To Shareholders and InvestorsPERSOL REPORTBusiness report for the firstsix-month period of the fiscal year
ending March 2018
April 1, 2017 to September 30, 2017

PERSOL HOLDINGS CO., LTD.
(Securities code: 2181)

Work, andSmile

Message from Management

Create social
infrastructure for people
and organizations thatcatalyze growthand innovation.
Job creation

Management
Philosophy
Individual
growthContributing
to societyGroup’s vision
PROFILE

Masamichi Mizuta
President, Chief Executive Officer,
and Representative Director

1

Joined Tempstaff Co., Ltd. (presently, PERSOL TEMPSTAFF CO., LTD.) in 1988. Became Head of theSales Headquarters and Director in 1995, Head of the East Japan Sales Headquarters and Executive
Managing Director in 2006, Executive Vice President in 2010, and Executive Vice President andRepresentative Director in 2012. He has been in charge of the sales division throughout his career.
In 2013, he assumed the post of President and Representative Director. He has also served as
Chairman of the Japan Staffing Services Association, and Chairman of the Japan Association of
Human Resources Services Industry. His motto is “Little Things Make a Big Difference.”

Create social infrastructure forpeople and organizations thatcatalyze growth and innovation.

Overview of the first six-month period of FY 2017

Amid the continued gradual recovery observed in the Japanese economy, the employment situation
remained favorable, which was reflected in the human resources industry in the form of expanded
demand. Under these circumstances, the PERSOL Group conducted aggressive businessdevelopment while investing in measures to increase awareness of our new “PERSOL” brand as wellas unify the PERSOL Group. As a result, net sales for the first six-month period of FY 2017 reached arecord high of 324.7 billion yen in contrast to operating income remaining at 16.0 billion yen.

Financial Highlights(Consolidated business results for the firstsix-month period ending March 2018)

Net sales recorded a historically high performance
while operating income decreased
year on year due to aggressive investments.

Toward the future

On July 1, 2017, we marked a new start under the corporate name of PERSOL HOLDINGS CO., LTD.
with the approval of our shareholders.
In recent years, the environment surrounding the employment situation has been drasticallychanging as technology advances. While many companies have begun to adopt teleworking systems
such as work from home, mobile work and work at satellite offices, it is anticipated that several job
sectors will become redundant due to the introduction of artificial intelligence and robots in the
future. Considering that the image of human resources needed by companies will constantly change,
the supply-demand mismatch in employment is expected to be greater than ever under theconventional lifetime employment system. We believe that a worker’s happiness lies indemonstrating capabilities in a place where such person is really needed, and we pursue theobjective of “minimizing employment mismatches” to realize such ideal.
On the other hand, in order to revitalize employment amid a shrinking working-age population
going forward, job opportunities suited to individuals who want to work must be provided. By
pursuing “the realization of diversified working styles,” we will increase such opportunities in whichpeople with diverse lifestyles can work.
We are aware that in order to “minimize employment mismatches” and “realize diversified
working styles,” it is indispensable for us to demonstrate the comprehensive capabilities of thePERSOL Group through collaborations among the businesses belonging to the Group. Through ourefforts to improve recognition of the corporate group as a unified entity by inserting the name
“PERSOL” into the name of each Group company, we will work on solving every kind of challenge
associated with labor and employment by creating further group synergies.

Aiming to realize “social infrastructure that catalyzes growth andinnovation” in the Asia-Pacific region

Last year, we expanded a joint business established with Kelly Services, Inc. to all areas within the
APAC region. To further reinforce our business in the same region, we decided in July 2017 toacquire all outstanding shares in Programmed Maintenance Services Limited, an Australian humanresources and maintenance services company. Our objective is to further improve our presence in
the APAC region by obtaining a more advantageous position in the Australian market, which
accounts for a large share of the APAC region, and contribute to the development of the labormarket in this region.

