Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
July 14, 2023
CONSOLIDATED FINANCIAL REPORT (Japanese GAAP)
FY2022 (June 1, 2022 to May 31, 2023)
Listed company name: | Pasona Group Inc. |
Listing stock exchange: | The Prime Section of the Tokyo Stock Exchange |
Securities code number: | 2168 |
URL: | https://www.pasonagroup.co.jp |
Representative: | Yasuyuki Nambu, Group CEO and President |
For further information contact: Yuko Nakase, Senior Managing Executive Officer and CFO Tel. +81-3-6734-0200
Date of Annual General Meeting of Shareholders: August 24, 2023
Scheduled payment date of cash dividends: August 10, 2023
Scheduled filing date of the securities report: August 25, 2023
Supplemental materials prepared for financial results: Yes
Holding of financial results meeting: Yes (for analysts and institutional investors)
(All amounts are in millions of yen rounded down unless otherwise stated.)
1. CONSOLIDATED BUSINESS RESULTS
- Consolidated Financial Results
Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.
Operating | Ordinary | Profit | |||||||||||||||||
Net Sales | attributable to owners | ||||||||||||||||||
Income | Income | ||||||||||||||||||
of parent | |||||||||||||||||||
% | % | % | % | ||||||||||||||||
FY2022 | 372,579 | 1.8 | 14,377 | (34.9) | 15,366 | (31.7) | 6,099 | (29.3) | |||||||||||
FY2021 | 366,096 | 9.4 | 22,083 | 10.7 | 22,496 | 10.4 | 8,621 | 27.1 | |||||||||||
(Note) Comprehensive income | FY2022: ¥10,468 million ((27.5)%) | FY2021: ¥14,433 million | (40.8%) | ||||||||||||||||
Net Income | Diluted | Ordinary Income | Operating Income | ||||||||||||||||
Net Income | Return on Equity | ||||||||||||||||||
per Share | to Total Assets | to Net Sales | |||||||||||||||||
per Share | |||||||||||||||||||
Yen | Yen | % | % | % | |||||||||||||||
FY2022 | 155.70 | 155.22 | 11.7 | 6.4 | 3.9 | ||||||||||||||
FY2021 | 220.19 | 219.41 | 19.6 | 12.7 | 6.0 | ||||||||||||||
(Reference) Equity in earnings of unconsolidated subsidiaries and affiliates | |||||||||||||||||||
FY2022: ¥153 million | FY2021: ¥142 million | ||||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||||
Total Assets | Net Assets | Equity Ratio (%) | Net Assets per Share | ||||||||||||||||
(Yen) | |||||||||||||||||||
May 31, 2023 | 275,504 | 71.624 | 19.6 | 1,378.40 | |||||||||||||||
May 31, 2022 | 203,746 | 67,146 | 24.5 | 1,276.00 |
(Reference) Equity As of May 31, 2023: ¥53,998 million As of May 31, 2022: ¥49,986 million
(Note) Total assets for the fiscal years ended May 31, 2022 and May 31, 2023 include temporary "deposits received" from customers for contracted projects and the corresponding "cash and deposits" in assets and liabilities. For details, please refer to "1. Summary of Business Results, etc. (2) Summary of Financial Position for the Fiscal Year under Review."
