Briefing on Consolidated Financial
Results for the First Quarter

Ended June 30, 2017
PERSOL HOLDINGS CO., LTD.
August 10, 2017

Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

2018/3 Q1 : Summary of Consolidated Business Results
High sales growth due to the solid demand from clients
Margin remained the same standard due to the investment in personnel and system for growth(Unit: million yen)
2017/3 Results

2018/3 Results

Ratio(%)

1Q

1Q

Ratio(%)

2018/3 Forecasts
YoY(%)

1st Half

Full YearSales

137,404

100.0

161,897100.0+17.8%

324,000

677,300

Gross Profit

34,37225.0

39,61924.5+15.3%--EBITDA*

11,522

8.4

11,5727.1+0.4%

20,992

47,108OP income

9,257

6.7

9,114

5.6

-1.5%

15,80036,000

Profit attributableto owners of parent

6,209

4.5

5,425

3.4

-12.6%

9,900

22,200*Rounded down (same as following pages)*EBITDA = OP income + Depreciation + Amortization of Goodwill(same as following pages)
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1

2018/3 Q1 : Sales Analysis
Contribution from increase in the revenues from the existing businesses,
in addition to the M&A(Unit: billion yen)

-0.5
+11.4
+0.4

+0.4

+0.3

-0.7

+2.0
+11.0
161.8

137.4

2017/3 Q1Results

M&A*
+11.4

Increase in sales due to organic growth*+13.6 billion yen

Temporary
Staffing/BPO＊

Recruiting

Overseas

ITO*

Engineeringbillion yen

Others

M&A

Adjustments

2018/3 Q1Results*M&A targets:Kelly Services (Singapore) Pte. Ltd.(October 2016) (dates in parentheses indicate the year and month of consolidation as subsidiaries)*M&A effect:The figures are shown the financial results composed of the new companies by M&A. (Internal transactions have not been eliminated)*Organic growth (existing businesses):The figures are shown the financial results excluding the new companies by M&A. (Internal transactions have not been eliminated)*BPO：Business Process Outsourcing, ITO：IT Outsourcing (same as following pages)
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2018/3 Q1 : Sales by Segment
Continuous steady growth in each segment

2017/3 Results(Unit: million yen)

2018/3 Results

1Q

1Q

106,349

117,397

Recruiting

16,186

Overseas

2018/3 Forecasts

YoY(%)

1st Half

Full Year

+10.4%

234,900

485,400

18,238+12.7%

36,00078,1003,710

15,581+319.9%29,80063,100

ITO

5,769

6,182

+7.2%

13,80029,400Engineering

5,973

6,368

+6.6%

13,50028,100

Others

1,655

935-43.5%

2,000

4,300

Adjustment-2,240-2,806--6,000-11,100

137,404

161,897+17.8%

324,000

677,300

Temporary
Staffing/BPO

TOTAL*Internal transactions have not been eliminated from the figures
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2018/3 Q1 : EBITDA Analysis
Contribution from the existing businesses(Unit: billion yen)

+0.06
+0.1

-0.2
-0.1

+0.8

-0.1

+0.05
-0.4

11.5

11.5
M&A*
+0.05

Increase in sales due to organic growth*+0.4 billion yen

2017/3 Q1Results

Temporary
Staffing/BPO*M&A targets*M&A effect*Organic growth (existing businesses)

Recruiting

Overseas

ITO

Engineeringbillion yen

Others

M&A

Adjustments

2018/3 Q1Results:Kelly Services (Singapore) Pte. Ltd.(October 2016) (dates in parentheses indicate the year and month of consolidation as subsidiaries):The figures are shown the financial results composed of the new companies by M&A. (Internal transactions have not been eliminated):The figures are shown the financial results excluding the new companies by M&A. (Internal transactions have not been eliminated)
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2018/3 Q1 : EBITDA by Segment
Despite the contribution from the existing businesses, due to the investment in personnel,(Unit: million yen)brand, and system for growth, margin remain the same standard as last year

2017/3 Results
1Q

2018/3 Results
1Q

2018/3 Forecasts

YoY(%)

1st Half

Full Year

Temporary
Staffing/BPO

5,851

6,663

+13.9%

12,29526,278

Recruiting

3,780

3,889

+2.9%

5,904

13,100Overseas

-17

104

-

288

977

ITO

514

290

-43.6%

1,090

2,991

Engineering

520

339

-34.8%

1,311

2,869

Others

148

-9

-

-158

-120

Adjustment

723

294

-

259

1,011

11,522

11,572+0.4%

20,992

47,108TOTAL*Internal transactions have not been eliminated from the figures
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2018/3 : OP income Analysis
Contribution from the existing businesses(Unit: billion yen)

