Recruit : Earnings Release (842 KB)

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2020

May 17, 2021

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for the Year Ended March 31, 2021 (IFRS, Unaudited)

Tokyo, May 17, 2021 ― Recruit Holdings Co., Ltd. announced today its consolidated financial results for the year ended March 31, 2021 (April 1, 2020 to March 31, 2021).

(Amounts are rounded down to the nearest million yen)

Consolidated Operating Results

(In millions of yen, unless otherwise stated)	FY2019	FY2020	% change
Revenue	2,399,465	2,269,346	-5.4%
Adjusted EBITDA	325,159	241,658	-25.7%
Operating income	206,011	162,823	-21.0%
% to revenue	8.6%	7.2%	-
Profit before tax	226,149	168,502	-25.5%
Return on assets (%)	12.1%	8.0%	-
Profit attributable to owners of the parent	179,880	131,393	-27.0%
% to total equity attributable to owners of the	18.4%	12.6%	-
parent
Profit available for dividends	184,522	121,765	-34.0%
Total comprehensive income	152,970	209,011	36.6%
Basic EPS (yen)	108.27	79.83	-
Diluted EPS (yen)	108.07	79.70	-
Adjusted EPS (yen)	121.03	82.56	-31.8%

Reference: Share of profit of associates and joint ventures was 3,617 million yen in FY2019 and 6,468 million yen in FY2020.

Consolidated Financial Position

	(In millions of yen, unless otherwise stated)	As of March 31, 2020	As of March 31, 2021
	Total assets	1,998,917	2,196,613
	Total equity	995,743	1,101,289
	Equity attributable to owners of the parent	988,449	1,091,571
	Ratio of equity attributable to owners of the parent (%)	49.4%	49.7%
	Equity attributable to owners of the parent per share (yen)	599.65	667.96
Consolidated Cash Flows
	(In millions of yen, unless otherwise stated)	FY2019		FY2020
	Net cash flows from operating activities	303,325	286,597
	Net cash flows from investing activities	(88,993)	(40,373)
	Net cash flows from financing activities	(192,721)	(172,713)
	Cash and cash equivalents at the end of the year	421,253	501,043
Dividends
	(In yen, unless otherwise stated)	FY2019	FY2020	FY2021 (Forecast)
	At the end of Q1		-		-	-
	At the end of Q2	15.00		9.50	-
	At the end of Q3	-		-	-
	At the end of Q4	15.00		10.50	-
	Total		30.00		20.00	-
	Total amount of dividend payment (in millions of yen)	49,811		32,855	-
	Payout ratio-consolidated (%)	27.7		25.1	-
	Ratio of dividends to total equity attributable to owners of the	5.1		3.2	-
	parent (%)

Reference: Payout ratio (consolidated) based on profit available for dividends was 27.0% in FY2020.

The annual dividend for FY2021 is undecided.

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Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2020

Consolidated Financial Guidance for FY2021
The Company provides the guidance of key financial metrics for FY2021 as below:
	(In millions of yen, unless otherwise stated)	FY2021 (Forecast)	Year on year % change
	Revenue	2,450,000 - 2,600,000	8.0%	- 14.6%
	Adjusted EBITDA	270,000 - 335,000	11.7%	- 38.6%
	Operating income	180,000 - 245,000	10.5%	- 50.5%
	Profit before tax	185,000 - 250,000	9.8%	- 48.4%
	Profit for the period	140,000 - 190,000	6.3%	- 44.3%
	Profit attributable to owners of the parent	140,000 - 190,000	6.6%	- 44.6%
	Adjusted EPS (yen)	95.51 - 126.10	15.7%	- 52.7%

Please refer to page 15, Consolidated Financial Guidance for FY2021 for more details.

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Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2020

Changes in Significant Subsidiaries Resulting from Change in Scope of Consolidation

There was no change in specific subsidiaries accompanying a change in the scope of consolidation.

Changes in Accounting Policies and Changes in Accounting Estimates

There has been no change in: (1) accounting policies required by IFRS, (2) accounting policies other than the foregoing item (1), and (3) accounting estimates.

Number of Issued Shares - Common Stock

				As of March 31, 2020	As of March 31, 2021
		Number of issued shares including treasury stock	1,695,960,030	1,695,960,030
		Number of treasury stock		47,574,459	61,763,564
				FY2019	FY2020
		Average number of shares during the period	1,661,362,368	1,645,920,829
Definition of the Abbreviation
	Abbreviation		Definition
	Recruit Holdings, the Holding Company	Recruit Holdings Co., Ltd. on a standalone basis
	the Company, Recruit Group, We, Our		Recruit Holdings Co., Ltd. and its consolidated subsidiaries
	SBU		Strategic Business Unit
	Q1		Three-month period from April 1 to June 30
	Q2		Three-month period from July 1 to September 30
	Q3		Three-month period from October 1 to December 31
	Q4		Three-month period from January 1 to March 31
	FY2019		Fiscal year from April 1, 2019 to March 31, 2020
	FY2020		Fiscal year from April 1, 2020 to March 31, 2021
	FY2021		Fiscal year from April 1, 2021 to March 31, 2022
Definition of the Financial Measures
	Financial Measures	Definition
	Adjusted EBITDA	Operating income + depreciation and amortization (excluding depreciation of right-of-use assets) ±
			other operating income/expenses
	Adjusted profit	Profit attributable to owners of the parent ± adjustment items (excluding non-controlling interests)
			± tax reconciliation related to certain adjustment items
	Adjusted EPS	Adjusted profit / (number of issued shares at the end of the period - number of treasury stock at the
			end of the period)
	Profit available for dividends	Profit attributable to owners of the parent ± non-recurring income/losses ± tax reconciliation related to
			certain non-recurring income/losses
	Adjustment items	Amortization of intangible assets arising due to business combinations ± non-recurring income/losses
	Non-recurring income/losses	Gains or losses from disposals of shares of associates, expenses relating to company restructuring,
			gains or losses from the sale or impairment of property and equipment, and income and expense
			items that the Company believes are unusual or non-recurring in nature which do not reflect the
			Company's underlying results of operations

