Review of
Fullcast
Consolidated Operating ResultsFirst Quarter, Fiscal Year Ending September 2003
People FULLCAST Jobs
E
AgendaAgenda■ Highlights of the First Quarter (October to December), Fiscal Year Ending September 2003
■ Operating Results and Progress for the First Quarter
(October to December) of the Fiscal Year Ending September 2003
■ Operating Results by Business Segment for the First Quarter (October to December) of the Fiscal Year Ending September 2003
・
Spot Business
・
Factory Business
・
Technical Business
■ Conclusion
6 ,152 6 ,2305 ,877 5 ,666
6 ,140 6 ,198 6 ,401
7 ,581
9 ,067
0
1 ,000
2 ,000
3 ,000
4 ,000
5 ,000
6 ,000
7 ,000
8 ,000
9 ,000
10 ,000
Oct.-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec .
2HighlightHighlight1st Qtr., Fiscal Year Ending September 2003
19.6%18.4%
-5.7%-3.6%
8.4%
0.9%3.3%
1.3%
-20.0%
0.0%
20.0%
Consolidated Net Sales
Percent change
compared to same period of prior year
Unit: Million yen
20001st Qtr.
20012nd Qtr.
20013rd Qtr.
20014th Qtr.
20011st Qtr.
20022nd Qtr.
20023rd Qtr.
20024th Qtr.
20021st Qtr.
FY ended Sep. 2001 FY ended Sep. 2002 FY ending Sep. 2003
1,318
1,760 1,6631,518 1,520
1,634 1,669 1,701
2,014
0
500
1 ,000
1 ,500
2 ,000
2 ,500
3 ,000
3 ,500
4 ,000
4 ,500
5 ,000
Oct .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec .
22.2%22.4%
26.1%26.4%24.8%
26.8%28.3%
21.4%
28.3%
0.0%
10.0%
20.0%
30.0%
3Consolidated SG&A Expenses
FY ended Sep. 2001 FY ended Sep. 2002
20001st Qtr.
20012nd Qtr.
20013rd Qtr.
20014th Qtr.
20011st Qtr.
20022nd Qtr.
20023rd Qtr.
20024th Qtr.
SG&A expenses decreased despite an increase in the
number of offices.
20021st Qtr.
FY ending Sep. 2003
HighlightHighlight1st Qtr., Fiscal Year Ending September 2003
Unit: Million yenSG&A
expenses as % of net
sales
833
399
308
367
419
372
179
540
637
0
100
200
300
400
500
600
700
800
900
Oct .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec . Jan .-Mar . Apr .-June Ju ly-Sep. Oc t .-Dec .
UP 18%
4
Unit: Million yen
FY ended Sep. 2001 FY ended Sep. 2002
20001st Qtr.
20012nd Qtr.
20013rd Qtr.
20014th Qtr.
20011st Qtr.
20022nd Qtr.
20023rd Qtr.
20024th Qtr.
20021st Qtr.
FY ending Sep. 2003
Consolidated Operating IncomeHighlightHighlight1st Qtr., Fiscal Year Ending September 2003
5
0
20
40
50
60
70
80
+540 +637
SpotBusiness +239
FactoryBusiness
+2 OtherBusinesses-77
TechnologyBusiness-59
Eliminations or Company Total
-8
Spot BusinessThe 11 offices opened in the fourth quarter of the previous year fully contributed to first-quarter results.
Technology BusinessThe task is to increase
operating income.
FY ended Sep. 20024th Quarter
Operating income
FY ending Sep. 20031st Quarter
Operating income
Analysis of Factors CausingChange in Operating Income
HighlightHighlight1st Qtr., Fiscal Year Ending September 2003
Unit: Million yen
7 .0%
6 .5%
5 .2%
13 .5%
6 .4%6 .8% 6 .0%
2 .8%
7 .1%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Oct.-Dec. Jan.-Mar. Apr.-June July-Sep. Oct.-Dec. Jan.-Mar. Apr.-June July-Sep. Oct.-Dec.
6Operating Income Margin (%)
FY ended Sep. 2001 FY ended Sep. 2002
20001st Qtr.
20012nd Qtr.
20013rd Qtr.
20014th Qtr.
20011st Qtr.
20022nd Qtr.
20023rd Qtr.
20024th Qtr.
20021st Qtr.
FY ending Sep. 2003
HighlightHighlight1st Qtr., Fiscal Year Ending September 2003
27.1%
9.8%
1.0%
62.1%
67.2%
2.2%
13.3%
17.3%
Commentary on financial results for the first quarter, FY ending Sep. 30, 2003
(Oct. to Dec. 2001)
(Oct. to Dec. 2002)
7Financial Results
Operating results for the first quarter, FY ended Sep. 2002
Operating results for 1Q of FY ending Sep. 2003
Net sales % Net sales %■Spot 4,127 67.2% 5,626 62.1% 136.3%
■Factory 1,060 17.3% 2,458 27.1% 231.9%
■ Technology 819 13.3% 887 9.8% 108.3%
■Other 134 2.2% 95 1.0% 70.9%
Total 6,140 100.0% 9,066 100.0% 147.7%
FY ending 9/2003(Oct.-Dec.)
