Briefing on Financial Results
for the Second Quarter
Ended September 30, 2015
Temp Holding Co., Ltd.
November 17, 2015

Contents

Part.1 : Financial Highlights on Financial Results for theSecond Quarter Ended September 30,2015
Part.2 : Progress of Mid-term Management Strategy
Part.3 : Progress of plans for the Fiscal YearEnding March 31, 2016

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Part.1
Financial Highlights on Financial
Results for the Second Quarter
Ended September 30,2015※ Refer to the following article for details• “Briefing on Consolidated Financial Results”• “Factbook”（http://www.temp-holdings.co.jp/ir/library4.html）

2016/3 2Q: Summary of Consolidated Business Results(Unit: billion yen)

Achieved the highest results due to large-scale M&A
and steady growth of the existing businesses+28.0%+29.8%

246.1+29.9%

192.2
13.2
Sales

17.2

EBITDA

10.2

13.2

OP income+41.4%
5.7

8.1

Net income

2015/3 1st half results 2016/3 1st half results
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2016/3 2Q: Sales Analysis(Unit: billion yen)Contribution from the large-scale M&A,
in addition to increase in the revenues
from the existing businesses-0.4+42.3

+0.5

-0.1

+4.3

246.1

+0.4+6.8
Organic growth
＋11.9

192.2
2015/3
1st half
Results

Temporary
Staffing・BPO

ITOEngineering Recruiting

M&A+42.3

Others

M&A

Adjustment

2016/3
1st half
Results5

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2016/3 2Q: EBITDA Analysis(Unit: billion yen)

Increase in EBITDA from M&A, the higher revenues
and the improvement of profitability-3.3＋10.1+2.6-4.9+0.2-3.2+2.7
17.2
13.2
2015/3
1st half
Results

Organic Growth ＋2.0

Increase inincome due tothe sales growth

Increase in income
due to theimprovement ofgross profit ratio

Increase in
SG&A

M&A＋1.8

Increase inincome due tothe sales growth

Decrease in income
due to lower grossprofit ratio compared
to existing businesses

Increase in
SG&A

Adjustment

2016/3
1st half
Results
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2016/3 2Q: OP income Analysis(Unit: billion yen)

Increase in OP income due to the higher revenues
despite increase in the amortization of the goodwill
and the capital investment
-3.3
+10.1

+2.6

-5.0

-3.3

-0.7

+0.1

+2.7
13.2
10.2

2015/3
1st half
Results

Organic Growth＋2.0

Increase inincome due tothe sales growth

Increase in income
due to theimprovement ofgross profit ratio

Increase in
SG&A

M&A＋1.0

Increase inincome due tothe sales growth

Decrease in income
due to lower grossprofit ratio compared
to existing businesses

Increase in
SG&A

Increase ingoodwill

Adjustments

2016/3
1st half
Results7Copyright (C) since 2015 Temp Holdings Co., Ltd. All rights reserved.

2016/3 2Q: Consolidated Balance Sheets
As of March 31,2015

Results

AssetsCurrent Assets
Non-current assets

Liabilities
Current Liabilities
Non-current Liabilities

Net assets
Owner’s captital
Minority interests(Unit: billion yen)

As of September 30, 2015

Results

Change

228.6

219.9

-8.6

130.6

121.6

-9.0

97.9

98.2

+3

124.6
86.5

95.6
73.8

① Cash and deposits
Decrease due to the M&A, and thepayment of income taxes andconsumption tax.

② Current Liabilities-29.0-12.7

Decrease due to the payment ofconsumption tax payable.
③ Convertible bond-type bond

38.1

21.8

-16.2

103.9

124.3

+20.3

Decrease in CB due to conversion of＋19.7

stock and Capital surplus.

98.5
5.4

118.3
5.9

+0.5

with stock acquisition rights

the bond, and Increase in capital（Capital to asset ratio：53.8%）

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2016/3 2Q: Consolidated Cash Flow
2016/3

2015/3

1st half
Results(Unit: billion yen)

1st half
ResultsChange① Decrease due to theNet cash provided byoperating activities

11.9

1.2-10.6

Net cash used ininvestment activities-2.9-4.8-1.8

Net cash used infinancing activities-3.3-3.9-0.6

Increase (decrease) incash and cash
equivalents

5.5

-7.4

-13.0

41.5

52.7

+11.2

Cash and cash
Equivalents
at end of year

payment of Consumption tax
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Dividend Policy
Stable dividend payment will be continued according to the progress of business results,
while enhancing our business structure to be able to expand businessin growth areas swiftly and aggressively

2015/3

Dividend per
Share
Dividend Ratio（Consolidated）

2016/3interimYear-end

interimYear-end(plan)

14 Yen18 Yen18 Yen

6 Yen(※)

17.4％ー（※）Temp Holdings conducted the 3-for-1 stock split for the common stock of the company
in October 29, 2015.
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Part.2:
Progress of Mid-term Management
StrategyCorporate philosophy, Slogan of the Temp Group＜ 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 andfind happiness through work

