Briefing on Financial Results for the
Fiscal Year Ended March 31, 2014
May 21, 2014

Contents

P3

Part 1: Outline of Consolidated Financial Results

P14

Part 2: Mid-term Management Strategy of the Temp Group[Reference material (1)]The Environment Surrounding the Personnel Service Industry

P28

Part 3: Forecast for the Fiscal Year Ending March 31, 2015
[Reference material (2)]Outline of the Temp Group2
Copyright (C) since 2014 Temp Holdings Co., Ltd. All rights reserved.

Part 1:
Outline of Consolidated Financial Results

FY March 2014: Sales by Segment＋5.7％

186,748

197,418

Temporary Staffing and
Recruitment Services
2013/3

2014/3*Rounded down (Units: million yen, %)＋41.5％

30,106＋8.3％

42,60525,71989,272

27,845

4,657

Media and Career

Outsourcing

IT and Engineering
2013/3＋14.8％

2014/3

2013/3(Intelligence Group)
2014/3

2014/3

2013/3
Sales

5,347

Other Businesses
2013/3

2014/3

2014/3
Ratio

Sales

Ratio

ChangeYoY

Temporary Staffing and Recruitment Services

186,748

75.5

197,418

54.5＋10,669

105.7

IT and Engineering

30,10612.2

42,605

11.7＋12,498141.5

Outsourcing

25,71910.4

27,8457.7＋2,126

108.3

－

－

89,272

24.6＋89,272－

Media Div.

－－

18,2075.0＋18,207－

Career Div.

－－19,393

5.4＋19,393－

Temporary staffing Div.

－－32,0278.8＋32,027－

Outsourcing Div.

－－13,361

3.7＋13,361－

Employment development, new business, overseas Div.

－

－

6,282

1.7

＋6,282

－

4,657

1.9

5,347

1.5

＋689

114.8

247,232

100.0

362,489

100.0＋115,256

146.6

Media and Career (Intelligence Group)

Other Businesses
Total* We renamed the former R&D Outsourcing Segment as the IT and Engineering Segment from the Fiscal Year ending March 2014. Simultaneously, we changed the allocation of subsidiaries to each segment. Figures for the fiscal year ended March
31, 2013 have been recalculated following the change in segment structure. In addition, the DTP and CAD businesses have been transferred among subsidiaries since November 2013. Therefore, the actual performance of the fiscal year ended
March 31, 2013 has been changed in accordance with the change in segments.

4

FY March 2014: Consolidated Statements of Income*Rounded down (Units: million yen, %)＋46.6％＋89.2％
247,232＋67.4％

362,489

18,597
9,832

Sales
2013/3

5,888

Operating income
2014/3

2013/3

2013/3Ratio

Net income

2014/3

2014/3

9,857

2013/3

Ratio

ChangeYoY

2014/3

2014/3 Plan
at start of term

2015/3
Forecast

Sales

247,232

100.0

362,489

100.0＋115,256146.6

365,000

390,000

Cost of Sales

207,768

84.0

277,147

76.5＋69,379

133.4

－

－

Gross Profit

39,46416.0

85,341

23.5＋45,877

216.3

－

－

Selling, General and Administrative
Expenses

29,631

12.0

66,743

18.4＋37,111

225.2

－

－

Operating Income

9,832

4.0

18,597

5.1＋8,765189.2

18,50021,000EBITDA

11,240

4.5

24,951

6.9＋13,710222.0

24,94926,932

Ordinary Income

10,102

4.1

18,4705.1＋8,367182.8

18,30021,000Net Income

5,888

2.4

9,857

2.7

＋3,969

167.4

9,000

12,0005

FY March 2014: Consolidated Balance Sheets
2013/3
Actual*Rounded down (Units: million yen, %)2014/3
Ratio

ActualRatio

ChangeAssets97,592100.0

177,433

100.0＋79,840

Current assets

80,60682.6

87,46349.3＋6,856(Cash and Deposits)

44,22545.3

36,292

20.5△7,933(Notes and accounts receivable-trade)

31,99732.8

44,04624.8＋12,048

16,98517.4

89,96950.7＋72,984(Right of trademark)－－11,6606.6＋11,660(Goodwill)

2,162

2.2

57,08932.2＋54,926

Liabilities

33,13634.0

87,62949.4＋54,492

Current liabilities

29,17829.9

44,15424.9＋14,976(Short-term loans payable)

16

0.0

143

0.1

＋126

(Current portion of long-term loans payable)

－

－

4,640

2.6

＋4,6403,958

4.1

43,47424.5＋39,516(Long-term loans payable)－－

18,56010.5＋18,560(Convertible bond-type bond with stock acquisitionrights)－－

15,0008.5＋15,000

Net assets

64,45566.0

89,803

50.6＋25,348

Owners’ equity

60,83062.3

85,38048.1＋24,550(Capital stock)

2,000

2.0

9,980

5.6

＋7,980(Capital surplus)

5,501

5.6

13,572

7.6＋8,071(Legal retained earnings)

53,68255.0

62,14035.0＋8,457

2,556

2.6

2,829

1.6

＋273

Non-current assets

Non-current liabilities

Minority interests(Assets)
Significant growth due to M&As

(Right of trademark, Goodwill)
Increased due to M&As

(Short-term loans payable)
Bridge finance at the time of M&As
decreased due to funding due toissuance of CB and new shares(Long-term loans payable)
Refinanced in March 2014

(Convertible bond-type bond withstock acquisition rights) CBs worth
15,000 million yen were issued in
2Q(Capital stock, Capital surplus)
Funding through issuance of 8
million new shares in 2Q

6

FY March 2014: Consolidated Cash Flow
*Rounded down (Units: million yen, %)2013/3・Income before income taxes

2013/3
Net cash provided by operating
activities

7,787

2014/3

10,863

Change＋3,076

10,019⇒17,302

・Depreciation

605

⇒

2,550

・Amortization of goodwill

910

⇒

3,943

・Increase (decrease) in trade receivable

△378

⇒

△1,493・Increase (decrease) in operating debt

225⇒

△3,967△5,252⇒△9,089△425⇒△49,686

・Increase in short-term loans payable－⇒

35,303

・Decrease in short-term loans payable△57⇒△35,053

・Increase in long-term loans payable－⇒

23,200・Decrease in long-term loans payable△74⇒△20,676・Proceeds from issuance of bonds－⇒

14,975・Proceeds from issuance of common
stock

－

⇒

15,942・Income taxes paid

Net cash used in investment
activities
Net cash used in financing
activities
Increase (decrease) in cash andcash equivalents△964△1,018

5,901△51,306

32,294△7,867

2014/3△50,342

33,312△13,768

・Purchase of investments in
subsidiaries resulting in change in scope of
consolidation

