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This document has been translated from the original document in Japanese (“Yukashouken Houkokusho”), which is legally
required for Recruit Holdings as a listed company in Japan to support investment decisions by providing certain information
about the Company for the fiscal year ended March 31, 2026 (“FY2025”), under Article 24, Paragraph 1 of the Financial
Instruments and Exchange Act of Japan.
The Japanese original document was filed to the Director-General of the Kanto Local Finance Bureau in Japan on June 19,
2026. Please refer to “Note Regarding Reference Translation” below as a general warning for this translation document.
Document Name
Annual Report translated from Yukashouken Houkokusho
Filing Date
June 19, 2026
Fiscal Year
FY2025 (From April 1, 2025 to March 31, 2026)
Company Name in English
Recruit Holdings Co., Ltd.
Title and Name of Representative
Hisayuki Idekoba
Representative Director, President and Chief Executive Officer
Address of Head Office
1-9-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
Telephone Number
+81-3-3511-6383
Contact Person
Junichi Arai
Executive Vice President and Chief Financial Officer
Contact Location
1-9-2 Marunouchi, Chiyoda-ku, Tokyo, Japan
Definition of Abbreviations
Abbreviation
Definition
Recruit Holdings, the Holding Company
Recruit Holdings Co., Ltd. on a standalone basis
the Company, Recruit Group, We, Our
Recruit Holdings Co., Ltd. and its consolidated subsidiaries
SBU
Strategic Business Unit
BIP Trust
Board Incentive Plan Trust
Q1
Three-month period from April 1 to June 30
Q2
Three-month period from July 1 to September 30
Q3
Three-month period from October 1 to December 31
Q4
Three-month period from January 1 to March 31
FY2023
Fiscal year from April 1, 2023 to March 31, 2024
FY2024
Fiscal year from April 1, 2024 to March 31, 2025
FY2025
Fiscal year from April 1, 2025 to March 31, 2026
FY2026
Fiscal year from April 1, 2026 to March 31, 2027
Definition of EBITDA+S
EBITDA+S: Operating income + depreciation and amortization (excluding depreciation of right-of-use assets) + share-based payment
expenses ± other operating income/expenses
Average Exchange Rate During The Period
(In yen)
FY2024
FY2025
144.59
152.62
156.75
163.88
95.06
99.60
Supplementary Information
All comparisons in this report are year over year unless otherwise stated.
The names of the companies in this document are as of March 31, 2026, unless otherwise indicated.
Forward-Looking Statements
This document contains forward-looking statements, which reflect the Company's assumptions, estimates and outlook for the future
based on the Company's plans and expectations as of March 31, 2026 unless the context otherwise indicates. There can be no
assurance that the relevant forward-looking statements will be achieved. Please note that significant differences between such
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 enterprise 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).
Table of contents
Company Overview
1
Key Performance Indicators
1
History
3
Business
7
Major Subsidiaries and Associates
10
Business Overview
12
Management Philosophy and Strategies
12
Sustainability Policy and Actions
19
Risk Factors
29
Management’s Discussion and Analysis of Financial Position, Results of Operations,
and Cash Flows
46
Material Contracts
48
Research and Development
48
Facilities
49
Overview of Capital Expenditures
49
Status of Major Facilities
49
Facility Establishment and Disposal Plans
50
Status of Shares, Acquisition of Treasury Stock and Dividend Policy
51
Status of Shares
51
Status of Acquisition of Treasury Stock
67
Basic Policy on Profit Distribution and Dividends
69
Corporate Governance
70
Corporate Governance Overview
70
Leadership
89
Status of Audits
107
Compensation
112
Stocks Held by the Company
118
Employees
122
Basic Policy on Human Resource Strategy, etc.
122
Employees
122
Financial Information
126
Consolidated Financial Statements and Notes
126
Non-consolidated Financial Statements and Notes
176
Other Information
190
Outline of Share-related Administration of the Company
190
Information on the Parent Company of the Holding Company
191
Other Reference Information
191
Information on the Guarantor of the Holding Company
194
Independent Auditor’s Reports
195
Company Overview
Key Performance Indicators
The Company - Consolidated Basis
(In millions of yen, unless otherwise stated)
Fiscal year
IFRS
FY2021
FY2022
FY2023
FY2024
FY2025
Fiscal year end
March 2022
March 2023
March 2024
March 2025
March 2026
Revenue
2,871,705
3,429,519
3,416,492
3,557,478
3,697,351
Profit before tax
382,749
367,767
426,241
527,143
644,618
Profit for the year
297,722
271,671
354,596
408,159
496,680
Profit attributable to owners of the
parent
296,833
269,799
353,654
408,504
496,912
Comprehensive income attributable
to owners of the parent
395,869
377,977
553,909
383,161
617,095
Equity attributable to owners of the
parent
1,363,776
1,627,010
2,000,922
1,617,582
1,583,321
Total assets
2,423,542
2,793,281
3,144,646
2,772,252
2,789,018
Equity attributable to owners of the
parent per share (Yen)
847.45
1,030.33
1,295.40
1,102.86
1,134.01
Basic earnings per share (Yen)
181.68
168.59
225.99
271.44
349.78
Diluted earnings per share (Yen)
180.83
167.44
222.90
268.32
347.59
Ratio of equity attributable to
owners of the parent (%)
56.3
58.2
63.6
58.3
56.8
Return on equity attributable to
owners of the parent (%)
24.2
18.0
19.5
22.6
31.0
Price earnings ratio (Times)
29.8
21.6
29.7
28.2
18.7
Cash flows from operating activities
439,610
438,193
535,362
610,363
669,431
Cash flows from investing activities
(70,738)
(32,676)
(68,789)
(61,054)
(49,742)
Cash flows from financing activities
(254,371)
(252,060)
(334,648)
(880,480)
(743,478)
Cash and cash equivalents at the
end of the year
669,551
877,370
1,136,858
808,625
725,578
Number of employees2
51,757
58,493
51,373
49,480
45,586
Average number of contract
employees
1,896
1,915
1,952
1,591
1,464
1 The consolidated financial statements have been prepared based on IFRS as issued by the International Accounting Standards Board.
2 The number of employees excludes contract employees.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 1
The Holding Company - Standalone Basis
(In millions of yen, unless otherwise stated)
Fiscal year
FY2021
FY2022
FY2023
FY2024
FY2025
Fiscal year end
March 2022
March 2023
March 2024
March 2025
March 2026
Operating revenue
42,029
417,404
153,932
615,773
705,295
Ordinary income
33,978
406,315
139,488
603,655
687,461
Net income
23,996
410,423
126,116
604,616
681,318
Common stock
40,000
40,000
40,000
40,000
40,000
Total number of shares
issued (Shares)
1,695,960,030
1,695,960,030
1,649,841,949
1,563,912,149
1,472,504,149
Equity
672,979
926,772
879,782
693,373
735,524
Total assets
1,423,107
1,666,307
1,768,645
1,654,348
1,607,077
Equity per share (Yen)
417.09
585.40
567.58
470.02
523.42
Dividend per share (Yen)
21
22
23
24
25
Interim dividend per share
(Yen)
10.5
11.0
11.5
12.0
12.5
Earnings per share (Yen)
14.69
256.47
80.59
401.76
479.59
Diluted earnings per share
(Yen)
14.62
254.72
79.49
397.13
476.58
Capital adequacy ratio (%)
47.2
55.5
49.6
41.7
45.5
Return on equity (%)
3.3
51.4
14.0
77.2
95.9
Price earnings ratio (Times)
368.6
14.2
83.2
19.1
13.6
Payout ratio (%)
143.0
8.6
28.5
6.0
5.2
Number of employees1
136
128
119
116
130
Average number of contract
employees
5
5
5
5
5
Total shareholder return (%)
100.6
68.4
125.4
143.4
123.0
Comparative indicator:
TOPIX total return index (%)
102.0
107.9
152.5
150.2
202.2
Highest share price (Yen)2
8,180
5,676
6,767
11,895
9,563
Lowest share price (Yen)2
4,435
3,284
3,583
6,011
6,040
1 The number of employees excludes contract employees.
2 The highest and lowest share prices are those quoted on the First Section of the Tokyo Stock Exchange before April 3, 2022, and on
the Prime Market of the Tokyo Stock Exchange after April 4, 2022.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 2
History
March 1960
Foundation. Started as an advertising agency specializing in job ads in university newspapers.
1962
Published Invitation to Companies which consolidated recruitment information for university
students and established the two-sided marketplace business model.
August 1963
Japan Recruit Center, Inc. was established, a predecessor to today’s Recruit Holdings Co., Ltd.
1968
Introduced the IBM 1130 Computing System, becoming the first company in Japan to use this
groundbreaking computer.
1971
Established Recruit Computer Print, a company specializing in digitized pre-production
processes focused on adopting leading-edge publishing technologies.
1976
Launched operations in the housing information industry in response to the oil crisis induced
recession, and achieved rapid growth.
1980
Launched Travail, Japan’s first career change magazine for women, published 5 years prior to
Japan’s legislative enactment of The Equal Employment Opportunity Law.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 3
Organizational
Transitions
The Company was founded in March 1960 in Minato-ku, Tokyo, Japan as the University Newspaper
Advertising Company, publishing job advertisements in university newspapers. Following that, we
began handling advertising for multiple university newspapers, and in October 1960, we established the
University Advertising Co., Ltd. as a corporate organization. In 1962, we launched our publication
Invitation to Companies, and in April 1963 changed the company name to the Japan Recruitment
Center, Inc. In August 1963, the company name was further updated to Japan Recruit Center, Inc, a
predecessor to today’s Recruit Holdings, Co., Ltd. Please refer to the timeline below for further
information regarding organizational transitions.
Business Fields
Expansion
Recruit Group was established in 1960 as a job search magazine for university students. In 1962, we
developed the “Ribbon Model,” our guiding business model in which we create platforms that connect
business clients with individual users. With this model, we have since widened our range of HR
businesses to meet mid-career recruiting, placement, and staffing needs. We have also expanded into
the life events and lifestyle fields to serve the housing, automobile, bridal, travel, dining, and beauty
industries. Recently, we have introduced software as a service (“SaaS”) business tools to support
operations within small and medium-sized enterprises (“SMEs”), such as retailers and restaurants.
Digital
Transformation
The Company began using computers at a time when their use was still limited, putting digitization into
practice for increased efficiency. Following the introduction of a supercomputer in the 1980s, we
transitioned from paper magazines to online media in the 1990s, and then to mobile platforms. Not only
did this allow for faster and more convenient delivery of information, but it also transformed how
individual users and business clients interact, through the development of groundbreaking tools such as
online reservation systems andSaaS solutions.
Globalization
In the 2000s, the Company entered the global market with a bridal business in China. Although this
ended with a withdrawal, this experience helped us to shape our mergers and acquisitions (“M&A”)
strategy, and later succeeded in expanding our staffing businesses to the US, Europe, Australia and
beyond. Further, the acquisitions of Indeed, Inc.1 in 2012 and Glassdoor LLC1 in 2018 have led to the
successful establishment of our HR Technology SBU, spearheading the growth of the Company as a
whole and bringing the number of countries and regions we serve to over 60.
Evolution of
Matching Platforms
The Company has transformed its business from a traditional advertising-based media model into a
technology-driven two-sided marketplace business model, which facilitates the best possible matches
for the mutual benefit of both individual users and business clients. Through HR Technology and
Staffing, the Company aims to streamline hiring processes under the Simplify Hiring strategy. In
Marketing Matching Technologies, under the Help Businesses Work Smarter strategy, the Company
builds an ecosystem that supports the operations of corporate clients through matching platforms and
SaaS solutions, aiming to enhance their productivity and profitability. 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 developed based on the expertise cultivated within
the Recruit Group.
April 1984
Changed the company name to Recruit Co., Ltd.
1984
Launched the magazine Car Sensor. It was born from a training program for new employees and
focused on the used car market.
1985
Against the backdrop of the privatization of Japan’s telecommunications industry, launched
Information Network Service operations and Remote Computing Service operations.
1985
Established Recruit U.S.A. Inc. to support Japanese companies with local hiring in the US.
1987
Established the Supercomputer Research Institute, aimed at developing insights into how to
meet the challenges and opportunities of the approaching era of a data-driven society.
1990
Launched Jalan, a magazine about travel and leisure optimized for easier booking.
1993
Launched Zexy, a bridal information magazine born from our new internal business proposal
system, “Ring.”
1995
Launched Mix Juice (Currently2 ISIZE) marking the start of our online media business.
1996
Digitized our job information magazines and launched RB on the NET (Currently2 Rikunabi) and
Digital B-ing (Currently2 Rikunabi Next).
2000
While the Company expanded its businesses in the field of life events such as housing and
bridal, it also launched lifestyle information magazine HotPepper (Currently2 Hot Pepper
Gourmet) which contains dining guides and coupons.
2000
Launched ISIZE Travel (Currently2 Jalan net), a platform for making accommodation
reservations online.
2004
Launched the bridal information magazine Zexy in China. This experience helped the Company
shape M&A strategy for global expansion.
2007
Launched Hot Pepper Beauty, an online beauty salon appointment reservation service.
January 2008
Moved the headquarters to Gran Tokyo SOUTH TOWER (Marunouchi 1-9-2, Chiyoda-ku, Tokyo,
Japan)
July 2010
Acquired US-based staffing company, The CSI Companies, Inc.1 and implemented our Unit
Management System. With this acquisition, we began M&A-driven global expansion.
2011
Launched Juken Sapuri (Currently2 Study Sapuri), an online learning service for college
entrance exams, then expanded into languages and other subjects, successfully growing into an
affordable high-quality online learning platform.
2011
Acquired Staffmark Group, LLC1 in October, Advantage Resourcing Europe B.V. in December
and expanded our staffing business in the US and Europe.
2012
Developed SALON BOARD, a cloud-based online reservation management system that
improves operational efficiency at beauty salons through digitization, replacing paper-based
reservation books.
October 2012
Through an incorporation-type split the Company became a holding company, Recruit Holdings
Co., Ltd., and established the following companies:
- Recruit Sumai Company Ltd.
- Recruit Marketing Partners Co., Ltd.
- Recruit Lifestyle Co., Ltd.
- Recruit Technologies Co., Ltd.
Through a joint incorporation-type split by Recruit Office Support Co., Ltd.1 newly established:
- Recruit Administration Co., Ltd. (Currently2 Recruit Co., Ltd.)1
Through an absorption-type split, transferred businesses to the following 100% subsidiaries of
the Company:
- Recruit Career Co., Ltd.(Former Recruit Agent Co., Ltd.)
- Recruit Jobs Co., Ltd.(Former Recruit HR Marketing)
- Recruit Communications Co., Ltd.(Former Recruit Media
Communications Co., Ltd.)
