BRIDGE REPORT
(6089)

東証1部

Will Group (6089)
Ryosuke Ikeda, President
Ryosuke Ikeda, President
Corporate Profile
Company
Will Group, Inc.
Code No.
6089
Exchange
First Section of Tokyo Stock Exchange
Industry
Services
President and CEO
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
¥1,225 4,710,318 shares ¥5,770 million 20.7% 100 shares
DPS (Est.) Dividend Yield (Est.) EPS (Est.) PER (Est.) BPS (actual) PBR (actual)
¥9.25 0.8% ¥109.48 11.2 times ¥531.61 2.3 times
* Share price as of closing on the end of December 17, 2014. The number of outstanding shares was obtained by subtracting the number of treasury shares from the number of outstanding shares at the end of the term written in the summary of the financial results for the latest term. ROE is the value for the previous term. BPS is the value for the previous term. (the share split (1 : 2) dated September 1, 2002 considered)
 
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 Est. 32,916 909 914 515 109.48 9.25
* The estimated values are by the Company. Consolidated since the term ended March 2012. Shares were split with a ratio of 1 : 200 on October 10, 2013, and with a ratio of 1 : 2 on September 1, 2014. EPS and DPS were calculated retroactively.
 
We would like to present you with overview, characteristics, strengths, growth strategies, etc. of Will Group, Inc.
 
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. It is characterized by the "hybrid dispatch," in which the employees called field supporters are stationed at each site. The Company aims to differentiate its services with the hands-on policy. It also concentrates on the creation of new markets with the aim of achieving sales of 100 billion yen in the medium term. Its group companies are 4 domestic ones and 3 overseas ones, including Saintmedia Inc., which offers the service of outsourcing sales and call center operations, and FAJ Inc., which specializes in manufacturing services.
 
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 undertakes short-term businesses, was established in Naniwa-ku, Osaka-shi, and Mr. Ryosuke Ikeda, the current President and CEO, joined Bid 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 contracting business, and Mr. Ikeda was appointed president of the new company. Since then, this business group has operated personnel services with Saintmedia, Inc. as its core company, created new businesses and restructured existing businesses to keep up with market changes. In April 2006, Will Holdings, Inc. (renamed 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 listed in the first section of the Tokyo Stock Exchange in December 2014.
 
 
 
During the period of hardship after the collapse of the 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 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 faced a lot of difficulties, but he learned from his experience that by brushing up your value, developing confidence, improving yourself and going forward positively, you will be able to make surrounding people forward-thinking and positive. As he became certain that the social mission of President Ikeda and the Company is to positively influence their surrounding people and organizations, he decided to define their "Mission, Vision and Value" with his own words.
 
Market environment
◎ Market Trend
According to "Summary of a business report for a worker dispatching undertakings" produced by the Ministry of Health, Labour and Welfare, the sales of worker dispatch businesses, including general and special dispatch methods, decreased considerably after the bankruptcy of Lehman Brothers, but current sales are stable at the order of 5 trillion yen.
 
 
The effect of the yen depreciation on personal consumption is anticipated, but the demand for worker dispatch services is estimated to be steady in the short term, as corporate earnings are increasing. The Tokyo Olympic and Paralympic Games in 2020 is considered to be a great factor that underpins the economy.

On the other hand, the "2018 problem" in the personnel dispatch field has been pointed out from the mid-term viewpoint.

