Financial Results for FY2017 and Strategy

Transcription

1 Financial Results for FY2017 and Strategy Recruit Holdings Co., Ltd. Masumi Minegishi President, CEO, and Representative Director Keiichi Sagawa CFO and Senior Managing Corporate Executive Officer May 15, 2018

2 Disclaimer I n p r e p a r i n g t h e s e m a t e r i a l s, R e c r u i t H o l d i n g s C o., L t d. relies u p o n a n d a s s u m e s t h e a c c u r a c y a n d c o m p l e t e n es s o f a l l a v a i l a b l e i n f o r m a t i o n. H o we v e r, we m a k e n o representation s o r wa r r a n t i e s o f a n y k i n d, e xp r e s s o r i m p l i e d, a b o u t t h e c o m p l e t e n es s a n d a c c u r a c y. Th i s p r e s e n t a t i o n a l s o c o n t a i n s f o r wa r d - l o o k i n g s t a t e m e n t s. A c t u a l r e s u l t s, p e r f o r m a n c e a n d a c h i e v e m e n t s a r e s u b j e c t t o various risks a n d u n c e r t a i n t ies. A c c o r d i n g l y, a c t u a l r e s u l t s m a y d i f f e r s i g n i f i c a ntly f r o m t h o s e e xp r e s s e d o r i m p l i e d b y f o r wa r d - l o o k i n g s t a t e m e n t s. R e a d e r s a r e c a u t i o n e d a g a i n s t p l a c i n g u n d u e reliance o n f o r wa r d - l o o k i n g s t a t e m e n t s. Th i r d p a r t i e s a r e n o t p e r m i t t e d t o u s e a n d / o r d i s c l o s e t h i s d o c u m e n t a n d t h e c o n t e n t s h e r e i n f o r a n y o t h e r p u r p o s e wi t h o u t t h e p r i o r wr i t t e n c o n s e n t o f R e c r u i t H o l d i n g s C o., L t d. 2

3 Contents 1. FY2017 Financial Results Highlights 2. Mid-term Strategy 3. New Management Structure 4. FY2018 Full-Year Forecasts Highlights 5. Financial Policy & Shareholder Returns 6. FY2017 Q4 Financial Results 7. FY2018 Full-Year Forecasts 3

4 FY2017 Financial Results Highlights 1. FY2017 Financial Results Highlights Revenue, EBITDA and Adjusted EPS: Record-high results Strong revenue growth continued in HR Technology with +60.7% increase in US dollar terms (1) Overseas revenue increased to 46% in FY2017, from 43% in FY2016, of total revenue Group Reorganization to accelerate the strategic execution of each SBU (1) This is the financial results of Indeed, which differ from the IFRS-based consolidated financial results of Recruit Holdings Co., Ltd. due to differences in consolidation methodologies. 4

5 FY2017 Consolidated Financial Results 1. FY2017 Financial Results Highlights (JPY Bn, unless otherwise stated) FY2016 Full-year Full-year Forecasts (1) FY2017 Full-year Results YoY Change Revenue 1, , , % EBITDA % EBITDA margin 12.0% 11.9% 11.9% -0.1pt Adjusted profit % Adjusted EPS (JPY) (2) % Dividend per share (JPY) (2) (1) Announced on February 14, 2018 (2) Assuming a three-for-one stock split of its common stock on July 1, 2017 was implemented at the beginning of FY

6 Our Business Model Realizing Mid- to Long-term Vision 2. Mid-term Strategy Matching platform provides New value to clients and users HR Technology User Media & Solutions Client Staffing 6 6

7 FY2017 Financial Results Highlights by Segment HR Technology 2. Mid-term Strategy - Strong YoY revenue growth continued: +60.7% to 1.97 Billion US dollars (1) Media & Solutions YoY growth in total : Revenue +3.3%, EBITDA +3.1% - Marketing Solutions : Revenue +2.4% driven by a strong trend in Beauty business - HR Solutions : Revenue +4.4% supported by a favorable market environment Staffing YoY growth in total : Revenue +10.9%, EBITDA +10.8% - Japan operations : Revenue +9.9%, demonstrating strong growth - Overseas operations : Revenue +11.6%, due to the acquisition of a new subsidiary (1) This is the financial results of Indeed, which differ from the IFRS-based consolidated financial results of Recruit Holdings Co., Ltd. due to differences in consolidation methodologies. 7

