Supplementary Information on theConsolidated Financial Results forthe 3rd Quarter of the Fiscal YearEnding in March 2020 (Q3 FY2019)

PERSOL HOLDINGS CO., LTD.
February 14, 2020

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Table of Contents

1. Consolidated Financial Results for Q3 FY2019

2. Financial Results by Segment for Q3 FY2019

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1

Consolidated Financial Results for
Q3 FY2019

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2Results Highlights of Nine Months of FY2019 ended Dec., 2019•

Consolidated net sales grew compared to the same periods of FY2018, led by Temporary Staffing/BPO
and Recruiting segments in Japan. Operating profit declined by unprofitable overseas operations. Net
loss recorded reflecting extraordinary losses booked for Q2.

 Net sales

721.16 JPY billion (+5.2% YoY) Operating profit

28.40 JPY billion (-11.4% YoY, OPM 3.9%)

 Quarterly net profit attributable to owners of parent company -654 JPY million
 There is no change in the full-year forecasts for FY2019 announced on November 12, 2019.
Topics Japan operations: For the preparation of introducing ”Equal Pay for Equal Work” law, we have completed the negotiation tocorporate clients. Major national players showed their understanding, however, negotiation to local SMEs
continued. In May 2020, financial impact thereby for the next fiscal year will be officially released.
 Overseas operations: The system trouble of PERSOLKELLY in Australia has been concluded in December 2019, but it is urgently
required to reestablish the business structure. New management team of PROGRAMMED has started
with clear focus on reinforcing Staffing business.
 Company-wide:
New Medium-term Management Plan is to be announced in mid May, 2020.
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3

Quarterly Fiancial Results••

Quarterly sales growth rate lowered for Q3 FY2019 due to declined sales of “an”(Recruiting segment)
which terminated its service in November 2019, as well as decreased sale from overseas operations
affected by exchange effect.
Operating profit dropped by the termination of “an” business, stagnated overseas operations, andadvanced investments on new business developments.
FY2018(million yen)

FY2019Q1Q2

Q3Q4Q1Q2

Q3225,929

226,330

232,971

240,586

235,218

243,738

242,204

39.6%

39.0%

36.8%

5.9%

4.1%

7.7%

4.0%

11,5308,922

11,62012,036

10,057

10,058

8,287

5.1%

3.9%

5.0%

5.0%

4.3%

4.1%

3.4%

15,401

12,795

15,533

16,242

14,416

14,532

12,410EBITDA Margin(%)

6.8%

5.7%

6.7%

6.8%

6.1%

6.0%

5.1%

Net profit attributableto owners of parent

6,631

5,355

6,750

5,622

5,466-10,643

4,522

Net sales
YoY(%)

Operating profit
OP Margin(%)

EBITDA

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4Condensed Profit and Loss Statement for Nine Months ended
Dec. 31, 2019(million yen)

Nine Months
FY2018FY2019Full-year
Forecast for
FY2019％ chg.

Actual/Forecast

右の表の行間を調整
980,000
73.6％してください

Net sales

685,231

721,160

5.2%

Operating profit

32,07428,403-11.4%

40,70069.8％

EBITDA

43,73041,358-5.4%

58,00071.3％

Extraordinary
profit/loss

64-17,234---Net Profit/loss

18,738-654-

5,500

-

EPS afteradjustment (yen)110.4795.80-13.3％

141.3367.8％

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5Breakdown by Segment of Changes in Net Sales (9-month period)•Temporary staffing/BPO segment, our pillar business, led sales increase. Sales of PROGRAMMED
decreased because of exchange effect.
*Other PROGRAMMED（billion yen）
-11.1
ITO
3.5
5.8
PERSOLKELLY
Engineering 9-month of
7.1
FY2019-0.2
Recruiting
Staffing/BPO
1.7
29.1

9-month ofFY2018

721.1685.2*“Other” includes other segment and inter-segment eliminations/adjustments.
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6

Breakdown by Segment of Changes in Operating
Profit (9-month period)••

All segments other than Temporary Staffing/BPO segment declined their operating profit.
Other included expenditures on new business developments.

