S-Pool, Inc.

JP

EN

Investor Relations

Investor Relations

A message from the management

Service

Business Segment Overview

The Company has two business segments: the business solutions segment, which provides outsourcing service; and the human resources solutions segment, offering temporary staffing service. Business activities mainly involve inter-company transactions involving provision of human resource-related services. Through these business activities, the Group promotes its social business, which resolves social issues, and has strengths in utilizing the potential labor force or those without experience, such as young unemployed people, people with special needs, homemakers, and senior citizens.

Business Solutions Segment



 For the fiscal year ended November 30, 2017
 Segment sales: ¥3,998 million (up 16.2% year on year)
 Operating profit: ¥728 million (up 24.7% year on year)

The business solutions segment provides services that support utilization of potential labor forces, such as senior citizens and people with disabilities, and outsourcing services that undertake certain work for companies. For the first type of service, S-Pool Plus, Inc. lends farms that it manages to companies that seek to employ people with disabilities. These companies directly employ people, primarily with intellectual disabilities, and supply the harvested products to health and welfare programs set up to promote employee health. S-Pool, Inc. provides a professional staffing service using seniors who have various experience and expertise to assist in resolving corporate management issues and operational issues. In the outsourcing service, S-Pool Logistics, Inc. provides outsourcing services for distributing products sold by mail-order companies, as well as border-crossing e-commerce services to support overseas sales. S-Pool Sales Support Inc. conducts sales promotion services including face-to-face recruitment drives for members and subscribers, and promotional marketing services including promotional campaigns and on-site marketing support. In other services, S-Pool, Inc. provides recruitment outsourcing support services handling job applicants, mainly for part-time positions advertised.

Human Resources Solutions Segment



 For the fiscal year ended November 30, 2017
 Segment sales: ¥7,722 million (up 32.4% year on year)
 Operating profit: ¥680 million (up 28.6% year on year)

The human resources solutions segment provides office support services such as call centers and For the fiscal year ended November 30, 2017
Segment sales: ¥7,722 million (up 32.4% year on year)
Operating profit: ¥680 million (up 28.6% year on year)
The human resources solutions segment provides office support services such as call centers and business centers, and human resource services related to in-store sales support for smartphones and home electronics through S-Pool Human Solutions, Inc., whose core operations are temporary staffing and personnel placement services. In 2017, the Group launched a new staffing service, “One+” to address acute shortages in the nursing care, nursing, and childcare sectors.

Three Core Businesses

(1) Temporary Staffing Service (Human Resources Solutions Segment)

[Net sales for the fiscal year ended November 30, 2017] ¥7,722 million (up 32.4% year on year)

Our temporary staffing services differ from general temporary staffing services that dispatch skilled personnel with experience and qualifications. Instead, we provide a “group-type staffing” service that excels in utilizing inexperienced workers. The group-type staffing service dispatches a team comprising a team leader and multiple staff. The team leader educates and trains the staff directly on site instead of the corporate customer. This enables inexperienced employees to achieve full capability in a short time and also improves retention rates by allowing for detailed follow-up, ultimately resulting in improved customer satisfaction and market share growth.

(2) Special Needs Employment Service (Business Solutions Segment)

[Net sales for the fiscal year ended November 30, 2017] ¥1,305 million (up 47.4% year on year)

Japanese companies are obliged to by law achieve a 2% ratio of people with disabilities in their workforce. However, only around half of companies meet this standard. For companies who need to increase their ratio of employees with disabilities, we operate Work Happiness Farm, which rents out farms especially designed for people with disabilities to companies so they can employ them. We also provide a recruitment process outsourcing (RPO) service that provides comprehensive support for every step, from recruiting people to work on the farms to training and supporting retention after employment. Currently, about 160 companies use the farms, which employ about 800 people, mainly with intellectual or mental disabilities. The farms have an impressively high retention rate among workers of over 95%, and both the client companies and the workers are delighted. This service is growing rapidly as the only one of its kind in Japan and has also earned strong recognition from outside the company as a business that makes a large social contribution.

(3) Logistics Outsourcing Service (Business Solutions Segment)

[Net sales for the fiscal year ended November 30, 2017] ¥1,185 million (up 13.2% year on year)

The logistics outsourcing service provides product distribution services for Internet mail-order companies. We operate logistics centers under a sharing system that allows multiple mail-order companies to use the center jointly, giving our client companies access to high quality logistics services at a low price. Currently, we operate three logistics centers, and customer numbers have grown to 170 companies. We also provide strong services in the growing market for border-crossing e-commerce services (mail-order services to overseas destinations). By making use of our logistics centers, corporate customers can easily sell products through Amazon.com in the United States or major shopping malls in China, and they can also dispatch products overseas to 220 countries, which has really helped to differentiate the service.

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