Full Year Results Briefing 2022
JAC Recruitment Co., Ltd.
21 February, 2023
https://corp.jac-recruitment.jp©2023

JAC Group

21-Feb-23

1. 2022 Financial Highlights and Outlook for 2023

©2023 JAC Group／1

Financial Highlights

Driven by the Domestic Recruitment business, revenue and profits reachedrecord highs.
(Million yen)

2021

2022

Change in pct.

Revenue

24,85230,435+22.5%

Gross profit

23,00428,043+21.9%

Ordinary income

5,813

7,052

+21.3%

Profit

3,882

5,029

+29.5%

attributable to owners of parent©2023 JAC Group／2

Segment Performance

The core Domestic Recruitment business generated record-high revenue andprofit, while the Overseas and Domestic Job Advertising businesses recovered.
(Million yen)

Revenue

2021

2022

Change in pct.

Domestic Recruitment
Business

22,273

26,726+20.0%

Overseas Business

2,332

3,351

+43.7%

Domestic Job Offer
Advertising Business

246

356

+44.8%

Segment profit (loss)
Domestic Recruitment
Business

2021

2022

Change in pct.

5,859

6,872

+17.3%

Overseas Business

(9)

95

―

Domestic Job Offer
Advertising Business

(73)

43

―

©2023 JAC Group／3

New business performance

Interim Management Solutions (IMS) business

Recruitment Process Optimization (RPO) business

Recruiting agency service targeting mid- and high-salaryrange positions

Outsourcing service utilizing highly skilled human resources
雨IMS revenue

雨RPO revenue

Total revenue of¥442 million
in FY2022(Million yen)
Total revenue of
140¥293 million
in FY2022(Million yen)

100

120

80

100
60

80

＜当社推計＞

60

40

40
20

20

0

0
Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

Q4

FY2022©2023 JAC Group／

4

Overview by segment

曳 Market recovery has continued since spring 2021.
Domestic
Recruitment
Business

曳 The jobs-to-applicants ratio holds firm as companies
continue to show strong appetite for hiring.

曳 Impact stemming from uncertainty regarding the Europeanand US economies was limited but will continue to require
attention moving forward.

Overseas
Business
Domestic Job
Offer
Advertising
Business

曳 The segment returned to be profitable owing to business recovery mainly in Singapore,
Malaysia, UK, and Germany.
曳 The COVID-19 pandemic was still depressing the revenue in China.

曳 The segment returned to be profitable. Revenue has recovered since spring thanks to achange in management strategy (shift to contingency fee-based products).
©2023 JAC Group／5

Balance sheet summary

Financial strength remains high .
(Million yen, %)End of 2021
AmountCurrent assets
Cash and depos
Accounts receivable – tradeNon-current assets
Property, plant and equipment
Intangible assets
Investments and other assets

Total assets
Current liabilities
Non-current liabilities
Total liabilities
Total net assets

Total liabilities and net assets

15,242
12,932
1,800
3,693
418
1,617
1,657
18,935
5,424
145
5,569
13,36518,935End of 2022%

Amount

80.5
68.3
9.5
19.5
2.2
8.5
8.8
100.0
28.6
0.8
29.4
70.6
100.0

17,82014,879
2,244
4,263
745
1,532
1,985
22,084
6,161
337
6,498
15,58522,084

Change

%

80.7
67.4
10.2
19.3
3.4
6.9
9.0
100.0
27.9
1.5
29.4
70.6
100.0

+2,578+1,947
+444
+570
+327
-85
+328
+3,149
+737
+192
+929
+2,220+3,149©2023 JAC Group／6

Cash Flow Summary

Our management policy calls for the allocation of cash reserves to futurebusiness investment, dividends payment, and retention of consultants during
economic downturns.

(Million yen)

2021

2022

Cash flows from operating activities

5,091

5,913

Cash flows from investing activities

(436)

(944)

Cash flows from financing activities(5,400)(3,174)

Cash and cash equivalents at end of period

12,932

14,879©2023 JAC Group／7

Outlook for 2023

We aim to generate growth of 20% primarily through strong performancein the Domestic Recruitment business.
(Million yen, %)

2022

2023
forecast

Vs. 2022

Change in pct.

