Briefing on Financial Results for the Fiscal Year
Ended March 31, 2016Temp Holdings Co., Ltd.
May 18, 2016

1Contents

Part.1 : Financial Highlights on Financial Results
for the Fiscal Year Ended March 31,2016Part.2 : Mid-term Management Strategy
Part.3 : Forecast for the Fiscal YearEnding March 31, 2017

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2

Part 1 :Financial Highlights on Financial Results
for the Fiscal Year Ended March 31,2016

3

2016/3 : Summary of Consolidated Business Results(Unit: billion yen)

Achieved the highest results due to large-scale M&A
and steady growth of the existing businesses+29.1%

517.5
401.0

+23.5%

29.4
Sales

36.4

EBITDA+19.5%
23.4

28.0+29.3%

13.4

OP income2015/3 Full Year

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17.3

Net income
2016/3 Full Year 4

2016/3 : Sales Analysis(Unit: billion yen)Contribution from the large-scale M&A, in addition to increasein the revenues from the existing businesses
-2.2

+90.6

+2.2

+0.1

+7.8

517.5

+0.9

+17.2
401.0
2015/3Full Year

M&A+90.6

Organic Growth ＋28.2

Temporary
Staffing/BPO

ITO

Engineering

Recruiting

Others

M&A

Adjustment

2015/3 Full Year
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2016/3Full Year

2016/3 Full Year 5

2016/3 : EBITDA Analysis(Unit: billion yen)

Increase in EBITDA from M&A, the higher revenues
and the improvement of profitability-7.1＋21.9+5.2

-11.0
+0.1

-8.1

+6.0
36.4

29.4

2015/3Full Year

Organic Growth ＋3.2

Increase inincome dueto the sales
growthIncrease in income
due to theimprovement ofgross profit ratio

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Increase in SG&A

M&A＋3.7

Increase inincome dueto the sales
growthDecrease in income Increase in SG&A
due to lower grossprofit ratio
compared to existing
businesses

Adjustment

2015/3 Full Year

2016/3Full Year

2016/3 Full Year 6

2016/3 : OP income Analysis(Unit: billion yen)

Increase in OP income due to the higher revenues despite increase in
the amortization of the goodwill and the capital investment
-7.1
+21.9
+5.2

-11.2
-1.7

-8.5

+0.0

+6.0

23.4

2015/3Full Year

Organic Growth ＋2.8

Increase inincome dueto the sales
growthIncrease inincome due tothe improvementof gross profit
ratio

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Increase in
SG&A

28.0

M&A＋1.7

Increase inincome dueto the sales
growthDecrease inincome due tolower gross profit
ratio compared toexisting
businesses

Increase in
SG&A

Increase in
SG&A

2015/3 Full Year

Adjustment

2016/3Full Year

2016/3 Full Year 7

2016/3 : Consolidated Balance Sheets(Unit: billion yen)
As of March 31,2015

Results

As of March 31, 2016

Results

Change228.6

236.2+7.5

130.6

130.6

-0.0

97.9

105.6

+7.6

124.6

102.7

-21.9

Current Liabilities

86.5

67.4

-19.0

Non-current Liabilities

38.1

35.2

-2.8

103.9

133.5

29.5

Owner’s capital

98.5

127.2

28.6

Minority interests

5.4

6.2

0.8

AssetsCurrent Assets
Non-current assets

Liabilities

Net assets

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<Long-term loans payable>
Increase due to refinance shortterm loan to Long-term loans③ Convertible bond-type bondWith stock acquisition rights
Decrease in CB due to conversionof the bond, and Increase incapital stock and Capital surplus.
（Capital to asset ratio：53.8%)82016/3 : Consolidated Cash Flow
(Unit: billion yen)
2016/3

2015/3Full Year Results
Net cash provided byoperating activities

Net cash used ininvestment activities

28.8

Full Year Results

13.2

Change-15.6

-13.5

-15.0

-1.5

Net cash used infinancing activities

8.9

-7.2

-16.1

Increase (decrease) incash and cash
equivalents

24.2

-9.0

-33.3

・ Increase (decrease) in consumption
tax payable∟2015/3：10.7billion yen∟2016/3：-9.4billion yen

・ Decrease due to M&A：-10.4billion
yen・ Decrease due to investment forsoftware：-4.2billion yen

・ Increase (decrease) in long-termloans payable：-4.8billion yen
・ Cash dividends paid：-2.7billion yen

