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Mid- to Long-term Strategic Policy for 2030

The PERSOL Group will offer much greater value and grow further amid various environmental changes to come in order to contribute to sustainable society. To achieve that, PERSOL has developed the value creation story (mid- and long-term business plan) for the period through 2030.

Value Creation Story

To realize our Group Vision “Work, and Smile”, we have designed a cycle of corporate activities and social contributions as our value creation story. We make our promises to transforming society and further sophisticate the accumulated resources of creating values as our strength, which will lead to the growth of our business activities.
As a consequence, we will improve our social and economic values to create new value. At the same time, it will contribute to the achievement of SDGs(Sustainable Development Goals) adopted by the United Nations.

PERSOL’s promise to society

Change of work environment perceived by PERSOL

Era of 100-year lifespan

As healthy life expectancy becomes longer, we constantly review various values in relation to work, such as rewarding job, response to diverse working styles and reeducation.By supporting each of working individuals through their life, we will create a society where one can live an affluent life through work.

Advancing technologies and AI

We contribute to the improvement of productivity of individuals, organizations and society by actively making investments in the areas where robots or AI can replace human workforce. At the same time, we identify and provide the jobs in which value can be created only by human skills in order to create society where individuals live happily through work.

社会への約束

We propose new styles of working and employment in the era that many people live to be 100 and contribute to the improvement of work engagement for all individuals, and thereby realize “Work, and Smile”.

Group key strategy

Focusing on each individual

We make priority investments on the activities that contribute to the increase of work engagement for all working individuals supported by PERSOL.
By asking “What is better job?”, “What is better style of work?”, and “What is better life?”, from a viewpoint of a “working individual”, we create and support diverse work that will shape our future.
More specifically, we provide work opportunities and insights best suited to respective life stages, aptitude and ability of individuals. We serve as partner that helps working individuals not only when finding a job but for lifelong career, additionally providing them with support for matters other than work.
We also provide individuals with opportunities to study so that they can have enough career options to choose from on a continual basis at all life stages.

Innovating through technologies

By making the best use of technologies and promoting digital transformation, we propose new styles of working and employment.
We build the infrastructure for analyzing and utilizing the enormous personal and corporate data we accumulated in the past, and promote digitization of platform businesses including temporary staffing and job placement to further upgrade those businesses.
In addition, we create new businesses for future by reconsidering the conventional values we provided from a perspective of utilizing cutting-edge technologies.

Extending our value globally

We will establish a management system to provide values from Japan, which already faces many work-related challenges ahead of other nations, to the Asia-Pacific region.
We will contribute to the solution of social challenges around the world to realize our Group Vision “Work, and Smile.”

Business domain

We have five business domains: Staffing SBU and Career SBU that provide services of optimally matching people and organizations, Professional Outsourcing SBU that contributes to enriching society with the strength of people and technology, Solution SBU that creates new services with cutting-edge technology to open up possibility, and Asia Pacific SBU that provides services of optimally matching people and organizations in countries overseas.

SDGs which PERSOL can contribute to the achievement

To realize our Group Vision “Work, and Smile,” we will further promote our business to contribute to the SDGs. Among them, we will put effort into realizing the five especially important SDGs of “Goal 4: Quality Education,” “Goal 5: Gender Equality,” “Goal 8: Decent Work and Economic Growth,” “Goal 9: Industry, Innovation and Infrastructure,” and “Goal 10: Reduced Inequalities,” while we will also help develop and employ personnel who can contribute to fulfilling all 17 goals at the same time.

Sustainable development policies(Japanese)



Overall Strategies in Group Mid-term Management Plan 2023

The Policy of Group Mid-term Management Plan 2023, which covers the first 3 years for the plan through 2030, defines the 3-year period as the term to establish the foundations for growth by sophisticating the business and improving the operation base, so that the PERSOL Group can provide more value for society through the realization of “Work, and Smile”.

Details of the Policy of Group Mid-term Management Plan 2023 developed based on PERSOL's value creation story toward 2030

Increase social value
  • Create “Work, and Smile” index and implement measures that will contribute to improvement of component indicators to achieve the Group Vision
  • Promote ESG and disclose activities of the PERSOL Group in an integrated report
Increase economic value
  • Shift from the management focusing on single year P/L to the management that realizes sustainable growth of corporate value
  • Introduce ROIC and other indicators of return on capital to improve the corporate value of the entire Group
Shift to a strategic business unit (SBU) structure
  • Position Professional Outsourcing SBU as third pillar of operations while continuing to strengthen Staffing SBU and Career SBU, which underpin the PERSOL Group profitability
  • Consolidate management under Asia Pacific SBU and improve profitability through enhanced cost synergy
Identify growth areas
  • Actively pursue investment opportunities, including M&A, to cement Professional Outsourcing SBU as the PERSOL Group’s third pillar of operations
  • Actively promote creation of new business in Solution SBU
Strengthen business with technology
  • Boost productivity and customer satisfaction through investments in digital transformation(DX)

Strategies of Group and Each SBU

Group
  • Shift to the SBU structure, and realize a new form of management with focusing on return on capital, using ROIC and other indexes.
  • Aggressively invest in the Professional Outsourcing SBU and Solution SBU for future growth.
Staffing
  • Establish a basis as the steadfast top company in Japan.
  • Increase profitability even further.
Career
  • Redefine the growth model to enhance the strength of data-driven business improvement to the level of competitive advantage.
  • Will ensure compatibility between high growth rate and profitability after the market recovery.
Professional
Outsourcing
  • Address activities to create synergy within the SBU and expand business scale remarkably through M&A.
Solution
  • Monetize new businesses and promote new business development activities.
  • Ensure a high growth rate and making profit in FY2022.
Asia Pacific
  • Increase profitability through back-office integration of PERSOLKELLY and PROGRAMMED and other means.

