Fiscal Year Ended March 2018 Results Briefing Session: Q&A Summary
May 17, 2018 (Thursday)PERSOL HOLDINGS CO., LTD.
Q: You say that in FY Mar 2020 you are aiming for operating profit in the Temporary
Staffing/BPO Segment of 5.3%. How certain are you of achieving this?
A: In FY March 2019 we plan to absorb 8 subsidiaries in our temp business and 3
subsidiaries in the BPO business. This absorption will lead to a change-over in systems
etc. and the cost of this absorption is anticipated to be JPY 2 billion. Without these costs,
the Temporary Staffing/BPO Segment operating profit ratio in FY March 2019 would be5.0%. As such, we believe an operating profit ratio in FY March 2020 of 5.3% isachievable.
Q: How much are you investing into brands, and any expansion from here on?
A: Together with changes to the company name in FY March 2018, JPY 2.5 billion wasused for PERSOL brand advertising investments. According to results of research
performed by survey companies into the degree of recognition of "PERSOL", we believethat awareness of the "PERSOL" entity is spreading to a certain degree. On the other
hand, the level of awareness amongst individual customers is increasing according toplan however, we cannot yet say awareness levels are adequate. So we aim to further
enhance awareness levels. For that reason, "PERSOL" brand advertising investments will
also continue in FY March 2019. The anticipated amount of investment is JPY 3 billion.
The approach to advertising will be an ongoing endeavor to evolve the service brands("TEMPSTAFF", "an", "DODA" etc.) as well as the "PERSOL" brand.
Q: Group synergies; in concrete terms what sort of synergies are you trying to generate?
A: Synergies that enable PERSOL to handle overall hiring needs of client corporations on
their behalf etc. Up until now some individual PERSOL Group companies could nothandle each and every need of customers. To resolve this challenge, the aim is toleverage the integrated strengths of the Group. What will support this initiative is a change
in the mind-set of PERSOL employees. By incorporating and setting in place structuresthat accelerate cooperative efforts within the Group, as one single PERSOL Group, we1will be able to cooperate and coordinate horizontally beyond the boundaries of any given
individual Group company or Segment. We believe that in future, additional expansion ofGroup synergies is possible.
Q: What were the reasons for a slowdown of the growth rate in the Temporary Staffing/BPO
Segment during Q4 of FY March 2018?
A: Compared to the same period last year, there were 2 less deployment days for temp
employees etc. Accordingly, there was a slight decline in the sales growth rate.
Q: In concrete terms, what is your regional strategy for overseas Post Merger Integration(PMI). Also, what measures are you taking to improve margins?
A: Due to M&A activity in the overseas business, we have for the moment, completed ouractive quantitative expansion. PERSOL are now at the stage where we are focusing on
PMI. We are currently proceeding with a sequential change-over of core systems in thePERSOLKELLY business, and incorporating productivity enhancements into work
processes. With the PROGRAMMED Ltd. business, we are first and foremost deepening
our understanding of the PROGRAMMED Ltd. business. We are also making
preparations to generate future synergies.
Q: What progress is being made to handle revisions to Japanese laws relating to thetransition to indefinite-term employment?
A: The transition to indefinite-term employment stemming from revisions to Japan's Labor
Contracts Act means that if individuals with the right to become workers on indefinite-term
employment so desire, they can become employees of PERSOL on indefinite-term
employments. As at April 20, 2018, of the approximately 10,000 temporary employeeswith the right to become workers on indefinite-term employment, 435 headcounts haveactually transitioned to indefinite-term employment. (PERSOL TEMPSTAFF figures only.)In future it is expected that temp workers in possession of the right to become workers on
indefinite-term employment will want to sequentially convert over to indefinite-term
employments. However, PERSOL is for its part, actively hiring those workers who sodesire on indefinite-term employments.
Q: What impact will Robotic Process Automation (RPA) and technologies have on2PERSOL?
A: The PERSOL Group also provides RPA implementation support services, and BPO
services that utilize RPA etc. PERSOL is actively incorporating the use of technologies
into its business. In future as well, the use of technologies to resolve structural labor
shortages will grow more and more. As such, PERSOL sees this as an opportunity to be
grasped, and will proceed to develop the business accordingly.

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