Briefing on Consolidated Financial
Results for the Third Quarter

Ended December 31, 2016

Temp Holdings Co., Ltd.
February 13, 2017

Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

2017/3 3Q : Summary of Consolidated Business Results
Achieved the highest results due to steady growth

2017/3 Results

2016/3 Results
3Q(Unit: million yen)

Ratio(%)

3Q

Ratio(%)

YoY(%)

2017/3Full Year
Forecasts*

Sales

375,826100.0

429,560

100.0

＋14.3

590,000

Gross Profit

89,55023.8

104,795

24.4＋17.0-EBITDA*

26,9177.232,707

7.6＋21.5

42,730OP income

20,892

5.6

25,2875.9＋21.0

32,500

Profit attributable toowners of parent

12,6693.4

15,024

3.5＋18.6

17,100*Rounded down (same as following pages) *EBITDA = OP income + Depreciation + Amortization of Goodwill(same as following pages)*The financial forecast for the full fiscal year 2017 was revised on February 13, 2017（See the 「Appendix : Revision to the financial forecast」 for details）
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

1

2017/3 3Q : Sales Analysis
Contribution from increase in the revenues from the existing businesses,
in addition to the M&A(Unit: billion yen)
-2.6+21.1+1.9+1.6+1.8+4.9+24.8

429.5

375.8
M&A effect*+21.1billion
yen

Increase in sales due to organic growth*+35.2 billion yen

2016/3
3Q Results

Temporary
Staffing/BPO＊

ITO*Engineering

Recruiting

Others

M&A

Adjustments

2017/3
3Q Results*M&A targets:P&P Holdings(July 2015), Medicross(October 2015), Capita(January 2016), First Alliances(April 2016), Kelly Services (Singapore) Pte. Ltd.(October 2016)(dates in parentheses indicate the year and month of consolidation as subsidiaries)*M&A effect:The figures are shown the financial results composed of the new companies by M&A. (Internal transactions have not been eliminated)*Organic growth (existing businesses):The figures are shown the financial results excluding the new companies by M&A. (Internal transactions have not been eliminated)*BPO：Business Process Outsourcing, ITO：IT Outsourcing (same as following pages)
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

2

2017/3 3Q : Sales by Segment
Continuous steady growth in each segment(Unit: million yen)

2017/3 Results

2016/3 Results
3Q
Temporary
Staffing/BPO

3Q

2017/3Full Year
Forecasts

YoY(%)

295,010

325,384＋10.3

436,000

ITO

17,185

18,811＋9.5

27,000Engineering

17,334

19,233＋11.0

26,000Recruiting

48,90069,396＋41.9

105,000

Others

3,031

4,996

＋64.8

6,500

Adjustment-5,635-8,261--10,500

375,826

429,560＋14.3

590,000

Total*Internal transactions have not been eliminated from the figures.
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

32017/3 3Q : EBITDA Analysis
Increase in sales due to organic growth(Unit: billion yen)
+0.1+0.3-0.1+2.1+0.1+0.2+2.9

32.7

26.9
M&A effect *＋0.3 billion
yen

Increase in EBITDA due to organic growth*+5.5 billion yen

2016/3
3Q Results

Temporary
Staffing/BPO*M&A targets*M&A effect*Organic growth (existing businesses)

ITO

Engineering

Recruiting

Others

M&A

Adjustments

2017/3
3Q Results:P&P Holdings(July 2015), Medicross(October 2015), Capita(January 2016), First Alliances(April 2016), Kelly Services (Singapore) Pte. Ltd.(October 2016)(dates in parentheses indicate the year and month of consolidation as subsidiaries):The figures are shown the financial results composed of the new companies by M&A. (Internal transactions have not been eliminated):The figures are shown the financial results excluding the new companies by M&A. (Internal transactions have not been eliminated)
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

4

2017/3 3Q : EBITDA Analysis
Achieved the highest results due to steady growth

2017/3 Results

2016/3 Results
3Q
Temporary
Staffing/BPO(Unit: million yen)

3Q

2017/3Full Year
Forecasts

YoY(%)

14,784

17,678＋19.6

23,550ITO

1,625

1,738＋7.0

2,760

Engineering

1,523

1,815＋19.2

2,640

Recruiting

7,287

9,821＋34.8

13,320181

312＋72.0

282

1,516

1,340

-178

26,91732,707＋21.5

42,730

OthersAdjustment

Total*Internal transactions have not been eliminated from the figures.
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5