（billion yen）

Staffing/BPO Recruiting
1.1
0.4
PROGRAMMED-0.7
9-month of
PERSOLKELLYFY2018-1.0
ITO-0.2

Engineering-0.6*Other-1.99-month ofFY2019

32.028.4*“Other” includes other segment and inter-segment eliminations/adjustments.
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7

Financial Results by Segment for
Q3 FY2019

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8

Temporary Staffing/BPO

Temporary Staffing/BPO Segment

Despite one day less working days for this Q3, in addition to positive impact by M&A, increased number of active
temporary staff extended sales growth.
FY2018（Actual）
million yen

Q3FY2019（Actual）

Q4

Q1

129,927 131,103

Net sales
YoY(%)
Operating profit
OPM(％)EBITDAEBITDA Margin(％)
Working days

Q2

Q3

131,429 135,457 140,693

Nine Months（Actual）

Forecast

FY2018FY2019FY2019378,435 407,580 552,000

5.0%

7.6%

5.2%

9.6%

8.3%

5.3％

7.7％

8.3%

6,904

5,976

6,311

5,694

7,111

18,015

19,11727,500

5.3%

4.6%

4.8%

4.2%

5.1%

4.8％

4.7％

5.0%

7,849

7,074

7,310

6,717

8,122

20,85022,15031,400

6.0%

5.4%

5.6%

5.0%

5.8%

5.5％

5.4％

5.7%

6257

59

59

61

183

179237 An increase of open-ended contract temporary workers and proactive sales activities resulted in the increased number ofactive temporary workers.
 Current number of open-ended contract temporary workers was on track with 5,000 targeted number of this fiscal year.
 Sales growth was achieved by following factors: M&A effect (acquired Avanti Staff) +3.3 % and Organic growth +5.0%(comprising of: one day less working days -1.6%, increase number of active workers +6.3%, increase of unit billing rate +2.3%,and other factors -2.0%)
 Other factors above: GP margin was slightly pushed down due to lower utilization of engineer/technician staff and decreased
number of staff placement under the economy uncertainty.
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Recruiting

Recruiting Segment

For this Q3, both sales and operating profit declined affected by business uncertainty, in addition to termination of“an” service.
FY2018（Actual）

FY2019（Actual）

FY2019FY2019Q4

Net sales

21,207

23,57723,54922,25918,11462,24963,92384,000

21.9%

17.3%

13.6%

9.6%-14.6%

18.0％

2.7％

-2.1%

3,210

4,784

4,703

4,393

1,271

10,77010,367

13,600

15.1%

20.3%

20.0%

19.7%

7.0%

17.3％

16.2％

16.2%

EBITDA

3,920

5,521

5,414

5,146

2,047

12,86012,607

17,600EBITDA Margin(％)

18.5%

23.4%

23.0%

23.1%

11.3%

20.7％

19.7％

21.0%

OPM(％)Q3

FY2018Q3

Operating profit

Q2

Forecast

million yen

YoY(%)

Q1

Nine Months（Actual）

 Ratio of personnel cost against sales rose for this Q3, because it requires a certain period for former “an” staff tocontribute to sales and earnings.
 Declined the ratio of successful placement because economic uncertainty made corporate clients to be careful for hiring.

