Aggressive expansion of the senior care business

「The Company expanded the content on its own recruitment website and strengthened advertising and recruitment activities at existing branches to increase the number of registered staff. In the staffing market, wages for temporary staff continued to rise against a backdrop of an ongoing labor shortage. Combined with the reduction in basic fees for home-visit nursing care operators following the revision of long-term care fees two years earlier and a sharp increase in the cost of securing temporary staff amid a tight recruitment market caused by broad-based inflation, this caused revenue to turn down and put pressure on profitability.」

「The Senior Care business primarily provides temporary staffing, recruitment and temp-to-perm placement services for qualified nurses, care workers and nursery teachers to nursing care and childcare facilities. During the current consolidated fiscal year, market needs remained strong, driven by demand for task shifting associated with reforms to physicians' working practices and a chronic labor shortage. However, the combined impact of the time required to rebuild the sales platform as part of measures to strengthen sales capabilities and optimize the earnings structure, a sharp increase in the cost of securing temporary staff amid a tight recruitment market caused by broad-based inflation, and demands for wage increases associated with revisions to medical and long-term care fees significantly slowed revenue growth and put pressure on profitability. As a result, revenue from the Senior Care business was ¥12,622,637 thousand, down 10.8% year on year.」

「In response, the Company allocated human resources from its sales activities to the childcare staffing business, where sales were strong, in an effort to recover, but revenue declined.」

「The Senior Care business primarily provides temporary staffing, recruitment and temp-to-perm placement services for qualified nurses, care workers and nursery teachers to nursing care facilities and childcare centers. During the interim consolidated accounting period, in the staffing business for nursing care facilities, the Company faced difficult conditions in passing on higher costs, as facilities whose operating conditions had deteriorated because of rising minimum wages and the impact of the reduction in basic fees for home-visit nursing care operators following last year's revision of long-term care fees were reluctant to accept higher staffing fees. In response, the Company allocated human resources from its sales activities to the childcare staffing business, where sales were strong, in an effort to recover, but revenue declined.」

「Although the special-demand projects for COVID-19 vaccination, which accounted for a large proportion of revenue in the previous consolidated fiscal year, were almost entirely absent in the current consolidated fiscal year, the Company continued to capture solid demand after the end of the vaccine-related special demand, mainly through its existing branches, while also expanding its coverage area to capture additional demand. As a result, the Company significantly expanded its existing businesses, offsetting the decline in special-demand revenue.」

「During the cumulative second quarter, the Company expanded demand and its geographic coverage at existing branches. It also allocated somewhat more resources to nursing, which commands higher unit prices, and nurse staffing contributed to revenue and profit. The Company expanded the content on its proprietary job-posting website and strengthened advertising to increase the number of registered staff and strengthened employee recruitment at existing branches. As a result, Senior Care revenue was ¥6,969,574 thousand, up 3.8% year on year.」

「During the cumulative first quarter, as in the Senior Work business, special-demand projects involving nurses dispatched to mass vaccination centers disappeared following the reclassification of COVID-19 as a Category 5 disease. However, on an organic basis excluding these special-demand projects, the business continued to grow steadily, limiting the year-on-year decline in revenue to a slight decrease.」

「As in the previous fiscal year, nurse staffing for COVID-19 vaccination programs continued to contribute. At the same time, the Company steadily captured demand after the end of special vaccine-related demand, mainly at existing branches, while also working to improve staffing gross margins. It expanded the content on its proprietary job-posting website and strengthened advertising to increase the number of registered staff and strengthened employee recruitment at existing branches.」

「During the cumulative third quarter, nurse staffing for COVID-19 vaccination programs continued to contribute, as in the previous fiscal year. At the same time, the Company steadily captured demand after the end of special vaccine-related demand, mainly at existing branches, while also working to improve staffing gross margins. It expanded the content on its proprietary job-posting website and strengthened advertising to increase the number of registered staff and strengthened employee recruitment at existing branches. As a result, Senior Care revenue was ¥9,830,120 thousand, up 11.0% year on year.」

「During the cumulative second quarter, nurse staffing for COVID-19 vaccination programs continued to contribute, as in the previous fiscal year, while new and existing branches steadily captured demand. The Company also expanded the content on its proprietary job-posting website and strengthened advertising to increase the number of registered staff and strengthened employee recruitment at existing branches. As a result, Senior Care revenue was ¥6,713,140 thousand, up 19.5% year on year.」

