Recruit Holdings Co., Ltd. · TSE:6098

Recruit — Investor Presentation (November 2024)

60 slides from Recruit's investor presentation, November 2024

  1. Slide 1: Recruit Holdings Co., Ltd. Investor Presentation

    Recruit Holdings Co., Ltd. Investor Presentation November 2024 1

  2. Slide 2: Mission: Opportunities for Life

    MISSION Opportunities for Life. Faster, simpler and closer to you. “Couldn't this be faster and easier?” and “How can we make this more convenient?” - Hisayuki "Deko" Idekoba President, CEO, and Representative Director of the Board 2

  3. Slide 3: Recruit Group at a Glance

    Recruit Group at a Glance1 Global Leader in HR Technology and Business Solutions HRテクノロジーとビジネスソリューションのグローバルリーダー Founded Headquarters Employees2 1960 Tokyo 51K+ Revenue3 Adjusted EBITDA3,4 Basic EPS ¥3.42T ¥598B ¥225.99 *Please refer to page 53 for footnotes 3

  4. Slide 4: Opportunities For Life. Faster, Simpler and Closer to You.

    Opportunities For Life. Faster, Simpler and Closer to You. まだ、ここにない、出会い。より速く、シンプルに、もっと近くに。 01 Our business model A history of connecting businesses and individuals in multiple industries 個人ユーザーと企業クライアントへの最適なマッチングソリューション提供の歴史 02 Our business strategy A three-part strategy combining historical strengt

  5. Slide 5: Our Business Model

    Our Business Model Individual Users Business Clients Matching Platforms Employment Housing & Bridal Beauty Travel Dining Real Estate SaaS solutions 5

  6. Slide 6: Proven Track Record of Business Expansion, Digital Transformation and Disruption

    Proven Track Record of Business Expansion, Digital Transformation and Disruption Expanded SaaS business through Air BusinessTools, a suit of cloud-based operational and management support services Expansion of online HR Matching business Transition from paper to the internet. Continued growth of dom

  7. Slide 7: Proven Track Record (Japanese)

    事業拡大、デジタルトランスフォーメーションと ディスラプションの実績 業務・経営支援ソリューション、Air ビジネス ツールズを通じたSaaS事業の拡大、オンライ ンHRマッチング事業の拡大 オンラインHRマッチング事業 の拡大 紙からインターネットへ移行 マーケティング、メディア事業を SaaS Solutions 生活の他の分野にも拡大し、選択肢と機 会を増やす HR Technology 求人広告事業を立ち上げ 新たな新卒採用プロセスを立ち上げる Matching Platforms Media Services & Human Resources 1960 1970 1980 1990

  8. Slide 8: Globalization of HR Matching Businesses through M&A

    Globalization of HR Matching Businesses through M&A M&Aを通じたHRマッチングビジネスのグローバル化 FY2023 Consolidated Revenue (3.41tn yen) Staffing (US) HR Tech HR Tech HR Tech HR Tech HR Tech HR Tech (US) (NL) (US, CA) (UK) (US) (US) 2 HR Tech 53% (US) Staffing Staffing (AU) 3 (US, NL) 1 1 Overseas 47% 3 Japan 2010 20

  9. Slide 9: Leading Brands across Three Strategic Business Units

    Leading Brands across Three Strategic Business Units Matching & Solutions SBU HR Technology SBU Staffing SBU HR Solutions Marketing Solutions Global platforms on jobs, hiring Temporary staffing services in solutions and real-time Matching platforms and SaaS solutions in Japan Japan, Europe, US and A

  10. Slide 10: Opportunities For Life. Faster, Simpler and Closer to You.

    Opportunities For Life. Faster, Simpler and Closer to You. まだ、ここにない、出会い。より速く、シンプルに、もっと近くに。 01 Our business model A history of connecting businesses and individuals in multiple industries 個人ユーザーと企業クライアントへの最適なマッチングソリューション提供の歴史 02 Our business strategy A three-part strategy combining historical strengt

