For Immediate Release
August 10, 2021

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the 1st Quarter Ended June 30, 2021
PERSOL HOLDINGS CO., LTD. (the Company) today announced its consolidated financial results forthe 1st Quarter ended June 30, 2021.
Consolidated Operating Highlights
1) Financial Results(In millions of yen, unless otherwise stated)
1st Quarter ended June 30,% change
2020
2021
Net sales

238,222

250,432

5.1

Operating profit

9,115

13,137

44.1

EBITDA113,389

17,821

33.1

Ordinary profit

9,173

13,817

50.6Quarterly net profit2

4,670

8,487

81.7

Quarterly net profit per share (yen)

20.21

36.88

-30.70

47.11

53.4

3

Adjusted EPS (yen)Notes:
1. EBITDA=operating profit + depreciation + amortization of goodwill
2. Quarterly net profit attributable to owners of parent company

3. Adjusted EPS=adjusted quarterly net profita/ (average number of shares during the period - number of treasury stock during the period)a.

Adjusted quarterly net profit=quarterly net profit attributable to owners of parent company ± adjustment itemsb (excluding noncontrolling interests) ± tax reconciliation related to certain adjustment itemsb.

Adjustment items=amortization of intangible assets except goodwill by acquisitions + amortization of goodwill ± extraordinaryincome/losses

2) Balance Sheet Data
(In million yen, unless otherwise stated)
As of March 31, 2021

As of June 30, 2021

Total assets

383,416

370,693

Net assets

175,158

185,880

41.0

45.1

157,122167,051

Equity ratio (%)(Reference) Equity capital3) Dividend Status(In yen, unless otherwise stated)
FY2020FY 2021 (Forecast)Interim dividend

13.00

19.00

Year-end dividend13.00

TBD

Total dividend

26.00

TBD

Note: As full-year financial forecasts were changed to be undecided, year-end dividend forecast was also changed to be undecided.

4) Consolidated Financial Forecast for the Fiscal Year Ending March 2022
FY2021(1st Half)(In millions of yen, unless otherwise stated)
FY2021% change% change(Full Year)Net sales

505,200

8.5

TBD

-

Operating profit

22,500

62.2

TBD

-

EBITDA

31,860

42.5

TBD

-

Ordinary profit

23,100

50.6

TBD

-

Quarterly net profit1

14,000

83.1

TBD

-

Quarterly net profit per share (yen)

60.89

-TBD

-

Adjusted EPS (yen)

79.12

51.3

TBD

-Notes:1.

Quarterly net profit attributable to owners of parent company

2.

The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) is applied to consolidated financial forecast for the fiscal
year ending March 2022. The ratio of increase / decrease from the previous fiscal year is calculated based on the consolidated financial
results for the fiscal year ended March 2021 before pro-forma.

3.

Please refer to “Management Discussion and Analysis,(1) Result of Operations, Financial Forecasts of the Fiscal Year Ending March 31,2022” for details.

Disclaimer
The statements concerning the Company's future business performances in this material such as financial forecasts are basedon information currently available and certain assumptions deemed to be reasonable by the Company, and do not mean that
the Company promises to achieve these figures. Actual results may differ materially from the statements due to a variety offactors.

Management Discussion and Analysis(1) Result of Operations
PERSOL GROUP (the Group) provides a wide range of human resources (HR) related services;
temporary staffing and placement service as the core in Japan and Asia-Pacific (APAC) region.
Business environment in Japan in the 1st Quarter of FY2021 ended June 30, 2021 remain
uncertain mainly due to the issuance of the emergency declaration. However, the ratio of job
offers to job seekers in Japan was 1.13 (seasonally adjusted) in June 2021, showing thatdemand for human resources was on a trend of gradual recovery except for some industries. InAPAC region, economy was on a trend of recovery in general except for some regions including
India. And, in Australia, Australian dollar became stronger against Japanese yen year-on-year(YoY) as a result of recovering economy in the country.
Under these business environment, consolidated net sales were 250,432 million yen (increasedby 5.1% YoY) as a result of steady increase in sales of Staffing SBU (Strategic Business Unit)
which is our core business, and increased sales in other SBUs. Operating profit was 13,137
million yen (increased by 44.1% YoY) because of growth of profitable BPO sector in Staffing
SBU and recovery of sales in other SBUs as a result of demand recovering from the effect ofCOVID-19, which contributed to increase in profits or to shrink losses in all SBUs. Ordinary profit
was 13,817 million yen (increased by 50.6% YoY) and quarterly net profit attributable to ownersof parent company was 8,487million yen (increased by 81.7% YoY).

