Consolidated Financial
Results of the Fiscal Year
Ended in March 2021
(FY2020)PERSOL HOLDINGS CO., LTD.
May 14, 2021

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Today’s Agenda

1. Financial Results for FY2020 ended March 31, 2021
2. New Management Structure
3. Financial Forecasts for FY2021 ending March 31, 2022
4. Progress of Mid-term Management Plan 2023

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1

Highlight
Financial Results for FY2020
Point 1

 Net sales and operating profit decreased year-on-year (YoY) because sales and profit
dropped mainly in Career SBU due to the effects of COVID-19 despite increases in sales
and profit of the core Staffing SBU.
 On the other hand, results achieved the forecast of sales and operating profit.

New Management Structure
Point 2

 New management structure has started when Takao Wada took office ofRepresentative Director, President and CEO effective April 1, 2021.

Financial Forecasts for FY2021
Point 3

 Net sales, operating profit and net profit attributable to owners of parent company are
expected to be 1 trillion yen, 35.0 billion yen, and 18.5 billion yen, respectively, allmore than those of FY2020.
 Assuming recovery from the effect of COVID-19 in FY2021, steady growth is expected
toward achieving the plan for the Fiscal Year ending March 2023 which is the final yearof Mid-term Management Plan.

Progress of Mid-term Management Plan 2023
Point 4

 Focused on taking countermeasures against COVID-19 throughout FY2020, while
promoting building foundations for achieving the Mid-term Management Plan.

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2

Financial Results for FY2020

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Financial Results for FY2020
 Net sales and operating profit decreased YoY because sales and profit dropped mainly in Career SBU
due to the effects of COVID-19 despite increases in sales and profit of the core Staffing SBU.
 On the other hand, results achieved the forecast of sales and operating profit.

(million yen)

Net sales

FY2019Results

970,572

FY2020
Forecasts

940,000

Results

YoY(%)

Comments
Net sales decreased YoY as a result of

950,722-2.0％ decreased sales in Career SBU and Asia Pacific
SBU while results achieved the forecast.

Operatingprofit39,08525,00026,439-32.4％

Operating profit significantly dropped YoY due
to lower sales from highly profitable Career
SBU businesses.

OP Margin

4.0%

2.7％

2.8％

-1.2pt

-56,356

41,70043,911-22.1％-EBITDANet profit*

7,612

14,50015,834108.0％

Extraordinary loss of 19.3 billion yen wasrecorded mainly due to goodwill impairment
loss relating to overseas businesses in
FY2019.

Adjusted EPS

148.44

98.66

103.12-30.5％-(yen)* Net profit attributable to owners of parent company
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Sales by SBU for FY2020（million yen)Staffing

CareerProfessional
Outsourcing
Solution
Asia Pacific(APAC)FY2019Results

510,177

83,449105,826
7,012

273,241

FY2020
Forecasts

522,300

59,300112,600
6,000

247,400

Results

530,240

59,568113,095
5,702

251,447

YoY

Comments

3.9%

Sales increased YoY due to raised unit billing rates in
temporary staffing sector in response to “equal pay
for equal work” as well as increased number ofoutsourced projects in BPO sector.

-28.6%

Sales decreased YoY because of the termination of“an” business (in November 2019) and because
companies were continuously refraining from hiring
due to the effect of COVID-19.

6.9%

Sales increased YoY as a result of maintaining highgrowth in IT area with strong demand for IT
engineers.

-18.7%

Sales decreased YoY due to the impact of COVID-19
and the principle method for revenue recognition
being applied to job seach application business(impacted amount: approx. -1.3 billion yen).

-8.0%

Sales decreased YoY in general due to the impact of
COVID-19 despite growth of staffing business in
Singapore and a trend of recovery of blue-collar
staffing business in Australia.
Sales increased YoY because disabled persons hiring
business showed a steady growth thanks toincreased internal transaction within Group andtraining business was also on the track of recovery.

Other

10,111

11,70011,46413.4%

Adjustment-19,246-19,300-20,795--

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Operating Profit by SBU for FY2020（million yen)Staffing

FY2019Results

23,869FY2020
Forecasts

Results

29,10029,123Career13,2680331

Professional
Outsourcing

6,310

3,840

4,028

Solution

YoY

Comments

22.0%

Profit increased YoY driven by increased sales in
temporary staffing sector and in highly profitable
BPO sector.

-97.5%

Profit decreased significantly YoY due to decreased
sales, but it has been slowly recovering after
hitting bottom in Q2. The business turned tosurplus in Q4, resulting in full-year surplus.
Profit decreased YoY as a result of increased labor-36.2% costs-to-sales ratio due to factors including

inactive engineers occurred in engineering area.

-1,619-4,880-4,809-Asia Pacific(APAC)-408-890-1,520

-

Other

-427

-1,110-1,156--1,909

-1,060442-

Adjustment

Loss was expanded YoY as a result of continued
investment including increasing headcount as wellas the principle method for revenue recognition
being applied to job search application business(impacted amount: approx. -1.3 billion yen).
Loss was expanded YoY because sales decreased
mainly in highly profitable placement business dueto the impact of COVID-19 despite improvement ofcost structure by integration of businesses inAustralia.
Loss was expanded due to the impact of COVID-19
in training business particularly in H1 althoughcurrent business condition is on a trend ofrecovery.
Profit was recorded as a result of the effort of
reduction of SG&A expenses and because
investments in relation to the Mid-termManagement Plan has not been fully used.
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Consolidated Balance SheetStrong financial position was maintained in FY2020 even though COVID-19 had an impact on
business results.
Maintained Long-Term Issuer Rating A as “stable”.
（million yen)

FY2019Results

FY2020Results

ChangeComments

223,549

236,943

13,393-

Cash and deposits

78,247

83,161

4,913-

Non-current assets

147,444

146,472-971-

Current assets

Goodwill

72,562

66,751-5,811Main goodwill are approx. 23.5 billion yen in
relation to maintenance business inAustralia and approx. 18.0 billion yen in
relation to placement business in Japan.