「The Senior Care business mainly provides staffing, recruitment and temporary-to-permanent staffing services for qualified personnel, including nurses and caregivers, to nursing-care facilities. The Company expanded the content on its proprietary job-posting website, while strengthening advertising to increase the number of registered staff and strengthening employee recruitment at existing branches. It also responded flexibly by winning nurse-staffing contracts for COVID-19 vaccination programs. As a result, Senior Care revenue was ¥3,507,327 thousand, up 37.3% year on year.」

「The basic policy for this business is to actively open branches in order to supply personnel to nursing-care facilities nationwide facing labor shortages. In line with this policy, the Company opened the Matsuyama branch in August 2022. At existing branches, it worked to deepen sales activities by subdividing assigned areas, expand the content on its proprietary job-posting website, strengthen advertising to increase the number of registered staff, and strengthen employee recruitment. In March 2022, it established a subsidiary engaged in the HR technology business.」

「During the cumulative third quarter, the Company expanded the content on its proprietary job-posting website and strengthened advertising to increase the number of registered staff and strengthened employee recruitment. It also responded flexibly by winning nurse-staffing contracts for COVID-19 vaccination programs. As a result, Senior Care revenue was ¥8,858,228 thousand, up 34.3% year on year.」

「The Senior Care business mainly provides staffing, recruitment and temporary-to-permanent staffing services for qualified personnel, including nurses and caregivers, to nursing-care facilities. The Company expanded the content on its proprietary job-posting website, while strengthening advertising to increase the number of registered staff and strengthening employee recruitment at existing branches. As a result, Senior Care revenue was ¥5,616,546 thousand, up 37.7% year on year.」

「The Company expanded the content on its proprietary job-posting website, while strengthening advertising to increase the number of registered staff and strengthening employee recruitment at existing branches. As a result, Senior Care revenue was ¥2,554,692 thousand, up 25.5% year on year.」

「The basic policy for this business is to actively open branches in order to supply personnel to nursing-care facilities nationwide facing labor shortages. In line with this policy, the Company opened the Niigata branch in April 2021, the Kanazawa and Matsumoto branches in August, and the Okinawa branch in September. At existing branches, it worked to deepen sales activities by subdividing assigned areas, expand the content on its proprietary job-posting website, strengthen advertising to increase the number of registered staff, and strengthen employee recruitment.」

「During the cumulative third quarter, the Company expanded the content on its proprietary job-posting website and strengthened advertising to increase the number of registered staff and strengthened employee recruitment. In some areas, it also responded flexibly by winning nurse-staffing contracts for COVID-19 vaccination programs. As a result, Senior Care revenue was ¥6,596,195 thousand, up 10.8% year on year.」

「During the cumulative second quarter, the Company expanded the content on its proprietary job-posting website and strengthened advertising to increase the number of registered staff and strengthened employee recruitment. In some areas, it also responded flexibly by winning nurse-staffing contracts for COVID-19 vaccination programs. As a result, Senior Care revenue was ¥4,078,836 thousand, up 4.3% year on year.」

「The Company expanded the content on its proprietary job-posting website, while strengthening advertising to increase the number of registered staff and strengthening employee recruitment at existing branches. As a result, Senior Care revenue was ¥2,035,892 thousand, up 2.1% year on year.」

「The basic policy for this business is to actively open branches in order to supply personnel to nursing-care facilities nationwide facing labor shortages. In line with this policy, the Company opened the Kagoshima branch in February 2020. At existing branches, it is also working to deepen sales activities by subdividing assigned areas, strengthen advertising to increase the number of registered staff, and strengthen employee recruitment.」

「The Senior Care business mainly provides staffing, recruitment and temporary-to-permanent staffing services for qualified personnel, including nurses and caregivers, to nursing-care facilities. Although facility closures and business suspensions at client sites due to the spread of COVID-19 did not occur overall, there were frequent instances in which coordination of staff start dates with client facilities proved difficult for reasons related to the pandemic. These did not have a material impact on performance. As a result, Senior Care revenue was ¥5,952,398 thousand, up 17.3% year on year.」

「The Company opened a new Kagoshima branch in February 2020 and established new teams by subdividing assigned areas within existing branches, working to expand the performance of its existing business by deepening sales activities. It also launched its home-visit nursing-care business in March 2020 and worked to strengthen medium- to long-term growth.」

