Procedures for Shares
Shares registered in the accounts of securities companies
Procedures, inquiries, etc.

To Shareholders and Investors

TEMP REPORT
Full-year business report for the
fiscal year ended March 2016
April 1, 2015 to March 31, 2016

Temp Holdings Co., Ltd.
(Securities code: 2181)

Contact

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.

Shares registered in the special accountProcedures, inquiries, etc.

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JAPAN
Telephone: 0120-232-711 (Toll free available only in Japan)

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
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, 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 a special account may not choose the method of receiving dividends in proportion to the number of shares held.

Stock split concluded. (One share of common stock of the Company was split into three.)
For the purpose of expanding the investor base by raising the liquidity of the shares, the Company implemented a three-for-one stock
split of shares of common stock, with October 28, 2015 as the base date, and October 29, 2015 as the effective date. As a result of thisstock split, the stock price per share of the Company was changed to one-third of its previous value.

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation

0120-232-711 (Toll free available only in Japan)

Temp 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 stocks of companies that meet the requirements of global investment
standards, including the effective use of capital, an investor-conscious management viewpoint, etc., which wasestablished with the aim of promoting the attractiveness of Japanese companies to investors at home and abroad.

Temp 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 materiallyfrom the statements due to a variety of factors, and the statements do not mean that we promise to achieve the figures stated therein.

This printed product uses FSC®-certified paperand vegetable-oil-based ink.

Message from Management
Overview of FY 2015

Create a social
infrastructure for people
and organizations thatcatalyze growthand innovation.
Creating
Jobs

Corporate Philosophy
AddingContributing
Value toto Society
the Individual

Masamichi Mizuta

President and Representative Director
Joined Tempstaff in 1988. Became Head of the Sales 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 and Representative Director
in 2012. He has been in charge of the sales division throughout his
career. In 2013, he assumed the post of President andRepresentative Director. He has also served as Chairman of theJapan Staffing Services Association and Council Member of the
Health Insurance Society for Temporary Workers. His motto is“Little Things Make a Big Difference.”

1

TEMP REPORTThe Japanese economy continued to show a recovery trend fueled by avariety of policies implemented by the Japanese government, despite thedownturn of the Chinese economy and the uncertainty arising from thenormalization of US financial policies. Human resource services witnessedmarket expansion thanks to robust demand, as shown in the associatedindicator, the job offers-to-applicants ratio, which was very high.
Under such an economic environment, the Temp Group promoted the“Optimization of Segment Systems,” “Improvement of Productivity,”“M&A,” and other measures as part of its growth strategies. As a result of
aggressive efforts exerted by each segment based on the respective sales
strategies, net sales and operating income for the fiscal year under review
were 517.5 billion yen and 28.0 billion yen, respectively, representing arecord high performance since the foundation of the Group.
For our Group management, the creation of synergy is one of the mostcritical challenges. In the fiscal year under review, the Temp Group redefinedits segment systems with the aim of expediting decision-making processes
and improving the efficiency of organizational operations while further
enhancing cooperation among related businesses. To each segment, wehave assigned an executive officer, transferring substantial power. We willcontinue to pursue a higher growth path by setting up a system capable ofresponding swiftly and flexibly to the quickly changing market environment.
In pursuing higher synergy, not only the growth of revenue but also cost
reduction is a critical measure. In the fiscal year under review, we further
promoted the integration of back office systems as part of IT-based
improvement of productivity. As a result, the unification of the accounting
system bases has been completed. We will continue to pursue further
improvement of management efficiency by promoting the streamlining of
back-office functions.
As a personnel company, information is the very source of ourcompetitive edge. In order to increase the volume of information, M&A iseffective in terms of expanding the business scale. During the fiscal year
under review, Panasonic Excel Staff Co., Ltd. and P&P Holdings Corporation
were converted into our subsidiaries, significantly contributing to the
expansion of business as well as the enhancement of information power in
the Temporary Staffing/BPO segment. We will continue to aggressively
promote M&A in the future.

