NB: This document is a translation of the Japanese original and is provided for information purposes only.

Summary of Consolidated Financial Results for the 1st Quarter of the
Fiscal Year Ending March 2020 (Based on Japanese GAAP)
9 August 2019
Listedcompanyname:
Stock code:

PERSOL HOLDINGS CO., LTD.
2181

Representative(Title)Inquiries(Title)Stock Exchange Listing: Tokyo

URL https://www.persol-group.co.jp/
Representative Director,(Name) Masamichi Mizuta
President and CEO
Director, Executive Officer(Name) Kiyoshi Seki
(Chief Financial Officer)
Scheduled date to commence
13 August 2019
dividend payments:

Scheduled date to filequarterly report:
Preparation of supplementary
quarterly results explanatory material
yes/no: Yes
Quarterly results briefing session
yes/no: No

TEL 03-3375-2220-(Amounts less than JPY 1 million rounded down)
1. Consolidated Results for the 1st Quarter of the Fiscal Year Ending March 2020 (April 1, 2019 - June 30, 2019)(1) Consolidated Operating Results (cumulative)(% indicates ratio of change from same quarter last year)Sales

1Q of the FY Ending March 2020
1Q of the FY Ended March 2019
Note:
Comprehensive
incomeOperating Profit

JPY Million
235,218
225,929

1Q of the FY
Ending March 2020

6,915

% JPY Million
4.1
10,057
39.6
11,530JPY Million% JPY Million
10,368△12.8
26.5
11,2191Q of the FY
Ended March 2019(515.5%)

Quarterly net profit
attributable to parent
company shareholders% JPY Million%
5,466 △17.6
△7.6
18.5
6,631
22.2

Ordinary Profit

1,123

Quarterly net profit per share

Quarterly net profit per shareafter adjustment for dilution

JPY
23.42
28.43

JPY
－
28.43

1Q of the Fiscal Year Ending March 2020
1Q of the Fiscal Year Ended March 2019

JPY Million

Reference: Equity method investment gain & loss
1Q of FY ending Mar 2020
JPY 124 million (△3.9%) 1Q of FY ended Mar 2019
JPY 129 million (48.8%)
EBITDA (operating profit + depreciation + amortization of goodwill)
1Q of FY ending Mar 2020
JPY 14,416 million (△6.4%) 1Q of FY ended Mar 2019 JPY 15,401 million (33.1%)
Net profit prior to amortization of goodwill (current period net profit attributable to parent company shareholders + goodwill amortization)
1Q of FY ending Mar 2020
JPY 7,600 million (△13.5%) 1Q of FY ended Mar 2019
JPY 8,787 million (25.6%)
EPS after adjustment
1Q of FY ending Mar 2020
34.66(△9.9%) 1Q of FY ended Mar 2019
38.47
(26.2%)Note:
EPS after adjustment: Current net profit after adjustment / (average number of issued shares during the FY - average number oftreasury shares during the FY)
1Q net profit after adjustment: Current period net profit attributable to parent company shareholders ± adjusted items (not including
non-controlling shareholding interests) ± Certain monetary amounts of tax relating to some of the adjusted items
Adjusted items: amounts of amortization relating to intangible fixed assets and goodwill arising from the corporate merger ±extraordinary profit/loss.

(2) Consolidated Financial Position

1Q of the FY Ending March 2020
FY ended Mar 2019
Reference: Equity capital

Total assets
JPY Million
365,717
370,839

1Q of the FY Ending March 2020

Net assets
JPY Million
174,207
170,925
158,682 JPY Million－

1 －Equity ratio
%
43.4
42.0
FY ended Mar 2019

155,593 JPY Million(△79.9%)

2. Dividend Status
Annual Dividend
End 1QFY ended Mar 2019
FY ending Mar 2020

End 2QEnd 3QEnd of FY

TOTAL

JPY

JPY

JPY

JPY

JPY

－
－

10.00

－

15.00

25.00

15.00

－

15.00

30.00

FY ending Mar 2020
(Forecast)