FY ended 9/2002(Oct.-Dec.) Compared to
prior FY
Spot Business
◆ Client streamlining of physical distribution centers ◆ Increased needs for effective use of outsourcing and
trend toward oligopoly
◆ Provision of services unique to the Fullcast Group
Factory Business
◆ Opening of new recruitment offices (five locations)
Favorable growth at FC Central
Technology Business
◆ Recovery in capacity utilization in technical expert dispatching
◆ Poor showing for the contractual development services business
First Quarter
■ Increase sales by adding strategic, highly cost-effective offices
■ Expand business territories through M&A, business alliances
■Strengthen governance functions
・Monitoring of operations by outside directors
・
Increase disclosure speed, etc.
Future strategies Unit: Million yen
HighlightHighlight1st Qtr., Fiscal Year Ending September 2003
Operating Results by Segment First Quarter, Fiscal Year Ending September 30, 2003
Spot Business
Provision of High Value-Added Services and Transition to a
Healthy Revenue Trend
9Spot BusinessSpot Business
4,426
5,626
0
1,000
2,000
3,000
4,000
5,000
6,000
第4四半期 第1四半期
470
709
0
250
500
750
第4四半期 第1四半期
UP 27% UP 51%
FY ended Sep. 20024th Quarter
FY ending Sep. 20031st Quarter
FY ended Sep. 20024th Quarter
FY ending Sep. 20031st Quarter
10.6% 12.6%
Earnings Comparison (02.4Q・03.1Q)
Operating incomeNet salesUnit: Million yen Unit: Million yen
Operating income margin
10
Oct. -4.5 -15.5
Nov. 4.5 -8.2
Dec. -1.0 -12.0
Jan. 0.2 -9.6
Feb. -1.2 -5.8
Mar. -0.4 -6.1
Apr. 4.2 -4.2
May 9.3 -6.2
June 13.4 1.7
July 16.6 -2.2
Aug. 39.6 28.5
Sep. 49.0 33.7
Oct. 47.9 ※38.1
Nov. 45.0 ※35.1
Dec. 50.2 ※35.9
Conso lidated
2002
※Indicates Spot Business prior-year comparison
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Consolidated
Non-consolidated/Spot
FY ended Sep. 2002 1Q of FY ending Sep. 2003
Oct. Nov. Dec. Jan. Feb. Mar. Apr . May June July Aug. Sep. Oct. Nov. Dec.
Effect of sales organization reforms implemented in April
Fullcast’s monthly net salesresults compared to prior year
FY ended Sep. 2002
FY ending Sep. 2003
Non-
consolidated
Unit: %
Net Sales Compared to Prior YearSpot BusinessSpot Business
11
0
50
100
150
200
250
300
July 2002 Aug. 2002 Sep. 2002 Oct. 2002 Nov. 2002 Dec. 2002
0
5
10
15
20
25
30
35
40
45
50Net sales
Number of client companies
Replacement of regular employee operations
Change in customized client solutions
Provision of high-quality value-added services
0
50
100
150
200
250
300
350
400
Oct. 20 0 1
Nov. 20 0 1
Dec . 20 0 1
Jan. 2
0 0 2
Feb. 20 0 2
Mar . 2 0 0 2
Apr. 2 0 0 2
May 2 0 0 2
June 2 0 0 2
Ju ly 20 0 2
Au g. 20 0 2
S ep. 20 0 2
0
20
40
60
80
100
120
140
160
Change in net sales
Total number of locations
◆
◆
◆
High-quality SolutionsSpot BusinessSpot Business
Net sales and number of officesUnit: Million yen Unit: Offices
Unit: OfficesUnit: Million yen
97.5%
100.8%
99.2%
99.8%
104.7%
104.8%
106.9%
122.8%
123.0%124.9%
117.6% 114.4%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
111.1%
100.0%
113.0%
93.8%
78.8%73.6%
71.6%55.3%
114.0%101.3%
106.6%
109.7%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
12
During the first quarter (Oct. to Dec.), Fullcast focused on uncovering latent demand at existing clients.
