To Shareholders and Investors

TEMP REPORTInterim report for the fiscal year
ending March 2015
April 1, 2014 – September 30, 2014

Temp Holdings Co., Ltd.
(Securities code: 2181)

Message from Management“Creating Jobs,
Adding Value tothe Individual, andContributing to Society”
Creating the joys of work together
We will contribute to the development of society by becoming a
corporate group in which everyone and every organization can feelthe joys of work—growing and becoming positive by “working”
and through “jobs” while making the most of their diverse values
and characters.

The personnel business market is booming on the back of the mild
recovery trend of the Japanese economy. As is evidenced by the rise in
the jobs-to-applicants ratio, there is a shortage of personnel dependingon the region or type of job.
Under these circumstances, the Temp Group saw robust performancesin each business segment, especially in the Temporary Staffing and Career
segments, backed by its high ability to supply personnel. Business results
for the first six months of the fiscal year ending March 2015 achieved thehighest sales and profit since the establishment of Temp Holdings, withsales reaching 192.2 billion yen and operating income 10.2 billion yen.
The Temp Group, which has now become an organization of over
10,000 people, has prepared its three-year mid-term management plan asa roadmap for further growth. This is the first year of the plan. As part ofthe plan, we will renew our segment structure. We intend to enable swift
business developments as well as improve the efficiency of managementof the Group by transferring to each segment the functions and authority
related to the businesses.
Furthermore, the Temp Group has held “Creating Jobs, Adding Valueto the Individual, and Contributing to Society” as its corporate philosophy
since its establishment. Its mission is to contribute to society by creating asociety where everyone and every organization can feel the joys of work,
such as to grow and become positive by “working” and through “jobs”
while making the most of their diverse values. We aim to become a“company that offers personnel service as a social infrastructure” that
supports the mobility and stability of employment while placing emphasis
on a trust relationship with both companies and the people who work.

Financial Highlights
Interim highlights for the first six-month periodof the fiscal year ending March 2015

Best performance everon the back of strong demand
Sales

Operating Income

192.2 billion yen
from aPresident and Representative Director
Joined Tempstaff in 1988. Became Head of the Sales headquarters andDirector in 1995, Head of the East Japan Sales headquarters andExecutive Managing Director in 2006, Executive Vice President in 2010,and Executive Vice President and Representative Director in 2012. He has
been in charge of the sales division throughout his career. In 2013 heassumed the post of President and Representative Director. He also holds
the posts of Chairman of the Japan Staffing Services Association andcouncil member of the Health Insurance Society for Temporary Workers.
His motto is “Little Things Make a Big Difference.”

1

TEMP REPORTCreating
Jobs

Corporate Philosophy
AddingContributing
Value toto Society
the Individualfrom a year

UP 10.2%

Interim Dividendper Share

5.7 billion yen
from a year

earlier

UP 36.3%

Net Income

14 yenearlier

UP 62.8%

Trend of business performance of the past
five years
Operating income 23,000(Unit: million yen)

18,597(forecast)

396,500(forecast)

5,665

Masamichi Mizuta

10.2 billion yen

year earlier

8,115

225,273 233,195

9,832

362,489

247,232

Sales (Unit: million yen)

FY2010FY2011FY2012FY2013

FY2014(forecast)

TEMP REPORT

2

Operation Overview by Segment

Temporary Staffing Segment

Creating further synergy.
Our shift to a seven-segment structure.
We have shifted to a new segment structure based on business units with the aim of maximizing synergy effect.
We seek appropriate distribution of managerial resources by consolidating duplicate business domains.

In this segment we offer temporary staffing services that are the core businessof the Temp Group. Group companies with strengths in localized operations,specialized jobs and specific companies cooperate in offering the service.
Order intake has been rising due to increased corporate activity from the“Abenomics” effect. We have achieved growth in both sales and profits due toendeavors to increase registrants through long-standing efforts in the
improvement in staff satisfaction and promoting the introduction of friends,
among others.

Sales(Unit: million yen)

271,600

Full 251,660(forecast)fiscal yearFirst
six-month
period123,405

134,368

UP 8.9%FY2013TopicsBPO Segment

2014

May Tempstaff

Tempstaff

Awarded first place in “Re-employment Ratio”
in the Temporary Staff Satisfaction Survey

Started a service to support “blank mamas”
return to work

In the 21st Temporary Staff Satisfaction Survey by the Monthly Jinzai
Business, Tempstaff was awarded first place in the “Re-employment
Ratio,” which is decided by the number of people who replied that theywanted to continue working as staff of the temporary staffing service.

