PERSOL HOLDINGS (TSE 2181)
FY2019 Q2

For Immediate Release
November 12, 2019

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the Six Months Ended September 30, 2019 andRevised Consolidated Financial Forecasts for Fiscal 2019
PERSOL HOLDINGS CO., LTD (the Company) today announced its consolidated business results for thesix months ended September 30, 2019 and revised consolidated financial forecasts for Fiscal 2019,
ending March 31, 2020.
Consolidated Operating Highlights.
1) Business Results(In millions of yen, unless otherwise stated)

Sales
Operatingprofit
EBITDA*
Ordinary profit
Net profit**
Net profit per share (yen)Adjusted EPS***Six months ended September 30,
2018
2019
452,260
478,956
20,453
20,11628,19628,94820,66020,42911,987-5,17751.39-22.2071.31
68.30% change
5.9%
-1.6%
2.7%
-1.1%
-4.2%

Note:
*EBITDA=operating profit + depreciation + amortization of goodwill**Net profit attributable to owners of parent***Adjusted EPS=adjusted profit / (average number of shares during the period - number of treasury stock during the period)*** Adjusted profit=profit attributable to owners of the parent ± adjustment items (excluding non-controlling interests) ± tax
reconciliation related to certain adjustment items*** Adjustment items=amortization of intangible assets by acquisitions ± extraordinary income/losses

2) Balance Sheet Data
(In million yen, unless otherwise stated)
As of March 31, 2019
Total assets
Net assets
Equity capital
Equity ratio

370,839
170,925
155,593
42.0%

As of September 30,
2019344,559
158,261
142,582
41.4%

Disclaimer
The statements concerning the Company's future business performances in this material such as
earnings forecasts are based on information currently available and certain assumptions deemed tobe reasonable by the Company, and do not mean that we promise to achieve these figures.
Actual results may differ materially from the statements due to a variety of factors.

PERSOL HOLDINGS (TSE 2181)
FY2019 Q2

Management Discussion and Analysis(1) Results of Operations
PERSOL HOLDINGS (hereinafter, the Company) provides full-range of HR services; staffing, recruiting,business process outsourcing, and online media for jobseekers, in Japan and Asia Pacific regions.
For six months ended September 31, 2019, Japanese employment situation was 1.57 of the average
ratio of job offers to job seekers (seasonally adjusted) and 2.4% unemployment rate in September
2019 while the signs of weakness in business cycle has been partially seen. At such almost fullemployment condition, HR service providers responded to strong demand due to structural humanresource shortages, and HR and its related market tended to be sound overall.
In the Asia-Pacific region, economic growth of China and its neighboring countries slowed down by
US-China trade friction, in addition, Australian economy remained at low growth.
In this environment, consolidated net sales for six months ended September 31, 2019, was JPY
478,956 million (increased by 5.9% YoY), an operating profit of JPY 20,116 million (decreased by 1.6%
YoY), and an ordinary profit of JPY 20,429 million (decreased by 1.1% YoY).
Sales increased mainly due to continued strong demand from client companies in temporary
staffing/BPO segment, placement business in the recruiting segment; and the successful
implementation of a campaign before the discontinuation of part-time job recruitment information
service "an".
Operating profit increased YoY for both the temporary staffing/BPO and recruiting segments in Japan,
but it shrank for the overseas businesses. The PROGRAMMED segment (which provides staffing andmaintenance services in Australia) experienced profitability deterioration especially in the staffing
business because of the slowdown of the Australian economy and the weakening of the Australian
dollar. In addition, the PERSOLKELLY segment, which provides human resource services, especiallystaffing, in the Asia-Pacific region, was not able to overcome the trouble with a newly introduced
operating system that surfaced in the first quarter of the current period and had persisted into thecurrent quarter. Consequently, both the overseas businesses suffered profit declines. Thus, theoperating profit for the current for six months ended September 31, 2019 was a YoY decrease, so was
the ordinary profit.
Net profits/losses attributable to parent company shareholders were a loss of JPY 5,177 million ascompared with a profit of JPY 11,987 million a year earlier due to a goodwill impairment loss of JPY
12,519 million related to the PROGRAMMED segment's staffing business and a business restructuring
related extraordinary loss of JPY 2,868 million recognized upon the discontinuation of the "an"business by the recruiting segment.
The Company’s BOD meeting today resolved to pay an interim divined of 15 yen per share, anincrease by five yen compared to corresponding period last fiscal year, to shareholders as of
September 30, 2019, Japan time.
Results by Segments (before inter-segment elimination)
1. Temporary Staffing/BPO Segment
Segment sales for 1st half of FY2019 were JPY 266,887 million (increased by 7.4% YoY), and its operating
profit was JPY 12,005 million (increased by 8.1% YoY).
Although staff working days was three days shorter than the same period of the previous year, sales
increased because demand for temporary staffing remained sound from the previous consolidated
fiscal year, supported mainly by structural labor shortages; and because Avanti Staff, which was
acquired in fourth quarter of previous fiscal year, was additionally consolidated. Operating profit alsorose due to the conversion of more temporary staffing contracts from fixed term to indefinite term andthe resulting unit price gains.