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 4
October 2012
Acquired Indeed, Inc.1 (founded in 2004), a job search engine based in the US. This marked our
full entry into the HR technology business, which has since revolutionized the HR industry
through disruptive digital innovation.
2013
Released AirREGI, a point of sale (POS) system for SMEs of various industries such as retailers
and restaurants, using smartphones and tablets to enhance operational efficiency of their
businesses.
October 2014
Listed publicly on the First Section of the Tokyo Stock Exchange.
2015
Expanded AirREGI’s functions and also launched AirPAY, a payment system service that
accepts various payment methods including credit cards, electronic money, and QR Codes3.
2015
Established Recruit Institute of Technology (Currently2 Megagon Labs) to work with external
organizations on research and development of AI, machine learning, and other new
technologies.
2015
Acquired the staffing companies Peoplebank Australia Ltd1 in January and Chandler Macleod
Group Limited1 in April, companies with leading market positions and strong business
fundamentals in the Australian market.
2016
Launched Indeed Hire, an innovative recruitment service that goes beyond the job
advertisement business.
June 2016
Acquired USG People Holdings B.V. (Currently2 RGF Staffing B.V.)1, a leading European staffing
company with a presence in the Netherlands, France, Germany, and Belgium among other
countries, marking our full entry into Europe.
April 2018
Reorganized the Company and established a managing company for each SBU that oversees
the operation of its subsidiary companies:
- HR Technology SBU: RGF OHR USA, Inc.1
- Matching & Solutions SBU: Recruit Co., Ltd.1
(Former Recruit Administration)
- Staffing SBU: Recruit Global Staffing B.V.
(Currently2 RGF Staffing B.V.)1
2018
Launched AirSHIFT, a system for the management of shift work using a SaaS solution, thereby
contributing to operational efficiency in the service industry where labor shortages are a major
problem.
June 2018
Acquired Glassdoor, Inc.(Currently2 Glassdoor LLC)1, a leading online job and company
information site founded in the US in 2007. Glassdoor has developed a database of information
and reviews posted by users, bringing transparency to the job seeking process and
strengthening our HR Technology business.
2018
Launched Indeed Assessments, a platform that helps employers automate the screening
process so they can quickly find candidates with the skills they need.
2020
Launched Indeed Interview, a video interviewing platform designed specifically for interviewing
and hiring, which was created to allow employers to quickly adapt to virtual hiring needs during
the pandemic so job seekers could interview safely from the convenience of their homes.
2021
Launched Indeed Hiring Platform, a new solution that allows employers to manage the hiring
process – from posting through interview – directly on Indeed, with no additional software. Job
seekers who meet an employers’ objective job criteria can automatically advance to an interview.
April 2021
The following mergers were carried out in the Matching & Solutions business.
Integration of seven core operating companies and functional companies into Recruit Co., Ltd.,
SBU Headquarters.
- Recruit Sumai Company Ltd.
- Recruit Lifestyle Co., Ltd.
- Recruit Marketing Partners Co., Ltd.
- Recruit Career Co., Ltd.
- Recruit Jobs Co., Ltd.
- Recruit Communications Co., Ltd.
- Recruit Technologies Co., Ltd.
2021
Launched AirWALLET with COIN+ compatibility, the free and easy-to-use digital account
management and payment application that allows users to seamlessly manage, charge, transfer,
and withdraw money with COIN+.
2021
Launched AirWORK Applicant Tracking System (ATS), a hiring management system that allows
users to create hiring websites and duplicate to Indeed for free.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 5
2021
Announced our sustainability goals in environmental, social, and governance, aiming to achieve
them by FY2030. We aim to create a positive impact on society and the environment through all
our corporate activities.
2022
Launched AirCASH, a financial service that allows businesses to cash out future sales.
2022
Launched AirINVOICE, an invoice management service that enables users to make payments
from their smartphones.
April 2022
In accordance with the Tokyo Stock Exchange's market-segment restructuring, Recruit Holdings’
stock was transferred from the First Section to the Prime Market.
July 2022
Changed the registered location of the head office to Gran Tokyo SOUTH TOWER (Marunouchi
1-9-2, Chiyoda-ku, Tokyo, Japan)
2023
Launched AirWORK Payroll, a service that handles monthly payroll transfers.
2023
Launched Indeed Skill Connect, a new product that advances skills-first hiring by helping job
seekers better promote their skills and completed training programs to potential employers.
2023
Launched RGF Connect, RGF Staffing's global social program that supports underserved people
with education, training, and employment opportunities.
2023
Launched Glassdoor Community to drive real-time workplace conversations.
2024
Launched “Indeed PLUS” in Japan, a platform that automatically distributes job postings based
on their job description to the job boards linked to Indeed PLUS that are judged to be the most
appropriate.
2024
Launched Indeed Smart Sourcing, a product suite for employers that features AI-powered
candidate suggestions, resume search, and automated candidate messaging.
2025
Introduced a digital wage payment service, available to companies using AirWORK Payroll,
allowing employees to receive instant wage payments via AirWALLET with Coin+ compatibility.
April 2025
Transferred the HR domain of Matching & Solutions to HR Technology, renamed Matching &
Solutions as Marketing Matching Technologies, and made Indeed Recruit Partners Co., Ltd.1 a
consolidated subsidiary.
1 Consolidated subsidiaries as of March 31, 2026.
2 “Currently” in the chart above shows the name as of March 31, 2026.
3 “QR Code” is a registered trademark of DENSO WAVE INCORPORATED.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 6
Business
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, Staffing and
Marketing Matching Technologies. 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, 2026, the Company had 218 subsidiaries and 6 associates.
As of April 1, 2025, HR Solutions of the Matching & Solutions SBU has been transferred to the HR Technology SBU, and the Matching
& Solutions SBU changed its name to the Marketing Matching Technologies SBU in FY2025.
Business Overview by Segment
HR Technology
HR Technology consists of Indeed,placement services in Japan, and other related businesses.
Indeed is an online matching and hiring platform connecting job seekers and employers, driven by Indeed’s mission to help people get
jobs.
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 665 million job seeker profiles2 and 3.5 million employers3 using Indeed
to hire in the last year.
Indeed offers 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 offers solutions to
recruit and hire qualified talent in an easier and more efficient way. Employers can post and advertise jobs, access candidate profiles,
interact and engage with candidates, and build their company’s employment brand, including on Glassdoor, reaching a broad job seeker
audience.
Indeed provides 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 is leveraging extensive
proprietary jobs and hiring data 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
job boards - including Recruit’s Rikunabi NEXT and TOWNWORK as well as other Recruit and third party sites - and Applicant Tracking
Systems (“ATS”), including AirWORK ATS. The services include online matching platforms , and placement services including Recruit
Agent. All Recruit job boards except for Rikunabi are linked to Indeed PLUS, which can reach up to 70% of users4 at the major job
boards in Japan.
RECRUIT AGENT, the placement service in Japan, utilizes the Recruit Group’s matching engine to streamline processes like screening
resumes, a previously manual process.
1 Source: comScore, Total Visits, March 2026
2 Internal data, cumulative number of verified job seeker accounts on Indeed through March 31, 2026, worldwide. Job seeker accounts
that have a unique, verified email address
3 Internal data, based on the last 12 months of activity as of March 2026, worldwide
4 Values, 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)
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 7
Brands
Services
Indeed
Online matching and hiring platform
Indeed PLUS
Job distribution platform
Glassdoor
Online matching and hiring platform
Rikunabi NEXT
Online matching platform for mid-career job seekers
RECRUIT AGENT
Employment placement service for professionals
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.
Staffing is not just a matching service; rather, it is characterized by the continuous recognition of revenue throughout the duration of the
temporary staff’s assignment, based on staffing fees that include temporary staff wages and are calculated according to hours worked.
Furthermore, since temporary staff generally prefer to work close to where they live, "local matching" is a crucial part of the business
model, requiring the establishment of sales offices in various locations to match regional business clients with temporary staff.
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
Japan
Recruit Staffing
Staffing services in Japan
STAFF SERVICE GROUP
Europe, US,
and Australia
Europe: Start People, Unique, USG Professionals,
Secretary Plus, Bright Plus, Solvus
US: Staffmark, CSI Companies
Australia: Chandler Macleod, Peoplebank
Staffing services mainly
in Europe, US, and Australia
Marketing Matching Technologies
Marketing Matching Technologies consists of the Lifestyle subsegment, comprising Beauty, Travel, Dining, and SaaS solutions, along
with Housing & Real Estate, and Others, which includes Automobile, Bridal, Education, and others. It offers vertical-specific matching
platforms which connect individual users and business clients, and cloud-based Software as a Service (“SaaS”) solutions.
The matching platforms for each vertical include Hot Pepper Beauty for Beauty, Jalan for Travel and Hot Pepper Gourmet for Dining in
the Lifestyle subsegment, as well as SUUMO in Housing & Real Estate subsegment. Our business model varies by sector: while Travel
operates on a transaction fee basis, other verticals primarily utilize “Expected Action-Tiered Plans.” These plans offer pricing scaled to
expected user actions and customer acquisition costs. In FY2025, the Company evolved this strategy by introducing a “Gross
Merchandise Value (GMV)-Linked Model.” This new model launched in Beauty in January 2026, serving as a high-value addition to
existing tiered options.
Marketing Matching Technologies provides 13 Air BusinessTools, such as AirPAY, a cloud-based payment service, and AirREGI, a point
of sale (POS) system, as well as other SaaS solutions specialized for industries.Through these matching platforms and SaaS solutions,
Marketing Matching Technologies aims to create an “ecosystem” of solutions that support the operations of businesses, leveraging AI
and data to help improve their profitability and productivity.
Brands
Services
SUUMO
Online platform and in-person consultation service for housing and real estate
Hot Pepper Beauty
Online platform for beauty treatment
Jalan
Online platform for travel in Japan
Hot Pepper Gourmet
Online platform for dining
Air BusinessTools
Cloud-based operational and management support solutions for business clients across an expanding
variety of businesses
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.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 8
Operational Chart
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 9
Major Subsidiaries and Associates
Consolidated subsidiaries
Name
Address
Capital stock
or capital
Description of
major
operations1
Ratio of voting
rights held (%)
Relationship
RGF OHR USA, INC.
Delaware,
United States
10 US dollar
HR
Technology
100.0
Concurrent directorships
Receipt of dividends
Indeed, Inc.3,5
Delaware,
United States
10 US dollar
HR
Technology
100.0
(100.0)
Concurrent directorships
Obligation guarantee
Glassdoor LLC.
Delaware,
United States
942,440
thousand US
dollar
HR
Technology
100.0
(100.0)
Concurrent directorships
Indeed Recruit Partners
Co., Ltd.3
Chiyoda-ku, Tokyo,
Japan
200 million yen
HR
Technology
100.0
Concurrent directorships
Borrowing of funds
Receipt of royalties
RGF Staffing B.V.3
Flevoland,
Netherlands
1.50 euro
Staffing
100.0
Concurrent directorships
Receipt of dividends
Recruit Staffing Co., Ltd.
Chiyoda-ku, Tokyo,
Japan
300 million yen
Staffing
100.0
(100.0)
Concurrent directorships
Borrowing of funds
Receipt of royalties
Staff Service Holdings CO.,
LTD.
Chiyoda-ku, Tokyo,
Japan
500 million yen
Staffing
100.0
(100.0)
Concurrent directorships
Borrowing of funds
RGF Staffing France SAS3
Moselle,
France
26,395 thousand
euro
Staffing
100.0
(100.0)
Concurrent directorships
RGF Staffing Germany
GmbH
Bayern,
Germany
500 thousand
euro
Staffing
100.0
(100.0)
Concurrent directorships
RGF Staffing the
Netherlands B.V.
Flevoland,
Netherlands
1 thousand euro
Staffing
100.0
(100.0)
Concurrent directorships
Unique NV3
Antwerp,
Belgium
50,082 thousand
euro
Staffing
100.0
(100.0)
Concurrent directorships
Staffmark Group, LLC3
Ohio,
United States
117,514 thousand
US
dollar
Staffing
100.0
(100.0)
Concurrent directorships
The CSI Companies, Inc.
Florida,
United States
2.00 US dollar
Staffing
100.0
(100.0)
Concurrent directorships
Chandler Macleod Group
Limited3
New South Wales,
Australia
191,490
thousand
Australian dollar
Staffing
100.0
(100.0)
Concurrent directorships
Peoplebank Hong Kong Ltd.
Hong Kong,
China
12 thousand HKD
Staffing
100.0
(100.0)
Concurrent directorships
Recruit Co., Ltd.3, 5
Chiyoda-ku, Tokyo,
Japan
350 million yen
Marketing
Matching
Technologies
100.0
Concurrent directorships
Loan of funds
Borrowing of funds
Receipt of royalties
Receipt of dividends
RGF TREASURY
SERVICES LIMITED3
Dublin,
Ireland
3.30 US dollar
Company-
wide
100.0
Concurrent directorships
Loan of funds
Borrowing of funds
Receipt of dividends
RGF International
Recruitment Holdings
Limited3
Hong Kong,
China
836,224
thousand HKD
HR
Technology
100.0
(100.0)
-
RYK Capital Partners
Limited3
Hong Kong,
China
324,256
thousand HKD
Marketing
Matching
Technologies
90.0
(90.0)
-
Staff Service Co., Ltd.5
Chiyoda-ku, Tokyo,
Japan
300 million yen
Staffing
100.0
(100.0)
-
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 10
Name
Address
Capital stock
or capital
Description of
major
operations1
Ratio of voting
rights held (%)
Relationship
Staffmark Investment, LLC3
Ohio,
United States
117,514 thousand
US dollar
Staffing
100.0
(100.0)
-
Peoplebank Australia Ltd3
New South
Wales,
Australia
68,160 thousand
Australian dollar
Staffing
100.0
(100.0)
-
RGF STAFFING ANZ PTY
LTD3
New South
Wales,
Australia
440,756
thousand
Australian dollar
Staffing
100.0
(100.0)
Concurrent directorships
RGF STAFFING
MELBOURNE TWO
PTY LTD3
New South
Wales,
Australia
294,892
thousand
Australian dollar
Staffing
100.0
(100.0)
Concurrent directorships
194 other companies4
Equity-method Associates
Name
Address
Capital stock
or capital
Description of
major operations1
Ratio of voting
rights held (%)
Relationship
51job, Inc.6
Cayman Islands,
British Overseas
Territory
31 thousand
RMB
Company-wide
25.1
Concurrent
directorships
5 other companies
1 Segment names are shown in the “Description of major operations” section.
2 The percentages in parentheses in the “Ratio of voting rights held” section are indirect ownership of voting rights.
3 Specified subsidiary as defined by the Financial Instruments and Exchange Act of Japan
4 There are no subsidiaries or associates with significant excess liabilities. For subsidiaries and associates that have borrowings, etc.
within Recruit Group, the Company uses the net asset amount after deducting such borrowings to assess whether there are any
excess liabilities that have a significant impact.