Financial Highlights

Consolidated Operating Results for the Fiscal Year
Ended March 31, 2016

Fourth straight year ofrecord-high performance on
the back of robust demand
Net sales

Operating income

517.5 billion yen

28.0 billion yen

UP 29.1%

UP 19.5%y/yy/yProfit Attributable to
Owners of Parent Company

Year-end Dividendper Share

17.3 billion yen

7 yen

UP 29.3%y/yOperating income (billion yen)

23.4

28.0

30.0

18.5
8.1

9.8

Net sales (billion yen)

233.1

247.2

FY 2011

FY 2012

517.5
362.4

FY 2013

564.0

401.0

FY 2014

FY 2015

FY 2016(forecast)

TEMP REPORT

2

Message from Management

Roles of the Temp Group
Social Challenges

Keys to solutions

Decreasing working
population

Participation of women andthe elderly in the labor market
Improvement of productivity
in human resources andorganizations
Right-person-in-the-right-placeassignment

Roles of the Temp Group

Promotediversity bycreating diverse
employment.

Realize labormobility without
loss ofemployment.

A variety of
supports toward
the improvement of
productivity inhuman resourcesand organizations

Create social infrastructure for people
and organizations that catalyze growthand innovation.

Customers

Society

Employees

Realize“right-personin-the-right-placeassignment”
worldwide.

Materialize a society
in which growing
and raising the valueof individuals is
considered the mostimportant factor.

All employees of
the Temp Group
continue to add
value while enjoying
their work.

With respect to the Mid-term Management Strategy, which started from the fiscal year ended March 2015 toward the mediumto long-term growth of the Temp Group, we are now almost certain to be able to achieve the targets during the fiscal year underreview, one year earlier than planned. Accordingly, we announced a new Mid-term Management Strategy.
Looking at the future of Japan, it is anticipated that the issue of the shrinking labor force will worsen due to the ageing
society. Furthermore, reflecting the changes in the industrial structure, we observe an imbalance between mature industries
with excess labor force on the one hand and growth industries suffering a shortage in manpower on the other. The key tosolving these challenges is found in the promotion of diversity by creating a wide variety of employment, the optimum
placement of human resources through the realization of labor movement without loss of employment, and various kinds ofsupport toward productivity improvement in personnel and organizations. This is exactly the mission that the human resource
business should assume.
In order to share the vision the Temp Group should pursue with the Group companies while taking the society’s expectations
into consideration, we formulated a new vision of the Group in fall 2015: “Create a social infrastructure for people and
TEMP REPORT

1

Improve the awareness of the Group.

2

Invest in systems and improve productivity
toward further business growth.

3

New Mid-term Management Strategy

3

Key Strategies of the Mid-termManagement Strategy

Goals of the Group Vision

4
5

Joint Venture with Kelly
Services in APAC(*)
Diverse service lines will be established
as a global HR infrastructure in Asia,
centering on Japan.
OutlineNorth Asia

Create group synergy and promote Groupmanagement.
Pursue a stronger presence in the
Asia-Pacific region.
Proactively reinforce business base andexpand service domains through M&A.

China,
Hong Kong,
Taiwan,
Korea

India
India

South Asia

Singapore,
Malaysia,
Indonesia,
Thailand,
Vietnam

Oceania

Australia,
New Zealand■ Looking to a stronger presencein the major countries by fully
localizing businesses, mainly
through TS Kelly Asia Pacific.

■ Creating synergy by combining

the customer base and expertiseof staffing operations held by
Kelly, Capita and the Temp Group.

■ The capital contribution ratio is 51%

by Temp Holdings and 49% by Kelly.
Executive officers dispatched byTemp Holdings will serve as CEO
and CFO of the joint venture.
* APAC: Asia Pacific region

organizations that catalyzes growth and innovation.” On top of this, a new Mid-term Management Strategy was prepared as aroadmap for the realization of our vision for the future.
Under the new Mid-term Management Strategy, our firm belief that information power is the key to a competitive edge
remains unchanged. Amid the flood of information these days, the value of information has been considered to depend on its“reliability.” In human resource services that connect job seekers and companies, we also believe that expectations for not only
the “quantity” and “quality” but also the “correctness” and “credibility” of information will increase. During the period of the
Mid-term Management Strategy, we will improve our services to ensure that they are selected by more job seekers byenhancing the interface and security levels of our website in pursuit of higher convenience and safety. At the same time, within
the Company, we will also improve productivity through IT-based operation as well as our operating processes.
We will implement various measures to heighten our comprehensive power, aiming at further growth as a general humanresource service company capable of solving a variety of challenges in the personnel affairs domain of our customer companies
by utilizing full-line service portfolios, in addition to further refining each of our service lines. Concurrently with theimplementation of diverse sales-related measures, we will put into practice a strategy to enhance recognition of the Group.
TEMP REPORT

4

Message from Management

Business Overview by Segment

Corporate GovernanceTemporary Staffing/BPO segment
Net sales (Billions of yen)

Measures Taken by the Company
The Company is firmly determined to build solid corporate
systems to secure the transparency and soundness ofmanagement, as well as a corporate culture in which theCompany acts based on social ethics and compliance with laws
and regulations, with the aim of maintaining trust from all
stakeholders surrounding the Temp Group, and becoming
capable of contributing to society.

