Briefing on Consolidated Financial
Results for the Second Quarter

Ended September 30, 2017
PERSOL HOLDINGS CO., LTD.
November 13, 2017

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

2018/3 2Q : Summary of Consolidated Business Results
While high sales growth due to the solid growth of existing businesses and M&A effect,
margin declined due to the cost increase for investment in each segments and brand awareness(Unit: million yen)
2017/3 Results

2018/3 Results
YoY(%)

Full Year

Progressrate（％）

100.0+17.3%

677,300

48.077,42423.8+13.9%

--

7.8

21,0486.5-2.4%

47,10844.7

16,6606.0

16,0174.9-3.9%

36,000

44.5

9,865

3.6

9,223

2.8

-6.5%

22,20041.5

1st HalfRatio(%)

Sales

276,790

100.0

324,780

Gross Profit

68,003

24.6

EBITDA*

21,570OP income
Profit attributableto owners of parent

2018/3 Forecasts*Rounded down (same as following pages)

1st Half

Ratio(%)*EBITDA = OP income + Depreciation + Amortization of Goodwill(same as following pages)
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

1

2018/3 2Q : Sales Analysis
Contribution from increase in the revenues from the existing businesses,
in addition to the M&A(Unit: billion yen)

-0.6
+22.9+3.3+1.4+0.6+0.5-1.2+20.9
324.7

276.7

2017/3
1st Half Results

Increase in sales due to organic growth*+25.6

Temporary
Staffing/BPO＊

Recruiting

Overseas

ITO*

Engineering

M&A*
+22.9

Others

M&A

Adjustments

2018/3
1st Half Results*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)
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

2

2018/3 2Q : Sales by Segment
Continuous steady growth in each segment

2017/3 Results
1st HalfTemporary
Staffing/BPO(Unit: million yen)

2018/3 Results
1st Half

2018/3 Forecasts

YoY(%)

Full Year

Progress rate（％）

214,503

235,489+9.8%

485,400

48.5

Recruiting

31,99235,335+10.4%

78,10045.2

Overseas

7,406

31,792+329.2%

63,10050.4

ITO12,851

13,532+5.3%

29,40046.0

Engineering

12,545

13,062+4.1%

28,10046.5

Others

3,274

1,976

-39.6%

4,300

46.0

Adjustment-5,783△6,406--11,100-

276,790324,780+17.3%

677,300

48.0

TOTAL

*Internal transactions have not been eliminated from the figures
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3

2018/3 2Q : EBITDA Analysis
Margin declined due to the cost increase for investment in each segments as well as
expansion of group brand awareness(Unit: billion yen)

+0.8

-0.3

+0.３

-0.1

-0.2

-0.2

+0.0
-0.6

21.5

21.0
Increase in EBITDA due to organic growth*+0.8

2017/3
1st Half Results

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

Recruiting

Overseas

ITOEngineering

M&A*+0.0Others

M&AAdjustments

2018/3
1st Half Results: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)
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

4

2018/3 2Q : EBITDA by Segment
Margin declined due to the cost increase for investment in each segments as well as
expansion of group brand awareness(Unit: million yen)
2017/3 Results
1st Half
Temporary
Staffing/BPO

2018/3 Results
1st Half

2018/3 Forecasts

YoY(%)

Full Year

Progress rate（％）

11,437

12,255+7.1%

26,278

46.6

Recruiting

6,753

6,391

-5.4%

13,10048.8

Overseas

29446+1424.5%

977

45.7

ITO

1,013

816

-19.4%

2,991

27.3

Engineering

1,284

1,010

-21.4%

2,869

35.2

Others189-66-135.0%

-120

55.3

Adjustment

862

194

-

1,011-

21,57021,048-2.4%

47,108

44.7TOTAL*Internal transactions have not been eliminated from the figures
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

5

2018/3 2Q : OP income Analysis
Margin declined due to the cost increase for investment in each segments as well as
expansion of group brand awareness(Unit: billion yen)

