Briefing on Financial Results
for the Fiscal Year Ended March 31, 2013

Tokyo Stock Exchange 1st Section （2181）
May 23, 2013

Contents

P2： Greetings

P4： New Organizational Framework of Temp Holdings andAcquisition of Common Stock of Intelligence Holdings, Ltd.

P11 ： Part 1 : Outline of Consolidated Interim Financial Results
P24 ： Part 2 : Marketing Strategy
P30 ： Media and Career (Intelligence Group)
P33 ： Reference Material

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

1

Summary of Financial Results Announcement for FY March 2013
Achieved increases both in net sales and operating income for two consecutive years
Posted record net sales and operating income after the establishment of Temp Holdings*Rounded down. (Units: million yen, %)Sales

Operating Income

400,000

365,000

20,00018,000350,000
18,50016,000300,000
250,000

245,062
224,613225,273

233,195

14,000247,232

12,000200,000
150,000

10,000
9,848

8,908

8,000

8,170
6,343

100,000

6,000

5,748

4,000

50,000Sales

2,000
0Operating Income0
2009/3

2010/3

2011/3

2012/3

2013/3

2014/3(forecast)

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2

New Management Structure of Temp Holdings (planned) for FY March 2014
* As of June 21, 2013 (scheduled)

Chairman and Representative Director

Yoshiko Shinohara

Representative Vice Chairman

Mikihiko Hibino

President and Representative Director

Masamichi Mizuta

Executive Vice President

Hirotoshi Takahashi

Executive Managing Director

Toshio Saburi

Director

Takao Wada

Director

Kazuomi Morimoto

Director

Carl T. Camden

Full-time Auditor

Hiroshi Shimazaki

Auditor

Kaoru Arai

Auditor

Ryosuke Tamakoshi

AuditorNaoshige Shindo

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

3

New Organizational Framework of Temp Holdings
and Acquisition of Common Stock of Intelligence
Holdings, Ltd.

Tokyo Stock Exchange 1st Section （2181）

Business Management Framework of Temp Holdings for FY March 2014
Temp Holdings: Ensure governance of Temp Group and optimize the allocation of managerial
resources
Each segment: Strengthen segment-based management framework under responsibility of each
executive and promote to enhance enterprise value through improvement in operational efficiency*Rounded down. (Units: million yen, %)2013/3
2013/3President andRepresentative Director

Masamichi Mizuta
Local operating companies,
specialized operating companies

6%
147.

Operating
IncomeTemporary Staffing
andRecruitment Services

YoY

Sales

Chairman and Representative Director Yoshiko Shinohara
Representative Vice Chairman
Mikihiko Hibino
President and Representative Director Masamichi Mizuta

2014/3
2014/3 (forecast)(forecast)

YoY

8%
187.

IT andEngineering

Outsourcing

Media and Career(Intelligence Group)

Other BusinessDirector
Kazuomi Morimoto

Director
Takao Wada

Executive Vice President

Executive Managing Director

Hirotoshi Takahashi

Toshio Saburi

Human resource andproject management
services in IT andmechatronics fields

Outsourcing services for administrationand sales-related tasks, such as data
entry/processing, business processing,IT support, pharmacovigilance (PV)information management tasks, andinsurance advices

Media service, career service,staffing service, outsourcing
service, employment
development, new andoverseas service

Outplacement support
services, employee training
service, nursing care service,and support for overseas
study and training

temporary staffing (office clerks andspecialist jobs), recruitment
business, and overseas temporary
staffing and recruitment services* We renamed the former R&D Outsourcing Segment to IT & Engineering Segment from the Fiscal Year ending March 2014. Simultaneously, we changed the allocation of subsidiaries
to each segment. Each director will be appointed on June 21, 2013.
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

5

Improve and expand engineering and IT services
To access specific labor markets with strong potential growth, we will focus on enhancing
professional expertise through improvement and expansion in service framework and network.
In particular, we will activate the promotion in IT related engineering business fields which
require high professionalism and experience serious shortages of human resources.
Three companies with competitive edge in engineering services joined Temp Group, forming a stable engineering human resources group.

March 2013

May 2013 (scheduled)

Design and development of software and hardware
for digital audio visual products

Designing and testing parts used in commercial
vehicle equipment/electronic components

AVC Technology Co., Ltd.
AVC Multimedia Software Co., Ltd.

DRD Co., Ltd.

Engineers group with high technological skills will provide high-end services to clients
Combination of these companies with competitive edge in engineering services will create synergistic effects.

HR businesses dedicated to engineering services【Design and development of software andhardware for digital audio visual products】】【HR services mainly in IT field】】【R&D for automobiles, etc.】】【Outsourced software development】】【Designing and testing parts used incommercial vehicle
equipment/electronic components】】

DRD

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6

Overview of Acquisition of Common Stock of Intelligence Holdings, Ltd.
Temp Holdings acquired all of the common shares outstanding ofIntelligence Holdings, Ltd. from a limited liability partnership managed by
Kohlberg Kravis Roberts & Co. (“KKR”) and the management team and
Employees’ Shareholding Association of Intelligence Holdings, Ltd.
Temp Holdings acquired the shares of Intelligence Holdings, Ltd. from the existing shareholders.

Management team and
Employees’ Shareholding
Association of IntelligenceIntelligence Capital L.P.

3.17%

100% stake ofIntelligence
Holdings, Ltd.

96.83%
Acquisition cost(estimated amount)

51,332 million yen

Stock acquisition
schemeAcquisition of all of the common shares
outstanding

Schedule

March 26, 2013: Resolution of the Board of
Directors’ meeting
Conclusion of the share transfer agreement with theshareholders of Intelligence Holdings, Ltd.
April 26, 2013:Acquisition of common stock ofIntelligence Holdings, Ltd.

