Consolidated Financial Resultsof 1st quarter of the Fiscal YearEnding in March 2021 (FY2020
1Q) and the New Mid-termManagement PlanPERSOL HOLDINGS CO., LTD.
August 12, 2020

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Today’s Agenda
1. Summary of the Consolidated Financial Results for 1Q of
FY20202. Our Vision Toward 2030

3. Mid-term Management Plan 2023••••

The Review of Previous Mid-term Management Plan
Overall Strategy
Corporate Governance Structure
Financial Strategy

4． Financial Forecast for FY2020
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1

Summary of the Consolidated
Financial Results for 1Q of
FY2020

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Summary of the Financial Results for 1Q of FY2020
Net sales was mostly the same level of the previous 1Q because sales of some SBUs were decreased
due to COVID-19 despite the increase of sales in Staffing SBU, etc. Whereas, operating profit was
decreased because of profit drop, especially in Career SBU.

(million yen)

FY2019Q1

FY2020Q1%
Change(Reference)
FY2020 Q1 Forecast

Net sales

235,218

238,2221.3％

216,100～

223,700

Operatingprofit10,057

9,115

-9.4％

1,500

～

3,000

OP Margin

4.3％

3.8%

-0.5pt

0.7%

～

1.3%

EBITDA

14,416

13,389

-7.1％

5,400

～

6,900

Net profit*

5,466

4,670

-14.6％-

Adjusted EPS

34.66

30.70

-11.4％-(yen)*Net profit attributable to owners of parent company

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Summary of the Financial Results for 1Q of FY2020（Operating Profit Upward Factors)
 Operating profit was JPY 9.1 billion which was significantly higher than forecast for Q1 of JPY 1.5
billion to JPY 3.0 billion announced in May 2020.
 Especially in Staffing SBU, operating profit was increased significantly by approx. JPY 4.1 billion
compared to the forecast because i) number of temporary staffs who took leaves was much lesser
than expected and ii) sales was increased and profitability was improved in BPO as a result of
increasing of outsourcing projects.

Result（million yen）

+855

+32

+1,005

Forecast（max.）-26+86+4,161

9,115

3,000

Group
all

Staffing*: Professional Outsourcing** : Asia Pacific

CareerPRO*

Solution

APAC**

Other・
Adjustm
ent

Group
all

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Sales by each SBU for 1Q of FY2020(million yen)Staffing

CareerProfessional
Outsourcing
Solution
Asia Pacific(APAC)
Other
Adjustment

FY2019Q1

FY2020
FY2020Q1 (FCST)
Q1

Factors

 Temporary Staffing business was remained firm because the114,200of temporary workers who took leaves was lesser than
～ 130,678 number
122,189
expected.
119,200
 The number of orders for new projects increased in BPO sector.
14,000 Sales declined due to termination of “an” busines” (in Nov. 2019).
～ 16,827  After number of orders were declined significantly in April, the23,549number of orders was on a recovery trend in May and June.
15,00024,700 Outsourcing business steadily grew, mainly in IT area.
～ 26,415  Business in engineering area maintained the same level of
24,008
performance as the same period of previous year.
25,700700
 Sales declined mainly due to application of the principle method～
952 for revenue recognition of job search application business.
1,351(impact amount: -JPY 0.38 billion)
1,100

65,980 Temporary staffing business in Singapore and maintenancebusiness in Australia showed robustness on a local currency basis.

67,01265,000

1,731

2,500
～
2,700

 Sales increased as a result of the effects of M&A after acquisition
training business in July 2019.
2,364  ofSales did not reach the forecast as a result of the effects of
COVID-19.

- 4,624-5,000-4,995＿

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Operating Profit by each SBU for 1Q of FY2020(million yen)

FY2019
Q1

Staffing

5,823

Career4,703

Professional
Outsourcing

271

Solution-299

Asia Pacific(APAC)

-156

Other

Adjustment

-3

-281

FY2020
FY2020Q1 (FCST)
Q1

4,260
～
4,760
100
～
500
-640
～
-540
-1,670～-1,470
-90
-550
～
-500
90
～
340

8,921

Factors
 Profit increased due to factors of sales increase and improved
profitability in BPO sector

to the forecast, sales increase resulted in profits higher.
1,505  Compared
Cost reduction was implemented mainly with marketing cost.


315-1,437

 Profit increased due to sales increase and cost reduction although
there was a certain number of inactive engineering staffs.
 Loss recorded partly due to application of the principle method
for revenue recognition of job search application business.
(impact amount: -JPY 0.36 billion)-116

 Profitable placement business was affected by COVID-19,
especially in China.

-455

 Despite cost reduction, loss recorded mainly due to a sales
decrease in training business.

 Timing of investments in relation to the Mid-term Management
382 Plan 2023 was put off due to COVID-19, resulting in increased
profit.
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Our Vision Toward 2030

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Value Creation Story
Forecasting the society at 2030, we determined Value creation story to realize Group vision.

8
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Group Vision9
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Change of “Work” in the World in 2030
In this era of 100-year lifespan and driven by evolution of technology, essential and irreversible
changes are occurring in people’s lifestyle and the way of working. Those changes are now accelerated
due to the effect of COVID-19.

Change of “Work” in the world perceived by PERSOLAs the human lifespanbecomes longer in the world,“Working” period is also
getting longer.

Working style of individuals
will change driven byadvancing technologies.

Life style and way of working change.
(The change is accelerated by COVID-19.)