- 1 -
(3) Consolidated Cash Flows
Cash Flows from | Cash Flows from | Cash Flows from | Cash and Cash | |
Equivalents, | ||||
Operating Activities | Investing Activities | Financing Activities | ||
End of Period | ||||
FY2022 | 5,961 | (12,502) | (2,292) | 47,919 |
FY2021 | 10,115 | (29,624) | 23,543 | 56,578 |
2. DIVIDENDS
Dividends per Share (Yen) | Total | Dividend | Ratio of | |||||||||||||||||
End of | End of | End of | Dividend | Dividends to | ||||||||||||||||
Fiscal | Payout Ratio | |||||||||||||||||||
First | Second | Third | Annual | Payment | Net Assets | |||||||||||||||
Year-End | (Consolidated) | |||||||||||||||||||
Quarter | Quarter | Quarter | (Annual) | (Consolidated) | ||||||||||||||||
FY2021 | - | 0.00 | - | 35.00 | 35.00 | 1,396 | 15.9% | 3.1% | ||||||||||||
FY2022 | - | 0.00 | - | 35.00 | 35.00 | 1,396 | 22.5% | 2.6% | ||||||||||||
FY2023(Forecast) | - | 0.00 | - | 35.00 | 35.00 | 27.4% | ||||||||||||||
(Note) Breakdown of year-end dividend for the fiscal year ending May 31, 2022 | ||||||||||||||||||||
Ordinary dividend ¥30.00 | Special dividend ¥5.00 | |||||||||||||||||||
3. FORECAST OF RESULTS FOR THE FISCAL YEAR ENDING MAY 31, 2024 | ||||||||||||||||||||
Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year. | ||||||||||||||||||||
Profit attributable to | Net | |||||||||||||||||||
Net Sales | Operating Income | Ordinary Income | Income per | |||||||||||||||||
owners of parent | ||||||||||||||||||||
Share | ||||||||||||||||||||
% | % | % | % | Yen | ||||||||||||||||
FY2023 First Half | 185,500 | 0.8 | 6,000 | (10.9) | 5,800 | (22.0) | 1,800 | (34.2) | 45.95 | |||||||||||
FY2023 Full Fiscal Year | 390,000 | 4.7 | 16,000 | 11.3 | 15,700 | 2.2 | 5,000 | (18.0) | 127.63 |
4. NOTES
-
Changes in significant subsidiaries during the fiscal year under review: None
(Changes in specified subsidiaries that caused changes in the scope of consolidation) - Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies in line with revisions to accounting and other standards: None
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Number of shares issued and outstanding (common shares)
- Number of shares issued and outstanding as of the period-end (including treasury shares)
May 31, 2023: | 41,690,300 shares | May 31, 2022: 41,690,300 shares |
2) Number of treasury shares as of the period-end | ||
May 31, 2023: | 2,515,520 shares | May 31, 2022: 2,516,094 shares |
3) Average number of shares for the period | ||
FY2022: 39,174,636 shares | FY2021: 39,154,774 shares |
- 2 -
（Reference) NON-CONSOLIDATED BUSINESS RESULTS
1. FY2022 (June 1, 2022 to May 31, 2023)
(1) Non-consolidated Financial Results
Percentage figures represent year-on-year increase / (decrease). | |||||||||||||||
Net Sales | Operating Income (Loss) | Ordinary Income (Loss) | Net Income | ||||||||||||
% | % | % | % | ||||||||||||
FY2022 | 15,646 | 55.5 | 997 | - | 691 | - | 2,033 | 52.0 | |||||||
FY2021 | 10,060 | (30.5) | (3,655) | - | (4,231) | - | 1,338 | 3.3 | |||||||
Net Income per Share | Diluted Net Income per Share | ||||||||||||||
Yen | Yen | ||||||||||||||
FY2022 | 51.90 | - | |||||||||||||
FY2021 | 34.18 | - | |||||||||||||
(2) Non-Consolidated Financial Position | |||||||||||||||
Total Assets | Net Assets | Equity Ratio (%) | Net Assets per Share (Yen) | ||||||||||||
May 31, 2023 | 97,963 | 19,396 | 19.8 | 495.11 | |||||||||||
May 31, 2022 | 89,955 | 18,758 | 20.9 | 478.85 | |||||||||||
(Reference) Equity as of May 31, 2023: ¥19,396 million | As of May 31, 2022: ¥18,758 million |
(Note)
The Company has introduced "Board Benefit Trust (BBT)" and "Employment Stock Ownership Plan (J-ESOP)." The Company's shares in BBT and J-ESOP, which are reported as treasury shares under Shareholders' equity, are counted as the number of treasury shares as of the average number of shares outstanding for the period for the purpose not including computing earnings and net assets per share.
This Financial Report is not subject to a review conducted by CPA or audit firm.
Cautionary statement and other explanatory notes
The aforementioned forecasts are based on assumptions and beliefs in light of information available to management at the time of document preparation and accordingly include certain unconfirmed factors. As a result, readers are advised that actual results might differ materially from forecasts for a variety of reasons. Please refer to (Attachment) "1. Summary of Business Results, etc., (4) Future Outlook" on page 11 for the assumptions used in the forecast of business results.
We are planning to hold a financial results online meeting for analysts and institutional investors on July 19, 2023. Supplemental materials for the financial results will be posted on the Company's website (https://www.pasonagroup.co.jp/ir/) immediately after the meeting.