2017/3 3Q : OP income Analysis
Increase in sales due to organic growth(Unit: billion yen)
+0.1

-0.5

-0.3+1.7+0.1+0.2+2.8

25.2

20.8
M&A*
-0.5 billion
yen

Increase in OP income due to organic growth*+5.2 billion yen

2016/3
3Q Results

Temporary
Staffing/BPO*M&A targets*M&A effect*Organic growth (existing businesses)

ITO

Engineering

Recruiting

Others

M&A

Adjustments

2017/3
3Q Results:P&P Holdings(July 2015), Medicross(October 2015), Capita(January 2016), First Alliances(April 2016), Kelly Services (Singapore) Pte. Ltd.(October 2016)(dates in parentheses indicate the year and month of consolidation as subsidiaries):The figures are shown the financial results composed of the new companies by M&A. (Internal transactions have not been eliminated):The figures are shown the financial results excluding the new companies by M&A. (Internal transactions have not been eliminated)
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

62017/3 3Q : OP income Analysis
Achieved the highest results due to steady growth

2017/3 Results

2016/3 Results
3Q
Temporary
Staffing/BPO(Unit: million yen)

3Q

2017/3Full Year
Forecasts

YoY(%)

12,71815,422＋21.3

20,500ITO

1,063

1,249＋17.4

2,000Engineering

1,110

1,397

＋25.8

2,000

Recruiting

4,657

6,110

＋31.2

8,600

169

271

＋60.0

200

1,172

836

--800

20,89225,287＋21.0

32,500

OthersAdjustment

Total*Internal transactions have not been eliminated from the figures.
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7

2017/3 3Q : Consolidated Balance Sheets
As of March 31, 2016
Results
Assets

As of December 31, 2016

Ratio(%)

Results

Ratio(%)(Unit: million yen)

Change236,238100.0

265,386

100.0＋29,147

130,61155.3

157,538

59.4＋26,926

51,22721.7

72,44827.3＋21,221

105,62744.7

107,84840.6＋2,221＜Right of trademark and goodwill＞

80,412

34.0

78,592

29.6-1,820102,73743.5

113,34942.7＋10,611

Decrease :Depreciation, Detrition
Foreign exchange
Increase : M&A*

67,482

28.6

82,45831.1＋14,976

5,427

2.3

5,185

2.0-242

Non-current liabilities

35,25514.9

30,891

11.6-4,364(Long-term loans payable)

24,993

10.6

22,7268.6-2,266(Convertible bond-type bondwith stock acquisition rights)

851

0.4

132

0.0-719

133,501

56.5

152,037

57.3＋18,536

127,205

53.8

138,43252.2＋11,226(Capital stock)

17,055

7.2

17,414

6.6＋359(Capital surplus)

20,5208.7

20,105

7.6-414(Legal retained earnings)

88,13437.3

99,63737.5＋11,502

Minority interests

6,295

2.7

13,605

5.1＋7,310Current assets(Cash and deposits)
Non-current assets(Right of trademark and goodwill)

Liabilities
Current liabilities(Current portion of loans payable)

Net assets
Owners' capital<Cash and deposits>
Increased due to an increase in profit＜Current liabilities＞
Increase in account payable, unpaid
corporation tax etc.

＜Convertible bond-type bond with stockacquisition rights＞
Decrease by conversion<Capital stock and capital surplus>
Increase due to conversion of the bond<capital surplus>
Decrease by the share of M&A* sale
＜Minority interests＞
Increase by M&A*

*M&A : Based on a joint venture agreement with Kelly Services, Inc. to expand business in the Asia-Pacific region, we have acquired 51% of Kelly Services (Singapore) Pte. Ltd. shares.
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

82017/3 3Q Transition of Business Results by Segments ① Temporary Staffing/BPO*+10.3%(Unit: billion yen)
+19.6%

295.0+21.3%

325.3
14.7

Sales

17.6

EBITDA

12.7

15.4

2017/3 3Q： Highlights

Demand from client companies remained strong(Increase in sales due to organic growth:8.4%, M&A effect: 1.9％)<Temporary Staffing division>• Demand for temporary staff remains strong• Increased in operating income due to the revenue growth which exceeds
increase in the costs such as personnel expenses, social insurance premiums,etc.
<BPO division>• Demand for the BPO services remains solid, achieved increase in income

OP income(Unit: million yen)