Intelligence Holdings, Ltd.

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Temp Holdings Co., Ltd.

7

Business Summary of Intelligence Holdings, Ltd. (as of March 2013)
Description of businesses and service brands

Business domain■Media service:・Job advertising for part-time/contractor employment■Placement service:・Regular staff placement and job advertising for regular
employment■Temporary staffing service:・Worker dispatching service (engineers and office clerks)■Outsourcing service:・Outsourcing for operational supports mainly in IT■Other services:・IT system development and overseas services【Breakdown of sales by segment for FY ended March 2013 】

Others
8.1%
Media
20.0%
Outsourcing
15.9%

Media

• Offering online, mobile and magazine job advertisement
services (in particular, under the brand of “an”) coveringmajor cities throughout Japan• Supporting recruitments for mainly temporary and part-timejobs but also covering contract and full-time jobs.

Placement• Offering original services (under the brand of “DODA”) withcombination of regular staff placement and job advertising
for regular employment and career changes• Supporting corporate recruitment activities by offering
combined various services to access target candidates towhom it is difficult to access via standalone placement oradvertising services

Temporary staffing• Providing temporary staffing services in office clerk andengineering jobs in major cities throughout Japan.
• Supporting clients for operational management, capitalizing
on its three competitive edges: namely, (i) capability to
attract human resources; (ii) staff management capabilityand (iii) adherence to compliance.

Intelligence’s
staffing service

Outsourcing• Providing outsourcing services on operational supports
mainly in IT and communication business fields. In
addition, offering business process outsourcing services,such as sales outsourcing, office administration and callcenter operations• This segment also handles outsourced services for public
service agencies and placement service of new graduates.

Others•Placement
19.9%
Temporarystaffing
36.1%*Net sales for FY ended March 2013 are unaudited. Each segment’s
sales are after elimination of intercompany transactions
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••

Providing IT consulting and outsourced development ofsoftware
Dispatching management advisors
Providing placement services and personnel
management consulting in overseas countries (China,
Hong Kong and Singapore)*ICT Outsourcing Segment has transferred to Intelligence Business
Solutions, Ltd. since April 2013.

8

Trend of Business Results in Intelligence Holdings, Ltd.
Intelligence Holdings has been steadily recovering the business performance after the wakeof the worldwide recession triggered by the Lehman Brother's bankruptcy in September 2008,
along with keeping the organization streamlined.
*Rounded down. (Units: million yen, %)Sales

100,000

Operating Income

10,000

Wake of the worldwide
recession triggered
following the Lehman
Brother's bankruptcy

90,00080,000

9,000
8,000

70,0007,000

60,0006,000

50,00040,000In September 2008,
Intelligence becamedelisted through stock
swap with USEN.

5,000
4,000

30,0003,000

20,0002,000

On July 2010, Kohlberg
Kravis Roberts & Co.
acquired majority stakein Intelligence.

10,000

1,000

0
Sales

Operating
Income2008/2

2009/2

2008/2

2010/2

2009/2

2011/3

2010/2

2012/3

2011/3

2013/3(estimate)2012/3

2014/3(forecast)

2013/3

2014/3(estimate)(forecast)

Sales

90,571

79,906

54,68961,896

69,83380,80290,000Operating income

7,100

847

1,247

3,560

5,024

7,771

9,500

*Actual results up to the Fiscal Year ended March 2011 were reported as consolidated performance of Intelligence, Ltd., and actual results for Fiscal Year ended March 2012 were reported as
consolidated performance of Intelligence Holdings, Ltd. In addition, figures for the Fiscal Year ended March 2011 were adjusted to those for 12-month basis because the fiscal period was
irregular due to structural reforms, etc. Figures for the Fiscal Year ended March 2013 are unaudited.
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9

Combined Service Lines of Two Groups
New organization to be a human resources service company as social infrastructure providing
supports to job seekers and employers, capitalizing on its strength in quality of jobs and humanresources. Creating a new human resources platform that will help companies mobilize andstabilize the employment .

Top-ranked position both in recognition and track records
in the fields of recruiting advertisement for temporary andpart-time jobs

Media

Top-ranked position both in recognition
and track records

Placement
Having the largest scale/network of temporary
staffing services covering all over Japan

Presence in major cities
throughout Japan

Temporary staffing

R&D Outsourcing

Intelligence’s
staffing service

R&D Outsourcing

IT and communication

Outsourcing
Business process
outsourcing services

Outplacement
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Systemdevelopment in IT
and communication
fieldsOutsourced services
for public service
agencies

Business process
outsourcing
services

Outplacement services
10

Part 1:
Outline of Consolidated
Financial Results

Tokyo Stock Exchange 1st Section （2181）

FY March 2013: Sales by Segment
Temp Holdings posted record net sales and achieved increase in sales in all the segments*Rounded down. (Units: million yen, %)*△= Negative value

＋4.0％
％

＋18.1％％＋6.6％％

202,500
194,757

8,702

Temporary Staffing and
Recruitment Services
2012/3

2013/3

9,277

R&D Outsourcing
2012/3

2013/3＋26.9％％

26,06530,796

Outsourcing
2012/3

Other Business2012/3

2013/3

2012/3
Sales

4,657

3,671

2013/3

2013/3
Ratio(%)

Sales

Ratio(%)

ChangeYoY(%)