10
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PERSOL’s Strengths: Source of Value Creation
Based on the corporate philosophy and Five Core Principles, “people” who continued to align sincerelywith working individuals, contact points with customers and social trust generated by “people”, andhuman resources and HR information, and healthy financial foundation obtained as a result are thestrengths of PERSOL.
Source of value creation

Human capitalSocial relation capital“People” who continued to align sincerely withworking individuals

Deep and broad-ranging client contact points that
PHD have amassed
Social trust earned through provision of values tosociety over timeIntellectual capital
Copious amounts of talent/HR information baseabout workers/companies

Five Core Principles[Text]

Financial capital
Healthy financial foundation for business growth

Authentic
Customer-Focus
Professional
Teamwork
Innovative

Providing Opportunity

Corporate Philosophy

Individual GrowthSocial Contribution

11
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Group Key Strategies
To realize the world we aim at, three Group Key Strategies were established.

Focusing on each individual
We make priority investments on theactivities that contribute to the increaseof work engagement for all working
individuals supported by PERSOL.

Innovating throughtechnologies
By making the best use oftechnologies, we promote
digitization of existing businesses
to further upgrade thosebusinesses and create new
businesses for future

Extending our value globally
We establish a management
structure to provide values fromJapan as advanced country ofchallenges in relation to “Work” to
the Asia-Pacific region and then to
all around the world.
12
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Social Value and Economic Value that PERSOL Aims to Create
PERSOL will establish, measure and enhance indicators of “Work, and Smile”. We believe thatenhancement of “Work, and Smile” indicators will lead to the enhancement of financial indicators in theend.

Social Value
Support all individuals in APAC including Japan so that they can“Work, and Smile”.

Solution SBU
Asia Pacific SBU

Economic Value

Professional Outsourcing SBUPERSOL workers

Career SBU

Establish “Work, and Smile” indicators andmeasure and enhance them.

Staffing SBU

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SDGs which PERSOL can Contribute to the Achievement andSustainability Policy
In the course of realizing the Group Vision “Work, and Smile” through our business activities, we willcontribute to five SDGs; “4. Quality Education”, “5. Gender Equality”, “8. Decent work and Economic
Growth”, “9. Industry, Innovation and Infrastructure”, “10. Reduced Inequalities”.
Sustainability Policy

SDGs Activities Outline Diagram

Based on our corporate philosophy including“Job Creation”, “Individual Growth”, and“Social Contribution”, PERSOL Group is
actively addressing the solution of social
issues in cooperation with various
stakeholders, aiming at creating sustainable
society.
Toward 2030, we promote business activities,
including creation of new working styles thatmeet the needs in society, to realize theGroup Vision “Work, and Smile” and thereby
make contribution to achievement of theSDGs.
We work on the five SDGs in particular asimportant issues and provide support fordevelopment of human resources andcreation of employment for those people who
can contribute to the achievement of all the
17 sustainable development goals.

14
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Mid-term Management Plan 2023

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Mid-term Management Plan 2023:

The Review of Previous Mid-termManagement Plan

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The Review of Previous Mid-term Management Plan
（FY2016～FY2019)(Unit: billion yen ）Net sales

Operating profit

EBITDA（FY20 Target: 980 billion yen）

（FY20 Target: 48 billion yen）

（FY20 Target: 63 billion yen）

925.8

970.5

44.1
33.4

36.0

FY16

FY17

722.1

591.9

FY16

FY17

FY18

FY19

39.0

43.4

FY19

FY16

FY18

59.9

56.3

FY18

FY19

48.0

FY17

Growth of Business KPIs
Number of new“doda” registrants

Number of temporary
staff members in Japan

CAGR:7%

CAGR:19%

Unit：
thousand people

Unit：
thousand people

1000
800
600
400
200
0

120
110

100
90

80
FY16

FY17

FY18

FY19

Number of corporate
customers

CAGR:9%Total investment for
M＆A
Japan :

Unit：
thousand companies

Approx.

7.4
billion yen

40
30
20

Overseas:10

Approx.

billion yen

0
FY16

FY17

FY18

FY19

73.8

FY16

FY17

FY18

FY19

17
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The Review of Previous Mid-term Management Plan (Strategy)
Various measures have been successfully implemented in the past four years, but there are somechallenges remained, which we aim to realize in the Mid-term Management Plan 2023.
Previous plan

Achievement/result

Challenges for Mid-termManagement Plan 2023

Strategy1Brand-Building

・Unified to PERSOL Brand
・Reached a 15.3％* recognition rate

・Dissemination of recognition
・Promotion of social value creation

Strategy2

Aim to organic
growth with IT
system investment
and improving
productivity

・Productivity increased by “Genesis”
operation(Realized 1.7 times** productivity)

・Increasing productivity by DX***
・Increasing efficiency including
peripheral system

・Promotion of inter-businesscollaboration(Produced 7.4 billion-yen sales)

・Marketing using digital technology
・Utilization of information asset held・Established a position within Top 3
in main regions except China andIndia

・Establishment of a businessfoundation
・Improving profitability

Strategy
3

Generate groupsynergy and groupmanagement

Strategy
4Enhance ourpresence on AsiaPacific region

・Created new businesses
Strategy
5Enhance operational
capability and service
line with M&A(job search application business /cloud POS business and others)

・Research & Development activities
through Innovation Fund*:As of April 2020***: Digital Transformation**:Number of matching decisions per coordinator

・Clarifying priority areas ofinvestment
・Monetizing new businesses
18
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Mid-term Management Plan 2023:

Overall Strategy

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Overall Strategy of Mid-term Management Plan 2023
 Promote provision of social value by realizing “Work, and Smile”.
 Commit to early recovery from significant adverse effects of COVID-19 to the level before pandemic
while maintaining necessary investments in the Mid-term Management Plan 2023.
 It is positioned as the three years to establish a basis for growth by deepening business anddeveloping the management foundation.