Total assets

370,993

383,416

12,422-Current liabilities

140,052

145,577

5,525-

Non-current
liabilities

67,03562,680-4,355

Net assets

163,906

175,158

11,251

Liabilities and net
assets

370,993

383,416

12,422

Bonds of 10.0 billion yen to be redeemed inJune 2021 were transferred to current
liabilities.
 Increased due to current net profit
attributable to owners of parent companyof 15.8 billion yen
 Dividends of surplus
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Consolidated Cash Flow Statement Free cash flow increased YoY significantly to approx. 23.5 billion yen due to increased cash flow fromoperating activities.
(million yen)

FY2019Results

FY2020Results

ChangeComments

Cash flow fromoperating activities

28,592

37,574

8,981 ・Increased accrued liabilities.

Cash flow frominvesting activities-17,576-14,022

3,554

M&A

-2,328-224

Others-15,248-13,798

In FY2019, acquired shares of Fuji

2,103 Xerox's training business.
1,450

・Cash flow from operating activities +cash flow from investing activities.
・Free cash flow increased due toincrease cash flow from operating
activities.

Free cash flow

11,01523,552

12,536

Cash flow fromfinancing activities-1,987-17,973-15,985 was made in the end of March 2020.

Balance of cash andcash equivalent at endof period

78,03782,991In FY2019, bank loan of 20 billion yen

4,953

-

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8

Trend and Forecast of Dividend Per Share The annual dividend in FY2020 decreased due to lower adjusted EPS compared to FY2019. The year-end dividend is
13 yen per share as forecasted.
 The annual dividend forecast for FY2021 plans to be increased by 3 yen to 29 yen.
(Plan)

Annual38 yen(yen)
Year-end
dividend
Interimdividend*1*2

The dividend payout
ratio for FY2016 toFY2019 was calculated
by converting the baseprofit to adjusted EPS.
Total dividend amountforecast was estimatedbased on the numberof shares issued andthe number of treasury
shares both at the endof March 2021.

Adjusted EPS (yen)40.0(Forecast)

35.0
Annual26 yen30.0

Annual29 yen

25.0

15.0
20.0

13.0

15.0
15.0

9.0

15.0
Final FY of
Mid-term
Management Plan

10.0

10.0

15.0
5.0

8.0

9.0

10.0

FY2016FY2017FY2018FY2016FY2017FY201813.0

14.0

FY2019FY2020

FY2021

FY2022FY2019FY2020

FY2021

FY20220.0

114.27115.70150.26148.44103.12113.19147.76

Dividend payout ratio (%)*1
based on adjusted EPS

14.9

16.4

16.6

20.2

25.2

25.6

Approx.
25.0

Total dividend amount(million yen)*2

3,985

4,443

5,849

6,967

6,022

6,716

Approx.
8,800

Adjusted items = amortization of intangible assets except goodwill by acquisition ＋ amortization of goodwill ± extraordinary income/losses
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9Adjusted EPS (Reference) Shifted to a dividend policy that focuses on dividend payout ratio (25% of adjusted EPS) in FY2020 .
 Adjusted EPS is calculated excluding the effects of goodwill amortization and extraordinary income
and loss amounts, etc.

Adjusted EPS

Current net
profit after
adjustment(million yen)

Current net
profit after
adjustment

Average number of shares issued during the period –Average number of treasury shares during the period÷Current net profit
attributable to ownersof parent company
FY2018±FY2019Adjusted items(excluding those
attributable to noncontrolling interests)
FY2020Current net profit
attributable to owners ofparent company

24,361

7,612

15,834

Adjusted items

11,30828,486

8,582

-604

-1,604-627

35,06534,49423,789233,358,246

232,381,682

230,706,879

150.26148.44103.12

Tax reconciliation related tocertain adjustment items
Current net profit after
adjustment
Number of shares (share)*Adjusted EPS (yen)±Tax reconciliation
related to certain
adjustment items

Details of adjusted items

Amortization of intangible assets
except goodwill by acquisitions
Amortization of goodwill
Extraordinary income/losses* Number of shares = average number of shares issued during the period - average number of treasury shares during the period
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10

New Management Structure

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New Management Structure (Effective April 1, 2021)•••

The PERSOL Group changed the management structure effective April 1, 2021.
Takao Wada and Hirotoshi Takahashi take office of Representative Director, President
and CEO, and Representative Director and Deputy President, respectively.
Masamichi Mizuta, former Representative Director, President and CEO is committed tothe corporate governance reinforcement as Director and Chairman.
Takao Wada, Representative Director, President and CEO
Born in 1962 in Kyoto (58 years old)
Graduated from Ritsumeikan University, Faculty of Law
1991: Joined Tempstaff Co., Ltd.
(currently PERSOL TEMPSTAFF CO., LTD.)In charge of: Engineer dispatching → Clerical andadministrative staffing → IT Management Department →Outsourcing → Planning Department
2006: Director of Tempstaff Co., Ltd.
2016: President and Representative Director of Tempstaff Co., Ltd.
2020: Representative Director and Deputy President of PERSOLHOLDINGS CO., LTD.
12
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New CEO Wada’s Policy“Fueki - Ryuko“
Fueki (Being Eternal)
 Corporate Philosophy:“Providing Opportunity,” “Individual Growth” and “Social Contribution”

 Five Core Principles:“Authentic,” “Customer-Focus,” “Professional,” “Teamwork,” and “Innovative”
 Group Vision: “Work, and Smile”

