To Shareholders and Investors

Business Report
Interim report for the fiscal year ending March 2012

April 1, 2011 – September 30, 2011

(Securities code: 2181 )Top Message

Revitalizing
people, work,
and Japan
fiscallights of theInterim highMarch 2012
year ending
Both sales and profits increased year on year.
The earnings forecast for the full fiscal year was raised.
from a year earlier

Sales: 113.2 billion yen

Yoshiko Shinohara, Chairman & President
Sets up Tempstaff Co., Ltd. in 1973; Ranked among the “50
Most Powerful Women in Business: International” by the US
magazine “Fortune” for the 12th consecutive year since 2000;
Invited to “ADVANCE WOMEN’S LEADERSHIP SUMMIT” inAustralia as one of the 50 FOR THE FUTURE in March 2011.

UP 1.3%

Ordinary Income:UP 17.3%
3.6 billion yen
Net Income: 1.2 billion yen UP 48.7%
Interim Dividend per Share: 6 yen
1Temp Holdings
ement Strategy
Mid-term ManagStrengthening localized services
Regional companies will provide communitybased, finely tuned services. We will work to
expand our market share in each region.

Developing business in specialized
fields and new job categories
To meet sophisticated and diversified needs, wewill expand new job categories, services andnetworks.

Expanding our presence in the global
marketWe will concentrate our resources on global
networks, particularly in Asia, to establish bases
and actively develop our businesses.

After the Great East Japan Earthquake, people worried that the economy would remain sluggish
over the long term. However, many companies were able to normalize operations quickly, and theirdemand for outside human resources continued to be steady.
Under such trends, consolidated sales were 113.2 billion yen for the interim period of the current
fiscal year ending March 2012, and ordinary income was 3.6 billion yen. With both figures
exceeding initial forecasts, we have revised our full-term earnings forecast.

“Trust” serving as driving force of M&A
During the interim period of the current fiscal year, the Outsourcing business, the key to our future
growth strategy, made enormous advances posting an annual sales increase of 33.5%. This wasachieved driven by M&A activities, which we conducted in the previous fiscal year. We madeHOWCOM Co., Ltd. and TOYO SOFTWARE ENGINEERING CO., LTD., both having highly
specialized know-how, into subsidiaries. Sharing their know-how throughout the entire group, we
will meet customer needs even more closely.
In the current fiscal year, we have already done two M&As with the aim of strengthening regionaland customer bases. Kobelco Personnel Co., Ltd. and Nikkei Staff Co., Ltd. (renamed to Tempstaff
Media Co., Ltd. on November 30), both boasting high brand power, became our subsidiaries.
Our success in so many M&As is an indication of trust in our management stance, of which weare proud. We will continue to actively implement M&A activities, aiming primarily to strengthen
regional and customer bases and to share know-how.

Providing job assistance to women

Aiming for a global HR service provider

Women are the key to eliminating labor
shortages in this aging society with fewer
children. We will offer overall support theiremployment by supporting child-raisingmothers, holding seminars and giving
counseling.

One of our mid-term management strategies is the active developmentof the global market. In the interim period of the current fiscal year, weestablished one more office in Hong Kong, and launched “Hospitality &Business Manner” training course in China. We will further enhance ourcompetitiveness in the Asian market.
Today, the business environment is constantly changing, and we firmly
believe that it will become increasingly important to utilize outside
personnel in order to effectively secure human resources while holding
employment risks down. The Temp Group will continue to support thegrowth of individuals and contribute to society through job creation.

Improving management efficiency
We have increased the efficiency of ouroperations by building a holding company
system and reduced costs radically. We will
firmly maintain solid earnings growth and asound financial position.

Creating Jobs

Corporatephilosophy
AddingValue to theIndividuals

Contributing
to Society2Overview of business results by segment
Overview of business results by segment

Sales (unit: million yen)Temporary Staffing and Recruitment Services(forecast)

Full year

2Q

DOWN

2011/3

2012/3

Nikkei Staff Co., Ltd.
renamed to Tempstaff Media Co., Ltd. on November 30.

Nikkei Staff Co., Ltd. provides humanresource services centering on clerical andspecialized jobs in the newspaper andpublishing fields. We will further cultivate
specialized fields by leveraging thesynergy from the combination of Nikkei
Staff, which has high brand power andoperational know-how, with the Temp
Group, which has strengths in sales andrecruitment.

Substantial sales increase achieved due to steady demand and improved
operational efficiency
With regard to this segment, despite being affected temporarily by the Great
East Japan Earthquake, demand for human resources picked up and remained
steady because companies normalized their operations quicker than had been
expected. In addition, the segment improved its operational efficiency byreinforcing the business operations structure, and further reduced selling,
general and administrative expenses. As a result, operating income increased
year on year to 2,845 million yen (*).