  11. Slide 11: Our Business Strategy

    Our Business Strategy Three strategic pillars combining our historical strengths with future opportunities Simplify Help Businesses Prosper Hiring Work Smarter Together Make it easier and faster Improve performance and Make positive impact on society and for people to get jobs productivity for busin

  12. Slide 12: Simplify Hiring

    Industry Leading HR Matching Services & Solutions Job Matching & Hiring Platforms Simplify Hiring Make it easier and faster Placement for people to get jobs 人材マッチング市場における 採用プロセスの効率化 Temporary Staffing 12

  13. Slide 13: Our Vision to Simplify Hiring

    Pillar 1: Simplify Hiring Our Vision to Simplify Hiring Today Future Easier and faster for people to get jobs Complicated, confusing, Reduced cost and time to hire for employers manual and slow 求職者がより早く・簡単に仕事に就け、 複雑で、わかりにくく、手作業が多く、時間がかかる 雇用主は、採用のための時間とコストを削減できる Leading the transformation of job matc

  14. Slide 14: Large and Growing Global HR Matching Market

    Pillar 1: Simplify Hiring Large and Growing Global HR Matching Market1,2 Retained Search エグゼクティブサーチ市場 $37B 5 Temporary Staffing 人材派遣事業 $116B 6 Direct Hire $302B 8 人材紹介市場 $58B 5 Internal Recruitment Automation Job Advertising and 採用オートメーション市場 7 Talent Sourcing $60B 求人広告及び採用ツール市場 $31B 3,4 *Please refe

  15. Slide 15: Trends that Support Long-term Growth of HR Matching Industry

    Pillar 1: Simplify Hiring Trends that Support Long-term Growth of HR Matching Industry Tight labor markets Skills-based hiring Automation and AI (data-driven recruitment) Globalization of talent Hybrid and flexible work models Virtual recruiting Employee experience and well-being High labor market c

  16. Slide 16: HRマッチング事業の長期成長を後押しするトレンド

    Pillar 1: Simplify Hiring HRマッチング事業の長期成長を後押しするトレンド タイトな労働市場 スキルベースの採用 データドリブンの採用を可能にする 人材獲得のグローバル化 自動化及びAI ハイブリッド等柔軟な労働モデル バーチャル採用 従業員としての経験やウェルビーイング 離職率の上昇 採用業務の外部委託 労働力の多様化 16

  17. Slide 17: Leading Indeed's Transformation from Search to Marketplace

    Pillar 1: Simplify Hiring Leading Indeed’s Transformation from Search to Marketplace Search Marketplace Search Click Apply Interview Hire Marketplace >$271B ~9X $302B 8 Search <$31B ~9X larger opportunity with marketplace strategy マーケットプレイス戦略によりTAMは9倍超へ *Please refer to page 54 for footnotes 17

  18. Slide 18: "Closer to the hire" offering

    Pillar 1: Simplify Hiring “Closer to the hire” offering Search Marketplace Marketplace Apply Interview Hire >$271B Connect Hire $302B 8 Search <$31B Quality, engaged candidates Hires Sponsored Jobs with Indeed Apply Indeed Hire Sponsored Jobs Indeed Applyで有料広告を掲載し Indeed Flex 希望条件に合う求職者にリーチ without I

  19. Slide 19: Improving Quality and Speed of AI Matching

    Pillar 1: Simplify Hiring Improving Quality and Speed of AI Matching Leveraging Data and Technology across More Jobs Our HR Matching Businesses More Employer More Data 人材マッチング事業全体でデータとテクノロジーを活用 Accounts About Jobs ● 580M job seeker profiles1 ● 320M sourceable job seeker profiles2 AI ● 1B total ratin

