Consolidated Financial Results
for the Nine Months Ended September 30, 2023
[Japanese GAAP]
November 13, 2023

Company name: JAC Recruitment Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2124
URL: https://corp.jac-recruitment.jp
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: November 13, 2023
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 Nine Months Ended September 30, 2023 (January 1, 2023 to September 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Net Sales
Nine months ended million yen
September 30, 2023
26,495September 30, 2022
22,918(Note) Comprehensive income:Operating Income% million yen

15.6
23.4

% million yen

6,823
6,000

Profit Attributable to
Owners of Parent

Ordinary Income

13.7
18.2

% million yen

6,824
6,013

13.5
18.5

Nine months ended September 30, 2023: ¥5,083 million [13.2%]
Nine months ended September 30, 2022: ¥4,488 million [30.5%]

Earnings Per Share
Nine months ended
September 30, 2023
September 30, 2022

4,922
4,276

%

15.1
26.3

Diluted Earnings
Per Share

yen

yen

123.18105.92––(Note) Diluted earnings per share are not presented as there were no dilutive shares.
(2) Consolidated Financial Position

As of
September 30, 2023
December 31, 2022

(Reference) Equity:

Total Assets

Net Assets

million yen

Equity Ratio

million yen

20,93622,084%

16,18815,585

77.3
70.6

As of September 30, 2023: ¥16,188 million
As of December 31, 2022: ¥15,585 million

2. Dividends

1stQuarter-end

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

0.00
Fiscal year ended December 31, 2022
0.00
Fiscal year ending December 31, 2023
Fiscal year ending December 31, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently: Yes

-1-

yen

-

yen

Total
yen

80.00

80.00

90.00

90.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023 (January 1, 2023 to
December 31, 2023)(% indicates changes from the previous corresponding period.)

Net Sales
million yen%

Operating Income

Ordinary Income

million yen

million yen%%

Full year
34,600
13.7
8,050
14.3
8,050 14.2
(Note) Revision to the financial results forecast announced most recently: Yes

Profit Attributable to
Owners of Parent
million yen
5,750

%
14.3

Earnings
Per Shareyen
143.95*Notes:(1) Changes in significant subsidiaries during the nine months ended September 30, 2023 (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 September 30, 2023: 41,389,300 shares
As of December 31, 2022: 41,389,300 shares2) Total number of treasury shares at the end of the period:
As of September 30, 2023: 1,506,836 shares
As of December 31, 2022: 1,005,871 shares
3) Average number of shares during the period:
Nine months ended September 30, 2023: 39,964,345 shares
Nine months ended September 30, 2022: 40,373,459 shares*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 4 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 .. 4
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................ 5(1) Quarterly Consolidated Balance Sheets ............................................................................................. 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................... 7(3) Notes to Quarterly 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 quarterly consolidated financial
statements) .......................................................................................................................................... 9(Segment information, etc.) .............................................................................................................. 10(Significant subsequent events) ........................................................................................................ 12-1-