7

Transition of Quarterly Business Results

120,000

Operatingincome

Sales

7,000
6,000

100,000

5,000

2012/3 Sales

80,0002013/3 Sales

4,000

2014/3 Sales

60,0002012/3 Operating income

3,000

2013/3 Operating income

40,0002,000
20,0002014/3 Operating income

1,000*Rounded down (Units: million yen, %)

0

0
1Q

2Q

3Q

2012/3

4Q

2013/3

2014/3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

YoY

2Q

YoY

3Q

YoY

4Q

YoY

Sales

56,52056,75557,56562,35460,53360,96663,32062,41186,091142.2

88,328144.9

91,679144.8

96,389154.4

Cost of Sales

47,34048,242

48,64052,20350,856

51,61852,91552,37666,006129.8

67,779131.3

70,246132.8

73,115

139.6

Gross Profit

9,179

8,513

8,925

10,151

9,676

9,348

10,404

10,03420,085207.6

20,548219.821,432206.0

23,274231.9

Gross Profit Rate

16.2

15.0

15.5

16.3

16.0

15.3

16.4

16.1

23.3

－

23.3

－

23.4

－

24.1

－

SGA

7,208

6,997

6,967

7,425

7,275

7,193

7,378

7,784

16,176222.3

16,951

235.7

16,423222.6

17,191

220.9

Operating
Income

1,971

1,515

1,957

2,725

2,400

2,154

3,025

2,250

3,909

162.8

3,597

167.0

5,008

165.5

6,082

270.3

Operating
Income Ratio

3.5

2.7

3.4

4.4

4.0

3.5

4.8

3.6

4.5

－

4.1

－

5.5

－

6.3

－

8

FY March 2014: Transition of Business Results by Segment (1)*Rounded down. (Units: million yen, %), △= Negative value, Sales are those after eliminating internal transactions, and operating income is that before eliminating internal transactions.
* We renamed the former R&D Outsourcing Segment as the IT and Engineering Segment from the Fiscal Year ending March 2014. Simultaneously, we changed the allocation of subsidiaries to each segment. Figures for the fiscal year ended March 31, 2013 have been recalculated following thechange in segment structure. In addition, the DTP and CAD businesses have been transferred among subsidiaries since November 2013. Therefore, the actual performance of the fiscal year ended March 31, 2013 has been changed in accordance with the change in segments.

1 Temporary Staffing and Recruitment Services
Sales of the previous year

2

Sales of the current year

IT and Engineering
Sales of the previous year
Operating income of the previous year

Operating income of the previous year

Sales of the current year
Operating income of the current year
OperatingincomeSales

Operating income of the current year
OperatingincomeDemand remained at high levels.

Sales

52,000

Increases in both sales and profit.

3,000

12,00050,0002,500

10,000500

48,000

2,000

8,000

400

46,000

1,500

6,000

300

44,000

1,000

4,000

200

500

2,000

42,00040,000

YoY
Sales

YoY
Sales

YoY
Sales

YoY
Sales

102.9%

105.4%

105.8%

108.7%

1Q

1Q

2Q

2Q

3Q

3Q

0

0

4Q

4Q

Full year

47,055

186,748

2014/347,35047,96650,95351,148

197,418

Operatingincome2013/3

2,110

1,366

2,161

1,437

7,076

2014/3

2,112

1,619

2,388

2,147

8,268

EBITDA

2013/3

2,307

1,563

2,319

1,743

7,933

2014/3

2,333

1,845

2,559

2,358

9,096

YoY
Sales

YoY
Sales

138.2%

141.4%

141.3%

145.5%

1Q

2Q

3Q

4Q

2Q

3Q

4Q

100

0

Full year

2013/3

7,666

8,003

7,287

7,149

30,106

2014/3

10,593

11,313

10,298

10,39942,605

2013/3

208

297

446

392

1,345

2014/3

217

490

242

501

1,452

EBITDA

48,156

YoY
Sales

Operatingincome45,502

600

YoY
Sales

1Q

2013/3

271

360

545

420

1,597

2014/3

391

686

447

688

2,213

Sales

46,034

Sales

2013/3Significant increase
due to M&A effects

9

FY March 2014: Transition of Business Results by Segment (2)*Rounded down. (Units: million yen, %), △= Negative value, Sales are those after eliminating internal transactions, and operating income is that before eliminating internal transactions.
* We renamed the former R&D Outsourcing Segment as the IT and Engineering Segment from the Fiscal Year ending March 2014. Simultaneously, we changed the allocation of subsidiaries to each segment. Figures for the fiscal year ended March 31, 2013 have been recalculated following thechange in segment structure. In addition, the DTP and CAD businesses have been transferred among subsidiaries since November 2013. Therefore, the actual performance of the fiscal year ended March 31, 2013 has been changed in accordance with the change in segments.

Outsourcing

3

Sales of the previous year
Operating income of the previous year
Sales

Sales of the current year
Operating income of the current year

Improved profitability due tothorough cost control

8,000Media and Career (Intelligence Group)

4

7,000
6,000

Sales of the previous year
Operating income of the previous year
Operating

Sales

Sales of the current year
Operating income of the current year Operating
incomeincome
700

30000

600

25000

2,500

20000

2,000

15000

1,500

10000

1,000

5000

500

500

3,000

Performance is robust

5,000
400
4,000
300
3,000
200

2,000
1,000
0

100

YoY
Sales

YoY
Sales

YoY
Sales

YoY
Sales

112.6%

109.2%

106.3%

105.7%

1Q

2Q

1Q

3Q

2Q

3Q

0

0

4Q

0
1Q

4Q

Full year
7,081

25,7192014/3

6,532

6,816

7,010

7,485

27,845

Operating
Income2013/3

26

292

257

395

973

2014/3

68

270

258

585

1,182

EBITDA

2013/3

74

340

313

442

1,171

2014/3

109

315

299

627

1,352

2Q

4Q

3Q

4Q

Full year

2013/3

－

－

－

－

－

2014/3

20,333

20,78922,02826,121

89,272

2013/3

－

－

－

－

－

2014/3

1,451

1,272

2,009

2,822

7,555

EBITDA

6,592

3Q

Operating
Income6,242

1Q

2013/3

－

－

－

－

－

2014/3

2,547

2,400

3,158

3,961

12,068

Sales

5,802

Sales

2013/32Q

10

FY March 2014: Transition of Business Results by Segment (3)*Rounded down. (Units: million yen, %), △= Negative value, Sales are those after eliminating internal transactions, and operating income is that before eliminating internal transactions.
* We renamed the former R&D Outsourcing Segment as the IT and Engineering Segment from the Fiscal Year ending March 2014. Simultaneously, we changed the allocation of subsidiaries to each segment. Figures for the fiscal year ended March 31, 2013 have been recalculated following thechange in segment structure. In addition, the DTP and CAD businesses have been transferred among subsidiaries since November 2013. Therefore, the actual performance of the fiscal year ended March 31, 2013 has been changed in accordance with the change in segments.