Increasing social
value



Increasing economic
value



Identifying growtharea*: Professional Outsourcing

Shifting to SBU
structure

Strengthening
business withtechnology









Set indicators for realizing “Work, and Smile” and promote measures toachieve those indicators.
Disclose Integrated Report in this fiscal year to promote ESG.
Shift from the management focusing on single year P/L to the
management that realizes sustainable growth of corporate value.
Introduce return on capital using ROIC, etc. to promote the increase of
corporate value for the Group as a whole.
Position PRO* SBU as the third pillar while further reinforcing Staffing
and Career SBUs that support profits of Persol Group.
Under new management in APAC** SBU, improve profitability bypromoting cost synergy.
To establish PRO SBU as the Group’s third pillar, actively makeinvestments including M&A in addition to creating synergy within the
SBU.
Proactively promote creation of new businesses in SOL SBU.

Increase both productivity and customer satisfaction throughinvestment on Digital Transformation (DX).

**: Asia Pacific20
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Strategic Positioning of Each SBU
In Mid-term Management Plan 2023, active investment is planned to establish PRO SBU as the third
pillar. For APAC, the highest priority is placed on profitability, refraining from making a large-scale
M&A for a while.

Strategic Positioning

M&A Policy

Staffing

 Establishes a basis as the steadfast top company in Japan
 Increases profitability even further

 Neutral
 Industrial realignment
with an increased
market share

Career Redefines the growth model to enhance the strength of datadriven business improvement to the level of competitive
advantage.
 Will ensure compatibility between high growth rate andprofitability after the market recovery.

 Passive Investments expected
to strengthen
technology

Professional
Outsourcing

 Addresses activities to create synergy within the SBU andexpands business scale remarkably through M&A.

 Active Actively expanding
business scale

Solution Monetizes new businesses and promotes new businessdevelopment activities.
 Ensures a high growth rate and making profit in FY2022.

 Neutral R&D type investment inmedium scale

APAC

 Increases profitability through back-office integration of
PERSOLKELLY and PROGRAMMED and other means.

 Passive Investments expected
to strengthen
technology

21
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Numerical target for FY2022
Promote building foundation for remarkable growth after 2023 by recovering of profitability to the level ofbefore COVID-19. Restore the profitability to the level of renewing the highest record of operating profit in
FY2018 (44.1 billion yen).

(Unit: billion yen）

FY2019ResultFY2020
Forecast

Plan for FY2022

Net sales

970.5

913.4
～945.81,000

Operating profit

39.0

18.0
～22.0

45.0

(OP Margin)

EBITDA（EBITDA Margin）

Net profit
Adjusted EPS（4.0％）

56.3（4.5%）

34.0
～38.0

61.0

7.6*

8.3
～11.1

26.8

148.44yen

72.51yen～84.46yen

147.76yen（5.8%）（6.1%）

22*:Booked impairment loss mainly on overseas business in FY2019.
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Mid-term Management Plan 2023:

Corporate Governance Structure

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Composition of the Board
It was resolved at the general meeting of shareholders held on June 24, 2020 that theratio of independent directors should be 1/2 or more in principle.
Independent
Director

4/10 Directors

Before the change（As of March 31, 2020 ）Representative Director, President
and CEO

Masamichi Mizuta

Director, Deputy President and COO(Group Function Control Officer)

Hirotoshi Takahashi

Director, Senior Executive Officer(Sales Strategy Officer,Temporary
Staffing/BPO Segment Lead)

Takao Wada

Director, Executive Officer (Chief
Financial Officer)

Kiyoshi Seki

Independt Direcor

Ryosuke Tamakoshi

Director (Member of Audit andSupervisory Committee)

Hiroshi Shimazaki

Director (Member of Audit andSupervisory Committee)
Independt Direcor(Member of Audit and Supervisory
Committee)

Independent
Director

5/9 Directors

Afeter the change（After June 24,2020）
Representative Director, President
and CEO

Masamichi Mizuta

Director, Deputy President andExecutive Officer（Business Control Officer,
Staffing SBU Lead）

Takao Wada

Director, Deputy President andExecutive Officer（Function Control Officer,
Solution SBU Lead）

Hirotoshi Takahashi

Independt Direcor

Ryosuke Tamakoshi

Independt Direcor

Naohiro Nishiguchi

Independt Direcor

Masaki Yamauchi

Toshihiro Ozawa

Naoshige Shindo

Independt Direcor(Member of Audit and Supervisory
Committee)

Naohiro Nishiguchi

Independt Direcor(Member of Audit and Supervisory
Committee)

Chisa Enomoto

Newly
appointed

Director
Toshihiro Ozawa（Member of Supervisory Committee）

Independt Direcor
Chisa Enomoto（Member of Supervisory Committee）

Independt Direcor
Kazuhiko Tomoda（Member of Supervisory Committee）
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Establishing New Committees across the Group
Investment, risk management and HR committees are formed that are positioned as an HMC*
advisory organization. These committees aim at increasing corporate value while keeping thebalance between expedition of decision making after shifting to SBU structure and the governance.

Investmentcommittee

Risk management
committee








In case of M&A of a certain scale or larger, it will be reviewed byinvestment committee and the review result will be brought up to HMC
for discussion.
Prior deliberation is made by CFO as a chairman and CLO, CIO, CHRO
and invited external experts of investment committee.

Organization to deliberate various issues in relation to the Group’s risk
management in general.
Annual planning, identification of risks, clarification of risk owners andpromotion of measures against risks in relation to important issues ofrisk management in general.

Promotion of the Group-wide HR strategies and important HR
measures.
 Group-wide talent management- CxO succession plan
- Core HR of the Group including BMC** members and their positions,etc.