5 Revenue (excluding intercompany revenues among consolidated companies) from Indeed, Inc., Recruit Co., Ltd., and Staff Service
Co., Ltd. each accounts for over 10% of the consolidated revenue. Because all of the following values are non-consolidated financial
results, these do not include goodwill, intangible assets, and amortization of intangible assets related to the Company’s acquisition of
each entity.
6 The Company’s ownership ratio of the issued shares of 51job, Inc. is 39.9%.
Company name
Major Profit (loss) items
Indeed, Inc.
(In millions of US dollar)
Recruit Co., Ltd. (JGAAP)
(In millions of yen)
Staff Service Co., Ltd.
(JGAAP)
(In millions of yen)
Revenue
5,841
583,943
401,612
Ordinary income
-
98,820
25,364
Profit for the year
1,518
72,157
18,835
Total equity
2,539
66,274
28,805
Total assets
3,867
458,044
79,018
Ordinary income for Indeed, Inc. is not stated since the information above is based on IFRS as in “Consolidated Financial Statements”
of the “Financial Information” section.　
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Company Overview | 11
Business Overview
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
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 force for change.
Bet on Passion
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.
Prioritize Social Value
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.
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 developed based on the expertise cultivated within the Recruit Group.
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
EBITDA+S as target management KPIs. Executive officers’ compensation is linked to the achievement level of EBITDA+S, to align with
shareholder interests.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 12
Business Strategies
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 AI and 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.
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, the Company believes that operating these businesses as one will improve hiring
efficiency and accelerate the 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, the 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 20 million jobs3 that 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. 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 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, reaching a
broad job seeker audience. Indeed offers a range of products for employers to source, screen, interact with, and interview candidates
providing an efficient source of candidates through pay-for-performance and subscription pricing models.
The scale of the two-sided talent marketplace created by Indeed is evidenced by the 3.5 million employers4 that use Indeed each year to
hire, the over 665 million verified job seeker profiles5 created on Indeed.
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 predictive AI and machine learning technology, which analyze historical and real-time signals to forecast likely job
seeker and employer behavior, 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 and employers in the Company’s talent
marketplace, including through generative AI tools, which leverage large language models to provide new experiences, such as
explaining the rationale behind recommendations.
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 minute6 to 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 2025, based on internal measurement, an average of 31 job seekers were hired on
Indeed every minute.
The Company believes that by fully utilizing the Recruit Group's business client relationships, offline and online data, combined with 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.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 13
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.
Additionally, RECRUIT AGENT, the placement service utilizes 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 2025, the Company believes the size of the HR Matching market was roughly 302 billion US dollars7, slightly lower compared to the
Company’s estimate for 2024. The decrease was driven by the continued decline of the Temporary Staffing market, while the other
markets were roughly flat. Please reference the footnotes for details of the updates.
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)
(in billions of US dollars)
2024
2025
Job Advertising and Talent Sourcing 8, 9
33
34
Direct Hire 10, 11
72
71
Retained Search 10, 11
24
24
Temporary Staffing 12, 13
111
105
Internal Recruitment Automation 14, 15
70
68
Total Addressable Market (“TAM”) 16
310
302
Job Advertising and Talent Sourcing: The global job advertising and talent sourcing market is estimated by Staffing Industry Analysts
(“SIA”) to have been roughly 34 billion US dollars9 in terms of annual revenue in 2025.
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 71 billion US dollars11 in terms of annual revenue globally in 2025 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 dollars11 in terms of annual revenue globally in 2025
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 522 billion US dollars13 in annual revenue globally in 2025.
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 94 billion US dollars13 in 2025. Additionally, the
Company’s definition of this market includes the estimated annual revenue globally in 2025 for each of the Talent Platforms17, Staffing
Platforms18 and Vendor/Freelancer Management Systems (“VMS/FMS”)19 markets, and an estimated annual spending by employers on
Managed Service Provider (“MSP”)20 and Recruitment Process Outsourcing (“RPO”)21 services 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 105 billion13 US dollars globally in 2025.
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 68 billion US dollars15 in 2025. 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 2025 for
ATS22 and an estimated annual internal spending by employees on Background Checks23 that can be reasonably automated and
monetized by third parties.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 14
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.
2
Source: comScore, Total Visits, March 2026
3
Internal data, based on the last 12 months daily average number of jobs searchable on Indeed as of December 2025, worldwide
4
Internal data, based on the last 12 months of activity as of March 2026, worldwide
5
Internal data, cumulative number of verified job seeker accounts on Indeed through March 31, 2026, worldwide. Job seeker accounts
that have a unique, verified email address.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 15
6
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.
7
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.
8
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.
9
Source for 2025: SIA, The Evolution of Recruiting: 2026 Update to Estimating the Addressable Market for Recruitment Automation
(custom research commissioned by Indeed): January 2026 Update.
10
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, Americas Staffing Market Forecast November 2024 applied to 229 billion US dollars, which was Americas 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.
11
Source for 2025:SIA, Global Staffing Market Estimates & Forecasts 2025-2030 Update: November 2025.Placement & Search market
is derived by applying 15.5%, which was Placement & Search’s share of 2024 Global Staffing Revenue, to the sum product (a) of -2%
growth rate from SIA, Americas Staffing Market Estimates & Forecasts November 2025 applied to 202 billion US dollars, which was
Americas Total Staffing market in 2024, (b) of -2% growth rate applied to 257 billion US dollars, which was EMEA Total Staffing market
in 2024, and (c) of 6% growth rate applied to 159 billion US dollars, which was APAC Total Staffing market in 2024, all from SIA, Global
Staffing Market Estimates & Forecasts 2025-2030 Update: November 2025. 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.
12
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, Americas Staffing Market Forecast November 2024 applied to 206 billion US dollars, which was Americas 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.
13
Source for 2025: derived by applying a gross profit margin of 18.17%, which was calculated based on the weighted average of the top
3 publicly traded global staffing companies in terms of revenue in 2025, to 522 billion US dollars, which was the estimated revenue of
the temporary staffing market in 2025. 522 billion US dollars is a sum product of (a) -2% growth rate from SIA, Americas Staffing
Market Estimates & Forecasts November 2025 applied to 181 billion US dollars, which was Americas temporary staffing market in
2024, of (b) -2% growth rate applied to 222 billion US dollars, which was EMEA temporary staffing market in 2024, and of 6% growth
rate applied to 120 billion US dollars, which was APAC temporary staffing market in 2024, all from SIA, Global Staffing Market
Estimates & Forecasts 2025-2030 Update: November 2025.
14
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.
15
Source for 2025: SIA, The Evolution of Recruiting: 2026 Update to Estimating the Addressable Market for Recruitment Automation
(custom research commissioned by Indeed): January 2026 Update. SIA’s estimates are based on the assumption that 43% 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
16
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.
17
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 2024 and
2025 in terms of annual revenue globally based on SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable
Market for Recruitment Automation (custom research commissioned by Indeed): January 2025 Update and SIA, The Evolution of
Recruiting: 2026 Update to Estimating the Addressable Market for Recruitment Automation (custom research commissioned by
Indeed): January 2026 Update, respectively.
18
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 3 billion US dollars in 2024 and 2025 in terms of annual
revenue globally based on SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment
Automation (custom research commissioned by Indeed): January 2025 Update and SIA, The Evolution of Recruiting: 2026 Update to
Estimating the Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January 2026 Update,
respectively.
19
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 2024 and 2025 in
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.
Led by Marketing Matching Technologies (MMT), this strategy focuses on achieving sustainable growth for these clients, which in turn
drives the mid- to long-term revenue growth of the Company.
MMT provides vertical-specific matching platforms and associated 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, integrating and completing all business processes related to their
economic activities.
MMT's matching platforms facilitate massive and timely matching between individual users, supported by a base of 98.65 million1
RECRUIT IDs, and approximately 980,000 business clients2. Matching is achieved through actions taken by individual users with a
RECRUIT ID, such as booking reservations for hair salons or requesting information for new condominiums, enabled by real-time
booking availability and service and product information synced by business clients through SaaS solutions. For the
small-to-medium-sized business clients who make up the majority of MMT’s client base, the platforms serve as essential infrastructure
for digital transformation, enabling them to efficiently manage and execute their business operations, from customer attraction to
inquiries, reservation management, and payments.
Additionally, the Company provides suggestions for improving service content and pricing using AI-based technology. This is achieved
by utilizing not only booking and payment data accumulated through matching platforms and SaaS solutions, but also proprietary offline
data such as service history from face-to-face interactions.
Individual users register for a RECRUIT ID and earn RECRUIT POINTS based on their actions on matching platforms. By encouraging
the use of this point program, the Company creates synergies across multiple verticals. The cross-use rate3, which measures the
proportion of individual users using multiple vertical platforms, exceeds three-fourths, driving actions based on a strong user base.
As a result, the total number of annual individual user actions4 increased from approximately 190 million in FY2017 to approximately 400
million in FY2025 (excluding cancellations). Moving forward, by utilizing action data and matching technology, the Company aims to
improve the value and convenience of its matching platforms and increase the number of actions.
By combining AI-based suggestions utilizing proprietary data accumulated through the matching platforms with user actions generated
from the individual user base with a RECRUIT ID, the Company achieves the maximization of business clients' Gross Merchandise
Value (GMV), which is the total value of transactions resulting from matches on the matching platforms.
In many verticals, the Company currently offers business clients "Expected Action-Tiered Plans," which provide monthly fixed pricing
options structured around a combination of the number of expected user actions and customer acquisition costs. Moving forward,
starting with Beauty, the Company will gradually introduce a "GMV-Linked Model" across multiple verticals, where the Company receives
fees based on the business client's GMV. By combining the evolution of the revenue models with the expansion of GMV through AI, the
Company aims to leverage the advancement of AI into a key driver of mid- to long-term growth for both business clients and the
Company.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 16
terms of annual revenue globally based on SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for
Recruitment Automation (custom research commissioned by Indeed): January 2025 Update and SIA, The Evolution of Recruiting:
2026 Update to Estimating the Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January
2026 Update, respectively.
20
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 2024 and 2025 in terms of annual spending by employers that can be reasonably automated and monetized by third parties
based on SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment Automation (custom
research commissioned by Indeed): January 2025 Update and SIA, The Evolution of Recruiting: 2026 Update to Estimating the
Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January 2026 Update, respectively.
21
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 2024 and 2 billion US dollars in 2025 in terms of annual spending by employers that can be reasonably
automated and monetized by third parties based on SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable
Market for Recruitment Automation (custom research commissioned by Indeed): January 2025 Update and SIA, The Evolution of
Recruiting: 2026 Update to Estimating the Addressable Market for Recruitment Automation (custom research commissioned by
Indeed): January 2026 Update, respectively.
22
The 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 3 billion US dollars in terms of annual revenue globally in
2024 and 2025 based on SIA, The Evolution of Recruiting: 2025 Update to Estimating the Addressable Market for Recruitment
Automation (custom research commissioned by Indeed): January 2025 Update and SIA, The Evolution of Recruiting: 2026 Update to
Estimating the Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January 2026 Update,
respectively.
23
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 2024 and 2025 based on SIA, The Evolution of Recruiting: 2025 Update to
Estimating the Addressable Market for Recruitment Automation (custom research commissioned by Indeed): January 2025 Update
and SIA, The Evolution of Recruiting: 2026 Update to Estimating the Addressable Market for Recruitment Automation (custom
research commissioned by Indeed): January 2026 Update, respectively.
The Company will evolve the business model for each vertical by responding to changes in the business environment of each field, the
diversifying needs of individual users, and shifts in information gathering and comparison behaviors driven by the widespread use of AI,
as well as changes in the value provided to business clients. Through these initiatives, the Company will promote the strategy, Help
Businesses Work Smarter, and aim to increase its revenue by enhancing the earning power of business clients all across Japan.
Prosper Together - Seek sustainable growth shared by all stakeholders
The Company believes that its corporate activities can make a positive impact on society, and that in doing so, it can prosper alongside
its stakeholders and take a vital step toward long-term, sustainable growth. In an environment of heightened uncertainty, the Company is
further integrating its business strategy and sustainability initiatives, while advancing efforts tailored to region-specific business
environments and social issues. The progress made in FY20251 toward the environmental, social, and governance goals for FY2030 is
outlined below.
Environment
The Company anticipates achieving its short-term goal of carbon neutrality across all business activities in FY2025, as it has in each of
the past four fiscal years2,3. Its long-term goal is to achieve carbon neutrality across its entire value chain by FY20302.To reach this
target, the Company is advancing initiatives to reduce greenhouse gas (GHG) emissions based on its SBTi Near-Term Target2 4, and
expects to exceed its target for FY2025 by a substantial margin.
Scope 3 emissions account for more than 95%5 of the Company’s GHG emissions, and the Company is working with partners to
improve the accuracy of their measurement. In Japan, for example, for system development projects, Recruit Co., Ltd. worked with
partners to calculate GHG emissions on a project basis, and third-party assurance was obtained for those calculations6. Going forward,
the Company plans to expand this model case to major partners, improving measurement accuracy across the value chain and
advancing emissions reduction efforts.
For the third consecutive year, the Company was recognized as an “A” list company by CDP7 — the international nonprofit organization
— in 2025, in acknowledgment of its leadership in climate change performance and corporate disclosure transparency.
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 the Company is therefore
dedicated to opening up access to employment opportunities for all and reducing the time to get hired.
To achieve the first goal of reducing the time it takes for job seekers to get hired by half by FY2030, the Company uses Time to Hire
(TTH) on Indeed as a progress metric and is working to reduce that time.In FY2025 updated its measurement methodology from the
mean to the median, in line with international best practices8. TTH stood at 30 days as of December 2025, up 6 days from December
20248. This increase is presumed to be at least partially attributable to the macroeconomic environment in the United States.
At the same time, the Company’s research continues to indicate that certain paid solutions and product innovations can help reduce
TTH, even amid a challenging macroeconomic environment. For example, in the U.S., jobs posted directly on Indeed using Premium
Sponsored Jobs achieved a 50% faster TTH than non-sponsored jobs9 10.
To further reduce TTH, the Company is taking targeted actions, including leveraging AI-powered products and other technologies to
improve efficiency, enhance matching, and streamline communication between employers and job seekers. For example, the Company
offers Indeed Smart Screening, a screening solution that uses employer-defined criteria to help employers identify candidates who meet
those requirements earlier in the hiring process. This helps employers focus their evaluation on the most relevant applications, saving
time while retaining full control over hiring decisions. Based on early testing in the U.S., employers using this feature on Indeed saw a
20% average reduction in TTH11
Through these efforts, the Company aims to make the entire process of getting hired faster, simpler, and more accessible, thereby
contributing to society through improved matching between job seekers and employers and supporting the Company’s sustainable
business growth.