Revenue

30,43536,651+6,216+20.4%

Operating income

7,044

7,770

+726

+10.3%

Ordinary income

7,052

7,783

+731

+10.4%

Profit attributable to owners of parent

5,029

5,417

+388

+7.7%

Assumptions used for this forecastu Global economic impact stemming from conflict between Russia and Ukraine will remain at its
current level.
u Economic slowdown in the US and Europe will cause only limited curtailment of recruitment.
u With regard to SG&A expenses, we will substantially expand our staff of consultants andcontinue proactive advertising campaigns consisting primarily of TV commercials.
©2023 JAC Group／8

Dividends

We project a dividend of ¥85 per share.
Basic Policy for Dividends
浦 We consider dividends payment as a key management issue and seek to determine anappropriate balance between investments and shareholder returns as necessary.
雨 Dividends per share and payout ratio(Payout ratio: %)(Dividends: JPY)
100

¥80

¥80

¥80

¥85

¥73

75

¥65
¥50

50

64.3%
¥30
¥13
33.1%

42.7%

FY2019FY2020

68.7%

76.8%

65.2%

56.0%

¥19

25

75.9%

180.0%

37.9%

0FY2014FY2015FY2016FY2017FY2018FY2021

FY2022

FY2023(forecast)

Note 1: Dividends per share in FY2014 have been retroactively adjusted to reflect stock splits.
Note 2: Calculations for the payout ratios from FY2015 onward include JAC Recruitment shares held in the ESOP Trust account.

©2023 JAC Group／9

2. Actions for Medium to Long-term Growth©2023 JAC Group／10

Actions for Medium to Long-term Growth

JAC as No. 1
We aspire to be the World’s No.1 professional recruitment
consultancy firm both in quality of service and profitability.

Our definition of No. 1• Based on our Core Values accumulated over 47 years since
foundation.
• We provide the same high-quality service anywhere in the world.
• A company that customers choose over others.
• All stakeholders are satisfied by JAC’s service.
• Assuring continuous stability of safety, comfort, trust and good
performance.
• And we aim to be a company that is continuously growing,developing and advancing.

©2023 JAC Group／11

Actions for Medium to Long-term Growth

Build stronger organization and systems needed for medium- to long-term growth1

Increase in number of consultants x
Training conducted through the JAC Standard

2

Thorough promotion of Account Management

3

Focus on growing markets and business Segments

4

Strengthening of management talent (recruitment and training)

5

BPR for higher efficiency (improvement of core systems)

マネジメントの採用とレベルアップ©2023 JAC Group／12

1. Increase in number of consultants x Training conducted through the JAC Standard (1)Strengthen recruiting
departments
Jan. 2021

Jan. 2022

Jan. 2023

Enhancethe training teamJan. 2021(11 staff ⇒ 18 staff ⇒ 25 staff)

Jan. 2022

Jan. 2023(9 staff ⇒ 14 staff ⇒ 24 staff)

Educational reform achieved
through the developmentof the JAC Standard

Consultants
increase

Record expansion achieved through greater recruitment
and lower turnover+63

FY2022+177

Number of Domestic Recruitment business consultants (as of December 31, 2022)(Persons)
1,100

+21%

900

+16%
+18%

700

+20%

500
300

FY2021

363

434

+14%
496

+10%

746

+8%
802

-4%
772

+8% +3%835

860+11% +15%
929

1,012

959

645

548

100
-100

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

Q1Q2
Q3 FY2022
FY2022 FY2022 FY2022©2023 JAC Group

／13

1. Increase in number of consultants x Training conducted through the JAC Standard (2)Enhancement of training

Productivity was also high and exceeded our prospect
雨 Monthly productivity per consultant (JAC Recruitment Japan Group)

Maintained
high level(Million yen)
2.40

2.31 2.25 2.38

2.00
2.17
2.08

2.08

1.96

2.01
1.81

1.76

1.60

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2022
ActualNote: Productivity figures from FY2020 onward include results at subsidiary Vantage Point.

TargetActual©2023 JAC Group／14

1. Increase in number of consultants x Training conducted through the JAC Standard (3)Productivity increased due to training enhancement,
and we have observed significant declines in our turnover rate since August 2022.

20.0%

Rate of turnover in the Domestic
Recruitment business
15.0%

19.9%

17.1%

17.9%

16.6%
16.4%
14.4%
12.9%
12.0%

10.0%

11.9%

11.6%
August–December 2022

8.8%
5.0%
FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2022(January–July) (August–December)

Note: Figures associated with JAC Recruitment and JAC International©2023 JAC Group／15

1. Increase in number of consultants x Training conducted through the JAC Standard (4)Training rooted in the JAC Standard is effective in terms of turnover reduction
Development of both Japanese and English handbooks to be utilized
throughout JAC Group, including overseas

Targeting continuous growth through numeral expansion of consultants
雨Number of JAC Group consultants and target (as of December 31, 2022)■Japan
国内 ■Overseas
海外(Persons)
1,250
FY2018:Acquisition of JRI

1,000
750
500
250

1,212

1,012

434

496

548

645

802

746

835

772

356

316

271

267

270

FY2018FY2019FY2020

FY2021

FY20220

FY2014FY2015FY2016FY2017

Actual count as of term end

297
FY20232023

Target©2023 JAC Group／16

2. Thorough promotion of Account Management (focus point for 2023)

雨 Account Management (Organizational management of major client companies)
Domestic Recruitment

