To Shareholders and Investors

Business Report

TEMP REPORTInterim report for the fiscal year ending March 2014
April 1, 2013 – September 30, 2013

(Securities code: 2181 )In June 2013, former President and Representative
Director Yoshiko Shinohara became Chairman and
Representative Director, and Masamichi Mizuta, former
Executive Vice President and Representative Director,
assumed the post of President and Representative
Director.
Under solid collaboration between the new Chairman
and the new President, we intend to management ourbusiness in order to achieve further growth.

Masamichi Mizuta,
President and Representative Director

Yoshiko Shinohara,
Chairman and Representative Director

Joined Tempstaff in 1988. Became Head of theSales 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 beenin charge of the sales division throughout his
career. In 2013 he assumed the post of President
and Representative Director. He has also held
posts of council members of Japan Staffing
Services Association and the Health InsuranceSociety for Temporary Workers. His motto is “Little
Things Make a Big Difference.”

Founded Tempstaff in 1973. Has been ranked
among the “Most Powerful Women–The
International Power 50” (US Fortune Magazine) for
12 consecutive years since 2000. In March 2011
she was invited to the Advance Women’s
Leadership Summit in Australia as one of the 50
women whose outstanding activities are
anticipated.

Message from management

Hoping for stable
employment,
now and foreverFinancial Highlights
Interim highlights of the FY ending March 2014

Significant progress due to the growth of existing
businesses and M&A

Operating Income:Sales:
billion yen
from a year
earlierUP

Net Income:billion yen
from a year
earlierbillion yen
from a year
earlier

UP

Interim Dividend per Share :yen

UPOperating Income(unit: million yen)

Operating results for five years(forecast)(forecast)

Tempstaff was founded in 1973. We have been supported by both
job seekers and companies that look for operational and talent
deployment flexibility by offering the Japanese society a new form ofworking that comes from using “temps.” Eventually, “temporary staffing”
has penetrated into the society as a new employment option.
It has been 40 years since then. Times have changed dramatically.
As industrial structures and the environment change and global
competition accelerate, companies’ personnel needs have advanced
and forms of employment have become complex. On the other hand,
workers have more diversified values, and the forms of working havechanged as well. A reorganized flexible labor market is required toaddress the demands of job seekers and companies.
In order to revive the growth of the Japanese economy and to createa dynamic society, we believe it is important to transfer labor frommature industries to growth industries, or in other words, to achieve“fluid employment solutions,” just as blood flows through the body.
We strive to promote a “fluid employment” environment by creating a“human resource platform” that offers a one-stop service in order toaddress various talent deployment demands that range from temporary
staffing to recruitment, outsourcing, part time workers and regular
employees as well as aiming to achieve stable employment solutions bysupporting transfers of labor free of unemployment and careerdevelopment for workers.
We have made a new start in this anniversary year, but our hope fora better society for workers and companies will never change. We will
endeavor to continue contributing to the society by creating jobs andsupporting the growth of the people.
Creating Jobs

Sales

Corporatephilosophy(unit: million yen)

AddingValue to theIndividuals(forecast)Contributing
to Society

The top 3 management will answer questions

Combination with Intelligence Group, a leading
placement agency, to enable Temp Group tosignificantly expand its business scale

Sales

Sales
2013
(Actual)2014(Forecast)

Yoshiko Shinohara,
Chairman and Representative Director

The future ofTemp Group(unit: billion yen)More Group companies have embarked on specialized businesses in thedesign and development field since the last fiscal year.
What is the strength of the IT & Engineering business?

One of our medium-term management strategies is “aggressive expansion into
specialized fields.” In order to promote this strategy, Tempstaff Technologies, TOYO
Software Engineering, AVC Technology, AVC Multimedia Software, and DRD, all of which
specialize in technologies, were incorporated into the former R&D Outsourcing businessand renamed the IT & Engineering business. Consolidating companies in specialized
fields will strengthen the “breadth” of the fields that can be covered as well as the “depth”
of job categories further upstream. Not only will this lead to broader services for clientcompanies, it will also enable us to clearly indicate a career development path toengineers. We will continue to strengthen specialized fields as our future strategy.

Mikihiko Hibino,
Representative Vice President

Special Q&A

We will answer.

Temp Holdings made the Intelligence Group,a peer in the broad sense, a subsidiary.
What is the aim?

----- Mid-term Management Strategy ----Strengthening localized services

Providing job assistance to women

Regional companies will provide communitybased, finely tuned services. We will work to
expand our market share in each region.