HR committee*: Headquarters Management Committee (corresponding to management meeting)**: Business Unit Management Committee (corresponding to the Board of Meeting in each SBU )25
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Corporate Governance Organization※ HMC＝Headquarters Management Committee、SBU＝Strategic Business Unit、CEO＝Chief Executive Officer、CFO＝Chief Financial Officer、
CLO＝Chief Legal Officer、CHRO＝Chief Human Resources Officer、CIO = Chief Information Officer
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Mid-term Management Plan 2023:
Financial Strategy

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Financial Strategy
 In addition to finance discipline secured through introduction of return on capital, IFRS is planned
to be applied in the fiscal year ending in March 2024.
 In view of future introduction of IFRS, our company’s ROIC will be calculated based on the net
operating profit after tax prior to amortization of goodwill as numerator.

Introduction of returnon capital forincreasing corporatevalue

 From a viewpoint of increasing corporate value, shift to a policy focusing on
return on capital from the existing one focusing on P/L.
 In view of future introduction of IFRS, our company’s ROIC will becalculated based on the net operating profit after tax prior to amortizationof goodwill divided by invested capital (=liabilities with interest +shareholder’s equity).
 A rate over 10% is set as a minimum standard for the fiscal year ending inMarch 2023.

IFRS introduction in
the future IFRS is planned to be applied in the fiscal year ending in March 2024 which
has been put off due to acquisitions overseas.
 In view of future introduction of IFRS, adjusted EPS based on net profit
prior to amortization of goodwill will be continuously disclosed.

Shareholder returns

 Policy of shareholder returns will be announced after establishing detailed
investment plan, etc.
28
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The Group’s ROIC Promote business expansion by positive M＆A after acquiring Intelligence in 2013. Have
improved ROIC at the same time, stay at 14% level by increasing profitability in spite of
temporary decline when PROGRAMMED was acquired in fall 2017.
 Target at least 10% in 2023 despite temporary decline due to COVID-19.
(million yen)

Trends in company’s ROIC

300,000

18.0%
15.9%

15.3%
250,000

16.0%
13.9%

13.7%

200,000

10.2%

10.3%

11.1%

14.0%

11.8%

11.3%

12.0%

Minimum goal

8.6%
150,000

10.0% 10％
7.4%

8.0%

100,000

WACC
８.69％

6.0%
4.0%

50,000
2.0%
0

0.0%
10/3

11/3

12/3

13/3

Invested
投下資本
capital

14/3

15/3

16/3

Net operating profit after tax
のれん償却前税引後営業利益
prior to amortization of
goodwill

17/3

18/3

19/3

20/3

ROIC

29
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Financial Forecast for FY2020

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Impact of COVID-19
Current condition of each SBU
Conditions as of August 2020

Future risk

Staffing

 Clerical sector:
Registration interviews with staffs are shifted to online.
Operation has gone back to normal.
 Marketing sector:
The number of active temporary workers and operating
hours are decreasing due to restricted store operation.
 BPO sector:
Orders of new projects is increasing.

Career Counseling sessions and interviews are shifted to online.
 Business is assumed to recover in a mid- to long-term
 There is a tendency of hiring decision taking longer time andprospect under the structural decrease in population, but
postponement of hiring due to the trend of companies todesire for hiring may remain low for the time being with thereconsider HR plans and cut labor costs.
spread of COVID-19 again.

Professional  In IT area, orders from companies continue to be strong.
engineering sector, new projects are decreasing because
Outsourcing  In
customers became cautious in making investment in

 Some companies may terminate contracts at the end of Sep.
or Dec., 2020 after reviewing their HR plans.
 Activity staff ratio of employed without contracted period islikely to be declined.

 Inactive staff members may increase.

development.

Solution The number of orders decreases as a result of small/medium  New customers acquired may decrease.
sized businesses’ cutbacks of labor costs and request for self-  Closedown of business or cancellation of existing customers
restraint on operation made to restaurants (job search(restaurants)
application business / cloud POS business)

APAC Asia: Asia:Temporary staffing business is stable with staff members
Temporary staffing business may keep low level desire forworking from home. On the other hand, in placement
hiring continuing for a certain period.
business, there is a temporary trend of declining demand for  Australia
HR.
Number of active temporary workers in blue-collar area may Australia:
decrease and sales in some part of maintenance business may
Both staffing business and maintenance business suffer fromdecrease
lockdown or economic stagnation.

31
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Financial Forecast for FY2020 Ending March 2021
◆ Corporate needs for hiring talents show a trend of gradual recovery in Japan after the emergency
declaration was lifted. Full-year financial forecast for FY2020 was made on the assumption that thecorporate needs for hiring will be recovering toward the fiscal year end based on the current
situation.
◆ Revision of the forecasts will be disclosed promptly if necessary, considering the market conditions
and business trends in future, including an impact of the COVID-19 pandemic.
(million yen)

FY2019
1st half

FY2020
1st half（Forecast）

YOY (%)FY2019FY2020（Forecast）

YOY (%)Net Sales

478,956

453,100～468,000-5.4％～-2.3％

970,572

913,400～945,800-5.9％～-2.6％

Operating
Profit20,1169,000～10,000-55.3％～-50.3％39,08518,000～22,000-53.9％～-43.7％

EBITDA

28,94817,000～18,000-41.3％～-37.8％56,35634,000～38,000-39.7％～-32.6％

Net Profit*-5,1773,800～4,500

-

7,612

8,300
～11,100

9.0％～45.8％

15(yen)To bedecided-30(yen)To bedecided-Dividend*Net profit attributable to owners of parent company

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Sales Forecast by SBU for FY2020（million yen)

FY2020Q1

FY2020Q2 (FCST)FY2020

1st half (FCST)

2 nd half (FCST)FY2020

FY2020
Full year (FCST)