Note: Revision of most recently announced dividend forecast yes/no: No
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 2020 (April 1, 2019 - March 31, 2020)(% indicates ratio of change from: the previous full FY, same quarter in the previous FY)
Current period net
profit attributable to
Net Sales
Operating Profit
Ordinary Profit
parent company
shareholders
JPY
JPY
JPY
JPY
%
%
%
%
MillionMillionMillionMillionnd482,500
6.7
20,8001.7
20,800
0.7
9,600
△19.9
2 Q (cumulative)
990,000
6.9
43,00043,00021,700
Full Year
△2.5
△2.2
△10.9
Reference: EBITDA
March 2020: 61,000 million JPY
Net profit prior to amortization of goodwill
March 2020: 30,300 million JPY
Adjusted EPS
March 2020: 143.71 JPY per share
Note: Revision of most recently announced financial results forecast: No

Current period
net profit per
share
Net Profit
JPY
41.12
92.95

*Explanatory Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in thescope of consolidation): No
New: - Ltd. (company name); Excluded: - Ltd. (company name)(2) Application of special accounting treatment when preparing quarterly consolidated financial statements: No(3) Changes in accounting policies/changes in accounting estimates/restatement of prior period financial statements① Changes in accounting policies due to revisions to accounting standards etc.:
Yes② Changes in accounting policies other than :Yes③ Changes in accounting estimates:
Yes④ Restatement of revised statements:
No
Note: For details please refer to P.11 in the attached material: “2. Quarterly consolidated financial statements &main explanatory notes (3) Explanatory notes regarding quarterly consolidated financial statements “.
(4) Number of fully issued shares (ordinary shares)① Number of fully issued shares at
1Q of fiscal year
ending March 2020
period end (including treasury stock)② Treasury shares at period end

1Q of fiscal year
ending March 2020

(Unit: shares)
236,704,861

FY ended Mar 2019236,704,861

3,252,717

FY ended Mar 2019

3,256,316③ Average number of shares during the1Q of fiscal year
1Q of fiscal year
233,450,628
233,275,125
ending March 2020
ended March 2019
period (cumulative quarter)
Note: Number of treasury shares at the end of period: Includes PHD shares held in the “Director Compensation
BIP (Board Incentive Plan) trust account”, and the “Employee Share Ownership Plan trust account” (“ESOP
Trust”) (1Q of the fiscal year ending March 2020: 573,602 shares, fiscal year ending March 2019: 577,235
shares). Furthermore, PHD shares held in the “Director Compensation BIP (Board Incentive Plan) trust
account”, and the “Employee Stock Ownership Plan trust account” (“ESOP Trust”) are included in treasury
stock which are deducted when calculating the average number of shares held in the period.
*Summaries of quarterly consolidated financial accounts are not subject to quarterly review by Certified Public
Accountants or audit firms.
*Explanation of appropriate usage of financial results forecasts and other special explanatory notes:
Note regarding forward looking statements etc.
The financial results outlook etc. and forward looking statements noted in this material are based on certain
assumptions PHD deems rational and information currently at hand, which are not meant to be taken as an
assurance by PHD that outcomes will be realized. Furthermore, actual financial results etc. may vary greatly due tovarious factors.

－

2 －○ Contents of Attachments
1. Qualitative information regarding the financial results for this quarter ……………………..………………………

4(1) Explanation regarding business performance .……………………………………………………………………

4(2) Explanation regarding the financial position ………………………………………………………………………

6(3) Explanation regarding future forecast information (Consolidated results forecast etc.) ………………………

6

2. Quarterly consolidated financial statements & main explanatory notes ……………………………………………

7(1) Quarterly consolidated balance sheet ……………………………………………………………………………..
(2) Quarterly consolidated profit and loss statement &quarterly consolidated comprehensive income statement …………………………………………………………
Quarterly consolidated profit and loss statement .……………………………………………………………

7

Consolidated cumulative 1st quarter period .……………………………………………………………….

9

Quarterly consolidated comprehensive income statement …………………………………………………

10

Consolidated cumulative 1st quarter period .……………………………………………………………….

10(3) Explanatory notes regarding quarterly consolidated financial statements ……………………………………

11(Explanatory notes regarding ongoing concern assumptions) …………………………………………………

11(Explanatory notes in the event of significant changes in the amount of shareholders’ equity) …………..
(Application of special accounting treatment when preparing thequarterly consolidated financial statements) ……………………………………………………………………
(Changes in accounting policy) …………………………………………………………………………………..

11

9
9

11
11

(Application of IFRS No.16 “Lease”)

11(Changes in accounting policy which are difficult to differentiate from changes in accounting estimates)

11(Segment information etc.) ………………………………………………………………………………………..

