Expanding Recruitment and Registered Worker Numbers and Improving Productivity in the Temporary Staffing Business

「Strengthen recruitment to secure personnel (headcount up 11.3% from the previous fiscal year-end) Improve retention of management candidates by eliminating dual roles and reviewing evaluation standards」

「Based on this, the Company has established the following 3 pillars of its human resources strategy: 1. Recruitment emphasizing basic capabilities and potential 2. Talent development beyond individual areas of responsibility 3. Balancing the development of team and individual capabilities」

「From the perspective of human capital management, particularly in the games business, we earn consideration for creating game content, an intangible asset, and human capital is the source of that value. The accounting value generated by this is primarily segment profit, or operating profit. However, an excessive focus on this figure alone could cause us to miss opportunities to acquire intangible assets such as intellectual property that are not necessarily reflected in accounting figures. It is therefore important to establish a management structure that translates management policies aimed at maximizing the value of the group's human capital, and their execution, into plans that lead to the maximization of assets.」

「Because human capital is central to both the games and mobile businesses, acquiring talent with future growth potential and developing and retaining core personnel are important challenges. We will make the company an attractive place to work by developing professional capabilities in each business area and enhancing opportunities for growth. We will also review our organizational structure and pursue operational reforms and cost reductions through productivity improvements, while improving the cost structure of our businesses so that we can offer and maintain compensation conditions that support recruitment. At the same time, we will consider designing differentiated compensation levels and personnel systems.」

「In the games business, we worked to strengthen the management and risk-management structures while focusing on winning new projects.」

「We will strengthen the management structure and promote the appointment of candidates for leadership positions.」

「We will strengthen the management structure and promote the appointment of candidates for leadership positions.」

「The number of employees increased by 9 from the end of the previous consolidated fiscal year. This was mainly due to the expansion of the games business.」

「The number of employees increased by 74 from the end of the previous consolidated fiscal year. This was mainly due to the expansion of the games business.」

「While pursuing business expansion, we recognize that securing profit commensurate with the growth in earnings, and improving business efficiency and productivity, are challenges. We also recognize the importance of continued investment in personnel, software and equipment, as well as ongoing efforts such as M&A, as investments that will contribute to improving earning power over the medium to long term.」

「Because トーテック, which comprised the human resources solutions business, changed from a consolidated subsidiary to an equity-method affiliate from the second quarter of the previous fiscal year, revenue was ¥44 million, a decrease of ¥294 million, or 87.0%, from the same period of the previous year.」

「During the second quarter of the current consolidated accounting period, the company transferred 70% of the shares of トーテック, formerly a consolidated subsidiary engaged in the human resources solutions business, and it consequently became an equity-method affiliate.」

「We determined that transferring part of the business would deliver greater growth and enhance business value than efforts within our group, and on 2 July 2018 transferred 70% of the shares in トーテック to DELTA Holdings, which operates a comprehensive human resources services business.」

「In particular, because we source technical personnel by scouting people seeking to change jobs or find employment, we will leverage our strength in helping engineers change jobs or find employment as part of our branding strategy to make our outreach more compelling. In staffing, we will seek to increase the number of dispatched personnel through attentive career coordination that looks beyond staffing to future job changes and employment, while also working to ensure that the cost of sourcing talent is appropriately reflected in pricing amid difficult market conditions for securing personnel.」

「During the nine-month period ended 31 December, amid intensifying competition for talent, we continued to promote our recruitment services and worked to win new staffing contracts, but this only maintained the scale of our staffing workforce.」

「During the cumulative second quarter, we continued promoting personnel placement and worked to secure new staffing contracts amid intensifying competition for personnel. However, the level of new contracts secured was only sufficient to recover the decline caused by staffing contract terminations in the first quarter and placements of existing dispatched personnel. Revenue consequently decreased by ¥15 million, or 2.6%, year on year to ¥576 million.」

「As a result of strengthening personnel placement and reducing selling, general and administrative expenses, the segment returned to profitability, recording segment profit, or operating profit, of ¥636 thousand (reported as ¥0 million), compared with a segment loss, or operating loss, of ¥4 million in the same period of the previous year.」

「As the number of successful placement engagements exceeded the initial forecast following strengthened efforts in placement and temp-to-perm staffing in response to companies' growing willingness to hire permanent employees, the segment turned profitable in the third quarter. For the cumulative third quarter, the deficit narrowed to a segment loss, or operating loss, of ¥6 million.」

「In response to the growing willingness of companies to hire permanent employees, we strengthened efforts in temp-to-perm staffing. Although the number of dispatched personnel remained below plan, it has increased steadily since the cumulative second quarter, and progress toward improving performance has been steady.」

「We began initiatives to secure and develop engineering personnel through new graduate recruitment.」

「We regard securing personnel, whether mid-career or new graduates, as our top challenge and will work to increase and expand recruitment and registrations. We will also enhance coordinators' skills and expand the placement business.」