3Q

2017/3Full YearForecasts

2017/3 Results

2016/3 Results
3Q

YoY(%)

Sales

295,010

325,384+10.3

436,000

EBITDA

14,784

17,678+19.6

23,550

5.0

5.4-

5.4

12,71815,422+21.3

20,500

4.3

4.7-

4.7

EBITDA margin (%)
OP incomeOP income ratio (%)*Internal transactions have not been eliminated from the figures*See the "Factbook for the Third Quarter Ended December 31, 2016" released on the website on the same date for the quarterly results
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

92017/3 3Q Transition of Business Results by Segments ② ITO+9.5%(Unit: billion yen)

+17.4%

18.8
1.6

1.7
1.2

1.0
Sales

EBITDA： Highlights• Demand for IT system and SI-related services from clientcompanies remained solid

+7.0%
17.1

2017/3 3Q• Achieved high sales growth due to the increase in the highvalue-added PJ such as SI-related service, the sales marketing
service and a delivery of the system for the company which
belongs to the Temp-group

OP income(Unit: million yen)

3Q

2017/3Full YearForecasts

2017/3 Results

2016/3 Results
3Q

YoY(%)

Sales

17,185

18,811+9.5

27,000EBITDA

1,625

1,738

+7.0

2,760

9.5

9.2-

10.2

1,063

1,249

+17.4

2,000

6.2

6.6-

7.4

EBITDA margin (%)
OP incomeOP income ratio (%)*Internal transactions have not been eliminated from the figures*See the "Factbook for the Third Quarter Ended December 31, 2016" released on the website on the same date for the quarterly results
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10

2017/3 3Q Transition of Business Results by Segments ③ Engineering+11.0%(Unit: billion yen)

+25.8%

19.2
1.5

Sales

1.8

EBITDA： Highlights• Demand from the automobile industries remained solid+19.2%
17.3

2017/3 3Q

1.3

1.1

• In addition to the increase in value-added high contract duties
ratio, a rise in mean unit price contributes to profitability
improvement• New technology development and technical training sessions forthis segment were conducted across the segment

OP income(Unit: million yen)

3Q2017/3
Full YearForecasts

2017/3 Results

2016/3 Results
3QYoY(%)

Sales

17,334

19,233+11.0

26,000EBITDA

1,523

1,815+19.2

2,640

8.8

9.4

-

10.2

1,110

1,397

+25.8

2,0006.4

7.3-

7.7

EBITDA margin (%)
OP incomeOP income ratio (%)*Internal transactions have not been eliminated from the figures*See the "Factbook for the Third Quarter Ended December 31, 2016" released on the website on the same date for the quarterly results
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

112017/3 3Q Transition of Business Results by Segments ④ Recruiting+41.9%(Unit: billion yen)

+31.2%

69.3
7.2

Sales

9.8

EBITDA： Highlights

Demand from client companies remained strong, placement business driven thegrowth. In addition, the expansion of business scope by the Joint Venture with
Kelly Services, Inc. contributed to the figures+34.8%

48.9

2017/3 3Q

6.1

4.6

OP income＜Domestic business＞• Investment in enhancing product values and functions of “an” and “LINE Baito(part-time jobs)”, “DODA”• Personnel reinforcement and promotional investment aimed at increasing
customer contacts• Performance of Tempstaff Career Consulting deteriorated＜Overseas business＞• Capita pte. started to contribute (January 2016~)• Kelly Services(Singapore) Pte. Ltd. started to contribute (October 2016~）(Unit: million yen)

3Q

2017/3Full Year
Forecasts

2017/3 Results

2016/3 Results
3Q

YoY(%)

Sales

48,90069,396+41.9

105,000

EBITDA

7,287

9,821+34.8

13,320EBITDA margin (%)

14.9

14.2-

12.7

OP income

4,657

6,110+31.2

8,600

9.5

8.8-

8.2

OP income ratio (%)*Internal transactions have not been eliminated from the figures*See the "Factbook for the Third Quarter Ended December 31, 2016" released on the website on the same date for the quarterly results
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

122017/3 3Q Transition of Business Results by Segments ⑤ Others／Adjustment(Unit: million yen)
Others2017/3Full YearForecasts

2017/3 Results

2016/3 Results
3Q

3Q

YoY(%)

Sales

3,031

4,996

+64.8

6,500

EBITDA

181

312+72.0282

EBITDA margin (%)

6.0

6.2-

4.3

OP income

169

271

+60.0200

OP income ratio (%)