12(Important subsequent events) ……………………………………………………………………………………

13

－

3 －

1. Qualitative information regarding the financial results for this quarter(1) Explanation regarding business performance
While the future continues to remain unclear due to uncertainty in overseas economies against the backdrop
of US/China trade tensions etc., Japan's economy in this consolidated first quarter was assisted by various
financial legislative policies and continued to experience moderate economic growth.
Regarding the employment situation, as of June 2019 the ratio of job offers to job seekers (seasonallyadjusted) remained high at 1.61 and the unemployment rate remained low at 2.3%. In an employment
environment which has achieved close to full-employment, human resource companies are confronted by labor
shortages coupled with abundant demand. The market for human resource services has generally remained
strong. PERSOL Group has also performed well as demand from clients in our core temporary staffing businesshas remained strong, and our sales system in the recruitment business has been strengthened. In the overseas
business as well, against the backdrop of vigorous demand for human resources in the Asia Pacific region, sales
has remained strong particularly in the South East Asian region.
Within this environment, PERSOL Group aims to resolve issues relating to diversifying personal work styles
and corporate human resource issues, which are becoming increasingly complex, by applying the collective
strength of PERSOL Group which extends beyond sectors.
In the Temporary Staffing/BPO segment, PERSOL will continue exert its efforts in stabilizing employment for
temporary staffing through proactive measures to comply with the Worker Dispatching Act and various legislative
revisions. Furthermore, by maximizing use of PERSOL’s core system GENESIS to further productivity
improvements and strengthen workforce to job matching for services improvement, the “Kurume Job Coordinator
Center” was newly established in April 2019. Hereafter, PERSOL will integrate matching work for the West Japan
area to the newly established “Kurume Job Coordinator Center” and will apply it endeavor to further raise
productivity and improve services.
In the Recruiting segment, a decision has been made in August 2019 to terminate the casual/part-time
recruitment information service business “an” as of November 2019. As for the “an” business which targets thecasual/part-time employment sector, the business was late in transitioning from paper to Web services and its
competitiveness has been decreasing for the last few years. Faced with this business environment, it was judgedthat it would be difficult to adequately address the needs of clients with the conventional business model for thecasual/part-time work market. Decision was made to focus management resources in the mid-career recruitment
support/job change support sector which is experiencing ongoing rapid growth (job change service “doda” andjob change media advertising business). For the time being, the role as a “for-fee” listing service for part-time
help-wanted ads will come to an end, but this will lead to the creation of new businesses that address thechallenges of hiring/employment in the casual/part-time work sector.
In April 2019, PERSOL INNOVATION Co., Ltd. started its business to accelerate new business and technology
investment. PERSOL will develop new businesses such as the “Sharefull”, a matching platform for job seekers
looking for short-term/short-hours work which began from March 2019, and will proactively invest in technology toraise the level of services for existing businesses.
In the overseas business, within a favorable market environment particularly in the South East Asia region,
proactive sales system expansion succeeded in increasing sales for the PERSOLKELLY segment. However, theintroduction of a common business system for countries in the Australian region did not proceed as planned,
confusion occurred in implementing response measures for clients, and business productivity declined. Recovery
measures currently being implemented will be continued to raise business productivity. In the PROGRAMMED
segment, a new Managing Director was appointed consequent to the retirement of the Managing Director in June
2019, and operations will start under the new organization from October 2019. With signs indicating a slowdown
in the Australian economy, the staffing business has proceeded on acquiring new clients and enhancing sales
activity in growth sectors (growth industries) but such efforts has not accomplished results as planned. However
in maintenance business, major contracts are being acquired against the backdrop of demand for infrastructuralinvestment in Australia. PERSOL will continue to strengthen its competitiveness to expand its business andenhance its presence in the Asia Pacific region in the medium to long-term.
For the aforementioned reasons, sales during this consolidated cumulative 1 st quarter was JPY 235,218
million (up 4.1% year-on-year), operating profit was JPY 10,057 million (down 12.8% YOY), ordinary profit was
JPY 10,368 million (down 7.6% YOY), and quarterly net profit attributable to parent company shareholders was
JPY 5,466 million (down 17.6% YOY).
Business results by segment (before inter-segment/company write-offs) are as follows.
① Temporary Staffing/BPO Segment
Sales in this segment during this consolidated cumulative 1 st quarter period amounted to JPY 131,429 million(up 5.2% year-on-year) and operating profit was JPY 6,311 million (down 8.5% YOY).
Continuing from the previous consolidated fiscal year, sales of JPY 131,429 million was achieved owing tocorporate profits remaining stable and strong demand underpinned by structural shortages of labor. On the
profits side, as the number of operating days decreased due to the long-term holiday accompanying the era
name change in May, operating profit was JPY 6,311 million.