8 Mid-term Strategy by Segment 2. Mid-term Strategy HR Technology - Expanding from job advertising into other HR related businesses - Aim for high growth rate by contributing to efficiency of overall HR processes Media & Solutions - Strengthen business foundation further by expanding operational support services - Stable revenue growth with high EBITDA margin Staffing - Promote Unit Management leveraging a solid global economic environment - Continue stable EBITDA growth on a global scale 8

9 HR Technology 2. Mid-term Strategy Strong YoY revenue growth continued: +60.7% to 1.97 Billion US dollars (USD MM) $1,976 $1,229 $777 FY2015 FY2016 FY2017 * This is the financial results of Indeed which differ from the IFRS-based consolidated financial results of Recruit Holdings Co., Ltd. due to differences in consolidation methodologies. * Revenues for FY2015 and FY2016 on this page are based on the fiscal year of Recruit Holdings Co., Ltd. ending March, along with the adoption of IFRS in place of Japanese GAAP from the beginning of FY2017. This differs from the results presentation in May 2017 which was based on the fiscal year of Indeed ending December. 9

10 HR Technology 2. Mid-term Strategy Expand business area from job advertising to other HR related businesses Job Advertising Other HR Related Businesses US Existing Business Entering New Business Other Expanding Areas 10

11 HR Technology Announced potential acquisition of Glassdoor, Inc. operating one of the fastest growing jobs and recruiting sites in the world 2. Mid-term Strategy Helping people everywhere find jobs and companies they love Glassdoor, Inc. Headquarters: Mill Valley, California (USA) Products Revenue : Employer branding solutions Job advertising : 171 million US dollars (Fiscal Year ended in March 2018) ~59M Monthly Unique Users 770K Companies ~40M Reviews and Insights Employees : 750 Established : June 2007 * Source: Glassdoor Management, Glassdoor Internal Data. * Revenue based on unaudited financials. Unique Users as of January M Jobs 55+% Activity on Mobile 11

12 HR Technology 2. Mid-term Strategy Greater workplace transparency through online jobs and recruiting site, Glassdoor. com Company Profile: Subscription model Job postings: Cost-Per-Click or Subscription model Job information Company reviews 12

13 HR Technology Glassdoor, Inc. is planned to be operated under HR Technology SBU 2. Mid-term Strategy Governance Structure Image Recruit Holdings Co., Ltd. Glassdoor is planned to be an operating company under the HR Technology segment of Recruit Holdings Co., Ltd., same as Indeed. (HR Technology SBU Headquarters) RGF OHR USA, Inc. HR Technology segment to deliver broader value by leveraging the strengths of each operating company. Indeed Glassdoor * All the subsidiaries in the HR Technology segment are operated under, but their shares are not necessarily held by HR Technology SBU headquarters, RGF OHR USA, Inc. 13

14 Media & Solutions Stable revenue growth with high EBITDA margin 2. Mid-term Strategy (JPY Bn) 600 6, , EBITDA margin , , ,582 6, % 400 4, % 200 2, FY2013 FY2014 FY2015 FY2016 FY 年 3 月期 2015 年 3 月期 2016 年 3 月期 * FY FY2015: Based on JGAAP. Sum of revenues of Life Event and Lifestyle in the Marketing Media and Domestic Recruiting in the HR Media in the former segment. * FY2016 onwards: Based on the new segment and IFRS 年 3 月期 2018 年 3 月期 0% 14

15 Media & Solutions 2. Mid-term Strategy Strengthen business foundation by expanding operational support services Solutions for Operational Support (SaaS) Operational Support Package User ユーザー Matching Platform Client クライアント Enhancement Obtaining Inventories (e.g., rooms and seats) 強化 Reaching New Business Opportunities 15

16 Staffing 2. Mid-term Strategy - Favorable revenue growth of 9.9% in Japan operations - Revenue increase 11.6% in overseas operations due to the acquisition of a new subsidiary (JPY Bn) Revenue (JPY Bn) EBITDA 1, ,298.8 Overseas +11.6% Overseas +7.4% (5.1%) (4.9%) Japan +9.9% Japan +15.0% (6.3%) (6.6%) FY2016 FY2017 FY2016 FY2017 * EBITDA margin is shown in parenthesis. 16

17 Group Reorganization 3. New Management Structure Group Reorganization to accelerate the strategic execution of each SBU SBU Recruit Holdings Co., Ltd. Recruit Holdings Co., Ltd HR Technology SBU Media & Solutions SBU Staffing SBU SBU Headquarters HR Technology SBU RGF OHR USA, Inc. Media & Solutions SBU Recruit Co., Ltd. Staffing SBU Recruit Global Staffing B.V. HR Technology subsidiaries Media & Solutions subsidiaries Staffing subsidiaries HR Technology subsidiaries Media & Solutions subsidiaries Staffing subsidiaries * All the subsidiaries in the HR Technology segment are operated under, but their shares are not necessarily held by HR Technology SBU headquarters, RGF OHR USA, Inc. 17