90

Cash and cash
Equivalents
at end of year
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60.2

51.1

-9.09

2016/3 : Dividend
Stable dividend payment will be continued according to the progress of business results,
while enhancing our business structure to be able to expand businessin growth areas swiftly and aggressively
2015/3

Dividend perShareDividend Ratio

2016/3

InterimYear-end

InterimYear-end（Plan）

14 yen18 yen18 yen7 yen(※)

17.4％

17.2%

（※）Temp Holdings conducted the 3-for-1 stock split for the common stock of the company
in October 29, 2015.
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10

Part 2 :Mid-term Management Strategy

11

Review of Mid-term Management Strategy(2014/4~2016/3)

12

Mid-term Basic Policy

Aim toBecome No.1
in the “number of users” and“number of employed persons”

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13

TopicTempstaff won the satisfaction No.1 in the field of 11/16 items
In the 25th temporary staff satisfaction survey

Source：「JINZAI-Business May, 2016」 / Opinion Co., Ltd.
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14

Outline of the Mid-term Management Strategy

Strategy

Level ofAchievement

Strategy 1

Optimize the Group’s management and segment structure●Strategy 2

Increase the number of employed persons through investment inthe Temporary Staffing division and improved productivity●Strategy 3

Gain more users in the Recruiting segment▲

Strategy 4

Enhance capability to offer solutions in outsourcing services▲

Strategy 5

Generate group synergy▲

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15

Numerical targets
Sales and operating income increased steady,Numerical targets are within range

Sales

2017/3 (Initial Plan)

2016/3 (Actual)500.0 Billion yen

517.5 Billion yen

EBITDA

40.0 Billion yen

8.0%

36.4 Billion yen

7.0%

OPincome

30.0 Billion yen

6.0%

28.0 Billion yen

5.4%

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Achieve

16

Environment surrounding us

17Change in society
Society is changing significantly in all aspects;
the labor market is becoming more and more important

Globalization

Evolution oftechnology

Changes in thevalues for “work”

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Declining labor force

Widening Labor
mismatch

Revisions/changes
in laws andregulations

The extension of
the retirement age18

The Role of a Temp Group

Diversity Promotion
To support career development through matching and employment management
in order to overcome the barriers of sex and age in recruitment and employment

Eliminate the Mismatch
To realize the transfer of labor without unemployment, from mature industries togrowth industries in cooperation with the state and local government

Humans grow through working
To provide places for working people to add more value concurrently with a wide
range of services that may contribute to the growth of the organization.

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19

Corporate Philosophy and Slogan

20Corporate Philosophy and Group Vision<Corporate Philosophy>

Creating Jobs, Adding Value to Individuals,and Contributing to Society<Group Vision>

Create social infrastructure for people andorganization that catalyze growth and innovation.

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21

Group Vision

STEP1
Expansion of the scale,and improving awareness

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STEP2
Analysis of informationof people and organizations

STEP3
Provide a variety of services
for people and organization

22Mid-term Strategy23

Mid-term Strategy

Strategy 1

Brand-Building

Strategy 2

Aim to organic growth with IT system investment
and improving productivity

Strategy 3

Generate group synergy and group management

Strategy 4

Enhance our presence on Asia-Pacific region

Strategy 5

Enhance operational capability and service line with M&A

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24

Strengthen APAC area(JV with Kelly Services)
Building strong and diverse service line as HR infrastructurein Asia region from Japan
Overseas business
OperatingArea

PolicySchedule

Mapping of operating byKelly and TEMP

China, Hong Kong, Taiwan, Korea,Singapore, Malaysia, Indonesia, Thailand,Vietnam, Australia, New Zealand, Indea Building presence on major area Strengthen Corporategovernance(dispatch CEO and CFOfrom TEMP)
 2016 2 nd Half : Start the JV
 2017 1st Half : Proceed the integration
 M&A on the blank area

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■ THD & Kelly■ THD■ Kelly25

Corporate Governance26

Shifting to company with audit and supervisory committee
In order to strengthen Corporate Governance ,Separation of the executive and supervisory
Up to 2016/6/17
Chairperson
Yoshiko SHINOHARAVice ChairpersonMikihiko HIBINO

Candidate of new director-President
Vice President
Director

Masamichi MIZUTA
Hirotoshi TAKAHASHI
Takao WADA

President
Vice President
DirectorDirector
Director

Masamichi MIZUTA
Hirotoshi TAKAHASHI
Takao WADA
Toshihiro OZAWA
Kiyoshi SEKI

Director(Outside)
Statutory Auditor
Auditor
Auditor
AuditorCarl T. Camden
Hiroshi SHIMAZAKI
Ryousuke TAMAKOSHI
Naoshige SHINDO
Kaoru ARAI

