Supplementary Materials
for the First Quarter of the Fiscal Year Ending March 31, 2021
August 7, 2020
WILL GROUP, INC. (Tokyo Stock Exchange, First Section / Stock code: 6089)
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved
Contents
- 1Q FY3/21 Highlights
II. FY3/21 Earnings and Dividend Forecasts III. Reference
- In this material, the term "net sales" refers to either "net sales" under Japanese GAAP or "revenue" under IFRS, and "equity ratio" refers to either "equity ratio" under Japanese GAAP or "ratio of equity attributable to owners of parent to total assets" under IFRS.
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 22 |
I. 1Q FY3/21 Highlights
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 33 |
1Q FY3/21 Highlights
COVID-19 negatively affected performance, but the call center outsourcing and care support/nursery school sectors performed well
(Billions of yen) | Vs. 1Q FY3/20 | ||||||
1Q FY3/21 | |||||||
1Q FY3/20 | |||||||
Change | % change | ||||||
Revenue | 29.37 | 28.63 | -0.73 | -2.5% | |||
Gross profit | 6.23 | 5.86 | -0.37 | -5.9% | |||
(Gross margin) | (21.2%) | (20.5%) | (-0.7pt) | ||||
Operating profit | 1.06 | 0.98 | -0.07 | -7.0% | |||
(Operating margin) | (3.6%) | (3.5%) | (-0.2pt) | ||||
Profit before tax | 1.03 | 0.97 | -0.05 | -5.6% | |||
Profit attributable to owners of | 0.62 | 0.63 | +0.00 | +0.6% | |||
parent | |||||||
EBITDA | 1.51 | ||||||
(Operating profit + Depreciation and | 1.50 | +0.00 | +0.6% | ||||
amortization | |||||||
Number of employees: 4,870 | |||||||
(+382 from the end of FY3/20) | |||||||
Copyright (C) 2020 | WILL GROUP, INC. All Rights Reserved | 44 |
1Q FY3/21 Revenue: Breakdown of Year-on-Year Changes
1,033
-0.20
-0.64 | |
Lower revenues in | Lower permanent |
Sales Outsourcing | placement |
and Factory | revenue |
Outsourcing | |
sectors |
29.3
(Billions of yen)
+0.59
-0.48
Higher revenues from sales of real estate for sale
28.6
1Q FY3/20 | Domestic WORK | Overseas WORK | Others | IFRS | 1Q FY3/21 |
Business | Business | adjustments |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 55 |
1Q FY3/21 Operating Profit: Breakdown of Year-on-Year Changes
(Billions of yen)
+0.15 | ||||||
-0.11 | -0.05 | -0.01 | -0.04 | Decrease in | ||
1.06 | Lower profit in | Lower permanent | More upfront | the provision | ||
Higher | 0.98 | |||||
Sales Outsourcing | placement revenue, | investments in | personnel | for paid leave | ||
and Factory | received | the HRTech | expenses | |||
Outsourcing | employment | field | and IT | |||
sectors | support subsidy | investment | ||||
1Q FY3/20 | Domestic WORK Overseas WORK | Others | Corporate | IFRS | 1Q FY3/21 | |
Business | Business | expenses | adjustments |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 66 |
FY3/21 Forecasts Impact of COVID-19
Segments | Sectors | COVID-19 assumptions for initial forecasts | First quarter COVID-19 impact and responses | |||||
Domestic | Sales | Sales down due to restrictions on store operations and | The state of emergency ended in late May. Telecommunications sector demand was | |||||
WORK | support | sales promotion decline due to fewer special events. | firm but market conditions remained challenging in the apparel and sales promotion | |||||
Business | Lower gross profit due to increase in paid time off and | categories. Increased sales activities in the stable telecommunications sector. | ||||||
payments to employees placed on leave. | The negative effect of furlough payments and other expenses on the gross profit was | |||||||
smaller than expected in the first quarter, partly because customers covered part of | ||||||||
these expenses. Anticipate no effect during the remainder of the fiscal year. | ||||||||
Call center | Decline in call center operations but some people | The number of people assigned to call centers declined due to social distancing but | ||||||