In April 2018, it will have been 5 years since the enforcement of the "Amended Labor Contract Act (for fixed-term employment contracts)" in April 2013. In accordance with the "5-year rule" of fixed-term employment contracts, workers who have worked under a fixed-term contract for 5 years can switch to indefinite-term employment (indefinite-term employment contract) by applying for it.
The "bill for amending the Worker Dispatch Law" was not approved at the Diet session last autumn due to the general election after the dismissal of the House of Representatives, but its important new provision is that "the same worker can work at the same workplace as a dispatched worker for up to 3 years, and if the period of working as a dispatched worker exceeds 3 years, the worker dispatching firm shall employ said worker as a full-time employee or promote the firm hiring said worker to employ said worker directly," after the enforcement in April 2015.
This amendment would also abolish the indefinite-term dispatch, which has been permitted only in "26 specialized businesses" (for other businesses, the employment period as a dispatched worker has been up to 3 years), and, in every business, enable the firms hiring dispatched workers to keep hiring dispatched workers by replacing them every 3 years under the condition that they listen to the opinions of labor unions.
Because of these factors, it is extremely unclear how many workers will demand the shift to indefinite-term employment and how dispatched workers will change their awareness, but worker dispatching firms will need to strengthen the businesses of undertaking tasks, introducing personnel, etc.
In addition, it is difficult from the financial aspect for small and medium-sized staffing firms to shift to indefinite-term employment or employ dispatched workers as full-time employees, and so it is anticipated that the industry will become oligopolistic through M&A, etc. of leading companies, mainly listed firms.
 
◎ Competitors
The competitors in the sales outsourcing business, whose sales account for 40% of total sales, are mostly the following three companies: Backs Group Inc. (unlisted), HITO-Communications (3654, the first section of the Tokyo Stock Exchange) and J-Com Holdings Co. Ltd. (2462, the first section of the Tokyo Stock Exchange). The business contents and share evaluation, etc. of Will Group were compared with those of these competitors and P&P Holdings (6068, JASDAQ), which supports sales activities.
 
 
The high ROE attracts our attention, but has not influenced share evaluations. Further efforts to raise the awareness of the company would be necessary.
 
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, the Company is sowing seeds for various personnel-related businesses.
 
 
① Sales outsourcing business
Net sales: 11,172 million yen, operating income: 497 million yen (results for the term ended March 2014)
 
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. The Company dispatches teams of workers who attend to customers, explain products, solicit applications, etc., manage sales staff members, gather and report sales information, etc. (hybrid dispatch), as well as carrying out general dispatch and undertaking tasks. In recent years, the Company, as part of its efforts to explore new markets, has been dispatching workers to the apparel industry. The number of dispatched workers in service and the number of client firms as of the end of the second quarter of the term ending March 2015 are 5,893 and 283, respectively.
 
② Call center outsourcing business
Net sales: 6,975 million yen, operating income: 295 million yen (results for the term ended March 2014)
 
Will Group dispatches phone operators to the firms operating call centers, especially the ones for communications companies, and to the firms conducting telemarketing services. The Company dispatches teams of workers who provide information, deliver goods, offer after-sales and consulting services, listen to, deal with, solve complaints, and so on (hybrid dispatch), as well as carrying out general dispatch. Will Group owns call centers and undertakes telemarketing for clients. The number of dispatched workers in service and the number of client firms as of the end of the second quarter of the term ending March 2015 are 3,254 and 141, respectively.
 
③ Factory outsourcing business
Net sales: 6,287 million yen, operating income: 148 million yen (results for the term ended March 2014)
 
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 who engage in the tasks of manufacturing, inspection, quality control, sorting, packaging, etc. (hybrid dispatch) to mainly food manufacturing industry, which receives relatively low effects of economic fluctuations among manufacturing industry, as well as carrying out general dispatch and undertaking tasks. The number of dispatched workers in service and the number of client firms as of the end of the second quarter of the term ending March 2015 are 3,164 and 227, respectively.
 
 
 
The ROE of the Company is much higher than the averages of the first section of the Tokyo Stock Exchange and the service industry. ROE cannot be boosted with leverage. We hope that net profit margin will improve.
 
 
Characteristics and Strengths
 
(1) "Hybrid dispatch" with field supporters
<Outline of hybrid dispatch>
The system called "hybrid dispatch" characterizes the Company in the personnel dispatch field and drives the growth of the Company.

Personnel dispatch means the dispatch of workers who have concluded an employment contract with a staffing firm to client firms 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 firms receive the fees for personnel dispatch from client firms 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 firms.