－

4 －② Recruiting Segment
Sales in this segment for the consolidated cumulative 1 st quarter period amounted to JPY 23,549 million (up13.6% year-on-year) and operating profit was JPY 4,703 million (up 11.4% YOY).
Sales in this segment during this consolidated cumulative 1 st quarter period amounted to JPY 23,549 million
due to an increase in the number of contracts closed in the recruiting segment which was underpinned byongoing robust demand for human resources and a shift in awareness relating to job-changing. Although costs
increased to add staff to address robust demand for HR, operating profit reached JPY 4,703 million due to theeffect of growth in sales in the recruiting segment and the full-time employee recruiting ad business.
③ PROGRAMMED Segment
Sales in this segment during this consolidated cumulative 1 st quarter period amounted to JPY 46,444 million(down 9.8% year-on-year) and operating profit was JPY 73 million (down 68.8% YOY).
For the consolidated cumulative 1st quarter period, together with blunt business confidence in the Australianeconomy, the transition to growth sectors in staffing business was belated and sales decreased. In themaintenance business, although sales increased due to long-term large facility maintenance contracts,
decreased income from the staffing business could not be compensated, and sales became JPY 46,444
million. Of this 9.8% year-on-year decrease in sales, 7.8% was due to the impact of exchange rate fluctuations.
Operating profit was JPY 73 million due to decreased yield from the staffing business.
④ PERSOLKELLY Segment
Sales in this segment during this consolidated cumulative 1 st quarter period was JPY 20,568 million (up19.2% year-on-year), and operating loss was JPY 230 million (operating loss in the same period last year was
JPY 76 million).
Sales in this segment during this consolidated cumulative 1 st quarter period amounted to JPY 20,568 million
as a result of expanding the sales system such as by proactively strengthening manpower in response to thebuoyant South East Asian market environment. While there was growth in services predominantly in thetemporary staffing business, business productivity declined as the introduction of the country-common
business system in the Australian region did not proceed as planned. In result, operating loss was JPY 230
million.
⑤ ITO Segment
Sales in this segment during this consolidated cumulative 1st quarter period was JPY 8,986 million (up 25.1%
year-on-year), and operating loss was JPY 345 million (operating loss in the same period last year was JPY 65
million).
Sales in this segment during this consolidated cumulative 1st quarter period amounted to JPY 8,986 million
due to proactive hiring of engineers in response to robust demand such as from increased systems investment
by client corporations. Operating loss was JPY 345 million as a result of increased labor costs associated withimprovements in work conditions and proactive hiring of engineers.
⑥ Engineering Segment
Sales in this segment during this consolidated cumulative 1 st quarter period amounted to JPY 6,373 million(down 1.0% year-on-year) and operating profit was JPY 11 million (down 92.5% YOY).
In the consolidated cumulative 1st quarter period, sales became JPY 6,373 million as a result of diminishedorders from major clients primarily in the electrical sector. Operating profit was JPY 11 million as a result of
increased labor costs associated with hiring of engineers.

－

5 －(2) Explanation regarding the financial position① Assets, liabilities, and net assets
Total assets decreased by JPY 5,122 million compared with the end of the previous consolidated fiscal year.
Current assets decreased by JPY 8,772 million, and fixed assets increased by JPY 3,650 million. The main
reason for the decrease in current assets was a decrease in cash and deposits by JPY 8,407 million. The main
reason for the increase in fixed assets was an increase in right-of-use assets (net price) by JPY 5,066 million.
Liabilities decreased by JPY 8,404 million compared to the end of the previous consolidated fiscal year.
Current liabilities decreased by JPY 2,125 million, and non-current liabilities decreased by JPY 6,279 million.
The main reasons for the decrease in current liabilities was that while current portion of long-term debt
increased by JPY 10,020 million, accrued income taxes decreased by JPY 7,451 million and allowance forbonus decreased by JPY 5,237 million. The main reasons for the decrease in non-current liabilities were an
increase in lease obligations of JPY 3,552 million and a decrease in long-term loans payable of JPY 10,020
million.
Net assets increased by JPY 3,282 million compared to the end of the previous consolidated fiscal year. The
main reason was an increase in retained earnings of JPY 1,956 million due to payment of JPY 3,510 million in
dividend of surplus and posting JPY 5,466 million in quarterly net profit attributable to parent company
shareholders etc.
FY ending Mar 2020
Consolidated cumulative
1st quarter period