18 New Management Structure - Accelerate SBU s business expansion - Strengthen holding company functions of Recruit Holdings 3. New Management Structure HR Technology SBU RGF OHR USA, Inc. Recruit Holdings Co,. Ltd. Media & Solutions SBU SBU Headquarters Recruit Co., Ltd. Staffing SBU Recruit Global Staffing B.V. Strengthening holding company functions Highly efficient group management structure including governance, monitoring and financial data management systems of the group companies New Board structure with new Board Directors, subject to the approval at the Ordinary General Meeting of Shareholders HR Technology subsidiaries Media & Solutions subsidiaries Staffing subsidiaries Establishing SBU Headquarters Strengthening each SBU s management capability to accelerate execution of its own strategy and rapidly expand its businesses further * All the subsidiaries in the HR Technology segment are operated under, but their shares are not necessarily held by HR Technology SBU headquarters, RGF OHR USA, Inc. 18

19 FY2018 Full-Year Forecasts Highlights 4. FY2018 Full-Year Forecasts Highlights FY2017 FY2018 (JPY Bn, unless otherwise stated) Full-year Full-year Forecasts YoY Change Revenue 2, , % EBITDA % EBITDA margin (%) 11.9% 12.4% +0.5pt Adjusted profit % Adjusted EPS (JP Y) % * Assumed foreign exchange rates for FY2018: JPY 106 per US dollar, JPY 131 per Euro, JPY 84 per Australian dollar. 19

20 Financial Policy & Shareholder Returns 5. Financial Policy & Shareholder Returns Key Management Target Adjusted EPS:3 years CAGR of high single digits (FY ) The target is expected to be achieved with 3 years CAGR forecast of 13.5% Capital Efficiency Basic policy is to maintain ROE of approximately 15% ROE of 19.3% in FY2017 Shareholder Returns Annual dividends - FY2017 : JPY 23 (interim: JPN 11, year-end: JPY 12) - FY2018 (forecast) : JPY 27 (interim: JPN 13.5, year-end: JPY 13.5) 20

21 Contents 1. FY2017 Financial Results Highlights 2. Mid-term Strategy 3. New Management Structure 4. FY2018 Full-Year Forecasts Highlights 5. Financial Policy & Shareholder Returns 6. FY2017 Q4 Financial Results 7. FY2018 Full-Year Forecasts 21

22 FY2017 Q4 Financial Results 6. FY2017 Q4 Financial Results (JPY Bn, unless otherwise stated) FY2016 Q4 (Jan.- M ar.) Q4 (Jan.- M ar.) YoY Change FY2017 Full-year YoY Change Revenue % 2, % EBITDA % % EBITDA margin 8.2% 7.7% -0.5pt 11.9% -0.1% Operating income % % Adjusted operating income (1) % % Profit attributable to owners of the parent % % Adjusted profit % % Adjusted EPS (JPY) (2) % % (1) Excluding proceeds and losses from sale of subsidiaries. (2) Assuming a three-for-one stock split of its common stock on July 1, 2017 was implemented at the beginning of FY

23 FY2017 Q4 Financial Results by Segment 6. FY2017 Q4 Financial Results ( J P Y Bn) Revenue FY2016 Q4 ( J a n. - M a r. ) Q4 ( J a n. - M a r. ) YoY Cha nge FY2017 Full-year YoY Cha nge Consolidated results % 2, % HR Technology % % M edia & Solutions % % Staffing % 1, % Corporate Expenses/ Elimination EBITDA Consolidated results % % HR Technology % % M edia & Solutions % % Staffing % % Corporate Expenses/ Elimination

24 Quarterly EBITDA by Segment 6. FY2017 Q4 Financial Results (JPY Bn) HR Technology Media & Solutions Staffing Corporate Expenses/ Elimination % EBITDA margin % % % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4-20 FY2016 FY2017 0% 24

25 HR Technology 6. FY2017 Q4 Financial Results ( J P Y B n, U S D MM) FY2016 FY2017 Revenue Q4 ( J a n. - M a r. ) Q4 ( J a n. - M a r. ) YoY Cha nge Full-year YoY Cha nge HR Technology % % Reference: (1) Rev enue in US Dollars % 1, % EBITDA HR Technology % % (1) This is the financial results of Indeed, which differ from the IFRS-based consolidated financial results of Recruit Holdings Co., Ltd. due to differences in consolidation methodologies. 25