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the nine months ended September 30, 2023, according to the Bank of Japan’s Tankan Survey released in
September, the Japanese economy saw two consecutive quarters of improvement in business conditions for large
companies in the entire manufacturing industry and six consecutive quarters of improvement in those in the entire
non-manufacturing industry, due to the normalization of economic activities such as recovery for vehicle
manufacturing and sales in Japan on the back of an easing of semiconductor supply shortage. Meanwhile, theoverseas economic outlook mainly in Europe, the United States and China remained uncertain, and the businesssentiment continued to fall among the sectors such as production machinery, which was particularly affected by
the uncertainty.
Under these circumstances, in Japan, companies with a focus on the regrowth of their businesses werehighly motivated to hire employees, and the jobs-to-applicants ratio remained robust during the period underreview. In addition, while “Employment Conditions” in the Bank of Japan’s Tankan Survey released in September
showed mainly medium-sized and small companies in the non-manufacturing industry suffered insufficient
employment more strongly, some of the U.S.-based IT and consulting companies and leading Japanese IT
companies continued to refrain from hiring employees since last autumn, which affected the digital divisions of
the Domestic Recruitment Business, the Group’s core operations. As a result, in the period under review, net salesof the entire Group were lower than planned at the beginning of the period, although they increased by 15.6%
year on year.
During the nine months ended September 30, 2023, the Group’s Domestic Recruitment Business added
consultant staff as planned at the beginning of the period, which was vital to the growth of this Business, with theabove-mentioned circumstances taken into account. With the prospect of future business expansion, we also
improved organizational arrangements by adding executive employees at the Associate Director and the Head of
department level including in the Administration Headquarters. In addition, we clearly defined in “Mission &Duty” each layer of the roles that all managers should play, and started to provide the training sessions for themin September to ensure they are fully aware of it. Through this initiative, we will enhance management ability
across the entire organization and establish the framework in which we can share, at a high level and accurately,
important know-how about increasing productivity, developing new hire consultants in an agile manner, reducing
the turnover rate, etc. Furthermore, in the business related to executive and local markets, segments that we arereinforcing for the fiscal year ending December 31, 2023, we achieved a 22% growth year on year for each. The
number of the core clients, for which we made over 20 successful placements, showed a progress with a growthof 15% year on year, owing to reinforced Account Management (management of major client companies in an
organized way) effort. For these segments, we will continue our expansion efforts.
Regarding the Overseas Business, performance stayed stagnant in the Asian countries such as Singapore
and Thailand, but we achieved a growth in earnings at the offices in Europe such as the UK and Germany, and
Los Angeles in the U.S., a city where we opened an office this year, and also successfully expanded operationsin India. Our Hong Kong (the Hong Kong Special Administrative Region) office, which had continued tounderperform, ceased operating activities in September. We will strive to further improve our operations with an
aim to shift to a highly profitable earnings structure by deploying staff in regions where earnings expansion is
expected as well as reviewing the cost structure.
As for the Domestic Job Offer Advertising Business, while both net sales and profit decreased year on year
due to the prolonged reduction in hiring by foreign companies, we are starting to see a recovery in earnings as
we have enhanced sales efforts on Japanese companies’ hiring bilingual human resources. In the future, with aview of expanding the business, we will work to improve earnings by focusing on operating the business
effectively and in a manner that leverages our unique characteristics as a medium.
Selling, general and administrative expenses have been in line with what was planned at the beginning of
the period, since we have continued cost reduction efforts as well as promoting the business process reengineering(BPR) for the core information systems, operational processes, etc. based on the results of the analysis of thecurrent situations conducted in 2022.
As a result, for the nine months ended September 30, 2023, net sales reached ¥26,495 million (up 15.6%
year on year). By segment, the Domestic Recruitment Business, the Domestic Job Offer Advertising Business,and the Overseas Business had net sales of ¥23,430 million (up 16.1% year on year), ¥242 million (down 10.1%
year on year), and ¥2,822 million (up 14.2% year on year), respectively.
In terms of profit, operating income was ¥6,823 million (up 13.7% year on year), ordinary income was¥6,824 million (up 13.5% year on year), and profit attributable to owners of parent was ¥4,922 million (up 15.1%-2-

year on year). By segment, the Domestic Recruitment Business posted ¥6,711 million in profit (up 14.9% year
on year). The Domestic Job Offer Advertising Business posted ¥24 million in profit (down 21.9% year on year),and the Overseas Business posted ¥87 million in profit (down 20.0% year on year).
The following is the sales performance by segment for the nine months ended September 30, 2023:
Segment
Net sales (Million yen)
Year-on-year comparison (%)
Domestic Recruitment Business

