To Shareholders and Investors

Business Report

Interim report for the fiscal year ending March 2011
April 1, 2010 – September 30, 2010

(Securities code: 2181 )Top Message
A step toward a full-scale recovery
Now fostering the capability to make a further leap forward
Enhancement of the outsourcing business and operations in the global market
With companies’ earnings recovering, demand for human resources has increased, and our human resource services businesshas begun to show signs of a moderate recovery. Consolidated sales were 111.7 billion yen for the interim period of the current
fiscal year ending March 2011. Ordinary income was 3.0 billion yen, exceeding both forecast at the beginning of the current fiscal
year and results for the corresponding period of the previous fiscal year.
During the period, the Company established the headquarters of the outsourcing business in Tempstaff Co., Ltd. to respond tochanges in the market needs. We also acquired shares in Kelly Services Inc., the world’s leading human resource services
company. The resultant strategic alliance with Kelly Services is expected to play a key role to strengthen our competitivenessparticularly in the Asian markets.
We will strive to further expand the market share in our mainstay temporary staffing business, while developing the outsourcing
business and global operations as the two key businesses for new growth, aiming to become the foremost human resource
services provider in Asia.

Aiming at a further creation of jobs to protect working people
Due to the recent economic slowdown, we have been facing difficulties in continuously
providing employment opportunities for many job seekers. Behind our initiative toenhance the outsourcing business is our sincere wish to secure continued employment
opportunities for job seekers and provide a wide range of working styles for them.
Through the creation of jobs, we support people in growing and contribute to society.
This is our corporate principle and mainstay operations. We will fulfill social missions byfurther pursuing human resource services.

Creating Jobs

Corporatephilosophy

AddingValue to theIndividuals

Contributingto Society

Aiming for a Human Resource Services Company

Representing Asia

Interim Highlights of2011
the fiscal year ending March

111.7 billion yen●Ordinary Income 3.0 billion yen●Net Income0.8 billion yen●Sales●Second Quarter Dividend per Share

6 yen

Temp Holdings
ategy
Mid-term Management Str
Strengthening localized services
Local operating companies provide well-thought-out local communitybased services and pursue an increasing market share in each region.

Developing business in specialized fields
We will work on expanding job / industry specialized services andnetworks to respond to needs in the market which is getting
increasingly specialized.

Expanding our presence in the global
We will focus human resources into the global network mainly in Asiawith the aim of establishing operational foundations and aggressively
expanding businesses.

Providing job assistance to women
We will totally support employment of women, who hold the key tolabor shortages arising from the declining birth rate and aging
workforce, by offering job search support for child-raising mothers andproviding seminars and counseling services.

Improving management efficiency
We strived to thoroughly reduce costs in all aspects as represented by
improving operational efficiency by adopting a holding company
system. We will firmly maintain steady profit growth and a healthyfinancial standing.

Yoshiko Shinohara, President
After leaving Mitsubishi Heavy Industries, Ltd.
in 1957, Ms. Shinohara studied in Europe andworked in Australia in 1971. Upon her return toJapan in 1973, Ms. Shinohara established
Tempstaff Co., Ltd. inspired by encounters withtemporary staffing in Australia. Ms. Shinohara
was ranked by only Japanese and the 37th as
one of “the Most Powerful Women in Business”
in FORTUNE. It has been 11 consecutive years
since 2000.

Topics

Management and leaders talk about“Temp Group Today”
dingsurrountnem
Env iron tryusthe ind

Regarding changes in the business environment
as a good business opportunity
Although outlook for the Japanese economy is still uncertain, companies now run short ofpersonnel as a reaction to reduction in their workforce for the past several years, and theirdemand for external human resources is picking up gradually. Meanwhile, the Ministry ofHealth, Labor and Welfare announced the “Optimization Plan for 26 Types of Work” inFebruary 2010, resulting in stricter interpretation and application of the Worker Dispatching
Law. In addition, compliance is regarded as important by companies which use humanresource services. Up until now, they have used several human resource services companies,
but now they are increasingly reducing the number of such companies to one or two whilechoosing highly reliable ones.
Currently, the human resource services industry isfacing an era of change. Under such circumstances,
we will further thoroughly carry out compliancemanagement, the “strength” of the Company, aiming tobecome a “company to be chosen.”

