S Pool : Results Briefing Materials 1Q FY2021

S Pool : Results Briefing Materials 1Q FY2021

S-Pool, Inc.

2471

JP3163900008

Employment Services

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S-Pool, Inc.

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2471

JP3163900008

Employment Services

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EPS Revisions

Quarterly earnings - Rate of surprise

Sector Outsourcing & Staffing Services

EPS Revisions

Delayed Japan Exchange Other stock markets 01:08:49 2024-04-25 am EDT			5-day change	1st Jan Change
304 ^JPY	-0.98%		-2.88%	-31.53%

Feb. 29	S-Pool, Inc. Provides Consolidated Earnings Guidance for the Six Months Ending May 2024 and Full Year Ending November 2024	CI
Feb. 29	S-Pool, Inc. Announces Year-End Dividend for the Fiscal Year Ended November 30, 2023	CI

April 02, 2021 at 02:32 am EDT

Results Briefing Materials

1Q FY2021

April 2, 2021

S-Pool, Inc.

First Section, Tokyo Stock Exchange (2471)

Contents

1Q FY2021 Performance Results
1Q FY2021 Overview by Business Segment
FY2021 Business Policies/Performance Forecasts

Net sales Operating profit Net income*

1Q FY2021 Performance Highlights

1Q FY2021 overview of accounts settlement

 The year started largely according to plan, with steady progress on preparations to accelerate growth in 2Q and beyond.

5,410 million yen (YoY change +15.7%)

387 million yen (YoY change +0.1%)

250 million yen (YoY change -17.1%)

* Net income attributable to owners of the parent

1Q FY2021

overview

business segment

[Human Resource Outsourcing Services]
Net sales	3,943 million yen (YoY change +13.9%)

This is typically a slow period characterized by limited sales growth. Nevertheless, progress went according to plan.

[Special Needs Employment Service]
Net sales	772 million yen (YoY change +18.1%)

Sales are strong thanks to various legal amendments. Orders continue to be received at a record pace in preparation for full-fledged delivery in 2Q.

	 Continuing to set record highs and achieving steady growth
FY2021	under any circumstances.
performance	Net sales	24,800 million yen (YoY change +18.0%)
forecasts	Operating profit	2,500 million yen (YoY change +12.2%)
	Projected dividend	4.1 yen (previous term: 3.3 yen)

1. 1Q FY2021 Performance Results

(Unit: million yen)

1Q FY2021 Financial Results (YoY Comparison)

The year began largely according to plan, despite the declaration of another

state of emergency.

	1Q FY2021	1Q FY2020	YoY change	YoY change

	result	result	(%)

Net sales	5,410	4,675	+734	+15.7%

Gross profit	1,446	1,311	+134	+10.3%

Gross profit margin (%)	26.7%	28.1%		-1.4 pt

Selling and administrative	1,058	924	+133	+14.5%
expenses

Selling and administrative	19.6%	19.8%		-0.2 pt
expenses/net sales (%)

Operating profit	387	386	+0	+0.1%

Operating profit margin (%)	7.2%	8.3%		-1.1 pt

Ordinary profit	382	390	-7	-2.0%

Quarterly net income attributable	250	302	-51	-17.1%
to owners of the parent

(Unit: million yen)

1Q FY2021 Results by Segment

Profits in the Business Solutions Segment fell due to forward-looking costs related to preparations to open four farms in the special needs employment

services business. We expect major improvements from 2Q.