continue to work from home. New orders are down. | this sector performed well because of higher staffing rates. More paid leave | |||||||
Lower gross profit due to increase in paid time off. | expenses were expected to reduce gross profit, but these expenses were negligible. | |||||||
Factory | Only a small impact of COVID-19 in the food sector | The food sector generally performed well but orders decreased due to lower output | ||||||
but a downturn in orders because of lower production | of food products for restaurants as people stayed home. | |||||||
in other sectors. Lower gross profit due to increase in | In other sectors, orders were down because of declining production and the volume | |||||||
paid time off and payments to employees placed on | of new orders was low. Increased sales activities targeting current customers in food | |||||||
leave. | and other sectors that are performing well. Expect higher paid leave expenses to | |||||||
continue affecting gross profit until the end of the first half. | ||||||||
Care | For new orders and recruiting, forecast higher sales | No difficulties with recruiting people as applicants are shifting to this sector from | ||||||
support/ | and earnings because of inflows from other industries | other business categories. However, temporary staffing orders are declining due to | ||||||
nursery | more direct employment in these business sectors. More sales activities to add new | |||||||
schools | customers. | |||||||
HR support | The number of job openings is declining but there is | Permanent placement orders in May were down 40% from one year earlier mainly | ||||||
for | still very strong demand for placement services for | because clients revised recruiting plans, but job openings and orders started | ||||||
startups | senior executives and engineers | recovering in June. | ||||||
Others | Temporary school closings are affecting assistant | Schools reopened after the end of the state of emergency in late May, so COVID-19 | ||||||
language teacher staffing; for construction | had no effect on assistant language teacher staffing. For construction management | |||||||
management engineer staffing, new orders are down | engineer staffing, increasing sales activities to add new customers because demand | |||||||
but no significant impact of COVID-19 | for these engineers remains strong and the recruiting environment is improving. | |||||||
Overseas | Singapore, | Expect a decline in permanent placements because of | Permanent placement orders were down as economic downturns, lockdowns and | |||||
WORK | etc. | fewer orders from companies. For temporary staffing, | other effects of COVID-19 stagnated economic activity, but orders are expected to | |||||
Business | Australia | only a small impact in major categories like the public | start recovering in July. Temporary staffing services are performing well and | |||||
sector, IT, financial services and legal services, but | emphasis has shifted to measures for more growth of this business. | |||||||
anticipate fewer orders in other market sectors. | ||||||||
Copyright (C) 2020 WILL | GROUP, INC. All Rights Reserved | 77 |
Domestic WORK Business
Revenue and segment profit (Billions of yen) | (Billions of yen) | 1Q FY3/21 | 1Q FY3/20 | Change |
Results | Results |
19.9 | 19.7 | Revenue | Revenue | 19.78 | 19.98 | -1.0% |
15.2 | |
12.8 | 5.6% |
3.5% | |
0.8 | |
0.4 |
17.1
4.2% |
0.7 |
5.5% |
4.9%
1.0 0.9
Segment profit to net sales
Segment profit
Segment profit | 0.97 | 1.09 | -10.7% |
Topics
COVID-19 reduced revenue in the sales outsourcing and factory |
outsourcing sectors, but revenue was strong in the call center |
outsourcing and care support/nursery school sectors. |
1Q | 1Q | 1Q | 1Q | 1Q |
FY3/17 | FY3/18 | FY3/19 | FY3/20 | FY3/21 |