238,222214,877～
229,777

453,100～
468,000

460,300～
477,800

913,400～
945,800

Staffing

130,678

124,121～
127,121

254,800～
257,800

257,400～
263,400

512,200～
521,200

Career16,827

12,572～
12,772

29,400～29,60028,500～29,60057,900～59,20026,41527,884～28,38454,300～54,80057,900～61,000112,200～
115,800

952

1,347
～
1,547

2,300
～
2,500

3,900
～
4,500

6,200
～
7,000

Asia Pacific(APAC)

65,98050,919～61,919116,900～
127,900

115,800～
122,900

232,700～
250,800

Other

2,364

2,835
～
2,935

5,200
～
5,300

7,000

12,200～12,300-4,995-4,904～-4,804-9,900～-9,800-10,600～-10,200-20,500～-20,000

Consolidated
Sales

Professional
Outsourcing
Solution

Adjustment

33
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Operating Profit Forecast by SBU for FY2020（million yen）

FY2020Q1

FY2020Q2 (FCST)FY2020

1st half (FCST)

2 nd half (FCST)FY2020

FY2020
Full year (FCST)

9,115

-115
～
884

9,000
～
10,0009,000～
12,00018,000～22,000Staffing

8,921

4,668
～
5,068

13,590～13,99011,850～12,47025,440～26,460Career

1,505-2,295～-2,225

-790
～
-720

-1,340～-590-2,130～-1,310

315

114
～
204

430
～
520

2,540
～
3,620

2,970
～
4,140

-1,437-1,382～-882-2,820～-2,320-1,860～-2,060-4,680～-4,380Asia Pacific(APAC)

-116

-343
～
-303

-460
～
-420

-1,200～-760-1,660～-1,180

Other

-455

-594
～
-564

-1,050～-1,020

-400
～
-230

-1,450～-1,250

382

-412
～
-282

-30
～
100

-460
～
-580

-490
～
-480

OperatingprofitProfessional
Outsourcing
Solution

Adjustment

34
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EBITDA Forecast by SBU for FY2020
FY2020Q1

FY2020Q2 (FCST)

1st half (FCST)

2 nd half (FCST)FY2020
Full year (FCST)

13,389

3,610
～
4,610

17,000～18,00017,000～20,00034,000～38,000Staffing

9,914

5,525
～
5,925

15,440～15,84013,700～14,32029,140～30,160Career2,316-1,606～-1,536

710
～
780

160
～
910

870
～
1,690

683

446
～
536

1,130
～
1,220

3,240
～
4,320

4,370
～
5,540

-1,204-1,185～-685-2,390～-1,890-1,430～-1,630-3,820～-3,520

1,390

1,119
～
1,159

2,510
～
2,550

1,770
～
2,210

4,280
～
4,760

Other

-380

-569
～
-539

-950
～
-920

-300
～
-130

-1,250～-1,050Adjustment

669

-249
～
-119

420
～
550

-10
～
-130

410
～
420

（million yen）
Consolidated
EBITDA

Professional
Outsourcing
Solution
Asia Pacific(APAC)FY2020

FY2020Note: Figures of EBITDA forecast for each SBU except the Consolidated EBITDA were corrected.
Copyright © PERSOL HOLDINGS

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35

Appendix

Copyright © PERSOL HOLDINGS

CO., LTD. All Rights Reserved.

Consolidated Quarterly Results
Compared to the same quarter of previous year, sales in Q1 of FY2020 were higher while operating
profit lowered.

FY2018(million yen)

Q2
Sales

Q3

FY2019Q4

Q1

226,330 232,971 240,586 235,218
YoY(%)

OperatingprofitOPM(%)EBITDAEBITDA Margin(%)

Net profit*

Q2

FY2020Q3

Q4

Q1

243,738 242,204 249,411

238,222

39.0%

36.8%

5.9%

4.1%

7.7%

4.0%

3.7%

1.3%

8,922

11,62012,036

10,057

10,058

8,287

10,681

9,115

3.9%

5.0%

5.0%

4.3%

4.1%

3.4%

4.3%

3.8%

12,795

15,533

16,242

14,416

14,532

12,41014,997

13,389

5.7%

6.7%

6.8%

6.1%

6.0%

5.1%

6.0%

5.6%

5,355

6,750

5,622

5,466

-10,643

4,522

8,266

4,670

*Net profit attributable to owners of parent company
37
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Staffing

Staffing SBU

Sales and profit increased for Q1 of FY 2020 because of the increased number of active workers mainly
in clerical and administrative sectors, raised billing rate and increased number of operating days.

FY2018(million yen)
Q2

Sales

Q3

FY2019Q4Q1Q2FY2020Q3

Q4

Q1114,706 120,592 122,101 122,189 126,130 130,986 130,871 130,678
YoY(%)

OperatingprofitOPM(％)EBITDAEBITDA Margin(％)

Working days

-

-

-

5.5%

10.0%

8.6%

7.2%

6.9%

3,686

6,114

5,343

5,823

5,333

6,806

5,905

8,921

3.2%

5.1%

4.4%

4.8%

4.2%

5.2%

4.5%

6.8%

4,576

6,996

6,334

6,765

6,298

7,759

6,885

9,914

4.0%

5.8%

5.2%

5.5%

5.0%

5.9%

5.3%

7.6%

59

62

57

59

59

61

58

61

Qualitative analysis on Q1•
Sales increased by 6.9％ YoY. In detail, operating days increased by 2 days +3.4％, the No. of active workers +2.3％,•

billing rate +5.6％, operating hours -4.5％ (leaves and decreased overtime work due to COVID-19, etc.).
At the end of June 2020, number of contract termination was more than number of contract renewal. Q2 of FY 2020•

started with the number of active workers slightly lower compared to Q2 of FY 2019.
In addition, from July 2020 onwards, due to an increase in the full-time allowance of dispatched staff for “equal pay for
equal work”, an increase of social insurance premiums per staff will lead to lower gross profit margin by about 0.5%.
38
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Career

Career SBU

Both sales and profit decreased for Q1 of FY 2020 due to effects of withdrawal from "an" business and
COVID-19.