194,757

83.5

202,500

81.9＋7,743104.0

Office Clerk

53,08222.8

49,74720.1△3,334

93.7

Technical Clerk

75,38932.3

70,491

28.5△4,89793.5

IT Professional

18,4207.9

18,952

7.7

＋532

102.9

Sales

7,804

3.3

7,004

2.8

△799

89.8

Other

36,36815.6

52,525

21.3

16,156

144.4

Recruitment Services

3,692

1.6

3,778

1.5

＋85

102.3

R&D Outsourcing

8,702

3.7

9,277

3.8

＋575

106.6

Outsourcing

26,06511.2

30,796

12.4＋4,730118.1

Other Business

3,671

1.6

4,657

1.9

＋986

126.9

233,195

100.0

247,232100.0

14,036

106.0

Temporary Staffing and Recruitment Services

Total*The segment structure was changed in the first quarter ended June 30, 2012. Figures for the fiscal year ended March 2012 are recalculated after the change in segment structure.
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12

FY March 2013: Consolidated Statements of Income
Achieved increases both in net sales and operating income for two consecutive years
Posted record net sales and operating income after the establishment of Temp Holdings in October 2008
*Rounded down. (Units: million yen, %)*△= Negative value

＋6.0％
％

＋69.1％％＋20.5％％

247,232
233,195

8,170

Sales
2012/3

9,848

3,482

Operating Income
2012/3

2013/3

2012/3

Ratio(%)

Net Income

2013/3

2013/3

5,888

2012/3

2013/3

Ratio(%)

ChangeYoY(%)

2013/3(Forecast)

Sales

233,195

100.0

247,232100.0＋14,036106.0

247,200

Cost of Sales

196,42684.2

207,768

84.0＋11,342105.8－

Gross Profit

36,76915.8

39,46416.0＋2,694

107.3－

Selling, General and
Administrative Expenses

28,59912.3

29,61512.0＋1,016

103.6－

Operating Income

8,170

3.5

9,848

4.0

＋1,678

120.5

9,800

Ordinary Income

8,434

3.6

10,1194.1＋1,684120.0

10,000Net Income

3,482

1.5

5,888

2.4

＋2,405

169.1

5,300

*The earnings forecast for the full fiscal year 2013 was raised.
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13

Transition of Quarterly Business Results
Main negative factor of change in year-on-year for 4Q FY Ended March 2013 was a decrease in
number of operating days; however, quarterly operating results continued to perform well in general.
64,000Operating
Income

Sales

3,500

62,0003,000

60,0002,500

58,0002,000

2011/3 Sales
2012/3 Sales
2013/3 Sales
2011/3 Operating Income

56,0001,500

54,0001,000

52,000500

2012/3 Operating Income
2013/3 Operating Income

50,000

0
1Q

2Q

3Q

2011/3*Rounded down. (Units: million yen, %)*△= Negative value

4Q

2012/3

2013/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

Sales

55,70656,08456,34057,141

56,52056,75557,56562,35460,533

107.1

60,966

107.4

63,320110.062,411

100.1

Cost of Sales

46,44247,45747,32948,34347,34048,242

48,64052,20350,856

107.4

51,618107.0

52,915108.8

52,376100.3

Gross Profit

9,263

8,626

9,010

8,797

9,179

8,513

8,925

10,151

9,676

105.4

9,348

109.8

10,404116.6

10,03498.9

Gross Profit
Rate

16.6

15.4

16.0

15.4

16.2

15.0

15.5

16.3

16.0

－

15.3

－

16.4

－

16.1

－

Selling, Generaland Administrative
Expenses

7,657

7,472

7,474

7,346

7,208

6,997

6,967

7,425

7,270

100.9

7,192

102.8

7,375

105.9

7,776

104.7

Operating
Income

1,606

1,154

1,535

1,451

1,971

1,515

1,957

2,725

2,405

122.0

2,155

142.2

3,029

154.8

2,258

82.8

2.9

2.1

2.7

2.5

3.5

2.7

3.4

4.4

4.0

－

3.5

－

4.8

－

3.6

－

Operating
Income Ratio

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YoY(%)

2Q

YoY(%)

3Q

YoY(%)

4Q

YoY(%)

14

Transition of Business Results by Segment (1)*Rounded down. (Units: million yen, %), △= Negative value*Sales are those after eliminating internal transactions, and operating income is that before eliminating internal transactions.
*The segment structure was changed in the first quarter ended June 30, 2012. Figures for the fiscal year ended March 2012 are recalculated after the change in segment structure.

Temporary Staffing and1
1
Recruitment Services

22 R&D Outsourcing

Sales of the previous year

Sales of the current year

Operating Income of the previous year

Operating Income of the current year

53,000

Negative impact due to a decreasein number of operating days

Sales

Operating
Income2,500

Sales of the previous year
Operating Income of the previous year

2,000

50,000Operating
Income

3,000

Sales

2,500

Steady growth maintained in spite ofa decrease in number of operating days

52,00051,000

Sales of the current year
Operating Income of the current year

200

150

2,000

100

1,500

50

1,000

0

1,500
49,00048,0001,000
47,00046,000500

45,00044,000

Sales
YoY

Sales
YoY

Sales
YoY

Sales
YoY

105.6%

105.4%

108.1%

97.3%

1Q

2Q

3Q

-50

0

0

Sales
YoY

Sales
YoY

Sales
YoY

Sales
YoY

110.1%

107.8%

107.2%

101.9% -100

1Q

4Q

3Q

4Q

Full Year

2012/347,75847,31348,05051,634

194,757

2013/350,45749,86051,94250,241

202,500

2012/3

1,680

1,132

1,465

1,889

6,168

2013/3

2,252

1,453

2,290

1,299

7,296

Operating
IncomeOperating
Income

2Q

Sales

Sales

1Q

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500

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Full Year

2012/3

2,014

2,107

2,280

2,299

8,702

2013/3

2,217

2,271

2,445

2,342

9,277

2012/3

△71

9

105

134

177

2013/3

△61

59

182

107

288
15

Transition of Business Results by Segment (2)*Rounded down. (Units: million yen, %), △= Negative value*Sales are those after eliminating internal transactions, and operating income is that before eliminating internal transactions.
*The segment structure was changed in the first quarter ended June 30, 2012. Figures for the fiscal year ended March 2012 are recalculated after the change in segment structure.