Controlled recruiting expenses based on the level of new orders |
(down ¥120 million from 1Q FY3/20) |
Number of workers on assignments (person)
4,246 | 4,393 | 4,491 | 4,815 | 4,880 | 5,429 | |||
3,999 | ||||||||
3,624 | 5,226 | |||||||
7,771 | 8,595 | 9,693 | 9,676 | 10,172 | 10,105 | 10,144 | 9,342 | |
8,015 | ||||||||
5,221 | 5,262 | 5,507 | 5,590 | 5,472 | 5,861 | 5,787 | 5,834 | 5,259 |
4,671 | 4,499 | 4,708 | 5,258 | 4,655 | 4,730 | 4,778 | 4,389 | 3,673 |
Care support
Factory
Call center Sales support
-203
Vs.4Q FY3/20
-1,327
Vs.4Q FY3/20
-575
Vs.4Q FY3/20
-716
Vs.4Q FY3/20
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q |
FY3/19 | FY3/19 | FY3/19 | FY3/19 | FY3/20 | FY3/20 | FY3/20 | FY3/20 | FY3/21 |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 88 |
Domestic WORK Business(Sales and Operating profit by sector )
The call center outsourcing and care support/nursery school sectors performed well
(Billions of yen)
Sales by Sector | Operating profit by sector |
19.98 | 19.78 | |
1.9 | 2.1 | Others |
0.3 | HR support for startups | |
0.3 | ||
2.8 |
3.3 | Care support/ nursery |
5.8
5.4 Factory
3.9
4.2 | Call center |
5.4 | 4.5 | Sales support |
1.09 | 0.97 | |
0.1 | ||
0.0 | ||
0.1 | 0.0 | Others |
0.0 | HR support for startups | |
0.3 | 0.2 | Care support/ nursery |
0.2 | Factory | |
0.2 | ||
0.3 | Call center | |
0.4 | ||
0.2 | Sales support |
1Q | 1Q | 1Q | 1Q |
FY3/20 | FY3/21 | FY3/20 | FY3/21 |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 99 |
Domestic WORK Business (Business sector sales)
COVID-19 negatively affected the apparel, other sales support and factory (except food) sectors
Care support Sales center Call Factory support/ nursery
0.5 | 0.7 | 0.7 | |||||||
0.6 | 1.2 | 1.2 | |||||||
0.6 | 0.6 | 0.3 | 1.3 | 0.5 | Others | ||||
0.3 | |||||||||
0.5 | 1.1 | 1.1 | 0.2 | 0.4 | Construction management engineers | ||||
0.2 | 1.1 | 3.0 | 0.2 | 1.3 | |||||
1.0 | 0.2 | 0.3 | 0.3 | 3.1 | 0.2 | 0.3 | IT engineers | ||
0.6 | 0.3 | 2.6 | 0.2 | 0.2 | 3.2 | 0.3 | HR support for startups | ||
0 | 0.2 | 2.6 | 2.8 | ||||||
2 | 3.3 | Care support/ nursery schools | |||||||
0.1 | 2.4 | 3.0 | |||||||
2.2 | 2.9 | 3.0 | 2.8 | ||||||
2.7 | 2.8 | ||||||||
2.4 | 2.5 | 2.5 | Factory except food | ||||||
3.1 | |||||||||
2.8 | 3.1 | 2.9 | |||||||
2.3 | 2.5 | 2.7 | 3.0 | 0.4 | Food factory | ||||
2.9 | |||||||||
0.3 | 0.5 | ||||||||
0.2 | 0.2 | 0.2 | 0.4 | 0.8 | 0.5 | ||||
1.1 | 0.9 | 0.6 | Finance | ||||||
0.9 | 1.0 | 1.0 | 0.9 | 2.9 | 0.8 | ||||
2.7 | 2.7 | 2.7 | 2.7 | 2.6 | 2.9 | 2.9 | 0.8 | Office | |
2.9 | Call center, etc | ||||||||
2.2 | 2.7 | ||||||||
1.8 | 1.8 | 1.8 | 1.6 | 2.1 | 2.0 | ||||
1.3 | Other sales support | ||||||||
0.4 | 0.5 | 0.5 | 0.6 | 0.7 | 0.7 | 0.7 | |||
0.7 | 0.2 | Apparel | |||||||
3.2 | 3.2 | 3.1 | 3.1 | 3.2 | 3.0 | 2.9 | 2.7 | 2.9 | Telecommunications |
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q |
FY3/19 | FY3/19 | FY3/19 | FY3/19 | FY3/20 | FY3/20 | FY3/20 | FY3/20 | FY3/21 |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 100 |
Overseas WORK Business
Revenue and segment profit (Billions of yen)
1Q FY3/21 | 1Q FY3/20 | Change |
Results | Results |
9.0 8.4 Revenue
Revenue | 8.45 | 9.09 | -7.0% |
4.6% | ||||||
5.7 | 3.1% | Segment | ||||
3.0% | 2.7% | profit to net | ||||
2.31.0% | 0.2 | 0.2 | 0.2 | sales | ||
Segment | ||||||
0.5 | profit | |||||
0.0 | 0.0 |
Segment profit | 0.23 | 0.28 | -18.2% |
1Q | 1Q | 1Q | 1Q | 1Q |
FY3/17 | FY3/18 | FY3/19 | FY3/20 | FY3/21 |
Major components of changes in segment profit
(Billions of yen)
1Q FY3/20 | |||||
0.28 | |||||
Foreign exchange impact | -0.03 | ||||
Reduction in SG&A | +0.08 | ||||
expenses | |||||
Topics
- Permanent placement was lower but temporary staffing remained solid in Australia and Singapore
-
Received an employment support subsidy (approx.