FY2018(million yen)

FY2019FY2020

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

20,303

21,207

23,57723,54922,25918,114

19,526

16,827

-

-

-

13.6%

9.6%

-14.6%-17.2%-28.5%

3,337

3,210

4,784

4,703

4,393

1,271

2,900

1,505

16.4%

15.1%

20.3%

20.0%

19.7%

7.0%

14.9%

8.9%

EBITDA

4,023

3,920

5,521

5,414

5,146

2,047

3,697

2,316

EBITDA Margin(％)

19.8%

18.5%

23.4%

23.0%

23.1%

11.3%

18.9%

13.8%

Sales
YoY(%)

OperatingprofitOPM(％)

Qualitative analysis on Q1•
Placement business was affected by COVID-19 and the number of orders received in Q1 decreased by about 40%,
however, sales only decreased by about 13% due to the delay of timing resulting from sales conversion. Sales in Q2 are
expected to decrease to the same extent as a result of sluggish sales in this period.
•

In advertising business, the number of orders received in Q1 decreased by about 50% due to COVID-19. Sales in Q2 are
expected to decrease by about 30%.

•

On the other hand, after the lift of the emergency declaration, the number of orders received in June and July recovered
to 60% to 70% YoY in both placement business and advertising business.

•

There is a concern about companies’ pullout of hiring again due to spread of COVID-19.

39
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PRO

Professional Outsourcing SBU

Sales in Q1 of FY 2020 were increased because there was strong demand mainly in IT area despite acertain number of inactive workers remained.

FY2018(million yen)

Sales
YoY(%)

OperatingprofitOPM(％)EBITDAEBITDA Margin(％)

FY2019FY2020

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

23,81025,05626,19424,00826,126

26,85028,842

26,415

-

-

-

8.2%

9.7%

7.2%

10.1%

10.0%

1,778

2,108

2,440

271

1,449

1,519

3,070

315

7.5%

8.4%

9.3%

1.1%

5.5%

5.7%

10.6%

1.2%

2,180

2,551

2,901

677

1,866

1,982

3,216

683

9.2%

10.2%

11.1%

2.8%

7.1%

7.4%

11.2%

2.6%

Qualitative analysis on Q1•
Sales of previous ITO segment were healthy, increased by about 22%, for a reason of strong demand for IT•

engineers in general.
Sales of the companies belonging to previous engineering segment showed the same level compared to theprevious Q1. On the other hand, there are a certain number of inactive engineering staff as in the previous fiscal
year and it is estimated to take some time to improve, considering the decreased number of development projects
due to COVID-19.
40
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Solution

Solution SBU

Sales and operating profit are affected by –0.38 billion yen and –0.36 billion yen, respectively by
application of the principle method for revenue recognition of job search application business from thisfiscal year. As a result, sales were 0.9 billion yen and operating profit was –1.4 billion yen.

FY2018(million yen)
Q2

Sales
YoY(%)

Operatingprofit/loss
OPM(％)EBITDAEBITDA Margin(％)

Q3

FY2019Q4FY2020

Q1

Q2

Q3

Q4

Q1

372

487

478

1,351

1,837

1,856

1,967

952

-

-

-

213.8%

392.9%

281.2%

310.8%-29.5%

-0

-18

-114

-299

-175

-376

-768

-1,437

-0.1%

-3.9%

-23.9%-22.1%-9.6%-20.3%-39.0%-150.8%

-0

-18

-112

-248

-111

-302

-340

-1,204

-0.1%

-3.8%

-23.4%-18.4%-6.1%-16.3%-17.3%-126.4%

Qualitative analysis on Q1•
Demand declined as a result of the effects of COVID-19 including small- to medium-sized companies’ reduction of•labor costs and the request for self-restraint of restaurants operation.
Even under these circumstances, businesses showed robustness as follows:- In job search application business, the accumulated number of corporation accounts became 2.7 times YoY.
- In cloud POS business, the accumulated number of stores that introduced the service became 1.3 times YoY.

41
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APAC

Asia Pacific (APAC) SBU

Although sales decreased for Q1 of FY2020 due to weak Australian dollars, PERSOLKELLY business showed agrowth by about 23% on USD basis with strong results of staffing business. PROGRAMMED also recorded a sales
increase by about 7% on AUD basis.
(APAC is consolidated with a delay of 3 months. Q1 covers the period from January to March 2020, before the full impact of COVID-19 except China.)

FY2018(million yen)

FY2019FY2020

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

69,836

68,23970,75667,012

69,584

66,24070,40365,980

-

-

-

-2.5%

-0.4%

-2.9%

-0.5%

-1.5%

417

308

505

-156

-126

-575

451

-116

0.6%

0.5%

0.7%

-0.2%

-0.2%

-0.9%

0.6%

-0.2%

2,058

1,943

2,210

1,874

1,868

960

2,060

1,390

EBITDA Margin(％)

2.9%

2.8%

3.1%

2.8%

2.7%

1.4%

2.9%

2.1%

AU GDP growth (％）

3.4%

2.6%

2.2%

1.7%

1.4%

1.7%

2.2%

1.4％

JYP/USD

108.7

109.6

110.4

110.2

110.1

109.1

109.0

108.9

JYP/AUD

83.8

83.1

82.6

78.5

77.7

76.3

75.8

71.6

Sales
YoY(%)
Operatingprofit/loss
OPM(％)EBITDA

Qualitative analysis on Q1•••

In PERSOLKELLY business, the system trouble occurred in Australia was resolved but the number of active workers decreased andplacement business was affected by COVID-19 especially in China, resulting in a reduction in operating profit by about 30% on
USD basis.
In PROGRAMMED business, operating profit in staffing decreased by about 50% due to the decreased number of small - andmedium-sized client companies that were highly profitable. Maintenance business was healthy with about 15% growth because
facility management business was robust.
Most recently, business in various countries was affected by COVID-19, especially in placement, blue collar workers dispatching42
and painting service.
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Others
Sales increased by 36.5％ as a result of the acquisition of training business made in Q2 of FY2019.
However, operating loss expanded to 455 million yen because demand for training business declined
due to COVID-19.