26 Media & Solutions 6. FY2017 Q4 Financial Results ( J P Y Bn) EBITDA M edia & Solutions % % Marketing Solutions % % HR Solutions % % Corporate Expenses/ Eliminations FY2016 FY2017 Q4 Q4 YoY YoY Revenue Full-year ( J a n. - M a r. ) ( J a n. - M a r. ) Cha nge Cha nge M edia & Solutions % % Marketing Solutions % % Housing and Real Estate % % Bridal % % T rav el % % Dining % % Beauty % % O thers % % HR Solutions % % Domestic Recruiting % % O thers % % Corporate Expenses/ Eliminations % %

27 Staffing 6. FY2017 Q4 Financial Results ( J P Y B n ) Revenue FY2016 Q4 ( J a n. - M a r. ) Q4 ( J a n. - M a r. ) FY2017 YoY Change Full-year YoY Change Staffing % 1, % Japan % % Overseas % % EBITDA Staffing % % Japan % % Overseas % % 27

28 FY2018 Full-Year Forecasts 7. FY2018 Full-Year Forecasts (JPY Bn, unless otherwise stated) FY2017 Full-year (1) Full-year Forecasts* FY2018 YoY Change Revenue 2, , % EBITDA % Operating income % Profit attributable to owners of the parent % Adjusted profit % Adjusted EPS (JPY) % Profit used as basis for dividend calculation % Dividend per share (JPY) * Assumed foreign exchange rates for FY2018: JPY 106 per US dollar, JPY 131 per Euro, JPY 84 per Australian dollar. 28

29 Appendix

30 Candidate for Board Director Rony Kahan Aug Nov Sep Oct Co-Founder, jobsinthemoney.com, Inc. Co-Founder, President & Chairman, Indeed, Inc. CEO, Indeed, Inc. Chairman, Indeed, Inc. * Appointed to be a Board Director of Recruit Holdings Co.,Ltd., subject to the approval at the Ordinary General Meeting of Shareholders scheduled in June

31 EBITDA and Adjusted Profit under IFRS (JPY Bn) FY2017 (JPY Bn) FY2017 EBITDA Q4 ( J a n. - M a r. ) Full-year Adjusted profit Q4 ( J a n. - M a r. ) Full-year Operating income Other operating income Other operating expenses Depreciation and amortization EBITDA Profit (loss) attributable to owners of the parent Amortization of intangible assets arising due to business combinations One-off income One-off losses Tax reconciliation regarding the adjustment items Adjusted profit

32 Other Data FY2016 FY2017 Q1e Q2e Q3e Q4e Q1e Q2e Q3e Q4e Hot Pepper Gourmet # of seats reserved online * (million) Hot Pepper Beauty # of online reservations * (million) Air REGI # of accounts (thousand) Study Sapuri high school student course #of paying subscribers (thousand) *Based on number of reservations, and cancels are not counted. 32

33 Market Conditions: Housing and Real Estate (# of houses) 300,000 # of new housing starts YoY Change (%) 120% 250, , % 205, % 80% 150,000 60% 100,000 40% 50,000 20% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2015 FY2016 FY2017 0% *Source: MLIT housing starts statistics 33

34 Market Conditions : Domestic Recruiting 1.60 Ratio of job offers to job seekers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2015 FY2016 FY2017 *Source: Ministry of Health, Labour and Welfare 34

35 Market Conditions : Domestic Staffing (# of persons) 400,000 # of active agency workers 派遣社員実稼働者数 ( 平均 ) (average) 前年同期比 YoY Change (%) 106.4% 120% 350, , , , % 80% 200,000 60% 150, ,000 50,000 40% 20% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q FY2015 年 3 月期 2017 FY2016 年 3 月期 2018 FY2017 年 3 月期 0% *Source: Japan Staffing Services Association. 35

36 Notes EBITDA = operating income + depreciation and amortization ± other operating income/expenses Adjusted profit: Profit (loss) attributable to owners of the parent ± adjustment items* (excluding non-controlling interests) ± tax reconciliation regarding the adjustment items *amortization of intangible assets arising due to business combinations ± one-off income/losses Adjusted EPS: adjusted profit / (number of shares issued at the end of the period -number of treasury stock at the end of the period) Profit used as basis of dividend calculation= Profit (loss) attributable to owners of the parent excluding one-off income/losses etc. 36