To Shareholders and Investors

Business Report
Report for the fiscal year ended March 2013

April 1, 2012 – March 31, 2013

(Securities code: 2181 )Assisting companies design and implement a hiring policy
In April 2013, Intelligence Holdings, Ltd. joined our group. This integration
with Intelligence Holdings, Ltd. will enable our Group to drastically expand
the range of services and employment opportunities available to clients, forexample, recruitment services for temporary jobs, part-time jobs and fulltime jobs, staffing services, outsourcing services, and outplacement support
services.
We will seek to create a one-stop “human resources platform” connecting
people with various points of view and at various life stages with companies
with diversified needs.

Serving as a social
infrastructure in
employment

Top Message

The demand for human resources services in the Japanese domestic
market is now on the path to recovery. In particular, since the RevisedWorker Dispatch Law was enacted and went into effect, Japanesecompanies have been able to utilize human resources services without any
hesitation.
Under this environment, Temp Group has provided proposal-oriented
approaches to our client companies. During the FY March 2013,
consolidated net sales and operating income amounted to 247.2 billion yen
and 9.8 billion yen, respectively, both of which surpassed the previous
records after the establishment of Temp Holdings, Co., Ltd. In addition, allsegments could successfully achieve increases both in sales and operating
income over the past year. Accordingly, given this robust businessperformance, we have decided to pay a year-end dividend of 10 yen per
share, up 2 yen from the preceding year.

Yoshiko Shinohara, Chairman
Sets up Tempstaff Co., Ltd. in 1973;
Ranked among the “50 Most Powerful
Women in Business: International” by
the US magazine “Fortune” for the
12th consecutive year since 2000;
Invited to “ADVANCE WOMEN’S
LEADERSHIP SUMMIT” in Australia
as one of the 50 FOR THE FUTURE
in March 2011.

●Achieved increases in both

Operating resu

net sales and operating income
for two consecutive years●Posted record net sales andoperating income after theestablishment of Temp
Holdings Co., Ltd.
●Increased the year-end
dividend per share by 2 yen

lts

Operating Income(unit: million yen)Highlights of the FY ended March 2013
from a year earlier

Sales
247.2 billion yen

UPOperating Income UP
9.8 billion yen
Net Income
5.8 billion yen

Sales

UP

Dividend per Share 10 yen(forecast)Creating Jobs

Corporatephilosophy
AddingValue to theIndividuals

Contributing
to Society

The Council for Industrial Competitivenesssuggested at its last meeting that the
government should change its employment
policy from the conventional style with a focus
on excessively fixed and stable employment to
a new style that gives support to facilitating amore flexible movement of labor in order tomake the Japanese economy more robust in
the future. Given the current environment, wehave strengthened our sense of responsibility tomaintain a vital role as part of the “society
infrastructure” to totally support smooth andflexible movement of labor without
unemployment.
We will devote ourselves to offering helpful
services to both job seekers and clients seeking
human resources. We will continue to contributeto society in terms of employment creation anddevelopment of human resources.
I am determined to focus entirely on thechairman’s role, taking advantage of the 40th
anniversary of the founding of Tempstaff Co.,
Ltd, and we are determined to promote
Masamichi Mizuta, a former Executive Vice
President, as the new President responsible formanagement of Temp Group. I will continue tocarry out my task as Chairman wholeheartedly
at Temp Group. Your understanding andcontinuous support for Temp Group would behighly appreciated.

Combination with Intelligence Group, a leading placement
agency, to enable Temp Group to significantly expand its
business scale(unit: billion yen)

Sales

275

247.2

Sales

90
2013/3(actual)2014/3(forecast)Creating a new one-stop human resource platform meeting
various needs

Media

Part-timers

permanent employee

Placement

Temporarystaffing

Intelligence’s staffing service

R&D Outsourcing
System development in IT &communication fields

IT & communication

Outsourcing

Intelligence Holdings, Ltd. is a highly recognizable,
comprehensive human resources service business with one of thenation’s best track records especially in the fields of media (jobadvertisements) and placement services, in which they haveedges different from Temp Group. We expect that this businessintegration will bring about a desirable synergistic effect throughthe combination of Temp Group’s nationwide business network
and Intelligence Group’s ability to attract clients/jobseekers andmatch jobseekers with clients. In addition, the complementary
relationship between the two groups from different business fields
is expected to drastically expand the types of services to beprovided for customers, which will eventually lead to theestablishment of a one-stop framework to meet diversifying needs
for human resources services. We will seek to create a new“human resources platform” that will help companies mobilize andstabilize employment by connecting individuals at different life
stages with various companies.

public service

Outplacement

Outplacement services

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

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

Mid-term Management Strategy
Temp Group will seek to achieve further growthunder its mid-term management strategy.

