Slide 1: Earnings Presentation Fiscal Year Ended February 2019
Earnings Presentation Fiscal Year Ended February 2019 CAREERLINK CO., LTD. April 23 (Tue.), 2019 President & Representative Director Stock Code：6070 President & Executive Officer Tokyo Stock Exchange, First Section Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved. Motoaki Narusawa
Slide 2: Precautions
Precautions Forecasts, plans and other forward-looking statements concerning Careerlink in this presentation are based on judgments using information that was available at the time of this presentation. The outlook may differ significantly because of changes in the economy and the human resources in
Slide 3: Agenda
Agenda I. Financial Highlights for the FY2/19 II. Annual Plan for FY2/20 Ⅲ. Medium-Term Management Plan (FY2/20-FY2/22) Ⅳ. Reference Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved. 3
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Intentionally Blank Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved. 4
Slide 5: I. Financial Highlights for FY2/19
I. FINANCIAL HIGHLIGHTS FOR FY2/19 Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.
Slide 6: Consolidated Financial Highlights (Sales)
Consolidated Financial Highlights (Sales) Fiscal year sales were negatively affected by a substantial decrease in the volume of work at a large private-sector BPO project and by lower sales at projects involving government benefit payments and Japan’s social security and tax number system (My Number
Slide 7: Consolidated Financial Highlights (Profits)
Consolidated Financial Highlights (Profits) Earnings were lower for a number of reasons. The gross profit decreased because of the two factors explained earlier that negatively affected sales. In addition, the operating margin of new orders was smaller than at the higher-margin large private-sector
Slide 8: Segment Information (1)
Segment Information (1) 【 Clerical human resource services 】 New orders from large BPO companies and revisions to fees charged for services. In addition, there were substantial sales from a new order involving the processing of cashless payments. The clerical human resource business of newly consoli
Slide 9: Breakdown of Clerical human resource services: Business Process Outsourcing
Breakdown of Clerical human resource services (1)Business Process Outsourcing The new order for cashless payment processing also contributed to this sector’s performance. However, sales in this sector decreased 21.0% to 9,006,227 thousand yen mainly because of the large decline in the volume of outs
Slide 10: Breakdown of Clerical human resource services: Customer Relationship Management
Breakdown of Clerical human resource services (２)Customer Relationship Management Sales increased for services provided to telemarketing companies and financial institutions. In addition, sales benefited from the inclusion of CRM business sales of 546,437 thousand yen at newly consolidated subsidiar
Slide 11: Breakdown of Clerical human resource services: Office Services
Breakdown of Clerical human resource services (３) Office Services New public and private-sector temporary staffing orders increased and the office services business sales of 1,988,994 thousand yen of newly consolidated subsidiary JBS also contributed to sales growth. As a result, sales increased 282
Slide 12: Segment Information (2)
Segment Information (2) 【Manufacturing human resource services】 Due to a large volume of orders in the food processing and manufacturer process categories, segment sales increased 20.3% to 3,112,110 thousand yen. （million yen） 3,500 3,112 3,000 2,587 Sales ￥3,112 million 2,500 Up 20.3% 2,000 （+0.3
Slide 13: Statements of Income
Statements of Income FY2/18 Plan FY2/19 Actual FY2/19 (Consolidated) (Consolidated) (Consolidated) Year on Year Vs. Plan Amount Amount Amount Variance （Million yen） （Million yen） （Million yen） （Million yen / %） 1,849 △ 417 Sales 16,774 19,042 18,624 11.0 △ 2.2 Clerical Human 14,186 15,658 15,246 1,0
Slide 14: Financial Condition
Financial Condition End of FY2/18 End of FY2/19 (Consolidated) (Consolidated) Amount Amount Variance Main reasons for changes (Million yen) (Million yen) (Million yen) (Million yen) 5,055 5,169 Current assets 114 Cash and deposits △400 87.7% 87.4% Intangible assets △23 Non-current 708 747 Notes and
Slide 15: Cash Flows
Cash Flows FY2/18 FY2/19 (Consolidated) (consolidated) Amount Amount Main reasons for changes (Million yen) (Million yen) (Million yen) Profit before income taxes +290 Increase in notes and accounts receivable △72 Operating activities 238 50 Decrease in payables △60 Income taxes payed △113 Acquisitio
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Intentionally Blank Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved. 16
Slide 17: II. Annual Plan for FY2/20
Ⅱ. ANNUAL PLAN FOR FY2/20 Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.