Other Businesses

5

Sales of the previous year

Sales of the current year

Operating income of the previous year

Operating income of the current year
OperatingContinued expansion especially
incomeSales

in outplacement support

1,600

160

1,400

140

1,200

120

1,000

100

800

80

600

60

400

40

200

YoY
Sales

YoY
Sales

YoY
Sales

YoY
Sales

124.6%

118.4%

108.0%

109.7%

0

20
0

1Q

2Q

1Q

3Q

2Q

3Q

4Q

4Q

Full year

1,029

1,217

1,285

1,125

4,657

2014/3

1,281

1,442

1,388

1,234

5,347

Operating
Income2013/3

16

145

140

17

320

2014/3

28

151

103

23

306

EBITDA

2013/3

42

171

168

39

421

2014/3

54

167

120

46

389

Sales

2013/311

Transition of Business Results*Rounded down (Units: million yen, %)390,000
362,489

21,00018,597247,232
245,062

224,613225,273

233,195

8,908
6,343

8,170

9,832

5,748

Sales

Operating Income

2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

2009/3
Sales
Operating Income
Operating Income Ratio
Ordinary Income
Ordinary Income Ratio
Net Income
Net Income Ratio

2010/3

2011/3

2012/3

2013/3

2015/3

2014/3(forecast)

245,062

224,613225,273

233,195

247,232

362,489

390,000

8,908

6,343

5,748

8,170

9,832

18,59721,000

3.6

2.8

2.6

3.5

4.0

5.1

5.4

9,245

6,734

6,231

8,434

10,102

18,47021,000

3.8

3.0

2.8

3.6

4.1

5.1

5.4

4,076

2,950

2,410

3,482

5,888

9,857

12,000

1.7

1.3

1.1

1.5

2.4

2.7

3.1
12

Dividend Policy

The year-end dividend for the fiscal year ended March 2014 was 14 yen per share, an increase of
4 yen compared to the previous term.
The full year dividend for the fiscal year ended March 2014 was 24 yen per share (interim: 10 yen,
year-end: 14 yen), an increase of 6 yen on a full-year basis compared to the previous term.
The full year dividend for current term are planned to be 28 yen (interim: 14 yen, year-end: 14yen), and increase of 4 yen on a full-year basis compared to the previous term.

2013/3Per share

2014/3

2015/3

InterimYear-end

Full year

InterimYear-end

Full year

8 yen

10 yen18 yen

10 yen14 yen24 yenInterimYear-end

Full year(forecast)(forecast)(forecast)

14 yen14 yen28 yenCash dividend
paid

1,133 million yen

1,754 million yen－

Dividend ratio(consolidated)

18.6％

16.9％

17.1％

Dividends on net
assets(consolidated)

2.0％

2.2％

－
13

Part 2:Mid-term Management Strategy of the
Temp GroupCorporate Philosophy and Slogan<Corporate Philosophy of the Temp Group>

Creating Jobs, Adding Value to Individuals,
and Contributing to Society<Slogan of the Temp Group>

Helping people fulfill dreams and findhappiness through work

15

The Environment Surrounding the Temp Group and the Role of a Personnel Service Company
Environment surrounding the Temp GroupA declining labor force due to changes in the
demographic structure

Labor mismatch due to the shift in industry
structures

Diversification in work patterns and anincrease in non-regular employment

Revisions/changes in laws and regulations

Low labor participation rates of women in their
30s and 40s

Companies’ overseas expansion and an increase in
those seeking jobs abroad

The Temp Group’s ideas of social roles expected of a personnel service company
To establish a business portfolio that is not affected by businessfluctuations, and to achieve high growthTo support career development through matching and employment
management in order to overcome the barriers of sex and age inrecruitment and employment

To realize the transfer of labor without unemployment, from matureindustries to growth industries in cooperation with the state andlocal government

Sophistication of the personnel service industry throughpersonnel development

The Temp Group is expected to become a “company that offers personnel service as a social
infrastructure” to an unprecedented level
16

The Ideal Form of the Temp GroupA company that offers personnel service as a
Support managementsocial infrastructure
Support life plans
through work
Old

Old age

Retirement

Marriage,childbirth

Employment

Young

Student

Support future
life design throughrecruitment according
to marriage andchanges in the family
composition
Support careerdevelopment
through recruitmentthat is meaningful
throughout the
futurePursuit of overall
strength×

Pursuit of true nature

Diagnosis

Classified
ads

FusionLife stage

CareerchangeSupport a richsenior life throughrecruitment that
can take advantage ofthe experience in
one’s career

Employment mobility: Realize the transfer of labor in order to respondflexibly to the shift in industry structures
Employment stability: Improve the mismatch of employment and expand
appropriate working opportunities

・・・

Job
seekers

Recruitment
Temporarystaffing

Extract issues
FormulatesolutionsOutsourcing

Implement
RegionMajor Overcities seas

Companies

through humanresources

Support overseas
expansion by supplying
global personnel

Support the realizationof a growth strategy bysupplying corepersonnel and otheroptimal personnel

Support vitalization of
local firms and gov’ts
by supplying personnel
rooted in thecommunity

Global companies

Large companies
Mid-sized companies

Local companies
Local governments

17Mid-term Basic Policy

Aim to Become No.1 in the“number of users” and “number of
employed persons”

18Outline of the Mid-term Management Strategy
Strategy 1We will change our segment structure from five segments to seven in order to accelerate decision-making and realize appropriate resource
allocation.
We will re-establish governance by integrating the back office and middle office divisions as well as enhancing the indirect functions of Temp
Holdings.

Strategy 2Enhance capability to offer solutions in outsourcing services

We will improve the service level by accumulating know-how in outsourcing services (BPO, ITO, engineering).
We will enhance the training of engineers and strengthen recruitment abilities through the cooperation of Group companies.

Strategy 5
Gain more users in the Media and Career segment

We will maximize contacts with users through aggressive investment in the Media and Career segment.
We will promote integration of the Group mainly in the Asian region at the North Asia and South Asia managing companies.

Strategy 4Increase the number of employed persons through investment in the Temporary
Staffing segment and improved productivity

We will achieve continued growth based on trust and a sense of security in the Temporary Staffing segment and expansion in scale through M&As.
We will realize stable employment by securing as much employment data on women, youth, the elderly, engineers, etc. as possible.

Strategy 3

Optimize the Group’s management and segment structure

Generate group synergy

By offering a full line-up of services and strengthening cooperation between segments, we will realize life plan support by providing work for job
seekers and management support by providing human resources to companies.
19

Overview of the Mid-term Management Strategy
No.1 in thenumber ofusers and
employed
persons

Sales size

Phase 2Phase 1500.0 billion yen

 Appropriate Group management and segment structure Integrate the back office and middle office divisions
 Enhance the functions of Temp Holdings

390.0 billion yen

362.4 billion yen

2014/3Phase 1: Enhancement/establishment of amanagement platform

Phase 2: A shift to a growth-oriented
management

2015/3The period of the current mid-term plan

2017/3

 Increase the number of employed persons throughinvestment in the Temporary Staffing segment andimprovement in productivity
 Increase the number of users in the Media and Career
segment
 Strengthen the ability to offer solutions in outsourcing
service Generate group synergy
20

A Shift to a Segment Structure
Only indicates major companies andbusinesses for each business*As of March 31, 2014

IT & Engineeringbusiness

Temporary Staffing and
Recruitment businessOutsourcing businessMedia and Careerrelated business

Other Businesses

the management structure will shift to thefollowing segment structure.