5.6

5.4-

3.1(Unit: million yen)
Adjustment

2017/3Full Year
Forecasts

2017/3 Results

2016/3 Results
3Q

3Q

YoY(%)

Sales-5,635-8,261--10,500

EBITDA

1,516

1,340-

178----

1,172

836--800----EBITDA margin (%)

OP incomeOP income ratio (%)*Internal transactions have not been eliminated from the figures*See the "Factbook for the Third Quarter Ended December 31, 2016" released on the website on the same date for the quarterly results*Others include our group functional services, education and training business, employment support business for people with disabilities, and childcare business*Adjustment stands for elimination of transactions between segments, and revenue and expenses of Temp Holdings Co., Ltd.
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

13

Appendix：Revision to the financial forecast
3.0 billion yen downward revision to the financial forecast of Profit attributable to owners of parent(4.2 billion yen impairment loss due to the trade name change will be recorded on the end of Fiscal year 2017)••

Resolution oftrade namechange••

Impact onbusinessperformance

Purpose: Maximize the synergy by expanding “PERSOL” group awareness
Details: Trade name change will be executed on July 1, 2017(planned) as below

Current trade name

New trade name

Tempstaff Co., Ltd.

PERSOL TEMPSTAFF CO., LTD.

Intelligence, Ltd.

PERSOL CAREER CO., LTD.

Intelligence Business Solutions, Ltd.

PERSOL PROCESS & TECHNOLOGY CO., LTD.

4.2 billion yen extraordinary loss will be recorded on the end of Fiscal year 2017 (impairment lossfor “Intelligence” brand)
3.0 billion yen downward revision to the financial forecast of Profit attributable to owners of parent(after considering the tax effect) due to this change(Unit: billion yen)

Nov 11, 2016
Forecast(a)Feb 13, 2017
Amendedforecast(b)Profitattributable toowners of parent

20.1

17.1

Change(=b-a)-3.0

2016/3Results(c)YoY
Growth Rate(=b÷c,%)

17.3

-1.5

*There are no revision to the financial forecast of Sales, EBITDA, OP income, Ordinary income.
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

14

Appendix：Recent M&As
Company nameP&P Holdings

Capita Pte. Ltd.

Kelly Services(Singapore) Pte. Ltd.

EstablishedOctober, 2012

January, 2001

August, 2000Net Sales（*1）

25.46 billion yen（*2）

47.4 million SGD（*3）

387million USD（*4）

OP income（*1）

0.14 billion yen（*2）-3.0 million SGD（*3）

9million USD（*4）

Acquisition dateJune, 2015

October, 2015

July, 2016

Contribution from2016/3 Q2

2016/3 Q4

2017/3 Q3Ownership ratio

100.0%

Acquisition price5.49 billion yen

6.94 billion yen

7.77 billion yen (*5)

Goodwill

1.99 billion yen

6.07 billion yen

4.62 billion yen

5 year10 year

10 yearTemporary Staffing/BPO

Recruiting

Recruiting

Amortization period

Segment

51.0%*1. This briefing is only for better understanding. Please note that numbers and indexes in this page are not audited.
*2. This value is P＆P Holdings Corporation (Mar. 2015) and consolidated results of 6 company‘s subsidiaries. Value of OP income is deducted goodwill（0.39 billion yen/year）depreciation.
*3. Value is Capita Pte. Ltd.(Dec.2014) and consolidated results of 2 company‘s subsidiaries. Value of OP income is deducted goodwill （7.0 million SGD /year） depreciation.
*4. Value is the performance in the APAC region of the joint venture partner ‘Kelly Services, Inc.’ (the FY ended Dec. 2015). (Some businesses are excluded from the scope of joint venture business.)*5. This amount includes stock-kind contributions of our APAC business of Capita Pte. Ltd etc.
Copyright © since 2016 Temp Holdings Co., Ltd. All Rights Reserved.

15

Disclaimer

The statements concerning the Company’s future businessperformances in this material such as earnings forecasts arebased on information available as of February 13, 2017 andcertain 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 dueto a variety of factors.
This briefing is only for better understanding. Please note thatnumbers and indexes in this book are not audited.

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

It is a new stock price index that consists of companies that meet various requirements for globalinvestment, such as the efficient use of capital and a management perspective that is conscious ofinvestors, for the purpose of boosting the appeal of Japanese companies domestically andinternationally.

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16