In many cases of general dispatch, workers dispatched from several different staffing firms work together at the same place, and so it becomes difficult for the staff of the client firm to share information and give appropriate instructions and orders. In many cases, full-time employees called coordinators of a staffing firm assist dispatched workers, but the coordinators do not always stay at 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 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 firms.

In the case of Will Group's "hybrid dispatch," full-time employees called field supporters (FS) 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. In short, this is a system where a team led by a field supporter engages in operations.
 
 
When the staff of client firms give instructions and orders to field supporters, it becomes unnecessary for the staff to instruct each dispatched worker, which makes the chain of command smoother and the sharing of information swifter, streamlining business processes.
Meanwhile for the Company, when full-time employees stay at workplaces, the morale of dispatched workers is enhanced, bettering teamwork and strengthening the sense of responsibility of dispatched workers.
In addition, the presence of the full-time employees enables to immediately meet the client firms' needs and to flexibly respond to an ad hoc plan of increasing manpower. As this system is highly evaluated by client firms, they often place more orders for worker dispatch, and even sign outsourcing contracts.
In some cases, client firms 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 may understand the advantage of "hybrid dispatch" and place more orders.

The number of field supporters as of the end of September 2014 is 198, up 17 from the same period 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 will occur. It is a repeated cycle of mistakes by dispatched workers, followed by our apologies, proposals of solutions, and their implementations. 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 the site and experienced all of events that occur in the field of personnel dispatch. Such personnel train field supporters, and this "hands-on policy" enables hybrid dispatch.
If a person who has no hands-on experience is assigned to a workplace as a boss of dispatched workers and to make the gathering of the boss and the dispatched workers put on a front as 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 assemble personnel 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 3 major businesses of Will Group earn over 90% of total sales. Each business specializes in a category.
 
 
As for the sales outsourcing business, the Company 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, the Company conducts unique measures for contributing to the business expansion of client firms.
 
 
Summary of 1H of FY March 2015 Earnings Results
 
 
Performance is favorable in all segments, with considerably increased sales and profits
Sales were 15.1 billion yen, up 22.2% from the same period of the previous year. All of the 3 major segments saw a double-digit sales growth rate. SG & A increased 23.2% from the same period of the previous year, but were offset by the increase in sales. Consequently, operating income, etc. showed double-digit growth.
In the sales outsourcing business, client firms wanted to directly employ dispatched workers, and so the Company introduced the personnel. Accordingly, the sales from personnel dispatch were smaller than the estimate, while the sales from personnel introduction exceeded the estimate. This did not affect sales significantly, but the sales from personnel introduction, whose profit margin is high, increased, and so gross profit was higher than the estimate. SG & A were smaller than the estimate, because costs of system repair, etc. were carried over to the third quarter. As a result, profits were much higher than the revised estimates.
 
 
① Sales outsourcing business
Mainly the business of undertaking tasks was healthy.
As the business of undertaking tasks, whose profit margin is high, grew, profit margin increased, absorbing the augmentation in personnel expenses, and then profits rose significantly. More recruitment activities that do not use external media, such as word-of-mouth and repeat recruitment, are conducted, streamlining recruitment.
 
② Call center outsourcing business
The Company concentrated on the cultivation of new clients, and dispatched more workers, achieving a double-digit sales growth rate.
However, the number of short-term contracts assuming the long-term contracts with promising clients of telemarketing agencies increased, augmenting the cost of recruitment and decreasing profits.
 
③ Factory outsourcing business
It was healthy, as mainly the business of personnel dispatch grew.
There is stable demand from food manufacturers. Profits increased almost two-fold.
 
④ Others
The sales from the dispatch of workers to offices, etc. increased from 613 million yen in the same period of the previous year to 882 million yen.
In addition, the promising businesses, including the dispatch of care workers, the introduction of IT personnel and overseas businesses, grew considerably. The sales of a Singaporean subsidiary acquired in August contributed to the performance of the Company.
The Company continues upfront investment for growth.
 
