Consolidated Financial Results
for the Six Months Ended June 30, 2024
[Japanese GAAP]

August 9, 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 semiannual securities report: August 9, 2024
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on financial results: Available(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended June 30, 2024 (January 1, 2024 to June 30, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Net Sales
Six months ended
June 30, 2024
June 30, 2023

million yen

19,097
17,249(Note) Comprehensive income:Operating Income% million yen

10.7
16.3

% million yen

4,358
4,163

Profit Attributable to
Owners of Parent

Ordinary Income

4.7
6.4

% million yen

4,360
4,165

4.7
6.1

Six months ended June 30, 2024: ¥3,022 million [(4.2)%]
Six months ended June 30, 2023: ¥3,155 million [8.5%]

Earnings Per ShareSix months ended
June 30, 2024
June 30, 2023

2,873
3,020

%

(4.9)
10.6

Diluted Earnings
Per Share

yen

yen

17.97
18.87

–
–

(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 ofJune 30, 2024
December 31, 2023

(Reference) Equity:

Total Assets

Net Assets

million yen

Equity Ratio

million yen

23,721
23,518%16,884
17,21771.2
73.2

As of June 30, 2024: ¥16,884 million
As of December 31, 2023: ¥17,217 million

2. Dividends

1stQuarter-end

yenAnnual Dividends
2nd
3rd
Year-end
Quarter-end
Quarter-end
yen

yen

yen

Total
yen

–
0.00
–
90.00
90.00
Fiscal year ended December 31, 2023–
0.00
Fiscal year ending December 31, 2024
Fiscal year ending December 31, 2024
–
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%%

39,000
13.1
8,800
7.1
8,800 7.2
Full year(Note) Revision to the financial results forecast announced most recently: Yes

Profit Attributable to
Owners of Parent
million yen

6,000

%

0.4

Earnings
Per Share
yen

37.50

*Notes:(1) Significant changes in scope of consolidation during the six months ended June 30, 2024: None
New: –
Excluded: –(2)

Adoption of accounting treatment specific to the preparation of semi-annual 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 June 30, 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 June 30, 2024: 5,423,668 shares
As of December 31, 2023: 6,000,984 shares
3) Average number of shares during the period:
Six months ended June 30, 2024: 159,858,857 shares
Six months ended June 30, 2023: 160,023,856 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 semi-annual financial results are outside the scope of 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.

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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. Semi-annual Consolidated Financial Statements and Principal Notes ................................................... 5(1) Semi-annual Consolidated Balance Sheets ........................................................................................ 5(2) Semi-annual Consolidated Statements of Income and Comprehensive Income ................................ 7
Semi-annual Consolidated Statements of Income .............................................................................. 7
Semi-annual Consolidated Statements of Comprehensive Income .................................................... 8(3) Notes to Semi-annual Consolidated Financial Statements ................................................................. 9(Notes on going concern assumption)................................................................................................. 9(Notes in case of significant changes in shareholders’ equity) ........................................................... 9(Accounting methods adopted particularly for the preparation of semi-annual consolidated financial
statements) .......................................................................................................................................... 9(Segment information, etc.) .............................................................................................................. 10(Significant subsequent events) ...................................................................................................... 11-1-