23,430116.1

Domestic Job Offer Advertising
Business

242

89.9

2,822

114.2

26,495

115.6

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

8,376

121.4

Consumer goods, services

4,766

119.4

Medical, healthcare

3,725

116.6

IT, telecom

3,373

97.7

Consulting

1,902

129.4

Financial services

1,221

123.0

65

36.5

23,430

116.1

242

89.9

2,822

114.2

26,495

115.6

Other
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 third quarter ended September 30, 2023 decreased by ¥1,147 million from the endof the previous fiscal year to ¥20,936 million. Cash and deposits decreased by ¥1,414 million as a result ofdividend payments and purchase of treasury shares, and deferred tax assets decreased by ¥388 million, althoughaccounts receivable - trade increased by ¥713 million.
Liabilities decreased by ¥1,750 million from the end of the previous fiscal year to ¥4,747 million. Accrued
expenses decreased by ¥2,075 million and income taxes payable decreased by ¥650 million, although provision
for bonuses increased by ¥954 million.
Net assets increased by ¥603 million from the end of the previous fiscal year to ¥16,188 million, and theequity ratio came out to be 77.3%. The Company paid dividends of surplus totaling ¥3,278 million, and treasury
shares increased by ¥1,201 million, but we posted profit attributable to owners of parent of ¥4,922 million.

-3-(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the Group’s consolidated financial results for the nine months ended September 30, 2023, net sales
were lower than the figure initially projected for the nine-month period, which had been used in compiling thefull-year consolidated financial results forecast for the fiscal year ending December 31, 2023 in the Consolidated
Financial Results for the Six Months Ended June 30, 2023 [Japanese GAAP] released on August 10, 2023. Thisis mainly because some of the U.S.-based IT and consulting companies and leading Japanese IT companies
continued to refrain from hiring employees since last autumn, which affected the digital divisions of the Domestic
Recruitment Business, the Group’s core operations. In addition, given how the business is progressing andcontracts are being concluded at present, this trend is expected to continue for the fourth quarter of the current
fiscal year. On the other hand, regarding selling, general and administrative expenses, we reduced costs throughcontinued efforts to increase operating effectiveness and cost control. As a result, operating income, ordinary
income, and profit attributable to owners of parent reached the level exceeding the forecast, and for this reason
we have revised the full-year forecast for the current fiscal year.
We have also revised the year-end dividend forecast for the current fiscal year by comprehensively
considering our shareholder return policy and other factors since we are expecting upward revision of profit
associated with the revision of financial results forecast.

-4-

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 31, 2022

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 September 30, 2023

14,879
2,244
7
413
283
(7)
17,82013,464
2,958
1
476
150
(29)
17,021

421
(220)
201
66
(35)
30
0
(0)
–
383
(237)
145
4
(2)
2
0
401
(36)
364
745

519
(226)
292
66
(43)
23
0
(0)
–
423
(271)
152
4
(2)
1
4
453
(76)
376
851

814
617
100
1,532

758
550
192
1,501

0
0
969

0
0
938

13

10

27
988
2
(16)
1,985
4,263
22,084

24
600
7
(18)
1,562
3,914
20,936

(Million yen)
As of December 31, 2022
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-6-

As of September 30, 2023

0
590
2,995
1,207
659
242
93
–

0
512
920
557
674
340
56
954

–

13

170
74
128
6,161

159
78
186
4,455

1
–
335
337
6,498

0
5
286
292
4,747

672
1,514
15,022(1,793)
15,415672
1,514
16,666(2,994)15,859169
169
15,58522,084329
329
16,18820,936

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine Months Ended September 30

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
Gain on cancellation of leases
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of rental contracts
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

For the nine months ended
September 30, 2022
22,918
1,778
21,140-7-(Million yen)
For the nine months ended
September 30, 2023
26,4952,005
24,489

551
7,641
1,091
278
875
26
130
0
852
327
85
1,123
2,155
15,140
6,000

535
8,962
1,310
347
954
13
158
25
964
395
88
1,214
2,694
17,665
6,823

2
6
19
28

7
17
11
35

15
–
0
15
6,013

17
13
3
34
6,824

1
27
0
29
5,984
1,409
298
1,707
4,276
4,276

1
–
–
1
6,823
1,506
394
1,900
4,922
4,922

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended September 30

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 nine months ended
September 30, 2022
4,276(Million yen)
For the nine months ended
September 30, 2023
4,922

212
212
4,488

160
160
5,083

4,488

5,083

–

–

-8-

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
In accordance with the resolution of the Board of Directors meeting held on February 20, 2023, theCompany purchased 600,000 treasury shares. As a result, treasury shares increased by ¥1,368 million
during the nine months ended September 30, 2023, standing at ¥2,994 million as of the end of the period.
(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 third quarter ended September 30, 2023, and by
multiplying the profit before income taxes by the estimated effective tax rate.