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10

PROGRAMMEDPROGRAMMED Segment

For this Q3, Staffing business continued to be stagnant due to sluggish Australian economy. On the other hand, theMaintenance business showed steady performance.
FY2018（Actual）

FY2019（Actual）

FY2018FY2019FY2019

Q3Q4

Q1Net sales

48,86650,14546,444

48,16045,589--8.0%

-9.8%

-5.5%

-6.7%

--7.4％

-4.7%

18604

73-215-360

237-502

0

0.0%

1.2%

0.2%

-0.4%

-0.8%

0.2％

-0.4％

0.0%

1,463

2,061

1,893

1,570

980

4,660

4,445

6,700

EBITDA Margin(％)

3.0%

4.1%

4.1%

3.3%

2.1%

3.1％

3.2％

3.5%

AU GDP growth (%)

2.6%

2.2%

1.7%

1.4%

1.7%

---AUD/JPY

83.1

82.6

78.5

77.7

76.3

83.1

76.3

-

Operating profit
OPM(％)EBITDA

Q3

Forecast

million yen

YoY(%)

Q2

Nine Months（Actual）

151,331 140,194 192,000 Segment sales as a whole declined by 6.7% affected by exchange effect. (On a local currency basis, total sales +3.8%, including
Staffing business -4.1% and Maintenance business +13.5%)
 Staffing business: Increase in business development activity for new clients has seen a recovery in temporary staff numbers to thelevel of previous year.
 Maintenance business: Increased earnings contribution from Property Services subsegment in Q3 after slow first half, and Facility
management subsegment continued healthy growth by 29.8%.
 Booked one-time personnel expense in Q3 (approx. JPY 360 million).
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11PERSOLKELLYPERSOLKELLY Segment

For this Q3, Staffing business performed well and total sales increased. System trouble in Australia caused
decreased sales and extra costs, and made operating loss.
FY2018（Actual）

FY2019（Actual）

FY2019FY2019Q4

Net sales

19,372

20,611

20,56821,423

20,65055,49562,64285,000

16.3%

19.0%

19.2%

13.5%

6.6%

14.5％

12.9％

11.7%

290

-98-230

88-214647-356-8001.5%

-0.5%

-1.1%

0.4%

-1.0%

1.2％

-0.6％

-0.9%

EBITDA

479

148-19297-20

1,199

257-300

EBITDA Margin(％)

2.5%

0.7%

-0.1%

1.4%

-0.1%

2.2％

0.4％

-0.4%

OPM(％)Q3

FY2018Q3

Operating profit

Q2

Forecast

million yen

YoY(%)

Q1

Nine Months（Actual）

 Staffing business performed well in Singapore, Malaysia and Hong Kong, continuing the double digit growth in sales in each area
except China and Australia.
 On the other hand, sales in Australia was significantly declined due to persisting economic downturn and the effect of the system
trouble in the country.

 An operating loss was recorded because of an increased labor costs and an increase in provision of reserves for uncollectedaccounts receivable both related to the system trouble in Australia, and revenue reductions of the placement service business in
China due to the impact of US/China trade friction.
 While the system trouble has been concluded in December 2019, reestablishment of business structure for normal operation isurgently needed.
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12ITOITO Segment
High sales growth ratio in Q3 maintained, supported by robust demand for IT solutions.

FY2018（Actual）

FY2019（Actual）

FY2018FY2019FY2019Q3Q4

Q1Net sales

8,496

9,775

8,986

10,292

10,42023,86929,69841,500

13.7%

22.4%

25.1%

25.7%

22.6%

13.6%

24.4%

23.4%

388

857

-345

467

538

844

660

2,200

4.6%

8.8%

-3.8%

4.5%

5.2%

3.5%

2.2%

5.3%

EBITDA

615

1,059

-96

720

836

1,430

1,460

2,900

EBITDA Margin(％)

7.2%

10.8%

-1.1%

7.0%

8.0%

6.0%4.9%

7.0%

Operating profit
OPM(％)

Q3

Forecast

million yenYoY(%)

Q2

Nine Months（Actual）

 Sales increased as a result of strong IT investment demand from corporate clients.
 Operating profit margin was improved by increased unit billing rates despite a cost increase as a result of lifted wagelevels.
 Operating profit margin for nine months declined, due to the loss made by the project of system developments in Q1.