Net sales

Operating income

324.7 billion yen 16.0 billion yen
UP 17.3% Y-O-Y
DOWN 3.9% Y-O-Y
Profit attributable toowners of parent

9.2 billion yen
DOWN 6.5% Y-O-YInterim dividend
per share

9 yen

Operating income (Billion yen)
33.4

36.0

28.0
23.4
677.3

18.5
Net sales (Billion yen)
362.4

FY ended
March
2014

591.9
517.5

401.0

FY ended
March
2015

FY ended
March
2016

FY ended
March
2017

FY ending
March
2018
(Forecast)2

Topics

Overseas strategy of the PERSOL Group
Business development outside Japan

Regarding the acquisition of Programmed Maintenance Services
Overview of Programmed Maintenance Services
Name of company:
Programmed Maintenance Services Limited
Head office: Australia,
Western Australia

Breakdown of net sales for the
fiscal year ended March 2017

Maintenance

Trend of overseas sales

Regions(Billion yen)
October 2017:
Acquisition of Programmed

Provision of gigantic-scaled maintenance and facilities
management services
In particular, strong presence in the infrastructure businessby public-private partnership, manufacturing and mining,
and industrial markets.

China
South Korea

July 2016:
Expansion of JV* with Kelly Services

TaiwanIndia
January 2016:
Acquisition of First Alliances

Number of employees:

25,003 in total (as of June 2017)49

AUD% 2,691 million

51%

October 2015:
Acquisition of Capita

ThailandPrincipal businesses:
Staffing and maintenance businesses

Acquired Programmed, one of Australia’s leading providers ofhuman resources and maintenance services
The PERSOL Group has promoted one of its priority measures for businessexpansion in not only Japan but also in the APAC region with the aim of realizing its
vision to “Create social infrastructure for people and organizations that catalyzes
growth and innovation.” In July 2017, we decided to acquire all outstanding sharesof Programmed Maintenance Services Limited (“Programmed”), a leading providerof human resources and maintenance services operating mostly in Australia.
Programmed was founded as a paint service company in 1951, subsequently

3

Vietnam
Malaysia

Singapore

37.1

Indonesia

1,991 indefinite-term employees
2,964 fixed-term employees (working at clients’ sites)
20,048 dispatched employees
Number of business bases:
More than 100 mostly in Australia and New ZealandHong Kong

Australia
Provision of temporary staffing andrecruitment support services forwide-ranging businesses in Australia and
New Zealand.

expanding into maintenance of facilities and equipment. Currently, Programmed
operates in two major segments: staffing services with a focus on temporary andpermanent placement, and maintenance services mostly in the form of facility
management of commercial sites and schools, painting and grounds management,
and maintenance of mine facilities. As a result of this stock acquisition, the PERSOLGroup will become one of the largest comprehensive human resource services
groups in the APAC region, capable of developing businesses with robust businessfoundations in Australia in terms of scale and business performance.

FY ended
March
2014

FY ended
March
2015

FY ended
March
2016

FY ended
March
2017

FY ending
March
2018

New Zealand* JV stands for Joint Venture.

Business development outside JapanThe overseas business of the PERSOL Group dates back to 1993, when the Hong
Kong Branch was opened as the first overseas business base, followed by theestablishment of business bases in China, South Korea and other countries. In 2010,
the PERSOL Group commenced a strategic business alliance with Kelly Services,
Inc., a leading human resource services company in the United States. In 2012, a
joint venture was launched with Kelly Services in northern Asia and has expanded
across all areas of APAC since 2016. Furthermore, the joint venture expandedbusiness by acquiring shares in human resource services companies in Singapore

and Vietnam and has become one of the main players in the areas of recruitment
support services, temporary staffing, and personnel and labor management
consulting in the human resource services market in the rapidly growing region.
The APAC is a promising region with new demand and market growth
expected. The PERSOL Group pursues “social infrastructure that catalyzes growthand innovation” for APAC by enhancing its business foundation and increasing its
presence through the improvement of social infrastructure and establishment ofsystems in preparation for future corporate development.

4

TopicsPERSOL Group’s efforts for work style reform
HITO REPORT published by PERSOL RESEARCH
AND CONSULTING CO., LTD.

PERSOL FACILITY MANAGEMENT CO., LTD.
was established.

