Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2017
(Based on Japanese GAAP)May 15, 2017
Company name:Temp Holdings Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
2181

URL

https://www.persol-group.co.jp/

Representative:

President, Chief Executive Officer, andRepresentative Director

Masamichi Mizuta

Inquiries:Executive Vice President, Chief FinancialOfficer, and Director

Kiyoshi Seki

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 27, 2017
June 28, 2017

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 28, 2017
Yes

Holding of financial results meeting:

Yes

TEL

03-3375-2220(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2017
591,995
14.4
33,40919.1
34,13621.1
17,8202.7
Year ended March 31, 2016
517,597
29.1
28,05219.5
28,19018.6
17,35629.3
Note: Comprehensive income

Year ended March 31, 2017
Year ended March 31, 2016

¥19,550 million [5.3%]¥18,558 million [37.4%]
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
75.77
13.4
13.5
5.6
73.73
15.4
12.1
5.4

Diluted earnings pershareEarnings per shareYen
75.94
75.76

Year ended March 31, 2017
Year ended March 31, 2016

Reference: Investment profit (loss) on equity method

Year ended March 31, 2017
Year ended March 31, 2016

¥21 million¥(70) million

Note: The Company conducted a stock split at a ratio of 1:3 of common shares on October 29, 2015. Earnings per share and diluted earnings per
share have been calculated on the basis that the stock split had been effective at the beginning of the year ended March 31, 2016.
(2) Consolidated financial position
Total assets
As of March 31, 2017
As of March 31, 2016
Reference: Equity

Net assets

Millions of yen
268,364
236,238
As of March 31, 2017
As of March 31, 2016

Millions of yen
153,816
133,501

Equity ratio

Net assets per share
%
51.8
53.8

Yen
594.95542.45¥139,119 million¥127,205 million(3) Consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows fromoperating activities
Millions of yen
39,617
13,279Cash flows frominvesting activities
Millions of yen(9,708)(15,065)

1

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(11,655)
69,382(7,213)
51,138

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

YenYenMillions of yen%%––18.008.00

––

7.00
9.00

–
17.00

3,046
3,985

17.2
22.4

2.6
2.8

–

9.00

–

9.00

18.00

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(Forecast)
Notes:

19.0(1) The Company conducted a stock split at a ratio of 1:3 of common shares on October 29, 2015. Year-end dividends for the year ended March31, 2016 and dividends paid thereafter are provided after taking into consideration of the above stock split.
(2) If the above stock split is not considered, year-end dividends and total of dividends for the year ended March 31, 2016 is 21 yen and 39 yen
respectively.
3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Net sales
Millions of yen
Six months ending
September 30, 2017
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

324,000

17.1

15,800(5.2)

16,000(5.6)

9,900

0.4

42.34

677,300

14.4

36,0007.836,500

6.922,200

24.6

94.94

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):
Newly included: 1 company

Yes

Kelly Services (Singapore) Pte. Ltd.
Excluded: (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

YesNo

Changes in accounting estimates:Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2017236,673,651 shares As of March 31, 2016

235,791,100 shares

Number of treasury shares at the end of the period
As of March 31, 2017

2,838,299 shares As of March 31, 2016

1,288,875 shares

234,673,884 shares Year ended March 31, 2016

229,094,130 shares

Average number of shares during the period
Year ended March 31, 2017

Note: The Company conducted a stock split at a ratio of 1:3 of common shares on October 29, 2015. Number of issued shares (common shares)
has been calculated on the basis that the stock split had been effective at the beginning of the year ended March 31, 2016.

2

Reference: Summary of non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2017
Year ended March 31, 2016

Operating profit

Millions of yen
12,946
8,862%
46.1
1.6Earnings per share
Yen
26.93
23.85

Year ended March 31, 2017
Year ended March 31, 2016

Millions of yen
7,404
5,670

Ordinary profit% Millions of yen
30.6
6,809
(4.7)
5,588

Profit% Millions of yen
21.8
6,320(6.2)
5,463%
15.7(10.3)

Diluted earnings
per share
Yen
26.87
23.21

Note: The Company conducted a stock split at a ratio of 1:3 of common shares on October 29, 2015. Earnings per share and diluted earnings pershare have been calculated on the basis that the stock split had been effective at the beginning of the year ended March 31, 2016.
(2) Non-consolidated financial position
Total assets
As of March 31, 2017
As of March 31, 2016
Reference: Equity

Net assets

Millions of yen
151,145
124,321

Millions of yen
87,095
86,151

As of March 31, 2017¥87,095 million

As of March 31, 2016

¥86,151 million

Equity ratio

Net assets per share%
57.6
69.3

Yen
372.47367.38

Note: The Company conducted a stock split at a ratio of 1:3 of common shares on October 29, 2015. Net assets per share has been calculated on
the basis that the stock split had been effective at the beginning of the year ended March 31, 2016.
* Financial results reports are not required to be audited.
* Proper use of earnings forecasts, and other special matters
The above forecasts of consolidated financial results are based on information currently available to the Company and on certain assumptions
deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Consequently, actual business andother results may differ substantially due to various factors.

