BRIDGE REPORT
(6089)

東証1部

WILL GROUP, INC. (6089)
Ryosuke Ikeda, President
Ryosuke Ikeda, President
Corporate Profile
Company
WILL GROUP, INC.
Code No.
6089
Exchange
First Section of Tokyo Stock Exchange
Industry
Service
President
Ryosuke Ikeda
Address
1-32-2 Honcho, Nakano-ku, Tokyo, Japan
Year-end
End of March
URL
Stock Information
Share Price Number of shares issued
(excluding treasury shares)
Total market cap ROE (Actual) Trading Unit
¥1,800 4,754,318 shares ¥8,557 million 19.7% 100 shares
DPS (Est.) Dividend Yield (Est.) EPS (Est.) PER (Est.) BPS (actual) PBR (actual)
¥13.00 0.72% ¥126.61 14.2times ¥641.97 2.8times
*Share price as of closing on the end of June 26, 2015.The number of shares issued is the number of shares issued at the end of the most recent quarter, excluding treasury shares.
 
Consolidated Earnings Trends
Fiscal Year Net Sales Operating Income Ordinary Income Net Income EPS DPS
March 2012 19,049 478 472 161 42.23 4.44
March 2013 22,174 618 631 289 73.21 8.20
March 2014 26,798 808 774 384 91.67 13.00
March 2015 32,586 939 950 547 115.94 24.00
March 2016 Est. 39,120 1,094 1,094 601 126.61 13.00
*Estimates are by Will Group. A 1:200 share split was carried out in October 2013, and a 1:2 share split in September 2014. (EPS and DPS were retroactively calculated.)
*The March 2014 (actual) DPS includes commemorative dividends of ¥3.75, and the March 2015 (actual) DPS includes commemorative dividends of ¥12.0.
 
Bridge Report will report on the financial results for Will Group for the fiscal year ended March 2015.
 
Key Points
 
 
 
Company Overview
 
This holding company dispatches and introduces sales promotion staff members, call center operators, production line workers mainly for food products, etc. One of its characteristics is their operation of "hybrid dispatch," in which their employees, or so-called field supporters are stationed on site. The Company aims to differentiate its services with its hands-on policy. It also concentrates on creation of new markets with the aim of achieving sales of 100 billion yen in the medium term. Group companies include Saintmedia, Inc., which deals in sales and call center outsourcing; FAJ, Inc., which provides services specialized for the manufacturing industry; Borderlink, Inc., which provides assistant language teachers for elementary and junior high schools, and runs language classrooms for toddlers and children; Scientec Consulting Pte. Ltd. and Good Job Creations (Singapore) Pte. Ltd., a human resources service company in Singapore; and GJC Myanmar Ltd., which was established in June 2015 with the goal of providing consulting services in Myanmar; for a total of four domestic Japanese companies and four overseas companies.
 
[History]
The predecessor of this corporate group was Saintmedia, Inc., a company established in Kita-ku, Osaka-shi in January 1997, which operated telemarketing business. Saintmedia, Inc., is now a consolidated subsidiary. In the meantime, in August 1997, Big Aid Co., Ltd. which undertook short-term businesses, was established in Naniwa-ku, Osaka-shi, and Mr. Ryosuke Ikeda, the current Representative Director and President, joined Big Aid Co., Ltd. as one of its co-founders in October 1997. In February 2000, the two companies merged, with Saintmedia, Inc. being the surviving company, hoping to produce synergetic effects between telemarketing and task undertaking business, and Mr. Ikeda was appointed as the president of this new company. Since then, this business group has operated personnel services with Saintmedia, Inc. as its core company, creating new businesses and restructuring existing businesses to keep pace with market changes. In April 2006, Will Holdings, Inc. (renamed to Will Group, Inc. in June 2012) was founded as a pure holding company, shifting to group business administration in order to improve the expertise of business firms and optimize managerial resources. The Company was listed in the second section of the Tokyo Stock Exchange in December 2013, and after one year, was designated to the first section of the Tokyo Stock Exchange in December 2014. In June 2015, GJC Myanmar Ltd. was established to provide consulting services in Myanmar, as was the Will Group Incubate Fund for corporate venture capital (CVC). The CVC has already invested in Travee Inc. (Kawasaki-shi, Kanagawa) which operates the activity matching platform Travee, and in Secual Inc. (Shibuya-ku, Tokyo) which provides home security.
 