Kobelco Personnel Co., Ltd.
Kobelco Personnel Co., Ltd. has a goodtrack record in providing human resource
services for various companies,
educational institutions, and publicagencies, as well as for units of the Kobe
Steel, Ltd. Group. We will enhance ourregional strategy using the businessplatform which Kobelco Personnel has
established in the Kansai region.

Having made two human resource service
providers with outstanding characteristics into
subsidiaries; further promoting the management
strategy
In November, Temp Holdings converted two HR
providers, which boast high brand power, into its
subsidiaries through M&A. Capitalizing on this, theCompany will expand its business domains, while
implementing mid-term management strategies,
such as strengthening localized services andactive development of business in specialized
fields and new job categories.

Now, Move Toward the FullFull-Scale Growth Stage!
The business structure based on four business segments has gotten off the ground, and the Temp Group has begun to accelerate its efforts toward new growth.

3Overview of business results by segment

Sales (unit: million yen)

R&D Outsourcing(forecast)

Full year

Managerial efficiency improved; steady progress made

2Q

DOWN

2011/3

2012/3

JAPAN TECSEED- Having know-how abouthighly specialized support for
R&D of automobiles, aircraft,
software, etc.

Sales shrank temporarily, influenced by the effects of the Great East Japan
Earthquake. Later, however, demand recovered significantly. Both unit prices andthe number of working staff rose due to an increase in personnel through more
employment of new graduates and mid-career workers and rotation of assignments.
Managerial efficiency also improved through sale and reorganization ofsubsidiaries. We have laid the foundation for fiscal year 2012, planning to hire an
all-time high number of new graduate engineers. Through these efforts, we will aim
for a further growth.

EnhancementofrelationshipTemp Group- Nationwide business platform- Extensive service menus- Global structure
Synergy・Improving customer satisfaction through the provision of total human resource
services ranging from services for R&D to services for clerical jobs
・Building the base in Asian emerging countries in response to the shift
overseas of production by manufacturers’ R&D departments

Making the group subsidiary JAPANTECSEED CO., LTD. into a wholly-owned
subsidiary
In August, Temp Holdings converted JAPANTECSEED, which is engaged in the R&D
Outsourcing Business, into a wholly-owned
subsidiary by way of share exchange. We will
strive to enhance synergy effects by leveraging
the management resources of the entire Group.

4Overview of business results by segment
Overview of business results by segment

Outsourcing
Strong earnings posted led by a sharp operating income rise of 86.4% (*) year on year
The Outsourcing business segment, the core of growth strategy, expanded its domains substantiallythrough making HOWCOM and TOYO SOFTWARE ENGINEERING into subsidiaries and throughenhancing service lineups. The structure for providing services was further strengthened and know-how
was accumulated, resulting in making operations efficient. This led to a sharp increase in both sales andprofits.

Sales (unit: million yen)

So, This is Outsourcing!
(forecast)

What is outsourcing in the first place?
Full year

With regard to temporary staffing, human resources meeting corporate needs are provided.
As for outsourcing, however, the very operations are entrusted to a commissioned company.
In temporary staffing, the person responsible in the client company instructs dispatched staff
directly. In outsourcing, the commissioned company instructs staff.

2Q
UP

2011/3

2012/3

Outsourcing: why now?
Now, it is vital for companies to utilize outside human resources. However, with the needsof companies and job seekers diversifying, new services and solutions are needed. Against
this backdrop, outsourcing has been devised as a new option that makes high costperformance a reality and is also expected to be able to improve operational processes.

In what operations is outsourcing used?
The Temp Group provides outsourcing services mainly for the following operations, andplans to expand the fields of operations.
Design/development

Help desks

Call centers

IT technicalservices

Various typesofclerical work

Back officecenters

Reception

Marketing

Sales

Sales
promotion

Healthcare

Training
sessions

Childcare

Employment
consulting
for the disabled5Overview of business results by segment

Other Business
Making a move for improvementin earnings responding toeconomic recovery
As for the outplacement support
business, demand usually grows at
the time of a recession, but now new
demand is continuing to decrease.
To cope with this, we improved
managerial efficiency, for example,
through organizational restructuring,from the previous fiscal year. We will
aim to establish a lean organizationthat can flexibly respond to changes
in the business environment.