FY2018(million yen)

FY2019FY2020

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

1,199

1,600

1,531

1,731

2,585

2,989

2,803

2,364

-

-

-

22.0%

115.5%

86.8%

83.1%

36.5%

-206

2

-273

-3

-202

54

-275

-455

-17.2%

0.2%-17.8%

-0.2%

-7.8%

1.8%

-9.8%

-19.3%EBITDA

-186

23

-251

0

-131

148

-197

-380

EBITDA Margin(％)-15.6%

1.5%-16.5%

0.0%

-5.1%

5.0%

-7.0%

-16.1%Sales
YoY(%)

Operatingprofit/loss
OPM(％)

Qualitative analysis on Q1•
Sales increased year-on-year due to the M&A effect of acquiring training business in July 2019.
•

On the other hand, sales was lower than the forecast due to the COVID-19 effect and as a result, operating loss
expanded to 455 million yen.

43
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Adjustments (Corporate and reconciliation)
Sales for Q1 of FY2020 remained at the same level of previous three-month period (Q4 of FY2019)
while operating profit turned to profitability.

FY2018(million yen)

Sales
YoY(%)

Operatingprofit/loss
OPM(％)EBITDAEBITDA Margin(％)

FY2019FY2020

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

-3,898-4,212-4,054-4,624-4,785-4,833-5,003-4,995

-

-

-

-

-

-

-

-

-91

-106

-649

-281

-612

-413

-602

382

-

-

-

-

-

-

-

-

142

117

-361

-66

-404

-184

-325

669

-

-

-

-

-

-

-

-

Qualitative analysis on Q1• Operating profit turned profitable to 382 million yen as a result that the investments in relation to Mid-termManagement Plan 2023 were put off to Q2 or later due to the COVID-19 effect.

44
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Reference（Disclosed documents in
May 15, 2020）

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CO., LTD. All Rights Reserved.

Changes in Management Structure
In April 2020, two Vice-President structure introduced; Mr. Wada is in charge of each business and Mr. Takahashi is in chargeof each function. In addition, three committees were established as advisory board to HMC* to strengthen governance.

Investment
Committee

Masamichi Mizuta
Representative Director,
President and CEO

Risk Management
Committee
New

Headquartersof auditors

Human Resources
Committee
New

HMC*

Takao Wada
Deputy President,
Business Control Officer

Hirotoshi Takahashi
Deputy President,
Function Control Officer

Staffing
SBU
PRO SBU

New

CareerSBU

SOL SBU*HMC : Headquarters Management Committee

CLO

CFO
APAC
SBU

CHRO
46
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Shift to SBU (Strategic Business Unit) Structure
Responsibility of decision-making in relation to business execution is properly transferred to SBU to expedite the executionof businesses. Businesses in professional fields are integrated to reinforce, and the overseas business management structure
is integrated as well to create Group synergy.
Business scale/Description ofCore Company

Until March 2020

From April 2020

Temporary
Staffing/BPO

StaffingSBU

PERSOL TEMPSTAFF
CO., LTD.

IT/Mechanical sector

Recruiting

ITO

Engineering
Other

PROGRAMMEDPERSOLKELLY

CareerSBUPERSOL CAREER CO.,LTD.

Professional
Outsourcing（PRO）SBUPERSOL Professional
Outsourcing Co., Ltd.

Business

・Sales scale: JPY 510.1 billion
・Temporary Staffing
・BPO (Business Process Outsourcing)・Sales scale: JPY 83.4 billion
・Placement
・Job-Change media
・Sales scale: JPY 105.8 billion
・Engineering (design/experiment)
・Outsourcing (IT maintenance upstream todownstream)・Temporary staffing in IT and mechanicalsector・Sales scale: JPY 7.0 billion
・Change job app “MIIDAS”
・Cloud POS “POS+”・Incubation business

Solution(SOL) SBUPERSOL INNOVATION
CO., LTD.

Asia Pacific(APAC)
SBU

・Sales size JPY 273.2 billion
PERSOL Asia Pacific Pte.・Temporary staffing/Placement in APAC
regionLtd.
・Facility maintenance such as facility
management and painting, etc. (Australia)
47

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Staffing SBU
Staffing SBU will further increase the market share and make a stable contribution to profit as the PERSOL Group's core SBU.
Business Results (restated)

Competitive Advantages andStrategic Direction

Composition of Sales
•

Sales

OP

(Billion yen)

300.0

510.1

473.2

250.0

200.0

23.8

21.4

150.0

100.0

50.0

0.0

0

FY2018FY2019Clerical8%5%Marketing

17%
10%

PPG

60%

R&D
BPO

•

•

No.1 market share* in clericaltemporary workers
Established business structure and solid
capability
Implementing optimum strategy in eachfield by leveraging business scale◆ Response to “equal pay for equal work”• Realize improvement of working staff treatment and compensation• Almost all the clients agreed to accept commuting expense charges etc. andadditional costs• Started proposing use of external human resource scheme by combining temporary
staff business and outsourcing business◆ Contracting business• It has been growing by double-digits for 6 consecutive years and has become thescale of 15% of total scales of the SBU• Higher-quality and high-value-added services are highly evaluated from clientcompanies by accumulation of knowledge• Has knowledge in government BPO and strength in large short-term projects*A survey by PERSOL
Note: PPERSOL TECHNOLOGY STAFF that engaged in the engineer temporary staffing business were transferred to Professional Outsourcing SBU.
Copyright © PERSOL HOLDINGS