 
During the period of hardship after the collapse of IT bubble, President Ikeda consulted with the founder of a renowned listed company about what kinds of visions and missions would motivate subordinates and employees in such a hardship, and received the following advice: "Since you are still young, devote yourself to on-site work rather than giving words. If you work diligently for several years, you will come up with visions and missions with your own words. It won't be too late." Since then, the President says, he has worked hard with staff members at each site where workers were dispatched.

He has faced a lot of difficulties, but has learned from his experience that by cultivating your value, developing confidence, improving yourself and going forward positively, you will be able to make people around you also forward-thinking and positive. As he has become certain that the social mission of himself and the Company is to positively influence people around them and organizations they are involved with, he has decided to define their "Mission, Vision and Value" in his own words.
 
[Business Contents]
Its core businesses are the "sales outsourcing," "call center outsourcing" and "factory outsourcing" businesses. Each business has grown at higher than averages rates in markets. As future pillars for growth, Will Group has been sowing seeds for various personnel-related businesses. The "other" segment includes office personnel dispatch, nurse dispatch, overseas personnel services, and assistant language teacher dispatch to elementary and junior high schools, and generates profits therefrom.
 
 
Sales outsourcing business
Through the sales activities at consumer electronics mass retailers, mobile phone shops, etc., Will Group is supporting the expansion of clients' products and services.
The main commercial goods Will Group handles are mobile devices, such as smartphones, and broadband internet services. Will Group dispatches teams of workers (hybrid dispatch) who attend to customers, explain products, solicit applications, etc., manage sales staff members, gather and report sales information, etc., as well as carrying out general worker dispatch and undertaking tasks.
In recent years, Will Group, as part of its efforts to explore new markets, has been dispatching workers to the apparel industry.
According to Will Group's data, the sales outsourcing market in FY 2013 (April 2013 to March 2014) was 241 billion yen. The average growth rate from FY 2009 was 0.5%, but sales during this period increased an average of 26.7% annually.
 
Call center outsourcing business
Will Group dispatches phone operators to companies operating call centers and others conducting telemarketing services.
Will Group focuses on telecommunications companies within the call center industry and dispatches teams of workers (hybrid dispatch) who provide information, deliver goods, offer after-sales and consulting services, listen to, deal with and solve complaints, and so on, as well as carrying out general worker dispatch. Will Group owns call centers and undertakes telemarketing tasks for clients.
According to Will Group's data, the call center outsourcing market in FY 2013 was 679.2 billion yen. The average growth rate from FY 2009 was 3.3%, but sales during this period increased an average of 21.5% annually.
 
Factory outsourcing business
Will Group offers technologies and personnel management know-how for the production process in the manufacturing field, to improve the productivity of each client. FAJ, Inc. dispatches teams of workers (hybrid dispatch) who engage in the tasks of manufacturing, inspection, quality control, sorting, packaging, etc. to mainly food manufacturing industry, which receives relatively low effects of economic fluctuations within the manufacturing industry, as well as carrying out general worker dispatch and undertaking tasks.
According to Will Group's data, the factory outsourcing market in FY 2013 was 1.35 trillion yen. The average growth rate from FY 2009 was -1.9%, but sales during this period increased an average of 18.7% annually.
 
 
 
A high level of ROE was maintained for the term ended March 2015, at 19.72%. Although this is a decrease for the third fiscal year in a row from FY 2013, this is due to the rapid increase in equity capital through IPO (listed on the second section of the TSE in December 2013) and business results. During this period, yieldability (sales to net income ratio) continually increased, and the ROA (found by dividing net income by total assets) which indicates efficiency of assets overall also increased for three years in a row (FY 2013 6.9%→ FY 2014 7.2%→ FY 2015 7.8%).
 