Measuresto be taken• Transferring to a company with a committee
system, such as the Audit Committee.
• Appointing two independent outside directors• Clarifying the functions and roles of theBoard of Directors

We will continue to make our utmost efforts to improve thesystems to optimize the governance system from our perspective.

What Is the Corporate Governance Code?
The Corporate Governance Code sets forth the standards with which thecompany should comply for the purpose of realizing sustainable growthand improving corporate value, and at the same time, it provides thebasis on which the company relies for dialogues with investors andshareholders. Although it is unenforceable, listed companies are required
to comply with the Code, based on the “Comply or Explain” principle, orotherwise to explain the reason for non-compliance to investors.
Basic Principle 1:295.9

UP 35.8%

Secure the rights and equality of shareholders.

Basic Principle 2: Collaborate properly with stakeholders other thanshareholders.

Basic Principle 3:

401.8

Disclose information properly to secure transparency.

FY2014FY2015

Operatingincome%UP 25.0

17.4 billion yen

Basic Principle 5:

Communications with shareholders

As for overseas business, we have further expanded our joint business with Kelly Services, our business partner in the
Asian market. In April 2016, both companies reached an agreement that the businesses of the respective Group would be
combined as a joint venture, naming it “TS Kelly Asia Pacific.” Accordingly, we will exert our efforts to raise our presence as ahuman resource service company in the Asia Pacific region.

Toward the Improvement of Corporate Governance
In June 2015, the Corporate Governance Code formulated by the Financial Services Agency and the Tokyo Stock Exchangecame into force. We will go forward while carefully considering what kind of corporate governance fits us. Masamichi Mizuta,
President, and Hirotoshi Takahashi, Executive Vice President, have already served outside the Company’s line of business,
focusing on the management of the Group. The Company plans to introduce the committee system such as the Board ofAuditors, and appoint two independent outside directors. In addition, we have clarified the functions and roles of the Boardof Directors so as to facilitate discussions on investments for the medium- to long-term growth of business and associated risks.

TEMP REPORTNet sales (Billions of yen)

24.0

23.8

UP 0.7%FY2014

Operatingincome1.5 billion yen

FY2015

UP 45.7%

On the back of the robust market
environment mainly in the automobile
industry, we continued to receive vigorous
demand for engineers specialized in thedesign, development and testing fields.
Reflecting an increase in contract services
and a strategic shift of resources to growthfields, net sales grew to record a netincrease after offsetting the decrease dueto the transfer of some businesses to the
ITO segment in the previous fiscal year.
As to profits, operating income soared
significantly as a result of a rise in thepercentage of higher value-added contract
services, and an increase in the average unit
price reflecting price negotiations.

Basic Principle 4: Responsibilities of the Board of Directors, etc.

ITO segment
Net sales (Billions of yen)

5

Net sales surged significantly, reflecting
robust demand arising from continued
brisk corporate activities, in addition to
the favorable effects of our businessexpansions through share acquisitions ofPanasonic Excel Staff Co., Ltd. and P&P
Holdings Corporation, etc. In terms of
profits, operating income also grewsignificantly, due largely to the increasein sales, despite a temporary increase in
expenses relating to share acquisition,and labor costs incurred in the businessexpansion and busy periods, as well as
an increase in the burden of expenses
borne with respect to social insurance
premiums for workers dispatched by
us and employees of the Group companies.

Engineering segment

24.7

22.4

UP 10.0
FY2014

Operatingincome1.8 billion yen%

FY2015

UP 8.0

We observed robust demand for SI-related
services, sales marketing services, newenergy services, etc., reflecting theheightened appetite for investments insystem-related services, etc., by ourcustomer companies. Accordingly, net sales
increased steadily. In terms of profits,
operating income recorded an increase asa result of a rise in contract unit prices due
to increases in highly professionalized sales
marketing services, consulting services, etc.