Executive Vice President
Mikihiko HibinoTemporary
Staffing
andRecruitment
Research Services&Outsourcing
Development
Outsourcing
OtherBusiness

Beginning in the current
fiscal year, the Company
reorganized its businesssegments by introducing
management approach. We
now have the following fourbusiness segments:“Temporary Staffing andRecruitment Services” “R&D
Outsourcing,” “Outsourcing”
and “Other business.”

Segment 1

Temporary Staffing and Recruitment Services
Supporting appropriate and smooth operations;further expanding the market share
Corporations, which are minimizing the number of human resource services
companies, choose such companies with a stress on the capability to support“appropriate and smooth operations” of temporary staffing. Such demand is further
growing due to a strict application of the Worker Dispatching Law. The Temp Group
provides corporations that receive temporary staff with information for encouraging
appropriate operations and optimum proposals through sales activities and seminars.
Thus, we are leading our customers to perform appropriate operations. Our such sales
style has been highly rated, resulting in a recover in the number of orders received. We
will aim to become a business partner of our clients that is relied on and expected bythem. For this, we will leverage the Temp Group’s strengths: faithful and steady sales
abilities and the capability to meet corporate needs.

Segment 2

Research & Development Outsourcing
Improving customer satisfaction by pursuing “symbiotic evolutionof outsourcing”
The Company provides services that meet various needs for R&D support in theupstream process of manufacturing, including machinery design and development,
electric and electronic design and development, and software development. Recently,
needs for R&D support have begun to pick up among customer industries such as
automobile, aircraft and software, and they are promoting outsourcing against thebackdrop of technological innovation, shortening of development cycles, reduction indevelopment costs, etc. Responding to such trend, we will shift our business models
from dispatching staff to subcontracting works, from stationing workers to undertaking
works, become the best partner in customers’ development projects with “symbioticevolution of outsourcing” as a strategy, and comprehensively support customers in thesophisticated and efficient development of products.

Executive Vice President
Masamichi Mizuta

President, JAPAN TECSEED
Kazuomi MorimotoSegment 3

Temporary
StaffingandRecruitment
Research Services&Outsourcing
Development
Outsourcing

Outsourcing
Launching full-scale operations of the outsourcing businessas a core for the next growth
Needs for outsourcing are increasing as a new option for the use of external resources.
Amid this backdrop, in April 2010, the Company set up the headquarters of theoutsourcing business in Tempstaff Co., Ltd. To substantiate the outsourcing business,
we turned HOWCOM Co., Ltd., a company specializing in planning and operations ofhelp desk service, a subsidiary through M&A in May. Under the structure in which
HOWCOM is engaged in planning and management while Temp Group firms dispatch
operators, we are obtaining substantial orders. By combining HOWCOM that holds
excellent know-how and the Temp Group whose supply capability is abundant,
synergy effects are being generated. From now on, we will provide sophisticated andcomprehensive services not only through cooperation between Group firms, but also
under alliances with external companies which hold professional know-how.

Other
Business

Differences between temporary staffing and outsourcing
Temporary staffing

Outsourcing

Operations are conducted by directly instructing
dispatched staff.

Operations are entrusted to a commissioned company.
Customer’s load of administering operations can be reduced.

Director
Takao Wada

Commissioned company

Instructing

Entrustment
ofoperations

Responsible personof a corporate customer
Dispatched staff

InstructingLeader
Staff

Global strategy increasing its momentum!

sNoteworthy topic

Enhancing the base in the Asian markets with strong growth potential

Executive Director
Toshio Saburi

Under the mid-term management strategy, “expanding our presence in the global market,” theCompany formed a strategic alliance with Kelly Services Inc., the world’s leading human resource
services company, in May 2010. More and more Japanese, European and U.S. companies aremoving into the Asian markets, and needs are increasing year by year for human resource services
firms which can cover the Asian region. The said alliance is expected to expand the covering areain the Asian region, significantly reinforce the capability to supply human resources, and increase
marketing opportunities. In China, our operations are becoming active. Suzhou Tempstaff Data Co.,
Ltd. aggressively conducts administrative works on consignment, and Tempstaff Shanghai Co., Ltd.
has established the job search website “360gongzuo.com.” We will further raise ourcompetitiveness in the Asian markets whose growth potential is strong.

’son of the world
essPr es ent situati
sinbusicervce sehuman resour

What type of workers will you hire firstwhen the economy recovers?