  20. Slide 20: Leading Global Two-sided Talent Marketplace

    Pillar 1: Simplify Hiring Leading Global Two-sided Talent Marketplace World’s leading job site1 Job Seekers Employers Matching Engine Job Seeker Profiles Employers using Indeed to hire 580M+ 3.5M+ 2 4 320M+ Sourceable 3 Leader on job and company insights Delivering 23 hires per minute5 1分間に23人の採用を実現

  21. Slide 21: Indeed's Clear Strategic Framework

    Pillar 1: Simplify Hiring Indeed’s Clear Strategic Framework Goals Strategy Strategic Priorities Grow marketplace effectiveness — Grow # hires reach, matching, and connections 採用数の増加 Search → マーケットプレイスの効果を向上—リーチ、マッチング、コネクション Marketplace 検索→ マーケット プレイス Effectively monetize marketplace Grow revenue 売上収益

  22. Slide 22: Marketplace Monetization Strategy with Multiple Layers of Growth

    Pillar 1: Simplify Hiring Marketplace Monetization Strategy with Multiple Layers of Growth Grow take rate of Grow new customers existing customers Free to paid matches Market expansion outside マッチングの有料化 the US 米国外のマーケットの拡大 Indeed Apply for Current Enterprise Monetization SMB customers 大企業によるIndeed A

  23. Slide 23: Grow Take Rate of Existing Customers

    Pillar 1: Simplify Hiring Grow Take Rate of Existing Customers Average Take Rate per Hire (%) Indeed <1% 1 We can grow our take rate considerably and still have the advantage of offering Industry Average Take Rates per Hire (%) a significantly lower cost per hire Staffing ~20% 2 テイクレートを飛躍的に向上させながらも、大幅

  24. Slide 24: Applying HR Matching Engine

    Pillar 1: Simplify Hiring Applying HR Matching Engine Staffing HR Technology Matching Engine Matching & Solutions Leveraging all our HR Matching businesses to target entire HR Matching market すべての人材マッチング事業を活用し、人材マッチング市場全体をターゲットに 24

  25. Slide 25: HR Technology and Matching & Solutions collaborate to Simplify Hiring in Japan

    Pillar 1: Simplify Hiring Example: HR Technology and Matching & Solutions collaborate to Simplify Hiring in Japan Applicant Tracking System (ATS) Job Seekers Employers apply through job Other post jobs to boards ATS 1, 2, 3, ... internal ATS Other Connects ATSs to Job Boards 1, 2, 3, ... Job Boards

  26. Slide 26: Opportunity for Technological Transformation of Temp Staffing

    Pillar 1: Simplify Hiring Opportunity for Technological Transformation of Temp Staffing industry through cross-SBU collaboration and innovation In markets that cover 76% of temporary staffing TAM1,2 USA 30% 275,000 19,300 11 Japan 15% Temps on Employees working Countries, with assignment working in

  27. Slide 27: Help Businesses Work Smarter

    Industry Leading Matching Platforms and SaaS Solutions Help Businesses Work Smarter Improve performance and productivity for business clients in Japan 日本国内企業クライアントの 生産性及び業績向上 27

  28. Slide 28: Our Services - Matching Platforms and Business SaaS

    Pillar 2: Help Businesses Work Smarter Our Services - Matching Platforms and Business SaaS Housing & Beauty Travel Dining Bridal Automobile Education Matching Real Estate Platforms Vertical SaaS Replacing analog operations with Horizontal SaaS Reservations Order / Apply Payments 28

  29. Slide 29: Repeatedly Disrupting Ourselves and Creating New Business Models

    Pillar 2: Help Businesses Work Smarter Repeatedly Disrupting Ourselves and Creating New Business Models Matching Platforms + Matching SaaS + Fintech Platforms + SaaS Services1 Job Boards & Marketing Media Online Media Booking Media Paper-based Media 1960 - 2010 2010 -2024 Future 1 Fintech Services M