Numerical Target

The impact of COVID-19 appears unavoidable, but in accordance with the general policy set in the Group Mid-term Management Plan 2023, the PERSOL Group will recover the profitability to building foundations for dramatic growth in and beyond 2023.

Results for fiscal year ended March 2020Estimates for fiscal year ending March 2023
Sales970.5billion yen1,000billion yen
Operating profit
(Operating profit margin)
39billion yen
(4.0%)
45billion yen
(4.5%)
EBITDA
(EBITDA margin)
56.3billion yen
(5.8%)
61billion yen
(6.1%)

Financial Strategy

For improving corporate value, return on capital will be introduced as an important indicator, and a capital cost-oriented management system realized with the target of at least "ROIC of 10%". The IFRS are scheduled for introduction in fiscal year ending March 2024, and the adjusted EPS will be constantly released for each term based on the net profit prior to amortization of goodwill.
With regard to shareholder return, in view of the future introduction of IFRS, the basic policy changed to a dividend payout ratio of 25% based on the adjusted EPS. In addition, the acquisition of treasury stock will be judged, considering the situation where the stock price is below the appropriate level and the investment execution status comprehensively.

Introduction of return on capital for increasing corporate value
  • From a viewpoint of increasing corporate value, shift to a policy focusing on return on capital from the existing one focusing on P/L.
  • In view of future introduction of IFRS, PERSOL’s ROIC will be calculated based on the net operating profit after tax prior to amortization of goodwill divided by invested capital (=liabilities with interest + shareholder’s equity).
  • A rate over 10% is set as a minimum standard for the fiscal year ending March 2023.
IFRS introduction in the future
  • IFRS is planned to be applied in the fiscal year ending in March 2024 which has been put off due to acquisitions overseas.
  • In view of future introduction of IFRS, adjusted EPS based on net profit prior to amortization of goodwill will be continuously disclosed.
Shareholder returns
  • Basic policy is a dividend payout ratio of 25% of the adjusted EPS.
  • Adjusted EPS is based on net profit before amortization of goodwill excluding effects of extraordinary income/loss. It is therefore expected to be able to provide dividend at a relatively stable level.
Cash position
  • The optimum cash position is defined as a net cash/debt within 1.0 time of EBITDA.
  • In case of an excessive cash as a result of investments not implemented as planned or excessive debts as a result of implemented investments, the policy is as follows:
    - If a net cash exceeds 1.0 time of consolidated EBITDA, measures of strengthening shareholder return such as acquisition of treasury stock will be considered.
    - If a net debt exceeds 1.0 time of consolidated EBITDA, measures to strengthen capital such as equity finance will be considered.

Basic Policy on Governance

The PERSOL Group will exert continued efforts for the improvement of its corporate governance as the foundation for all efforts to realize sustainable corporate growth and the increase of corporate value over the mid-to long-term and solve social issues through its businesses.

Policy on Corporate Governance

Strengthened the monitoring function of the Board
  • Shifted to a monitoring-focused Board.
  • Made the ratio of Independent Directors at least half in principle.
  • Established a voluntary Nomination and Compensation Committee which shall be composed of a majority of Independent Directors
Accelerated management decision-making
  • Delegated the decision-making on business to the CEO(*1).
  • Established the Investment Committee under the HMC(*2) to deliberate from a specialist viewpoint on significant business investments in order to assist the HMC’s decision-making.
Establishment of HMC
  • Established the HMC to assist the CEO in decision-making.
  • The decisions on the execution of important operations delegated to the CEO by the Board shall be decided by the CEO on the condition that the HMC has made an affirmative resolution.

*1 CEO=Chief Executive Officer
*2 HMC=Headquarters Management Committee

Policy on Group Governance

Accelerated management decision-making by shifting to an SBU structure
  • Appropriately delegated the decision-making on business to each SBU.
  • The main roles of the headquarters include promotion of corporate strategies for the entire group, optimal allocation of management resources, creation of synergies between subsidiaries, and oversight of subsidiaries.
Strengthened Group's internal control systems
  • Constructed a group-wide framework for oversight of subsidiaries.
  • Established internal four committees under the HMC to deliberate significant group-wide matters; Investment Committee, Risk Management Committee, Human Resources Committee and Technology Committee.*

* Technology Committee established in October 2020

Major Group-wide Committees

NameObjective
The Investment CommitteeDiscuss important matters related to the Group's overall investment (M&A) projects (chairperson: CFO [*1]).
The Human Resources CommitteeDiscuss the Group's human resources strategy and succession planning for key talent (chairperson: CHRO [*2]).
The Risk Management CommitteeDiscuss the overall risk management of the Group (chairperson: CLO [*3]).
The Technology ComitteeDiscuss the Group's technology strategy and related management resources (chairperson: CIO [*4]).

*1 CFO=Chief Financial Officer
*2 CHRO=Chief Human Resources Officer
*3 CLO=Chief Legal Officer
*4 CIO=Chief Information Officer