Recruit Holdings Co., Ltd. · TSE:6098
Recruit — Shareholder Meeting (June 2015)
40 slides from Recruit's shareholder meeting presentation, Jun 17, 2015
Slide 1: 55th Ordinary General Meeting of Shareholders
55th Ordinary General Meeting of Shareholders Frecruit June 17, 2015 Recruit Holdings Co., Ltd.
Slide 2: Consolidated earnings performance in the 55th fiscal year
Today I will provide a rundown of Recruit Holdingsʼ consolidated earnings performance in the 55th fiscal year.
Slide 3: Consolidated Statement of Income summary
This is a summary of the Consolidated Statement of Income for the 55th fiscal year. We recorded net sales of ¥1,299.9 billion, a growth of 9.1% year-on-year. EBITDA, which we use as a key management indicator to measure our financial performance, totaled ¥191.4 billion, an increase of 6.0%. And our
Slide 4: EBITDA definition and goodwill
Our EBITDA is operating income plus depreciation and amortization and amortization of goodwill. And we recognize goodwill when we make an M&A deal. We deduct the acquired companyʼs equity from the stock acquisition price. This is amortized over a set period.
Slide 5: Segment performance
Next I would like to discuss our segment performance. Our main business segments are Marketing Media, HR Media, and Staffing.
Slide 6: Sales performance by business segment
This slide shows the sales performance for each business segment. Sales trends were brisk at each of our three main business segments, Marketing Media, HR Media, and Staffing, and grew year-on-year.
Slide 7: EBITDA performance by business segment
This is our EBITDA performance for each business segment. EBITDA rose year-on-year at each of our main business segments in tandem with the growth in sales.
Slide 8: Earnings summary for each segment
Next I will give a summary of earnings performance for each segment.
Slide 9: Marketing Media segment overview
First, Marketing Media mainly consists of Life Event operations and Lifestyle operations. Life Event operations primarily consists of SUUMO, a housing information service, and Zexy, a bridal information service. Lifestyle operations chiefly consists of Jalan, a travel information service, Hot Pepper
Slide 10: Life Event operations
In Life Event operations Housing and real estate sales declined 3.0% year-on-year owing to negative impact from the consumption tax hike, and weak demand for newly-built condominiums. Meanwhile, bridal sales rose 0.6%, nearly flat compared with the previous year, reflecting opening of new branches b
Slide 11: Lifestyle operations
In Lifestyle operations In the travel business, sales were brisk, rising 10.3% year-on-year, owing to an increase in the unit price of hotels and other accommodations and an increase in the number of guests using this service. In the dining business, sales climbed a meager 2.2%, partly attributable
Slide 12: Marketing Media sales and EBITDA
In line with this performance, despite flat sales in Life Event operations, net sales in the Marketing Media business segment totaled ¥333.4 billion, a rise of 3.4% year-on-year, drive by brisk sales in Lifestyle operations. Meanwhile, EBITDA in the Marketing Media segment came to ¥96.2 billion, a g
Slide 13: HR Media business segment overview
Next I will discuss the HR Media business segment. The HR Media business segment is comprised of domestic and overseas recruiting operations. Our domestic recruiting operations primarily consists of Rikunabi, a job information service for new graduates, Rikunabi NEXT, a mid-career recruitment inform
Slide 14: Domestic recruiting operations
In domestic recruiting operations, sales growth was brisk, increasing 5.9% year-on- year, reflecting a favorable market environment, including an ongoing improvement in the ratio of job-offers to job-seekers.
Slide 15: Overseas recruiting operations
In overseas recruiting operations, sales increased substantially, improving 85.1% year-on- year, thanks to an increase in usage of Indeed.com among small- and medium-sized clients.
Slide 16: HR Media sales and EBITDA
Reflecting this performance, sales in the HR Media business segment totaled ¥302.7 billion, an increase of 13.4% year-on-year. Moreover, EBITDA was ¥78.0 billion, a growth of 6.0%.
Slide 17: Staffing business segment overview
Lastly is the Staffing business segment. The Staffing business segment consists mainly of domestic and overseas staffing operations. Recruit Staffing and Staff Service Group are the two companies that primarily make up domestic staffing operations. Meanwhile, Staffmark and Advantage Resourcing, whic
Slide 18: Domestic staffing operations
In our domestic staffing operations, sales grew 8.6% year-on-year, owing to brisk sales at Recruit Staffing and Staff Service Group.
Slide 19: Overseas staffing operations
In overseas staffing operations, sales increased 12.5% year-on-year, owing in part to an ongoing modest expansion of the staffing market in North America, and also in part due to impact from a weak yen.