  30. Slide 30: Marketing Solutions Tend to be More Resilient During Economic Downturns

    Pillar 2: Help Businesses Work Smarter Marketing Solutions Tend to be More Resilient During Economic Downturns Matching & Solutions HR Technology Staffing Marketing HR Solutions Solutions HR Matching Businesses Less Affected by economic environment More 30

  31. Slide 31: Marketing Solutions is one of the Largest Matching Platforms in Japan

    Pillar 2: Help Businesses Work Smarter Marketing Solutions is one of the Largest Matching Platforms in Japan Others Beauty + Travel + Dining + SaaS Solutions ~￥100B2 Housing & Real Estate Annual Revenue (Beauty) for Matching & Solutions ~￥140B2 ¥500B (Dining) 1 Approx. (Jalan - Travel) 1 Outlook and

  32. Slide 32: Organizational Structure Enables Increasing Operational Efficiency

    Pillar 2: Help Businesses Work Smarter Organizational Structure Enables Increasing Operational Efficiency Housing & Beauty Travel Dining Bridal Automobile Education Real Estate Corporate Sales Product 32

  33. Slide 33: Increasingly Adding Business Clients Outside of Traditional Industries

    Pillar 2: Help Businesses Work Smarter Increasingly Adding Business Clients Outside of Traditional Industries we Serve Clients in Clients in non-matching Beauty and Dining platform operated segments segments 美容、飲食のクライアント AirPAY Account マッチングプラットフォーム以外のクライア ント 450K Approximately 55% 45% 1 1 Accounts

  34. Slide 34: Tremendous Potential for Account Expansion

    Pillar 2: Help Businesses Work Smarter Tremendous Potential for Account Expansion through Further Introduction of Existing and New Services Estimated number of 480M 1 business locations and +23.2% 3.77M stores/SaaS As of Dec. 2023 # of Actions YoY 3.77M 2 Potential +18.0% # of SaaS accounts 4.38 ✕ C

  35. Slide 35: Prosper Together

    Prosper Together Make positive impact on society and the planet through sustainable growth shared by all stakeholders ステークホルダーとの 共存共栄を通じた持続的な成長 35

  36. Slide 36: Our Commitment to Sustainability

    Pillar 3: Prosper Together Our Commitment to Sustainability1 E nvironmental Climate Action S ocial Social Impact S ocial Our People G overnance Corporate Governance Became and maintain carbon Shorten the time it takes to get hired Achieve gender parity across all Reach gender parity for Board of neu

  37. Slide 37: Our Commitment to Sustainability (Japanese)

    Pillar 3: Prosper Together Our Commitment to Sustainability1 1 E Environmental 気候変動対策 S Social ソーシャルインパクト S Social 人材 G Governance コーポレートガバナンス 2021年度に事業活動で、 2030年度までに 2030年度までに、上級管理職・ 2030年度までに、監査役を含む 2030年度にバリューチェーン • 就業までに掛かる時間を半分に 管理職・従業員の女性比率を 取締役会構成員の女性比率を 3 全体で、カーボンニュートラルを 短縮する 約50%にする 5 約50%に

  38. Slide 38: Diverse and experienced Board of Directors

    Pillar 3: Prosper Together Diverse and experienced Board of Directors Masumi Minegishi Hisayuki Idekoba Ayano Senaha Representative Director Representative Director, Director, Executive Vice President and Chairperson President and CEO and COO 峰岸 真澄 Head of HR Technology SBU 瀬名波 文野 代表取締役会長 兼 取締役 出木場

  39. Slide 39: Opportunities For Life. Faster, Simpler and Closer to You.

    Opportunities For Life. Faster, Simpler and Closer to You. まだ、ここにない、出会い。より速く、シンプルに、もっと近くに。 01 Our business model A history of connecting businesses and individuals in multiple industries 個人ユーザーと企業クライアントへの最適なマッチングソリューション提供の歴史 02 Our business strategy A three-part strategy combining historical strengt

