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Management Policy

(1) Basic Management Policy of the Group

The Group defines its Mission; "We are focused on responding to the needs of society by creating new value, thereby contributing to a brighter and more fulfilling world in which all individuals can live life to the fullest" and "Creation of new value," "Contribution to society," and "Respect for all individuals" as The Recruit Way in our group management philosophy.

Under this management philosophy, we endeavor to become a company that supports positive actions of each individual by producing as many "No. 1 Matching Services" as possible that connects the industry and people, and conduct business operations focusing mainly on Marketing Media, HR Media and Staffing business.

We will work on maximizing shareholder and corporate value through these business activities.

(2) Target Management Index

The Group will carry out various growth investments, including M&As, ever more flexibly and aggressively to maximize profit growth over the long-term. In line with this, we will also focus on increasing shareholder value, and have therefore set a new management target―a high single-digit compound annual growth rate for "adjusted EPS"*1 over the three years ending March 31, 2019.

In addition, in seeking to achieve our management target, we will set a single-year growth rate of "EBITDA of existing businesses" for each fiscal year, taking into account an appropriate balance of investments and earnings growth.

1 Adjusted EPS: adjusted net income*2 / (number of shares issued at the end of the period - number of treasury stock at the end of the period)

2 Adjusted net income: net income attributable to owners of the parent ± adjustment items*3 (excluding noncontrolling interests) ± tax reconciliation regarding the adjustment items

3 Adjustment items: amortization of goodwill and intangible assets arising due to business combinations ± extraordinary income/losses

(3) Issues to be Addressed and Management Strategy of the Group

Our domestic business is committed to stable and sustainable growth by strengthening existing businesses and advancing the development of new businesses and services. Our overseas business, which continues to expand through the utilization of M&As, will continue to improve the profitability of acquired subsidiaries. At Indeed, Inc. where continued high growth is notable, the Group aims to expand the scope of its business and realize long-term profit growth through further active investment for growth.

The Group's business environment has significantly changed mainly due to the rapid spread of the Internet and smartphones as well as new entries of competitors into the Group's business domains. In order to realize long-term growth in this environment, we will proactively work to train managerial personnel from a long-term perspective, train IT personnel to create and realize new added value, and strengthen the governance system which is the foundation for accelerating our growth strategy.