			1Q FY2021		1Q FY2020	YoY change	YoY change
			result		result	(%)

	Business Solutions Segment		1,477		1,222	+255	+20.9%
Net sales	Human Resource Solutions Segment		3,943		3,462	+481	+13.9%
Adjustments		(9)		(8)	-	-

	Total		5,410		4,675	+734	+15.7%
	Business Solutions Segment		274		307	-33	-10.8%
Operating	Human Resource Solutions Segment		414		352	+62	+17.8%
profit	Adjustments		(302)		(272)	-	-
	Total		387		386	+0	+0.1%
Operating	Business Solutions Segment		18.6%		25.2%	-	-6.6 pt
Human Resource Solutions Segment		10.5%		10.2%	-	+0.3 pt
profit margin
	Total		7.2%		8.3%	-	-1.1 pt

Business Solutions Segment:Outsourcing Services (Special Needs Employment Service, Logistics, Employment Support Service, etc.) Human Resource Solutions Segment: Temporary Staffing Services (call centers, sales support, long-term care businesses, etc.)

Trends in Quarterly Business Performance

Sales growth in 1Q, typically a slow period, was limited. We expect accelerating growth from 2Q.

5,741

5,509 5,410

(Unit: million yen)	5,083
4,822
 Net sales
4,675
 Operating profit	4,408
	4,403
4,096
3,835	3,888
3,653

2,650

3,387

3,212

2,978

2,872

2,359 2,457

2,038 2,323

2,029

1,799

1,748 1,755 1,777

1,489 1,611 1,661

1,388 1,412

1,212 1,352

551 440 400 386

604 567 669

240123

230

215129

283 166 296 236 284 211

387

(4)

105 32

(22) 54

(90) 118

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

2021

2. 1Q FY2021 Overview by Business Segment

Human Resource Outsourcing Services [1Q FY2021 Results]

Net sales: 3,943 million yen(YoY change +13.9%)

period, was limited.

Additionally, the quarter had fewer business days than usual.

[Call centers] 3,188 million yen (+18%):

[Sales support] 494 million yen (-14%):

Due to a dip resulting from the replacement of spot transactions, the call centers business remained largely unchanged from last quarter.
Despite lower sales in the sales support business, growing corporate demand for mobile devices has led to

expectations of a recovery in 2Q and later.				[Newly registered staff] 3,881 staff/month
	[Number of staff deployed]
	5,798 staff/month (YoY change: +3%)				(YoY change: +0.3%)

																		4,119	3,988	3,943
																	3,680	239
(Unit: million yen)																263	261
												3,384	3,462	507
														208
 Other												3,242	523	494
										3,047	159	178	556
 Sales support								2,797	2,842	145	576
 Call centers						2,600	2,713	109		576
					93	651
							121	110	651

				2,126	2,273	121	620	615
				564
	1,892	2,006	122	551
	110
1,699	105	510
78	494												3,373
68	426	443														3,203	3,188
													2,916
390														2,708
												2,447	2,649
										2,134	2,288
							1,928	2,028	2,067

		1,457	1,522	1,640
1,241	1,388

1Q	2Q	3Q	4Q		1Q	2Q	3Q	4Q		1Q	2Q	3Q	4Q		1Q	2Q	3Q	4Q		1Q

	FY2017				FY2018				FY2019				FY2020			FY2021

Special Needs Employment Service [1Q FY2021 Results]

Net sales: 772 million yen(YoY change: +18.1%)

Orders received maintained their record pace.

Preparations remained on track towards full-fledged delivery (351 sections) in 2Q.

[Equipment sales] 144 sections [Sections managed] 3,973 sections [Employees] 1,987 persons [Retention rate] 92% [Customers] 331 companies

Sales were strong in preparation for increased employment obligations. The balance of orders received rose to 330 sections.
In preparation for large 2Q delivery volumes (351 sections), plans call for steady progress in preparations to open farms and to provide training and education for special needs employees.
In response to strong sales, we decided to add an indoor farm facility in Tokyo ahead of schedule.

							1,121
 Recruitment fees (million yen)		設	Facilities sold

 Facility sales (million yen)

 Management expenses (Unit: million yen)				859	848
					820
						772

							712
			648		647	654
	533		465
	424	449	441
300	297
176

Logistics Outsourcing Services [1Q FY2021 Results]

Net sales: 287 million yen(YoY change: +14.3%)

Services involving shipments of mail order products essentially remained strong, despite a slight decrease in sales.