  40. Slide 40: Energized and Passionate Leadership Team

    Energized and Passionate Leadership Team Ayano Senaha Yoshihiro Kitamura Hisayuki Idekoba Executive Vice President Executive Vice President, Head of Matching Representative Director, and COO & Solutions Business, and President and President and CEO 瀬名波 文野 Representative Director, Recruit Co., Ltd. H

  41. Slide 41: Disciplined Capital Allocation toward Strategic Action and Shareholder Returns

    Disciplined Capital Allocation toward Strategic Action and Shareholder Returns supported by Strong Financial Position 強固な財務基盤を活用した戦略的な投資及び株主還元 01 1 Product development and marketing expense for existing businesses for future growth 既存事業の継続的な成長に資する投資 02 Continuous payment of stable per-share dividend

  42. Slide 42: Track Record of Significant Total Returns to Shareholders

    Track Record of Significant Total Returns to Shareholders Total Payout Ratio1 % (in billions of yen) 250 254.6 200 187.5 72.0% 150 158.7 69.5% 100 103.5 53.5% 50 85.0% FY2020 FY2021 FY2022 FY2023 1 Total payout ratio = ( Total amount of dividend payment + Total amount of share repurchases ) / Profit

  43. Slide 43: Net Cash and Cash Equivalents: Aim for ¥600 billion by end of FY2025

    Net Cash and Cash Equivalents1: Aim for ¥600 billion by the end of FY2025 (in billions of yen) 1,200.0 900.0 600.0 300.0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 1 Calculated by subtracting subtracting interest bearing debt from cash and cash equivalents. 43

  44. Slide 44: Appendix

    Appendix E 5 v4 U rs & 44

  45. Slide 45: Consolidated FY2024 Guidance

    Consolidated FY2024 Guidance1 FY2023 FY2024 Adjusted EBITDA & Adjusted EBITDA Margin Guidance (in billions of yen, unless otherwise stated) Actual Low High YoY Revenue 3,416.4 3,300.0 - 3,500.0 -3.4% - +2.4% Adjusted EBITDA 598.3 570.0 - 675.0 -4.7% - +12.8% Adj. EBITDA margin % 17.5% 17.3% - 19.3%

  46. Slide 46: Near to Mid Term Outlook

    Near to Mid Term Outlook (as of May 15, 2024) Operational Efficiency Capital Efficiency HR Technology Consolidated M&S HR Technology + Cash and Marketing Solutions M&S HR Solutions cash equivalents M&S HR Solutions: Adj. EBITDA margin Back to Adj. EBITDA margin of 35% - 40% ¥600 billion YoY revenue

  47. Slide 47: Consolidated Financial Results

    Consolidated Financial Results Revenue Adjusted EBITDA & Adjusted EBITDA Margin1 (in billions of yen) (in billions of yen) 4,000 800 17.8% 17.5% 3,429.5 3,416.5 15.9% 2,871.7 598.3 3,000 600 545.0 511.8 2,269.3 2,000 400 10.9% 246.9 1,000 200 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 H

  48. Slide 48: HR Technology SBU Financial Results

    HR Technology SBU Financial Results Revenue Adjusted EBITDA & Adjusted EBITDA Margin1 (in millions of USD) (in billions of yen) 9,000 400 323.3 342.3 344.3 37.5% 30.7% 34.0% 8,243 7,653 8,000 7,004 300 4,000 200 3,993 2,000 100 70.5 16.7% FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 Adjus

  49. Slide 49: Matching & Solutions SBU Financial Results

    Matching & Solutions SBU Financial Results Revenue Adjusted EBITDA & Adjusted EBITDA Margin1 (in billions of yen) (in billions of yen) 807.8 800 760.6 60 200 492.4 163.6 672.0 658.6 451.5 20.3% 456.0 396.5 600 150 107.1 109.8 102.8 14.4% 40 15.9% 15.6% 400 100 20 297.4 305.0 249.3 50 200 214.0 1.9 1

