Treasury review drives a liquidity and investing solution for continued growth 

Japan-based staffing company Recruit Holdings wanted to leverage best practices for multi-currency strategies as it pursued global expansion.

The challenge

As the business has grown globally, liquidity and cash positions outside of Japan have expanded, creating foreign exchange (FX) exposure. Recruit’s treasury team therefore recognised the need to manage this liquidity outside of Japan. To help integrate global operations, a treasury centre was launched in London and Tomonori Kimura, Managing Director, Recruit Global Treasury Services, who brought a wealth of treasury knowledge and experience to the job, led this review.

“We undertook a full review across our various treasury units, which included one-on-one discussions to help understand any unique requirements. We then engaged with our banking and asset management partners to explore potential solutions available and scope out industry best practices. This helped to create a strategic roadmap and identify the group’s tolerance to capital risk and volatility, resulting in us drafting a well-articulated investment policy,” commented Kimura.

The solution

Recruit worked with J.P. Morgan and J.P. Morgan Asset Management on the solution which includes:

• Moving away from manual spreadsheet reporting at the subsidiary level
  
  
• Implementation of a more dynamic cash forecasting approach
  
  
• Diversification away from bilateral bank term deposits
  
  
• Cash segmentation and utilisation of off-balance investments to reduce credit risk and enhance liquidity
  
  
• Implementation of a new streamlined treasury management system (TMS)
  
  
• Adoption of better oversight, governance and risk management processes

Company profile

Recruit Holdings Co., Ltd. is a leader in the job matching industry in Japan and has been rapidly expanding around the world. This expansion has propelled Recruit’s market value on the Tokyo Stock Exchange.

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