Careerlink Co., Ltd. · TSE:6070

Careerlink — H1 FY2/20 Earnings Presentation

42 slides from Careerlink's earnings presentation, Oct 25, 2019

  1. Slide 1: Earnings Presentation First Half Ended August 31, 2019

    Earnings Presentation First Half Ended August 31, 2019 CAREERLINK CO., LTD. October 25 (Fri.), 2019 President & Representative Director Stock Code：6070 President & Executive Office Tokyo Stock Exchange, First Section Motoaki Narusawa Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.

  2. 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 changes in the economy and the human resources in

  3. Slide 3: Agenda

    Agenda Ⅰ. Financial Highlights for the First Half of FY2/20 Ⅱ. Annual Plan for FY2/20 Ⅲ. Medium-Term Management Plan (FY2/20-FY2/22) Ⅳ. Reference Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved. 3

  4. Slide 4: Financial Highlights for the First Half of FY2/20

    Ⅰ. FINANCIAL HIGHLIGHTS FOR THE FIRST HALF OF FY2/20 Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.

  5. Slide 5: Consolidated Financial Highlights (Sales)

    Consolidated Financial Highlights (Sales) Sales of outsourced tasks for cashless payment processing increased and orders 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

  6. Slide 6: Consolidated Financial Highlights (Profits)

    Consolidated Financial Highlights (Profits) Earnings were much higher than one year earlier. One reason was an increase in gross profit resulting mainly from more sales from projects with a high gross profit margin, such as outsourced tasks for cashless payment processing and one-time contracts for

  7. Slide 7: Segment Information (1) Clerical HR Services Sales

    Segment Information (1) 【 Clerical Human Resource Services（Sales) 】 The acquisition of one-time orders involving the consumption tax hike were higher than expected and there was a large volume of projects for telemarketing companies and financial institutions. However, the end of a large private-sec

  8. Slide 8: Segment Information (1) Clerical HR Services Profits

    Segment Information (1) 【 Clerical Human Resource Services（Profits）】 Earnings improved significantly because of an increase in the gross profit caused by growth in sales from high-margin projects, mainly one-time orders involving the consumption tax hike, a higher retention rate in the temporary pla

  9. Slide 9: Breakdown: Business Process Outsourcing

    Breakdown of Clerical Human Resource Services ①Business Process Outsourcing Capturing new orders for BPO services, including one-time contracts involving the consumption tax hike, was one goal in this business sector. There was also an increase in the volume of business at some current BPO projects.

  10. Slide 10: Breakdown: Customer Relationship Management

    Breakdown of Clerical Human Resource Services ②Customer Relationship Management There was a large volume of orders from telemarketing companies in the Tokyo, Osaka and Fukuoka areas and other areas of Japan and orders from securities companies and other financial services companies remained strong.

  11. Slide 11: Breakdown: Office Services

    Breakdown of Clerical Human Resource Services ③ Office Services Orders from securities companies and other financial services companies remained strong and there were new orders from private-sector companies and the public sector. （Million yen） 2,000 1,783 Sales 1,783 million yen 1,556 1,500 1,000

  12. Slide 12: Segment Information (2) Manufacturing HR Services Sales

    Segment Information (2) 【Manufacturing Human Resource Services (Sales)】 Orders from manufacturing and processing companies decreased because of slowing economic growth in China but orders in the food processing category remained strong. （Million yen） 2,000 1,619 1,500 1,453 Sales 1,619 million yen

  13. Slide 13: Segment Information (2) Manufacturing HR Services Profits

    Segment Information (2) 【Manufacturing Human Resource Services (Profits)】 The gross profit benefited from higher food processing sales but was reduced by the decline in manufacturing and processing category sales. In addition, personnel expenses increased because of higher expenses for recruiting an

  14. Slide 14: Segment Information (3) Sales HR Services

    Segment Information (3) NEW 【Sales Human Resource Services (Sales・Profits)】 The performance reflects the geographic expansion of the receipt of orders for outsourced cashless payment processing activities that Careerlink started in October 2018. （Million yen） 1,200 1,155 Sales 1,155 million yen （-3

  15. Slide 15: Statements of Income

    Statements of Income 1H FY2/2019 1H FY2/2020 1H 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/%） 1,249 △ 131 Net sales 9,137 10,518 10,386 13.7 △ 1.2 Cleric

  16. Slide 16: Financial Condition

    Financial Condition End of FY2/19 1H FY2/20 (Consolidated) (Consolidated) Amount Amount Variance Main reasons for changes (Million yen) （Million yen） （Million yen） （Million yen） 5,117 6,005 Other current assets △72 Current assets 888 86.5% 88.4% Cash and deposits 393 Non-current 800 786 Notes and ac

  17. Slide 17: Cash Flows

    Cash Flows 1H FY2/19 1H FY2/20 Amount Amount Main reasons for changes （Million yen） （Million yen） （Million yen） Profit before income taxes 346 Increase in accounts payable 380 Operating activities 263 713 Increase in advances received 36 Income taxes paid △37 Payments of leasehold and guarantee depo

  18. Slide 18: Annual Plan for FY2/20

    Ⅱ. ANNUAL PLAN FOR FY2/20 Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.

