Recruit Holdings Announces Reduction in Capital Reserves and Increase in Stated Capital

TOKYO, JAPAN (May 14, 2019) - Recruit Holdings Co., Ltd. (the "Company") announced today that it resolved at its Board of Directors meeting held today to submit a proposal to reduce the amount of capital reserves and increase the amount of stated capital to the 59th Ordinary General Meeting of Shareholders (the "General Meeting") scheduled for June 19, 2019.

1. Purpose of Reduction in Capital Reserves and Increase in Stated Capital

In order to achieve mid-to-long term business development, and improve its management soundness by strengthening its financial base, the Company proposes to (i) reduce capital reserves and increase stated capital by the same amount in accordance with Article 448, Paragraph 1 of the Companies Act, and (ii) to reduce other capital surplus and increase stated capital by the same amount in accordance with Article 450, Paragraph 1 of the Companies Act.

2. Outline of Reduction in Capital Reserves and Increase in Stated Capital

(1)The amount of capital reserves to be reduced
Capital reserves of 6,716,389,419 yen shall be reduced by 6,716,389,419 yen.

(2)The amount of other capital surplus to be reduced
Other capital surplus of 24,857,789,236 yen shall be reduced by 23,283,610,581 yen.

(3)Method for reducing the amounts of capital reserves and other capital surplus
The sum of the amount to be reduced from capital reserves and other capital surplus shall be transferred in its entirety to stated capital. As a result, stated capital will amount to 40,000,000,000 yen.

3. Schedule

(1)Date of resolution at the Board of Directors meeting
May 14, 2019

(2)Date of resolution at the General Meeting of Shareholders
June 19, 2019 (planned)

(3)Effective date
June 20, 2019 (planned)

4. Future forecasts

These action will not have a significant impact to the Company's financial results as there will be no change in the total amount of net assets. The aforementioned matter shall be implemented subject to approval at the General Meeting scheduled for June 19, 2019.

Recruit Holdings Announces Reduction in Capital Reserves and Increase in Stated Capital (127 KB)