PERSOL HOLDINGS (TSE 2181)
FY2019 Q3

For Immediate Release
February 14, 2020

PERSOL HOLDINGS CO., LTD. (TSE 2181)
Consolidated Financial Results for the Nine Months Ended December 31, 2019
PERSOL HOLDINGS CO., LTD (the Company) today announced its consolidated business results for thenine months ended December 31, 2019.
Consolidated Operating Highlights
1) Business Results(In millions of yen, unless otherwise stated)

Sales
Operating profit
EBITDA1
Ordinary profit
Net profit2
Net profit per share (yen)Adjusted EPS3

Nine months ended December 31,20182019685,231721,160
32,07428,40343,73041,35832,19328,74818,738
-654
80.31
-2.81
110.4795.80% change
5.2%-11.4%-5.4%-10.7%-13.3%

Note:
1. EBITDA=operating profit + depreciation + amortization of goodwill
2. Net profit attributable to owners of parent
3. Adjusted EPS=adjusted profit a/ (average number of shares during the period - number of treasury stock during the period)a. Adjusted profit=profit attributable to owners of the parent ± adjustment items (excluding non-controlling interests) ± tax
reconciliation related to certain adjustment items bb. Adjustment items=amortization of intangible assets except goodwill by acquisitions ± extraordinary income/losses2) 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 December 31,
2019345,888
154,322
138,59640.1%

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. Actualresults may differ materially from the statements due to a variety of factors.

-1-PERSOL HOLDINGS (TSE 2181)
FY2019 Q3

1. Management Discussion and Analysis(1) Result of Operations
In the Japanese labor market for the nine months ended December 31, 2019, the ratio of job offers tojob seekers continuously remained as high as 1.57 in December 2019 reflecting structural shortage ofworkers. However, increasing uncertainty in overseas economic outlook drove business corporations
to save HR related cost in some sectors, especially manufacturing related industries. In the AsiaPacific region, China suffered economic slowdowns mainly due to US/China trade friction, its
surrounding countries concerned about the impact of the friction and the Australian economy
continued its stagnation.
In this environment, the PERSOL Group attained, for the nine months ended December 31, 2019,consolidated net sales of JPY 721,160 million (increased by 5.2% YoY), an operating profit of JPY
28,403 million (decreased by 11.4% YoY), and an ordinary profit of JPY 28,748 million (decreased by10.7% YoY).
Although the sales of a part-time job recruitment media business (hereinafter “an” business) in theRecruiting segment was decreased due to its service termination at the end of November 2019, sales
increased in Temporary Staffing/BPO segment, one of pillars of the Group and PERSOLKELLY segmentthat provides HR services; mainly staffing, in Asia-Pacific region.
Operating profit increased in Temporary staffing/BPO segment, compared to the same period ofprevious year. However, other segments decreased profit due to deteriorated profitability. In
particular, profits from overseas operations were declined; in PROGRAMMED segment (that operates
staffing and maintenance businesses in Australia) due to deteriorated profitability of Staffing businessinfluenced by the stagnated local economy and the weakening of the Australian dollar, and also in
PERSOLKELLY segment due to the system trouble in Australia. The system trouble has been concluded
at the end of December 2019.
As a result, consolidated operating profit for the nine months ended December 31, 2019 wasdecreased from the same period of previous year, ordinary profit was decline d accordingly.
Net loss attributable to owners of parent for the period was JPY 654 million (JPY 18,738 million of net
profit for the same period of the previous year) because extraordinary losses were recorded such as
impairment losses on goodwill of PROGAMMED’s Staffing business in Q2, and business restructuring
cost related to “an” business termination in the nine months ended December 31, 2019.

Results by Segments (before inter-segment elimination)
1. Temporary Staffing/BPO Segment
Segment sales for the nine months ended December 31, 2019 were JPY 407,580 million (increased by7.7% YoY), and its operating profit was JPY 19,117 million (increased by 6.1% YoY).
As in the previous consolidated fiscal year, demand for staffing service from corporate clientsremained very strong due to structural shortage of workers. However, there were some businessenterprises especially in manufacturing related industries took initiatives to reducing HR cost.
Although the nine months period had four operating days shorter than the same period of theprevious year, segment sales increased because the number of active temporary workers increased
lead by proactive sales activities, and because Avanti Staff, which was acquired at the beginning of theprevious Q4 period, was added to the consolidation group. Operating profit increased because thenumber of active temporary workers were increased.