33 Outsourcing

44 Other Business

Sales of the previous year
Operating Income of the previous year

10,0009,000

Sales of the current year
Operating Income of the current year

Sales
High growth maintained and operating margin
improved reflecting improvement in cost awareness.

Operating
Income

8,000

900

1,400

800

1,200

Sales of the previous year

Sales of the current year

Operating Income of the previous year

Operating Income of the current year
Operating
Income

Sales

160
140
120

Other business segment indicates a steady
growth mainly in outplacement support service

700

1,000

7,000

100

600

6,000
500

80

800

60

5,000
400
4,000

600

40

300

3,000

20

400
200

2,000
Sales
YoY

Sales
YoY

Sales
YoY

Sales
YoY

116.3%

117.7%

122.0%

116.7%

1Q

2Q

1,000
0

3Q

100
0

Sales
YoY

Sales
YoY

Sales
YoY

Sales
YoY

117.3%

140.9%

140.9%

116.5%

0

4Q

1Q

3Q

4Q

Sales

2012/3

5,869

6,471

6,269

7,455

26,065

2013/3

6,829

7,617

7,647

8,701

30,796

Operating
IncomeFull year

2012/3

320

327

253

571

1,473

2013/3

158

446

397

829

1,832

2Q
1Q

Operating
Income

2Q

Sales

1Q

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0
200

3Q
2Q

-20
-40

4Q

3Q

4Q

Full year

2012/3

877

863

964

965

3,671

2013/3

1,029

1,217

1,285

1,125

4,657

2012/3

△21

△15

80

72

116

2013/3

19

145

141

17

323
16

Transition of Consolidated Business Results
Both net sales and operating income surpassed the previous highs during the FY March 2009
when the worldwide recession triggered by the Lehman Brother's bankruptcy.
Earnings during the FY March 2014 are likely to grow significantly,
thanks to a new consolidation of Intelligence Holdings, Ltd.
*Rounded down. (Units: million yen, %)18,500365,000

245,062

224,613 225,273 233,195

247,232

9,848
8,908

8,170
6,343 5,748

Sales
2009/3

2010/3

2011/3Operating Income

2012/3

2009/3
Sales
Operating Income
Operating Income Ratio (%)
Ordinary Income
Ordinary Income Ratio (%)
Net Income
Net Profit Ratio (%)
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2013/3

2014/3

2010/3

2009/3

2011/3

2010/3

2011/3

2012/3

2012/3

2013/3

2013/3

2014/3

2014/3 (Forecast)

245,062

224,613225,273

233,195

247,232

365,000

8,908

6,343

5,748

8,170

9,848

18,500

3.6

2.8

2.6

3.5

4.0

5.1

9,245

6,734

6,231

8,434

10,11918,300

3.8

3.0

2.8

3.6

4.1

5.0

4,076

2,950

2,410

3,482

5,888

9,000

1.7

1.3

1.1

1.5

2.4

2.5
17

Balance Sheets and Cash Flow for FY March 20132012/3
Actual2013/3
Ratio

Actual*Rounded down. (Units: million yen, %)*△= Negative value

Ratio

ChangeAssets86,529100.0

97,592100.0

11,063Current assets

72,49983.8

80,606

82.6

8,106

(Cash and Deposits)

38,31644.3

44,225

45.3

5,909

(Notes and accounts receivable-trade)

30,28235.0

31,997

32.8

1,715

Non-current assets

14,02916.2

16,985

17.4

2,956

Liabilities

34,262

39.6

33,13634.0△1,125Current liabilities

31,49836.4

29,17829.9△2,320

5,000

5.8

－

－

△5,000Non-current liabilities

2,763

3.2

3,958

4.1

1,194

Net Assets

52,26660.4

64,45566.0

12,188

Owners' equity

50,89858.8

60,830

62.3

9,932

△4,977

△5.8

△354

△0.4

4,623

1,514

1.8

2,556

2.6

1,041

(Convertible bonds)(Treasury stock)

Minority interests

Treasury shares decreased inaccordance with the issuance of
new shares resulting from theexercise of convertible bonds.

2012/3・Income before income taxes

2012/3

2013/3

・Decrease (increase) in notes and accounts
receivable-trade

Change10,169Net cash used in investment
activities

△972

△964

7

Net cash used in financing
activities△2,229△1,018

1,210

6,952

5,901

△1,050

Increase (decrease) in cash andcash equivalents
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7,787△2,381

7,948⇒

10,019△1,944

⇒

△378

4,256

⇒

225

△4,047⇒△5,252・Payments for acquisition of newly consolidated
subsidiaries

△78

⇒

△425

・Proceeds from acquisition of newly consolidated
subsidiaries

29

⇒

393

・Increase (decrease) in short-term loans
payable

△557

⇒

△57

・Purchase of treasury stock in consolidation

△650

⇒

△1

・Increase (decrease) in operating debt

Net cash provided by operating
activities

2013/3・Income tax (paid) refund

18Change in Classification of Segments
Temp Holding will report Intelligence Group as a single segment from theFY March 2014. In addition, Temp Holding realigned and renamed the
R&D Outsourcing Segment by adding technological business fields withhigh-value added jobs.
【Former Segments】】
Temporary Staffing
Tempstaff Technologies
andRecruitment Services【New Segments (from FY March 2014)】】
Temporary Staffing Temporary Staffing andandRecruitment Services
Recruitment Services