¥250 million) as a countermeasure against COVID-19 in Singapore
Increase in temporary | +0.14 | Initially | 1Q FY3/21 | 1Q FY3/20 | Change for ¥1 difference/y | ||||||
staffing gross profit | Forex sensitivity | ||||||||||
assumed | Results | Results | |||||||||
Decrease in sales from | -0.49 | Revenue | Profit | ||||||||
permanent placement | |||||||||||
AUD | ¥70 | ¥70 | ¥76 | ¥380 mln | ¥10 mln | ||||||
Subsidy income | +0.25 | ||||||||||
SGD | ¥75 | ¥76 | ¥80 | ¥90 mln | ¥0 mln | ||||||
1Q FY3/21 | |||||||||||
0.23 |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 111 |
Business Portfolio Changes in Japan and Overseas
Domestic WORK Business Portfolio (Gross profit basis)
■FY3/20
Perm:40%
Final year of New Medium-term Management Plan
■1Q FY3/21
Perm:39%
→:Temp:40% Perm:60%
Difficulties in the permanent placement sector
Temp:60%Temp:61%
Overseas WORK Business Portfolio (Gross profit basis)
Final year of New Medium-term | →:Temp:60% Perm:40% |
Management Plan |
■FY3/20 | ■1Q FY3/21 | Permanent |
placements down | ||
Perm:55% | about 30% from 1Q | |
FY3/20 but the stable | ||
Perm:41% | temporary staffing | |
sector continues to | ||
perform well despite | ||
Temp:45% | the COVID-19 | |
Temp:59% pandemic | ||
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 122 |
Others
Revenue and segment profit (Billions of yen)
0.8 | |||||||||
0.5 | 0.2 | Revenue | |||||||
0.0 | 0.1 | ||||||||
Segment | |||||||||
-0.0 | -0.0 | -0.0 | |||||||
-0.0 | profit | ||||||||
-0.0 | |||||||||
1Q | 1Q | 1Q | 1Q | 1Q |
FY3/17 FY3/18 FY3/19 FY3/20 FY3/21
Other business activities
Organic | M&A | ||||
HRTech | Investment funds | ||||
(HRTech) | |||||
(Daywak) | |||||
(Visamane) | |||||
(Hourmane) |
1Q FY3/21 | 1Q FY3/20 | Change | |
Results | Results | ||
Revenue | 0.88 | 0.29 | +205.3% |
Segment profit | (0.09) | (0.08) | - |
Topics
- Higher revenue due to the sale of real estate for sale
- Upfront investments (¥130 million) in the HRTech field
- Number of stores using the Visamane
foreign worker management system | 2,920 | 3,016 | 2,953 2,956 |
2,720 |
2,200 2,432
1,800 | ||||||||||||||||||||||||||
945 | 1,058 1,064 1,150 1,300 | |||||||||||||||||||||||||
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 133 |
Financial Indicators
All financial indicators are improving on an adjusted equity basis*
End of June 2019 | End of September 2019 | End of December 2019 | End of March 2020 | End of June 2020 | |
Adjusted ratio of equity | 14.6% | 16.4% | 18.1% | 19.3% | 20.9% |
attributable to owners of parent | |||||
to total assets | |||||
1.1 times | 1.0 times | 0.8 times | 0.4 times | 0.3 times | |
Adjusted net debt to equity ratio | |||||
(Interest-bearing debt - Cash and deposits) / Adjusted equity attributable to owners of parent
Ratio of goodwill to adjusted equity attributable to owners of parent
Goodwill outstanding /
Adjusted equity attributable to owners of parent
0.9 times | 0.8 times | 0.7 times | 0.7 times | 0.6 times |
EBITDA | - | - | - | 1.6 times | 2.0 times |
Adjusted interest-bearing debt |
to EBITDA ratio
Interest-bearing debt (excluding short- term borrowings) / Forecast EBITDA
*Adjusted equity represents total equity, net of written put option.