Establishment of a support center in Miyazaki!
Full-scale start of whole-out type outsourcing business

Tempstaff
HOWCOM
Japan IDEXIn October 2011, Tempstaff , HOWCOM and Japan IDEX
partnered to establish the Miyazaki Support Center, a new basefor the whole-out type outsourcing business. The center, housing
a 330 seat-call center and a business processing space, provides
a wide range of services on a one-stop basis while combining theknow-how and strengths of the three companies. The center is
expected to satisfy the need for decentralization of businessbases, which has recently been growing from the perspective ofcontinuing business operations.
Tempstaff
Has the capability to manage humanresources and match human resources
to human resource needs, know-how
about recruitment, and sales networks.

HOWCOM

Japan IDEX

Has a wealth of know-how
about the IT-based help
desk service, and boasts
high-quality operations.

Has a plenty of knowhow about operational
processes, and boasts
high-quality operations.

Sales (unit: million yen)(forecast)

Full year

Miyazaki Support Center
Runs the call center, help desks,
telemarketing and the operations center.

2Q

DOWN

2011/3

2012/3*In the earnings results of each segment, sales are those after eliminating internal transactions, and operating income is that before eliminating internal transactions.

6Overview of Consolidated Financial Results

Dividend Per

Share(unit: yen)

Net Income(unit: million yen)me
Ordinary Inco

(unit: million yen)Sales

(unit: million yen)(forecast)(forecast)(forecast)(forecast)

UP

UP

UP

Full
year

2011/3

2012/3(forecast)

2Q

Full
year

2011/3

2012/3(forecast)

2Q

We have decided to pay a 6 yen
per-share dividend for the interim
period of the current fiscal year
ending March 2012 as businessperformance remains steady, andwill pay a year-end dividend of 6
yen per share as initially planned.

Full
year

2011/3

2012/3(forecast)

2Q

Earnings remained steady.
Meanwhile, extraordinary loss was
569 million yen due to theapplication of the accounting
standard for asset retirement
obligations in the same period of
the previous fiscal year. As aresult, consolidated net income
jumped 48.7% from a year earlier.

2011/3

2012/3(forecast)

2Q

We improved operational efficiency
by optimizing personnel assignment
within the entire Group, and strove tofurther reduce selling, general, andadministrative expenses, for example,
by cutting rent through reorganization
and unification of offices. These
factors combined with an increase insales led to the consolidated ordinary
income rising 17.3% year on year.

【Reference】】
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.

Full
year

Comprehensive
IncomeAfter the Great East Japan Earthquake,
supply chains recovered more quickly
than expected, and demand fromcompanies for outsourcing continued to
be steady. There were also favorable
effects from M&A activities, which we
conducted actively. As a result,consolidated sales increased 1.3% fromthe corresponding period of the previous
fiscal year.

2011/3 2Q

2012/3 2Q

368 million yen

444 million yen
7For more detailed IR information, please visit our website.
Website addresstBalance Shee

(unit: million yen)

POINT 1In the interim period of the current fiscal year,
earnings continued to be stronger than anticipated.
Further, the date for the acquisition of shares inKobelco Personnel Co., Ltd. and Nikkei Staff Co.,
Ltd. (renamed to Tempstaff Media Co., Ltd. on
November 30), which the Company conducted as
one of its M&A activities, fell during the third
quarter of the fiscal year ending March 2012. As aresult, cash and deposits increased from theprevious fiscal year ended March 2011.

2011/3

2012/3 2Q

ChangeAssetsCurrent assets
Cash and deposits

Noncurrent assets

Liabilities
Current liabilities

POINT 2
In August 2011, the Company converted JAPANTECSEED CO., LTD. into a wholly-owned
subsidiary by way of share exchange, resulting in
reducing the number of treasury shares by 1,788
thousand shares. We will aim for a further growthof the R&D Outsourcing business segment by
maximizing synergy effects through theenhancement of relationships with the Group.

Noncurrent liabilities

Net assets
Shareholders' equity
Treasury stock
Minority interests

8

CSR
Support for reconstruction after the Great East Japan Earthquake

Towardthe future
togetherwith society

Let’s work! Reconstruction projects continuing.
Hoping for restoration of the daily lives of people affected by the disaster, the entire Group is backing up thoseseeking jobs in disaster-hit areas or temporary settlements.
- Enhancement of efforts to secure recruiting companies in the disaster-stricken areas

Contents - Provision of recruitment information for people living in evacuation sites and makeshift housingof support - Establishment of consultation counters for job-seekers- Provision of free voluntary OA training sessions

For women

Supporting women’s
participation in society
The Temp Group supports womenfrom various perspectives, forexample, by operating businesses in
the childcare field.

June 2011
The Group provided more childcare staff inthe early mornings and on Sundays as
many companies adopted summer time
work hours and began holiday operations.

August 2011
The Group collected donations
and held bazaars at its five day
care centers for child-rearing
support, and contributed the funds
raised to the Japan Committee for
UNICEF.

