Full-Scale Entry into the Talent-Matching Business Through the Acquisition of リアライブ

「During the cumulative first-quarter period, the number of exhibitions fell to 2 because the holding months of some exhibitions were changed, compared with 3 in the cumulative first quarter of the previous fiscal year. Revenue in the exhibition business was ¥323,095 thousand and segment loss was ¥107,029 thousand, also reflecting the decline in revenue caused by the transformation of the recruitment support business model.」

「However, in the recruitment event business, the Company held substantially fewer events in the fourth quarter, when attracting students was difficult. In the recruitment placement business, the higher rate of declined job offers resulting from the earlier start of students' job-hunting activities, along with the additional recognition of a refund liability to prepare for future refunds arising from declined job offers, among other factors, resulted in continued difficult conditions.」

「During the interim consolidated accounting period, the Company worked to strengthen the management structure of the struggling recruitment event business and pursued fundamental reforms, including the development of and entry into new recruitment event businesses. In the recruitment placement business, the Company also prepared for full-scale entry into mid-career recruitment placement in addition to new-graduate recruitment placement. In new-graduate recruitment placement, the earlier start of students' job-hunting activities led to a higher rate of declined job offers. As a result, the Company recorded an additional refund liability to prepare for future refunds arising from declined job offers, causing a substantial delay against the plan.」

「Although attracting students to recruitment events was difficult due to the earlier start of job-hunting activities and higher customer-acquisition costs, among other factors, the recruitment placement business performed well. As a result, revenue from the human resources recruitment support business was ¥830.467 million, up 7.3% year on year, while segment profit was ¥147.787 million, down 6.3% year on year, for the consolidated fiscal year.」

「During the interim consolidated accounting period, the Company conducted sales activities aimed at increasing the number of recruitment events held and the number of recruitment placements. As a result, revenue from the human resources recruitment support business was ¥346.069 million, up 16.3% year on year, while segment loss was ¥5.099 million, compared with segment profit of ¥63.485 million in the same period of the previous year.」

「During the cumulative third quarter, the Company worked to strengthen its internal structure, including embedding and systematizing its training structure, an area of the Company's expertise, while focusing on developing the business. As a result, revenue from the human resources recruitment support business was ¥476.547 million and segment profit was ¥75.714 million for the cumulative third quarter.」

「During the cumulative second quarter, the Company conducted sales activities while focusing on strengthening its internal structure and developing the business, including embedding and systematizing its training structure, an area of the Company's expertise. As a result, revenue from the human resources recruitment support business was ¥297.663 million and segment profit was ¥63.485 million for the cumulative second quarter.」

「In the human resources recruitment support business, the Company held and operated "Jobtra," recruitment events for new graduates, and provided recruitment placement services to hiring companies, while focusing on establishing and systematizing its training structure, an area of the Company's expertise. As a result, revenue from the human resources recruitment support business was ¥153.057 million and segment profit was ¥43.207 million for the cumulative first quarter.」

「Against this background, the Company acquired the shares in order to make a full-scale entry into the matching services, or human resources business, which would become its third pillar.」

「At a meeting of the Board of Directors held on 1 February 2023, the Company resolved to acquire all shares of 株式会社リアライブ and make it a consolidated subsidiary. Based on this resolution, the Company entered into a share transfer agreement on the same date and planned to acquire all shares on 1 April 2023. Against this background, the Company acquired the shares in order to make a full-scale entry into the matching services, or human resources business, which would become its third pillar. Following the acquisition, the Company intends to grow 株式会社リアライブ substantially as the core company of the Group's human resources business.」