[Shipments of mail order products] 259 million yen (YoY change: +19%)

[Distribution center operations] 29 million yen (YoY change: -17%)

Sales of services involving shipments of mail order products declined slightly from last quarter due to decreased shipments by major customers.
New sales were strong. Orders received from major firms grew, in addition to orders from our traditional base of midsized firms and startups.

						 Shipments of mail order products
(Unit: million yen)		374	392	398		 Distribution center operations
				Shipping costs not included in sales recorded
303	311	333		321			310	303	307
303					287
				271		265
240				240	252

OMUSUBI Employment Support Service [1Q FY2021 Results]

Net sales: 155 million yen(YoY change: +25.3%)

The peak hiring period began earlier than usual this year, and applications received grew steadily. There also are expectations for a future recovery in the food service industry.

[Applications received] 52,350 applications/month (YoY change: +50%) [Number of customers] 105 companies

The pace of hiring accelerated, particularly in drugstores, delivery services, and other industries performing well currently.
Staffing at the Hirosaki Center more or less doubled in response to business growth. We have begun considering opening a new center earlier than planned.

Applications received 143,297

(Unit: million yen)

72,562	77,135 79,700

102,363107,191112,439

85,909104,655

				41,911										154	139	148	155

			37,654						111	113	125	123
	33,083 31,778
28,226			87	84	87
				73
			52	61
	44	49
35

1Q	2Q	3Q		1Q	2Q	3Q	4Q		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
4Q			1Q
	FY2017			FY2018				FY2019				FY2020	FY2021

3. FY2021 Business Policies/ Performance Forecasts

FY2021 Business Policies

Basic Policy

Promoting well-balanced portfolio management resistant to environmental change


	High social	Resistant to business		High added value
	contributions		cycle changes


Medium-term management plan	January 13, 2021

[Theme]

[Numerical

plans]

Creating both social value and economic value

FY2025: Net sales of 41 billion yen, operating profit of 5 billion yen

[Management Business

Strategy (i)

strategies] Business

Strategy (ii)

Organizational

Strategy

[Financial FY2025 strategies]

Maintaining organic growth by building on existing businesses

Securing growth opportunities in new business domains Enhancing management foundations based on ESG

Consolidated dividend payout ratio of 30% or more Maintaining high ROE

FY2021 Performance Forecasts

 We expect new record highs thanks to growth in net sales for the ninth consecutive term and growth in operating profit for the sixth consecutive term.

				 Net Sales
		(YoY change)
	24,800 million yen		 Operating profit
Net Sales	(+18.0%)

Operating profit	2,500 million yen	(+12.2%)
Ordinary profit	2,488 million yen	(+11.6%)
Net income attributable	1,635 million yen	(+3.5%)
to owners of the parent

(Unit: million yen)

2,228 2,500

												507	674	983	1,604
			219		156	205	125				207
(146)	22	16	140	111	(478)	(291)	32	48	66	59

(Planned)

FY2021 Performance Forecasts (Details)

				(Unit: million yen)
	FY2021	FY2020	YoY change	YoY change
	planned	actual	(%)

Net sales	24,800	21,009	+3,790	+18.0%

Gross profit	7,106	6,377	+729	+11.4%

Gross profit margin (%)	28.7%	30.4%		-1.7 pt

Selling and administrative	4,606	4,148	+458	+11.0%
expenses

Selling and administrative	18.6%	19.7%		-1.1 pt
expenses/net sales (%)

Operating profit	2,500	2,228	+271	+12.2%

Operating profit margin (%)	10.1%	10.6%		-0.5 pt

Ordinary profit	2,488	2,229	+258	+11.6%

Net income attributable to	1,635	1,580	+55	+3.5%
owners of the parent

FY2021 Performance Forecasts by Segment

(Unit: million yen)

