Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

May 9, 2025

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for the Year Ended March 31, 2025 (IFRS, Unaudited)

Tokyo, May 9, 2025 ― Recruit Holdings Co., Ltd. announced today its consolidated financial results for the year ended March 31, 2025 (April 1,

2024 to March 31, 2025).

Consolidated Operating Results

(In billions of yen, unless otherwise stated)

Revenue

FY2023

3,416.4

598.3

FY2024

% change

3,557.4

4.1%

678.8

13.5%

Adjusted EBITDA

490.5

ꢀꢀꢀꢀ13.8%

527.1

21.9%

Operating income

402.5

% of revenue

11.8%

-

23.7%

Profit before tax

426.2

14.4%

Return on assets (%)

ꢀꢀ 17.8%

408.5

-

15.5%

-

Profit attributable to owners of the parent

% of total equity attributable to owners of the parent

Total comprehensive income

Basic EPS (yen)

353.6

19.5%

ꢀꢀꢀꢀ 22.6%

383.1

555.3

(31.0)%

20.1%

-

271.44

ꢀꢀꢀꢀ225.99

222.90

268.32

Diluted EPS (yen)

Reference: Share of profit (loss) of associates and joint ventures was (8.8) billion yen in FY2024 and (1.3) billion yen in FY2023.

Adjusted EBITDA: Operating income + depreciation and amortization (excluding depreciation of right-of-use assets)

+ share-based payment expenses ± other operating income/expenses

Consolidated Financial Position

(In billions of yen, unless otherwise stated)

Total assets

As of March 31, 2024

3,144.6

As of March 31, 2025

2,772.2

Total equity

2,008.9

1,627.3

Equity attributable to owners of the parent

Ratio of equity attributable to owners of the parent (%)

Equity attributable to owners of the parent per share (yen)

2,000.9

1,617.5

63.6%

58.3%

1,295.40

1,102.86

Consolidated Cash Flows

(In billions of yen, unless otherwise stated)

Net cash flows from operating activities

Net cash flows from investing activities

Net cash flows from financing activities

Cash and cash equivalents at the end of the year

FY2023

535.3

FY2024

610.3

(68.7)

ꢀ

(61.0)

(880.4)

808.6

(334.6)

1,136.8

Dividends

FY2025

Guidance

FY2023

FY2024

(In yen, unless otherwise stated)

At the end of Q1

-

11.50

-

At the end of Q2

12.00

-

12.50

-

At the end of Q3

At the end of Q4

11.50

23.00

12.00

24.00

12.50

25.00

Total

Total amount of dividend payment (in billions of yen)

Payout ratio-consolidated (%)

37.1

10.2

2.0

37.0

8.8

-

Ratio of dividends to total equity attributable to owners of the parent (%)

2.0

1

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Consolidated Financial Guidance for FY2025

FY2025 Full-year

Guidance

Year over year

% change

(In billions of yen, unless otherwise stated)

3,520.0

2,076.0

697.0

(1.1)%

(0.5)%

2.7%

Revenue

Gross Profit

Adjusted EBITDA

540.0

10.1%

4.8%

Operating income

428.0

Profit attributable to owners of the parent

Basic EPS (yen)

295.00

8.7%

Please refer to page 11, Consolidated Financial Guidance for FY2025 for more details.

Significant changes in the scope of consolidation during the period

There were no significant changes in the scope of consolidation during the period.

Changes in Accounting Policies and Changes in Accounting Estimates

There has been no change in: (1) accounting policies required by IFRS, (2) accounting policies other than the foregoing item (1), and (3)

accounting estimates.

Number of Issued Shares - Common Stock

As of March 31, 2024

1,649,841,949

105,201,121

As of March 31, 2025

1,563,912,149

97,196,562

Number of issued shares including treasury stock

Number of treasury stock¹

FY2023

1,564,947,878

FY2024

1,504,932,604

Average number of shares during the period

1

The number of treasury stock 97,196,562 as of March 31, 2025 includes treasury stock held by the Company (36,408,381 shares) and the

Company’s stock held in the trust account of the Board Incentive Plan (“BIP”) trust and the Employee Stock Ownership Plan (“ESOP”) trust

(60,788,181 shares).

Definition of the Abbreviation

Abbreviation

Definition

Recruit Holdings, the Holding Company

Recruit Holdings Co., Ltd. on a standalone basis

Recruit Holdings Co., Ltd. and its consolidated subsidiaries

Strategic Business Unit

the Company, Recruit Group, We, Our

SBU

Q1

Three-month period from April 1 to June 30

Three-month period from July 1 to September 30

Three-month period from October 1 to December 31

Three-month period from January 1 to March 31

Fiscal year from April 1, 2023 to March 31, 2024

Fiscal year from April 1, 2024 to March 31, 2025

Fiscal year from April 1, 2025 to March 31, 2026

Q2

Q3

Q4

FY2023

FY2024

FY2025

Supplementary Information

●

All comparisons in this report are year over year unless otherwise stated.

Average exchange rate during the period

FY2023

FY2024

(In yen)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

152.55

US dollar

Euro

137.49

149.58

91.87

144.63

157.32

94.63

147.86

159.06

96.25

148.63

161.33

97.67

155.85

167.85

102.71

149.71

164.28

100.18

152.37

162.58

99.49

160.55

95.72

Australian dollar

2

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Reference: Outline of Non-consolidated Financial Results

Non-consolidated Operating Results

(In billions of yen, unless otherwise stated)

Revenue

FY2023

153.9

144.6

139.4

126.1

80.59

79.49

FY2024

615.7

% change

300.0%

318.3%

332.8%

379.4%

-

Operating profit

605.1

Recurring profit

603.6

Net income

604.6

Earnings per share – Basic (yen)

Earnings per share – Diluted (yen)

401.76

397.13

-

Non-consolidated Financial Position

(In billions of yen, unless otherwise stated)

Total assets

As of March 31, 2024

As of March 31, 2025

1,654.3

1,768.6

879.7

Net assets

693.3

Equity ratio (%)

49.6%

567.58

41.7%

Net assets per share (yen)

470.02

Reference: Equity was 876.7 billion yen as of March 31, 2024 and 689.3 billion yen as of March 31, 2025.

Earnings releases are not subject to review by a certified public accountant nor an independent auditor.

Forward-Looking Statements

This document contains forward-looking statements, which reflect the Company's assumptions and outlook for the future and estimates based

on information available to the Company and the Company's plans and expectations as of the date of this document or other date indicated.

There can be no assurance that the relevant forecasts and other forward-looking statements will be achieved. Please note that significant

differences between the forecasts and other forward-looking statements and actual results may arise due to various factors, many of which are

outside the Company’s control, including changes in economic conditions, changes in individual users’ preferences and business clients'

needs, competition, changes in the legal and regulatory environment including changes in laws and regulations or guidance, interpretation,

enforcement or practice relating to laws and regulations, fluctuations in foreign exchange rates, climate change or other changes in the natural

environment, the occurrence of large-scale natural disasters, and other factors. Accordingly, readers are cautioned against placing undue

reliance on any such forward-looking statements. The Company has no obligation to update or revise any information contained in this

document based on any subsequent developments except as required by applicable law or stock exchange rules and regulations.

Note Regarding Reference Translation

This document has been translated from the Japanese language original for reference purposes only and may not be used or disclosed for any

other purpose without the Company’s prior written consent. In the event of any conflict or discrepancy between this translated document and

the Japanese language original, the Japanese language original shall prevail in all respects. The Company makes no representations

regarding the accuracy or completeness of this translation and assumes no responsibility for any losses or damages arising from the use of

this translation.

Third-Party Information

This document includes information derived from or based on third-party sources, including information about the markets in which we operate.

These statements are based on statistics and other information from third-party sources as cited herein, and the Company has not

independently verified and cannot assure the accuracy or completeness of any information derived from or based on third-party sources.

U.S. Disclaimer – Unsponsored American Depositary Receipt (“ADR“)

The Company does not support or encourage, and has not consented to, the creation of any unsponsored ADR facilities in respect of its

securities and in any event disclaims any liability in connection with an unsponsored ADR. The Company does not represent to any depositary

institution, bank or anyone nor should any such entity rely on a belief that the Web site of the Company includes all published information in

English, currently, and on an ongoing basis, required to claim an exemption under U.S. Exchange Act Rule 12g3-2(b).

A full set of materials regarding FY2024 results announcement is posted on https://recruit-holdings.com/en/ir/financials/

Contact

Investor Relations

+81-3-3511-6383

[email protected]

3

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Table of Contents

1. Management’s Discussion and Analysis

5

6

8

9

Consolidated Results of Operations

Results of Operations by Segment

Management Actions for the Six Months Ended March 31, 2025

Capital Resources and Liquidity

2. Consolidated Financial Guidance for FY2025

11

12

13

16

18

25

26

27

28

29

33

34

3. Basic Policy on Profit Distribution and Dividends

4. Overview of the Company

Business Overview by Segment

Operational Chart

5. Management Philosophy and Strategies

Management Philosophy

Target Management Key Performance Indicators (KPIs)

Business Strategies

Capital Allocation Policy

6. Basic Rationale for Selection of Accounting Standards

7. Consolidated Financial Statements and Primary Notes

Consolidated Statement of Financial Position

Consolidated Statement of Profit or Loss

Consolidated Statement of Comprehensive Income

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Going Concern Assumption

Notes to Consolidated Financial Statements

4

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

1. Management’s Discussion and Analysis

Consolidated Results of Operations

The following table summarizes the consolidated financial results for the three months and fiscal year ended March 31, 2024 and 2025.

Three Months

Fiscal Year

Ended March 31,

% change

(In billions of yen, unless otherwise stated)

Consolidated operating results

ꢀRevenue

ꢀOperating income

ꢀProfit before tax

ꢀProfit for the period

ꢀProfit attributable to owners of the parent

ꢀBasic EPS (yen)

2024

2025

2024

2025

861.7

81.1

84.9

66.8

66.9

45.31

2.1%

45.7%

92.1%

96.3%

95.7%

105.2%

3,557.4

490.5

527.1

408.1

408.5

271.44

4.1%

21.9%

23.7%

15.1%

15.5%

20.1%

843.7

55.7

44.2

34.0

34.2

22.08

3,416.4

ꢀ402.5

426.2

354.5

353.6

225.99

Management Key Performance Indicators

132.0

17.9%

-

678.8

13.5%

-

ꢀAdjusted EBITDA

ꢀAdjusted EBITDA margin

111.9

598.3

15.3%

19.1%

13.3%

17.5%

Consolidated revenue for Q4 FY2024 increased 2.1% as revenue in HR Technology and Matching & Solutions increased. Excluding the

positive impact of exchange rate fluctuations of 7.0 billion yen, revenue increased 1.3%.

Consolidated operating income for Q4 FY2024 increased 45.7% driven by revenue growth and lower other operating expenses, which

benefitted from the absence of the impairment loss recorded in Q4 FY2023 in connection with the integration of offices.

Consolidated adjusted EBITDA margin for Q4 FY2024 was 15.3% and consolidated adjusted EBITDA increased 17.9%.

For FY2024, consolidated revenue increased 4.1%. Excluding the positive impact of exchange rate fluctuations of 100.4 billion yen, revenue

increased 1.2%. Adjusted EBITDA margin was 19.1% and adjusted EBITDA increased 13.5%.

The following table presents the selling, general and administrative expenses for the three months and fiscal year ended March 31, 2024 and

2025.

Three Months

Fiscal Year

Ended March 31,

% change

(In billions of yen, unless otherwise stated)

2024

2025

2024

2025

3.6

23.6

77.9

188.5

67.2

7.9

(57.7)%

(18.2)%

20.7%

0.7%

32.8

26.4

(19.5)%

(8.6)%

16.5%

3.1%

Sales commission

8.6

76.7

70.1

Promotion expenses

Advertising expenses

Employee benefit expenses

Service outsourcing expenses

Rent expenses

28.8

64.5

187.2

64.7

6.5

212.2

727.5

235.9

29.4

247.2

750.1

235.3

31.6

3.9%

(0.3)%

7.2%

21.1%

(11.7)%

(12.3)%

0.4%

25.8

22.0

416.8

112.4

94.1

103.8

93.8

(7.7)%

(0.3)%

2.5%

Depreciation and amortization

Other

29.2

25.1

414.9

1,521.3

1,558.6

ꢀTotal

The following table presents the share-based payment expenses and research and development expenses for the three months and fiscal

year ended March 31, 2024 and 2025.

Three Months

Fiscal Year

Ended March 31,

% change

(In billions of yen)

Share-based payment expenses¹

2024

15.1

2025

16.1

2024

79.3

2025

80.4

6.1%

1.3%

8.7%

Research and development expenses²

Included in employee benefit expenses.

50.0

(9.9)%

154.8

168.3

55.5

1

2

Consisted primarily of compensation expenses for engineering and other technical employees of HR Technology responsible for the

development of new products and enhancement of existing products using new technologies, which is accounted for as employee benefit

expenses.

5

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Results of Operations by Segment

HR Technology

The following table presents the financial results for the three months and fiscal year ended March 31, 2024 and 2025 for the HR Technology

segment.