+0.06
+0.1

-0.2
-0.1

+0.7

-0.1

-0.08
-0.4

9.2

9.1
M&A*
-0.08

Increase in sales due to organic growth*+0.3 billion yen

2017/3 Q1Results

Temporary
Staffing/BPO*M&A targets*M&A effect*Organic growth (existing businesses)

Recruiting

Overseas

ITO

Engineeringbillion yen

Others

M&A

Adjustments

2018/3 Q1Results:Kelly Services (Singapore) Pte. Ltd.(October 2016) (dates in parentheses indicate the year and month of consolidation as subsidiaries):The figures are shown the financial results composed of the new companies by M&A. (Internal transactions have not been eliminated):The figures are shown the financial results excluding the new companies by M&A. (Internal transactions have not been eliminated)
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6

2018/3 Q1 : OP income by Segment
Despite the contribution from the existing businesses, due to the investment in personnel,(Unit: million yen)brand, and system for growth, margin remain the same standard as last year

2017/3 Results
1Q

2018/3 Results
1Q

2018/3 Forecasts

YoY(%)

1st Half

Full Year

Temporary
Staffing/BPO

5,140

5,927

+15.3%

10,70022,700Recruiting

2,932

3,058

+4.3%

4,200

9,500

Overseas

-247

-261

-

-500

-600

ITO

355

116

-67.3%

800

2,400

Engineering

378

191

-49.5%

1,000

2,200

Others

136

-25

-

-200

-200

Adjustment

561

107

-

-200

0

9,257

9,114

-1.5%

15,80036,000TOTAL*Internal transactions have not been eliminated from the figures
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7

2018/3 Q1 : Consolidated Balance Sheets
As of March 31, 2017
Results
Assets

As of June 30, 2017

Ratio(%)

Results

Ratio(%)

Change(Unit: million yen)

268,364100.0

263,768

100.0-4,595

165,240

61.6

160,72460.9-4,51569,43925.968,461

26.0-977

103,12338.4

103,043

39.1-80

73,55727.4

71,82627.2-1,730114,54742.7

106,557

40.4-7,98987,91332.8

79,56330.2-8,349

5,053

1.9

5,004

1.9

-49

Non-current liabilities

26,6349.9

26,993

10.2

359(Long-term loans payable)

20,426

7.6

20,423

7.7-2

Current assets(Cash and deposits)
Non-current assets<Current assets>
Decrease in notes and accounts
receivable - trade＜Right of trademark and goodwill＞(Right of trademark and goodwill)

Liabilities
Current liabilities(Current portion of loans payable)(Convertible bond-type bondwith stock acquisition rights)

31

0.0

28

0.0

-3

153,81657.3

157,211

59.6

3,394

139,11951.8

142,548

54.0

3,428

(Capital stock)

17,465

6.5

17,466

6.6

1(Capital surplus)

20,156

7.5

20,182

7.7

26(Legal retained earnings)

102,432

38.2

105,753

40.1

3,320

Minority interests

14,696

5.5

14,662

5.6-34

Net assets
Owners' capital

Decreased due to Depreciation, Detrition,
Foreign exchange＜Current liabilities＞
Decrease in account payable, unpaid
corporation tax etc.

＜Convertible bond-type bond with stockacquisition rights＞
Decrease by conversion<Capital stock and capital surplus>
Increase due to conversion of the bond<Legal retained earnings>
Increased due to an increase in profit

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8

2018/3 1Q Transition of Business Results by Segments ① Temporary Staffing/BPO+10.4%(Unit: billion yen)
+13.9%+15.3%

106.3

117.3
5.8

Sales

6.6

EBITDA

5.1

5.9

2018/3 Q1 : Highlights•

Demand from client companies remained strong, sales increased dueto the increase of the number of temporary staffing who is working•

Demand for temporary staffing remains strong due to workforce
shortage and job relocation of client’s company, supported by Workstyle-reform•

Placement number is increasing from the collaboration within PERSOL
group by utilizing the offices of Temporary business•

Operating income increased due to the revenue growth which exceeds
increase of costs such as social insurance premiums, etc.