			FY2021		FY2020	YoY change	YoY change
			planned		actual		（単位：百万円）
					(%)
	Business Solutions Segment		7,408		5,825	+1,582	+27.2%

Net sales	Human Resource Solutions Segment		17,500		15,250	+2,249	+14.8%

Adjustments		(108)		(65)	-	-

	Total		24,800		21,009	+3,790	+18.0%

	Business Solutions Segment		1,873		1,619	+254	+15.7%

Operating	Human Resource Solutions Segment		1,930		1,757	+172	+9.8%
profit	Adjustments		(1,303)		(1,148)	-	-


	Total		2,500		2,228	+271	+12.2%

	Business Solutions Segment		25.3%		27.8%	-	-2.5 pt
Operating
Human Resource Solutions Segment		11.0%		11.5%	-	-0.5 pt
profit margin
	Total		10.1%		10.6%	-	-0.5 pt

FY2021 Performance Forecasts by Half

Preparations remained on track toward achievement of planned targets, centered on Special Needs Employment Services

					(Unit: million yen)
	FY2021 planned		FY2020 actual
	1H	2H		1H	2H
Net sales	11,876	12,923		9,759	11,250

Gross profit	3,353	3,752		2,874	3,502

Gross profit margin (%)	28.2%	29.0%		29.5%	31.1%

Selling and administrative	2,253	2,353		1,883	2,265
expenses

Selling and administrative	19.0%	18.2%		19.3%	20.1%
expenses/net sales (%)

Operating profit	1,100	1,399		991	1,237

Operating profit margin (%)	9.3%	10.8%		10.2%	11.0%

Ordinary profit	1,094	1,393		989	1,240


Net income attributable to	712	922		688	892
owners of the parent

Dividend Policy/Dividend Plan

Dividend Plan

Plans call for a 4.1 yen dividend for FY2021.

(Unit: yen)

2.00

(Planned)

Dividend policy

We will seek to achieve stable and continuous growth in dividends while accounting for capital efficiency and strengthening our financial foundations.

Paying dividends targeting consolidated payout ratio of 20%

(Even if earnings decrease, dividends will not be reduced to levels at which the consolidated payout ratio decreases by more than 60% on a single-year basis.)

[Reference] Company overview

Name	｜	S-Pool, Inc.

Origin of name	｜	'Pool' (combination) of Solutions/Systems/Staff/Social/Share

Head office	｜	6F, Akihabara Dai Building, 1-18-13 Sotokanda, Chiyoda-ku, Tokyo, Japan

Capital	｜	372,200,000 yen (end of March 2021)

Established	｜	December 1, 1999

Representative	｜	Sohei Urakami, Chairman of the Board, President, and Representative Director

Directors	｜	Director:	Hideaki Sato (CPA)
	｜	Director:	Naoshi Arai
	｜	Outside Director: Toru Akaura
	｜	Outside Director: Nao Miyazawa (attorney)
	｜	Outside Director: Kazuhiko Nakai (CPA) Listed exchange


Listed exchange ｜	First Section, Tokyo Stock Exchange (Securities Code: 2471)

Number of employees ｜	Consolidated: 856 persons (end of February 2021)

Facilities	｜	49 locations (end of March 2021)

[Reference] Business Segments

Two main services account for 88% of consolidated net sales:

	Business Solutions Business (29%)	Human Resource Solution Business (71%)


 Special Needs Employment Services	 Human Resource Outsourcing Services
	[3.34 billion yen]	[15.25 billion yen]
•	Operating rental farms for use by companies employing	• Temporary staffing/referral services
	exclusively people with disabilities
	Sales and marketing staff (e.g., smartphones, home
•	Employment support services (training and introduction to
electronics)
	employment opportunities for people with disabilities)
	Office staff (call centers, offices)

		Long-term care, nursing, childcare staff
 Logistics Outsourcing Services [1.17 billion yen]

e-Commerceshipping agent services, cross border e-commerce services
Distribution center operations

