Fullcast Holdings Co., Ltd. · TSE:4848
Fullcast — FY2018 Earnings Presentation
37 slides from Fullcast's earnings presentation, Feb 8, 2019
Slide 1: Consolidated Business Results for the Fiscal Year Ended December 2018
Consolidated Business Results for the Fiscal Year Ended December 2018(Jan – Dec. 2018(Jan. Dec 2018) February 8, 2019 FULLCAST HOLDINGS CO., LTD. (4848) Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this transl
Slide 2: Agenda
Agenda ■ P3 FY12/18 Summary of Business Performance ■ P5 FY12/18 Consolidated Business Highlights (Jan. – Dec. 2018) ■ P10 FY12/18 Segment Highlights Short-Term Operational Support Business Earnings (Jan. – Dec. 2018) ■ P13 FY12/18 Segment Highlights Sales Support Business Earnings (Jan. – Dec. 2018
Slide 3: FY12/18 Summary of Business Performance
FY12/18 Summary of Business Performance Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 3
Slide 4: FY12/18 Summary of Business Performance
FY12/18 Summary of Business Performance ■ Consolidated results set a highest past profits (*) Throughout the year, strong demand for hiring among client companies and the Group’s efforts to fortify its ability to supply sufficient human resources to satisfy client demand for short-term staffing al
Slide 5: FY12/18 Consolidated Business Highlights (Jan. – Dec. 2018)
FY12/18 Consolidated Business Highlights (Jan. – Dec. 2018) Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 5
Slide 6: FY12/18 Comparison vs. Revised Business Forecast
FY12/18 Comparison vs. Revised Business Forecast Net sales (achievement rates of 102.8%) and operating income (104.9%) for the fiscal year ended December 2018 each surpassed our revised business forecasts (announced on AugAug. 10 10, 2018) for this period due to strong demand for hiring among clie
Slide 7: FY12/18 Comparison vs. Revised Business Forecast (Segment Sales)
FY12/18 Comparison vs. Revised Business Forecast (Segment Sales) The Short-Term Operational Support Business, which is a mainstay business of our Group, exceeded the revised business forecast for the fiscal year ended December 2018, consequently consolidated net sales exceeded the revised forecast
Slide 8: Consolidated: FY12/18 Year-on-Year Comparison (Net Sales and Operating Income)
Consolidated: FY12/18 Year-on-Year Comparison 【Factors Behind the Change in Net Sales】 Net sales increased by 21.2% year-on-year attributed mainly to growth in “BPO” from the inclusion of the results of BOD Co., Ltd., in addition to higher sales of the existing mainstay services of “Placement” and
Slide 9: Consolidated: FY12/18 Year-on-Year Comparison
Consolidated: FY12/18 Year-on-Year Comparison Ordinaryy income ended upp ppostingg an increase of onlyy 20.0% yyear-on-year y due to an impairment p loss ((share of loss of entities accounted for using equity method) associated with a decline in the share value of Advancer Global Limited (an affil
Slide 10: FY12/18 Segment Highlights: Short-Term Operational Support Business Earnings
FY12/18 Segment Highlights Short Term Operational Support Short-Term Business Earningsg (Jan. – Dec. 2018) Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 10
Slide 11: Short-Term: FY12/18 Year-on-Year Comparison
Short-Term: FY12/18 Year-on-Year Comparison 【Factors Behind the Change in Net Sales】 Net sales increased by 25.8% year-on-year due mainly to growth in “BPO” associated with the inclusion of the earnings of BOD Co., Ltd., in addition to higher net sales of the existing mainstay services of “Placeme
Slide 12: Short-Term: FY12/18 Year-on-Year Comparison (by Service Category)
Short-Term: FY12/18 Year-on-Year Comparison (by Service Category) (Million yen) FY12/17 FY12/18 Difference Rate of Throughout the year, existing mainstay “Placement” change and “BPO” services saw growth thanks to sustained strong demand for hiring amongst client companies and increases in total an
Slide 13: FY12/18 Segment Highlights: Sales Support Business Earnings
FY12/18 Segment Highlights Sales Support Business Earnings (J (Jan. – Dec. D 2018) Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 13
Slide 14: Sales: FY12/18 Year-on-Year Comparison
Sales: FY12/18 Year-on-Year Comparison 【Factors Behind the Change in Net Sales】 Net sales declined by 7.9% year-on-year due to slow sales of telecommunications products throughout the year. th 【Factors Behind the Change in Operating Income】 Operating p g income declined by y 46.5% %yyear-on-year
Slide 15: FY12/18 Segment Highlights: Security, Other Businesses Earnings
FY12/18 Segment Highlights Security, Other Businesses Earnings (Jan – Dec. (Jan. Dec 2018) Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 15
Slide 16: Security, Other: FY12/18 Year-on-Year Comparison
Security, Other: FY12/18 Year-on-Year Comparison 【Factors Behind the Change in Net Sales】 Net sales increased by 10.8% year-on-year due mainly to an increase in the number of long-term security projects in the “Security Security Business” Business , the core service of this segment segment. 【Facto
Slide 17: FY12/18 Summary
FY12/18 Summary Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 17
Slide 18: Business Targets and Strategy for the Fiscal Year Ended December 2018
Business Targets and Strategy for the Fiscal Year Ended December 2018 Business Targets for the Fiscal Year Ended December 2018 ● Achieve record high profits* by reinforcing group synergies and further increasing productivity * “Record high profits” indicates operating income of 4,720 million yen rec
Slide 19: Progress of Strategies 1 to 3
Progress of Strategies 1 to 3 ● Strategy 1: Improve Recruitment Efficiency and Staff Operation Rate We controlled recruitment expense ratio and made efforts to increase hiring efficiency throughout the year by continually reviewing the allocation of investments in recruitment expenses. In addition
