Recruit Holdings Co., Ltd. · TSE:6098
Recruit — Shareholder Meeting (June 2018)
23 slides from Recruit's shareholder meeting presentation, June 2018
Slide 1: 58th Ordinary General Meeting of Shareholders
Frrecruit Recruit Holdings Co., Ltd. 58th Ordinary General Meeting of Shareholders
Slide 2: 58th fiscal year consolidated operating results
I would like to explain Recruit Holdings’ 58th fiscal year consolidated operating results.
Slide 3: Consolidated Statement of Profit or Loss, FY2017
This is the overview of Consolidated Statement of Profit or Loss for 58th fiscal year, FY2017. Revenue was 2.17 trillion yen, an increase of 11.9%. EBITDA, our key performance indicator, was 258.4 billion yen, an increase of 11.3%. Profit attributable to owners of the parent was 151.6 billion yen, a
Slide 4: Adoption of IFRS: differences in account names
The group has adopted International Financial Reporting Standards (“IFRS”) from the beginning of the 58th Fiscal Year, FY2017. This is the summary of the difference in name of accounts. 4
Slide 5: Difference in treatment of goodwill
This is the summary of the difference in treatment of goodwill. 5
Slide 6: Definitions of EBITDA, adjusted profit and adjusted EPS
EBITDA is calculated by adding back depreciation and amortization to operating income, and add or subtract other operating income/expenses. Adjusted profit is calculated by adding/subtracting adjustment items and tax reconciliation related to certain adjustment items to profit attributable to owners
Slide 7: Business overview of each segment
From here, I would like to talk about business overview of each segment. From 58th fiscal year, we changed our business segments to HR Technology segment, mainly consists of Indeed, Media & Solutions segment, mainly consists of marketing media and HR media in Japan, and Staffing segment, consists of
Slide 8: Revenue breakdown by business segment
This is a revenue breakdown by business segments. Revenue from all three segments recorded solid growth, resulting in 11.9% growth year on year to 2.17 trillion yen. This was mainly due to continued growth of Staffing and HR Technology segments.
Slide 9: EBITDA breakdown by business segment
This is an EBITDA breakdown by business segments. EBITDA for all three segments increased, and recorded 11.3% growth year on year to 258.4 billion yen.
Slide 10: Results of operations for each segment
Now I would like to explain the results of operations for each segment.
Slide 11: HR Technology segment overview
HR Technology segment consists of Indeed, online job search engine and related businesses. As of April 1 2018, RGF OHR USA Inc., 100% owned subsidiary, has become a Headquarter of the HR Technology segment.
Slide 12: HR Technology segment revenue and EBITDA
Revenue in the HR Technology segment was 218.5 billion yen, an increase of 64.7% year on year. Segment EBITDA was 30.6 billion yen, an increase of 83.3% year on year, largely in line with revenue growth.
Slide 13: Media & Solutions segment overview
Media & Solutions segment consists of two operations; Marketing Solutions, which mainly offers solutions for clients’ user attraction and their business operations, and HR Solutions, which provides a full-range of HR services, mainly supporting enterprise clients’ recruiting activities. As of April
Slide 14: Media & Solutions segment revenue and EBITDA
Revenue in the Media & Solutions segment was 679.9 billion yen, an increase of 3.3% year on year. This was primary driven by favorable performance in the Beauty business in Marketing Solutions, and solid performance in HR Solutions in Japan. Segment EBITDA was 156.1 billion yen, an increase of 3.1%,
Slide 15: Marketing Solutions revenue breakdown
This is a revenue breakdown for Marketing Solutions. In the Housing and Real Estate subsegment, revenue in the independent housing and leasing divisions grew, while the condominium apartment market in Japan experienced a slowdown as evidenced by slower growth in the number of new construction starts
Slide 16: Beauty subsegment: Hot Pepper Beauty
In the Beauty subsegment, the number of online beauty salon reservations made through its platform, Hot Pepper Beauty, continued to show solid growth due to an increased number of SALON BOARD service adoption by beauty salon clients and its improved usability. Number of clients in regional and subur
Slide 17: HR Solutions revenue breakdown
This is a revenue breakdown for HR Solutions. The Japanese labor market remained extremely tight, as evidenced by the rising number of job-offers to applicants ratio and of job advertisements. In this environment, both full-time and part-time recruitment divisions achieved solid growth by enhancing
Slide 18: Staffing segment overview
Staffing segment consists of Japan operation, such as Recruit Staffing and STAFF SERVICE group, and Overseas operations, such as Staffmark Holdings, Inc. in North America, Recruit Global Staffing B.V. in Europe, and Chandler Macleod Group Limited. in Australia. As of April 1 2018, Recruit Global Sta
Slide 19: Staffing segment revenue and EBITDA
The Japanese staffing market continues to expand as evidenced by the continued increase in the number of active agency workers. In this environment, the Japan operations focused on extending existing staffing contracts and increasing number of new staffing contracts. As a result, revenue from Japan
Slide 20: Consolidated Balance Sheet
Next, I would like to explain the Consolidated Balance Sheet as of the end of 58th fiscal year.
Slide 21: Total assets, liabilities and equity
Total assets increased by 111.1 billion yen to 1.57 trillion yen, total liabilities increased by 13.2 billion yen to 733.3 billion yen, and total equity increased by 97.8 billion yen to 840.6 billion yen. Current assets increased by 79.5 billion yen, mainly due to an increase in cash and cash equiva
Slide 22: Year-end dividend for 58th fiscal year
Finally, I would like to explain the year-end dividend for 58th fiscal year.
Slide 23: Dividend policy and year-end dividend
Our core dividend policy is to provide a stable and sustainable return to shareholders and we sets a consolidated payout ratio target of approximately 30% of profit attributable to owners of the parent excluding non-recurring income/losses. To declare dividends twice a year is also our basic policy.