Ryuko (Being Open to New Changes)•

Flexibly respond to society under the influence of the COVID-19 and tochanges of working environment to continue providing values that exceed
customers’ expectation.
➢ Responding to remote activities in society➢ Taking measures of risk management and risk mitigation➢ Accelerating the renewal of the company, etc.
13
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Major Policies of the Group
Promotion of “Mid-term Management Plan 2023”
Social value

Maximizing “Work, and Smile”• Start of a global research of “Work, and Smile”––

Adding a questionnaire about “Work, and Smile” to the Gallup World Poll, the most comprehensive andfarthest-reaching survey of the world, targeting approx. 120,000 people in 118 countries in the world. The
results of the survey is scheduled to be announced in September 2021.
Creating indicators for measuring the level of achieving “Work, and Smile,” aspiring to instill it in society.

• Measurement of the level of achieving “Work, and Smile” among people receiving ourservices and employees within the Group––

Starting the measurement of the level of achieving “Work, and Smile” among people receiving each of theservices by introducing a new indicator in each SBU.
Starting the measurement of “Work, and Smile” among our employees to enhance their work engagement.

Economic value

Growth of existing businesses anddevelopment of new businesses

 Steadily growing the existing core businesses (Staffing SBU and Career SBU) throughimprovement of profitability.
 Focusing efforts on development of new businesses for future growth.
 Setting up a technological strategy and strengthening the investments in the areas of IT and
14
DX.
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Financial Forecasts for FY2021

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Financial Forecast for FY2021
Concerning the forecast for FY2021, operating profit will increase YoY significantly, mainly
in Career SBU, from the prospect that the highly profitable placement business will recover.
In addition, since the recovery of the market condition is expected to accelerate in thesecond half, profit recovery is also expected to be bigger in the second half.
FY2021(Forecast)（million yen）
1st Half

2 nd Half

Consolidated
sales

481,500

OperatingprofitFY2020(Actual)
Full year

YoY(%)

1st Half

2 nd Half

Full year

518,500 1,000,000

465,755484,966

950,722

15,10019,90035,00013,875

12,563

EBITDA

24,16029,34053,50022,351

Net profit*

7,900

10,60018,500Adjusted
EPS(yen)

50.59

62.60

113.19*Net profit attributable to owners of parent company

1st Half

2 nd Half

Full year

3.4%

6.9%

5.2%

26,439

8.8%

58.4%

32.4%

21,55943,911

8.1%

36.1%

21.8%

7,644

8,190

15,834

3.3%

29.4%

16.8%

52.28

50.84

103.12

-3.2%

23.1%

9.8%
16

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Sales Forecast by SBU for FY2021
FY2021(Forecast)（million yen）

1st Half

2 nd Half

Consolidated

481,500

Staffing

FY2020(Actual)
1st Half

2 nd Half

Full year

518,500 1,000,000

465,755484,966

950,722259,800

273,000

532,800

260,283

269,956

Career33,10036,00069,10029,715

Professional
Outsourcing

57,30062,400119,700

Solution

4,400

5,600

132,000

Asia Pacific(APAC)
OthersAdjustment

Full year

YoY(%)
1st Half

2 nd Half

Full year

3.4%

6.9%

5.2%

530,240

-0.2%

1.1%

0.5%

29,85359,568

11.4%

20.6%

16.0%

53,69659,398113,095

6.7%

5.1%

5.8%

10,000

2,190

3,511

5,702

100.9%

59.5%

75.4%

146,300

278,300

124,664

126,782

251,447

5.9%

15.4%

10.7%

6,400

7,100

13,500

5,020

6,443

11,464

27.5%

10.2%

17.8%

-11,500-11,900-23,400-9,815-10,980-20,795

-

-

-

17
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Operating Profit Forecast by SBU for FY2021
FY2021(Forecast)（million yen）

1st Half

FY2020(Actual)2 nd Half

Full year

1st Half

YoY(%)

2 nd Half

Full year

1st Half

2 nd Half

Full year

Consolidated

15,10019,90035,00013,875

12,563

26,439

8.8%

58.4%

32.4%

Staffing

15,35014,15029,50016,30912,81329,123

-5.9%

10.4%

1.3%

Career

1,430

3,170

4,600

138

193

331

934.3% 1,537.4%

1,286.1%

Professional
Outsourcing

1,520

3,680

5,200

989

3,038

4,028

53.6%

21.1%

29.1%

Solution-1,990-1,260-3,250-2,697-2,112-4,809---Asia Pacific(APAC)

-180

1,330

1,150

-677

-842

-1,520---

Others

-210

150

-60

-860

-295

-1,156---

Adjustment-820-1,320-2,140

674

-231

442

-

-

-

18
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EBITDA Forecast by SBU for FY2021
FY2021(Forecast)（million yen）

1st Half

FY2020(Actual)2 nd Half

Full year

1st Half

YoY(%)

2 nd Half

Full year

1st Half

2 nd Half

Full year

Consolidated

24,16029,34053,50022,351

21,55943,911

8.1%

36.1%

21.8%

Staffing

17,25016,20033,45018,197

14,65332,851

-5.2%

10.6%

1.8%

Career

3,170

5,080

8,250

1,789

1,934

3,724

77.1%

162.6%

121.5%

Professional
Outsourcing

2,260

4,440

6,700

1,733

3,820

5,554

30.4%

16.2%

20.6%

Solution-1,270-430-1,700-2,223-1,444-3,668---Asia Pacific(APAC)

