Results for
the First Half of
the Fiscal Year
Ending May 31, 2025
H1 FY2024
(June 1, 2024 - November 30, 2024)
Pasona Group Inc.
Prime Market TSE (2168)
January 21, 2025
www.pasonagroup.co.jp/English | Pasona Heartful Inc. Yuki Kon [Haru・Sansan] |
Table of Contents
１．Financial Summary | ２ |
２．H1 FY2024 Results | ３ |
３．Segment information | 10 |
４．Revision of Consolidated Financial Results | 20 |
Forecast for FY2024 |
５．Initiatives to Enhance Corporate Value | 24 |
６．Business Strategy for the Second Half of the Fiscal Year | 27 |
７．Reference | 33 |
1
Financial Summary
- H1 FY2024 Results
- The Outsourcing segment was excluded from the beginning of the current first half period.
- The BPO Solutions segment experienced a peak-out of large outsourcing projects, resulting in a year-on-year decline in both net sales and profits.
- Recorded an extraordinary loss of ¥2.6 billion approx. as Expo exhibit-related expenses related to our pavilion at the Expo 2025 Osaka, Kansai, Japan.
- Revision of Consolidated Financial Results Forecast for FY2024
- Revised full-year forecasts in light of H1 results and current performance trends.
- The dividend forecast remains unchanged from the previous forecast. Annual dividends per share FY2024 (Forecast) ¥75
（Ordinary dividend ¥15 , Special dividend ¥60）
2
H1 FY2024 Results
※ Units in billions of yen have been rounded to the nearest first decimal place. Units in millions of yen have been rounded down. | 3 |
Consolidated Results
- Net sales and profit decreased YoY due to the exclusion of the Outsourcing segment (Benefit One) and the peak-out of large outsourcing projects in BPO Solutions.
- ¥2,571 million of Expo exhibit-related expenses were recorded as extraordinary loss due to the participation of the pavilion in Expo 2025 Osaka, Kansai, Japan.
H1 FY23 | H1 FY24 | Increase | H1 FY23 | Increase | |
（Millions of yen） | （Excluding Outsourcing） | ||||
/Decrease | /Decrease | ||||
(%) | (%) | (%) | |||
Net sales | 179,316 | 153,934 | (25,381) | 160,837 | (6,902) |
100.0 | 100.0 | (14.2)% | 100.0 | (4.3)% | |
Cost of sales | 136,830 | 120,040 | (16,789) | 127,353 | (7,312) |
76.3 | 78.0 | (12.3)% | 79.2 | (5.7)% | |
Gross profit | 42,485 | 33,894 | (8,591) | 33,483 | +410 |
23.7 | 22.0 | (20.2)% | 20.8 | +1.2% | |
SG＆A | 38,505 | 33,850 | (4,655) | 33,043 | +806 |
expenses | 21.5 | 22.0 | (12.1)% | 20.5 | +2.4% |
Operating profit | 3,980 | 44 | (3,936) | 440 | (395) |
2.2 | 0.0 | (98.9)% | 0.3 | (90.0)% | |
Ordinary profit | 3,987 | 189 | (3,798) | ||
2.2 | 0.1 | (95.3)% | |||
Net profit attributable to owners | 145 | (3,762) | (3,908) | ||
of parent or net loss attributable | |||||
0.1 | ー | ー | |||
to owners of the parent | |||||
Gross profit ratio | 23.7% | 22.0% | (1.7)pt | 20.8% | +1.2pt |
Operating profit ratio | 2.2% | 0.0% | (2.2)pt | 0.3% | (0.3)pt |
※Since the Outsourcing segment was excluded from the first quarter of the current consolidated fiscal year due to the sale of shares of Benefit One Inc., which was a consolidated subsidiary at the end of the previous consolidated fiscal year, the total excluding Outsourcing is shown as reference information.