-9-

(Segment information, etc.)[Segment information]
For the nine months ended September 30, 2022 (from January 1, 2022 to September 30, 2022)
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

19,807168

369

Segment total

Adjustment

1,764

21,739–21,739

101

707

1,179

–

1,179

20,176269

2,472

22,918–22,91820,176269

2,472

22,918–22,918

17

13

16

46

(46)

–

20,193282

2,489

22,965(46)

22,918

5,844

31

108

5,984

–

5,984

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 ¥55 million and ¥30 million, respectively.

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 ¥27 million for the nine months ended
September 30, 2022.

-10-

For the nine months ended September 30, 2023 (from January 1, 2023 to September 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

23,000164429

Segment total

Adjustment

2,041

25,206–25,206

78

780

1,288

–

1,288

23,430242

2,822

26,495–26,49523,430242

2,822

26,495–26,495

13

19

12

45

(45)

–

23,443261

2,835

26,540(45)

26,495

6,711

24

87

6,823

–

6,823

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 ¥55 million and ¥33 million, respectively.

-11-

(Significant subsequent events)(Stock split and partial amendments to the Articles of Incorporation due to the stock split)
The Company resolved at its Board of Directors meeting held on November 13, 2023 to authorize a stock
split and partial amendments to the Articles of Incorporation due to the stock split.
1. Purpose of the stock split
The purpose is to reduce the minimum investment price through the stock split, thereby creating anenvironment where it is easier to invest in the Company’s shares, increasing the liquidity of the Company’s
shares and further expanding the Company’s investor base.
2. Overview of the stock split(1) Stock split method
The record date for the stock split will be December 31, 2023. Each share of the Company’s common stock
held by shareholders who are registered or recorded in the final shareholder registry as of the record date
will be split into four shares.
(2) Increase in the number of shares as a result of the stock split
1) Total number of issued shares prior to the stock split
41,389,300 shares
2) Increase in the number of shares as a result of the stock split 124,167,900 shares3) Total number of issued shares after the stock split
165,557,200 shares
4) Total number of authorized shares after the stock split
576,000,000 shares(3) Stock split schedule
1) Date of public notice of the record date December 16, 2023
2) Record date
December 31, 2023
3) Effective date
January 1, 2024
(4) Effect on per share information
Per share information on the assumption that the stock split was conducted at the beginning of the fiscal
year ended December 31, 2022 is as follows:
Item

For the nine months ended For the nine months ended
September 30, 2022
September 30, 2023

Earnings per share

26.48 yen30.80 yen

The amount of diluted earnings per share is not provided because there were no dilutive shares.

3. Partial amendments to the Articles of Incorporation(1) Reason for amendments
Due to the stock split described above, the Company will amend a part of its Articles of Incorporation
effective January 1, 2024, in accordance with the resolution of the Board of Directors pursuant to Article
184, Paragraph 2 of the Companies Act.
(2) Details of amendments
The details of the amendments to the Articles of Incorporation are as follows:(Underlined portions indicate amendments.)
Current Articles of Incorporation
Articles of Incorporation after amendments(Total number of authorized shares)
Article 6. The total number of authorized shares of theCompany shall be 144,000,000 shares.

(Total number of authorized shares)
Article 6. The total number of authorized shares of theCompany shall be 576,000,000 shares.

4. Others
Change in capital stock
The Company’s capital stock will not change due to the stock split described above.

-12-