Group expansion

Executive,
management, IT, andprofessional positions

RPO, IMS,
job advertising, andoverseas recruitment

Synergymaximization

CareerCross

JRI

Industrial Team(Specialist/Management)

Vantage
Point

Outsourcing Team
Consultant TeamA Client

Contract
Team
IMS
Team

Office Specialist Team
(Account Admin HR. Legal)

Executive
Team

IT/DigitalTeam©2023 JAC Group／17

3. Focus on Growing Markets and Business Segments (1)Growing markets
and businesssegments

DigitalMultinational and major Japanese companies have cut back on recruitment
since autumn 2022. However, we have observed a persistent shortageof human resources among medium-sized companies in Japan.
2021

桔Fee income:¥7,840 million

桔Divisions:

桔Teams:

2022

2023

¥9,930 million

Fee income

桔Fee income:(+27%)

730

桔Divisions:
桔Teams:1234¥11,900

million(forecast)©2023 JAC Group

／18

3. Focus on Growing Markets and Business Segments (2)-1

Growing markets
and businesssegments

Reinforcementof regional offices

North Kanto, Yokohama, Nagoya, Shizuoka, Osaka,
Kyoto, Kobe, Chugoku (Hiroshima), Fukuoka

We aim to double growth in a three-year.
Gross profit generated through regional offices and corresponding consultant counts(Million yen)

(Persons)

14,0001,000
900

12,000Gross profit

800

10,000

700
600

8,000

500
6,000

400

Consultant number

300

4,000

200
2,000
100
0

0
FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024©2023 JAC Group

／19

3. Focus on Growing Markets and Business Segments(2)-2

雲 Regional offices: 2023 measures

1. Generate high earnings: Station consultants in charge of executive recruitment at all offices
2. Expand regional coverage: Establish new branches in Sendai and Hamamatsu (April)
New OfficeSendai2016

Shizuoka
2022

Fukuoka

New Office2017

Hamamatsu

North Kanto(Saitama)
2002

Yokohama
2017

2004

Chugoku(Hiroshima)

Nagoya

2006

1993

2002

Kobe

Osaka

Kyoto
©2023 JAC Group／20

3. Focus on Growing Markets and Business Segments(3) (4)Growing markets
and businesssegments

MNC (multinational company)

雲 Prioritizing healthcare, IT, and manufacturing industries
through our three-company alliance

Growing markets
and businesssegments

Executive

雲 Targeting high-salary-range personnel with annual salary over ¥20 million©2023 JAC Group／21

4. Strengthening of management talent (recruitment and training)

1. Recruitment
Corporate brand enhancement through recruitment of middle and back management
雲 Associate directors responsible for MNC-related business
雲 General managers responsible for IR/PR and marketing(including MNCs and global organizations)

2. Training
Prepare and apply the JAC Standard for all levels of management

雲 Developed and conducted manager-level training programs (2022)

雲 Clarification of the missions and duties of personnel over general manager (2023)

Targeting further growth through enhancement of our organization and systems©2023 JAC Group

／

22

Me
ud
m
i

-t
m
erManag
N
eme
T
u
g
sae
a
rme
tP
nlcan
ltir

Aiming for annual growth of 20% beginning in 2024
2022
(Actual)(Billion yen, %, persons)2023(Forecast)

2024
Goals

2025
Goals

Revenue

30.4

36.6 (+20%)

43.9 (+20%)

52.7 (+20%)

Profit attributable to owners of parent

5.0

5.4 (+8%)

6.9 (+28%)

8.9 (+29%)

Profit margin

16%

15%

16%

17%

Number of recruitment consultants

1,227

1,444 (+18%)

1,700 (+18%)

2,000 (+18%)

Note: The number of recruitment consultants is the annual average for consultants in the Domestic Recruitment Business and Overseas Business.

Revenue

Number of recruitment consultants

Profit(Billion yen)(Billion yen)

8.9

52.7

2,000

43.9

6.9

36.6
30.4

FY20225.0

FY2023

FY2024FY2025

FY2022

1,700
1,444

5.4

FY2023

1,227

FY2024FY2025

FY2022

FY2023

FY2024FY2025©2023 JAC Group／23

3. SDGs©2023 JAC Group／24

Sustainability of the JAC Group Fundamental Approach

Fundamental Approach
Our goal is to contribute to creating a sustainable society by continuously
serving as a link between people and companies to support their growth.
The JAC Group uses many activities to play a role in achieving the SDGs.

Create employment
opportunities and support
the growth of companies
and their people

Environmental activities(Reuse, Reduce andRecycle)Diversity andinclusion

Efforts regarding healthmanagement

Switch to use of green
electricity

Reforestation(The PPP Project): Information about activities is in the following pages.