IT and Engineering IT and Engineering

R&D
Outsourcing

AVC Technology, AVC Multimedia Software,
DRD (scheduled as at May 31, 2013)

Outsourcing
Outsourcing

Tempstaff Technologies
TOYO SOFTWAREENGINEERINGMedia and Career
Media and Career (Intelligence Group)Media, Placement, Temporary staffing,
Employment development / New business /overseas

Other
Other
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

Outsourcing

Other Businesses
19

FY March 2013: Consolidated Financial Results*Rounded down. (Units: million yen, %)2013/3
Sales

Ratio
(%)

YoY
(%)

2013/3

247,232

100.0

106.0

Temporary Staffing and
Recruitment Services

202,500

81.9

104.0

R&D Outsourcing

9,277

3.8

Outsourcing

30,796

Other Business

80,802

100.0

Media

16,125

20.0

106.6

Career

16,080

19.9

12.4

118.2

Temp.

29,193

36.1

4,657

1.9

126.9

Outsourcing

12,858

15.9

Cost of Sales

207,768

84.0

105.8

Others6,544

8.1

Gross Profit

39,464

16.0

107.3

Operating Income

7,771

9.6

Selling, General and
Administrative Expenses

29,615

12.0

103.6

EBITDA

10,774

13.3

Operating Income

9,848

4.0

120.5

Ordinary Income

6,816

8.4

EBITDA

11,2404.5-

Net Income

3,618

4.5

Ordinary Income

10,1194.1

120.0

Net Income

5,888

2.4

169.1

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

Sales

Ratio
(%)

*Net sales for FY ended March 2013 are unaudited. Each segment’s sales
are after elimination of intercompany transactions

20

FY March 2014: Consolidated Forecast of Results (1)2014/3

Sales

275,000

Temporary Staffing and
Recruitment Services

193,200

R&D Outsourcing

46,600Outsourcing

30,000

Other Business

5,200*Rounded down. (Units: million yen, %)*EBITDA represents operating income before depreciation and amortization of goodwill.
We renamed the former R&D Outsourcing Segment to IT & Engineering Segment from the Fiscal Yearending March 2014. Simultaneously, we changed the allocation of subsidiaries to each segment.

Ratio
(%)

YoY
(%)

365,000

100.0

147.6

2014/3

Sales

Operating Income

11,000Temporary Staffing and
Recruitment Services

193,200

52.9

104.7

EBITDA

12,810IT & Engineering

46,600

12.8

143.9

Outsourcing

30,0008.2

117.2

Media and Career(Intelligence Group)

90,00024.7-

Other Business

5,200

1.4

111.6

Operating Income

18,5005.1

187.8

EBITDA

24,9496.8

226.2

Ordinary Income

18,3005.0

180.8

Net Income

9,000

2.5

152.8

2014/3

Sales

90,000Operating Income

9,500

EBITDA

12,139Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

Amortizationof goodwill
and otheradjustment for
consolidation

21

FY March 2014: Consolidated Forecast of Results (2)*Rounded down. (Units: million yen, %)2013/3

2014/3
1st half

2nd half

Full year

1st half

2nd half

Full year

Sales

121,499

125,732

247,232

100.0

178,500

146.9

186,500

148.3

Temporary Staffing and
Recruitment Services

91,53793,063

184,600

74.7

95,150103.9

98,050IT & Engineering

15,67016,71532,38613.1

22,700144.9

Outsourcing

12,045

13,54225,58710.3

14,300Media, Career(Intelligence Group)

-

-

-

-

Other Business

2,246

2,410

4,657

Operating Income

4,561

5,287

Ordinary Income

4,687

Net Income

2,642

Ratio

YoY

YoY

Ratio

YoY

365,000

100.0

147.6

105.4

193,200

52.9

104.7

23,900143.0

46,600

12.8

143.9

118.7

15,700115.9

30,0008.2

117.2

43,850-46,150-90,000

24.7

-

1.9

2,500

111.3

2,700

112.0

5,200

1.4

111.6

9,848

4.0

7,700

168.8

10,800204.3

18,500

5.1

187.8

5,432

10,119

4.1

7,600

162.1

10,700197.018,300

5.0

180.8

3,245

5,888

2.4

3,500

132.4

5,500

169.5

9,000

2.5

152.8

*We renamed the former R&D Outsourcing Segment to IT & Engineering Segment from the Fiscal Year ending March 2014. Simultaneously, we changed the allocation of subsidiaries toeach segment. For this reason, actual results for the Fiscal Year ended March 2013 are adjusted for the classification of segments for this term
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

22

Dividend Policy
Return profits to shareholders upon overall evaluation of future
management strategy and other relevant factors
With regard to the dividends for the Fiscal Year ending March 31, 2013, we determined to pay a year-end
dividend of 10 yen per share, an increase of 2 yen from the preceding Fiscal Year due to the steady
growth of business results. As a result, we will pay cash dividends per share for the Fiscal Year ending
March 31, 2013 of 18 yen.
With regard to the dividends for the next Fiscal Year ending March 31, 2014, we plan to pay cash
dividends per share amounting to 20 yen, consisting of an interim dividend of 10 yen per share, anincrease of 2 yen from the preceding Fiscal Year, and a year-end dividend of 10 yen per share.
2012/3