-2-

PERSOL HOLDINGS (TSE 2181)
FY2019 Q3

2. Recruiting Segment
Segment sales for the nine months ended December 31, 2019 were JPY 63,923 million (increased by2.7% YoY), and its operating profit was JPY 10,367 million (decreased by 3.7% YoY).
Sales increased reflecting the sales growth in the placement service business and “an” businessrecorded until 1H. Operating profit was reduced mainly due to risen personnel cost ratio to sales inspite of re-assignment of former “an” business staffs to other divisions during Q3.
3. PROGRAMMED Segment
Segment sales for the nine months ended December 31, 2019 were JPY 140,194 million (decreased by
7.4% YoY), and it posted an operating loss of JPY 502 million (JPY 237 million of operating profit forthe 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 Staffing business sales dropped influenced by theslowdown of the Australian economy, and segment sales were lower due the weakening of theAustralian dollar. An operating loss was mainly due to low performance of the Staffing businesses andrecorded one-time personnel expense.
4. PERSOLKELLY Segment
Segment sales for the nine months ended December 31, 2019 were JPY 62,642 million (increased by
12.9% YoY), and it posted an operating loss of JPY 356 million (JPY 647 million of operating profit forthe same period of the previous year).
Sales increased driven by the factors of economic growth in Asia-Pacific region and expansion of theHR services business focusing on staffing service in regions other than Australia. An operating loss wasrecorded mainly because of the costs to deal with the system trouble in the Australian operation.
5. ITO Segment
Segment sales for the nine months ended December 31, 2019 were JPY 29,698 million (increased by
24.4% YoY), and its operating profit was JPY 660 million (decreased by 21.8% YoY).
Sales increased in the backdrop of robust demand for IT solutions. Operating profit decreased as aresult of intensive recruitment activities to meet growing clients’ needs and increased wages forengineers.
6. Engineering Segment
Segment sales for the nine months ended December 31, 2019 were JPY 21,187 million (decreased by0.9% YoY), and its operating profit was JPY 1,253 million (decreased by 31.0% YoY).
Sales remained almost at the same level YoY as result of proactively proposing our engineeringsolutions to corporate clients under the circumstance of the demand from manufacturing industries
dropped due to US/China trade friction. On the other hand, operating profit was reduced due tolower profitability as the changes in service compositions.

-3-

PERSOL HOLDINGS (TSE 2181)
FY2019 Q3(2) Financial Position(a)Consolidated Balance Sheet
Total assets decreased by JPY 24,951 million from the end of the previous consolidated fiscal year.
Current assets decreased by JPY 9,440 million, and fixed assets decreased by JPY 15,510 million. Themain reason for the decrease in current assets was a decrease in cash and deposits by JPY 6,333
million etc. The decrease in fixed assets was because a decrease in goodwill of JPY 18,567 million etc.
Liabilities decreased by JPY 8,348 million from the end of the previous consolidated fiscal year.
Current liabilities decreased by JPY 454 million and non-current liabilities decreased by JPY 7,893
million. The main reasons for the decrease in current liabilities were a JPY 8,088 million decrease inaccrued income taxes and a JPY 4,683 million decrease in provisions for bonuses while a JPY 10,000
million increase in long-term loans payable within one year. The main reason for the decrease in noncurrent liabilities was a JPY 10,020 million decrease in long-term loans payable while we had a JPY
2,077 million increase in lease liabilities.
Net assets decreased by JPY 16,602 million compared to the end of the previous consolidated fiscalyear. This was due mainly to the payment of JPY 7,003 million of surplus dividends and therecognition of JPY 654 million as a quarterly net loss attributable to owners of parent, which resulted
in a JPY 7,657 million decrease in retained earnings, a JPY 4,985 million increase in treasury stocks,
and a JPY 4,487 million decrease in foreign currency translation adjustments.

