Further expansion of the recruitment services business

「Aim to improve profitability and expand the scale of the business simultaneously by increasing the proportion of high-income positions in regional markets.」

「Numerical targets under the medium-term management plan 2025 actual 2026 forecast 2027 target 2028 target Consolidated revenue ¥46.0 billion ¥53.2 billion ¥61.2 billion ¥70.4 billion Consolidated operating profit ¥11.6 billion ¥12.6 billion ¥14.5 billion ¥17.3 billion Consolidated net income ¥8.4 billion ¥8.6 billion ¥9.9 billion ¥11.9 billion」

「The company is also expanding its regional locations and opened the Hokkaido Branch in May. Regarding the strengthening of human capital, the largest key driver of the company's growth, we were able to increase the number of consultants by approximately 250 during the first half, including approximately 150 new graduates, broadly in line with the plan at the start of the fiscal year.」

「Numerical targets under the medium-term management plan 2024 actual: 2025 forecast: 2026 target: 2027 target: Consolidated revenue: ¥39.1 billion; ¥44.9 billion; ¥51.4 billion; ¥59.1 billion Consolidated operating profit: ¥9.0 billion; ¥10.0 billion; ¥12.0 billion; ¥14.4 billion Consolidated net income: ¥5.6 billion; ¥7.0 billion; ¥8.3 billion; ¥10.0 billion」

「Initiatives in the regional and account-management areas, which are priority areas, are also producing results. Toward the second half, we will pursue the development of growth areas and account management in tandem to expand our group's business.」

「Although difficult market conditions continue in Asia, the overseas business aims to return to growth and improve profitability by strengthening services for Japanese companies in Europe and North America, where hiring needs are strong, including through the opening of new locations.」

「Under its long-term management vision through 2030, “JAC as No.1,” the company aims to become the world's leading professional recruitment organization in both service quality and profitability.」

「Our group’s domestic recruitment business has continued increasing consultant numbers, essential to the growth of the business, in line with the initial plan. With a view to expanding the business scale, we also strengthened the organizational structure by increasing the number of executive officers and senior employees at division-manager level, including within the administration headquarters.」

「In the domestic human resources business in the first half of 2023, large multiple placements, defined as more than 20 placements with one company, performed strongly, increasing 60% year on year through Account Management (systematic management of key corporate clients), a key initiative. In addition, placement value in the strengthened executive and regional fields progressed at 20% above the previous-year level in each field.」

「We will work to expand the business, including developing new markets through the new locations opened in Sendai and Hamamatsu in April.」

「The company has formulated and disclosed a medium-term management plan covering the 3 years from 2023. Under this plan, while closely monitoring global economic trends, we will rapidly implement initiatives to develop and deepen the market, centered on the domestic recruitment business. While emphasizing organic growth, we will also expand the group's business portfolio as appropriate, seeking to improve profitability alongside expansion in scale, increase shareholder returns and expand our share of global markets over the long term. 2022 actual: consolidated revenue ¥30.4 billion, consolidated net income ¥5.0 billion, recruitment consultants 1,227 2023 forecast: consolidated revenue ¥36.6 billion, consolidated net income ¥5.4 billion, recruitment consultants 1,444 2024 target: consolidated revenue ¥43.9 billion, consolidated net income ¥6.9 billion, recruitment consultants 1,700 2025 target: consolidated revenue ¥52.7 billion, consolidated net income ¥8.9 billion, recruitment consultants 2,000」

「Numerical targets under the medium-term management plan 2021 actual: consolidated revenue ¥24.8 billion, consolidated net income ¥3.8 billion, recruitment consultants 1,091 2022 forecast: consolidated revenue ¥28.5 billion, consolidated net income ¥4.1 billion, recruitment consultants 1,206 2023 target: consolidated revenue ¥32.8 billion, consolidated net income ¥5.6 billion, recruitment consultants 1,392 2024 target: consolidated revenue ¥37.9 billion, consolidated net income ¥6.8 billion, recruitment consultants 1,605」

「To expand its business areas, the company is rolling out a new service under the brand name “JAC Career” for young professionals with high market value.」

「Against this backdrop, we view the period from 2022 onward as the growth phase of “After COVID-19” and have set targets for each reportable segment as follows.」

「The company has withdrawn the medium-term plan for the time being and is rebuilding it from the ground up.」

「Against this backdrop, we view the period from 2021 onward as a growth phase and will continue, particularly through the domestic recruitment business centered on our company, to increase and retain consultants and strengthen earnings capacity by promoting measures to secure job seekers」

「We will also seek to reignite growth by allocating human resources to promising markets.」

「In the current fiscal year, with a view to medium- to long-term organizational expansion, we made substantial investments and advanced fundamental development of the business infrastructure required for a consultant workforce of 1,000 through employee recruitment, securing registered candidates, development of a new core information system, and other initiatives. As a result, the increase in consultant numbers was ahead of the planned number for the end of December as of the end of September.」

「With a view to future organizational expansion, we made substantial investments while keeping profit at approximately the level of the previous year, and proceeded to fundamentally strengthen the business base needed for a 1,000-consultant structure through employee recruitment, securing registered candidates, development of a new core information system and other initiatives.」

「In particular, to further strengthen our overseas-related services for Japanese companies, an area of strength, we acquired all shares of JRA, as disclosed on 22 March 2018, establishing a structure as a global group in both name and substance.」

「Demand for talent is becoming more diverse amid further globalization and innovation by companies, as well as regional revitalization. Within this environment, our group aims to improve performance by concentrating management resources on high-value and highly specialized fields. The number of placements in the overseas-related field for Japanese companies, one of our strengths, remained strong, increasing 29.7% year on year. Performance also grew steadily at the Kita-Kanto Branch in Saitama, opened in October 2017, the Shizuoka Branch, and the Chugoku Branch in Hiroshima, opened in January 2017, all of which target regional cities with strong demand.」

「Against a backdrop of historically high active job-opening ratios, companies' demand for talent is becoming more diverse. Within this environment, our group aims to improve performance by concentrating management resources on our areas of strength, namely high-value and highly specialized fields. In particular, our provision of professional talent to regional companies, an initiative we have pursued for many years, has produced steady results. In October, we opened the Kita-Kanto Branch in Saitama, Saitama Prefecture, and are proceeding with the regional rollout of high-value recruitment services following the Shizuoka Branch and the Chugoku Branch in Hiroshima.」

「Against a backdrop of historically high active job-opening ratios, companies' demand for talent is becoming more diverse. Within this environment, our group aims to improve performance by expanding its market share in our areas of strength, namely high-value and highly specialized fields.」

「To expand the recruitment business, we opened the Chugoku Branch in Hiroshima in January and are preparing to open new locations in other regions, accelerating the regional rollout of high-value recruitment services.」

「To further expand the scale of our recruitment business, we opened the Shizuoka Branch in July as our seventh location and, from October, established a new recruitment structure under which all consultants participate in recruiting employees for the company in addition to their existing responsibilities, thereby working to secure the required headcount.」

「We are establishing a management structure aimed at further expanding the scale of our recruitment business.」