Consolidated Financial Results
for the Three Months Ended March 31, 2024
[Japanese GAAP]May 15, 2024

Company name: JAC Recruitment Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2124
URL: https://corp.jac-recruitment.jp/en
Representative: Hiromi Tazaki, Co-Founder, Chairman, CEO and Managing Director
Inquiries: Toshihiko Okino, Director, Head of Administration and CFO
Phone: +81-3-5259-6926
Scheduled date of filing quarterly securities report: May 15, 2024
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Available(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended March 31, 2024 (January 1, 2024 to March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Net Sales
Three months ended million yen
March 31, 2024
9,547
March 31, 2023
8,746

(Note) Comprehensive income:Operating Income% million yen

9.2
17.1

% million yen

2,212
2,156

Profit Attributable to
Owners of Parent

Ordinary Income

2.6
(6.7)

% million yen

2,218
2,170

2.2
(6.4)

Three months ended March 31, 2024: ¥1,565 million [2.7%]
Three months ended March 31, 2023: ¥1,524 million [(10.9)%]

Earnings Per ShareThree months ended
March 31, 2024
March 31, 2023

1,501
1,485

%

1.1
(9.3)

Diluted Earnings
Per Share

yen

yen

9.41
9.25

–
–

(Note 1) Diluted earnings per share are not presented as there were no dilutive shares.
(Note 2) The Company conducted a four-for-one stock split effective January 1, 2024. Earnings per share have been
calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
(2) Consolidated Financial Position

As ofMarch 31, 2024
December 31, 2023

(Reference) Equity:

Total Assets

Net Assets

million yen

Equity Ratio

million yen

20,726
23,518%15,34917,21774.1
73.2

As of March 31, 2024: ¥15,349 million
As of December 31, 2023: ¥17,217 million

2. Dividends

1stQuarter-end

yen

2nd
Quarter-end

Annual Dividends
3rdYear-end
Quarter-end

yen

yen

yen

Total
yen

–
0.00
–
90.00
90.00
Fiscal year ended December 31, 2023–
Fiscal year ending December 31, 2024
Fiscal year ending December 31, 2024
0.00
–
26.00
26.00
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None
The Company conducted a four-for-one stock split effective January 1, 2024. The actual dividend amounts forthe fiscal year ended December 31, 2023, are presented based on pre-stock split figures.

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3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2024 (January 1, 2024 to
December 31, 2024)(% indicates changes from the previous corresponding period.)

Net Sales
million yen%

Operating Income

Ordinary Income

million yen

million yen%%

First half
(Cumulative)
19,580
13.5
4,525
8.7
4,536 8.9
40,04216.1
9,450 15.0
9,453 15.2
Full year(Note) Revision to the financial results forecast announced most recently: None

Profit Attributable to
Owners of Parent

Earnings
Per Share

million yen

%

yen

3,263
6,800

8.0
13.8

20.47
42.62

*Notes:(1) Changes in significant subsidiaries during the three months ended March 31, 2024 (changes in specified subsidiaries
resulting in changes in scope of consolidation): None
New: –
Excluded: –(2)

Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of March 31, 2024: 165,557,200 shares
As of December 31, 2023: 165,557,200 shares2) Total number of treasury shares at the end of the period:
As of March 31, 2024: 5,525,256 shares
As of December 31, 2023: 6,000,984 shares
3) Average number of shares during the period:
Three months ended March 31, 2024: 159,599,043 shares
Three months ended March 31, 2023: 160,522,855 shares(Note) The Company conducted a four-for-one stock split effective January 1, 2024. Total number of issued sharesat the end of the period, total number of treasury shares at the end of the period and average number ofshares during the period have been calculated on the assumption that the stock split was conducted at the
beginning of the previous fiscal year.
*These quarterly financial results are outside the scope of quarterly review by a certified public accountant or an audit
firm.
*Disclaimer Regarding the Use of the Financial Results Forecast and Other Special Notes
The financial results forecast and other forward-looking statements in this document are based on information
currently available and certain assumptions the Company deems to be reasonable. Actual results may differ significantly
from these forecasts due to a variety of factors. For the assumptions used for the financial results forecasts and the notes
regarding the use thereof, please refer to “(3) Explanation of Consolidated Financial Results Forecast and Other
Forward-looking Information” on page 3 of the attachment.
We will post supplementary briefing materials for quarterly financial results on our website immediately after
disclosing this consolidated financial results.