Women are the key to eliminating labor
shortages in this aging society with fewer
children. We will offer overall support theiremployment by supporting child-raising mothers,
holding seminars and giving counseling.

Developing business in specialized
fields and new categories
To meet sophisticated and diversified needs,
we will expand new categories, services andnetworks.

Expanding our presence in the
global market
We will concentrate our resources on global
networks, particularly in Asia, to establish
bases and actively develop our businesses.

Improving management efficiency
We have increased the efficiency of ouroperations by building a holding company
system and reduced costs radically. We will
firmly maintain solid earnings growth and asound financial position.

The Intelligence Group is a comprehensive human resource
service company that has top-class recognition and track recordin Japan, especially in part-time job information “an” (jobplacement ads) and career change service “DODA” (recruitment
and job-placement ads). Although they are our peer in the broad
sense, they have a completely different characteristic from the
Temp Group. Since there are little overlaps in our businessdomains, high synergy can be expected through mutual
complement. This is why their merger into the Temp Group was
realized. With the addition of the Intelligence Group, the service
domains that we will be able to offer will significantly increase.
We aim to create a “human resource platform” that offers a onestop service in order to address diversified needs in humanresource services.

Former President Shinohara became Chairman and former
Executive Vice President Mizuta became President.
How did you feel when you assumed the post of President?

It was 1988 when I joined Tempstaff. I have known Chairman Shinohara ever since, foras long as 25 years. I have a strong feeling that we have worked in tandem throughout,and this will not change. The social mission of “creating and stabilizing employment,”
which Chairman Shinohara and I have strived for, is “Fueki (immutable)” and will neverchange. On the other hand, I value “Ryuko,” which is to respond flexibly to the everchanging economic environment and corporate needs, and intend to take on the challenge
for further growth under the concept of “Fueki Ryuko*” as well as by adhering to
Shinohara’s management philosophy.
*To incorporate new and changing matters while not forgetting unchanging, fundamental matters.

Masamichi Mizuta,
President and Representative Director

Masamichi Mizuta, President and Representative Director

This is what this segment is like
April Tempstaff
The Staffing and Recruiting business constitutes the core of the “humanresource platform” that the Temp Group offers. Building on its strength of anation-wide sales network and rich personnel supply, it offers services in awide range of fields from clerical posts such as administration, personnel, andaccounting, to specialized jobs such as distribution, sales, IT, R&D, andmedical. It also offers services abroad mainly to Japanese companies inmostly Asian countries such as China, Hong Kong, Taiwan, Korea, Singapore,
Indonesia, and Vietnam.

Started offering support for obtaining thesecurities broker representative license,
following an increase in personnel needs
by financial institutions.

April Tempstaff Indonesia
Opened its first branch in Cikarang

August Tempstaff Korea

Continued increases in both sales
and profit
Demand in both staffing and recruiting
grew on the back of the improvement inbusiness expectations. Net sales for the firstsix months of the fiscal year ending March2014 increased by 4.1% year on year to95,317 million yen. The strengthening of
supply power will be the key in the future
toward further expansion in demand.

■Sales (unit: million yen)

Opened the Daegu office, Tempstaff
Korea’s third office(forecast)

Full fiscal
year

Business transferred from DOCOMO
Service.

First six-month
periodUP

In August 2013, the staffing business of
DOCOMO Service, Inc., which had offeredtemporary staffing services to DoCoMo Group
companies, was transferred to the Temp
Group. We will strive to cultivate our sales
platform by utilizing the Temp Group’s ability tosupply personnel as well as our matchingknow-how.

Aiming for further growth undera new segment structure.

Sales overview by segment

Temporary Staffing and
Recruitment Services

Kazuomi Morimoto, Director

This is what this segment is like
March
This segment was born with the aim of further promoting the“expansion of specialized fields” that is advocated in the medium-term
management plan, by consolidating services in the technical field where
the workforce is being enhanced. In addition to Japan Tecseed, which
offers staffing of design/development engineers, highly specializedGroup companies such as Tempstaff Technologies and TOYO Software
Engineering provides staffing and outsourcing services in fields including
machinery design, electric/electronic design, and software development.

Temp Holdings made AVC Technologies
and AVC Multimedia Software subsidiaries

April
Launch of full-scale automobile development
R&D center at TECSEED SHANGHAIMay
Temp Holdings made DRD, which handles
commercial vehicle development, asubsidiary■Sales (unit: million yen)

Significant growth in net sales
On the back of an expansion in demand,the utilization rates of personnel havetrended at very high levels. Due in part tothe early utilization of new graduate staff
and three companies joining the Groupthrough M&As, net sales increased by
39.8% year on year to 21,907 million yen.
We aim to realize higher-value added
services by further strengthening thecollaboration of the companies.