 
The reason why the ratio of sales from hybrid dispatch is declining is that the clients of hybrid dispatch started outsourcing their businesses to Will Group rather than using the hybrid dispatch service.
 
 
Cash and deposits decreased, but current assets increased 72 million yen from the end of the previous term, due to the increase in accounts receivables following the growth of sales, etc. Noncurrent assets increased 346 million yen from the end of the previous term, because goodwill increased 240 million yen from the end of the previous term through the acquisition of a Singaporean subsidiary. Total assets increased 419 million yen from the end of the previous term. Total liabilities increased 201 million yen from the end of the previous term, because of the augmentation of accrued amount payable following the increase of dispatched workers, etc.
Net assets grew 217 million yen, due to the increase in retained earnings, etc.
As a result, capital-to-asset ratio decreased to 40.8%, down 0.3% from the end of the previous term.
 
 
Operating CF became positive, because of the decline in the increase rate of trade receivables, the augmentation of accrued expenses, etc. Investment CF decreased further due to the acquisition of securities and the shares of subsidiaries, etc., while free CF recovered considerably. Financial CF became negative, due to the decline in short-term debts and the augmentation of the payment amount of dividends, etc.
Cash position improved.
 
(4) Topics
◎ Acquisition of a personnel service firm in Singapore
Will Group focuses on the expansion of overseas businesses as one of the pillars for the next growth, and established WILL GROUP Asia Pacific Pte. Ltd. in February 2014, with the purposes of expanding businesses and streamlining the process of finding business opportunities in ASEAN.
In August 2014, the consolidated subsidiary WILL GROUP Asia Pacific Pte. Ltd. acquired 60% of the shares of "Scientec Consulting Pte. Ltd.," a Singaporean personnel service company, turning it into a subsidiary.
Since its inception in October 2001, Scientec Consulting Pte. Ltd. has been conducting executive search, personnel introduction, etc. for leading multinational firms that have regional headquarters in Singapore, and has the advantage in supplying personnel in the healthcare and life science industries.
WILL GROUP Asia Pacific Pte. Ltd. decided to acquire the shares of Scientec Consulting Pte. Ltd. for obtaining the know-how of not only the personnel services in the healthcare and life science industries, but also systematized training programs and executive search.
 
 
The Company acquired 300,000 shares (60%) at a cost of 3,978 thousand Singapore dollars (about 322 million yen), including goodwill and advisory expenses.
 
 
FY March 2015 Earnings Estimates
 
 
There are no revisions to the earnings forecast. Double-digit increases in sales and profits.
There are no revisions to the full-year earnings estimates. The new subsidiary Scientec Consulting Pte. Ltd. is expected to contribute to sales and gross profit, but in the sales outsourcing business, the sales from personnel dispatch that had been estimated to be posted from the third quarter were shifted to the sales from personnel introduction in the second quarter, and so results are estimated to be as forecasted. As for profits, the accrued expenses in the second quarter are to be paid in the second half.
Sales were 32.9 billion yen, up 22.8% from the previous term. Sales growth rate is estimated to remain over 20% following the previous term. A double-digit increase in sales is expected in each segment. Profit margin will slightly decline, but a double-digit profit growth rate is expected.
The Company aims to achieve the stability of personnel dispatch and the profitability of the businesses of introducing personnel and undertaking tasks in a good balance.
Dividend is estimated to be 9.25 yen/share, equal to the dividend for the previous term. (In the previous term, the Company paid a common dividend of 18.50 yen/share and a commemorative dividend of 7.50 yen/share, and split shares with a ratio of 1 : 2 on September 1, 2014.)
The forecasted payout ratio is 8.4%.
 
 
Each business is estimated to see a double-digit increase in sales. The profitability of the 3 major businesses will improve. The other businesses, too, will grow considerably, but they are still at the stage of upfront investment. Accordingly, deficits are estimated to augment from the previous term.
 
 
Growth Strategies
 
In the medium term, Will Group aims to achieve "sales of 100 billion yen." To do so, the Company is expanding the existing businesses further and creating new markets, with the following 3 strategies.
 