For people’s
growthSupporting study abroad
and international exchange
programs
To develop personnel who can play a keyrole globally, the Group launched ascholarship system for students studying
abroad and began to accept overseasinternship students.
June 2011
Tempstaff Co., Ltd. and Tempstaff Wish Co.,
Ltd. accepted overseas internship students.

sically
For the phy
lly
ta
en
and m
challenged

Supporting physicallychallenged athletes
We provide jobs and funds to support
physically and mentally challenged
employees engaged in sports. Twoathletes from Thanks Temp continued
to perform brilliantly in the current
fiscal year.

The Temp Group will fulfill its
corporate social responsibility (CSR)
through its staffing business, andconduct various social contribution
activities to help realize a world
where everyone feels happy.

- Yusuke Hatsuse (judo; visually impaired)
April 2011
Won a Sasebo City Culture & Sports Special
Award for the fourth consecutive year.
Participated in IBSA World Competition.

August 2011

- Yuya Kimura
The Group offered The 20th Temp
Group Worldwide Scholarship
Program, a short-term study abroad
scholarship program for working
adults.

(track & field; mentally impaired)
May 2011
Won the championship with flying colors
at the Tokyo Sports Competition for the
Disabled.

Yusuke Hatsuse
Yuya Kimura

9

Information
Distribution of shareholders As of September 30, 2011

Stock Information

As of September 30, 2011

Company Outline

As of September 30, 2011

(Unit: shares)●Authorized number of shares: 240,000,000

Company Name

Temp Holdings Co., Ltd.

●Total number of shares issued: 65,521,500

Established

October 1, 2008

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

Management planning,
administration, and operations
related to subsidiary and groupcompanies that handle
temporary staffing andrecruitment services.

Capital2,000 million yen●Shareholders: 9,548●Major shareholders (top 10)

Shareholder Information

Name of shareholders

Shares held
(shares)

votingrights(%)

Yoshiko Shinohara

23,377,200

39.21

State Street Bank andTrust Company

5,769,500

9.67

Kelly Services Japan Inc.

3,000,000

5.03

Yoshimi Iyadomi

1,812,800

3.04

The Bank of TokyoMitsubishi UFJ, Ltd.

1,760,000

2.95●Business year
Temp Holdings
1,537,182
2.57
From April 1 to March 31 of the following year
Employee
Shareholders●Annual general meeting of shareholders
June every year
Association●Record date
Nikko Cordial Securities
1,300,000
2.18
Annual general meeting of shareholders March 31
Investment EnterpriseTerm-end dividend March 31
2nd quarter dividend September 30
Partnership●Administrator of shareholders’ register /Woman Staff Ltd.
1,206,000
2.02
Special account management institution
Mitsubishi UFJ Trust and Banking Corporation
Nanako Yamamoto
1,108,800
1.86●Contact
Mitsubishi UFJ Trust and Banking Corporation
Taro Iyadomi
1,108,800
1.86
Custody Service Department
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JAPAN* Voting rights is calculated based on the number of shares
Tel: 0120-232-711(59,609,707) excluding shares in the treasury stock from the(toll free number available only within Japan)
total number of shares outstanding.
●Stock Listing
Tokyo Stock Exchange, First Section●Website address of public notice
http://www.temp-holdings.co.jp/
When electronic public notices are not possible due toincidents or other unavoidable circumstances,announcements will appear in the Nihon Keizai Shimbun newspaper.

Board of Members

As of September 30, 2011

Chairman & President

Yoshiko Shinohara

Executive Vice-President

Mikihiko Hibino

Executive Vice-President

Masamichi Mizuta

Executive Director

Toshio Saburi

Director

Takao Wada

Director

Kazuomi Morimoto

Director

Carl T. Camden

Full-time Auditor

Iduki Hiraga

AuditorHaruo Shimada

Auditor

Kaoru Arai

Auditor

Ryosuke Tamakoshi

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

Contact

Inquiries about the sending and returning of mails
Inquiries about dividends after completion of thepayment period
General inquires about administrative work related
to shares
Procedures and inquiries not included above

Administrator ofshareholders’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)

Please contact your securities company.

■Shares recorded in the special accountProcedures, inquiries, etc.

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

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)

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

Administrator ofshareholders’register

Method for requesting procedural documents
Request through the automatic answering system: 0120244-479 (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 for receiving dividends in proportion to the amount of shares held.

Shinjuku Maynds Tower, 2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, JAPAN

Tel: +81-(0)3-3375-2220(*) The items in this report include descriptions of future plans and forecasts. Actual performances may differ substantially due to various factors.