2002
Number of RegisteredCustomer Companies
Number of spot transaction customer companies compared to prior year
Number of newly registered spot business companies compared to prior year
Compared to prior year
Spot BusinessSpot Business
Compared to prior year
Stable Growth in the Automotive Sector
Operating Results by Segment First Quarter, Fiscal Year Ending September 30, 2003
Factory Business
9799
0
50
100
第4四半期 第1四半期
14Factory BusinessFactory Business
1,999
2,458
0
500
1,000
1,500
2,000
2,500
第4四半期 第1四半期
UP 23%UP 2%
4.8% 4.0%
Net sales Operating incomeUnit: Million yen
FY ended Sep. 20024th Quarter
FY ending Sep. 20031st Quarter
FY ended Sep. 20024th Quarter
FY ending Sep. 20031st Quarter
Operating income margin
Earnings Comparison (02.4Q・03.1Q)
Unit: Million yen
15
FY ended Sep. 20024th Quarter
Operating income
0
25
50
75
100
125
+96 +99
+26
Decrease in gross profit at Fullcast Factory
Increase in SG&A expenses at Fullcast Factory
-40
-31
+84
+11
-47
Personnel reinforcement attendant on business expansion
Analysis of Factors CausingChange in Operating Income
Increase in net sales at Fullcast Factory
Increase in net sales at Fullcast
Central
Fullcast Central expansion of business and
higher SG&A expenses
FY ending Sep. 20031st Quarter
Operating income
Unit: Million yen
Factory BusinessFactory Business
Increase in gross profit at
Fullcast Central
Warehouse
4.3%
Automotive
22.4%
Wood
products
18.6%
Machinery
10.9%
Electron
16.6%
Technical
4.8%
Other
22.5%
Machinery9.8%
Warehouse3.0%
Automotive40.8%
Foodproducts
15.9%
Electron11.6%
Technical2.9%
Other15.8%
16
Sales contribution by industry, FY ended Sep. 2002
Sales contribution by industry, 1Q (Oct. to Dec.) of FY ending Sep. 2003
FY ended Sep. 2002, full year
FY ended Sep. 2002, Oct. to Dec.
Favorable growth at Fullcast Central62.2% 61.8%
Increased diversification of client companies
Percentage of Net Salesby Industry
Percent accounted for by the top 20 companies
Factory BusinessFactory Business
Disposition of Unprofitable Divisions as a Rapid Response to a Slump in the
Contractual Development Services Sector
Operating Results by Segment First Quarter, Fiscal Year Ending September 30, 2003
Technology Business
28
-31
-40
-20
0
20
40
第4四半期
18Technology BusinessTechnology Business
896 887
0
500
1,000
第4四半期FY ended Sep. 20024th Quarter
Technical Business
FY ending Sep. 20031st Quarter
Technology Business
3.2% -
Remark: The results for
Fullcast
System Consulting Co., Ltd., which were included in the Other Businesses segment until the fiscal year ended September 2002, appear under Technology Business on account of a merger conducted in October 2002.
Earnings and Operating IncomeComparison (02.4Q・03.1Q)
Net sales Operating income (loss)Unit: Million yen Unit: Million yen
FY ended Sep. 20024th Quarter
Technical Business
FY ending Sep. 20031st Quarter
Technology Business
Operating income margin
-31
191Q Income Analysis by Business Segment—Part 1
887
0
500
1,000
Net sales Operating income (loss)
FY ending Sep. 20031st Quarter
Technology Business
FY ending Sep. 20031st Quarter
Synergy from disposition or merging of unprofitable divisions to come!
664
223
Breakdown
Contractual development services and other businesses
Technical personnel dispatch business
-44
-53
66
-55
-35
-15
5
25
Breakdown
Elimination or indirect business
Technical personnel dispatch business
Technology BusinessTechnology Business
Unit: Million yen Unit: Million yen
Contractual development services and other businesses
-31
1Q Income Analysis by Business Segment—Part 2
Operating income (loss)
FY ending Sep. 20031st Quarter
20
0
20
Additional gross profit on a work-in- process basis
Percentage-of-completion basis
Technology Business work-in- process inventory (end-December)
Additional net sales on a work- in-process basis
173 million yen
224 million yen
51 million yen ※3
※1 Work-in-process inventory for the Group in the amount of 170 million yen
has been booked. The effect of additional gross profit attendant
on the work-in-
process inventory on the consolidated results is negligible. ※2, ※3 Delivery of work in process and the booking of sales is planned by September 2003. However, there is risk of the work in process not being reflected in the results for the fiscal year ending September 2003 on account of a delay in the booking of sales or other reasons.
※1
※2
20Technology BusinessTechnology Business
Unit: Million yen
80.0%
82.0%
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
102.0%
10月 11月 12月 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
稼働率
受注単価
21
96.0%
99.0%
Capacity utilization ratioMaintained order unit prices, and increased
capacity utilization ratio
Order unit prices
Technical Staff Utilization Rate and Order Unit Prices
New graduate employees joined company
FY ended Sep. 2001 FY ended Sep. 2002
20001st Qtr.