3

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade51,227
69,52469,43983,260

Deferred tax assets
Other

3,987
6,006

4,597
8,562

Allowance for doubtful accounts

(134)

(619)

130,611

165,240

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

5,320

6,206

Accumulated depreciation
Accumulated impairment loss

(3,141)(72)(3,880)(94)

Buildings and structures, net

2,106

2,231

4,401(3,259)

5,112(3,835)Tools, furniture and fixtures
Accumulated depreciation
Accumulated impairment loss

(17)

(13)

Tools, furniture and fixtures, net

1,123

1,263

Land
Other
Accumulated depreciation

803

803

1,116(607)

1,376
(802)

Accumulated impairment loss

(33)

(33)

Other, net

476

541

4,510

4,840

Total property, plant and equipment
Intangible assets
Trademark right

10,1104,995

Goodwill
Other

70,302
5,774

68,561
9,310

Total intangible assets

86,18782,867

Investments and other assets
Investment securities

7,228

7,782Guarantee deposits
Deferred tax assets

5,597
1,534

5,765
1,371

Other
Allowance for doubtful accounts

716
(146)

547
(51)

Total investments and other assets

14,92915,415

105,627

103,123

236,238

268,364

Total non-current assets
Total assets

4

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Liabilities
Current liabilities
Accounts payable - trade

902

1,490

Short-term loans payable
Current portion of long-term loans payable

787
4,640

413
4,640

Accounts payable - other
Income taxes payable

33,152
5,321

47,627
8,315

Accrued consumption taxes
Provision for bonuses

7,664
8,242

9,619
9,063

Provision for directors' bonuses
Other

139
6,632

173
6,569

Total current liabilities

67,482

87,913

Non-current liabilities
Convertible bond-type bonds with subscription rights toshares
Long-term loans payable

851

31

24,993

20,426

Deferred tax liabilities
Net defined benefit liability

3,638
2,657

2,793
1,093

Long-term accounts payable - other
Other

3,017
97

2,197
92

Total non-current liabilities

35,255

26,634

102,737

114,547

Shareholders' equity
Capital stock

17,055

17,465

Capital surplus
Retained earnings

20,52088,134

20,156
102,432

Total liabilities
Net assets

Treasury shares
Total shareholders' equity(327)(3,328)125,382

136,725

1,945
72

2,203
190

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(194)

–

Total accumulated other comprehensive income

1,823

2,394

Non-controlling interests
Total net assets
Total liabilities and net assets

5

6,295

14,696

133,501

153,816

236,238

268,364

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Net sales
Cost of sales

517,597
394,949

591,995
449,188

Gross profit

122,647

142,806

Selling, general and administrative expenses

94,594

109,397

Operating profit

28,05233,409

14
84
112
–
78–
259

31
101
361
21–
22
416

549

955

148
70
65
78
48

154
––
1756

411

229

28,19034,136

158
089
157
460

20–
–
187

–553

240–
103–
318–

1,209

1,062–
392–
24–

0
4,760
1–
236

417

4,998

Profit before income taxes

28,98230,200

Income taxes - current
Income taxes - deferred

9,954
717

12,548(1,429)Total income taxes

10,671

11,119Profit18,31019,080Non-operating income
Interest income
Dividend income
Subsidy income
Share of profit of entities accounted for using equity method
Gain on bad debts recovered
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Commission fee
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of shares of subsidiaries and associates
Gain on sales of non-current assets
Reversal of loss on liquidation of subsidiaries and affiliates
Gain on transfer of business
Gain on revision of retirement benefit plan
Reversal of long-term accounts payable for directors'
retirement benefits
Settlement received
Compensation income
Gain on change in equity
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on sales of investment securities
Loss on sales of shares of subsidiaries and associates
Early extra retirement payments
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6954

1,260

17,356

17,820Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 201718,31019,080

Valuation difference on available-for-sale securities
Foreign currency translation adjustment556(135)

257
17Remeasurements of defined benefit plans, net of tax(173)

194247469

Comprehensive income

Total other comprehensive income

18,55819,550Comprehensive income attributable toComprehensive income attributable to owners of parent

17,63017,898927

1,651

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

10,081

13,673

6,973

6,973

Retained earnings

Total shareholders'equity

Treasury shares

73,499(316)

96,938Changes of items during period
Issuance of new shares

13,947

Dividends of surplus(2,721)(2,721)