 
The Company promotes the shift from general dispatch to hybrid dispatch, which is more beneficial to client firms, too. Furthermore, the Company intends to increase orders at each workplace and to expand the share in each client firm, as well as to win the trust of clients and promote them to outsource tasks to Will Group.
 
 
Some areas are still to be cultivated for all of the 3 major businesses, and so the Company will select target regions and open stores strategically, while improving existing footholds. As for the sales outsourcing business, Will Group may be able to make inroads into the regions where competitors have established their stores, but Will Group has not yet opened stores. As for the factory outsourcing business, the Company will actively expand the business locally, targeting mainly the food manufacturing industry.
 
③ Creation of new markets
(1) Irregular to regular-creation of a career path market
Although this will depend on the future legislation, the irregular and regular employment markets are now divided, and it is difficult for irregular workers who wish to work as full-time employees to pursue their careers as they want.

According to the "online questionnaire survey targeted at dispatched workers (released on January 15, 2014)" conducted by the Japan Staffing Services Association, about 70% of respondents hope to "work as dispatched workers at the current client firms for the foreseeable future," but about 50% wish to "work as full-time employees" several years later.
 
 
However, the percentage of the dispatched workers who have received an offer for direct employment from client firms is only about 40%, and the remaining 60% have never had such a chance.

In this situation, Will Group will reinforce the personnel introduction business, in which the Company educates dispatched workers, makes them accumulate practical experience and introduces them to client firms as full-time employees, regardless of the date of the termination of the dispatch period.

Client firms have the advantage of being able to decide whether or not to recruit workers after seeing them working at actual workplaces and, therefore, of lower likelihood of mismatch.
There is another advantage, that is, Will Group can operate more profitable businesses, and the reputation as a staffing company that has paved the career path to full-time employment helps secure workers and increases retention rate. Depending on the ability of workers, the Company introduces them to more promising workplaces and firms, rather than their current workplaces. By "creating an unprecedented career path market," the Company aims to develop win-win relations among dispatched workers, client firms and Will Group.
 
(2) Expansion of new business fields
Will Group considers that personnel services can be classified into the "stock type (personnel dispatch, task undertaking, etc.)," which can earn stable profits with continued contracts although profitability is not high, and the "flow type (personnel introduction, executive search, etc.)," which is highly profitable although contracts are one-time. The Company is offering personnel services in the following fields, with the aim of establishing the next core business early, in addition to the current 3 core businesses.
 
 
The Company has been gauging the potential of each business while conducting upfront investment, and considers that it is possible to expect the growth of the business of dispatching care workers among the stock type services, and the online personnel introduction and overseas businesses among the flow type services. The acquisition of Scientec Consulting Pte. Ltd. in Singapore is the investment for this very service.
 
 
Interview with President Ryosuke Ikeda
 
Investment Bridge interviewed President Ikeda about future strategies, messages to investors, etc. He had these to say:
 
<Regarding growth strategies>
We aim to increase sales from 30 billion yen at present, to 50 billion yen early, and then to 100 billion yen. To do so, we require the fourth and fifth pillars of earning, in addition to the current 3 pillars.
For this purpose, Will Group, the holding company, is advancing from the emphasis on the functions to manage subsidiaries to the launch of new businesses and the strengthening the development function for new businesses.
One strategy is M&A. The clients of the Singaporean subsidiary acquired in August include world-class pharmaceutical companies, and this company has a great deal of experience in Singapore, where life science is emphasized. Accordingly, it will serve as a great foothold for the overseas business operation of the corporate group.
Specialized staff cultivate and develop new businesses on a daily basis, and also started holding the "business contest." We plan to present a prize of 1 million yen to the grand prix, inject funds for commercialization and establish joint ventures, etc. We hope to find businesses that would produce synergistic effects.
 