Tempstaff started a “working mother trainee system” that supports thereturning to work of so-called “blank mamas,” mothers with work
experience, whose participation in the workforce is anticipated.
Tempstaff aims to resolve labor shortages by guiding mothers toreturn to work by supporting skill improvements and providing support
amid their psychological anxiety in going back to work.

AugustTempstaff Technologies

Embarked on developing engineers of 3D CAD software,
CATIA with a rise in personnel needs
Following strong performances of the manufacturing industry, theshortage of CATIA engineers has become prominent. Tempstaff
Technologies started offering a new training program that takes
advantage of its know-how in CATIA training, which it has been offering
to its employees over the years. Tempstaff Technologies aims to develop
100 engineers in the first year.

3

September

TEMP REPORT

September

Tempstaff

In this segment we offer a wide range ofoutsourcing services mainly in clerical work
such as the operation of business processing
centers and call centers. We have improved
the productivity of outsourced work throughadvanced expertise, the re-establishment ofworkflows, and activities to improve work
quality. Our service has gained highreputation among our customers. Demandhas remained on a rising trend and sales
have been robust. Furthermore, ourprofitability has improved due to continued
efforts to improve the quality of projects.

FY2014

ITO Segment
Sales(Unit: million yen)Fullfiscal yearFirst
six-month
period19,90018,485

8,873(forecast)

9,519

UP 7.3%

FY2013

FY2014

We offer SI services and outsourcing
services from consulting to planning,
designing, development, operationand maintenance of companies’ IT
systems. Due to the increase incompanies’ investment in systems,
demand has been robust and ourutilization rates have remained high.
Sales increased significantly by
14.7% year on year, while operating
income surged by 71.5% year on
year as a result of higher-value
added services.

Sales

22,000(Unit: million yen)Fullfiscal yearFirst
six-month
period19,988

9,147(forecast)

10,494%
UP 14.7

FY2013

FY2014

Made CareerRise of the Tepco Group a subsidiary
Tempstaff made CareerRise, a temporary staffing service company of
the Tepco Group, its subsidiary. We intend to deepen its business byutilizing the Temp Group’s matching know-how and CareerRises’s
sales platform.

* BPO: Business Process Outsourcing* ITO: IT Outsourcing* Sales of each segment are those after eliminating internal transactions. The segment classifications were changed in FY2014,
and the business results of the previous term have been restated according to the new segment classifications.

TEMP REPORT

4

Operation Overview by Segment
Promoting the re-organizationof the business structure

Engineering Segment
On the back of our wealth of engineers, we operate anengineering business in highly specialized fields such as
automobile design development/testing, aircraft design, anddigital audio visual equipment and software development.
Following the expansion of demand in the booming
automobile and electronic industries, our utilization rates haveremained high. Furthermore, revenues have significantly
increased as a result of efforts to improve the utilization of new
graduate engineers as a measure to address labor shortage.

Sales(Unit: million yen)Fullfiscal yearFirst
six-month
period23,10021,476

10,224(forecast)

11,520UP 12.7%

FY2013

FY2014Career Segment

NED Segment

In this segment we offer “DODA,” a careerchange service through the provision of job
opening information and career consultants,
outplacement support services and overseas
recruitment services mainly in Asia. On the backof the robust domestic economy, we haveachieved significant increases in sales andprofits due to rising demand at both companies
that are accelerating the hiring of personnel andcareer changers who are seeking jobs that
better suit their wishes. Along with the
Temporary Staffing segment, the Career
segment is a driver of business performance.

In this segment, we utilize the know-how of ourpersonnel business to develop business domainsthat will lead to the creation of new employment.
In addition to employment support for thephysically challenged, which we have expanded
through business re-organization of the Group, we
operate various businesses such as the recruitmentof new graduates, personnel services for thechildcare, nursing care and training fields, and theoperation of childcare facilities, as well as
undertaking public works. We will continue to seek
new ways of working and employment, and todevelop new personnel businesses.

Sales(Unit: million yen)Media Segment
In this segment we operate “an,” one of Japan’s largest
part-time job opening information services. Although sales
were up 12.2% year on year in the first half on the back of arise in personnel needs due to the robust economy, we posted
an operating loss of 31 million yen owing to continued
investment that focused on improvement in the ability to
attract individual customers and the ability to develop
products. Amid intensified competition, we aim to continuously
improve our service as well as our sales capabilities.