At the same time, labor markets continue to present many barriers that cannot be solved by improving the speed and accuracy of job
matching 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 those related
to education and disabilities. In particular, the Company is advancing Skills-First Hiring12 — an approach that evaluates candidates
based on skills gained through work, training, and other experience, rather than relying solely on traditional formal qualifications such as
educational background.
The Company offers AI-powered tools, such as Job Description Generator and Indeed Smart Sourcing, to support better matching
between job seekers and employers based on skills and experience. To supplement these efforts, Indeed partners with organizations
globally, including Opportunity@Work, the International Organization for Migration (part of the United Nations), and Hidden Disabilities
Sunflower, among others.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 17
1
The total number of RECRUIT IDs(as of March 2026)
2
The cumulative number of listed stores and business locations as of March, 2026, in Beauty, Travel, Dining, Housing and Real Estate,
Automobile, Bridal, and Education verticals, combined with the total number of stores and business locations using SaaS solutions(if a
single store uses multiple services, it is counted for each service).
3
Calculated for the period from March 2025 to February 2026 by dividing the number of RECRUIT IDs with a login record on two or
more platforms or online services within the applicable verticals by the total number of RECRUIT IDs with a login record on the
Company’s matching platforms or online services in the Beauty, Travel, Dining, Housing and Real Estate, Automobile, Bridal,
Education, and other verticals.
4
The annual aggregate total number of user actions such as reservations at salons, restaurants, or accommodations, etc., or making
inquiries or requests for materials regarding listings, services, etc.(excluding cancellations), in the Beauty, Travel, Dining, Housing and
Real Estate, Automobile, Bridal, and Education verticals.
Through these efforts, the Company successfully helped a cumulative total of approximately 18.8 million job seekers facing barriers get
hired13 14 by FY2025, and remains committed to reducing barriers in the job market by continuing to promote 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, and one that has driven the creation of new businesses and services across the Group.
Building on this belief, the Company is working toward its goal of achieving gender parity in senior executive positions, managerial
positions, and total employees across the Group by FY203015.
The Company believes that initiatives tailored to region-specific challenges are key to achieving this Group-wide goal. Recruit Co., Ltd.,
which primarily operates in Japan where the gender gap is notably wide, is expanding its pool of managerial candidates by clarifying the
requirements for management positions, and has rolled out a coaching-based human capital development program. As a result, the
proportion of women in managerial positions has continued to increase16.
Governance
The Company views a well-balanced Board, comprising members with varied skills, experiences, and backgrounds, as critical to
transparent, sound governance, and high-quality decision-making.
Recruit Holdings aspires to achieve gender parity among the members of the Board of Directors and Audit and Supervisory Board by
FY2030, and 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.
2 GHG emissions throughout the Company’s business activities are the sum of direct emissions from the use of fuels in owned or
controlled 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.
4 The Company aims to reduce Scope 1 and 2 GHG emissions by 46.2% by FY2030, using FY2019 as the base year, and to reduce
Scope 3 GHG emissions by 30% by FY2030, using FY2019 as the base year.
5 Based on the emissions of FY2024.
6 See the joint press release dated April 24, 2026, issued by NTT DATA Group Corporation, NTT DATA Corporation, and Recruit Co.,
Ltd., regarding the calculation of the carbon footprint of system engineering service contracts and third-party assurance.
7 CDP is a charity-controlled non-profit organization (NPO) established in 2000. It owns one of the world's largest environmental
databases, working with large global financial institutions to disclose the environmental impact of companies in the areas of climate
change, forests and water security.
8 “Time to Hire” refers to the number of days from the creation of a job posting on Indeed to the reporting of the first hire for that posting.
Beginning in FY2025, the methodology was revised to use the median instead of the mean. Both the 30 days as of December 2025
and the 24 days as of December 2024 are based on medians recalculated using the same methodology.
9 U.S. data from Jan 2026 - Mar 2026, for jobs hosted on the Indeed platform using median.
10 Premium Sponsored Jobs are sponsored job listings on Indeed that include additional features such as matching tools, candidate
outreach functions, and job branding features.
11 Based on a sample of 1,095 U.S. job postings with Smart Screening enabled, compared with a comparable group of U.S. job postings
without Smart Screening, from May through December 2025.
12 A method of selecting job candidates based on their skillset at an early stage of the hiring process. Unlike the traditional selection
method, 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.
13 Represents number of hires made on Indeed reported through the Hired Signal measurement, from May 1, 2021 - March 31, 2026,
globally 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.
14 Beginning in September 2025, the method for identifying job seekers was standardized based on profile information, and the lookback
period for hiring signals was revised from 30 days to two years, in order to improve measurement accuracy and ensure consistency in
ongoing aggregation.
15 Senior executive positions are defined as Senior Vice Presidents and Corporate Professional Officers of Recruit Holdings and
Marketing 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.
16 Compared to FY2024, the percentage of women managers at Recruit Co., Ltd., rose from 33.9% to 35.0%, and the percentage of
women in senior executive positions remained at 33.3%.
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 FY2025 was 31.0%1.
1 ROE = Profit attributable to owners of the parent / average net asset for the fiscal year
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 18
Sustainability Policy and Actions
The Company believes that it can make a positive impact on society and the global environment through its corporate activities and by
doing so, prosper together with all its stakeholders and take an essential step toward achieving sustainable growth. Therefore, as part of
its business strategy, the Company has integrated its sustainability initiatives and established specific timelines and goals to realize its
sustainability goals for FY20301, which was set in May 2021.
The forward-looking statements in the text are based on certain assumptions that the Company considers reasonable as of the date of
submission of the Annual Report. However, actual results may differ significantly due to various factors.
Our Policy and Actions for Sustainability as a Whole
Governance
The Board of Directors makes the necessary structural arrangements for the Company’s efforts to address sustainability and oversees
these efforts through deliberations by the Sustainability Committee — one of the Board’s advisory bodies. The Sustainability Committee
discusses the identification and assessment of sustainability-related impacts, risks and opportunities, as well as policies, strategies and
plans for mitigating negative impacts, enhancing positive impacts, reducing risks while seizing opportunities, and the establishing of
related metrics and targets. In its oversight process, the Board supervises business plans, investments and loans, including response
measures and their progress.
The Executive Vice Presidents who serve as CEOs of each Strategic Business Unit (SBU) and as internal members of the Sustainability
Committee collaborate to devise sustainability strategies and plans to mitigate negative impacts and risks while promoting efforts to
maximize positive impacts and seize opportunities throughout their business operations.
The Executive Vice President in charge of sustainability is responsible for leading sustainability initiatives and reports to the Board on
their progress. Directly under the Executive Vice President, the Company has established a department in charge of driving forward
sustainability initiatives. The department is responsible for gathering group-wide sustainability information, identifying and evaluating
sustainability impact, risks and opportunities, formulating policies and strategies, implementing and managing action plans, and
engaging in dialogue with stakeholders.
Risk Management
Every year, the Company gathers its stakeholder perspectives on sustainability-related themes and analyzes evolving social trends.
Utilizing this information, the Sustainability Committee identifies and assesses sustainability-related impacts, risks and opportunities,
and deliberates on key issues to be addressed. Sustainability-related risks identified by the Sustainability Committee are integrated into
the Company's risk management processes. These risks are centrally and comprehensively evaluated and managed by the Risk
Management Committee. Detailed discussions related to mid-to long-term sustainability risks and opportunities are delegated to the
Sustainability Committee. The Sustainability Committee, in coordination with the Company’s Risk Management Committee, reports the
results of these discussions to the Board.
Management framework for sustainability-related impacts, risks and opportunities (roles
and meeting bodies)
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 19
Please see “Composition of the Board and Committees“ under the chapter “Corporate Governance Overview“ for the Sustainability
Committee and the Risk Management Committee.
Refer to “Our Actions on Climate Change, Risk Management” for climate-related risk management and “Our Policies and Actions for
Development of Our Organization, Employees and Workplace, Risk Management” for human capital-related risk management.
Strategy
(a) Materiality Assessment Process
In formulating its sustainability strategy, the Company identifies and assesses sustainability-related impacts, risks and opportunities, and
determines the material topics. For FY2025, based on the concept of double materiality, under which the Company assesses both the
impacts it has on society and the global environment (impact materiality) and the impacts on its financial position (financial materiality),
the Company conducted the materiality assessment through the following process.
Step 1: Listing of Sustainability Topics
The Company compiled a comprehensive and detailed list of sustainability topics to be assessed, referencing international and industry
standards by external organizations2.
Step 2: Evaluation of Sustainability Topics
For each sustainability topic listed in Step 1, the Company conducted an assessment along two axes – impact on society and the
environment and financial implications for the Company – based on the concept of double materiality. In evaluating impact, the
Company considered likelihood and severity (scope, scale and irremediability), and for financial impact, we considered likelihood and
magnitude, scoring each criterion and ranking each sustainability topic based on the overall score. Feedback obtained through
engagement with diverse stakeholders such as employees, individual users, investors, and NGOs/NPOs, etc. informed the scoring.
Additionally, the Company referenced information published by international organizations, NGOs/NPOs, etc., to reflect shifts in societal
trends, including technological innovations such as AI.
Step 3: Determination of Materiality
In this final step, the CEOs and Executive Vice Presidents in charge of Sustainability for each Strategic Business Unit (SBU) confirmed
that the assessment results from Step 2 are aligned with the reality of their respective business. Subsequently, after deliberation by the
Sustainability Committee, which includes outside experts, the Board of Directors resolved on the Group’s Materiality.
The sustainability-related impacts, risks and opportunities identified as material through the assessment described above are as follows.
Recruit Group’s Materiality
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 20
Material Sustainability-Related Impacts, Risks, and Opportunities
Environmental
Material Impacts, Risks and Opportunities
Affected Areas
Time
Horizon3
Metrics and Targets
1. Climate
Change
Risk: International expectations and strengthened
regulations related to decarbonization, together with
increasing business environment instability due to
worsening climate change, may result in financial impacts
through changes in the cost structure.
Opportunity: Changes in labor demand structures
associated with climate change adaptation and the
transition to a low-carbon economy may expand revenue
opportunities through increased matching demand.
Own Operations
&
Entire Value
Chain
Mid- to
Long-Term
Carbon Neutrality
Social
Material Impacts, Risks and Opportunities
Affected Areas
Time
Horizon
Metrics and Targets
2. Human Capital
Positive Impact: Fostering an organizational culture
based on "Bet on Passion" may have a positive impact on
employees’ well-being in the workplace and their ability to
perform to their full potential.
Opportunity: Fostering an organizational culture that
maximizes individuals’ intrinsic motivation may expand
revenue opportunities through enhanced productivity and
the creation of innovation.
Own Operations
Short-, Mid- &
Long-Term
Gender Parity
among Employees,
Managers, and
Senior Executives
3. Human Rights
Negative Impact: Insufficient management of human
rights in business activities may result in serious human
rights violations affecting rights holders across the value
chain, including the Company’s own employees (including
registered temporary staff), individual users, and
suppliers.
Risk: Negative impacts on human rights may result in
financial impacts through the incurrence of legal liabilities,
remediation costs, and reputational damage.
Own Operations
& Entire Value
Chain
Mid- to
Long-Term
ー
4. Data Security
& Data Privacy
Negative Impact: Personal data breaches or
unauthorized access may result in serious infringements
of the privacy and rights of individual users.
Risk: The occurrence of such infringements may result in
financial impacts through reputational damage, incurrence
of legal liabilities, and regulatory actions.
Own Operations
&
Downstream
Value Chain
Short- to
Mid-Term
ー
5. Labor Market
Fluidity
Positive Impact: Enhancing labor market fluidity and
enabling optimal matching between labor supply and
demand through the use of technology may expand
access to employment opportunities and promote the
economic independence of individual users.
Opportunity: Progress in such enhanced fluidity and
optimal matching may expand revenue growth
opportunities through increased usage and a
strengthened market base.
Downstream
Value Chain
Mid- to
Long-Term
Reduce Time It
Takes To Get Hired
By Half
6. Labor Market
Barriers
Positive Impact: Reducing structural barriers in the labor
market may expand access to equitable employment
opportunities for individual users facing such barriers and
promote their economic independence.
Opportunity: Reductions in structural barriers and
advancements in skills-based matching capabilities may
expand market size and revenue growth opportunities
through a broader user base and improved matching
accuracy.
Downstream
Value Chain
Mid- to
Long-Term
Help 30M People
Facing Barriers
Governance
Material Impacts, Risks and Opportunities
Affected Areas
Time
Horizon
Metrics and Targets
7. Corporate
Ethics and
Compliance
Risk: Fraud or inappropriate decision-making may result
in financial impacts through reputational damage,
impairment of brand value, and the incurrence of legal
liabilities.
Own Operations
Short- to
Mid-Term
ー
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Business Overview | 21
8. Corporate
Governance
Opportunity: A diverse Board composition in terms of
skills, experience, and backgrounds, together with
enhanced governance frameworks, may expand
opportunities for sustainable corporate value creation
through improved quality of strategic decision-making and
strengthened risk management capabilities.
Own Operations
Short- to
Mid-Term
Gender Parity
Among Board of
Director Members
(b) Sustainability Initiatives
Based on the sustainability-related impacts, risks and opportunities identified as material through the materiality assessment described
above, the Company promotes the development of management frameworks, the formulation of policies, and the planning of strategies
and initiatives aimed at mitigating negative impacts, enhancing positive impacts, reducing risks, and seizing opportunities. In addition,
initiatives are advanced based on deliberations by the respective committees that serve as advisory bodies to the Board of Directors,
and progress is monitored by the Board of Directors.
1. Climate Change
All corporate activities are only made possible by a healthy global environment, which underpins all forms of life. The Company has
introduced various initiatives focused on environmental conservation and has highlighted climate change as one of the most important
issues to address. The Company has set a group-wide goal to reduce its GHG emissions to achieve carbon neutrality. The progress of
this initiative will be monitored by the Board of Directors based on discussions in the Sustainability Committee. Please refer to “Our
Actions on Climate Change” for more details.
2. Human Capital
The Company has positioned value creation by its empowered employees as a renewed priority for management, and will take further
actions to support inclusion & belonging, workplace wellbeing and human resource development and creation of an environment that
intrinsically motivates employees. Please refer to “Our Policies and Actions for Development of Our Organization, Employees and
Workplace” in this chapter for more details about the initiatives taken for human capital management of the Company.
3. Human Rights
The Company has formulated the Recruit Group Human Rights Policy, which was approved by the Board of Directors, based on
Sustainability Committee discussions. This policy is set to protect all employees, temporary workers — including those who work for its
business clients through Staffing SBU — and its senior management. It also includes an aspiration to continuously evolve the
Company’s services by pursuing methods to better respect the human rights of individual users.