Promotes changes in work styles and workplaces ofcompanies by utilizing the know-how accumulated
through the facility management function within
the PERSOL Group.

Presently, labor shortages have become a major social problem. PERSOLRESEARCH AND CONSULTING CO., LTD., which is the comprehensive research
institute of the PERSOL Group, estimates that Japan will face a shortage of 5.83
million workers in 2025 (*1). According to its analysis, the key solution depends on
not only the improvement of productivity but also on how the labor force
participation rate of women and older workers can be lifted. The same institution
has verified the effects of job creation focusing on satellite offices (*2) as one
measure for promoting work. Based on this study, the PERSOL Group has begun
to implement measures for the realization of diverse and flexible work styles fromvarious points of view.
As part of the said measures, in the summer of 2017, we spun off our facility
section as an independent company, which started a consulting business using

5

the facility management expertise cultivated within the Group as well as anadvisory services business to propose new work styles. Meanwhile, we are
striving to create new job opportunities beyond the scale of enterprises throughpositive collaborations with the Chiba Chamber of Commerce and Industry andlocal authorities including Tokyo’s Bunkyo Ward, Higashimurayama City, andNagoya City in Aichi Prefecture by securing human resources for small- andmedium-sized enterprises in the relevant regions, providing employment support
for younger job seekers and matching human resources.

The PERSOL Group works on solving labor- and employment-related
challenges through its business.
Employment promotion of persons with disabilities:
Cloud-type business card management service

We provide a cloud-type business card management service that increases
employment opportunities for persons with disabilities. By introducing ourinternally developed business card management system, we created tasks that
could be handled by persons with disabilities such as entering business card
data. In order for persons with various types of disabilities to perform thistask, we provide solutions to challenges concerning the employment of
persons with disabilities by companies by establishing work flow charts andoffering consulting services on training management.

“mama VOLUN”: Career support service
for working mothers on childcare leave

We provide working mothers on childcare leave withinformation concerning voluntary work at venturebusinesses and non-profit organizations. Our support
service helps mothers to not only gain a sense of what theirlife will look like when they start balancing work andchildcare upon their return to work, but also helps alleviate
feelings of isolation sometimes associated with childcare
leave and dispels anxiety over future career formation sothat they can return to work with confidence.

Participated in the operation of the Tokyo Metropolitan
Government’s “Telework Dissemination and Promotion
Initiatives for FY 2017”
The operation of the “Tokyo Telework Promotion Center” established jointly by the
Tokyo Metropolitan Government and the national government has been entrusted to
the PERSOL Group. We will contribute to the promotion of “work style reform” byoffering one-stop services, including information provision and consulting services via
specialized concierges, to small- and medium-sized enterprises considering the
introduction of a teleworking system to increase work style flexibility.

*1: “HITO REPORT vol. 1” published in November 2016.
*2: “HITO REPORT vol. 2” published in August 2017.

6

Overview of the Consolidated Business Results and Sales by Business Segment

Net Sales
Amid the recovery trend of the Japanese
economy, the human resource services market
as a whole showed a growth trend withsignificant demand on the back of the labor
shortage that continued from the previous
fiscal year. Driven by the strong market
environment, the PERSOL Group witnessed
good results in the temporary staffing
business, our core business, in which thenumber of dispatched workers remained at ahigh level, and the recruitment support
business, in which the number of persons
achieving a career change increased
significantly. Furthermore, as a result of ourefforts to expand business through M&As
outside Japan, net sales for the first six-month
period under review grew 17.3% year on year
to 324.7 billion yen.

UP 17.3%(Billion yen)

800.0

677.3

(Forecast)

591.9

600.0

400.0

276.7

324.7

Full-yearFirst
six-month
period200.0

0FY ended
March
2017

FY ending
March
2018

Recruiting

Overseas

ITO

Engineering

segment

segment

segment

segment

segment

Demand continued to show robust growthfrom the previous fiscal year, reflecting afurther improvement in employment-related
indices accompanied by a chronic labor
shortage. In response to the demand, we
implemented a variety of measures for
supplying personnel, which contributed tosignificant growth in net sales. As for profit,
operating income reached 10.6 billion yen,mostly reflecting the increase in net sales
despite the increases in labor costs incurred in
the business expansion and the burden of
expenses borne with respect to social
insurance premiums for temporary workers andemployees of the Group companies.

