Slide 1: Earnings Presentation Fiscal Year Ended February 2020
Earnings Presentation Fiscal Year Ended February 2020 CAREERLINK CO., LTD. April 17 (Fri.), 2020 President & Representative Director Stock Code：6070 President & Executive Officer Tokyo Stock Exchange, First Section Motoaki Narusawa Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.
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 the COVID-19 crisis, changes in the economy and t
Slide 3: Agenda
Agenda I. Financial Highlights for the FY2/20 II. Annual Plan for FY2/21 Ⅲ. Medium-Term Management Plan (FY2/21-FY2/23) Ⅳ. Reference Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved. 3
Slide 4: I. Financial Highlights for FY2/20
I. FINANCIAL HIGHLIGHTS FOR FY2/20 Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.
Slide 5: Consolidated Financial Highlights (Sales)
Consolidated Financial Highlights (Sales) Orders for one-time projects involving the consumption tax hike were higher than expected. Sales growth was also attributable to a large volume of temporary staffing orders from major telemarketing companies, higher sales of outsourced tasks for cashless pay
Slide 6: Consolidated Financial Highlights (Profits)
Consolidated Financial Highlights (Profits) Earnings were much higher than in the previous fiscal year. One reason was an increase in gross profit resulting mainly from the growth of BPO orders, including one-time projects involving the consumption tax hike, orders from the public sector, and orders
Slide 7: Segment Information (1) Clerical Human Resources Services (Sales)
Segment Information (1) 【 Clerical Human Resources Services（Sales) 】 （Million yen） Contributions to sales from higher than expected one-time orders involving the consumption tax 18,000 hike and from a large volume of temporary 15,686 staffing projects for telemarketing companies and 16,000 14,753 fi
Slide 8: Segment Information (1) Clerical Human Resources Services (Profits)
Segment Information (1) 【 Clerical Human Resources Services（Profits) 】 Earnings also benefited from the efficient use of expenses for recruiting people required for （Million yen） new orders, a higher temporary placement 700 637 workforce retention rate, and elimination of the need for supplementary
Slide 9: Breakdown of Clerical HR Services: Business Process Outsourcing
Breakdown of Clerical Human Resources Services ①Business Process Outsourcing Capturing new orders for BPO services, including one-time contracts involving the consumption tax hike from the public sector, was one priority in this business sector. There was also an increase in the volume of orders at
Slide 10: Breakdown of Clerical HR Services: Customer Relationship Management
Breakdown of Clerical Human Resources Services ②Customer Relationship Management There was a large volume of orders from telemarketing companies and from securities companies and other financial services companies. （Million yen） 4,000 3,604 3,500 3,000 2,870 2,500 Sales 3,604 million yen 2,000 1,50
Slide 11: Breakdown of Clerical HR Services: Office Services
Breakdown of Clerical Human Resources Services ③Office Services Orders from securities companies and other financial services companies remained strong and the volume of business with private-sector companies and the public sector was also firm. （Million yen） 4,000 3,618 3,500 3,369 3,000 2,500 Sal
Slide 12: Segment Information (2) Manufacturing HR Services (Sales)
Segment Information (2) 【Manufacturing Human Resources Services (Sales)】 Orders from manufacturing and processing companies decreased more than expected because of slowing economic growth in China but orders in the food processing category remained strong. （Million yen） 4,000 3,500 3,112 3,194 3,000
Slide 13: Segment Information (2) Manufacturing HR Services (Profits)
Segment Information (2) 【Manufacturing Human Resources Services (Profits)】 The gross profit benefited from higher food processing category sales but was offset by declines in sales and the gross profit margin in the manufacturing and processing category. Although there were measures to lower the cos
Slide 14: Segment Information (3) Sales HR Services (Sales)
Segment Information (3) 【Sales Human Resources Services (Sales)】 Sales increased 1,454,966 thousand yen (+295.2%) to 1,947,790 thousand yen because of the ongoing geographic expansion of the receipt of orders for outsourced cashless payment processing activities that Careerlink started in October 20
Slide 15: Segment Information (3) Sales HR Services (Profits)
Segment Information (3) 【Sales Human Resources Services (Profits)】 Operating profit was down 33,256 thousand yen (-56.6%) to 25,482 thousand yen. The primary cause was higher personnel and operating expenses resulting from recruiting full-time employees and key sales people to cover the number of pr
Slide 16: Segment Information (4) Others (Sales/Profits)
Segment Information (4) 【Others（Sales・Profits）】 （Million yen） This segment is the automobile management 276 business of Tokyo Jidosha Kanri, a subsidiary of Japan 274 274 Business Service. 272 270 Sales 274 million yen 268 266 267 2.6％ Up y-o-y （-0.6％ VS.Forecast （※）） 264 262 FY2/19 FY2/20 (Consol
Slide 17: Statements of Income
Statements of Income FY2/2019 FY2/2020 FY2/2020 Actual Actual Forecast （※） (Consolidated) (Consolidated) (Consolidated) Year On Year Vs.Forecast Amount Amount Amount Variance (Million yen) (Million yen) (Million yen) (Million yen/%) 2,478 123 Net sales 18,624 20,980 21,103 13.3 0.6 Clerical Human Re
Slide 18: Financial Condition
Financial Condition End of FY2/19 FY2/20 (Consolidated) (Consolidated) Amount Amount Variance Main reasons for changes (Million yen) （Million yen） （Million yen） （Million yen） 5,117 6,668 Current assets 1,551 Cash and deposits ＋1,232 86.5% 89.1% Inventories ＋245 800 812 Non-current assets 11 Notes an
Slide 19: Cash Flows
Cash Flows FY2/19 FY2/20 Amount Amount Main reasons for changes （Million yen） （Million yen） （Million yen） Profit before income taxes ＋690 Increase in accrued consumption Operating activities 50 1,579 taxes ＋555 Increase in accounts payable-other ＋361 Purchase of investment securities & property, pla
Slide 20: II. Annual Plan for FY2/21
Ⅱ. ANNUAL PLAN FOR FY2/21 Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.
