To Shareholders and Investors

TEMP REPORT
Full-year business report for the
fiscal year ended March 2015
April 1, 2014 to March 31, 2015

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

Message from Management

Looking to the futureof staffing service
based on our
information resources
and human strength
Creating the joys of work together.
Temp Group

Masamichi Mizuta

2

President and Representative Director
Joined Tempstaff in 1988. Became Head of the Sales
Headquarters and Director in 1995, Head of the East
Japan Sales Headquarters and Executive Managing
Director in 2006, Executive Vice President in 2010, andExecutive Vice President and Representative Director in2012. He has been in charge of the sales division
throughout his career. In 2013, he assumed the post of
President and Representative Director. He has also served
as Chairman of the Japan Staffing Services Association
and Council Member of the Health Insurance Society for
Temporary Workers. His motto is “Little Things Make a
Big Difference.”

TEMP REPORT

Financial Highlights
On the back of the favorable Japanese economy, corporate demand forhuman resources remains strong. The Temp Group recorded robust performance for the fiscal year ended March 2015 in all the business segments. We
achieved record-high net sales and operating income of 401.0 billion yen
and 23.4 billion yen, respectively, since the establishment of the Company.
People seeking jobs and companies looking for people—as a personnel
company that provides matching services to satisfy the requirements of bothparties by handling a huge volume of information, such information is thevery source of our competitive edge. People gather where a lot of information is concentrated, and information is concentrated where people gather.
We have two keys to maximize our “Information Capability.” One is “Scale,”
to increase the volume of information. And the other is “IT,” to make themost of the information. As one of our growth strategies, we have aggressively promoted the pursuit of scale by means of M&A concurrently with IT
investments.
However, I want to emphasize that the strength of the Temp Group willremain in “Human Power,” regardless of how far the importance of IT might
increase. We will continue to care for the feelings of individual job seekers
and respond to them with sincerity.
We pursue the goal of becoming “a personnel service company as partof the social infrastructure,” so that people may recognize us as a company“capable of resolving any issues relating to work and employment.”
Toward the realization of that goal, we will go forward along a soundgrowth path, looking to the future big dream of becoming “Asia’s No. 1
personnel company.”
We earnestly seek your continued support.

Highlights of the consolidated fiscal year
ended March 2015 (FY 2014)

3rd straight year ofrecord-high performance on
the back of robust demand
Sales

Operating Income

401.0 billion yen

23.4 billion yen

UP 10.6%

UP 26.2%y/y

Net Income

13.4 billion yeny/y
UP 36.2%y/yYear-end Dividendper Share

18 yen(32 yen on afull-year basis)

Operating Income (Millions of yen)

< B us iness perf ormance>

23,47018,597

5,666

8,115

9,832
362,489

26,000500,000

401,056

Sales (Millions of yen)Creating
Jobs

225,273 233,195

247,232

Corporate Philosophy
AddingContributing
Value toto Society
the Individual

FY2010FY2011FY2012FY2013

FY2014FY2015(forecast)

TEMP REPORT

1

Special News

Step forward! The Mid-term Management Strategy

The Mid-term Management Strategy and the Status of Achievement(Billion yen)

Progress to goal Sales

80.2 % Operating Income 78.2%

Sales

500.0

Goal

(Billion yen)

Operating
Income

500.0

500.0

50.0

362.4 EBITDA

EBITDA
marginmargin

6.9%
300.0

200.0

EBITDA
margin

7.3%
23.4

6.8%

EBITDA
marginPresent Segments

Total: 4 Segments

Total: 7 Segments

30.0

Temporary Staffing/BPO segment

20.0

We have consolidated the “Temporary Stafﬁng segment” as a temporary stafﬁng service
and the “BPO segment” as an outsourcing service with the aim of providing one-stop
services of high-quality solutions in response to changes in the business environment, suchas amendments to the Worker Dispatch Act as well as diversiﬁed customer needs. This hascreated an environment that provides our workers with diverse “work styles.”Temporary Stafﬁng
segment

18.5

FY2013

FY2014FY2015 (plan)

40.0

30.0 8.0%

26.0

number of users
and the numberof employed persons• Optimize the segment structure to improve management efﬁciency.

Phase 2

• Expand the number of employed persons through investments in the dispatch
service domain and the improvement of productivity.
• Increase the number of users in the Recruiting segment.
• Enhance the power of solutions for outsourced services.
• Create group synergies.