Recruiting segment
Net sales (Billions of yen)

71.7
62.2

UP 15.4
FY2014%

Operatingincome6.6 billion yen%

FY2015

UP 34.8

On the back of the continued brisk
economic environment, net sales grewsteadily as a result of receiving robust
demand in both the career and media
divisions. As for profits, operating income
soared, helped largely by the effect ofgrowth in sales, although we increased
personnel to expand contact points
between our customer companies and job
seekers in response to demand, andinvested in websites in pursuit of higher
convenience and improved visibility, and inother measures to realize differentiation,such as the promotion of commercial
messages, etc.

%

TEMP REPORT

6

Overview of Consolidated
Financial Results

Please visit our website for more detailed IR information.
The website of Temp Holdings Co., Ltd.

Net Sales

Operating Income(Billions of yen)

Profit Attributable to
Owners of Parent Company(Billions of yen)

Dividend per share

http://www.temp-holdings.co.jp/

Balance Sheet
Assets(yen)(Billions of yen)(Billions of yen)

19.0

700.0

564.0

600.0

517.5

(forecast)

28.0

30.0

InterimYear-end
dividend dividend

13.4

23.4

401.0

FY 2014

400.0

200.0

UP 2

9.1%

UP

9.0%
10.0

14.00

18.00

POINT 1
Decreased due topayment for M&A

9.5%
UP 1

UP 6

.9%
UP 2

9.3%

. 5%
UP 9

FY 2015

18.00

(*)

7.00

POINT 2
Increased due to M&A

100.0
0

FY 2014

FY 2015

FY 2016

Reflecting busier operations and more
intensified recruitment activities brought
about by increased corporate earnings,
the employment-related indicescontinued to improve, maintaining
demand for human resource services
centering on temporary staffing andrecruitment support on an upward trend.
Under these circumstances, net sales
showed a year-on-year increase of 29.1%,
to 517.5 billion yen for the fiscal year
under review, as a result of our efforts tofurther improve the segment functions
and enhance services and businessexpansion by centering on collaboration
with the Group companies and M&As.

7

TEMP REPORT0

FY 2014

FY 2015

FY 2016

In each segment, we increased personnel
and invested in websites in pursuit ofhigher convenience and improved
visibility of services. However, net sales
soared mainly in the Temporary Staffing/
BPO segment and the Recruiting segment,
and the profit margin increased in thesame segments. As a result, operating
income for the fiscal year under review
rose 19.5% year on year, to 28.0 billion yen.

0

FY 2014

FY 2015

FY 2016

Profit attributable to the owners of theparent company for the fiscal year underreview was 17.3 billion yen, a year-on-yearincrease of 29.3%, reflecting extraordinary
income arising from the amendment to
the retirement benefits system in addition
to the growth in operating income, etc.

FY 2016

7.00(forecast)

7.00(forecast)

POINT 3

7.5

130.6

130.6

0

60.6

51.2

(9.4)

Non-current assets

97.9

105.6

7.6

Trademark andgoodwill

77.0

80.4

3.3

Liabilities

124.6

102.7

(21.9)

3 Current liabilities

86.5

67.4

(19.0)

Current assets

1

Considering the steady growth inperformance, we have increased theyear-end dividend for the fiscal year
ended March 31, 2016 from the initiallyplanned 6 yen per share to 7 yen, an
increase of 1 yen. Please note that the
7 yen per share for the year-end dividend
corresponds to 21 yen, if the stock split
had not been taken into consideration.

2

Cash and deposits

38.1

35.2

(2.8)

Convertible bond-typebonds with stockacquisition rights

14.7

0.8

(13.9)

Long-term loans
payable

13.9

24.9

11.0

103.9

133.5

29.5

Shareholders’ equity

98.5

127.2

28.6

Capital stock

10.0

17.0

6.9

Capital surplus

13.6

20.5

6.8

Retained earnings

73.4

88.1

14.6

Non-controlling interests

5.4

6.2

0.8

Non-current liabilities

Net Assets

POINT 4
Increase in net income

4■Non-current assets

250.0

236.2

Repayment of loans payable(*) As a result of the stock split, theforecast of year-end dividend has
been revised. The Company
implemented a three-for-one stock
split of shares of common stock,with October 28, 2015 as the basedate, and October 29, 2015 as theeffective date.

Change228.6

Assets

10.0

20.0
300.0

March 31, 2015 March 31, 2016

17.3

30.0

(forecast)

500.0(forecast)

20.0

40.0

(Billions of yen)■Current assets

200.0

130.6

130.6

50.0

97.9

105.6

0

March 31, 2015

March 31, 2016

150.0

100.0

Liabilities and Net Assets(Billions of yen)■Current liabilities ■Non-current liabilities ■Net assets
250.0

200.0

150.0

86.5

67.4
35.2

38.1

100.0

50.0

0

103.9

March 31, 2015

133.5

March 31, 2016

TEMP REPORT

8

The Temp Group’s
CSR Activities

The Temp Group is engaged in a wide range of social
contribution activities through the human resource business.