OP income2017/3 Results
1Q(Unit: million yen)
2018/3 Results

1Q

2018/3 Forecasts

YoY(%)

1st Half

Full YearSales

106,349

117,397+10.4%

234,900

485,400

EBITDA

5,851

6,663

+13.9%

12,29526,278

5.5

5.7

-

5.2

5.4

5,140

5,927

+15.3%

10,70022,700

4.8

5.0

-

4.6

4.7

EBITDA margin (%)
OP incomeOP income ratio (%)*Internal transactions have not been eliminated from the figures*See the "Factbook for the First Quarter Ended June 30, 2017" released on the website on the same date for the quarterly results
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2018/3 1Q Transition of Business Results by Segments ② Recruiting+12.7%(Unit: billion yen)
+2.9%

18.2

+4.3%

16.1
3.7

Sales

3.8
2.9

EBITDA

2018/3 Q1 : Highlights•

Demand from client companies remained strong, placement businessdriven the growth•

Job openings recorded the highest for consecutive 31 months(DODA
research)•

Personnel reinforcement and promotional investment to meet thedemands•

Placement number is increasing from the collaboration within PERSOL
group

3.0

OP income2017/3 Results
1Q(Unit: million yen)
2018/3 Results

1Q

2018/3 Forecasts

YoY(%)

1st Half

Full YearSales

16,186

18,238+12.7%

36,00078,100EBITDA

3,780

3,889

+2.9%

5,904

13,100EBITDA margin (%)

23.4

21.3

-

16.4

16.8

OP income

2,932

3,058

+4.3%

4,200

9,500

OP income ratio (%)

18.1

16.8

-

11.7

12.2

*Internal transactions have not been eliminated from the figures*See the "Factbook for the First Quarter Ended June 30, 2017" released on the website on the same date for the quarterly results
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2018/3 1Q Transition of Business Results by Segments ③ Overseas+319.9%(Unit: billion yen)

2018/3 Q1 : Highlights• High sales growth due to the expansion of business scope by the
Joint Venture with Kelly Services, Inc. (October 2016~）• Due to the moderate recovery of market environment, EBITDA
became profitable

15.5
3.7

• Continuous investment in personnel and system for future
growth

△0.01
Sales

0.1

EBITDA△0.2△0.2

OP income2017/3 Results
1Q(Unit: million yen)
2018/3 Results

1Q

2018/3 Forecasts

YoY(%)

1st Half

Full Year

Sales

3,710

15,581+319.9%29,80063,100EBITDA

-17

104

-

288

977

EBITDA margin (%)

-0.5

0.7

-

1.0

1.5

OP income

-247

-261

-

-500

-600

OP income ratio (%)

-6.7

-1.7

-

-1.7

-1.0

*Internal transactions have not been eliminated from the figures*See the "Factbook for the First Quarter Ended June 30, 2017" released on the website on the same date for the quarterly results
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2018/3 1Q Transition of Business Results by Segments ④ ITO+7.2%(Unit: billion yen)

2018/3 Q1 : Highlights• Demand for IT system and SI-related services from clientcompanies remained solid• Achieved sales growth due to the increase in the high value-added
PJ such as SI-related service, the sales marketing service

6.1

5.7

0.5

-43.6%

0.2
Sales• Increased in personnel expenses due to recruitment and labor
condition improvement of IT engineers

EBITDA

0.3-67.3%

0.1• Profitability declined temporary, due to cost increase in particular
project

OP income2017/3 Results
1Q(Unit: million yen)
2018/3 Results

1Q

2018/3 Forecasts

YoY(%)

1st Half

Full Year

Sales

5,769

6,182

+7.2%

13,80029,400EBITDA

514

290-43.6%

1,090

2,991

EBITDA margin (%)

8.9

4.7

-

7.9

10.2

OP income

355

116

-67.3%

800

2,400

OP income ratio (%)

6.2

1.9

-

5.8

8.2

*Internal transactions have not been eliminated from the figures*See the "Factbook for the First Quarter Ended June 30, 2017" released on the website on the same date for the quarterly results
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2018/3 1Q Transition of Business Results by Segments ⑤ Engineering+6.6%(Unit: billion yen)

2018/3 Q1 : Highlights• Demand of design development and experiment from theautomobile and electric industries remained solid• Started as PERSOL RESEARCH & DEVELOPMENT CO., LTD.
from April 2017
(Merged Japan Tecseed Co. Ltd. with DRD Co,. Ltd.)