FY ended Mar 2019

Return on Assets (ROA)

1.6%

6.8%

Return on Equity (ROE)

3.5%

16.2%

Ratio of operating income to sales

4.3%

4.8%

Ratio of ordinary profit to sales

4.4%

4.8%

Current ratio

140.8%

144.8%

Fixed assets ratio

103.8%

103.5%

Equity ratio

43.4%

42.0%

Total assets

365,717JPY Million

370,839JPY Million

Equity capital

158,682JPY Million

155,593JPY Million

Cash and cash equivalents etc. atend of period

60,571JPY Million

68,969JPY Million② Business and financial challenges that must be dealt with
There were no significant changes in this consolidated cumulative 1st quarter period to the challenges thatmust be dealt with by PERSOL Group.
(3) Explanation regarding future forecast information (Consolidated results forecast etc.)
The consolidated financial results forecast for this year has been disclosed including the consequence oftermination of casual/part-time recruitment information service business “an”.

－

6 －2. Quarterly consolidated financial statements & main explanatory notes(1) Quarterly consolidated balance sheet(Unit: JPY million)
Previous
consolidated fiscal year
(March 31, 2019)
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable-trade
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current Assets
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
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total Assets－

7 －This consolidated
accounting 1st quarter period(June 30, 2019)69,029122,908
7,342
11,251△686
209,845

60,621
120,247
8,276
12,620△693
201,072

3,397
1,303
－
799
2,156
7,657

3,666
1,386
5,066
799
2,265
13,185

10,06991,763
20,539122,372

10,041
89,92520,875
120,842

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

12,801
4,426
13,428△39
30,616
164,644
365,717

(Unit: JPY million)
Previous
consolidated fiscal year
(March 31, 2019)
Liabilities
Current 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
Provision for share benefits
Provision for Directors' share benefits
Provisions - other
Other
Total Non-current liabilities
Total Liabilities
Net assets
Shareholders' 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
incomeNon-controlling interests
Total net assets
Total Liabilities and shareholders' equity－

8 －This consolidated
accounting 1st quarter period(June 30, 2019)

741
5,044
10,00168,307
11,384
14,15911,73014745
22,789144,919784
4,590
20,021
68,344
3,933
13,7526,492
19
722
24,134
142,793

20,00025,748
106
5,042
905
261
291
217
2,421
54,995
199,91420,00015,728
3,659
5,309
877
290
343
63
2,444
48,716
191,50917,47920,396125,677△4,387
159,165

17,47920,396
127,633△4,379161,129

2,346△5,9192,870△5,318△3,572△2,447

15,331
170,925
370,839

15,525
174,207
365,717

(2) Quarterly consolidated profit and loss statement & quarterly consolidated comprehensive income statement(Quarterly consolidated profit and loss statement)(Consolidated cumulative 1st quarter period)(Unit: JPY million)

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
Other
Total non-operating profit
Non-operating expenses
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
Business reorganization losses
Loss on sales 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.
Quarterly net profit
Quarterly net profit attributable to non-controllinginterests
Quarterly net profit attributable to parent company
shareholders

Previous consolidated
This consolidated
cumulative 1st quarter period cumulative 1st quarter period(From April 1, 2018
(From April 1, 2019
to June 30, 2018)
to Jun 30, 2019)
225,929
235,218
175,325
181,391
50,60453,826
39,073
43,76911,53010,057

－

9 －

13
98
60

16
110
195

129

124

23
325

11
458

244
194
102
95
637
11,219

116
22
－
8
147
10,368

9
－
－
56
65

29
7
33
－
69

－
3
14
18
11,267
2,877
1,427
4,305
6,961

495
－
－
495
9,942
2,846
1,370
4,217
5,725

329

259

6,631

5,466

(Quarterly consolidated comprehensive income statement)(Consolidated cumulative 1st quarter period)(Unit: JPY million)