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13

Engineering

Engineering Segment

Both sales and operating profit were decreased for this Q3 because of reduced orders from main clients due to theimpact of US/China trade friction.
FY2018（Actual）

FY2019（Actual）

Nine Months（Actual）

Forecast

million yen

Q3

Q4

Q1

Q2

Q3

FY2018FY2019FY2019Net sales

7,720

7,986

6,373

7,435

7,378

21,371

21,18729,800

8.9%

4.5%

-1.0%

3.1%

-4.4%

6.0%

-0.9％

1.5%

938

945

11658

584

1,816

1,253

2,100

12.2%

11.8%

0.2%

8.9%

7.9%

8.5%

5.9％

7.0%

1,092

1,100

113

767

694

2,266

1,574

2,600

14.1%13.8%

1.8%

10.3%

9.4%

10.6%

7.4％

8.7％

YoY(%)
Operating profit
OPM(％)EBITDAEBITDA Margin(％)

 Sales decreased as slow demands from main clients, especially automobile companies, due to the impact of US/China
trade friction.
 Operating profit dropped by approx. 30% due to lower utilization ratio caused by declined orders.
 New customers development activity is steadily progressing but it will take a certain time to contribute to business results.

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14Other Segment“MIIDAS” newly developed business performed well in Q3 continuously, as planned.
FY2018（Actual）

FY2019（Actual）

Nine Months（Actual）

Forecast

FY2018FY2019FY2019million yen

Q3

Q4

Q1

Q2

Q3

Net sales

1,600

1,531

2,486

3,545

4,144

4,219

10,17615,000

39.6%

25.9%

75.3%

195.7%

158.9%

35.1％

141.2％

160.8%-52-383

-196

-410

-255

-175

-862

-1,300-3.3%-25.0%-7.9%-11.6%

-6.2%

-4.2％

-8.5％

-8.7%

EBITDA-31-360-142-275-88-116-506-1,100EBITDA Margin(％)-1.9%-23.5%

-5.7%

-7.8%

-2.1%

-2.8％

-5.0％

-7.3％

YoY(%)
Operating profit
OPM(％)

 From this fiscal year, “MIIDAS” has been transferred from Recruiting segment.
 Direct sales of “MIIDAS” is currently on the rise, but the overall segment does not yet make a contribution to profit as it isstill in the advanced investment stage.

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15

Adjustments (Corporate cost and consolidated reconciliation）
As initially planned, for this Q3, investment on digital transformation(DX) for developing AIapplications and innovative technologies was done.
FY2018（Actual）
million yen

Q3

Net sales
YoY(%)
Operating profit
OPM(％)EBITDAEBITDA Margin(％)

FY2019（Actual）

Q4

Q1

Nine Months（Actual）

Forecast

Q2

Q3

FY2018FY2019FY2019-4,220-4,143-4,619-4,837-4,787-11,739-14,242-19,300---------78-648

-269

-617

-388

-83

-1,274-2,600--------144-365-56-412-161

577-630-1,800-------- As the businesses expand, amount of inter-segment and internal transactions, such as corporate management fee
increased .
 Since R&D investments related to DX and innovation are commissioned to PERSOL INNOVATION, Co., Ltd, in Other
segment and operating loss was recorded as planned at the beginning of this fiscal year. (Total investment amounts fornine months of FY2019 were JPY 1,460 million)

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16

Disclaimer

Results forecasts etc. used in this material contain forward-looking
statements which are based on a certain number of assumptions theCompany deems rational, and the information at hand as of February 14,2020 which are not meant in any way by the Company to be assurances thatplans will be realized. Actual results etc. may vary greatly due to variouscauses.

The figures, indicators, PERSOL Group results, and details of financial status
included in this material have been released to facilitate an appropriate
understanding. Kindly note that not all the figures and indicators have been
subjected to audit and review by external auditors.

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17