3,000

4,370

7,370

2,338

2,345

4,683

28.3%

86.3%

57.3%

0

370

370

-710

-112

-822

-

-

-

-250

-690

-940

1,226

361

1,587

-

-

-

OthersAdjustment

19
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Staffing SBU•••

Promoting “Providing Opportunity = Creation of Fans” to increase employment opportunities for staffs and strengthen
engagement.
Enhancing sales quality and quantity in clerical area and challenging to gain 40% share in the clerical staffing market.
Maintaining a high growth rate in BPO sector and strengthening the business foundation

Business results trends

Composition of sales
FY 2020

Unit: billion yen

530.2

532.8

500

50
45
40

400

Clerical
BPO

16%
12%

61%

PPG
R&D
Marketing• No. 1 market share in clerical staffing(18%)*• Solid business foundation and trust• High ability to solve issues throughcollaboration between staffing andoutsourcing businesses• Launching the best strategy in eacharea by leveraging the business scale

35
29.1

29.5

300

30
25
20

200

15
10

100

5
0

5%
6%

Competitive advantages

FY2020(Actual)FY2021(Forecast)

Net sales

Operating profit0* A survey by PERSOL◆ Business growth under COVID-19• In FY2020, the number of active staffs was maintained as termination was significantly lessthan expected due to an all-out effort to secure employment for staffs under COVID-19.
New service to respond to remote work were also launched.
• BPO sector achieved a sales growth ratio of 23% for FY2020 as a result of the collaboration
with clerical sector to promote sales activities as an initiative of whole-of-SBU.

◆ Reinforcement of business using technologies• Modifying mission-critical system, GENESIS, for enabling provision of services to customers
and staffs while ensuring the security even under the pandemic.
• Starting operation of the mission-critical system of BPO sector by investing approx. 470
million yen. Expanding BPO sector and improving profitability.
• “Temp App”, application to ensure stable operation and convenience for staffs installed by
47,000* staffs.
* Including 26,000 active staffs

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20

Career SBU••

Placement business is expected to recover steadily in FY2021 driven by appropriate and well-balanced
investments and sales enforcement. We will improve productivity and will return business to recovery.
To respond to current recovery of the market, quickly expanding the business structure to increase job searchservice business for permanent employees and increase investment in technologies aiming to enhance mid- tolong-term competitive strength.

Business results trends

Composition of sales
FY 2020

Unit: billion yen

9%

69.1

70.0

20

59.5

18

60.0

70%

Advertising
Others16
50.0• Wide client contact (the number ofcorporate clients is 29,000 over)• High brand recognition• The second largest* business size in theplacement business market• High profitability and investment
capability in normal time
* A survey by PERSOL

14
12

40.0

10
30.0

8

4.6

20.0

6
4

10.0
2

0.3
0.0

Placement

21%

Competitive advantages

FY2020(Actual)FY2021(Forecast)

Net sales

Operating profit

0◆ Expansion of business structure in preparation for current market
recovery• To meet the increasing needs for hiring in current recovery of the market, expanding theworkforce structure by resuming mid-career hiring.
• Increasing investment in marketing while keeping appropriate efficiency to promote
gathering individual customers stably.

◆ Increasing investment in technologies to enhance mid-term competitive
strength• Increasing investment in technologies to improve matching accuracy and promote nonface-to-face support.
• Setting up a digital organization in main business units to promote digitization of business.
• Having many experts including AI engineers to build a structure that enables in-housemanufacturing.
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22

Professional Outsourcing SBU• There was strong demand in IT area even under COVID-19, and sales growth ratio for FY2020 was over 20%.
Aiming at achieving a sales growth ratio of high single digits by continuing to secure engineers in FY2021.
• In engineering area, recovery of the market affected by the effect of COVID-19 is expected and the measures
including SBU-wide collaboration in sales activities will be implemented to reduce the number of inactiveengineers and aim to achieve an increase in sales and profit by 10% or higher.

Business results trends

Composition of sales
FY 2020

Unit: billion yen
IT*
140

120

20

119.7

113.0

100

14
12

80

10
60

8

5.2

6

4.0
4

20
2
0

FY2020(Actual)
Net sales

41%

FY2021(Forecast)
Operating profit

0Engineering**
IT/Engineering staffing

18
16

40

35%

25%

* IT: former ITO segment** Engineering:
former Engineering segment

Competitive advantages• More than 13,000 engineers (experts
and technicians) in a wide range ofareas from manufacturing to IT/NW• Strong customer base with 1,700
companies• Covering a wide range of solutions fromconsulting, development, production
support to maintenance.

◆ Role as the third pillar of the Group• Accelerating internal collaborations and standardization in order to achieve high growth andprofitability as the third pillar business of the Group.
• Strengthened sales and marketing activities because companies were still careful in theirbusiness activities although the demand was on a trend of recovery toward the end of
FY2020 after the temporary decrease of demand due to COVID-19.
• As a group of experts of IT/engineering, proposing innovative work styles to manufacturing
and construction industries in addition to white-collar area by capturing needs for remotecontrol and development, which are increasing acceleratingly due to COVID-19.

◆ Activities responding business circumstances• Toward full-scale entry into IoT business, strengthening collaborations also involving
external partners based on the strength of each company within SBU.
• Providing new services that meet needs of customer, such as complete remote staff
dispatching and remote development.
• Strengthening support for digitization in government offices and educational institutions.
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22

Solution SBU••

Aiming at establishment and growth of business for new solutions by using cutting-edge technologies and new
trends in society including work styles.
Continuing active entry in new areas.

Business results trends
Unit: billion yen

Main progress of business
Job search application business “Miidas”
Introduced by 230,000 companies in 6 years
after the service started.

15

15

10.0
10

10

5.7
5

5

0

0

(5)

(10)

-3.2

-5

FY2021(Forecast)

-10

-4.8
FY2020(Actual)

Net sales

Operating profit/loss

Incubation program “Drit”

After the program was renewed in Oct. 2019and invited applicants outside the company, atotal of 5 business concepts have been passed
the assessment and established as business insequence. Currently, the third round is open
for entry.