During the ﬁrst year of the Mid-term Management Strategy, we implemented a shift to a seven-segment structure, toward the “Optimization of thesegment structure,” as the ﬁrst step of the current ﬁscal year. Furthermore, as an “investment in dispatch domain,” we converted Panasonic Excel
Staff Co., Ltd., which holds a solid management base in the Kansai region, and CareerRise Corporation, into our subsidiaries to expand ourbusiness bases. We also established “AUBE,” a joint-venture with LINE Corporation, with the aim of increasing users in the Recruiting segment.
AUBE launched “LINE Baito,” a part-timer recruiting information service. We also reached an agreement with Benesse Holdings, Inc. to establish a
joint-venture for career support education.
With stable growth observed in the existing businesses, our operating results for the ﬁscal year ended March 2015 were favorable, signiﬁcantly
exceeding our plan.
We have positioned the ﬁscal year ending March 2016 as the year of our “Step towards growth,” placing greater emphasis on upfront investments.
We will aggressively invest in IT and businesses. Furthermore, we will push forward the “Optimization of the segment structure,” to shift to a foursegment structure. The “consolidation and enforcement of back-ofﬁce sections” will also be promoted by establishing a shared service center.

4

TEMP REPORTBPO segment

FY2016 (plan)and establish
Phase 1 Strengthen
the management platform • Reconstruct the governance system by consolidating and enhancing back-ofﬁce sections.
Towardgrowth-oriented
management

Management lines have been redeﬁned for an accelerated decision-making process and the improvement of efﬁciency in organizational
operation.
More high-quality services are pursued to respond to customer needs by conducting organizational operations based on on-site
decisions realized through signiﬁcant power transfer to the chief of each segment.

New Segment

401.0
400.0

No. 1 in the

Our segment-based management goes into fullswing toward the maximization of business values.

ITO segment

ITO segment

Engineering segment

Engineering segment

Recruiting segment

Media segment

We have consolidated the “Media segment,” which operates “an,” a part-time job opening
information services, and the “Career segment,” which offers the career change service“DODA,” outplacement support services, and overseas recruitment services. We will offer
one-stop solutions in response to the recruitment needs of our customer companies athome and abroad.

Other

Career segment
NED segment

TEMP REPORT

3

Business Overview by
Segment

Temporary Staffing segment
Throughout the current fiscal year,
temporary staffing demand continued
to increase on the back of the robust
economy. Our efforts for recruiting
temporary staff and enhancing
functions to attract customers on ourjob-seeking website in response to thegrowth of demand contributed to our
success. As Panasonic Excel Staff has
joined the Temp Group, we will pursue
further improvement of our presencein the next fiscal year.

(Millions of yen)Sales
251,660

276,164

UP 9.7%FY2013

FY2014

Operating
Income13,246 million yen UP

Panasonic Excel Staff Co., Ltd., maintaining a strong presence
principally in the Kansai region, became one of the Group companies
in March 2015. The combination of services and know-how ofPanasonic Excel Staff and the Temp Group will enable us to enhance
our regional strategy and improve our capability in community-based
propositions for recruiting companies and job seekers.

Established AUBE jointly with LINE
Corporation, launching the “LINE Baito” service
In February 2015, as a joint venture with LINE Corporation, we started
a part-timer recruitment information service called “LINE Baito,”
which is available on an application of “LINE.” Amid harshcompetition with competitors, we will continue to improve our
product quality by expanding our contact points with individual users.

TEMP REPORTThe number of inquiries increased
amid the brisk corporate activities. Net
sales grew steadily due partly to
entrusted large-scale projects. Profits
also expanded as a result of sharedknow-how of the improvement of
productivity which had been accumulated earlier in entrusted projects, aswell as our efforts to improve theprofitability of each project.

Media segment(Millions of yen)Sales
18,48520,196

UP 9.3%

FY2013Operating
Income18.1%

Shares were acquired, and PanasonicExcel Staff became a consolidated subsidiary6

BPO segment

1,397million yen

FY2014.3%

UP 151(Millions of yen)Sales

20,262

18,235%
UP 11.1

FY2013

FY2014

Operating
Income

DOWN

62.2%

328 million yen

NED segment

ITO segment
As system-related investments increased
among our clients, inquiries for
SI-related services and ICT outsourcing
expanded, contributing to steady
growth in net sales. We also achieved anincrease in profits as unit prices ofcontract services, such as consulting
services and projects requiring highlevels of technology, rose.