Slide 18: Annual Plan for FY2/20 (consolidated)
Annual Plan for FY2/20 (consolidated) FY2/19 FY2/20 Actual Plan Amount Amount VS.FY2/18 VS.FY2/19 (Million yen) (Million yen) Sales 18,624 11.0% 21,668 16.3% Operating profit 187 422 △ 66.0% 124.9% 【% to Sales】 【1.0%】 【1.9%】 Ordinary profit 290 419 △ 52.3% 44.5% 【% to Sales】 【1.6%】 【1.9%】 Profit att
Slide 19: Business Strategy FY2/20 (1)
Business Strategy FY2/20(1) Speed up establishment of a base to accomplish the medium-term plan goals ・Capture more orders for cashless payment processing operations. ・Create new services that target the launch of 5G by mobile carriers and other technological advances in order to build a stronger cu
Slide 20: Business Strategy FY2/20 (2)
Business Strategy FY2/20(2) ・To increase employee satisfaction, improve compensation and benefits based on current market conditions, provide support Clerical for achieving career goals and offer a variety of formats for Human people to do their jobs. These measures will improve employee Resource re
Slide 21: III. Medium-Term Management Plan (FY2/20-FY2/22)
Ⅲ. MEDIUM-TERM MANAGEMENT PLAN (FY2/20-FY2/22) Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.
Slide 22: Goals of the Daiko Securities Business Alliance
Goals of the Daiko Securities Business Alliance On February 23, 2018, Japan Business Service (JBS), which was a wholly owned subsidiary of Daiko Securities Business (DSB), became a wholly owned subsidiary of Careerlink. Also, a capital and business alliance agreement was signed with DSB. (1) March 3
Slide 23: Growth of Sales in the Sales Human Resource Services Business
Growth of Sales in the Sales Human Resource Services Business Sales growth and a stronger customer base for cashless payment processing ・Started cashless payment activities in Oct.2018, mainly in part of the Tokyo Actions area in Nov.2018, started expanding Tokyo area coverage and taking steps for n
Slide 24: Medium-term Strategic Goals
Medium-term Strategic Goals Make sales human resource services the third core business, increase the size of all business sectors and build a foundation for sustained growth. ・Become more competitive in the temporary staffing market ・Target high-volume BPO projects in the private and Clerical human
Slide 25: Business Development
Business Development CAREERLINK CO., LTD 100% 88.1% Japan Business Service Co., CAREERLINK Ltd. FACTORY CO., LTD 100% Tokyo Jidosha Kanri Corporation Clerical human resource Manufacturing human Sales resource services services human Others Other Business Food resource Customer Office Manufacturing/
Slide 26: Goals (1)
Goals(1) FY2/19 FY2/22 Actual (Million yen) Plan (Million yen) Sales 18,624 25,953 Operating profit 187 673 【% to Sales】 【1.0%】 【2.6%】 Ordinary profit 290 670 【% to Sales】 【1.6%】 【2.6%】 170 438 Profit attributable to owners of parent 【% to Sales】 【0.9%】 【1.7%】 Copyright（C）2018CAREERLINK CO.,LTD. All
Slide 27: Numerical Goals (Sales)
Numerical Goals (Sales) Business Process Outsourcing Customer Relationship Management Office Services Manufacturing human resource services UP 39.4% VS.FY2/19 Others （Billion yen） 300 259 236 216 200 186 100 0 FY 2/19 FY 2/20 FY 2/21 FY 2/22 (Actual) (Plan) (Plan) (Plan) Copyright（C）2018CAREERLINK C
Slide 28: Numerical Goals (Profits)
数値目標（利益） VS. FY2/19 Operating profit +258.7% Ordinary profit +131.1% （billion yen） Profit attributable to owners of parent +156.3% 8 6.7 6.7 6 5.4 5.3 4.2 4.1 4.3 4 3.5 2.9 2.8 1.8 1.7 2 0 FY 2/19 FY 2/20 FY 2/21 FY 2/22 (Actual) (Plan) (Plan) (Plan) Operating profit Ordinary profit Profit attributa
Slide 29: BPO Business
BPO Business Add sales human resource services to the growth of this business to establish a powerful foundation for the entire Careerlink Group ・ Use joint activities with Daiko Securities Business for growth of services for financial institutions and system integration companies. Goals ・ Build a b
Slide 30: CRM Business
CRM Business Increase capabilities in areas outside Japan’s major metropolitan areas for attracting people registered for temporary placements and matching the skills of these people with the requirements of clients Goals ・ Target demand at telemarketing companies in areas outside Japan’s major metr
Slide 31: Office Services Business
Office Services Business Improve profitability at Careerlink and Japan Business Service ・ Become the first choice for office temporary staffing services by maintaining friendly and sincere relationships with every member of the temporary placement workforce. Goals ・ Continuously negotiate service fe