From April 2014,

Only indicates major companies andbusinesses for each businessTemporarystaffing

BPO*1

ITO*2

Engineering

Media

Career

NED*3

Overseassubsidiaries*1 BPO: Business Process Outsourcing *2 ITO＝IT Outsourcing *3 NED＝New Employment Development

21

Numerical Targets

2014/3(Actual)2017/3(Target)Sales

362.4 billion yen

500.0 billion yen

Operatingincome18.5 billion yen

30.0 billion yen

EBITDA
margin6.9%

8.0%

Operatingincome ratio

5.1%

6.0%
22

[Reference material (1)]The Environment Surrounding
the Personnel Service Industry

23

[Reference material (1)] The Environment Surrounding the Personnel Service Industry (1)The shift in industry structures is accelerating while a shortage of personnel is expected especially in the young
generation, due to the decreasing birthrate and aging population as well as the retirement of babyboomers.
Shifts in demographic composition:
Retirement of employees with advanced skills; a rise in theoutlook of shortage of young personnel
Demographic composition by age(thousandpersons)

Retirement of the babyboom generation

A shift in industry structures: An increase in companies andindividuals that cannot adapt to the speed of the shift toward
a service economy
Transition of the number of employed(10,000
persons by industry
Forecast

persons)

Information/ser
vice industry

Manufacturing/constructionindustry(Productive age)
Source: “Nihon no Toukei 2014” Statistics Bureau, Ministry of Internal Affairs and Communication

Source: “Paradigm Shift in Developed Era” Recruit Works Institute24[Reference material (1)] The Environment Surrounding the Personnel Service Industry (2)While the number of non-regular workers is increasing, it is necessary for companies to change swiftly according to newrules since the market changes in accordance with laws and regulations.
A shift in the types of employment:
An increase in non-regular employment, diversification of
employment types

A shift in the temporary staffing market:
Shift in the market due to laws and regulations
Year

No. of employees by type of
employment(10,000
persons)

Non-regular employee
Regular employee
Non-regular employee ratio

6,000

1986

 Worker Dispatch Law enforced

1996

 Target jobs expanded to 26 jobs

1999

 Target jobs liberalized in principle (only prohibited jobs designated)
Dispatch period: specialist jobs: 3 years; liberalized jobs: 1 year

40%

2000

 Ban on Employment Placement Dispatching lifted

35%

2004

 Dispatch period of liberalized jobs extended to 3 years
 Dispatch period of specialized jobs changed to “unlimited”
 Ban on dispatch to manufacturing jobs lifted (period 1 year)2006 Ban on dispatch to medical-related jobs partially lifted

2007 Dispatch period to manufacturing jobs extended to 3 years

2012 Day labor dispatch prohibited in principle
 Employment of personnel who left the job within the prior year at thesame workplace as temporary staff is prohibited2015(plan)

 Acceptance of the same person as temporary staff for more than 3
years is prohibited Dispatch period changed to “unlimited” if not the same person
 All temporary staffing firms to operate under a government license

50%
45%

5,000

4,000

30%
3,000

25%
20%

2,000

15%
10%

1,000

5%
0

Description

0%
1984

1989

1994

1999

2004

2009

Source: Long-term time series data Table 9 (Employee by age group and type of employment) of the “Labour Force
Survey” Ministry of Internal Affairs and Communication

Source: “The History of Temporary Staffing” on website “Nihon no Jinjibu (Japan’s HR Department)”25

[Reference material (1)] The Environment Surrounding the Personnel Service Industry (3)Japanese women’s labor force participation rate by age group shows an M-shaped curve. Many women are
hoping to work and are expected as a rich potential labor force.

100

Women’s labor force participation rate by age group:
Rich potential labor force centered around women in their 30s, which is a child-rearing age
Women’s labor force participation rate by age group(international comparison)
Japan

90

Germay87.8South Korea
80

70

Sweden76.4

U.S.A.

74.4
67.6

60

50

53.7
40

30

20

10

0
15–19 yrsold

20–24 yrs

25–29 yrsold

30–34 yrsold

35–39 yrsold

40–44 yrsold

45–49 yrs
oldSource: “White Paper on Gender Equality 2012” Cabinet Office50–54 yrsold

55–59 yrsold

60–64 yrs
old65 yrs old or
older

26

[Reference material (1)] The Environment Surrounding the Personnel Service Industry (4)Competition for global personnel has intensified due to Japanese firms’ expansion into Asia. Since overseas-oriented
individuals have also increased, the know-how to support the employment mobility of borderless global personnel isrequired.
A shift in global awareness:
The progress of Japanese companies expanding abroad, mainly in Asia, and the rise in those who wish to work abroad
No. of overseas local corporations ofJapanese companies by region(Companies)
24,00021,000Asia’s ratio

70%(cases/per
sons)
45,00065%

40,00018,00035,00060%

15,00012,000

求人数(人)
Number of job openings (persons)

30,00055%

EuropeAn increase inindividuals whowish to work abroad

20,00050%

Asia

15,000A system tosupport global
personnel isurgently needed.

10,000
45%

3,000

North
0 America
02

新規求職申込件数(件)Number of applicants for new jobs (cases)

25,000

Other

9,000
6,000

Employment placements abroad

03

40%
04

05

06

07

08

09

10

11

12

Source: “Confirmed report on the outline of the results of the basic survey on overseas business activities” Ministry of
Economy, Trade and Industry

5,000
001-03年度
FY01-03

04-06年度
FY04-06

07-09年度
FY07-09

10-12年度
FY10-12Source: “Aggregation results of the business reports on worker dispatching undertaking” Ministry of Health, Labourand Welfare

27Part 3:
Forecast for the Fiscal Year Ending
March 31, 2015

Temporary Staffing Segment
Segment Overview
OutlineMajor Group
companies

Segment Strategy

Offers temporary staffing services nationwide
with strengths in localized operations,specialized jobs and specific companies[Localized operations]
Tempstaff, Intelligence Temporary Staffing Div., Tempstaff People,
Tempstaff Fukuoka, Tempstaff Familie, Tempstaff Grow
[Specialist jobs]
Tempstaff Technologies, Tempbros, Personal, Tempstaff Creative,
Tempstaff Plus, TEMPSTAFF CROSS[For specific companies]
Tempstaff Media, Kobelco Personnel, Support-A

indicates expenses allocated to the head office, which have been introduced since the fiscal year ending March 2015. The amount is statedin brackets.
Operating income YoY change and 2015/3 EBITDA are calculated by adjusting the head office allocated expenses.