-0.0

+0.3

-0.2

-0.2

-0.2

+0.7

-0.2
-0.7

16.6

16.0
Increase in OP income due to organic growth*+3

2017/3
1st Half Results

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

Recruiting

Overseas

ITO

Engineering

M&A*-0.2

Others

M&A

Adjustments

2018/3
1st Half Results: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)
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

6

2018/3 2Q : OP income by Segment
Margin declined due to the cost increase for investment in each segments as well as
expansion of group brand awareness(Unit: million yen)
2017/3 Results
1st Half

2018/3 Results
1st Half

2018/3 Forecasts

YoY(%)

Progress rate（％）

Full Year

Temporary
Staffing/BPO

9,931

10,676+7.5%

22,70047.0

Recruiting

4,738

4,705

-0.7%

9,500

49.5

Overseas-422-285--600

47.6

ITO

688

483

-29.8%

2,400

20.2

1,006

709

-29.5%

2,200

32.2

Others162-98--200

49.4

Adjustment555-173-0-

16,66016,017-3.9%

36,00044.5

EngineeringTOTAL*Internal transactions have not been eliminated from the figures
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7

2018/3 2Q : Consolidated Balance Sheets
As of March 31, 2017
Results
AssetsCurrent assets(Cash and deposits)
Non-current assets

As of September 30, 2017

Ratio(%)

Results

Ratio(%)(Unit: million yen)

Change268,364

100.0

276,438

100.0

8,074

165,240

61.6

174,026

63.0

8,785

69,43925.981,30629.4

11,867103,12338.4

102,412

37.0

-710

73,55727.4

70,31625.4-3,241

114,54742.7

115,52541.8

977

87,91332.8

90,730

32.8

2,817

5,053

1.9

4,640

1.7

-413

Non-current liabilities

26,6349.9

24,7959.0-1,839(Long-term loans payable)

20,426

7.6

18,103

6.5-2,323

153,81657.3

160,913

58.2

7,096

139,11951.8

145,729

52.7

6,609

(Capital stock)

17,465

6.5

17,467

6.3

2(Capital surplus)

20,156

7.5

20,182

7.3

26(Legal retained earnings)

102,432

38.2

109,552

39.6

7,119

Minority interests

14,696

5.5

15,1845.5487(Right of trademark and goodwill)

Liabilities
Current liabilities(Current portion of loans payable)

Net assets
Owners' capital<Current assets>
Increase in cash and deposits
Decrease in notes and accounts
receivable - trade＜Right of trademark and goodwill＞
Decreased due to Depreciation, Foreignexchange＜Current liabilities＞
Increase in other liabilities＜Non-current liabilities＞
Decrease in long-term loans payable<Legal retained earnings>
Increased due to an increase in profit

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8

2018/3 2Q : Consolidated Statements of Cash Flows

2018/32017/3(Unit: million yen, %)1st Half
Results

1st Half
Results

ChangeNet cash provided byoperating activities

22,584

22,524△60

Net cash used ininvestment activities△3,921△4,290△369＜Purchase of treasury stock＞*∟ 2017/3： -0.5
∟ 2018/3： -1,276

Net cash used infinancing activities△4,288△6,247△1,958＜Cash dividends paid＞∟ 2017/3： -1,641

Increase (decrease) incash and cash
equivalents

14,06911,872△2,197

Cash and cash
Equivalentsat end of year

65,20881,254

16,045∟ 2018/3： -2,104*Purchase of treasury stock intended for the use of Share Compensation System(BIP/ESOP) for PERSOL HOLDINGS and group company’s directors etc
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9

2018/3 2Q Transition of Business Results by Segments ① Temporary Staffing/BPO+9.8%(Unit: billion yen)

2018/3 2Q : Highlights

+7.1%
+7.5%
214.5

235.4
11.4

Sales

12.2

9.9

EBITDA

10.6•

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•

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

OP income2017/3 Results

1st Half(Unit: million yen)
2018/3 Results

1st Half

2018/3 Forecasts

YoY(%)

