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Overview of Business Strategy

Recruit Group believes swift decision-making is essential to maximize enterprise value and shareholder value by actively responding to the rapidly transforming Internet business industry and identifying business opportunities globally. As such, the Group has expanded its businesses through each of its three Strategic Business Units (SBUs), HR Technology, Media & Solutions and Staffing, since FY2016.

Three Business Segments

HR Technology (HR Technology SBU)

This segment consists of the operations of Indeed and Glassdoor. Indeed, an online job search engine, enables users to find jobs and employers to hire talent through the platform. Glassdoor, an online jobs site, is known for introducing greater workplace transparency through its database of company reviews, salary information and other company insights.

Media & Solutions (Media & Solutions SBU)

This segment consists of two business operations, Marketing Solutions and HR Solutions. The segment has established leading positions in many business fields within Japan through continuously expanding client industries and service offerings, by leveraging our own media for HR and marketing business and our solutions business as an important asset which have been cultivated since Recruit Group's foundation.

Staffing (Staffing SBU)

This segment consists of Japan and overseas operations, primarily offering temporary staffing services for clerical, manufacturing, light industry and various professional positions. The segment provides optimal matching services to benefit both job seekers and companies seeking employees in each country, and sup-ports various ways of working in a changing global work environment by increasing employment opportunities.

Overview of Mid-Term Strategy

HR Technology

This segment aims to further expand its presence globally through the existing business of Indeed, and Glassdoor. The segment aims to drive future growth by investing in R&D or through M&A to create new and innovative ways to drive efficiencies in recruiting and hiring processes. We will look for opportunities to expand into other HR related businesses beyond job advertising by contributing to the efficiency of recruiting and hiring processes. While continuing to aggressively invest in our existing job advertising business to drive future growth.

Media & Solutions

This segment believes it is important to provide small-to-mid sized enterprise clients with new services to improve their operational efficiency, and to expand targeted industries to reach more enterprise clients for sustainable revenue growth, in addition to operating the existing businesses. By accelerating the initiatives mentioned above while maintaining a high EBITDA margin, the segment aims to expand its client base, diversify its business portfolio, and achieve sustainable growth mitigating the impact of external environmental changes.

Staffing

Through the penetration of "Unit Management," Recruit Group's unique management methodology, and continuous technology improvements, the segment will promote improvements in operational efficiency.
Japan operations aim for stable growth against a backdrop of a favorable market environment in Japan.
Overseas operations focus on improving EBITDA margin continuously, by introducing Unit Management System which has been implemented in Japan operations to overseas subsidiaries.

Revenue and EBITDA by Segment

Revenue and EBITDA by Segment

*1 EBITDA = Operating income + depreciation and amortization ± other operating income/expenses
*2 Revenue and EBITDA are calculated without eliminations and adjustments, and include intra-group transactions and transfers. Therefore, the total sum of the three segments does not agree with consolidated revenue.