Financial/Capital Strategies

The key features of JAC Group financial strategies are high profit margins and high capital efficiency.

The Group vision is to become the world’s No. 1 professional recruitment firm in service quality and profitability. To achieve this goal, we know it is important to maintain and strengthen these two financial aspects of our businesses.

In FY2025, the Group achieved a 25.3% operating income margin. To maintain this high profit margins, we must focus on expanding the businesses that have high profit margins. That is why JAC Group will realise high growth toward becoming the world’s No. 1 by emphasising the organic growth of the Recruitment Business in Japan.

We will also work to reduce the cost of sales as well as sales and administrative expenses in the Japan Recruitment Business to further enhance the profit margins. More specifically, a more powerful in-house database, referrals, and scouting will attract the candidates necessary to reduce the use of external advertising and recruitment sites, which lowers the cost of sales ratio. Operational innovations through a digital transformation will also drive efficiency in middle/back-office operations and improve consultant productivity to reduce sales and administrative costs. Furthermore, in addition to having moved back office functions from overseas to the head office in Japan, our overseas businesses with low profit margins are currently shifting resources to more highly profitable regions in order to enhance the profit margins.

In FY2025, the Group achieved a tremendous ROE of 41.5% with a cost of equity(WACC) at 7.6%. Our price to book ratio (PBR) at the end of FY2025 was 7.55.

The company has secured a steady cash position. These funds act as both capital to flexibly invest in businesses as well as a reserve to retain employees—the Company’s strongest asset—during significant drops in earnings due to crises like the collapse of the Lehman Brothers.

We will secure the capital necessary to respond to these kinds of risks, enhance profit margins, and realise a high growth rate, which I hope will not only sustain high capital efficiency but also improve corporate value.

We are committed to maintaining a high dividend payout ratio while ensuring adequate internal reserves for future growth investments, aiming for profit growth that exceeds the expansion of our equity. When making business investments, we view the entire human resources business as one portfolio and set a minimum hurdle rate of achieving a return on investment (ROI) that exceeds our capital cost. We also use maintenance of current capital efficiency as one of our criteria for evaluating investments.

*Dividend payout ratio targeted at 65% or more
*Maintain a steady trend of increasing dividends in line with profit growth
Our basic policy regards the return of profits to be an important management issue and is the blueprint for decisions to properly balance investments and shareholder returns primarily provided through dividends. The dividends per share in FY2025 were ¥36, which is the forth consecutive year of increasing the dividend. Our dividend on equity (DOE) has also realised a high standard of 27.5%. Going forward, we have secured the internal reserves necessary to maintain a high dividend payout and invest in businesses to foster subsequent growth while aiming to enhance shareholder value that exceeds increases in owned capital.