Full Year

Progress rate（％）

Sales

214,503

235,489+9.8%

485,400

48.5

EBITDA

11,437

12,255+7.1%

26,278

46.6

5.3

5.2-

5.4-9,931

10,676+7.5%

22,700

47.0

4.6

4.5-

4.7-

EBITDA margin (%)
OP incomeOP income ratio (%)*Internal transactions have not been eliminated from the figures*See the "Factbook for the Second Quarter Ended September 30, 2017" released on the website on the same date for the quarterly results
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

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2018/3 2Q Transition of Business Results by Segments ② Recruiting+10.4%(Unit: billion yen)

-5.4%

35.3
31.9

2018/3 2Q : Highlights•Demand from client companies remained strong, placement businessdriven the growth•

Suspension of publication for free-paper “an”, and integrated to webmedia•

Profitability declined temporarily due to personnel reinforcement andpromotional investment to meet the demands

-0.7%
6.7

Sales

6.3

4.7

EBITDA

4.7

OP income2017/3 Results

1st Half(Unit: million yen)
2018/3 Results

1st Half

2018/3 Forecasts

YoY(%)

Full Year

Progress rate（％）

Sales

31,99235,335+10.4%

78,10045.2

EBITDA

6,753

6,391

-5.4%

13,10048.8

EBITDA margin (%)

21.1

18.1-16.8-OP income

4,738

4,705-0.7%

9,500

49.5

OP income ratio (%)

14.8

13.3-12.2-*Internal transactions have not been eliminated from the figures*See the "Factbook for the Second Quarter Ended September 30, 2017" released on the website on the same date for the quarterly results
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

11

2018/3 2Q Transition of Business Results by Segments ③ Overseas+329.2%(Unit: billion yen)

2018/3 2Q : Highlights• High sales growth due to the expansion of business scope by theJoint Venture with Kelly Services, Inc. (October 2016~）• Due to the moderate recovery of market environment, EBITDA
became profitable

31.7
7.4

+1424.5%
0.0
Sales0.4• Continuous investment in personnel and system for future
growth-0.4

EBITDA-0.2

OP income2017/3 Results

1st Half(Unit: million yen)
2018/3 Results

1st Half

2018/3 Forecasts

YoY(%)

Full Year

Progress rate（％）

7,406

31,792+329.2%

63,10050.4

EBITDA

29446+1424.5%

977

45.7

EBITDA margin (%)

0.4

1.4-

1.5-

OP income-422-285--600-

OP income ratio (%)-5.7-0.9--1.0-Sales*Internal transactions have not been eliminated from the figures*See the "Factbook for the Second Quarter Ended September 30, 2017" released on the website on the same date for the quarterly results
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

12

2018/3 2Q Transition of Business Results by Segments ④ ITO+5.3%(Unit: billion yen)

2018/3 2Q : Highlights• Demand for IT system and SI-related services from clientcompanies remained solid

12.8

13.5

• Achieved sales growth due to the increase in the high value-added
PJ such as consulting service, the sales marketing service-19.4%

1.0

Sales

0.8

0.6

EBITDA• Profitability declined temporarily due to labor condition
improvement for retention and recruitment of IT engineers as well
as office expansion etc-29.8%

0.4

OP income2017/3 Results

1st Half(Unit: million yen)
2018/3 Results

1st Half

2018/3 Forecasts

YoY(%)

Full Year

Progress rate（％）

Sales

12,851

13,532+5.3%

29,40046.0

EBITDA

1,013816-19.4%

2,991

27.3

EBITDA margin (%)

7.96.0-10.2-OP income688483-29.8%

2,400

20.2

OP income ratio (%)

5.4

3.6-8.2-*Internal transactions have not been eliminated from the figures*See the "Factbook for the Second Quarter Ended September 30, 2017" released on the website on the same date for the quarterly results
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