Net sales grew on the back of robust
part-timer recruitment demand.
Operating income was 328 million yen
as a result of investments in Internet
advertisements with the aim ofenhancing product capability as well as
improving the awareness of the “an”
brand, and diverse investments fordifferentiation such as a wide variety ofprint media in the specific regions.

Engineering segment(Millions of yen)Sales
19,98822,142UP 10.8%

FY2013

FY2014

Operating
Income1,785 million yen UP

1

6.2%

Net sales steadily expanded owing to
the growth of businesses in this segment
such as recruitment support for new
graduates, employment support for thephysically challenged, support forstudying abroad, personnel services forchildcare, and operation of childcare
facilities, etc. Operating income was 606
million yen, reflecting the effect offurther investments in increasing our
personnel, etc., toward future growth.

We received vigorous demand fromour main customers in the automobileand electronics industries, mainly forengineers specialized in design,
testing and control system-related
fields on the back of the brisk
development demand. Both sales andprofits increased as the utilization rates
for the entire business remained highwith the stable assignment of newly
graduated engineers as well as anincrease in contract services in linewith the growth in demand.

(Millions of yen)Sales

23,897

21,476

UP 11.3%

FY2013

FY2014

Operating
Income1,051million yen.2%

UP 120Career segment(Millions of yen)Sales
11,015

12,983UP 17.9%

FY2013

FY2014

Operating
IncomeDOWN

606 million yen

7.0%

In line with brisk business activities, net
sales increased due to the robust
demand for personnel recruitment.
Operating income was 5,137 million yen
as a result of investments in advertisingsuch as TV commercials to reinforce the“DODA” brand, and the increase in thenumber of consultants with the purposeof enhancing the matching system.

(Millions of yen)Sales
28,41533,509UP 17.9%

FY2013Operating
Income5,137million yen

FY2014

UP 11.0%

TEMP REPORT

5

Overview of Consolidated
Financial Results

Please visit our website for more detailed IR information.
URL: http://www.temp-holdings.co.jp/

Balance Sheet
Sales

Operating Income

Net Income

Dividend Per Share(Millions of yen)

(Millions of yen)

(Millions of yen)(forecast)(forecast)

500,000

26,00030,00015,000

36.00

40.00

13,424(forecast)

401,056
400,000

PO IN T 1

15,250500,000(forecast)

32.00

23,470362,489
20,0009,857

18,59724.00

10,00018.00(forecast)

0.6
UP 1

%

100,000

0

FY2013

FY2014FY2015

10,000

0

6.2%
UP 2

FY20130.8%
UP 1

FY2014FY2015

5,000

0

6.2%
UP 3

FY2013

228,663

51,230Current assets

87,463

130,696

43,23236,29260,64524,352

89,96997,967

7,997

Right of trademark

11,66011,061(598)

Goodwill

57,08966,023

8,934

87,629124,694

37,064Current liabilities

44,15486,56942,415

Noncurrent liabilities

43,474

38,124(5,350)1

Cash and deposits

14.00

3.6%

UP 1

FY201402Liabilities

10.00
10.00

FY2015PO IN T 2
Increase due to M&As

3

PO IN T 3

FY2013

FY2014FY2015Full year

24.00

32.00 36.00 (forecast)First
six-month
period10.00

14.00 18.00 (forecast)

Increases in accrued
consumption taxes andshort-term loans payable
due to M&As

Convertible bond-typebonds with stockacquisition rights

15,000Long-term loans payable

18,56013,920(4,640)89,803103,969

14,165

Shareholders’ equity

86,97398,562

11,588

Capital stock

9,980

10,081

101

Capital surplus

13,572

13,673101

Retained earnings

62,14073,49911,359Minority interests

2,829

5,406

2,576

Net assets

8

Amid the improvement of all
employment-related indices withbusinesses gradually turning busierreflecting the improvement of corporate
revenues and aggressive recruiting
activities, etc., strong demand for
temporary staffing and placement services
and other personnel services wereobserved. In response to thesecircumstances, we expanded our lineup ofservices, changed our operational
structures, and enhanced our cooperation
systems within the Group, among othermeasures. As a result, net sales for the
fiscal year ended March 2015 recorded
double-digit growth (up 10.6% year onyear), as in the previous fiscal year, to401.0 billion yen.