Three Months

Fiscal Year

Ended March 31,

% change

2024

2025

2024

2025

(In billions of yen, unless otherwise stated)

Revenue

172.8

59.6

181.3

64.9

4.9%

8.9%

73.9%

11.5%

33.3%

-

699.4

239.6

72.7

745.6

261.9

6.6%

9.3%

63.5%

11.3%

17.3%

-

US

Europe and Others¹

21.0

36.5

118.9

Japan

253.5

73.3

282.8

97.7

1,011.8

344.3

34.0%

1,126.5

404.1

Total

Adjusted EBITDA

28.9%

34.6%

35.9%

Adjusted EBITDA margin

Revenue in million US dollars ($)

1,162

401

1,188

425

2.2%

6.1%

4,841

1,659

503

4,886

1,716

779

0.9%

3.5%

US

Europe and Others¹

142

239

68.6%

54.8%

5.4%

Japan

1,706

1,854

7,004

7,382

8.7%

Total

¹“Rest of World” is renamed “Europe and Others” starting Q4 FY2024.

Revenue for Q4 FY2024 increased 11.5%. On a US dollar basis, revenue increased 8.7%.

Even though the number of paid job ads decreased, on a US dollar basis, revenue in the US for Q4 FY2024 increased 2.2% as the Company

made progress on initiatives to improve monetization and the rate of increase in revenue per paid job ad exceeded the rate of decrease in the

number of paid job ads.

On a yen basis, revenue in Japan increased 73.9%, or 68.6% on a US dollar basis, as revenue from full-time and part-time job advertising

services, which was recorded in HR Solutions of Matching & Solutions, was transferred to Indeed Japan via Indeed PLUS.

Adjusted EBITDA margin for Q4 FY2024 increased 5.6 percentage points to 34.6%.

For FY2024, revenue increased 11.3% or 5.4% on a US dollar basis, adjusted EBITDA margin was 35.9%, and adjusted EBITDA increased

17.3%.

Matching & Solutions

The following table presents the financial results for the three months and fiscal year ended March 31, 2024 and 2025 for the Matching &

Solutions segment.

Three Months

Fiscal Year

Ended March 31,

% change

2024

2025

2024

2025

(In billions of yen)

Revenue

67.7

137.8

3.1

(11.9)%

7.1%

275.3

529.5

11.0

(9.7)%

7.5%

76.8

128.6

2.6

305.0

492.4

10.3

ꢀHR Solutions

ꢀMarketing Solutions

ꢀOthers and Eliminations

ꢀTotal

21.2%

0.3%

ꢀꢀ6.3%

1.0%

208.7

27.6

816.0

185.9

22.8%

208.1

28.4

807.8

163.6

(2.6)%

13.6%

Adjusted EBITDA

13.3%

Adjusted EBITDA margin

13.7%

-

20.3%

-

Revenue in Matching & Solutions for Q4 FY2024 increased 0.3%.

Revenue in HR Solutions decreased 11.9%. Revenue in the placement service continued to grow steadily in a stable business environment.

However, revenue in the job advertising service declined primarily due to the shift of the business to HR Technology through Indeed PLUS,

which was largely completed by the end of the fiscal year ended March 31, 2025.

Revenue in Marketing Solutions increased 7.1%. Revenue in the total of Beauty, Travel, and Dining combined with SaaS solutions including Air

BusinessTools increased. Additionally, Housing & Real Estate and Others, which includes other services in Marketing Solutions, each increased.

Adjusted EBITDA margin in Matching & Solutions for Q4 FY2024 decreased 0.4 percentage points to 13.3%. Adjusted EBITDA margin

decreased due to aggressive marketing efforts in Q4 FY2024 to prepare for the month of April, when consumer spending tends to be more

active.

6

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

For FY2024, revenue increased 1.0%. Adjusted EBITDA margin was 22.8%, and adjusted EBITDA increased 13.6% year over year.

Matching & Solutions’ strategy is to “Help Businesses Work Smarter,” including by improving clients’ productivity and business results through

their use of the Company’s ecosystem of matching platforms and SaaS solutions centered around Air BusinessTools.

The current priority for Air BusinessTools is to increase the number of SaaS registered accounts¹. As of March 31, 2025, the number of SaaS

registered accounts², the number of AirPAY registered accounts and the number of accounts using both AirPAY and another Air BusinessTools

solution (cross-use) steadily increased year over year. Revenue from Air BusinessTools is included in Marketing Solutions. The details of SaaS

registered accounts are presented in the following table.

(In thousand

of accounts)

FY2023

FY2024

As of

June 30

September 30 December 31 March 31

June 30

September 30 December 31 March 31

Registered accounts²

ꢀYoY % Change

AirPAY

3,350

26.8%

417

3,470

22.4%

430

3,600

19.9%

450

3,780

18.2%

475

3,920

17.1%

491

4,050

16.7%

504

4,180

16.1%

515

4,340

14.7%

531

ꢀYoY % Change

14.2%

11.8%

37.4%

31.0%

25.4%

20.5%

17.7%

17.0%

Cross-use of AirPAY and

309

320

236

245

258

274

289

298

other Air BusinessTools³

ꢀYoY % Change

19.3%

16.7%

25.7%

23.6%

22.5%

21.9%

22.4%

21.7%

¹The number of registered accounts retroactively reflects changes in counting methods due to product renewals and other factors.

²Cumulative number of registered accounts of paid and unpaid SaaS solutions provided by Matching & Solutions SBU in Japan.

Registered accounts refer to the number of stores and business locations that have registered for each relevant service including both active

and non-active accounts.

³Cross-use of AirPAY and other Air BusinessTools accounts that use AirPAY and at least one of the following solutions:

AirREGI, AirRESERVE, AirWAIT, AirSHIFT, or AirREGI ORDER.

Staffing

The following table presents the financial results for the three months and fiscal year ended March 31, 2024 and 2025 for the Staffing segment.

Three Months

Fiscal Year

Ended March 31,

% change

(In billions of yen)

Revenue

2024

2025

2024

2025

187.9

204.8

392.8

13.2

751.6

882.6

199.0

189.1

388.1

10.0

5.9%

(7.7)%

(1.2)%

(24.0)%

-

805.1

861.8

7.1%

(2.4)%

2.0%

(0.5)%

-

ꢀJapan

ꢀEurope, US, and Australia

ꢀꢀTotal

Adjusted EBITDA

1,634.2

97.9

1,666.9

97.4

3.4%

6.0%

2.6%

5.8%

Adjusted EBITDA margin

The following table presents the revenue by region of Europe, US and Australia for the fiscal year ended March 31, 2024 and 2025 for the

Staffing segment.

Fiscal Year Ended March 31,

% change

(In billions of yen)

Revenue

2024

2025

ꢀEurope¹

442.5

244.0

196.0

882.6

420.4

247.1

194.1

861.8

(5.0)%

1.3%

ꢀUS¹

Australia¹

(0.9)%

(2.4)%

ꢀ Total

¹Sum of revenue from individual companies after consolidation adjustments for Europe, US, and Australia.

Revenue for Q4 FY2024 decreased 1.2%. Excluding the negative impact of exchange rate fluctuations of 0.4 billion yen, revenue decreased

1.1% due to a decrease in revenue in Europe, US, and Australia.

Revenue in Japan increased 5.9% due to an increase in the number of temporary staff on assignment as demand for staffing services continued

to grow year over year.

Revenue in Europe, US, and Australia decreased 7.7%. Excluding the negative impact of exchange rate fluctuations of 0.4 billion yen, revenue

for Q4 FY2024 decreased 7.5% as demand for staffing services continued to slow down against a backdrop of an uncertain economic

environment.

Adjusted EBITDA margin for Q4 FY2024 was 2.6% as temporary staff recruitment costs and marketing expenses to acquire business clients

increased.

For FY2024, revenue increased 2.0%, excluding the positive impact of exchange rate fluctuations of 40.3 billion yen, revenue for FY2024

decreased 0.5%. Adjusted EBITDA margin was 5.8%, and adjusted EBITDA decreased 0.5%.

7

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

The Outstanding Amount of Goodwill for each SBU as of March 31, 2025

The following table presents the outstanding amount of goodwill for each SBU as of March 31, 2025.

Goodwill for each SBU as of March 31, 2025

(In billions of yen)

ꢀHR Technology

ꢀMatching & Solutions

Japan

277.1

-

Overseas

ꢀStaffing

Japan

-

231.0

27.8

186.3

13.5

3.1

Europe

US

Australia

ꢀTotal

508.1

Management Actions for the Six Months Ended March 31, 2025

Completion of Share Repurchase Resolved at the Company’s Board of Directors on July 9, 2024

The Company’s Board of Directors resolved on July 9, 2024 to conduct a share repurchase of its common stock and the self tender offer was

conducted from July 10, 2024 to February 7, 2025. The total number of shares purchased and the total share repurchase amount was 64.6

million shares and 599.9 billion yen.

Please find the resolutions and the final status of these share repurchases on the website:

“Status and Completion of Share Repurchases” released on February 10, 2025

https://recruit-holdings.com/en/newsroom/20250210_0001/

Retirement of Treasury Stock

The Company’s Board of Directors resolved on March 12, 2025 to conduct the retirement of treasury stock. The Company retired 85.9 million

shares on March 24, 2025, equal to the total number of treasury stock acquired from March 18, 2024 to June 25, 2024, from July 10, 2024 to

February 7, 2025 and on March 3, 2025.

Please find more information on the website:

“Recruit Holdings Announces Retirement of Treasury Stock” released on March 12, 2025ꢀ

https://recruit-holdings.com/en/newsroom/20250312_0001/

Resolution of the Share Repurchase at the Company’s Board of Directors Meeting on February 28, 2024 and Status of Share

Repurchases

The Company’s Board of Directors resolved on February 28, 2025 to conduct a share repurchase of its common stock.

The total number of shares to be repurchased was 52.0 million shares (maximum) (up to 3.51% of total number of shares issued and

outstanding (excluding treasury stock)), and the total purchase price is 450.0 billion yen (maximum). The repurchase period is from March 3,

2025 to December 23, 2025.

Subsequently, the Company’s Board of Directors resolved on April 25, 2025 to expand the limit of the share repurchase to 62.0 million shares

(maximum) (up to 4.23% of total number of shares issued and outstanding (excluding treasury stock)).

As of April 30, 2025, 42.5 million shares have been repurchased at the total price of 340.6 billion yen on an execution date basis.

Please find more information on the following websites:

“Recruit Holdings Announces Share Repurchases” released on February 28, 2025

https://recruit-holdings.com/en/newsroom/20250228_0001/

“Recruit Holdings Announces the Determination of Matters Related to the Repurchase of Own Shares (Expansion of Repurchase Limit)”

released on April 25, 2025

https://recruit-holdings.com/en/newsroom/20250425_0001/

“Status of Share Repurchases” released on May 1, 2025

https://recruit-holdings.com/en/newsroom/20250501_0001/

8

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Capital Resources and Liquidity

Basic Policy

The Company's basic policy is to obtain funds from global financial markets through debt as necessary, while maintaining appropriate credit

ratings and strong consolidated financial position, in order to secure liquidity required for smooth operations and to invest flexibly for its

long-term business strategy that will lead to increasing its enterprise value.

The Company aims to maintain a sufficient level of shareholders’ equity while achieving appropriate capital efficiency, in order to respond

flexibly to investment opportunities for future growth while at the same time enhancing its ability to address possible risks relating to its

business operations and assets.

Use of Capital

The Company allocates its capital mainly to working capital, corporate taxes, mergers and acquisitions, asset acquisitions and capital

expenditures by its SBUs as well as repayments of borrowings, payment of interest, payment of dividends, and share repurchases.

Fundraising

The Company’s primary source of liquidity for working capital and investments are cash flows from operating activities. However, the Company

may consider and execute external financing when various conditions are deemed favorable, such as demand for funds, interest rate trends,

repayment amount, redemption period of existing interest-bearing debt, amount to be raised, and financing structure.

For short-term working capital, the Company primarily utilizes borrowings from financial institutions and/or commercial paper. For mid- to

long-term needs, the Company will raise funds mainly through borrowings from financial institutions and/or the corporate bond market. To

maintain flexible financing capabilities, the Company has registered a maximum 200.0 billion yen worth of corporate bonds for potentialꢀ

issuances, the full amount of which is unused as of March 31, 2025.

Additionally, the Company has entered into overdraft agreements with four financial institutions to secure liquidity and raise working capital funds

efficiently. The maximum amount of borrowings under these overdraft agreements is 113.0 billion yen as of March 31, 2025, and the entire

amount remains unused. In addition, the Company entered into a committed credit facility agreement providing for a total commitment amount of

200.0 billion yen. The entire amount available under these credit facilities remains unused as of March 31, 2025. The Company maintains these

overdraft agreements and credit facilities to ensure sufficient liquidity in the event of significant changes in the business environment.

Credit Ratings

The Company has long-term credit ratings of A from S&P Global Rating Japan, A3 from Moody’s Japan, AA from Rating and Investment

Information, Inc. (R&I), and AA+ from Japan Credit Rating Agency, Ltd. (JCR) as of March 31, 2025. The Company has short-term credit ratings

of a-1+ from R&I.

Cash Management

In order to maximize overall capital efficiency, the Company prioritizes internal lending and borrowing within the Company over external

financing, mainly through a cash management system, when it is legally permissible and economically reasonable to do so.

The Company maintains internal liquidity of cash and cash equivalents by consolidating the cash management operations of all currencies to the

Holding Company and its subsidiaries, which provide internal treasury management services.

Fund Management

The Company does not engage in any investments for speculative purposes. Investments are limited to financial instruments that are highly

liquid and have a low risk of principal loss, with a focus on risk diversification.

Policy of Strategic Shareholdings

In principle, the Company’s policy is to reduce strategic shareholdings. The decision on whether or not to hold each company’s stock is made

based on a comprehensive assessment of the economic value of its stock, cost of capital, strategic importance, environment, social and

governance aspects, and other factors. The Board of Directors scrutinizes these shareholdings once a year and deliberates the reduction of

these holdings if they do not meet the above criteria.