Profit attributable to ownersof parent

17,356

17,356

Purchase of treasury shares(11)

Change in ownership interestof parent due to transactions
with non-controlling interests

(11)

(126)

(126)

Net changes of items otherthan shareholders' equity
Total changes of items during
period

6,973

6,846

14,634(11)

28,443

Balance at end of current period

17,055

20,52088,134(327)

125,382

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

1,388

255

(20)

1,624

Non-controllinginterests

Total net assets

5,406

103,969

Changes of items during period
Issuance of new shares

13,947

Dividends of surplus(2,721)

Profit attributable to ownersof parent

17,356

Purchase of treasury shares(11)

Change in ownership interestof parent due to transactions
with non-controlling interests(126)

Net changes of items otherthan shareholders' equity

556

(183)

(173)

199

888

1,088

Total changes of items during
period

556

(183)

(173)

199

888

29,531

Balance at end of current period

1,945

72

(194)

1,823

6,295

133,501

8Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

17,055

20,520410

410

Retained earnings

Total shareholders'equityTreasury shares

88,134(327)

125,382

Changes of items during period
Issuance of new shares

820

Dividends of surplus(3,522)(3,522)

Profit attributable to ownersof parent

17,82017,820Purchase of treasury shares(3,001)

Change in ownership interestof parent due to transactions
with non-controlling interests(774)(3,001)(774)

Net changes of items otherthan shareholders' equity
Total changes of items during
period410(364)

14,298(3,001)

11,342

Balance at end of current period

17,465

20,156

102,432(3,328)

136,725

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustmentRemeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

1,945

72

(194)

1,823

Non-controllinginterests

Total net assets

6,295

133,501

Changes of items during period
Issuance of new shares

820

Dividends of surplus(3,522)

Profit attributable to ownersof parent

17,820Purchase of treasury shares(3,001)

Change in ownership interestof parent due to transactions
with non-controlling interests(774)

Net changes of items otherthan shareholders' equity

258

118

194571

8,401

8,972

Total changes of items during
period258

118

194571

8,401

20,315

Balance at end of current period

2,203

190

–

2,394

14,696

153,8169Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
28,98230,200Depreciation
Impairment loss

3,061
392

3,988
4,760

Amortization of goodwill
Increase (decrease) in net defined benefit liability

5,294(1,580)6,035(1,576)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

831
2556934

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

(218)
(98)

82
(132)

Interest expenses
Share of (profit) loss of entities accounted for using equity

148

154

70

(21)

methodLoss (gain) on change in equity

(103)

–

Loss (gain) on sales of shares of subsidiaries and associates
Loss (gain) on sales of investment securities

(133)
–

(0)
(1)

0–

0
(64)

(157)
(112)

–
(361)

Decrease (increase) in notes and accounts receivable - trade
Increase (decrease) in operating debt

(5,864)2,370(7,017)
13,371

Increase (decrease) in accrued consumption taxes
Increase (decrease) in long-term accounts payable - other(9,407)
1,300

1,375
(820)

188(392)(1,269)135

Loss (gain) on disposal of non-current assets
Compensation income
Loss (gain) on transfer of businessSubsidy income

Decrease (increase) in other assets
Increase (decrease) in other liabilities
Subtotal

24,59549,441

Proceeds from compensation
Interest and dividend income received

–
108

64
141

Interest expenses paid
Proceeds from subsidy income

(143)
131

(155)
–

Proceeds from subsidy income
Income taxes paid

112
(11,756)361(11,576)

Income taxes refund
Net cash provided by (used in) operating activities

10231

1,340

13,27939,617

(Millions of yen)

Cash flows from investing activities
Payments into time deposits

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
(146)

(1)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

350(1,491)31(1,285)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

0(2,791)3(5,640)–(568)

6(201)31(10,457)(2,518)54

15(32)––(43)

Proceeds from transfer of business
Payments of loans receivable

162
(9)

–
(19)

Collection of loans receivable
Payments for guarantee deposits

107(1,016)

46(574)

Proceeds from collection of guarantee deposits
Other, net

482
288

379
93

Net cash provided by (used in) investing activities(15,065)(9,708)Cash flows from financing activities
Net increase (decrease) in short-term loans payable(15,000)(297)

15,713(4,860)–(4,640)(11)
60(3,001)–(2,721)(21)(3,522)
(118)

(279)

(53)

Proceeds from sales of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Payments for transfer of business

Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from share issuance to non-controlling shareholders
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(93)

(22)

(7,213)(11,655)

(67)

(10)

Net increase (decrease) in cash and cash equivalents(9,066)

18,243

Cash and cash equivalents at beginning of period

60,205

51,138Cash and cash equivalents at end of period

51,13869,38211