TEMP REPORT

Operating income increased by 26.2%
year on year to 23.4 billion yen as aresult of significant growth in net sales
in all business segments. The operating
margin improved by 0.8 percentage
point year on year to 5.9% due torobust performance of the highly
profitable Career segment andimproved profitability in the ITO andBPO segments.

Despite the impact of amortization of
goodwill associated with thereorganization within the Group in Asia,
net income increased significantly by
36.2% year on year, to 13.4 billion yen.

While we had planned to pay 14 yen
per share as the year-end dividend forthe fiscal year ended March 2015, wehave determined to raise the dividendby 4 yen to 18 yen per share,comprehensively taking into
consideration our business performanceand financial position, etc. As a result,the full-year dividend for the fiscal year
ended March 2015 will be 32 yen per
share, including the 14 yen already paidout as an interim dividend.

PO IN T 4
Increase in net income

Change177,433

Noncurrent assets

20.00

4.7%
UP 2

Increases in cash anddeposits, and notes andaccounts receivable-trade

FY2014

Assets30.00

300,000

200,000

FY2013(Yen)(Millions of yen)4

14,798Assets(Millions of yen)

Current
assetsNoncurrent
assets250,000

200,000

130,696
150,000

87,463100,000

50,000089,96997,967

March 31, 2014

March 31, 2015

Liabilities andNet Assets(Millions of yen)

Current
assets(202)

Noncurrent
assetsNet
assets250,000

The Temp Group has applied the “Accounting Standards for the Presentation of[Reference] Comprehensive Income” since the fiscal year ended March 2011. “Comprehensive

Income” is calculated by marking assets and liabilities to market and adding the profits
or losses to net income.

200,000

150,000

86,56944,15443,474

38,124

100,000

50,0000Comprehensive
Income89,803
March 31, 2014

103,969

March 31, 2015

FY2013

FY2014

10,543 million yen

13,508 million yen

TEMP REPORT

7

The Temp Group’s
CSR Activities

Information

The Temp Group is engaged in CSR (Corporate Social Responsibility) through the personnel business,
concurrently with diverse social contribution activities.

Company Outline
Company Name

For the development of globally active human resources
On November 30, 2014, a presentation conference of the Temp
Group Challenge Women Scholarship was held in Nihonbashi, Tokyo.
Six scholarship recipients who had learned English and conducted field works during two months from July toAugust 2014 gave presentations in English.
A get-together was also celebrated, in which 35 old scholarship recipients from the first year of the scholarship in
1991 to the 21st year in last year, as well as other related persons, participated.
The scholarship recipients for 2015 have been already fixed, and are preparing to travel abroad.

Support for disabled persons
We offer various job assistance to people with disabilities in expectation of
the realization of a comfortable working environment for them.
Thanks Temp Co., Ltd. (an exempt subsidiary) conducts various contract businesses such as providing assistance foradministrative works, holding job assistance seminars for disabled persons, etc. Frontier Challenge, Ltd., which isengaged in providing assistance for the employment of disabled persons, started the Challenge Athlete Support
program in 2008 to support physically challenged athletes who are employees of Temp Group, by providing financial
assistance and flexible working conditions to help them simultaneously pursue work and athletics.

For female workers“Diversity Sales Department” has been established to further support
female workers
The Diversity Sales Department consists of time-pressured female employees. The goal of this department is torealize a working environment in which new working styles free from time constraints are sought and realized sothat more diverse human resources will be able to enjoy working actively.
This department was first established in three offices of Tempstaff Co., Ltd. in the Tokyo Metropolitan area, and will
be expanded to wider areas.

1 0

TEMP REPORT

Stock Information(As of March 31, 2015)

Temp Holdings Co., Ltd.

