Briefing on Interim Financial Results
for the Fiscal Year ending March 31, 2012

Tokyo Stock Exchange 1st Section （2181）

Contents

Greetings
・Highlights of Interim Result for the Fiscal Year ending March 31, 2012

Part 1 : Marketing Strategy
Part 2 : Outline of Consolidated Interim Financial Results
Reference Material

Copyright (C) since 2011 Temp Holdings Co., Ltd. All rights reserved.

1

Highlights of Interim Results for FY March 2012

• Quick recovery in supply chains after the Great East Japan Earthquake

External
environment• Diversified needs of companies for outside personnel• Establishment of an optimum business operations structure

Efforts• Active investment in growth field*Rounded down. (Units:100million yen, %)2011/3

2012/3 2Q

2012/3(forecast)＋3.4％

2,330 (forecast)

2,252
Full year

2Q

1,117

1,132

62
＋7.3％

Sales

Ordinary Income
2012/3Copyright (C) since 2011 Temp Holdings Co., Ltd. All rights reserved.

2011/3＋36.1％ 32 (forecast)

73 (forecast）

36

30

＋1.3％

2011/3＋18.4％

2012/3

32

24
8

12

Full year
2Q

＋8.7％

Net Income
2011/3

2012/3

2

Part 1 :Marketing Strategy

Tokyo Stock Exchange 1st Section （2181）

Business Conditions

２

Impact of 11 March disasters &electricity supply issues
Influence of Yen appreciation

３

Diversification of HR needs

４

Unclear economic future５

Debate over revisions to Japan’s temp law

１

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4

Highlights of Interim Sales by the segment for FY March 2012
1

Temporary Staffing and
Recruitment Services Business
Improved profitability due to efficient business operations

3

Outsourcing Business
Increased recognition of the Company as an outsourcer

R&D Outsourcing Business

2

Enhanced cooperation within the Group by making
JAPAN TECSEED CO., LTD. a wholly-owned subsidiary

Other Businesses

4

Established the structure for stable profitability*Rounded down. (Units:100million yen, %)*The earnings results of each segment are those after eliminating internal transactions.

Full
year

2Q

1,938

1,965 (forecast)△4.9 ％

958

88

240 (forecast)

41

86

115

△0.9％

△3.9％

.5 ％
＋ 33

Temporary Staffing &Recruitment Services

R&D Outsourcing

Outsourcing

2012/3

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＋1.1％

84 (forecast)42

2011/3

2012/3(forecast)＋28.9％

186
966

2012/3 2Q

2011/3＋1.4％

2012/3

2011/33940 (forecast)21

17△18.5％

2012/3

Full
year
2Q

Other Businesses
2011/3

2012/35

Efforts of FY March 2012 ①
11

Temporary Staffing and Recruitment Services Business*Rounded down. (Units:100million yen, %)Interim period of the fiscal year ending March 2012

• Continued efforts to cultivate new customers and expand
transactions with small and mid-size companies•Support for reconstruction after the Great East Japan
Earthquake

Sales
Sales

Ensuring employment, for example, by securing recruiting companies in

2011/3 2Q

disaster-stricken areas

9782012/3 2Q

1.1％down

967• Steady demand for recruitment services• Promotion of efficient business operations structure

OperatingOperating Income
Income2011/3 2Q
Second half of the fiscal year ending March 201220

2012/3 2Q

39.2％up28• Conversion of two companies with high brand power into
subsidiaries through M&A(Kobelco Personnel Co., Ltd. and Nikkei Staff Co., Ltd.)• Response to selection of human resource service
companies mainly by foreign-affiliated firms*The earnings results of each segment are those before eliminating internal transactions.
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6Efforts of FY March 2012 ②
22

R&D Outsourcing Business*Rounded down. (Units:100million yen, %)*△= Negative value

Interim period of the fiscal year ending March 2012

• Conversion of JAPAN TECSEED CO.,LTD. into a whollyowned subsidiary in August• Business restructuring within the JAPAN TECSEED Group(Improvement of managerial efficiency through restructuring, such as selling off ofa subsidiary)

Sales
Sales
2011/3 2Q

42

2012/3 2Q

3.9％down

41• Increase in personnel by employing more new graduatesand mid-career workers
OperatingOperating Income
Income2011/3 2Q