Topics365

Intelligence Holdings, operatorof the “an” and “DODA”
brands, to become a memberof Temp GroupTemp Group has established three new companies in Asia.
We have consistently promoted the creation and enhancement of an Asiawide framework in order to expand our business scale and reinforce ourcompetitive strength in the Asia market.

Temp Group to improve enterprise valueand HR services, capitalizing on
synergistic effects with Intelligence Group

August 2012
Temp Group established TECSEED SHANGHAI CO., LTD., a subsidiary specializing in automobile designand development in China.
November 2012
Temp Holdings and Kelly Services, Inc. commenced a joint venture in North Asia (China, Hong Kong,
Taiwan and South Korea), and established TS Kelly Workforce Solutions Limited.
January 2013
Temp Group established TEMP VIETNAM CO., LTD., which provides HR consulting services to Japanesecompanies entering the market.

Temp Group is further developing business in special
fields and new categories.
Temp Group is promoting the expansion of its special fields and new
categories by leveraging mergers and acquisitions effectively.
November 2012

March 2013

Temp Group enhanced outsourcing business.
Tempstaff Life Support Co., Ltd. commenced
business operations.
Temp Group aims to enhance its Outsourcing
Segment, especially in the healthcare business field
through a merger with Asahi Kasei Life Support Co.,
Ltd., which has unique services.

Temp Holdings converted AVC Technology
Co., Ltd. and, AVC Multimedia Software Co.,
Ltd. into subsidiaries.
Both companies have a pool of engineers in thefield of design and development of digital AV
products. Temp Group aims to enhance thisengineering design and development field thatis significantly deficient of manpower.

Improving management efficiency
We have increased the efficiency of our operations bybuilding a holding company system and reduced costs
radically. We will firmly maintain solid earnings growth
and a sound financial position.

Providing job assistance to women
Women are the key to eliminating labor shortages inthis aging society with fewer children. We will offer
overall support their employment by supporting childraising mothers, holding seminars and giving
counseling.

Build a community-based one-stop solution
service
We will sell Intelligence Group’s placement and media
services through the nationwide network of Temp
Group.
Provide advanced matching services throughlinkage of databases held by both parties
We will achieve advanced matching services throughcombination of the database of employers andplacement services held by Intelligence Group and the
database of job-seekers held by Temp Group.
Facilitate mobility and fluidity within the crossborder employment market
Temp Group will strongly support Japanesecompanies entering the overseas market, throughcollaboration with Intelligence Group’s overseas
business bases, growing with its strong brand.
Enhance job assistance for womenIntegration of the two groups enables us to offer awider range of options for employment styles, meetingthe diversifying needs of women for work according toeach life stage.
Promote more effective use of managerial
resources
Maximum use of various managerial resources, suchas information on job-seekers and employers, will
reduce lost opportunities and improve management
efficiency.

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.

Achieved increases in both net sales and operating income fortwo consecutive years
Attaining further growth by meeting needs

UP

The Revised Worker Dispatch Law came into force in October 2012. This swept
away the unclear outlook for demand for temporary staffing services, and recently,
the demand for temporary staffing services has been recovering steadily. The
Temporary Staffing and Recruitment Services segment accomplished increases inboth net sales and operating income for two consecutive years, due to positive
factors, such as an expansion in business scale resulting from mergers andacquisitions in the preceding Fiscal Year. In the future, we will focus on improving
customer satisfaction in this segment as one of the main services in our HR
business portfolio.

R&D Outsourcing

Sales (unit: million yen)

Accelerated recovery in operating results thanks to effective
achievement and development of human resources

UP

Demand in the design and development fields has been fairly consistent and thepersonnel operating rate has remained at a high level. It is essential to hire andachieve early cultivation of human resources in order to expand business scale.
Under this environment, JAPAN TECSEED CO., LTD. recruited more than 100 new
graduate staff and trained them to meet the needs of customers, with the result of
achieving early allocation of new graduate engineers to workplaces. At the sametime, JAPAN TECSEED CO., LTD. could also achieve profitable and highly
advanced job orders for existing engineers. These positive factors contributed tostrong business performance in this segment.

Overview of business results by segment

Temporary Staffing and Recruitment Services

Sales (unit: million yen)

Sales (unit: million yen)

Outsourcing
Intensified proposal-based marketing leveraging thelaw revision

UP

Sales (unit: million yen)

The revision of the Worker Dispatch Law has increasingly driven
clients to develop an interest in outsourcing services. Temp Grouphas proposed Outsourcing Services as part of a human resources
strategy to improve productivity, optimize human resource allocation,
reduce total costs and achieve other goals. Consequently, we havesuccessfully increased the number of orders received from clientsand improved business performance significantly. We have tried toincrease orders with industrial sectors that need especially highlevels of expertise, such as insurance and finance, IT andcommunication, or public service agencies, with such success that
we have been expanding this business field rapidly.

