Recruit Holdings Co., Ltd. · TSE:6098
Recruit — Shareholder Meeting (June 2017)
24 slides from Recruit's shareholder meeting presentation, Jun 20, 2017
Slide 1: Ordinary General Meeting of Shareholders
57th Ordinary General Meeting of Shareholders Frecruit June 20, 2017 Recruit Holdings Co.,Ltd.
Slide 2: Recruit Holdings 57th Fiscal Year Consolidated Earnings Results Summary
Recruit Holdings 57‘ Fiscal Year Consolidated Earnings Results Summary (April1, 2016 - March 31, 2017) | would like to explain results of fiscal year 2016, 57th fiscal year of Recruit Holdings.
Slide 3: Consolidated Earnings
1 Consolidated Earnings 56" Fiscal Year S74 Flecal Year (JPY Bn) Results Results YoY Netsales 1,588.6 1,839.9 +15.8% EBITDA 202.2 230.8 +14.1% EBITDA margin 12.7% 12.5% -0.2pt Operating income 114.0 127.2 411.6% Ordinary income 119.3 131.7 +10.4% wernt Ce Adjusted EPS (JPY) 209.57 241.27 +15.1% This
Slide 4: Reference
I Reference [EBITDA Operating income + Depreciation and amortization + Amortization of goodwill 1 Goodwill Stock acquisition price — Equity of acquired company [ Adjusted EPS Adjusted net income / (number of shares issued at the end of the period number of treasury stock at the end of the period) Fo
Slide 5: Business Segments
I Business Segments | Marketing Media Segment HR Media Segment | Staffing Segment Next, | would like to explain our consolidated performance for each Business Segment. We reported our results under three business segments of: Marketing Media , HR Media, and Staffing. From 58* fiscal year, we changed
Slide 6: Sales by Segment
I Sales by Segment 7 +15.8% prem) 1,839.9 ee ee (JPY Bn} ween -— Marketing Media 1,588.6 "376.3 ~ 477% 349.3 a a 405.3 ~— pene 359.20 +e i _7~ Staffing +20.1% _— Other 7 — Reconciliation 15.2 15.8 56% FY 57% FY Here you can see our sales by segment. Sales were strong in all of the three main segment
Slide 7: EBITDA by Segment
I EBITDA by Segment 230.8 +14.1% PY Bn) 202.2 — MarketingMedia 102.0 +9.4% 93.2 eee HR Media +7.6% Staffing +27.6% Other Reconciliation -16.7 | -16.2 orcs 6M FY 57% FY Next I would like to show you EBITDA performance by Segment. Allthree segments recorded EBITDA increases.
Slide 8: Segment Earnings Summary
| Segment Earnings Summary Next, | would like to explain earnings summary by segment.
Slide 9: Marketing Media
I Marketing Media Marketing Media Life Event Lifestyle suumo Sy CD74 HOT PEPPER al 7 IL) HOT PEPPER eauly Marketing Media mainly consists of Life Event and Lifestyle. Life Event includes SUUMO, a housing information service, Zexy, a bridal information service. Lifestyle includes Jalan, a travel info
Slide 10: Marketing Media Sales & EBITDA
I Marketing Media Sales & EBITDA (JPY Bn) Sales +7.7% (PY Bn) EBITDA n) n) 376.3 +9.4% 349.3 --- Life 3.2 1020 Event a +10.2% oe Lifestyle +2.7% Other Reconciliation 57 FY 56" FY 57" FY In Marketing Media, sales increased by 7.7% to 376.3 billion yen, as a result of the favorable trend in the Life E
Slide 11: Life Event Sales
I Life Event Sales +10.2% (JPY Bn) 197.4 179.0 Housing and . RealEstate +13.1% meen Bridal +1.8% 37.4 43.2 Reconciliation -0.0 L. 0.0 56% FY 57% FY Here you can see the breakdown of sales in the Life Event businesses. The Housing and Real Estate business sales increased by 13.1% year-on-year as a re
Slide 12: Lifestyle Sales
I Lifestyle Sales (Py Bn) 167.2 24.8 4.0 56 FY 18.7 04 57% FY +2.7% Travel -3.8% Dining +3.2% Beauty +24.4% Other Reconciliation Here is the breakdown of Sales in the Lifestyle businesses. Sales in the Travel business decreased year-on-year due to sales of shares of a subsidiary in the second quarte
Slide 13: HR Media