2013/3

2014/3 (forecast)InterimYear-end

Full year

InterimYear-end

Full year

InterimYear-end

Full year

Per share

6 yen

8 yen

14 yen

8 yen

10 yen18 yen

10 yen

10 yen20 yen1 units(per 100 shares)

600 yen

800 yen

1,400 yen

800 yen

1,000 yen

1,800 yen

1,000 yen

1,000 yen

2,000 yen

Cash dividend
paid

827 million yen

1,133 million yen－

Dividend ratio(consolidated)

23.6%

18.6%

14.5%

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

23

Part 2:Marketing Strategy

Tokyo Stock Exchange 1st Section （2181）

Temp Group Mid-term Management Strategy

Improving
management
efficiency

Providing job
assistance to womenStrengthening
localized services

Developing businessin specialized fields
and new job categories

Expanding our presencein the global market
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

25

TOPICS①

Temporary Staffing and Recruitment Services
Business scale expanded due to M&A deals in the preceding fiscal year.
Inquiries for external personnel and various human resources services are
increasing steadily.
Sales
Sales

2014/3(forecast)

2013/3billion yen

2013/3
2013/3The Revised Worker Dispatch Act
came into force.
The number of clients dealt withincreased[Global Strategy] Enhanced
collaboration with Kelly Services, Inc.
(established a joint venture), andentered into Vietnam

billion yen

YoY
7%
.
4
0
1

2014/3
2014/3
Build up trustful relations with clients throughimprovement in customer satisfaction both in
employers and staff.
Continuous increase in the number of clients dealt
with and the number of orders received[Global Strategy] Enhance collaboration with Kelly
Services, Inc. (mainly in North Asia), and expand
business territories mainly in Asia

*We renamed the former R&D Outsourcing Segment to IT & Engineering Segment from the Fiscal Year ending March 2014. Simultaneously, we changed the allocation of subsidiaries to each segment.
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

26

TOPICS②

R&D Outsourcing
Activation in automobile industry improved operating personnel and operating
man-hours.
Operating rate of engineers stayed at a high level.
Renamed the former R&D Outsourcing Segment to
IT & Engineering Segment.

Sales
Sales

2014/3(forecast)

2013/3billion yen

2013/3
2013/3
Allocated more than140 new graduate
engineers to workplaces smoothly
In August 2012, established TECSEEDSHANGHAI CO., LTD., a subsidiary specializing
in automobile design and development in China
Acquired equity stake of AVC Technology
Co., Ltd. and AVC Multimedia Software Co.,
Ltd., both of which were subsidiaries ofPanasonic Corporation at the end of March2013.

billion yen

2014/3
2014/3

YoY
9%
143.

Activate mid-career employment with the aimof securing capable human resources. In addition,
hire more than 100 new graduate engineers.
Enhance service menus in machinery and IT toaddress clients’ demands
Acquire equity stake of DRD (scheduled at theend of May 2013) Designing and testing parts
used in commercial vehicle equipment/electronic
components*We renamed the former R&D Outsourcing Segment to IT & Engineering Segment from the Fiscal Year ending March 2014. Simultaneously, we changed the allocation of subsidiaries to each segment.
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

27

TOPICS③

Outsourcing
Clients have been increasingly considering and introducing outsourced
development, and the market scale has been growing.
Our subsidiaries engaging in special expertise fields achieved good performance.
Sales
Sales

2014/3(forecast)

2013/3billion yen

2013/3
2013/3billion yen

YoY
2％
.
7
1
1

2014/3
2014/3Focused on expanding special fields
Build up solid bases for the growth ofand new job categories. PV Next Co., Ltd., Outsourcing Segment.
a business entity with a focus on
Create new demands in growthproviding Pharmacovigilance Services,
industries and improve demands inwas established in May 2012. Tempstaff
specialized industries.
Life Support Co., Ltd. was established in
November 2012,
Improve cost effectiveness and quality
Launch of more than 100 new projects
have served as new proposals on HR
portfolio to clients.

indices.

*We renamed the former R&D Outsourcing Segment to IT & Engineering Segment from the Fiscal Year ending March 2014. Simultaneously, we changed the allocation of subsidiaries to each segment.
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

28

TOPICS④

Other Businesses
Outplacement Support Business has constantly received new orders
with a certain size.

Sales
Sales

2014/3(forecast)

2013/3billion yen

2013/3
2013/3billion yen

YoY
6%
111.

2014/3
2014/3[Outplacement Support Business]
We will secure competitive advantages
Both scale and quantity of new demands have been in outplacement support, education,
studying overseas and nursing care
growing. Enhanced designing services forservices.
institutional arrangements regarding optimal
personnel allocation.
We will address approaches toreinforce growth expansion.
[Complex facility for Orphans and the Elderly]
In April 2012, we established a facility that takes
care of both children and old people, which
consists of the group home “Ivy Home Futaba” andthe nursery school “Oimachi Nozomi Hoikuen.”
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

29

Media and Career(Intelligence Group)Tokyo Stock Exchange 1st Section （2181）

Media and Career (Intelligence Group)Media and Career(Intelligence Group)
2014/3
2014/3Update “an” services continuously

Sales
Sales
2014/3(forecast)billion yen

Multiply and diversify “DODA” services to expand coverage for employment
activities
Integrate outsourced system development services with maintenanceoutsourcing operations. Encourage cross-selling leveraging assets held bycustomers
Unify several fields including new graduates, schools, public works andemployment support of disabled people into “Employment Development
Division.” We will provide thorough training and development programs so as
to secure extended and appropriate matching.
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

31
31

Disclaimer

The statements concerning the Company’s futurebusiness performances in this material such as earnings
forecasts are based on information available as of May
23, 2013 to and certain assumptions deemed to bereasonable by the Company, and do not mean that we
promise to achieve these figures. Actual earnings may
differ materially from the statements due to a variety offactors.

