business

Staffing business*1

Other businesses*2

Asia Pacific SBU Total*3

206.4
25.4

87.9
13.2

290.1
38.8

12.3%

15.1%

13.4%

3.2

2.1

1.0

1.6%

2.4%

0.4%

4.5

4.4

7.6

2.2%

5.0%

2.7%

Temporary staffing, placement business, etc.
*2 Facility management, property services, healthcare, etc.
Results were on a Japan GAAP basis. In addition, this SBU consists of an administrative department overseeing businesses and other organizations in addition to PERSOLKELLY and Programmed.
Results of the said department, etc. are not included in the above, so the totals do not match.

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62

PERSOL's Strengths in the APAC Region
Towards improved profits through the additional acquisition of shares in PERSOLKELLY
and structural reforms

Collective
strengths

Management
diversity

Collective strength tocomprehensively cover
key areas in the APAC
region and provide a wide
range of HR services

A management team withdiverse backgrounds
swiftly responding to fast
evolving markets

Technologies

Boosting productivity andcultivating new markets
in the APAC region by
further utilizing technologies
in collaboration withbusinesses in Japan

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63

Mid-term Management Plan
April 2023 to March 2026

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64

Targets for FY2025

Fiscal year to be changed (from Jan.-Dec. to Apr.-Mar.) from FY2023
Group Vision

Work and Smile
Mid-term Management Targets

Become the No. 1 human resource services company
in the APAC region, in terms of size and profitability,

under a highly efficient and productive management,
enabling further growth in FY2025
Numerical Targets of Particular Importance

ROIC

10

%*1

Operatingprofit10billion yen*2*1 Invested capital in FY2025 is expected to be 70 billion yen

FY2025

EBITDA15

billion yen*2 Calculated on an IFRS basis

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65

Financial Targets for FY2025
Aim to improve the overall profitability of the APAC SBU, achieving operating profit of
10 billion yen and EBITDA of 15 billion yen(billion yen)

FY2021 Results*(January to December 2021)

Final Year of
the Mid-term Management Plan
(April 2025 to March 2026)

APAC SBU Total

Staffing business

APAC SBU Total

Staffing businessNet sales

338.0

241.0

400.0

300.0

Operating profit

3.8

4.7

10.0

9.0

OP margin

1.2%

2.0%

2.5%

3.0%

EBITDA

8.9

5.2

15.0

11.0

EBITDA Margin

2.6%

2.2%

3.8%

3.7%

* For the FY2021 results, to enable comparison with the targets in the final year of the Mid-term Management Plan under the same conditions, exchange rates are converted to national currency rates
based on 130 yen to the US dollar, and figures based on the assumption of the transition to IFRS planned for introduction from the FY2023 were used.

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66

Business Strategy
April 2023 to March 2026

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67

Three Pillars of the APAC Strategy❶ Revise the business portfolio❷ Implement structural reforms and cost optimization❸ Boost productivity through DX investment

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68

Key Measures by Strategy: Strategic Pillar 1
Revise the Business Portfolio
Current

Key Measures
A◼ Low ratio of the placementbusiness in the ANZ region◼ Low ratio of the whitecollar temporary staffing
business in the ANZ region

Improve profitability of the staffing businessby expanding the

KPIs FY2021 → FY2025
Gross profit ratio of
the placement business18%

placement businessacross the entire APAC SBU

Portfolio reformof the staffing business in the ANZ region

Gross profit ratio of thewhite-collar temporary staffing andplacement business in the ANZ region5%◼ Property services in the
ANZ region create a burden
on working capital because
it takes time to recoverinvestment◼ Facility management
requires less working
capital, contributing to
improved ROIC

27%

13%

B
In other businesses,

focus on facility
management

Growth rate of gross profit
and operating profitof the facility management

Gross profit:+63%

Operating profit:+55%

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69

Key Measures by Strategy: Strategic Pillar 2

Implement Structural Reforms and Cost Optimization
Current◼ At Programmed andPERSOLKELLY, there are
overlapping head officeand support functions, aswell as independent IT
infrastructures◼ At Programmed, there areback office functions ineach operating department

Key Measures
C
Eliminate duplications inhead office function andconsolidate support functions to

reduce costs

D

KPIs FY2021 → FY2025
Cost reductions(last FY of mid-term management plan)-900 million yen

Cost reductions(last FY of mid-term management plan)◼ Labour cost in Australia ismuch higher comparedwith most ASEAN nations

Utilize the shared services center
in Malaysia toreduce costs-800 million yen

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70

Key Measures by Strategy: Strategic Pillar 3
Boost Productivity Through DX Investment
Current

Key Measures
E◼ In the placement business,consultants spend an
enormous amount of time
searching for andnarrowing down
candidates

Develop AI matchingcollaborating with Career SBU andimprove the productivityof placement businessconsultants

F◼ In the temporary staffing
business, a large-scaleback office is required
because of the amount ofmanual work. This results
in a heavy cost burden*1*2

Utilize automation tools andprocess improvement tools toimprove productivity
in the temporary staffing
business

Gross profit of the placement business / base salaries of consultants
Overhead costs of the temporary staffing business / net sales from the temporary staffing business

KPIs FY2021 → FY2025
Consultant Productivity*1

Improve by

15%

Overhead cost efficiency
in the temporary staffing business*2

Improve by

10%

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Breakdown of Operating Profit Improvements(billion yen)

E
C
Consolidation of
support functions

A

Other

Improving productivity ofplacement businessconsultants

Expansion of theplacement
business

F
D
B

Improved productivity
in the temporary
staffing business

Utilization of theshared services center

Focus on the facility
management

FY2021ResultFY2025
Forecast
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72

Further Growth towards 2030
In order to achieve further growth towards 2030, we must
1) Invest in the HR tech area while examining investment efficiency
2) Promote the reform of business models through technology in collaboration with businesses in Japan
3) Grasp opportunities in supplying human resources from APAC to Japan, which is facing a serious
shortage of human resources

Operating profit*1
Existing Businesses
HR Tech(On-demand staffing and a model combines digital media and placement business, etc,)(billion yen)In addition to steady profit
growth in existing businesses, the
new model HR tech business is
expected to contribute to profits
Improve productivity forexisting businesses andestablish an efficientmanagement base

*1
*2

3.8

4.9

FY2021

FY2022

Calculated on an IFRS basis
Size of the graph element for FY2030 is for illustrative purposes only

10.0

FY2025

FY2030*2
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73

Disclaimer

The statements concerning PERSOL HOLDINGS’s future business performances inthis material such as earnings forecasts are based on information available as of
May 15, 2023 and certain assumptions deemed to be reasonable by PERSOLHOLDINGS, and do not mean that PERSOL HOLDINGS promises to achieve thesefigures. Actual results may differ materially from the statements due to a variety
of factors.
The figures and indicators included in this material have been released to facilitate
an appropriate understanding for business results and financial status of PERSOLGroup. Kindly note that not all the figures and indicators, including actual figureson an IFRS basis, have been subjected to audit and review by external auditors.

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