2015/3 Forecast＋6.7％＋13.9％

268,500
251,660

11,219Sales
2014/3

Increase the number of employed persons
 Strengthen supply power (Enhance introduction
by friends, improve re-availability) Grow work information volume throughcooperation of Group firms
 Improve profit structure in view of amendment of
the Worker Dispatch Law

EBITDA margin

12,7795.2％
13,987

（979）

（979）

11,8005.0％

Operating income
2015/3

2014/3

2015/313,008

12,581

EBITDA
2014/3

2015/329

Impact of the Amendment of the Worker Dispatch Law
With the aim of enforcing the amended law in April 2015, the amendment was approved at a Cabinet meeting inMarch 2014 and is planned to be discussed during the current Diet session.

1. The shape of the specified worker dispatching business○ The classifications of specified worker dispatch undertaking (notification system) and the general worker dispatch undertaking (license system)
shall be abolished, and all worker dispatch undertaking shall be under a license system, in order to achieve healthy development of the worker
dispatching business.

2. The shape of the time limitations of worker dispatching○ The current system does not impose time limitations for the so-called 26 jobs such as specialist jobs, while other jobs are limited to one year inprinciple or three years as an exception. Since the time limitations have been difficult to understand, they shall be abolished and replaced with a time
limitation common to all jobs for individual dispatched workers (three years) and for each office to which the worker has been dispatched (three
years, with a possibility of extension in certain cases).*1○ The owner of the dispatching business shall be required to take measures toward stable employment such as offering new employment
opportunities (workplaces as dispatch destinations) to dispatched workers who are due to reach the new time limitation, if they request to continue
working.

3. The ideal form of securing balanced treatment of dispatched workers and promoting career
improvements○ Efforts to ensure balanced treatment of dispatched workers shall be strengthened at both the owner of the dispatching business and theworkplace to which the worker is dispatched.
○ Improvement of the careers of dispatched workers shall be promoted by requiring the owner of the dispatching business to provide systematictraining, etc.
*1 Time limitations for each individual: Continuous acceptance of the same dispatched worker at the same organization unit of the company where he/she is dispatched shall be limited
to three years.
Time limitations for each office: Continuous acceptance of the same dispatched worker at the same office of the company where he/she is dispatched shall be limited to three years.
However, extension shall be possible for an additional three years if opinions have been heard from a majority labor union, etc., before three years have passed since acceptance(the same shall apply subsequently).
Quoted from the website of the Ministry of Health, Labour and Welfare: “Bill for partial amendments to laws related to ensuring fair operation of the worker dispatch undertaking and the protection of dispatched workers” The bill for amendments to the Worker
30
Dispatch Law has been submitted to the 186th Diet session on March 11, 2014.

BPO* Segment*BPO: Business Process Outsourcing

Segment Strategy

Segment Overview
OutlineMajor Group
companies

Offers a wide range of outsourcing services
such as the operation of business processing
centers and call centers, and planning/operationof business processing[Operation of business processing centers, call centers] Tempstaff[Outsourcing of sales functions] Tempstaff Sales Support[Health guidance, health checkup support] Tempstaff Life Support[Business processing incl. software dev.] Japan IDEX[IT support (help desk, service desk)] HOWCOM[Pharmaceuticals’ safety information control business (PV)] PV NEXT
[Data input, business processing center] Suzhou Tempstaff Data

indicates expenses allocated to the head office, which have been introduced since the fiscal year ending March 2015. The amount is statedin brackets.
Operating income YoY change and 2015/3 EBITDA are calculated by adjusting the head office allocated expenses.

2015/3 Forecast

EBITDA margin＋6.0％＋29.2％

19,60018,485555
Sales
2014/3

Increase the number of employed persons
 Raise service quality by improving
operational abilities
 Utilize the sales channels of temporary
staffing
 Improve profitability by promoting inhouse, whole-out or a hybrid of both
operation types

717

763

（67）

（67）

650

695

Operating income
2015/3

2014/33.9％

3.8％

2015/3695
EBITDA

2014/3

2015/331

ITO* Segment*ITO: IT Outsourcing

Segment Strategy

Segment Overview
OutlineMajor Group
companies

Offers a comprehensive SI service fromconsulting to development/maintenance andoutsourcing services[System development, consulting]Intelligence Business Solutions[Software outsourcing development]
TOYO SOFTWARE ENGINEERING Expand scale of outsourcing throughimprovement in technical/specializationlevels Expand target areas of the service
 Develop a HITO*1 solution service
 Maximize business synergies within thesegment*1: “HITO” series
・ Part-timer recruitment management system, “HITO-Manager”
・ Talent management system, “HITO-Talent”

indicates expenses allocated to the head office, which have been introduced since the fiscal year ending March 2015. The amount is statedin brackets.
Operating income YoY change and 2015/3 EBITDA are calculated by adjusting the head office allocated expenses.

2015/3 Forecast＋26.5％

＋6.6％

1,944
1,536

Sales
2014/3

（94）

1,850

2014/3

2015/3

2,535

2,274

Operating income
2015/3

12.3％
2,630

11.4％

（94）

21,30019,988

EBITDA margin

EBITDA
2014/3

2015/332

Engineering Segment
Segment Strategy

Segment Overview

OutlineMajor Group
companies

Offers personnel and outsourcing
development services in the automobile
design development/testing, digital audio
visual equipment and software development
fields[R&D outsourcing (R&D support)] JAPAN TECSEED[Digital audio visual equipment software and system development
field] AVC Multimedia Software[Digital audio visual equipment software and hardware design
development field]
AVC Technology[Design/testing field of commercial vehicles and parts]
DRD

AVC

JAPAN
TECSEED＋47.0%＋3.4％
22,20021,476DRD

indicates expenses allocated to the head office, which have been introduced since the fiscal year ending March 2015. The amount is stated inbrackets.
Operating income YoY change and 2015/3 EBITDA are calculated by adjusting the head office allocated expenses.

2015/3 Forecast

477
Sales
2014/3

 Improve careers of engineers Strengthen cooperation of businesses
within the segment

EBITDA margin

5.0％

702

1,138

（52）

（52）

650

2014/3

2015/3

1,086

1,078

Operating income
2015/3

5.1％

EBITDA
2014/3

2015/333

Media Segment
Segment Overview
OutlineSegment Strategy

Provides “an,” one of Japan’s largest part-time
job opening information services

Expand the number of users throughaggressive investment

Intelligence Media Div

 Investment in the brand

Major Group
companies

 Expand service offering regions
 Develop new media
indicates expenses allocated to the head office, which have been introduced since the fiscal year ending March 2015. The amount is stated inbrackets.
Operating income YoY change and 2015/3 EBITDA are calculated by adjusting the head office allocated expenses.