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

32

Reference MaterialTokyo Stock Exchange 1st Section （2181）

＜Reference＞ Company Outline* As of March 31, 2013

Company Name

Temp Holdings Co., Ltd.

Capital2,000 million yen

CEOPresident and Chairman: Yoshiko Shinohara

Established

October 1, 2008

Business Outline

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

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

Directors

Chairman and President : Yoshiko Shinohara
Representative Executive Vice-President : Mikihiko Hibino
Representative 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 SectionGroup
Companies

54 consolidated subsidiaries, 1 associated company

Employees

5,970

Service Network

268 domestic and 27 overseas* U.S.A., China, Hong Kong, Taiwan, Seoul, Singapore, Indonesia, Vietnam

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

Full-time Auditor / Koji Shimazaki
Auditor / Kaoru Arai
Auditor / Ryosuke Tamakoshi

34

＜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.
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

35

＜Reference＞ Temp Group (1)* As of April 30, 2013

Temporary Staffing and Recruitment Services(Localized Operating Companies)(Specialized Operating Companies)

Tempstaff

TEMPSTAFF CROSS

Tempstaff Fukuoka

Integrated HR service provider
Integrated HR service provider in
the Tokai region
Kyushu region

Tempstaff Familie

Nagano/Yamanashi prefecture

Tempstaff Media

Focuses on providing HR services to the
Kobe Steel Group
Focuses on providing HR services
primarily to the Nikkei newspaper group

Tempstaff Grow

Gunma prefecture

TempbrosMature age/manufacturing/assembly

Personal

Placement of sales staff

Support-A

Automotive sales and sales
campaign

Tempstaff Plus

specialized workers in the facilities
management segment, late-night office
workers

Tempstaff Creative

Creative related

Tempstaff Life Advisory

Insurance sales support

Tempstaff Frontier
Thanks Temp

Specializing in physically challenged
candidates
Employment support for the physicallychallenged

Tempstaff Integration

Temp Group shared services

Tempstaff People(Overseas branches)
TS Consulting International
Tempstaff Shanghai

U.S.A.
PRC/Shanghai

Tempstaff Guangzhou

PRC/Guangzhou

TS Kelly Workforce Solutions(Tempstaff Hong Kong)

Hong Kong

Tempstaff Taiwan

TaiwanTempstaff Korea

Korea

Tempstaff Singapore

Singapore

Tempstaff Indonesia

Indonesia

TEMP VIETNAM

Vietnam

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

Kobelco Personnel

Focusing on Fuji Xerox and relatedcompanies

36

＜Reference＞ Temp Group (2)* As of April 30, 2013

IT & Engineering(Domestic Japan) JAPAN TECSEED

R&D outsourcing support

Tempstaff Technologies

IT sector HR services / outsourcing

TOYO SOFTWARE ENGINEERING

Software outsourcing development

AVC Technology

Design and development of software and hardware for digitalaudio visual products(Overseas) AVC Multimedia Software

Development of software and systems for digital audio visual
products

GTECHK

Offshore system developing services

TECSEED SHANGHAITechnical consulting in automobile design and manufacturing

Outsourcing(Domestic Japan) Tempstaff Data

Data processing outsourcing

Japan IDEX

BPO

Tempstaff Life Support

Supporting of insurance advice for firms/health providers & medical
examination services

HOWCOMIT support :Help Desks/Service Desks

Tempstaff Sales Support

Sales functions (sector focus) outsourcing

Tempstaff WishChild care

PV NEXT

Pharmacovigilance (PV) information management tasks(Overseas) Suzhou Tempstaff Data
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

PRC based data entry centre37

＜Reference＞ Temp Group (3)* As of April 30, 2013Media and Career (Intelligence Group)(Domestic Japan) Intelligence Holdings

Holdings company

Intelligence

Media, Placement, Temporary staffing, Outsourcing

Intelligence Executive Search

HeadhuntingIntelligence Business Solutions

ICT outsourcing, system development

Intelligence Benefics

Specializing in physically challenged candidatesIntelligence HITO Research InstituteResearch, HR services

CREDENCE

Specializing in fashion business

BPO solutions

Sales/HR outsourcing

ECpartners Corporation

EC outsourcing(Overseas) Intelligence Asia

Singapore

Staff Management Consultancy

Hong Kong/Holdings Company

Intelligence SMC Consulting

Hong KongIntelligence Hong Kong

Hong KongIntelligence Anchor Consulting (Shenzhen)

PRC/Shenzhen

Intelligence (Shenzhen)

PRC/Shenzhen

Intelligence Anchor Consulting (Shanghai)

PRC/ShanghaiIntelligence China

PRC/Shanghai

英創人力資源顧問（上海）PRC/ShanghaiIntelligence (Dalian)

PRC/Dalian

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

38

＜Reference＞ Temp Group (4)* As of April 30, 2013

Other Businesses(Domestic Japan)(Overseas)

Tempstaff Career Consulting

Outplacement/training/HR Consulting

Tempstaff Learning

Employee training/ Language training, qualification acquisition support

Tempstaff Welfare

Home- based nursing care/locum care & visiting career service
providerTemp Research InstituteOverseas study support service provider (ICC)

Temp International

Management support of overseas entities

e-Staffing

System development & operations

COSMO USA

Overseas study support in U.S.A.

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

39

＜Reference＞ Temp Group History （1）

2009

March

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

NovemberAcquisition of JAPAN TECSEED CO., LTD. (R&D outsourcing business) shares and becomes a consolidated subsidiarycompany.

