Mid-Term Strategy

From fiscal 2015 to fiscal 2016, the EBITDA margin improved steadily at subsidiaries in North America, Europe and Australia. Recruit aims to continue strengthening the EBITDA margin on a global scale.
Moreover, Recruit aims to achieve overseas sales of 1 trillion yen around 2020.

Proliferation of Unit Management

Improving EBITDA margin at subsidiaries of each region

Japan, 2017.3 7.0%, 2016.3 7.0%, 2015.3 7.0%, 2014.3 6.6%, 2013.3 7.2%, North America, 2017.3 6.3%, 2016.3 5.5%, 2015.3 5.5%, 2014.3 5.0%, 2013.3 4.3%, Europe, 2017.3 4.5%, 2016.3 2.7%, Australia, 2017.3 3.6%, 2016.3 2.8%

*Figures of North America, Europe, and Australia were calculated by simply combining individual subsidiaries

We do Unit management to divide the organization based on the difference of the market. Each unit is regarded as a company, and the Unit Manager is given authority to make decisions with the ultimate aim of maximizing profits in their unit. Strategies are optimized for each market and then implemented. There are a few reasons that application of normal productivity improvement method is difficult for Staffing Business. Firstly, the "Product" of a Staffing service is the WORKFORCE of temporary workers, therefore it is difficult to differentiate the service. Secondly, a majority of COGS are salaries paid to workers, therefore it would be difficult to reduce them. Thirdly, Staffing is a local business, where workers want to find a job close to their homes, which means the concept of pursuing efficiency with "massive scale and standardized service for a large area" does not work. In order to increase productivity and profitability with these particular circumstances, we need to continue bottoming-up small improvements and introducing an autonomous management system for each "unit," which is a smaller division of the organization. This is the optimal approach.
With Unit Management, it becomes possible to encourage the autonomy of each employee belonging to the unit, enhance their business awareness and aim to accelerate decision-making.

Unit Management

Around 2020 Sales 1 trillion, 2017.3 6,052, approx. 7,600*, 2016.3 4,758, 2015.3 2,856, 2014.3 2,538, 2013.3 2,095

*Estimated amount assuming there was a USG People full-year contribution

Aiming at ¥1trillion Overses Sales around 2020

Figure of Unit Management System

History of Portfolio Expansion in Staffing Business

When it began developing Staffing overseas, Recruit targeted the advanced economies that make up over 70% of the ¥40 trillion staffing market, namely North America, Australia and Europe, in addition to Japan. Recruit has made a number of acquisitions overseas, beginning with The CSI Companies in 2011. As a result, Recruit has built a portfolio that covers a broad swath of targeted overseas market, with revenues reaching ¥463.4 billion in Japan, ¥366.3 billion in Europe, ¥237.4 billion in North America and ¥155.6 billion in Australia.

Sales by Region*1, 2

Figure of Sales by Region
  1. *1 Sum of sales in FY2016
  2. *2 Figures of North America, Europe, and Australia were calculated combining individual subsidiaries
  3. *3 Estimated amount assuming there was a USG People full-year contribution

Our 3 business segments