Results by SBU (before inter-segment elimination)
1.

Staffing SBU
In this segment, the Group operates temporary staffing business, including mainly clerical andadministrative staff dispatching and wide range of staffing service, BPO (Business ProcessOutsourcing) and job referral service businesses mainly for administrative talents in Japan.
Sales for the 1st Quarter ended in June 30, 2021 were 137,846 million yen (increased by 5.5%YoY) and operating profit was 10,428 million yen (increased by 16.9% YoY).
Sales in temporary staffing sector were increased due to a rise in operating hours, although thenumber of temporary active staffs was decreased YoY. In BPO sector, sales were also increased
as a result of obtaining orders in public related projects. Operating profit was increased as aresult of the effect of sales increase in temporary staffing sector and growth of highly profitable
BPO sector.

2.

Career SBU
In this segment, the Group operates placement business, supporting corporate client mid-career
hiring activities, and job recruitment media business.
Sales for the 1st Quarter ended in June 30, 2021 were 17,602 million yen (increased by 4.6%YoY) and operating profit was 2,063 million yen (increased by 37.1% YoY).
Sales were increased due to recovery trend of companies’ demand for hiring except for someindustries, and aggressive sales promotion activities. Operating profit was increased as a resultof the effect of increased sales and continuous efforts to cut costs through reduction andrelocation of offices.

3.

Professional Outsourcing SBU
In this segment, the Group operates manufacture and development outsourcing business in IT
and engineering areas, and temporary staffing business specialized in engineers dispatching.
Sales for the 1st Quarter ended in June 30, 2021 were 28,222 million yen (increased by 6.8%
YoY) and operating profit was 1,214 million yen (increased by 285.0% YoY).
Sales were increased because IT area continued stable growth, and in engineering area which
had been significantly affected by COVID-19, a recovery demand mainly for development in
manufacturing industry led to an improvement in operating rate. Operating profit was increased
due to sales increases in IT area as well as engineering area.

4.

Solution SBU
In this segment, the Group provides digital solution services for hiring talents and humanresource management and creates new businesses through incubation program.
Sales for the 1st Quarter ended in June 30, 2021 were 2,181 million yen (increased by 129.0%
YoY) and operating loss was 883 million yen (operating loss was 1,437 million yen for the same
period of the previous fiscal year).
Sales were increased mainly because job search application business was grew as companies’
demand for hiring was on a trend of recovery ,in addition to aggressive sales promotion activities.
Operating loss was recorded as a result of continuous active investments as in the previous
fiscal year to increase staffs for the purpose of sales promotion.

5.

Asia Pacific SBU
In this segment, the Group operates temporary staffing business and placement business inAsia and staffing business and maintenance business in Australia (those businesses are operated
under PERSOLKELLY brand in Asia and under Programmed brand in Australia).
Sales for the 1st Quarter ended in June 30, 2021 were 67,306 million yen (increased by 2.0%
YoY) and operating loss was 0 million yen (operating loss was 116 million yen for the same
period of the previous fiscal year).
Sales on a local currency basis were decreased from the same period of previous fiscal year
(January to March 2020) which was before the business in Australia and part of Asian region
was greatly affected by COVID-19. However, sales were increased due to the effect of stronger
Australian dollar. Operating loss was lowered as a result of establishing an efficient operationstructure.

Financial Forecasts of the Fiscal Year Ending March 31, 2022
Sales in the 1st Quarter of FY2021 exceeded the plan mainly because in Staffing SBU thatoperates temporary staffing business, the number of temporary active staffs was higher thanexpected, orders received in BPO sector were strong and job recruitment media business inCareer SBU that operates placement business showed growth more than expected. Since
operating profit in the 1st Quarter of FY2021 also significantly exceeded the plan as a result ofincreased sales, financial forecasts for the 1st Half of FY2021 ending September 30, 2021 has
been revised upward.
Full-year financial forecasts are changed to be undecided. After reviewing the outlook including
the status of COVID-19 carefully, the full-year forecasts will be disclosed in the 1st Half financial
result announcement in November.