As of March 31, 2025, the total amount of strategic shareholdings held by the Holding Company and Recruit Co., Ltd. was 66.0 billion yen,

which is 4.1% of the consolidated total equity. In FY2024, the Company sold 9 stocks of strategic shareholdings for a total of 25.5 billion yen.

9

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

The Holding Company

Unlisted Listed

Recruit Co., Ltd.

Unlisted

Listed

3

7

48,661

8

4

3

Number of issuers

553

Amount on the balance sheet (millions of yen)

Number of issuers with decreased shareholdings

1,495

15,347

1

-

Total proceeds from sales resulting in a decrease in

number of shares held (millions of yen)

24,981

612

Analysis of Consolidated Financial Position

As of March 31,

2024

As of March 31,

2025

Variance

% change

(In billions of yen)

Assets

1,762.7

1,381.9

3,144.6

1,470.3

1,301.8

2,772.2

(292.3)

(80.0)

(16.6)%

(5.8)%

Total current assets

Total non-current assets

(372.3)

(11.8)%

Total assets

Liabilities

802.1

342.7

43.3

(34.1)

9.1

5.7%

(9.1)%

0.8%

Total current liabilities

Total non-current liabilities

Total liabilities

758.8

376.8

1,135.7

1,144.8

Equity

2,000.9

7.9

1,617.5

9.7

(383.3)

1.7

(19.2)%

22.6%

Total equity attributable to owners of the parent

Non-controlling interests

Total equity

2,008.9

1,627.3

(381.5)

(19.0)%

Total current assets as of March 31, 2025 decreased by 292.3 billion yen compared to the end of FY2024 mainly due to a decrease in cash and

cash equivalents resulting from the share repurchases of common stock conducted during FY2024.

The maximum amount of borrowings under overdraft agreements was 113.0 billion yen as of March 31, 2025, and the entire amount remained

unused. In addition, committed credit facilities with a total maximum borrowing amount of 200.0 billion yen, for which the Company entered into

an agreement on September 29, 2023, remained unused as of March 31, 2025.

Also, the Company has registered a maximum 200.0 billion yen worth of corporate bonds for potential issuances in Japan, the full amount of

which is unissued as of March 31, 2025.

The following table presents cash and cash equivalents, investments for available funds on standby for business operations within other

financial assets, interest-bearing debt and net cash.

As of March 31,

2024

As of March 31,

2025

Variance

(328.2)

15.1

% change

(28.9)%

(In billions of yen)

808.6

Cash and cash equivalents

1,136.8

Investments for available funds on standby for

business operations within other financial assets

15.1

-

1.0

(0.3)

(27.4)%

(27.5)%

Interest-bearing debt (excludes lease liabilities)

1.3

822.7

(312.6)

ꢀNet cash

1,135.4

Analysis of Consolidated Cash Flows

As of March 31,

2024

As of March 31,

2025

Variance

(In billions of yen)

535.3

610.3

(61.0)

(880.4)

2.9

75.0

7.7

Net cash flows from operating activities

(68.7)

(334.6)

127.5

Net cash flows from investing activities

Net cash flows from financing activities

(545.8)

(124.6)

(587.7)

259.4

Effect of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

259.4

(328.2)

1,136.8

808.6

877.3

1,136.8

(328.2)

Payments for the purchase of treasury stock in Q4 FY2024 and the twelve months ended March 31, 2025 amounted to 184.1 billion yen and

824.4 billion yen, respectively.

10

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

2. Consolidated Financial Guidance for FY2025

In FY2025, the Company expects hiring demand to decline year over year in the US and in other regions, including Europe and Australia. In

Japan, it is assumed that the current business environment continues and there is no rapid economic downturn.

The foreign exchange rate assumptions for FY2025 are 145 yen per US dollar, 158 yen per Euro and 92 yen per Australian dollar.

The total amount of share-based payment expense for HR technology in FY2025 is expected to be approximately 570 million US dollars.

Based on these assumptions, the full-year consolidated financial guidance and outlook of each segment for FY2025 are as follows.

As of April 1, 2025, HR Solutions of Matching & Solutions was transferred to HR Technology, and Matching & Solutions will be renamed

Marketing Matching Technologies from FY2025.

In the following, the full-year results for FY2024 were calculated as pro forma results assuming that the above transfer had taken place at the

beginning of FY2024, and the consolidated guidance and outlook for each segment for FY2025 are shown in comparison with the pro forma

results for FY2024.

The calculation of pro forma results reflects adjustments to inter-segment internal revenue and corporate overhead costs in Matching &

Solutions. As a result, there are slight differences between FY2024 actual results and the pro forma results other than HR Technology Japan

and Marketing Matching Technologies.

Consolidated Guidance

% change relative to

FY2024 Actual

FY2024 Pro Forma

FY2025 Guidance

FY2024

Pro Forma

(In billions of yen)

3,557.4

2,085.6

678.8

3,557.4

2,085.6

678.8

3,520.0

2,076.0

697.0

(1.1)%

(0.5)%

2.7%

Revenue

Gross Profit

Adjusted EBITDA

490.5

540.0

10.1%

4.8%

Operating income

408.5

428.0

Profit attributable to owners of the parent

Basic EPS (yen)

271.44

295.00

8.7%

HR Technology

% change relative to

FY2024

FY2024 Actual

FY2024 Pro Forma

FY2025 Outlook

Pro Forma

Revenue (in millions of US dollars)

0.3%

8.1%

2.4%

US

4,886

1,716

779

4,884

1,716

2,390

8,991

4,900

1,855

Europe and Others

Japan

2,448

9,203

Total

7,382

Revenue (in billions of yen)

710.5

(4.7)%

2.7%

US

745.6

261.9

745.3

261.9

Europe and Others

Japan

268.9

355.0

(2.7)%

(2.8)%

118.9

364.9

Total

1,126.5

1,372.2

1,334.4

Adjusted EBITDA (in billions of yen)

Adjusted EBITDA margin (%)

1.6%

-

404.1

452.8

460.0

35.9%

33.0%

34.5%

11

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Staffing

% change relative to

FY2024 Actual

FY2024 Pro Forma

FY2025 Outlook

FY2024

Pro Forma

(In billions of yen)

Revenue

Japan

805.1

861.8

805.1

861.8

837.0

803.0

4.0%

(6.8)%

(1.6)%

(5.6)%

-

Europe, US, and Australia

Total

1,666.9

1,640.0

Adjusted EBITDA

Adjusted EBITDA margin (%)

97.4

92.0

5.8%

5.6%

Marketing Matching Technologies

% change relative to

FY2024

FY2024 Actual¹

FY2024 Pro Forma¹

FY2025 Outlook

(In billions of yen)

Revenue

Pro Forma

816.0

185.9

539.5

137.2

25.4%

567.0

156.0

27.5%

5.1%

13.7%

-

Adjusted EBITDA

Adjusted EBITDA margin (%)

22.8%

¹The results for FY2024 are for Matching & Solutions, and the pro forma results for FY2024 are based on the assumption that Matching &

Solutions included only Marketing Solutions.

3. Basic Policy on Profit Distribution and Dividends

The Company’s primary use of capital is to invest for its long-term business strategy in order to achieve sustainable profit growth and increase

enterprise value. The Company believes that this approach will contribute to the common interests of shareholders. The Company also

considers the return of capital to its shareholders in the form of dividends to be an important part of its capital allocation strategy. The Company

strives to continuously pay stable per-share dividends considering its long-term cash needs and financial position.

The Company may consider implementing share repurchase programs, depending on the capital market environment and the outlook of its

financial position.

Total annual dividend for FY2024 is 24.0 yen per share, which consists of an interim dividend of 12.0 yen per share and a year-end dividend of

12.0 yen per share.

The Company basically declares dividends twice a year. Matters stipulated in Article 459, Paragraph 1 of the Companies Act of Japan, including

cash dividends, are not resolved at the Annual Meeting of Shareholders, but at Board of Directors meetings, unless otherwise provided by laws

and regulations.

Total annual dividend guidance for FY2025 is 25.0 yen per share, which consists of an interim dividend of 12.5 yen per share and a year-end

dividend of 12.5 yen per share.

Total dividend (In millions of yen)

Dividend per share (In yen)

Resolution date at the Board of Directors meetings

November 11, 2024

12.0

18,696

18,330

May 9, 2025

12

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

4. Overview of the Company

The Company started in 1960 as a business providing job information to students by placing job advertisements for its clients in university

newspapers in Japan. Since then, the Company has consistently created and operated matching platform businesses connecting individual

users and business clients.

Currently, the Company provides individual users around the world the best possible choices and supports business clients in improving their

operational efficiency by utilizing technology and data, all enabling simpler and faster matching.

In the course of connecting individual users and business clients, the Company positions data security and privacy, including the protection of

individual users’ privacy, as a material foundation for its corporate activities, and has established appropriate structures and measures to

support that position.

The Company operates its businesses through each of its three Strategic Business Units (“SBU”s): HR Technology, Matching & Solutions and

Staffing. The Company has established respective SBU Headquarters in order to further reinforce global, swift decision making. This

organizational structure enhances the management capabilities of each SBU Headquarters and enables each SBU Headquarters to execute

its own strategy. At the same time, each SBU collaborates closely to achieve the Company’s three strategic pillars: Simplify Hiring, Help

Businesses Work Smarter, and Prosper Together. The SBU structure also enables the Holding Company to focus on and strengthen its holding

company functions, including strategic planning and execution as well as group governance and monitoring. Through these positive aspects of

the SBU structure, the Company aims to increase its enterprise value.

As of March 31, 2025, the Company had 223 subsidiaries and 8 associates.

As of April 1, 2025, HR Solutions of Matching & Solutions SBU has been transferred to HR Technology SBU, and Matching & Solutions SBU

will change its name to Marketing Matching Technologies SBU in FY2025. Statements below are based on the information as of March 31,

2025 before the organization change unless otherwise stated. Brands and services of each SBU are listed based on information as of April 1,

2025 in addition to information as of March 31, 2025.

Business Overview by Segment

HR Technology

HR Technology consists of Indeed, Glassdoor, and other related businesses.

Indeed and Glassdoor are online matching and hiring platforms where people can find jobs and learn about companies. Both Indeed and

Glassdoor have missions that are aligned towards achieving success for job seekers - Indeed’s mission is to help people get jobs and

Glassdoor’s mission is to make worklife better, together.

Indeed created the job aggregation and search model and is now transforming into a global two-sided talent marketplace. In doing so, Indeed

has become the leading job site in the world¹, with over 610 million job seeker profiles²and 3.3 million employers³using Indeed to hire in the

last year.

Glassdoor has reshaped the way people search for and evaluate jobs and companies while building a community for workplace conversations,

increasing workplace transparency for job seekers by bringing together jobs with user-generated employer reviews, conversations, salaries

and insights. As a result, Glassdoor has become the recognized leader on insights about jobs and companies, with over 210 million user

profiles.⁴

Indeed and Glassdoor offer a suite of tools to help job seekers find and apply to available job opportunities, create profiles, post resumes,

research company information and reviews, and schedule and conduct video and phone interviews. For employers, Indeed and Glassdoor

offer solutions to recruit and hire qualified talent in an easier and more efficient way. Employers can post and advertise jobs, access candidate

profiles and build their company’s employment brand across both platforms, reaching a broad and diverse job seeker audience.

Together, Indeed and Glassdoor provide an efficient source of candidates through AI based matching, pay-for-performance and subscription

pricing models, and a range of products for employers to source, screen, interact with, and interview candidates. As a result, Indeed and

Glassdoor partner to create a global two-sided talent marketplace where job seekers find jobs and employers find great talent.

In Japan, the Company has expanded the job seeker audience further through Indeed PLUS, a job distribution platform which connects a

network of Applicant Tracking Systems (“ATS”) and job boards, including Recruit’s Rikunabi NEXT and TOWNWORK as well as other Recruit

and third party sites.

1

Source: comScore, Total Visits, March 2025

Internal data, cumulative number of verified job seeker accounts on Indeed through March 31, 2025, worldwide. Job seeker accounts that

2

have a unique, verified email address

Internal data, based on the last 12 months of activity as of March 2025, worldwide

Internal data, cumulative number of Glassdoor registered users for which a profile or resume is available through March 31, 2025, worldwide

3

4

Brands

Services

Indeed

Online matching and hiring platform

Job distribution platform

Indeed PLUS

Glassdoor

Online matching and hiring platform

13

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

As of April 1, 2025

Brands

Services

Indeed

Online matching and hiring platform

Job distribution platform

Indeed PLUS

Glassdoor

Online matching and hiring platform

Online matching platform for new graduates

Employment placement service for professionals

Talent sourcing service for professionals

Rikunabi

RECRUIT AGENT

RECRUIT DIRECT SCOUT

Matching & Solutions

Matching & Solutions consists of two businesses mainly in Japan, HR Solutions and Marketing Solutions. HR Solutions helps individual users

find jobs and helps business clients’ hiring activities across a variety of industries. Marketing Solutions offers vertical-specific matching

platforms which connect individual users and business clients, and cloud-based Software as a Service (“SaaS”) solutions.

Through these matching platforms and SaaS solutions, Matching & Solutions aims to create an “ecosystem” of solutions that support the

operations of businesses in Japan to help improve their productivity and profitability.