[Market Environment]
The worker dispatch market trending stably around 5 trillion yen
According to the Ministry of Health, Labour and Welfare's Report on the Status of Worker Dispatching Undertaking, sales from worker dispatching, totaling together general and specialized dispatch, decreased significantly after the global financial crisis, but still remain stable at a base of around 5 trillion yen.
With depreciation of the yen, there are concerns about impact on individual consumption, but it is expected that expanded corporate earnings will lead to robust demand for personnel dispatch services in the short run. The 2020 Tokyo Olympics are also expected to be a major factor supporting the economy.

In the medium-term, the "2018 problem" is considered an issue for the personnel dispatch industry. April 2018 will mark five years since the reformed Labor Contract Act (fixed-term contracts) took effect on April 2013. Based on the five-year rule for fixed-term contracts, workers that have spent five years on fixed-year contracts will be able to apply to change to unlimited-term employment (unlimited term labor contracts).
Also, effects of the Worker Dispatch Act passed by the Lower House on June 19, 2015 are being considered.
 
 
Reformed Worker Dispatch Act key points
The key points of this reform to the Worker Dispatch Act are changing the maximum dispatch period from "job type" to "person," elimination of unlimited-employment (regular employment) dispatch worker dispatch lengths, elimination of 26 specialized job types, and shift to certifications for dispatch businesses and a responsibility to train.
 
 
Changing the maximum dispatch period from "job type" to "person," elimination of unlimited-employment (regular employment) dispatch worker dispatch lengths, elimination of 26 specialized job types
The system before reform limited use of dispatch workers in a single job to a maximum of 3 years (even if the dispatch worker, a "person," was changed, the maximum length was still 3 years) except for in the 26 specialized job types including software development, mechanical design, interpreting/translating/stenography, etc. However, with this reform, the 26 specialized job divisions were eliminated, and dispatch workers with unlimited employment (regular employment) at dispatch companies can work at dispatch locations without a limit regardless of the job type, while dispatch workers with fixed-term contracts can work for up to 3 years. From the perspective of companies using dispatch workers, dispatch workers with unlimited employment can be used without limit, and even fixed-term employment dispatch workers can be used for a position for an unlimited amount of time as long as that person is switched after the set period of time (there is no limit to the amount of switching).

With this reform, it has become easier for companies to use dispatch workers and dispatch companies are likely to have more business opportunities, as well as providing more opportunities for dispatch workers to build careers.
 
Shift to dispatch business certification and responsibility for training
This reform also has the goal of requiring a certain scale and quality of dispatch companies. Specifically, before the reform dispatch companies doing specialized dispatch with unlimited-term workers were only required to send a notice to start business (certification was necessary for general worker dispatch using fixed-term workers), but with the reform both specialized and general worker dispatch companies will need to be certified. Conditions for certification include financial standards of having net assets of 20 million yen or over and cash and deposits of 15 million yen or over, as well as providing training, so dispatch companies will have a greater responsibility for developing human resources.

Since it will be difficult for SMEs to meet the certification standards, the current number of over 50,000 dispatch companies will be cut down, and a creation of an oligopoly through M&As by major listed companies is likely to occur.
 
 
Characteristics and Strengths
 
(1) "Hybrid dispatch" with field supporters
<Outline of hybrid dispatch>
The system called "hybrid dispatch" characterizes Will Group in the personnel dispatch field and drives the growth of the Group.

Personnel dispatch means the dispatch of workers who have concluded an employment contract with a staffing firm to client companies that have signed a labor dispatch contract with the staffing firm. It is characterized by the division between the employment and chain-of-command relations. Staffing companies receive the fees for personnel dispatch from client companies in accordance with worker dispatch contracts, and pay salaries to dispatched workers in accordance with employment contracts.
At each workplace, dispatched workers follow the instructions and orders from the staff of client companies.

In many cases of general worker dispatch, workers dispatched from several different staffing companies work together at the same place, and so it becomes difficult for the staff of the client firm to share information and give instructions and orders.
Full-time employees called coordinators of a staffing firm usually assist dispatched workers, but the coordinators are not always at the workplaces, and so they cannot respond swiftly to various daily troubles at consumer electronics mass retailers, the phone booths of call centers, etc.
In addition, dispatched workers in case of general worker dispatch tend to have weak loyalty and a low spirit of teamwork, and so they tend to quit soon or cause troubles frequently, although these depend on the working environments, type of job, each worker's individual attributes, etc. Accordingly, problems often arise both for client and staffing companies.