4. Data Security and Data Privacy
For the Company, safeguarding Data Security and Data Privacy is non-negotiable and the Company places high priority on the
measures it takes. The Company has developed a range of appropriate initiatives to protect the data and information in its possession
based on the importance and characteristics of such data and information. The Company has also established structures and measures
to align with applicable laws and regulations of each country and area in which it operates. The Board of Directors discusses and
monitors the initiatives, based on discussions in the Risk Management Committee. Please refer to “Risk Factors” in this document for
more details about Data Security and Data Privacy.
5. Labor Market Fluidity
As a global provider of talent matching services, the Company operates in the domain of “work,” which constitutes an essential
foundation of people’s lives. The Company aims to create social impact by providing employment opportunities to all job seekers and
shortening the time it takes to get hired. While continuously evolving its products through the use of data and technology, the Company
advances its initiatives based on deliberations by the Sustainability Committee, with progress monitored and discussed by the Board of
Directors. For further details, please refer to "Prosper Together— Seek sustainable growth shared by all stakeholders" of the Business
Strategies section.
6. Labor Market Barriers
The Company believes that there are many structural barriers in the labor market that cannot be resolved solely by improving the speed
and accuracy of matching between job seekers and jobs. By increasing opportunities for individuals to encounter work that supports a
better quality of life, the Company aims to generate more equitable and sustainable social impact. The Company works to reduce these
barriers through its own initiatives, including the evolution of its platforms, and advances its initiatives based on deliberations by the
Sustainability Committee, with progress monitored and discussed by the Board of Directors. For further details, please refer to "Prosper
Together— Seek sustainable growth shared by all stakeholders" of the Business Strategies section.
7. Corporate Ethics and Compliance
The Company views corporate ethics and compliance as fundamental principles underpinning its corporate activities. The Company’s
approach to ethics and compliance is to strive to meet society’s expectations and demands through appropriate action, both as a
company and as individuals, beyond the framework of purely legal compliance. To ensure strict adherence to corporate ethics, the
Company implements measures such as employee training and the establishment of whistleblowing programs. The Board of Directors
monitors and discusses corporate ethics and compliance initiatives, based on discussions in the Compliance Committee. Please refer to
“Internal Controls and their Operational Status” for more details about corporate ethics and compliance.
8. Corporate Governance
The Company designates the COO, Executive Vice President and Director as a responsible person for corporate governance including
sustainability. Based on its initiatives, the Board of Directors confirms the appropriateness of its corporate governance and its
compensation structure based on discussions in its advisory bodies such as the Nomination and Governance Committee and the
Compensation Committee. Please refer to the “Corporate Governance” section in this document for more information about corporate
governance and compensation.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 22
Metrics and Targets
The Company introduced “Prosper Together – Seek sustainable growth shared by all stakeholders” in May 2021, as one of its
management strategies, and announced its “Sustainability Goals,” which set out specific indicators and goals to enhance its positive
impact on the global environment and society. In particular, “work,” in which the Company is engaged as part of its business, is an
essential foundation of people’s lives. Accordingly, through its Sustainability Goals, the Company aims to seize key opportunities
especially in the S (Social) pillar by creating impact through its products and services.
Environmental
All corporate activities are only made possible by a healthy global environment, which underpins all forms of life. The Company is
committed to reducing greenhouse gas (GHG) emissions as part of its efforts to address climate change.
Aspiration for Climate Action
・Achieving carbon neutrality throughout the Company’s business activities4 in FY2021
・Achieving carbon neutrality across the Company’s entire value chain4 by FY2030
In addition, toward achieving carbon neutrality throughout the entire value chain4 by the end of FY2030, the Company has set three-year
reduction targets5 aligned with the reduction level required by the Paris Agreement adopted in December 2015, which aims to limit the
increase in global average temperature to less than 1.5 °C above that of the pre-industrial era. The Company achieved significant
emissions reductions against these targets in FY2024, the final year of this three-year reduction target, and is accelerating efforts toward
further emissions reductions. The Company also continues to contribute to addressing climate change through its products and
services. Refer to “Our Actions on Climate Change” for more details.
Social
According to an OECD study, approximately 40% of people could fall into poverty if they went without income for three months.6 The
Company aims to eliminate the number of people who want to work but are unable to do so by dramatically accelerating the matching of
job seekers and jobs, thereby contributing to shorter periods of unemployment.
At the same time, the labor market faces various barriers to employment that cannot be easily resolved solely through more efficient
matching. To address this, the Company will leverage technology and partnerships to reduce these barriers, expand employment
opportunities for all individuals, and contribute to shortening unemployment periods.
Aspiration for Society
・Reduce the time it takes to get hired by half by FY2030 compared to that of FY20217
・Help 30 million people8 facing barriers in the labor market around the world get hired by FY2030
The Company's employees have been the source of its value creation from the very beginning. Betting on the passion and ideas of the
employees has long been its competitive advantage. This is why its corporate agenda continues to prioritize inclusion & belonging that
empowers individuals and fosters innovation. In particular, the Company will prioritize gender issues by establishing group-wide goals
and accelerate its efforts to achieve them.
Aspiration for Our People
・Achieving gender parity among senior executives, those in managerial positions and all employee levels9 by FY2030 across the
Company
Refer to “Demographics” in the “Employees” for more details. For the Company’s initiatives for human capital management, refer to “Our
Policies and Actions for Development of Our Organization, Employees and Workplace, Governance.”
Governance
A well-balanced board, comprising members with varied skills, experiences, and backgrounds, is critical for high quality
decision-making, transparency and soundness in the Company’s governance structure. To support this, a specific gender-related goal
has been established.
Aspiration for Our Board Structure
・Aim to achieve gender parity among the Board of Directors members10 by FY2030
Please refer to "Prosper Together- Seek sustainable growth shared by all stakeholders" of the Business Strategies section for the
Company’s FY2025 performance toward its sustainability goals.
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.
2 External organizations references include the European Union's “Corporate Sustainability Reporting Directive” (CSRD) and the
Sustainability Accounting Standards Board (SASB)'s "Sustainability Accounting Standards."
3 With respect to the time horizons over which sustainability-related impacts, risks and opportunities could reasonably be expected to
occur, the Company defines the following timeframes: short-term (0–12 months), mid-term (1–5 years), and long-term (beyond 5
years). As of the end of the reporting period, these time horizons have been identified and are consistent with the timelines used for
the Group’s strategic decision-making.
4 GHG emissions throughout the Company’s business activities are the sum of; Scope 1 (GHG emissions directly from sources that are
owned or controlled by a company), and Scope 2 (indirect emissions from the use of purchased electricity, heat, steam, etc., in owned
or controlled sources). GHG emissions from the value chain, including the business activities of Recruit Group, are referred to as
Scope 3 and comprise indirect emissions other than Scope 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 any remaining emissions.
5 The GHG emission reduction target is for the term from FY2022 to FY2024.
6 The figure is based on data compiled for 28 countries (Source: OECD (2020), How’s Life? 2020: Measuring Well-Being).
7 The period from the time a user starts an active job search on the Indeed job platform to the time the user confirms the receipt of a job
offer.
8 The initiatives as of today include providing assistance through the Company’s online matching and hiring job platform, and through
partnerships with NPOs and other organizations with whom the Company collaborates. The Company may also aim to reduce other
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 23
various barriers, including newly emerging issues in the labor market by FY2030.
9 Senior executive positions are defined as Senior Vice Presidents and Corporate Professional Officers of Recruit Holdings and
Matching & Solutions Strategic Business Unit (SBU), and CEOs of the Company’s major subsidiaries and heads of key functions in
the HR Technology and Staffing SBUs. The respective percentage 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, including delegated contracting officers.
10 The Board of Directors members are defined as Directors and Audit and Supervisory Board members.
Our Actions on Climate Change
Protecting the global environment is a critical foundation for the Company’s corporate activities in order to prosper together with its
stakeholders and ensure sustainable growth. Regarding taking action to combat climate change, the Company set a long-term goal to
achieve carbon neutrality across its entire value chain by FY20301. As part of such efforts, the Company endorses the recommendations
by TCFD and discloses the climate transition plan to address climate change in line with the TCFD framework2 in this section.
1 GHG emissions throughout the Company’s business activities are the sum of; Scope 1 (GHG emissions directly from sources that are
owned or controlled by a company), and Scope 2 (indirect emissions from the use of purchased electricity, heat, steam, etc., in owned
or controlled sources). GHG emissions from the value chain, including the business activities of Recruit Group, are referred to as
Scope 3 and comprise indirect emissions other than Scope 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 any remaining emissions.
2 A framework indicating climate change-related risks and opportunities created by the Task Force on Climate-related Financial
Disclosures (TCFD).
Governance
The Company conducts governance on climate change as a component of its aforementioned sustainability-related governance. The
Senior Vice President in charge of sustainability reports to the Board on climate change measures, the assessment of climate change
risks and opportunities, and actions of managing those risks and seizing opportunities. Directly under this officer, the Company has
established a department responsible for gathering group-wide environmental information, managing the progress of reductions in GHG
emissions, identifying and evaluating climate-related risks and opportunities, formulating and implementing related action plans,
engaging in dialogue with stakeholders, and conducting related research.
Risk Management
As a component of the aforementioned sustainability initiatives, the Company identifies, assesses, and manages risks and opportunities
associated with climate change. For more details of the Company’s risk management initiatives, please refer to “Our Policy and Actions
for Sustainability as a Whole, Risk Management” in this section.
Strategy
a. Strategic Assumptions
The Company understands that a 4℃ increase in average temperature due to climate change would have a significant impact on
the world and believes it is critical to limit the average temperature increase to below 1.5℃. Based on multiple climate change
scenarios (+4℃ and +1.5℃), the Company analyzes short-, medium- and long-term risks and opportunities through FY2030 and
assesses them in terms of likelihood and financial impact. The Board also examines measures to mitigate key risks and seize
opportunities. The Company’s scenario analysis refers to reports issued by the Intergovernmental Panel on Climate Change
(IPCC)1, the International Energy Agency (IEA) and other international organizations as well as those of similar research agencies.
1 From Representative Concentration Pathways (RCP) 8.5, RCP1.9 and Shared Socioeconomic Pathways (SSP) 5-8.5, SSP1-1.9.
b. Key Risks Relating to Climate Change
The key risks identified through the Company’s scenario analysis, their likelihood and their financial impacts are shown below. The
financial impact is calculated for each item, and the figures for carbon taxes are shown here as they are considered relatively
definitive.
“⤴” indicates that the likelihood of occurrence is expected to increase toward FY2030, and “→” indicates that the likelihood of occurrence
does not change significantly.
Key Climate Change Risks
Physical /
Transition
Likelihood
Financial
Impact
Risk Mitigation Measures
1
Increase in price of carbon
credits to achieve carbon
neutrality
Transition
High⤴
High
Promote GHG emissions reductions by enhancing
energy efficiency in offices and switching to
renewable energy, promoting remote work,
involving in public policy2, and engaging with
partners in key value chains to achieve carbon
neutrality throughout the Company's business
activities and value chains by FY2030.
2
Introduction of carbon taxes
and possible increase in
price
Transition
High⤴
Low
(approx.
300M yen1)
3
Submerged/damaged
servers
Physical
Low→
High
Begin monitoring flood or damage risks of areas
where the Company’s servers are located.
Consider relocating servers or substituting them
with alternatives if risks exceed a certain level.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 24
1 The estimated carbon tax in FY2030 is based on the following assumptions:
- Carbon tax price: approximately $300/t-CO2 (Ref. 2024 version, Net Zero 2050 scenario of the NGFS Long-Term Climate Scenarios
for Central Banks and Supervisors provided by International Institute for Applied Systems Analysis)
- The Company's GHG emissions throughout its business activities (Scope 1 & 2): Approx. 6,100t-CO2 based on the conservative
assumption that there are no further reductions in Scope 1,2 emissions from FY2024.
2 Recruit Group evaluates the feasibility of all climate-related engagement activities (including partnerships with stakeholders in the
value chain, the consideration of trade association memberships, public policy engagement and other related activities) in line with the
Paris Agreement and the Company’s goals on environmental strategy, which are then approved by the responsible Senior Vice
President for execution.
The Company will continue to closely monitor and reassess the impact of climate change on the group under the governance structure
described above, as well as enhance its disclosures of relevant information.
c. Key Opportunities Relating to Climate Change
The key opportunities identified by the Company, along with their likelihood of occurrence and financial impact, are as follows.
“⤴” indicates that the likelihood of occurrence is expected to increase toward FY2030.
Key Climate Change Opportunities
Likelihood
Financial Impact
1
Accommodate workforce shifts as an adaptation for climate change
Medium⤴
High
2
Accommodate employment needs resulting from the societal transition
toward lower-carbon emissions
High⤴
Medium
Through the scenario analysis, the Company confirmed that addressing the three strategic pillars of its business strategies (Simplify
Hiring, Help Businesses Work Smarter, and Prosper Together) will help enhance its resilience to climate change and mitigate key risks
while seizing opportunities. The Company will continue to pay close attention to trends in society and stakeholders related to climate
change, with the aim of capturing opportunities from such trends. Through such actions, the Company aims to contribute to building a
resilient and sustainable labor market. Refer to “Our Policy and Actions for Sustainability as a Whole, Sustainability Goals” for more
details.
Metrics, Goals and Performance
a. Metrics
The Company uses the amount of GHG emissions (absolute emissions in Scope 1, 2, and 31,2) calculated in accordance with GHG
Protocol as the metrics to manage climate risks and opportunities.
b. Goals
As a corporate strategy, the Company stated in its sustainability goals which was announced in May 2021 that it aims to achieve
carbon neutrality in GHG emissions throughout its business activities by FY2021.1,3 The Company strives to do the same across its
entire value chain2,3 by FY2030. The Company aims to achieve carbon neutrality by reducing GHG emissions in accordance with the
following goals and offsetting the remaining emissions. This reduction goal has been validated by the Science Based Targets
initiative (SBTi), confirming that it is in line with the goal of limiting global warming to 1.5°C. 4
● Scope 1+21: Reduce GHG emissions by 46.2% by FY2030 (base year: FY2019)
● Scope 32: Reduce GHG emissions by 30% by FY2030 (base year: FY2019)
c. Performance
The Company started to base its calculation of GHG emissions on the GHG Protocol in FY2019. The figure for Scope 1+2 in
FY2024 was 6,122t-CO2 (-15% year on year).5 The Company also obtained an independent third-party assurance6 of its GHG
emissions. In addition, the Company achieved its FY2022 goal of carbon neutrality throughout its business activities as planned.