As of March
31, 2019
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
68,969As of December
31, 2019
0.0%
-0.4%
3.9%
4.0%
138.7%
105.0%
40.1%
345,888
138,596
62,649(b) Issues to be addressed in our business and financial operations
There were no new business and financial challenges requiring addressing during nine months ended
December 2019.

-4-

PERSOL HOLDINGS (TSE 2181)
FY2019 Q3(3) Explanation of Consolidated Financial Forecasts for Fiscal 2019
Financial results for the nine months ended December 31, 2019 were almost in line with theCompany’s plan. Therefore, there is no change in earnings forecasts for fiscal 2019 that wasannounced in November 2019
(Reference)
Financial Forecast announced in November 2019
(In millions of yen, unless otherwise)
Forecast
Net sales
EBITDA
Operation profit
Ordinary profit
Net profit
Net income before amortization of goodwill
Net profit per share (yen)Adjusted EPS (yen)980,000
58,00040,70040,8005,500
13,30023.63
141.33

YoY change %
5.9%
-3.3%
-7.7%
-7.2%-77.4%
60.0%-72.4%-5.9%-*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.

-5-PERSOL HOLDINGS (TSE 2181)
FY2019 Q3

2. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheet
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Work in process
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Tangible fixed assets
Buildings and structures, netTools, 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
investments and other assets
Investment securities
Deferred tax asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total Assets-6-

As of December 31, 201969,029122,908
7,342
11,251-686
209,845

62,696
120,148
7,992
10,303-736
200,404

3,397
1,303
－799
2,156
7,657

3,660
1,692
3,505
997
2,080
11,936

10,06991,763
20,539122,372

9,438
73,196
21,883
104,518

11,894
5,770
13,317-1730,964160,994
370,839

11,958
3,982
14,174-1,08429,029145,483
345,888

PERSOL HOLDINGS (TSE 2181)
FY2019 Q3(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
OtherTotal Current Liabilities
Non-current liabilities
BondLong-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 interestsTotal net assets
Total liabilities and equity-7-

As of March 31, 2019

As of December 31, 2019

741
5,044
10,00168,307
11,384
14,15911,73014745
22,789144,919683
3,328
20,001
70,465
3,295
16,8737,047
41623
22,105
144,464

20,00025,748
106
5,042
905
261
291
217
2,421
54,995
199,91420,00015,727
2,184
4,960
930
348
404
69
2,475
47,101
191,566

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

17,47920,396
118,019-9,372
146,522

2,346-5,919-3,572
15,331
170,925
370,8392,480-10,406-7,926
15,725
154,322
345,888

PERSOL HOLDINGS (TSE 2181)
FY2019 Q3(2) Consolidated income Statements (Nine months ended September 2019)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
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
Bond issuance expenses
Losses on foreign exchange
OtherTotal non-operating expenses
Ordinary ProfitExtraordinary 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 investment securities
Loss on valuation of subsidiaries and affiliates’ shares
Total extraordinary losses
Net quarterly profit before taxes etc.
Corporate tax, resident tax, and business taxCorporate 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-8-

Nine months ended December 31,
2018
2019
685,231
721,160
533,979
561,375
151,252
159,785
119,178
131,381
32,07428,403
29
138
204
232
329
65
999

22
151
384
228
－
99
886

664
102
－
112
880
32,193

389
－
76
75
541
28,748

62
111
38
56
268

67
33
33
－
134

18
167
－
－
3
14－
204
32,257
10,4401,524
11,965
20,292
1,553
18,738612,525
1,094
3,144－－598
17,368
11,514
9,396
1,995
11,392
121
775
-654

PERSOL HOLDINGS (TSE 2181)
FY2019 Q3(Consolidated profit and loss statement)
Nine months ended December 31,
2018
Profit for the period
Other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
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-controlling interests-9-2019

20,292121-1,282-5,642

133-4,630-145-102-7,07013,221-4,600-4,478

11,8681,352-5,008529