6.3

5.9

0.5

-34.8%0.3
Sales

EBITDA

0.3-49.5%

0.1• Profitability declined temporary, due to cost increase inparticular project

OP income2017/3 Results
1Q(Unit: million yen)
2018/3 Results

1Q

2018/3 Forecasts

YoY(%)

1st Half

Full Year

Sales

5,973

6,368

+6.6%

13,50028,100EBITDA

520

339-34.8%

1,311

2,869

EBITDA margin (%)

8.7

5.3

-

9.7

10.2

OP income

378

191

-49.5%

1,000

2,200

OP income ratio (%)

6.3

3.0

-

7.4

7.8

*Internal transactions have not been eliminated from the figures*See the "Factbook for the First Quarter Ended June 30, 2017" released on the website on the same date for the quarterly results
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13

2018/3 1Q Transition of Business Results by Segments ⑥ Others／Adjustment(Unit: million yen)
Others2017/3 Results

2018/3 Results

1Q

1Q

2018/3 Forecasts

YoY(%)

1st Half

Full Year

Sales

1,655

935

-43.5%

2,000

4,300

EBITDA

148

-9

-

-158

-120

EBITDA margin (%)

9.0

-1.0

-

-7.9

-2.8

OP income

136

-25

-

-200

-200

OP income ratio (%)

8.2

-2.7

-

-10.0

-4.7

(Unit: million yen)
Adjustment
Sales
EBITDAEBITDA margin (%)
OP incomeOP income ratio (%)

2017/3 Results

2018/3 Results

1Q

1Q

2018/3 Forecasts

YoY(%)

1st Half

Full Year-2,240-2,806--6,000-11,100

723

294

-

259

1,011

-

-

-

-

-

561

107

-

-200

0

-

-

-

-

-

*Internal transactions have not been eliminated from the figures*See the "Factbook for the First Quarter Ended June 30, 2017" released on the website on the same date for the quarterly results*Others include our group functional services, education and training business, employment support business for people with disabilities*Adjustment stands for elimination of transactions between segments, and revenue and expenses of PERSOL HOLDINGS CO., LTD.
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

14

Appendix：Recent M&As
Kelly Services(Singapore) Pte. Ltd.

Programmed Maintenance
Services Limited

Established

August, 2000

January, 1992

Net Sales（*1）

387 million USD（*2）

2,691 million AUD（*4）

OP income（*1）

9 million USD（*2）-（*5）

Acquisition dateJuly, 2016

October 2017 (Planned)

Contribution from2017/3 Q3

2018/3 Q4 (Planned)

Ownership ratio

51%

100％

Acquisition price7.77 billion yen (*3)

69.1 billion yen（*6）

Company name

Goodwill

4.62 billion yen

Currently being scrutinized
Amortization period

10 year

Segment

Overseas

To Be Determined*1. This briefing is only for better understanding. Please note that numbers and indexes in this page are not audited*2. The figure is the performance in the APAC region of the joint venture partner ‘Kelly Services, Inc.’ (the FY ended Dec. 2015). (Including some businesses outside of the joint venture’s scope.)*3. This amount includes stock-kind contributions of our APAC business of Capita Pte. Ltd etc*4. The figure is the performance of Programmed of FY ended Mar 2017
*5. Programmed makes financial statements based on The Australian Accounting Standards Board where there is no OP income*6. Conversion of AUD1: JPY 87.32
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15

Appendix：Acquisition of Programmed Maintenance Services Limited

1. Significance of this acquisition & PERSOL’s overseas strategy
2. APAC region HR services market scale
3. Programmed’s position in the Australian market
4. Outline of Programmed
5. Programmed’s financial results trend
6. Programmed’s business and synergy with PERSOL
7. Acquisition cost & impact to our financial results〔Appendix〕
PERSOL HOLDINGS CO., LTD. = PERSOLProgrammed Maintenance Services Limited＝ Programmed
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

16

Appendix：Significance of this acquisition & PERSOL’s overseas strategy
We can establish the top position in APAC region by utilizing Programmed’s strong businessplatform and leading market position in Australia and New Zealand
Key Point

Overseas
Strategy

To achieve PERSOL group vision: "Creating a social infrastructure for people andorganizations that catalyzes growth and innovation“,
the overseas business is one of core PHD businesses which requires
cultivation/strengthening

Significance of
thisacquisition

Australia is the largest temporary staffing market in the APAC region
Programmed proudly holds the #1 share in the Australian market
We can expect overseas sales in excess of JPY 300 billion and establish
the top position in APAC region

Synergy

Integrate the know-how of Programmed which has strength inequipment/facilities maintenance sub-contracting
We can expand business in the APAC region where PERSOL Group has
already made inroads
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17

Appendix：Scale of the APAC Region HR Services Market
Australia is the largest of the markets we are targeting in the APAC region
Global Temporary Staffing Market（Unit：Billion USD）
APAC 39