#

#

#

#The “Accounting Standard foe Revenue Recognition” (ASBJ Statement No.29, March 31, 2020)
is applied effective from the beginning of the 1st Quarter of FY2021. For more detail, pleaserefer to “Changes in Accounting Policies”.

(2) Financial Position
Consolidated Balance Sheet
Total assets decreased by 12,722 million yen compared to the end of the previous consolidated
fiscal year. Current assets decreased by 7,634 million yen, and non-current assets decreased
by 5,088 million yen. The main reason for the decrease in current assets was a decrease in cashand deposits by 10,860 million yen. The main reason for the decrease in non-current assets wasa decrease in deferred tax assets by 3,270 million yen.
Liabilities decreased by 23,444 million yen compared to the end of the previous consolidated
fiscal year. Current liabilities decreased by 20,400 million yen, and non-current liabilities
decreased by 3,044 million yen. The main reasons for the decrease in current liabilities were
10,000 million yen decrease in bonds payable within one year, 8,363 million yen decrease inreserve for bonuses and 2,947 million yen decrease in accrued income taxes, etc. The main
reason for the decrease in non-current liabilities was decrease in long-term loans payable by
3,043 million yen.
Net assets increased by 10,722 million yen compared to the end of the previous consolidated
fiscal year. This was mainly caused by: payment of dividends of surplus of 3,011 million yen
and posting 8,487 million yen in quarterly net profit attributable to owner of parent company
which resulted in increased retained earnings of 5,682 million yen and a foreign currencytranslation adjustment increase of 4,146 million yen.

As of March 31,2021

As of June 30,
2021

Return on assets (ROA)

4.6％

2.4％

Return on equity (ROE)

10.4％

5.2％

Ratio of operating profit to sales

2.8％

5.2％

Ratio of ordinary profit to sales

3.1％

5.5％

Current ratio

162.8％

183.2％

Fixed ratio

93.2％

84.6％

Equity ratio

41.0％

45.1％

ROIC

9.4％

4.3％

Debt/equity ratio

0.40

0.29

Net cash/EBITDA ratio

0.47

1.28

Total assets (million yen)

383,416

370,693

Equity capital (million yen)

157,122167,051Invested capital (million yen)

244,109236,828

Cash and cash equivalents etc. at end of period (million yen)

82,991

72,119Changes in Accounting Policies
Application of Accounting Standard for Revenue Recognition, etc.
the Group has applied the Accounting Standard for Revenue Recognition (ASBJ No. 29, March31, 2020) and others effective from the beginning of the 1st Quarter ended June 30, 2021 andhas decided to recognize the amount expected to be received in exchange for goods or services
as revenue when the control of the promised goods or services has been transferred to thecustomer.
The Accounting Standard for Revenue Recognition, etc. are applied in accordance with thetransitional procedures set forth in the proviso of paragraph 84 of the Accounting Standard for
Revenue Recognition. The cumulative effect of the retrospective application, assuming the newaccounting policy had been applied to periods prior to the beginning of the 1st Quarter of FY2021
was added to or subtracted from the beginning balance of retained earnings of the 1st Quarterof FY 2021, and thus the new accounting policy was applied from the beginning balance.
The impact of the application of this accounting standard on the quarterly consolidated financialstatements is immaterial.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “notes andaccounts receivable trade,” which were presented under “current assets” in the consolidatedbalance sheet for the previous fiscal year, have been included in “notes and accounts receivable- trade, and contract assets,” starting the 1st Quarter of FY 2021.
In accordance with the transitional procedures set forth in paragraph 89-2 of the AccountingStandard for Revenue Recognition, reclassification based on the new presentation method has
not been carried out for the previous fiscal year.

Application of Accounting Standard for Fair Value Measurement
The Group has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement
No. 30, July 4, 2019) and others effective beginning of the 1st Quarter of FY2021, and has
decided to apply the new accounting policy set forth by the Accounting Standard for Fair Value
Measurement, etc. into the future in accordance with the transitional procedures stipulated inparagraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2 ofthe Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). The
impact of the application of this accounting standard on the quarterly consolidated financial
statements is immaterial.