Slide 32: Manufacturing Human Resource Services
Manufacturing Human Resource Services Expand operations to establish a nationwide presence with the food sector as the core business ・Continue to expand this business, chiefly by serving food processing companies. ・Grow in categories that can use housewives, foreigners and seniors and provide Goals
Slide 33: Shareholder Distributions (1)
Shareholder Distributions (1) In accordance with the basic policy for shareholder distributions, shareholders will receive an annual dividend of ¥10 per share and QUO cards (¥500 for 100 to 199 shares, ¥1,000 for 200 to 499 shares and ¥2,000 for 500 shares or more). Careerlink may consider additiona
Slide 34: Shareholder Distributions (2)
Shareholder Distributions (2) Shareholder Gift Record date: End of August Gift: Original QUO card 100 to less than 200 shares ⇒ ¥500 200 to less than 500 shares ⇒ ¥1,000 500 shares and above ⇒ ¥2,000 Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved. 34
Slide 35: IV. Reference
Ⅳ. REFERENCE Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.
Slide 36: Company Overview
会社概要 Head Office Nishi-Shinjuku 2-1-1, Shinjuku Ward, Tokyo Chairman & Representative Director: Yasuhiko Kondo Representative President & Representative Director: Motoaki Narusawa Established October 1st, 1996 Clerical Human Resource Service Business Main Corporate Business Process Outsourcing Act
Slide 37: Significant Events and Sales Growth
10,000 15,000 20,000 25,000 0 5,000 Company established to provide （Million yen） general temporary staffing ‘96 services Received approval for a general temporary staffing service, started supplying office and call center ‘97 workers, started what is now the Customer Relationship Management business
Slide 38: Business Activities (1)
Business Activities (1) (1) Business Process Outsourcing Business process outsourcing involves the planning, design and implementation of selected activities for government agencies, companies and other organizations. Activities Business processes by Careerlink alone or by using a BPO vendor Pro
Slide 39: Business Activities (2)
Business Activities (2) (2) Customer Relationship Management (3) Office Services The use of data systems at contact centers and other locations to establish long-term relationships with customers Activities Activities Temporary staffing and permanent placement services for Speedy temporary staff
Slide 40: Three Key Strengths
Three Key Strengths ◆Major examples of large projects 1 Plans for both higher efficiency and quality Business Process Outsourcing (More than 500 workers) • Proposals that encompass everything from business process FY2007 Tokyo area 2,000 designs to production, delivery, quality assurance and operati
Slide 41: Three Key Strengths (1)
Three Key Strengths (1) １ Plans for both higher efficiency and quality Example of higher efficiency by handling every step of an order beginning with defining the requirements Requirement Proposal of Operations and definitions solutions Quality Assurance − Produce reply document data − Assignment of
Slide 42: Three Key Strengths (2)
Three Key Strengths (2) ２ Able to start operations quickly and handle large volumes of work • Capable of quickly setting up a business process center operating framework and starting operations • Workforce proposals using an exclusive matching system to select people who meet the requirements of eac
Slide 43: Three Key Strengths (3)-1
Three Key Strengths (3)-1 ３ A framework for increasing workers’ skills and job satisfaction Workforce motivation management Age Composition of the Temporary A system where Careerlink and employees aim for growth 40% Placement Workers and the same goals Opportunities to advance based on skills and
Slide 44: Three Key Strengths (3)-2
Three Key Strengths (3)-2 Sending workers in teams improves efficiency Supervisor Supervisor Supervisor Transfers Transfers ＜Task A＞ ＜Task B＞ ＜Task C＞ • Document sorting • Data input • Replies/Error checks • Scanning, other activities • Data examinations, other • Telephone confirmations, activities
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Intentionally Blank Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved. 45
Slide 46: Contact: Corporate Planning Department
Dedicated to sincerity and excellence for human resource services Contact: Corporate Planning Department 33F Shinjuku-Mitsui Bulg., Nishi-Shinjuku 2-1-1, Shinjuku Ward, Tokyo 【 ＴＥＬ 】81-3-6311-7321 【 ＦＡＸ 】81-3-6311-7324 Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.