In the case of Will Group's "hybrid dispatch," full-time employees called field supporters (FS, always on-site) show up at the workplace, and work together with the dispatched workers, while managing, instructing and educating them on the spot on a daily basis.
 
 
When the staff of client companies gives instructions and orders to field supporters, it becomes unnecessary for him to instruct each dispatched worker, which makes the chain of command smoother and the sharing of information swifter, streamlining business processes.
Meanwhile for Will Group, when full-time employees stay at workplaces, the morale of dispatched workers is enhanced, bettering teamwork and strengthening the sense of responsibility among dispatched workers. In addition, the presence of the full-time employees enables to immediately meet the client companies' needs and to flexibly respond to an ad hoc plan of increasing manpower. As this system is highly appreciated by client companies, they often place more orders for worker dispatch, and even sign outsourcing contracts.
In some cases, client companies want to directly employ excellent dispatched workers, and Will Group introduces the personnel. Hybrid dispatch thus often increases business opportunities.
On average, one FS supervises about 50 dispatched workers, but for promising clients, with the expectations of future business expansion, a more compact team is first dispatched, so that they would understand the advantage of "hybrid dispatch" and place more orders.
The number of field supporters as of the end of March 2015 is 185, up 4 from the end of the previous year. The Company plans to further increase the number.
 
What enables hybrid dispatch
Investors may naturally wonder if "hybrid dispatch," Will Group's signature method, can be imitated by competitors.
To this question, President Ikeda replied as follows:
 
At the workplaces of dispatched workers, various troubles occur. It is a repeated cycle of a mistake by a dispatched worker(s), followed by our apologies, a proposal of solutions, and its implementation. To organize dispatched workers with various personality types and to have them conduct business operations is certainly no easy task.
Needless to say, excellent field supporters are indispensable for exerting the power of hybrid dispatch at each workplace.
It is impossible to run a team unless "a field supporter, who is a full-time employee, becomes the most competent among dispatched personnel and then gives instructions." In the case of our company, all employees, including myself, have experienced on-site work since the start of this business. Most of the current section chiefs and managers joined our company as new graduates, worked at various sites and experienced all of events that occur in the field of personnel dispatch. Those people train field supporters, and this "hands-on policy" enables hybrid dispatch.
If a person who has no hands-on experience was assigned to a workplace as a boss of dispatched workers and tried to bring together a team, it would be impossible to solve problems and troubles, and dispatched workers would quit soon, and the full-time employee would become like a dispatched worker (degrading the loyalty toward our Company).
Even if a competitor attempts to assimilate the system and make it look like a team, it would take several years for the competitor to become able to offer the quality comparable to ours.
Our company is now ahead of the pack, but if competitors conduct this business on a full-scale basis, they may catch up with us. Therefore, our Company has already started creating systems for developing and training dispatched workers early.
 
(2) Business operation specializing in various categories
The three major businesses of Will Group earn over 90% of total sales. Each business specializes in a category. The joint strategies for each category are hybrid dispatch, providing training programs which is only possible because of the category specialization, and increasing staff satisfaction. Strategies by segment are given below.
 
 
As for the sales outsourcing business, Will Group has targeted the apparel field, in addition to the sale of mobile devices to increase sales.
By utilizing the expertise in the categories in which these businesses specialize, Will Group conducts unique measures for contributing to the business expansion of client firms. Will Group has also continued to increase sales and profit since being listed.
 