Net Sales
179.3
153.9
FY23 FY24
H1 H1
Operating Profit
(Billions of yen)
3.98
0.04
FY23 FY24
H1 H1
4
Operating Profit
- Operating profit decreased due to lower net sales and lower gross profit margin.
- Gross profit excluding the impact of the Outsourcing segment was +¥410 million. Gross profit ratio also improved.
Gross profit | SG＆A Expenses | |||||||
Operating Profit | (8.59)[33.89] | (4.66)[33.85] | ||||||
Impact from the | Impact from the | |||||||
Outsourcing segment | Outsourcing segment | |||||||
(9.00) | (5.46) | |||||||
Decrease in | Decrease in | |||||||
3.98 | net sales | |||||||
(6.01) | gross profit | Personnel | IT related | Advertisement | ||||
ratio | expenses | expenses | expenses | Rent | Others | |||
(2.58) | (1.41) | (0.92) | (0.19) | +0.05 | (2.19) |
(Billions of yen)
【+0.74】 【+0.18】 【+0.08】 【+0.18】 【(0.38)】
00.4
*Impact of excluding the Outsourcing segment in 【】.
H1 FY23 | H1 FY24 | |||||||||
H1 FY23 | ||||||||||||||
FY15 | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | H1 FY23 | （Excluding | H1 FY24 | |||
Outsourcing） | ||||||||||||||
Gross Profit ratio | 20.0% | 20.2% | 21.5% | 22.8% | 23.6% | 24.8% | 24.5% | 24.6% | 23.8% | 23.7% | 20.8% | 22.0% | ||
SG&A ratio | 18.6% | 18.6% | 19.4% | 20.0% | 20.3% | 18.8% | 18.5% | 20.7% | 21.9% | 21.5% | 20.5% | 22.0% | 5 | |
Operating Profit ratio | 1.5% | 1.6% | 2.1% | 2.9% | 3.3% | 6.0% | 6.0% | 3.9% | 1.9% | 2.2% | 0.3% | 0.0% |
Non-operating/Extraordinary profit (loss), Others
- ¥2,571 million of Expo exhibit-related expenses were recorded as extraordinary loss due to the participation of the pavilion in Expo 2025 Osaka, Kansai, Japan.
- Profit attributable to non-controlling interests decreased due to the sale of shares in former consolidated subsidiary Benefit One Inc.
（Millions of yen） | H1 FY23 | H1 FY24 | Increase/ | YoY |
Decrease | ||||
Operating profit | 3,980 | 44 | (3,936) | (98.9)% |
Ordinary profit | Net profit attributable to owners of parent or | |
net loss attributable to owners of the parent | ||
Non-operating | 411 | 465 | +54 | +13.1% |
profit | ||||
Non-operating | 403 | 319 | (83) | (20.8)% |
expenses | ||||
Ordinary profit | 3,987 | 189 | (3,798) | (95.3)% |
Extraordinary | 3 | 61 | +57 | +1,490.4% |
profit | ||||
Extraordinary | 170 | 2,605 | +2,434 | +1,426.3% |
loss | ||||
3.99
(Billions of yen)
Profit before | 3,820 | (2,355) | (6,175) | ー | |
income taxes | |||||
Income taxes | 2,449 | 1,006 | (1,442) | (58.9)% | |
- current | |||||
Income taxes | (380) | 124 | +505 | ー | |
- deferred | |||||
Income taxes | 2,068 | 1,130 | (937) | (45.3)% | |
Profit attributable to | 1,606 | 276 | (1,329) | (82.8)% | |
non-controlling interests | |||||
Net profit attributable to owners of parent or | 145 | (3,762) | (3,908) | ー | |
net loss attributable to owners of the parent | |||||
0.19 | FY24 | ||||
0.15 | H1 | ||||
FY23 | FY24 | FY23 | |||
H1 | H1 | H1 | |||
(3.76)
6
Consolidated Results by Segment
(Millions of yen)
Net sales | ||||||
Segment | H1 FY23 | H1 FY24 | Increase/ | YoY | ||
Decrease | ||||||