Other BusinessOutplacement Services has continued to be strong.

UP

While the Japanese economy has made a strong recovery, somemanufacturers have continuously experienced employment
fluctuations. The Outplacement Services, a core business in our
Other Business segment, has constantly received new orders of acertain size in conjunction with this social situation. As a result, theOther Business segment solidly increased sales by 26.9% from thepreceding Fiscal Year.

※Segment net sales exclude intercompany transactions. In addition, the classification of reportable segments has changed from the FY March 2013, and the actual
results in the previous fiscal year have been reclassified for comparison. The classification of reportable segments will be also changed in this FY March 2014.

Net Income(unit: yen)comeOperating In(unit: million yen)Sales

(unit: million yen)(unit: million yen)(forecast)(forecast)(forecast)(forecast)(forecast)
UP

UP

Full fiscal
yearFirst sixmonth
period

UP

UP

UP

UP

Net income for the FY March 2013
improved drastically, due to an increasein net sales and an improvement inefficiency. In addition, extraordinary
charges decreased significantly fromthe large amount allocated toamortization of goodwill posted for thepreceding Fiscal Year. As a result, net
income for the Fiscal Year increased by
69.1 % from the preceding Fiscal Year.
We expect net income for the next FY
March 2014 to continue to increase to 9
billion yen.

Operating income increased by 20.5%
from the preceding Fiscal Year, due toa rise in operating margin resulting
from an improvement in operating
efficiency, as well as an increase inincome in all segments along withsales. Operating margin improved by
0.5% to 4.0%. We expect that
operating income and operating
margin for the next FY March 2014
will be 18.5 billion yen and 5.1%,
respectively.

For the full FY March 2013, the demandfor external human resources developed
consistently. Consequently, we could
achieve increases in both net sales andoperating income in all segments ofTemp Holdings for two consecutive years.
In fact, Temp Holdings posted record net
sales during this period. We expect
consolidated net sales for the next FY
March 2014 to be 365 billion yen due tothe consolidation of AVC Technology Co.,
Ltd., AVC Multimedia Software Co., Ltd.
and Intelligence Holdings, Ltd.

(forecast)(forecast)

At the beginning of FY March 2013, we
expected annual dividends of 16 yen, an
increase of 2 yen from the preceding Fiscal
Year. However, given that the operating
results outperformed the earnings forecast
that was revised in the second quarter, we
decided to pay a year-end dividend of 10
yen per share, an increase of 2 yen from thepreceding Fiscal Year. As a result, we will
pay cash dividends per share for the FY
March 2013 of 18 yen.
With regard to the dividends for the next FY
March 2014, we plan to pay cash dividends
per share amounting to 20 yen, consisting of
an interim dividend of 10 yen per share, anincrease of 2 yen from the preceding Fiscal
Year, and a year-end dividend of 10 yen per
share.

Overview of Consolidated Financial Resultsr ShareDividend Pe

For more detailed IR information, please visit our website.
Website address(unit: million yen)

AssetsCurrent assets
Noncurrent assets

eetBalance Sh(unit: million yen)

2012/3

2013/3

ChangeAssetsCurrent assets
Cash and deposits
Cash and deposits increased
due to excellent operating
results.
2012/3

Noncurrent assets

Liabilities

2013/3Current liabilities
ssets
s/Net aLiabilitie(unit: million yen)
Current liabilities
Noncurrent liabilities
Net assets

Treasury shares were allocatedfor the issuance of new shares
resulting from the exercise of
convertible bonds. As a result,the balance of convertible bonds
decreased to zero, and thebalance of treasury shares also
decreased accordingly.

Convertible bond-typebond with stockacquisition rights

Noncurrent liabilities

Net assets
Shareholders' equity
Treasury stock
Minority interests

2012/3

2013/3【Reference】】
The Temp Group applied “Accounting Standards for Presentation of Comprehensive Income” in the fiscal
year ended March 2011. “Comprehensive Income” is calculated by marking assets and liabilities tomarket and adding the profits or losses to net income.