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Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ........................................................................ 2(1) Explanation of Operating Results ...................................................................................................... 2(2) Explanation of Financial Position ...................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .. 3
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................ 4(1) Quarterly Consolidated Balance Sheets ............................................................................................. 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................... 6
Quarterly Consolidated Statements of Income ................................................................................... 6
Quarterly Consolidated Statements of Comprehensive Income .................................................................7(3) Notes to Quarterly Consolidated Financial Statements ...................................................................... 8(Notes on going concern assumption)................................................................................................. 8(Notes in case of significant changes in shareholders’ equity) ........................................................... 8(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements) .......................................................................................................................................... 8(Segment information, etc.) ................................................................................................................ 9-1-

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the three months ended March 31, 2024, according to the Bank of Japan’s Tankan Survey released in
March, the Japanese economy saw eight consecutive quarters of improvement in the diffusion index (DI) of
business conditions for large companies in the non-manufacturing industry on the back of robust inbound demandand other factors. However, the DI deteriorated for the first time in four quarters for those in the manufacturingindustry due to quality irregularities at certain automobile manufacturers, resulting in mixed business sentiments.
As for the future outlook, the DI deteriorated for large companies in both the manufacturing industry and the nonmanufacturing industry amid concerns about increasing human resource shortages and declining demandassociated with high prices.
Under these circumstances, in the Domestic Recruitment Business, which accounts for about 90% of theCompany’s consolidated net sales, Japanese companies remained highly motivated to hire employees, and thejob change market continued to grow steadily thanks to government policy measures and the promotion of humancapital management, even though the reactionary demand that had occurred immediately after the end of the
COVID-19 pandemic had already run its course. The jobs-to-applicants ratio fell somewhat, but remained robust
during the period under review. With respect to human resources, however, the government’s call for higher
wages and other factors have led to improvements in employee compensation, particularly among large
companies, and the mobility of human resources stagnated in the job change market. As a result, net sales in the
period under review were lower than planned at the beginning of the period. Going forward, we will optimize
focal job offers based on the market environment described above. Specifically, we will further strengthen thesystematic management of major client companies, on which we have been focusing since the previous year, as
the “Account Management 2.0.” We will also focus on the priority markets for 2024, including the local market
with high growth potential and the executive market with high profitability, to maximize the business synergiesof the Group. In addition, we have been adding consultant staff as planned at the beginning of the period, which
is vital to the growth of this Business. We are making efforts to improve employee satisfaction and prevent
employee turnover by training them in an agile manner using the JAC Standard, an introductory training program
we developed on our own, while enhancing career programs within the Group.
Regarding the Overseas Business, the market conditions remain difficult, especially in Asia, but we aim toachieve regrowth and improve profitability by strengthening our services for Japanese companies in Europe andthe United States, where hiring needs are high, while aiming to open new offices at the same time.
As for the Domestic Job Offer Advertising Business, we will increase contact points with Japanesecompanies, in addition to foreign companies, while focusing on sales efforts for direct recruiting by clientcompanies, in order to expand sales.
Selling, general and administrative expenses, on the whole, have been in line with what was planned at
the beginning of the period, even though we resumed active advertising, including television commercials, atthe beginning of the year. Going forward, we will continue to make efforts to further improve profitability bystrengthening our database and promoting business process reengineering (BPR) for our operational process.
As a result, for the three months ended March 31, 2024, net sales reached ¥9,547million (up 9.2% year onyear). By segment, the Domestic Recruitment Business, the Domestic Job Offer Advertising Business, and theOverseas Business had net sales of ¥8,512 million (up 9.7% year on year), ¥89 million (up 22.0% year on year),and ¥946 million (up 3.2% year on year), respectively.
In terms of profit, operating income was ¥2,212 million (up 2.6% year on year), ordinary income was¥2,218 million (up 2.2% year on year), and profit attributable to owners of parent was ¥1,501 million (up 1.1%
year on year). By segment, the Domestic Recruitment Business posted ¥2,176 million in profit (up 0.7% year onyear), the Domestic Job Offer Advertising Business posted ¥8 million in profit (a loss of ¥9 million in the same
period of the previous fiscal year), and the Overseas Business posted ¥28 million in profit (up 62.7% year onyear).

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The following is the sales performance by segment for the three months ended March 31, 2024:
Segment
Net sales (Million yen)
Year-on-year comparison (%)
Domestic Recruitment Business

8,512

109.7

Domestic Job Offer Advertising
Business

89

122.0

Overseas Business

946

103.2

9,547

109.2

Total
(Note) Intersegment transactions were eliminated.

The following is the sales performance by segment and industry:
Segment/industry
Net sales (Million yen)

Year-on-year comparison (%)

1. Domestic Recruitment BusinessElectrical, machinery, chemical

3,298

119.9

Consumer goods, services

1,811

117.0

Medical, healthcare

1,218

98.1

IT, telecom

1,042

95.7

Consulting

667

88.4

Financial services

449

133.6

Other

24

68.4

8,512

109.7

89

122.0

946

103.2

9,547

109.2

Domestic Recruitment Business Total
2. Domestic Job Offer Advertising
Business
Domestic Job Offer Advertising
Business Total
3. Overseas Business
Overseas Business Total
Total(Note) Intersegment transactions were eliminated.