Era of a golden chance
Without
discrimination
Non-full-timeworkers
Full-time workers(Note) Research targets: 171 large U.S. companies with over 1,000
employees(Source) “Temporary Staffing Data Book 2010” compiled by theJapan Staffing Services AssociationThe global demand for flexible labor is steadily
increasing. With shortages in skilled labor supply
again emerging, companies are turning to firms likeTemp Holdings to provide them with critical labor.
As workers balance their childcare and elder care
responsibilities, they are turning to Temp Holdings
to meet their life goals. This will be a decade ofopportunity for our industry.

DirectorCarl T. Camden

Overview of Consolidated Financial Results

POINT 1
Although uncertainties remained over future economic
trends, orders received, which had been week, began
to pick up gradually due to a moderate recovery ofbusiness sentiment. As a result, sales were almost thesame as our forecast.

Statement of Income(Unit: million yen)
Upper: Actual
Bottom: Forecast released on May 11, 2010

1100.096,686

86.5

General Office Work32,842

29.4

Specialized Office Work40,82736.5

IT / Engineering

8,627

7.7

3,589

3.2

Other

9,200

8.3

Recruitment Services

1,598

1.4

R&D Outsourcing

4,287

3.8

Outsourcing

8,681

7.8

Other Business

2,135

1.9

3,085
2,550

Recurring margin(%)

Ordinary Income

863
950

Net margin(%)

Net Income

6.00
6.00

Dividend ratio(%)

Dividend per Share (yen)Temporary Staffing, Contracting
and Recruitment Services

As our priority strategy for the current fiscal year, weare expanding sales in the outsourcing business bybringing together the Group firms’ know-how. In May
2010, we turned HOWCOM Co., Ltd., a company withstrength in the IT support business focusing on helpdesk service, our subsidiary. This added a new service
menu to our business, strengthening our capability ofproviding comprehensive proposals.

POINT 3
Sales rose substantially year on year due to a strong
performance of the reemployment support business,and the effects of converting Drake Beam MorinJapan, Inc., which operates the said business, into asubsidiary.

2POINT 4
Extraordinary loss was 569 million yen reflecting theapplication of the accounting standard for asset
retirement obligations. However, net income rose
4.2% from a year earlier.

Beginning in the current fiscal year (ending March 2011), the Company adopted the “Accounting Standard for Disclosuresabout Segment of an Enterprise and Related Information,” and changed its segment information. In addition, as for jobclassification in the “Temporary Staffing and Recruitment Services Business,” we fractionalized and redefined necessary skills,
and changed the actual classification and name according to characteristics of skills. Consequently, we did not compare
segments’ figures with those for the corresponding period of the previous fiscal year.

34Ratio (%)

111,791
112,000

Sales

POINT 2

2011/3 2Q

2.8
0.8
40.2

Balance Sheet(Unit: million yen)

POINT 1In May 2010, the Company acquired a
4.8% share in Kelly Services Inc., a U.S.
human resource services firm. By forming acooperative relationship between Kelly
Services, which has abundant
infrastructures overseas and a great stockof know-how, and the Company, which has
endeavored to establish operationalfoundations mainly in Asia, we will
forcefully implement one of the mid-term
management strategies: “expanding ourpresence in the global market.”2010/3

2011/3 2Q

Change75,91275,114△797

61,64459,968△1,67528,54530,9202,374

14,26815,146

877

1,839

3,267

1,427

27,59526,788△806

Current liabilities

20,094

19,218△876

Noncurrent liabilities

7,500

7,570

70

48,317

48,325

8

Shareholders' equity

45,77846,294

516

Treasury stock△5,636△5,636046△445△492

2,4922,476△15Assets
Current assets
Cash and deposits
Noncurrent assets
1Investment securities
Liabilities

2 Net assets

POINT 2The Company’s financial structure is stillsound, with shareholders’ equity ratio at
61.0%, up 0.6 point from the end of March2010.

Valuation and translation adjustments
Minority interests

CSR

Further more contributing to society
The Temp Group practices corporate social responsibility (CSR) through the human resource services business, while conducting variedsocial contribution activities, with an aim to realize the world in which everyone can live happily.
August 2010

Certified as “Supporter for the Promotion of Cancer Examination in Tokyo Metropolis”

Supporting women

The Temp Group, making efforts to promote the examination of five major cancers, has actively implemented the pinkribbon campaign that is intended to promote especially breast cancer examination. Such practice was highly evaluatedand the Group was certified as “Supporter for the Promotion of Cancer Examination in Tokyo Metropolis.” Taking
advantage of this, we will enlighten more women on the importance of cancer examination, striving to contribute to therealization of a society where women can work lively.
May 2010

Invitation to “20th Temp Group Youth International Scholarship”

The Temp Group every year provides the overseas study scholarship program for students 18 years old or older.
Through this program, we will continue to support the training of personnel who can play important roles globally.

July 2010

Supporting growth

Update of the information website for skill improvement “Manabi Campanella”!

The information website for skill improvement “Manabi Campanella,” which supports temporary staff in growing, wasfully updated. In the site, the character “Mana BEE the Worker Bee” merrily tells visitors information useful for jobs.

Backing up physically challenged athletes
The Temp Group supports physically challenged employees in their sports activities by providing both employment
and financial assistance. Such practice came to fruition in various forms in the fiscal year under review, too.
April 2010

disabled
Supporting theApril 2010

Yusuke Hatsuse (with visual impairment) given
the “Sasebo City Special Award for Culture andSports” for the third consecutive year

Yuya Kimura (with mental retardation) sets anew record in the “Track and Field Meet atJapan Paralympic Championships 2010”

Yusuke Hatsuse at Thanks Temp Co., Ltd. participated in the judo
competition at the Beijing 2008 Paralympic Games, and at the 4th
IBSA World Championships and Games held in Turkey in 2010.
Highly evaluated his achievements in the competitions, Sasebo City,
from which he is, awarded him the above prize.

Yuya Kimura at Thanks Temp Co., Ltd., who has been given various
awards in athletic sports, established a new world record at ID FullMarathon in 2009. At the Japan Paralympic Championships 2010, hetook part in a 1,500-meter run and made a new meet record at
4:07.23, winning a silver medal.

Temp Holdings Co., Ltd. and the special subsidiary Thanks Temp Co., Ltd. have received the“Heartful Ribbon Mark,” a certification mark for blue chip employers of disabled people.

Information
Distribution of shareholders As of September 30, 2010

Stock Information

As of September 30, 2010

Company Outline

As of September 30, 2010

(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, 2008President

Yoshiko Shinohara

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: 9,617●Major shareholders (top 10)
Name of shareholders

Shares held(shares)

votingrights(%)

Shareholder Information

Yoshiko Shinohara

23,377,200

40.23

State Street Bank andTrust Company

5,255,200

9.08

Kelly Services Japan Inc.

3,000,000

5.18

Yoshimi Iyadomi

1,812,800

3.13

The Bank of Tokyo-

1,760,0003.04●Business year
Mitsubishi UFJ, Ltd.
From April 1 to March 31 of the following year
Nikko Cordial Securities
1,300,000
2.24●Annual general meeting of shareholders
Investment EnterpriseJune every year
●Record datePartnership
Annual general meeting of shareholders March 31
Temp Holdings employee
1,274,000
2.20
Term-end dividend March 31
shareholders association
2nd quarter dividend September 30●Administrator of shareholders’ register /Woman Staff Ltd.
1,206,000
2.08
Special account management institution
Mitsubishi UFJ Trust and Banking Corporation
Nanako Yamamoto
1,108,800
1.91●ContactMitsubishi UFJ Trust and Banking Corporation
Taro Iyadomi
1,108,800
1.91
Custody Service Department
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JAPAN
Tel: 0120-232-711* The voting rights is calculated based on the number of(toll free number available only within Japan)
shares (57,821,800) in which the treasury stock is deducted●Stock Listingfrom the all issued stocks.
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, 2010

President

Yoshiko Shinohara

Executive Vice President

Mikihiko Hibino

Executive Vice President

Masamichi Mizuta

Executive Director

Toshio Saburi

Director

Takao Wada

Director

Carl T. Camden

Full-time Auditor

Izuki Hiraga

AuditorHaruo Shimada

Auditor

Kaoru Arai

Auditor

Ryosuke Tamakoshi

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

Administrator ofshareholders’registerProcedures and inquiries not included above

Please contact your securities company.

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

Contact

Requests for transfer from a special account to ageneral 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.