Fullcast Holdings Co., Ltd. · TSE:4848
Fullcast — FY2019 Earnings Presentation
34 slides from Fullcast's earnings presentation, Feb 7, 2020
Slide 1: Consolidated Business Results for the Fiscal Year Ended December 2019
Consolidated Business Results for the Fiscal Year Ended December 2019 (Jan.–Dec. 2019) February 7, 2020 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 translated document
Slide 2: Agenda
Agenda Ⅰ FY12/19 Consolidated Business Highlights (Jan.–Dec. 2019) Ⅱ FY12/19 Segment Highlights Short-Term Operational Support Business Earnings (Jan.–Dec. 2019) Ⅲ FY12/19 Segment Highlights Sales Support Business Earnings (Jan.–Dec. 2019) Ⅳ FY12/19 Segment Highlights Security, Other Businesses Earn
Slide 3: FY12/19 Consolidated Business Highlights
Ⅰ. FY12/19 Consolidated Business Highlights (Jan.–Dec. 2019) Copyright © 2020 by FULLCAST HOLDINGS CO., LTD. All rights reserved 3
Slide 4: FY12/19 Comparison vs. Business Forecast
FY12/19 Comparison vs. Business Forecast Consolidated net sales and operating profit both surpassed the full-year business forecast for the fiscal year ended December 2019 (105.2% and 105.8%, respectively), thanks primarily to steady sales in the core services of “Placement” and “BPO” in the mains
Slide 5: FY12/19 Comparison vs. Business Forecast (Segment Sales)
FY12/19 Comparison vs. Business Forecast (Segment Sales) All segments exceeded the business forecast for the fiscal year ended December 2019. Consequently, consolidated net sales achieved the forecast. (Million yen) FY12/19 Business FY12/19 Results Difference Achievement rate Forecast for Full-Yea
Slide 6: Consolidated: FY12/19 Year-on-Year Comparison
Consolidated: FY12/19 Year-on-Year Comparison 【Factors Behind the Change in Net Sales】 Net sales increased by 14.5% year-on-year, driven by the continuing trend of strong demand for short-term staffing in our mainstay Short-Term Operational Support Business. 【Factors Behind the Change in Operating
Slide 7: Consolidated: FY12/19 Year-on-Year Comparison
Consolidated: FY12/19 Year-on-Year Comparison Ordinary profit increased by 33.7% year-on-year thanks to growth in operating profit that offset the impairment loss (share of loss of entities accounted for using equity method) associated with a decline in the share value of AGL (an affiliate under e
Slide 8: FY12/19 Segment Highlights: Short-Term Operational Support Business
Ⅱ. FY12/19 Segment Highlights Short-Term Operational Support Business Earnings (Jan.–Dec. 2019) Copyright © 2020 by FULLCAST HOLDINGS CO., LTD. All rights reserved 8
Slide 9: Short-Term: FY12/19 Year-on-Year Comparison
Short-Term: FY12/19 Year-on-Year Comparison 【Factors Behind the Change in Net Sales】 Net sales increased by 15.7% year-on-year, driven by growth in “Dispatching” service by our efforts to satisfy the long-term human resource needs of the client companies, in addition to leading of mainstay “Placem
Slide 10: Short-Term: FY12/19 Year-on-Year Comparison (By Service Category)
Short-Term: FY12/19 Year-on-Year Comparison (By Service Category) (Million yen) Sales of both services “Placement” and “Payroll Rate of Management” increased, due mainly to our ability FY12/18 FY12/19 Difference to address the short-term staffing needs of client change companies by providing mains
Slide 11: FY12/19 Segment Highlights: Sales Support Business
Ⅲ. FY12/19 Segment Highlights Sales Support Business Earnings (Jan.–Dec. 2019) Copyright © 2020 by FULLCAST HOLDINGS CO., LTD. All rights reserved 11
Slide 12: Sales: FY12/19 Year-on-Year Comparison
Sales: FY12/19 Year-on-Year Comparison 【Factors Behind the Change in Net Sales】 Net sales increased by 4.8% year-on-year, despite the impact of the reorganization of unprofitable sites in the previous fiscal year. 【Factors Behind the Change in Operating Profit】 Operating profit increased by 22.8
Slide 13: FY12/19 Segment Highlights: Security, Other Businesses
Ⅳ. FY12/19 Segment Highlights Security, Other Businesses Earnings (Jan.–Dec. 2019) Copyright © 2020 by FULLCAST HOLDINGS CO., LTD. All rights reserved 13
Slide 14: Security, Other: FY12/19 Year-on-Year Comparison
Security, Other: FY12/19 Year-on-Year Comparison 【Factors Behind the Change in Net Sales】 Net sales increased by 10.5% year-on-year, due mainly to an increase in the number of long-term security projects acquired. 【Factors Behind the Change in Operating Profit】 Operating profit increased by 39.1
Slide 15: FY12/19 Summary
V. FY12/19 Summary Copyright © 2020 by FULLCAST HOLDINGS CO., LTD. All rights reserved 15
Slide 16: Business Targets and Strategy for the Fiscal Year Ended December 2019
Business Targets and Strategy for the Fiscal Year Ended December 2019 Business Targets for the Fiscal Year Ended December 2019 ● Expand Short-Term Operational Support Business and promote to cultivate and gain new business opportunities in neighboring business fields Business Strategy for the Fiscal
Slide 17: Business Strategy for the Fiscal Year Ended December 2019