(2) Explanation of Financial Position
Total assets at the end of the first quarter ended March 31, 2024 decreased by ¥2,792 million from the end of theprevious fiscal year to ¥20,726 million. Cash and deposits decreased by ¥3,298 million as a result of dividend
payments, etc. and deferred tax assets decreased by ¥387 million, although accounts receivable - trade increasedby ¥691 million.
Liabilities decreased by ¥924 million from the end of the previous fiscal year to ¥5,376 million. Accrued
expenses decreased by ¥1,708 million and income taxes payable decreased by ¥867 million, although provision
for bonuses increased by ¥1,019 million.
Net assets decreased by ¥1,868 million from the end of the previous fiscal year to ¥15,349 million, and theequity ratio came out to be 74.1%. The Company posted profit attributable to owners of parent of ¥1,501 million,
but paid dividends of surplus totaling ¥3,635 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the consolidated financial results forecast for the six months ending June 30, 2024, and the fiscal year
ending December 31, 2024, there is no change from the consolidated financial results forecast released on
February 14, 2024.
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2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Leased assets
Accumulated depreciation
Leased assets, net
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Lease and guarantee deposits
Claims provable in bankruptcy, claims provablein rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Long-term accounts receivable - other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

As of March 31, 2024

16,767
1,928
0
384
314
(24)
19,37013,468
2,619
1
636
132
(17)
16,839

526
(237)
289
66
(45)
21
0
(0)
–
419
(275)
144
4
(2)
1
436
(104)
331
788

543
(251)
292
66
(47)
19
0
(0)
–
435
(286)
149
4
(3)
1
481
(83)
398
860

721
550
154
1,426

704
517
150
1,372

0
0
928

0
0
1,036

10

10

24
980
1
(12)
1,933
4,147
23,518

22
593
1
(11)
1,652
3,886
20,726

(Million yen)
As of December 31, 2023
Liabilities
Current liabilities
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Unearned revenue
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for stocks payment
Refund liabilities
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-

As of March 31, 2024

0
504
2,760
1,318
688
297
36
–

0
676
1,051
450
676
816
67
1,019

–

4

204
59
181
6,052

61
70
211
5,108

0
2
245
248
6,301

0
2
265
268
5,376

672
1,516
17,722(2,980)16,930672
1,516
15,588(2,778)14,998286
286
17,21723,518350
350
15,34920,726

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended March 31

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances
Legal welfare expenses
Retirement benefit expenses
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for share awards
Provision of allowance for doubtful accounts
Rent expenses on land and buildings
Depreciation
Amortization of goodwill
Advertising expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Reversal of allowance for doubtful accounts
Gain on cancellation of leases
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

For the three months ended
March 31, 2023
8,746
676
8,069

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(Million yen)
For the three months ended
March 31, 2024
9,547
731
8,815

177
2,251
403
122
971
7
52
6
318
124
29
558
890
5,913
2,156

172
2,501
477
124
1,019
4
58
–
338
145
30
562
1,167
6,603
2,212

2
–
16
4
23

2
8
–
4
15

6
4
0
10
2,170

5
3
0
9
2,218

0
0
2,169
221
462
684
1,485
1,485

5
5
2,213
326
385
711
1,501
1,501

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended March 31

ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the three months ended
March 31, 2023
1,485

(Million yen)
For the three months ended
March 31, 2024
1,501

38
38
1,524

63
63
1,565

1,524

1,565

–

–

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(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements)
The Company calculates the tax expenses of some of its subsidiaries in the quarterly consolidated financial
statements by reasonably estimating the effective tax rate after applying tax effect accounting to profit
before income taxes for the fiscal year that includes the first quarter ended March 31, 2024, and by
multiplying the profit before income taxes by the estimated effective tax rate.

-8-

(Segment information, etc.)[Segment information]
For the three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)
Information on net sales and profit (loss) by reportable segment, and information on disaggregation of revenue(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

7,610

43

146

Segment total

Adjustment

668

8,322

–

8,322

29

247

424

–

424

7,756

73

916

8,746

–

8,746

7,756

73

916

8,746

–

8,746

–

4

5

9

(9)

–

7,756

77

922

8,756

(9)

8,746

2,161

(9)

17

2,169

–

2,169

Overseas
Business

Total

Net sales
Goods transferred at a point
in timeGoods transferred overtime
Revenue from contracts
with customers
Net sales to outside
customers
Intersegment net sales ortransfers
Total
Segment profit (loss)(Notes) 1. Segment profit (loss) is consistent with the profit before income taxes in the quarterly consolidated statements
of income.
2. The figures for the Domestic Recruitment Business reportable segment and the Overseas Business reportablesegment include amortization of goodwill of ¥18 million and ¥10 million, respectively.

For the three months ended March 31, 2024 (from January 1, 2024 to March 31, 2024)
Information on net sales and profit (loss) by reportable segment, and information on disaggregation of revenue(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

8,331

62

180

Segment total

Adjustment

644

9,039

–

9,039

25

301

508

–

508

8,512

89

946

9,547

–

9,547

8,512

89

946

9,547

–

9,547

17

3

4

25

(25)

–

8,529

92

950

9,573

(25)

9,547

2,176

8

28

2,213

–

2,213

Overseas
Business

Total

Net sales
Goods transferred at a point
in timeGoods transferred overtime
Revenue from contracts
with customers
Net sales to outside
customers
Intersegment net sales ortransfers
Total
Segment profit(Notes) 1. Segment profit is consistent with the profit before income taxes in the quarterly consolidated statements ofincome.
2. The figures for the Domestic Recruitment Business reportable segment and the Overseas Business reportablesegment include amortization of goodwill of ¥18 million and ¥11 million, respectively.

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