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Mid-term basic policy

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

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Target amount of the mid-term management strategy

2017/3 (Plan)

Sales

500 Billion yen

EBITDA

40 Billion yen

8.0%

Operating
Income30 Billion yen

6.0%

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Progress of the mid-term management strategy*Rounded down. (Billion yen, %)Sales and operating income increased steady,Numerical targets are within range
515.0

Sales

500.0

(forecast)（initial plan）

OP income
401.0
362.4

30.0
26.0

（initial plan）(forecast)

23.4
18.5

246.1
(actual)13.2(actual)2014/3

2015/3

2016/32017/3Phase１
Phase２15
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Outline of the mid-term management strategy

Strategy1

Optimize the Group’s management and segment structure

Strategy2

Increase the number of employed persons through investmentin the Temporary Staffing division and improved productivity

Strategy3Gain more users in the Recruiting segment

Strategy4

Enhance capability to offer solutions in outsourcing services

Strategy5

Generate group synergy

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Efforts taken in the Second Quarter ended September 30, 2015
Phase 1; Enhancement / Establishment of a management platform
Shift to 4 Segment system : Enhance the segment function, and Strengthen collaboration between
related businessEnhance Information sharing system called ”RIBBON”

System Integration Project proceeding
Further integration of back-office functions of Temp Group

Phase 2; A shift to a growth-oriented management
The temporary staffing business enhanced; Acquisition of “P&P Holdings” shares and consolidation intothe Temp GroupStrengthen Medical area of temporary staffing business; Acquisition of “Medicross” Shares andconsolidation into the Temp Group“DODA agent service for new graduates” started; “Benesse i-Career”
Concentration on Web; announced closing down of "an" free paper edition in Tokyo and Kansai region
South Asia business enhanced; shares of “Capita (Singapore)” were acquired and the company wasconverted into a consolidated subsidiary
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Part.3
Progress of plans for theFiscal Year Ending March 31, 2016

2016/3: Forecast for the Fiscal Year

(Unit: billion yen)Through M&A last fiscal year, Sales 500 billion yen iswithin range. Continue investment to achieve goals+28.4%+16.4%

515.0+10.8%

401.0

29.4
Sales
Progressratio

47.8%

34.3
23.4

26.0

+13.6%
13.4

15.2EBITDA

OP incomeNet income

50.3%

51.1%

53.1%

2015/3 full-year results

2016/3 full-year forecast
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2016/3 Topics

TemporaryStaffing Div.

•Revised Worker Dispatch Law statedMedia Div.

••“LINE baito” growing
Concentration on Web; announced closing down of“an” free paper edition in Tokyo and Kansai region

Oversea Div.

• Shifted to a North Asia and South Asia managing
company structure and conducted M&A in orderto strengthen the Asian region.

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Temporary Staffing Div. Revised Worker Dispatch Law

Point of Revision

Easier to understand the law for temporary staff and clients

Employment stabilization measures for temporary staff

Required a license to involve21
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Temporary Staffing Div. Revised Worker Dispatch Law

Social responsibility of temporary
staffing company increases
Temporary staff

ClientEmployment stabilization
measures
Career assistance

Assist for understanding
revised law
Provide suitable service

Increase ininformation

Communitybased servicesStrengthening
expertise

Efficiency
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Media Div. Outline and Efforts

Web shift occurred; Enhance productivity
to capture the needs of users•

Sales YoY：8.5％（Media Div. total）•Concentration on Web; announced closing down of “an”
free paper edition in Tokyo and Kansai region（ LINE Baito ）•Campaign to the potential layor•

Service started at Feb, 2015•

The number of users; 6 million users•“LINE Application” released（8/31~）•TV commercial started（10/16~）

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Oversea Div. Outline and Efforts
Shares of “Capita(Singapore)” , “First Alliances(Vietnam)”
were acquired and the company was converted
into a consolidated subsidiaryIntelligence
Kelly（North Asia）
CapitaFirst Alliances

North Asia
China, Hong Kong,
Taiwan, and Korea

South Asia
Singapore, Indonesia,Vietnam, and Malaysia

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Oversea Div. Outline and Efforts

Strengthening governance; Shifted to a North Asia
and South Asia managing company structure

Kelly Services, Inc.

TS Kelly Workforce Solutions(Headquarter; Hong Kong)
Hong KongChina

TaiwanSouth Korea

TS Intelligence South Asia Holdings(Headquarter; Singapore)
SingaporeMalaysia

VietnamIndonesia

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Disclaimer•The statements concerning the Company’s future business performances inthis material such as earnings forecasts are based on information available asof November 17, 2015 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 a variety offactors.

•This briefing is only for better understanding. Please note that numbers andindexes in this book are not audited

August 2014: Temp Holdings was added to the JPX Nikkei Index 400
What is theJPX Nikkei 400?

It is a new stock price index that consists of companies that meet various requirements for global investment, such as
the efficient use of capital and a management perspective that is conscious of investors, for the purpose of boosting theappeal of Japanese companies domestically and internationally.

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