Director(Outside)
Director(*1)
Director(Outside *1)
Director(Outside *1)
Director(Outside *1)

Carl T. Camden
Hiroshi SHIMAZAKI
Ryousuke TAMAKOSHI
Naoshige SHINDO
Naohiro NISHIGUCHIPOINT• MIZUTA and TAKAHASHI devote to Group governance• 2 candidate of outside director(SHINDO and NISHIGUCHI)• SHINOHARA and HIBINO retire from director, will be Honorary
chairman at TEMPSTAFF CO., LTD.
*1:Audit and supervisory committee member
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27

Financial Target and Policy

28

Financial Target
Fiscal year 2020/3, Sales target is 750.0 Billion Yen
Aiming to grow continuously, on good condition

Sales

750.0 Billion Yen

EBITDA

60.0 Billion Yen

OP Income45.0 Billion Yen

PreconditionGDP Growthratio

Moderate Growth (around +0.0~1.0%)

Effective opening
to application ratio

Continuing strong demand based on economic growthand structural demand (around 1.0~1.2)

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29

Financial Policy
Enhancing return on equity and assets over 10% as ROE,
And growth investment based on financial soundness

ROE

Financial Soundness

Investment
hurdle rate
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• Over 10% as minimum• Equity Ratio : over 35%• Net Debt / EBITDA : under 1.0• IRR : over ８％•(Internal rate of return)30

Financial Policy
Planning to earn 130.0 billion yen by operating activities,
Investing it to enhance the Enterprise Value,
Total of the net cash
provided by operating
activities

Around 130.0 billion yen(The Mid-term management strategy)

Investment in organic
business

Investment in M&A

Return to Shareholders

Aiming to enhance productivity
and brand value by investing inIT system development andbranding promotion.

Aiming to build businessstrength in Temporary
staffing/BPO, Professional andOverseas business.

Stable dividend payment will becontinued according to businessresults, with around 20% as
payout ratio.

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31

Part 3 :Forecast for the Fiscal Year Ending March 31, 201732

2017/3 Consolidated Forecast(Unit: billion yen)

Planning to grow the organic business
+9.0%

517.5

564.0
+9.9%
36.4

Sales

40.0

EBITDA

+6.9%
+9.5%
28.0

30.0

OP Income2016/3 Actual

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17.319.0

Net Income
2017/3 Forecast

33

2017/3 Forecast : Sales by Segment(Unit: billion yen)

+6.4%

+22.3%
401.8 427.4

+7.9
24.7
Temporary
Staffing/BPO

26.6

ITO+4.9%
24.0

71.7

87.8

+57.0%
6.4
4.1

25.2

Engineering

Recruiting
2016/3 Actual

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Others2017/3 Forecast34

2017/3 Forecast : EBITDA by Segment(Unit: billion yen)

+3.4%

+37.7%

20.2

20.9
14.1
10.3

+2.5%
2.6

2.6
Temporary
Staffing/BPO

ITO

△2.2%
2.0

△36.5%

2.0

Engineering

１.0
Recruiting
2016/3 Actual

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1.0Others
2017/3 Forecast35

2017/3 Forecast : OP Income by Segment(Unit: billion yen)

+2.2%

+46.7%
17.4

17.8

9.7
+3.4%
1.9

1.8
Temporary
Staffing/BPO

ITO

△8.7%
1.5
1.4
Engineering

6.6
0.１
Recruiting
2016/3 Actual

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△87.3%
0.0Others
2017/3 Forecast

36Disclaimer•The statements concerning the Company’s future businessperformances in this material such as earnings forecasts are based on
information available as of May 18, 2016 and certain assumptions
deemed to be reasonable by the Company, and do not mean that wepromise to achieve these figures. Actual earnings may differ materiallyfrom the statements due to a variety of factors.

•This briefing is only for better understanding. Please note that
numbers and indexes in this book are not audited

August 2014: Temp Holdings was added to the JPX Nikkei Index 400
What is theJPX Nikkei 400?

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It is a new stock price index that consists of companies that meet various requirements for globalinvestment, such as the efficient use of capital and a management perspective that is conscious of investors,
for the purpose of boosting the appeal of Japanese companies domestically and internationally.

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