Competitive advantages•

Knowledge of HR business throughexisting businesses•

Culture that encourages new challenge•

Contact with various corporations andindividuals as an integrated HR services
provider, ability to provide all kinds ofhuman resources, etc.

Business direction of Solution SBU◆ Business investment and development that is a prospective new pillar of
the Group• Creation of new markets through digitization of base businesses➢ Job search application business “Miidas”:
Planning, development and operation of assessment recruiting platform➢ Short-term HR utilization platform business “Sharefull”:
Provision of an on-demand staffing , placement service and labor-related outsourcing
business including payroll calculation• Proposal of new workforce by merging human and technologies (Digital Workforce)➢ Cloud POS business “POS+”: Provision of mobile POS services➢ Dot Homes: Support to acquire guests by utilizing DX of accommodation facilities and data
• Challenge to new areas to realize “Work, and Smile”➢ Creating new businesses under the incubation program “Drit”➢ Entering into new areas through M&A and alliances
Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

23

Asia Pacific SBU•

Aiming to increase sales and improve profitability by increasing sales staffs adequately in China, Singapore andAustralia where economy is quickly recovering while maintaining the efficient and lean cost structure established under
the influence of COVID-19.

Business results trends
Unit: billion yen

278.3

300

Composition of sales
Programmed
2%

6

46%

251.4
250

5

200

4

150

3

100

2

1.1
50

0

0

(50)

-1

-1.5

(100)

FY2020(Actual)
Net sales-2

FY2021(Forecast)

Operating profit/loss

6%
7%
87%

Programmed••

Staffing
Maintenance
OthersStaffing
Placement
OthersStable maintenance businessNo. 1 market share in blue-collar staffing*PERSOLKELLY•••

Operating in the largest* number of regions
among HR service
Top market share* in staffing in Singapore
and Malaysia
Top market share* in placement in Vietnam
and Japanese firms located in China* A survey by PERSOL◆ Reinforcement of integrated management by establishing Regional
Headquarters
•

1

52%

FY 2020PERSOLKELLY

Competitive advantages•

Establishing PERSOL Asia Pacific Pte. Ltd. as RHQ and promoting integration of back office
functions.
Establishing an optimum business portfolio of the entire APAC.

◆ Acceleration of investment in HR technology••

Establishing a technology division in RHQ.
Invested in “Glints,” a technology-driven placement firm that realizes a rapid growth in several
countries in Asia. Plan to promote collaboration with Glints throughout Asia in near future.

◆ Programmed•

Strengthening white-collar staffing service and health care areas where the market is steadily
recovering.

◆ PERSOLKELLY••

Focusing on China where economy has quickly come back to the level before the outbreak of
COVID-19.
Increasing market share in Singapore where growing stably and enjoying top market share.
Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

24

PERSOL’s Status of Corporate Demand Recovery
As the benchmark indicating the status of corporate demand recovery in Staffing SBU, Career SBU and Professional
Outsourcing SBU, the trends of the number of orders received, the number of orders increased and operating rate
are shown, respectively (trends of the number of orders received in Staffing SBU and the number of orders
increased in Career SBU are based on the value as 100 as of February 2020 before the influence of COVID-19
became conspicuous).
All the benchmarks dropped significantly around April 2020 when COVID-19 began to spread, but thereafter
gradually recovered.

••

Career SBU:
Number of orders increased

Staffing SBU:
Number of orders received
110

110

100

100

90

90

80

80

70

70

60

60

50

50

(%)

Professional Outsourcing SBU:
Operating rate

96.0

94.0

92.0

90.0

88.0

30

86.0
2020 Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2021 Jan.
Feb.
Mar.

30

2020 Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2021 Jan.
Feb.
Mar.

40

2020 Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2021 Jan.
Feb.
Mar.

40

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25

Progress of Mid-termManagement Plan 2023

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Numerical Target for FY2022
As the Australian dollar exchange rate has been strengthening since the time of the formulation of the
Mid-term Management Plan, sales forecast for FY2021 will be 1 trillion yen, the same level for those of
FY2022 plan. We consider reviewing the target figures of FY2022 reflecting business progress.

(Unit: billion yen)

FY2020 Results

FY2021 Forecast

FY2022 Plan

Net sales

950.7

1,000

1,000

Operating profit

26.4

35.0

45.0

(2.8%)(3.5%)(4.5%)

43.9

53.5

61.0

(4.6%)(5.4%)(6.1%)

15.8

18.5

26.8

103.12 yen

113.19 yen

147.76 yen(OP Margin)

EBITDA(EBITDA Margin)

Net profit*
Adjusted EPS
Applicableexchange rate

106.76 yen/USD
73.69 yen/AUD

105.00 yen/USD
81.00 yen/AUD

108.00 yen/USD
67.00 yen/AUD*Net profit attributable to owners of parent company
Copyright © PERSOL HOLDINGS CO., LTD. All Rights Reserved.

27

Overall Strategy of Mid-term Management Plan 2023

Disclosed inAug. 2020◆ 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.

Increase social value

Increase economic
value
Shift to a SBU
structure







Identify growth areaStrengthen businesswith technology* Professional Outsourcing



Set indicators for realizing “Work, and Smile” and promote measures toachieve those indicators.
Issue Integrated Report including our activities for promoting 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 the 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).
28
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Progress of Mid-term Management Plan 2023
The progress in FY2020 as the first year of the Mid-term Management Plan 2023 is asfollows:•

In cooperation with Gallup, Inc. ,the U.S. based company, conducted a survey tomeasure the level of accomplishment of “Work, and Smile” in 118 countries in theworld as well as a survey of engagement of PERSOL’s employees.
Issued PERSOL’s first integrated report in November 2020.