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Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2020

Change of Company Name

The name of the companies in this document is as of March 31, 2021, unless otherwise indicated. The companies that changed their names during FY2020 are indicated below.

Company Name	Company Name	Change
(prior to the change)	(as of March 31, 2021)
USG People France SAS	RGF Staffing France SAS	December, 2020
USG People Germany GmbH	RGF Staffing Germany GmbH	February, 2021

Also, the name of the companies within Recruit Group changed from April 1, 2021 to May 17, 2021 is indicated below.

Company Name		New Company Name			Change
(as of March 31, 2021)		(as of May 17, 2021)
USG People Holdings B.V.		RGF Staffing the Netherlands B.V.		April, 2021
Average exchange rate during the period
				FY2019		FY2020
	(In yen)		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
		cumulative	cumulative	cumulative	cumulative	cumulative	cumulative
	US dollar	109.90	108.60	108.65	108.70	107.63	106.93	106.11	106.10
	Euro	123.50	121.40	121.04	120.81	118.59	121.34	122.44	123.76
	Australian	76.95	75.24	74.91	74.11	70.74	73.32	74.35	76.21
	dollar

The amount of exchange rate effects on revenue for Q4 FY2020 is calculated by deducting the amount of the nine month period of FY2020 from the amount of the twelve month period of FY2020.

Reference: Outline of Non-consolidated Financial Results

Non-consolidated Operating Results

	(In millions of yen, unless otherwise stated)		FY2019	FY2020		% change
	Revenue			102,061	27,324	-73.2%
	Operating profit			92,056	19,297	-79.0%
	Recurring profit			94,065	19,574	-79.2%
	Net income			85,854	14,063	-83.6%
	Earnings per share - Basic (yen)			51.68	8.54	-
	Earnings per share - Diluted (yen)			51.58	8.53	-
Non-consolidated Financial Position
	(In millions of yen, unless otherwise stated)		As of March 31, 2020	As of March 31, 2021
	Total assets			1,409,458		1,372,520
	Net asset			872,799		805,322
	Equity ratio (%)			61.8%		58.6%
	Net asset per share			528.44		491.99

Reference: Equity was 871,080 million yen as of March 31, 2020 and 804,005 million yen as of March 31, 2021.

Earnings releases are not subject to review by a certified public accountant nor an independent auditor.

Forward-Looking Statements

This document contains forward-looking statements, which reflect the Company's assumptions and outlook for the future and estimates based on information available to the Company and the Company's plans and expectations as of the date of this document or other date indicated. There can be no assurance that the relevant forecasts and other forward-looking statements will be achieved. Please note that significant differences between the forecasts and other forward-looking statements and actual results may arise due to various factors, including changes in economic conditions, changes in individual users' preferences and business clients' needs, competition, changes in the legal and regulatory environment, fluctuations in foreign exchange rates, and other factors. Accordingly, readers are cautioned against placing undue reliance on

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Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2020

any such forward-looking statements. The Company has no obligation to update or revise any information contained in this document based on any subsequent developments except as required by applicable law or stock exchange rules and regulations.

Note Regarding Reference Translation

This document has been translated from the Japanese language original for reference purposes only and may not be used or disclosed for any other purpose without the Company's prior written consent. In the event of any conflict or discrepancy between this translated document and the Japanese language original, the Japanese language original shall prevail in all respects. The Company makes no representations regarding the accuracy or completeness of this translation and assumes no responsibility for any losses or damages arising from the use of this translation.

Third-Party Information

This document includes information derived from or based on third-party sources, including information about the markets in which the Company operates. These statements are based on statistics and other information from third-party sources as cited herein, and the Company has not independently verified and cannot assure the accuracy or completeness of any information derived from or based on third-party sources.

U.S. Disclaimer - Unsponsored American Depositary Receipt ("ADR")

The Company does not support or encourage, and has not consented to, the creation of any unsponsored ADR facilities in respect of its securities and in any event disclaims any liability in connection with an unsponsored ADR. The Company does not represent to any depositary institution, bank or anyone nor should any such entity rely on a belief that the Web site of the Company includes all published information in English, currently, and on an ongoing basis, required to claim an exemption under U.S. Exchange Act Rule 12g3-2(b).

A full set of materials regarding FY2020 results announcement is posted on https://recruit-holdings.com/ir/library/report/

Contact

Investor Relations [phone]

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