2015/3 Forecast

EBITDA margin＋17.9％＋16.1％

870

Sales
2014/3

10.9％

（200）

1,010

21,50018,235（200）
810

2014/3

2015/3

2,076

1,993

Operating income
2015/3

10.6％
2,276

EBITDA
2014/3

2015/334

Career Segment
Segment Strategy

Segment Overview
OutlineMajor Group
companies

Offers career change service “DODA,”
outplacement support services and overseas
recruitment services mainly in Asia

Expand the number of users throughaggressive investment[Recruitment]
Intelligence Career Div[Outplacement support]
Tempstaff Career Consulting[Overseas]
Overseas subsidiaries (China, Hong Kong, Taiwan, Korea,
Singapore, Vietnam, Indonesia, U.S.A.) Investment in the brand Expand service domains

 Continued investment abroad
indicates expenses allocated to the head office, which have been introduced since the fiscal year ending March 2015. The amount is stated inbrackets.
Operating income YoY change and 2015/3 EBITDA are calculated by adjusting the head office allocated expenses.

2015/3 Forecast

EBITDA margin＋11.2％＋13.2％
5,238

31,6004,629
2014/3

24.3％

（238）

（238）

28,415

Sales

5,000

2014/3

2015/3

7,336

6,892

Operating income
2015/3

24.0％
7,574

EBITDA
2014/3

2015/335

NED* Segment*1 NED: New Employment Development

Segment Strategy

Segment Overview
OutlineResponds to new employment development invarious domains such as physicallychallenged candidates, childcare, nursing
care, training and new graduate introduction

Major Group
companies[Physically challenged person employment field]
Intelligence Benefics, Intelligence DODA Challenge, Tempstaff
Frontier, Thanks Temp
[Childcare, nursing care, training, new graduate, mature-age, otherfields]Tempstaff Wish, Tempstaff Welfare, Temp Research Institute,
Tempstaff Learning, Intelligence new graduate-related business,
Intelligence public transaction outsourcing business, Intelligence icommon, Intelligence HITO Research Institute, Tempstaff
Integration

Expand the domain of employment of thephysically challenged
Expand the new graduate domain
Expand the senior employment domain
Create new businesses and services

indicates expenses allocated to the head office, which have been introduced since the fiscal year ending March 2015. The amount is statedin brackets.
Operating income YoY change and 2015/3 EBITDA are calculated by adjusting the head office allocated expenses.

2015/3 Forecast＋1.7％

11,20011,015Sales
2014/3

EBITDA margin△28.1％
468
652

（68）
400

6.7％

415

2014/3

2015/3（68）

733

Operating income
2015/3

3.7％

346
EBITDA

2014/3

2015/336

FY March 2015: Consolidated Forecast of Results (1) Sales by Segment*Rounded down. (Units: million yen, %) Our segment structure has changed to seven segments since the start of FY2015/3. Figures for FY2014/3 have been modified to the new segment
structure.

2014/3

2015/3

1st Half Actual
ActualFull Year Actual

1st Half Forecast

Ratio

ActualRatio

Forecast

Ratio

Full Year Forecast
YoY

Forecast

Ratio

YoY

Sales

174,420100.0

362,489

100.0

185,800

100.0

106.5

390,000

100.0

107.6

Temporary Staffing and
Recruitment Services

123,40570.8

251,660

69.5

131,500

70.8

106.6

268,500

68.8

106.7

BPO*1

8,873

5.1

18,485

5.1

9,200

5.0

103.7

19,600

5.0

106.0

ITO*1

9,544

5.5

19,988

5.5

9,800

5.3

102.7

21,3005.5

106.6

Engineering

10,224

5.9

21,476

5.9

10,6005.7

103.7

22,200

5.7

103.4

Media

8,580

4.9

18,235

5.0

9,900

5.3

115.4

21,5005.5

117.9

Career13,164

7.5

28,415

7.8

15,2008.2

115.5

31,600

8.1

111.2

NED*1

3,515

2.0

11,015

3.0

2,700

1.4

76.8

11,2002.9

101.7△2,888△1.7△6,787△1.8△3,100△1.7－△5,900△1.5－

Adjustments*2）*1 BPO: Business Process Outsourcing; ITO=IT Outsourcing; NED=New Employment Development*2 Adjustments represent eliminations of transactions between segments and the revenues and costs of Temp Holdings.

37

FY March 2015: Consolidated Forecast of Results (2) Operating Income by Segment*Rounded down. (Units: million yen, %) Our segment structure has changed to seven segments since the start of FY2015/3. Figures for FY2014/3 have been modified to the new segment
structure.

2014/3
1st Half Actual
Actual2015/3Full Year Actual

Ratio

Actual

1st Half Forecast

Ratio

Forecast*4

Ratio

Full Year Forecast
Forecast
*4

YoY

Ratio

YoY

Operating Income

7,506

100.0

18,597

100.0

8,200

100.0

109.2

21,000

100.0

112.9

Temporary Staffing and
Recruitment Services

5,461

72.8

11,219

60.3

5,350
(489)

65.3

98.0

11,800
(979)

56.2

105.2

BPO*1

15

0.2

555

3.0

150
(33)

1.8

947.6

650
(67)

3.1

116.9

ITO*1

615

8.2

1,536

8.2

600
(47)

7.3

97.5

1,850
(94)

8.8

120.4

Engineering

219

2.9

477

2.6

100
(26)

1.2

45.6

650
(52)

3.1

136.0
*3

Media

394

5.3

870

4.7

10
(100)

0.1

2.5

810
(200)

3.9

93.0

Career

1,705

22.7

4,629

24.9

2,200
(119)

26.8

129.0

5,000
(238)

23.8

108.0

NED*1

△539

△7.2

652

3.5

△100
(34)

△1.2

－

400
(68)

1.9

61.3

Adjustments*2）

△366

△4.9

△1,344△7.2△110(△850)

△1.3

－

△160
(△1,701)△0.8－*1 BPO: Business Process Outsourcing; ITO=IT Outsourcing; NED=New Employment Development *2 Adjustments represent eliminations of transactions between segments and the revenues and costs of Temp Holdings. *3 Figures that have been changed
from those published on May 13 2014 are underlined. *4 Figures in brackets represent expenses allocated to the head office, which has been introduced in FY2015/3.
38

FY March 2015: Consolidated Forecast of Results (3) EBITDA by Segment*Rounded down. (Units: million yen, %) Our segment structure has changed to seven segments since the start of FY2015/3. Figures for FY2014/3 have been modified to the new segment
structure.