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 144 |
Consolidated Balance Sheet
(Billions of yen) | March 31, | June 30, | Change |
2020 | 2020 | ||
Current assets | 22.0 | 22.1 | +0.0 |
Non-current assets | 22.5 | 22.8 | +0.2 |
Total assets | 44.6 | 44.9 | +0.3 |
Current liabilities | 21.5 | 22.7 | +1.2 |
Non-current liabilities | 15.9 | 14.4 | -1.4 |
Total liabilities | 37.4 | 37.2 | -0.2 |
Total equity | 7.1 | 7.7 | +0.6 |
Total liabilities and | 44.6 | 44.9 | +0.3 |
equity | |||
Ratio of equity attributable to | 11.7% | 12.9% | +1.2pt |
owners of parent to total | |||
assets |
(Billions of yen)
Major components of changes
● Total assets | |
・ Cash and cash equivalents | +0.8 |
・ Trade and other receivables | -0.8 |
・ Right-of-use assets | -0.1 |
・ Goodwill | +0.2 |
・ Other intangible assets | +0.3 |
・ Other non-current assets | +0.1 |
● Total liabilities | |
・ Other financial liabilities (current) | +2.0 |
・ Income taxes payable | -0.6 |
・ Borrowings (non-current) | -0.5 |
・ Other financial liabilities (non-current) | -0.9 |
●Total equity | |
・Capital surplus | -0.2 |
・Exchange differences on translation | |
of foreign operations | +0.5 |
・Retained earnings | +0.1 |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 155 |
Consolidated Statement of Cash Flows
(Billions of yen) | 1Q | 1Q |
FY3/20 | FY3/21 | |
Profit before tax | 1.0 | 0.9 |
Depreciation and amortization | 0.4 | 0.5 |
Income taxes paid | (0.8) | (0.8) |
Other | 0.1 | 0.6 |
Net cash provided by (used in) operating activities | 0.8 | 1.2 |
Purchase and sales of property, plant and | (0.2) | (0.1) |
equipment, etc. | ||
Purchase and sales of shares of subsidiaries | (1.5) | 0.0 |
Other | 0.0 | 0.5 |
Net cash provided by (used in) investing activities | (1.7) | 0.3 |
Net increase (decrease) in interest-bearing debt | 1.7 | (0.7) |
Purchase and sales of shares of subsidiary not | (0.8) | 0.0 |
resulting in changes in the scope of consolidation | ||
Dividends paid | (0.3) | (0.4) |
Other | 0.0 | 0.4 |
(Major
Components)
Decrease in trade receivables
Decrease in M&A investments
Free Cash Flows | (Billions of yen) |
1.6
-0.9
1Q | 1Q |
FY3/20 | FY3/21 |
Net cash provided by (used in) financing activities | 0.4 | (0.8) | Decrease in | ||
acquisition of | |||||
Effect of exchange rate changes | 0.0 | 0.1 | |||
additional | |||||
Net increase (decrease) in cash and cash | (0.4) | 0.8 | shares of | ||
equivalents | consolidated | ||||
Cash and cash equivalents at end of period | 6.3 | 6.8 | subsidiaries | ||
Free cash flows | (0.9) | 1.6 | |||
(Operating activities + Investing activities) |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 166 |
II. FY3/21 Earnings and Dividend Forecasts
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 177 |
FY3/21 Forecast
The forecast uses conservative assumptions because of the uncertain outlook, including the risk of a second wave of COVID-19 during the remainder of the fiscal year
(Billions of yen) | FY3/20 | FY3/21 | FY3/21 | Difference |
(Initial forecast) | (Revised forecast) | |||
Revenue | 121.91 | 120.00 | 120.00 | 0.0 |
Domestic WORK Business | 84.43 | 83.62 | 82.69 | -0.93 |
Overseas WORK Business | 36.07 | 34.87 | 35.97 | +1.09 |
Others | 1.54 | 1.50 | 1.82 | +0.32 |
IFRS adjustments | (0.14) | - | (0.48) | -0.48 |
Operating profit(Operating margin) | 4.14 | 2.00 | 2.50 | +0.50 |
(3.4%) | (1.7%) | (2.1%) | ||
Domestic WORK Business | 5.06 | 3.50 | 3.83 | +0.33 |
Overseas WORK Business* | 0.97 | 0.79 | 0.88 | +0.09 |
Others | (0.35) | (0.41) | (0.42) | -0.00 |
Adjustments | (1.86) | (2.46) | (2.38) | +0.07 |
IFRS adjustments* | 0.33 | 0.58 | 0.59 | +0.00 |
Profit attributable to owners of parent | 2.38 | 1.00 | 1.25 | +0.25 |
EBITDA | 6.13 | 4.00 | 4.50 | +0.50 |
- In the initial forecast, the overseas employment support subsidy income as a countermeasure against COVID-19 used an IFRS adjustment. But the subsidy has been changed to the Overseas WORK Business and the initial forecast has been revised accordingly.