Base Year
FY20195
(t-CO2)
Progress
FY20247
(t-CO2)
Reduction Ratio
(vs. FY2019, %)
Scope 1
12,268
4,429
-64%
Scope 2 (Market-based)
29,854
1,693
-94%
Scope 1+2 (Market-based)
42,122
6,122
-85%
1 GHG emissions throughout the Company’s business activities are the sum of Scope 1 (GHG emissions directly from sources that are
owned or controlled by a company), and Scope 2 (indirect emissions from the use of purchased electricity, heat, steam, etc., in owned
or controlled sources).
2 GHG emissions from the value chain, including the business activities of the Group, are referred to as Scope 3 and comprise indirect
emissions other than Scope 1 and 2. The entire value chain represents the sum of Scopes 1, 2 and 3 GHG emissions.
3 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 any remaining emissions. The Company achieved
carbon neutrality in FY2024 as it did in FY2021, FY2022 and FY2023.
4 This is a short-term goal defined by the Science Based Targets initiative (SBTi) and established in line with the science-based GHG
emission reduction levels required to limit global warming to 1.5°C above pre-industrial levels.
5 All GHG emissions figures are approximate.
6 The Company obtained independent third-party assurance of its GHG emissions from SOCOTEC Certification Japan and SCS Global
Services.
7 Refer to the Sustainability Data Book for specific initiatives related to the environment and climate change, as well as data on past
GHG emissions etc. (https://recruit-holdings.com/en/sustainability/data/)
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 25
Our Policies and Actions for Development of Our Organization, Employees and
Workplace
The Company defines strengthening of human capital as the material foundation of its corporate activities, and is working to improve the
working environment and developing human resources to enhance its corporate value sustainably.
Governance
Human capital governance is a top priority for the Company, focusing on designing effective group-wide structures, ensuring smooth
succession planning for key positions and fostering a positive work culture to achieve inclusion & belonging. The Board of Directors, in
consultation with the Nomination and Governance Committee, makes decisions about the key group's structure and personnel to align
with the Company’s management strategy. The CEO chairs the Human Resources Development Committee which reviews the progress
on key personnel succession by each Strategic Business Unit (SBU), including top management positions in major business areas. The
Committee defines job requirements, identifies required human resources, shortlists candidates for various timeframes, evaluates their
strengths and weaknesses and develops training plans. The Committee conducts an annual progress check on the development status
to accelerate these efforts. For more information on employee measures, please refer to Our Policy and Actions for Sustainability as a
Whole, Strategy, (b) Material Foundation for Corporate Activities. For the status of employee diversity, please refer to “Demographics” in
the “Employees”.
Director and COO reports to the Board of Directors on organizational personnel plans, including risk assessments and opportunities
related to human capital and plans to address them. Under the Executive Vice President's supervision, a dedicated department will be
established to address optimal group-wide structural and personnel issues that align with the Company’s business strategies. The
department will oversee succession planning for key positions and promote initiatives that foster a positive corporate culture focused on
promoting inclusion & belonging.
Group-wide Structure to Strengthen Human Capital Development
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 26
Risk Management
The Human Resource Development Committee is responsible for discussing mid- to long-term human capital risks and opportunities. It
conducts detailed discussions on organizational personnel plans to reduce risks and seize opportunities, and reports the results of these
discussions to the Board. Risks related to human capital are shared with the Risk Management Committee and reported to the Board of
Directors before being integrated into the Group risk management process to be centrally and comprehensively evaluated and managed
by the Risk Management Committee.
Strategies, Metrics and Goals
The Company believes that the success of each business primarily depends on the strong alignment of the business model and strategy
with the human capital and organizational strategy, in addition to designing the Group's core organization, proceeding succession of key
positions, and governing the policy to increase diversity. Accordingly, the Company has delegated major authority over organizational
human resources to each SBU to strengthen the link between human capital and business. While each SBU has established its own
human capital indicators and goals based on what is critical to the success of its business, the Company has also established
group-wide indicators and goals to accelerate its efforts to foster a positive corporate culture focused on promoting inclusion &
belonging, which it considers the highest priority for the Group.
a. Maximize the Curiosity and Passion of the Company’s Employee Base
One of the Company’s core values since its founding is to “Bet on Passion,” a concept centered around valuing the individuality of
each employee and creating new businesses and services by investing in the ideas and passions driven by their curiosity. Therefore,
the Company believes that its employees’ curiosity and passion is the key driver of its competitive advantage, and will continue to
develop an internal environment that enhances individuals’ intrinsic motivation.
As a basic premise, the Company strives to prevent discrimination and human rights infringements based on class, race, color, sex,
language, religion, gender, age, political or other opinion, national or social origin, nationality, property, sexual orientation, gender
identity, disability, birth or other status through the “Recruit Group Human Rights Policy.” The Company further seeks to promote equal
opportunities for all and respect for each individual’s own way of living and working. Furthermore, with regard to gender, which is a
common issue across the Company, metrics and goals have been established as part of the Company's business strategy. The Board
of Directors discusses and monitors the progress of these goals based on discussions of the Sustainability Committee. Refer to Our
Policy and Actions for Sustainability as a Whole, Metrics and Targets, for indicators and goals. For more information on employee
diversity, refer to “Demographics” in the “Employees”.
To foster greater intrinsic motivation among employees, Recruit Holdings and its main domestic consolidated subsidiaries adhere to
the principle of “Pay for Performance.” The Company determines employees’1 compensation based on their expected role and the
extent of their contributions using a unique compensation structure called “Mission Grade System,” regardless of age, year of entry, or
any other factor. Every six months, expected outcomes are defined based on the assessment of each individual’s capabilities, and the
value of the role to be performed is determined accordingly. As “mission grades” are determined based on the value of the role,
individuals who take on roles with greater impact, difficulty, and complexity are compensated accordingly across diverse career paths,
including highly professional personnel. Through this system, the Company maintains and promotes both agile and flexible talent
deployment, as well as an organizational culture that enables each individual to fully demonstrate their capabilities. This constitutes an
important foundation supporting the sustainable growth of Recruit Group.
In addition to these systems, the Company continuously fosters an organizational culture that maximizes the intrinsic motives of
individuals as part of its investment in human capital and intellectual property. To achieve this, for example, the Company and its
respective main subsidiaries around the world conduct employee engagement surveys of all employees, so that the Company can
understand the issues it needs to solve to improve employee engagement and implement a cycle of continuously improving
organizational culture.
See below for SBU initiatives to foster organizational culture.
HR Technology SBU
HR Technology SBU operates an online matching and hiring platform, utilizing its extensive data and technology resources to optimize
job search and recruitment processes. To thrive in this business, attracting talented individuals, including engineers from around the
world, and enhancing employees’ motivation toward mid- to long-term business growth is crucial.
Therefore, starting in 2021, the SBU implemented an Employee Stock Ownership Plan Trust (ESOP) for executives and employees.
This initiative aims to ensure its recruiting competitiveness remains on par with globally operating technology companies listed on
stock exchanges and to incentivize our employees to contribute to the long-term growth of the Company. Indeed also provides various
training programs to help employees drive their performance, innovation, and career growth. “Indeed Skills Academy” is a learning
platform designed to foster a culture of continuous learning. Through the platform, employees can learn from their peers and subject
matter experts across diverse fields through cohort expeditions, a community-based learning option, or in a self-paced environment.
“Boost Apprenticeship Program” gives non-technical employees pathways to engineering roles through skill training.
Furthermore, Indeed utilizes employee data to enhance the overall employee experience throughout their journey with the company,
from recruitment to retirement. It also collaborates with Inclusion Business Resource Groups (IBRGs) which are employee-led groups
dedicated to addressing cross-company issues to improve the experiences of employees from a variety of minority groups.
To allow various work styles, Indeed has implemented different systems and mechanisms to promote employee well-being, work-life
balance and overall health. For instance, it has introduced an open paid leave system that allows employees to take additional paid
time off as needed. The SBU also prioritizes creating a comfortable work environment by providing ergonomic equipment for remote
working and offering fitness facilities within its office space.
Staffing SBU
Staffing SBU aims to provide job seekers with employment opportunities, offer flexible labor services to corporate clients and maintain
stable operations across various countries, regions and industries by continuously enhancing and maintaining EBITDA+S margins. To
successfully maximize EBITDA+S margins in each region and market it operates in, it is crucial to be agile and efficient in
decision-making.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 27
To accomplish this, the SBU has implemented a "unit management" approach within its subsidiaries. Under the system, the leaders of
each unit are granted the authority to operate their respective units as if they were independent companies. By encouraging autonomy
at the unit level, this approach promotes a sense of ownership among the responsible individuals and facilitates prompt and
high-quality decision-making. Through this management framework, employees are given the authority to make decisions that impact
results, allowing them to enhance their leadership and decision-making skills, and instills high motivation and a sense of responsibility
in the workforce.
The SBU places great emphasis on having various talents within its decision-making boards. The SBU has implemented a succession
planning process for key positions that prioritizes having a candidate pool with various attributes before discussing hiring and
appointments. The SBU has introduced a global mentoring system to nurture various types of leaders across different organizations,
transcending company and country boundaries across its SBU.
Furthermore, the SBU has implemented engagement surveys at major subsidiaries in various countries and regions to regularly
monitor employee engagement and implement a cycle of continuously improving organizational culture.
Marketing Matching Technologies SBU
Marketing Matching Technologies SBU operates an online platform for sales promotion and SaaS solutions, primarily in the Japanese
market. To ensure the success of these businesses, it is crucial to develop products and services that meet market needs and foster
an environment that encourages diverse employees to contribute their ideas and passions. Additionally, maximizing the power of
teamwork by bringing individuals together who continuously evolve is essential.
To this end, under the basic policy that "people are the source of value," the SBU promotes the autonomous growth of both employees
and the organization by establishing the following structure and systems; the "Mission-Grade Scheme," a system that determines roles
and rewards for employees irrespective of their age, tenure or experience; a "Will-Can-Must” management method, which supports
capability development through work based on employees' own aspirations; the "Talent Development Committee," which discusses
opportunities for employee growth across the organization; "Career Web," an internal mobility system that enables employees to
proactively apply for job opportunities; "Ring," which fosters the creation of new businesses from employees' identification of social
issues or needs; and "Forum," which facilitates the sharing of innovative work and knowledge.
Additionally, the SBU strives to acquire and develop human resources aligned with its business strategy by establishing specific
requirements for each position. For both mid-career and new graduate hiring, the SBU conducts role-based recruitment -such as for
business growth, product growth, engineering, data specialist, design, and finance- to promote employees’ success by leveraging their
individual aspirations, skills, and experience.
The SBU promotes employee development by combining on-the-job training (OJT), such as job placements and assignments that
enhance employees' skills and capabilities, with off-the-job training (OFF-JT) that supports these efforts.
OFF-JT programs include a variety of initiatives, such as IT boot camps for product developers and transition training designed to
support a smooth ramp-up following role changes.
The SBU has embraced a concept called "CO-EN (Park)," which aims to create a space where individual curiosity and passion
become the starting point for collaboration and co-creation beyond company boundaries, that connects to value creation. To realize
this, the SBU provides a flexible environment to cater to the needs of various work styles, so individuals and teams can work
autonomously and productively, and to maximize their creativity. This includes allowing members to have second or side jobs and
providing opportunities of re-employment to those who have previously left the Company.
Since 2006, the SBU has been actively developing systems and support structures to enhance the working experience of each
employee by establishing a specialized employee inclusion team. Starting in 2021, it is also focusing on improving job satisfaction to
promote the activities of each individual. As a first step, the SBU set a gender-related goal for managerial positions, and started its
initiative by clarifying requirements for managerial positions previously based on tacit understanding. This effort has led to an increase
in the number of men candidates alongside women candidates, signifying a positive evolution in the SBU’s management landscape.
Additionally, the SBU is intensifying its efforts to strengthen human capital by visualizing it through various employee data, including
engagement surveys.
b. Continuous Organizational Transformation for Prioritizing Social Value
The Company has always aimed to "Wow the World" and address pressing issues in society by creating innovative products and
services. To continue to achieve this, the Company is constantly transforming its organization to adapt to changes in the market
environment. The ability to drive transformation is a crucial skill for all members of the Board of Directors, regardless of whether they
are internal or external, as it strengthens the Company’s value creation cycle starting with a diverse workforce and enables it to remain
agile in the face of challenges. For more information on the required skills for the Board of Directors, refer to Corporate Governance,
Corporate Governance Overview of this document. For indicators and goals, refer to Our Policy and Actions for Sustainability as a
Whole, Metrics and Targets, Governance.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 28
Recruit Group Value Creation Cycle
For more detailed information on the Company's human capital, refer to the "Human Capital Management" section of Recruit Group
Profile. Additionally, for specific data and detailed measures related to human capital, please refer to the "Human Capital" chapter in the
“Social” section of the Sustainability Data Book.
Recruit Group Profile
https://recruit-holdings.com/files/sustainability/data/Recruit_insideout2025_en.pdf#page=30
Sustainability Data Book (Scheduled to be renewed twice a year, in July 2026 and January 2027)
https://recruit-holdings.com/en/sustainability/data/
1 Relevant employees include those with permanent employment and those in certain employment categories under fixed-term
employment contracts.
Risk Factors
Risk Management Structure
Internal Regulations for Risk Management
The Holding Company considers risk management to be a key priority to ensure the continuity and stable development of our
businesses and endeavors to take an active approach to risk management across our operations. The Holding Company has
established the Recruit Group Risk Management Policy, which provides a comprehensive risk management structure and reporting
system for the entire group, and the Recruit Group Escalation Rules, which aim to achieve prompt reporting and information sharing
related to major issues within the Company.
Risk Management Committee
The Holding Company established the Risk Management Committee, which serves as an advisory body to the Board of Directors, with
Directors and Senior Vice Presidents as members. The Committee monitors the status of each of the SBU risk management activities,
and engages in comprehensive discussions concerning the risks affecting the Company based on a group-wide risk map addressing the
risk items of the Company including each SBU. The Risk Management Committee then selects the high-priority risks of the Company
and implements appropriate countermeasures including monitoring policies.
Risk Management Structure in the Holding Company and Each SBU
The Holding Company has established the position of Director in charge of the Risk Management Division, and this Director also serves
as our Executive Vice President. Because the Holding Company believes that the viewpoints and perspectives appropriate for
responding to such risks differ between Japan and overseas markets, the Holding Company has assigned separate Senior Vice
Presidents in charge of Japan (Risk Management Japan) and overseas (Risk Management International) matters to serve under the
Risk Management Division of the Holding Company with the aim of responding to the high-priority risks applicable to each relevant
region in a manner that is appropriate to the characteristics of such region.