Net sales increased significantly
as a result of measures forincreasing personnel for the
purpose of enhancing the sales
structure in response to strong
demand. As for profit, operating
income was 4.7 billion yen,reflecting the increase in laborcosts, promotion expenses, etc.
incurred in the businessexpansion.

Net sales increased
significantly, reflecting
favorable effects of thebusiness expansion
accompanied by a widening of
the business scope of the joint
venture with Kelly Services, Inc.
As for profits, operating loss of
0.2 billion yen was recorded
due to system construction
seeking the medium-term
growth of the business.

Net sales increased steadily due
to robust demand forsystem-related services by our
corporate customers as well as
SI-related services, anddevelopment of in-house systems
in the PERSOL Group, etc. As forprofit, operating income remained
at 0.4 billion yen due to theincreases in costs for improvementof conditions aimed at restraining
retirement and new employment
of engineers, and due to theincrease in expenses incurredassociated with the increase infloor area and improvement of theworkplace environment at the
Head Office.

In the first six-month period
under review, net sales grewsteadily, reflecting continued
strong demand for personnel
mostly from the electronic device
and automobile industries, etc.
As for profit, operating income
fell to 0.7 billion yen due to atemporary increase in costs
triggered by the occurrence of
unprofitable projects.

UP 9.8%Net Sales(Billion yen)(Billion yen)

214.5

33.4

(Forecast)

FY ended
March
2017

Full-year

30.0

Operating
Income

235.4

16.6

16.0

First
six-month
period

UP 7.5%31.9

Full-year

20.7

First
six-month
periodFY ended
March
2017

FY ending
March
2018

9.9

FY ended
March
2017

(Forecast)

10.6(Billion yen)

35.3

Full-yearFirst
six-month
period4.7

FY ending
March
2018

37.1

Full-year

9.5

4.7

FY ended
March
2017

FY ending
March
2018

31.7

29.4

12.8

13.5

FY ended
March
2017

FY ending
March
2018

First
six-month
periodFY ending
March
2018

Operating
Income(Billion yen)(Billion yen)

FY ended
March
2017

FY ending
March
2018

-0.4
-0.8

-0.2
-0.6

(Forecast)

DOWN 29.8%

First
six-month
period28.1

26.6(Forecast)

12.5

13.0

FY ended
March
2017

FY ending
March
2018

Full-yearFirst
six-month
periodOperating
IncomeDOWN 29.5%(Billion yen)

2.4

Full-yearFirst
six-month
period

UP 4.1%(Billion yen)

(Forecast)

Operating DOWN 32.3%
Income(Forecast)

Net Sales

26.6

Full-year

7.4
FY ended
March
2017

Full-year

FY ended
March
2017

UP 5.3%(Billion yen)

63.1

FY ending
March
2018

DOWN 0.7%
9.3

Net Sales(Forecast)First
six-month
periodOperating
Income22.7(Billion yen)

UP 329.2%(Billion yen)

66.1

First
six-month
periodFY ending
March
2018

10.0

0

78.1

Net Sales(Forecast)(Forecast)

36.0

40.0

20.0

UP 10.4%(Billion yen)

Full-yearFirst
six-month
periodDOWN 3.9%

Net Sales

485.4

440.6

Full-year

Operating Income
While net sales principally in temporary
staffing/BPO, our core businesses, andrecruiting segments increased, operating
income decreased 3.9% year on year to
16.0 billion yen, which was attributable to
growth investments in each segment toward
aggressive business promotion as well as
investments for the unification of the Group
including boosting the profile of our new
brand, “PERSOL.”