PERSOL HOLDINGS (TSE 2181)
FY2019 Q2

2．Recruiting Segment
Segment sales for 1st half of FY2019 were JPY 45,808 million (increased by 11.6% YoY), and its
operating profit was JPY 9,096 million (increased by 20.3% YoY).
The placement business had a lower growth rate than the previous fiscal year, but realized a revenue
increase due to the successful implementation of a campaign before the discontinuation of part-time
job recruitment information service "an". Profitwise, we achieved an increase owing to stable profits
from the placement business and contributions from the "an" business.
3．PROGRAMMED Segment
Segment sales for 1st half of FY2019 were JPY 94,605 million (decreased by 7.7% YoY), and it posted an
operating loss of JPY 142 million (as compared with an operating profit of JPY 218 million for the same
period of the previous year).
The maintenance business posted a revenue increase, helped by long-term continuing large-scale
facility maintenance projects; however, the revenue dropped for the staffing business because of theslowdown of the Australian economy, and the overall sales were lower partly because of theweakening of the Australian dollar. An operating loss was recorded mainly because the lower revenue
from the staffing business led to a lower profit performance.
4．PERSOLKELLY Segment
Segment sales for the period was JPY 41,991 million (increased by 16.2% YoY), and it posted an
operating loss of JPY 141 million (as compared with an operating profit of JPY 357 million for the same
period of the previous year).
Despite the slowdown of the Chinese economy, sales rose as a result of the growth of humanresource services, especially staffing, in regions other than Australia. An operating loss was recorded
mainly because of decreased sales caused by the system problem in Australian operations.
5．ITO Segment
Segment's sales for the period were JPY 19,278 million (increased by 25.4% YoY), and its operating
profit was JPY 121 million (decreased by 73.3% YoY).
The sales increase was due to the securing of more engineers to meet brisk demand among clientcompanies. The operating profit dropped because of increased costs associated with the continued
efforts to reduce engineer separations and give better offers to new hires.

5.

Engineering Segment

Segment's financial results for the period were affected by trade friction and resulting declines inorders from major customers: its sales were JPY 13,809 million (increased by 1.2% YoY) and its
operating profit was JPY 669 million (decreased by 23.8% YoY).

PERSOL HOLDINGS (TSE 2181)
FY2019 Q2(2) Consolidated Financial Position
Consolidated Balance Sheet
Total assets decreased by JPY 26,279 million from the end of the previous consolidated fiscal year.
Current assets decreased by JPY 15,320 million, and fixed assets decreased by JPY 10,959 million. The
main reason for the decrease in current assets was a decrease in cash and deposits of JPY 11,039 million.
The main reason for the decrease in fixed assets was a goodwill reduction of JPY 15,828 million while
we had a JPY 4,435 million increase in right-of-use assets (net value).
Liabilities decreased by JPY 13,616 million from the end of the previous consolidated fiscal year. Current
liabilities decreased by JPY 6,749 million, and fixed liabilities decreased by JPY 6,866 million. The main
reasons for the decrease in current liabilities were a JPY 3,566 million decrease in accrued consumption
taxes, a JPY 2,759 million decrease in short-term loans payable and a JPY 2,722 million decrease inaccounts payable while we had a JPY 10,020 million increase in long-term loans payable within one year.
The main reason for the decrease in fixed liabilities was a JPY 10,020 million decrease in long-term loans
payable while we had a JPY 3,018 million increase in lease liabilities.
Net assets decreased by JPY 12,663 million from the end of the previous consolidated fiscal year. Thiswas due mainly to the payment of JPY 3,510 million of surplus dividends and the recognition of JPY
5,177 million as a quarterly net loss attributable to parent company shareholders, which resulted in a
JPY 8,687 million decrease in retained earnings, a JPY 2,491 million decrease in treasury stocks, and a
JPY 2,096 million decrease in foreign currency translation adjustments.
FY2019 1H
Return on assets (ROA) for the period
Return on equity (ROE) for the period
Ratio of operating profit to sales
Ratio of ordinary profit to sales
Current ratio
Fixed assets ratio
Equity ratio
Total assets (JPY million)
Equity capital (JPY million)
Cash and cash equivalents etc. at end of period (JPY million)

6.8%
16.2%
4.8%
4.8%
144.8%
103.5%
42.0%
370,839
155,593
68,969FY2018
-1.3%
-3.5%
4.2%
4.3%
140.8%
105.2%
41.4%
344,559
142,582
57,942