•

Carrying out discussion and monitoring based on ROIC at BOD meetings.

Shift to a SBU
structure•

As optimum organizational restructure, PERSPKELLY’s business in Australia wastransferred to Programmed and the business turned into surplus.
Established Investment Committee and other committees to increase the effectiveness ofcorporate governance.

Identify growth areas•

Through drastic business review reflecting the world after COVID-19, we will startestablishing next Mid-term Management Plan.

Strengthen businesswith technology•

Established a technological strategy and strengthen investment in technologies
which promotes building foundations for utilizing personal data beyond the bordersof SBU.

•

Increase social value

Increase economic
value

•

29
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Increase Social Value – PERSOL’s First Integrated Report・Issuing of our first integrated report in November 2020.
・Planning to issue second integrated report with more detailed information around September 2021.
・Aiming to realize the group vision "Work, and Smile" through various initiatives such as sustainability
activities and promotion of new ways of working.

Art work created by a paralym artist
who is an employee of PERSOLTHANKS of the Group is used on the
cover.

Disclosed case examples of “Diversity,
Inclusion & Equality” that is actively
promoted.

Also disclosed financial and nonfinancial data.
30
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Increase Economic Value -Trend of ROICROIC dropped in FY2020 due to the effect of COVID-19, but it is expected to recover in FY2021.
ROIC is calculated by “net operating profit after tax before amortization of goodwill / invested capital (=interest-bearing liabilities + equity capital)" Trend of ROIC
20.0%

15.9%

15.3%
15.0%

13.8%

13.7%
11.3%

11.8%

11.4%

11.1%
10.2%

10.3%

10.0%

9.4%

5.0%
FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021(Forecast)

31
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Strengthen Business with Technology-Technological StrategyOutline of strategy

Future vision• Improvement of profitability through digitalization• Work operation innovation using advanced
technologies• Creation of new businesses/services using advanced
technologies• Recruitment/development of technological humanresources• Raising barriers to entry by business
transformation (BT) and demonstrating
overwhelming competitive strength• Growing into business of high capital efficiency
and high profitability through digitalization

 Progress in FY2020➢

Announced “Future Vision of Work Initiative” that provides support so that all individuals can work in theway they desire and can envision their future by realizing collaborations in data and services beyond theborder of HR service and in cooperation with outside partners.

➢

Promoting building foundations for utilizing personal data beyond the borders of SBU.

➢

Promoting investment in various technologies in each SBU.
【Staffing SBU】
 Employed a cloud ERP for project management in BPO sector. Strategic business management will be
realized through real time visualization and analysis of approx. 2,000 projects in BPO sector with the aimof expanding BPO sector and increasing profitability.
 Realizing labor-hour reduction of approx. 328,000 hours per year by active introduction of RPA.
【Career SBU】
 Promoting in-house manufacturing as having technology-related personnel of over 400 with expertise,including AI engineers. Planning to further increase the number of headcount.
32
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Future Vision of Work Initiative
Providing support for individuals to realize their “Future Vision of Work” so that eachindividual can have their “Future Vision of Work” and act for realization of their vision,
aiming at the embodiment of “Work, and Smile.”[Mechanism of “Future Vision of Work Initiative”](1)Envision an ideal future of work through analysis of labor market data and individual data.
(2)Get closer to the envisioned future of work by using services including jobs, learning andenvironment surrounding work.
(3)Obtain experience best suited to each user by continuously using the services in cycles as above.
The more continue to use it, the more enable to provide theexperience value suitable for that user.
Collaboration with othercompanies’ and partners' services

In-house service
Job

EnvironmentStudy

Job matching(Job change, side work,
staffing, etc.)

Sharing
resume andapplication

Labor market data

Learning(Lecture-style learning,
PBL, etc.)

Sharing dateof learning
history andskills

New service(Underdevelopment)

Environment surrounding work
(Finance, health, child rearing,etc.）

Can get closer toenvisioned future ofworking

Sharing date ofinterest andconcern, etc.

Can envision ideal
future of working

33
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(Reference)
Summary of the Financial
Results for Q4 of FY2020

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Consolidated Quarterly Results
In Q4, sales in Staffing SBU and Professional Outsourcing SBU increased, but sales in Career SBU and
APAC SBU decreased significantly due to the impact of COVID-19, which resulted in decrease in net sales
from the same period of previous year. Operating profit decreased from the same period of previous year
because profit decreased in Career SBU and investments, etc. were made in Staffing SBU.
FY2019(million yen)
Q1

Sales

Q2

FY2020
Q3

Q4

Q1

Q2

Q3

Q4

235,218 243,738 242,204 249,411 238,222 227,533 238,083 246,883
YoY (%)

OperatingprofitOPM (%)EBITDAEBITDA margin (%)

Net profit*

4.1%

7.7%

4.0%

3.7%

1.3%

-6.6%

-1.7%

-1.0%

10,057

10,058

8,287

10,681

9,115

4,760

8,432

4,131

4.3%

4.1%

3.4%

4.3%

3.8%

2.1%

3.5%

1.7%

14,416

14,532

12,41014,997

13,3898,962

12,767

8,791

6.1%

6.0%

5.1%

6.0%

5.6%

3.9%

5.4%

3.6%

5,466

-10,643

4,522

8,266

4,670

2,974

5,173

3,016

*Net profit attributable to owners of parent company

35
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Staffing

Staffing SBU

In Q4, profit decreased as a result of making marketing investments for growth in the next fiscal year
despite increased sales driven by continued remarkable growth of BPO sector and robust business inclerical and administrative sector.
FY2019(million yen)
Q1