Disclosure of informationand employee education
about the SDGs

©2023 JAC Group／25

SDGs Activities (1) Diversity and Inclusion

1. Raise the ratio of female managers from the current 23% to 40% by 2025
Established the Women Empowerment Committee; vigorous efforts toimplement measures are underway•

Sought to foster a culture where women can feel comfortable pursuingmanagement positions, by mentoring female managers and raisingawareness of male managers•

Conducted one-on-one meetings with the candidates up for promotion

2. Deepen understanding of the LGBTQ community and promote diversity
Established a committee responsible for measures aimed at transforming
JAC Recruitment into a LGBTQ-friendly company•

Held training sessions designed for all directors, associated directors
and all employees to acquire basic knowledge•

Held various events both internally and externally during Pride Month•

Created an Ally sticker, which allies can post on their desks©2023 JAC Group／26

SDG Activities (2) Health Management

JAC Recruitment was recognized under the “2022 Certified Health &Productivity Management Organization Recognition Program,” marking
its fifth consecutive year of recognition.
Employee Wellness Activities

Goals for 2025

Health monitoring

Employees
receiving check-ups

曳 Promotion of medical check-ups
曳 Promotion of complete check-ups (thorough physicalexamination) and assistance for expenses
曳 Stress level tests

Medicalcheck-ups

Health promotion initiatives

曳 Program that encourages people to exercise
曳 Stretching classes at workplaces
曳 Support for clubs at workplaces
曳 Healthcare support for no smoking, supplementary
payments for fitness club memberships, provision ofhealthy meals at offices, and other activities

Opportunities for measures to prevent diseases

曳 Influenza vaccinations with assistance for expenses
曳 Free dental check-ups

Lifestyle/Working stylemeasures

Specified healthguidance participation

100%
100%
25%

Employees
exercising regularly

30%-plus

Employees
receiving stress check0

Employees
who smoke%

Employees with check-up
items requiring attention

20%

Days of standard andsummer vacation special
paid leave used

11©2023 JAC Group／27

SDG Activities (3) Reforestation (PPP Project)

Absorb approximately 500 tons of CO2 per year,
achieving net-zero Scope 1 and Scope 2 carbon emissions
JAC Group’sreforestation
program

The PPP Project
One Placement creates One Plant to save the Planet
To help combat global warming, the JAC Group plants one seedling every time a person finds a job by using a groupcompany.

JAC Group reforestation locations

曳 Bali Island(Penelokan District, KintamaniCounty, Bangli, Bali Province, Bali,
Republic of Indonesia)

Seedlings planted by the JAC Group (cumulative total since 2008)

Since the reforestation project started in 2008, the JAC Group has

planted 120,000 trees to date.

曳 Borneo Island(Apeng Forest Reserve, Serian
District, Sarawak Province,
Borneo Island, Malaysia)

97,051

2019

105,5632020

116,978

2021

127,9312022

This reforestation project increases the commitment to social contributions of thepeople who participate in the project. Another benefit is the creation of jobs for
local students who perform reforestation work with JAC Group employees.
©2023 JAC Group／28

SDG Activities (4) Environmental & Animal Protection

Stepping up our sustainability initiatives through the
JAC Environmental & Animal Protection Foundation(Founded in March 2022. Chairperson: Hiromi Tazaki)

Mission of the foundation

Contribute to sustainable coexistence of people and animals and thepreservation of natural environments by providing grants to organizations
that protect animals and their natural habitats.
u The foundation gained accreditation as a public interest incorporated foundationand has formally launched activities.
u The foundation is currently selecting projects for which it will provide support in
2023 and plans to begin disbursing grants in April.
©2023 JAC Group ／29

Precautions and Contact Information

This presentation contains information about the businesses of JAC Recruitment Co., Ltd. andtrends in the recruitment services industry. Information also includes forward-looking
statements based on current plans, estimates, expectations and forecasts of JAC Recruitment.
These forward-looking statements incorporate many risk factors and uncertainties. Known or
not yet known risk factors, uncertainties or other items may cause actual performance to differ
from these forward-looking statements. JAC Recruitment is unable to guarantee that forwardlooking statements and forecasts are correct. Consequently, actual results of operations may
differ significantly from these statements and may be even worse.
Forward-looking statements in this presentation were determined by JAC Recruitment on 21
February 2023 and based on information that was available at that time. JAC Recruitment has
no obligation to update or revise any of these statements to reflect future events or changes inthe business climate.
Please use the following contact information for questions about the information in thispresentation.
IR Office, JAC Recruitment Co., Ltd.
Tel: +813-5259-6926
E-mail: ir@jac-recruitment.jp©2023 JAC Group／30