HR Solutions

HR Solutions supports business clients’ recruiting and hiring activities and individual users’ job search activities through its job advertising

services and placement services. The services include online matching platforms (including job boards of Rikunabi for new graduates,

Rikunabi NEXT for mid-career job seekers, and TOWNWORK for part-time job seekers), and placement services including Recruit Agent

and RECRUIT DIRECT SCOUT. All job boards in HR Solutions except for Rikunabi are linked to Indeed PLUS of HR Technology, which

can reach up to 70% of users¹at the major job boards in Japan.

Marketing Solutions

Marketing Solutions consists of in the total of each of Beauty, Travel, Dining, and SaaS solutions as lifestyle, Housing & Real Estate and

Others which includes other services in Marketing Solutions. The matching platforms for each industry include: SUUMO for Housing &

Real Estate, Hot Pepper Beauty for Beauty, Jalan for Travel, Hot Pepper Gourmet for Dining, and Zexy for Bridal, among others. Most

matching platforms generate revenue primarily from advertising while Travel and other services generate revenue from transactions. The

pricing models vary according to the commercial practices and characteristics of each industry and are continuously updated to ensure

they are optimally aligned with the operations of the Company’s business clients in order to maintain long-term relationships with its

business clients and maximize the lifetime value (“LTV”) per client.

Marketing Solutions provides 16 Air BusinessTools, such as AirPAY, a cloud-based payment service, AirREGI, a point of sale (POS)

system, and AirWORK ATS, a centralized application management service as well as other SaaS solutions specialized for industries

where Matching & Solutions operates matching platforms. The current priority is to increase the number of SaaS accounts.

¹Values, Inc. Market Share Survey, June 2024 (Percentage of users who use Indeed, Townwork, Travail, Hatalike, From A Navi,

Rikunabi NEXT, and Rikunabi Haken among people who use major job sites in Japan at least two days a year. The data was compiled

using approximately 60 competing job sites, excluding recruiting and other services, and without taking into account overlap between PCs

and smartphones)

Brands

Services

Rikunabi

Rikunabi NEXT

Online matching platform for new graduates

Online matching platform for mid-career job seekers

Employment placement service for professionals

Talent sourcing service for professionals

HR Solutions RECRUIT AGENT

RECRUIT DIRECT SCOUT

TOWNWORK

SUUMO

Online matching platform for part-time and full-time job seekers

Online platform and in-person consultation service for housing and real estate

Online platform for beauty treatment

Hot Pepper Beauty

Jalan

Online platform for travel in Japan

Marketing

Solutions

Hot Pepper Gourmet

Online platform for dining

Cloud-based operational and management support solutions for business

clients across an expanding variety of businesses

Air BusinessTools

14

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

As of April 1, 2025ꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀ

Brands

Services

SUUMO

Online platform and in-person consultation service for housing and real estate

Online platform for beauty treatment

Hot Pepper Beauty

Jalan

Online platform for travel in Japan

Hot Pepper Gourmet Online platform media for dining

Cloud-based operational and management support solutions for business clients across an

expanding variety of businesses

Air BusinessTools

Staffing

Staffing consists of two major operations: Japan and Europe, US, and Australia. Staffing offers temporary staffing and other related services

primarily for clerical, manufacturing, light industry and various professional positions across a multitude of industries. The Company selects

appropriate temporary staff, based on the skills needed by clients, from a large pool of workers registered with the Company, and then

provides those temporary staff to business clients.

Both Japan and Europe, US, and Australia operations implement the Unit Management System, which divides an organization into smaller

units based on differences in the markets they serve. Each unit is regarded as a distinct company, and the Unit Manager is given authority to

make decisions to maximize each unit’s profitability.

Brands

Services

Recruit Staffing

Japan

Staffing services in Japan

STAFF SERVICE GROUP

Europe: Start People, Unique, USG

Professionals, Secretary Plus, Bright Plus,

Solvus, Certain Advantage

Europe, US,

and Australia

Staffing services mainly in Europe, US, and Australia

US: Staffmark, CSI Companies

Australia: Chandler Macleod, Peoplebank

Since Recruit Holdings falls under the category of Specified Listed Company under the insider trading regulations, the criteria for determining

the insignificance of material facts relative to the size of the Company with respect to insider trading regulations are decided based on the

figures on a consolidated basis.

15

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Operational Chart

FY2024

16

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

FY2025

17

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

5. Management Philosophy and Strategies

Management Philosophy

Recruit Group Management Philosophy is defined by its Basic Principle, Vision, Mission and Values as follows:

Basic Principle

We are focused on creating new value for our society to contribute to a brighter world where

all individuals can live life to the fullest.

Vision

Follow Your Heart

We envision a world where individuals and businesses can focus on what really matters. The

more people are free to pursue their passions, the better our future becomes.

Mission

Opportunities for Life.

Faster, Simpler and closer to you.

Since our foundation, we have connected individuals and businesses offering both a multitude

of choices.

In this era of search where information has become available anytime anywhere, we need to

focus more on proposing the optimal choice. We seek to provide “Opportunities for Life” much

faster, surprisingly simpler and closer than ever before.

Values

Wow the World

Bet on Passion

Prioritize Social Value

What we do isn’t a job. We enjoy exploring

what is possible for our future. We

question the status quo, fail well and

overcome with resilience.

We are a team of people fueled by curiosity.

We respect and capitalize on each other’s

differences. We know that one person’s

crazy idea, when backed by data and

research, can become the best bet.

We, as global citizens, strive to contribute to a

sustainable society through all of our corporate

activities. Each one of us is committed to

seeking out the needs of society and taking

action for a better future.

We are a force for change.

The Company has aligned its management philosophy through its two-sided marketplace business model, which facilitates the best possible

matches for the mutual benefit of both individual users and business clients.

In recent years, the Company has improved matching efficiency, providing better matching outcomes for individual users and improving

operational efficiencies for business clients with AI and technological advancement.

Target Management Key Performance Indicators (KPIs)

The Company aims to invest in new businesses, research and development, and mergers and acquisitions (M&A) in order to achieve profitable

growth over the long-term, and maximize enterprise value as well as shareholder value. Therefore, the Company has set adjusted EBITDA as

target management KPIs. Executive officers’ compensation is linked to the achievement level of adjusted EBITDA, to align with shareholder

interests.

Business Strategies

This section is based on the information after HR Solutions of the Matching & Solutions SBU has been transferred to HR Technology SBU on

April 1, 2025, and Matching & Solutions SBU will change its name to Marketing Matching Technologies SBU in FY2025.

Recruit Group is committed to maximizing enterprise and shareholder value by quickly identifying needs and business opportunities in the global

market and making swift decisions in response to the rapidly evolving business environment driven by technological advancements.

Through HR Technology and Staffing in the global HR Matching market as well as through Marketing Matching Technologies for Japan, the

Company aims not only to provide online advertising businesses, but also to be a solutions provider that utilizes technology to improve the

performance and productivity of clients’ businesses.

In an environment of significant uncertainty, the Company is committed to making a positive impact on society and the planet, which is essential

to achieving sustainable growth. The Company aims to prosper together with all stakeholders by conducting all corporate activities with a sound

governance foundation. Therefore, as part of the Company’s corporate strategy, the Company has set specific targets for environmental, social

and governance matters which will be monitored by the Board of Directors. The Company will advance these initiatives through ongoing

dialogue with its stakeholders.

18

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

The Company's business strategies are as follows:

Simplify Hiring - Make it easier and faster for people to get jobs

The HR Matching market includes job advertising & talent sourcing tools, direct hire, retained search, internal recruitment automation, and

temporary staffing. The Company is committed to making it easier and faster for people to get jobs, while reducing the cost and time to hire for

employers across the HR Matching market.

To achieve the goal of Simplify Hiring, the Company believes it is essential to further strengthen the collaboration between all HR related

businesses across Recruit Group and operate them in a unified manner, while targeting the entire HR Matching market. Through Indeed PLUS

and continuing with the placement business, which was previously included in HR Solutions in Matching & Solutions and transferred to HR

Technology on April 1, 2025, the Company believes that operating these businesses as one will improve hiring efficiency and accelerate our

ability to effectively address the global HR Matching market.

The Recruit Group is dedicated to automating many of the steps in the hiring process and to enhancing the quality and speed of matching in all

HR Matching markets it operates in. The Company aims to leverage the vast amount of data available in each service combined with AI and

machine learning technology to simplify the hiring process and deliver greater value to job seekers and employers. The Company’s long term

vision is to more quickly, effectively and fairly connect job seekers and employers at the push of a button¹.

At the center of this strategy, HR Technology SBU operates a global two-sided talent marketplace that includes the world’s leading online

matching and hiring platforms², Indeed and Glassdoor, and the job distribution platform Indeed PLUS. Every day, millions of job seekers connect

with millions of employers of all sizes, from small businesses to large enterprises and staffing agencies, directly on Indeed, Indeed PLUS and

Glassdoor.

Job seekers can access more than 24 million jobs³that have been aggregated from public sources, posted via integrations with ATS or posted

directly by employers to HR Technology's online matching and hiring platforms and can access billions of company ratings, company reviews

and salaries⁴to help them make informed job and career decisions. Job seekers are provided with a suite of tools and resources that make

getting a job simple, fast and more human, including job search and recommendations, profile creation and resume posting, career advice and

workplace community conversations, and scheduling and conducting video and phone interviews.

For employers, HR Technology’s online matching and hiring platforms offer AI based solutions to recruit and hire qualified talent in a simpler,

faster and more human way. Employers can post and advertise jobs and build their company's employment brand across both platforms,

reaching a broad and diverse job seeker audience. Indeed and Glassdoor offer a range of products for employers to source, screen, interact

with, and interview candidates and together they provide an efficient source of candidates through pay-for-performance and subscription pricing

models.

The scale of the two-sided talent marketplace created by Indeed and Glassdoor is evidenced by the 3.3 million employers⁵that use Indeed each

year to hire, the over 610 million verified job seeker profiles⁶created on Indeed and over 210 million user profiles⁷created on Glassdoor.

Improving the matching process between job seekers and employers is vital to enhance the efficiency and effectiveness of the two-sided talent

marketplace. This involves continuously refining the accuracy and timeliness of the information the Company uses including through the use of

generative AI tools, in conjunction with predictive AI and machine learning technology, to provide the most suitable job recommendations and

the most qualified candidate pool available. Additionally, an essential element of this effort is to increase engagement with job seekers in the

Company’s talent marketplace, including through more tailored agentic AI experiences.

By logging in and creating a profile, job seekers provide the Company with a better understanding of their skills and preferences, enabling it to

offer more personalized job recommendations that are highly relevant to them. This not only provides a superior user experience but also helps

job seekers find suitable opportunities more efficiently.

Furthermore, the Company also believes that it is crucial to understand the factors that drive successful and unsuccessful outcomes for job

seekers and employers. The Company’s talent marketplace facilitates interactions between job seekers and employers, such as messaging,

calls, application submissions, interview requests and RSVPs, offers, and more. Additionally, by expanding integrations with ATSs, the Company

aims to improve matching by bringing outcome data from external ATSs into the Indeed platform. By tracking these interactions in the

Company’s marketplace throughout the hiring process, it gains valuable insights into why job seekers and employers progress from one step to

the next.

The Company considers the measured average number of hires per minute⁸to be a Key Performance Indicator (KPI) that demonstrates its

success in simplifying the hiring process. The Company believes this KPI indicates a successful engagement between job seekers and

employers, which represents improvements in matching and automation, as well as improvements in employer engagement that help the

Company measure more hires. In calendar 2024, based on internal measurement, an average of 27 job seekers were hired on Indeed and

Glassdoor every minute.

The Company believes that by fully utilizing the Recruit Group's business client relationships, offline and online data, combined with machine

learning and other AI technologies, the Recruit Group’s matching engine can be improved significantly, helping to simplify the process for job

seekers and make recruiting more efficient across all of Recruit’s HR related businesses.

As an example, Indeed PLUS, a job distribution platform available throughout Japan, efficiently matches job seekers and employers by

combining the power of the Company’s online matching and hiring platforms with the data and insights of its various Japan-based job boards

like TOWNWORK and Rikunabi NEXT. All of the job boards in Japan, with the exception of Rikunabi, are now linked to Indeed PLUS, allowing

job seekers to choose from a wider range of jobs, and employers to expect to hire the most suitable talent more quickly and efficiently, from a

larger pool of candidates.

19

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Additionally, RECRUIT AGENT and RECRUIT DIRECT SCOUT, the placement services, which are part of the HR Technology SBU as of April 1,

2025, utilize the Recruit Group’s matching engine to streamline processes like screening resumes, a previously manual process. By combining

Indeed’s technology, data and scale with more than 60 years of HR matching expertise in the Japanese market, the Company aims to

accelerate its Simplify Hiring strategy in Japan.

The Staffing SBU is focused on leveraging the technology developed within the Recruit Group, such as its unparalleled matching engine, to

provide superior experiences for both business clients and temporary workers by applying data and automation to the traditional temporary

staffing business. The Company aims to improve the speed and quality of matching, and increase retention of temporary workers and automate

manual processes with the ultimate goal of becoming the leading, most innovative platform in the temporary staffing market.

In 2024, the Company believes the size of the HR Matching market was roughly 310 billion US dollars⁹, flat compared to the Company’s

restated estimate¹⁰for 2023. While the estimated size of the Job Advertising and Talent Sourcing, Direct Hire and Temporary Staffing markets

each contracted slightly, this was offset by an increase in the estimated size of the Internal Recruitment Automation market, driven by an

increase in the assumed percent of historical spending on internal talent acquisition resources that could be reasonably captured by current

technology. The size of the total, and each, addressable market has been updated as of May 9, 2025. Please reference the footnotes for details

of the changes.