The department in charge of risk management shares information and collaborates with our Internal Audit Department in a timely
manner so that our Internal Audit Department can efficiently conduct operational audits of the status of responses to high-priority risks of
the Company.
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Business Overview | 29
Risk management structure of each SBU is as follows.
a. Subsidiaries of each SBU are required to carry out risk management activities by identifying relevant risks, assessing materiality
of such risks, and implementing countermeasures in response to such risks. The SBU Headquarters of each SBU appoints
personnel responsible for risk management within the SBU with the task of overseeing the risk management function of the SBU
and monitoring the risk management status related to the business of the SBU including its subsidiaries.
b. The SBU Risk Management Committee convenes on a semi-annual basis in order to assess and discuss the risks concerning
the businesses operated under the SBU, determine high-priority risks relevant to the SBU and implement countermeasures, and
monitor the risk management status of such risks. The Executive Vice President and Director in charge of the Risk Management
Division of the Holding Company also participates in the SBU Risk Management Committee meetings to oversee the status of
risk management functions in each SBU.
The Risk Management Division of the Holding Company, which oversees the secretariat of the Risk Management Committee, regularly
reports on risk management activities to our Board of Directors, and has established a structure and reporting system that enables the
Board of Directors to properly monitor the status of risks affecting the Company and the countermeasures in response to such risks.
Our Risk Management Structure
High-Priority Risks and Key Countermeasures
Among the risks that may affect the Company's financial condition, results of operations and cash flows, the high-priority risks that the
Directors and Senior Vice Presidents perceive to be of particular importance and require countermeasures are as follows.
For a detailed explanation of risks associated with Data Security and Data Privacy, which is identified as one of the high-priority risks
below, please refer to "The Company may be subject to liability and regulatory action or suffer reputational damage if the Company is
unable to maintain the security and the privacy of its data or maintain effective policies and procedures for the storage, management,
usage and protection of personal, confidential or sensitive information. " under the caption "Risks Related to the Company’s Business"
below.
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Business Overview | 30
High-priority Risks
Risks associated with Data Security and Data Privacy
Risk Awareness
The Company acquires, manages, and utilizes personal information, including the information of a large number of individual
users, in each of our SBUs. We believe it is our obligation not only to comply with the laws of each area and country, but also to
respect and protect the privacy of individual users in conformity with the expectations of society.
In the unlikely event of an incident involving personal information, this may not only cause disadvantage to individual users, but
we may suffer from a loss in the value and reputation of our brand and confidence in our services from our individual users. We
are also aware that we may be subject to business suspension orders, fines and other sanctions by the authorities, as well as
lawsuits filed by individual users or business clients, which could seriously harm the Company's operating results.
For this reason, the Risk Management Committee of the Holding Company and the Risk Management Committee of each SBU
recognize that data security and data privacy are high-priority risks and continue to implement appropriate measures.
Key Countermeasures1
Depending on the importance of the data or information in our possession, as well as the characteristics of the data or
information to be protected, we have established structures and reporting systems, and measures necessary for each country
and area's laws and regulations. For example, we monitor for unauthorized access, detect and block computer viruses,
preserve communications and access records that may be used for investigations, and conduct periodic vulnerability tests.
Risks That May Affect the Company's Financial Condition, Results of Operations
and Cash Flows
The Company is subject to a number of risks and uncertainties, including but not limited to those described below. Our business, results
of operations, financial condition and cash flows could be materially and adversely affected by any such risks and uncertainties.
The following contains forward-looking statements, which reflect the Company's assumptions, estimates and outlook for the future
based on the Company's plans and expectations as of the end of the current consolidated fiscal year unless the context otherwise
indicates.
Summary
Risks Related to the Company’s Business
1. The Company’s results of operations could be adversely affected by negative economic, social and geopolitical
conditions in the Company’s main operating markets and globally.
2. Competition in the various industries in which the Company operates could reduce its profitability or result in a
decrease in its market share.
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Business Overview | 31
Countermeasures relevant to International
In order to meet industry requirements with regard to data privacy, we have established standards for responding to the laws
and regulations in each jurisdiction, such as the GDPR in Europe, CCPA in the State of California, United States, and others.
With regard to data security, we have established reference standards such as NIST, ISOs, and CIS20, according to the
business and risk characteristics of each SBU.
Countermeasures relevant to Japan
With regard to data privacy, we have formulated a “Personal Data Policy” and established a privacy center. In terms of data
security, we have established a robust framework to strengthen defenses against increasingly sophisticated threats by setting
up dedicated security departments, such as Recruit-CSIRT. We are implementing initiatives to proactively identify the latest
attack tactics and implement preventive measures, as well as to detect damage at an early stage and minimize its impact.
The Company is proceeding with the implementation of the above measures upon consideration of the necessity of such measures
as well as the order of priority of implementing various measures with respect to each subsidiary within the Company.
1 Here, the Company describes the key countermeasures that the Company believes to be effective, as of the date of this
document, in mitigating the anticipated impact of our high-priority risks on the performance of our businesses. However, it is
possible that such countermeasures may not be effective due to a number of reasons, including information leakage caused
by human error or voluntary acts by the Company’s personnel or other parties, or failure of one of our on-line products to
perform as anticipated. In addition, even if such countermeasures are appropriately implemented, there is no guarantee that
the risks affecting the Company’s businesses will be eliminated. Furthermore, it is possible that the significance or nature of
the risks the Company faces may change or that the effectiveness of our measures to address such risks may decrease due to
amendments to existing laws and regulations or the introduction of new laws and regulations concerning the handling of
personal information in the future, the development of new methods of unauthorized access or computer viruses or other
factors.
3. The Company may be unable to innovate and adapt with sufficient speed to meet the rapidly changing needs and
preferences of its individual users and business clients.
4. The Company must rapidly advance its technological capabilities.
5. The Company may not succeed in executing its business strategies, and its estimate of the scope and size of its
total addressable market may not be correct.
6. The Company’s past and future acquisitions, joint ventures and strategic alliances could fail to deliver the
anticipated benefits or otherwise have an adverse effect on the Company’s businesses and results of operations.
7. The Company’s expansive global operations expose it to various risks and challenges.
8. The Company’s inability to attract and retain qualified employees and maintain a positive work environment for its
employees could harm its business and inhibit its ability to operate, grow and achieve innovation successfully.
9. The Company may be subject to liability and regulatory action or suffer reputational damage if the Company is
unable to maintain the security and the privacy of its data or maintain effective policies and procedures for the
storage, management, usage and protection of personal, confidential or sensitive information.
10. Information technology systems are a critical part of the Company’s operations and any cyberattacks, systems
failures or other disruptions affecting these systems could have an adverse effect on its business.
11. The Company’s software applications may contain defects.
12. The Company’s businesses are subject to various laws and regulations.
13. The Company may be subject to legal and arbitration proceedings and litigation, which could be costly and could
materially and adversely affect its brands, reputation, business and results of operations.
14. Our reputation and that of our brands are important to our success, and any damage to them could materially
and adversely affect our business, financial condition and results of operations.
15. The Company relies on third-party service providers, such as search engine platforms, data center providers,
payment providers, sales agents and Internet service providers in various areas of its business.
16. The Company’s advertising, sales and marketing efforts may be ineffective, may lead to increased costs and may
negatively affect its revenue and margins.
17. The Company’s business operations are exposed to natural disasters, terrorism, pandemics, calamities or other
factors.
18. Any impairment of the Company’s non-current assets, including goodwill and intangible assets, or fluctuations in
the value of its securities holdings, could adversely affect its results of operations or financial condition.
19. The Company may have additional tax liabilities.
20. Fluctuations in currency exchange rates could materially and adversely affect the Company’s business, financial
condition and results of operations.
21. The Company relies on borrowings to finance its operations, and factors such as increases in interest rates for its
borrowings could materially and adversely affect us.
22. The Company’s operating results may fluctuate, which makes its results difficult to predict and could cause its
results to fall short of expectations.
23. The Company’s stock price may be volatile or difficult to predict due to fluctuations in its operating results or other
factors.
Detailed Description
1. The Company’s results of operations could be adversely affected by negative economic, social and geopolitical conditions
in the Company’s main operating markets and globally.
The performance of the Company’s businesses is generally sensitive to economic, social and geopolitical conditions in its main
operating markets, including Japan, the United States, Europe and Australia, as well as global economic conditions more generally.
The Company operates its businesses through each of its three segments: HR Technology, Staffing and Marketing Matching
Technologies. In the Company’s HR Matching business, which is operated through HR Technology and Staffing, the results of its
operations are sensitive to negative developments in the labor and employment market resulting from economic downturns or
uncertainty. In times of negative economic conditions, employers may reduce spending on job advertising and other job placement
and staffing services or curtail the hiring of employees or temporary staff due to cost-cutting initiatives or increased access to qualified
job seekers without the use of advertising or other third-party services. Any such reduction in spending or hiring by employers would in
turn reduce demand for the Company’s HR Matching business.
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Business Overview | 32
In addition, in the Company’s Marketing Matching Technologies, adverse economic conditions may affect its business clients’ demand
for its services due to reduction in advertising expenditures and other cost reduction initiatives or changes in consumer spending
activity that negatively affect their businesses. Negative economic trends also typically result in lower sales and downward competitive
pressure on the pricing of the Company’s services across its businesses, and the Company may be unable to reduce selling and
administrative expenses without negatively impacting its market presence, quality of service, infrastructure or capacity to respond to
future increases in demand for its services. As a result, the Company’s results of operations have historically been negatively
impacted by economic downturns.
The outlook for the economy in the Company’s main operating markets remains highly uncertain and could be adversely affected by a
range of economic, social and geopolitical developments.
In addition, with respect to Japan, the economic environment continues to be challenging due to a number of other factors, including
rapid inflation in recent periods, changes in monetary policy including the end of the Bank of Japan’s long-standing negative interest
rate regime in March 2024 and longer-term challenges surrounding the impact of unfavorable demographic trends such as the
declining birthrate and the decline and aging of the overall population. Additionally, political and economic tensions between the United
States and China pose challenges. Also, shifts in foreign, trade, and security policies, including economic sanctions, and changes in
tariff, immigration, and DEI policies in the United States are creating uncertainty. Any of these regional factors as well as factors
outside of the Company’s main operating markets, including the worsening and protracted situation in the Middle East, which has
driven up crude oil prices, the impact of the prolonged military conflict between Russia and Ukraine and related international sanctions
imposed on Russia, which have caused significant increases in energy prices, volatility in financial markets and other disruptions, as
well as uncertainties in the economic outlook in China and the potential escalation of geopolitical risks, including those in the Middle
East, such as the situation in Palestine, as well as those related to Taiwan and North Korea, could impact the regional economy and
the global economy more generally. If demand for the Company's services declines due to stagnant or worsening economic conditions
or the spread of infectious diseases, the Company's business performance may be adversely impacted.
In HR Technology, if there is a decline in demand for hiring by business clients, it could have a negative impact on revenue. In the
United States, a 'low-hiring, low-turnover' environment has taken hold, with both hiring and turnover rates persisting at historically low
levels. Consequently, businesses are adopting a cautious approach to recruitment. Job openings are also trending downward across
many regions outside the US; if this trend continues, there is a possibility that job advertising revenue in HR Technology could be
adversely impacted for a long period of time.
Staffing comprises Japan, and Europe, US, and Australia. For Japan, the demand for temporary staff increased in the current
consolidated fiscal year. On the other hand, in Europe, US, and Australia, demand for temporary staff is declining due to uncertain
economic conditions. In the second half of the current consolidated fiscal year, signs of revenue recovery have begun to emerge in
certain regions and job categories. Nonetheless, given the ongoing economic uncertainty, the sustainability of this recovery remains
unpredictable. If this trend continues or a similar trend is seen in Japan, revenue of Staffing may decline and this may have an impact
on the Company’s operating results.
Marketing Matching Technologies may be impacted by changes in demand arising from mortgage interest rate fluctuations in Japan or
fundamental shifts in consumer mindsets regarding everyday spending, such as on travel and dining. The Company’s operating
results may be affected by a decline in revenue if business clients temporarily suspend spending on advertising or choose
lower-priced advertising packages, or if they experience revenue declines themselves as a result of the weak business environment.
2. Competition in the various industries in which the Company operates could reduce its profitability or result in a decrease in
its market share.
The markets in which the Company operates are highly competitive, and competition has generally intensified in recent years across
its businesses. In particular, certain of the Company’s operating markets have relatively low barriers to entry, which enables new
competitors, including those operating in different industries, to enter these markets relatively easily.
In addition, the Company’s ability to keep pace with increasingly rapid advances in technology is also a key competitive factor in many
of its businesses. If the Company fails to adapt to changes in technology or if its competitors develop more advanced technologies
than those of the Company, its competitive position and market share could be materially and adversely impacted. The Company may
be unable to maintain its competitive position in its operating markets by relying on the strength of its brands, its ability to navigate
current laws and regulations, financial resources and individual user and business client bases or other competitive advantages.
The Company’s current and potential competitors include large global technology companies, including platform businesses, and a
variety of global and regional companies operating in one or more of its target markets. These companies may have more advanced
technological resources, more compelling business models, greater financial resources, more competitive pricing or ability to provide
such pricing, greater global or regional brand awareness, larger user bases, stronger relationships with business clients, greater
access to potential employees, temporary staff and other personnel or superior service, sales, marketing and other resources than the
Company has.
Market shares, particularly in Internet-based services in the Company’s HR Technology and Marketing Matching Technologies, have in
the past been subject to significant shifts from time to time due to the relative ease for individual users to switch to other services. As a
result, the Company’s ability to compete effectively depends on its ability to achieve continued innovation and to improve the
functionality of existing services and introduce compelling new services in order to effectively respond to the evolving needs and
preferences of individual users and business clients.
If the Company fails to keep providing services that gain market acceptance among individual users and business clients and are
differentiated from services provided by its competitors, or if competitors offer services of the same standard at lower prices than the
Company or competitors enhance their competitiveness through mergers and integrations, or if the Company cannot respond to
changes in the regulatory environment, the Company’s competitive position and market share could be materially harmed. Also,
business clients may establish their own user bases and stop using the Company's services.
The Company’s Marketing Matching Technologies has a strong market position and has achieved the top market share in terms of
revenue for many of its core businesses in Japan, which may make future growth for these businesses more challenging relative to
other businesses. If the Company is unable to convince its business clients to maintain or increase their spending with it or if the
Company is unable to expand its client base, the Company may not be able to continue to grow these businesses. Even if the
Company is able to maintain and further increase its market share, the Company’s margins may decrease if the Company is forced to
undertake additional advertising and marketing expenditures, lower its pricing for existing services or introduce new services with
lower profitability to do so.
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Business Overview | 33
3. The Company may be unable to innovate and adapt with sufficient speed to meet the rapidly changing needs and
preferences of its individual users and business clients.