 
 
Fiscal Year March 2015 Earnings Results
 
 
Sales increased 21.6% and ordinary income increased by 22.7% from the previous term.
All three of the main segments had sales increase in the double digits, with 21.6% increase from the previous term to 32,586 million yen. In addition to increased sales, highly profitable task undertaking was expanded, especially in the sales outsourcing business, and the gross margin improved by 0.7 points to 19.5%. SG&A expenses also increased due to hiring more employees, etc. for business expansion, but this increase was absorbed by increased sales and improved gross margin, so operating income increased 16.3% from the previous term to 939 million yen. With IPO expenses (stock offering expenses, etc. of 44 million yen) gone, non-operating profit and loss was improved and ordinary income increased 22.7% from the previous term to 950 million yen. With no impairment loss posted and the impact of tax effect accounting, net income increased 42.5% from the previous term to 547 million yen.
EBITDA (operating income + depreciation + amortization), one of the management indicators the Company focuses on, increased from 890 million yen the previous year to 1,091 million yen. Depreciation was 90 million yen (72 million yen the previous year), and amortization was 61 million yen (9 million yen the previous year).

The number of employees at the end of the fiscal year was 671, an increase of 147 from the end of the previous fiscal year (of these, 185 are field supporters, 4 more than the end of the previous year). The main reasons for this increase are hiring new graduates (52), increase in the number of companies in the scope of consolidation (28 employees of new subsidiary), and workers for new businesses (36).

In addition to the ordinary dividend of ¥12 per share, there was also a commemorative divided of ¥12 for being listed on the first section of the Tokyo Stock Exchange, for a total of ¥24 in dividends.
 
 
(2) Trends by Segment
Sales outsourcing
Sales were 13,053 million yen (16.8% increase from the previous term), and segment income 697 million yen (40.3% increase from the previous term). The smartphone market expanded with a boost from new models, and strong demand from electronics mass retailers and mobile phone stores continued. The year-end season in 3Q and FY-end season in 4Q contributed significantly, and the fact that task undertaking increased 21.4% from the previous term to 4,746 million yen by category was a unique feature of the term ended March 2015. For profit, in 1Q the Fukuoka and Sapporo branches increased floor space, and in 3Q the Okinawa branch was opened and the Niigata and Sendai branches increased floor space. In addition to this enhancing marketing bases and expanding area, personnel costs and hiring costs increased along with business expansion, but with expanded profitable task undertaking the gross margin improved, and with hiring without using external parties (through rehiring staff and introductions of friends) hiring costs compared to sales decreased.
 
 
Call center outsourcing
Sales were 8,159 million yen (17.0% increase from the previous term), and segment income 292 million yen (0.9% decrease from the previous term). With the adoption of feature-rich smartphones, demand is strong for operators to explain their functionalities and service details. As a result of continuing to focus on developing new customers in the communications industry, sales increased mainly in personnel dispatch. Dealings have also started with major national clients.
However, due to an increase in short-term projects, personnel and hiring expense ratios increased and profitability ratio decreased. Since 3Q, a shift to long-term projects has been underway, but with the Fukuoka and Sapporo branches having increased floor space in 1Q, and the Omiya, Ikebukuro, and Kitakyushu branches opening and the Niigata and Sendai branches increasing floor space in 3Q, this enhancement of sales bases and expansion of area decreased profits slightly.
 
 
Factory outsourcing
Sales were 7,537 million yen (19.9% increase from the previous term), and segment income 206 million yen (39.5% increase from the previous term). Sales for the food manufacturing industry increased by 34.3% from the previous term to 3,930 million (52.2% of overall segment sales), with sales increasing mainly in personnel dispatch. The increase in SG&A from hiring new personnel and maintaining more personnel in response to the increase in sales was absorbed, with profit significantly increased. A Kanagawa branch was opened in 1Q, the Tokyo branch moved in 2Q, and Tochigi, Mie and Okayama branches were opened in 4Q, maintaining and expanding bases.
 
 
Other
Sales were 3,835 million yen (62.3% increase from the previous term), and segment losses 325 million yen (previous year was 150 million losses). While personnel dispatching to offices remained steady, nursing personnel dispatch/nurse introductions, overseas personnel services, and personnel introduction via internet increased sales, absorbing decreased sales from assistant language teacher dispatch, etc. due to restructuring the management structure. Although personnel introduction such as the overseas personnel service and personnel introduction via internet contributed to profits, upfront investment in the two new businesses (share-houses, 3D printers related) proved to be a burden. In August 2014, Scientec Consulting Pte. Ltd. (hereinafter, Scientec Consulting), which had run personnel dispatch services in Singapore, was acquired.
 