2012/3 2Q

△1

△0.6

Second half of the fiscal year ending March 2012

• Maximization of synergy effects following the conversion ofJAPAN TECSEED into a wholly-owned subsidiary• Planning to hire a record-high number of new graduates in April 2012

*The earnings results of each segment are those before eliminating internal transactions.
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7

Efforts of FY March 2012 ③
33

Outsourcing Business*Rounded down. (Units:100million yen, %)Interim period of the fiscal year ending March 2012

• Increase in service-providing opportunities throughcooperation within the Group(Enhancement of synergy effects)• Improvement of sales efficiency(Accumulation of know-how, introduction/operation examples, etc.)

Sales
Sales
2011/3 2Q

86

2012/3 2Q

p33.8％u116

OperatingOperating Income
IncomeSecond half of the fiscal year ending March 20122011/3 2Q• Establishment of a support center in Miyazaki Prefecture
in October 20113

2012/3 2Q

up
86.4％

6

• Increase in the types of services through cross-segmental
collaboration*The earnings results of each segment are those before eliminating internal transactions.
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8Efforts of FY March 2012 ④
44

Other Businesses*Rounded down. (Units:100million yen, %)Interim period of the fiscal year ending March 2012*△= Negative value• ＜Outplacement support business＞
Concentration of know-how and improvement ofmanagerial efficiency through the integration of two
subsidiaries in the previous fiscal year

Sales
Sales
2011/3 2Q

21

2012/3 2Q

15.2％down

18

OperatingOperating Income
IncomeSecond half of the fiscal year ending March 20122011/3 2Q• Development of new growth fields while maintaining
growth in the businesses such as outplacement,
education, and nursing care2

2012/3 2Q△0.3*The earnings results of each segment are those before eliminating internal transactions.
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9Strategy①---Strengthening Business Platform and Sharing Know-How Through M&A

Solidify the business presence
November, 2011
(plan)

November, 2011

Kobelco Personnel

Nikkei Staff

Provision of human resource
services for the Kobe Steel, Ltd.
Group

Human resource services
centering on clerical andspecialized jobs in thenewspaper and publishing fields

Share business know-how
May, 2010

January, 2011

TOYO SOFTWAREENGINEERING

HOWCOM
IT-based support businesscentering on help desk services

System solutions services centering on
custom software development

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August, 2011

JAPAN TECSEED
Made into a wholly-owned subsidiary
Provision of R&D outsourcing services
mainly for leading automobile and aircraft
manufacturers

10Strategy②---Expanding Outsourcing Services
6.
6. Call
Call center
center space
space

7.
7. IT
IT support
support area
area

Companies： Tempstaff, HOWCOM, Japan IDEX
Location： Miyazaki City, Miyazaki Prefecture, Kyushu, Japan
Seats： 330 desks, 890 operators max. capacity (shift basis)
Floor space： 1,464.21 square meters
Support： 24 hours × 365 days

5.
5. Operation
Operation center
center4.
4. Break-out
Break-out space
space
Located in Miyazaki West Exit Building
Complex located above Miyazaki Station

2.
2. Presentation
Presentation roomroom
3.
3. Training
Training room
room

1.
1. Entrance
Entrance lobby
lobby

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11

Strategy②---Expanding Outsourcing Services

・ HR management strength・ HR matching strength・ HR business developmentknow-how・ Temp Group sales network

・ Broad BPO provider know-how
・ Quality management system in place※QMS:ISO9001

・ Depth of know-how as a specialist
IT Help desk service provider
・ Global standards※Help Desk Institute (HDI) consulting partner

・ HR development scheme
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12Strategy③--- Enhancement of competitiveness in the global market

May 2011:
Tempstaff (Hong Kong) Limited opened the Tsim Sha Tsui office on the Kowloon side,
Hong Kong. (Launched the first branch in Asia.)

July 2011:
Tempstaff Shanghai Co., Ltd. started a customer reception and a conduct training course
for the Chinese. (Provision of ANA Learning Co., Ltd.’s training course in China)

AMERICAS：5
EMEA：21
APAC：14

Copyright (C) since 2011 Temp Holdings Co., Ltd. All rights reserved.