2014/3
1st Half Actual
Actual2015/3Full Year Actual

Ratio

Actual

1st Half Forecast

Ratio

Forecast*4

Ratio

Full Year Forecast
Forecast
*4

YoY

Ratio

YoY

EBITDA

10,686100.0

24,951

100.0

10,996

100.0

102.9

26,932

100.0

107.9

Temporary Staffing and
Recruitment Services

6,190

57.9

12,581

50.4

5,940
(489)

54.0

96.0

13,008
(979)

48.3

103.4

BPO*1

87

0.8

695

2.8

170
(33)

1.6

195.3

695
(67)

2.6

100.0

ITO*1

984

9.2

2,274

9.1

935
(47)

8.5

95.1

2,535
(94)

9.4

111.5

Engineering

506

4.8

1,078

4.3

318
(26)

2.9

62.8

1,086
(52)

4.0

100.7

5.6

65.1

2,076
(200)

7.7

104.2

118.4

7,336
(238)

27.3

106.4

－

346
(68)

1.3

47.2

－

△153
(△1,701)

△0.6

－

Media

941

8.8

1,993

8.0

612
(100)

Career

2,822

26.4

6,892

27.6

3,340
(119)

30.4

NED*1

△496

△4.6

733

3.0

△216
(34)

△2.0

Adjustments*2）

△351

△3.3

△1,298△5.2△106(△850)

△1.0

*3

*3

*1 BPO: Business Process Outsourcing; ITO=IT Outsourcing; NED=New Employment Development *2 Adjustments represent eliminations of transactions between segments and the revenues and costs of Temp Holdings. *3 Figures that have been changed
from those published on May 13 2014 are underlined. *4 Figures in brackets represent expenses allocated to the head office, which has been introduced in FY2015/3.
39

FY March 2015: Consolidated Forecast of Results (4)*Rounded down. (Units: million yen, %)2014/3
1st Half Actual

2015/3Full Year Actual

1st Half Forecast

ActualRatio

ActualRatio

174,420100.0

362,489

100.0

Operating Income

7,506

4.3

18,597

EBITDA

10,686

6.1

Ordinary Income

7,433

4.3

Sales

Net Income

3,520

2.0

Ratio

YoY

185,800

100.0

106.5

5.1

8,200

4.4

24,951

6.9

10,996

18,470

5.1

9,857

2.7

Forecast

Full Year Forecast
Forecast

Ratio

YoY

390,000

100.0

107.6

109.2

21,000

5.4

112.9

5.9

102.9

26,932

6.9

107.9

8,200

4.4

110.3

21,000

5.4

113.7

*

*

*

4,300

2.3

122.2

12,000

3.1

121.7

*

*

*

*Figures that have been changed from those published on May 13, 2014 are underlined.

40

Disclaimer

The statements concerning the Company’s future businessperformances in this material such as earnings forecasts are
based on information available as of May 21, 2014 and certain
assumptions deemed to be reasonable by the Company, and do
not mean that we promise to achieve these figures.
Actual earnings may differ materially from the statements due to avariety of factors.

41

[Reference Material (2)]Outline of the Temp Group42

[Reference Material (2)] Company Outline*As of March 31, 2014

Company Name

Temp Holdings Co., Ltd.

Capital

9,980,640,000 yen

President

Masamichi Mizuta

Established

October 1, 2008

Business Outline

Planning, management and related tasks in support of Group business activities relating to temporary
labour/for-fee HR placement services, etc.

Head Office2-1-1 Yoyogi, Shibuya-ku, Tokyo, Japan

Directors

Chairman and Representative Director
Representative Vice Chairman
President and Representative Director
Executive Vice President
Executive Managing Director
Director
Director
Director (external)

Stock Listing

Tokyo Stock Exchange, First Section

Group Companies

71 consolidated subsidiaries, 2 associated companies

Employees

10,629Service Network

297 domestic and 40 overseas offices*U.S.A., China, Hong Kong, Taiwan, Korea, Singapore, Indonesia, Vietnam

Yoshiko Shinohara
Mikihiko Hibino
Masamichi Mizuta
Hirotoshi Takahashi
Toshio Saburi
Takao Wada
Kazuomi Morimoto
Carl T. Camden

Full-time Auditor
Auditor (external)
Auditor (external)
Auditor (external)

Hiroshi Shimazaki
Kaoru Arai
Ryosuke Tamakoshi
Naoshige Shindo

43

[Reference Material (2)] Temp Holdings Corporate Philosophy

Creating Jobs

Adding Value to Individuals

Contributing to Society

Creating Jobs
We pursue job creation possibilities based on a wide range of work styles, work environments, job descriptions,employment situations, etc.

Adding Value to Individuals
Age, gender and nationality have no bearing. Through the experience of work, we aim to foster a rich sense ofhumanity and support the individual growth of workers.

Contributing to Society
We contribute to the development of society through individual growth and the creation of job opportunities.
44[Reference Material (2)] Temp Group (1)*As of March 31, 2014

Temporary Staffing and Recruitment Services（Localized Operating Companies）
Tempstaff

Tempstaff Fukuoka

Integrated HR service provider
Integrated HR service provider in the
Tokai region
Kyushu region

Tempstaff Familie

Nagano/Yamanashi prefectures

Tempstaff Grow

Gunma prefecture

Tempstaff People（Overseas Branches）（Specialized Operating Companies）

Tempbros

Focuses on Fuji Xerox and relatedcompanies
Focuses on providing HR services to the
Kobe Steel Group
Focuses on providing HR services
primarily to the Nikkei newspaper group
Mature age/manufacturing/assembly

Personal

Placement of sales staff

Support-A

Automotive sales and sales campaign

TEMPSTAFF CROSS
Kobelco Personnel
Tempstaff MediaTS Consulting International

U.S.A.

Tempstaff Plus

Specialized workers in facilities management, latenight office workers

Tempstaff Shanghai
Shanghai Foreign Economic & Trade
Service (SHFESCO)PRC / Shanghai

Tempstaff Creative

Creative related

PRC / Shanghai

Tempstaff Life Advisory

Insurance sales support

Tempstaff Guangzhou

PRC / Guangzhou

Tempstaff Frontier

TS Kelly Workforce Solutions(Tempstaff Hong Kong)

Hong Kong

Thanks Temp

Tempstaff Taiwan

TaiwanTempstaff Korea

Korea

Tempstaff Singapore

Singapore

Tempstaff Indonesia

Indonesia

TEMP VIETNAM

Vietnam

Tempstaff Integration

Specializes in physically challenged
candidates
Employment support for the physicallychallenged
Temp Group shared services

45

[Reference Material (2)] Temp Group (2)*As of March 31, 2014

IT and Engineering(Domestic Japan)（Overseas)JAPAN TECSEED

R&D outsourcing support

Tempstaff Technology

IT sector HR services/outsourcing

TOYO SOFTWARE ENGINEERING

Software outsourcing development

AVC Technology

Design and development of software and hardware for digital audio visual products

AVC Multimedia Software

Development of software and systems for digital audio visual products

DRD

Design and testing of commercial vehicles and parts

GTECHK

Offshore system developing services

TECSEED SHANGHAITechnical consulting in automobile design and manufacturing

Outsourcing(Domestic
Japan)（Overseas)