The Direct Hire and Retained Search markets, as well as the internal recruitment processes that underlie the Internal Recruitment Automation

market have historically been characterized as business processes and methods that are highly dependent on manual processes in order to

source and screen candidates, schedule interviews, and dispose of candidates. The Company is currently aiming to develop highly efficient

solutions for recruiters, hiring managers, and business owners at lower prices compared to the industry average, using data and automation to

make getting a job and hiring an employee simpler and faster. As a result, the Company aims to further grow the number of employers it serves

and increase the share of employers’ recruiting budgets that it can capture.

HR Matching addressable markets (estimated)

2023

as of May 15, 2024

2023

as of May 9, 2025

2024

(in billions of US dollars)

Job Advertising and Talent Sourcing ^{11, 12, 13}

Direct Hire ^{14, 15, 16}

31

58

34

74

33

72

Retained Search ^{14, 15, 16}

37

24

Temporary Staffing ^{17, 18, 19}

116

60

118

60

111

70

Internal Recruitment Automation ^{20, 21}

22

Total Addressable Market (“TAM”)

302

310

Job Advertising and Talent Sourcing: The global job advertising and talent sourcing market is estimated by Staffing Industry Analysts (“SIA”)

to have been roughly 33 billion US dollars¹³in terms of annual revenue in 2024.

Direct Hire: The direct hire market, where companies are paid fees for placing permanent workers at employers, is estimated by the Company

to have been roughly 72 billion US dollars¹⁶in terms of annual revenue globally in 2024 and has historically been dominated by traditional

relationship-based business models.

Retained Search: The retained search market, where companies are paid to search for employees to fill specific roles, commonly executive

roles, is estimated by the Company to have been roughly 24 billion US dollars¹⁶in terms of annual revenue globally in 2024 and is similarly

dominated by traditional relationship-based models.

Temporary Staffing: The temporary staffing market, where companies are paid to find and employ, or facilitate employment of, workers for a

temporary period, is estimated by the Company to have been roughly 536 billion US dollars¹⁹in annual revenue globally in 2024. The total gross

profit for all staffing companies, which is calculated by subtracting the amount of salary for temporary staff and related costs from the total

revenue, is estimated by the Company to have been roughly 100 billion US dollars¹⁹in 2024. Additionally, the Company’s definition of this

market includes the estimated annual revenue globally in 2024 for each of the Talent Platforms²³, Staffing Platforms²⁴and Vendor/Freelancer

Management Systems (“VMS/FMS”)²⁵markets, and an estimated annual spending by employers on Managed Service Provider (“MSP”)²⁶and

Recruitment Process Outsourcing (“RPO”)²⁷services that can be reasonably automated and monetized by third parties (including an estimated

reduction from historical spending due to cost savings achieved through automation). Given the related nature of these markets and the

frequency with which service providers offer some or all of these services, the Company believes that it is appropriate to combine these markets

as part of the temporary staffing market. Including these markets, the Company estimates that the temporary staffing market was roughly 111

billion¹⁹US dollars globally in 2024.

Internal Recruitment Automation: The potential internal recruitment automation market, which the Company has begun to address, is

estimated by the Company to have been roughly 70 billion US dollars²¹in 2024. The size of this market is estimated based on the historical

estimated spending by employers on internal talent acquisition resources, and then estimating how much of this spending can be reasonably

automated and monetized by third parties (including an estimated reduction from historical spending due to cost savings achieved through

automation). Additionally, in order to comprehensively capture the automation tools that are currently used by employers in the recruitment

process, the Company’s definition of this market includes the estimated annual revenue globally in 2024 for ATS²⁸and an estimated annual

internal spending by employees on Background Checks²⁹that can be reasonably automated and monetized by third parties.

_______________________

1

The Company is aware there may be legal restrictions in this area and so will endeavor that the Company's work meets those

requirements.

Source: comScore, Total Visits, March 2025

Internal data, based on the last 12 months daily average number of jobs searchable on Indeed as of December 2024, worldwide

2

3

20

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

4

Internal data, cumulative number of company ratings, company reviews and salaries submitted on Indeed (approximately 4.5 billion),

worldwide, as of March 31, 2025

Internal data, based on the last 12 months of activity as of March 2025, worldwide

Internal data, cumulative number of verified job seeker accounts on Indeed through March 31, 2025, worldwide. Job seeker accounts that

have a unique, verified email address.

Internal data, cumulative number of Glassdoor registered users for which a profile or resume is available through March 31, 2025,

worldwide.

5

6

7

8

Internal data, hires per minute is a calculation of hired signals per year on Indeed and Glassdoor, divided by minutes per year. A hired

signal refers to the event when a specific job seeker is hired for a specific job on a specific date. Hired signals are counted either when an

employer or job seeker explicitly communicates a hire occurred (e.g., via survey or web form) or when there is other clear evidence from

Indeed and Glassdoor data that a hire occurred (e.g., from a resume or an Indeed message) and may not represent all hires facilitated by

Indeed and Glassdoor.

9

Sum of the estimated size of addressable markets for the job advertising & talent sourcing tools market, the direct hire market and the

retained search market in terms of annual revenue, the estimated size of the addressable market for the internal recruitment automation

market in terms of the amount of current expenses of employers for internal talent acquisition resources that could be reasonably

automated and monetized plus the estimated size of the addressable market for the ATS market and the Background Checks market, and

the addressable markets for the temporary staffing market in terms of annual gross profit plus the estimated size of the addressable

markets for the Talent Platforms, Staffing Platforms, VMS/FMS, MSP, and RPO markets, in each case based on the Company’s estimates

and third party market data as described in the notes below.

10

The estimated size of the HR Matching market in 2023 has been restated from the Company’s initial estimate in the Q4 FY2023 Earnings

Release as of May 15, 2024 based on a revision to the methodology used to estimate the job advertising & talent sourcing tools market and

information that became available after the publication of such initial estimate pertaining to each market listed in the notes below. As

described in detail in the notes below the Company’s initial estimate in the Q4 FY2023 Earnings Release as of May 15, 2024 for the job

advertising & talent sourcing tools market relied on the Company’s estimates using third party reports, internal research and other sources.

The updated estimate relies solely on the SIA report Online Job Advertising Market: 2024 Update. The methodologies changed in that the

share of the Global Staffing Revenue that is attributed to Placement & Search is changed from the 2023 (as May 15, 2024) and 2023

(restated) and calculated on a regional (Americas, EMEA, APAC) basis rather than applying a single global share percentage. Additionally,

as referenced in detail in the notes below, SIA estimated relative composition of the Place & Search market for 2023 between Direct Hire

and Retained Search changed significantly from the publication of Global Staffing Market Estimates and Forecast: November 2023 Update

and the publication of Global Staffing Market Estimates & Forecasts November 2024.

11

Source for 2023 (as of May 15, 2024): Estimated size of the global online Job Advertising and Talent Sourcing Tools Market calculated by

adding together the revenue of HR Technology in the relevant year, the Company’s estimates for revenue of competing job advertising

boards in the Company’s target operating markets in the relevant year based on third party reports and internal research, and the

Company’s estimates for annual revenue of the talent solutions business of LinkedIn in the Company’s target operating markets in the

relevant year based on publicly available information, sell side analyst models, and internal research and in addition the estimated size of

the global offline job advertising market derived based on the proportion of online to offline spending (excluding TV, cinema and radio

advertising) in the overall advertising market in the relevant year based on third party reports and the estimated size of global online job

advertising and talent sourcing tools market. The numbers in this chart are the sum of the global offline job advertising market and global

online job advertising and talent sourcing tools market

Source for 2023 (restated): SIA, Online Job Advertising Market: 2024 Update. The Company has determined that, given the small,

declining size of the global offline job advertising market, it is no longer useful to disclose the size of the global offline job advertising

market.

Source for 2024: SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment Automation (custom

research commissioned by Indeed): January 2025 Update. The Company has determined that, given the small, declining size of the global

offline job advertising market, it is no longer useful to disclose the size of the global offline job advertising market.

12

13

14

Source for 2023 (as of May 15, 2024): SIA, Global Staffing Market Estimates and Forecast: November 2023 Update. Placement & Search

Market is derived by applying 15%, which was Placement & Search’s share of 2023 Global Staffing Revenue to 640 billion US dollars,

which was estimated 2023 Global Staffing Revenue, derived by applying the estimated 2023 -2% growth rate to the estimated 2022 market

of 654 billion US dollars (estimate updated following the May 15th 2023 Earnings Release). Direct Hire Market is defined as a segment of

Placement & Search Market, which in turn is a segment of Global Staffing Industry Market. Direct Hire Market segment was derived by

applying SIA’s Global Staffing Industry Market figure to country-by-country ratios of the relative proportion attributable to this segment within

the total market based on proprietary third party market data. Retained Search Market is defined as the portion of Placement & Search

Market not attributable to the Direct Hire Market and derived as the difference between these two segments.

15

Source for 2023 (restated): SIA, Global Staffing Market Estimates & Forecasts November 2024. Direct Hire Market is defined as a segment

of Placement & Search Market, estimated by SIA to be 98 billion US dollars, which in turn is a segment of Global Staffing Industry Market.

The Direct Hire Market segment was derived by applying SIA’s Global Staffing Industry Market figure to country-by-country ratios of the

relative proportion attributable to this segment within the total market based on proprietary third party market data. Retained Search Market

is defined as the portion of Placement & Search Market not attributable to the Direct Hire Market and derived as the difference between

these two segments. Updates to the ratios used to attribute the Placement & Search Market between Direct Hire and Retained Search are

the primary driver of the change in each of Direct Hire Market and Retained Search Market between the 2023 estimates as of May 15,

2024 and the 2023 updated estimates.

16

Source for 2024: SIA, Global Staffing Market Estimates & Forecasts November 2024. Placement & Search market is derived by applying

15.2%, which was Placement & Search’s share of 2023 Global Staffing Revenue, to the sum product (a) of -9% growth rate from SIA,

America’s Staffing Market Forecast November 2024 applied to 229 billion US dollars, which was America’s Total Staffing market in 2023,

(b) of -2% growth rate applied to 263 billion US dollars, which was EMEA Total Staffing market in 2023, and (c) of 7% growth rate applied to

159 billion US dollars, which was APAC Total Staffing market in 2023, all from SIA, Global Staffing Market Estimates & Forecasts

November 2024. Direct Hire market is defined as a segment of Placement & Search market, which in turn is a segment of Global Staffing

Industry Market. Direct Hire Market segment was derived by applying SIA’s Global Staffing Industry Market figure to country-by-country

ratios of the relative proportion attributable to this segment within the total market based on proprietary third party market data. Retained

Search Market is defined as the portion of Placement & Search Market not attributable to the Direct Hire Market and derived as the

difference between these two segments.

17

Source for 2023 (as of May 15, 2024): derived by applying a gross profit margin of 19.30%, which was calculated based on the weighted

21

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

average of the top 3 publicly traded global staffing companies in terms of revenue in 2023, to 544 billion US dollars, which was the revenue

of the temporary staffing market in 2023 from SIA, Global Staffing Market Estimates and Forecast: November 2023 Update by applying the

estimated -2% growth rate to the updated estimated 2022 market of 555 billion US dollars.

Source for 2023 (restated): derived by applying a gross profit margin of 19.30%, which was calculated based on the weighted average of

the top 3 publicly traded global staffing companies in terms of revenue in 2023, to 551 billion US dollars, which was the restated revenue of

the temporary staffing market in 2023 from SIA Global Staffing Market Estimates & Forecasts November 2024.

18

19

Source for 2024: derived by applying a gross profit margin of 18.72%, which was calculated based on the weighted average of the top 3

publicly traded global staffing companies in terms of revenue in 2024, to 536 billion US dollars, which was the estimated revenue of the

temporary staffing market in 2024. 536 billion US dollars is a sum product (a) of -9% growth rate of the Total Staffing market from SIA,

America’s Staffing Market Forecast November 2024 applied to 206 billion US dollars, which was America's Temporary Staffing market in

2023, (b) of -2% growth rate of the Total Staffing market applied to 225 billion US dollars, which was EMEA Temporary Staffing market in

2023, and (c) of 7% growth rate of the Total Staffing market applied to 120 billion US dollars, which was APAC Temporary Staffing market in

2023, all from SIA, Global Staffing Market Estimates & Forecasts November 2024.

20

Source for 2023 (as of May 15, 2024) and 2023 (restated): SIA, The Evolution of Recruiting: 2024 Update to Estimating the Addressable

Market for Recruitment Automation (custom research commissioned by Indeed): January 2024 Update. SIA’s estimates are based on the

assumption that 41% of historical spending on internal talent acquisition resources could be reasonably captured by current technology and

that technology would result in 37% cost savings from historical spending. In the report, SIA notes given the challenges in making global

estimates with incomplete information, and in estimating potential automation and savings, SIA advises readers to think of the estimated

market size as a midpoint in a range with a 20% spread. This market estimate includes the addition of the ATS market and the Background

Checks market.

21

Source for 2024: SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment Automation (custom

research commissioned by Indeed): January 2025 Update. SIA’s estimates are based on the assumption that 46% of historical spending on

internal talent acquisition resources could be reasonably captured by current technology and that technology would result in 37% cost

savings from historical spending. In the report, SIA notes given the challenges in making global estimates with incomplete information, and

in estimating potential automation and savings, SIA advises readers to think of the estimated market size as a midpoint in a range with a

20% spread. This market estimate includes the addition of the ATS market and the Background Checks market.