 Sales Support Services

[410 million yen]

Sales promotion support, merchandising operations
Operational support (promotional campaigns, promotions, trial operation)

 Employment Support Services

[560 million yen]

- OMUSUBI Employment Support Service
Environmental Management Support Services
- [120 million yen]
- CO2 emissions calculation support, carbon credit brokering support

 New businesses

[230 million yen]

Professional human resource bank (consultants staffing services)

		* Sales figures		and segment sales percentages are based on FY2020 results.
Copyright © Spool Inc. All Right Reserved.	21

[Reference] List of Group Member Companies

S-Pooldevelops new businesses to be spun off as future subsidiaries.

Parent company

[Business holding company and new business development]

S-Pool, Inc.

Group member companies

[Human Resource Outsourcing Services]

S-Pool Human Solutions, Inc.

[Special Needs Employment Services]

S-Pool Plus, Inc.

[Logistics Outsourcing Services]

S-Pool Logistics, Inc.

[Sales Support Services]

S-Pool Sales Support, Inc.

[Employment Support Services]

S-Pool Link, Inc.

[Environmental Management Support Services]

Blue Dot Green Inc.

[Reference] Group Network

[Group head office] Akihabara Human Resource Outsourcing Services

Shinjuku Head Office, Sapporo Odori, Sapporo Kitaguchi, Sapporo Minamiguchi, Sendai, Shinjuku 3-chome, Shinjuku Minamiguchi, Ikebukuro, Yokohama, Yokohama Nishiguchi, Nagoya, Osaka Umeda, Osaka Ekimae, Hakata Ekimae, Tenjin, Naha, Chatan, Kitami Applications Reception Center

Employment Support Services

[Main facilities] Akihabara, Osaka

[Entry centers] Kitami, Hirosaki, Komatsushima, Nichinan, Saito

Logistics Outsourcing Services

[Front office]	Akihabara
[Distribution centers]	Shinagawa, Tsukuba

Special Needs Employment Services

[Front office] Akihabara

[Work Happiness Farms] 23 farms

[Tokyo]	Itabashi
[Saitama]	Saitama (Iwatsuki), Kawagoe
[Chiba]	(Wakaba (i) (ii), Hanamigawa), Matsudo,
	Yachiyo, Funabashi (i) (ii) (iii),
	Kashiwa (i) (ii) (iii), Ichihara (i) (ii), Mobara (i) (ii)
[Aichi]	Kasugai, Komaki, Tokai, Toyoake, Miyoshi

Sales Support Services

Akihabara, Osaka

S-Pool, Inc.

[Contact]	Investor Relations at the President's Office
	TEL:	+81-3-6853-9411
	E-mail:	kouhou@spool.co.jp

Forecasts of business results and other forward-looking statements contained in this document are based on information available to the Company at the time of release. Actual results may vary due to various factors. No promise or guarantee is made regarding future figures or measures.

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S-Pool Inc. published this content on 02 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 April 2021 06:31:02 UTC.

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Duration

Period

More charts

S-Pool, Inc. is a Japan-based company mainly engaged in the provision of outsourcing services, such as temporary staffing, employment support for persons with disabilities, logistics outsourcing, smart meter installation support, and sales support. The Company operates its business through two business segments. The Business Solution segment is involved in the provision of logistics outsourcing services and employment support services for persons with disabilities, as well as the farm management business accompanying the services. It also provides outsourcing services and field marketing services in the sales promotion field. The Human Resource Solution segment provides services related to human resources, such as staffing and recruiting, and its main operations are office support staffing and in-store support staffing business.

Sector

Employment Services

Calendar

2024-07-02 - Q2 2024 Earnings Release (Projected)

More about the company

More financial data

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

307 JPY

Average target price

560 JPY

Spread / Average Target

+82.41%

Consensus

Estimates Revisions

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Outsourcing & Staffing Services

Net sales (million yen)