① | BPO Solutions | 74,302 | 67,709 | (6,593) | (8.9)% | |
(Contracting) | ||||||
② | Expert Solutions | 69,877 | 68,176 | (1,700) | (2.4)% | |
(Temporary Staffing) | ||||||
③ | Career Solutions | 6,810 | 7,008 | +198 | +2.9% | |
(Placement/ Recruiting, Outplacement) | ||||||
HR Solutions | 150,989 | 142,894 | (8,094) | (5.4)% | ||
④ | Global Solutions | 5,234 | 5,463 | +228 | +4.4% | |
(Overseas) | ||||||
Outsourcing | 18,727 | ー | (18,727) | ー | ||
⑤ | Life Solutions | 3,797 | 4,160 | +363 | +9.6% | |
⑥ | Regional Revitalization and | 3,274 | 3,494 | +219 | +6.7% | |
Tourism Solutions | ||||||
⑦ | Eliminations and Corporate | (2,707) | (2,077) | +629 | ー | |
Total（Including Outsourcing） | 179,316 | 153,934 | (25,381) | (14.2)% | ||
Operating profit (loss)
H1 FY23 | H1 FY24 | Increase/ | YoY |
Decrease | |||
5,981 | 5,468 | (512) | (8.6)% |
2,126 | 2,403 | +277 | +13.0% |
8,107 | 7,871 | (235) | (2.9)% |
134 | 131 | (3) | (2.5)% |
3,540 | ー | (3,540) | ー |
23 | 74 | +50 | +214.3% |
(1,282) | (915) | +366 | ー |
(6,543) | (7,117) | (573) | ー |
3,980 | 44 | (3,936) | (98.9)% |
Operating profit ratio
H1 FY23 | H1 FY24 | Increase/ |
Decrease | ||
4.1% | 4.0% | (0.1)pt |
31.2% | 34.3% | +3.1pt |
5.4% | 5.5% | +0.1pt |
2.6% | 2.4% | (0.2)pt |
18.9% | ー | ー |
0.6% | 1.8% | +1.2pt |
ー | ー | ー |
ー | ー | ー |
2.2% | 0.0% | (2.2)pt |
Total（Excluding Outsourcing） 160,837 153,934
(6,902)
(4.3)% | 440 | |
44
(395) | (90.0)% | 0.3% | |
0.0%
(0.3)pt
7
Balance Sheets
(Billions of yen) | |||
Major Item of Increase/Decrease | May 31,2024 | Nov 30,2024 | Increase/ |
Decrease | |||
Assets | 301.1 | 285.9 | (15.2) |
Current assets | 243.6 | 214.9 | (28.8) |
Cash and deposits | 192.3 | 152.0 | (40.3) |
Notes and accounts receivable-trade, and contract assets | 43.5 | 47.5 | +4.1 |
Securities | ― | 8.5 | +8.5 |
Non-current assets | 57.3 | 71.0 | +13.6 |
Property, plant and equipment | 35.5 | 44.3 | +8.9 |
Intangible assets | 5.0 | 6.1 | +1.1 |
Investments and other assets | 16.9 | 20.5 | +3.6 |
Liabilities | 146.4 | 138.5 | (7.9) |
Current liabilities | 103.9 | 99.4 | (4.5) |
Short-term loans payable | 9.3 | 7.4 | (1.8) |
Accrued expenses | 16.8 | 18.4 | +1.6 |
Deposits received | 56.4 | 52.2 | (4.1) |
Non-current liabilities | 42.5 | 39.1 | (3.4) |
Long-term loans payable | 29.4 | 26.6 | (2.9) |
Net assets | 154.7 | 147.4 | (7.3) |
Shareholders' equity | 147.3 | 140.5 | (6.8) |
Capital surplus | 17.5 | 17.5 | +0.0 |
Retained earnings | 127.5 | 120.7 | (6.8) |
Treasury shares | (2.7) | (2.7) | +0.0 |
Total accumulated other comprehensive income | 1.2 | 0.9 | (0.4) |
Share acquisition rights | 0.0 | 0.0 | ±0.0 |
Non-controlling interests | 6.2 | 6.0 | (0.1) |
Equity ratio | 49.3% | 49.4% | +0.1pt |
Equity ratio （Excluding deposits received for contracted projects） | 60.3% | 59.8% | (0.5)pt |
Major Item of Increase/Decrease
【Cash and deposits】
・Decrease due to acquisition of property, plant and equipment, short-term fund management, acquisition of investment securities, repayment of loans payable, dividends, etc.