 
 
Total assets at the end of the FY increased 1,931 million yen compared to the end of the previous term, to 8,022 million. With expanded business and good results, accounts receivables, accounts payable including dispatch staff salaries, corporate and consumption taxes payable, and net assets increased. The Singapore subsidiary (Will Group Asia Pacific Pte. Ltd.) established in February 2014 acquired 60% of the shares of Scientec Consulting, a company providing personnel services in Singapore, in August 2014, making it into a subsidiary, from which amortization also increased (from 7 million yen to 437 million yen).
The current ratio is 142.0% (158.0% at the end of previous FY), and the fixed asset ratio 35.9% (20.8%), for high liquidity and long-term financial security. The company is effectively operated without debt, with an equity ratio of 38.0% (41.1% at the end of previous FY). The rate of return on investment capital (ROIC) increased from 16.2% in the previous fiscal term, to 18.5%.
 
 
With increased profits and smooth recovery of accounts receivables, capital efficiency improved for 1,235 million yen in operating CF. Due to providing capital for M&As, etc., free CF was minus 467 million yen in the previous term, but 550 million in the black this term. Although financial CF is negative due to scheduled payments of loans proceeding and payments of dividends (public stock offering was made the previous year), the balance of cash and cash equivalents at the end of the period was 2,444 million yen, an increase of 15.4% (326 million) compared to the end of the previous year.
 
 
Fiscal Year March 2016 Earnings Estimates
 
 
Sales expected to increase 20.1% and ordinary income increase by 15.2% from the previous term.
Sales expected to increase 20.1% from the previous term to 39,120 million yen. In the smartphone sales market where fierce competition for market share will continue between communications careers, and the apparel industry which has been focused on as a new sector, sales in sales outsourcing business will increase 10.1% from the previous term, and with demand for operators for smartphone-related positions, sales in call center outsourcing business will increase 15.0% from the previous term. For the factory outsourcing business, where the growth market of food manufacturing for prepared meals accounts for a majority of contracts, sales are expected to increase by 18.0% from the previous term through expanding its worker dispatch to unreached production bases of existing client firms that have production centers throughout Japan. For businesses under development, with new bases being opened proactively for nursing personnel dispatch and nurse introductions, a foothold developed in Singapore for overseas personnel services, and expected steady increase in sales for personnel introductions via internet, other sales are expected to increase by 68.7% from the previous term.

Upfront investment in the nursing personnel dispatch and nurse introduction, overseas personnel service, and personnel introduction via internet businesses, and increased hiring costs (optimization will be carried out, but the total amount will increase), will be absorbed by increased sales, and operating income is expected to increase 16.5% from the previous term to 1,094 million yen. EBITDA is expected to increase 17.7% from the previous term (193 million yen) to 1,284 million yen.

The ordinary dividend is planned to increase by ¥1, to ¥13 for the year, and the commemorative dividend per share of ¥12 will be dropped.
In order to maintain growth, the Company will keep necessary internal reserves to expand the business and increase fiscal soundness, while also providing returns to shareholders considering operating results and overall management. The Company has policy of 10% or higher dividend payout ratio.
 
 
(2) Growth strategy
Three strategies will be implemented: expanding market share, expanding area, and creating new markets. To increase market share, the Company will first capture the demand for general worker dispatch services and then shift to hybrid dispatching services and task undertaking, and to pursue area expansion, the Company will open more stores in as-yet undeveloped areas. To create new markets, the company will operate a human resources business creating a career path personnel market as there is a shift from non-regular to regular employment.
 
Expanding market share
Efforts to expand market share based on hybrid dispatch will continue. Specifically, by developing the general worker dispatch market and then shifting to the Company strength of hybrid dispatch, the in-store share (of all dispatch and contract staff at a specific client, the share of dispatch and contract staff that is the Company's) can be increased. After being trusted as a team by the client through hybrid dispatch, revenue can be increased by shifting to task undertaking as well as further strengthening relations with the client.
 