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the six months ended June 30, 2024, according to the Bank of Japan’s Tankan Survey released in June,
the Japanese economy saw an improvement in the diffusion index (DI) of business conditions for large companies
in the manufacturing industry for the first time in two quarters owing partly to expectations for improved businessperformance. However, the DI for those in the non-manufacturing industry deteriorated for the first time in four
years against the backdrop of increasing human resource shortages and other factors, resulting in mixed businesssentiments overall. As for the future outlook, perceptions seem to differ significantly from company to company.
Under these circumstances, in the Domestic Recruitment Business, which accounts for about 90% of theCompany’s consolidated net sales, Japanese companies were still motivated to hire employees to a certain degree.
The jobs-to-applicants ratio, although declined somewhat, by and large remained at the same level as before
during the period under review thanks partly to the government’s labor mobility measures and promotion ofhuman capital management. With respect to human resources, however, the mobility stagnated as pay increases
led to better compensation packages, and as employee retention measures progressed, particularly among large
companies. As a result, the Company’s net sales in the period under review fell below the figure planned at the
beginning of the period. Going forward, the same trend is expected to continue until all necessary data become
available for potential job seekers to make decisions regarding career changes. However, the mobility of middleand high-class human resources, the core target of our business, is expected to remain robust with no significant
changes.
Based on the market environment described above, the Company’s direction is to thoroughly train
consultants who are still relatively inexperienced; they will be trained in basic procedures, from interviews withregistered applicants to their successful placements. For veteran consultants who are the driving force of ouroperations, the emphasis will be on the enhancement of domain expertise with a focus on high-income earners as
we seek to improve productivity. Meanwhile, we have also achieved positive results with respect to the local
market, which is one of our priority markets, as well as measures involving Account Management. In the fiscal
second half, we will continue to expand our Group operations by developing growth areas and AccountManagement in an integrated manner.
Regarding the Overseas Business, the market conditions remain difficult, especially in Asia, but we aim toachieve regrowth and improve profitability by providing services mainly to Japanese companies with strong
hiring needs.
In the Domestic Job Offer Advertising Business, we are seeking to expand sales by shifting to a contingency
fee model and increasing our contact points with Japanese companies, in addition to foreign companies, while
also making sales efforts for direct recruiting by client companies and working to enhance synergies within theGroup through collaboration with our Domestic Recruitment Business.
With regard to selling, general and administrative expenses, in light of the financial results for the firstquarter ended March 31, 2024, we are reviewing advertising expenses, such as those for television commercials,
and promoting company-wide cost-control measures focusing on internal IT costs. We have been making these
efforts since April of this year as we aim to achieve the financial results forecast disclosed to the public.
As a result, for the six months ended June 30, 2024, net sales reached ¥19,097 million (up 10.7% year onyear). By segment, the Domestic Recruitment Business, the Domestic Job Offer Advertising Business, and theOverseas Business had net sales of ¥17,003 million (up 11.6% year on year), ¥190 million (up 23.1% year onyear), and ¥1,903 million (up 2.1% year on year), respectively.
In terms of profit, operating income was ¥4,358 million (up 4.7% year on year), ordinary income was¥4,360 million (up 4.7% year on year), and profit attributable to owners of parent was ¥2,873 million (down 4.9%
year on year). By segment, the Domestic Recruitment Business posted ¥4,290 million in profit (up 4.7% year onyear), the Domestic Job Offer Advertising Business posted ¥20 million in profit (up 141.0% year on year), andthe Overseas Business posted a loss of ¥31 million (a profit of ¥60 million in the same period of the previous
fiscal year).

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The following is the sales performance by segment for the six months ended June 30, 2024:
Segment
Net sales (Million yen)
Year-on-year comparison (%)
Domestic Recruitment Business

17,003111.6

Domestic Job Offer Advertising
Business

190

123.1

1,903

102.1

19,097

110.7

Overseas Business
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

6,297

117.8

Consumer goods, services

3,781

119.5

Medical, healthcare

2,539

108.5

IT, telecom

2,182

100.3

Consulting

1,285

93.6

Financial services

892

116.5

Other

24

38.5

17,003

111.6

190

123.1

1,903

102.1

19,097110.7

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 second quarter ended June 30, 2024 increased by ¥203 million from the end of theprevious fiscal year to ¥23,721 million. Accounts receivable - trade increased by ¥679 million and prepaid
expenses increased by ¥383 million, although cash and deposits decreased by ¥837 million as a result of dividend
payments, etc.
Liabilities increased by ¥535 million from the end of the previous fiscal year to ¥6,837 million. Income
taxes payable increased by ¥292 million, accrued expenses increased by ¥175 million, and accounts payable other increased by ¥144 million.
Net assets decreased by ¥332 million from the end of the previous fiscal year to ¥16,884 million, and theequity ratio came out to be 71.2%. The Company posted profit attributable to owners of parent of ¥2,873 million,
but paid dividends of surplus totaling ¥3,635 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the Group’s consolidated financial results for the six months ended June 30, 2024, net sales, operating
income, ordinary income and profit attributable to owners of parent all fell below the consolidated financial
results forecast for the first-half (cumulative) period of the fiscal year ending December 31, 2024 in theConsolidated Financial Results for the Three Months Ended March 31, 2024 [Japanese GAAP] released on May-3-

15, 2024. This is mainly because, in the Domestic Recruitment Business, the mobility of human resources
stagnated as pay increases led to better compensation packages, and as employee retention measures progressed,
particularly among large companies. Thus, the number of people who changed jobs through the Group’s recruiting
services was lower than expected during the period under review. Given how the business is progressing andplacements are being concluded at present, a deviation from the full-year consolidated financial results forecast
for the current fiscal year is expected in the second half of the current fiscal year. For this reason, we have revised
the full-year consolidated financial results forecast for the current fiscal year.
Meanwhile, the mobility of middle- and high-class human resources, the core target of our business, is
expected to remain robust with no significant changes. Thus, we are proceeding with the hiring of consultants as
an investment for the future in line with the planned at the beginning of the period, and have not revised thedividend forecast.