Consolidated Cash Flows
Cash and cash equivalents (hereinafter called "Cash") at the end of the Six months ended September
31, 2019 were JPY 57,942 million, down JPY 16,129 million from the end of the same period of previous
fiscal year.
The following is the cash flow situation and its factors during 1st half of this fiscal year.
Cash flow from operating activities
Cash provided from operating activities was JPY 7,631 million (JPY 20,025 million for the same periodof the previous year). This is due mainly due to a JPY 8,622 million decrease in trade payables and thepayment of JPY 10,117 million of corporate taxes, on the other hand, JPY 3,180 million of profit for theperiod before income tax, and JPY 4,308 million of goodwill amortization.
Cash flow from investing activities
Cash used as a result of investing activities was JPY 9,886 million (JPY 6,203 million used in the same
period of the previous year). This was mainly due to an expenditure of JPY 3,864 million on theacquisition of intangible fixed assets, an expenditure of JPY 2,678 million on the acquisition of tangible
fixed assets, and an expenditure of JPY 2,420 million on the acquisition of subsidiary company shares
involving a change in the scope of consolidation.
Cash flow from financing activities

PERSOL HOLDINGS (TSE 2181)
FY2019 Q2

Cash used as a result of financing activities was JPY 8,896 million (as compared with JPY 29,470 million
used in the same period of the previous year). This was due mainly to a JPY 2,666 million decrease in
short-term loans payable, the payment of JPY 3,509 million of dividends, and an expenditure of JPY
2,507 million on the acquisition of treasury stocks.
(c) Issues to be addressed in our business and financial operations
There were no new business and financial challenges requiring addressing during Six months ended
September 2019.
(3) Consolidated Financial Forecasts for Fiscal 2019
Fiscal 2019 financial forecasts are revised mainly in the light of the extraordinary losses recorded forthe first half of FY2019.
(In millions of yen, unless otherwise stated)
Revised
Forecasts(A)

Net sales
Operating income
Ordinary income
Net profit*

980,000
40,70040,8005,500

Previous
Forecasts(B)

990,000
43,00043,00021,700

AmountChange(A-B)-1,000-2,300-2,200-16,200

Percent
Change(A-B/B)

-0.1%
-5.3%
-5.1%
-74.7%

Results for
Fiscal 2018

925,818
44,111
43,982
24,361*Net profit attributable to owners of parent
The Company plans to pay a year-end dividend of 15 yen per share, the same amount of previous fiscal
year to shareholders as of March 31, 2020, Japan time.

PERSOL HOLDINGS (TSE 2181)
FY2019 Q2

Quarterly Consolidated Financial Statements
1. Consolidated Balance Sheet
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Tangible fixed assets
Buildings and structures, net
Tools, furniture and fixtures, net
Right-of-use assets, net
Land
Other, net
Tangible fixed assets total
Intangible assets
Trademark rights
Goodwill
Other
Intangible assets total
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total Assets

As of March 31, 2019

As of September 30, 201969,029122,908
7,342
11,251-686
209,845

57,989
119,870
8,087
9,291
-714
194,524

3,397
1,303
－
799
2,156
7,657

3,637
1,396
4,435
997
2,203
12,67010,06991,763
20,539122,372
11,894
5,770
13,317-1730,964160,994
370,839

9,718
75,934
21,070106,723
12,047
5,880
13,838-1,12430,641150,035
344,559PERSOL HOLDINGS (TSE 2181)
FY2019 Q2(Consolidated Balance Sheet)

Liabilities and equity
Liabilities
Accounts payable – trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable
Accrued income taxes
Accrued consumption taxes
Provision for bonuses
Reserve for bonuses for Directors
Provisions - other
Other
Total Current Liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease debts
Deferred tax liabilities
Liabilities related to retirement benefits
Allowance for share benefits
Allowance for Directors' share benefits
Provisions - other
Other
Total Non-current liabilities
Total Liabilities
EquityShareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury shares
Total Shareholders' Equity
Accumulated other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and equity

As of March 31, 2019

As of September 30, 2019

741
5,044
10,00168,307
11,384
14,15911,73014745
22,789144,919702
2,284
20,021
65,584
8,923
10,593
12,17629
870
16,983
138,169

20,00025,748
106
5,042
905
261
291
217
2,421
54,995
199,91420,00015,728
3,125
4,975
901
323
359
95
2,619
48,128186,298