As described above, the estimates of the Job Advertising & Talent Sourcing tools market, the Direct Hire market, the Retained Search

market, the Internal Recruitment Automation market and the Temporary Staffing market are based on internal estimates and independent

market research in addition to third party market data. Accordingly, the estimates described above may differ materially from the actual size

of such markets.

22

23

The Talent Platforms market, where companies manage marketplaces that facilitate direct contingent work arrangements that enable a

legal relationship between companies and workers, is estimated by the Company to have been roughly 2 billion US dollars in 2023 and

2024 in terms of annual revenue globally based on SIA, The Evolution of Recruiting: 2024 Update to Estimating the Addressable Market for

Recruitment Automation (custom research commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting: 2025

Update to Estimating the Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January 2025

Update, respectively.

The Staffing Platforms market, where companies manage marketplaces that facilitate automated match of candidates with relevant

temporary assignments, is estimated by the Company to have been roughly 4 billion US dollars in 2023 and 3 billion US dollars in 2024 in

terms of annual revenue globally based on SIA, The Evolution of Recruiting: 2024 Update to Estimating the Addressable Market for

Recruitment Automation (custom research commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting: 2025

Update to Estimating the Addressable Market for Recruitment Automation (customer research commissioned by Indeed): January 2025

Update, respectively.

The Vendor/Freelancer Management Systems (“VMS/FMS”) market, where companies provide technology used to manage a company’s

contingent workforce program, is estimated by the Company to have been roughly 3 billion US dollars in 2023 and 2024 in terms of annual

revenue globally based on SIA, The Evolution of Recruiting: 2024 Update to Estimating the Addressable Market for Recruitment

Automation (custom research commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting: 2025 Update to

Estimating the Addressable Market for Recruitment Automation (customer research commissioned by Indeed): January 2025 Update,

respectively.

The Managed Service Provider (“MSP”) market, where companies provide services associated with management of all or part of a client’s

contingent workforce program through the use of automation, is estimated by the Company to have been roughly 1 billion US dollars in

2023 and 2024 in terms of annual spending by employers that can be reasonably automated and monetized by third parties based on SIA,

The Evolution of Recruiting: 2024 Update to Estimating the Addressable Market for Recruitment Automation (custom research

commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market

for Recruitment Automation (customer research commissioned by Indeed): January 2025 Update, respectively.

The automated Recruitment Process Outsourcing (“RPO”) market, where companies perform the partial or full internal recruitment function

for a third party, from sourcing to onboarding through the use of automation, is estimated by the Company to have been roughly 3 billion US

dollars in 2023 and 2024 in terms of annual spending by employers that can be reasonably automated and monetized by third parties

based on SIA, The Evolution of Recruiting: 2024 Update to Estimating the Addressable Market for Recruitment Automation (custom

research commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting: 2025 Update to Estimating the

Addressable Market for Recruitment Automation (customer research commissioned by Indeed): January 2025 Update, respectively.

ATS market, where companies provide software and other tools to facilitate the tracking of applicants through different stages of the

recruitment process, is estimated by the Company to have been roughly 2 billion US dollars in terms of annual revenue globally in 2023

and 3 billion US dollars in 2024 based on SIA, The Evolution of Recruiting: 2024 Update to Estimating the Addressable Market for

Recruitment Automation (custom research commissioned by Indeed): January 2024 Update and SIA, The Evolution of Recruiting: 2025

Update to Estimating the Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January 2025

Update, respectively.

24

25

26

27

28

29

The Background Checks market, where companies use digitized methods to verify and vet applicants’ background and credentials, is

estimated by the Company to have been roughly 1 billion US dollars in terms of annual internal spending by employers that can be

reasonably automated and monetized by third parties in 2023 and 2024 based on SIA, The Evolution of Recruiting: 2024 Update to

Estimating the Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January 2024 Update and

SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment Automation (custom research

commissioned by Indeed): January 2025 Update, respectively.

22

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Help Businesses Work Smarter - Improve performance and productivity for business clients in Japan

Help Businesses Work Smarter aims to contribute to improving productivity and profitability of the Company’s business clients in Japan, mainly

led by the Marketing Matching Technologies SBU, which provides vertical-specific matching platforms and associated vertical-specific business

support SaaS solutions, as well as business support SaaS solutions called Air BusinessTools, which work across all verticals.

The Help Businesses Work Smarter strategy will be achieved by consolidating business clients’ operations within a single ecosystem, consisting

of vertical matching platforms and SaaS solutions.

In building this ecosystem, the Company has established key performance indicators (KPIs) including "the number of actions by individual

users¹,” "the number of registered SaaS accounts²,” and "the gross payment volume, GPV³."

The number of actions by individual users⁴in FY2024 was approximately 540 million, an increase of 12.3% year over year. Actions by individual

users includes the number of online reservations made on the Company’s salon, restaurant, and lodging matching platforms.

An increase in the number of actions in Marketing Matching Technologies may translate into revenue growth for business clients. By utilizing

action data and matching technology, the Company aims to improve the convenience of its matching platforms and increase the number of

actions across the entire Matching & Solutions SBU.

As of March 31, 2025 the number of registered SaaS accounts was approximately 4.34 million, an increase of 14.7% year over year. The

availability of Air BusinessTools that are not restricted to any specific field, especially AirPAY, a cashless payment service, was a primary driver

of the increase in the number of accounts. AirPAY extends the Company’s services to new businesses outside its existing verticals, such as

retailers. In addition, the number of new business clients who use AirWORK ATS, a recruitment management system increased.

The Company estimates that roughly 4.38 million⁵business locations and stores in Japan are potential users of Air BusinessTools. Assuming

each business location uses multiple SaaS solutions, the Company believes there is still significant opportunity to expand. An increase in the

number of registered accounts represents the expansion of its customer base. The Company expects the customer base of Air BusinessTools to

continue to expand as business clients replace existing manual processes with SaaS solutions.

For FY2024, GPV reached approximately 2.4 trillion yen, an increase of 26.8% year over year. Apart from the increase in the number of AirPAY

registered accounts, the growth in payment volumes is also due to the online payment service offered through AirPAY. The online payment

service is now available for both Hot Pepper Beauty and Hot Pepper Gourmet, following its introduction on Jalan net. This service enables

individual users to make online payments for their salon bookings and restaurant reservations, which enhances payment convenience for

individual users, reduces lost revenue opportunities for business clients, and increases the amount of payment transaction volume flowing

through the Company’s ecosystem.

GPV is important for the future expansion of fintech services, which, the Company believes will become a new potential source of revenue in the

long term. An example of a fintech service is AirCASH, a service allowing business clients to receive cash in advance based on their future

revenue.

By integrating vertical-specific matching platforms with Air BusinessTools SaaS solutions, the Company creates opportunities to engage with

business clients across many business operation services. Additionally, incorporating HR matching services into the Company’s offering will

complete all business operations within its ecosystem, increasing the recurring use of its various products for business clients and ultimately

resulting in greater lifetime value of both individual users and business clients.

_______________________

1

The total of the number of applications on Rikunabi NEXT, TOWNWORK, and RECRUIT AGENT, the number of individual users who were

referred to the Company’s business clients at SUUMO Counter, the number of online reservation on Hot Pepper Beauty, the number of hotel

bookings on Jalan, the number of seats reserved on Hot Pepper Gourmet, and the number of payments through AirPAY during the period

from April 1, 2024 to March 31, 2025.

2

Cumulative number of registered accounts of paid and unpaid SaaS solutions provided by Matching & Solutions SBU in Japan as of March 31,

2025. Registered accounts refer to the number of stores and business locations that have registered for each relevant service including both

active and non-active accounts.

Total gross payment volume of offline payments through AirPAY terminals, including QR code payments through AirPAY QR, and online

3

payments through AirPAY ONLINE (Since the revenue generated from the payment processing fee the Company collects is based on a very

small percentage of total gross payment volume, changes in total gross payment volume are not necessarily proportional to changes in its

total revenue).

The number of individual users retroactively reflects changes in counting methods due to product renewals and other factors.

The Company estimated the number of business locations and stores that can be potential users of SaaS solutions provided by Matching &

4

5

Solutions SBU as of March 31, 2025 in Japan by identifying the total number of business locations and stores of small and medium-sized

enterprises in Japan (using the definition used by Small and Medium Enterprise Agency) based on the 2021 Economic Census for Business

Activity conducted by the Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry. Considering the

solutions (including AirWORK ATS) provided by Matching & Solutions SBU in Japan as of March 31, 2025, the Company now believes it is

possible to provide its SaaS solutions to all business locations and stores of small and medium-sized businesses regardless of the industry.

Accordingly, the Company decided to count all such business locations and stores as potential users of its SaaS solutions. Matching &

Solutions SBU continues to target potential users among small and medium-sized businesses as defined by Small and Medium Enterprise

Agency based on the current major target for potential users of SaaS solutions.

23

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Prosper Together - Seek sustainable growth shared by all stakeholders

The Company believes that it can make a positive impact on society through its corporate activities. In doing so, the Company can prosper

alongside its stakeholders and take a vital step toward achieving long-term, sustainable growth. As the Company announced in May 2021,

environmental, social, and governance goals have become one of the strategic pillars of its corporate strategy. The progress the Company has

made toward these goals is outlined below.

Environmental

The Company anticipates achieving its short-term goal of reaching carbon neutrality throughout its business activities in FY2024¹, as it did in the

past three fiscal years^2,3. The Company’s long-term goal is to achieve carbon neutrality across its entire value chain by FY2030². In order to

accelerate its efforts toward this FY2030 goal, the Company set a greenhouse gas (GHG) absolute reduction target⁴based on its SBTi

Near-Term Target. The Company is on track to surpass its GHG reduction target across all emissions categories, Scopes 1, 2, and 3^2,3in

FY2024. One particular focus was to accelerate the reduction of Scope 3 emissions, which account for more than 95%⁵of the Company’s GHG

emissions. To achieve this, the Company continues working with the partners in its value chain to refine the measurement of GHG emissions

and to identify reduction measures.

In recognition of the Company’s environmental actions, for the second consecutive year, the Company was selected as an “A” list company in

2024 for its leadership in performance on climate change and corporate disclosure transparency by the international nonprofit organization

CDP⁶.

Social

As a leader in the global HR Matching Market, the Company has set two key goals by FY2030 to drive meaningful social impact, centered

around its core business area: work. Work is an indispensable foundation for people's lives, and therefore, the Company is dedicated to opening

up access to employment opportunities for all and reducing the time to get hired.

In order to achieve the first goal of reducing the time it takes to get hired by half by FY2030, the Company introduced the employer Time to Hire

(TTH) metric in May 2024, and continues to deepen its understanding of factors that influence it. The Company has enhanced its TTH

measurement methodology to improve accuracy and actionability—enabling the identification of targeted strategies to reduce TTH at every

stage of the employer hiring journey. Based on this improved methodology, which looks at paid and free job listings on Indeed, the average TTH

was 42 days as of January 2025, up slightly from 41 days⁷in December 2023.

The increase in TTH is presumed to be at least partially attributable to United States macroeconomic conditions. Initial findings suggest that the

U.S. labor force participation rate⁸and TTH are correlated. When the labor force participation rate increases, TTH increases. Additionally, the

U.S. quits rate⁹and TTH are inversely correlated. When the quits rate decreases, TTH increases. The Company observed a pronounced decline

in the U.S. quits rate in 2024, while labor force participation has been gradually increasing post-pandemic.

However, the Company’s research consistently shows that when employers used Indeed’s paid solutions, TTH decreased significantly. Indeed’s

AI-powered features played a key role in accelerating hiring and improving outcomes—even amid a challenging macroeconomic environment.

In a global analysis conducted from January 2024 to January 2025, Sponsored Jobs on Indeed saw a 22% faster TTH compared to those that

were not sponsored. More recently, product innovations have contributed to improved hiring speeds. For example, testing of hosted Premium

Sponsored Jobs in the U.S. has achieved a 58% faster TTH compared to free hosted job listings¹⁰.

The Company aims to continue to advance TTH by introducing innovative AI solutions, streamlining the hiring process, and increasing

automation—making hiring simpler and faster for clients, while supporting sustainable business growth of the Company.

At the same time, traditional hiring practices unintentionally create barriers to employment that cannot be solved by speed and matching

improvements alone. In response, the Company set a second goal of helping 30 million job seekers facing barriers get hired by FY2030. To

achieve this, the Company has been working to break down six common barriers that affect job seekers globally, including education and

disabilities.

Education should not be a limiting factor to employment. However, according to one survey, employers have rejected candidates because they

did not have a post-secondary education, even when the candidate had sufficient skills and experience¹¹. In order to overcome this barrier, the

Company is working to promote adoption of Skills-First Hiring¹²–an approach that evaluates candidates based on the skills they have gained

through training, professional history and other past experience. On Indeed, the Company uses skill information for matching and

recommending candidates to employer job postings based on their skills. Through skills-first hiring, job seekers can represent their full skills and

capacities, and employers can source and evaluate candidates based on the specific skills required for the job. In the future, the Company plans

to expand Skills-First Hiring and leverage AI to enable the Company to offer job seekers personalized career advice, coach them to prepare for

interviews, and advocate on their behalf to employers.

Through these efforts, the Company successfully helped a total of approximately 11.8 million job seekers facing barriers get hired¹³in FY2024.

The Company remains committed to reducing barriers in the job market by promoting inclusive and Skills-First Hiring practices.