Slide 20: Staffing sales and EBITDA
In light of this performance, we booked net sales in the Staffing segment of ¥675.2 billion, a growth of 10.2% year-on-year. Meanwhile, we posted EBITDA in this segment of ¥40.7 billion, an improvement of 17.2%.
Slide 21: Consolidated balance sheets
Next I will discuss a summary of our consolidated balance sheets as of the end of the 55th fiscal year.
Slide 22: Total assets, liabilities and equity
Our total assets at the end of the fiscal year stood at ¥1,100.7 billion, an increase of ¥240.4 billion versus the end of the previous fiscal year. Total liabilities stood at ¥346.6 billion, an increase of ¥32.8 billon. This brought our equity to ¥754.1 billion, which was an increase of ¥207.5 billi
Slide 23: Dividend payout for the 55th fiscal year
Finally, I will discuss our dividend payout for the 55th fiscal year.
Slide 24: Dividend policy and payout
We set our dividend payout ratio at 25% of adjusted net income, which is net income plus amortization of goodwill. Our basic policy is to provide our shareholders with a consistent and stable dividend payout. Also, in line with our Articles of Incorporation, the distribution of surplus is left up to
Slide 25: Management policies and issues
Next I will discuss Recruit Holdingsʼ management policies, issues to be addressed by the group, financial policies, and consolidated earnings forecasts for the 56th fiscal year. First I will discuss management policies and issues to be addressed in the current fiscal year.
Slide 26: Customers and group slogan Opportunities for Life
Recruitʼs customers consists of companies (corporate clients) and private individual users. Recruit acts as a go-between for these customers and provides optimal matching of services and needs for both customers. Our group slogan of “Opportunities for Life” reflects our commitment to “seeking a sust
Slide 27: Mid- to long-term vision
We plan to expand our message to the rest of the world. In our mid- to long-term vision, we aim to become No. 1 in global HR business by 2020, and become No. 1 globally as a matching platform, including Marketing Media, by 2030.
Slide 28: Two main steps to achieve the vision
Our two main steps to achieve our vision are to achieve sustainable growth in the domestic business, and to attain further growth in our overseas business.
Slide 29: Sustainable growth in domestic business
First, with respect to sustainable growth in the domestic business, we plan to strengthen the competitiveness of existing businesses, and we also plan to take on the development of new businesses. Today, I will discuss our new business development.
Slide 30: New business development categories
In Japan, we believe there are a number of industries and business fields where numerous negative elements including dissatisfaction, inconvenience, and anxiety are experienced by consumers and entities. We believe these negative elements are the very source of business opportunities. Accordingly, w
Slide 31: Business support for SMEs: Air Series
In the category of business support for SMEs; We already provide IT services that handle labor-intensive operations, including reservation and inventory management for SMEs, under the service name of Air Series. This service allows companies to focus on their main business such as customer service a
Slide 32: Education industry services
In the education industry; We currently offer online educational contents via Jyuken Suppli and Benkyo Suppli. In Japan, there are many elementary, junior high, and high school students that cannot attend prep schools due to economic or geographical obstacles. These services provide students with th
Slide 33: Healthcare industry plans
Lastly, in the healthcare industry; We are still in the planning stage as this is an unclear area where there is a huge amount of information that can be provided to patients and their families, as well as healthy people. For example, we are examining the use of IT to provide new services in the are
Slide 34: Overseas business
I will now discuss our overseas business.
Slide 35: Overseas strategy through M&A
Our basic strategy for the overseas business is to expand globally through M&A deals. We plan to improve our earnings by transferring a variety of knowledge that we cultivated in Japan to the companies we acquire and turn into subsidiaries. Our goal is to grow as a group.
Slide 36: Recent overseas acquisitions
In accordance with these plans, in 2015 in the Marketing Media business segment we turned companies that handle online restaurant reservation services in Europe, and online beauty shop services into subsidiaries. In addition, in the Staffing business segment, we plan to turn two companies operating
Slide 37: Financial and capital policies
Next I will discuss our financial and capital policies.
Slide 38: EBITDA growth, ROE target and payout policy
EBITDA is a key management indicator we use to measure our financial performance. We aim for mid-to-high single digit growth in EBITDA each fiscal year at existing businesses. This excludes earnings from companies that are newly added to the scope of consolidation, mainly through M&A. In addition, w
Slide 39: Consolidated earnings forecast for the 56th fiscal year
Lastly, I will discuss our consolidated earnings forecast for the 56th fiscal year.
Slide 40: Fiscal year 56 targets and dividend forecast
We are targeting net sales of ¥1,550.0 billion (+19.2% YoY), and EBITDA of ¥201.0 billion (+5.0% YoY). We plan an EBITDA at our existing business, which we use as a management goal, of ¥202.5 billion (+5.8% YoY). This target excludes earnings from the subsidiaries newly included into the scope of co