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Financial Results

Consolidated Financial Results

(In billion yen) FY2018 FY2019
Full Year Full Year YoY
Revenue 2,310.7 2,399.4 +3.8%
Adjusted EBITDA1,2,3 293.2 325.1 +10.9%
Adjusted EBITDA margin2,4 12.7% 13.6% +0.9pt
Operating income 223.0 206.0 -7.7%
Profit for the year 175.3 181.2 +3.3%
Profit attributable to owners of the parent 174.2 179.8 +3.2%
Adjusted EPS(yen)5 107.10 121.03 +13.0%

Consolidated revenue for FY2019 was 2.39 trillion yen, an increase of 3.8% year on year. This was due to the growth of HR Technology and Media & Solutions, with the growth of HR Technology contributing significantly. Excluding the negative impact of foreign exchange rate movements of 48.3 billion yen, consolidated revenue growth for FY2019 was 5.9% year on year.

Consolidated adjusted EBITDA for FY2019 was 325.1 billion yen, an increase of 10.9% year on year, resulting from adjusted EBITDA growth in HR Technology and Media & Solutions.

Consolidated operating income for FY2019 was 206.0 billion yen, a decrease of 7.7% year on year. This was mainly due to goodwill and intangible asset impairment losses in Q4 FY2019. Excluding impairment losses, consolidated operating income for FY2019 was 237.4 billion yen, an increase of 6.4% year on year.

  • 1. Adjusted EBITDA = operating income + depreciation and amortization (excluding depreciation of right-of-use assets) ± other operating income/expense
  • 2. The Company has applied IFRS 16 using the modified retrospective method of adoption with the date of initial application of April 1, 2019, and changed its management KPI from EBITDA to adjusted EBITDA (such EBITDA is adjusted to exclude the main impact of the IFRS 16 adoption). Under this method, the standard is applied retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. The amounts presented for the three months and the fiscal year ended March 31, 2019 represent EBITDA and EBITDA margin as calculated prior to the adoption of adjusted EBITDA as a management KPI.
  • 3. EBITDA = operating income + depreciation and amortization ± other operating income/expenses
  • 4. Adjusted EBITDA margin = adjusted EBITDA/revenue
  • 5. Adjusted EPS = adjusted profit 6 /(number of shares issued at the end of the period - number of shares of treasury stock at the end of the period)
  • 6. Adjusted profit = profit attributable to owners of the parent ± adjustment items 7 (excluding non-controlling interests) ± tax reconciliation related to certain adjustment items
  • 7. Adjustment items = amortization of intangible assets arising due to business combinations ± non-recurring income/losses 8
  • 8. Non-recurring income/losses = gains or losses from disposals of shares of associates, expenses relating to Company restructuring, gains or losses from the sale or impairment of property and equipment, and income and expense items that the Company believes are unusual or non-recurring in nature which do not reflect the Company's underlying results of operations.