The Company’s business model depends on its ability to offer individual users and business clients services that meet their respective
needs and preferences. Accordingly, maintaining the Company’s competitive position and market share requires that the Company
adapt quickly to changes in such needs and preferences.
For example, increased use of the Internet, social network platforms, mobile devices and other new technologies has resulted in
information being available more rapidly in real time while new technologies have made it relatively easy for new entrants to build user
bases relatively quickly without significant investment. In particular, the Company’s ability to offer effective mobile applications that
provide individual users with an appealing, easy-to-use mobile experience is an increasingly important factor in maintaining and
growing its individual user base and direct user traffic for many of its online services. These and other changes in technology and user
behavior have in turn resulted in changes in the needs of the Company’s business clients.
The Company must invest significant resources to continually enhance and improve its existing services and to introduce new and
innovative features and services that are compelling to individual users and business clients and respond effectively to rapidly evolving
technology and the way it is used or implemented by individual users or business clients. If the Company is unable to accurately
identify and understand the changes in the needs of its individual users and business clients, including the appropriate balance
between such changes in the needs and interests of its individual users and business clients, or if the Company fails to improve or
develop its products and services to meet the needs of its individual users or business clients and predict or respond to technological
changes in a timely and cost effective manner before its competitors, the Company’s individual users and business clients may
discontinue use of its products and services.
The Company’s businesses are also affected by changes in business client preferences and how and to what extent business clients
choose to use its services.
A substantial portion of the Company’s revenue is generated from business clients advertising on the Company’s online platforms in
its HR Technology and Marketing Matching Technologies. For certain services, the Company provides more flexible arrangements to
meet the needs of business clients including SMEs, and contracts with such business clients are sometimes in the form of relatively
short-term advertising arrangements. These short-term arrangements may expose the Company to the risk that its business clients
may switch their advertising to competing platforms or reduce the amount of their spending on the Company’s platforms, or may not
continue to do business with the Company entirely.
In addition, the Company’s business clients could decide to reduce or eliminate the budgets they are willing to commit to it if the
Company does not provide effective advertising solutions, or if they do not believe that their investment in advertising with it will
generate a competitive return relative to other alternatives.
Individual user preferences may change in a manner that increases the Company’s costs, such as expenditures required for
development of new features or services or increased expectations for user perks or other programs that result in additional costs.
In addition, failing to respond quickly to changes in the needs of individual users and business clients, failing to timely develop or
improve services, or failing to balance the interests of both parties—as well as the emergence of competitor services that better meet
these needs—could lead to user and client churn. Such attrition could result in reduced market share and revenue, margin
compression due to price adjustments, or unsuccessful attempts to adapt the business model. Consequently, this may have an impact
on the Company’s operating results.
4. The Company must rapidly advance its technological capabilities.
The markets in which the Company competes are characterized by rapidly changing technologies, which in turn impact individual user
and business client demands and the competitive environment more generally. The Company accordingly believes it is critical to
continuously invest in and improve its technological capabilities, the functionality of its system infrastructure and the reliability of its
products and systems in response to technological innovation.
In addition, because many of the Company’s services are provided over the Internet, the Company needs to continuously modify and
enhance its platform to keep pace with changes in Internet-related hardware, software, communications and database technologies
and standards. If the Company is unable to respond in a timely and cost-effective manner to these rapid technological developments
and changes in standards, the Company’s platform may become less marketable, less competitive, or obsolete, and its operating
results will be harmed. In addition, the Company may be required to make significant investments in order to advance its technological
capabilities, which could in turn impact its profitability.
The Company also recognizes that new technologies, such as AI and machine learning, have been rapidly evolving in recent years.
These technological innovations present significant technical and business challenges and risks, including the following:
- the Company may fail to accurately predict future trends in the areas in which it operates, due to the continuous development of
new devices and technologies such as AI and machine learning. As a result, it may invest in technologies or uses of technology
that ultimately fail to deliver the benefits it anticipates, or become obsolete or less competitive by the time they are launched or
fully implemented;
- the Company must attract, train and retain highly skilled engineers and managers in order to build, maintain and expand its
information technology services and achieve innovation, and these engineers and managers may be difficult to recruit and
expensive to retain;
- the number of different types of mobile devices in use, or the applicable technical standards, could further diversify including as
the result of the adoption of 6G mobile technology across the Company’s operating markets, substantially increasing its product
development and modification costs, and the Company may be unsuccessful in developing appealing products for these devices;
- the Company may fail to maintain or update its technological infrastructure, products and systems to rapidly changing industry or
technical standards;
- the cost of upgrading the Company’s technology or implementing and operating new technology may be substantial and such
upgrades or implementations may not be cost effective;
- any upgrades to the Company’s technology and infrastructure may not achieve the desired results or may otherwise prove
ineffective;
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Business Overview | 34
- products and services incorporating new technology, such as AI and machine learning, may contain bugs, defects, or other design
flaws, resulting in the generation of content that violates laws or social standards, thereby damaging the Company’s reputation
and brands;
- the Company may face competition from businesses that have developed or implemented new technologies, such as AI and
machine learning, faster than it has, or that make better use of such technologies than the Company does; and
- the widespread adoption of horizontal AI services offering high convenience for individual users and business clients could
potentially reduce the Company's user base or replace its services, including those Company services reliant on AI tools provided
by third-party service providers.
5. The Company may not succeed in executing its business strategies, and its estimate of the scope and size of its total
addressable market may not be correct.
In order to achieve further growth of the Company’s business, the Company has adopted a number of business strategies as well as
its long-term strategic objectives for each SBU. The Company’s business strategies entail achieving sustainable growth through the
development of a broad, geographically diverse portfolio of businesses and call for the expansion of existing businesses along with
entry into and development of new businesses, in part through prudent use of strategic alliances and acquisitions. Furthermore, the
Company’s strategies may not be effective, or the Company may be forced to change its strategies in the future due to the difficulty
of accurately forecasting future performance and market conditions and formulating effective strategies based on these forecasts in
the business environment characterized by extremely rapid change and high uncertainty, among various other factors.
The Company has established a number of strategies for each segment that the Company believes will allow it to achieve long-term
revenue and profit growth. However, each of these strategies is subject to a number of risks and uncertainties, including the
following:
HR Technology
In the Company’s HR Technology, the Company intends to pursue continued growth in its global HR matching business
including through the Indeed hiring platforms, while expanding its capabilities through continued growth investments including
acquisitions. However, the Company’s ability to achieve growth may be largely impacted by developments in overall economic
and labor market conditions.
In addition to these external factors, revenue growth may also depend on the Company’s ability to grow its user and customer
base, increase the number of sponsored jobs as well as prices for its hiring services as it automates more of the recruiting
process for its customers. Revenue growth of the HR Technology segment will also depend on its ability to capture a larger
share of the HR Matching market.
In addition, the Company’s recruitment automation solutions may not grow at the pace the Company currently anticipates due to
a variety of factors, such as business clients’ being less willing to adopt recruitment automation than the Company expects.
Also, the Company may fail to respond promptly to emerging challenges that individual users and business clients face in the
recruitment process due to the evolution of technology, such as an increased review burden for business clients caused by
mass job applications via AI and bots. The use of new AI technologies in order to alleviate this potential problem has attracted
regulatory review and litigation particularly in the United States. In addition to these factors, the Company may fail to capitalize
on anticipated market opportunities for a variety of reasons, such as its failure to adopt and utilize new technologies, changes in
the needs of individual users and business clients in the employment market and the constantly evolving regulatory and
competitive landscape regarding new technologies. As a result, there is no assurance that the Company will be able to achieve
growth to the extent the Company expects or at all, or that its investments will achieve the expected benefits.
Staffing
In the Company’s Staffing, the Company intends to focus on improving profitability across its global operations. However, the
Company may experience decreases in profitability, or be unable to achieve improvements in profitability to the extent the
Company expects due to the tightening of regulations in any of its major operating environments, or other factors.
Marketing Matching Technologies
In the Company’s Marketing Matching Technologies, the Company operates its online platforms as well as SaaS solutions
targeting SMEs. The Company may be unable to grow its business in this segment if SMEs do not adopt its SaaS solutions
including Air BusinessTools or its online platforms to the extent or within the timeframe the Company expects, or if the Company
is required to incur significant costs to acquire new clients, whether due to its failure to effectively acquire new individual users
or SMEs as business clients, or its services being less attractive or innovative than those offered by its competitors.
The Company also intends to invest in expanding its presence in the market for its HR Matching business. While the Company’s HR
Matching business currently operates in the online job advertising market through its HR Technology and Staffing, the Company
also intends to continue expanding technology-driven solutions from its HR Technology that create cost efficiencies through
automation of traditional human-driven processes in the job advertising and talent sourcing, direct hire, retained search, internal
recruitment automation, and temporary staffing markets.
However, there can be no assurance that the Company will be able to successfully develop and introduce such solutions or adapt to
the rapid changes in the labor market or that its solutions will gain market acceptance, and the Company may be unable to achieve
a return on its investments in these new solutions. Moreover, although the Company has a long-term vision of offering cloud-based
and agentic AI recruitment automation solutions that connect job seekers and employers without traditional human-driven
processes, there is no assurance that the Company will be able to realize this vision due to a number of factors, including its failure
to develop effective solutions, insufficient demand to support the commercialization of such solutions, or regulatory restrictions. In
addition, even if the Company is successful, the introduction or expansion of such solutions may result in competition between the
Company’s existing businesses, such as its recruitment placement and temporary staffing businesses, and its new or expanded
businesses, which may also result in a reduction in the profitability of its existing traditional businesses.
In assessing its market opportunities, the Company estimates the total addressable market for its businesses based in part on
third-party data and in part on its own market research and assumptions. However, there can be no assurance that any estimates of
the Company’s total addressable market are accurate indications of its actual growth opportunities. In particular, the internal
recruitment automation market is still in its emerging stages, which makes the opportunities in this market inherently difficult to
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 35
estimate. As a result, the growth opportunities of the Company’s businesses may be less than expected, and the Company may
misallocate resources in pursuing such growth opportunities.
As the Company expands its existing services or launches new ones, the Company may face intense competition, greater than
expected costs in establishing or expanding services and hiring and training the necessary personnel, difficulties predicting market
and individual user and business client trends and the performance of its new businesses, returns from new initiatives that are
smaller than expected or slower to materialize, unanticipated costs and difficulties, or other challenges that prevent it from
successfully realizing its business goals.
On the other hand, it is also possible that the Company may need to exit from existing businesses or withdraw from planned
investments or expansions if the Company determines that such business would not yield the desired impact or the growth potential
of such business could not justify the required investment outlay. In these cases, such an exit or withdrawal may cause the
Company to incur substantial costs and its business, financial condition and results of operations could be materially and adversely
affected.
6. The Company’s past and future acquisitions, joint ventures and strategic alliances could fail to deliver the anticipated
benefits or otherwise have an adverse effect on the Company’s businesses and results of operations.
As part of the Company’s business strategy, the Company has actively engaged in acquisitions, minority investments, joint ventures
and other strategic alliances with third parties primarily to expand its businesses globally, acquiring new users, to expand its product
and service offerings and acquiring related technologies. The Company intends to continue to pursue acquisitions and other
strategic investments or alliances in the future if attractive opportunities, as determined by the Company, emerge.
Acquisitions, strategic investments and alliances entail a number of risks, including, among others:
- expenses incurred and difficulties in integrating or assimilating the operations, technology, personnel and culture of acquired
businesses;
- the inability to realize the synergy effects, such as technological development, expansion of individual user traffic and business
client base or cost reductions, that were anticipated in connection with the transaction;
- the difficulty in ensuring that an acquisition reaches its required regulatory compliance standards;
- the potential disruption of, and the distraction of management from, the Company’s regular business operations;
- difficulties and substantial costs in connection with retaining the individual users, business clients, key management or
employees of an acquired company;
- the possibility that strategic alliance partners could later become competitors and utilize the know-how and business relationships
they developed or acquired while in partnership with the Company;
- the failure to ensure that the companies acquired operate in accordance with the Company’s regulatory compliance standards;
- with respect to foreign acquisitions and global expansion, uncertainty regarding, and changes in, foreign laws and regulations,
local restrictions on foreign investments and challenges with respect to different employee/employer relationships, labor
conditions, existence of workers’ councils and labor unions, cultural, linguistic or operational differences and additional risks
arising from the local and regional social, political, regulatory and economic environment;
- the possibility of overestimating the value of an acquired company, underestimating its legal or contingent liabilities or receiving
insufficient indemnification of liabilities or insufficient escrowed amounts or insurance to secure such indemnities from the seller;
- recording significant goodwill and intangible assets that could be subject to future impairment, as described elsewhere in this
section; and
- incurrence of additional debt in connection with financing acquisitions and investments.
As a result of such risks, the Company may not be able to fully realize the benefits that the Company anticipates from any given
transaction, including increased revenue and profits and other expected strategic benefits, within the expected timeframe or at all.
Furthermore, for strategic reasons, the Company has in the past acquired and may in the future acquire target companies that are
unprofitable, and the consolidation of such target companies into its overall results may materially and adversely affect its
consolidated financial condition and results of operations.
Although the Company conducts due diligence reviews of acquisition targets, there can be no assurance that its due diligence
process will disclose all relevant risks, legal, compliance or regulatory issues, losses and other liabilities or that its assessment of
the target’s risks and liabilities will be accurate. In particular, with respect to acquisitions and investments in the technology sector,
the Company may have difficulty accurately assessing the future viability and growth trajectory of target companies or technologies,
especially where the relevant technologies are in the early stages of development and still relatively untested or are rapidly evolving
in ways that are difficult to predict. As a result of these uncertainties, technology companies that the Company acquires may not
attain profitability in the timeframe the Company expects or at all, and the Company may be unable to achieve the expected benefits
from its investment.
The Company may also face uncertainties when the Company acquires companies with a limited operating history or a
management system that requires improvement, which is often the case for early stage companies the Company targets in the
technology sector, including potential compliance issues or liabilities that were not identified in due diligence. Accordingly, such
risks, losses or other liabilities could have an adverse impact on the Company’s business, financial condition and results of
operations.
In addition, in cases where the Company acquires non-controlling interests in entities, the Company may not have the capability to
effectively monitor or exercise control over the management of the entities in which the Company invests or the direction that the
entity will take. As a result, the Company may not be able to cause any companies in which the Company holds non-controlling
interests to implement what the Company views as optimal management policies or strategies that would enable it to achieve the
expected benefits from strategic investments. This could have an adverse effect on the Company’s business, financial condition and
results of operations. In addition, joint ventures and other strategic alliances could limit the Company’s future flexibility to work with
other potential partners.
Recruit Holdings’ Annual Report translated from Yukashouken Houkokusho FY2025
Business Overview | 36