Full
fiscal year

Sales

21,000(Unit: million yen)Fullfiscal yearFirst
six-month
period(forecast)

18,235

8,580

TEMP REPORT

First
six-month
period(forecast)

28,415

13,5629,628

FY2014FY2013

13,200

Sales(forecast)(Unit: million yen)Fullfiscal year

FY2014First
six-month
period

3,515

4,692

%
UP 33.5

FY2013

FY2014

Restructuring subsidiaries to strengthen the Asian region
Temp Holdings established TS Intelligence South Asia Holdings, headquarters of theSouth Asia region. We will seek to restructure our subsidiaries in each region under a
two-headquarters structure with TS Kelly Workforce Solutions, to establish a sales
platform and reinforce our competitiveness in the Asian region.

May
Merger of Tempstaff Singapore and Intelligence Asia
Two subsidiaries in Singapore were merged, with Intelligence Asia as the surviving company.
It has become one of the largest Japanese personnel services company in Singapore.

May
Temp Holdings announced the merger in October of Intelligence Benefics andTempstaff Frontier, both of which have a track record in employment support for thephysically challenged, and that the new company will be named Frontier Challenge. By
promoting the integration and evolution of know-how of both companies, we will aim tofurther improve customer satisfaction.

AugustAnnounced the transfer of Intelligence’s temporary staffing business tocertain Group companies
A part of Intelligence’s temporary staffing business in the Hokkaido, Chubu, Kansai,
Chugoku and Kyushu regions are to be transferred in October to Tempstaff and otherGroup companies. We will promote optimization of management of the Group to seek
further growth.

Overseassubsidiaries* Sales of each segment are those after eliminating internal transactions. The segment classifications were changed in FY2014,
and the business results of the previous term have been restated according to the new segment classifications.

May

Announced the integration of support business for the physically challenged

11,015

15,780%UP 16.4%
UP 12.2

FY2013

5

32,2002014

We are making efforts in various re-organizations in orderto further deepen the organic collaborationof Group companies and accelerate synergy.

* NED: New Employment Development
TEMP REPORT

6

Overview of Consolidated Financial Results
Please visit our website for more detailed IR information.

Sales

Operating Income(Unit: million yen)

(Unit: million yen)

23,000(forecast)

25,000362,489

20,000300,000

200,000

174,420

192,273

0
Full
fiscal yearFirst
six-month
period(forecast)

12,000

28.00
30.00

(forecast)

24.00
9,857
20.00

8,000

7,506
%
P 36.3

FY2013

FY20140

FY2013

FY2014362,489

396,500 (forecast)Fullfiscal year

18,597

192,273First
six-month
period

U

7,506

4,000

0

FY2013

FY2014

13,400 (forecast)Fullfiscal year

24.00

28.00 (forecast)

5,730

First
six-month
period

10.00

14.00

FY2013

FY201423,000 (forecast)Fullfiscal year

9,857

10,234First
six-month
period3,520

Although there was an impact of
goodwill amortization following there-organization within the Group in the
Asian region, net income also grewsignificantly to reach 5.7 billion yen, up
62.8% year on year.

POINT 2
Increase in accrued
consumption taxes

TEMP REPORT

6,407

87,463

96,847

9,384

Cash and deposits

36,292

41,864

5,572

Noncurrent assets

89,96986,992–2,976

Right of trademark

11,66011,353–307

Goodwill

57,08956,091–997

40,000Liabilities

87,62990,981

3,351

0

2 Current liabilities

44,15450,4056,251

43,47440,575–2,89915,00015,000—Current assets

Noncurrent liabilities
Convertible bond-type bonds
with stock acquisition rights

3160,000

89,96986,992

2014/3

2014/9Liabilities/Net Assets(Unit: million yen)

Current liabilities

Noncurrent liabilities

Net assets

200,000

92,8593,055

85,38090,0704,689

Capital stock

9,980

9,980

—

Capital surplus

13,572

13,572—

Legal retained earnings

62,14066,8304,689

40,000

2,829

2,017

–812

0

The Temp Group applied “Accounting Standards for Presentation of Comprehensive Income” inthe fiscal year ended March 2011. “Comprehensive income” is calculated by marking assets andliabilities to market and adding the profits or losses to net income.