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 a consolidated subsidiarycompany.

2011

January

Acquisition of TOYO SOFTWARE ENGINEERING CO., LTD. (software development outsourcer) shares and becomes aconsolidated 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.
Nikkei Staff Co., Ltd. (primary provider of HR services to the Nikkei newspaper group) share acquisition. "Nikkei Staff Co.,Ltd." name changed to Tempstaff Media Co., Ltd. upon consolidation.

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

40

＜Reference＞ Temp Group History （2）

2012

May

PV Next Co., Ltd. specializes in outsourcing of pharmacovigilance (PV) information management tasks and is a
consolidated company established as a joint venture with IUK Inc.

AugustTECSEED SHANGHAI CO., LTD. established in Shanghai, PRC, to handle auto design development tasks.

November

JV between Asahi Kasei Life Support Corp. (specific health guidance tasks) and, Tempstaff Medical Co., Ltd. to create aconsolidated subsidiary.
Simultaneously, Tempstaff Medical Co., Ltd. changes its trading name to Tempstaff Life Support Co., Ltd.
Tempstaff Hong Kong Ltd. jointly funds a JV with Kelly Services, Inc. to expand the business in the North Asia region(China, Hong Kong, Taiwan, Korea) and, changes its trading name to TS Kelly Workforce Solutions Limited.

2013

December

TEMP VIETNAM CO., LTD. established as an HR consulting business in Vietnam.

MarchAcquired shares of Panasonic AVC Technology Co., Ltd. (designs and develops software and hardware for digital audio
visual products)
and Panasonic AVC Multimedia Software Co., Ltd. (develops software and systems for digital audio visual products),
converted into consolidated subsidiaries.
and simultaneously changed the trading names to: AVC Technology Co., Ltd. and, AVC Multimedia Software Co., Ltd.

April

Shares of media/career firm Intelligence Holdings, Ltd. acquired and, becomes a consolidated subsidiary.

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

41

＜Reference＞ Transition of Consolidated Business Results*Rounded down. (Units: million yen, %)2009/3

2010/3

2011/3

2012/3

2014/3(forecast)

2013/3245,062

224,613225,273

233,195

247,232

365,000

14.1

16.8

15.8

15.8

16.0

－

8,908

6,343

5,748

8,170

9,848

18,500

3.6

2.8

2.6

3.5

4.0

5.1

9,245

6,734

6,231

8,434

10,11918,300

3.8

3.0

2.8

3.6

4.1

5.0

4,076

2,950

2,410

3,482

5,888

9,000

Net Profit Ratio

1.7

1.3

1.1

1.5

2.4

2.5

Return on Equity (ROE)

8.9

6.2

5.2

7.1

10.5

－

Total Assets

73,98275,912

79,33686,52997,592－

Net Assets

50,86048,31750,32052,26664,455－Equity Ratio

67.0

60.4

60.2

58.7

63.4

－

Sales
Gross Margin Ratio
Operating Income
Operating Income Ratio
Ordinary Income
Ordinary Income Ratio
Net Income

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

42

＜Reference＞ Global positioning
Mapping by sales and operating income ratio
Job Board

JobStreet(39.8%)

40%
12%

SEEK(41.7%)
Dice Holdings(30.1%)

～
～
10%

Executive Search
Korn/Ferry International: Americas: EMEA: APACHigh Profit & Large Scale

Robert Half International

operating income ratio (%)

Meitec8%

On Assignment
Professional Staffing

AMN Healthcare Services Michael Page
Brunel International
Adcorp Holdings
SthreeSKILLED Group
Heidrick &Monster TrueBlue
Struggles
Groupe
CDI
Synergie
Proffice
CRIT
Matchtech
HarveyImpellam
Robert Chandler
Nash
Macleod
Walters
Pasona Group
Human Group
Holdings

6%
5%

4%
2%
0%

(2014/3 forecast)Global Top 3

Adecco(25,259)

Hays

Manpower(19,644)
Randstad(21,017)

Kelly Services

Hudson Global

-2%
-4%

Cross Country
Healthcare

Kforce～～USG People

-6%
0

1,000

2,000

3,000

4,000

5,000

20,0006,000

Sales (oku yen=0.1 billion)*Source: Each company official announcement data
Currency: USD=95 yen, AUD=99 yen, MYR=31 yen, GBP=145 yen, EUR=123 yen, SEK=15 yen, ZAR=10 yen
Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

43

＜Reference＞ Changes in the Number of New Registrants (Consolidated)
Number of New Registrants(*) 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.

(person)50,00050,00045,00045,00040,00040,00035,00035,00030,00030,00025,00025,00020,00020,00015,00015,0002009/3

10,00010,0005,000
5,000

2nd Half
Registrants
Change (%)
84,970＋2.8%

2010/363,869△24.8%

116,434△32.6%

2011/347,468△25.7%

88,360△24.1%

2012/344,078△7.1%

89,271＋1.0%

2013/350,863＋15.4％％

100,403＋12.5％％00
1Q
1Q

Full Year
Registrants
Change (%)
172,744
＋1.5%

2Q
2Q 3Q
3Q
2009/3（※）
（※）

4Q
4Q

1Q
1Q

Copyright (C) since 2013 Temp Holdings Co., Ltd. All rights reserved.

2Q
2Q 3Q
3Q
2010/3

4Q
4Q

1Q
1Q

2Q
2Q 3Q
3Q
2011/3

4Q
4Q

1Q
1Q

2Q
2Q 3Q
3Q
2012/3

4Q
4Q

1Q
1Q

2Q
2Q

3Q
3Q

4Q
4Q

2013/344