  50. Slide 50: Staffing SBU Financial Results

    Staffing SBU Financial Results Revenue Adjusted EBITDA & Adjusted EBITDA Margin1 (in billions of yen) (in billions of yen) 1,800 250 30 120 100.2 1,585.2 1,634.2 93.2 6.5% 97.9 751.6 6.8% 6.0% 684.1 76.3 200 1,378.4 6.4% 1,198.8 604.9 1,200 2080 150 569.9 100 901.1 882.6 1040 600 773.5 50 628.8 FY20

  51. Slide 51: Consolidated Balance Sheet as of March 31, 2024

    Consolidated Balance Sheet as of March 31, 2024 As of As of Variance (in billions of yen) March 31, 2023 March 31, 2024 Assets Cash and Cash Equivalents 877.3 1,136.8 +259.4 Total current assets (Excluding Cash and Cash Equiv.) 587.9 625.8 +37.9 Total non-current assets 1,327.9 1,381.9 +53.9 Total a

  52. Slide 52: Global HR Matching Businesses + Marketing Solutions Business in Japan

    Global HR Matching Businesses + Marketing Solutions Business in Japan (in billions of yen) FY2016 FY2023 1,602.4 784.2 Staffing HR 285.6 Technology Staffing 132.7 193.4 Marketing HR Technology HR Solutions Solutions 1,011.8 281.9 492.4 Marketing Solutions 369.6 HR Solutions 305.0 1 To indicate busin

  53. Slide 53: Footnote

    Footnote Page 3 1 Recruit Holdings Co., Ltd. and its consolidated subsidiaries 2 As of March 31, 2024 (HR Tech:13,155, M&S: 24,439, Staffing: 13,657, Corporate: 122) 3 Consolidated results as of March 31, 2024. 4 Adj EBITDA : Operating income + depreciation and amortization (excluding depreciation o

  54. Slide 54: Footnote

    Footnote Page 14, 16 and 17 1 The Company is aware there may be legal restrictions in this area and so will endeavor that the Company's work meets those requirements. 2 Sum of the estimated size of addressable markets for the job advertising & talent sourcing tools market, the direct hire market, an

  55. Slide 55: Definitions of HR Matching Markets

    Definitions of HR Matching Markets Job Advertising and a collection of online and offline tools and services that help employers advertise jobs, source Talent Sourcing 3,4 candidates, and build and promote their online employer brand Direct Hire 5 where agencies are paid fees for placing permanent w

  56. Slide 56: Footnote

    Footnote Page 19 1 Internal data, (worldwide), cumulative number of verified job seeker accounts across HR Technology’s sites through September 30, 2024. Job seeker accounts that have a unique, verified email address 2 Internal data, (worldwide), cumulative number of verified job seeker accounts acr

  57. Slide 57: Footnote

    Footnote Page 34 1 The total of the number of applications on Rikunabi NEXT, TOWNWORK, and RECRUIT AGENT, the number of individual users who were referred to our business clients at SUUMO Counter, the number of online reservation on Hot Pepper Beauty, the number of hotel bookings on Jalan, the numbe

  58. Slide 58: Footnote

    Footnote Page 36 and 37 1 The years indicated are Recruit Holdings’ fiscal years (FY), which begin on April 1 each year and end on March 31 of the following year. All targeted figures displayed here are approximate. 2 Carbon neutrality includes reducing greenhouse gas (GHG) emissions as well as offs

  59. Slide 59: Disclaimer

    Disclaimer Forward-Looking Statements This material contains forward-looking statements, which reflect the Company’s assumptions, estimates and outlook for the future based on information available to the Company and the Company’s plans and expectations as of the date of this material unless the con

  60. Slide 60: 2024 Investor Presentation

    2024 Investor Presentation © 2024 Recruit Holdings Co., Ltd. 60

Recruit Holdings — Investor Presentation (November 2024) on 6ix