96,84780,00089,803

Minority interests

87,463120,000–2,320Shareholders’ equity

Noncurrent assets

200,000

16,240Net assets

POINT 3
Increase of
5,730 million yen in
net profit

Current assets

18,560Long-term loans payable

We have set dividends per share for thesecond quarter of this fiscal year at
14 yen, an increase of 4 yen from 10 yen
per share for the second quarter last year
and as per our initial plan. Year-end
dividends for FY2014 are scheduled to
be 14 yen per share.

Reference

7

183,840

1(Unit: million yen)

Change177,433

Assets10.00

UAssets2014/910.00%
P 62.80

As a result of a substantial increase insales, profits grew significantly in all
major segments. Operating income
exceeded 10.0 billion yen for the firsttime for the first six-month period toreach 10.2 billion yen, up 36.3% year on
year. In addition, the operating marginrose 1.0 point year on year to 5.3% on
the back of the steady expansion of
performance in the high-margin Careerand ITO segments.

POINT 1
Increases in cash anddeposits, notes andaccounts
receivable-trade,work in progress

http://www.temp-holdings.co.jp/

2014/3

14.00

5,730
3,520

5,000

Demand for personnel from clientcompanies continued to be robust. Job
seekers were also active and sales
increased in all segments. As a result,sales for the first six-month period of the
fiscal year ending March 2015 rose 10.2%
year on year to 192.2 billion yen, adouble-digit growth as in the same
period last year.

Balance Sheet(Unit: yen)

13,40018,597

U

174,420

16,000(forecast)

10,234%
P 10.2(Unit: million yen)

15,00010,000100,000

Dividend per Share(Unit: million yen)

396,500
400,000

Net Income

Website160,000

44,15450,405120,000

43,47440,57589,80392,8592014/3

2014/980,000Comprehensive
IncomeFirst six months of
FY ended March 2014

First six months of
FY ended March 2015

3,773 million yen

5,025 million yen
TEMP REPORT

8

The Temp Group’s CSR Activities

Information

The Temp Group executes CSR (Corporate Social Responsibility) through its personnel business as well as making
various social contribution efforts.

For women and the development of global personnel

Company Outline

Stock Information

Distribution of Shareholders(As of September 30, 2014)(As of September 30, 2014)(As of September 30, 2014)

Company Name

Temp Holdings Co., Ltd.

Nine Temp Group Challenge Woman Scholarship students departed

Established

October 1, 2008

The scholarship program for adults to study abroad, which the Temp Group started in1991 to commemorate the 40th anniversary of Tempstaff, has been renewed to theTemp Group Challenge Woman Scholarship.
The nine successful applicants who aim to create new values headed out to Seattle,
U.S. and Sydney, Australia with their individual hopes in mind, whether to spreadcalligraphy to the world, create a system of animal protection, or to create a picturebook that adults can also enjoy.

Head Office2-1-1 Yoyogi, Shibuya-ku,
Tokyo, JAPANType of Business

Management planning,
administration and operations
related to subsidiaries andgroup companies that handle
temporary staffing andplacement services.

CapitalUpper photo: Exclusive English lesson
Lower photo: At a calligraphy event

9,980,640,000 yen

Members of the Board(As of September 30, 2014)

Chairman and Director
Vice Chairman

Mikihiko Hibino
Masamichi Mizuta

Executive Vice President

Hirotoshi Takahashi

Executive Managing
Director

Toshio Saburi

Under the support of the Temp Group, Yuya Kimura, who is active in both athletic sports games
and work while having disabilities, has been achieving excellent performance again this term.

Director

Takao Wada

Director

Carl T. Camden

Major achievements of Yuya Kimura during this term

Full-time Auditor

Hiroshi Shimazaki

May 2014

15th Championship of the Tokyo Metropolitan Sports Association for the Disabled, 1,500 m, 1st place

Auditor

Kaoru Arai

July 2014

19th Championship of the Kanto Amateur Association for the Disabled Persons, 5,000 m, 1st place

Auditor

Ryosuke Tamakoshi

September 2014

Official IPC 2014 Japan Para Track and Field Championships, 1,500 m, 1st place

AuditorNaoshige Shindo

Yuya Kimura (Thanks Temp) achieving excellent performance again this term

240,000,000● Total number of shares issued:

73,521,500● Shareholders:Foreign companies,
etc.