Sales

Q2

FY2020
Q3

Q4

Q1

Q2

Q3

Q4

122,189 126,130 130,986 130,871 130,678 129,605 134,086 135,870
YoY (%)

OperatingprofitOPM (%)EBITDAEBITDA margin (%)

Working days

5.5%

10.0%

8.6%

7.2%

6.9%

2.8%

2.4%

3.8%

5,823

5,333

6,806

5,905

8,921

7,387

8,361

4,452

4.8%

4.2%

5.2%

4.5%

6.8%

5.7%

6.2%

3.3%

6,765

6,298

7,759

6,885

9,914

8,283

9,265

5,387

5.5%

5.0%

5.9%

5.3%

7.6%

6.4%

6.9%

4.0%

59

59

61

58

61

58

61

60

Qualitative analysis on Q4
 Sales increased by 3.8% YoY. Main factors of the increase were: unit billing rates increased by 4.8%, operating hours increased by 1.4%, thenumber of active staffs decreased by 6.0%, operating days increased by 2 and 3.4% and other contributions such as sale increase of BPO sector
were up by 0.2%.
 The number of confirmed contracts gradually increased and the number of terminated contracts in Q4 decreased by approx. 20% YoY. The
number of active staffs increased from Q3.
 The number of orders received showed a recovery in Q4 to almost 90% of the level in the same period of previous year from the significant dropin Q1 due to the impact of COVID-19.
 OPM for FY2020 was 5.5%, increased by 0.8pt YoY although OPM in Q4 decreased due to resumed investments in marketing, etc. in Q4 whichwere postponed in H1 because of the concerns about the impact of COVID-19, as well as a special issue of provision for performance-linked bonus.
 As BPO sector showed a significant full-year growth in both sales and profit and its profitability was also increased. BPO sector is expected tocontinuously contribute to future growth of this SBU.
36
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Career

Career SBU

In Q4, operating profit turned around as the business was on a trend of recovery although sales
decreased continuously both in placement business and advertising business due to the impact of
COVID-19.
FY2019(million yen)
Q1

Sales

Q2

FY2020
Q3

Q4

Q1

Q2

Q3

Q4

23,54922,25918,114

19,526

16,827

12,887

13,595

16,258

13.6%

9.6%

-14.6%-17.2%-28.5%-42.1%-24.9%-16.7%

4,703

4,393

1,271

2,900

1,505

-1,367

-466

660

20.0%

19.7%

7.0%

14.9%

8.9%

-10.6%

-3.4%

4.1%

EBITDA

5,414

5,146

2,047

3,697

2,316

-526

395

1,538

EBITDA margin (%)

23.0%

23.1%

11.3%

18.9%

13.8%

-4.1％

2.9%

9.5%

YoY (%)

OperatingprofitOPM (%)

Qualitative analysis on Q4
 Operating profit turned around in Q4 because both placement business and advertising business showed a gradual recovery toward the endof the fiscal year after hitting bottom in Q2 in which the businesses were most significantly affected by COVID-19.
 The number of informal appointments of workers in placement business was on a trend of recovery from the level in Q1 that the businesssuffered tremendous effect of COVID-19, and it has recovered in Q4 to over 80% YoY. In addition, the increased number of orders fromclient companies recovered to approx. 95% YoY.
 The number of orders received in advertising business was also on a trend of recovery, and it has recovered in Q4 over 90% YoY.
 Efforts of cost reduction including marketing costs should continue while investment activities which were postponed in H1 because of the
impact of COVID-19 have been resumed to some extent in Q4.

37
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PRO

Professional Outsourcing SBU

In Q4, overall sales were continuously robust due to strong demand in IT area. Operating profit
increased from Q3 of FY2020 due to an increased operating rate in engineering area, etc.

FY2019(million yen)
Q1

Sales

Q2

FY2020
Q3

Q4

Q1

Q2

Q3

Q4

24,00826,126

26,85028,842

26,41527,281

28,68030,718

8.2%

9.7%

7.2%

10.1%

10.0%

4.4%

6.8%

6.5%

271

1,449

1,519

3,070

315

674

1,481

1,556

1.1%

5.5%

5.7%

10.6%

1.2%

2.5%

5.2%

5.1%

EBITDA

677

1,866

1,982

3,216

683

1,049

1,861

1,958

EBITDA margin (%)

2.8%

7.1%

7.4%

11.2%

2.6%

3.8%

6.5%

6.4%

YoY (%)

OperatingprofitOPM (%)

Qualitative analysis on Q4
 Overall sales increased YoY because demand for IT engineers was strong as a whole and sales in IT area increased by more than 20%,
maintaining a high growth rate.
 Operating profit was decreased YoY due to increased labor costs-to-sales ratio as a result of expansion of personnel in IT area as well as
decreased number of outsourcing orders in engineering area, while it showed a recovery trend.
 Operating rate was stable as it exceeded 97% in IT area at the end of the fiscal year. Additionally, operating rate in engineering area
recovered to around 94% at the end of the fiscal year after hitting bottom in Q2 as a result of the efforts to increase the number of neworders received through reinforcement of collaborations in sales activities within the Group.

