[Company analysis] Recruit Holdings Co., Ltd. (リクルートホールディングス)

「Recruit Holdings Co., Ltd. (リクルートホールディングス)」provides services such as job advertisement, staffing, and sales promotion. As a representative company of the Japanese service industry,「Recruit Holdings」has second largest sales in listed service company after「Japan Post Holdings Co., Ltd.(日本郵政)」. The number of consolidated employees is approximately 45,856.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Recruit Holdings Co., Ltd.
Company name (Japanese)	リクルートホールディングス
Date of establishment	Thursday, March 31, 1960
Headquarters location	〒100-6640 東京都千代田区丸の内1-9-2
Capital	40,000
Consolidated sales	2,310,756
Consolidated operating profit	223,090
Consolidated total assets	1,748,982
Consolidated capital	972,251
Capital adequacy ratio	55.6%
Consolidated number of employees	45,856

 

 

 

2. Summary and Features

 
「Recruit Holdings 」has well-connected communication in corporate level and merit-based coporate culture. So , sometime they give large projects to employees who have not worked for many years. They have also introduced a new business contest that all employees can participate in, and it is said that this will allow us to freely suggest new  business within the company. Thanks to such a corporate culture, there are many entrepreneurs who started businesses from「Recruit」.

 

「University Newspaper Advertising Company(大学新聞広告社)」was founded in 1960, is the predecessor of current「Recruit Holdings」. during its establishment times, it was an advertising agency for student newspapers at the University of Tokyo. Then, this compnay had expanded their business area, eventually implemented a staffing business. However, this company confronted serious management crisis due to the "Recruit scandal", which is called the largest bribery case in the history of the industry.

 

At this time, the founder family was rejected from management, and the capital and personnel of「DAIEI(ダイエー)」, which was a major supermarket chain, entered「Recruit」and it was temporarily transferred to the「DAIEI Group」. It is said that the current corporate culture of「Recruit Holdings」was born from this background. After that, this company succeeded in restarting, and now it is independent from「DAIEI」and is developing its own service business. From the 1990s,「Recruit」launched well-known service businesses such as the utilization website "Rikunavi", "Hot Pepper", "SUUMO", "R25.  At present, this company achieved the top market share in Japan in various service fields such as housing, marriage, travel, food and employment.

 

「Recruit Holdings」is famous for its unique business method. Instead of supplying the information obtained from the client to the user through various media, they receive introductory commission. So called "Matching business". In terms of business of「Recruit Holdings」, it is consisted of three divisions, "Staffing business", "Promotional media", and "Human resources media". Among them, sales of "Staffing business" account for 80% of the total. Besides, they started global expansion through M & A, Especially in 2012, by purchasing「Indeed」, the largest aggregate job search site in the world.

 

 

 

3. Major Business

 

■ Promotion media business
Services such as "SUUMO", "Zexy", "Jalan", "HOT PEPPER", "HOT PEPPER gourmet" and "HOT PEPPER Beauty" are provided.

■ Human resources media business
They provide "Rikunavi", "Rikunavi NEXT", "fromAnavi", "TOWNWORK", "RECRUIT AGENT" services.

■ Staffing business

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,941,922	2,173,385	2,310,756
Consolidated operating profit		193,513	191,794	223,090
Consolidated total assets		1,462,903	1,574,032	1,748,982
Consolidated net assets		747,765	840,660	972,251
Breakdown of sales	Human Resource media business	129,254	213,260	320,771
	Media & Solution business	654,396	674,539	714,957
	Staffing business	1,158,271	1,285,585	1,275,027