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 188 |
Revised FY3/21 Forecast (Segments and Sectors)
(Billions of yen) | |||||||||
Segments | Sectors | FY3/20 | FY3/21 | FY3/21 | Change | ||||
(Initial forecast) | (Revised forecast) | (%) | |||||||
Upper: Net sales | Upper: Net sales | Upper: Net sales | Upper: Net sales | ||||||
Lower: Operating profit | Lower: Operating profit | Lower: Operating profit | Lower: Operating profit | ||||||
Domestic | Sales support | 23.14 | 19.70 | 19.70 | 0.0% | ||||
WORK Business | |||||||||
1.79 | 1.23 | 1.28 | +3.5% | ||||||
Call center | 16.45 | 16.40 | 16.69 | +1.8% | |||||
0.99 | 0.89 | 1.10 | +22.9% | ||||||
Factory | 23.74 | 23.48 | 22.33 | -4.9% | |||||
1.34 | 0.96 | 0.75 | -21.2% | ||||||
Care support/ nursery | 12.05 | 13.25 | 13.66 | +3.1% | |||||
0.36 | 0.42 | 0.58 | +37.4% | ||||||
HR support for startups | 1.26 | - | 0.30 (Only 1Q | - | |||||
result) | |||||||||
0.30 | - | 0.04 (Only 1Q | - | ||||||
result) | |||||||||
Others | 7.72 | 10.00 | 10.00 | 0.0% | |||||
0.25 | (0.01) | 0.07 | - | ||||||
Overseas WORK | Singapore, etc. | 36.07 | 34.87 | 35.97 | +3.2% | ||||
Business | Australia | ||||||||
0.97 | 0.79 | 0.88 | +11.4% | ||||||
Copyright (C) 2020 | WILL GROUP, INC. All Rights Reserved | 199 |
Dividend Forecast
Due to the higher earnings forecast, the dividend forecast has been raised by ¥3 per share for consistency with the total return ratio target of 30%
FY3/20 | FY3/21 | FY3/21 | |
(Initial forecast) | (Revised forecast) | ||
Year-end dividend | ¥23 per share | ¥14 per share | ¥17 per share |
Total return ratio* | 25.1% | 31.1% | 30.2% |
Total return ratio: The sum of dividends and the cost of share repurchases divided by profit attributable to owners of parent
■ Dividend per share and total return ratio
Dividend per share
Total return ratio
30.2% | |||||||||||||
27.6% | 27.4% | ||||||||||||
25.8% | 25.1% | ||||||||||||
25.7% |
¥18 | ¥18 | ¥23 | ¥17 | ||||||
¥14 | |||||||||
¥10 | |||||||||
FY3/16 | FY3/17 | FY3/18 | FY3/19 | FY3/20 | FY3/21 | ||||
(Forecast) | |||||||||
J-GAAP | IFRS | ||||||||
The dividend per share has been adjusted to reflect a 2-for-1 stock split on December 1, 2016. | |||||||||
Copyright (C) 2020 | WILL GROUP, INC. All Rights Reserved | 200 |
III. Reference
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 211 |
Responses to COVID-19
Current Actions
Employees
- Encouraging people to work at home, limiting face-to-face meetings, frequent use of online and conference call meetings
Business
- Retain employees to be prepared for the return to normal business after the end of this crisis. Shift workers to operations less affected by the spread of COVID-19
- Partial reviewing new investment plans in order to remain profitable and maintain financial soundness
- Responding with speed and flexibility to this crisis while closely monitoring changes in the current "with-corona" business conditions and looking ahead to the post-corona world
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 222 |
Segment Results
Domestic WORK Business
- Revenue
1Q | 2Q | 3Q | 4Q | |
FY3/19 | 17,149 | 18,734 | 20,242 | 19,702 |
FY3/20 | 19,984 | 21,752 | 21,628 | 21,098 |
FY3/21 | 19,782 | |||
Overseas WORK Business