38
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Solution

Solution SBU

In Q4, impacted amount of the principle method for revenue recognition of job search application
business applied since this fiscal year was -0.31 billion yen for sales and -0.32 billion yen for operating
profit. Operating loss was recorded as a result of increased investments including increasing headcount.
FY2019(million yen)

Sales
YoY (%)

OperatingprofitOPM (%)EBITDAEBITDA margin (%)

FY2020

Q1

Q2

Q3

Q4

1,351

1,837

1,856

1,967

213.8%

392.9%

281.2%-299-175-22.1%

Q1

Q2

Q3

Q4

952

1,237

1,593

1,918

310.8%-29.5%-32.6%-14.2%

-2.5%

-376

-768

-1,437-1,260-1,095-1,016-9.6%-20.3%-39.0%-150.8%-101.8%-68.8%-53.0%

-248

-111

-302

-340

-1,204-1,018-781-663-18.4%-6.1%-16.3%-17.3%-126.4%-82.3%-49.0%-34.6%

Qualitative analysis on Q4
 Decrease in sales was shrinking after hitting bottom in Q2 because job search application business has driven growth even under thecircumstances with a trend of companies to cut recruitment costs and deteriorated economic confidence in restaurant business due to the impact
of COVID-19. Sales excluding the effect of application of principle method for revenue recognition increased in Q4 YoY.
 Under severe market conditions, KPI of business size expansion showed a continued trend of increase.
L In job search application business, the cumulative number of corporate accounts increased significantly approx. 2.1 times YoY.
L In cloud POS business, the cumulative number of stores that introduced POS increased approx. 1.1 times YoY even under the influence ofdeteriorated economic confidence in restaurant business.

39
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APAC

Asia Pacific (APAC) SBU

In Q4, sales decreased and operating loss was recorded because of delayed economic recovery insome regions although a trend of recovery was seen in general.
(APAC is consolidated with a delay of 3 months, so the results correspond to a period from October to December 2020.)

FY2019(million yen)
Q1

Sales

Q2

FY2020
Q3

Q4

Q1

Q2

Q3

Q4

67,012

69,584

66,24070,40365,98058,684

62,12464,657

-2.5%

-0.4%

-2.9%

-0.5%

-1.5%

-15.7%

-6.2%

-8.2%

-156

-126

-575

451

-116

-561

-303

-539

-0.2%

-0.2%

-0.9%

0.6%

-0.2%

-1.0%

-0.5%

-0.8%

1,874

1,868

960

2,060

1,390

947

1,217

1,128

EBITDA margin (%)

2.8%

2.7%

1.4%

2.9%

2.1%

1.6%

2.0%

1.7%

AU GDP growth
(%)

1.7%

1.4%

1.7%

2.2%

1.4%

-7.0％

-3.8％

-1.1％

Yen / USD

110.2

110.1

109.1

109.0

108.9

108.2

107.5

106.8

Yen / AUD

78.5

77.7

76.3

75.8

71.6

71.1

72.8

73.7

YoY (%)

OperatingprofitOPM (%)EBITDA

Qualitative analysis on Q4
 In PERSOLKELLY, sales decreased YoY due to delayed economic recovery in APAC regions due to the effect of spreading COVID-19 except
Singapore that showed a robust growth of temporary staffing business and China where recovery of placement business was seen. Loss wasrecorded due to decreased sales despite improvement of cost structure including transfer of businesses to Programmed in Australia.
 In Programmed, sales decreased YoY resulting from decreased sales in facility management business although blue-collar staffing business andpainting service in maintenance business showed a recovery. Loss was recorded because recovery was sluggish in business with highly profitable
SME customers despite surplus driven by the integration of businesses in Australia transferred from PERSOLKELLY.

40
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Others
In Q4, sales increased as a result of robust sales in disabled persons hiring business which is mostlyinternal transaction continuing from Q3. However, operating loss was recorded due to the effect of thesettlement at the end of the fiscal year of hiring management expenses for special subsidiaries.
FY2019(million yen)

Sales
YoY (%)

OperatingprofitOPM (%)EBITDAEBITDA margin (%)

FY2020

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

1,731

2,585

2,989

2,803

2,364

2,656

3,428

3,015

22.0%

115.5%

86.8%

83.1%

36.5%

2.7%

14.7%

-7.5%

-3

-202

54

-275

-455

-405

263

-558

-0.2%

-7.8%

1.8%

-9.8%

-19.3%-15.3%

7.7%-18.5%

0

-131

148

-197

-380

-329

350

-462

0.0%

-5.1%

5.0%

-7.0%

-16.1%-12.4%

10.2%-15.3%

Qualitative analysis on Q4
 Sales increased YoY because disabled persons hiring business showed a steady growth thanks to increased internal transaction within Group.
Training business was on a recovery trend after hitting bottom in Q2.
 On the profit side, loss was recorded due to the effect of the settlement of hiring management expenses for special subsidiaries.

41
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Adjustments(Corporate and reconciliation adjustments)
In Q4, operating loss was recorded due to the implementation of investments in relation to the Midterm Management Plan, which had been delayed so far because of the impact of COVID-19 althoughcontinued to reduce SG&A expenses.
FY2019(million yen)
Q1

Sales
YoY (%)

OperatingprofitOPM (%)EBITDAEBITDA margin (%)

Q2

FY2020
Q3

Q4

Q1

Q2

Q3

Q4

-4,624-4,785-4,833-5,003-4,995-4,819-5,425-5,555

-

-

-

-

-

-

-

-

-281

-612

-413

-602

382

292

191

-423

-

-

-

-

-

-

-

-

-66

-404

-184

-325

669

556

457

-96

-

-

-

-

-

-

-

-

42
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Disclaimer

The statements concerning PERSOL HOLDINGS’s future businessperformances in this material such as earnings forecasts are based on
information available as of May 14, 2021 and certain assumptions
deemed to be reasonable by PERSOL HOLDINGS, and do not meanthat PERSOL HOLDINGS promises to achieve these figures. Actual
results may differ materially from the statements due to a variety offactors.
The figures and indicators included in this material have beenreleased to facilitate an appropriate understanding for businessresults and financial status of PERSOL Group. Kindly note that not all
the figures and indicators have been subjected to audit and review byexternal auditors.

43
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