U.S. (L.A., Seattle)
China (Shanghai, Suzhou,
Guangzhou), Hong Kong(Central, Tsim Sha Tsui )Taiwan, Korea, Singapore,
Indonesia
13Part 2 :Outline of Consolidated
Financial Results

Tokyo Stock Exchange 1st Section （2181）

Interim Sales by the segment*Rounded down. (Units: million yen, %)*△= Negative value

△0.9％
％
△3.9％
％

96,686

95,822△18.5％
％

4,287

4,121

Temporary Staffing
andRecruitment Services

R&D
Outsourcing

2011/3 2Q

2011/3 2Q

2012/3 2Q＋33.5％％

8,681

11,590Outsourcing
2011/3 2Q

2012/3 2Q

2012/3 2Q

2011/3 2Q
Sales
Temporary Staffing and Recruitment
Services

2,135

1,741

Other Business2011/3 2Q

2012/3 2Q

2012/3 2Q

Ratio (%)

Sales

Ratio (%)

Change%96,686

86.5

95,822

84.6

△864

99.1

Office Clerk
Technical Clerk
IT Professional
Sales
Other
Recruitment Services

32,84240,827
8,627
3,589
9,200
1,598

29.4
36.5
7.7
3.2
8.3
1.4

25,90937,374
8,869
3,725
18,212
1,732

22.9
33.0
7.8
3.3
16.1
1.5

△6,933△3,453
241
135
9,012
133

78.9
91.5
102.8
103.8
198.0
108.3

R&D Outsourcing
Outsourcing
Other Business
Total

4,287
8,681
2,135
111,791

3.8
7.8
1.9
100.0

4,121
11,5901,741
113,275

3.6
10.2
1.6
100.0

△165
2,908
△393
1,484

96.1
133.5
81.5
101.3

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15

Interim Consolidated Statements of Income*Rounded down. (Units: million yen, %)*△= Negative value＋1.3％％＋17.3％％

113,275

111,791

3,085

Sales
2011/3 2Q＋48.7％％

3,619

Ordinary Income
2011/3 2Q

2012/3 2Q

2011/3 2Q

Ratio(%)

Net Income

2012/3 2Q

2012/3 2Q

1,283

863
2011/3 2Q

Ratio(%)

Change2012/3 2Q%

2012/3(forecast)

Sales

111,791

100.0

113,275

100.0

1,484

101.3

233,000

Cost of Sales

93,90084.0

95,582

84.4

1,682

101.8

－

Gross Profit

17,89016.0

17,693

15.6

△197

98.9

－

Selling, General and
Administrative Expenses

15,12913.5

14,205

12.5

△923

93.9

－

Operating Income

2,761

2.5

3,487

3.1

726

126.3

7,180

Ordinary Income

3,085

2.8

3,619

3.2

533

117.3

7,380

863

0.8

1,283

1.1

420

148.7

3,280

Net Income

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16

Interim Consolidated Statement of Balance Sheets*Rounded down. (Units: million yen, %)*△= Negative value

2011/3
Actual2012/3 2Q
Ratio

ActualRatio

ChangeAssets

79,336100.0

77,658100.0△1,677

Current assets

63,124

79.6

63,481

81.7

357(Cash and Deposits)

31,44839.6

33,792

43.5

2,343

(Notes and accounts
receivable-trade)

27,91335.2

26,12033.6△1,793

Non-current assets

16,212

20.4

14,17718.3△2,034

Liabilities

29,015

36.6

27,10934.9△1,906

Current liabilities

21,22426.8

19,45525.1△1,769Non-current liabilities

7,791

9.8

7,653

9.9

△137

Net Assets

50,32063.4

50,54965.1

229

Owners' equity

47,49559.9

49,706

64.0

2,211

△5,636△7.1△4,327

△5.6

1,309

2,528

3.2

1,410

1.8

△1,117(Treasury stock)

Minority interests

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17

Changes in the Number of New Registrants (Consolidated)
Number of New Registrants(person)(*) Temp Holdings Co., Ltd. Was established in October of FY March 2009. As such, results
prior to the establishment of Temp Holdings reflect registration number of the consolidation
Tempstaff entity.