■ Revenue
1Q | 2Q | 3Q | 4Q | |
FY3/19 | 5,798 | 6,286 | 6,959 | 7,197 |
FY3/20 | 9,098 | 8,944 | 9,308 | 8,723 |
FY3/21 | 8,457 |
Others
■ Revenue
1Q | 2Q | 3Q | 4Q | |
FY3/19 | 578 | 264 | 286 | 422 |
FY3/20 | 297 | 375 | 434 | 483 |
FY3/21 | 885 |
(Millions of yen)
■ Segment profit
1Q | 2Q | 3Q | 4Q | ||
FY3/19 | 715 | 913 | 1,226 | 1,210 | |
FY3/20 | 1,091 | 1,360 | 1,341 | 1,279 | |
FY3/21 | 974 | ||||
■ Segment profit | |||||
1Q | 2Q | 3Q | 4Q | ||
FY3/19 | 268 | 208 | 101 | -149 | |
FY3/20 | 250 | -7 | 496 | 232 | |
FY3/21 | 232 | ||||
■ Segment profit | |||||
1Q | 2Q | 3Q | 4Q | ||
FY3/19 | -37 | -55 | -13 | 42 | |
FY3/20 | -84 | -134 | -72 | -80 | |
FY3/21 | -98 |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 233 |
Geographic (Overseas) Segment Results
Geographic (Overseas) Segments
- Revenue (Asia)
1Q | 2Q | 3Q | 4Q | |
FY3/19 | 1,338 | 1,412 | 1,442 | 1,700 |
FY3/20 | 1,923 | 1,967 | 1,999 | 2,070 |
FY3/21 | 1,276 | |||
(Millions of yen)
- Revenue (Australia)
1Q | 2Q | 3Q | 4Q | |
FY3/19 | 4,468 | 4,881 | 5,523 | 5,508 |
FY3/20 | 7,184 | 7,299 | 7,014 | 6,672 |
FY3/21 | 7,181 |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 244 |
Overseas (Australia, Singapore) Macro Environment
Market conditions for WILL | Economic indicators | |||||||||||||||||||||||||||||
GROUP | ||||||||||||||||||||||||||||||
Permanent placement orders | ■ Real GDP growth rate (YoY change) | ■ Unemployment rate | ||||||||||||||||||||||||||||
are declining because of | *Source: Australian Bureau of Statistics | *Source: Australian Bureau of Statistics | ||||||||||||||||||||||||||||
slowing economic growth and | 1.5 | |||||||||||||||||||||||||||||
COVID-19 but a recovery is | 8 | |||||||||||||||||||||||||||||
expected to start in July. | 1 | 7 | ||||||||||||||||||||||||||||
Temporary staffing orders are | 0.5 | |||||||||||||||||||||||||||||
firm due to steady demand in | 6 | |||||||||||||||||||||||||||||
the public sector, IT, financial | 0 | 5 | ||||||||||||||||||||||||||||
services and legal services | ||||||||||||||||||||||||||||||
sectors. | -0.5 | 4 | ||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | ||||||||||||||||||||||
2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2020 | ||||||||||||||||||||||
Permanent placement services | ■ Real GDP growth rate (YoY change) | ■ Unemployment rate | ||||||||||||||||||||||||||||
are down from FY3/20 because | *Source: Singapore Department of Statistics | *Source: Singapore Department of Statistics | ||||||||||||||||||||||||||||
of slowing economic growth | ||||||||||||||||||||||||||||||
and COVID-19 is making this | 6 | 3 | ||||||||||||||||||||||||||||
decline even larger. Operations | 4 | |||||||||||||||||||||||||||||
are shifting to temporary | 2 | 2.5 | ||||||||||||||||||||||||||||
staffing services because there | 0 | |||||||||||||||||||||||||||||
is still certain demand for | ||||||||||||||||||||||||||||||
-2 | 2 | |||||||||||||||||||||||||||||
hiring people even during this | ||||||||||||||||||||||||||||||
economic downturn. | -4 | |||||||||||||||||||||||||||||
-6 | 1.5 | |||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | ||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | ||||||||||||||||||||||