Authorized number of shares:

Established

October 1, 2008

Total number of shares issued:

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

Number of shareholders:Type of Business

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

Capital10,081.64 million yen

Members of the Board
Yoshiko Shinohara

Vice Chairman:

Mikihiko Hibino

President andRepresentative Director:

Masamichi Mizuta

Executive Vice President:

Hirotoshi Takahashi

Director:

Takao Wada

Director:

Carl T. Camden

Full-time Auditor:

Hiroshi Shimazaki

Auditor:

Kaoru Arai

Auditor:

Ryosuke Tamakoshi

Auditor:Naoshige Shindo(As of March 31, 2015)(Shares)

240,000,000
73,593,914
6,930

Financial
institutions
14,163,900 (19.25%)

Foreigncompanies, etc.
20,100,865(27.31%)

Major shareholders
Number ofshares held

Shareholding
ratio (%)

Yoshiko Shinohara

19,277,200

26.35

The Yoshiko Shinohara
Memorial Foundation

4,100,000

5.60

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

3,894,500

5.32

3,035,600

4.15Japan Trustee Services
Bank, Ltd. (Trust Account)

1,857,100

2.53

Yoshimi Iyadomi

1,812,800

BNYM Treaty DTT 15

1,327,686

MSIP CLIENTSECURITIES

1,265,919

1.73

The Bank ofTokyo-Mitsubishi UFJ, Ltd.

1,232,000

1.68

Woman Staff Ltd.

1,206,000

1.64

Name of shareholders

Kelly Services Japan, Inc.

(As of March 31, 2015)

Chairman and Director:

Distribution of Shareholders(As of March 31, 2015)

Treasurystock
427,430(0.58%)

Individuals, others
28,805,030(39.14%)

Financial
instrumentbusiness
operators
460,748(0.63%)
Other
companies,etc.
9,635,941(13.09%)

Shareholder Information
Business year

From April 1 to March 31 of the following year

Annual general
meeting of shareholders

Late June

2.47

Record dates

Annual general meeting of shareholders: March 31
Year-end dividend: March 31
Interim dividend: September 30

1.81

Administrator ofshareholders’ register
Special accountmanagement institution* The shareholding ratio is calculated based on thenumber of shares (73,166,484) obtained bydeducting the number of shares in the treasury
stock from the total number of shares outstanding.

Contact

Mitsubishi UFJ Trust and Banking Corporation
Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081,
JAPAN
Telephone: 0120-232-711(Toll free available only in Japan)
URL http://www.tr.mufg.jp/daikou/

Stock listing

Tokyo Stock Exchange, First Section

Website of public
notices

URL: http://www.temp-holdings.co.jp/(When electronic public notices are not possible
due to accidents or other unavoidable
circumstances, announcements will appear in the
Nihon Keizai Shimbun newspaper.)

TEMP REPORT

9

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

Contact

Inquiries about the sending and returning of mails
Inquiries about dividends after expiration of the payment period
General inquiries about administrative work relating to shares

Administratorof shareholders’registerProcedures and inquiries other than those stated above, such aschanges in address, name, etc.

Please contact your securities company.

Shares registered in the special accountProcedures, inquiries, etc.

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

Contact

Requests for transfer from a special account to a general account
Changes in address, name, etc.
Inquiries about account balance
Designation of method for receiving dividends (*)

Special accountmanagement
institution

Inquiries about the sending and returning of mails
Inquiries about dividends after expiration of the payment period
General inquiries about administrative work relating to shares

Administratorof shareholders’register

Custody Service Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JAPAN
Telephone: 0120-232-711 (Toll free available only in Japan)
Method for requesting procedural documents
Request using the automatic answering phone system:
0120-244-479 (Toll free available only in Japan)
Download documents online: http://www.tr.mufg.jp/daikou/(*) Shareholders holding shares registered in the special account may not choose the method of receiving dividends in proportion to the number of shares held.

Internet“TEMP NAVI for Individual Investors”

http://www.temp-holdings.co.jp/individual/
Please visit our website for various kinds of information, such as the Temp Group’s businesses
and earnings results in an easy-to-understand manner.

Temp Holdings was selected as a component of the JPX-Nikkei Index 400
in August 2014.
What is the JPX-Nikkei Index 400?

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

Temp Holdings Co., Ltd.
Shinjuku Maynds Tower, 2-1-1 Yoyogi, Shibuya-ku, Tokyo, JAPAN Telephone: +81-3-3375-2220* Matters stated in this report include statements concerning the Company’s plans and forecasts for the future. Actual earnings may differ materiallyfrom the statements due to a variety of factors, and the statements do not mean that we promise to achieve these figures.

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