Temporary Staffing/BPO

2.0
0.6
FY ended
March
2017

2.2

(Forecast)

Full-year

0.4
FY ending
March
2018

First
six-month
period1.9
1.0

FY ended
March
2017

(Forecast)

0.7
FY ending
March
2018

* “Overseas segment” was newly added in the fiscal
years ending March 2018 and thereafter.

7

8

Net Profit, Dividends and Balance Sheet

Profit Attributable to
Owners of Parent
Profit attributable to owners of the parent company for the
first six-month period of the fiscal year ending March 2018
was 9.2 billion yen, a year-on-year decrease of 6.5%, due tothe drop in operating income.
DOWN(Billion yen)

Balance Sheet

Company Profile(Billion yen)

POINT 1
Increases in cash anddeposits, and decreases
in notes and accounts
receivable-trade

6.5%

30.0

Information

March 31,2017

September
30, 2017

ChangeAssets

268.3

276.4

8.0

1 Current assets

165.2

174.0

8.7

Cash and deposits

22.2(Forecast)

17.8

20.0

9.8

10.0

0

First
six-month
period9.2

FY ended
March
2017

Full-yearFirst
six-month
periodYear-end

8.00
9.00

POINT 49.00

(Forecast)

102.4

(0.7)

Liabilities

114.5

115.5

0.9

3 Current liabilities

87.9

90.7

2.8

Current portionof long-termloans payable
4 Non-current liabilities

4.6● Authorized number of shares ............. 720,000,000

Established:

October 1, 2008

● Total number of shares issued ........... 236,677,955

Head Office:2-1-1 Yoyogi, Shibuya-ku,
Tokyo, Japan● Number of shareholders ............................... 8,812

Type of Business:

Management planning,
administration andoperations related tosubsidiary and groupcompanies that handle
temporary staffing andplacement services

Capital:17,467 million yen

Members of the Board (As of September 30, 2017)
Chairman Emeritus

Yoshiko Shinohara

Representative Director,
President and CEO

Masamichi Mizuta

Director, Deputy President,
and COO

Hirotoshi Takahashi

Director, Senior
Executive Officer

Takao Wada

Director, Executive Officer

Toshihiro Ozawa

Director, Executive Officer

Kiyoshi Seki

External Director

Peter W. Quigley

(1.8)

20.4

18.1

(2.3)

153.8

160.9

7.0

Director

Hiroshi Shimazaki

External Director

Ryosuke Tamakoshi

Shareholders’ equity

139.1

145.7

6.6

External Director

Naoshige Shindo

Capital stock

17.4

17.4

0

Capital surplus

20.1

20.1

0

Retained earnings
Non-controllinginterests

102.4

109.5

7.1

14.6

15.1

0.4

Please visit our website for more detailed IR information.
The website of PERSOL HOLDINGS: https://www.persol-group.co.jp/

9

(0.4)

(As of September 30, 2017)

PERSOL HOLDINGS CO., LTD.

24.7

Long-term loans
payable55.0

Stock Information

Company Name:

26.6

Net assets

Increases due togrowth of profits

103.1

(3.2)

Decreases in long-termloans payable

POINT 5

11.8

70.3

FY endingMarch 2018

9.00

Trademark andgoodwill

81.3

73.5

2

Increases in other liabilities

In consideration of the comprehensive performance having
been in line with our plan, we have decided to pay an interim
dividend for the first six-month period of the fiscal year underreview as initially planned of 9 yen per share.
FY ended
March 2017

Decreases due toamortization and foreign
currency translation

POINT 3

FY ending
March
2018

Dividend per Share(Yen)

Non-current assets
POINT 2

69.4

(As of September 30, 2017)

External Director

Naohiro Nishiguchi

Executive Officer

Daisuke Hayashi

Executive Officer

Hirotaka Mino

Executive Officer

Taro Mineo

Executive Officer

Takayuki Yamazaki

Executive Officer

Toshihito Nagai

Executive Officer

Mikio Miyamura

Executive Officer

Toshiyuki Takakura

Executive Officer

Shinji Masaki

Executive Officer

Kazunari Kimura

Executive Officer

Yu Senoo● Major shareholders

Name of shareholder

Yoshiko Shinohara
The Yoshiko Shinohara
Memorial Foundation

Distribution of Shareholders(As of September 30, 2017)

Treasury stock

Financial institutions(Shares)

57,782,572 (24.41%）

2,816,968 (1.19%)

Financial
instrumentbusiness
operators

Individuals,
others
51,772,584(21.87%)

Shareholding
Numberratio (%)
of shares held

26,331,600

11.25

1,888,036(0.80%)

Foreigncompanies,
etc.