(forecast)

Full fiscal
yearFirst six-month
periodUP

Strengthened services in both breadthand depth.
In the previous term, Temp Holdings expanded
the “breadth” of its service domains by acquiringownership of AVC Technologies and AVC
Multimedia Software, which handle digital AV
equipment and software development. During thisfiscal term, Temp Holdings acquired ownership of
DRD, a company that has high technical strength
in automobile design/development and tests. It
has enhanced its technical capability to be
involved more “deeply” in development
operations.

*Net sales of each segment are after deducting internal transactions. The segment classification has been changed starting the fiscal year ending
March 2014. Previous results have been modified to the current segment classification.

Sales overview by segment

IT & Engineering

Takao Wada, Director

This is what this segment is like
While temporary staffing is to dispatch necessary staff to companies,
outsourcing is to undertake the operations of the companies. We offer highvalue added services that provide not only operation and management ofwork, but also operation design and consulting. The introduction ofoutsourcing has become active as a new option in standardizing operations
and deploying external personnel that can realize cost reductions. In thissegment we offer a wide range of services to a variety of clients fromprivate companies to local government, mainly in reception, clerical work,salary calculations, data input, and telephone marketing, by making themost of infrastructure within the company and ourselves.

Steady growth

The Group aggressively undertook local
government operations ranging fromclerical work related to public subscription
such as registries at the Legal Affairs
Bureau, to over-the-counter services at thecity hall, and certificate issuance, national
health insurance, nursing care operations.

Greater power of the organization
through exchanges between companies.

■Sales (unit: million yen)

Due to the continued high cost awareness
Full fiscal
among companies, there are moreyear
companies that are positive about
outsourcing. This has led to another highgrowth after robust performances in theFirst six-monthprevious term. Net sales grew by 10.8% year
periodon year to 13,348 million yen.

Aggressively undertake
local government work(forecast)UP

Human exchange and the sharing of
information and know-how between Group
companies have become more active and acooperating structure that can fully exercise
the power of the organization is being
established. The themes of “making efforts inhighly difficult transactions,” “improvement inmanagement skills,” and “learning sales knowhow,” which we have taken up as issues, haveshown steady progress. We will strive toimprove our service quality in the future inorder to address more specialized demands.

Sales overview by segment

Outsourcing

Hirotoshi Takahashi, Executive Vice President

This is what this segment is like
April The Employment Development
headquarters was establishedThis segment covers the businesses of the Intelligence Group. It
operates a wide range of businesses, from the core businesses of “an,” apart-time job-placement information service, and career change service“DODA,” which are two major brands in the job-placement media andrecruitment business operated in one of the largest scales in Japan, tostaffing, outsourcing, employment development, and overseas
businesses mainly in China and southeast Asia.

A record-high number of job openings■Sales (unit: million yen)
We promote the business by making
the most of our rich media. Following the(forecast)recovery of the economy, the number of
job openings in “an” and “DODA” as well
Full fiscal
year
as the number of job seekers in the latter
have risen to a record high, evensurpassing the levels before the “Lehman
Brothers shock.” Net sales reachedFirst six-month
period41,122 million yen.

June Intelligence Business Solutions Okinawa
was established, with the aim of global off-shoredevelopment

July Was entrusted by the Ministry of Economy,
Trade and Industry the “Jinkatsu (personnel
utilization)” support service creation businessAugust Renewed the magazine and website
of job-placement information service “an.”For the development of the Japanese economy.
“The transfer of labor from mature industries togrowth industries” is one of the priority issues
advocated by the government for the revitalization of
the economy. DODA has been entrusted a part ofsuch efforts, the “Jinkatsu support service creation
business” of MITI. At Intelligence, the Employment
Development headquarters was established during
this term that will make efforts in hiring young
unemployed individuals and disabled persons as wellas employment support in areas hit by the earthquake.
We will further endeavor to solve employment issues.

*Net sales of each segment are after deducting internal transactions. The segment classification has been changed starting the fiscal year ending
March 2014. Previous results have been modified to the current segment classification.