Quarterly net profit
Other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Equity interest in affiliated companies accounted
for by the equity-method
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toparent company shareholders
Quarterly comprehensive income attributable tonon-controlling interests

Previous consolidated
This consolidated cumulative
cumulative 1st quarter period
1st quarter period(From April 1, 2018
(From April 1, 2019
to June 30, 2018)
to Jun 30, 2019)
6,961
5,725

－

10 －

△320
△5,348

523
655

△0

－

△168

11

△5,838
1,123

1,190
6,915

1,086

6,591

37

324

(3) Explanatory notes regarding quarterly consolidated financial statements(Explanatory notes regarding assumptions of ongoing companies)
No applicable matters.
(Explanatory notes in the event of significant changes in the amount of shareholders’ equity)
No applicable matters.
(Application of special accounting treatment when preparing the quarterly consolidated financial statements)
No applicable matters.
(Changes in accounting policy)(Application of IFRS No.16 “Lease”)
From this consolidated 1st quarter accounting period, IFRS No.16 “Lease” (January 13, 2016. Hereafter referred
to as “IFRS No.16”) will apply to controlled foreign corporations which apply to International Financial ReportingStandards (IFRS). With the application of IFRS No.16, in principle, all borrower lease assets and liabilities will berecognized.
With the application of this standard, the consolidated balance sheet will show an increase in right-of-use
assets (net price) of JPY 5,066 million, other current liabilities JPY 1,736 million, and lease obligations JPY 3,570
million.
The impact of this change on profits and losses for this consolidated cumulative first quarter period was minor.
(Changes in accounting policy which are difficult to differentiate from changes in accounting estimates)(Change in depreciation method for tangible fixed assets)
As for the depreciation method for tangible fixed assets (except lease assets) of PERSOL and domestic
consolidated subsidiaries, the declining balance method that was mainly employed before has been changed toa straight-line method from this first quarter.
PERSOL began a joint venture in the Asia Pacific region on the occasion of its strategic business tie-up with amajor U.S. human resource services company Kelly Services Inc. in 2010, and expanded its overseas
development by acquiring shares of Programmed Maintenance Services Limited in 2017. As there is increasingneed to integrate Group accounting procedures, and as the long-term stable operation of tangible fixed assets
can be anticipated hereafter upon reassessing the actual usage of tangible fixed assets on the occasion of therelocation/consolidation of the PERSOL Head Office in January 2019, the straight line method was judged tomore accurately reflect the usage situation.
For the consolidated cumulative 1st quarter period, the impact on the consolidated quarterly financial
statements is deemed to be minimal.

－

11 －

(Segment information etc.)
1. Information regarding sales, profits or losses for each reporting segment
Previous consolidated cumulative 1st quarter period (from April 1, 2018 to June 30, 2018)(Unit: JPY million)
Reporting segment

Temp/BPO

Recruiting

PROGRAMMEDPERSOL KELLYITOEngineering

124,245

20,47851,495

17,2535,501

6,437 225,412

694

259

－

1

1,680

Total amount

124,940

20,73851,495

17,254

7,181

Segment profits
or losses (△)

6,897

4,222

234

△76

△65

Total
amountOther
Note 1:TOTAL

Quarterly
Adjustment consolidateds
profit and loss
Note 2:statement
Note 3

Sales
Sales toexternalclients
Internal sales
or transfers
betweensegments

1

514 225,927

225,929

3,541△3,541－

1,418 229,468△3,539225,929

87

11,5302,637

903

6,439 228,049
146

1

11,35984

11,443This consolidated cumulative 1st quarter period (from April 1, 2019 to June 30, 2019)(Unit: JPY million)
Reporting segment

Temp/BPO

Recruiting

PROGRAMMEDPERSOL KELLYITOEngineering

130,614

23,26846,444

20,562

6,851

6,371 234,113

815

280

－

6

2,134

Total amount

131,429

23,54946,444

20,5688,986

Segment profits
or losses (△)

6,311

4,703

73

△230

△345

Total
amountOther
Note 1:TOTAL

Quarterly
Adjustment consolidateds
profit and loss
Note 2:statement
Note 3

Sales
Sales toexternalclients
Internal sales
or transfers
betweensegmentsNote1

1,097 235,210

3,238

10,522

235,218

4,627△4,627－2,486 239,837△4,619235,218

10,326△268

10,057

1,389

6,373 237,351
11

7

△196

1. The “Other” category refers to business segments that are not included in reporting segments that
include Group-wide business functions, education and training, business related to disabled,facility management, etc.
2. Details of these revisions are as follows.
Previous consolidated
cumulative 1st quarter period(Unit: JPY million)
Current consolidated
cumulative 1st quarter period