13

2018/3 2Q Transition of Business Results by Segments ⑤ Engineering+4.1%(Unit: billion yen)

2018/3 2Q : Highlights• Demand of design development and experiment from theautomobile and electric industries remained solid

12.5• Demand from clients increased along with the new brandpenetration△21.4%

13.0△29.5%

1.2

Sales

1.0

1.0EBITDA• Profitability declined temporary, due to cost increase inparticular project occurred in 1Q

0.7

OP income2017/3 Results

1st Half(Unit: million yen)
2018/3 Results

1st Half

2018/3 Forecasts

YoY(%)

Full Year

Progress rate（％）

Sales

12,545

13,062+4.1%

28,10046.5

EBITDA

1,284

1,010

-21.4%

2,869

35.2

EBITDA margin (%)

10.2

7.7-10.2-OP income

1,006709-29.5%

2,200

32.2

8.05.4-7.8-

OP income ratio (%)*Internal transactions have not been eliminated from the figures*See the "Factbook for the Second Quarter Ended September 30, 2017" released on the website on the same date for the quarterly results
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.

14

2018/3 2Q Transition of Business Results by Segments ⑥ Others／Adjustment(Unit: million yen)
Others2017/3 Results

2018/3 Results

1st Half

1st Half

2018/3 Forecasts

YoY(%)

Progress rate（％）

Full Year

Sales

3,274

1,976

-39.6%

4,300

46.0

EBITDA189-66--120-

EBITDA margin (%)

5.8-3.4--2.8-

OP income162-98--200-

OP income ratio (%)

5.0-5.0--4.7(Unit: million yen)

Adjustment
Sales

EBITDAEBITDA margin (%)
OP incomeOP income ratio (%)

2017/3 Results

2018/3 Results

1st Half

1st Half

2018/3 Forecasts

YoY(%)

Progress rate（％）

Full Year-5,783-6,406--11,100-

862

194-

1,011------555-173-0------*Internal transactions have not been eliminated from the figures*See the "Factbook for the Second Quarter Ended September 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.

15

Dividend Policy
Stable dividend payment will be continued according to the progress of business results,
while enhancing our business structure to be able to expand businessin growth areas swiftly and aggressively
2014/3

Dividend perShare2015/3

2016/32017/3

2018/3

InterimYearend

InterimYearend

InterimYearend

InterimYearend

InterimYearend(※)
3.3 yen(※)
4.6 yen(※)
4.6 yen

(※)
6 yen

(※)
6 yen

7 yen

8 yen

9 yen

9 yen

9 yen
（Plan）

Total amount ofDividend

1,754 million yen

2,340 million yen

3,046 million yen

3,985 million yen-Dividend Ratio（Consolidated）

16.9％

17.4％

17.2％

22.4%

19.0%
（Plan）（※）Stock Split in October 29, 2015••

Temp Holdings conducted the 3-for-1 stock split for the common stock of the company, for the purpose of enhancing theliquidity of the Company’s shares and broadening its investor base by reducing the price of one investment unit of theCompany’s stock.
Dividend before interim 2016 have been calculated on the basis that the stock split had been effective at the beginningof the year ended March 31, 2016.

*See the "Share Split and Related Article of Incorporation Modification; Convertible Bond Conversion Price Adjustment and Dividend Forecast Revision" for details（http://v4.eir-parts.net/v4Contents/View.aspx?template=ir_material_for_fiscal_ym&sid=34851&code=2181）
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16

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)

66.0 billion yen（*6）

Company nameGoodwill

4.62 billion yen

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 Maintenance Services Limited 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 88.15
Copyright © since 2016 PERSOL HOLDINGS CO., LTD. All Rights Reserved.
17

Disclaimer

The statements concerning the Company’s future businessperformances in this material such as earnings forecasts are
based on information available as of November 13, 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 dueto a variety of factors.
This briefing is only for better understanding. Please note thatnumbers 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.

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

18