- 3 -
FY2022 Consolidated Financial Report
INDEX
1. Summary of Business Results, etc. | ・・・・・ | p.5 | |
(1) | Summary of Business Results for the Fiscal Year under Review | ・・・・・ | P 5 |
(2) | Summary of Financial Position for the Fiscal Year under Review | ・・・・・ | P.10 |
(3) | Summary of Cash Flows for the Fiscal Year under Review | ・・・・・ | P.10 |
(4) | Future Outlook | ・・・・・ | P.12 |
(5) | Policy on the Appropriation of Profits and Dividends for FY2021 and | ・・・・・ | P.12 |
FY2022 | |||
2. Basic Consideration on Selecting our Accounting Standard | ・・・・・ | p.12 | |
3. Consolidated Financial Statements and Primary Notes | ・・・・・ | P.13 | |
(1) | Consolidated Balance Sheets | ・・・・・ | p.13 |
(2) | Consolidated Statements of Income & Comprehensive Income | ・・・・・ | p.16 |
(3) | Consolidated Statements of Changes in Shareholders' Equity | ・・・・・ | p.18 |
(4) | Consolidated Statements of Cash Flows | ・・・・・ | p.20 |
(5) | Note to Consolidated Financial Statements | ・・・・・ | p.22 |
(Notes to Going Concern Assumption) | ・・・・・ | p.22 | |
(Important Items Considered Fundamental | ・・・・・ | p.22 | |
to the Preparation of Consolidated Financial Statements） | |||
(Segment Information, etc.) | ・・・・・ | p.23 | |
(Per Share Information) | ・・・・・ | p.28 | |
(Important Subsequent Event) | ・・・・・ | p.28 |
- 4 -
1. Summary of Business Results, etc.
-
Summary of Business Results for the Fiscal Year under Review i) Business results for the fiscal year ended May 31, 2023
During the consolidated fiscal year under review, the Japanese economy continued its gradual recovery as the severe movement restrictions associated with the spread of COVID-19 infection eased toward the end of the fiscal year. On the other hand, the economic outlook remained uncertain due to global monetary tightening and rising prices.
As the social environment changed to a post-COVID situation, the BPO Services and Outsourcing business expanded in the Group, and sales of Regional Revitalization Solutions also grew as the number of tourisits increased due to the end of COVID-19 infection. In addition, in overseas (Global Sourcing), due to a recovery in demand for human resources, the business grew at a double-digit rate, even excluding the boosting effect of exchange rate fluctuations. On the other hand, Expert Services remained below the previous year's level due to the earlier-than-expected completion of work related to infection control measures as COVID-19 infections were contained, as well as due to the lack of large-scale corporate structural reforms in the outplacement business of Career Solutions.
As a result, consolidated net sales for the fiscal year under review were ¥372,579 million (up 1.8% year- on-year), while gross profit was ¥91,525 million (up 2.1% year-on-year). SG&A expenses increased 14.1% year-on-year to ¥77,148 million, mainly due to duplicate costs in the process of integrating services of the former JTB BENEFIT in Outsourcing and expenses related to large-scale promotions, as well as one-time expenses associated with the relocation of the Tokyo Office in the first quarter. As a result, operating income amounted to ¥14,377 million (down 34.9% year-on-year), ordinary income amounted to ¥15,366 million (down 31.7% year-on-year), and profit attributable to owners of parent amounted to ¥6,099 million (down 29.3% year-on-year).
Consolidated Business Results | (Millions of yen) | |||||
FY2021 | FY2022 | YoY | ||||
Net sales | 366,096 | 372,579 | 1.8% | |||
Operating income | 22,083 | 14,377 | (34.9)% | |||
Ordinary income | 22,496 | 15,366 | (31.7)% | |||
Profit attributable | to | 8,621 | 6,099 | (29.3)% | ||
owners of parent | ||||||
ⅱ) Business Segment Information (before elimination of intersegment transactions)
HR Solutions
Expert Services (Temporary Staffing), BPO Services (Contracting and Outsourcing), etc.
Net sales ¥307,687 million Operating income ¥15,132 million | |
[Expert Services] | Net sales: ¥147,188 million |
In this business, the Group provides a wide range of human resource services, including office work support, clerical work, the provision of highly specialized skilled personnel, engineers, sales, and marketing personnel, and Expert Services (Temporary Staffing) for a wide range of age groups and job types, from young adults to senior citizens.
Amid a continuing moderate economic recovery, orders for temporary staffing services remained firm from a wide range of industries, including the financial sector, IT, and manufacturers. On the other hand, sales decreased to ¥147,188 million (down 3.2% year-on-year) as a result of a decrease in work related to response to COVID- 19 infections, which had increased significantly in the previous year, as the pandemic subsided, and work was completed earlier than expected from the third quarter.
- 5 -