2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2020 | 2018 | 2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||||
Copyright (C) 2020 | WILL GROUP, INC. All Rights Reserved | 255 |
Performance of Major Overseas Subsidiaries
(Billions of yen)
Primary location | Business activities | Consolidated | Investment | |
since | *1 | |||
(WILL GROUP | ||||
ownership) | ||||
Singapore | Providing permanent placement and | |||
consulting services focused on HR | Jan. 2019 | |||
primarily in Singapore, through wholly- | 1.48 | |||
owned subsidiaries in Hong Kong, Japan, | (51%) | |||
U.S., China, Australia and UK. | ||||
Brisbane | Providing temporary staffing and | |||
permanent placement services to | Apr. 2019 | |||
government agencies and major | 1.46 | |||
corporations in Australia | (60%) | |||
Melbourne | Providing temporary staffing and | |||
permanent placement services for | ||||
office work and call center operations | Jan. 2018 | 0.83 | ||
to agencies and companies in various | ||||
(80%) | ||||
sectors such as the government, | ||||
telecommunications, resources and | ||||
appliance manufacturing in Australia. | ||||
*2 | 1Q | 1Q | YoY |
FY3/20 | FY3/21 | change |
Sales | 0.33 | 0.24 | -26.2% |
Profit | 0.10 | 0.04 | -58.6% |
*3 | |||
Sales | 1.55 | 1.51 | -2.6% |
Profit | 0.09 | 0.14 | +58.4% |
Sales | 2.88 | 3.07 | +6.7% |
Profit | 0.10 | 0.07 | -29.7% |
*1 The investment in each company includes goodwill and identifiable intangible assets.
*2 Sales and profit are for the April-June consolidated fiscal year regardless of the timing of consolidated disclosures.
Converted to yen at the rates of ¥75/SGD and ¥70/AUD in order to eliminate the effects of foreign exchange rate movements.
*3 Profit is profit before tax after the amortization of identifiable intangible assets, internal transactions and one-time expenses.
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 266 |
Breakdown of Revenue by Region/Contract Type
Human resources services in Japan
Overseas human resources services
(Billions of yen)
25.0
20.0
15.0
10.0
20.1 | ||||||
20.2 | (-1%) | Other | ||||
1.5 | 1.3 | |||||
Permanent placement | ||||||
0.6 | 0.7 | |||||
3.6 | 3.3 | Consignment service | ||||
4.7 | 4.2 | Hybrid staffing service | ||||
9.0 | 8.4 | |
(-7%) | ||
1.2 | Permanent | |
0.7 | placement |
5.0
0.0
9.910.7
Temporary staffing
7.9 | 7.8 | Temporary |
staffing |
1Q FY3/20 | 1Q FY3/21 |
1Q FY3/20 | 1Q FY3/21 |
Copyright (C) 2020 WILL GROUP, INC. All Rights Reserved | 277 |
Forecasts of future performance in this report are based on assumptions judged to be valid and information available to the Will Group's management at the time the materials were prepared, but are not promises by the Will Group regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons.
This report is an English translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between the original Japanese version and this translated version, the Japanese version shall prevail.
- IR Contact:
WILL GROUP, INC. Financial Department
Tel: +81-3-6859-8880
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Will Group Inc. published this content on 26 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 August 2020 03:01:15 UTC