20012nd Qtr.
20013rd Qtr.
20014th Qtr.
20011st Qtr.
20022nd Qtr.
20023rd Qtr.
20024th Qtr.
20021st Qtr.
FY ending Sep. 2003
(Using average order prices in FY ended Sep. 2001 as 100)
Capacity utilization ratio
Order unit prices
Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
Technology BusinessTechnology Business
Operating Results and Progress for the First Quarter (October to December) of the Fiscal Year Ending
September 2003
Continuous Growth in Operating Results from the Fourth Quarter of
the Previous Fiscal Year
23Operating Results Operating Results and Progressand Progress
1Q of FY ending Sep. 2003Full year, FY ending Sep. 2003 (forecast)
Net sales 9,066 【28.3%】 32,000 (+21.5%)
Operating income 672 【29.9%】 2,250 (+51.6%)
Net income 331 【28.2%】 1,100 (+217.9%)
EPS: Yen 7,637 【30.2%】 25,318
ROE: % - 13.8
Shares O/S 43,446 ※ 43,446 ※
Capital investment 59 800
Depreciation exp. 46 【18.4%】 250
※
No. of shares O/S on Sep. 30, 2002
Fiscal Year Outlook
Unit: Million yen Figures in parentheses show the percent change from prior year.
Note: The above plan is the Company’s outlook at the present time. Actual results are not guaranteed and may vary.
Figures in parentheses show change from prior year.
24Group Overview Reference InformationReference Information
Company nameFullcast Co., Ltd. Fullcast Office Support Co., Ltd. Fullcast Technology Co., Ltd. Fullcast Factory
Co., Ltd.Fullcast Central
Co., Ltd.Fullcast Sports
Co., Ltd.
Segment Spot Business Spot Business Technology Business Factory Business Factory Business Other BusinessOf f ice-related ST contractual work and
temp serv ices
Executive search and placement service※
Net sales for 1Q of FYending Sept. 2003 5,633 mil. yen 310 mil. yen 912 mil. yen 1,568 mil. yen 899 mil. yen 36 mil. yen
Employees 62 2 15 17 11 -
Offices 282 18 564, including 490 engineers 94 53 3
Factory linecontracting w ork
Strengtheningthe
recruitmentBusiness lines ST contractual w ork Total technical services business
Factory linecontracting w ork
Company nameFullcast Co., Ltd. Fullcast HR
Consulting Co., Ltd.Fullcast With Co., Ltd. Fullcast System
Consulting Co., Ltd.Fullcast Factory
Co., Ltd.Fullcast Central
Co., LtdFullcast Sports
Co., Ltd.Commenced
operationsSept. 1990 Mar. 2000 Oct. 1998 Nov. 1999 Sept. 2000 Apr. 2002 Jun. 2000
Segment Spot Business Technical Business Technical Business Other Business Factory Business Factory Business Other Business
ST contractual w ork Executive searchand placement
Technical supportserv ices
Computer sy stemdev elopment work
Factory line contractingwork
Factory line contractingwork
Strengthening therecruitment
■Logistics■Warehouse work■Sanitation & cleaning■Ev ents
Outsourcing Div ision■Logistics■Warehouse work■Sanitation &cleaning■Ev ents
Of f ice Div ision■Generaltemporary help■OA data entry■Filing■Reception
■Temporary staf fagency specializing intechnical staf f■Semiconductorengineers in particular
■Business sy stemdev elopment and consulting■Logistics sy stemdev elopment and consulting■Prov ision of inf ormationsecurity serv ices
■Precision machinery■Steel & metals■Chemicals & rubber■Textiles, pulp, etc.
■Automobile bodies andparts
Net sales forFY ended Sept.
200214,815 mil. yen 3,070 mil. yen 621 mil. yen 194 mil. yen 3,113 mil. yen 621 mil. yen 4,885 mil. yen - 228 mil. yen
Percentageownership - Consolidated 100% Consolidated 82.4% Consolidated 100% Consolidated 100% Consolidated 55%
Consolidated100%
Employees 48 10 2 - 14 - 16 6 -
Offices 242 39 20 13 481, including 431engineers
64 97 35 3
Oct. 1997
Spot Business
ST contractual w ork
Fullcast Lady Co., Ltd.
Consolidated 100%
Business lines
October 2002 merger January 2003 merger October 2002 merger
※Remark: Results for the personnel placement business appear under Other Businesses.
25CommitmentCommitment
Fullcast’s goal is to be the company with thebest disclosure in the liberal HR markets
http://www.fullcast.co.jp/e-mail:[email protected]
IR Executives
Takehito Hirano
Yutaka KuboIR Manager: Shingo Tsukahara
President & CEOCorporate Officer & GM,Management Planning Department