Europe 179

Japan 57

Temporarystaffing market
428

Australia
14.6 Billion USD

New Zealand
China
Hong Kong
India
Indonesia
Singapore
South Korea
Other

1.2
10.1
1.4
4.5
0.6
0.9
2.5
2.8

North America 154

Source：STAFFING INDUSTRY ANALYSTS
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18

Appendix：Programmed’s position in the Australian market
Programmed is #1 in the temporary staffing market in Australia
This acquisition enables us to establish a solid business platform in Australia and eventually across APAC

Australian Temp. staffing market（Unit：Billion USD）

Australian Temp. staffing market share（2016）

20

15

10

5

0

ActualForecast
Source：IBIS World Industry Repo
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19

Appendix：Outline of Programmed
Established as a painting services company in 1951 then expanded the business into facility/equipment
maintenance
Acquired SKILLED Group; a leading Australian HR services company in 2015, became the largest HR
services company
Company Name

Programmed Maintenance Services Limited

Market Listing

Australian Stock Exchange （Ticker: PRG）, Elected to ASX300 index

Headquarters

Burswood, Western Australia
1951: Established as a painting services company(subsequently expands the business into facilities/equipment maintenance)

Corporate History

2007: Merged with Integrated Group; a major Australian HR services company
2015: Acquired SKILLED Group; a leading Australian HR services company

No. of Employees
Corporate Philosophy

25,003
headcount(2017 June)

Permanent employees
Fixed term employees
Temporary staff

1,991 headcount2,964 headcount
20,048 headcountTo be a leading provider of staffing, maintenance and facility management services,
without injury

Number of locations/sites Over 100 locations; mainly in Australia
Amount of capital

AUD 570 million（as at 2017.3.31）

Net Assets

AUD 607 million（as at 2017.3.31）

Total assets

AUD 1,293 million（as at 2017.3.31）

Consolidated sales

AUD 2,691 million（as at 2017.3.31）

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20

Appendix：Programmed’s Financial Results Trends
Stable growth: both organic and M&A（AUD Million）
3,000
2,500

Sales
2,691

The Oct 2015
Acquisition of Skilled
Ltd. results in a large
growth in sales

EBITDA

120

120

96

100

100

2,000

80

80

1,500

60

60

1,000

40

40

500

20

20

0
13.3

14.3

15.3

16.3

17.3

EBITA

0

78

0
13.3

14.3

15.3

16.3

17.3

13.3

14.3

15.3

16.3

17.3

FY Mar 2017
Breakdown
49％

64％

Staffing

Maintenance

38%

36%

51%

Staffing

62％

MaintenanceStaffing

Maintenance

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21

Appendix：Programmed’s business and synergy with PERSOLProgrammed’s business
Staffing

Maintenance

Provide temporary staffing andrecruitment/placement services to various
industries in Australia and New Zealand

Provide large scale maintenance, facility
management businesses
Especially have strong presence in infrastructure,
manufacture, and mining industries withpartnership between public and private sectors

Synergy with PERSOL‘Soft’ talent know-how strengths of
PERSOL relating to white-collar roles

Operational know-how relating toequipment/facilities maintenanceExpertise in Asia

Experience with large-scale projects

Integrate both company’s strength
Create synergy by expanding maintenance business to APAC region where PHD already made inroads
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22

Appendix：Acquisition cost & impact to our financial results

Acquisition
Cost

Corporate
Combination
Date

Impact to ourFinancial results

JPY 69.1 billion※Conversion of AUD1: JPY 87.32

After October 2017 (Planned)※ At the earliest, consolidation will commence:• end December for the balance sheet and,• end January for the P&L statement

Impact to our Financial results of this FY are
currently being scrutinized
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23

Disclaimer

The statements concerning the Company’s future businessperformances in this material such as earnings forecasts are
based on information available as of August 10, 2017 andcertain assumptions deemed to be reasonable by the Company,and do not mean that we promise to achieve these figures.
Actual earnings may differ materially from the statements due
to a variety of factors.
This briefing is only for better understanding. Please note that
numbers and indexes in this book are not audited.

August 2014 : PERSOL HOLDINGS was added to the JPX Nikkei Index 400
What is the JPX
Nikkei 400？

It is a new stock price index that consists of companies that meet various requirements for global
investment, such as the efficient use of capital and a management perspective that is conscious ofinvestors, for the purpose of boosting the appeal of Japanese companies domestically andinternationally.

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24