Consolidated Financial Statements(1) Consolidated Balance Sheet(in millions of yen)
As of March 31,
2021

As of June 30,
2021

AssetsCurrent assets
Cash and deposits

83,161

72,301

Notes and accounts receivable - trade133,047－－

139,739

Notes and accounts receivable - trade, andcontract assets
Work in process

8,300

6,048

Other

13,146

11,950Allowance for doubtful accounts-712-731

236,943229,309

Buildings and structures, net

3,560

3,728

Tools, furniture and fixtures, net

1,928

1,917

Right of use assets, net

3,482

3,752

Total current assets
Non-current assets
Property, plant and equipment

Land799

799

Other, net

2,217

2,053

Total property, plant and equipment

11,98812,251

Trademark right

9,688

10,080Goodwill

66,751

66,954

Software

17,38018,764

Other

7,123

6,565

100,943

102,364

Investment securities

11,344

13,229Deferred tax assets

7,861

4,591

Other

15,765

10,478

Allowance for doubtful accounts-1,430-1,531Intangible assets

Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

33,54026,768146,472

141,384

383,416

370,693

(Consolidated Balance Sheet)(in millions of yen)
As of March 31,
2021

As of June 30,
2021

Liabilities
Current liabilities
Accounts payable - trade

451

481

Short-term borrowings

603

636

10,000－Current portion of bonds payable
Current portion of long-term borrowings
Accounts payable - other31

31

73,592

73,346

Income taxes payable

4,445

1,497

Accrued consumption taxes

17,161

17,471

Provision for bonuses

15,409

7,045

47

17

Provision for bonuses for directors (and otherofficers)
Other provisions

1,116

1,013

Other

22,717

23,634

Total current liabilities

145,577

125,177

Bonds payable

10,00010,000Long-term borrowings

41,62938,585

Lease obligations

2,047

2,060

Deferred tax liabilities

4,938

4,427

Retirement benefit liability

880

878

Provision for share awards

583

649

534

598

Non-current liabilities

Provision for share awards for directors (andother officers)
Other provisions

9682

Other

1,970

2,354

Total non-current liabilities

62,68059,635208,258

184,813

Share capital

17,47917,479

Capital surplus

19,00819,008Retained earnings

135,635

141,317

Treasury shares-11,100-11,076

Total shareholders' equity

161,022

166,728

2,350

2,426

Foreign currency translation adjustment-6,251-2,104

Total accumulated other comprehensive income-3,900322

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities

Share acquisition rights

00

Non-controlling interests

18,035

18,828

Total net assets

175,158

185,880

383,416

370,693

Total liabilities and net assets

(2) Consolidated Income Statements and Comprehensive Income Statement(Consolidated Income Statement)(in millions of yen)
Fiscal Year ended June 30,
2020

2021

Net sales

238,222

250,432

Cost of sales

186,341

193,758

Gross profit

51,88056,674

Selling, general and administrative expenses

42,76443,536

Operating profit

9,115

13,137

Non-operating income
Interest income

139

Dividend income

126

159

Subsidy income

187

350

－74－21Other

25229

Total non-operating income

353

845

Interest expenses

9873

Foreign exchange losses

79－

Commission expenses

94

23

22－

Share of profit of entities accounted for using
equity method
Foreign exchange gains

Non-operating expenses

Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit

068

296

165

9,173

13,817

67

4－

376

Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries andassociates
Gain on sale of investment securities

1110

Subsidies for employment adjustment

8－

Total extraordinary income

87391

Extraordinary losses
Loss on disposal of non-current assets

－0148

－

Loss on sale of investment securities－1

Loss on valuation of investment securities

32

4

Non-recurring loss

407

40

Loss on business restructuring

Total extraordinary losses

588

45

Profit before income taxes

8,671

14,162

Income taxes - current

1,441

2,384

Income taxes - deferred

2,278

2,622

Total income taxes

3,719

5,007

Profit

4,952

9,155

Profit attributable to non-controlling interests
Profit attributable to owners of parent282

668

4,670

8,487

(Consolidated Comprehensive Income Statement)(in millions of yen)
Fiscal Year ended June 30,2020
2021
Profit

4,952

9,155

Other comprehensive income
Valuation difference on available-for-sale securities

1,347

75

Foreign currency translation adjustment-8,038

4,430

-63

36

-6,7544,542-1,801

13,698-1,786

12,710-15

988

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests