Earnings Briefing Summary for Fiscal Year Ended March 2017
May 18, 2017 (Thu.)
Temp Holdings Co., Ltd.

Consolidated Financial Results Highlights for Fiscal Year Ended March 2017
Consolidated Statement of Income: M&A Contribution in Addition to Existing
Business Growth
Net sales increased +14.4% and operating profit grew +19.1% compared to the fiscal
year ended March 2016.
Net sales were 591.9 billion yen. The breakdown in revenue growth of 74.3 billion yen
compared with the year-earlier period consists of 44.8 billion yen in organic growth and32.5 billion yen increase from M&A1. In the backdrop of a strong market environment,
organic growth in revenue was primarily achieved due to the increase in work force in thetemporary staffing / BPO segment, as well as the increase in the number of placementsin the recruiting segment. Large growth in revenue was also realized due to the effect ofexpanding the joint venture that Temp Holdings is developing in the North Asian region
with Kelly Services throughout the entire APAC region.
EBITDA was 43.4 billion yen. 7 billion yen in earnings growth has been achieved since
the fiscal year ended March 2016, and our main businesses, Temporary Staffing / BPO
segment and the Recruiting segment were major contributors to this growth, as withsales.
Operating profit was 33.4 billion yen, which was an earnings growth of 5.4 billion yen
since the fiscal year ended in March 2016.

Consolidated Balance Sheet: Continue to Maintain a Favorable Financial Position
On the Consolidated Balance Sheet, current assets increased by 32.1 billion yen
since the fiscal year ended March 2016. This is primarily due to profit increase of 18.2billion yen in cash and deposits.
As for fixed assets, while goodwill increased due to the effects of M&A investment,owing to trademark right impairment accompanying Intelligence's corporate name
1 Companies subject to M&A (dates in brackets indicate consolidated results contribution start date): P&PHoldings (July 2015), MEDICROSS (October 2015), Capita (January 2016), First Alliances (March 2016), Kelly
Services (Singapore) Pte. Ltd. (October 2016).

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change and ordinary goodwill amortization, fixed assets generally remained at the samelevel as the fiscal year ended March 2016.
Current liabilities increased by 20.4 billion yen from the fiscal year ended March 2016.
This is due to an increase in accounts payable as payment of staff salaries in thetemporary staffing business was changed from twice a month to once a month as of April
2016.
A decline in non-current liabilities was primarily owing to scheduled repayments ofborrowed money, etc.
Regarding net assets, although acquisition of own shares of roughly 3 billion yen wasimplemented in February 2017, as profits were made due to steady sales, net asset
increased by 20.3 billion yen since the year ended March 2016, and ratio of net worth
became 51.8%.

Consolidated Statements of Cash-Flow: Balance of Cash and Equivalents
Dramatically Increased from Fiscal Year Ended March 2016
Cash flow from operating activities increased by 26.3 billion yen mainly owing to thechange in salary payment method in the temporary staffing business, among otherinfluences.
Regarding cash flow from investing activities, due to a backlash from the many M&As
carried out during the period ended March 2016, cash-out declined by 5.3 billion yen .
With respect to cash flow from financing activities, cash-out increased by 4.4 billion
yen due to acquisition of treasury stocks and dividend increase.

Dividends: Year-end Dividend Increase of 1 Yen, Annual Dividend of 17 Yen per Share
While the dividend policy from the past had been maintained, year-end dividend pershare has been increased by 1 yen to a total of 9 yen and the annual dividend total
became 17 yen per share, to achieve a dividend ratio of 22.4%. The hitherto dividend
policy was continued based on the judgment that a certain amount of cash on handrequisite for strategic investment should be held.

Progress of Mid-Term Management PlanPERSOL Group business environment: Serious Concerns of Labor Shortage
Five (5) strategies have been set for the Mid-Term Management Plan of Temp

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Holdings.
Strategy 1 is "Enhancing Awareness of the PERSOL Group." Until now, PERSOLGroup company names have not been uniform and the level of recognition as a Grouphas been felt to be low, even from actual experience. In the midst of manpower shortage,PERSOL Group intends to create further value for the society by providing diverse
working styles and minimizing mismatches. After July of this year, the Tempstaff namewill be changed to "PERSOL TEMPSTAFF". Intelligence will be changed to "PERSOLCAREER" and Intelligence Business Solutions will be changed to "PERSOL PROCESS& TECHNOLOGY." In April of this year, Japan Tecseed and DRD merged to become"PERSOL RESEARCH & DEVELOPMENT." As for Temp Holdings, the company nameis planned to be changed to "PERSOL HOLDINGS" after passing a resolution at theshareholders' general meeting this year.
What is important is not just to change our doorplate, but to change ourselves fromthe inside by applying what PERSOL Group has in service to society and to exercise
synergistic effect. At the same time, PERSOL Group TV commercial messages andtransit advertisements are being carried out, and awareness of the PERSOL name issensed to be gradually instilled into the public mind.
Strategy 2 is "Investing in IT Systems and Enhancing Productivity for Further
Business Growth." IT expenses are expected to increase to 2 billion yen or more for thefiscal year ending March 2018 compared to the March 2017 period. Specifically, theTemporary Staffing system will be completely revamped from July and onward. TempHoldings also puts effort to unify the human affairs and accounting systems to raise work
efficiency and enhance security to protect the valuable personal information of ourcustomers that are in our possession. With the belief that it is the mission of Temp
Holdings to continue providing work styles to suit customers despite changes in their life
stage, and to accomplish this mission, Temp Holdings intends to invest in order to utilize
big data, which includes information and know-how within the Group.
Strategy 3 is "Creating Group Synergies and Promoting Group Management."
Currently, various synergies are gradually being produced that are not only contributing
to results, but are enabling the Group to better meet the diverse needs of customers.
One example is the synergy between Tempstaff and DODA. Although Tempstaff hadreceived regional demands from customers for permanent employees, there was a
shortage of human resources that Tempstaff could introduce and was unable to meet3

these needs. On the other hand, while DODA possessed human resources wishing towork in regional areas, the company was unable to introduce such opportunities because
DODA did not possess regional offices. By offsetting what each company lacked with themerits of the other company, support can now be provided to job changers nearlynation-wide. There are also cases where Temp Holding has applied all of its know-how tohelp solve the human resource issues of customers. In the future, the Group will also
focus on obtaining jobs that will provide customers value through Group-wide effort that
individual companies within the Group alone cannot provide.
Strategy 4 is "Enhancing Our Presence in the Asia-Pacific Region." From this fiscalterm, Temp Holdings has decided to indicate overseas businesses as an independentsegment. As a result of meeting the requests of investors and as overseas sales havereached nearly 10% following the joint venture with Kelly Services, which joined theGroup since last year, PERSOL Group has decided to independently indicate theoverseas business. As to overseas subsidiaries that have undergone M&A, post negative
figures are expected for the year ending March 2018 due to PMI expenses to build theinternal structure. However, PERSOL intends to connect this to growth for the next term.

Corporate Governance: Establishment of a Nomination and Remuneration Committee,
Introduction of Stock Compensation Plan
In establishing a governance system, a Nomination and Remuneration Committee
was introduced in February 2017 to secure the transparency of business management.
The committee is comprised of five members; Mr. Mizuta (CEO), Mr. Takahashi (COO),and three other external directors. An external director is fulfilling the role of chairman. As
well, to improve corporate value over the mid- and long-term, a Stock Compensation
Plan has been introduced with the aim of sharing profit awareness with shareholders. Asfor new board members, Mr. Carl T. Camden will be replaced by Mr. Peter Quigley as anexternal director. Kelly is an important business partner in fulfilling the overseas strategy,
and as PERSOL Group is involved in a joint venture in APAC, the partnership with Kelly
will continue to be treated with importance. In addition, PERSOL Group intends to apply
the knowledge of Mr. Quigley in overseas human resources business to improve thecompany's management.
Performance targets in the Mid-Term Management Plan is set at 750 billion yen in net4sales and 45 billion yen in operating profit by fiscal year ended March 2020. Sales havebeen progressing steady up to now. While profits have progressed as expected, we wish
to take heed of changes in the labor environment and legal reforms.

Forecast for the Fiscal Year Ending March 2018
Regarding the main initiatives for the year ending March 2018, Temp Holdings intends
to conduct deeper reviews of the five strategies set forth in our Mid-Term Management
Plan. In particular, upon changing the corporate name to PERSOL HOLDINGS after thegeneral shareholders' meeting, investment in advertising and to existing businesses isplanned for the purpose of increasing the recognition of the company. Investment
including advertisements will be implemented for the purpose of having more customers
register to our services as it will lead to the growth of PERSOL Group.
Sales forecasts for the fiscal year ending March 2018 are sales of 677.3 billion yen(+14.4% year-on-year), EBITDA of 47.1 billion yen (+8.5% year-on-year), and operating
profit of 36 billion yen (+7.8% year-on-year). As mentioned previously, the reason why
growth in profits is low relative to growth in sales is due to the investment in IT andmarketing for the sake of mid- and long-term growth.

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