<Strengths of Our Company>
As is obvious from our "hybrid dispatch," the "hands-on policy" is the key characteristic of our company and the origin of our competency.
There are few staffing companies that dispatch full-time employees to the front line. In addition, our company sets a goal for full-time employees to not merely work with dispatched workers, but also grow to become the most excellent among dispatched staff.
Actually, many of our full-time employees have received the highest award from call centers and consumer electronics mass retailers that are our clients.
We place the highest importance on actual workplaces. The personnel who cannot become No. 1 at workplaces will never be competent as a sales staff member or coordinator. This corporate culture is the strength of our company.
It is important to employ talented people as field supporters, who take the central roles in hybrid dispatch, rather than training them. I think that the performance of field supporters depends on recruitment in about 80% of cases.
The attributes emphasized in recruitment are "passion," "smartness" and "comfort."
As for "passion," it is important whether field workers can work passionately and have fortitude for overcoming any difficulties by themselves. Mental toughness, too, is essential.
As for "smartness," it is important whether field workers are so smart as to reply properly to questions from customers. High communication skills are vital.
"Comfort" indicates obedience. It is checked whether field workers can apologize obediently for a failure at a workplace of dispatched workers.
Because we have accumulated the know-how of recruitment since before listing, we have thus far been able to recruit new graduates as planned in the seller's market..
 
<For diffusing management philosophy>
We thoroughly promote the understanding of "Mission, Vision, Value" at the time of recruitment, distribute the "Will Group Notebook," which describes the management philosophy, to all employees after recruitment, and use it at meetings and discussions.
In addition, executives send messages repeatedly.
We hope to further enhance the loyalty of employees and also dispatched workers.
Because we hope that dispatched workers will acquire "employability," that is, "adequate abilities and skills," we would like to develop an environment in which aspiring workers can study free of charge. We are building a full-time employee development system that combines on- and off-the-job trainings and utilizes e-learning, etc. and plan to apply it to dispatched workers.
Since our company conducts hybrid dispatch, you may say that the face of our company is visible to out clients, and the relation between our company and someone who has worked as our staff is stronger than competitors'. When we need manpower, field supporters directly call dispatched workers and, in many cases, they join us smoothly because they are acquainted with the field supporters.
Therefore, our company recruits many workers through word of mouth and repeated offers, without using the media, and so our cost of recruitment has not risen as much as our competitors'. The number of workers recruited without using the media is an important KPI of our company..
 
<Message to Investors>
We continue our efforts to achieve the medium-term goal of sales in the amount of 100 billion yen; 50-60 billion yen from existing businesses and 40-50 billion yen from new businesses.
Therefore, upfront investment is necessary, and the current payout ratio is less than 10%, but we will strive to meet the expectations from shareholders by increasing sales, profits, and corporate value.
With the purpose of growing further and upgrading our brand, we got listed in the first section of the Tokyo Stock Exchange 1 year after listing. Of course, this is not our ultimate goal. We hope that you will support the growth of our company from the medium to long-term viewpoints..
 
 
Conclusions
 
The graphs below show the percentages of the actual and forecasted sales and operating incomes for the first and second halves of the previous term and the current term. The progress rates of the results for the first half with respect to the annual forecasts are 46.1% for sales, and 36.9% for operating income. These values seem low, but are at the same levels as the values for the previous term. It seems that you do not need to worry about it.
 
 
The graph below shows the relative share prices with respect to the above-mentioned competitors and the Nikkei Stock Average (1 year). After the listing in the second section of the Tokyo Stock Exchange last year, the shares of the Company much underperformed, but it has caught up considerably.
As Will Group was listed in the first section of the Tokyo Stock Exchange and entered the same stage as the two competitors HITO-Communications and J-COM Holdings, we would like to see how the Company will compete with them by utilizing the strength of hybrid dispatch, as well as the progress of the development of new businesses.
 
 
Disclaimer
This report is intended solely for information purposes, and is not intended as a solicitation to invest in the shares of this company. The information and opinions contained within this report are based on data made publicly available by the Company, and comes from sources that we judge to be reliable. However we cannot guarantee the accuracy or completeness of the data. This report is not a guarantee of the accuracy, completeness or validity of said information and or 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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