「The Company opened a new Kochi branch in October 2019 and established 4 new teams by subdividing assigned areas within existing branches, working to expand the performance of its existing business by deepening sales activities. It also worked to strengthen medium- to long-term growth by establishing a specialized recruitment department in October 2019 and preparing to launch a home-visit nursing-care business.」

「The basic policy for this business is to actively open branches in order to supply personnel to nursing-care facilities nationwide facing labor shortages. In line with this policy, the Company opened the Takamatsu and Hamamatsu branches in February 2019 and made キューボグループ, which operates a similar business, a subsidiary through a share exchange, with 16 January 2019 as the effective date. At existing branches, it is also working to deepen sales activities by subdividing assigned areas, strengthen advertising to increase the number of registered staff, and strengthen employee recruitment.」

「The basic policy for this business is to actively open branches in order to supply personnel to nursing-care facilities nationwide facing labor shortages. In line with this policy, the Company opened the Takamatsu and Hamamatsu branches in February 2019 and made キューボグループ, which operates a similar business, a subsidiary through a share exchange, with 16 January 2019 as the effective date. At existing branches, the Company is also strengthening advertising and employee recruitment to increase the number of registered staff and expand performance.」

「The basic policy for this business is to actively open branches in order to supply personnel to nursing-care facilities nationwide facing labor shortages. In line with this policy, the Company opened the Takamatsu and Hamamatsu branches in February 2019 and made キューボグループ, which operates a similar business, a subsidiary through a share exchange, with 16 January 2019 as the effective date. At existing branches, the Company is also strengthening advertising and employee recruitment to increase the number of registered staff and expand performance.」

「The basic policy for this business is to actively open branches in order to supply personnel to nursing-care facilities nationwide facing labor shortages. In line with this policy, the Board of Directors resolved at its meeting in November 2018 to open the Takamatsu branch in Takamatsu, Kagawa Prefecture, and the Hamamatsu branch in Hamamatsu, Shizuoka Prefecture, in February 2019, and to make キューボグループ, which operates a similar business, a subsidiary through a share exchange, with 16 January 2019 as the effective date. At existing branches, the Company is also strengthening advertising and recruitment to increase the number of registered staff and expand performance.」

「In the Senior Care business, the Company worked to establish systems for matching clients and job seekers more quickly and for operating its branches, but costs increased more than expected as social-insurance coverage was expanded for dispatched staff.」

「In the Senior Care business, the Company worked to establish systems for matching clients and job seekers more quickly and for operating its branches. It opened the Utsunomiya and Mito branches in April 2018 and plans to continue actively expanding its locations. As a result, Senior Care revenue was ¥4,350,712 thousand, up 3.6% year on year.」

「As competition intensified further with the expansion of the nursing-care market, the Company concluded that it needed a system to match client demand with job-seeker information more quickly. It therefore separated operations previously handled independently at each branch and began fully operating an improvement initiative from the latter half of the second quarter under which the work is processed centrally at a matching center. As a result, Senior Care revenue was ¥2,931,772 thousand, up 7.2% year on year.」

「The caregiver staffing business, where labor shortages are particularly severe, expanded steadily through the proactive development of facilities. As a result, Senior Care revenue was ¥1,485,629 thousand, up 12.2% year on year.」

「The Company also opened the Okayama branch in May 2017 to improve sales efficiency in the Chugoku region. As a result, Senior Care revenue was ¥5,669,697 thousand, up 22.7% year on year.」

「The Company also opened the Okayama branch in May 2017 to expand its sales area. As a result, Senior Care revenue was ¥4,198,320 thousand, up 23.9% year on year.」

「The caregiver staffing business, launched in October 2014, expanded steadily through the proactive development of facilities. As a result, Senior Care revenue was ¥2,733,792 thousand, up 23.0% year on year.」

「Amid this operating environment, the Company pursued aggressive expansion of the Senior Work and Senior Care businesses to achieve sustained growth in corporate value.」

「The Company opened the Tachikawa branch in January 2016 and the Kyoto branch in May 2016, followed by the Nara and Mie branches between June and August 2016, and pursued aggressive regional expansion, including efforts to improve sales efficiency in those areas.」

「Amid this operating environment, the Company continued to pursue aggressive expansion of the Senior Work and Senior Care businesses.」