Slide 20: Strategy 4: Other Strategies
Strategy 4: Other Strategiy ● Establishment of new company Fullcast Global Co., Ltd. (Oct.) This company’s mission is to expand the Short-Term Operational Support Business through job placement support for global human resources, identifying a new workforce segment and providing them to client com
Slide 21: Ongoing Initiatives
Ongoing Initiatives The number of hires was 502,349, which marks a 17.8% increase over the previous year. ● Initiative I iti ti 1 1: IIncrease Hi Hiring i C Capability bilit We lowered the recruitment expense to gross income ratio throughout the year and are now able to efficiently acquire large
Slide 22: FY12/19 Business Targets and Strategy
FY12/19 Business Targets and Strategy Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 22
Slide 23: Business Targets and Strategy for the Fiscal Year Ending December 2019
Business Targets and Strategy for the Fiscal Year Ending December 2019 Business Targets for the Fiscal Year Ending December 2019 ● Expand Short- Short-Term Operational Support Business and promote to cultivate and gain new business opportunities in neighboring business fields Business Strategy for t
Slide 24: Business Strategy for the Fiscal Year Ending December 2019
Business Strategy for the Fiscal Year Ending December 2019 ● Expand Short-Term Operational Support Business Continue opening new offices to create new business locations (ca. 10 locations/year) Capture short-term demand from the Rugby World Cup and the Tokyo Olympics Improve BPO service menu a
Slide 25: FY12/19 Business Forecasts
FY12/19 B i Business F Forecasts t Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 25
Slide 26: FY12/19 Business Forecasts
FY12/19 Business Forecasts While maintainingg a focus on expanding p g our mainstay y Short-Term Operational p Support pp Business,, we will p promote to cultivate and gain new business opportunities in neighboring business fields and endeavor to achieve further business growth by boosting sales a
Slide 27: FY12/19 Business Forecasts by Segment and Service Category
FY12/19 Business Forecasts by Segment and Service Category We plan to increase profits by focusing on growth of our “Placement” and “BPO” services, which are the core services in our Short-Term Operational Support Business. “Outsourcing" will expand on the back of the addition of Minimaid Servic
Slide 28: Progress and Review of Medium-Term Management Plan (FY16–FY20)
Progress and P d Review R i off Medium-Term Medium Term Management Plan (FY16–FY20) Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 28
Slide 29: Progress of Medium-Term Management Plan (FY16–FY20)
Progress of Medium-Term Management Plan (FY16–FY20) (Billion yen) Operating income M di Medium-Term T Management M t Plan Pl 59 Results 50 44 We achieved the final fiscal year target 41 ( (fiscal yyear ending g Dec. 2020)) for the 35 "Medium-Term Management Plan 29 30 (announced Feb. 12, 2016) of
Slide 30: Review of Medium-Term Management Plan (FY19–FY20)
Review of Medium-Term Management Plan (FY19–FY20) Based on the achievement of the (Unit: billion yen, unless otherwise specified) Medium-Term Management Plan targets, we reviewed the Plan for the FY12/19 FY12/20 fiscal years ending December 2019 to Consolidated total 42.3 46.0 2020. I Short-Term I
Slide 31: Main Management Indicators of the Medium-Term Management Plan
Main Management Indicators of the Medium-Term Management Plan (FY16–FY20) Indicators used to realize our vision of “enhancing sustained of corporate value” ROE 20% or more Indicator for shareholder returns Totall Return T R Ratio 50% Indicator underpinning our “Basic Policy on Capital” D/E Ratio 0 5
Slide 32: Dividends and Dividend Forecasts for FY12/19
Dividends and Dividend Forecasts for FY12/19 Copyright © 2019 by FULLCAST HOLDINGS CO., LTD. All rights reserved 32
Slide 33: Dividend of Surplus and Share Repurchase Program
Dividend of Surplus and Share Repurchase Program At the Board of Directors’ Meetingg held on Februaryy 8, 2019, we ppassed a resolution to pay an 18 yen per share dividend from retained earnings. ■ Dividend details Most recent dividend forecast Actual Results for Full Previous term results Amount
Slide 34: Dividend of Surplus and Share Repurchase Program
Dividend of Surplus and Share Repurchase Program At the Board of Directors’ Meeting held on February 8, 2019, we passed a resolution regarding repurchase of treasury shares by partial tender offer in addition to market purchase. ■ Share Repurchase Program Repurchase method Type of stock Total of a
Slide 35: Dividends in the Coming Fiscal Year
Dividends in the Coming Fiscal Year ■ Dividend Forecast End of 1H (Interim Dividend) Year-End (Year-End Dividend) Total Record date Jun. 30, 2019 Dec. 31, 2019 — Dividend per share 19 yen 19 yen 38 yen Previous term results 14 yen 18 yen 32 yen (FY12/18) ■ Policy for Next-Term Dividends In order t
Slide 36: (Reference) Basic Stance on Capital Policy
(Reference) Basic Stance on Capital Policy ■ Basic Stance on Capital Policy The Fullcast Group maintains a basic policy of maximizing capital efficiency and securing financial soundness to achieve sustained improvement in corporate value. Maintain a total return ratio of 50% relative to shareholde
Slide 37: Providing the best places for people to bring out their best
P Providing idi theth best b t places l f for people to bring out their best. ADR (American Depositary Receipts) Program: Program Type: Sponsored Level 1 Exchange Ratio with Underlying Stock: 1ADR = 1 Underlying Stock CUSIP Code: 35968P100 Symbol: FULCY [Inquiries] Depositary: The Bank of New York M