Comprehensive
Income2012/3

2013/3

3,131 million yen

7,141 million yen

Thanks for your support for our activities
In 2013, many Temp Group companies celebrate the anniversary of
their inauguration, including the 5th anniversary of Temp Holdings Co.,
Ltd. and the 40th anniversary of Tempstaff Co., Ltd.
We will devote ourselves to making a contribution to society in termsof employment creation and development of human resources.

th anniversary Temp Holdings Co., Ltd.

th anniversary

Tempstaff Singapore Pte Ltd.
Tempstaff Integration Co., Ltd.
Tempstaff Learning Co., Ltd.

Temp Group’Group’s CSR Activities
Temp Group is engaged in CSR (Corporate Social Responsibility) activities throughthe human resources business while involving itself in various social action programs.

ic
For the phys
challenged

tally
ally and m en

Yuya Kimura won a prize at the London
Paralympics GamesWe support physically and mentally challenged
employees so that they can participate in bothathletic activities and their work. Kimura Yuya, whoworks at Thankstemp Co. Ltd. and is continuing his
sporting activities with this support, participated in
the London Paralympics Games. He won ninth placein the 1,500 meter race final, recording his best time
for the season.

growthFor people’s

We back study abroad programs.
Hoping to develop personnel who can play a
key role globally, Temp Group supports study
abroad programs.
In this Fiscal Year, we granted nine working
people the “21st Temp Group Worldwide
Scholarship” for short-term study abroad.

Tempstaff (Hong Kong) Limited
th anniversary

th anniversary

th anniversary

th anniversary

th anniversary(Now TS Kelly Workforce Solutions Limited)

Tempstaff Fukuoka Co., Ltd.
Tempstaff-familie Co., Ltd.
TEMPSTAFF CROSS CO., LTD.

Tempstaff People Co., Ltd.

Tempstaff Co., Ltd.

Personal Co., Ltd.

Yuya Kimura
healthFor women’s

We continued to support the Pink Ribbon
Campaign this Fiscal Year.
At a seminar held at “Temp Up,” acomprehensive support center for women, in
October 2012, Temp Group participated in the“Pink Ribbon Campaign” to encourage andpromote breast cancer examination. In addition,
we also presented bath salts for self-diagnosis
and routine checkups.

seeking
For mothers ties
job opportuni

We presented a “guidance seminar” for mothers
seeking job opportunities.
In April 2012, we opened “Temp Up,” a comprehensive
support center for women. We presented seminars
and counseling mainly targeting mothers who want tore-enter the workforce or to find new jobs, free fromthe need for babysitting services.

Information
Distribution of shareholders As of March 31, 2013

Stock Information

Company Outline

As of March 31, 2013

As of March 31, 2013

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

Company Name

Temp Holdings Co., Ltd.

●Total number of shares issued: 65,521,500

Established

October 1, 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.

Capital2,000 million yen●Shareholders: 8,467●Major shareholders (top 10)

Shareholder Information

Name of shareholders

Shares held
(shares)

votingrights(%)

Yoshiko Shinohara

23,377,200

35.94

State Street Bank andTrust Company

7,282,800

11.19

Kelly Services Japan Inc.

3,035,600

4.66

Yoshimi Iyadomi

1,812,800

2.78

Board of Members

Temp Holdings

1,527,982

2.34

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

Employee Shareholders●Business year
Association
From April 1 to March 31 of the following year
●Annual general meeting of shareholders
Japan Trustee Services
1,509,600
2.32
June every year
Bank,
Ltd.
●Record date
Annual general meeting of shareholders March 31
The Bank of Tokyo1,232,000
1.89
Term-end dividend March 31
Mitsubishi
UFJ,
Ltd.
2nd quarter dividend September 30●Administrator of shareholders’ register /Woman Staff Ltd.
1,206,000
1.85
Special account management institution
Mitsubishi UFJ Trust and Banking Corporation
Nikko Cordial Securities
1,154,700
1.77●Contact
Investment Enterprise
Mitsubishi UFJ Trust and Banking Corporation
Partnership
Custody Service Department
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JAPANThe Master Trust Bank
1,128,100
1.73
Tel: 0120-232-711
of Japan ,Ltd.
(toll free number available only within Japan)●Stock Listing
Tokyo Stock Exchange, First Section* Voting rights is calculated based on the number of shares●Website address of public notice(65,037,063) excluding shares in the treasury stock from the
http://www.temp-holdings.co.jp/
total number of shares outstanding.
When electronic public notices are not possible due toincidents or other unavoidable circumstances,announcements will appear in the Nihon Keizai Shimbun newspaper.

As of June 21, 2013

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”
http://www.temp-holdings.co.jp/individual/This website publicizes various information such as the Temp Group’sbusinesses and earnings results in an easy-to-understand manner.

Shinjuku Maynds Tower, 2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-0053, JAPAN

Tel: +81-(0)3-3375-2220