Japan IDEX

BPO

Tempstaff Life Support

Specific health guidance, medical examination support and community support

HOWCOMIT support: Help desks / service desks

Tempstaff Sales Support

Sales functions (sector focus) outsourcing

Tempstaff WishChild care

PV NEXT

Pharmacovigilance (PV) information management tasks

Suzhou Tempstaff Data

PRC based data entry center46

[Reference Material (2)] Temp Group (3)*As of March 31, 2014

Media and Career (Intelligence Group)(Domestic
Japan)（Overseas)

Intelligence Holdings

Holding company

Intelligence

Media, placement, temporary staffing, outsourcing

Intelligence Business Solutions

ICT outsourcing, system development

Intelligence Benefics

Specializing in physically challenged candidatesIntelligence HITO Research InstituteResearch, HR services

CREDENCE

Specializes in the fashion business

BPO Solutions

Sales / HR outsourcing

Intelligence Business Solutions Okinawa

ICT outsourcing, system development

Intelligence Asia

Singapore

Staff Management Consultancy

Hong KongIntelligence SMC Consulting

Hong KongIntelligence Hong Kong

Hong KongIntelligence Anchor Consulting (Shenzhen)

PRC / Shenzhen

Intelligence (Shenzhen)

PRC / Shenzhen

Intelligence Anchor Consulting (Shanghai)

PRC / ShanghaiIntelligence (China)

PRC / ShanghaiIntelligence (Dalian)

PRC / DalianIntelligence Business Solutions Vietnam

Vietnam47

[Reference Material (2)] Temp Group (4)*As of March 31, 2014

Other Businesses(Domestic
Japan)（Overseas)

Tempstaff Career Consulting

Outplacement / training / HR consulting

Tempstaff Learning

Employee training / language training / qualification acquisition support

Tempstaff Welfare

Home-based nursing care support & visiting care service provider

Temp Research InstituteOverseas study support service provider (ICC)

Temp International

Management support of overseas entities

e-Staffing

System development and operations

COSMO USA

Overseas study support in U.S.A.

48

[Reference Material (2)] Temp Group History (1)Temp Holdings Co., Ltd. was established in October 2008.

2009

March

Shares of Support-A Ltd. (a specialized automotive sector / sales campaign HR provider) acquired; the company becomes a consolidated subsidiary company.
Shares of Tempstaff Grow Co., Ltd. (HR service provider based in Gunma Prefecture) acquired; the company becomes a consolidated subsidiary company.

April

People Staff Co., Ltd. changes its trade name to Tempstaff People Co., Ltd.

May

Shares of Drake Beam Morin-Japan, Inc. (outplacement services provider) acquired; the company becomes a consolidated a subsidiary company.

July

November

2010

May

2011

January

Shares of Fuji Xerox Career Net Co., Ltd. acquired; the company’s trade name is simultaneously changed to TEMPSTAFF CROSS CO., LTD. (provider
of HR solutions primarily to Fuji Xerox Co., Ltd. and related companies) and the company becomes a consolidated subsidiary company.
Shares of JAPAN TECSEED CO., LTD. (R&D outsourcing business) acquired; the company becomes a consolidated subsidiary company.
Share acquisition of major US HR provider Kelly Services Inc. and implementation of strategic alliance.
HOWCOM Co., Ltd. (IT support business focusing on help-desk functions) acquired and becomes a consolidated subsidiary company.
Shares of TOYO SOFTWARE ENGINEERING CO., LTD. (software development outsourcer) acquired; the company becomes a consolidated
subsidiary.
Acquisition of Kobelco Personnel Co., Ltd. shares and consolidation into the Temp Group. Kobelco Personnel Co., Ltd. focuses on supporting the HR needs of Kobe SteelNovembergroup companies.
Shares of Nikkei Staff Co., Ltd. (primary provider of HR services to the Nikkei newspaper group) acquired. "Nikkei Staff Co., Ltd." name changed to Tempstaff Media Co., Ltd.
upon consolidation.

49

[Reference Material (2)] Temp Group History (2)Temp Holdings Co., Ltd. was established in October 2008.

2012

May

AugustPV Next Co., Ltd. specializes in outsourcing of pharmacovigilance (PV) information management tasks and is a consolidated company
established as a joint venture with IUK Inc.
TECSEED SHANGHAI CO., LTD. established in Shanghai, PRC, to handle auto design development tasks.

JV between Asahi Kasei Life Support Corp. (specific health guidance tasks) and, Tempstaff Medical Co., Ltd. to create a consolidated subsidiary. Simultaneously, Tempstaff
NovemberMedical Co., Ltd. changes its trading name to Tempstaff Life Support Co., Ltd. Tempstaff Hong Kong Ltd. jointly funds a JV with Kelly Services, Inc. to expand the businessin the North Asia region (China, Hong Kong, Taiwan, Korea), and changes its trading name to TS Kelly Workforce Solutions Limited.

2013

December

TEMP VIETNAM CO., LTD. established as an HR consulting business in Vietnam.

MarchShares of Panasonic AVC Technology Co., Ltd. (designs and develops software and hardware for digital audio visual products) and Panasonic AVC Multimedia SoftwareCo., Ltd. (develops software and systems for digital audio visual products) acquired; the companies are converted into consolidated subsidiaries. The trading names are
simultaneously changed to: AVC Technology Co., Ltd. and AVC Multimedia Software Co., Ltd.

April

Shares of media/career firm Intelligence Holdings, Ltd. acquired; the company becomes a consolidated subsidiary.

May

Shares of DRD Co., Ltd. acquired; the company becomes a consolidated subsidiary sub-contracting the design and testing of parts used in commercial vehicle
equipment/electronic components.

50[Reference Material (2)] Transition of Consolidated Business Results*Rounded down. (Units: million yen, %)2009/3
Sales

2010/3

2011/3

2012/3

2013/3

2015/3(forecast)

2014/3245,062

224,613225,273

233,195

247,232

362,489

390,000

14.1

16.8

15.8

15.8

16.0

23.5

－

8,908

6,343

5,748

8,170

9,832

18,59721,000

3.6

2.8

2.6

3.5

4.0

5.1

5.4

9,245

6,734

6,231

8,434

10,102

18,47021,000

3.8

3.0

2.8

3.6

4.1

5.1

5.4

4,076

2,950

2,410

3,482

5,888

9,857

12,000Net Profit Ratio

1.7

1.3

1.1

1.5

2.4

2.7

3.1

Return on Equity (ROE)

8.9

6.2

5.2

7.1

10.5

13.2

－

Total Assets

73,98275,912

79,33686,52997,592

177,433－

Net Assets

50,86048,31750,32052,26664,45589,803－Equity Ratio

67.0

60.4

60.2

58.7

63.4

49.0

－

Gross Margin Ratio
Operating Income
Operating Income Ratio
Ordinary Income
Ordinary Income Ratio
Net Income

51