17,47920,396125,677-4,387
159,165

17,47920,396116,989-6,878147,986

2,346-5,919-3,572
15,331
170,925
370,8392,611-8,016-5,404
15,678158,261
344,559PERSOL HOLDINGS (TSE 2181)
FY2019 Q2

2. Consolidated income statements (Six months ended September 2019)
Six months ended September 30,
2018
2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses (SGA)
Operating Profit
Non-operating income
Interest income
Dividends income
Subsidy income
Share of profit of entities accounted for using equity method
Gain from foreign exchange
Other
Total non-operating profit
Non-operating loss
Interest expenses
Losses on foreign exchange
Bond issuance expenses
Other
Total non-operating expenses
Ordinary Profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities
Gain on transfer of business
Gain on revision of retirement benefit plan
Extraordinary income total
Extraordinary losses
Loss on fixed asset disposal
Impairment loss
Allowance of doubtful accounts
Business reorganization losses
Loss on sales of subsidiaries and affiliates’ shares
Loss on valuation of subsidiaries and affiliates’ shares
Loss on valuation of investment securities
Total extraordinary losses
Net quarterly profit before taxes etc.
Corporate tax, resident tax, and business tax
Corporate tax etc.-deferred
Total corporate taxes etc.
Profit for the period
Quarterly net profit attributable to non-controlling interests
Quarterly net profit(loss) attributable to owners of parent

452,260
353,088
99,17278,71820,453478,956
371,052
107,904
87,787
20,116

19
113
121
195
383
43
874

11
124
268
215
－
54
674

464
－
102
101
667
20,660

268
77
－
15
361
20,429

23
16
38
56
135

59
15
33
－
107

18
－
－
－
3
－
14
37
20,758
7,685
72
7,758
13,000
1,012
11,9873
12,759
1,114
2,868
－
610
－
17,356
3,180
7,807
-67
7,739
-4,559618-5,177PERSOL HOLDINGS (TSE 2181)
FY2019 Q2(Consolidated income statements)

Quarterly net profit (loss)
Other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
Adjustments for retirement benefits
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income(Break down)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

Six months ended September 30,
2018
2019
13,000-4,559-435-6,305-0265-2,184
-

-229

-48

-6,9706,029-1,967-6,5275,330-7,009698

481

PERSOL HOLDINGS (TSE 2181)
FY2019 Q2

2. Consolidated Cashflow Statements (Six months ended September 2019)
Six months ended September 31,
2018
2019
Cash flow from operating activities
Net quarterly profit before taxes etc.
Depreciation
Impairment loss
Amortization of goodwill
Increase(decrease) of net liability for retirement benefits
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in allowance for share benefits
Increase (decrease) in allowance for directors' share benefits
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other provisions
Interest and dividend income
Interest expenses
Equity Gains (Losses) of affiliated companies
Subsidy income
Bond issuance expenses
Loss(gain) on disposal of non-current assets
Loss(gain) on sales of shares of subsidiaries and associates
Loss(gain) on sales of investment securities
Loss on valuation of subsidiaries and affiliates’ shares
Loss(gain) on valuation of investment securities
Loss (gain) on transfer of businessBusiness reorganization losses
Decrease (increase) in trade receivables
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Increase (decrease) in Long-term accounts payable
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from subsidy income
Corporate tax etc. paid
Income taxes refund
Cash flow from operating activities

20,758
3,457
－
4,285
-796
491
7
80
74
41
-83
-132
464
-195
-121
102
-4
3
-16
－
14
-38
－
5,375
-3,962-1,559653-1,515-4,712
22,672146-444
121-7,012
4,543
20,025

3,180
4,523
12,759
4,308
-1
301
9
61
68
1,158
441
-136
268
-215
-268
－
-55
－
-15
610
－
-33
2,868
1,836
-11,776-3,52617-1,542-133
14,710223-277
268-10,117
2,823
7,631

PERSOL HOLDINGS (TSE 2181)
FY2019 Q2(Consolidated Cashflow Statements)
Six months ended September 30,
2018

2019

Cash flow from investing activities

Payment into time deposits
Proceeds from withdrawal of time deposits
Payments for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchase of intangible assets
Proceeds from sales of shares of subsidiaries andassociates
Payments for purchase of investment securities
Proceeds from sales of investment securities
Payments for purchase of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Expenditures from sales of share of subsidiaries resulting
in change in scope of consolidation
Proceeds from transfer of business
Payments of loans receivableCollection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other
Cash flow from investing activities
Cash flow from financing activities
Net increase(decrease) in short-term loans payable
Proceeds of long-term loans payable
Repayments of long-term loans payable
Proceeds from issuing corporate bonds
Repayments of corporate bonds
Payments for purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other
Cash flow from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in short-term loans payable
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of quarter-92-1,32151-3,1320
12-2,678148-3,864

－

240

-284
71

-583
47

-200

-2420

-

54

-672

-

127
-14
1
-1,082347-85-6,20338－
2-1,035267-115-9,886-64,471
20,000-2,32019,897-2
0-2,338-142-92-29,470-2,666－-0－－-2,507-3,509-198-13-8,896154

125-15,493
89,566
74,072-11,027
68,96957,942