Inter-segment write-offs

△78

△66

Company-wide revenues *1

2,299

2,397

Company-wide expenses *2△2,133△2,599

87

△268

TOTAL

*1. Company-wide revenues: mainly business management fees from Group companies, anddividends received.
*2. Company-wide expenses: mainly expenses arising in PERSOL related to management ofGroup companies.
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12 －3. Segment profit and loss: Adjusted with operating profit calculated in the quarterly consolidated
profit and loss statement.
2. Matters relating to reporting segment changes etc.
Previous consolidated cumulative 1st quarter period (from April 1, 2018 to June 30, 2018)
No applicable matters.
This consolidated cumulative 1st quarter period (from April 1, 2019 to June 30, 2019)No applicable matters.
3. Information concerning impairment losses of fixed assets or amortization of goodwill etc. in each reporting
segment(Important impairment losses relating to fixed assets)
Previous consolidated cumulative 1st quarter period (from April 1, 2018 to June 30, 2018)
No applicable matters.
This consolidated cumulative 1st quarter period (from April 1, 2019 to June 30, 2019)
Termination of the casual/part-time work sector business “an” was decided at the board of directors
meeting of August 1, 2019. As a result of this event, an impairment loss of JPY 426 million was booked for
the Recruiting segment.
This impairment loss is recorded as a loss from restructuring in the quarterly consolidated income
statement.
(Important subsequent events)(Partial close of business for PERSOL consolidated subsidiaries)
At the board of directors meeting held on August 1, 2019, a resolution was made to end the “an” service
operated by PERSOL CAREER CO., LTD., a consolidated subsidiary of PERSOL HOLDINGS.
1. Description and scale of business to be terminatedBusiness description: casual/part-time work sector business “an” operated by PERSOL CAREER CO., LTD.
Business scale: JPY 13,440 million in sales for the period ended March 2019
2. Reason for business termination“an” was established as “Daily Arbeit News” in 1967 and has entered its 52nd year this year. The business hasdeveloped the casual/part-time labor market and is Japan's oldest casual/part-time job-offer magazine which
provided optimal matching for many people and organizations. However, it was late in transitioning from a paper
to Web-based service which resulted in declining competitiveness in recent years.
Faced with this business environment, the Group has judged that it would be difficult to adequately address theneeds of clients with the conventional business model for the casual/part-time work market. Therefore, thedecision was made to end the “an” business and to focus management resources in the mid-career recruitment
support/job change support sector which is experiencing rapid ongoing growth (the recruiting business of jobchange service “doda” and job change media advertising business).
3. Period of business termination
Sales activities will end on September 27, 2019 and the business will close on November 25, 2019.
4. Significant impact of business closure on sales activities etc.
The loss relating to this business closure is expected to be approximately JPY 3,500 million in operational
support costs to transfer sales from main agencies to “doda” during this consolidated accounting period, and loss
from restructuring such as loss from impairment of fixed assets. Of this, JPY 495 million is reported as an
extraordinary loss for this consolidated cumulative 1st quarter period.
(Acquisition of treasury shares)
At a Board of Directors meeting on August 1, 2019, a decision was made to acquire treasury shares pursuant to
Article 156 of the Companies Act of Japan, as applied pursuant to and reinterpreted in Paragraph 3, Article 165 of
the Companies Act of Japan.
1. Reasons for acquisition of treasury shares
Acquisition of treasury shares to enhance capital efficiency and enable the execution of an agile capital
strategy to address changes in the future management environment.
2. Matters to be resolved relating to acquisition of treasury shares(1) Type of shares subject to acquisition:PERSOL HOLDINGS ordinary shares(2) Number of shares able to be acquired:3,500,000 (upper limit)(In proportion to total number of issued shares (excluding treasury shares): 1.50%)(3) Total amount to acquire said shares:
JPY 5,000 million (upper limit)(4) Acquisition period:
August 2, 2019 - December 30, 2019(5) Method of repurchase:
Market purchase on the Tokyo Stock Exchange
NB: This document is a translation of the Japanese original and is provided for information purposes only.
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13 －