50,00050,00045,00045,00040,00040,00035,00035,00030,00030,00025,00025,000

2nd Half
Registrants
Change (%)

20,00020,00015,00015,00010,00010,0005,000
5,000

Full Year
Registrants
Change (%)

2008/382,622＋14.2％

170,215＋14.1％

2009/3
2010/3

84,97063,869＋2.8％△24.8％

172,744
116,434＋1.5％△32.6％

2011/347,468△25.7％

88,360△24.1％

2012/344,078

△7.1％
％

00
1Q
1Q

2Q
2Q

3Q
3Q

2008/3

4Q
4Q

1Q
1Q

2Q
2Q

3Q
3Q

2009/3（※）（※）

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4Q
4Q

1Q
1Q

2Q
2Q

3Q
3Q

2010/3

4Q
4Q

1Q
1Q

2Q
2Q

3Q
3Q

2011/3

4Q
4Q

1Q
1Q

2Q
2Q

3Q
3Q

4Q
4Q

2012/318

FY March 2012: Consolidated Forecast of Results*Rounded down. (Units: million yen, %)1st Half
Forecast

2nd Half
ActualProgress

YoY

Forecast

Full Year
YoY

Forecast

Ratio

YoY

Sales

111,000

113,275

102.1

101.3

119,724105.5

233,000

100.0

103.4

Temporary Staffing and
Recruitment Services

94,21095,822

101.7

99.1

100,727

103.7

196,550

84.4

101.4

R&D Outsourcing

4,130

4,121

99.8

96.1

4,328

94.2

8,450

3.6

95.1

Outsourcing

10,86011,590

106.7

133.5

12,409124.8

24,000

10.3

128.9

Other Business

1,800

1,741

96.7

81.5

2,258

124.1

4,000

1.7

101.1

Operating Income

2,300

3,487

151.6

126.3

3,692

123.6

7,180

3.1

124.9

Ordinary Income

2,420

3,619

149.6

117.3

3,760

119.5

7,380

3.2

118.4

Net Income

1,000

1,283

128.3

148.7

1,996

129.0

3,280

1.4

136.1

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19

Dividend Policy
Dividends

Return profits to shareholders upon overall evaluation of future
management strategy and other relevant factors

2011/3

2012/3

InterimYear-end

InterimYear-end(forecast)

Per share

6 yen

6 yen

6 yen

6 yen

1 units(per 100 shares)

600 yen

600 yen

600 yen

600 yen

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20

Disclaimer

The details appearing in this material are based on
generally accepted economic and social information as
well as certain assumptions deemed reasonable bythis Company: current as at November 16, 2011.
However, changes may occur without notice due tochanges in business circumstances, etc.

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21

Reference MaterialTokyo Stock Exchange 1st Section （2181）

＜Reference＞ Company Outline* As of November 1, 2011

Company Name

Temp Holdings Co. Ltd.

Capital2,000 million yen

CEOPresident & Chairman Yoshiko Shinohara

Established

1 October 2008

Business Outline

Planning, management and related tasks in support of Group business activities relating totemporary labour/for-fee HR placement services, etc

Head Office2-1-1 Yoyogi, Shibuya-ku, Tokyo, Japan

Directors

Chairman & President : Yoshiko Shinohara
Executive Vice-President : Mikihiko Hibino
Executive Vice-President : Masamichi Mizuta
Executive Director: Toshio Saburi
Director : Takao Wada
Director: Kazuomi Morimoto
External Director: Carl T. Camden

Stock Listing

Tokyo Stock Exchange, First Section

Group Companies

45 consolidated subsidiaries, 1 associated company

Employees

5,108 (* As of 31 March 2011)

Service Network

251 domestic & 12 overseas offices
L.A., Seattle, Shanghai, Suzhou, Guangzhou, Hong Kong, Taiwan, Seoul, Singapore, Indonesia

Full-time Auditor / Izuki Hiraga
Auditor / Haruo Shimada
Auditor / Kaoru Arai
Auditor / Ryosuke Tamakoshi(* As of 30 September 2011)

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23

＜Reference＞ Temp Holdings Corporate Philosophy

We pursue job creation possibilities based on a wide range of work styles, work environments, job
descriptions, employment situations etc.

Age, gender and nationality have no bearing. Through the experience of work, we aim to foster arich sense of humanity and support the individual growth of workers.