Sales overview by segment

Media and Career (Intelligence Group)Toshio Saburi, Executive Managing Director

The growing talent mismatch provides
increased opportunities for us to serve as theconnection between talented people and thecompanies who need them. The trend toward
more flexible labor markets and more nontraditional workstyles also continue toaccelerate, making talent management
strategies more important than ever. In fact,
the typical talent supply chain at a large
company now spans multiple worker
categories to include temporary employees,
independent contractors and freelancers,interns and retirees, full-time workers, andother service providers. Taken together, thedemand for flexible workforce planning and therise of free agency present immense
opportunity for staffing firms around the world.
Now, taking a more holistic view of the global
labor market, we can drive valuable change forthe business world and the workforce—andbuild a vital, lasting future for our industry in
the process.

This is what this segment is like
The main businesses are the re-employment support business andtraining business. The Re-employment Support business undertakes reemployment and work support operations by the Labor Bureau and municipal
governments. It supports re-employment of a broad range of persons suchas middle-aged persons, those living on welfare, and women, throughcounseling and training, work support seminars, and developing job
openings. The Training business supports personnel development throughvarious services according to companies’ needs.

Steady growth
The need for re-employment support
due to companies’ businessrestructuring and early retirement
systems is strong. As a result of thisand the strengthening of sales activities,
net sales reached 2,724 million yen, up
21.2% year on year.

■Sales (unit: million yen)(forecast)
Full fiscal
yearFirst six-month
periodUP

Carl T. Camden, Director*Net sales of each segment are after deducting internal transactions. The segment classification has
been changed starting the fiscal year ending March 2014. Previous results have been modified tothe current segment classification.

Sales overview by segment

Other
Businesses

Supporting working women studying abroad, in commemoration of the 40th
anniversary of Tempstaff
The Group launched the “Challenge Woman Scholarship,” ascholarship system that supports challenging actions by women.
Its social significance has been appreciated and it has gained the
support and cooperation of embassies of many countries as well
as state governments.

For persons with disabilities
Yuya Kimura (Thanks Temp) has achieved excellent performanceagain this term
Under the support of the Temp Group, Yuya Kimura, who is active in bothathletic sports games and work while having disabilities, has achieved
excellent performance again this term.
Major achievements of Yuya Kimura during this term
July 2013
18th Championship of the Kanto Amateur Association for the Disabled Persons, 1,500m, 1st place
August 20132013 Championship of the Japan Intellectual Disability Athletics Federation, 5,000m, 1st place
September 2013
Official IPC 2013 Japan Para Track and Field Championships, 1,500m, 1st place

Yuya Kimura

For working mothers
We offer various support to women returning to work after maternity leave.
Supporting mothers’ return to work
We offer support for mothers
returning to work in various
themes such as seminars forremoving anxiety of being awayfrom work and seminars in which
both parent and child canparticipate.

Career counseling
Our career counselor will answer
any questions and consultations
about returning to work, such as
how to write resumes. Mothers canparticipate with their child.

Group’s CSR activities
The Temp Group’

For women

The Temp Groupaims to realize asociety where each
person is happy, byexecuting CSR(Corporate Social
Responsibility)
through its
personnel businessas well as making
various social
contribution efforts.

Operating Income

Net Income(unit: yen)(unit: million yen)(forecast)(forecast)(forecast)First sixmonth
periodSince business results have beenroughly as planned, we have set
dividends per share for the second
quarter of this fiscal year at 10 yen,
an increase of 2 yen from 8 yen per
share for the second quarter lastyear. Year-end dividends for
FY2013 are scheduled to be 10 yen
per share.

Full fiscal
year(unit: million yen)(unit: million yen)(forecast)(forecast)

UP

UP

Full fiscal
year

Sales

(forecast)First sixmonth
periodAlthough there was an impact of
the increase in goodwill
amortization since goodwill wasrecorded toward companies thatjoined the Group, net income also
grew significantly to reach 3.5
billion yen, up 33.2% year on year.

Full fiscal
year

UP

(forecast)First sixmonth
periodOn the back of the increase in net
sales, all segments showed a rise inprofits. Furthermore, a new Media
Career-Related business segment
was established with the addition of
the Intelligence Group. Due to theaddition of the Intelligence Group’s
high-value added business,
operating income reached 7.5
billion yen, up 64.8% year on year,
and operating margin 4.3%, up 0.6
points.

Full fiscal
year(forecast)First sixmonth
periodOn the back of strong demand for
personnel due to the improvement in
the economic environment, existing
businesses saw steady growth andposted year on year increases in all
segments. Furthermore, as a result of
the addition of the performances of
AVC Technologies, AVC Multimedia
Software, the Intelligence Group, andDRD, net sales for the first six monthsof the fiscal year ending March 2014
were 174.4 billion yen, up as much as
43.6% year on year.