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2. Semi-annual Consolidated Financial Statements and Principal Notes(1) Semi-annual 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
Construction in progress
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-5-

As of June 30, 2024

16,767
1,928
0
384
314
(24)
19,37015,929
2,607
2
768
140
(24)
19,425

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

544
(255)
289
85
(49)
36
0
(0)
–
452
(304)
148
4
(3)
0
0
459
(130)
328
803

721
550
154
1,426

689
524
186
1,400

0
0
928

0
0
1,032

10

10

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

21
1,046
1
(18)
2,092
4,296
23,721

(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 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-6-

As of June 30, 2024

0
504
2,760
1,318
688
297
36
–
204
59
181
6,052

0
649
2,936
1,610
574
329
52
24
118
62
219
6,579

0
2
245
248
6,301

0
3
254
257
6,837

672
1,516
17,722(2,980)16,930672
1,540
16,960(2,724)
16,448286
286
17,21723,518436
436
16,88423,721

(2) Semi-annual Consolidated Statements of Income and Comprehensive Income
Semi-annual Consolidated Statements of Income

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 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
Gain on cancellation of leases
Reversal of allowance for doubtful accounts
Insurance fee income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on cancellation of rental contracts
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

For the six months ended
June 30, 2023
17,2491,340
15,909-7-(Million yen)
For the six months ended
June 30, 2024
19,0971,450
17,646

361
6,524
838
228
23
106
14
641
257
58
886
1,804
11,745
4,163

346
7,192
990
240
24
115
7
687
270
61
992
2,357
13,287
4,358

4
16
–
2
5
29

4
–
3
3
5
17

11
1
13
0
26
4,165

11
3
–
0
15
4,360

1
–
1
4,164
1,075
68
1,144
3,020
3,020

6
76
82
4,278
1,472
(66)
1,405
2,873
2,873

Semi-annual Consolidated Statements of Comprehensive Income

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 six months ended
June 30, 2023
3,020(Million yen)
For the six months ended
June 30, 2024
2,873

135
135
3,155

149
149
3,022

3,155

3,022

–

–

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(3) Notes to Semi-annual 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 semi-annual consolidated financial
statements)
The Company calculates the tax expenses of some of its subsidiaries in the semi-annual 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 second quarter ended June 30, 2024, and by
multiplying the profit before income taxes by the estimated effective tax rate.

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(Segment information, etc.)[Segment information]
For the six months ended June 30, 2023 (from January 1, 2023 to June 30, 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

14,933100297

Segment total

Adjustment

1,343

16,377–

16,377

54

520

872

–

872

15,230154

1,863

17,249–17,24915,230154

1,863

17,249–17,249

4

10

7

23

(23)

–

15,235165

1,871

17,272(23)

17,249

4,096

8

60

4,164

–

4,164

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 semi-annual consolidated statements ofincome.
2. The figures for the Domestic Recruitment Business reportable segment and the Overseas Business reportablesegment include amortization of goodwill of ¥37 million and ¥21 million, respectively.

For the six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024)
1. 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

16,635146

368

Segment total

Adjustment

1,283

18,064–18,064

44

619

1,032

–

1,032

17,003

190

1,903

19,097–

19,097

17,003

190

1,903

19,097–

19,097

26

8

14

49

(49)

–

17,029198

1,917

19,146(49)

19,097

4,290

20

(31)

4,278

–

4,278

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 semi-annual consolidated
statements of income.
2. The figures for the Domestic Recruitment Business reportable segment and the Overseas Business reportablesegment include amortization of goodwill of ¥37 million and ¥24 million, respectively.

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2. Information on impairment losses on non-current assets and goodwill by reportable segment(Significant impairment losses on non-current assets)
The Overseas Business reportable segment posted impairment losses of ¥76 million for the six months ended
June 30, 2024.

(Significant subsequent events)(Purchase of treasury shares (purchase of treasury shares in accordance with the provisions of the
Articles of Incorporation pursuant to Article 165, Paragraph 2 of the Companies Act)The Company resolved at its Board of Directors meeting held on August 9, 2024 to purchase treasury sharesin accordance with Article 156 of the Companies Act as applied mutatis mutandis pursuant to Article 165,
Paragraph 3 of the same Act and the Articles of Incorporation.
(1) Reasons for purchase of treasury shares:(2) Class of shares to be purchased:(3) Total number of shares to be purchased:(4) Total amount for share purchase:(5) Method of purchase:

To implement a flexible capital policy in response tochanges in the business environment, hereby improving
capital efficiency and enhancing shareholder returns.
Common shares of the Company
2,000,000 shares (maximum)(1.25% of total number of issued shares (excluding
treasury shares))¥2,000 million (maximum)
Open market purchase at Tokyo Stock Exchange, Inc.
1) Purchase through Off-Auction Own Share
Repurchase Trading (ToSTNeT-3)
2) Purchase based on the discretionary trading method

From August 13, 2024 to September 30, 2024
(6) Purchase period:(Note) It is possible that some or all of the shares may not be purchased due to market trends and other factors.

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