  19. Slide 19: Annual Plan for FY2/20 (consolidated)

    Annual Plan for FY2/20 (consolidated) The consolidated business forecast of FY2/20 announced at the beginning of the period will stay unchanged, since the uncertainty in Japan’s economy because of the consumption tax hike started in this October. Other reasons are the consideration of investing in i

  20. Slide 20: 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

  21. Slide 21: Business Strategy FY2/20 (1)

    Business Strategy FY2/20(1) Speed up establishment of a base to accomplish the medium-term plan goals ・Expand BPO operations by making demand involving tax hikes the primary target. ・Use joint activities with Daiko Securities Business for growth of services for financial institutions and system inte

  22. Slide 22: Business Strategy FY2/20 (2)

    Business Strategy FY2/20(2) ・Rapidly expand operations in eastern Japan. Manufacturing ・Strengthen the staffing services using foreign workers by Human targeting opportunities created by revisions to immigration Resource laws in japan. Services ・Create an environment that allows foreign workers to r

  23. Slide 23: Medium-Term Management Plan (FY2/20-FY2/22)

    Ⅲ. MEDIUM-TERM MANAGEMENT PLAN (FY2/20-FY2/22) Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.

  24. Slide 24: 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 （FY2/20～FY2/22） Accelerating strategies for growth Focus on building the foundation of bus

  25. Slide 25: Medium-term Strategic Goals

    Medium-term Strategic Goals Make sales human resource services the third core business, increase the size of all business sectors and build a foundation for sustained growth. Become more competitive in the temporary staffing Clerical Human market. Strategy Target high-volume BPO projects in the priv

  26. Slide 26: Medium-term Strategy Numerical Goals

    Medium-term Strategy Numerical Goals FY2/22 Aim for 25,953 ｍillion yen Sales 438 million yen Profit attributable to owners of parent FY2/19 FY2/22 Actual Plan（Million yen） （Million yen） Net sales 25,953 Operating profit 18,624 673 % to sales 187 2.6% 1.0% Ordinary profit 670 % to sales 290 2.6% Prof

  27. Slide 27: Medium-Term Management Plan Segment Policy (1)

    Medium-Term Management Plan Segment Policy① 1 FY2/22 Sales （Plan） VS.FY2/20 Plan Business Process Outsourcing segment 6.4 billion yen 8.2％ UP Strengthen the management foundation of Careerlink group by expanding the public sector service segment. 2 FY2/22 Sales （Plan） VS.FY2/20 Plan Customer Relatio

  28. Slide 28: Medium-Term Management Plan Segment Policy (2)

    Medium-Term Management Plan Segment Policy② 4 Sales Human FY2/2022 Sales （Plan） VS.FY2/20 Plan 3.1 billion yen Resource Services segment 18.8％ Up Build a strong foundation for profit by reinforce recruiting activities . 5 Manufacturing FY2/2022 Sales （Plan） VS.FY2/20 Plan 6.2 billion yen Human Resou

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: Reference

    Ⅳ. REFERENCE Copyright（C）2018CAREERLINK CO.,LTD. All Rights Reserved.

  32. Slide 32: Company Overview

    Company Overview 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 Resource Service Business ■Business Process

  33. Slide 33: Significant Events and Sales Growth

    10,000 15,000 20,000 25,000 0 5,000 Company established to provide （Million yen） general temporary staffing ‘96 services Received approval for a general temporary staffing service, started supplying office and call center workers, started what is now the Customer ‘97 Relationship Management business

  34. Slide 34: Goals of the Daiko Securities Business Alliance

    Goals of the Daiko Securities Business Alliance On February 23, 2018, Japan Business Service (JBS), which was a wholly owned subsidiary of Daiko Securities Business (DSB), became a wholly owned subsidiary of Careerlink. Also, a capital and business alliance agreement was signed with DSB. (1) March 3

  35. Slide 35: 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

  36. Slide 36: Business Activities (2) CRM and 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

  37. Slide 37: Three Key Strengths

    Three Key Strengths ◆Major examples of large projects Business Process Outsourcing 1 Plans for both higher efficiency and quality (More than 500 workers) • Proposals that encompass everything from business process FY2007 Tokyo area 2,000 designs to production, delivery, quality assurance and operati

  38. Slide 38: 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

  39. Slide 39: 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

  40. Slide 40: Three Key Strengths (3)-1

    Three Key Strengths (3)-1 ３ A framework for increasing workers’ skills and job satisfaction Workforce motivation management Age Composition of the Temporary A system where Careerlink and employees aim for growth 40% Placement Workers and the same goals  Opportunities to advance based on skills and

  41. Slide 41: 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

  42. Slide 42: Dedicated to sincerity and excellence for human resource services

    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.

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