Other
companies,etc.

91,172,227(38.52%)15,800,000

31,245,568(13.20%)6.75* The shareholding ratio (%) is rounded off to the second decimal place.

Japan Trustee Services
Bank, Ltd. (Trust Account)

12,880,400

5.50

The Master Trust Bank ofJapan, Ltd. (Trust Account)

12,702,700

5.43

Kelly Services Japan, Inc.

Yoshimi Shinohara
The Bank ofTokyo-Mitsubishi UFJ, Ltd.

Shareholder Information

9,106,800

5,438,400

3,696,000

3.89

2.32

1.58

Japan Trustee Services
Bank, Ltd.
(Trust Account No. 5)

3,329,700

1.42

Taro Yatomi

3,326,400

1.42

National Mutual Insurance
Federation of Agricultural
Cooperatives

3,188,100

1.36

Business year

From April 1 to March 31 of the following year

Annual general meetingof shareholders

Late June

Record dates

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

Administrator ofshareholders’ register
Special accountmanagement institution

Mitsubishi UFJ Trust and Banking Corporation

Contact

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
1-1 Nikko-cho, Fuchu City, Tokyo 183-0044, JAPAN
Telephone; 0120-232-711 (Toll free available only in Japan)
URL http://www.tr.mufg.jp/daikou/

Stock listing

Tokyo Stock Exchange, First Section

Public notices

Electronic public notice
The website of the public notice:https://www.persol-group.co.jp/(If electric public notices are not possible due toaccidents or other unavoidable circumstances,announcements will appear in the Nihon Keizai
Shimbun newspaper.)* The shareholding ratio is calculated based on the number of shares(233,860,987) obtained by deducting the number of shares in thetreasury stock from the total number of shares outstanding.
* The shareholding ratio (%) is rounded down to the second decimal place.

10

Procedures for Shares
Shares registered in the accounts of securities companies
Contact

Procedures, inquiries, etc.
Inquiries about the sending and returning of mails
Inquiries about dividends after the expiration of the payment period
General inquiries about administrative work relating to shares

Administratorof shareholders’registerProcedures and inquiries other than those stated above, such aschanges in address, name, etc.

Please contact your securities company.

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
1-1 Nikko-cho, Fuchu City, Tokyo 183-0044, JAPAN
Telephone: 0120-232-711 (Toll free available only in Japan)

Securities registered in the special accountProcedures, inquiries, etc.

Contact

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

Special accountmanagement
institution

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

Administratorof shareholders’register

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
1-1 Nikko-cho, Fuchu City, Tokyo 183-0044, JAPAN
Telephone: 0120-232-711 (Toll free available only in Japan)
Method for requesting procedural documents
Request using the automatic answering phone system:
0120-244-479 (Toll free available only in Japan)
Download documents online: http://www.tr.mufg.jp/daikou/(*) Shareholders holding shares registered in the special account may not choose the method of receiving dividends in proportion to the number of shares held.

PERSOL HOLDINGS was selected as a component of the JPX-Nikkei Index 400 in August 2014.
What is the JPX-Nikkei
Index 400?

It is a new stock price index composed of stock of companies that meet the requirements of global investment standards,
including the effective use of capital, an investor-conscious management viewpoint, etc., which was established with theaim of promoting the attractiveness of Japanese companies to both investors at home and abroad.

PERSOL HOLDINGS CO., LTD.
Shinjuku Maynds Tower, 2-1-1 Yoyogi, Shibuya-ku, Tokyo, JAPAN Telephone: +81-3-3375-2220* 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 printed product uses FSC®-certified paper andvegetable-oil-based ink.