Business Strategy for the Fiscal Year Ended December 2019 Progress of Strategies 1 to 3 Strategy 1: Expand Short-Term Operational Support We opened a total of 13 new sales offices. At the same time, we closed 8 registration Business centers following the penetration of “online registration service
Slide 18: Ongoing Initiatives
Ongoing Initiatives ● Initiative 1: The number of hires totaled 489,962 Strengthen Hiring Capability (4.3% decline as compared to the previous year), because we determined that the number of hires on par with the previous 502,349 year would be enough to secure the 480,962 number of operating worke
Slide 19: Ongoing Initiatives
Ongoing Initiatives ● Initiative 3: New businesses and M&A ● Establishment of new company Fullcast International Co., Ltd. established and started operations (December) Fullcast International Co., Ltd. started placement services for foreign nationals with specified skills. In addition, Fullcast Gl
Slide 20: FY12/20 Business Targets and Strategy
Ⅵ. FY12/20 Business Targets and Strategy Copyright © 2020 by FULLCAST HOLDINGS CO., LTD. All rights reserved 20
Slide 21: Business Targets and Strategy for the Fiscal Year Ending December 2020
Business Targets and Strategy for the Fiscal Year Ending December 2020 Business Targets for the Fiscal Year Ending December 2020 ● Achieving the targets of the final fiscal year of the Medium-Term Management Plan by expand Short-Term Operational Support Business and promote to gain new business oppo
Slide 22: Business Strategy for the Fiscal Year Ending December 2020
Business Strategy for the Fiscal Year Ending December 2020 ● Strengthen customer contact points Continue opening new offices (ca. 10 locations/year) Capture short-term demand from the Tokyo Olympics Increase sales staff dedicated to BPO services ● Improve recruitment efficiency and staff utili
Slide 23: FY12/20 Business Forecasts
Ⅶ. FY12/20 Business Forecasts Copyright © 2020 by FULLCAST HOLDINGS CO., LTD. All rights reserved 23
Slide 24: FY12/20 Business Forecasts
FY12/20 Business Forecasts While maintaining a focus on expanding our mainstay Short-Term Operational Support Business, we will promote to gain new business opportunities in neighboring business fields and endeavor to achieve further business growth by boosting sales across the entire Group. Als
Slide 25: FY12/20 Business Forecasts by Segment and Service Category
FY12/20 Business Forecasts by Segment and Service Category We plan to increase sales by focusing on growth in our mainstay Short-Term Operational Support Business. (Million yen) FY12/20 Business FY12/19 Results for Rate of change Forecast for Full-Year Full-Year Short-Term Operational Net Sales 42
Slide 26: Progress of Medium-Term Management Plan (FY16-FY20)
Ⅷ. Progress of Medium-Term Management Plan (FY16-FY20) Copyright © 2020 by FULLCAST HOLDINGS CO., LTD. All rights reserved 26
Slide 27: Progress of Medium-Term Management Plan (FY16-FY20)
Progress of Medium-Term Management Plan (FY16-FY20) (Billion yen) Operating Profit 8.2 7.9 7.2 (Revised) 6.8 Medium-Term We achieved the operating profit 5.9 Management Plan target of 6.8 billion yen set for the Medium-Term Management Plan 4.4 Results (revised Feb. 8, 2019) in the fiscal year ende
Slide 28: Return profits to shareholders for FY12/19 and FY12/20
Ⅸ. Return profits to shareholders for FY12/19 and FY12/20 Copyright © 2020 by FULLCAST HOLDINGS CO., LTD. All rights reserved 28
Slide 29: Dividend of Surplus and Share Repurchase Program
Dividend of Surplus and Share Repurchase Program At the Board of Directors' Meeting held on February 7, 2020, we passed a resolution to pay a 21 yen per share dividend from retained earnings. ■ Dividend details Most recent dividend forecast Current term results Previous term results Amount determi
Slide 30: Dividend of Surplus and Share Repurchase Program
Dividend of Surplus and Share Repurchase Program At the Board of Directors' Meeting held on February 7, 2020, we passed a resolution regarding repurchase of treasury shares by tender offer. ■ Share Repurchase Program Repurchase method Type of stock Total of acquirable shares Total value of repurch
Slide 31: Dividends in the Coming Fiscal Year
Dividends in the Coming Fiscal Year ■ Dividend Forecast End of 1H Year-end Total (Interim dividend) (Year-end dividend) Record date Jun. 30, 2020 Dec. 31, 2020 － Dividend per share 22 yen 22 yen 44 yen FY12/19 19 yen 21 yen 40 yen ■ Policy for Next-Term Dividends In order to continue to realize RO
Slide 32: (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. Maintaining a total return ratio of 50% relative to shareho
Slide 33: Disclaimer
Disclaimer Fullcast Holdings’ IR materials have been prepared for the purpose of providing information about the company, and are not a solicitation for investment. Readers are advised to use these materials at their own discretion and are solely responsible for all decisions based on such use. Al
Slide 34: Providing the best place for people to bring out their best.
Providing the best place 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 Depositary: The Bank of New York Mellon [Inquiries] 240 Greenwi