・Decreased in temporary deposits related to contracted projects. ¥ (5.7) billion YoY
As of Nov 30, 2024（H1FY24） | ¥ 49.3 billion |
As of May 31, 2024（FY23） | ¥ 55.0 billion |
【Securities】
short-term fund management
【Property, plant and equipment】
Acquisition of assets associated with regional development projects, etc.
【Deposits received】
Decreased in temporary deposits related to contracted projects
¥ (5.7) billion YoY
【Retained earnings】 | |
・Net loss attributable to owners of the parent | ¥ (3.8) billion |
・Dividends paid | ¥ (3.0) billion |
【Equity ratio】
59.8% ((0.5)pt) after deducting "deposits received" related to contracted projects
8
Cash Flows
(Billions of yen) | ||||
Major Item of Increase/Decrease | H1 FY23 | H1 FY24 | Increase/ | |
Decrease | ||||
Cash flows from operating activities | (3.9) | (1.8) | +2.0 | |
Profit (loss) before income taxes | 3.8 | (2.4) | (6.2) | |
Depreciation | 2.6 | 1.3 | (1.3) | |
Amortization of goodwill | 0.4 | 0.2 | (0.2) | |
Decrease (increase) in accounts receivable - | (5.5) | (4.0) | +1.5 | |
trade, and contract assets | ||||
Increase (decrease) in trade payables | (2.9) | (1.0) | +1.9 | |
Income taxes refund (paid) | (0.8) | 0.3 | +1.1 | |
Other | (1.5) | 3.7 | +5.2 | |
Cash flows from investment activities | (8.5) | (31.6) | (23.1) | |
Decrease (increase) in time deposits | 0.0 | (7.5) | (7.5) | |
Purchase of securities | ― | (8.5) | (8.5) | |
Purchase of property, plant and equipment | (5.5) | (10.5) | (5.0) | |
Purchase of investment securities | (0.2) | (3.7) | (3.6) | |
Cash flows from financing activities | (8.5) | (8.6) | (0.0) | |
Repayments of long-term borrowings | (5.4) | (4.5) | +0.9 | |
Dividends paid | (1.4) | (3.0) | (1.6) | |
Dividends paid to non-controlling interests | (3.2) | (0.4) | +2.8 | |
Net increase (decrease) in cash and cash equivalents | (20.7) | (42.1) | (21.4) | |
Cash and cash equivalents at beginning of period | 47.9 | 137.0 | +89.1 | |
Cash and cash equivalents at the end of period | 27.3 | 94.9 | +67.6 | |
Free cash flows | (12.4) | (33.4) | (21.0) | |
Major Item of Increase/Decrease
【Profit before depreciation and amortization】 | |
¥ 0.9 billion (¥ (7.7) billion | YoY) |
※Excluding Impact from the Outsourcing segment | |
(¥ (2.9) billion | YoY) |
【Purchase of securities】 Short-termfund management
【Purchase of property, plant and equipment】
Acquisition of assets associated with regional development projects, etc.
【Purchase of investment securities】 Investment in venture companies, etc.
【Dividends paid】
Increased payment due to higher dividends
【Dividends paid to non-controlling interests】
Decreased in cash outflow due to deconsolidation of Benefit One
※Cash flow does not include the cash balance and increase/decrease in cash corresponding | 9 |
to "deposits" from customers for projects entrusted to the Company. |