New-graduate and diverse recruitment, securing talent and long-term employment through employee benefits and improved compensation and working conditions

「In addition to the contribution from the newly consolidated Associe Academy and Associe International, accumulated subsidies for childcare service promotion projects, restraints on recruitment expenses and an improvement in the personnel expense ratio lifted profit.」

「To secure human resources, we will develop personnel through measures such as introducing a mentoring system, promote recruitment that avoids mismatches, and create a comfortable working environment by improving productivity, thereby building an organization that people choose to join.」

「The number of employees decreased by 332 and the number of temporary employees decreased by 37 from the previous consolidated fiscal year.」

「The cost of sales ratio improved significantly, falling by 1.3 percentage points year on year, due in part to lower recruitment and food material costs.」

「In terms of expenses, although ICT costs increased, gross profit increased due to lower recruitment costs and an improved personnel expense ratio.」

「To date, we have secured personnel mainly by recruiting experienced workers, an area in which we have strengths, but we will work to strengthen our recruitment capabilities by placing greater emphasis on hiring new graduates. We are also focusing on diversifying recruitment, including graduate recruitment, and controlling recruitment costs.」

「To date, we have secured personnel mainly by recruiting experienced workers, an area in which we have strengths, but we will work to strengthen our recruitment capabilities by placing greater emphasis on hiring new graduates. We are also focusing on diversifying recruitment and controlling recruitment costs, including by promoting referral recruitment based on introductions and recommendations of childcare workers and other personnel by employees of our group.」

「In terms of expenses, compared with the third quarter of the previous consolidated fiscal year, personnel expenses and company housing rent increased as the total number of employees rose in the third quarter of the current consolidated fiscal year. However, the cost of sales ratio improved by 0.5 percentage points, mainly due to lower recruitment costs. In addition, although investments to improve operational efficiency increased, the selling, general and administrative expense ratio improved by 0.3 percentage points year on year due to lower head-office personnel expenses and other factors.」

「In terms of expenses, although recruitment costs were controlled, facility land and rent expenses increased as the number of facilities operated increased. The cost of sales ratio rose by 0.2 percentage points, mainly due to higher personnel expenses and company housing rent associated with increased staffing. Meanwhile, although investments to improve operational efficiency increased, the selling, general and administrative expense ratio improved by 0.4 percentage points year on year due to lower head-office personnel expenses and other factors.」

「In terms of expenses, cost of sales increased mainly due to higher personnel expenses associated with increased staffing as the number of facilities operated increased and enhanced employee benefits. Selling, general and administrative expenses also increased due to higher outsourcing costs, including recruitment advertising and investments to improve operational efficiency.」

「To date, we have secured personnel mainly by recruiting experienced workers, an area in which we have strengths, but we will work to strengthen our recruitment capabilities by placing greater emphasis on hiring new graduates. We are also focusing on diversifying recruitment and controlling recruitment costs, including by promoting referral recruitment based on introductions and recommendations of childcare workers and other personnel by employees of our group.」

「In terms of expenses, variable costs were lower in April of the previous fiscal year due to the impact of requests to refrain from attending childcare facilities and temporary closures. In the current fiscal year, however, variable costs increased because there were no temporary closures and facilities operated normally. In addition, personnel expenses increased as the number of childcare workers and other employees rose in line with the expansion of the number of facilities, resulting in a higher cost of sales ratio. Meanwhile, the selling, general and administrative expense ratio improved as the shift of internal events, training and meetings online became established and the company promoted more efficient employee recruitment.」

「During the first six months of the current consolidated fiscal year, revenue increased as the number of children increased, mainly due to the expansion of the number of facilities operated. The cost of sales ratio and the selling, general and administrative expense ratio also improved as the company promoted the shift of internal events and training online and improved the efficiency of recruitment of childcare workers and other employees.」

「During the first quarter of the current consolidated fiscal year, revenue increased as the number of children increased, mainly due to the expansion of the number of facilities operated. Selling, general and administrative expenses also decreased as the company promoted the shift of internal events online and improved the efficiency of childcare worker recruitment.」

「Although the company worked to control selling, general and administrative expenses, personnel expenses and cost of sales increased as a result of strategically promoting work-style reforms aimed at improving childcare quality.」

「Although personnel expenses increased as a result of strategically promoting work-style reforms aimed at recruiting childcare workers and improving childcare quality, the increase was absorbed by controlling selling, general and administrative expenses, resulting in a higher operating profit margin.」

「We are also focusing on diversifying recruitment, including referral recruitment based on introductions and recommendations of childcare workers and other personnel by employees of our group.」

「Although revenue increased as the number of children increased, mainly due to the expansion of the number of facilities operated, cost of sales and selling, general and administrative expenses increased as personnel-related costs and recruitment costs rose in connection with hiring frontline personnel in preparation for accepting more children in the next fiscal year.」

「Although revenue increased as the number of children increased, mainly due to the expansion of the number of facilities operated in line with the growth strategy, cost of sales and selling, general and administrative expenses increased due to higher recruitment and company housing costs associated with actively hiring frontline personnel in preparation for opening facilities in the next fiscal year.」

「Our group, which employs many childcare workers, aims to build an organization where employees can work over the long term. To support our childcare workers' return to work after giving birth, we are working to expand childcare facilities that accept employees' children.」

「We introduced a retirement benefit plan on 1 February 2017. Accordingly, to provide for employees' retirement benefits, we recognized liabilities related to retirement benefits based on the estimated retirement benefit obligation as of the end of the third quarter of the current consolidated fiscal year.」

「Non-current liabilities increased by ¥822 million from the end of the previous consolidated fiscal year to ¥5,369 million. This was mainly due to a ¥753 million increase in long-term borrowings and the recognition of ¥93 million in liabilities related to retirement benefits following the introduction of the lump-sum retirement benefit plan.」

「To improve compensation for childcare workers, we introduced a lump-sum retirement benefit plan as a retirement benefit program on 1 February 2017. We estimate that the resulting past service cost will be approximately ¥75 million.」

「Accordingly, in addition to the recruitment of experienced personnel, which has been our focus to date, we will work to strengthen our recruitment capabilities by placing greater emphasis on hiring new graduates. We also provide training, such as childcare assistant training courses, for jobseekers who are not eligible to receive employment insurance benefits. Based on graduates' preferences, we will also focus on diversifying recruitment, including hiring graduates of these courses. In addition, we will work to retain personnel over the long term by providing an attractive working environment through enhanced employee benefits, including company housing, expanded training programs such as overseas training, and improved compensation.」