 
Expanding area
Since the FY ended March 2011, the pace of opening new branches has been increased, with over 50 group branches as of the end of FY ended March 2015. However, since there are still undeveloped areas for every business segment, efforts to expand area will continue. It is expected the number of branches will be 60 by the end of FY ending March 2016.
During the FY ending March 2016, offices for the sales outsourcing business are planned to be opened in Nagano and Okayama, and offices for the call center outsourcing business are planned for Chiba and Hokkaido (Asahikawa). The nursing personnel dispatch and nurse introduction business that is being developed has plans for offices in Kobe, Hiroshima, Kyoto, Tokyo (Kitasenju, Adachi-ku).
 
 
Creating new markets
Although currently it is not simple to shift from non-regular employment (dispatch employees, contract employees) to regular employment (permanent employees), if the staff performs well, any firm would want to hire them permanently. The Group has defined this market where non-regular and regular employment overlap as the "career path personnel market," and plans to create this market and expand its personnel introduction business. Specifically, after providing training to dispatch staff and having them get actual experience, introduce them as candidates for permanent employment at the dispatched firms regardless of the dispatch contract termination. Since the firms can hire after having seen their work performance, there will be no mismatches in hiring, and the Group can profit significantly, while it also leads to high retention rates of existing staff and facilitates to secure new staff recruitment by providing its staff with potential permanent career paths. For the staff, it gives greater possibilities in their carrier path by opening up a potential path to become a permanent employee.

Although the stock-type personnel services, such as personnel dispatch and task undertaking with continual contracts, have stable income, the earnings are not necessarily high. On the other hand, the flow-type personnel services, such as personnel introduction and executive searching, provide only spot income from individual contracts, but they have high earnings. By combining both business types, it is possible to ensure more stable and higher income.
 
 
 
Conclusions
 
Will Group has had results significantly beyond market growth for its core businesses of sales outsourcing, call center outsourcing, and factory outsourcing. Hybrid dispatch provides the energy for this growth, and the management philosophy of on-site work being the most important underlies it. In the Firm's view, "on-site work is the most important. Someone who can't be No. 1 on-site won't be useful in marketing or as a coordinator either." For field supporters, the key to hybrid dispatch, it is not so much about training but the more important part lies within hiring people with the aptitude, about 80% is determined by the initial hiring. Therefore, when hiring, they ensure their mission, vision and values are thoroughly understood, in order to determine aptitudes (after joining the firm, a Group Notebook is given to all members of the Group, and in addition to its being used at meetings and discussions, management executives continue to repeat the message). Investment Bridge Co., Ltd. believes that the management philosophy of on-site work being most important, combined with the shared understanding of the mission, vision and values, have created a unique corporate culture that is the strength behind Will Group, and the reason for its excellent growth. Therefore, even if other companies copy the hybrid dispatch model, it will probably take some time before they are successful.

The Firm is moving forward with a goal of reaching 100 billion yen in sales (50 to 60 billion yen from existing businesses, 40 to 50 billion from new businesses). Upfront investment is therefore necessary, and currently they have not reached a dividend payout ratio of 10%, but they seem to plan to meet investor expectations by increasing sales, profit and corporate value. The Firm's message is "We moved up from the second section of the Tokyo Stock Exchange to the first section, in pursuit of greater growth and brand power, but this should not be the goal. We hope you would support our firm going forward in the medium- to long-term."
 
Disclaimer
This report is intended solely for information purposes, and is not intended as a solicitation for investment. The information and opinions contained within this report are made by our company based on data made publicly available, and the information within this report comes from sources that we judge to be reliable. However we cannot wholly guarantee the accuracy or completeness of the data. This report is not a guarantee of the accuracy, completeness or validity of said information and opinions, nor do we bear any responsibility for the same. All rights pertaining to this report belong to Investment Bridge Co., Ltd., which may change the contents thereof at any time without prior notice. All investment decisions are the responsibility of the individual and should be made only after proper consideration.
Copyright(C) 2015 Investment Bridge Co., Ltd. All Rights Reserved.
 
 
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