Since its founding, the Company has valued the individuality of each employee. Betting on the passion and ideas of employees has long been

the Company’s competitive advantage—which has led to the creation of new businesses and services across the Group. In line with its goal to

achieve gender parity in senior executive positions, managerial positions, and total employees by FY2030¹⁴, the Company is working to expand

the pool of management candidates, for example, by providing employees opportunities to expand their capacity and skills.

Recruit Co., Ltd, which primarily operates in Japan where the gender gap is notably wide, expanded its managerial candidates through a new

coaching-based human capital development program and the clarification of the requirements for management positions. These initiatives

significantly increased the proportion of women among managers¹⁵.

24

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Governance

The Company views a well-balanced Board—comprising members with varied skills, experiences, and backgrounds—as critical to transparent

and sound governance, and high-quality decision-making.

In particular, Recruit Holdings aspires to achieve gender parity among the members of the Board of Directors and Audit and Supervisory Board

by FY2030¹⁶. To achieve the goal, Recruit Holdings continues to consider candidates for the Board of Directors based on the skills and

backgrounds needed to realize its medium- and long-term strategies.

_______________________

1

In this document, the term “FY” refers to Recruit Holdings’ Fiscal Year. “FY” refers to the 12-month period commencing April 1 of the year

indicated, ending on March 31 of the following year.

GHG emissions throughout the Company’s business activities are the sum of direct emissions from the use of fuels in owned or controlled

2

sources and are referred to as Scope 1. Indirect emissions from the use of purchased electricity, heat, or steam in owned or controlled

sources are referred to as Scope 2. GHG emissions from the value chain are referred to as Scope 3, and comprise indirect emissions other

than Scopes 1 and 2. The entire value chain represents the sum of Scopes 1, 2, and 3 GHG emissions. The Company aims to achieve

carbon neutrality upon completion of the following steps: measurement of GHG emissions, obtaining an accredited third-party assurance on

the amount of GHG emissions, and offsetting of those emissions.

3

All GHG emission figures are approximate numbers calculated based on the GHG Protocol. Additionally, independent third-party assurances

have been obtained from SOCOTEC Certification Japan for GHG emissions.

The GHG emission reduction target is based on the results from FY2022 to FY2024.

Based on the emissions of FY2023.

CDP is a charity-controlled non-governmental organization (NGO) established in 2000. It owns one of the world's largest environmental

4

5

6

databases, working with large global financial institutions to disclose the environmental impact of companies in the areas of climate change,

forests and water security.

An employer metric defined as the days elapsed between when a job is created on Indeed and when the first hire is reported for that job.

7

After refining the data, the baseline previously reported as 55 days in the FY2023 Annual Report is updated to 41 days. 41 days is the mean

time to hire (starts from a job creation and ends with the first hire) for measured hires on Indeed in December 2023.

Labor force participation rate is the percentage of the population that is either working or actively looking for work. It measures labor supply,

8

specifically how many are in the system, both employed and unemployed.

Quits rate is the number of quits during the entire month as a percent of employment. It is a measure of how dynamic the labor market is -

9

specifically, of those in the labor market, how many are moving around.

US data from Nov 2024 - Mar 2025, for jobs hosted on the Indeed platform. Premium Sponsored Jobs was rolled out as a test product in the

10

U.S. beginning in November 2024. TTH for US hosted paid jobs using Premium Sponsored Jobs is 58% faster than US hosted non-paid jobs.

Paid job ads are Sponsored Jobs incurring charges, which happen when a job seeker interacts with the job post, such as by clicking to view

the post, or clicking to apply.

11

Source: Accenture, Grads of Life, Harvard Business School (2017), “Dismissed by Degrees: How degree inflation is undermining U.S.

competitiveness and hurting America’s middle class.”

A method of selecting job candidates based on their skillset at an early stage of the hiring process. Unlike the traditional selection method,

12

which first ‘screens out’ candidates based on their academic background, skills-first hiring ‘screens in’ candidates first by evaluating their

skills. The aim is to allow employers to hire people with the right skills and abilities to perform their jobs, all in a shorter period of time.

Represents number of hires made on Indeed reported through the Hired Signal measurement, from May 1, 2021 - March 31, 2025, globally

13

for job seekers who faced at least one of the following common job market barriers: education, criminal record, military experience, disability,

refugee background or lack of work essentials such as a computer or Internet access.

Senior executive positions are defined as Senior Vice Presidents and Corporate Professional Officers of Recruit Holdings and Marketing

14

Matching Technologies SBU, and CEOs of the Company’s major subsidiaries and heads of key functions in the HR Technology and Staffing

SBUs. The respective percentages of women in managerial positions and total employees are calculated from Recruit Holdings, SBU

Headquarters and the primary operating companies of each SBU. Managerial positions mean those that have subordinate employees.

¹⁵Compared to FY2021, the percentage of women managers at Recruit increased from 26.8% to 35.0%, and the percentage of senior managers

increased from 9.1% to 33.3%.

16

The Board of Directors members are defined as Directors and Audit and Supervisory Board members.

Capital Allocation Policy

The Company’s capital allocation policy has the following priorities:

• Investment in product development and marketing expense for existing businesses for future growth

• Continuous payment of stable per-share dividends

• Strategic M&A mainly focused on HR Technology in the HR Matching Market

• Share repurchases, depending on the capital markets environment and the outlook of the Company’s financial position

The Company focuses on achieving capital efficiency by focusing on ROE and applying a hurdle rate exceeding the cost of capital when

evaluating each investment opportunity. ROE in FY2024 was 22.6%¹.

¹ROE = Profit attributable to owners of the parent / average net asset for the fiscal year

6. Basic Rationale for Selection of Accounting Standards

The Company has been actively expanding its business globally, and in order to further accelerate global expansion in the future, the

Company believes it is necessary to reinforce the infrastructure of the Company’s operational management and to improve the ease of

financial information comparisons for participants in global capital markets. Therefore, the Company adopted IFRS in place of Japanese GAAP

at the start of FY2017.

25

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

7. Consolidated Financial Statements and Primary Notes

Consolidated Statement of Financial Position

(In millions of yen)

As of March 31, 2024

As of March 31, 2025

Assets

Current assets

1,136,858

808,625

565,069

18,697

Cash and cash equivalents

549,814

5,608

Trade and other receivables

Other financial assets

Other assets

70,462

77,985

1,762,744

1,470,378

Total current assets

Non-current assets

Property and equipment

Right-of-use assets

Goodwill

66,513

170,366

510,638

185,219

54,897

154,572

508,133

174,977

Intangible assets

Investments in associates and joint

ventures

26,841

17,476

210,271

203,482

8,567

163,102

217,020

Other financial assets

Deferred tax assets

Other assets

11,693

1,381,902

3,144,646

1,301,874

2,772,252

Total non-current assets

Total assets

(In millions of yen)

As of March 31, 2024

As of March 31, 2025

Liabilities and equity

Liabilities

Current liabilities

Trade and other payables

359,856

374

377,543

-

Borrowings

Lease liabilities

Other financial liabilities

Income tax payables

Provisions

44,248

541

44,453

5,011

37,679

17,214

298,965

758,879

53,235

15,437

306,503

802,185

Other liabilities

Total current liabilities

Non-current liabilities

Borrowings

1,020

175,488

556

1,011

163,476

945

Lease liabilities

Other financial liabilities

Provisions

15,059

64,943

111,610

8,186

15,289

63,408

90,465

8,108

Net liability for retirement benefits

Deferred tax liabilities

Other liabilities

376,866

1,135,746

342,706

1,144,892

Total non-current liabilities

Total liabilities

Equity

Equity attributable to owners of the

parent

Common stock

40,000

1,884,258

(407,049)

483,714

40,000

1,606,348

(515,363)

486,596

Retained earnings

Treasury stock

Other components of equity

Total equity attributable to owners of

the parent

2,000,922

1,617,582

7,977

2,008,900

3,144,646

9,777

1,627,360

2,772,252

Non-controlling interests

Total equity

Total liabilities and equity

26

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Consolidated Statement of Profit or Loss

For the Year Ended March 31,

(In millions of yen, unless otherwise

stated)

2024

2025

Revenue

Cost of sales

Gross profit

3,416,492

1,451,961

1,964,530

3,557,478

1,471,834

2,085,644

Selling, general and administrative

expenses

1,521,355

1,558,654

Other operating income

Other operating expenses

Operating income

7,388

48,036

402,526

3,387

39,834

490,542

Share of profit (loss) of associates and

joint ventures

(1,356)

(8,810)

Finance income

Finance costs

55,930

30,859

56,037

10,625

Profit before tax

Income tax expense

Profit for the year

426,241

71,645

354,596

527,143

118,983

408,159

Profit attributable to:

Owners of the parent

Non-controlling interests

Profit for the year

353,654

942

354,596

408,504

(344)

408,159

Earnings per share attributable to owners

of the parent

Basic earnings per share (yen)

Diluted earnings per share (yen)

225.99

222.90

271.44

268.32

27

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Consolidated Statement of Comprehensive Income

For the Year Ended March 31,

(In millions of yen)

2024

2025

354,596

408,159

Profit for the year

Other comprehensive income

Items that will not be reclassified to profit or loss:

Net change in equity instruments measured at

fair value through other comprehensive

income

Remeasurements of defined retirement benefit

plans

5,396

(17,350)

2,063

(1,704)

Share of other comprehensive income of

associates and joint ventures

126

(2,310)

3,819

(17,598)

Subtotal

Items that may be reclassified subsequently to

profit or loss:

Exchange differences on translation of foreign

operations

Effective portion of changes in fair value of

cash flow hedges

197,045

(63)

(7,418)

-

Net change in debt instruments measured at

fair value through other comprehensive

income

-

(9)

196,981

200,801

555,397

(7,427)

(25,025)

383,134

Subtotal

Other comprehensive income (loss) for the year,

net of tax

Comprehensive income for the year

Comprehensive income attributable to:

Owners of the parent

553,909

1,488

383,161

(27)

Non-controlling interests

Total comprehensive income

555,397

383,134

28

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Consolidated Statement of Changes in Equity

For the Year Ended March 31, 2024

Equity attributable to owners of the parent

Other components of equity

Exchange

differences

on

translation

of foreign

operations

198,859

Effective

portion of

changes in

fair value of

cash flow

hedges

Common

stock

Share

premium

Retained

earnings

Treasury

stock

Share-based

payments

(In millions of yen)

Balance as of April 1, 2023

Profit (loss) for the year

Other comprehensive

income

Comprehensive income for

the year

40,000

33,754

1,711,350

353,654

(432,612)

75,595

63

196,612

(63)

-

353,654

3,705

-

Transfer from other

components of equity to

retained earnings

Purchase of treasury

stock

(104)

23,720

(218,812)

48,543

Disposal of treasury

stock

(70,750)

Retirement of treasury

stock

(195,832)

195,832

Transfer from retained

earnings to share

premium

149,074

(149,074)

(35,377)

Dividends

Share-based payments

Equity transactions with

non-controlling interests

Transactions with owners -

total

83,397

(10,613)

(33,754)

-

(180,746)

1,884,258

25,563

12,647

88,242

-

Balance as of March 31,

2024

40,000

(407,049)

395,471

29

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Equity attributable to owners of the parent

Other components of equity

Net change

in equity

Remeasure-

instruments

ments of

Net change

in debt

instruments

Non-controlling

Total equity

interests

measured at measured at

defined

retirement

benefit

Total

fair value

through

other

comprehen-

sive income

fair value

through

other

comprehen-

sive income

Total

plans

(In millions of yen)

Balance as of April 1, 2023

Profit (loss) for the year

Other comprehensive

income

-

274,517

-

1,627,010

353,654

13,939

942

1,640,949

354,596

-

5,409

(1,704)

200,254

553,909

546

200,801

555,397

Comprehensive income for

the year

1,488

Transfer from other

components of equity to

retained earnings

Purchase of treasury

stock

Disposal of treasury

stock

Retirement of treasury

stock

(5,409)

1,704

(3,705)

-

(70,750)

-

(218,917)

1,514

-

1,514

-

Transfer from retained

earnings to share

premium

-

Dividends

-

(35,377)

83,397

(35,377)

83,397

Share-based payments

Equity transactions with

non-controlling interests

Transactions with owners -

total

83,397

-

8,941

(10,613)

(179,997)

2,000,922

(7,450)

7,977

(18,064)

(187,447)

2,008,900

-

(5,409)

-

1,704

-

Balance as of March 31,

2024

483,714

30

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

For the Year Ended March 31, 2025

Equity attributable to owners of the parent

Other components of equity

Exchange

differences

on

translation

of foreign

operations

395,471

Effective

portion of

changes in

fair value of

cash flow

hedges

Common

stock

Share

premium

Retained

earnings

Treasury

stock

Share-based

payments

(In millions of yen)

Balance as of April 1, 2024

Profit (loss) for the year

Other comprehensive

income

40,000

-

1,884,258

408,504

(407,049)

88,242

-

(7,484)

-

Comprehensive income for

the year

-

408,504

(17,849)

-

Transfer from other

components of equity to

retained earnings

Purchase of treasury

stock

(563)

28,347

(823,674)

54,655

Disposal of treasury

stock

(82,228)

Retirement of treasury

stock

(660,705)

660,705

Transfer from retained

earnings to share

premium

632,921

(632,921)

(35,642)

Dividends

Share-based payments

Equity transactions with

non-controlling interests

Transactions with owners -

total

92,605

-

(686,413)

1,606,348

(108,313)

(515,363)