Overview of Consolidated Financial Results

Dividend Per ShareFor more detailed IR information, please visit our website.
Website address

Balance Sheet(unit: million yen)(unit: million yen)

Assets2013/3Current assets

2014/3 2Q

ChangeAssetsNoncurrent assets

Current assets
Cash and deposits

Noncurrent assets
Significant increases
due to M&As

Right of trademark
Goodwill

2013/3

2014/2Q(unit: million yen)

Liabilities/Net assets
Current liabilities Noncurrent liabilities

The balance of 35,010
million yen as of the endof Q1 FY2013 decreased
as a result of funding
through the issuance of
convertible bonds andnew shares for the M&As

Liabilities
Current liabilities
Short-term loans payableNoncurrent liabilities
Convertible bond-type bondwith stock acquisition rights

Net assets

Corporate bonds worth
15,000 million yen were
issued in Q2 FY2013

Long-term loans payable

Net assets
Shareholders' equity

Funding through issuanceof 8 million new shares
was carried out in Q2
FY2013
2013/3

2014/2Q

Capital stock
Capital surplus
Legal retained earnings

Minority interests【Reference】】 The Temp Group applied “Accounting Standards for Presentation of Comprehensive Income” in thefiscal year ended March 2011. “Comprehensive Income” is calculated by marking assets and liabilities to market andadding the profits or losses to net income.

Comprehensive
Income2013/3 2Q

2014/3 2Q

2,031 million yen

3,773 million yen

Information
Distribution of shareholders As of March 31, 2013

Stock Information

Company Outline

As of September 30, 2013

As of September 30, 2013

(Unit: shares)●Authorized number of shares: 240,000,000

Company Name

Temp Holdings Co., Ltd.

●Total number of shares issued: 73,521,500

Established

October 1, 2008

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.

Capital

9,980,640,000 yen●Shareholders: 12,590●Major shareholders (top 10)

Shareholder Information

Name of shareholders

Shares held
(shares)

votingrights(%)

Yoshiko Shinohara

23,377,200

31.98

Japan Trustee Services
Bank, Ltd. (Trust Account)

4,957,500

6.78

The Master Trust Bank ofJapan, Ltd.(Trust Account)

3,116,000

4.26

Kelly Services Japan, Inc.

3,035,600

4.15

Board of Members

Northern Trust Company
1,876,600
2.56●Business year
(AVFC)
Sub
Account
From April 1 to March 31 of the following year
British Client●Annual general meeting of shareholders
June every year
State Street Bank and1,837,900
2.51●Record date
Trust
Company
Annual general meeting of shareholders March 31
Term-end dividend March 31
Yoshimi Iyadomi
1,812,800
2.48
2nd quarter dividend September 30●Administrator of shareholders’ register /Temp Holdings Employee
1,338,382
1.83
Special account management institution
Shareholders
Association
Mitsubishi UFJ Trust and Banking Corporation●Contact
The Bank of Tokyo1,232,000
1.68
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ, Ltd.
Custody Service Department
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JAPANWoman Staff Ltd.
1,206,000
1.64
Tel: 0120-232-711(toll free number available only within Japan)●Stock Listing* Voting rights is calculated based on the number of shares
Tokyo Stock Exchange, First Section(73,095,028) excluding shares in the treasury stock from the●Website address of public notice
total number of shares outstanding.
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.

As of September 30, 2013

Chairman and
Representative Director

Yoshiko Shinohara

Representative
Vice Chairman

Mikihiko Hibino

President andRepresentative Director

Masamichi Mizuta

Executive Vice President

Hirotoshi Takahashi

Executive Managing
Director

Toshio Saburi

Director

Takao Wada

Director

Kazuomi Morimoto

Director

Carl T. Camden

Full-time Auditor

Hiroshi Shimazaki

Auditor

Kaoru Arai

Auditor

Ryosuke Tamakoshi

AuditorNaoshige Shindo

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 the payment period
General inquires about administrative work related to shares

Administrator ofshareholders’register

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)

Procedures and inquiries not included above

Please contact your securities company.

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

Contact

Requests for transfer from a special account to a general 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 the payment period
General inquires about administrative work related to shares

Administrator ofshareholders’register

Method for requesting procedural documents
Request through the automatic answering system: 0120-244-479(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.

Internet“TEMP NAVI for Individual Investors”

This website publicizes various information such as the Temp Group’s businesses
and earnings results in an easy-to-understand manner.

Temp Holdings Co., Ltd.
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, and hence, we cannot guarantee the described performances will be surely achieved.