1 HR Media HR Media Domestic Recruiting Overseas Recruiting a@60— Rada indeed RECRUIT AGENT rein WORK Next | would like to explain the HR Media business. This segment is comprised of the Domestic Recruiting business and the Overseas Recruiting business. Domestic Recruiting includes Rikunabi-— a job
Slide 14: HR Media Sales & EBITDA
Sales in HR Media increased by 12.8% year-on-year to 405.3 billion yen, and EBITDA grew by 7.6% year-on-year to 94.6 billion yen. 1 HR Media Sales & EBITDA Sali (JPY Bn) = 405. 3 +12.8% (JPY Bn) EBITDA 359.2 --~ 88.0 94.6 Domestic Recruiting +4.2% Overseas - Recruiting +42.5% Other Reconciliation 56
Slide 15: Domestic Recruiting Sales
I Domestic Recruiting Sales +4.2% (JPY Bn) 255.9 266.6 ~ 56% FY 57% FY In the Domestic Recruiting business, we saw a solid trend both in full-time and part-time jobs and achieved sales growth of 4.2% year-on-year. This is a result of a healthy hiring environment as evidenced by the high ratio of job
Slide 16: Overseas Recruiting Sales
I Overseas Recruiting Sales 120.2 ~ +42.5% (JPY Bn) 57% FY In the Overseas Recruiting business, despite a negative impact from currency fluctuation, net sales increased by 42.5% year- on-year. The strong performance was primarily due to steady growth in customer usage driven by expansion of the sale
Slide 17: Staffing
I Staffing ra S Staffmark RECRUIT allel CHANDLER MACLEOD @29vI9-EZANW—-T * usg people Lastly, | would like to explain the Staffing business. The segment consists of Domestic Staffing and Overseas Staffing. Domestic Staffing includes Recruit Staffing Co., Ltd. and SERVICE HOLDINGS CO., LTD. Overseas
Slide 18: Staffing Sales & EBITDA
I Staffing Sales & EBITDA Sales EBITDA (JPY Bn) y~ +20.1% (JPY Bn) 1,068.7 427.8% 7 Domestic 63.3 890.0.” Staffing ot a +11.9% “ 49.6 . Overseas bee Staffing +27.2% 57 FY 56% FY 57 FY Sales in the Staffing business achieved 1,068.7 billion yen, an increase of 20.1% year-on-year. EBITDA grew by 27.6%
Slide 19: Domestic Staffing Sales
I Domestic Staffing Sales 463.4 ~ +11.9% (JPY Bn) = 4141 56% FY 57% FY In Domestic Staffing, while there has been a moderate market expansion in sales of temporary staffing services, we have focused on strengthening our sales capabilities. Sales continued to be strong mainly in clerical workers, eng
Slide 20: Overseas Staffing Sales
I Overseas Staffing Sales +27.2% (JPY Bn) . 605.2 ~ 475.8 56% FY 57% FY Sales in Overseas Staffing increased by 27.2% year-on-year due to the full-year contribution of overseas subsidiaries, Chandler Macleod Group Limited in Australia and Atterro,Inc. in North America; and the contribution of USG Pe
Slide 21: Summary of Consolidated Balance Sheets
nH Summary of Consolidated Balance Sheets Next I would like to review the consolidated balance sheet as of the end of 57*' fiscal year. 21
Slide 22: Consolidated Balance Sheets as of the end of 57th Fiscal Year
I Consolidate Balance Sheets as of the end of 57" Fiscal Year Change in assets - Current assets +¥124.6 Bn + Noncurrent assets +¥174.2 Bn Change in liabilities * Current liabilities E . +¥77.4Bn quity + Noncurrent liabilities 77856 +¥219.9Bn .5 Bn . . (e¥1spn) Changein equity Total assets at the end
Slide 23: Dividend Payout
| Dividend Payout in 57** fiscal year Lastly, | would like to explain the dividend payout in 57** fiscal year. 23
Slide 24: Per-share dividend in 57th fiscal year
Per-share dividend in 57* fiscal year ¥65 Payout ratio: around 30% of amortization of goodwill + extraordinary profit/losses Total dividend payout: ¥36.2 Bn As we announced on February 13, 2017, we set a consolidated payout ratio of approximately 30% of net income before amortization of goodwill exc