Financial institutions
14,263,300 (19.40%)

18,700,781 (25.44%)

Financial
instruments
business
operators

7,294● Major shareholders (top 10)
Name of shareholder

Yoshiko Shinohara

Shares held
(shares)

Votingrights (%)

19,277,200 26.37

The Yoshiko Shinohara
Memorial Foundation

4,100,000

5.60

The Master Trust Bankof Japan, Ltd.
(Trust Account)

3,433,600

4.69

Kelly Services Japan, Inc.

3,035,600

4.15

MSIP CLIENT SECURITIES

2,815,860

3.85

Yoshiko Shinohara

President andRepresentative Director

For the physically challenged● Authorized number of shares:

Japan Trustee Services
Bank, Ltd. (Trust Account)

2,525,800

3.45

Yoshimi Iyadomi

1,812,800

2.48

The Bank ofTokyo-Mitsubishi UFJ, Ltd.

1,232,000

1.68

1,231,082

1.68

Woman Staff Ltd.

1,206,000

1.64* Voting rights are calculated based on the number ofshares excluding shares in the treasury stock from thetotal number of shares outstanding (73,094,838).

Individuals, others
29,510,192(40.14%)Other
companies,etc.
9,635,141(13.11%)

Shareholder Information
Business year

From April 1 to March 31 of the following year

Annual general
meeting ofshareholders

Late June

Record dates

Annual general meeting of shareholders:March 31
Year-end dividend: March 31
Interim dividend: September 30

Administrator ofshareholders’ register /Mitsubishi UFJ Trust and Banking Corporation
Special accountmanagement institution

Contact

Temp Holdings Employee
Shareholders Association

985,424(1.34%)

Treasurystock
426,662(0.58%)(Unit: shares)

Mitsubishi UFJ Trust and Banking Corporation
Custody Service Department
7-10-11 Higashisuna, Koto-ku, Tokyo
137-8081, JAPAN
Tel: 0120-232-711(toll free number available only within Japan)
URL http://www.tr.mufg.jp/daikou/

Stock listing

Tokyo Stock Exchange, First Section

Website of
public notices

URL http://www.temp-holdings.co.jp/(When electronic public notices are notpossible due to accidents or other unavoidable
circumstances, announcements will appear in
the Nihon Keizai Shimbun newspaper.)Yuya Kimura

9

TEMP REPORTTEMP REPORT

10

Procedures for Shares
Shares recorded in the accounts of securities companies
Procedures, inquiries, etc.

Contact

Inquiries about the sending and returning of mailInquiries about dividends after completion of the payment period
General inquiries about administrative work related to shares

Administratorof shareholders’registerProcedures and inquiries not included above, including changes
in address, name, etc.

Please contact your securities company.

Shares recorded in the special accountProcedures, inquiries, etc.

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11, Higashisuna, Koto-ku, Tokyo 137-8081, JAPAN
Tel: 0120-232-711 (toll-free number available only within Japan)

Contact

Requests for transfer from a special account to a general account
Changes in address, name, etc.
Account balance inquiries
Designation of method for receiving dividends (*)

Special accountmanagement
institution

Inquiries about the sending and returning of mails
Inquiries about dividends after completion of the payment period
General inquiries about administrative work related to shares

Administratorof shareholders’register

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11, Higashisuna, Koto-ku, Tokyo 137-8081, JAPAN
Tel: 0120-232-711 (toll-free number available only within Japan)
Method for requesting procedural documents
Request through the automatic answering system:
0120-244-479 (toll-free number available only within Japan)
Download online: http://www.tr.mufg.jp/daikou/(*) Shareholders who own shares recorded in the special account may not choose the method of receiving dividends in proportion to the amount of shares held.

Internet“TEMP NAVI for Individual Investors”
http://www.temp-holdings.co.jp/english/

This website publicizes various information such as the Temp Group’s businesses andearnings results in an easy-to-understand manner.

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

It is a new stock price index that consists of companies that meet various requirements for global investment,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.

Temp Holdings Co., Ltd.
Shinjuku Maynds Tower, 2-1-1 Yoyogi, Shibuya-ku, Tokyo, JAPAN Tel: +81-(0)3-3375-2220
Matters stated in this report include statements concerning the Company’s plans and forecasts for the future.
Actual earnings may differ materially from the statements due to a variety of factors, and the statements do not mean that we promise to achieve these figures.

This printing product uses FSC®-certified paperand vegetable-oil-based ink.