Information

Company Profile

To provide assistance to womenregarding the challenges they faceand help them play active roles
The domestic training program for recipients of the Temp
Group Challenge Women Scholarship 2016 was conducted.
“The Temp Group Challenge Women Scholarship” is a scholarship program
aimed at providing assistance to adult women regarding the challenges they
face. In March, the 10 scholarship recipients selected from among 450
applicants participated in the domestic training sessions.

For revitalizing local society
We launched the website “agriju” to provide
information on starting farming (“agri”) in, andmoving (“iju”) to, local society.
This website was launched with the aim of supporting those
who are interested in moving to, and starting farming in, local
areas with respect to specific matters on considering moving
and starting farming, as well as putting the idea into practice.
We help them take the first step in moving and starting farming,and give assistance to revitalize local society.
(This is a service jointly offered by Intelligence, Ltd. and Life Lab, Inc.)

Stock Information(As of March 31, 2016)

Temp Holdings Co., Ltd.

●Total number of shares issued: 235,791,100

Established:

October 1, 2008

Head Office:2-1-1 Yoyogi, Shibuya-ku,
Tokyo, Japan

Type ofBusiness:

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

Capital:●Authorized number of shares: 720,000,000

17,055 million yen

Members of the Board(As of March 31, 2016)

Chairman and Director:

Yoshiko Shinohara

Vice Chairman and
Director:

Mikihiko Hibino

President andRepresentative Director:

Masamichi Mizuta

Executive Vice
President and Director:

Foreign companies, etc.

Financial institutions

71,572,744（30.35%）

46,712,200（19.81%）●Number of shareholders: 7,605

Financial instrumentbusiness operators●Major shareholders:Name of shareholder
Yoshiko Shinohara

1,868,678（0.79%）

NumberShareholding
ratio (%)
of shares held
57,831,600

24.66

The Yoshiko Shinohara
Memorial Foundation

12,300,000

5.24Japan Trustee
Services Bank, Ltd.
(Trust Account)

10,337,100

4.40

Kelly Services Japan, Inc.

9,106,800

3.88

Other
companies, etc.

Treasury stock
1,288,875（0.55%）

Individuals, others
85,242,223（36.15%）

29,106,380（12.34%）

Shareholder Information

8,589,600

3.66

BNYM TREATY DTT 15

5,645,702

2.40

Hirotoshi Takahashi

Yoshimi Shinohara

5,438,400

2.31

Director:

Takao Wada

5,046,043

2.15

Director:

Carl T. Camden

THE BANK OF NEW
YORK, NON-TREATYJASDEC ACCOUNT

To expand employment and active roles of the mentally challenged

Full-time Auditor:

Hiroshi Shimazaki

The Bank ofTokyo-Mitsubishi
UFJ, Ltd.

3,696,000

1.57“One-Stop Services for Employment of the Mentally Challenged” was launched by Frontier Challenge Ltd.

Auditor:

Kaoru Arai

Woman Staff Ltd.

3,618,000

1.54

Auditor:

Ryosuke Tamakoshi

Auditor:Naoshige Shindo

TEMP REPORTDistribution of Shareholders (As of March 31, 2016)(Shares)CompanyName:

The Master Trust Bankof Japan, Ltd.
(Trust Account)In response to the revision to the basic calculation method of the statutory employment rate slated for 2018, we will improve support systems
to expand the employment of mentally challenged people.
The one-stop service will be launched with the aim of improving the retention rate and enhancing the skills of mentally challenged employeeswith support for creating assignments, making preparations to receive them, matching such employees with work based on their individual
aptitudes, and providing follow-up services for workplace assimilation.

9(As of March 31, 2016)

Business year

From April 1 to March 31 of the following year

Annual general
meeting ofshareholders

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* The shareholding ratio is calculated based on
the number of shares (234,502,225) obtained bydeducting the number of shares in the treasury
stock from the total number of shares outstanding.

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081,
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

Method ofpublic noticeElectronic public notices
URL: http://www.temp-holdings.co.jp/(When electronic public notices are notpossible due to accidents or other unavoidable
circumstances, announcements will appear in
the Nihon Keizai Shimbun newspaper.)

TEMP REPORT

10