10,376

98,619

-

Balance as of March 31,

2025

40,000

387,986

31

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Equity attributable to owners of the parent

Other components of equity

Net change

in debt

in equity

instruments

measured at measured at

fair value

through

other

instruments Remeasure-

Non-controlling

Total equity

interests

ments of

defined

retirement

benefit plans

Total

fair value

through

Total

other

comprehen-

sive income

comprehen-

sive income

(In millions of yen)

Balance as of April 1, 2024

Profit (loss) for the year

Other comprehensive

income

-

483,714

-

2,000,922

408,504

7,977

(344)

2,008,900

408,159

(9)

(19,912)

2,063

(25,343)

383,161

317

(27)

(25,025)

383,134

Comprehensive income for

the year

Transfer from other

components of equity to

retained earnings

Purchase of treasury

stock

Disposal of treasury

stock

Retirement of treasury

stock

19,912

(2,063)

17,849

-

(82,228)

-

(824,238)

774

-

774

-

Transfer from retained

earnings to share

premium

-

Dividends

-

(35,642)

92,605

(35,642)

92,605

Share-based payments

Equity transactions with

non-controlling interests

Transactions with owners -

total

92,605

-

28,225

-

(766,500)

1,617,582

1,826

9,777

1,826

(764,674)

1,627,360

-

19,912

-

(2,063)

-

Balance as of March 31,

2025

(9)

486,596

32

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Consolidated Statement of Cash Flows

For the Year Ended March 31,

2024 2025

(In millions of yen)

Cash flows from operating activities

Profit before tax

426,241

117,481

79,368

527,143

109,237

80,429

Depreciation and amortization

Share-based payment expenses

Interest and dividend income

(Increase) decrease in trade and other receivables

Increase (decrease) in trade and other payables

Other

(41,410)

10,459

(33,044)

(15,784)

18,963

(5,114)

62,235

7,904

Subtotal

649,262

41,489

694,849

34,676

Interest and dividends received

Interest paid

(5,364)

(150,024)

535,362

(5,362)

(113,800)

610,363

Income taxes paid

Net cash provided by operating activities

Cash flows from investing activities

Payment for purchase of property and equipment

Payment for purchase of intangible assets

Payment for purchase of investments

Proceeds from sale and redemption of investments

Other

(11,137)

(58,792)

(981)

(7,951)

(57,306)

(16,360)

26,708

4,869

(2,747)

(68,789)

(6,145)

Net cash used in investing activities

(61,054)

Cash flows from financing activities

Repayments of long-term borrowings

Redemption of bonds

(12,912)

(20,000)

(46,802)

(218,928)

(35,374)

-

Repayments of lease liabilities

Payment for purchase of treasury stock

Dividends paid

(44,547)

(824,465)

(35,644)

Payments for acquisition of interests in subsidiaries

from non-controlling interests

(18,694)

-

16,528

1,536

22,096

2,080

Proceeds from settlement of derivatives

Other

Net cash used in financing activities

(334,648)

(880,480)

Effect of exchange rate changes on cash and cash

equivalents

127,563

2,938

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

259,488

877,370

(328,233)

1,136,858

808,625

1,136,858

33

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

Going Concern Assumption

Not applicable.

Notes to Consolidated Financial Statements

1. Operating Segments

(1) Overview of Reportable Segments

The Company’s operating segments are components of the Company for which discrete financial information is available and whose operating

results are reviewed regularly by the Board of Directors to decide on the allocation of operating resources and to assess business

performance. The Company has three operating segments by type of business, HR Technology, Matching & Solutions, and Staffing, which are

also the reportable segments.

HR Technology consists of three operations, the US, Europe and Others and Japan. Matching & Solutions consists of two operations, HR

Solutions and Marketing Solutions. Staffing consists of two operations, Japan, and Europe, US and Australia.

(2) Information on Reportable Segments

Segment profit (loss) denotes adjusted EBITDA (operating income + depreciation and amortization (excluding depreciation of right-of-use

assets) + share-based payment expenses ± other operating income/expenses).

Revenue from external customers in Adjustments includes revenue that is not allocated to a specific reportable segment, and segment profit

(loss) in Adjustments includes corporate expenses not allocated to any reportable segments. Corporate expenses consist primarily of general

and administrative expenses that are not allocable to the segments. Intersegment revenue or transfers are calculated based on a price used in

similar transactions with third parties. Segment assets and liabilities are not stated as they are not subject to review for the purpose of deciding

on the allocation of operating resources and assessing business performance.

34

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

For the Year Ended March 31, 2024

Reportable Segment

Adjustments

Consolidated

HR

Technology

Matching &

Solutions

Staffing

Total

(In millions of yen)

Revenue

Revenue from external

customers

1,009,421

2,398

797,032

1,607,694

26,544

3,414,149

39,752

2,343

3,416,492

-

Intersegment revenues

or transfers

10,810

(39,752)

Total

1,011,820

344,390

807,842

163,665

1,634,239

97,947

3,453,901

606,003

(37,409)

(7,606)

3,416,492

598,397

Segment profit (loss)

Depreciation and

amortization (Note)

75,854

Share-based payment

expenses

79,368

7,388

Other operating income

Other operating

expenses

48,036

402,526

Operating income

Share of profit (loss) of

associates and joint

ventures

(1,356)

Finance income

Finance costs

55,930

30,859

Profit before tax

426,241

Note: Depreciation and amortization exclude depreciation of right-of-use assets.

For the Year Ended March 31, 2025

Reportable Segment

Adjustments

Consolidated

HR

Technology

Matching &

Solutions

Staffing

Total

(In millions of yen)

Revenue

Revenue from external

customers

1,124,281

2,283

783,282

32,731

1,641,385

25,608

3,548,949

60,623

8,528

3,557,478

-

Intersegment revenues

or transfers

(60,623)

Total

1,126,565

404,113

816,013

185,957

1,666,994

97,460

3,609,573

687,531

(52,095)

(8,642)

3,557,478

678,889

Segment profit (loss)

Depreciation and

amortization (Note)

71,470

Share-based payment

expenses

80,429

3,387

Other operating income

Other operating

expenses

39,834

490,542

Operating income

Share of profit (loss) of

associates and joint

ventures

(8,810)

Finance income

Finance costs

56,037

10,625

Profit before tax

527,143

Note: Depreciation and amortization exclude depreciation of right-of-use assets.

35

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

2.Treasury Stock

Treasury stock recognized in the Consolidated Statement of Financial Position includes Recruit Holdings’ shares held by the BIP trust and the

ESOP trust.

The breakdown of treasury stock is as follows:

FY2023

FY2024

Number of shares

(shares)

Number of shares

(shares)

(In millions of yen, unless otherwise

stated)

Carrying amount

Treasury stock directly held by

Recruit Holdings

50,413,104

54,788,017

214,070

36,408,381

60,788,181

280,932

Recruit Holdings’ shares held by the

BIP trust and the ESOP trust

192,979

407,049

234,430

515,363

Total

105,201,121

97,196,562

Note: Changes in the number of shares of treasury stock directly held by Recruit Holdings for FY2024 resulted mainly from the increase of

91,941,000 shares from the purchase of treasury stock, the decrease of 85,929,800 shares from the retirement of treasury stock, and the

decrease of 20,000,000 shares from the transfer to the ESOP trust. Changes in the number of Recruit Holdings’ shares held by the BIP

trust and the ESOP trust for FY2024 resulted from the increase of 500,000 shares from the purchase of Recruit Holdings’ shares by such

trusts, the increase of 20,000,000 shares due to transfer from treasury stock directly held by Recruit Holdings, and the decrease of

14,499,836 shares from the sale and delivery of Recruit Holdings’ shares by such trusts.

3. Per Share Information

(1) The amount of basic earnings per share and the basis for its calculation are as follows:

For the Year Ended March 31,

(In millions of yen, unless otherwise

stated)

2024

2025

Basic earnings per share (yen)

Basis for calculation:

225.99

271.44

Profit attributable to owners of the

parent

353,654

-

408,504

-

Amount not attributable to common

shareholders of the parent

Profit used in the calculation of basic

earnings per share

353,654

408,504

Weighted average number of shares

of common stock outstanding

(thousand shares)

1,564,947

1,504,932

36

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

(2) The amount of diluted earnings per share and the basis for its calculation are as follows:

For the Year Ended March 31,

(In millions of yen, unless otherwise

stated)

2024

2025

Diluted earnings per share (yen)

Basis for calculation:

222.90

268.32

Profit used in the calculation of diluted

earnings per share

Profit used in the calculation of basic

earnings per share

353,654

-

408,504

-

Adjustment on profit

Profit used in the calculation of diluted

earnings per share

353,654

408,504

Weighted average number of shares of

common stock outstanding used in the

calculation of diluted earnings per share

Weighted average number of shares of

common stock outstanding used in the

calculation of basic earnings per share

(thousand shares)

1,564,947

1,504,932

Effect of dilutive potential common

stock (thousand shares)

Stock options

956

1,765

2,848

Board Incentive Plan (“BIP”) trust

2,420

Employee Stock Ownership Plan

(“ESOP”) trust

18,252

12,913

Weighted average number of shares of

common stock outstanding used in the

calculation of diluted earnings per

share (thousand shares)

1,586,576

1,522,460

4.Significant Subsequent Events

(1) Changes in Reportable Segment Structures

The Company has three operating segments by type of business, HR Technology, Matching & Solutions, and Staffing, which are also the

reportable segments. Starting from the fiscal year ending March 31, 2026, in order to accelerate the progress of the Company’s business

strategy, "Simplify Hiring," HR Technology and the HR Solutions business of Matching & Solutions will be integrated and operated together

under HR Technology.

Due to this change in the governance structure, the Company has transferred its HR Solutions business, previously included in Matching &

Solutions, into HR Technology, effective April 1, 2025. Matching & Solutions, which was previously composed of two business areas, HR

Solutions and Marketing Solutions, will consist solely of Marketing Solutions following this change. Furthermore, from the fiscal year ending

March 31, 2026, the segment name of the Matching & Solutions will be changed to Marketing Matching Technologies.

Information on the revenue for each reportable segment for the fiscal year ended March 31, 2025 based on the changed reportable segments

is as follows. Information regarding the segment profit or segment loss is currently being calculated.

Information on Reportable Segments

For the Year Ended March 31, 2025

Reportable Segment

Marketing

Matching

Technologies

HR

Technology

Staffing

Total

Adjustments

Consolidated

(In millions of yen)

Revenue

Revenue from external

customers

1,368,902

1,641,385

538,662

3,548,949

8,528

3,557,478

Intersegment revenues

or transfers

3,350

25,608

856

29,815

(29,815)

(21,287)

-

1,372,252

1,666,994

539,518

3,578,765

3,557,478

Total

37

Recruit Holdings Co., Ltd. (TSE 6098)

Consolidated Financial Results for FY2024

(2) Share Repurchase

On February 28, 2025, the Company’s Board of Directors resolved to conduct share repurchases of its common stock (the “Purchases”),

pursuant to the provisions of Article 156 of the Companies Act as applied by replacing certain terms pursuant to the provisions of Article 165,

Paragraph 3 of the said Act, and has conducted the Purchases as follows.

Furthermore, in light of stock market trends, the Company’s Board of Directors resolved on April 25, 2025 to revise the total number of shares

to be repurchased.

Reasons for the Purchases

The Company’s primary use of capital is to invest in its long-term business strategy in order to achieve sustainable profit growth and increase

enterprise value.

After considering several factors including the ability to make strategic business investments, the current stock price, market conditions, and

the forecast of our financial position, the Company has determined that acquiring its own shares is the best way to further improve capital

efficiency and to maximize shareholder returns. This approach is in line with the Company’s existing capital allocation policy.

The shares acquired through the Purchases may be used in the future for the delivery of shares upon the exercise of stock acquisition rights,

for stock compensation using the Company’s common stock for employees of the Company, or for strategic M&A with the Company’s

common stock as consideration, as well as may be retired.

Details of the resolution by the Board of Directors

(Revised sections are underlined)

After revision

(Resolution by the Board of Directors on

April 25, 2025)

Before revision

(Resolution by the Board of Directors on

February 28, 2025)

Type of shares to be repurchased

Common shares of Recruit Holdings

52,000,000 shares (Maximum)

Common shares of Recruit Holdings

62,000,000 shares (Maximum)

Total number of shares to be repurchased

Total purchase price

450,000 million yen (Maximum)

From March 3, 2025 to December 23,

2025

450,000 million yen (Maximum)

From March 3, 2025 to December 23,

2025

Repurchase period

(1) Market purchases on Tokyo Stock

Exchange, Inc. through an appointed

securities dealer with transaction

discretion

(1) Market purchases on Tokyo Stock

Exchange, Inc. through an appointed

securities dealer with transaction

discretion

Method of repurchases

(2) Purchases through Off-Auction Own

Share Repurchase Trading System

(ToSTNeT-3)

(2) Purchases through Off-Auction Own

Share Repurchase Trading System

(ToSTNeT-3)

Details of common shares repurchased on and after April 1, 2025

Type of shares repurchased:

Total number of shares repurchased:

Total purchase price:

Shares of common stock of Recruit Holdings

26,990,500 shares

204,945 million yen

Acquisition period:

From April 1, 2025 to April 30, 2025 (delivery date basis)

Total number of common shares repurchased pursuant to the Board of Directors resolution described above (As of April 30, 2025)

Type of shares repurchased:

Total number of shares repurchased:

Total purchase price:

Shares of common stock of Recruit Holdings

41,599,200 shares

333,315 million yen

38