We contribute to the development of society through individual growth and the creation of job
opportunities.
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24

＜Reference＞ Temp Group（1）* As of November 1, 2011

Temporary Staffing and Recruitment Services(Localized Operating Companies)
Tempstaff

Integrated HR service provider

Tempstaff People

Integrated HR service provider in the Tokai region

Tempstaff Fukuoka

Kyushu region

Tempstaff Familie

Nagano/Yamanashi Prefecture

Tempstaff Grow

Gunma Prefecture(Overseas branches)
TS Consulting International

U.S.

Tempstaff Shanghai

PRC Shanghai

Tempstaff Guangzhou

PRC Guangzhou

Tempstaff (Hong Kong)

Hong Kong

Tempstaff Taiwan

TaiwanTempstaff Korea

Korea

Tempstaff Singapore

Singapore

Tempstaff Indonesia

Indonesia

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25

＜Reference＞ Temp Group（2）* As of November 1, 2011

Temporary Staffing and Recruitment Services(Specialized Operating Companies)
TEMPSTAFF CROSS

Focusing on Fuji Xerox and related companies

Kobelco Personnel

Focuses on providing HR services to the Kobe Steel Group

TempbrosMature age/manufacturing/assembly

Personal

Placement of sales staff

Support-A

Automotive sales and sales campaign

Tempstaff SP

Sales promotions

Tempstaff Plus

Late night office work

Tempstaff Technologies

IT sector HR services / outsourcing

Tempstaff Creative

Creative related

Tempstaff Life Advisory

Insurance sales support

Tempstaff Career

Placement / HR consulting

Tempstaff FrontierSpecializing in physically challenged candidates

Tempstaff WishChild care / minding

Thanks Temp

Employment support for the physically challenged

Tempstaff Integration

Temp Group shared services

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26

＜Reference＞ Temp Group（3）* As of November 1, 2011

R&D Outsourcing
Domestic Japan
Overseas

JAPAN TECSEED

R&D outsourcing support

GTECHK

Offshore system developing services

Outsourcing
Domestic Japan Tempstaff Data

Data processing outsourcing

Japan IDEX

BPO

Tempstaff Medical

Health agency / medical related outsourcing

HOWCOMIT support :Help Desks/Service DesksTOYO SOFTWARE ENGINEERING

Software outsourcing development

Tempstaff Sales Support

Sales functions (sector focus) outsourcing

Overseas Suzhou Tempstaff Data

PRC based data entry centre

Other Businesses
Domestic Japan

Tempstaff Drake Beam Morin-Japan

Outplacement/training/HR Consulting

Tempstaff Learning

Employee training/ Language training, qualification acquisition support

Tempstaff Welfare

Home- based nursing care/locum care & visiting career service provider

Temp Research InstituteOverseas study support service provider

e-Staffing

System development & operations

Temp International

Management support of overseas entities

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27

＜Reference＞ Temp Group History

2009

March

Shares of Support-A Ltd. (a specialized automotive sector / sales campaign HR provider) was acquired
and becomes a consolidated subsidiary company.
Shares of Tempstaff Grow Co., Ltd. (HR service provider based in Gunma Prefecture) acquired andbecomes a consolidated subsidiary company.

April

People Staff Co., Ltd. changed its trade name to Tempstaff People Co., Ltd.

May

Shares of Drake Beam Morin-Japan, Inc. (outplacement services provider) acquired and becomes aconsolidated a subsidiary company.

July

Shares of Fuji Xerox Career Net Co., Ltd. acquired and trade name simultaneously changed to
TEMPSTAFF CROSS CO., LTD. (provider of HR solutions primarily to Fuji Xerox Co., Ltd. and relatedcompanies) and becomes a consolidated subsidiary company.

NovemberAcquisition of JAPAN TECSEED CO., LTD. (R&D outsourcing business) shares and becomes aconsolidated subsidiary company.

2010

May

Share acquisition of major US HR provider Kelly Services Inc. and implementation of strategic alliance.
HOWCOM Co., Ltd. (IT support business focusing on help-desk functions) acquired and becomes aconsolidated subsidiary company.

2011

January

Acquisition of TOYO SOFTWARE ENGINEERING CO., LTD. (software development outsourcer) sharesand becomes a consolidated subsidiary.

NovemberAcquisition of Kobelco Personnel Co., Ltd. shares and, consolidation into the Temp Group.
Kobelco Personnel Co., Ltd. focuses on supporting the HR needs of Kobe Steel group companies.

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28