48
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Career SBU
The second highest contribution to PERSOL group profit. This SBU has terminated “an” business and finished selection andconcentration of the business. It will focus on placement business for permanent workers
Competitive Advantages andBusiness Results (restated)
Composition of Sales
Strategic Direction
8%(Billion yen)

Sales

OP

10%
19%

85.8

•
•
Advertising business •Placement business

63%

Part-time-job*
Others•Wide customer contact point
Branding power
Second position* in placement businessmarketHigh profitability

83.4*: Terminated part-time-job advertising business on November 25, 2019.

15.5
13.2

 Maintain structural in preparation for after COVID-19• Maintain employment to satisfy needs in employment after COVID-19
based on shortage of labor force• Promote integrating matching accuracy and non-face-to-face support
by continuing investment on technology• Continue training staffs transferred from “an” business to be fullfledged
 Cost reduction at the moment• Suspending mid-career recruitment and reducing marketing cost

FY2018FY2019* A survey by PERSOL

49
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Professional Outsourcing SBU
This SBU aims to be the 3rd largest contribution to PERSOL group as professional engineer group which supports
innovation of technology by dispatching temporary staffs and BPO for R&Ds

Business Results (restated)

Composition of Sales
FY2019(Billion yen)
110

Sales

OP

ITO

26%

108

41%

System development capabilities
Strong customer base of 1,700 companies
Employing 8,500 engineers who cansatisfy client needs from IT to
manufacturing areas

97.2
 Professional sector for the 3rd business pillar

102

•
100

6.9

•
•

6.3

96

Integrated ITO and Engineering segments, which are the professional areas, to be
the 3rd largest contribution to the group
Business entity in size of about JPY 110 billion sales and about 10,000 headcountPlays the role to contribute to stable profits by differentiating from competitors
through various designs and developments with interacting IT and mechanical &electrical engineers Developing synergies in Group-wide measures

94

•
92

90

•
•
•

33%

105.8

98

Engineering

Persol Technology staff

106
104

Competitive Advantages andStrategic Direction

FY2018FY20190.0••

Employing a wide range of engineers who can handle upstream to downstream
operations including manufacturing and system development, operation andadministration etc. to aim to provide diversified solutions for development themes
such as IoT.
Strengthen cross selling among three business segments and deepen transactions
with important customers
Expand existing business (including IoT business)
50
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Solution SBU
Aggressively entering into new areas by utilizing digital technology and developing new solutions
Competitive Advantages andStrategic Direction
Business Results (restated)
Composition of Sales
FY20191% 22%(Billion yen)

sales

OP

38%

39%

MiidasPOS+
Shareful••

Investment in new areas
Developmenting new models of
based business

PINO

160

Revenue recognition for Miidas has changed since FY2020

 Investment on prospective business and business development to be a new businesspillar of PERSOL Group

7.0
110

60

1.7
10

-0.0
(100)
(40)

FY2018

Obtain new markets through digitalization of based businesses
Introduction of new workforce that is collaborations of human and technology(Digital Workforce)•
Challenge in new areas to realize the corporate slogan “Work, and Smile”
 Details of business
Main business
•
•

-1.6

FY2019

•
•

-40

•

MIIDAS: Planning, development and operation of “MIIDAS” which is anassessment recruiting platform
Shareful: Personnel outsourcing business including offer of on-demand matching
platform, placement service and payroll calculation
POS+: offering mobile POS service

New business••

Create new businesses under the incubation program "Drit”
Introduction to new fields through M&A and business alliances
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Asia Pacific (APAC) SBU
APAC SBU pursues the synergy effect, utilizing the management resources of PROGRAMMED and PERSOLKELLY, and focuses
on establishing a stable profit base.
Business Results (restated)
Sales

Composition of Sales(Billion yen)OP

PROGRAMMED
2%

120

277.5

273.2
50%

100
Staffing

80

60

•

•

•
•
-0.4

100

FY2018FY2019

•

0

•

other

Combination of business for expansion in APAC
Cost reduction by integrating back-office operation of two companies
Utilize the management resource and know-how of PROGRAMMED for APAC SBUPROGRAMMED: Enhancement of white-collar worker staffing operations

20

1.3

Maintenance

PROGRAMMED• Stable Maintenance business
PERSOLKELLY• Highest market share* of blue-collar worker
7%
staffing
PERSOLKELLY•
The largest number of regional
93%
coverage in APAC region as a foreigncompany
Recruit•Highest market share* of staffing business
Staffing
人材紹介
派遣
ment
in Singapore and Malaysia•
Highest market share* of recruitment
business for Japanese companies in China

Enforcement of reorganization
•
•
•

40

48%

Competitive Advantages andStrategic Direction

Integrate PERSOLKELLY Australia with PROGRAMMED to enhance white-collar
staffing and recruitment operations
Improve profitability by increasing the number of SME customers in blue -collar
staffing operations
Accelerate cost reduction by integrating back-office operation across APACPERSOLKELLY: Growth investment at each stage••

Mature markets：Improve productivity by increased use of technologies
Growing markets：Increase headcounts by expanding market share aggressively* A survey by PERSOL

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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 August 12, 2020
which are not meant in any way by the Company to be assurances that plans
will be realized. Actual results etc. may vary greatly due to various causes.

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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CO., LTD. All Rights Reserved.