Our medium- to long-term vision
hange the profit-generating structure for sustainable growth and achieve dramatic future growth.

In order to achieve sustainable growth of the Group, changing the Group’s profit-generating structure is essential. For the period of the Medium-term Management Plan, the first priority is to regain the lost growth potential of the Domestic Working Business and make it grow again, and so we will make upfront investments for the renewed growth. We aim to regain our growth potential, increase our operating margin for the fiscal year ending March 31, 2027 and beyond, and create a highly profitable structure.

Fiscal year ended March 31, 2024 Overview
Revenue remained flat in both Domestic Working Business and Overseas Working Business, but performed steadily in the construction management engineer domain which is the group’s key focus area.

During the fiscal year under review, the global economy continued to recover moderately due to economic normalization and the easing of supply restrictions following the COVID-19 pandemic in various countries, achieved through the integration of COVID-19 management strategies in everyday life, as well as slowing inflation. However, the outlook remains uncertain due to volatility in monetary policies in several countries, the prolonged situation in Russia and Ukraine, growing tension in the Middle East, and the slowdown in the Chinese economy.

Japan’s economy, meanwhile, continues its gradual recovery with an uptick in consumer spending and inbound demand, an improved employment and income environment, and a rise in the Nikkei stock average, amid further normalization of economic activities driven by the reclassification of COVID-19 to a Class 5 infectious disease and the reduced risk of infection. However, the risk of a downturn in overseas economies, rising prices for energy and raw materials, and volatility in foreign exchange rates require careful attention.
Under these circumstances, the Group worked to expand the construction management engineer domain, temporary staffing of permanent employees, and foreign talent management service, and other initiatives for the renewed growth of the Domestic Working Business, which is the basic policy in the Medium-Term Management Plan “WILL-being 2026,” for which the final fiscal year is the fiscal year ending March 31, 2026.

In Japan, although new project development was stagnant in the sales outsourcing domain and the call center outsourcing domain, results were strong in the construction management engineer domain, which is the Group’s key focus area. In addition, first television commercials were run mainly in the West Japan area from July 2023 as promotion of “WILLOF” brand for the purpose of reinforcing hiring capabilities in Japan. The number of branded searches for WILLOF has been on a gradual rising trend since the implementation of the promotion, and the number of hires through owned media is expected to increase. Therefore, the Group is continuing to implement the promotion.

In the overseas segment, temporary staffing sales declined as a result of a fall in the number of workers on assignment following hiring constraints for some customers in Australia. Permanent placement sales also decreased due to the post-COVID-19 surge in permanent placement demand in the previous fiscal year running its course.
As a result of the above, revenue during the fiscal year under review was ¥138,227 million (down 4.0% year on year), operating profit was ¥4,525 million (down 14.9%), profit before tax was ¥4,417 million (down 14.2%), profit was ¥2,878 million (down 16.8%), profit attributable to owners of parent was ¥2,778 million (down 14.1%), and EBITDA (operating profit + depreciation and amortization + impairment losses) was ¥6,810 million (down 8.7%).

Initiatives for the fiscal year ending March 31, 2025
To achieve renewed growth in the Domestic Working Business, the Group will work to expand the construction management engineer domain, temporary staffing of permanent employees, and foreign talent management service.

Looking ahead, while moderate growth is expected in both domestic and overseas economies, the outlook remains uncertain due to the risks of prolonged global inflation and monetary tightening policies, as well as geopolitical risks concerning the situations in Ukraine and the Middle East, among others. In Japan, the hiring environment is becoming increasingly difficult in contrast to the robust demand for human resources backed by strong corporate performance.

Furthermore, in Australia and Singapore, the main areas where the Group develops businesses, there are concerns about this trend of reduced hiring by major clients becoming prolonged due to a deterioration in business confidence mainly as a result of inflation and rising interest rates following large-scale economic stimulus measures that were implemented during the COVID-19 pandemic, as well as due to overstaffing caused by companies that rapidly increased hiring following the COVID-19 pandemic.

Under these circumstances, cExpansion in the construction management engineer domain will be achieved by further strengthening recruitment of non-experienced workers, as well as by implementing initiatives to maintain and improve the retention rate and to increase the unit price of contracts. With regard to the expansion of permanent employee staffing, in light of the challenging hiring environment, we will work to maintain and expand the number of workers on assignment by implementing measures to enhance our recruiting capabilities, including continued promotion of the “WILLOF” brand. With respect to the foreign talent management service, we will continue to expand orders from clients and local hiring in the factory outsourcing and nursing care domains. In the fiscal year ending March 31, 2025, we plan to make upfront investments in hiring construction management engineers and sales personnel in order to realize the Medium-Term Plan scenario.

In the Overseas Working Business, despite the risk of a downturn in the economies of various countries and concerns about the weak market conditions for both temporary staffing and permanent placement becoming prolonged, we will work to secure talented consultants, etc., carry out strategic cost management within a scope that will not harm the value of the business, and prepare for expansion following the recovery in demand for both permanent placement and temporary staffing.

Moreover, operating profit for the current fiscal year includes temporary gains on sale of shares of subsidiaries of \2,063 million and also reflects an impact from the absence of the subsidiaries’ revenues of \3,420 million (actual results for the current fiscal year) and operating profits of \543 million (actual results for the current fiscal year).

Accordingly, for the fiscal year ending March 31, 2025, we forecast revenue of ¥140,400 million (up 1.6% year on year), operating profit of ¥2,290 million (down 49.4% year on year), profit before tax of ¥2,190 million (down 50.4% year on year), profit of ¥1,640 million (down 43.0% year on year), profit attributable to owners of parent of ¥1,640 million (down 41.0% year on year), and EBITDA of ¥4,232 million (down 37.9% year on year). Furthermore, excluding the abovementioned temporary gains, etc. included in the current fiscal year, revenue increased 4.1% year on year and operating profit increased 19.4%.
(Reference) The exchange rate assumptions underlying these forecasts are ¥104/SGD (¥94/SGD in the previous fiscal year) and ¥91/AUD (¥86/AUD in the previous fiscal year).

The dividend forecast for the fiscal year ending March 31, 2025 is ¥44 per share (ordinary dividend of ¥44), with a total payout ratio of 61.7%.

To our shareholders and investors
Continued management based on a medium- to long-term perspective

Going forward, we will strive to enhance corporate value through sustainable growth and meet the expectations of our shareholders. We ask for your continued support in the future.

Medium-Term
Management Plan