Slide 21: Annual Plan for FY2/21 (Sales)
Annual Plan for FY2/21 (consolidated)（Sales） The outlook is unclear because of the COVID-19 crisis and other reasons. At this time, outlook for sales is as follows. We expect an increase in sales in the clerical human resource services business. We also anticipate higher sales in the manufacturing h
Slide 22: Annual Plan for FY2/21 (Profits)
Annual Plan for FY2/21 (consolidated)（Profits) Although we believe earnings will benefit from a higher gross profit due to sales growth, we anticipate expenses for a number of planned activities. One is increasing the number of key sales personnel and people who develop IT systems for orders receive
Slide 23: Business Strategy FY2/21
Business Strategy FY2/21 Build up a strong base to accomplish the medium-term plan goals ・Target on expanding large-scale contracting projects, establish the advantage over competitors by focusing on know-how for taking orders and improvement of quality control. Clerical ・Enhance staff follow-up ope
Slide 24: III. Medium-Term Management Plan (FY2/21-FY2/23)
Ⅲ. MEDIUM-TERM MANAGEMENT PLAN (FY2/21-FY2/23) Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.
Slide 25: Medium-Term Management Plan Overview
＜Careerlink Group＞ Medium-Term Management Plan Overview Goal（Company ‘s Slogan） “Aiming to become Japan’s most caring human resources company” Medium-Term Management Plan’s Position Medium-Term Management Plan （FY2/21～FY2/23） Accelerating strategies for growth Focus on building the foundation of bus
Slide 26: Medium-term Strategic Goals
Medium-term Strategic Goals Strengthen the management base by expanding large-scale contracting projects, reinforcing the Sales Human Resource Services business and entering new business. Strengthen human resources and strengthen competitiveness to increase orders for large- Clerical Human scale con
Slide 27: Medium-term Strategy Numerical Goals
Medium-term Strategy Numerical Goals FY2/23 Aim for 28,953 ｍillion yen Sales 870 million yen Profit attributable to owners of parent FY2/20 Actual FY2/23 （Million yen） Plan（Million yen） Net sales 21,103 28,953 Operating profit 692 1,274 % to sales 3.3% 4.4% Ordinary profit 690 1,272 % to sales 3.3%
Slide 28: Medium-Term Management Plan Segment Policy
Medium-Term Management Plan Segment Policy 1 FY2/23 Sales（Plan） VS.FY2/20 Actual Business Process Outsourcing segment 11.2 billion yen 32.5％ Up 2 FY2/23 Sales（Plan） VS.FY2/20 Actual Customer Relationship Management segment 4.4 billion yen 22.8％ Up 3 FY2/23 Sales（Plan） VS.FY2/20 Actual Office Service
Slide 29: Medium-term Strategy SDGs Action
Medium-term Strategy SDGs Action Contribute to society through our business Since the establishment of Careerlink in October 1996, the Group’s mission has been to contribute to society through the expansion of employment. By setting our goal as 「Aiming to become Japan’s most caring human resources c
Slide 30: 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 additional
Slide 31: Shareholder Distributions ②
Shareholder Distributions② 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. 32
Slide 32: IV. Reference
Ⅳ. REFERENCE Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.
Slide 33: Company Overview
Company Overview CAREERLINK Co., Ltd. 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 (Careerlink Group） Clerical Human Resources Services Busi
Slide 34: Significant Events and Sales Growth
5,000 0 10,000 15,000 20,000 25,000 Company established to provide general temporary staffing ‘96 （Million yen） 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 35: Business Development
Business Development CAREERLINK CO., LTD 100% 88.1% Japan Business Service CAREERLINK Co., Ltd. FACTORY CO., LTD 100% Tokyo Jidosha Kanri Corporation Sales Clerical human resource Manufacturing human human services resource services Others resource Business Customer Office Food Other Process Manufac
Slide 36: Business Activities (1) Business Process Outsourcing
Business Activities (1) ＜Clerical Human Resource Services＞ ①Business 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 alon
Slide 37: Business Activities (2) Customer Relationship, Office Services
Business Activities (2) ②Customer Relationship ③Office Services Management The use of data systems at contact centers and other Activities locations to establish long-term relationships with customers Speedy temporary staffing and permanent placement services for all Activities types of office wor
Slide 38: Three Key Strengths
Three Key Strengths 1 Plans for both higher efficiency and quality • Proposals that encompass everything from business process designs to production, delivery, quality assurance and operational know-how • Significant cost savings due to higher efficiency 2 Able to start operations quickly and handle
Slide 39: 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 40: 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 41: Three Key Strengths (3)-1
Three Key Strengths (3)-1 ３ A framework for increasing workers’ skills andAgejobComposition satisfaction of the Temporary Workforce motivation management Placement Workers 30.0% A system where Careerlink and employees aim for growth and the same goals 20.0% Opportunities to advance based on skills
Slide 42: 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
Slide 43: 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.